Balda AG

EANS-Adhoc: Balda AG: Operative results in the first half of 2011 positive / MobileCom segment part of the discontinued business division

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  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
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04.08.2011

Balda AG: Operative results in the first half of 2011 positive / MobileCom
segment part of the discontinued business division


    • MobileCom segment: Intensified search for a Joint Venture partner /
      shareholding already declared as a discontinued business division
    • Sales revenues in the first half of the year in continued business
      divisions grow by 0.8 million Euros to 28.9 million Euros (same period in
      the previous year:  28.1 million Euros)
    • Operating profit (EBIT) increases by 0.5 million Euros to 1.1 million
      Euros (same period in the previous year: 0.6 million Euros)
    • Pre-tax profits (EBT) rise by 1.5 million Euros thanks to positive
      financial earnings, taking them to 10.4 million Euros (same period in the
      previous year: 8.9 million Euros)
 
Bad Oeynhausen, 4th August 2011 - The company management of Balda AG, listed on
the Frankfurt Stock Exchange SDax index, firms up its decision from the first

half year to seek a strong Joint Venture partner. Despite repeated
restructuring attempts, it was not possible for the segment to achieve the
desired results in the volatile and highly competitive mobile telephone market.
The MobileCom segment is already included in the discontinued business division
in the half yearly report for 2011 because it is assumed that the control of
the shares will not remain with Balda.


Business development
The Balda Group generated sales of 28.9 million Euros in the first half of 2011
in continued operations, compared to 28.1 million Euros in the same period
during the previous year. This is an increase of 0.8 million Euros or 2.8
percent in comparison to the first six months of 2010. The operating profit for
the Group rose at the end of the first half year to 1.1 million Euros in
comparison with a figure of 0.6 million Euros in the same period during the
previous year.

The Balda Group achieved positive financial earnings of 9.3 million Euros in
the first half of 2011 following on from 8.2 million Euros in the previous
year. The increase was a result of a decrease in interest payments due to the
elimination of convertible participation rights, and moreover of currency gains
amounting to 9.1 million Euros arising from internal financing.

The profits before tax (EBT) increased as a result of the positive financial
results to 10.4 million Euros (previous year: 8.9 million Euros). The half
yearly surplus in 2011 in the continued business divisions was 10.2 million
Euros (previous year: 9.2 million Euros).

Overall, the Balda Group recorded a consolidated loss after the first six
months of the current financial year - continued and discontinued business
divisions - of 15.4 million Euros compared to a profit of 5.1 million Euros in
the same period of the previous year. The loss in the first half year for the
discontinued business division stood at 25.6 million Euros (previous year:
Minus 4.1 million Euros). This includes special accounting devaluations for the
companies in the MobileCom segment amounting to 19.9 million Euros and the loss
resulting from operative business in the first half year amounting to 4.2
million Euros, as well as payments totalling 1.5 million Euros as a result of
interest and tax dues.

The undiluted profit per share during the reporting period was minus 26.1
cents, on the basis of 58,891 million shares (status 30th June 2011). In the
same period during the previous year the earnings per share based on 54,157
million shares were 9.9 cents.


Positive development of operational Group segments
The positive commercial development of the continued business divisions,
Electronic Products and Medical, during the first half of 2011 confirms Balda´s
chosen strategy. During the second quarter of 2011 the sales rose slightly, to
15.5 million Euros following on from 13.4 million Euros in the first quarter.
In light of the effects of the disaster in Japan, which are only now being felt
by the Group, this is a satisfactory development.

The sales in the Electronic Products segment declined from 14.9 million Euros
during the first half of 2010 to 12.5 million Euros in the same period of 2011.
The cause of this development was the faltering supply of electronic components
as a result of the natural disaster in Japan. However, despite the drop in
sales, the segment succeeded in reducing the operating losses by 1.0 million
Euros to 1.5 million Euros (previous year: Minus 2.5 million Euros). Strict
cost management and targeted improvements in production processes led to this
improvement in results.

