Vorstandsbericht / Balda AG / Hauptversammlung 2011

1. Rainer Mohr (Sole Director)
Speech for the12th ordinary
General Meeting
Bielefeld
27 May 2011
Copyright Balda AG
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2. Report of the Board of Directors
Rainer Mohr
Sole Director of Balda AG
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3. Overview | Agenda
1.
Important Figures 2010 at a glance
2.
Important events 2010
3.
Overall economic development and industry situation
4.
Earnings-, Assets- and Financial-situation of Balda-Group
5.
Business development in the first quarter 2011
6.
Forecast/Outlook 2011
7.
Sale of TPK-shareholding and Acquisition
8.
Balda-share 2010 up to 26 May 2011
9.
Balda-Group in the future
10.
Commentary on selected items on the agenda of the ordinary general meeting
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4. You will find further figures and information
in the interactive Annual Report of Balda
AG 2010 under:
www.balda.de
www.balda-interaktiv.de
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5. 1. Important figures 2010
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6. Figures 2010 (1)
 Revenues increased by 7.3 million euros or
5.4 percent
 Sales volume slightly above last year
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7. Figures 2010 (2)
 EBIT after special items minus 37.4 million euros
EBIT before special items minus 8.7 million euros
(previous year: plus 4.5 million euros)
 EBT reaches positive 93.3 million euros
(previous year: 47.3 million euros)
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8. Figures 2010 (3)
 Result of the Group significantly increased to 94.4
million euros (previous: 48.9 million euros)
 Cash and cash equivalents at the reference date at
48.9 million euros (previous year: 44.2 million euros)
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9. Figures 2010 (4)
 Investment of the Group at 10.8 million euros
(previous year: 9.3 million euros)
 Employees of the Group at 31.12.2010 reduced to 2,445 employees
(previous year: 3,713 employees)
 Earnings per share at 1.61 euros after 0.90 euros in the previous year,
based on dividend-bearing shares on 31.12.2010: 58,890,636 shares
(2009: 54,156,672 shares)
 Group equity significantly increased to 749.7 million euros
(previous year: 159.2 million euros)
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10. Rating of the figures
 Operative result (EBIT) slides into minus
• Higher-quality materials
• Increasing pressure on prices at existing projects
• High start up costs for projects for new customers
 One time net-result of around 125 million euros and a positive pre-
tax profit (EBT) due to revaluation of Balda shares of the Taiwanese
Touchscreen-manufacturer TPK
 Cash and cash equivalents in the amount of 48.9 million euros due to
consistent and careful finance management
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11. 2. Important events 2010
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12. Important events 2010 (1)
 Balda-share in the SDax again
 Claim for damages due to incorrect advice for Balda satisfactorily resolved
 Significantly better utilization of Bad Oeynhausen site by, amongst others,
letting out
 Shares in the Indian company Balda Motherson Solution sold
 Concentration of production in the MobileCom Segment in Beijing
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13. Important events 2010 (2)
 Dr. Michael Naschke – new Chairman of the Supervisory Board
 Successful IPO of TPK
 Conversion of participation rights in the amount of 34.2 million euros,
issued in November 2007. Future interest and repayment obligations
reduced significantly
 Positive development of three of the four Group-segments with exception
of MobileCom
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14. 3. Overall economic
development /
industry situation 2010
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15. Overall economic development
 Recovery of the global economy in 2010 is continuing. Global gross
domestic product (GDP) grows by around 5 percent
 Economic performance of developing countries increases by around 7 to
10 percent
 Gross domestic product in the Eurozone increases by 1.7 percent in 2010
 US economic output in 2010 grows around 2.9 percent
 Growth in economic output in Germany in 2010 reaches record high of 3.9
percent
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16. Industry situation
 Mobile phone market grows about 33 percent to 1.6 billion units (previous
year: 1.2 billion units). Smartphones – mobile phones with mini computer
character – increasingly popular
 Market for electronic products continues to recover. New technologies like
the iPad , HD or 3D-TV-equipment on course of growth
 Medical industry recorded in Germany an increase in sales of around 10
percent. Expectations of the experts are also positive for 2011-2012
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17. 4. Earnings-, Assets- and Financial
situation
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18. 4.1 Earnings situation
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19. Group Revenues
 Revenues of the Group increased slightly in 2010
 Targeted sales growth of 10 to15 percent not achieved
due to losses in the MobileCom Segment
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20. The Segment MobileCom
 Price pressure on suppliers sectors burdens sales
and margins further
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21. The Segment Electronic Products
 Revenue from new products and customers more
than doubled
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22. The Segment Medical
 Substantial intermediate inputs for new projects
 Manufacturing of new products planned in 2011
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23. The Segment Central Services
 The Segment Central Services:
• Comprises Group-internal Holding- and Financial
Services
• Generates no significant revenues
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24. Operative Earnings (EBIT)
Group
 EBIT of the Group without special effects at minus 8.7 million
euros (previous year: plus 4.5 million euros)
 EBIT of the Group after special effects in the amount of
minus 37.4 million euros due to
• advancing realignment in the MobileCom Segment
• capacity adjustments in Malaysia
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25. EBIT of the Segments
 MobileCom (after special effects): minus 23.5 million euros after
