Balda AG / Half Year Results 06.08.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Revenue growth in the first half year of 19.2 percent to 103.1 million euros - Significant revenue growth in the second quarter by 67.4 percent compared to the first quarter - EBITDA of 7.0 million euros (previous year: 11.3 million euros) - EBIT of minus 4.5 million euros (previous year: 5.4 million euros) - EBT of minus 10.6 million euros (previous year: minus 0.3 million euros) Bad Oeynhausen, August 6 2008. The Balda Group achieved revenues of 103.1 million euros in the first half-year of 2008 in the continued operations (previous year: 86.5 million euros). That is an increase of 16.6 million euros or 19.2 percent over last year. Earnings before interest, taxes and depreciation (EBITDA) stood at 7.0 million euros (previous year: 11.3 million euros). The Group achieved earnings before taxes (EBT) of minus 10.6 million euros (previous year: minus 0.3 million euros). In the second quarter Balda strongly increased revenues by 64.6 million euros (previous year: 47.9 million euros). That is a growth by 16.7 million euros or 34.8 percent. In comparison with the first quarter 2008 when revenues amounted to 38.6 million euros, revenues grew by 26.0 million euros or 67.4 percent in the second quarter. The region of Asia closed the first half-year with sales revenues of 95.7 million euros (previous year: 80.3 million euros). This is an increase of 15.4 million euros or 19.2 percent. This growth mainly derives from the second quarter. It is the result of the augmented sales volume of the touch as well as of the infocom business. Asia thus contributes 93 percent to the revenues of the Group. In the first half year the sales revenues of the region of America added up to 7.1 million euros (previous year: 6.6 million euros). For the first time the region of India achieved sales revenues of 0.9 million euros. The total operating performance amounted to 114.1 million euros (previous year: 96.7 million euros) after a build-up of inventories of finished goods and work in progress of 5.9 million euros. This is a growth of the total operating income of 17.4 million euros or 18.0 percent. Performance development In the first half-year all earnings items were under pressure. The material expenses rising by 17.2 million euros affected the EBITDA. The material expenses quota exceeded the rate of the previous year by 7.9 percent points. Especially in the region of Asia Balda´s the number of personnel grew up to 10.316 (end of 2007: 7.142 employees) at the end of the second quarter. In comparison with the first quarter of 2008 the number of employees jumped by 3,928 persons or 61.5%. The strong increase, in particular temporary workers, is caused by new projects being started in both business segments. The higher employee number was not yet reflected in personnel expenses of the second quarter. The personnel expenses quota, which improved by 2.7 percent in the second quarter could only compensate marginally for the increase in material expenses, however. The more so as the other operating expenses increased from 19.6 million euros the year before to 23.4 million euros. The operating result (EBIT) fell due to increased depreciation of tangible and intangible assets amounting to 6.7 million euros (previous year: 4.9 million euros) and markedly higher surplus depreciation of 4.8 million euros (previous year: 1.0 million euros). EBIT totalled minus 4.5 million euros (previous year: plus 5.4 million euros) at the end of the first half year. After financing costs amounting to 6.1 million euros (previous year: 5.7 million euros) EBT was at minus 10.6 million euros (previous year: minus 0,3 million euros). Refinancing costs, further drawing on credit lines and new credits in Asia were responsible for this. EBT in the Group in the second quarter 2008 stood at minus 3.0 million euros (previous year: plus 2.7 million euros), clearly better than in the first quarter. Taking into account tax and minority interests, the half-year loss for the continued operations totalled 11.2 million euros (previous year: plus 4.0 million euros). Based on 54.157 million shares as of June 30 2008 earnings per share of minus 0.310 cents have been calculated. Investments The Balda Group had a total of 25.8 million euros (previous year: 34.6 million euros) invested in their continued operations, primarily in Asia, at mid-year. The shareholders equity quota dropped from 35.7 percent at year-end to 31.5 percent on June 30, caused by the effects of currency exchange rates and the cyclical loss. Outlook Balda is assuming to finalize a contract with the banks on a new financing structure during the month of August. A continuation of financing the Group by primarily German banks is planned, including by granting new loans. The proceeds from selling Balda Medical and the properties in Bad Oeynhausen will by year-end or the latest by early 2009 be used to pay off debt to a considerable extent and to lower financing costs. On the base of the current forecast (Revenues: 414 million euros, EBT: 24 million euros) Balda expects a positive development in the second half of 2008. Besides a strong growth of sales the Group plans a significant increase of the earnings before interest, taxes, depreciations and amortizations (EBITDA) in all companies in the region of Asia compared to the first half of 2008. With respect to earnings imponderables prevail. The sales target could be affected by a decreasing number of orders by an important infocom client who recently published a profit warning and which would instantly have an impact on earnings. The planned ramp ups in the touch business again could be subject to delays. Supply shares as assigned to us by customers are subject to fluctuations. At the end of 2008 the high preproduction costs may be faced with missing sales volume. These influencing factors could be a burden in achieving the planned results. Moreover, price and competition pressure are growing in both business segments. With respect to financing and consultancy costs an unplanned expenditure in the range of a high single-digit million euros amount is to be expected in 2008. Key figures of Balda AG (continued operations) in mio. EUR Half-year 2008 Half-year 2007 Variation in % Revenues 103.1 86.5 19.2 Asia 95.7 80.3 19.2 America 7.1 6.6 7.3 India 0.9 - - Total operating performance 114.1 96.7 18.0 EBITDA 7.0 11.3 -38.1 Operating result (EBIT) -4.5 5.4 -183.3 EBIT margin (in %) -3.9 5.6 -169.6 Earnings before taxes (EBT) -10.6 -0.3 -3,223.0 Half-year net income -11.2 4.0 -382.4 Half-year net income including discontinued operations -16.8 -5.4 -209.5 Earnings per share (in cents) -31.0 -11.5 -170.8 Employees 10,316 7,198 43.3 * * * Company profile Balda AG The internationally operating Balda Group develops and produces highly integrated devices comprising plastic, metal and electronic components as well as touch sensors. Among the customers of the Prime Standard listed company are international brand names from the mobile telephony industry, medical technology and various related markets. The integration of plastic and touch screen technologies creates completely new customer benefits. Only Balda currently offers both technologies from one source on a global scale. The group has a strong position in the important growth markets China and India and owns four production facilities in the region. Plants in Brazil and in Malaysia, as well as the facility in Germany for Balda Medical, underline the global competitiveness of the group of companies. * * * 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. If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49 5734 922 2728, Fax: +49 5734 922 2691, Mail: croehl@balda.de, Internet: www.balda.de DGAP 06.08.2008 --------------------------------------------------------------------------- Language: English Issuer: Balda AG Bergkirchener Str. 228 32549 Bad Oeynhausen Deutschland Phone: +49-(0)5734-922-0 Fax: +49-(0)5734-922-2747 E-mail: info@balda.de Internet: www.balda.de ISIN: DE0005215107 WKN: 521510 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Balda AG: Clearly higher business volume in the second quarter and half-year 2008
| Source: EQS Group AG