DGAP-News: Balda reports positive financial performance and

DGAP-News: Balda AG / Key word(s): Final Results Balda reports positive financial performance and announces a further special dividend 12.12.2013 / 07:56 --------------------------------------------------------------------- - Substantial increase in sales to just under EUR 60 million - Comprehensive income of EUR 13.5 million - Proposal to pay a further special dividend of EUR 1.50 per share - COO Oliver Oechsle: Our mission is to enable growth for the Balda Group - CFO Dieter Brenken: Balda has a solid financial foundation Bad Oeynhausen, 12 December 2013 - The Balda Group showed strong financial performance in the 2012/2013 financial year. Consolidated sales from continuing operations amounted to EUR 59.9 million. Adjusted for extraordinary items, earnings before interest, taxes, depreciation and amortization (EBITDA) improved by EUR 6.7 million over the 2012 short financial year to EUR 4.1 million; consolidated EBITDA including extraordinary items totaled EUR 4.9 million. The Group's comprehensive income was EUR 13.5 million. Selling the shares in TPK Holding generated substantial cash funds for the Balda Group. These funds will be used for the further implementation of Balda's growth strategy and for paying further special dividend. The Management Board and the Supervisory Board will therefore propose payment of a special dividend of EUR 1.50 per share to the General Meeting on 28 January 2014. This would correspond to a total dividend payment of EUR 88.3 million, and it would be third dividend paid from the TPK sales since May 2012. 'The focus in the past financial year was on consolidating the Company's management. Our mission is to enable further growth for the Balda Group and to strengthen its position as a quality supplier of complex, customized plastics solutions,' said Oliver Oechsle, Chief Operating Officer of Balda AG. 'Overall, Balda has a solid financial foundation and therefore possesses the necessary financial capabilities to continue on its growth trajectory. But in spite of all the progress we have made, we are still some way from achieving our goals. In order to ensure sustainable profitable growth, we must significantly increase our effectiveness,' said Dieter Brenken, Chief Financial Officer of Balda AG. Overview of key financial figures Consolidated sales from continuing operations amounted to EUR 59.9 million. This figure includes the sales of the US companies Balda C. Brewer and Balda HK Plastics, which were consolidated from 1 January 2013 and substantially enhance the Group's international presence and competitiveness. Other operating income stood at EUR 9.7 million and includes, among others, the reversal of a contingent purchase price liability from the acquisition of Balda C. Brewer in the amount of EUR 3.3 million. The cost of materials totaled EUR 23.8 million, corresponding to 41.8% of gross revenue. This compares to a ratio of 52.9% for the 2012 short financial year. The decrease in the cost of materials in relation to gross revenue is due to a change in the product mix in the reporting period and a larger contribution made to revenues by the equipment business. Staff costs totaled EUR 21.2 million and from 1 January included the workforce of the acquired US entities. The Balda Group had a total of 856 employees as of 30 June 2013 (30 June 2012: 220 employees). Depreciation, amortization and impairment losses increased from EUR 1.1 million in the 2012 short financial year to EUR 15.2 million. This increase is mainly attributable to impairment losses resulting from impairment testing (EUR 11.5 million) and to higher depreciation and amortization caused by the initial consolidation of the US companies. The other operating expenses were EUR 16.9 million after EUR 6.3 million in the 2012 short financial year. Without the extraordinary items (e.g. transaction costs, costs for the extraordinary General Meeting), the other operating expenses amounted to EUR 13.3 million. Net finance income totaled EUR 29.0 million (2012 short financial year: EUR 268.9 million). As in the previous year, this item was influenced to a considerable extent by the proceeds from the sale of the shares in TPK Holding. The net loss from discontinued operations of EUR 7.3 million is due to the net deconsolidation loss from the disposal of Balda Solutions Malaysia in April 2013. Comprehensive income for the Group was EUR 13.5 million (2012 short financial year: EUR 250.7 million). This corresponds to earnings per share of EUR 0.23. The Group's total assets as of 30 June 2013 decreased by EUR 113.7 million to EUR 359.7 million. The main reason for this change was the payment of a special dividend of EUR 117.8 million in November 2012. Balda Group equity amounted to EUR 334.5 million at the end of the reporting period. This year-on-year decrease by EUR 115.9 million is primarily due to the dividend payment made. The equity ratio was 93.0% of total assets (30 June 2012: 95.2%). Performance of the two operating segments: The Balda Medical segment generated sales of EUR 49.0 million in 2012/2013 (2012 short financial year: EUR 11.7 million). This includes the revenues of the two US companies acquired with effect from 1 January 2013. EBITDA amounted to EUR 6.0 million, corresponding to 12.2% of sales. The Balda Technical segment was created from the former Electronic Products segment in the course of the acquisition of US plastics specialist Balda C. Brewer. This segment posted sales of EUR 10.9 million for the 2012/2013 financial year, comprising the activities of the US entity from its date of initial consolidation. EBITDA amounted to EUR 1.0 million, corresponding to 8.9% of sales. EBIT stood at EUR -10.7 million in the reporting period, which was primarily due to the impairment losses mentioned earlier (EUR 11.0 million). Outlook Assuming that macroeconomic conditions do not deteriorate significantly and barring any other unforeseeable adverse effects that have a material impact on the Balda Group, the Management Board aims to achieve, based on the current portfolio, consolidated sales of EUR 70 million to EUR 80 million and a single-digit EBITDA margin (based on sales) in the 2013/2014 financial year. Consolidated earnings before taxes are also expected to be positive on the basis of positive EBITDA. Note to the editors: The 2012/2013 Annual Report of the Balda Group is available on the Company's website at http://www.balda-group.com/en. Contact: Michael Pfister Deekeling Arndt Advisors Tel. +49 711 504633-40 Fax: +49 711 504633-41 Mail: michael.pfister@deekeling-arndt.de About Balda Balda is a provider of first-class solutions for demanding, high-quality applications in the fields of medical technology, optics, the automotive industry and other specialist industrial sectors. The Group's Balda Medical and Balda Technical operating divisions have operations worldwide, and the company maintains production facilities in Germany and the USA. The success of Balda, which employs around 1,000 people, is based on the deployment of leading-edge, cost-effective technologies, coupled with the trust-based collaboration with customers. The Balda AG share (ISIN: DE0005215107) is listed on the SDAX segment of Deutsche Börse. www.balda-group.com www.balda-medical-group.com End of Corporate News --------------------------------------------------------------------- 12.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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 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 News DGAP News-Service --------------------------------------------------------------------- 244382 12.12.2013