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  • 1. Quarterly Report I / 2 01 2 Transfer adapter made of soft and hard plastic components, to prepare a compound of syringe and ampoule. Balda AG: setting a significant, strategic course and large Group earnings in the first quarter of 2012 Group earnings after tax thanks to the partial sale of TPK shares at 133.6 million euros. Sales and operating result below previous year’s value Statements for the 2012 calendar year confirmed Growth strategy for the Medical segment defined Restructuring of Electronic Products segment on track Shareholders should make important decisions at the annual general meeting on 11 May CONTENT1 Key Figures of Balda Group 2 Interim Management Report 6 Letter to the Shareholders 3 Selected explanatory notes 16 Notes to the changed structure 4 Tables 20
  • 2. Key Figures of Balda Group Key Figures of Balda Group in mio. euros Q1 2012 Q1 2011 1 Change in percent Sales 12.2 13.5 -9.4 Electronic Products 6.2 6.6 -7.1 Medical 6.0 6.8 -11.8 Central Services 0.1 0.3 -79.1 Overall operating performance 15.4 15.6 -0.8 EBIT -3.1 -1.0 EBIT margin (in %) -20.0 -6.3 - Earnings before taxes (EBT) 133.8 6.0 - Earnings of continued business divisions 133.6 5.9 - Earnings per share (in cents) 2 2.27 0.07 Operating cash flow -1,599 9,086 Number of employees 3 1,437 1,040 38.2 1) Excluding the MobileCom segment sold in 2011 (except operating cash flow) 2) Number of shares as of the balance sheet date in millions 58,891 (previous years balance sheet date: 58.891) 3) Number of employees including temporary agency employees, assistants and trainees – continued business divisions only Brief profile of Balda Technologies | Quality | Outstanding products Our mission is first-class solutions in plastic and electronic products. We offer our customers innovative engineering and pro- ducts of outstanding quality. One of our many strengths are fast and flexible services at competitive prices. Our customers appreciate our close cooperation and our simple and fast processing. This way, we create long-term added value for our employ- ees, business partners and shareholders.2
  • 3. Letter to shareholdersLetter to shareholdersDear shareholders,During the first quarter of 2012, the Balda Group has set an important course for successful future development. TheExecutive Board, which took its position on 1 January of this year, has introduced measures to be taken in future for impro-ving performance in operational businesses. In addition, planning for the Groups future strategic focus has been widelyencouraged.Our aim is clear: the Executive Board intends to establish Balda as an innovative plastic processing company whose opera-tional businesses are sustainably profitable and continue to grow. We cannot, and do not want to, live off our reputation anylonger. It is therefore necessary to realign both the Medical and Electronic Products business segments and bring them oncourse for profitable growth. We must concentrate on this – and only this.An important step during the first quarter was the partial sale of our share in the Chinese touchscreen manufacturer TPKHolding. The divestiture of 20 million shares, reduced by our share of 16.1 percent to 7.6 percent brought in cash flow ofaround 238 million euros and a contribution to financial earnings of 137.6 million euros. The Executive Board sticks to itsannouncement that the income from the sale of TPK will reach you, our valued shareholders – namely in any way whichallows the strategic, financial and fiscal requirements of our company to have maximum benefit.For this reason, the Executive Board and the Supervisory Board will suggest at the Annual General Meeting on 11 May 2012that the first step should be a dividend of €1.30 per share, which would correspond to a total payout of approximately 77million euros. If any other suggestion by Management is accepted at the General Meeting and the financial year of our com-pany is shifted to the balance sheet date of 30 June, a further payout would still be possible in the spring of this year.As already explained, we would like to sell all of the remaining shares in TPK soon, probably in 2012, since obtaining the hig-hest possible price takes precedence over a quick sale. Further payments would be expected as a result of this disinvest-ment.However, the considerably positive impact that the partial sale of the shares in TPK has had on Baldas income in the firstquarter, which closed with a consolidated profit of 133.6 million euros after tax, should not disguise the significant challen-ges facing the operational business. Group revenues decreased by 1.3 million euros on the previous year to 12.2 millioneuros in the first three months. The operational income (EBIT) was also lower than the previous years figure at minus 3.1million euros.The sales and operational income of both of the Groups operational segments closed the first quarter below the previousyears values. The Medical segment, based in Bad Oeynhausen, had to accept delays in order call-offs from customers for anew project, although these losses should be absorbed in the coming quarters. We would like to expand upon the generallypositive situation in our Medical business in the coming years by way of an ambitious growth strategy comprising of strongerinternationalisation, the expansion of the product and customer portfolio and the consolidation of our own concept. Targeted,modest acquisitions will play a key role in this development.The Electronic Products segment, based in Malaysia, had to deal with complex production launches for plastic productsduring the first quarter. Demanding surface technology requirements and additional measures on quality assurance led tolower production volumes and decreases in sales. Delays in order call-offs affected sales and income.We have introduced a number of measures for Electronic Products, which aim to improve the positioning of this business inthe market, to increase the sales performance and to eradicate internal deficits in structures and processes. We are confi-dent that we will achieve our aim and that we will manage an operational turn-around in Malaysia by the end of this calendaryear. After the first quarter the restructuring of the segment is on track. 3
  • 4. Notes on the structure of the quarterly report The Executive Board has confirmed the statements made in February with regard to the Balda Groups business performan- ce in the 2012 calendar year: we are experiencing sales revenues at around the same level as the previous year, and a once again negative operational income in the single-digit million range. However, the Groups annual financial statements will be distinctly positive as a result of the earnings from the sale of the shares in TPK. I would like to thank you, most valued shareholders, for placing your confidence in the new Executive Board. The 2012 calendar year is a transitional year for Balda, in which we would like to set the course for a successful future. All of the requi- rements for this are in place, and now it comes down to the necessary measures being implemented and no time being lost. Yours sincerely, Dominik Müser Chairman of the Executive Board Notes on the structure of the quarterly report In the report for the first quarter of 2012, the Balda Group structures its continued business divisions into three segments: Medical Electronic Products Central Services This interim report is based primarily on the earnings from the sale of TPK shares and the earnings of the following operating companies: Balda Medical GmbH & Co, KG Balda Solutions Malaysia Sdn, Bhd, Balda Solutions USA Inc, The data for the first quarter of 2012 presented in this report does not concur, in terms of the composition of the continued busi- ness divisions, with the values provided in the report for the first quarter of 2011. In the interim report of 31 March 2011, the MobileCom segment was still a continued business division. This report presents appropriately adjusted and comparable figures, where necessary, from the previous period.4
