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Subtitle: - Proposal to Annual General Meeting: 1.30 euros per share
- Shareholders to quickly share in the proceeds from the partial sale of the
shareholding in TPK
- Consolidated sales of 66.3 million euros in 2011, EBIT below expectations
at minus 6.0 million euros
- Pleasing performance in the Medical segment, Electronic Products below target
- Short financial year from January to June 2012 planned
- Annual General Meeting to create conditions for growth finance
Bad Oeynhausen (euro adhoc) - Bad Oeynhausen, 29 March 2012 - The Supervisory
Board of Balda AG today approved in its meeting in which it adopted the annual
financial statements the Board of Directors´ proposal that a dividend of 1.30
euros per share for the 2011 financial year be proposed to the Annual General
Meeting on 11 May 2012. This would result in a total payout of 76.6 million
euros. As a result almost all of Balda AG´s currently distributable profits
would be utilised.
The dividend proposal is in line with the goal of allowing the shareholders of
the specialist for high-quality plastic solutions to quickly share in the
proceeds from the sale of shares in TPK Holding Co., Ltd. Balda AG had reduced
its non-strategic shareholding in the chinese touch screen manufacturer held by
a Group company from 16.1 percent to 7.6 percent in February 2012 and realised
238 million euros from the partial sale.
The Board of Directors and Supervisory Board will also propose to the Annual
General Meeting to have a short financial year for the period of 1 January 2012
to 30 June 2012. As a result the shareholders could receive further proceeds
from the partial sale of the TPK shareholding in the current calendar year.
In addition to this, a new set of comprehensive corporate capital authorizations
will be proposed to the Annual General Meeting. This includes new authorised
capital of up to 50 percent of the share capital and the authorisation to issue
common financial instruments such as convertible and bonds with warrants
attached, profit participation rights and profit related bonds. The
authorizations are purely authorizing shelf resolutions. They are to provide
Balda with appropriate financial tools to allow the company to grow after the
planned complete withdrawal from TPK Holding.
Dominik Müser, Chief Executive Officer of Balda AG since 1 January 2012: "With
the proposals for the dividend and the short financial year we are keeping our
word that we will allow the shareholders to benefit financially as quickly as
possible from the withdrawal from TPK Holding. It remains our goal to dispose of
the remaining shares in TPK after the transaction in February at the best price
without any time pressure in the coming months."
Key sales and earnings figures for the Balda Group in 2011
The Supervisory Board today approved the 2011 consolidated financial statements
of the Balda Group.
- The Group achieved consolidated sales in its continued business divisions of
66.3 million euros in the 2011 financial year, an increase of 5.6 % compared to
the previous year´s figure of 62.8 million euros. The figures do not include the
proceeds from the sale of the MobileCom segment (mobile phone business) in 2011.
- Consolidated earnings before interest and taxes (EBIT) improved from -13.9
million euros to -6.0 million euros. The original goal of reporting a positive
EBIT was not achieved due in particular to the performance of the Electronic
Products segment being below expectations.
- The continued business divisions closed 2011 with consolidated earnings after
taxes of -3.0 million euros. The previous year´s profit of 119.6 million euros
was influenced by high one-time income.
- The earnings of the discontinued business divisions, which include the
MobileCom segment which was sold in 2011, totalled -36.1 million euros after
taxes (2010: -25.2 million euros). They include the cumulative operational
losses of MobileCom and depreciation of fixed assets and inventories.
- The Balda Group therefore reports consolidated earnings after taxes of -39.1
million euros for 2011 (2010: 94.4 million euros).
- The earnings per share (based on 58.89 million shares) were -0.67 euros
following 1.72 euros in the previous year.
Mixed performance for the Group segments
The Medical segment based in Bad Oeynhausen recorded a pleasing business
performance in 2011 thanks to its innovative technological set up and a stable
customer base. Sales rose from 27.5 million euros by 45.0 percent to 39.9
million euros, in part due to the settlement of a major order for tools and
equipment. Earnings before interest and taxes (EBIT) improved from 2.4 million
euros to 2.7 million euros.
The performance of the Electronic Products segment based in Malaysia was,
though, well below expectations in 2011. This is attributable in part to a
shortfall in the supply of electronic components as a result of the nuclear
disaster in Japan and the tsunami in Thailand and in part to internal
shortcomings in structures and processes. As a result the segment´s sales were
at 26.5 million euros 25.1 percent below the previous year´s figure of 35.4
million euros. The EBIT totalled -5.0 million euros (2010: -18.1 million
The Central Services segment, which primarily comprises the holding costs and
financing activities of Balda AG, recorded an EBIT of -6.8 million euros in 2011
(previous year: 1.8 million euros). It includes expenditure of 2.5 million euros
which is attributable to the discontinued business divisions.
Very sound balance sheet ratios
The Balda Group again reported as of 31 December 2011 very sound balance sheet
ratios and had comfortable liquid funds.
- The balance sheet total fell compared to 31 December 2010 by 320.0 million
euros to 490.5 million euros. The significant fall reflects the drop in the
price of the TPK share in the past year and the sale of the MobileCom business.
- The Group´s equity ratio rose to 94.4 percent following 92.5 percent one year
before. The Group had virtually no financial liabilities at the end of 2011.
Outlook for 2012
As previously reported, the Board of Directors is currently working on a
detailed strategy to make the Group´s operational business profitable as quickly
as possible. This also includes identifying acquisition targets to strengthen
the Medical segment. At the same time the restructuring and realignment of the
Electronic Products segment will be continued.
For the 2012 calendar year Balda is expecting consolidated sales to be roughly
at the previous year's level. A negative consolidated EBIT in the single-digit
millions is once again expected. However, due to the proceeds from the partial
sale of the shareholding in TPK Holding, a significant consolidated profit
before and after taxes is expected.
Chief Executive Officer Dominik Müser: "The Board of Directors has the clear
goal of establishing Balda as an innovative plastic processing company whose
business segments are sustainably profitable and growing. We have no time to
lose, as Balda must not be allowed to live off its reserves. We consider 2012 to
be a year of transition on this path."
Note to the editorial teams:
The consolidated financial statements of Balda AG for 2011 can be downloaded
from the company´s website at www.balda.de.
Further inquiry note:
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 - 54 04 - 91 92 0
Fax: +49 - 54 04 - 91 92 29
end of announcement euro adhoc
company: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
sector: Semiconductors & active components
indexes: CDAX, Prime All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt