DGAP-Adhoc: Balda with increase in revenues – negative result due to high depreciations


Balda AG / Key word(s): Final Results

25.03.2009 08:01

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.


Balda with increase in revenues – negative result due to high depreciations

– Revenue increase of 11.2 percent to 238.0 million euros

– Operative cash-flow jumping to 37.1 million euros

– High depreciations of 24.4 million euros

– EBIT of 1.4 million euros

– EBT of minus 9.4 million euros

– Net loss for the year 14.2 million euros

– Short- and long-term liabilities declining

– Objective 2009: At least balanced result

Bad Oeynhausen, 25 March 2009 – The Balda Group increased its revenues to

24.0 million euros or 11.2 percent to 238.0 million euros in the financial

year 2008 in the continued operations (previous year: 214.0 million euros).

The continued operations of the plastic specialist and mobile phone

components supplier comprise the turnover of the Infocom-group of companies

in the region of Asia and India, inclusive of touch screen-manufacturer TPK

with revenues of 71.2 million euros until the end of the third quarter.

Despite the positive development of the revenues, the earnings before tax

(EBT) and the net earnings slid into minus due to special items. The EBT

amounted to minus 9.4 million euros after plus 2.3 million euros in the

previous year. In total Balda Group achieved (discontinued and continued

operations) a turnover volume of 283.9 million Euros (previous year: 309.2

million euros). Earnings before income taxes 2008 amounted to minus 44.5

million euros (previous year: minus 68.3 million euros), earnings after

taxes reached minus 49.5 million euros (previous year: 73.3 million euros).

The operative cash-flow at year-end 2008 increased from minus 13.0 million

euros in the previous year to plus 37.1 million euros.

Continued operations

The earnings before interest, tax and depreciations (EBITDA) amounted to

25.7 million euros (previous year: 29.5 million euros). Especially the

above average high depreciations of 24.4 million euros (previous year: 16.0

million euros) put pressure on operating income (EBIT) 2008 of only 1.4

million euros (previous year: 13.5 million euros). In the previous year the

EBIT was positively influenced by special effects. On the other hand, the

EBIT 2008 was negatively influenced by special items amounting to 13.5

million euros. High financial costs of 14.3 million euros (previous year:

11.2 million euros) burdened the earnings before tax (EBT) of minus 9.4

million euros (previous year: plus 2.3 million euros).

The Balda Group recorded a net loss of 14.2 million euros (previous year:

minus 2.8 million euros) in the continued operations. The earnings per

share amounted on the basis of 54.157 million shares in the continued

operations of the group to minus 0.263 euros (previous year: minus 0.060


The short-term liabilities of the group were reduced to 161.1 million euros

(previous year: 178.6 million euros). Including the reclassified amount of

27.3 million euros from a long-term credit the short-term liabilities owed

to financial institutions increased by 7.0 million euros to 100.7 million

euros. The long-term liabilities went down by more than half from 93.6

million euros to 38.7 million euros, especially due to amortisation and the

above mentioned reclassifications. The equity-ratio of the group amounted

to 33.5 percent in the year under review after 35.7 percent in the previous


The company considers a precise numbered prognosis for the operative

business 2009 as difficult at present. The Group has processed the

expenses of the past years in the balance sheet to the best of their

knowledge. In future the earnings of the actual business will influence the

balance sheet and the earnings statement.

After the deconsolidation of TPK, the basis for the revenue planning 2009

is the Group revenues of 2008 of 238.0 million euros less the share of the

turnover 2008 of TPK amounting to 71.2 million euros, that is around 167.0

million euros.

However, given the situation of individual customers and the insecurities

in the worldwide economy, the Group cannot exclude a further slump in


After a good financial year 2008 in the Asia region, the Balda Group

expects for the year 2009, with sales essentially unchanged and despite a

reduced expense volume, an above average decline of the EBIT for the Asian

region. Referring to the Group the company plans an improvement of the EBIT

compared to 2008. Since in all likelihood contributions from the TPK

financial result will commence, the company expects a stronger increase of

the earnings before taxes than for the EBIT.

Balda’s objective for 2009 – even in the case of dropping sales – is to

achieve balanced results at minimum. In spite of globally shrinking

economic activity, the company is confident to gain new customers and

projects in 2009.

For financial figures please see table overleaf


Balda Group Financials 2008/2007

(continued operations)

Difference in

in million Euros 2008 2007 percent

Turnover continued operations 238.0 214.0 11.2

Total operating performance 250.7 228.1 9.9

Material expenditure quote (in %) 55.7 54.0 3.2

Employees expenditure quote (in %) 15.4 15.9 -3.1

EBITDA 25.7 29.5 -12.7

EBIT 1.4 13.5 -90.0

EBIT-margin (in %) 0.6 6.3 -90.5

EBT -9.4 2.3 -508.7

Net loss for the year -14.2 -2.8 -399.7

Operating margin after interest and tax

(in %) -6.0 -1.3 -361.5

Cash-flow from continuous operation 37.5 -9.2 509.2

Investments 37.5 46.1 -18.7

Employees (as of 31.12.) 4.664 6.581 -29.1

Earnings per share (in Euro) -0.263 -0.06 -338.3

Share price at year end (in Euro) 0.51 9.10 -96.4

Company profile Balda AG

The Balda Group develops and produces highly integrated devices comprising

plastic and electronic components, primarily for the telecommunications

sector. In addition, the company manufactures high-tech components such as

headphones and hands-free sets.

The future is derived from past experience. Balda has developed an active

culture of continuous transformation through the traditions established

within the hundred years of its existence. Since its founding, innovation

and technology have been the significant driving forces of progress and the

guarantors of corporate success. Today, Balda is an internationally

positioned high-tech company with innovative products and a high

performance capacity.

Balda AG, which is registered in the Prime Standard on the German Stock

Exchange, services international brand-name clients in the mobile

telecommunications sector, medical technology and other similar markets.

The Group produces close to its customers’ locations in the expanding

growth markets. With four production facilities, the Group has a strong

position in China and Malaysia. Plants in Brazil and India, as well as the

facility in Germany for Balda Medical, underline the Group’s international

focus. Within the framework of a shareholding in a leading producer of

touch screens in China, Balda is participating in the dynamic development

in the touch-sensitive display sector.

The vision was and is clear: Balda will strengthen its technological

innovations potential and further expand in the promising growth regions of

Asia. Balda will thus achieve the conditions for profitable growth and a

sustainable increase in added value..

* * *

If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49

5734 922 2728, Fax: +49 69 710456450. Email: croehl@balda.de, Internet:


* * *

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.

25.03.2009 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