  • 5. The Balda Share and investor relationsThe Balda Share and investor relationsShares markets take offThe shares markets got off to a positive start in 2012. The atmosphere on the international stock exchanges during the first quar-ter was characterised by optimism from investors. The credit banks’ waiver of Greek bonds, the increase in the euro zone rescuefund, the continuously low interest rate of central banks and positive speculative data from the US led to significant market gainsin the first quarter. The DAX, the leading German index, gained around 18 percent in value during the first three months of thecurrent financial year. The SDax small cap index, in which the Balda share is listed, ended the first quarter of 2012 with a gain of16.6 percent.The Balda AG share grew even more strongly than the benchmark index during the period under review. The securities started the2012 trading year on 4.20 euros. The shares certificates registered their three-month high at 6.42 euros on 5 March 2012. TheBalda AG share registered its lowest price on 5 January 2012, at 4.15 euros. The Balda Share ended the first quarter on 30March 2012 at a closing price of 6.22 euros. The securities therefore posted a price increase of around 48 percent in the firstthree months.An average of 312,525 shares were traded per day in the first three months of the current financial year (Xetra) (previous year:505,809 shares per day). The market capitalisation of Balda AG amounted to around 366 million euros as of 30 March 2012based on 58,890,636 million shares in circulation and a price of 6.22 euros. On 31 December 2011, the market value hadamounted to 255 million euros with the same quantity of shares and a year-end price of 4.33 euros.Share price January to March 2012in euro 6.4 Balda AG SDAX 6.0 5.6 5.2 4.8 4.4 4.0 January February March 5
  • 6. Quarterly Report I/2012 The listing of the Chinese touchscreen manufacturer TPK Holding Co., Ltd. by Balda, which still holds a 7.6 percent share following a partial sale in the first quarter, opened the 2012 trading year at a price of 370 Taiwanese dollars (around 9.53 euros). The TPK share price was around 477 Taiwanese dollars (approximately 12.29 euros) when trading closed on 30 March 2012. Over the three months as a whole, the TPK listing recorded a gain of 107 Taiwanese dollars (around 2.75 euros). The value of Baldas holding in TPK reached around 219 million euros at the end of the quarter. Shareholder structure The following changes were made to Balda AGs shareholder structure during the period under review: RoundKeep Capital Advisors LLC, based in Illinois, USA, fell below the 3 percent threshold for voting rights, and now holds 2.997 percent of the voting rights in Balda AG. Furthermore, Brookdale International Partners, L.P., based in New York, informed Balda AG on 2 March 2012 that its share in voting rights had exceeded the 5 percent threshold and now amounts to 5.10 percent (3,002,226 voting rights). These voting rights must now be apportioned to the shareholder Weiss Asset Management, whose overall registered share of voting rights amounted to 6.10 percent. Interim management report Macroeconomic development The global economy is slowly cooling off As generally expected, global economic growth slowed down in the first quarter of 2012. The uncertainty arising from the euro debt crisis led to consumers and businesses being considerably restrained with regard to consumption and investment. Following a drop for the second consecutive period in the first quarter of 2012, the ifo business climate index registered a slight upward movement to 82.4 points, compared to 78.7 points in the fourth quarter of 2011. However, it still remains con- siderably below its long-term average. The economic climate in emerging countries suggests an economic cooling off. Eurozone The economic situation in the eurozone was once again blurred by sustained concerns due to the European debt crisis. The euro came under more pressure during the first quarter. It fell below the 1.30 US dollar mark for the first time in mid- February and remains there. Industrial output fell by 1.8 percent in February 2012 in comparison with the same period in 2011. The sales volume in the retail sector fell by 0.1 percent in February 2012 compared to the previous year. The unem- ployment rate in the eurozone increased to 10.8 percent in February 2012 (February 2011: 10.0 percent). According to initial estimates, gross domestic product increased by 0.2 percent in the first quarter of 2012 compared to the previous quarter. Germany The German economy lost momentum during the period under review, although it still appears robust. According to the German Institute for Economic Research (DIW), the GDP remained unchanged in the first three months of 2012 compared to the previous quarter. The economic output increased by 3.7 percent during the first quarter of 2011. In contrast, the ifo business climate index grew positively. The situation on the German employment market also improved in March 2012 compared to the same period of the previous year. The unemployment rate fell at the end of the first quarter to 7.2 percent. One year ago, it was 7.6 percent.6
  • 7. Quarterly Report I/2012USAThe US economy stabilised at the start of the year. The GDP registered a growth of 1.7 percent in the first quarter of 2011.The USAs trade balance deficit amounted to around 15.6 billion US dollars at the end of March 2012. However, the situationon the American employment market is strained. The USAs unemployment rate fell at the end of the first quarter of 2012 to8.2 percent, compared with 8.8 percent in March 2011.ChinaThe economy in emerging countries grew at a much slower rate than expected during the first quarter of 2012. According tothe National Bureau of Statistics, Chinas economic output increased by 8.1 percent during the first three months of the cur-rent financial year. The worlds second-largest economy had grown by 8.9 percent in the previous quarter. Surprisingly, indu-strial output increased. The industrial production index registered an increase of 11.9 percent during the first quarter in com-parison with the same period of the previous year. Consumption increased in the first quarter by 15.2 percent comparedwith the same period of the previous year.Sector situationMedicalThe positive trend in German medical engineering is continuing. In 2011, the sector registered a sales increase of 6 percenton 2010 to 21.1 billion euros. Above all, increased orders from abroad contributed to the boom. According to the trade asso-ciation SPECTARIS, the sector grew by around 7 percent internationally. Above all, exports to China and the USA increasedsignificantly in 2011. Domestic demand was less strong, with an increase of 3 percent in 2011 compared to the previousyear. According to experts, the increasing affluence in emerging countries and the growing global population were responsi-ble for the positive sales figures. Demographic change and the leading innovational strength of German medical engineeringmanufacturers should therefore propel sales growth in the future.Electronic ProductsThe debt crisis in Europe and the uncertainty regarding the growth trend in emerging countries had hardly any influence onthe consumer mood in the period under review. According to Gartner, the worldwide demand for computers increased to 89million units in the first quarter of 2012, 1.9 percent higher than the first quarter of 2011. The causes of this were, amongstothers, the high number of orders from emerging countries. Sales of electronic products in the BRIC countries increased bya total of around 10 percent in 2011. This growth was mainly thanks to the ever-increasing popularity of Smartphones.Compact Notebooks also had a positive effect on producers sales figures. New touchscreen technologies and numeroussoftware applications are attracting more and more consumers.Business performance of the first three months of 2012Overall evaluationThe Balda Group’s business performance remained below expectations in both operating business segments in the firstquarter of 2012 due to delays in orders and extra costs. The Group EBIT amounted to minus 3.1 million euros. The Grouprecorded a considerable profit after tax of 142.1 million euros for the period under review due to on the income from the par-tial sale of the holding to TPK Holding in February 2012. The Board of Directors confirms its current expectations of thesales and earnings performance for the whole of the 2012 calendar year. 7
