DGAP-News: Balda AG: Final figures 2014 / 2015: At EUR 85.4 million, sales revenues have significantly exceeded the forecast, operating result affected by extraordinary items

28.09.2015

DGAP-News: Balda AG / Key word(s): Final Results

Balda AG: Final figures 2014 / 2015: At EUR 85.4 million, sales

revenues have significantly exceeded the forecast, operating result

affected by extraordinary items

28.09.2015 / 12:38

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– Preliminary figures 2014 / 2015 confirmed: sales EUR 85.4 million,

EBITDA before extraordinary items EUR 6.4 million

– Consolidated net income negative at EUR -12.7 million due to value

adjustments

Bad Oeynhausen, 28 September 28 2015 – Today, Balda AG published its annual

report with the final figures for the financial year 2014 / 2015.

Accordingly, the Group generated sales revenues in the amount of EUR 85.4

million (previous year: EUR 70.5 million), which corresponds to a

21.1 % increase. This means that Balda Group’s sales revenues have

developed significantly better than provided in the forecast. The increase

is primarily due to larger customer orders in different projects, new

business as well as currency exchange effects. This result in earnings

before interest, taxes, depreciation and amortization (EBITDA) and before

extraordinary items in the amount of EUR 6.4 million compared to EUR 4.0

million in the previous year. Consequently, the EBITDA margin before

extraordinary items was 7.7 %. After extraordinary items, the EBITDA was

EUR 1.5 million, though, after EUR 1.9 million in the year before. Special

items primarily include value adjustments in the America segment due to the

future loss of a major customer as well as one-off effects in connection

with legal disputes in the USA.

“We are pleased with the operating development of the Balda Group in the

past financial year, even though the loss of a major eyewear customer will

lead to further restructuring. Moreover, there remains some baggage that we

need to work on. We shall continue to vigorously pursue this goal.

Nevertheless, the development in the period under review shows that Balda

is on a good path, operationally, and that there is growth potential still

to be tapped”, says Oliver Oechsle, sole Management Board member of Balda

AG.

Overview of the financial key figures

During the year under review, cost of materials increased due to more

materials-intensive articles sales in the Europe segment and amounted to

EUR 32.8 million compared to EUR 27.0 million in the previous reporting

period. Offset against the sales revenues figures, the cost of materials

ratio only increased marginally and stood at 39.1 % (previous year: 38.0

%).

Staff costs increased to EUR 33.4 million compared to EUR 29.3 million in

the previous year. This increase is the consequence of additional

expenditure caused by a growing average number of employees and accrued

expenses due to employees leaving the company. The staff cost ratio

decreased from 41.4 % to 39.8 %, though.

During the period under review, amortization, depreciation and impairment

losses rose to EUR 13.6 million following EUR 6.7 million in the previous

year. Depreciation primarily concerned the goodwill in the America segment

(EUR 7.0 million). This was necessary because a major customer announced to

do its own production in the future. Scheduled depreciation on property,

plant and equipment and intangible assets amounted to EUR 5.0 million.

At EUR 19.1 million, other operating expenses were higher than previous

year’s EUR 16.8 million. Adjusted for extraordinary items, other operating

expenses only increased marginally and amounted to EUR 15.7 million

(previous year: EUR 15.2 million). This non-proportional development –

compared to the increase in sales revenues – reflects the cost reduction

measures introduced during the previous years.

Earnings before interest and taxes (EBIT) and before extraordinary items

amounted to EUR 1.4 million (previous year: EUR -0.9 million) and were thus

positive in accordance also with forecast. After amortization,

depreciation, impairment losses and extraordinary items, EBIT stood at EUR

-12.7 million during the reporting period, though.

At EUR -9.3 million, earnings before taxes (EBT) are significantly below

the previous year’s value of EUR 5.3 million, which is primarily due to

aforesaid extraordinary items.

For the business year 2014 / 2015, Balda AG shows a consolidated net income

of EUR -12.7 million (previous year: EUR 5.9 million). Again, the changes

are primarily due to the extraordinary items. The earnings per share –

diluted and undiluted – accordingly amounted to EUR -0.22 compared to EUR

0.10 in the same period last year.

The consolidated balance sheet showed EUR 265.8 million on 30 June 2015 and

was thus at approximately the same level as in the previous year (EUR 263.3

million). Over the year, equity decreased slightly from EUR 241.8 million

to EUR 234.1 million. The decrease is mainly a consequence of the negative

consolidated net income. Hence, also the equity ratio of the Group fell

from 91.8 % to 88.1 %.

Developments after the end of the business year and outlook

On 23 September 2015 Balda AG announced the sale of all operating

subsidiaries. This is still subject to the approval of the Annual General

Meeting and the anti-trust authorities. The purchase agreement provides a

retroactive effect of the economic transfer of the acquisition assets as

per 1 July 2015. Once the purchase agreement becomes effective, the entire

operating business including its sales revenues, costs and income would be

removed from the Balda Group as per 1 July 2015.

Under the proviso of the Annual General Meeting’s approval, the Supervisory

Board and the Management Board, due to the sale, also suggest to pay out an

extraordinary dividend in the amount of EUR 1.10 per share and to reduce

the share capital at a 10:1 ratio from EUR 58.9 million to EUR 5.9 million.

This would result in another payout in the amount of EUR 0.90 per share.

Moreover, on the occasion of the Annual General Meeting on 19 November 2015

a decision will have to be made regarding the new business purpose and the

new company name of the Group.

Note to the editors:

The annual report 2014 / 2015 can now be downloaded on the company’s

website www.balda-group.com.

Contact/contact person

Daniela Münster

Deekeling Arndt Advisors

Tel: +49 (0) 5734 922 2555

Mobil: +49 (0) 174 335 8111

Mail: daniela.muenster@deekeling-arndt.de

About Balda

Balda (ISIN: DE0005215107) is a provider of high-end plastics solutions

that rely on quality in sophisticated fields of application in the

healthcare, lifestyle, automotive and consumer electronics industry. Balda

operates in Europe and Northern America and has state of the art production

sites at the Oeynhausen headquarters in Germany and in the US. The

company’s success with its about 790 staff worldwide is based on the use of

modern, cost-efficient technologies and the close cooperation with our

customers in a spirit of trust.

www.balda-group.com

Balda Group: overview of the key financial figures

(Statement according to IFRS)

in EUR million 01.07.2014 – 01.07.2013 –

30.06.2015 30.06.2014

Sales 85.4 70.5

Europa 37.5 31.8

America 47.9 38.7

Total performance 83.8 70.9

EBITDA before special items 6.4 4.0

EBITDA after special items 1.5 1.9

Europa 2.1 -0.7

America -0.2 2.8

other -0.3 -0.2

EBITDA margin in % (before special 7.7 5.7

items)

EBIT -12.1 -4.7

Financial result 2.8 10.0

Earnings before taxes -9.3 5.3

Result overall Group -12.7 5.9

Result per share in EUR -0.22 0.10

Key figures balance sheet 06/30/2015 06/30/2015

Balance sheet total 265,8 263,3

Equity capital 234,1 241,8

Return on equity in % 88,1 91,8

Number of employees at the cut-off 789 786

date

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28.09.2015 Dissemination of a Corporate News, transmitted by DGAP – a

service of EQS Group AG.

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

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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: ir@balda-group.com

Internet: www.balda-group.com

ISIN: DE0005215107

WKN: 521510

Listed: Regulated Market in Frankfurt (Prime Standard); Regulated

Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,

Munich, Stuttgart

End of News DGAP News Service

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397957 28.09.2015