Heidelberg concludes negotiations on planned job cuts – package of measures considerably contributes to cost reduction

• Management and employee representatives agree on reconciliation of interests and redundancy plan at German sites
• 1,500 jobs cut through socially acceptable measures agreed for financial year 2009/2010
• Additional savings on personnel costs by dispensing with collectively agreed payments and payments above the general pay scale and agreeing flexible working time models
• Personnel costs in the current financial year to be cut by more than EUR 250 million compared to the previous year

The management and employee representatives of Heidelberger Druckmaschinen AG (Heidelberg) have agreed on a reconciliation of interests and a redundancy plan for around 1,300 job cuts at the company's German sites in Heidelberg, Wiesloch/Walldorf, Amstetten, Brandenburg, Ludwigsburg, and Mönchengladbach. A reconciliation of interests and a redundancy plan were concluded at the Mönchengladbach site back in August. A further 200 employees have agreed to leave the company on a mutually acceptable basis, making a total of 1,500 job cuts at the German sites in financial year 2009/2010. 

Thus, the company realizes its package of cost-cutting measures. The core element of this package is to achieve cost cuts equivalent to a reduction in personnel capacities of up to 5,000 jobs worldwide by financial year 2010/2011. Together with the measures now agreed, the company is reducing its global headcount by around 4,000. The additional savings will be made by dispensing with collectively agreed payments and payments above the general pay scale, and by agreeing flexible working time models to adapt personnel capacities to the order situation. The Management Board and executives are also foregoing remuneration to a comparable extent in order to help lower personnel costs. The agreed package of measures will result in these costs being cut by more than EUR 250 million during the current financial year compared to the previous year.

"Following constructive discussions, we have found a reasonable solution for everyone involved," stated Heidelberg CEO Bernhard Schreier. "These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company's future," he added.

In addition to the agreed severance arrangements, Heidelberg is offering all employees affected the opportunity to move to a transitional company for 12 months as of March 1, 2010. The measures now agreed with the Works Council and the IG Metall union will be implemented by the end of March 2010. All costs associated with this restructuring have already been incorporated in the accounts for financial year 2008/2009.

The agreement on job cuts means that all the company's planned cost-cutting measures are under way. By financial year 2010/2011, this should generate annual savings in the order of EUR 400 million.

As of June 30, 2009, the Heidelberg Group employed 18,353 staff worldwide.

For further information:
Heidelberger Druckmaschinen AG
Investor Relations
Andreas Trösch
Tel: +49 (0)6221- 92 6020
Fax: +49 (0)6221- 92 5189
E-mail: Andreas.Troesch@Heidelberg.com



Heidelberger Druckmaschinen

A technology provider and partner in the print media industry

Heidelberger Druckmaschinen AG (Heidelberg) is with its sheetfed offset printing machines one of the leading solution providers for the print media industry. All over the world, the name Heidelberg is synonymous with state-of-the art technology, top quality, and closeness to the customer. The core business of this technology group covers the whole value-added and process chain for the 35 x 50 cm (13.78 x 19.69 in) to 121 x 162 cm (47.64 x 63.78 in) format classes in the sheetfed offset sector.

Heidelberg develops and produces precision printing presses, platesetters, postpress equipment, and software for integrating all the printshop processes. Environmental protection has an enduring importance in this regard. Solutions for the development, production, and utilization of presses help to conserve resources, reduce emissions, and cut wastage. The Heidelberg portfolio also provides general and consulting services ranging from spare parts and consumables to the sale of remarketed equipment, and training at the Print Media Academy.

Based in Heidelberg, Germany, with development and production sites in seven countries and around 250 sales offices across the globe, the company supports around 200,000 customers worldwide. All Heidelberg presses destined for the world market are manufactured at the Wiesloch-Walldorf site in line with strict quality standards. Standardized presses in all standard format classes and folding machines for the Chinese market are produced by Heidelberg in Qingpu near Shanghai.

Heidelberg presses worldwide produce high-quality print products such as business cards, brochures, posters, and folding cartons.

In financial year 2008/2009, Heidelberg recorded sales of EUR 2.999 billion. As at March 31, 2009, the Heidelberg Group had a workforce of 18,926 worldwide, including 707 trainees.



Important Note
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.