Heidelberg increases sales by more than 15 percent to Euro 5.3 billion / Preliminary figures for the 2000/2001 fiscal year - profit exceeds expectations

HEIDELBERG, Germany (ots) - Sales at HeidelbergerDruckmaschinen AG (Heidelberg) rose in the year ending March 31,2001 by more than 15% to Euro 5.3 billion (previous year: Euro4.6 billion). This impressive result means that the company hasfurther extended its leading position in the graphic artsindustry. "With this new record, we have shown that we are by farthe world's favorite business partner for manufacturers ofprofessional print media", stated Bernhard Schreier, Chairman ofthe Management Board of Heidelberger Druckmaschinen AG. Incomingorders exhibited pleasing growth in all divisions, standing ataround Euro 5.5 billion. This was 18% higher than the comparablefigure for the previous year, which had also been characterizedby strong growth (just under Euro 4.7 billion). "The results have exceeded our expectations. We have increasedour operating profit by 10% from Euro 463 million to Euro 506million", explained Dr. Herbert Meyer, CFO of HeidelbergerDruckmaschinen AG. The Heidelberg Group's provisional net profitincreased from Euro 251 million to Euro 283 million afteradjustment and, after accounting for special influences, totaledEuro 343 million. The non-recurring item of around Euro 60 million net (aroundEuro 100 million before tax) is due to the use of new accountingprocedures for special investment funds. In contrast to previous years, special funds are no longerlisted in the historical acquisition costs of around Euro 280million. Instead, the shares, marketable securities, liquid cashand bonds held by the funds are listed at their market values ofaround Euro 380 million. The earnings per share rose from Euro2.91 to Euro 3.29 after adjustment. The number of staff employed by the Heidelberg Group rose from24,177 to 25,936 (as at March 31), primarily due to the extensionof the service and sales network. Impressive double-figure growth rates for divisions andregions In the 2000/2001 fiscal year, sales in all divisions wereinfluenced by the highly favorable economic development and bythe high number of incoming orders at drupa in May 2000. Sales in the Digital division rose by just under 16% from Euro659 million to some Euro 763 million. The Sheetfed division(sheetfed offset presses) also continued its success story, withsales increasing from Euro 2.8 billion to Euro 3.3 billion - agrowth of almost 17%. Heidelberg's Web division achieved sales ofEuro 801 million which, when compared to Euro 695 million lastyear, represents a growth of more than 15%. In the Finishingdivision, sales rose from Euro 398 million to Euro 408 million. Heidelberg experienced high demand from all regions. Despitethe economic slowdown in the second half of the last fiscal year,sales in the NAFTA region rose by just under 16% to Euro 1.8billion. In Central Europe, Heidelberg once again reported highsales, achieving a figure of Euro 1.9 billion. The MiddleEast/Africa, Asia/Pacific and Central & South America regionsdemonstrated sales increases well in excess of 30% compared withlast year. Asia/Pacific achieved almost Euro 1 billion in sales, makingit the third largest region. The highest percentage growth wasseen in Eastern Europe, with sales in the region growing by 53%to Euro 291 million. Prospects for the future: Further increase in sales expected "The economic slowdown affecting certain parts of the worldhas so far had hardly any effect on our business. Because ofthis, we expect a further increase in sales over the comingmonths", commented Bernhard Schreier, speaking about theprospects for the current fiscal year. Heidelberg will announce further details of the 2000/01 fiscalyear at its Annual Accounts Press Conference on July 3, 2001(10:00 am, Print Media Academy, Heidelberg). Further information is available on the Internet atwww.journalist.heidelberg.com. Heidelberg Group March 31, 2001

March 31, 2000

Change

in EURO million in EURO million in % Sales

5,303

4,602

15.2% Digital

763

659

15.8% Sheetfed

3,331

2,849

16.9% Web

801

695

15.3% Finishing

408

398

2.5% Incoming orders 5,537

4,694

18.0% Operating profit 506

463

9.3% Adjusted profits after taxes

283

251

12.7% Profit after taxes, incl. non-recurring item

343 Earnings per share (adjusted)

3.29 Euro

2.91 Euro

13.1% Employees*

25,936

24,177

7.3% Sales by region Central Europe 1,914

1,910

0.2% NAFTA

1,794

1,550

15.7% Asia / Pacific

997

736

35.5% Eastern Europe

291

190

53.2% Central & South America

163

111

46.8% Middle East / Africa

144

104

38.5% *Staffing level as of March 31

ots Original TextService: Heidelberger Druckmaschinen AG Internet:www.pressportal.de For further information: HeidelbergerDruckmaschinen AG Corporate Communications Thomas Fichtl Tel: +49(0)6221- 92 4747 Fax: +49 (0)6221- 92 5069 E-mail:thomas.fichtl@de.heidelberg.com

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