Heidelberg significantly increases net result after taxes in third quarter

Heidelberg (ots) -

- Operating result (EBITDA) improves to EUR 49 million Net result
after taxes increases from EUR7 million to EUR 18 million
- Sales of EUR 608 million are higher than in Q2 but under last
year's figures due to series production ramp-ups
- High order backlog of EUR 739 million provides basis for strong
final quarter
- Outlook: Sights still set on the targets for the year
- "Heidelberg goes digital"

After the third quarter of the 2016/2017 financial year,
Heidelberger Druckmaschinen AG (Heidelberg) is still on course to
increase its annual profit as planned. For example, during the third
quarter (October 1 to December 31, 2016), the operating result
(EBITDA) and the net result after taxes improved further compared to
the same quarter of the previous year. After nine months, sales were
still below the previous year's levels, as expected. A large number
of orders placed at drupa for innovative presses with longer delivery
times that were presented at and ordered during the trade show will
be supplied on schedule in the fourth quarter. The series launch of
these products at the end of the financial year will also generate
higher sales and a better result than in the previous year.

"The improvements in results in the third quarter show that
Heidelberg is on the right course to achieve sustainable
profitability," said Rainer Hundsdörfer, CEO of Heidelberger
Druckmaschinen AG. "We anticipate we will further increase our annual
profit with a strong final quarter."

New organization oriented towards digital transformation

Heidelberg is realigning its organization to accelerate the
company's digital transformation and thus ensure the correct business
models are in place for the high-growth customer segments in the
years ahead. In future, there will be a division that will develop,
manufacture, and supply appropriate digital technologies and products
for new business models. Another division will devise and market
these models. Furthermore, the global sales and service network will
be more strongly focused on the digital challenges that customers
face.

"Heidelberg goes digital. We are getting the company fit for the
digital future," added Hundsdörfer. "To do that, we will develop and
roll out our own innovative business ideas. However, we will also be
strengthening our position in this area through acquisitions."

Net result after taxes increases from EUR 7 million to EUR 18
million in Q3

Compared to the previous quarter of the current financial year,
sales and the result showed further improvement in the third quarter.
For example, sales rose from EUR 586 million in the second quarter to
EUR 608 million (same quarter of previous year: EUR 640 million).
After nine months, the total sales of EUR 1.680 billion were still
below the previous year's level (EUR 1.802 billion) due to the launch
of series production for the drupa innovations at the end of the
financial year. Over the same period, incoming orders at EUR 1.990
billion were approximately 4.5 percent higher than the previous
year's value (EUR 1.904 billion) and demonstrate the keen interest
customers are showing in the digitization solutions from Heidelberg.
At EUR739 million, the order backlog was around 26 percent up on the
previous year's figure (EUR 586 million). As a result, Heidelberg has
a good platform for achieving the significant sales growth planned in
the fourth quarter.

Profitability, as expressed in EBITDA and EBIT, increased in the
quarter under review compared to the previous year's values. After
nine months, these key indicators were still down on the previous
year's figures due to sales and a positive non-recurring effect of
EUR 19 million from the initial consolidation of PSG in the previous
year and trade show costs of approximately EUR 10 million. EBITDA
excluding special items improved to EUR 49 million in the third
quarter (previous year: EUR 40 million). The total figure after nine
months was EUR 94 million (previous year: EUR 119 million). At EUR -2
million, special items in the quarter under review equaled the figure
for the same quarter of the previous year (EUR -2 million). The total
figure after nine months was EUR -8 million (previous year: EUR -24
million). The financial result for the period under review matched
the previous year's level at EUR -42 million. Consequently, the net
result after taxes in the quarter under review increased
substantially to EUR 18 million (previous year: EUR 7 million). At
EUR -10 million for the nine-month period, it was on a par with the
corresponding period of the previous year (EUR -7 million).

Free cash flow in the third quarter was slightly negative at
EUR-10 million, and overall, after nine months, it was also at EUR-10
million. Compared to the financial year-end on March 31, 2016, the
equity of the Heidelberg Group dropped to EUR246 million as at
December 31, 2016. This was due primarily to changes in the actuarial
interest rates for pensions. Consequently, the equity ratio on the
balance sheet date was around 11.4 percent (previous quarter: 6
percent). The net financial debt at EUR 282 million remained stable
(June 30, 2016: EUR 276 million), and the leverage continued to be
below the target value of 2 at 1.7.

"We have the financial strength to actively shape our route into
the digital world," said Dirk Kaliebe, CFO. "The balanced financing
framework also gives us the freedom to drive forward new business
models through targeted acquisitions."

Outlook: Sights still set on the targets for the year

Thanks to the solid incoming orders and the rise in the order
backlog, Heidelberg remains focused on its targets for 2016/2017.
Although planned acquisitions have not been implemented yet, the
company is still striving for marginal sales growth in light of a
strong final quarter of the year. Despite the inputs for the
accelerated expansion of the digital and the service business, it
also expects to achieve an EBITDA margin before special items on par
with the previous year's level in the 2016/2017 financial year. At
the same time, the financial result will improve further on account
of declining interest expenses. Thus, Heidelberg is still aiming for
a moderate year-on-year increase in its net result after taxes for
the year as a whole.

The interim report for the third 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 Press Conference for the 2016/2017 financial year is scheduled
for June 8, 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