Transformation of Heidelberg already showing effects in first quarter of 2020/2021

Heidelberg (ots) -


- As expected, sales and incoming orders still significantly impacted by
COVID-19 pandemic, but steady signs of recovery discernible

- Earnings from restructuring the company pension plans deliver EBITDA excluding
restructuring
result of EUR 60 million

- Sale of Gallus Group and CERM N.V. expected to yield earnings in mid-double-di
git million
euro range later in the current financial year

- Early repayment of high-yield bond in September to result in sustainable impro
vement of the
financial result

- Forecast for financial year 2020/21 unchanged

In March of this year, Heidelberger Druckmaschinen AG (Heidelberg) launched a
transformation program designed to boost profitability, enhance competitiveness,
and secure the company's future. Thanks to the consistent and prompt
implementation of key measures in this program, the company already generated
positive results in the recently concluded first quarter of financial year
2020/2021 (April 1 to June 30, 2020). As a result, it was able to successfully
counter the huge operational pressures brought by the COVID-19 pandemic.

Nonetheless, as anticipated, the consequences of the global economic crisis had
a considerable impact on sales and incoming orders in the first quarter. For
example, at approximately EUR 330 million, netsales were around a third lower
than in the same quarter of the previous year (EUR 502 million). Incoming orders
in the first three months dropped by a total of 44 percent to EUR 346 million
(previous year: EUR 615 million), with a clear improvement recorded in June
compared to the previous two months of the quarter. This upward trend also
continued through July. Despite the challenging market development, Heidelberg
achieved EBITDA excluding restructuring result of EUR 60 million (Q1 2019/2020:
EUR 14 million), which was due to earnings of EUR 73 million generated by
restructuring the company pension plans. Consequently, the net result after
taxes in the quarter was positive, at EUR 5 million (previous year: EUR -31
million). Given that net financial debt has been reduced to EUR 122 million
(previous year: EUR 391 million), Heidelberg is in a financially stable
position.

Thanks to the comprehensive package of measures in the transformation program,
which includes improvements to structures and organization, as well as the
divestment of loss-generating business activities and peripheral elements of the
portfolio, Heidelberg is on track to improve its profitability by some EUR 100
million in the medium term.

"As expected, and as across virtually all sectors and particularly the