investors’ & analysts’ conference fy 10 · source: heidelberg; financial data based on...

1

Bernhard Schreier, CEO

Dirk Kaliebe, CFO

Andreas Trösch, Head of Investor Relations

Investors’ & Analysts’ Conference FY 10

Heidelberger Druckmaschinen AG

June 15, 2010

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NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF

AMERICA, CANADA, JAPAN OR AUSTRALIA

This presentation constitutes neither an offer to sell nor a solicitation to buy or subscribe for securities. Any such offer

will be made solely on the basis of the Securities Prospectus to be published and registered with the German Financial

Supervisory Authority (BaFin). The information legally required to be provided to investors is contained only in the

Securities Prospectus.

The information contained in this presentation is not for distribution, directly or indirectly, in or into the United States of

America (including its territories and possessions of any State of the United States of America or the District of

Columbia) and must not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of

1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This

publication is not an offer of securities for sale in the United States of America. The securities have not been and will

not be registered under the Securities Act and may not be offered or sold in the United States of America absent

registration or an exemption from registration under the Securities Act. Heidelberg Druckmaschinen AG does not intend

to register any portion of the offering in the United States of America or to conduct a public offering of the securities in

the United States of America.

This presentation is not an offer of securities for sale in the United Kingdom, Canada, Japan or Australia.

The offer or sale of securities or transactions may be restricted by law. Potential investors are required to inform

themselves of and to observe any legal restrictions on their involvement in any transaction. There will be no offer or

sale of the securities in any state or jurisdiction in which such offer; solicitation or sale would be unlawful prior to

qualification under securities laws of such state or jurisdiction.

This presentation is subject to completion and amendment without notice.

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Achieved earnings guidance given in October 2009

Order intake has stabilised in past 4 quarters and shows first signs of recovery

Cost savings from successfully implemented restructuring measures

− Cost savings of €400m realised by implementation of „Heidelberg 2010“

− Additional efficiencies of c. €80m identified and realisation initiated

New segmentation to enhance focus on strategic priorities

Planned capital increase to strengthen balance sheet and support turnaround

Refinancing will be finalised by 2012

Today’s presentation will provide a detailed update on the recent development of

Heidelberg’s business and its strategic priorities to safeguard future success

Executive SummaryHeidelberg is on track to deliver strong recovery of results

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Heidelberg update highlights

Strong position to benefit from expected market recovery

Market leadership: global market and technology leadership in offset printing

technology – strengthened further through recent down-cycle in most format classes

Market recovery: sheetfed offset equipment market set for a cyclical recovery –

expected back up to 80% of previous cycle peaks

Focused strategy

Value creation roadmap

1

2

3

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Focus on key segments of the €40bn printing technology market

Packaging

3.0

Commercial

7.3

Pre-

press

1.7

Post-

press

1.3

Pre/Post-press

Maintenance

3.2

Parts

3.2

Other

3.2

Inks, coatings, toner

12.7

Plates

4.0

Services 1,2 Consumables 1Press 1 Pre/postpress 1

~ 42% ~ 14% ~ 43% ~ 4%

Sheetfed

Thereof sheetfed ~4.0

Equipment Services & consumablesM

ark

et

siz

e C

Y 2

008 (

€b

n)

Thereof sheetfed~2.3

Heidelberg installed base 2

Market

Heidelberg

sheetfed

positionClear market

leader

Ancillary

business

Growth

potential

Growth

potential

Strong position – market leadership1

Source: Heidelberg estimates (market shares); The Boston Consulting Group, Jun. 2010 (market data); calendar year(1) Market sizes reflect all printing technologies (i.e. sheetfed, webfed, digital, flexo, gravure); Heidelberg market share generally referring to sheetfed markets(2) Heidelberg services targeted to Heidelberg installed base only, size of addressable market approx. €1bn

Sheetfed

Thereof sheetfed~ 8.3

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Market position in prime formats1 reinforced during recent downturn

