EANS-News: Balda achieves earnings turnaround in its operating business in H1 2012/2013 (with document)

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quarterly report/6-month report

Bad Oeynhausen (euro adhoc) - Balda achieves earnings turnaround in
its operating business in H1 2012/2013

- Consolidated EBITDA before extraordinary items at EUR 2.5 million

- High half-year profit of EUR 11.9 million on the strength of net finance
income

- Consolidated revenue down year-on-year due to high prior-year basis and
the difficult market environment for electronics products

- Significant progress in the implementation of the growth strategy through

the acquisition of US companies C. Brewer and HK Plastics Engineering

- Positive EBITDA and sizable consolidated profit for the year as a whole
also expected

Bad Oeynhausen, 20 February 2013 -The Balda Group today announced
that it turned its operating result around in the first half (1 July
to 31 December 2012) of the 2012/2013 financial year. After adjusting
for extraordinary items, the earnings before interest, taxes,
depreciation and amortization (EBITDA) of the specialist in advanced
plastics solutions in the first six months amounted to EUR 2.5
million, up from EUR -3.9 million in the comparative period, July to
December 2011. After taxes, positive currency effects in net finance
income meant the Group posted a half-yearly profit of EUR 11.9
million (prior-year period: EUR -23.8 million).

Dominik Müser, Chief Executive Officer of Balda AG: "In the first
half of the year, we not only turned earnings around, thereby
achieving one of our main goals, but by acquiring two well-known US
plastics specialists, C. Brewer and HK Plastics Engineering, at the
end of December, we also took important steps towards the necessary
internationalization of our businesses and the expansion of our
product and customer base. Implementation of the Group's published
growth strategy is therefore going entirely according to plan and
Balda is on the right track strategically. Our share price
performance recently shows that the capital markets are now beginning
to acknowledge the positive trend at Balda as well."

US companies included in segment reporting

Following the integration of C. Brewer Co. and HK Plastics
Engineering, Inc., the Balda Group reported on the two operating
segments Balda Medical and Balda Technical in the half-yearly report
for the first time. The existing Balda Medical segment has been
expanded to include the respective healthcare activities of the two
acquired companies. The previous Electronics Products operating
segment was renamed Balda Technical. In addition to the site at Ipoh,
Malaysia, it will also comprise two sites of C. Brewer in California,
USA. This segment develops, produces and markets plastics solutions
for high-quality optics, electronics and automotive applications.

The two US companies were consolidated as of 31 December 2012. As a
consequence, they were included in the statement of financial
position at this reporting date but do not yet have an effect on the
income statement for the first half of the 2012/2013 financial year.

Key revenues and earnings of the Balda Group for the first half of
2012/2013

- Consolidated revenues in the period from July to December 2012 stood at
EUR 27.9 million and were therefore 25.3 percent below the figure for the
prior-year period (EUR 37.4 million). The decline is solely due to the
exceptionally high comparative basis because extraordinarily high revenue
for tools and equipment was recognized in the Balda Medical segment in the
prior-year period. A generally weaker economic climate dampened demand for
electronics products in the Balda Technical segment in the first six
months of 2012/2013.

- The Group posted adjusted half-yearly earnings before interest, taxes,
depreciation and amortization (EBITDA) of EUR 2.5 million (prior-year
period: EUR -3.9 million). The figure for the first six months of
2012/2013 was adjusted for extraordinary items, primarily expenses
incurred in connection with the extensive M&S processes involved in the
buy-and-build strategy (e.g. transaction costs, due diligence expenses).

- EBITDA including extraordinary items totaled EUR 0.5 million after six
months (prior-year period: EUR -5.4 million). Balda's earnings were
boosted by significant savings in general costs as a consequence of leaner
Group structures and the successful restructuring of the electronics
business at its production facility in Malaysia.

- Net finance income totaled EUR 13.1 million after six months (prior-year
period: EUR -4.1 million). Alongside interest income from the Group's
substantial cash balances, positive valuation effects from the translation
of currency items such as receivables and cash at foreign subsidiaries
also made themselves felt.

- Comprehensive income for the Group after six months amounted to EUR 11.9
million. The figure for the prior-year period (EUR -23.8 million) still
included the loss incurred from the MobileCom operation, which was
discontinued as of 1 December 2011.

- Comprehensive income corresponds to earnings per share (basic EPS and
diluted EPS) of EUR 0.20 (prior-year period: EUR -0.40).

Segment performance

- At EUR 15.9 million, 2012/2013 revenues of the Balda Medical segment after
six months were 32.1 percent lower than the figure for the prior-year
period (EUR 23.4 million). The decline is solely due to the fact that
extraordinarily high project-related tools and equipment sales were
recorded in the prior-year period. In contrast, product sales from ongoing
projects increased substantially year-on-year in the first six months of
2012/2013. After six months, EBITDA stood at EUR 2.0 million (prior-year
period: EUR 2.6 million).