The Medical segment recorded sales of 16.5 million Euros, and thereby a
significant increase in comparison to the previous year's figure of 13.1
million Euros. The operating profit for the segment stood at 1.3 million Euros
after the first six months (previous year: 1.1 million Euros). The Medical
division is on target.

Liquid funds reducing
On the 30th June 2011 the Balda Group´s inventory of liquid funds stood at
around 42.3 million Euros (first half year of 2010: 49.4 million Euros). In the
continued business divisions the liquid funds stood at 36.4 million Euros
because 5.9 million Euros were reapportioned on the reporting date from the
liquid funds item to Assets held for sale and liabilities.

Significant rise in operating cash flow
The cause for the positive operating cash flow development was primarily the
reduction in Net Working Capital (current assets excluding liquid funds less
current liabilities excluding bank liabilities).  In total, the inflow of funds
from the ongoing business activities of the Balda Group rose during the first
half of 2011 to 7.7 million Euros. In the previous year the cash flow stood at
minus 6.1 million Euros.

Equity increased
The Group´s equity increased by 99.2 million Euros to 849.0 million Euros
(reference date 2010: 749.7 million Euros). The revaluation of the TPK shares
on the 30th June 2011 overcompensated for the negative effect due to exchange
rate discrepancies and the negative Group result. The equity ratio on the 30th
June 2011 stood at 94.1 percent (31st December 2010: 92.5 percent).

No sale yet of TPK shares
According to the regulations of the Taiwanese Stock Exchange, the sale of 50
percent of the shares held in TPK would have been permissible on the 13th July
2011, following the expiration of the holding period. Due to the recent
volatile market conditions, with severe stock price fluctuations, Balda has not
issued any sale order to date. However, the company continues to coordinate
closely with banks, consultants and TPK regarding selling the TPK shares.


Acquisition
With regards to the planned acquisition in the medical segment, the
prerequisites for a potential takeover are now in place.


Outlook for 2011
For the financial year 2011 the Board of Directors is forecasting sales
revenues of between 70 and 80 million Euros and a slightly positive operating
profit (EBIT).


* * *

Company profile of Balda AG

The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical technology industry. Balda´s customers
are leading companies in the mobile phone, consumer electronics, electronic
communications, pharmaceutical and medical technology  markets. The Group is
internationally positioned with production sites in China, Malaysia and
Germany. A subsidiary in the USA serves North American customers in product
design and development. Within the scope of its shareholding in a leading
touchscreen manufacturer in China, Balda is participating in the dynamic
development of the touchscreen displays market.


* * *

Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax: (05734) 922
- 2604, E-mail: croehl@balda.de, Internet: www.balda.de


* * *

This ad-hoc announcement contains forward-looking statements, which are based
on the current expectations of Balda´s management. They therefore contain a
range of risks and uncertainties because they relate to future events and
depend on circumstances that will occur in the future, such as, for example,
developments in the mobile communications industry, changes in technology and
the ability to timely and successfully develop new products and various other
factors. Balda will neither revise these forward-looking statements nor correct
them in the event of any unexpected development, unless there is a legal
obligation to do so.

This ad-hoc announcement represents neither an offer to buy shares nor an
invitation to submit an offer to buy shares in the United States or any other
country. The shares in Balda AG (the "shares") may not be offered or sold in
the United States or to or for the account of U.S. persons (as defined in
Regulation S of the U.S. Securities Act of 1933, in its current version (the
"Securities Act")), unless they are registered or are exempt from registration
under the Securities Act. The shares have not been and will not be registered
under the Securities Act.


Further inquiry note:
Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax: (05734) 922
- 2604, E-mail: croehl@balda.de, Internet: www.balda.de

end of announcement                               euro adhoc 
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issuer:      Balda AG
             Bergkirchener Str.  228 
             D-32549 Bad Oeynhausen
phone:       +49 (0) 5734 9 22-0
FAX:         +49 (0) 5734  922-2747
mail:     info@balda.de
WWW:      http://www.balda.de
sector:      Semiconductors & active components
ISIN:        DE0005215107
indexes:     CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, München 
language:   English
 



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