Successful start to the year - company expects sales andprofits to be above last year's figures Heidelberg (ots/PROTEXT) - Heidelberger Druckmaschinen AG(Heidelberg) has closed the last 2000/2001 fiscal year (April 1,2000 to March 31, 2001) with record profits. Sales of theHeidelberg Group rose by more than 15% to Euro 5.3 billion(previous year: Euro 4.6 billion). Orders received also exhibitedpleasing growth in all divisions, standing at around Euro 5.5billion. This is more than 18 percent up on the comparable figurefor the highly successful previous year (just under Euro 4.7billion), which means that the company has further extended itsleading position in the graphic arts industry. "In the currentfiscal year, we expect Heidelberg to achieve sales and profits inexcess of last year's levels", stated Bernhard Schreier, Chairmanof the Heidelberg Management Board. The rise in profits in 2000/2001 demonstrates the company'spotential for growth. "We have increased our operating profit byaround 10% from Euro 463 million to Euro 506 million", explainedChief Financial Officer Dr. Herbert Meyer. The Heidelberg Group'snet profit increased from Euro 251 million to Euro 283 millionafter adjustment and, after accounting for special influences,totaled Euro 342 million. The non-recurring item of around Euro 60 million (Euro 100million before tax) relates to the application of new accountingprocedures for the treatment of special investment funds. Unlikein previous years, special funds are no longer listed at thehistorical procurement costs of around Euro 280 million, butinstead the stocks, securities, cash and pensions included in thefunds are now listed at their market values of around Euro 380million. The earnings per share rose from Euro 2.91 to Euro 3.30after adjustment. At the Annual General Meeting, Heidelberg willpropose that, in view of the highly favorable 2000/2001 fiscalyear, a dividend of Euro 1.80 will be issued - an increase of 10cents on last year's dividend. This corresponds to a net dividendyield of 3.1% calculated on the current share price (average Euro58). During the period under review, Heidelberg's total workforceincreased by 1,759 to 25,936 (as at March 31, 2001). High double-figure growth in divisions and regions In the 2000/2001 fiscal year, sales in all divisions wereboosted by a highly favorable economic climate and the highnumber of orders received at drupa in May 2000. Digital buoyant Sales in the Digital division rose by just under 16% from Euro659 million to some Euro 763 million. With more than 2,000black/white digital printing systems already shipped, Heidelberghas now achieved a market share of 17% in this sector. Thecompany's goal is to increase this share to 30% in the next fiveyears. The operating loss rose from Euro 26 million to Euro 64million. This is due to the financial outlays required for thedevelopment of digital presses and the expansion of the company'ssales organization. A further factor was the unfavorable profitdevelopment in the prepress sector. Sheetfed division continues to be successful The Sheetfed division (sheetfed offset presses) also continuedits success story, with sales increasing from Euro 2.8 billion toEuro 3.3 billion - a growth of almost 17%. The operating resultincreased from Euro 491 million to Euro 543 million. Heidelberg'sgoal is to expand its strong market position in this sectorfurther. Web Systems division breaks even Heidelberg's Web Systems division achieved sales of Euro 801million which, when compared to Euro 695 million last year,represents a growth of more than 15%. The operating resultreached break-even point, despite the expansion of newspaperpress business and following a loss of Euro 7 million in1999/2000. Finishing set to grow In the Finishing division, sales rose from Euro 398 million toEuro 408 million. The operating profit climbed from Euro 5million to Euro 27 million. Heidelberg is looking to achievestronger growth than the market average in this sector in future. Global orientation pays off 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 16% to Euro 1.8 billion. InCentral Europe, Heidelberg once again reported high sales,achieving a figure of Euro 1.9 billion. The Middle East/Africa,Asia/Pacific and Central & South America regions demonstratedsales growth well in excess of 30% compared with last year.Asia/Pacific achieved sales of almost Euro 1 billion. The highestpercentage growth was seen in Eastern Europe, with sales in theregion growing by 53% to Euro 291 million. Prospects for the future: Heidelberg looking to achieve salesof Euro 8 billion in five years We are expecting a slight deterioration in economic conditionsin the 2001/2002 fiscal year. Growth in the USA will slow downfurther in the first half of the 2001/2002 fiscal year. However,we are expecting a slight recovery in the second half of theyear. China in particular will continue to exhibit strong growth. "Heidelberg expects to outperform the industry as a whole in2001/2002, at a time when business is likely to be quitesubdued", commented Bernhard Schreier, referring to Heidelberg'sprospects for the current fiscal year. "Because of our rigorouspositioning as a solutions provider for the entire graphic artsindustry, I am highly optimistic that we will be able to achievea growth in sales running into almost double figures in the yearsto come", stated Schreier. But this can only be achieved, headded, if there are no unforeseen economic downturns on marketsthat are relevant to Heidelberg. In five years, Schreier predictssales of around Euro 8 billion for the Heidelberg Group. "We willachieve this by developing new products and by extending ourmarket shares in all divisions". The new Annual Report for the 2000/2001 fiscal year can alsobe found on the internet at www.heidelberg.com. Further information is available on the Internet atwww.journalist.heidelberg.com. Important Note: This press release contains forward-looking statements whichare based on assumptions and estimations by the managment boardof Heidelberger Druckmaschinen Aktiengesellschaft. Even thoughthe management board is of the opinion that those assumptions andestimations are realistic the future development and theprojected results may deviate substantially from the forward-looking statements. Those deviations can be due to severalfactors including but not limited to changes in the macro-economic situation, in the exchange rates, in the interest ratesand in the graphic arts industry. Heidelberger DruckmaschinenAktiengesellschaft gives no warranty and does not assume theliability for any damages in case the future development and theprojected results do not correspond with the forward-lookingstatements. HEIDELBERG GROUP March 31, 2001 March 31, 2000 Change in %
EUR m.
EUR m. Net sales
5,303
4,601
15.3
Digital
763
659
15.8
Sheetfed
3,331
2,849
16.9
Web Systems
801
695
15.3
Finishing
408
398
2.5 Incoming orders 5,537
4,694
18.0 Digital
774
670 Sheetfed
3,488
2,911 Web Systems
858
704 Finishing
417
409 Result of ordinary operations 506
463
9.3
Digital
-64
-26
Sheetfed
543
491
Web Systems
0
-7
Finishing
27
5 Earnings before taxes
531
487 Net profit
283
251
12.7 Net profit w/o extraordinary 342 profit effects (Special fonds) Cash Flow
524
447 CAPEX
237
321 Employees
25,936
24,177
7.3 Digital
4,670
4,169 Sheetfed
16,331
15,148 Web Systems
3,196
2,964 Finishing
1,739
1,896 Sales by regions March 31, 2001 March 31, 2000 Change in %
in %
in % Central Europe
1,914
1,911
0.2 Eastern Europe
291
190
52.7 NAFTA
1,794
1,550
15.7 Central+South America
163
111
46.6 Asia/Pacific
997
736
35.5 Middle East/Africa 144
104
38.3 ots Original Text Service: Heidelberger Druckmaschinen AGInternet: http://www.presseportal.de For further information:Heidelberger Druckmaschinen AG Corporate Communications ThomasFichtl Tel: +49 (0)6221-92-4747 Fax: +49 (0)6221-92-5069 E-mail:thomas.fichtl@de.heidelberg.com
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