SF 70x100 SF 50x70

Source: Heidelberg estimates; data based on Heidelberg fiscal year (FYE 31 Mar)(1) Represents more than 85% of Heidelberg sheetfed offset new equipment sales(2) Based on order intake in printing units

Market Share2

+5%+9%

+19%

+15%

+3%

+106%

∆ +2pp

∆ +4pp

∆ +4pp

∆ +5pp

∆ +1pp

∆ +10pp

GlobalGlobal IndustrialsIndustrialised economies China / HKChina

Strong position – market leadership1

Superior technology and close customer

relationships are key drivers of Heidelberg’s

competitiveness

Successful market introduction of VLF and build-

up of strong presence within short time frame

VLF 145 & 162 Commentary

Market Share2

Market Share2

37% 39%44% 48%

25%21%

FY2005 FY2010 FY2005 FY2010 FY2005 FY2010

30% 35%44% 45%

19%9%

FY2005 FY2010 FY2005 FY2010 FY2005 FY2010

19%

35%

6%

FY2005 FY2010 FY2005 FY2010 FY2005 FY2010

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Strong historical correlation between economic development and

sheetfed equipment growth

Gulf war

Japan crisis

Asian crisis Dotcom crisis Financial crisis

GDP + PPV

growth rates in %

SFO equipment

growth rate in %

GDP

PPV

SFO

Equip.

Source: Heidelberg estimates, Feb. 2010 (based on: Global Insight, industry statistics, PIRA, PRIMIR, company annual reports; calendar years; 1991-2008: actuals; 2009-13: estimates)

(1) “GDP”: gross domestic product; “PPV”: print production volume; “SFO”: sheetfed offset

Growth rates: GDP and PPV vs. SFO Equipment 1

Estimates

Strong position – market recovery1

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In line with economic recovery, printing equipment market expected

to stabilize and return to growth from 2010 onwards

CAGR

09-14E

+12%

+10%

+8%

Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals; 2010-14: estimates)

Global sheetfed offset equipment market

2009: cycle trough (50% of pre-crisis

peak)

Significant pent-up demand exists due to

capex backlog among commercial

printers

Recovery from 2010 onwards to up to

80% of pre-crisis peak by 2014 expected

in the base case

€bn

Strong position – market recovery1

3.0

3.4

3.8

4.2

4.4

2.42.5

2.7

3.2

3.6

3.9

3.7

3.3

2.8

2.62.5

4.7

4.0

1

2

3

4

5

2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E

Upside case Base case Dow nside case

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Accelerated growth in services and consumables expected, driven

by strengthened print production volumes

+4%

+3%

+2%

CAGR

09-14E

+4%

+4%

+3%

SF-related consumables market (€bn)SF-related services market (€bn)

CAGR

09-14E

Less cyclical than equipment business

less affected by crisis

Maintenance and spare parts revenues

expected to grow in line with rising utilization

levels at printers

Lower cyclicality than equipment business

Accelerated growth of consumables revenues

expected to be driven by increase in print

production volumes

Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals; 2010-14: estimates)

Strong position – market recovery 1

2.02.0

2.2

2.32.4

2.0 2.02.1

2.22.3

2.0 2.02.0

2.22.2

2.0

2.3

2.1

1.0

1.3

1.5

1.8

2.0

2.3

2.5

2.8

3.0

2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E


7.88.1

8.5

9.1

9.5

7.77.9

8.3

8.8

9.1

7.7 7.88.1

8.58.8

7.7

8.3

8.3

5.0

6.0

7.0

8.0

9.0

10.0

2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E


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Strong position to benefit from market recovery

Focused strategy

Continued restructuring: further capacity and headcount reduction resulting in

substantially lowered break-even volume and improved structural profitability

Focus on clearly defined growth opportunities: packaging printing, services,

consumables, emerging markets and opportunities in digital technology


1

2

3

Focused strategy2

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Focused strategy - restructuring2

Annual fixed cost savings (€m)

One-off restructuring costs (€ million)