  • 8. Quarterly Report I/2012 Group sales and earnings performance In the first three months of the current financial year the Balda Group recorded sales revenue of 12.2 million euros. This equates to a fall of 1.3 million euros or around 9.4 percent compared to the first quarter of 2011. This drop is due to delays in order call-offs and start up difficulties with new projects in the Electronic Products segment. Delays in order call-offs of a large client had a dampening effect on the sales performance in the medical segment as well. Operating costs were affected in the first three months by Group sales January to March the rise of 0.7 million euros in personnel expenses to 5.1 in mio. euros million euros, due to the temporarily employment of more 2012 12.2 temporary agency workers in the Electronics Products seg- 2011 13.5 ment. Other operating expenses were up from 3.0 million euros to 4.4 million euros. The rise in energy costs and high 0 5 10 15 expenditure on the maintenance of machinery and facilities in Malaysia due to new projects, among others, are respon- sible for this. Because of these influences, the EBIT was at minus 3.1 million euros in the first quarter (same period of the previous year: minus 1.0 million euros). The EBT was at 133.8 million euros during the period under review compared to 6.0 million euros in the same period of the previous year. Earnings from the release of reserves from the market valuation of shares in TPK amounting to 137.6 million euros is responsible for this considerable increase. TPK shares were shown at their market value up until the time of sale. The changes in value were recorded as having no effect on the income statement against equity under the item reserves from market valuation. Therefore the proceeds of sale corresponded to the book value at the time of sale. The earnings in the profit and loss statement only resulted from the release of reserves set up. The earnings from continued business divisions after taxes amounted to 133.6 million euros (first quarter of 2011: 5.9 mil- lion euros). Since the earnings from the discontinued business division was 0 euro (same period of the previous year: minus 1.6 million euros), the earnings of the combined Group totalled 133.6 million euros. (Previous year: 4.4 million euros). Medical segment The Medical segment generated sales of 6.0 million euros in the first quarter of 2012 (first quarter of 2011: 6.8 million euros). This equates to a fall of 0.8 million euros or around 11.8 percent. The fall is attributable to delays in order call-offs of a new customer project. Operations in the segment will rise as planned during the financial year. The segment’s EBIT was minus 0.5 million euros under the previous years level of plus 0.2 million euros after the first three months. The EBT was minus 0.5 million euros (previous year: plus 0.1 million euros). Reasons for this performance are hig- her expenses for the start-up of new products in addition to low sales. Electronic Products segment The Electronic Products segment recorded a fall in sales revenue to 6.2 million euros in the first quarter of 2012 compared to 6.6 million euros in the same period of the previous year (minus 7.1 percent). The fall is due to the postponement of order call-offs from customers and the production start-up of new demanding projects. These projects require costly and complex surface engineering. The above-average rejection rate in the start-up phase resulted in below-target unit quantities so the planned sales revenue could not be achieved.8
  • 9. Quarterly Report I/2012The segment’s EBIT registered a loss of 1.2 million euros (same period of previous year: minus 0.8 million euros). As aresult, costs for additional measures towards quality assurance of new projects, among others, had an impact, as well asadditional costs for the processing of orders, including the creation of reserves. The EBT was in the business division atminus 1.2 million euros (same period of the previous year: minus 0.8 million euros).Central Services segmentProfits generated by the Central Services segment resulted from holding and financing services, as well as allocations char-ged to the operational Group segments. The financial earnings also include currency gains relating to internal financing.The overall performance of the Central Services segment stood at 1.3 million euros at the end of the first quarter comparedto 2.2 million euros in the same period of the previous year.Segment expenses which can not be allocated led to an Segment sales from January to MarchEBIT of minus 1.3 million euros after the first three months in mio. euros = 2012 = 2011of 2012 (same period of the previous year: minus 0.3 mil- Medical 6.0lion euros). 6.8 Electronic 6.2The EBT rose to 135.6 million euros compared to 6.6 mil- Products 6.6lion euros in the first quarter of 2011. The income from the Central 0.1release of reserves following the sale of TPK shares is Services 0.3responsible for this considerable rise. 0 3 6 9Asset positionThe Balda Group recorded as of 31 March 2012 a balance sheet total of 558.5 million euros compared to 490.5 million euros asof 31 December 2011. This amounts to an increase of 68.0 million euros or 13.9 percent. The increase resulted mainly fromprice gains realised in the first quarter from the partial sale of TPK shares and the increased value of existing shares in TPK.On the assets side, the non-current assets due to the remai- Balda Group / Balance Sheetning payment of the loan granted related to the sale of in mio. eurosMobileCom in 2011, recorded an increase as of 31 March 31.3.2012 558.52012 to 52.6 million euros compared to 50.3 million eurosas of 31 December 2011. 31.12.2011 490.5The current assets as of 31 March 2012 increased to 505.9 0 200 400 600million euros following 440.2 million euros at the end of2011. This increase is attributable to the rise in value of the TPK shareholding in the first quarter of 2012. The Group earnedaround 238 million euros in liquid assets from the sale of 20.0 million shares. At the same time, share participation fell by202.3 million euros. However the valuation of the remaining TPK shares resulted in an increase in value of 36.0 millioneuros compared to the 31 December 2011.The inventories rose as of March 31 2012 to 13.8 million euros (end of 2011: 9.6 million euros). The rise is attributable todelayed order call-offs. They should be resolved in the second quarter of 2012.Customer payments of invoices at the end of 2011 decreased trade accounts receivable as of the end of the first quarter to7.4 million euros (end of 2011: 10.7 million euros).The non-current assets held for sale totalled 216.1 million euros as of the 31 March 2012 compared to 382.3 million eurosas of 31 December 2011. Following the heavy fall in the TPK share price in 2011 (31 December 2011: 394.5 Taiwanese dol-lars) the share rose as of 31 March 2012 to 477.5 Taiwanese dollars. The valuation resulted in increase in value, includingcurrency differences, of 71.6 million euros compared to 31 December 2011. The Group earned around 238 million euros inliquid assets through the sale of 20.0 million shares. 9
