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Heidelberger Druckmaschinen AG

Heidelberg extends its market leadership
Dividend of Euro 1.70 per share - 1999/2000 fiscal year yields record results

Heidelberg (ots)

Heidelberger Druckmaschinen AG (Heidelberg) has
successfully concluded its 1999/2000 fiscal year (1 April 1999 to 31
March 2000). With sales of Euro 4.602 billion, the Heidelberg Group
has bettered last year's figures (Euro 3.948 billion) by 16.5%.
Incoming orders were also up 39.3% at Euro 4.694 billion (1998/99
fiscal year: Euro 3.369 billion), achieving an all-time high. "The
Heidelberg Group's profit after taxes was Euro 251 million (1998/99:
Euro 256 billion), and thereby reached a very high level despite the
expenditure invested in building up digital press business",
explained Bernhard Schreier, Chairman of the Management Board. The
company will issue a dividend of Euro 1.70 per share for 1999/2000,
corresponding to a dividend yield of 2.74%.
Heidelberg shares developed well between 1 April 1999 and 31 March
2000, rising from Euro 49.50 to Euro 62.00. If the dividend paid is
taken in account, this represents an increase of 27.7%. The MDAX rose
18.4% to 4,468 points during the same period. "We expect to double
the free-float of our shares to around 30% over the next fiscal
year", stated Finance Director Dr. Herbert Meyer. He also indicated
that discussions were currently underway with major shareholders.
After Lahmeyer AG's merger into the parent company RWE, RWE AG has
been the majority shareholder (56%) of Heidelberg since the end of
1999.
The reorganized Digital division has far exceeded Heidelberg's
expectations over recent months, particularly in the field of
black/white digital printing. "Our figures show that Heidelberg has
succeeded in positioning itself as a solution provider for the entire
printing and publishing industry.
We will endeavor to systematically build upon our existing market
leadership - with digital printing as a further key pillar of
operations", explained Bernhard Schreier. The company recorded a high
export rate of 84.6%, a slight improvement on last year's figure
(82.3%). Heidelberg's total workforce increased by 2,618 to 24,177
during the period under review (as of 
31 March 2000).
Very successful first quarter - record figures at drupa
The successful conclusion of the 1999/2000 fiscal year was also
continued in the first quarter of the current year 2000/01. At drupa
2000, the most important fair for the graphic arts industry,
Heidelberg received orders with a value in excess of Euro 1.5
billion. This record figure was more than triple the orders received
at drupa 1995. For the first time ever, Heidelberg's portfolio at the
Dusseldorf fair included complete solutions tailored to the precise
needs of its customers. These included printing presses, but also
prepress and postpress products such as software, consumables and
services. The highlights of the fair included the NexPress 2100 color
digital press and the new Mainstream 80 newspaper press. One of
Europe's most renowned newspaper publishers, the British Telegraph
Group, ordered no less than seven Mainstream rotary presses with a
total of 263 printing units at drupa. "This order was one of the
largest in drupa's history", states Bernhard Schreier. "It shows that
we have a leading role to play in the newspaper industry." Over
recent months, Heidelberg has consistently implemented its strategy
and moved from being a press manufacturer to a complete solution
provider for the entire printing and publishing industry.
The company has further optimized its offset printing operations
and reinforced its newspaper and digital printing activities. The
takeover of 30% of the Swiss Gallus Group in September 1999 also
strengthened the company's foothold in the important growth sector of
flexographic printing.
Brilliant start for Digital
The new Digital division recorded sales of Euro 659 million, and
exceeded expectations by 25%. More than 1000 units of Heidelberg's
first digital black/white press, the Digimaster 9110, have already
been sold.
The company aims to achieve a market share of around 20% in this
product segment within five years. Heidelberg moved into digital
color printing when it founded NexPress, a joint venture between
Heidelberg and Kodak.
Sheetfed sets a new sales record
Heidelberg was also extremely successful in the sheetfed sector in
the 1999/2000 fiscal year, achieving total sales of Euro 2.850
billion, some 8.5% up on the previous year. The highest growth rates
in sales were recorded in Asia, Central Europe and NAFTA.
Web Systems - successes with Sunday technology
With sales of Euro 695 million, the Web Offset division recorded a
nominal growth of 3% during the last fiscal year. A concentration
among large printshops meant that customers in North America were
holding back temporarily on their purchases. The division was able to
increase its market share, however, in other key markets such as
Europe and Asia. In the sector involving the production of catalogs,
magazines and supplements, Heidelberg is the world market leader with
a share in excess of 40%. The innovative Sunday technology plays a
key role in Web Systems, being integrated for the first time into the
series of new newspaper presses.
Finishing records significant increase in sales
The company's Finishing division saw sales boosted by 71% to Euro
398 million during 99/00. The growth, adjusted for initial
consolidation effects, was 17%. Heidelberg succeeded once again in
reinforcing its position in what is a virtually stagnant market for
folding systems and delivery units - with a market share in excess of
40%. Sales increases of just under 50% were achieved in the field of 