(179) (28) approx. (15) —

Estimated total fixed cost savings of €480m reduce cost base

sustainablyImprovement program of €400m already concluded in FY 2010, further cost measures

planned until FY 2012

—

Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar); 2009-2010: actual (as per annual report); 2011-2012: estimates (as per Heidelberg press

releases (22/04/2010, 30/03/2010, 07/10/2009, 26/03/2009))

(1) Operating expenses incl. personnel, D&A and other operating expenses, excluding cost of materials

Represents

approx. 23%

of 2008A

operating

expenses1

84

316

60

480

20

FY 2009A FY 2010A FY 2011E FY 2012E Total

84

400

460 480

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Substantial headcount reduction delivers sustainably lower cost baseWorkforce has been reduced by around 4,000 by March 20101

Actual

Headcount at FYERevenue per employee

(€ ‘000)

Focused strategy – restructuring2

Headcount development since 2005

Further workforce reduction

to adjust capacities and due

to new segmentation

Mid-term target:

Substantial increase of revenue

per employee

Moderate increase of workforce

through economic recovery

Source: Heidelberg annual reports (headcount, sales), Heidelberg press release 30/03/2010 (further headcount reduction), Heidelberg annual report FY 2010; data based on

Heidelberg fiscal year (FYE 31 Mar); 2005-10: actuals; mid-term target: estimate

(1) Including temporary workers and excluding consolidation effects

18,416 18,436

19,171

19,596

18,926

16,496 850

10,000

12,000

14,000

16,000

18,000

20,000

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

0

20

40

60

80

100

120

140

160

180

200

Headcount Revenue per employee (€ '000)

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Strong growth trend for commercial and packaging print production

volumes

233.4

256.0+1.6% p.a.

+3.0% p.a.

+1.2% p.a.

Expected development of global commercial and addressable packaging printing markets 2009-15 (PPV, €bn)

Focused strategy – packaging focus2

Addressable

packaging

printing markets

+2.3% p.a.

Commercial

printing markets

Source: Heidelberg estimate, Apr. 2010 (based on: industry statistics 2009, PIRA 2009, Jakkoo Pöyry 2008, Primir (GAMIS) 2009, Global Insight 2010; calendar years)

Strategic focus

174.7 187.9

19.923.7

38.8

44.4

2009A 2015E

Commercial Labels & tags Folding boxes

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Focus on utilisation of large installed base to strengthen services

and service parts business

Key strategic measures

Services: improve penetration of Heidelberg

installed base (addressable market c. €1.0bn)

Product bundling

Leverage large installed base >8 years age

Standardised and modular service offering

with differentiated prices

Reduction of operating costs targeted to free

up capacity for growth programs

Service parts

Recovery with rising PPV and increased

equipment utilisation expected

Global hubs to optimise logistics and

inventory

Financial impact (€m) 1

Source: Heidelberg; financial data based on Heidelberg fiscal year (FYE 31 Mar);

2008-10: actuals; mid-term target: estimate

(1) Numbers include service parts, technical services, contract services and training

Focused strategy – services focus2

Mid-term target:

sales volume of > €450m p.a.

(> 15% of total sales)

Mid-term target

423 428400

17%

12%

14%

0

100

200

300

400

500

600

700

FY '08 FY '09 FY '10

Services sales

% of total sales

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Leveraging the Heidelberg brand and global access to customers

for broader consumables offering

Key strategic measures Financial impact (€m)

Direct access to customers and strong brand

Print production know-how

Product bundling

Bargaining power through standardized

portfolio and global supplier management

Supply chain management combined with

existing global spare parts supply chain

(local warehouses, regional hubs)

Targets:

− Harmonize and complete product portfolio

over next 2 years in each market

− Improve market coverage and penetration

− Global market share:

4% (2010) 7% (2015 targeted)

Focused strategy – consumables focus2

Mid-term target:

sales volume of > €450m p.a.

(> 15% of total sales)

Mid-term target


2008-10: actuals; mid-term target: estimate

281

308 309

8%

13%

10%

0

100

200

300

400

500

600

FY '08 FY '09 FY '10

Consumables sales

% of total sales

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Emerging markets sales as % of group sales 1

Heidelberg captures strong expected emerging markets growth

Source: Heidelberg estimate – Apr. 2010, Industry statistics 2009, PIRA 2009, Jakkoo

Pöyry 2008, Primir (GAMIS) 2009, Global Insight 2010; calendar years

Focused strategy – emerging markets focus2

2008-2014E real GDP growth

Data points shown for CY 2010

2010E total PPV growth (value in €)

-2% -2%

4%

7%

3%

8%

0%

-1%

Industrialized North

America

Western

Europe

Emerging China Brazil India Russia

Industrialized North America Western EuropeEmerging China BrazilIndia Russia

2%3%

2%

6%5%

8%

4%

9%

Industrialized North

America

Western

Europe

Emerging China Brazil India Russia

2008A 2009A 2010E 2011E 2012E 2013E 2014E

Mid-term

target

(1) Financial data based on Heidelberg fiscal year (FYE 31 Mar); “emerging markets”

include Eastern Europe, Latin America, Asia (ex Japan, Australia, New Zealand), Mid-

East / Africa; 1998-2010 actuals

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1998 2000 2002 2004 2006 2008 2010 2012 2014

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Digital opportunity – expanding Heidelberg’s addressable market

Digital manufacturer’s contribution ...Heidelberg’s contribution ...

Sales platform and infrastructure

In-depth customer knowledge and understanding

of customer needs

Direct customer access and proximity on a global

scale

Sophisticated integrated workflow tools,

integration capabilities

Service expertise and network

Top technology and process know-how in printing

Customer training

Brand leadership

Established digital product offering

Technological know-how / experience in digital

printing

Strong product development pipeline

Complements Heidelberg’s product offering as print

shops need digital equipment for low volumes

Partnership model

Focused strategy – digital opportunity2

Complete and competitive solutions for customer needs in

short runs

Integrated solutions from a single supplier, including

workflow / software and consumables

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Strong position to benefit from market recovery

Focused strategy


Marked recovery from current cycle low expected

Stabilisation of order volumes and revenues in recent quarters

Commitment to reposition Heidelberg on a path of sustained profitability

1

2

3

Value creation roadmap3

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0

200

400

600

800

1000

1200

1400

Q1 FY 03/04

Q2 Q3 Q4 Q1 FY 04/05

Q2 Q3 Q4 Q1 FY 05/06

Q2 Q3 Q4 Q1 FY 06/07

Q2 Q3 Q4 Q1 FY 07/08

Q2 Q3 Q4 Q1 FY 08/09

Q2 Q3 Q4 Q1 FY 09/10

Q2 Q3 Q4

(€m)

810 880

900

960

Incoming Orders Order Backlog

910

749

1,046 1,017 1,018

874

940

530

649

drupa 2004 drupa 2008IPEX 2006

609

678

Order development shows clear improvement trend

Source: Heidelberg; data based on Heidelberg fiscal year (FYE 31 Mar); actuals

596


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Strong orders from China, Brazil and a robust EMEA region

increased order intake by 11% in Q4 versus Q3 FY 2010

€ millionFY2009

Q3

FY2009

Q4

FY2010

Q1

FY2010

Q2

FY2010

Q3

FY2010

Q401/10/08

- 31/12/08

01/01/09

- 31/03/09

01/04/09

- 30/06/09

01/07/09

- 30/09/09

01/10/09

- 31/12/09

01/01/10

- 31/03/10

EMEA 232 223 234 203 254 265

Eastern Europe 77 30 46 56 70 77

North America 82 65 59 67 57 62

Latin America 43 18 26 36 36 53

Asia / Pacific 126 138 185 172 192 221

Heidelberg-Group 560 474 550 534 609 678


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Resilience of order intake from emerging markets


