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Report of the month

January 2009

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Heidelberg Heidelberg, Germany Report Facts Company name: Heidelberg Druckmaschinen AG Fiscal year end: March 31, 2008 Report title: Dimensions Chairman Supervisory Board: Dr. Mark Wüssner Chairman Management Board: Bernhard Schreier Number of books: Two Report length: 126 + 100 pages Auditors: PricewaterhouseCoopers Design: Hilger & Boie, H.J. Dietz E-mail: investorrelations@heidelberg.com	Report Rating 4/5 (Rating scale below) Profile-Products (Excerpts, as from the report) Heidelberg is the leading equipment supplier to the print media industry… part of our leading position is attributable to the fact that Heidelberg has been manufacturing printing presses for over 150 years… We maintain a global market share of over 40 percent in sheetfed offset printing. Heidelberg is a thoroughly international group, generating… 84 percent of sales abroad. (Annual Report p 22, p 29) (Italics are own company’s words) Key Figures Net sales: EUR 3,670 million Operating result: EUR 268 million Net profit: EUR 142 million Earnings per share: EUR 1.81 Dividends per share: EUR 0.95 Return on sales: 3.9% Return on equity: 11.9% Equity to total balance sheet: 34.0% Return on capital employed: 13.5% Number of employees: 19,596 (Source: 2007 figures sourced from the annual report) Peers Baldwin Technology Presstek Canon Xerox RWE (minority shareholder)

Triple A > Thorough Five-year Overview that gives a medium-term perspective without delay (in the inside front cover): includes a number of major indicators and ratios, such as: sales percentages for profit, cash flow; debt; ROCE and ROE, working capital, receivables from sales financing (these are further commented in the notes)… > Intelligible and well-constructed operating and financial review (named Business Development): highlights Value Contribution and Performance Indicators (p 58); sets up the scene and market context; does not conceal unmet Targets; analyzes Net Assets (see Selected Page), Working Capital, Free Cash Flow and Liabilities. > Our Customers’ Situation: Crucial for the Product Portfolio section gives insights into business development factors, including a diagram of Cost structure in the print industry.

Double A > Sheetfed-looking charts add informative value. So much that more charts over more years wouldn’t have harmed (see Selected Page below). > Risk factors, financial components and their impact, and risk management fairly reported.

Simple A > Group and product profiling -and differentiation- and year overview not shown that quickly (p 22, p 29, p 121 -why displaying products there only?-, pp 122-123). > Though perfectible as a thread, the Dimensions theme enlightens about technological solutions and benefits. > Governance section not up to… one of its components, i.e. a transparently broken-down remuneration report.

B Sides > In spite of a number of reading facilitators, the two-book-in-one format for a 220-page volume is not most handy to manage and flick through: paper is not thinnest; information allocation, structure and… sheet management are not fully optimized. Website display and organization helps yet doesn’t make up completely.

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Selected Page (p 69 of Heildelberg Annual Report 2008 – The Facts)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.