Balda AG

EANS-News: Balda concludes the short financial year 2012 with a net profit of EUR250.7 million


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Company Information


Bad Oeynhausen (euro adhoc) - PRESS RELEASE


Balda concludes the short financial year 2012 with a net profit of EUR250.7
million

- High proceeds from sales of TPK shares enable a proposed dividend of EUR2.00
per share
- Operating earnings before special write-downs remain negative at minus EUR5.8
million, as expected
- Buy and Build strategy implemented for Medical segment
- Restructuring of Electronic Products segment fully on track
- CEO Dominik Müser: "We want to further increase the pace of change at Balda"

Bad Oeynhausen, 20th September 2012 - Balda AG, producer of high-quality
plastic products for the medical and electronics sectors, achieved a
consolidated net profit of EUR250.7 million in the short financial year 2012
(1st January to 30th June). The profit resulted from the block sales of shares
in Chinese touchscreen manufacturer TPK Holding in February and June.
The Board of Directors and Supervisory Board propose to pay a dividend of
EUR2.00 per dividend-entitled share for the short financial year at the Annual
General Meeting on 7 November 2012. In doing so, EUR117.8 million would be
distributed. For the calendar year 2011, the Company paid a dividend of EUR1.30
per share (dividend total: EUR76.6 million).

Dominik Müser, Chief Executive Officer (CEO) of Balda AG: "We kept our word in
the short financial year 2012 and did what we promised to do. Balda now once
again has a clear strategic timetable for growth and value appreciation, above
all in the promising Medical segment. The restructuring of the Electronic
Products segment remains on track. We also achieved our goal of disposing of
our stake in TPK Holding, save for a small remaining share. The high proceeds
from this disposal enable an attractive dividend payment but also leave us
sufficient room for bold growth steps. Overall, we want to further increase the
pace of change at Balda."


Balda Group sales and earnings figures
- In the period from 1st January to 30th June 2012, the Group achieved sales of
EUR24.7 million. Cautious sales development can be ascribed to customer order
delays in call-off orders in both operating segments and to initial
difficulties for new projects in the Electronic Products segment. In the entire
calendar year 2011Group sales had amounted to EUR66.3 million.

- Earnings before interest, taxes and special write-downs (EBIT before special
write-downs) totalled minus EUR5.8 million, remaining negative as expected
(calendar year 2011: minus EUR6.0 million). Delays in call-off orders had an
impact, as did increased costs for project starts and the ongoing restructuring
in Electronic Products.

- The Group recorded special write-downs of EUR8.9 million. Declining margins in
Electronic Products were thereby taken into account as part of a regular
impairment test. Including special write-downs EBIT amounted to minus EUR14.7
million (calendar year 2011: minus EUR6.0 million).

- The financial result recorded a positive balance of EUR269.0 million (calendar
year 2011: EUR5.2 million), very much due to high earnings from the sale of TPK
shares. Included in the financial result is an expense of EUR10.6 million from
the devaluation of the loan granted by Balda in 2011 to the purchaser of the
former MobileCom segment. Based on expert opinion, the devaluation resulted from
a settlement reached with the purchaser as a result of the negative economic
development of the divested companies.

- The Group recorded consolidated net profit (Group profit) of EUR250.7 million
after a loss of EUR39.1 million in the calendar year 2011. Based on 58.89
million shares, earnings per share amounted to EUR4.26 (calendar year 2011:
minus EUR0.67 per share).


Equity ratio once again above 90%, hardly any financial debts
The Balda Group continues to have an exceptionally solid capital and financing
base. As at 30th June 2012, equity amounted to EUR450.5 million, accounting for
95.2% of the balance sheet total (31st December 2011: EUR463.0 million or
94.4%). The Group reported hardly any financial liabilities on the balance sheet
date.

Outlook: Strategic realignment underway
The Board of Directors confirms the medium-term targets for the Balda Group,
communicated at the Annual General Meeting in May 2012:
- Group sales growth to at least EUR150-200 million, above all by means of
targeted acquisitions in the Medical segment;
- Reach profitability in the operating business as quickly as possible;
- Restart dividend payments without having to draw on the company's assets;
- Strengthening of Group's core competencies for high-quality plastic products,
as well as for integration of plastics solutions and electronic components and
systems. This competence can also be introduced in areas other than the two
existing business segments;
- Streamlining of Group structures and overall cost reductions.

