Balda_Q3_e_2011

Quarterly Report III/2011

Balda AG: Performance in line with targets |
slightly positive EBIT | MobileCom segment sold

Sales revenue in the first nine months slightly down at 44.4 million euros
(same period of the previous year: 46.5 million euros)

EBIT: 0.1 million euros (same period of the previous year: 1.3 million euros)

EBT: 5.7 million euros (previous year: 13.3 million euros)

Sale of the MobileCom segment as planned underlines realignment

CONTENT
Key Figures of Balda Group 2 Interim Management Report 5
Letter to the Shareholders 3 Selected explanatory notes 16
Notes to the changed structure 4 Tables 22

Key Figures of Balda Group

Key Figures of Balda Group
in mio. euros 1st 9-months 1st 9-months Change
2011 20101 in percent Q3 2011 Q2 20111
Sales 44.4 46.5 -4.5 15.4 15.5
Medical 24.4 20.4 20.2 7.9 9.8
Electronic Products 20.0 26.1 -23.4 7.6 5.8
Central Services 0.7 0.1 600.0 0.0
Overall operating performance 50.4 55.4 -9.0 16.0 19.4
EBIT 0.1 1.3 -92.3 -1.0 2.3
EBIT margin (in %) 0.2 2.4 -6.5 11.9
Earnings before taxes (EBT) 5.7 13.3 -57.1 -4.8 4.6
Earnings of continued
business divisions 6.6 13.6 -51.5 -3.7 4.3
Earnings of discontinued
business divisions -35.0 -6.7 -9.4 -24.1
Combined group's earnings -28.4 6.9 -13.1 -19.8
Earnings per share (in cents) 2
-0.48 0.13
Operating cash flow 2.6 -11.6
Number of employees 3
1,107 1,248

1) Adjusted figures, MobileCom taken out
2) Number of shares on the balance sheet date in millions: 58.891 (previous year: 54.157)
3) Number of employees including agency staff, trainees and temporary personnel – only continued business divisions

Brief profile of Balda
Technologies | Quality | Outstanding products
Our mission is to provide superior engineered products of the highest quality and a fast, flexible service to our customers at
a competitive price. Balda´s success is based on continual investment in R&D and the use of state-of-the-art, cost-efficient
technologies. The company will continue to invest in innovative technologies and in the skills of its employees. Our teams
from different countries and continents continually strive to produce the best possible product quality. We process transac-
tions quickly and easily, and in close cooperation with our customers. In this way we create added value for our employees,
business partners and shareholders.

2

Letter to the shareholders

Letter to the shareholders
Dear shareholders,
Balda has carried out its repeatedly advertised intention (most recently in the ad-hoc announcement of 4 August 2011) to dispose
of its MobileCom segment and has sold it by way of a management buy out (MBO). The segment had already been reported in
the 2011 half-year report under “discontinued operations”. The parties have on October 31 with the approval of the Balda
Supervisory Board closed the contracts of sale.

With this Balda has disposed of its activities in the mobile phone business in China. The buyer is Ample Gain Enterprises Limited
(AGE). The Bad Oeynhausen Group is disposing of its companies in Beijing (BSBJ and BTO Technologies) and Suzhou (BSSU)
including the rights to properties, buildings and machine park. It is expected that the closing will take place in November 2011.
The parties have agreed not to disclose the details of the transaction such as the conditions and the purchase price. The sale
ends Balda’s of late loss-making involvement due to the challenging market conditions in the MobileCom segment in China. The
Group is therefore freeing resources to focus on higher-margin business divisions such as the Medical division. At the same time
Balda opens up a new chapter in its equity story. Investments in existing and potentially new business divisions may be considered.

How has the Balda Group performed? In the first nine months of 2011 your company achieved sales revenue of 44.4 million
euros in its continued business divisions. This is a slight fall of 2.1 million euros or 4.5 percent compared to the previous year. In
the third quarter earnings totalled 15.4 million euros. They were therefore around 3.0 million euros below the same period of the
previous year. The fall in sales revenue was attributable to developments in the Electronic Products segment with losses due to
supply shortages from Japan due to the natural disaster. At the same time project delays had a negative impact on business per-
formance. Delays in billing for tools had a negative impact on sales as at the end of the quarter in the Medical segment. The
customers will be billed in the current quarter.

Earnings have fallen in the first nine months. The Group’s EBIT after nine months was 0.1 million euros following 1.3 million euros
in the previous year. The EBIT in the third quarter was minus 1.0 million euros following plus 0.7 million euros in the previous
year. Despite the comparatively poor earnings after nine months, we are confident that our performance will be positive as plan-
ned in the continued business divisions at the year-end.

