DGAP-Adhoc: Balda AG: Balda developing according to budget in 2007


Balda AG / Key word(s): Quarter Results

02.05.2007 07:59

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted

by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.


* First quarter of 2007 shows continued operations in line with


* Continued operations with 63.1 million euros revenues, pre-tax

loss (EBT) 4.9 million euros

* Growth investment in Asia increases depreciation and interest


Bad Oeynhausen, 2 May 2007 – Balda AG developed as planned in the first

three months of 2007. The expectations for the full year remain unchanged,

revenues and in particular earnings are driven by the second half of the

year to a decisive degree. The Asian business of the globally operating

high-tech company is to be further stimulated in the coming months by new

orders and the burgeoning mass production of innovative touchscreen

solutions. From a long term stance Balda is already looking ahead at

products and technologies which could support the next growth stage.

Revenues and earnings

The strategic refocusing of Balda Group and the associated asset sales

resulted in extensive changes to the structure of the group. To provide a

basis for an appropriate comparison, figures for 2007 and 2006 respectively

centre on the development of the continued operations.

Consolidated revenues for the first three months of 2007 were, as with the

corresponding quarters in previous years, weak for seasonal reasons.

Revenues of the continued operations were 63.1 million euros. In the

corresponding quarter of the previous year the comparable revenues were

81.3 million euros (minus 22.4 per cent). This development is essentially

explained by the BenQ insolvency and the transfer of production to Asia by

leading mobile telephone manufacturers. With a total of some 55 per cent

Asia made the largest contribution to the revenues of the continued

operations, followed by Europe, whose share was around 40 per cent. America

contributed circa five per cent. India did not post any revenues in the

first three months of 2007.

The consolidated pre-tax loss (EBT) from the continued operations in the

first quarter of 2007 was 4.9 million euros (comparable pre-tax profit in

the first three months of 2006: 6.6 million euros). Accounting for tax

refunds and minorities the respective after tax loss amounted to 1.9

million euros (first quarter of 2006: 4.2 million euro profit). These

figures reflect the downturn in revenues in Europe and the planned increase

in depreciation on fixed assets through growth investment in Asia and the

respective financing costs. The discontinued operations also closed with an

after tax deficit of 1.9 million euros (deficit of the previous year: 0.2

million euros).

Investment and cash flow

From January to March 2007 Balda invested 15.7 million euros in the

continued operations’ fixed assets (1st quarter 2006: 16.0 million euros).

The increase in the working capital in Asia, the declining operating income

as well as higher interest and tax payments lead to an operating cash flow

of the continued operations amounting to minus 16.9 million euros (first

quarter 2006: plus 6.6 million euros).


As of 31 March 2007 Balda employed a total of 7,648 staff in the continued

operations throughout the group. As of 31 March 2006 these areas had

employed a total workforce of 7,235. The change in the number of employees

reflects, among other things, the reduction of personnel in Europe and the

additional staff in Asia.


The guidance for the full year 2007 is confirmed: The consolidated revenues

will, from today’s stance, be 600 to 650 million euros; the sales volume in

terms of the number of units also remains unchanged. With the touchscreen

solutions in particular the system supplier Balda increasingly uses

purchased parts whose prices are currently falling. As such price decreases

are passed on to customers, the revenues could be lower than planned in

2007. However, the expected earnings would not be affected by this. A

pre-tax profit (EBT) of 50 to 55 million euros has been budgeted. This

leads to earnings per share (net) of more than 90 euro cents.

Key figures of the continued operations

Q1 2007 Q1 2006 Change

Revenues 63.083 m EUR 81.271 m EUR – 22.4%

Earnings before tax (EBT) – 4.860 m EUR 6.580 m EUR – 173.9%

Profit for the quarter – 1.912 m EUR 4.223 m EUR – 145.3%

Depreciation (fixed assets) 4.459 m EUR 3.654 m EUR 22.0%

Investment (fixed assets) 15.720 m EUR 15.960 m EUR – 1.5%

Cash flow – 16.922 m EUR 6.651 m EUR – 354.4%

Employees (as of 31 March) 7,648 7,235 5.7%

Capital stock (in shares) 47,387,088 40,162,958 17.6%

Key figures of the discontinued operations

Q1 2007 Q1 2006 Change

Revenues 3.284 m EUR 11.465 m EUR – 71.4%

Earnings before tax (EBT) – 1.931 m EUR – 0.137 m EUR – 1,309.5%

Profit for the quarter – 1.931 m EUR – 0.216 m EUR – 794.0%


Information and Explaination of the Issuer to this News:

This ad hoc announcement includes ‘forward-looking statements’ which are

based on the current expectations of the management of Balda. They are

subject to risks and uncertainty because they relate to 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 does not undertake any obligation to update publicly

or revise forward-looking statements except to the extent legally required.

This ad hoc announcement is not an offer of securities for sale or a

solicitation of an offer to purchase securities in the United States or

elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold

in the United States or to or for the account or benefit of U.S. persons

(as such term is defined in Regulation S under the U.S. Securities Act of

1933, as amended (the ‘Securities Act’)) unless registered under the

Securities Act or pursuant to an exemption from such registration. The

Shares have not been and will not be registered under the Securities Act.

If you have any questions please contact us: Balda AG, Cersten Hellmich /

Clas Röhl, Phone: + 49 (0) 1704460123/+ 49 (0) 16090941251, Email:

chellmich@balda.de, croehl@balda.de, Internet: www.balda.de

02.05.2007 DGAP’s Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de


Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen


Phone: +49 (0) 57 34 / 9 22-0

Fax: +49 (0) 57 34 / 9 22-2604

E-mail: info@Balda.de

Internet: www.balda.de

ISIN: DE0005215107

WKN: 521510

Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr

in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service