Financial Year 2009/10: Heidelberg Presents Figures for First Six Months - Orders Stabilize at Low Level

* Incoming orders of EUR 534 million in Q2 roughly on a par with previous
quarter
* Sales in 2nd quarter total EUR 499 million
* Operating result in Q2 excluding special items EUR minus 65 million
* Positive free cash flow of EUR 11 million in Q2
* Figures for first six months down on last year as a result of weak market
conditions
* Higher cost savings have marked impact in second half of financial year

HEIDELBERG, Germany--(Business Wire)--
Incoming orders in the first six months of the financial year 2009/10 (April 1
to September 30) at Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) have
stabilized at the current low level. In total, however, the figures for the
first six months are down significantly on equivalent figures for the previous
year. As print shops are still running well below capacity due to low
advertising budgets, the company does not expect any marked increase in
investments in the print media industry for the financial year as a whole.

Incoming orders of EUR 534 million in the second quarter (July 1 to September
30) were roughly on a par with the previous quarter (EUR 550 million), having
stabilized at a low level since October 2008. The significant fall in incoming
orders to EUR 1.084 billion in the first half of the year was also influenced by
the high order volumes stemming from last year`s drupa show (previous year: EUR
1.872 billion).

"Developments within the individual regions differ considerably. Asia is showing
signs of recovery, which are not sufficient to fully compensate for the
downturns in the other regions," says Heidelberg CEO Bernhard Schreier.
"Incoming orders are bottoming out now, but we do not expect to see clear signs
of improvement in the subsequent quarters of the current financial year. We can
only expect to see an improvement in production values and capacity utilization
in the print industry when the economy as a whole shows signs of a lasting
recovery, which in turn will encourage a greater readiness to invest."

The order backlog of the Heidelberg Group remained constant in the second
quarter of the current financial year at EUR 617 million (previous quarter: EUR
616 million).

The low level of incoming orders led to a slight drop in sales in the second
quarter over the first quarter, falling from EUR 514 million to EUR 499 million.
In the first six months of the current financial year, sales amounted to a total
of EUR 1.013 billion and were thus down around 31 percent on the previous year
(EUR 1.461 billion).

The operating result excluding special items amounted to EUR minus 65 million in
the second quarter (previous year excluding special items: EUR minus 10
million). As a result of low profit contributions due to weak sales, the
cumulative figure for the operating result after two quarters was EUR minus 128
million (previous year: EUR minus 45 million). Further expenditure for special
items amounting to EUR 11 million has been incurred up to September 30, 2009
(expenditure for special items in the previous year: EUR 40 million). The net
result for the first six months was EUR minus 147 million (previous year: EUR
minus 95 million).

As a result of a further reduction in the working capital, a positive free cash
flow of EUR 11 million was recorded in the second quarter. In the first six
months as a whole, free cash flow was only slightly negative at EUR minus 18
million, up significantly on the previous year`s level of EUR minus 273 million.

"All our measures aimed at cutting costs by around EUR 400 million a year are
currently in the process of being implemented. This is going some way to
compensating the burden on results brought about by falling sales," explains
Heidelberg CFO Dirk Kaliebe. "The cost savings achieved so far and the positive
effects in asset management have enabled us to achieve a positive free cash flow
in the second quarter and reduce the net debt over the previous quarter."

As a result of the slight increase in volumes in comparison with the previous
quarter and higher cost savings anticipated over the further course of financial
year 2009/10, the company expects to keep the operating result fairly level in
the second six months of the year.

With the conclusion of negotiations on a reconciliation of interests and a
redundancy plan at the start of October, the planned cutbacks at Heidelberg are
progressing. On September 30, 2009, Heidelberg had a workforce of 18,201
worldwide, representing a reduction of around 2,400 employees since the end of
March 2008. In total, the company plans to cut around 4,000 jobs worldwide by
the end of financial year 2010/11.

The weak economic conditions worldwide have impacted on the company`s business
in all sectors. Sales and incoming orders in this area were therefore down on
last year. However, incoming orders for the new large-format presses exceeded
expectations. Looking at the individual regions, Asia/Pacific was the only
region to improve in terms of incoming orders. At EUR 172 million, orders for
the second quarter were up on the previous year`s figure (EUR 147 million). By
contrast, incoming orders in all other regions fell compared to the previous
year.

Outlook

As a result of the business developments in the first six months of the year and
the current economic and market forecasts, Heidelberg does not expect the level
of investment in the print media industry to rise in the current financial year.
For the subsequent quarters in financial year 2009/10, the company expects no
significant increase in incoming orders and sales over the previous quarters,
which means that the figures will likely fall short of the original
expectations. Consequently, for the financial year as a whole, Heidelberg sales
will fall well short of the figure for financial year 2008/09. As a result of
the low sales volume, Heidelberg forecasts an operating result (excluding
special items) of between EUR minus 110 million and EUR minus 150 million. All
the cost-cutting measures planned at Heidelberg are currently in progress.
Moreover, the agreements made to date mean that personnel costs can still be
adapted flexibly as needs dictate.

The tables as well as additional information can be found at the Heidelberg
Press Lounge at www.heidelberg.com.

Other dates:

Publication of the figures for the third quarter for financial year 2009/2010 is
scheduled for February 9, 2010.

Important note:

This press release contains forward-looking statements based on assumptions and
estimations by the Management Board of Heidelberger Druckmaschinen
Aktiengesellschaft. Even though the Management Board is of the opinion that
those assumptions and estimations are realistic, the actual future development
and results may deviate substantially from these forward-looking statements due
to various factors, such as changes in the macro-economic situation, in the
exchange rates, in the interest rates and in the print media industry.
Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not
assume liability for any damages in case the future development and the
projected results do not correspond with the forward-looking statements
contained in this press release.

Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49(6221) 92 5900
Fax: +49 (6221) 92 5069
E-mail: thomas.fichtl@heidelberg.com

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