Heidelberg Achieves Sales of around 930 Million Euro in First Quarter

• Orders have stabilized and are up on previous quarters
• Sales and operating result below previous year's figures as expected
• First quarter shaped by uncertain economic climate

As expected, the figures recorded by Heidelberger Druckmaschinen AG (Heidelberg) for the first three months (April 1 to June 30) of the fiscal year 2002/2003 failed to match those of the previous year. Sales by the Heidelberg Group in the first quarter were around 930 million Euro (previous year: around 1.1 billion Euro). Orders during the same period achieved 1.1 billion Euro (previous year: 1.3 billion Euro). "We have now past the bottom when it comes to orders and were able to improve slightly on the previous two quarters", explained Bernhard Schreier, CEO of Heidelberg. To achieve the year-end targets a pick-up in the second half of the year is still the prerequisite according to the Management Board.

The operating result fell as expected to 21 million Euro during the period under review (previous year: 45 million Euro). The profit after taxes decreased to 12 million Euro (previous year: 29 million Euro). "In the USA in particular, there has not been any tangible improvement yet", stated CFO Dr. Herbert Meyer.

At June 30, 2002, the Heidelberg Group employed some 24,700 staff worldwide.

Developments in the individual divisions
Under Heidelberg's new organization, which is in force since April 1, 2002, sales in the Digital Division are now solely related to black/white and color digital presses. Sales in the first quarter were around 50 million Euro (same period of previous year: 70 million Euro). The operating loss was 21 million Euro (same period of previous year: loss of 16 million Euro).

Plate imaging and workflow activities in the Prepress sector have been integrated into the Sheetfed Division. From now on, it will be possible to develop offset printing solutions that are more uniform, integrated and process-oriented. Sales by this division in the first quarter were about 700 million Euro (same period of previous year: 815 million Euro). The operating result was 74 million Euro (same period of previous year: 91 million Euro).

Sales by the Web Systems Division in the first quarter were approximately 90 million Euro (same period of previous year: 92 million Euro). The operating loss grew to around 30 million Euro (same period of previous year: loss of 24 million Euro) due to restructuring measures.

Compared to the previous year, sales by the Postpress Division increased 5 percent to 100 million Euro. For the first time, these figures included finishing solutions from the web offset sector. The operating result improved from a loss of 6 million Euro to a loss of 2 million Euro (same period of previous year).

Progress in the regions - new structure
During the current fiscal year, the financial reporting paths have been aligned with the new corporate organization for the first time. As a result, Mexico will be included in the Latin America region. In addition, the Central Europe and Middle East/Africa regions have been grouped together for financial reporting aspects.

All in all, sales in almost all regions were impacted heavily by the continuing global uncertainty regarding investments. Business in Asia/Pacific and Eastern Europe showed good growth. Sales in Eastern Europe climbed almost 14 percent to around 75 million Euro.

The table with the figures can be downloaded.

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.