Balda AG

EANS-News: Balda AG
Balda's shareholders support Group's new direction

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  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Annual & Special Corporate Meetings

Subtitle: - General meeting approves capital framework, dividend of EUR 1.30 per
share and abbreviated fiscal year
- Board of Directors unveils strategy to grow operative business
- Target: increase consolidated sales to EUR 150-200 million in medium term
- CEO Dominik Müser’s contract extended to mid-2014
- Findings of voluntary special audit: no grounds to allege board members
neglected duties 


Bielefeld (euro adhoc) - Bielefeld, 11 May 2012 - At today's General Meeting of
Balda AG, Bad Oeynhausen, shareholders approved a series of important motions
backing the course of action the Board of Directors has outlined as part of its
plans to overhaul the plastics processing company. With 62.6 % of share capital
represented at the meeting, shareholders supported all proposals of the company
on the agenda with a substantial majority.

Dominik Müser took up the position of CEO at the start of this year, and as
announced at the Group's Extraordinary General Meeting on 8 February 2012, he
today outlined the strategy the Group would use to return Balda's operating
business to profitability and growth as soon as possible after a prolonged
period of underperformance. The Group's aim is to increase its consolidated
sales from EUR 66 million in 2011 to EUR 150-200 million within the next three
years.

Speaking to the shareholders, Müser said, "Over the past few years, Balda has
survived only thanks to its reserves. Regardless of the mistakes made in the
past, our Medical and Electronic Products segments are two fields which, I
believe, have the potential to deliver sustained and profitable growth." 

Balda's Medical division, based in Bad Oeynhausen, will now focus on
appropriately sized acquisitions so it can raise its international profile and
expand its customer basis. The strategically important US market will initially
take centre stage, and Müser announced that Balda wants to be in advanced
negotiations with at least one target company by autumn of this year. Balda's
target is to increase sales at this fundamentally sound segment to over EUR 100
million in the coming three years.

At Electronic Products, based in Malaysia, the Group's main priority is focused
on the ongoing restructuring of the segment. Müser stated that restructuring is
well on track and should be finished by the end of this year. This unit's new
strategy will be to position itself in promising niche markets which combine
technologically ambitious products with the potential to generate adequate sales
volumes. 

Balda's restructuring will also entail other changes, such as the substantial
reduction in the complexity of its Group structures with the objective of
cutting costs and increasing efficiency, and the complete sale of the Group's
non-strategic stake in Chinese touchscreen manufacturer TPK Holding (current
stake: 7.6 %). Müser emphasised that the shareholders should participate an much
as possible in the proceeds generated by this divestment.

Dr. Michael Naschke, Chairman of Balda AG's Supervisory Board, announced that
Dominik Müser's term as CEO, which was initially limited until 30 June 2012, had
been extended by the Supervisory Board until 30 June 2014. Dr. Naschke said the
Supervisory Board is convinced that Balda Group's new strategy under Müser's
leadership is reliable, promising a better future for the company.

For the 2011 fiscal year, shareholders voted for a dividend payment of EUR 1.30
per share, which corresponds to total dividends of approximately EUR 77 million.
This payout means that the Group's shareholders will receive prompt proceeds
from the revenue generated by the partial sale of Balda's TPK's shares in
February. They also approved the company's plans to shorten Balda AG's fiscal
year to end on 30 June, paving the way for another General Meeting in autumn for
the abbreviated fiscal year from 1 January until 30 June 2012. At this second
meeting, shareholders will have the opportunity to resolve on a further dividend
payment.

Balda's shareholders approved authorisation for the Board of Directors to issue
bonds with a total nominal value of up to EUR 100 million, and they supported
the creation of new authorised capital. These new capital frameworks are both
valid until 10 May 2017, but they are primarily precautionary measures intended
to provide Balda with adequate room for manoeuvre in financial issues. CEO Müser
said, "These capital-related votes are key elements in securing Balda's future."

As announced, Müser informed shareholders about the findings of the
investigation, voluntarily initiated by the Board of Directors, into the
behaviour of the Supervisory Board and former directors in connection with the
Group's efforts to sell TPK shares in 2011. Conducted by law firm Hengeler
Mueller, the special audit found that there are no conclusive reasons to believe
that dereliction of duty occurred and that the company is entitled to
compensation from the board members in question. 

Octavian Special Master Fund's supplementary motion demanding that additional
special investigations be undertaken into this and other issues were rejected at
the meeting.

Note for journalists: 
The CEO Dominik Müser's statement at the General Meeting is available on Balda
AG's website (www.balda.de).


Further inquiry note:
Frank Elsner 
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 - 54 04 - 91 92 0
Fax: +49 - 54 04 - 91 92 29
Mail: office@elsner-kommunikation.de

end of announcement                               euro adhoc 
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company:     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: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing/prime standard: Frankfurt 
language:   English
 



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