EMEA

47.6%

Asia / Pacific

22.5%

North America

12.4%

Latin America

6.0%

Eastern

Europe

11.6%

Regional split of order intake in FY2009 (€2,906m) Regional split of order intake in FY2010 (€ 2,371m)

EMEA

40.3%

Latin America

6.4%

Asia / Pacific

32.5%

North America

10.3%

Eastern

Europe

10.5%

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Key financials FY 2010 show positive trend in H2EBIT break-even (before special items) due to savings from cost-cutting measures


€ millionFY2009 FY2010

H1 H2

01/04/2008

-31/03/2009 H1 H2

01/04/2009

-31/03/2010 D to pY

D H2

to H1

Order intake 1,872 1,034 2,906 1,084 1,287 2,371 -18.4%

Net Sales 1,461 1,538 2,999 1,013 1,293 2,306 -23.1%

EBIT before Special items -45 -4 -49 -128 -2 -130 -81 €m

Special items 40 139 179 11 17 28 -151 €m

EBIT after Special items -85 -143 -228 -139 -20 -159 69 €m

Financial result -46 -73 -119 -49 -79 -128 -9 €m

Profit before Tax -131 -216 -347 -188 -99 -287 60 €m

Net profit/Net loss -95 -154 -249 -147 -82 -229 20 €m

Free Cash Flow -273 72 -201 -18 -44 -62 139 €m

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€ million

Sales

FY 2009 FY2010

EBIT

FY2009

FY 2010

01/04/2008

- 31/03/2009

01/04/2009

- 31/03/2010

01/04/2008

- 31/03/2009

H1 H2 01/04/2009

- 31/03/2010

Press 2,621 2,058 -35 -111 1 -110

Postpress 353 229 -31 -21 -10 -31

Financial Services 25 19 17 4 7 11

Heidelberg-Group 2,999 2,306 -49 -130

Special items 179 28

-228 -159

2323

Strong earnings improvement in H2 FY 2010


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Q1 FY2010 Q2 FY2010 Q3 FY2010 Q4 FY2010 FY 2010

-63-65

-13

11

FY 2010 EBIT of – €130m 1)

improved during the year

EBIT1 (€m)

Sales (€m) 514 499 578 715 2,306

Turnaround in sales and stricter cost management improve

profitability quarter by quarter in FY 2010

FY 2010

Source: Heidelberg quarterly reports

(1) EBIT before special items

Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010(FYE 31 Mar)

For FY 2011E, similar

EBIT seasonality

expected as in

FY 2010, albeit on a

higher earnings level


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Sustainable cost cutting lowers break-even point and

improves operating leverage during recovery

Pre-restructuring (2008) Post-restructuring – break-even

Volume related

reduction

Cost of materials

c. 46% of net sales

Net sales Cost of

materials

Other (net)

costs

EBIT

Attractive earnings

achievable at

lower sales

volumes

Expected mid-term op. leverage

Source: Heidelberg annual report (FY 2008), Heidelberg press releases (22/04/2010, 30/03/2010, 07/10/2009, 26/03/2009); financial data based on Heidelberg fiscal year

(FYE 31 Mar)

Cumulative impact

of targeted cost

savings by FY 2011

Net sales Cost of

materials

Other (net)

costs

EBIT Net sales Cost of

materials

Other (net)

costs

EBIT

Targeted

cost savings

by FY 2011


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Mid-term sales target to achieve €3bn+

Target sales mix

(€bn)

Sheetfed offset equipment market growth scenarios

FY 2010 Mid-term

target

€2.3bn

€3bn+

HDEHeidelberg

Equipment

HDEHeidelberg

Equipment

Other HDE 1

New

equipment

HDSHeidelberg

Services

HDSHeidelberg

Services


2010: actual; mid-term target: estimate

(1) Other HDE sales incl. Gallus, WEB, post-press, other new equipment

CAGR

09-14E

+12%

+10%

+8%

Source: The Boston Consulting Group, Jun. 2010 (calendar years; 2007-09: actuals;

