Heidelberg results: Net expected to be at around EUR -130 million

　　Incoming orders and sales by Heidelberger Druckmaschinen AG (Heidelberg) in financial year 2010/2011 (April 1, 2010 to March 31, 2011) were up on the previous year. The operating result improved considerably after two deficit years, moving back into the black. Heidelberg has therefore met its own forecasts.

　　At a total of EUR 2.757 billion, preliminary incoming orders were up around 16 percent on the previous year's figure of EUR 2.371 billion. Exchange rate effects accounted for around EUR 140 million of this. Preliminary sales by the Heidelberg Group increased by around 14 percent to EUR 2.629 billion (previous year: EUR 2.306 billion). This includes around EUR 135 million from exchange rate effects. The operating result improved significantly due to higher profit contributions and the savings made in the financial year. The preliminary result of operating activities excluding special items rose to EUR 4 million at the end of the financial year (previous year: EUR -130 million). Positive special items totaled EUR 2 million in financial year 2010/2011 as a whole. As expected, the huge increase in financing costs and non-recurring expenditure linked to the comprehensive capital restructuring undertaken by Heidelberg in the financial year had a significant negative impact on the financial result. The net result is therefore expected to be at around EUR -130 million in financial year 2010/2011. At approximately EUR 75 million, preliminary free cash flow improved considerably over the reporting year as a whole (previous year: EUR -62 million) basically thanks to a reduction in the annual loss and net working capital and thus exceeded the company's own expectations.

　　"The Heidelberg Group resumed its path to growth in financial year 2010/2011. We improved incoming orders and sales and, after two deficit years, our operating result is back in the black. Thanks to the strategic partnership with Ricoh, the leading position that Heidelberg occupies in the offset printing market will be complemented in future by innovative digital printing products. These operational and strategic successes show that Heidelberg is on the right track to achieving long-term success," said Heidelberg CEO Bernhard Schreier.

　　"Through comprehensive cost-cutting measures, we have lowered our operating break-even threshold as planned, and thus improved our earnings significantly," said CFO Dirk Kaliebe. "With the considerably reduced level of debt, the successful capital increase and the bond placement we have safeguarded our long-term financing, and have succeeded in leading Heidelberg out of the crisis."

　　At EUR 637 million, preliminary incoming orders in the fourth quarter were down on the previous year's figure (EUR 678 million). This figure includes exchange rate effects amounting to EUR 12 million. Preliminary sales increased to EUR 746 million (previous year: EUR 715 million), with exchange rate effects accounting for EUR 19 million of this. The preliminary result of operating activities excluding special items for the quarter under review improved to EUR 30 million on the back of EUR 11 million in the same quarter of the previous year. In the fourth quarter alone, negative special items amounted to EUR 24 million, mainly due to provisions for office space reductions, concentration of Heidelberg sites and for ongoing optimizations. The preliminary free cash flow amounted to EUR -16 million in the fourth quarter due to outflows associated with the restructuring measures (previous year: EUR -47 million).

　　As of March 31, 2011, the Heidelberg Group had a workforce of 15,828 worldwide (previous year: 16,496).

　　Additional information on the company is available on www.heidelberg.com.