DGAP-Adhoc: Balda turns into a global high-tech company

28.03.2007

Balda AG / Key word(s): Final Results

28.03.2007 07:36

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.

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Balda turns into a global high-tech company

* Pre-tax profit (EBT) of 50 to 55 million euros expected for 2007

* Estimated earnings per share in 2007 over 0.90 euro

* Pre-tax loss (EBT) in 2006 49.5 million eu-ros as expected

* No dividend payment for 2006

Frankfurt / Bad Oeynhausen, 28 March 2007 – In 2006 Balda AG has completed

its entry into the touchscreen technology market with the acquisition of

its stake in TPK Holding. The second half of the year was characterized by

BenQ and by the accelerated transfer of the mobile telephone manufacturers’

production to Asia. Against this background Balda attained, as previously

forecasted, a pre-tax result (EBT) of minus 49.5 million euros in 2006

(previous year: pre-tax profit of 49.7 million euros). Sales were 370.9

million euros, and thus 26.3 million euros, 6.6 per cent respectively,

lower than last years’ 397.2 million euros. Balda has turned into a

supplier of highly complex system solutions in both the plastic and the

touchscreen technology. For 2007 Balda expects a pre-tax profit (EBT) of 50

to 55 million euros.

Financial year 2006

The second half of 2006 in particular was characterized by special items

arising in the Infocom division. These charges and the resulting sale of

production facilities led to a negative result for 2006. The consolidated

after tax loss amounted to 42.0 million euros (previous year: profit after

tax of 33.4 million euros).

Necessary adjustments and depreciations accounted for the major part of the

charges in the financial year, but are not cash-relevant. Based on 40.28

million shares the resulting earnings per share (EPS) for 2006 are minus

1.04 euro (previous year: profit per share of 0.83 euro). At the general

meeting it will be proposed that no dividend is to be paid. For the current

year, however, the group anticipates positive earnings per share exceeding

0.90 euro.

Measures

In the past year Balda has successfully pushed ahead with the shift towards

transforming into a global technology company. The sale of several plant

facilities took place as announced in October.

Throughout the group Balda had 8,315 employees as of the end of 2006

(previous year: 8,044). Following the plant sales, an almost completely

foregoing of the use of temporary employees, and the reduction in the

number of jobs in Bad Oeynhausen, the German work-force has been decreased,

as planned, by around 1,500 employees.

New technologies, new markets, new customers

In 2006 Balda acquired a 50 per cent stake in TPK Holding, the manufacturer

of innovative touchscreen solutions, held through Balda Investments

Singapore (BIS). BIS is a 95 per cent owned subsidiary of Balda. Balda has

thus expanded its portfolio to include fast growing future technologies.

The TPK founder family Chiang has in return taken up a stake in Balda AG,

and is now the largest private shareholder with a stake of 15 per cent.

The Infocom division is strongly positioned in the important growth

markets China and India. With TPK Balda is a supplier of highly complex

systems and has a technological lead of about two years in the field of

touchscreen solutions.

Outlook

Balda has started the 2007 financial year as planned. Expectations

regarding product output remain unchanged. Consolidated revenues of 600 to

650 million euros and a pre-tax profit (EBT) of 50 to 55 million euros

have been budgeted. This leads to earnings per share (net) of more than 90

euro cents.

For seasonal reasons the third and fourth quarters are traditionally

stronger in the Infocom division than the first two quarters of the year. A

similar cycle is also to be expected at TPK in 2007. Here the mass

production begins towards the end of the first quarter. Balda is prepared

to amend its capacities flexibly in line with rising demand. Thus sales

and earnings will pick up momentum in the second half of the year.

The touchscreen production of TPK is seen to make a considerable

contribution to the expected increase in revenues. It is anticipated that

in 2007 the foreign production facilities account for 80 per cent of the

consolidated revenues.

Balda targets revenues of one billion euros by the end of 2010.

28.03.2007 DGAP’s Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

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

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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen

Germany

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

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