  • 10. Quarterly Report I/2012 The Balda Group recorded as of the end of the period under review a rise in equity to 530.1 million euros from 463.0 million euros as of 31 December 2011. After the partial sale of TPK shares, reserves from the adjustment item for the market valua- tion of TPK shares had to be released (minus 138.3 million euros). The high market valuation of TPK shares as of the balan- ce sheet date had an opposite effect in this position (plus 71.6million euros). In addition, however, the positive quarterly ear- nings resulted in the increase in equity. The equity ratio at the end of March was 94.9 percent follo- Balda Group / Equity ratio wing 94.4 percent as of the end of the previous financial in mio. euros year. 31.3.2012 530.1 Trade accounts payables increased by 1.3 million euros to 8.8 million euros mainly due to the creation of inventories 31.12.2011 463.0 (reference date 2011: 7.5 million euros). 0 150 300 450 600 The Group did not record any significant bank liabilities as of the end of the first quarter. Financial position Investments Up to 31 March 2012 the Balda Group invested in the current financial year a total of around 0.8 million euros in tangible and intangible assets in its continued operations (same period of the previous year: 0.5 million euros). These are primarily replacement investments. The Balda Group invested around 0.3 million euros on fixed assets and machinery in the Electronic Products segment in the first three months of 2012. In the period under review, investments in the Medical seg- ment totalled 0.1 million euros and 0.1 million euros in the Central Services segment. Cash flow The values of the first quarter of 2012 are only partially comparable to the previous year’s key figures shown here. The 2011 key figures include the values of the sold MobileCom segment of the end of 2011. The Balda Group’s cash or cash equivalents totalled 266.3 million euros as of the end of the first quarter of 2012 (same period for the previous year: 48.3 million euros). Cash flow from investment activities with cash inflow from the partial sale of TPK sha- res excluding transaction costs totalling 237.1 million euros was responsible for the significant rise in liquid assets. Cash flow from current business activities recorded cash outflows of 1.6 million euros (same period of the previous year: inflow of 9.1 million euros), cash flow from financing activities of 0.2 million euros (same period of the previous year: outflow of 5.7 million euros). The Balda Group is able to realise its planned projects with existing liquidity from its own means.10
  • 11. Quarterly Report I/2012Significant events in the first quarterNew Board of DirectorsWith effect from 1 January 2012, Dominik Müser and James Lim were appointed as members of the Board of Directors.Dominik Müser was appointed as the CEO of the company. He is responsible for the company’s strategies and performs thefunctions of Chief Financial Officer (CFO). He is also responsible for financial, legal and administrative affairs. James Lim isresponsible for development, production and sales as the Chief Operating Officer (COO) and concentrates chiefly on theElectronic Products segment in Malaysia.Annual General MeetingThe Balda AG share holders confirmed the members of the Supervisory Board in their office at the extraordinary generalmeeting on 8 February 2012. The proposal of the shareholder Octavian Special Master Fund, L.P. for members to be dismis-sed was rejected with a clear majority of 76.9 percent of share capital present. The committee remains unchanged and com-prises the Berlin lawyer Dr. Michael Naschke, Yu Sheng Kai, a Managing Director from Taipeh and Chun-Chen Chen, aChairman of the Board of Directors from Taipeh. For more details please refer to the Group’s Annual Report for the 2011financial year.Changes in the shareholder structureDuring the course of the first quarter of 2012 there were changes in the shareholder structure of Balda AG. For further infor-mation please refer to the chapter on the Balda share.Sale of TPK sharesBalda Investments Singapore Pte. Ltd. a company belonging to the Balda AG Group, sold a total of 20.0 million shares inTPK Holding Co., Ltd. on 29 February 2012 and gained revenues of around 238.0 million euros from this (on the basis ofthe Euro/Taiwanese dollar exchange rate on the day transactions were closed). The transaction was carried out within theframework of a block trade according to the rules of the Taiwanese stock exchange. Balda Investments Singapore Pte. Ltd.still holds around 17.8 million shares in TPK after the transaction. The holding in the Chinese producer of touchscreens isreduced from 16.1 percent to 7.6 percent through the partial sale. The Board of Directors intends to sell the remaining sha-res at optimal market value.Voluntary special auditThe Board of Directors, in office since 1 January 2012, in consultation with the Supervisory Board, commissioned the lawfirm Hengeler Mueller to carry out a voluntary special audit after the extraordinary general meeting. The object is to determi-ne whether the bodies of Balda AG can be accused of misconduct in connection with efforts to sell shares from the holdingto TPK Holding in 2011 and whether the company and shareholders suffered a loss. The Board of Directors will report thefindings of the audit at the ordinary general meeting on 11 May 2012.Dividend proposal for the 2011 financial yearBalda AG announced on 29 March 2012 that the Board of Directors and Supervisory Board will propose a dividend of 1.30euros per share for the 2011 financial year at the ordinary general meeting on 11 May 2012. This would result in a total pay-ment of 76.5 million euros. This means that almost the entire amount currently distributed by Balda AG would be utilised.The dividend proposal is in line with the goal of allowing shareholders to quickly share in the proceeds of the sale of sharesin TPK Holding Co., Ltd.Change in financial year plannedAt the ordinary general meeting on 11 May 2012, the Board of Directors and the Supervisory Board will propose to have ashort financial year for the period of 1 January 2012 to 30 June 2012. The company’s financial year should subsequentlyalways end on 30 June. The change could bring shareholders further proceeds from the resulting partial sale of shares inTPK in the current calendar year. 11
  • 12. Quarterly Report I/2012 Financial structure, Board of Directors and change of control In accordance with the regulations of paragraph 289 (4) and paragraph 315 (4) of the German Commercial Code (HGB), Balda AG is obliged to provide the following additional information: Composition of subscribed capital As of 31 March 2012 the companys share capital amounted to 58,890,636 euros and was dispersed in 58,890,636 indivi- dual share certificates with a proportional value of the share capital of 1.00 euro per share. Each individual share is granted a vote at the companys annual general meeting. Voting right restrictions or the assignment of shares All of the companys shares are freely assignable in accordance with the statutes. The companys Board of Directors is unaware of restrictions on voting rights or restrictions affecting the assignment of sha- res as of the reporting date. Shareholdings surpassing ten percent of the capital As of 31 March 2012 the following shareholders held direct or indirect shareholdings in the companys share capital that ent- itled them to more than 10 percent of voting rights: Yield Return Investments Ltd., Apia, Samoa: 27.60 percent of the capital and voting rights Yun-Ling Chiang, Richmond, Canada: 27.60 percent of the capital and voting rights indirectly via Yield Return Investments Ltd. Shareholders with privileges There are no shares with privileges that grant control authority. Special controlling of voting rights for employees To the Board of Directors knowledge, employees who hold shares in the company exercise their voting rights directly. Board of Directors authority Authorised capital: The Board of Directors and the Supervisory Board are entitled to the same rights as of 31 December 2012 with regard to the authorised capital. Authorisation for the purchase of own shares and recovery of the shares thus purchased: The annual general meeting in 2011 authorised the Board of Directors of the company, with the approval of the Supervisory Board, to acquire its own shares to the value of up to 10 percent of the share capital up to 26 May 2016 as of the time of the resolution. Significant agreements in case of a change of control There are various agreements at the level of Balda AG and in the Groups companies which are subject to a change of con- trol resulting from a bid for takeover. Since more detailed information concerning these agreements may put Balda AG at a considerable disadvantage, they are not commented on in detail. Compensation agreements in case of a bid for takeover There are no compensation agreements with members of the Board of Directors or employees in case of a bid for takeover.12
