EANS-News: Balda AG / Balda with balanced operating income for first quarter 2012/2013

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quarterly report

Bad Oeynhausen (euro adhoc) - PRESS RELEASE

Balda with balanced operating income for first quarter 2012/2013

* Consolidated earnings after taxes of EUR6.8 million thanks to
positive financial result * Medical segment partially catches up on
order delays from previous year * Electronic Products segment largely
completes restructuring, but feels impact of weaker global economy *
Consolidated revenues at EUR13.9 million 10% under value in the
reference quarter * Targets for full year 2012/2013 unchanged

Bad Oeynhausen 5 November 2012 - Thanks to stabilized operations and
a positive financial result, Balda AG closed the first quarter of
financial year 2012/2013 (1 July to 30 June) with consolidated
earnings after taxes of EUR6.8 million. Overall, the manufacturer of
high quality plastic products for the medical and electronics
industry showed business development in line with its expectations.
The Medical segment, based in Bad Oeynhausen, was able to recover a
portion of the revenues orders that had been delayed in the short
financial year 2012 (1 January to 30 June 2012), and again clearly
operated in the black. In the Electronic Products segment, based in
Malaysia, the adjustment of cost structures to decreased business
volumes and the improvement of margins had a positive effect.

Dominik Müser, Chief Executive Officer (CEO) of Balda AG: "The
restructuring and refocusing of Balda towards profitable growth is
still on track. At Balda Medical we are currently in advanced
acquisition negotiations in the context of the agreed buy-and-build
strategy for this segment. Our Electronics division has indeed almost
completed its restructuring, but suffers from the demand decrease in
the wake of the global economic slowdown. Here we must keep a close
eye on further developments."

Revenues and earnings figures Balda Group Q1 2012/2013 * Consolidated
revenues in the first three months of 2012/2013 were EUR13.9 million,
10.0% below the figure of the third quarter of calendar year 2011
(EUR15.4 million). The decrease is attributable to the development in
the Electronic Products segment, in which, due to the economic
situation, demand remained under expectations in the report quarter.
On the other hand, revenues of Balda Medical increased slightly.

* Consolidated earnings before interest, taxes, depreciation and
amortization (EBITDA) improved to EUR0.9 million (reference period:
minus EUR0.1 million). After consideration of depreciations and
amortizations, the first quarter showed balanced earnings before
interest and taxes (EBIT), after a negative EBIT of EUR1.0 million in
the reference period 2011.

* The financial result reached EUR6.6 million (reference period:
minus EUR3.7 million). Interest income deriving from the high
liquidity position of the Group had an effect. Liquidity was
attributable to the almost complete sale of the minority stake in the
touchscreen manufacturer TPK Holding in the short financial year
2012. Above all, positive effects resulted from the conversion of
foreign currency items.

* Earnings from continued operations (earnings after taxes) improved
to EUR6.8 million after minus EUR3.7 million in the period July to
September 2011.

* Group result also amounted to EUR6.8 million. The value of the
reference period (minus EUR13.1 million) includes earnings from the
discontinued segment MobileCom, which had been sold on 1 December
2011. The quarterly result represents earnings per share of EUR0.12
(reference period: minus EUR0.22).

Development of segments * Revenues in the Medical segment rose in the
first quarter 2012/2013 by 2.0% to EUR8.1 million (reference period:
EUR7.9 million). Balda Medical was able to recover part of the orders
that had been delayed by customers in the short financial year, thus
decreasing stocks and, overall, operating once again clearly in the
black. The EBITDA was at EUR1.1 million (reference period: EUR0.8
million).

* The Electronic Products segment reported quarterly revenues of
EUR5.8 million. With a sharp decline of 22.6% versus the reference
period (EUR7.5 million) the commencing general economic downturn made
its mark, leading to a demand below expectations in the report
quarter. Nonetheless Electronic Products managed to keep its EBITDA
stable at EUR0.3 million due to efficiency increases, cost-cutting
and margin improvements.

* In the Central Services segment, which mainly comprises the holding
activities of Balda AG, the streamlining of corporate structures and
savings in other costs (e.g. use of service providers) led, in the
first three months of 2012/2013, to an improvement in the EBITDA to
minus EUR0.4 million compared to minus EUR1.4 million in the same
period in 2011.

Outlook full year 2012/2013 The primary objective of the Board is
unchanged: to focus the Balda Group on consistent, profitable growth
and value creation. To this end, business volume shall be brought to
a volume of EUR150 to 200 million in the medium-term, with an
operating margin (related to the EBITDA) of at least 15% to be
realised.

In the Medical segment, Balda is currently at an advanced stage in
negotiations with several potential acquisition candidates in North
America and Western Europe. The Board is confident that these
negotiations will lead to first results soon.

The buy and build strategy of the segment aims first on stronger
internationalization, in order to meet the requirements of existing
customers and attract new ones. Secondly the performance spectrum is
to be broadened by opening up attractive new segments of the
healthcare market.

In the Electronic Products segment, after restructuring is complete,
strategic repositioning in promising niche markets in the
entertainment and communication electronics sector will be in the
foreground. This must, however, take place in a globally increasingly
challenging economic environment. In the course of the financial year
2012/2013 thus far, Balda Electronic Products has sensed a clear
reticence on the part of customers in their ordering behaviour. As
previously announced, the Board will decide based on the results of
the second quarter of financial year 2012/2013 on the next steps in
the segment.

For the Balda Group the Board maintains the objectives for the full
year 2012/2013. Insofar as the overall economic framework conditions,
particularly for the Electronic Products segment, do not continue to
worsen, the Board will continue to strive on the current portfolio
basis, that is without acquisitions or divestments, toward *
consolidated earnings approximately at the level of financial year
2011 * with an approximately balanced group EBIT.

Consolidated earnings before and after taxes will be positively
affected by interest income, so positive values may be expected.

Note to Editors: The consolidated financial statements of Balda AG at
30 September 2012 can be found on the Company's website at
www.balda.de.{http://www.balda.de/}[HYPERLINK: http://www.balda.de]

For the Balda Group at a glance please follow this link:
http://www.presseportal.de/pm/11953/balda-ag

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}[HYPERLINK:
mailto: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