In the Medical segment, which produces high-quality plastic products for
pharmaceutical, diagnostics and medical technology manufacturers (e.g. blood
glucose monitoring systems, skin-prick aids, pipettes), the implementation of a
Buy and Build strategy is the main focus and should lead to stronger
internationalisation and the broadening of the customer base. Balda is
currently engaged in several negotiations to acquire the appropriate target
companies. The goal is to conclude the first acquisition in the coming months.
Operationally, in 2012/2013 Balda Medical will profit from the completion or
expected completion of several product lines for new customer-specific
projects.

The target of the Electronic Products segment, which manufactures plastic
systems for electronic equipment (e.g. cameras, headsets, headphones for mobile
devices), remains unchanged - to complete restructuring by the end of the
calendar year 2012 and reach break-even.
The amendment of structures and processes within a business scope that has
significantly reduced in recent years has largely been completed. At the same
time, development activities have been intensified in order to deliver
technological added value to Balda customers through proprietary products
patented where possible, and to be able to improve the segment's margin
situation.

Remaining share in TPK Holding
Balda, via the Group company Balda Investment Singapore, currently holds around
7.1 million shares in TPK Holding, originating entirely from the stake's
dividend payments and representing a share of around 2% of TPK's capital. The
Board of Directors still intends to sell the remaining shares at optimal market
value.

Shareholder Octavian's claim rejected
On 6th September 2012 the Dortmund district court rejected in the first
instance a claim by shareholder Octavian Special Master Fund for the dismissal
of three members of the Supervisory Board of Balda AG. Octavian had already
been defeated in this matter at an Extraordinary General Meeting on 8th
February 2012.

Forecast for financial year 2012/2013
It remains to be seen whether and to what extent the weakening global economy
and in particular the weak growth in Europe will have a negative effect on the
business development of Balda customers and in turn, how this will affect
demand for Balda products.
Unless overall conditions worsen significantly, Balda expects for the financial
year 2012/2013 (30th June) on a current portfolio basis (i.e. without
acquisitions and divestments)

- Group sales at a same level to the financial year 2011 and
- Group EBIT to be roughly break even.

Group earnings before and after tax should be positive due to interest income
and/or earnings from the possible sale of further TPK shares.



Company profile Balda AG
Balda is a provider of high quality plastic solutions for the medical and
electronics industry. The company distinguishes itself by a number of
strengths, including first class engineering, products of superior quality as
well as fast and flexible tailor made services for its customers. Balda
operates internationally and has production sites in Germany and Malaysia. The
company's success is based on investments in development and the use of
advanced and cost-efficient technologies. The shares of Balda AG are listed in
the Small Cap segment (SDax) of the Deutsche Börse.
www.balda.de  


Note to editors:
The consolidated financial statements of Balda AG as at 30th June 2012 can be
obtained from the Company's website at www.balda.de.

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





                           The Balda Group at a glance
                      (Information in accordance with IFRS)

|in EUR million                   |1.1. -         |1.1. -          |
|                                 |30.6.2012      |31.12.2011      |
|Sales                            | 24,7          | 66,3           |
|Total income                     | 31,7          | 70,9           |
|EBITDA                           |-3,9           | -2,3           |
|EBIT before special write-downs  |-5,8           | -6,0           |
|EBIT                             |-14,7          | -6,0           |
|Financial result                 |269,0          |  5,2           |
|EBT                              |254,3          | -0,8           |
|Taxes on income                  |-3,5           | -2,2           |
|Group profit                     |250,7          | -39,1          |
|                                 |               |                |
|Balda AG net profit (HGB)        |182,0          | 79,7           |
|                                 |               |                |
|                                 |30.6.2012      |31.12.2011      |
|Total assets                     |473,4          | 490,5          |
|Equity                           |450,5          | 463,0          |
|Equity ratio (%)                 |95,2           | 94,4           |
|                                 |               |                |
|Number of employees              |1.273          |1.178           |

                      Balda operating segments at a glance

|in EUR million                   |1.1. -         |1.1. -          |
|                                 |30.6.2012      |31.12.2011      |
|Medical segment                  |               |                |
|Sales                            |11,7           |39,9            |
|EBIT                             |-1,3           |2,7             |
|                                 |               |                |
|Electronic Products segment      |               |                |
|Sales                            |13,0           |26,5            |
|EBIT before special writedowns   |-2,2           |-5,0            |
|EBIT after special writedowns    |-11,1          |-5,0            |


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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