  • 13. Quarterly Report I/2012EmployeesNew appointments in the Electronic Products segment and at Balda MedicalThe number of employees in the group was higher in the first quarter of 2012 than the same period of 2011. As of 31 March2012, there was a total of 1,437 employees (including trainees and temporary personnel), which amounts to 259 employeesor 22.0 percent more than at the end of 2011. The rise is primarily attributable to the increased employment of agency staffin the Electronic Products segment to ensure quality when launching a new, sophisticated project.As of the end of the first quarter of 2012, the Group employs Number of employeesa total of 1,188 people in the production plants in Malaysia 31.3.2012 1,437(31 December 2011: 942 employees).The number of employees in the Medical segment also 31.12.2011 1,178increased during the period under review from 220 to 233 0 500 1,000 1,500employees. The number of employees in the CentralServices segment remained unchanged at 16 people compa- Personnel expenses ratiored to the end of 2011. 31.3.2012 32.9 %The personnel expenses ratio, measured against the Group’stotal output, was 32.9 percent as of 31 March 2012 (31 31.3.2011 28.3 %March 2011: 28.3 percent). 0 15 30 45Events after the reference dateNo events relevant to the business performance and to the earnings, asset and financial position occurred after the reference dateof 31 March 2012.ForecastMacroeconomic developmentThe assessment of the development of the world economy and sectors of Balda have not significantly changed compared tothe Annual Report 2011.Furthermore, the economic development for 2012 is highly uncertain. Due to consequences of the sovereign debt crisis, therisk of further weakening of global performance has increased, particularly for Western industrialised countries. The WorldBank is expecting global growth of 2.5 percent for the current year compared to 3.8 percent in the previous year. The newlyindustrialising countries remain the drivers of growth for the global economy. For China gross domestic product is expectedto fall by 8.2 percent.The US economy should grow only moderately during the current year. The reason for this, among others, is that the deve-lopment of the property market continues to be uncertain. Comparatively high unemployment also negatively affects the eco-nomy. In addition, rising energy costs create uncertainty for producers and consumers. Experts at the World Bank forecast arise in economic output from 1.4 percent in 2011 to 1.7 percent for the USA. 13
  • 14. Quarterly Report I/2012 The Euro debt crisis, which has now come firmly to the foreground, should continue to have a negative impact on the spen- ding behaviour of private and public households in 2012. The IMF is expecting a decline in GDP of around 0.3 percent in the eurozone in 2012 following 1.5 percent in the previous year. Leading economic institutes expect GDP growth of around 1.0 percent in Germany in 2012 following 3.0 percent in the pre- vious year. According to leading economic research institutes, unemployment will continue to fall and have a positive impact on consumers. Sector situation Medical Technology The demand for German medical technology will remain stable in 2011 according to current estimates. The trade association SPECTARIS is expecting a double-digit percentage growth in sales in 2012. The stable demand for German medical technolo- gy in Europe and the growing wealth in emerging countries are significant drivers of the forecasted growth. The long term conditions for the global medical technology industry are positive. Experts expect that the global health market will double from currently 220 billion euros to around 450 billion euros by 2020. Electronic Products Forecasts for the development of the electronic goods market are optimistic despite the uncertain economic situation. Industry specialist Gartner forecasts that globally sold tablets will almost double to 119 million devices in 2012 compared to 2011. Experts predict that the global PC market will grow by around 4.4 percent in the year. Portable computers and smartphones will continue to be favourites among consumers and drive global demand. However, the increasingly rapid introduction of new products increases price pressure on the market for electronic products. Experts predict that the increasing competition will have a negative impact on producers’ profitability. Future corporate situation The Board of Directors has been developing since the beginning of the year a detailed strategy to put the Group’s operational business on a profitable course as quickly as possible. The aim is to lead the Balda Group in a phase of profitable growth, to sustain its ability to pay dividends from operational business and to make the company therefore more attractive on the capi- tal market. The realignment includes a fundamental, strategic advancement of the Medical segment, which should increase internationa- lisation, expand the range of services and customer base and add more value. The potential acquisition targets are identified abroad, whereby the US market has the first priority. The aim is for the segment to reach sales of over 100 million euros in the middle term through targeted and moderate acquisitions. No further delays in order call-offs are expected in the current financial year.  In parallel, the restructuring and realignment of the Electronic Products segment will continue. This process is right on track. The first months of the year were characterised by the processing of orders with insufficient profit contributions. Restructuring primarily includes the identification of attractive niche markets in which Electronic Products employs its techno- logical know-how and adequate margins can be reached. In the Central Services segment in the current year, the focus is on adjusting the structures to the significantly reduced size of the Balda Group following the sale of the MobileCom segment and realising corresponding cost savings.14
  • 15. Quarterly Report I/2012The Board of Directors continues to expect to be able to sell the remaining shares in TPK Holding in the current calendaryear. Obtaining an attractive price, however, takes precedence over a quick sale. The shareholders of Balda AG should sharein the proceeds from the partial sale and planned sales to the maximum extent possible in the form of special dividends.For the current financial year to 31 December 2012, the Board of Directors of Balda AG expects sales to be at the level ofthe previous year in both currently operating segments and another negative operating profit in single-digit millions. However,the Groups EBT and annual net profit will be distinctly positive as a result of the earnings from the sale of the shares inTPK.Risks and opportunities reportThe Balda Group identifies and assesses its risks and opportunities on a continuous basis. The Group management report provi-ded in the Annual Report for the 2011 financial year describes the future opportunities and risks in detail. In the first quarter ofthe current financial year the Groups opportunities and risk situation has changed due to changes in the following factors.Financial risksNegative development in the global financial market could lead to risks for the Balda Group. These could have a negative effecton the sales situation for the Balda Group’s products and customers as well as TPK share prices.The sovereign debt crisis and the banking crisis, especially in Europe, were not definitively resolved when Greece’s debt was cut.Despite the European Central Bank’s additional liquidity for banks amounting to around one billion euros at 1 percent interestfor a duration of 3 years, interest for Spanish government bonds rose considerably as of the end of the first quarter of 2012.Bond conditions for Italy and Portugal also deteriorated. Banks in the eurozone continue to withhold interbank loans. Many cre-dit institutes, particularly in the south of the eurozone, are considered to be at risk. There continues to be a lack of trust amongbanks. Other factors burdening the financial market are austerity measures with low