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