EANS-Adhoc: Balda AG preliminary results: Earnings suffer from MobileCom business

ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.


• Sales revenues slightly above previous year´s level with around 140 million
• Operating result (EBIT) before special depreciation expected to be in the
amount of about minus 8 million euros (previous year: plus 4.7 million euros,
without India)
• Operating result (EBIT) after special depreciation expected to be in the
amount of around minus 38 million euros
• Earnings before tax (EBT) due to one-off TPK special effect of around plus 90
million euros (previous year: 47.3 million euros, without India)

Bad Oeynhausen, 26 January 2011 – According to provisional figures, the
Frankfurt SDax listed company Balda AG ended the 2010 financial year with sales
revenues slightly above previous year´s level. The company had already commented
in early November 2010 on the development of falling revenues as compared to the
original forecast. The operating result (EBIT) before special depreciation is
expected to be in the amount of about minus 8 million euros. Below-target sales
revenues for MobileCom in China, restructuring expenses and extraordinary
depreciation on machinery and inventories all had a significant impact on the
operating result.

The Balda Group generated sales revenues of around 140 million euros (previous
year: 134.1 million euros, without India) in the continued operations in the
2010 financial year.

Taking into account the preliminary determined special depreciation in the
MobileCom and Electronic Products segments in the amount of around 30 million
euros due to the impairment testing undertaken in the annual financial statement
process, the operating result (EBIT) is expected to be around minus 38 million
euros. The operating result (EBIT) before special depreciation amounts to about
minus 8 million euros (previous year: 4.7 million euros, without India).

TPK valuation at market values
Following the initial public offering of touchscreen manufacturer TPK on 29
October 2010 the reporting of the holding in TPK in future will be entered as a
financial instrument at market values; until this date it was reported at book
values according to the ‘at equity’-method. The revaluation of the TPK stake is
carried out on the basis of the first quotation (220 Taiwanese Dollars). In 2010
this had a one-off impact on earnings in the amount of around 124 million euros.
Since TPK shares were classified as financial assets, a share of profits is no
longer shown, only dividend payments. The evaluation of the TPK with the
quotation as of 31 December 2010 leads to a further strengthening of Group

Due to the unique impact on earnings based on the revaluation of the TPK
holding, as referred to above, the Balda Group recorded an extremely positive
EBT of around 90 million euros in continued operations in the 2010 financial
year. In the previous year the Group posted a plus of 47.3 million euros,
without India.

All of the above numbers are still being audited. The Balda Group will publish
its audited 2010 annual financial statements with final figures on 17 March
2011. A balance sheet press conference on the 2010 financial year will also be
held on this date.

* * *

end of ad-hoc-announcement
Company Profile Balda AG
The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical industry. The customers of Balda are
leaders in business from the mobile, entertainment and electronic communications
as well as pharmaceutical and medical technology markets. The group has an
international position with product sites in China, Malaysia and Germany. A
subsidiary in the United States serves North American customers in product
design and development. As part of a shareholding in a leading manufacturer of
touch screens in China, Balda participates in the dynamic touch screen displays

* * *
This ad-hoc announcement contains forward-looking statements which are based on
the current expectations of Balda´s management. They therefore contain a range
of risks and uncertainties because they relate to future 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
will neither revise these forward-looking statements nor correct them in the
event of any unexpected development, unless there is a legal obligation to do
This ad-hoc announcement represents neither an offer to buy shares nor an
invitation to submit an offer to buy shares in the United States or any other
country. The shares in Balda AG (the ‘shares’) may not be offered or sold in
the United States or to or for the account of U.S. persons (as defined in
Regulation S of the U.S. Securities Act of 1933, in its current version (the
‘Securities Act’)), unless they are registered or are exempt from registration
under the Securities Act. The shares have not been and will not be registered
under the Securities Act.

Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728

issuer: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
mail: info@balda.de
WWW: ¿U1http://www.balda.de¿U0
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English