gatherer-stitchers, while the company also succeeded in boosting its
share of the world market to around 25%.
Sales rocket with six regions
More than 240,000 customers worldwide now use Heidelberg products.
To provide them with direct, local support, Heidelberg has
consistently expanded its sales and service organization over recent
years and is now represented in over 170 countries. 42% of the
Group's sales were achieved in the Central Europe Region. With total
revenue of Euro 1.9 billion, Heidelberg achieved its best figures
ever. Heidelberg Germany and Heidelberg UK were particularly
successful, achieving record sales of Euro 676 million and Euro 342
million respectively. In the Eastern Europe Region, Heidelberg Russia
and Heidelberg Poland also saw sales climb significantly. The NAFTA
region experienced strong growth for 1999/2000, with sales up 27.6%
to around Euro 1.6 billion. In Central and South America, sales of
Euro 111 million were below the previous year's level due to the
difficult economic circumstances. High sales in the Web sector meant
that Heidelberg do Brasil was nevertheless able to improve on last
year's sales figures.
In Asia, Heidelberg was able to utilize the economic recovery in
the Asia/Pacific Region and further increase its market share.
Heidelberg Japan, for example, saw sales rise by 13% to Euro 268
million. Heidelberg China, too, was able to record significant
growth. China is Asia's most important growth market and the company
is committed to expanding its presence in this region. 
In the Middle East and Africa Region, most countries were able to
follow on the very positive growth in sales in 1998/99.
The Print Media Academy opens
In the middle of April, Heidelberg celebrated the company's 150th
anniversary by opening the Print Media Academy. "This knowledge and
training center allows us to provide the entire graphic arts industry
with hardware and software, but also with 'brainware'", explains
Bernhard Schreier. As we move into the information era, the latest
technologies must also be accompanied by appropriate know-how.
A network of academies with facilities in Atlanta, Kuala Lumpur,
Tokyo, Moscow, Sao Paulo, Cairo and Shenzhen (China) is ensuring that
Heidelberg is also able to provide training courses close to its
customers and its various markets.
Further growth forecast for the 2000/01 fiscal year
Heidelberg forecasts very positive developments for the current
fiscal year. The company received a very positive boost from drupa,
so that order levels are expected to increase beyond the average rate
of economic growth. Group sales in 2000/01 will be in the region of
Euro 5 billion, with profits for the year up 8 to 10% on the
1999/2000 fiscal year. "First-class high-tech products coupled with
Heidelberg's expertise as a solution provider and our worldwide
service network mean we will have a distinct competitive advantage in
future", explains Bernhard Schreier. According to the Chairman of the
Management Board, the print sector will also profit from the
electronic media. "Heidelberg will continue to be successful and
benefit from opening up new markets and its complete focussing on
customer needs."
HEIDELBERG GROUP            1999/2000     1998/1999 Change %
                                EUR             EUR 
                               million       million
   Orders received              4,694        3,369      +39.3
      Digital                   670          374        +79.1
      Sheetfed                  2,911        2,218      +31.2
      Web                       704          560        +25.7
      Finishing                 409          217        +88.5
   Sales                       4,602       3,948        +16.5
      Digital                   659          416        +58.8
      Sheetfed                 2,850       2,626         +8.5
      Web                       695          674         +3.1
      Finishing                 398          232        +71.4
Operating result             463          459         +0.9
      Digital                   -26         -28   
      Sheetfed                  491          486   
      Web                       -7           15   
      Finishing                  5          -14
Profit before tax            487          481         +1.3
   Profit after tax             251          256         -2.0
   Cash flow                    447          466         -4.1
   Investments                  262          207        +26.6
   Employees                  24,177       21,559       +12.1
      Digital                  4,169        2,550       +63.5
      Sheetfed                15,148       14,377        +5.4
      Web                      2,964        2,903        +2.1
      Finishing                1,896        1,729        +9.7
      Sales by region          4,602        3,948       +16.5
      Central Europe           1,911        1,851        +3.2
      Eastern Europe            190           206        -7.8
      NAFTA   1,550            1,550        1,215       +27.6
      Central/South America     111         123          -9.8
      Asia/Pacific   736        736         451         +63.2
      Middle East/Africa        104         102          +2.0
ots Original Text Service: Heidelberger Druckmaschinen AG
Internet: http://recherche.newsaktuell.de
For further information please contact
Nina Purtscher
Press Officer
Heidelberger Druckmaschinen AG
Corporate Communications
phone: +49 6221 92 5064
fax: +49 6221 92 5069
The press release and all photographs for the Press Conference on the
Financial Statements of Heidelberger Druckmaschinen AG can also be
downloaded from the Internet:
www.journalist.heidelberg.com
User name: Journalist, Password: Heidelberg

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