2010-14: estimates)

Mid-term target: maintain at least new equipment market share of approx. 42%


3.0

3.4

3.8

4.2

4.4

2.42.5

2.7

3.2

3.6

3.9

3.7

3.3

2.8

2.62.5

4.7

4.0

1

2

3

4

5

2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E


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2727

New segmentation implemented to better reflect strategic

positioning of Heidelberg

PostpressPress

Heidelberg ServicesHeidelberg Equipment

Systemservice

Heidelberg Spare Parts

Saphira Consumables

Prinect Software

CtP

Business Consultancy

Remarketed Equipment

Press

Postpress Commercial

Postpress Packaging

Linoprint

Financing Partners

Export Credit Insurance

Heidelberg Print Finance

Financial ServicesService

New

se

gm

en

tatio

nO

ld s

eg

me

nta

tio

n

Financial Services

Equipment ServiceEquipment

Stephan Plenz Marcel Kießling Dirk Kaliebe

Bernhard Schreier (CEO)


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New segmentation enhances focus on strategic priorities –

divisional view FY 20101

1) Preliminary reconciliation/pro forma

New segmentation reflects strategic positioning for Heidelberg going forward

Equipment: significant deterioration of sales volume and mix

Services: relatively stable sales volume, EBIT break-even achieved

€ million Sales EBIT

FY2010

01/04/2009 – 31/03/2010

Heidelberg Equipment (HDE) 1,271 -142

Heidelberg Services (HDS) 1,016 1

Heidelberg Financial Services (HDF) 19 11

Heidelberg-Group 2,306 -130


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Strict asset management to protect balance sheet in weak

economic environment

€ millionFY2009 FY2010 FY2009 FY2010

03/31/2009 03/31/2010 03/31/2009 03/31/2010

Fixed assets 1,008 924Shareholder's equity /

minorities796 579

Current assets 2,107 1,769 Provisions 973 938

thereof inventories 1,034 827 thereof provisions for pensions 154 225

thereof receivables from customer

financing273 212 Other liabilities 1,336 1,262

thereof trade receivables 451 396 thereof trade payables 181 132

Deferred tax assets,

prepaid expenses, other126 186 thereof financial liabilities 760 816

thereof deferred tax assets 92 151Deferred tax liabilities, deferred

income136 100

thereof prepaid expenses 18 18 thereof deferred tax liabilities 38 13

thereof assets - held for sale 16 17 thereof deferred income 98 88

Total assets 3,241 2,879 Total equity and liabilities 3,241 2,879


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FY 2010A

FY 2010A

3030

Tighter cash management

Net working capital in €m / as % of LTM sales 1 Mid-term target

R&D in €m / as % of quarterly sales

Capex2 in €m / as % of quarterly sales

FY 2008A

< 35%

≤ 5%

c. 2%

FY 2009A

FY 2008A FY 2009A

FY 2008A FY 2010AFY 2009A

Source: Heidelberg quarterly reports; financial data based on Heidelberg fiscal year (FYE 31 Mar); actuals

(1) Net working capital (“NWC”) includes inventory and trade receivables net of trade payables and advance payments; “LTM”: last twelve months

(2) Capex is defined as investments in intangible assets, tangible assets and investment property

Mid-term target

Mid-term target

1,288 1,291 1,330 1,193 1,261 1,360 1,308 1,2121,107

1,000 1,000 1,031

39% 40% 39% 45%39% 42%

35%34% 34%39%

35%33%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

57 54 5259

50 52 49

35 30 32 2830

7%

4%

4%

6% 5%6%

6%

8%

6% 6%8%5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4


51 44 5072

44 47 4859

10 16 1023

6%7%

2%3%

2%3%

7% 7%6%

5%

7%5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

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Stable net debt level in recent quarters due to

