Heidelberg clearly increases net result in the second quarter

Heidelberg (ots) -

- Operating result (EBITDA) excluding special items increased from
EUR33 million to EUR44 million
- Positive net result of EUR9 million (previous year: EUR-9
million)
- Sales in Q2 at EUR586 million significantly up on Q1, but still
slightly below the previous year
- Order backlog of EUR765 million approximately one fifth higher
than previous year
- Outlook: Sights still set firmly on the targets for the year

During the second quarter (July 1 to September 30, 2016) of
financial year 2016/2017, Heidelberger Druckmaschinen AG (Heidelberg)
significantly increased its operating result compared to the previous
year, as previously envisaged, and also achieved a clearly positive
net result after taxes. After the first six months, the result was
still below the previous year's figures due to sales and the costs
associated with the drupa trade show. However, as a result of drupa,
incoming orders (up around 6 percent) and the order backlog (up 19
percent) were increased significantly. The Group has thus created a
sound basis on which to achieve its targets for the year as a whole.

"The clear improvement in the result during the second quarter
shows that our realignment is bearing fruit. In view of the solid
order situation, we anticipate that the second half of the year will
bring a considerable improvement in sales and the result compared to
the first half of the year. The targets for the year as a whole
therefore continue to apply," said Dirk Kaliebe, the company's CFO.

Heidelberg turns around its net result after taxes in the quarter
under review to generate EUR9 million

As announced, sales and the result in the second quarter were much
better than in the previous quarter of the current financial year.
Net sales thus rose by EUR100 million compared to the first quarter
to EUR586 million (previous year: EUR599 million). Total sales up to
the half-year point were EUR1.072 billion (previous year: EUR1.162
billion). Thanks to strong demand at drupa, incoming orders for the
first six months were up around 6 percent on the previous year's
figure (EUR1.323 billion) at EUR1.408 billion, while the order
backlog at EUR765 million was even some 19 percent higher (previous
year EUR644 million). As a result, Heidelberg has a good starting
base for achieving the anticipated significant sales growth in the
second half of the year.

Both EBITDA and EBIT in the quarter under review were up on the
figures for the previous year. After six months, these key indicators
were still down on the previous year's figures due to sales and a
positive non-recurring effect of EUR19 million from the initial
consolidation of PSG in the previous year as well as trade show costs
of approximately EUR10 million. As a result, EBITDA excluding special
items rose to EUR44 million in the second quarter (previous year:
EUR33 million). The total figure for the first half year was EUR45
million (previous year: EUR79 million). At EUR-3 million, special
items were lower in the quarter under review than in the previous
year (EUR-6 million). The total figure up to the half-year point was
EUR-6 million (previous year: EUR-22 million). Compared to the
previous year, the financial result improved both in the second
quarter and in the first half year. As a result, a positive net
result after taxes of EUR9 million was achieved (previous year: EUR-9
million). Looking at the half-year figures, the result was EUR-28
million compared to EUR-14 million for the same period of the
previous year.

At EUR-7 million, free cash flow in the second quarter was
slightly negative, but balanced out over the first six months taken
as a whole (previous year: EUR-30 million). Compared to the financial
year-end on March 31, 2016, the equity of the Heidelberg Group
dropped to EUR126 million as at September 30, 2016. This was due
primarily to the considerable reduction in the discount rate for
pensions in Germany. Consequently, the equity ratio on the balance
sheet date was around 6 percent. The net financial debt was EUR276
million (March 31, 2016: EUR281 million), and the leverage remains
below the target value of 2 at 1.8.

Outlook: Sights still set firmly on the targets for the year

Thanks to solid incoming orders and the increase in the order
backlog, Heidelberg has its sights set firmly on its year-end targets
for 2016/2017. The portfolio expansion in rapidly developing markets,
possible acquisitions and the drupa industry trade show will
substantially affect sales performance in the financial year
2016/2017 and the years ahead. The investment priorities in the areas
of digitalization, digital printing and services are expected to
contribute to an average sales growth of up to 4 percent per year.
Despite the inputs associated with the accelerated expansion of the
digital and service business, the EBITDA margin before special items
is expected to remain at the level of the previous year. At the same
time, the company is looking to improve the financial result by
reducing the interest burden. With this, Heidelberg is aiming for a
moderate increase in its net result after taxes against the previous
year. In the medium term, the successful reorganization of Heidelberg
is set to enable growth in Group sales of up to 4 percent per year,
taking the total to some EUR 3 billion. This includes a high
profitability level with an EBITDA margin in the range of 7 to 10
percent.

The interim report for the second quarter of financial year
2016/2017, image material, and additional information about the
company are available in the Press Lounge of Heidelberger
Druckmaschinen AG at www.heidelberg.com.

Next date on company calendar:

The figures for the third quarter of financial year 2016/2017 are
due to be published on February 9, 2017.

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.

Contact for further details:
Heidelberger Druckmaschinen AG

Corporate Public Relations
Thomas Fichtl
Phone: +49 6222 82- 67123
Fax: +49 6222 82- 67129
E-mail: Thomas.Fichtl@heidelberg.com

Investor Relations
Robin Karpp
Phone: +49 (0)6222 82-67120
Fax: +49 (0)6222 82-99 67120
E-mail: robin.karpp@heidelberg.com

Original-Content von: Heidelberger Druckmaschinen AG, übermittelt durch news aktuell