Positive trend at Heidelberg continues / Orders in first nine months around Euro 1 billion over previous year

HEIDELBERG, Germany (PROTEXT/ots) - HeidelbergerDruckmaschinen AG (Heidelberg) has once again improved its salesand revenue figures for the first nine months (April 1 toDecember 31) of fiscal year 2000/2001. Incoming orders in totalrose significantly by 29 % to Euro 4.4 billion. But over the last3 months they were slightly down compared to the extremely highlevels recorded in the first half of 2000/2001 (up 51% over theprevious year) due in part to the economic slowdown in the USA.The order book at the end of the quarter was worth Euro 2.2billion, around 59 percent above the figure for the comparableperiod in 1999/2000. The company's sales over the period from April to December2000 were 15 percent up to around Euro 3.5 billion, the profitafter tax climbing around 4 percent to Euro 166 million.Heidelberg was therefore able to continue the pleasing results ofthe first six months in the third quarter. "These newly published figures reaffirm our leading positionas a global solution provider in the graphic arts industry",states Bernhard Schreier, Chairman of the Management Board ofHeidelberger Druckmaschinen AG, underlining the success ofHeidelberg's strategic approach and repositioning. "We expect sales in excess of Euro 5 billion for the complete2000/2001 fiscal year and an increase in net profit over theprevious year of around 10 percent", states Dr. Herbert Meyer,Finance Director. The company had a workforce worldwide of 25,618 at December31, 2000. This represents an increase of 1,527 (6.3 percent)compared with December 31, 1999. Pleasing developments in the various divisions Order levels in the digital division increased by 24.5 percentand sales by 25 percent. Heidelberg will deliver the 2,000th"Digimaster" black/white digital press in the spring.Heidelberg's goal is to reach a market share of 20 percent inthis segment by the year 2002. Orders received by the Sheetfed division (sheetfed offsetpresses) rose by 33 percent in the first nine months and sales by13 percent. Excellent drupa trade fair results and the ordersthese generated indicate that the company will exceed last year'ssales over the full fiscal year. Orders received in the Web Systems division (web offsetpresses) rose 27 percent and sales by 26 percent. Heidelberg alsoachieved further success in the Newspaper Printing segmentthrough the sale of a Mainstream rotary newspaper press to theMexican publishing house El Universal. This brought the totalnumber of Mainstream rotary newspaper presses sold to eleven. In the Finishing division the overall positive trend continuedover the last three months, increasing by 11 percent. Asia Pacific and Central and South America record strongestgrowth In the Asia/Pacific region, Heidelberg succeeded in increasingsales during the first nine months by 45 percent compared withthe previous year. Developments on the Chinese and Japanesemarkets were particularly positive. In North America (USA, Mexico and Canada), sales were 20percent up on the comparable period of last year. The stronggrowth in sales of the "Digimaster" digital press wereparticularly impressive and helped offset the slight drop inorders experienced by traditional offset business in the thirdquarter in the USA. The Central and South America region recordedthe strongest increase in sales, with a rise of 81 percent. The opening of another Print Media Academy in Sao Paulo,Brazil, in December 2000 once again reaffirms Heidelberg'scommitment to training in the graphic arts industry. Theinternational Print Media Academy network now encompasses eightsites worldwide, and a further two will be added over the comingyear in Cairo and Sydney. Photos are available on the Internet atwww.journalist.heidelberg.com. HEIDELBERG GROUP

December 31, 2000 December 31, 1999

EUR m.

EUR m.

Change in % Net sales

3,546

3,075

+ 15.3 Digital

569

455

+ 25.1 Sheetfed

2,206

1,957

+ 12.7 Web

487

386

+ 26.2 Finishing

284

277

+ 2.5 Incoming orders 4,396

3,414

+ 28.8 Digital

593

476

+ 24.6 Sheetfed

2,798

2,109

+ 32.7 Web

681

536

+ 27.1 Finishing

324

293

+ 10.6 Order backlog

2,204

1,387

+ 58.9 Digital

134

78

+ 71.8 Sheetfed

1,523

917

+ 66.1 Web

437

340

+ 28.5 Finishing

110

52

+ 111.5 Operating profit

302

302

+ 0.0 Net profit

166

160

+ 3.8 Return on

4.7

5.2 sales in % Sales by regions

Dec 31,

Dec 31, 99

Change

Share 00/01

2000 EUR m.

1999 EUR m.

EUR m.

EUR m.

in %

in % Central Europe

1,333

1,400

- 4.8

37.6 NAFTA

1,133

948

+ 19.5

32.0 Asia/Pacific

679

467

+ 45.4

19.1 Eastern Europe

206

137

+ 50.4

5.8 Central + South America

116

64

+ 81.3

3.3 Middle East/Africa

79

59

+ 33.9

2.2 Group

3,546

3,075

+ 15.3

100.0For further information: Peter Caspar Hamel Head of CorporateCommunications Tel.: +49-6221-925060 Fax: +49-6221-925069 E-mail: caspar.hamel@de.heidelberg.com

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