Heidelberg Grows and Records Significant Annual Net Profit

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May 10, 2016, 01:48 ET

HEIDELBERG, Germany, May 10, 2016 /PRNewswire/ --

Sales nearly 8 percent up at €2.5 billion
EBITDA of €189 million - EBITDA margin close to 8 percent
Annual net profit of €28 million - result improves by €100 million
High-yield bond to be redeemed early
Solid financial structure for planned further expansion

Based on preliminary figures, Heidelberger Druckmaschinen AG (Heidelberg) has recorded a net result after taxes for financial year 2015/2016 (April 1, 2015 to March 31, 2016) that corresponds to a €100 million turnaround - from €-72 million to €28 million - and has thus achieved its goal of a significant net annual profit for the year under review. The improved operating result underlines that the strategic reorientation is having an impact and the company has embarked on a period of sustained profitability and growth. A healthy balance sheet also paves the way for further expansion.

"Heidelberg is back to making profits and is looking to the future with optimism. The year under review marks a turning point in our strategic reorientation. As promised, the course is now set for growth and sustained profitability," said CEO Gerold Linzbach.

Sales after 12 months climbed to €2.512 billion (previous year: €2.334 billion). The growth after adjustment for exchange rate movements (€2.426 billion) was as expected at 4 percent. A good final quarter in the period under review took incoming orders beyond the previous year's figure (€2.434 billion) to €2.492 billion. EBITDA excluding special items in the period under review totaled €189 million (previous year: €188 million, including special items amounting to some €50 million). This corresponds to an EBITDA margin of 7.8 percent (previous year excluding special items: 5.9 percent) of sales adjusted for exchange rate movements. Special items in the reporting period amounted to some €-21 million (previous year: €-99 million). The financial result improved substantially to €-65 million (previous year: €-96 million). Based on preliminary figures, this led to a net result after taxes of €28 million (previous year: €-72 million).

The free cash flow at the end of the financial year was still negative at approx. €-30 million (previous year: €-17 million), primarily due to restructuring costs and the PSG acquisition. The net financial debt in the quarter under review remained at a low level of around €280 million (March 31, 2015: €256 million) and the leverage was some way below the target value of 2 at 1.5.

High-yield bond to be redeemed early

Following the successful annual figures, Heidelberg is continuing its policy of further optimizing its financing structure and reducing its future interest burden. Given its stable liquidity position, the company has opted for early redemption of the some €50 million still outstanding on its high-yield bond - in full and ahead of schedule from cash on hand - on June 10, 2016. The bond has a coupon rate of 9.25 percent and was originally due to mature in 2018. As well as investing in growth areas such as the digital and services sectors, this means the company is also in a position to further strengthen its financing structure.

As CFO Dirk Kaliebe explained, "Heidelberg is back in the black and is on a sound financial footing. The reorganization of our financing structure with further falling interest costs provides the basis for the company's strategic development. Our top priority is focusing on growth and profitability."

Other dates:

The Annual Accounts Press Conference, Annual Analysts' and Investors' Conference for 2015/2016 is scheduled for June 8, 2016 at the drupa trade show in Dusseldorf.

For additional details about the company and image material, please visit the Press Lounge of Heidelberger Druckmaschinen AG at http://www.heidelberg.com.

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.

Further information:
Heidelberger Druckmaschinen AG

Corporate Public Relations
Thomas Fichtl
Phone: +49(0)6222-82-67123
Fax: +49(0)6222-82-67129
E-mail: [email protected]

Investor Relations
Robin Karpp
Phone: +49(0)6222-82-67120
Fax: +49(0)6222-82-99-67120
E-mail: [email protected]