government spending and often sluggisheconomic development in many countries in the eurozone, but also in China and the USA. They increase the banks’ credit risks,reduce tax revenues and weaken the debt capacity of affected countries. The property market also carries risks. The financialcrisis may break out again at any time with far-reaching consequences on the real economy according to experts.Customer risksThe business performance of the Balda Group depends on the market success and volume of order call-offs of customers.Delays in order call-offs from customers which cannot be attributed to or influenced by the Balda Group may have a directimpact on the sales and result situation in the medium term. They represent a risk.If further losses of production occur in addition to delays in order call-offs which occurred in the first quarter of 2012, Baldas2012 earnings targets are endangered.Electronic Products segment riskThe Group’s Electronic Products segment is undergoing restructuring and realignment. If the segment, based in Malaysia, doesnot reach the threshold of a positive EBT by the end of the 2012 calendar year after continuous restructuring measures, theBoard of Directors will have to find alternative options for the divestment of the segment. In this event, a burden on the earningsand asset position of the Balda Group is not to be ruled out.TPK share riskBy reducing the shareholding of TPK Holding from 16.1 percent to 7.6 percent, the related currency and price risk decreased.Nevertheless, the shareholdings as an important asset of the Group still represent a value risk. The future price of TPK sharespending sale does not only depend on TPK’s fundamental data. In fact, data and sizes from technology, from the relevant sales 15
  • 16. Quarterly Report I/2012 markets, from the financial market (see Financial market risk) and from the stock market environment have an influence on the quotation. Balda itself does not have any considerable influence on the prices of TPK shares. Overall risk Based on the present level of information, there are no further risks for business development of the Group beyond the risks outlined in the risk report of the Annual Report 2011 and the risks described above. The Board of Directors currently has no new information or knowledge which points to the worsening or increase of a mentioned risk. Opportunities With its current level of liquid assets as of the end of the first quarter of 2012 and the remaining TPK shareholding of 7.6 per- cent, the Balda Group has sufficient financial resources to achieve its strategic targets. Balda is particularly in the position to realise the planned investments and targeted acquisition in the Medical segment, by its own means. Selected explanatory notes General explanations The headquarters of Balda Aktiengesellschaft is located in Bad Oeynhausen, Germany. The interim report as of 31 March 2012 was prepared in compliance with the International Financial Reporting Standards (IFRS), as they are to be applied within the European Union (EU). The accounting methods applied are in accordance with the EU regulations for the accounting of consolidated financial statements. All values stated are in euros (KEUR), unless noted otherwise. The financial statements of the companies included in the consolidated financial statements are based on uniform accoun- ting and valuation principles that comply with the IFRS. Scope of consolidation The consolidated financial statements of the first three months of 2012 included, alongside Balda AG, five domestic and seven foreign subsidiaries within the scope of full consolidation. Information about the accounting and valuation methods The interim consolidated financial statements as of 31 March 2012 were prepared for the interim reporting taking into account the International Financial Reporting Standards (IFRS), as they are to be applied within the EU. In accordance with the regulations of IAS 34, a condensed report compared to the consolidated financial statements as of 31 December 2011 was selected. The interim consolidated financial statements were prepared applying the same accounting, valuation and con- solidation methods as in the consolidated financial statements for the 2011 financial year and comply with the IAS 34 regula- tions (interim reporting). The principles and methods of the estimates for the interim report have not changed compared to the previous periods (IAS 34,16 (d)). A detailed account of the accounting, consolidation and valuation methods is given in the notes of the annual financial statements as of 31 December 2011. The exercising of options included in the IFRS is also addressed here.16
  • 17. Quarterly Report I/2012The exchange rates taken as basis for the currency translation related to 1.00 euro developed as follows: Average spot-exchange rate on reference date Average exchange rates 31 March 31 December 1st quarterCurrencies ISO Code 2012 2011 2012 2011US-Dollar USD 1.3339 1.2948 1.3103 1.3909Chinese Renminbi CNY - 8.2237 - 8.9759Malaysian Ringgit MYR 4.0833 4.1068 4.0066 4.2465Segment reportingThe segment reporting (see table in the appendix) is prepared in accordance with the same principles as in the 2011 annualfinancial statements.The Electronic Products, Medical and Central Services segments require reporting. In the Medical segment the Group manufac-tures complex plastic products for the medical sector. The Electronic Products segment has been focusing on the developmentand production of electronic products since the realignment. The Central Services segment provides financing and supplies stra-tegic guidelines and support as part of the usual holding functions.The values of the sold MobileCom segment are no longer part of segment reporting in the current interim report.The total output comprises other operating income and changes in inventories of finished and unfinished goods, in addition tosales revenue. The development of sales and the earnings situation of the individual Group segments are presented in detail in"Business development" (see page 7).Cash flow statementThe figures for the period under review are only partially comparable to the previous year’s comparison figures. The 2011comparison figures include the figures of the MobileCom segment sold at the end of 2011.From ongoing operations, the Balda Group recorded an outflow of funds of 1.6 million euros. In the first quarter of 2011, theGroup posted an inflow of funds including MobileCom of 9.1 million euros. In addition to the revenues missing from the peri-od under review, working capital in particular could not be established to the same extent as in the comparison period.The cash flow from investment activities was extremely positive in the amount of 233.1 million euros. Payments for tangibleassets amounted to 0.8. million euros. Payment of the remainder of the loan granted to the buyer for the sale of MobileComin 2011 resulted in an outflow of funds in the amount of 3.2 million euros. The new inflow of funds from the partial sale ofshares in TPK was 237.1 million euros.The cash flow from financing activities amounted to -0.2 million euros following a further -5.7 million euros in the first quar-ter of 2011. The high repayments in the previous year concerned the loan for the MobileCom segment sold.As at 31 March 2012 the Balda Group’s inventory of liquid funds stood at 266.3 million euros. This is a significant increasecompared with 48.3 million euros at the reporting date 31 March 2011. The noticeable improvement in liquid funds was attri-butable to revenues from the partial sale of shares in TPK.In view of its continued comfortable level of cash and cash equivalents, Balda is able to finance the operational business in2012 and planned acquisitions from its own resources. 17
