EANS-News: Balda AG / Balda: Key strategic measures and high consolidated profit in the first quarter of 2012

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quarterly report

Subtitle: - Consolidated profit after taxes of 133.6 million euros
due to the part-sale of TPK shares - Sales and operating earnings
down year-on-year - Outlook for calendar year 2012 confirmed - Growth
strategy for the Medical segment defined - Restructuring measures of
the Electronic Products segment right on schedule - Shareholders will
vote on important resolutions on 11 May 2012

Bad Oeynhausen (euro adhoc) - Bad Oeynhausen, 3 May 2012 - Balda
Group implemented key strategies for its future development in the
first quarter of 2012. The Board of Directors, active as at 1 January
2012, pushed ahead with the planning for the strategic orientation of
the plastics processor and implemented the first measures. The
part-sale of the shares in the Chinese touchscreen manufacturer TPK
Holding Co., Ltd. during the reporting period generated a high
quarterly profit after taxes of 133.6 million euros. In the operating
business, the sales and earnings of both Medical and Electronic
Products segments were still below the prior-year figure. The Board
of Directors confirmed its previous outlook for the full calendar
year 2012.

Dominik Müser, Chairman of the Board of Directors (CEO), Balda AG:
"Balda made good progress in the first quarter and is well on its way
to becoming an innovative company in the plastic processing sector
with profitable business that is growing again. We now have a clear
idea of how our Medical activities can be increased to a brand new
level in the coming years. The restructuring measures for our
Electronic Products segment are right on schedule and should be
completed by the fourth quarter of this year. Overall, 2012 remains a
year of change for Balda."

Sales and earnings key figures Q1 2012 Balda Group - The Group
generated 12.2 million euros in sales, 9.4 percent less than in the
previous year's period (13.5 million euros). The reasons for this
drop were delayed order call-offs and start-up problems with new
projects in the Electronic Products segment. In the Medical segment,
the delayed order of a major customer also had a negative impact on
sales.

- Consolidated earnings before interest and taxes (EBIT) came to -3.1
million euros compared to -1.0 million euros in the first quarter of
2011. This result was impacted by the decline in sales and additional
costs such as those related to the use of temporary workers in the
Electronic Products segment.

- The financial result was positive at 136.9 million euros (Q1 2011:
7.0 million euros). It was affected by earnings from the sale of 20
million TPK Holding shares, which generated sales proceeds of 238
million euros. This reduced Baldas' share in TPK Holding from 16.1
percent to 7.6 percent.

- The Group therefore generated a quarterly profit after taxes of
133.6 million euros (Q1 2011: 4.4 million euros).

- Earnings per share (based on 58.89 million shares) came to 2.27
euros (Q1 2011: 0.07 euros).

Development of the operating Group segments - The Medical segment
with headquarters in Bad Oeynhausen achieved 6.0 million euros in
sales in the first three months of 2012 (Q1 2011: 6.8 million euros).
The reason for this decline was delayed order call-offs for a new
customer project. Business, however, will increase as planned during
the year. The segment result (EBIT) amounted to -0.5 million euros on
account of lower sales and additional costs for new product start-ups
(Q1 2011: 0.2 million euros).

- The Electronic Products segment, which is located in Malaysia,
recorded sales of 6.2 million euros in the first quarter of 2012 (Q1
2011: 6.6 million euros). This drop was due to customers delaying
order call-offs and the production start-up of new projects. The
segment result (EBIT) came to -1.2 million euros (Q1 2011: -0.8
million euros), also caused by additional costs for quality assurance
and for the processing of orders. Segment processes and structures
were considerably tightened and optimised as part of the
restructuring measures started at the beginning of the year. Overall,
this process is right on schedule.

Ordinary Annual General Meeting on 11 May 2012 As already announced
on 29 March, Balda will propose to its shareholders important
resolutions for the future of the Group at the ordinary Annual
General Meeting on 11 May 2012 in Bielefeld. These include switching
the financial year to end on 30 June, which would result in a
shortened financial year from 1 January to 30 June 2012. This would
make it possible to pay, in the frame of a further Annual General
Meeting in autumn, another special dividend from the proceeds of the
part-sale of TPK shares, after a dividend of 1.30 euros per share is
already on the agenda on 11 May. In addition, resolutions on new
authorised capital and the authorisation to issue bonds will be
proposed to the shareholders. These capital measures, which serve to
increase the company's options, aim to secure Balda's future.

Update on the reorientation of the Group The aim of Balda's current
reorientation is to lead the Group into a period of profitable growth
and to improve its operating business in order to generate
sustainable dividends.

In the Medical segment, plans are to increase its
internationalisation, expand its service portfolio and customer base
as well as to intensify its own value creation. Potential foreign
acquisitions are presently being identified for this purpose with
initial focus on the US market. The aim is to generate segment sales
in excess of 100 million euros in the medium term through careful
acquisitions (2010: 40 million euros).

In the Electronic Products segment, restructuring measures are being
continued in all areas to make the segment competitive again. At the
same time, the management is working on identifying attractive niche
markets in which the Electronic Products segment can utilise its
technological know-how, generate sufficient margins and grow
organically. The focus is clearly on high-end technical products for
which reliable customer supplies at continuously high quality
standards at the right point in time are a major success factor.
Especially in these areas, Balda enjoys strategic advantages. The
division is able to offer the complete process - from R&D to
tool-making, injection moulding, finishing and assembly - in a single
location at its Malaysia site.

In the non-operating Central Services segment (mainly holding company
functions), focus in 2012 will be on adjusting the structures to the
significantly reduced size of the Group after the sale of the
MobileCom segment in 2011 as well as realising corresponding cost
savings.

Outlook for calendar year 2012 Balda continues to expect consolidated
sales to be roughly on par with the previous year in calendar year
2012 and Group EBIT to again come to a negative one-million digit
figure. Due to the proceeds from the part-sale of TPK Holding shares,
however, the Group anticipates a high consolidated profit after
taxes. The aim remains to sell the remaining shares in TPK Holding
for an optimised price during the course of the current year.

Information for editorials: The Quarterly Report Q1 of Balda AG as of
31 March 2012 can be downloaded on the company website at
www.balda.de.

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