DGAP-Adhoc: Balda AG: Balda AG to write down US investments – sales guidance adjusted

Balda AG / Key word(s): Profit Warning/Forecast

07.11.2013 15:24

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP – a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Bad Oeynhausen, 7 November 2013 – Balda AG today announced that when
preparing the annual financial statements for the 2012/2013 financial year,
the company’s new Management Board critically reviewed the medium-term
business planning for the two US-based companies, Balda C. Brewer and Balda
HK Plastics. Based on a more conservative estimate of their future
performance, an impairment test triggered the necessity to write down the
carrying amounts of the US companies by USD 14.9 million. Whether these
impairment losses will be reported in the 2012/2013 annual financial
statements or in the financial statements for the first quarter of the
2013/2014 financial year is still being clarified as part of the ongoing
review of the annual financial statements. These impairment losses are
offset by income of around USD 4.3 million from the reversal of an accrual
resulting from a performance-related component of the purchase price
(earn-out clause) for Balda C. Brewer.

In connection with the ongoing review of the consolidated financial
statements of Balda AG for the 2012/2013 financial year, publication of the
annual financial report will probably be delayed by a further four to six

As a consequence of the reduced business prospects for the US companies,
Balda expects to generate consolidated sales of between EUR 70 million and
EUR 80 million for the 2013/2014 financial year (previous forecast: EUR
85-90 million).

Balda AG contact:

Investor Relations team of Balda AG
at CAT Consultants GmbH & Co.

Tel.: +49 40 – 30 37 44-18
Fax: +49 40 – 30 37 44-20
E-mail: ir-balda@cat-consultants.de

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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