EANS-Adhoc: Balda AG / Negative EBIT and high EBT in 2010

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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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Company Information

17.03.2011

Balda AG: Negative EBIT and high EBT in 2010

- Sales revenues of 141.4 million euros above the previous year's
level(previous year: 134.1 million euros)

- Earnings before exceptionals minus 8.7 million euros (previous
year: plus 4.5 million euros)

- Operative earnings (EBIT) of minus 37.4 million euros

- Earnings before tax (EBT) of 93.3 million euros due to special
effect of TPK (previous year: plus 47.3 million euros)

- Net profit for the Group of 94.4 million euros (previous year: 48.9
million euros)

- Outlook for 2011: Sales revenues at the previous year´s level and
slightly positive EBIT

(The above figures do not include the holding in Balda Motherson
Solution, India and Balda Solutions Hungaria Kft, Hungary, sold in
2010)

Bad Oeynhausen, 17 March 2011: The Frankfurt SDax listed company
Balda AG generated sales revenues of 141.4 million euros in continued
operations in the 2010 financial year. Sales were therefore slightly
above the previous year's level of 134.1 million euros.

Special write-downs of 28.6 million euros have a negative impact on
the EBIT The Balda Group generated earnings before exceptionals of
minus 8.7 million euros (previous year: plus 4.5 million euros). In
particular the belowtarget sales revenues, the significant increase
in cost of materials and restructuring costs had a negative impact on
earnings before exceptionals. Prospects of lower margins resulted in
write-downs of tangible assets and goodwill in the amount of 28.6
million euros in the MobileCom and Electronic Products segments
following impairment tests.

The operative earnings (EBIT) after exceptionals is therefore minus
37.4 million euros.

TPK: Impact of 124.6 million euros on earnings After the initial
public offering on 29 October 2010, Balda now holds 16.1 percent of
the shares in the touchscreen manufacturer TPK. After the initial
public offering, the holding in TPK previously reported at book value
based on the "at equity" method is now recorded as a financial
instrument at market value. This revaluation had a unique net impact
on earnings in the amount of around 124.6 million euros in 2010.

The company based in Bad Oeynhausen recorded a very positive EBT for
the Group as a whole of 93.3 million euros in the 2010 financial
year. In the previous year the Group posted a plus of 47.3 million
euros.

The total Group (continued and discontinued segments) registered a
net income of 94.4 million euros. Last year the net income of the
Group reached 48.9 million euros.

Earnings per share were, with 58,890,636 shares entitled for
dividends as of 31 December 2010, 1.606 euros (previous year: 0.90
euros).

Cash and cash equivalents improved as at the end of 2010 by 4.7
million euros compared to the previous year to 48.9 million euros.
The negative cash flow from operating activities was offset by the
positive cash flows from investing and financing activities.

The Balda Group's balance sheet total increased as of 31 December
2010 by 561.2 million euros to 810.5 million euros compared to the
reference value of 31 December 2009 with 249.3 million euros. The
balance sheet of the Balda Group as of the end of the 2010 financial
year is affected greatly by the revaluation of the holding in the
touchscreen manufacturer TPK.

Solid financial base The equity base increased significantly to 749.7
million euros (31 December 2009: 159.2 million euros). The equity
ratio in the Group increased in the period under review due to the
high surplus and the revaluation of the TPK shares to 92.5 percent
after 63.9 percent as of the end of 2009.

2010 a year of realignment and diversification Balda systematically
continued the realignment of the Group in the 2010 financial year.
The reorganisation of the MobileCom segment will be completed during
the first half of 2011. The segment did not achieve its target either
for sales or earnings, with competition intensifying and continued
pressure on prices.

The Balda Group has concentrated in particular on diversifying its
core competences in the period under review. In particular the
Electronic Products segment successfully implemented the strategic
realignment with the development and production of innovative
products for new and existing customers in the communications and
consumer electronics markets. The Malaysia-based company more than
doubled its sales revenues compared to the previous year. However,
its earnings situation was not able to keep pace with this revenue
performance. Higher start-up and materials costs for new products
squeezed margins tighter than expected.

The Balda Medical segment successfully realised the strategy of
diversification into new products for new customers in the 2010
financial year. The segment developed according to plan with a slight
fall in sales. The earnings situation is positive. The company
completed a significant amount of preliminary work for new projects
which will result in sales in the 2011 financial year.

Outlook for 2011 The management of the Balda Group is not able to
provide any forecast figures for the 2011 financial year, but can
only comment on trends due to the insecurity of order call offs in
the MobileCom segment.

The Balda Group is expecting sales volumes in the 2011 financial year
to be the same level as the previous year based on three productive
working segments of MobileCom, Electronic Products and Medical as
well as slightly positive EBIT.

The Board of Directors will provide the operational business in the
segment MobileCom with all of the resources available. The MobileCom
segment has to achieve the defined performance and perspectives by
the middle of the year. After that, the Board of Directors will
finally evaluate the opportunities for the continued existence of the
operative business in Beijing. If there is no sign of a definite
turnaround by the end of the first half of 2011, the Board of
Directors will make a decision.

After sales doubled in 2010, there is a realistic chance that the
Electronic Products segment, which was still making a loss in 2010,
will make a profit in 2011. New products and scaling effects in the
current financial year provide reasons for a positive forecast for
2011.

The Medical segment will achieve sales and earnings growth in double
figures in 2011.

Strategic growth for the Medical segment and dividend payment
Irrespective of the above-mentioned forecast, the Balda Group will
continue to pursue targeted strategic growth in the Medical segment.
The envisaged acquisition should strengthen the segment and the Balda
Group. A final decision should be made here by the middle of the
year.

Balda AG is currently making arrangements so that it will be able to
pay a dividend in the event of any sale of shares from the holding in
TPK. As a first step the existing loss carry forwards were offset in
the latest annual financial statements of Balda AG by an appropriate
release of capital reserves.

Table with the important key figures for 2010

Continued operations
Previous year figures without TPK

|in million euros |2010 |2009 |
| | | |
|Group revenues |141.4 |134.1 |
| | | |
|Total operating |156.3 |140.3 |
|performance | | |
| | | |
|EBITDA |0.4 |14.7 |
| | | |
|EBIT |-37.4 |4.5 |
| | | |
|EBIT margin (in percent |-23.9 |3.2 |
| | | |
|EBT |93.3 |47.3 |
| | | |
|Net income |94.4 |48.9 |
| | | |
|Cash flow from operating|-11.2 |20.6 |
|activities | | |
| | | |
|Investments |10.8 |9.3 |
| | | |
|Employees as of 31.12. |2,445 |3,713 |
| | | |
|Earnings per share (in |1.61 |0.90 |
|Euro)² | | |
| | | |
|Dividend |0 |0 |
| | | |
|Year-end share price (in|6.90 |3.49 |
|Euro) | | |
| | | |
|Equity |749.7 |159.2 |
| | | |
|Equity ratio (in | | |
|percent) |92.5 |63.9 |

1 Earnings before special effects: -8,7
² refers to dividend-entitled number of shares as of 31.12.2010: 58.890.636
(2009: 54.156.672)

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.

end of announcement euro adhoc
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ots Originaltext: Balda AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@balda.de

Branche: Semiconductors & active components
ISIN: DE0005215107
WKN: 521510
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade