Heidelberg realigns postpress portfolio

Heidelberg (ots) -

* Postpress Packaging: improved competitiveness thanks to strategic
partnership with Chinese manufacturer

* Postpress Commercial: folding machine business to be restructured,
manufacture of all other own products in this business area to be
discontinued, and Leipzig site to be closed

* Measures expected to improve result by a total of approx. EUR 30
million annually, largely taking effect from next financial year

* Important step in achieving target EBITDA margin of at least 8
percent in financial year 2015/2016

As already announced, Heidelberger Druckmaschinen AG (Heidelberg)
realigns its postpress portfolio. In-house production at the
Heidelberg sites in Germany is no longer competitive under the new
market conditions. The relevant operations are therefore being
discontinued, except for production of folding machines at the
Ludwigsburg site.

Postpress Packaging products and solutions will in future be
developed and manufactured by the new Chinese OEM partner Masterwork
Machinery Co., Ltd, with Heidelberg retaining responsibility for
sales and service activities.

In the Postpress Commercial business area, Heidelberg will only
continue to market the established folding machines and cutters.
Swiss company Müller Martini will take over service activities for
installed equipment from discontinued series. These measures will not
affect business with Polar cutters and Heidelberg folding machines.

"We were able to win two renowned suppliers as partners for our
realigned Postpress portfolio," said Stephan Plenz, Member of the
Board, Heidelberg Equipment. "They will help us provide our customers
with competitive products and ensure continuity in services and
service parts."

The reduction of in-house capacities will result in the closure of
the Leipzig site and a corresponding reduction in the workforce at
the Ludwigsburg and Wiesloch-Walldorf sites. A total of around 650
employees worldwide will be affected.

Important step in optimizing portfolio to achieve target EBITDA
margin of at least 8 percent in financial year 2015/2016

At its Annual Press Conference, Heidelberg announced the
development of new business models for products with weak margins as
part of its portfolio optimization.

"The competitiveness of postpress product lines at Heidelberg was
limited, so these activities are being placed on an entirely new
footing", said Heidelberg CEO Gerold Linzbach. "Realigning these
areas is an important step in improving the company's economic
situation and getting closer to the target EBITDA margin of at least
8 percent."

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.
Heidelberger Druckmaschinen AG

For further information, please contact:
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92-5900
Fax: +49 (0)6221 92-5088
E-mail: thomas.fichtl@heidelberg.com

Investor Relations
Robin Karpp
Phone: +49 (0)6221-92 6020
Fax: +49 (0)6221-92 5189
E-mail: robin.karpp@heidelberg.com