  • 18. Quarterly Report I/2012 Balance sheet structure The Balda Group recorded as of 31 March 2012 a balance sheet total of 558.5 million euros following 490.5 million euros as of 31 December 2011. This is a rise of 68.0 million euros or 13.9 percent. The increase resulted primarily from realised price gains in the first quarter from the sale of TPK shares and the increase in value of existing shares. The non-current assets rose as of 31 March 2012 to 52.6 million euros due to the remaining payment of the loan granted as part of the sale of MobileCom in 2011, following 50.3 million euros as of 31 December 2011. The stocks in the current assets rose to 13.8 million euros as of 31 March 2012 (reference date 2011: 9.6 million Euros). The increase is attributable to the delayed order call-offs. Liquid assets recorded a considerable increase of 230.4 million euros to 266.3 million euros as of the end of the period under review from the sale of TPK shares in the first quarter. The item of non-current assets held for sale performed in the first quarter of 2012 as follows: in KEUR As of 31 December 2011 382,344 Change in fair value on the basis of the share price development 76,322 Currency differences -4,678 Disposal of sale of TPK shares -237,932 As of 31 March 2012 216,056 Current assets increased overall to 505.9 million euros as of 31 March 2012 compared to 440.2 million euros as of the end of 2011. The Balda Group recorded a rise in equity to 530.1 million euros as of the end of the period under review after 463.0 million euros as of the reference day in 2011. After the partial sale of TPK shares, reserves from the adjustment item for the market valuation of TPK shares had to be released (minus 138.3 million euros). By contrast, exchange rate differences had less of an effect on the market valuation of TPK shares as on the balance sheet date (71.6 million euros). In addition, the positive quarterly results led in particular to an increase in equity. Income statement The Balda Group generated sales of 12.2 million euros in the first quarter of 2012 compared to 13.5 million euros in the same period of the previous year. This equates to a fall of 1.3 million euros or 9.4 percent. The business performance including the earnings position of the individual segments is presented in the interim report on page 7 ff. The Balda Group’s total output amounted to 15.4 million euros in the first quarter after 15.6 million euros in the same peri- od of the previous year. In particular the increase in personnel requirements in the Electronic Products segment led to a rise in personnel expenses of 5.1 million euros (same period of the previous year: 4.4 million Euros). The EBT of 133.8 million euros in the period under review was considerably higher than the previous years figure of 6.0 mil- lion euros. A major reason for this is the income from the release of reserves following the sale of TPK shares.18
  • 19. Quarterly Report I/2012The Group’s earnings in the first quarter totalled 133.6 million euros. The comparable value in the same period of the pre-vious year was 4.4 million euros taking into account the earnings of the discontinued business area MobileCom (minus 1.6million euros).Based on 58,891 million shares, a profit of 268 euros per share was generated from the net income of continued businessdivisions. In the previous year the profit per share was 0.074 euros based on 54,157 million shares.Related partiesAlongside the companies included in the consolidated financial statements, there are companies and persons, as well aspersons in key positions of management that are related to the Balda Group according to IAS 24. In the period under reviewthere were no business relations with these persons or companies excepting the remuneration payments to the Board ofDirectors and the Supervisory Board.Other financial obligationsOther financial obligations, consisting mainly of letting and leasing obligations as well as purchase commitments for materialinvestments, amounted to 0.4 million euros as of 31 March of the current financial year.Events after the reference dateInformation on significant events after the reference date is presented in this report in "Events after the reference date" onpage 13.Details on the preparation of the interim reportThe consolidated balance sheet, the statements of comprehensive income, cash flow statements, the segment reports, thestatements of changes in equity, the interim management report and the condensed notes prepared as of 31 March 2012have not been audited or subjected to an auditing review. They were prepared for this interim report.Statements relating to the future contain fundamental uncertainties. This interim report contains statements which also rela-te to the future development of Balda AG. These statements are based on both assumptions and estimates. Although theBoard of Directors is convinced that these forward-looking statements are realistic, they cannot be guaranteed. The assump-tions contain risks and uncertainties which may result in the actual events deviating from the expected events.Responsibility statementTo be best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, theinterim consolidated financial statements give a true and fair view of the asset, financial and result situation of the Group,and the interim management report of the Group includes a fair review of the development and performance of the businessand the position of the Group, together with a description of the significant opportunities and risks associated with the expec-ted development of the Group for the remaining months of the financial year.Bad Oeynhausen, 02 May 2012The Board of DirectorsDominik Müser James Lim 19
  • 20. Quarterly Financial Statements I/2012 20
  • 21. Balance Sheet Group – Assets Balda Group – Balance Sheet as of 31 March 2012 – Assets in KEUR 31 March 2012 31 December 2011 A. Long-term assets I. Tangible assets 25,380 25,594 1. Land and buildings 15,509 15,704 2. Machinery and equipment 7,443 7,558 3. Fixtures, furniture and office equipment 1,700 1,851 4. Advance payments and construction in progress 728 481 II. Goodwill 6,917 6,877 III. Intangible assets 368 358 IV. Financial assets 13,893 11,417 1. Investments 1 1 2. Loans 13,892 11,416 V. Deferred taxes 6,063 6,086 Long-term assets 52,621 50,332 B. Current assets I. Inventories 13,783 9,603 1. Raw materials and supplies 4,568 3,964 2. Work in progress and finished goods and merchandise 6,145 2,452 3. Advance payments 3,070 3,187 II. Trade accounts receivable 7,365 10,696 III. Other current assets 2,054 1,313 IV. Tax refund 306 312 V. Cash and cash equivalents 266,339 35,895 VI. Long-term assets held for sale 216,056 382,344 Current assets 505,903 440,163 Total assets 558,524 490,49521
  • 22. Balance Sheet Group – Total Liabilities and Shareholders’ EquityBalda Group – Balance Sheet as of 31 March 2012 – Total Liabilities and Shareholders’ Equityin KEUR 31 March 2012 31 December 2011A. Shareholders’ equity I. Subscribed share capital 58,891 58,891 II. Reserves 191,873 258,385 III. Net profit 279,313 145,748 1. Earnings 133,565 -39,137 2. Retained earnings 145,748 184,885 Total shareholders’ equity 530,077 463,024B. Long-term liabilities I. Long-term debt 0 0 1. Bank loans 0 0 II. Long-term finance lease obligations 202 227 III. Deferred taxes 4,862 4,809 IV. Long-term provisions/pension accruals 98 97 Long-term liabilities 5,162 5,133C. Current liabilities I. Trade accounts payable 8,794 7,499 II. Other current liabilities 3,935 3,674 III. Advance payments received 6,682 6,782 IV. Short-term debts and current portion of long-term debts 286 439 V. Current portion of finance lease obligation 12 11 VI. Tax liabilities 1,159 1,143 VII. Short-term provisions 2,417 2,790 Current liabilities 23,285 22,338Total liabilities and shareholders’ equity 558,524 490,495 22
