Heidelberg Financial Year 2006/2007: Targets Achieved - Further Improvement in Earnings





    --  Sales up 6 percent to EUR 3.803 billion

    --  Incoming orders exceed previous year's good level

    --  Operating profit incl. one-time effects EUR 362 million

    --  Significant improvement of net profit

    --  Higher dividend of EUR 0.95 per share proposed

    --  Prospects for 2007/2008: Moderate increase in sales and net profit
roughly equivalent to 5 percent of sales expected

    HEIDELBERG, GERMANY, June 13 /CNW/ - Heidelberger Druckmaschinen AG
(Heidelberg) (FWB: HDD) clearly increased both sales and earnings in financial
year 2006/2007 (April 1, 2006 to March 31, 2007). "For the fourth year in
succession, we have been able to draw on the upswing in the global economy and
the resultant upward trend in our industry," stated Bernhard Schreier, CEO of
Heidelberger Druckmaschinen AG. "For the current financial year, we are
expecting moderate growth in the volume of business," he added.

    Sales by the Heidelberg Group during the period under review climbed six
percent to EUR 3.803 billion (previous year: EUR 3.586 billion). The fourth
quarter alone returned sales of EUR 1.214 billion, the highest level in the
last five years on a comparable basis.

    Incoming orders in the financial year just closed were EUR 3.853 billion
(previous year: EUR 3.605 billion), around 7 percent up on the previous year.
The Heidelberg Group thus succeeded in increasing incoming orders for the
third successive year. At around EUR 1 billion, the order backlog at March 31,
2007 was on a par with the previous year's high level.

    In the period under review, the Heidelberg Group increased its operating
result to EUR 362 million, significantly up on the previous year (previous
year: EUR 277 million). This produced an EBIT margin of 9.5 percent of sales
(previous year: 7.7 percent). A number of factors contributed to this result,
including positive one-time effects from asset management of around EUR 60
million, resulting primarily from the sale of Linotype GmbH and the Research
and Development Center in Heidelberg ("sale and lease back"). During the
course of the year, this helped compensate most of the higher spending on R&D,
investments in new generations of printing presses, more unfavorable exchange
rates, and a decline in sales in China.

    The net profit climbed to EUR 263 million (previous year: EUR 135
million) and included a positive one-time effect in the form of a corporate
income tax credit of EUR 73 million. This credit relates to a change in the
way existing tax credits are treated and has no impact on the level of future
dividends. The free cash flow also increased substantially to EUR 229 million
(previous year: EUR 149 million) as a result of tight asset management.

    "Last financial year, we once again saw a significant improvement in
earnings and free cash flow and in essence reached the targets we had set
ourselves," stated Heidelberg CFO Dirk Kaliebe. "All in all, we have taken
another sizeable step towards strengthening the Company's sustainable
profitability. As described in the outline of prospects, we expect business to
continue to develop positively due to the stability in the industry in most
regions and the Heidelberg Group's improved cost structures," he added.

    As of March 31, 2007, the Heidelberg Group had a workforce of 19,171
worldwide (previous year: 18,436). This figure includes new appointments -
primarily at Heidelberg production facilities - and, for the first time, 156
employees from the initial consolidation of BHS Druck- und Veredelungstechnik
GmbH, Weiden, a subsidiary of the Gallus Group.

    Results in the Press and Postpress divisions:

    In the Press Division (offset printing), sales in the financial year just
closed rose by approx. 6 percent to EUR 3.321 billion. Incoming orders in the
period under review increased by 7 percent on the previous year to EUR 3.367
billion. The operating result for 2006/2007 was EUR 314 million (previous
year: EUR 248 million).

    In the Postpress Division (finishing), sales in the period under review
rose by around 12 percent to EUR 445 million. Incoming orders increased by
some 9 percent to EUR 449 million. The operating result of this division for
the period under review was EUR 7 million (previous year: loss of EUR 3
million).

    In the EMEA, North America, Latin America and Eastern Europe regions,
sales and incoming orders showed a considerable improvement on the previous
year. In the Asia/Pacific region, figures fell short of the high levels of the
previous year. The suspension of import duty exemption in China, which took
effect from the second quarter, postponed incoming orders and sales.

    Dividend proposal

    At the Annual General Meeting on July 26, 2007, the Management Board and
the Supervisory Board will propose increasing the dividend from last year's
level of EUR 0.65 per share to EUR 0.95 per share for 2006/2007.

    Prospects for financial year 2007/2008: Moderate increase in sales and
net profit roughly equivalent to 5 percent of sales expected

    During the next three-year period, from 2007/2008 to 2009/2010, the
Company expects to increase total sales by 10 to 15 percent. In the current
financial year 2007/2008, Heidelberg predicts a moderate growth in sales in
the run-up to drupa 2008.

    In 2006/2007, the year under review, the result of operating activities
included positive one-time effects amounting to around EUR 60 million. In the
current financial year 2007/2008, Heidelberg is looking to increase the pure
operating result by 10 to 15 percent compared to the adjusted value for the
year under review of EUR 302 million. This represents a target result of
operating activities for 2007/2008 of EUR 330 million to EUR 345 million.

    Also benefiting from the positive effects of the German tax reform and
from internal optimizations to ease the tax burden, the net profit will
continue to grow. Overall, the Company predicts an increase in the net profit
- excluding one-time effects - of around 4 percent of sales for the year under
review to about 5 percent in the current financial year 2007/2008.

    Share buyback

    On November 7, 2006, Heidelberger Druckmaschinen AG began a second share
buyback program which plans up to five percent of the Company's capital stock
- a maximum of 4,152,535 shares - to be repurchased on the stock market by
January 2008 at the latest. By the end of the 2006/2007 financial year, on
March 31, 2007, 2,419,422 shares had been bought back through this program. At
the end of the financial year just closed, Heidelberg cancelled 3,322,658
shares from the first and second buyback programs. The Company's capital stock
now amounts to EUR 204,103,795.20 and is divided into 79,728,045 bearer
shares.

    The tables showing the figures as well as further information can be
downloaded from the Press Lounge at www.heidelberg.com.

    Other dates:

    The Annual General Meeting of Heidelberger Druckmaschinen AG will be held
at the Congress-Center Rosengarten in Mannheim on July 26, 2007.

    The scheduled publication date for the financial statements for the first
quarter of 2007/2008 is August 2, 2007.

    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.




For further information:

For further information: Heidelberger Druckmaschinen AG Corporate
Communications Thomas Fichtl, +49 6221 92 4747 Fax: +49 6221 92 5069
thomas.fichtl@heidelberg.com

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HEIDELBERGER DRUCKMASCHINEN AG

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