plus 7.3 million euros in 2009
 Electronic Products: minus 18.1 million euros
(previous year: minus 3.4 million euros)
 Medical: 1.9 million euros (previous year: 5.2 million euros)
 Central Services: plus 2.3 million euros
(previous year: minus 4.2 million euros)
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26. Revaluation of TPK-shares
 Revaluation of TPK-shares to market values
 With a unique net effect on earnings of around 125 million euros
 Positive effect on pre-tax profit (EBT) of the Group due to the
revaluation of TPK
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27. Pre-tax profit (EBT) and
earnings of the total Group
 EBT Group 2010: 93.3 million euros
(previous year: 47.3 million euros)
 Group result: 94.4 million euros (previous year: 48.9 million euros)
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28. Earnings per share
 Share volume at 31 December 2010:
58,890,636 shares (Reference date 2009: 54,156,672 shares)
 Earnings per share at 31 December 2010: 1.61 euros
(previous year: 0.90 euros)
 Total earnings of the business year 2010 – under consideration of
TPK-share to market values – at 559.7 million euros compared to
58.4 million euros in 2009
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29. Dividends
 No distribution of dividend for the business year 2011
 Distribution of a dividend in 2012 planned
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30. 4.2 Asset situation- Balance
Sheet Structure
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31. Group balance sheet profit
 Significantly increased balance sheet relations in 2010
 Revaluation of TPK shares at market values
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32. Group equity
 Equity of the Group: 749.7 million euros
(previous year: 159.2 million euros)
 Significant increase of equity ratio to 92.5 percent due
to high annual surplus and the revaluation of TPK-shares
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33. Group Net-Gearing
 Interest bearing liabilities clearly reduced
 Net-Gearing improved to minus 3.5 percent (previous
year: plus 1.5 percent)
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34. 4.3 Financial situation
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35. Group Cash Flow
 Cash Flow clearly improved due to sale of shareholdings
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36. Group Investments
 Investments into the new plant in Bejing worth
5.8 million euros
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37. Dividend capacity of the Group
 Distribution of a dividend only possible through the Balda AG
 Profits in fiscal 2011 can be passed on 100 percent to the
shareholders
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38. 5. First Quarter 2011
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39. Important events Q1/2011
 CEO Michael Sienkiewicz resigned / CFO Rainer Mohr appointed to Sole
Member of the Board of Directors
 New Management structure established
 Special Analysis in the MobileCom Segment undertaken
• Current business is stabilized
• Search for strategic partners begun
 Acquisition in Medical Segment in 2011 is on the way
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40. Turnover / Operative Earnings
 Group sales revenues increased slightly in Q1/2011
 Operative earnings (EBIT) to minus 1.9 million euros
improved (previous year: minus 2.3 million euros)
 Segments Medical and Electronic Products are on target,
the MobileCom Segment remains under pressure
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41. 6. Forecast | Outlook
2011
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42. Positive expectations for 2011
 MobileCom Segment: Search for strategic partner implemented/
End of the Cash-charge in the third quarter 2011 expected
 Electronic Products Segment: Balanced earnings targeted by continuous
optimization of the cost situation
 Medical Segment: Double-digit growth planned
 Balda-Group: Planned turnover at last year s level with slightly positive operative
earnings / steady turnover growth of at least 5 percent for 2012 and 2013 planned
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43. 7. TPK-sale and Acquisition
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44. TPK-Sale and Acquisition
 Share price of TPK develops positively / Value of Balda-shareholding
at 31.03.2011 at around 700 million euros
 Intention to sell TPK-shares
 Acquisition in Medical Segment on focus / Funding from own
resources possible
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45. 8. Balda-Share
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46. Balda-share 2010
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47. Balda-share 2010 up to 26 May 2011
 Positive development of Balda-share / The paper increases in 2010 by
around 92 percent
 Average daily turnover on the Frankfurt stock exchange in 2010 at
558,205 shares
 Share price in the first quarter 2011 further increased
 Strongest sales in SDax in the first four months in 2011
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48. 9. Balda-Group in the future
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49. Perspectives for the development of the
Group (1)
 Realignment of the Group
 Concentration on core competence plastic solutions
 Increase synergies between the segments Electronic Products and
Medical
 Stronger engagement in growth markets
 Clear core competences on a high technological level
 In future, products with product life-cycles of several years
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50. Perspectives for the development of the
Group (2)
 Less dependence on customers in less volatile markets targeted
 Reduced pressure on prices by innovations expected
 Highly competitive ability with clear competitive advantage
intended
 Revenue size of around 250 to 350 million euros with a margin of
around 15 percent in the next 2 to 4 years expected
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51. 10. Annual General Meeting
Agenda
TOPs
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52. Agenda-TOPs /
Corporate Actions
 Agenda for today s AGM:
 Points 6 and 7 on the agenda: Consent to future
corporate actions
 Point 11 on the agenda:
Remuneration of the Board of Directors
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53. Thank you for your interest and
your attention
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