  • 23. Income Statement / Group-Total-Income-Statement Balda Group – Income Statement – 1 January to 31 March 2012 in KEUR 1 Quarter 1 Quarter 2012 2011 Revenues 12,194 13,452 Other operating income 847 1,652 Changes in inventories of finished goods and work in progress 2,386 453 Total income 15,427 15,557 Material expenses 8,140 8,207 Material costs rate in % (1) 55.8% 59.0% Personnel expenses 5,079 4,400 Ratio of personnel costs in % 32.9% 28.3% a. Wages and salaries including social expenditure 4,090 4,400 b. Expenditure for temporary workers 989 0 Depreciations 930 981 Other operating expenses 4,366 2,951 Operating income -3,088 -982 Financial result -260 129 Other financial costs -374 6,846 Reversal of reserves for market valuation 137,556 0 Earnings before income taxes 133,834 5,993 Taxes on income and on earnings -269 -65 Net income – continued operations 133,565 5,928 Earnings discontinued operations 0 -1,562 Group result 133,565 4,366 Annual income total Group added to: Shareholders of Balda AG 133,565 4,366 thereof from continued operations 133,565 5,928 thereof from discontinued operations 0 -1,562 Shares of other associates 0 0 thereof from continued operations 0 0 thereof from discontinued operations 0 0 Earnings per Share: Average number of tradeable shares – undiluted (per thousand) 58,891 58,891 Earnings per Share – undiluted (EUR) 2.268 0.074 Average number of tradeable shares – diluted (per thousand) 58,891 58,891 Earnings per Share – diluted (EUR) 2.268 0.074 Group-Total-Income-Statement – 1 January to 31 March 2012 in KEUR 2012 2011 1. Annual result total Group 133,565 4,366 2. Other result -66,512 61,908 2.1. Discrepancy contribution from currency conversion 135 -11,029 2.2. Change in fair value of financial assets held for sale 71,645 74,040 2.3. Attributable income taxes 0 -1,103 3. Reclassification to the profit and loss account -138,292 0 4. Total result of the period 67,053 66,274 Total result of the period attributable to: Shareholders of Balda AG 67,053 66,274 Share of other associates 0 0 (1) related to turnover and changes in inventory of finished and unfinished products23
  • 24. Cash flowBalda Group – Cash flow – 1 January to 31 March 2012in KEUR 3-Month Report 3-Month Report 01.01.2012 - 01.01.2011 - 31.03.2012 31.03.2011 Net loss/income before income tax and financing costs – continued operations -3,088 -982+/- Net loss/income before income tax and financing costs – discontinued operations 0 -919+ Income from interest 63 108- Interest payments -24 -53+/- Payments on tax on income and earnings -94 -69+/- Write-offs/write-ups on long-term assets (excluding deferred taxes) 931 1,805+/- Other non-cash affecting expenses and earnings -770 1,771+/- Increase/decrease in tax refund and tax liabilities -77 275+/- Increase/decrease in provisions 3 26+/- Increase/decrease in inventories, trade accounts receivable and other assets not itemised within investment or financing activities -796 3,402+/- Increase/decrease in accounts payable and other liabilities not itemised within investment or financing activities 1,497 3,722= Cash flow from operating activities -1,599 9,086 thereof discontinued operations 0 9,144 Cash flow from investing activities- Payments in intangible and tangible assets affecting payment 1 -793 -1,696+/- Income from dividend payments -3,194 0+ Cash inflow from the sales of shares of the group 237,100 0= Cash flow from investing activities 233,113 -1,696 thereof discontinued operations 0 -714 Cash flow from financing activities- Affecting payment change of liabilities against banks -153 -5,569- Affecting payment change of financial leasing liabilities -65 -131= Cash flow from financing activities -218 -5,700 thereof discontinued operations 0 -4,950+/- Change in cash and cash equivalents affecting payment 231,296 1,690+ Cash and cash equivalents at the beginning of the fiscal year 35,895 48,937+/- Impact of exchange rate differences on cash held in foreign currencies -852 -2,338= Cash and cash equivalents at the end of the reporting period – continued operations 266,339 40,327 Cash and cash equivalents at the end of 1. quarter – discontinued operations 0 7,962 Cash and cash equivalents at the end of the reporting period – Group 266,339 48,289 Total financial resources at the end of the reporting periodls Cash funds 266,339 48,2891) Expenditures relate to some extent to the previous years 24
  • 25. Segment Reporting Balda Group – Segment Reporting as of 31 March 2012 Quarterly result as of 31.03.2012 in KEUR Electronic Products Medical Revenues external 6,172 6,022 Revenues internal 0 0 Revenues total 6,172 6,022 Change from previous year -7.1% -11.8% Total income 1 6,868 8,038 Change from previous year 2.8% 6.0% EBIT -1,241 -489 in % of total income -18.1% -6.1% Interest income 61 0 Interest expenses 11 37 Other finance income 6 0 0 Income from reversal of reserves 0 0 EBT -1,191 -526 in % of total income -17.3% -6.5% Investments 159 542 Segment assets (1)/(2) 34,563 27,947 Number of employees as 31.03. (3) 1,188 233 Quarterly result as of 31.03.2011 in KEUR (updated) Electronic Products Medical Revenues external 6,625 6,827 Revenues internal 18 0 Revenues total 6,643 6,827 Total income 1 6,684 7,583 EBIT -822 161 in % of total income -12.3% 2.1% Interest income 58 19 Interest expenses 22 46 Other finance income 6 0 0 EBT -786 134 in % of total income -11.8% 1.8% Investments 341 48 Segment assets (1)/(2) 36,271 25,503 Number of employees as 31.03. (3) 809 207 (1) Segment assets = long-term plus short-term assets without assets held for sale and without active taxes and tax refund claims. (comparable value 2011 without the sold segment MobileCom). (2) Segment assets for "Central Services" contains with KEUR 216,056 (previous year: KEUR 700,853) shareholding approach on TPK. (3) Number of employees as of 31/03 = only continued operations including temporary workes and trainees. (4) The amounts listed in the reconciliation concern allocations to the discontinued operation MobileCom. (5) The inter-segment-corrections concern turnover achieved between the segments as well as group internal receivables between the segments. (6) Other financial result contains only currency gains.25
  • 26. Segment Reporting Sum operativeCentral Services segments Transition (4) Corrections (5) Group 0 12,194 0 0 12,194 57 57 0 -57 0 57 12,251 0 -57 12,194 -79.1% -10.9% -9.4% 1,286 16,192 0 -765 15,427 -40.5% -1.4% -0.8% -1,358 -3,088 0 0 -2,332 -105.6% -14.3% 445 506 0 -24 482 718 766 0 -24 742 -374 -374 0 0 -374 137,556 137,556 0 0 137,556 135,551 133,834 0 0 142,356 875.7% 87 788 0 0 788 513,438 575,948 0 -23,793 552,155 16 1,437 0 0 1,437 Sum operativeCentral Services segments Transition (4) Corrections (5) Group 0 13,452 0 0 13,452 273 291 -175 -116 0 273 13,743 0 -116 13,452 2,160 16,427 -175 -695 15,557 -321 -982 0 0 -982 -14.9% -6.3% 143 220 0 -64 156 23 91 0 -64 27 6,846 6,846 0 0 6,846 6,645 5,993 -175 0 5,993 307.6% 38.5% 93 482 0 0 482 742,508 804,282 -4,995 -3,860 795,427 24 1,040 0 0 1,040 26
  • 27. Changes to Shareholders’ Equity Balda Group – Changes to Shareholders’ Equity for the quarterly report as of 31 March 2012 Subscribed Capital Revenue Revaluation in KEUR share capital reserves reserves reserve Balance on 01.01.2011 58,891 34,555 1,881 0 Group result Other result Total result 0 - 0 0 Balance on 31.03.2011 58,891 34,555 1,881 0 Balance on 01.01.2012 58,891 34,555 1,881 0 Group result - - - - Other result - - - - Total result 0 0 0 0 Release of reserves - - - - Balance on 31.03.2012 58,891 34,555 1,881 027
  • 28. Changes to Shareholders’ EquityDeferred item of the market value of Total share- AfS instruments Currency reserves Retained earnings holders equity´ 434,206 35,302 184,885 749,720 4,366 4,366 72,937 -11,029 61,908 72,937 -11,029 4,366 66,274 507,143 24,273 189,251 815,994 194,033 27,916 145,748 463,024 - - 133,565 133,565 71,645 135 - 71,780 71,645 135 133,565 205,345 -138,292 0 - -138,292 127,386 28,051 279,313 530,077 28
  • 29. Shareholding of the Bodies Shareholding of the Bodies as of 31 March 2012 31.03.12 31.12.11 Change Share Capital 58,890,636 58,890,636 0 R. Mohr 1 - 0 - D. Müser 0 0 0 J. Lim 0 0 0 Management Board Total 0 0 0 A. Chen 0 0 0 K. Kai 0 0 0 Dr. M. Naschke 21,000 21,000 0 Supervisory Board Total 21,000 21,000 0 Executive Body Total 21,000 21,000 0 in % of share capital 0.04 0.04 1) Departed on 1 January 201229
  • 30. ContactInvestor Relations ContactFrank Elsner Kommunikation für Unternehmen GmbHFrank Elsner / Frank PaschenKlrchstr, 15a49492 WesterkappelnTelefon: +49 (0)54 04 – 91 92 0Fax: +49 (0)54 04 – 91 92 29Mail: office@elsner-kommunikation.dePhotographyBalda AGThe Quarterly Report is available in German and English and can be downloaded on the Internet at www.balda.de. 30
  • 31. Balda Aktiengesellschaft • Bergkirchener Str. 228 • D-32549 Bad OeynhausenTelefon +49 (0)5734 922-0 • Fax +49 (0)5734 922-2604 • www.balda.de • E-Mail info@balda.de