- The Balda Technical segment posted sales of EUR 12.1 million for the first
six months. This decrease of 14.0 percent compared with the prior-year
period in 2011 (EUR 14.0 million) is largely attributable to sliding
demand for entertainment and electronic products since mid-2012. The
restructuring process begun at the Malaysian site in early 2012 was
completed successfully according to plan in the reporting period,
producing significant process improvements and cost reductions. Segment
EBITDA amounted to EUR 0.1 million, following EUR -2.8 million in the
period July to December 2011.

- The Balda Central Services segment, which mainly comprises the holding
company functions of Balda AG, benefited from the streamlining of the
Group's structures and savings in other costs (e.g. for the use of service
providers). After the first half-year, this raised EBITDA to EUR -1.6
million, compared with EUR -5.2 million in the same period in 2011
(excluding expenses attributable to the former MobileCom segment).

Adjusted outlook for the full 2012/2013 year

The Management Board's primary objective remains unchanged: to guide
the Balda Group towards growth and value enhancement. In the medium
term, efforts will focus on achieving consolidated sales of EUR
150-200 million. Significant progress towards this objective was made
in the first six months of 2012/2013.

The Management Board has adjusted its guidance for the full 2012/2013
year. Both US companies are included in the consolidated financial
statements from 31 December 2012 and will contribute positive
earnings in the second half of the year.

Assuming that no unforeseeable negative events occur, and on the
basis of the current portfolio, the Management Board expects the
following for the full 2012/2013 financial year:

- consolidated sales of EUR 75-80 million; and
- a distinctly positive EBITDA both before and after extraordinary items.

The Group's profitability before and after taxes will be strongly boosted by

positive net finance income and the income from the sale of the
remaining shares in the former investment TPK Holding as completed in
January 2013. The Group is therefore expected to post a substantial
consolidated profit.

Notes to the editors: The Balda Group's interim financial statements
as of 31 December 2012 can be downloaded 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
Mail:office@elsner-kommunikation.de

The Balda Group at a glance

|in EUR million |1.7. - |1.7.- |1.10. - |1.10.- |
| |31.12 2012|31.12. 2011|31.12 2012 |31.12. 2011|
|Revenues |27.9 |37.4 |14.0 |22.0 |
|of which Balda Medical |15.9 |23.4 |7.8 |15.5 |
|of which Balda Technical |12.1 |14.0 |6.3 |6.5 |
|Gross revenue |33.5 |36.5 |19.4 |20.5 |
|EBITDA before extraordinary |2.5 |-3.9 |1.6 |-3.8 |
|items | | | | |
|EBITDA margin in % |7.5 |-10.7 |8.2 |-18.5 |
|before extraordinary items* | | | | |
|EBITDA after extraordinary |0.5 |-5.4 |-0.5 |-5.2 |
|items |2.0 |2.6 |0.9 |1.8 |
|of which Balda Medical |0.1 |-2.8 |-0.2 |-3.1 |
|of which Balda Technical |-1.6 |-5.2 |-1.2 |-3.9 |
|of which Balda Central | | | | |
|Services** | | | | |
|EBIT before extraordinary |0.7 |-5.7 |0.7 |-4.7 |
|items* | | | | |
|EBIT in % | 2.1 |-15.7 |3.7 |-22.9 |
|margin before extraordinary | | | | |
|items | | | | |
|EBIT after extraordinary items |-1.2 |-7.2 |-1.2 |-6.1 |
|Net finance income |13.1 |-4.1 |6.5 |-0.4 |
|Earnings before taxes |11.9 |-11.3 |5.2 |-6.5 |
|Net profit/loss from continuing| | | | |
|operations *** |11.9 |-13.3 |5.1 |-9.6 |
|Comprehensive income after |11.9 |-23.8 |5.1 |-10.7 |
|taxes **** | | | | |
|Earnings per share (EUR) |0.20 |-0.40 |0.09 |-0.18 |
| | | | | |
| |31.12.2012|30.6.2012 | | |
|Total assets |392.5 |473.4 | | |
|Equity |355.9 |450.5 | | |
|Equity ratio (%) | 90.7 | 95.2 | | |
| | | | | |
|Employees (number at reporting |1,774 |1,273 | | |
|date) |***** | | | |

* The figures for 2012 have been adjusted for non-capitalizable non-recurring
items for M&A processes and the modernization of Group IT
** Comparative period 2011: excluding expenses attributable to the former
MobileCom segment
*** Comparative period 2011: excluding former MobileCom segment (sold as of
1.12.2011)
**** Comparative period 2011: including net profit/loss from the discontinued
MobileCom operation
***** of which 741 at the US companies acquired as of 31.12.2012

Attachments with Announcement:
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Further inquiry note:
Kontakt/Ansprechpartner:
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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Attachments with Announcement:
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http://resources.euroadhoc.com/us/Rt8u2Pji

company: Balda Aktiengesellschaft
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2604
mail: info@balda.de
WWW: http://www.balda.de
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: SDAX, Prime All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English