Heidelberg Records Sales of around 3.6 Billion Euro in the First Nine Months and Matches Last Year's High Level

• Orders and operating result fail to reach last year's record figures
• Third quarter shaped by weak economic growth
• Heidelberg still focussed on growth targets

Heidelberger Druckmaschinen AG (Heidelberg) has matched the sales levels of the previous year in the first nine months (April 1 to December 31) of fiscal year 2001/2002. Sales by the Heidelberg Group rose by 0.8 percent to around 3.6 billion Euro.

Orders over the same period were 3.5 billion Euro, some 19 percent down on the high levels recorded in the Drupa 2000 year. "This clearly reflects the reticence to invest that has been prevalent in the USA since the beginning of the last calendar year and the effects of the worsening global economic climate since September 2001," stated Bernhard Schreier, CEO of Heidelberg. "But this changes nothing in terms of our growth targets. We remain firmly committed to these", he adds. He went on to say that Heidelberg has devised a three-pronged strategy to tackle the challenges of the next few years in the graphic arts industry. These involve extending the company's lead on the offset market and assuming a leading role in postpress. The third objective of the strategy, according to Mr. Schreier, involves digital printing, an area in which Heidelberg aims to become a major international player over the next few years.

The operating profit in the first nine months was 161 million Euro and was therefore some 47 percent down on the same period last year. Profits after tax over the same period were 84 million Euro, around 49 percent below the level for 2000/2001. Heidelberg also expects that the measures introduced during the second half of the year will enable it to reach its targets for the year as a whole. "The steps we have implemented will begin to impact positively on results during the current quarter (January 1 to March 31, 2002)", commented CFO Dr. Herbert Meyer. These include the major realignment of production capacities to reflect the downturn in business, a clear reduction in inventories, the achievement of the company's cost-cutting target of 100 million Euro and the anticipated turnaround in the Web Systems Division.

At December 31, 2001, the Heidelberg Group had a workforce of 25,700.

Developments in the individual divisions - improved results for Digital and Web Sales in the Digital Division fell by some 15 percent to 482 million Euro. The operating loss was 88 million Euro. Nevertheless, with sales of 149 million Euro, the loss in the third quarter was a significant improvement on previous quarters. The launch of the new NexPress digital color press was very successful. Heidelberg had already received more than 130 orders by the end of the third quarter.

Sales in the Web Systems Division were 454 million Euro, only 7 percent below last year's figure. With sales in the third quarter of 236 million Euro, the Division made up considerable ground. The operating loss grew to 123 million Euro, but here too a turnaround is in sight and the loss in the third quarter was well below that of preceding quarters.

Sales in the Sheetfed Division climbed 7 percent to around 2.4 billion Euro. The operating profit was 368 million Euro, 2 percent up on last year.

Compared with the previous year, sales in the Finishing Division were down around 2 percent at 277 million Euro. Operating profits of 21 million Euro fell to 4 million Euro because of the situation in the USA.

Progress in the regions quite positive
The trend in the regions was similar to the half-yearly figures. The NAFTA region continues to be shaped by the economic slowdown in the USA and a consequent reticence on the part of customers to make new investments. As a result, sales by the Heidelberg Group in this region decreased some 15 percent to 958 million Euro. Business in the other regions was quite positive, although these also experienced a slowdown in growth. The Asia/Pacific Region saw a very pleasing improvement in sales of around 11 percent. Sales for the Central Europe Region also increased, to around 1.4 billion Euro. Heidelberg also recorded improved sales in Eastern Europe, Central and South America and the Middle East and was thereby able to extend its leadership on these markets.

The table with the figures is available as download file.

For further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-Mail: thomas.fichtl@heidelberg.com

Important note
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.