strict cash management

1) Thereof approx. €291m from KfW facility

2) Maturity date July 2012

€291m

KfW Facility

€550m

Guaranteed Facility

€550m

Syndicated

Loan Facility

Total debt facilities of

€1.4bn2

€ millionFY2009 FY2010

Q1

FY2010

Q2

FY2010

Q3

FY2010

31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010

Convertible bond 304 306 308 310 0

Liabilities to banks and private

placement433 476 466 479 7921

./. Cash and cash equivalents 80 94 99 111 121

Net debt 657 688 675 678 672

Provisions for pensions 154 145 174 209 225


Strong cash flow performance ensured net debt increased only marginally

Sufficient funding in place following refinancing and amendment of facilities

KfW term loan has been €291m drawn for repayment of convertible notes

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32

Planned capital raising of c. €420m to strengthen balance sheet


Equity Ratio

Source: Heidelberg

(1) Pro-forma data based on financials as of 31/03/2010 and planned capital increase of c. €420m (before transaction costs)

With envisaged capital raising, Heidelberg aims for a mid-term leverage of ≤ 2.5x net debt / EBITDA

million EURFY 2010 Pro-forma

1

31/03/2010 31/03/2010

Equity 579 999

Financial liabilities 816 396

Other liabilities 1,484 1,484Total liabilities 2,300 1,880Total liabilities and equity 2,879 2,879

20%

35%

Mar-2010 Pro-forma

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Outlook - Management fully committed to reposition Heidelberg on a

path of sustained profitability – with attainable financial targets

Mid-term

targets

Sales €3bn+

EBIT margin >5%

ROCE ~15%

Net debt / EBITDA ≤ 2.5x

FY 2011

Sales moderate growth

EBIT break-even

Net profit / loss net loss

Free cash flow before

restructuring and interest1positive


(1) FY 2011 free cash flow after restructuring and interest expected „negative“

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Management fully committed to reposition Heidelberg on a path of sustained

profitability – with attainable financial targets

Key strategic drivers of Heidelberg development

Consistent focus on equipment and services, supported by cyclical upswing of end

markets

Focus on clearly identified growth opportunities in packaging printing, services,

consumables and emerging markets

Focused restructuring and capacity reduction effort

Tight cash management and resource allocation


Commitment to value creation

Sustainable capitalisation

Sustainable leverage with investment

grade credit characteristics

Target net debt / EBITDA ≤ 2.5x

Mid-term operating and financial targets

Net sales target of € 3bn+

Target EBIT margin > 5%

Target RoCE of around 15%

+

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3636

Investor Relations

Andreas Trösch

Head of Investor Relations

+ 49 (0) 6221 92-6020

+ 49 (0) 6221 92-5189(Fax)

[email protected]

Heidelberger Druckmaschinen AG

Kurfuersten-Anlage 52-60

69115 Heidelberg

Germany

http://www.heidelberg.com/

http://www.heidelberg.com/

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Disclaimer

This presentation contains forward-looking statements with respect to future results, performance and achievements

that are subject to risk and uncertainties and reflect management's views and assumptions formed by available

information. All statements other than statements of historical fact are statements that could be considered forward-

looking statements. When used in this document, words such as "may," "will," "should," "anticipate," "believe,"

"estimate," "expect," "intend," "plan," "project," "seek," or "target" and similar expressions, as they relate to

Heidelberger Druckmaschinen Aktiengesellschaft ("Heidelberg") or the market in which it operates, are intended to

identify forward-looking statements. Many factors could cause the actual results, performance or achievements of

Heidelberg to be materially different from any future results, performance or achievements that may be expressed or

implied by such forward-looking statements, including, among others, changes in general economic and business

conditions, changes in currency exchange rates and interest rates, introduction of competing products by other

companies, lack of acceptance of new products or services by Heidelberg's targeted customers, inability to meet

efficiency and cost reduction objectives, changes in business strategy and various other factors. Should one or more of

these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary

materially from those described herein. Heidelberg does not intend or assume any obligation to update these forward-

looking statements.

investors’ & analysts’ conference fy 10 · source: heidelberg; financial data based on...

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