What is the current situation regarding the acquisition envisaged by the Board of Directors? The Supervisory Board has not yet taken
a stand on the Board of Directors’ proposal. The Supervisory Board wanted to see the sale of the China segment completed before-
hand. On the other hand it needs to be verified whether the company which had been favoured and examined is still for purchase.
The Board of Directors will place this item back on the agenda of the Supervisory Board after the disposal of the MobileCom seg-
ment.

How will your company close the 2011 financial year? We are expecting the Group’s sales revenue to be at the lower end of the
forecast of around 70 million euros with a slightly positive EBIT for the continued business divisions.

Dear shareholders, I assure you that your Board of Directors still stands by the statements made at the Annual General Meeting
on May 27, 2011 and is doing everything possible to accomplish them at the best.

Rainer Mohr
(Sole Member of the Board of Directors)

3


Notes to the changed structure of the quarterly report
Balda AG has carried out its repeatedly advertised intention (most recently in the ad-hoc announcement of 4 August 2011) to
dispose of the MobileCom segment and has sold it by way of a management buy out (MBO) on 31 October 2011. The seg-
ment had already been reported in the 2011 half-year report as a “discontinued business division”.

In the report for the third quarter of 2011 the Balda Group structures its continued business divisions into just three segments:

Medical
Electronic Products
Central Services

Continued and discontinued business divisions
The following key figures presented for the first nine months of 2011 are individual indications of the values of the continued
business divisions. The data for the first nine months of 2010 presented in this report does not concur, in terms of the compo-
sition of the continued business divisions, with the values provided in the report for the third quarter of 2010.

In the interim report issued on the 30 September 2010 the MobileCom segment is still part of the continued business divi-
sions. This interim report is based for the continued business divisions primarily on the results of the following operating com-
panies:

Balda Medical GmbH & Co. KG
Balda Solutions Malaysia Sdn. Bhd.
Balda Solutions USA Inc.

The comments to the key figures in the following quarterly report are always related only to the continued business divisions.
Where comments are made in relation to the discontinued business divisions, these are expressly highlighted.

This report accordingly shows adjusted comparison figures where necessary.

4


Interim management report

Macroeconomic development
Economic growth in the global economy slows
Economic growth slowed in the third quarter of 2011. Both industrialised and emerging countries are affected. For the seven
largest industrialised countries (G7), the Organisation for Economic Co-operation and Development (OECD) is expecting
growth of around 1.6 percent in the period under review. In particular the poor economic data from the USA and Europe are
deepening concerns about the debt crisis in the industrialised countries. The financial crisis affecting countries and banks is
worsening. The financial market players, informed among other things by the assessments of rating agencies, are increasin-
gly losing confidence in the debt capacity of the European banks and individual countries. This applies in particular for coun-
tries whose austerity programmes and economic data remain well below expectations. This situation resulted in the period
under review in renewed uncertainty in the financial markets.

Eurozone
The uncertainties associated with the European debt crisis also resulted in a slowdown in economic growth in the eurozone
in the period under review. The planned austerity measures are likely to continue to put a brake on growth in the next few
quarters unless new subsidy packages are approved. According to Eurostat, gross domestic product rose by 1.6 percent in
the second quarter of 2011 compared to the same period of the previous year. This was an increase of 0.2 percent on the
first quarter of 2011. Eurostat also estimates that the annual inflation rate was 2.5 percent in EMU states in August 2011.
The unemployment rate in the eurozone was 10.0 percent in August 2011 and therefore unchanged from the previous
month.

Germany
Growth slowed again in Germany in the second quarter of 2011. According to estimates by the Federal Statistical Office
(Destatis), Germany’s GDP rose slightly during the second quarter of 2011 by 0.1 percent compared to 1.5 percent in the
first quarter. The Ifo Business Climate Index is also predicting a gloomy economic climate. Companies' expectations with
regard to their business performance in the coming half year have fallen. During the course of 2011 the index has fallen by
more than 7 points and was 106.4 points in October.

In spite of the signs that the economic recovery has passed its high point and the significant slowdown in economic growth,
surprisingly the situation in Germany’s employment market improved in September 2011. The unemployment rate fell at the
end of the third quarter to 6.6 percent. One year ago it was 7.2 percent.

USA
In the USA the economy has noticeably slumped. GDP was below what had been forecasted in the second quarter with
growth of only 1.3 percent. Weak private consumption and increased public spending had a negative impact. If politicians in
the USA do not manage to find a convincing solution for the debt problems, there is a risk that the economic downturn will
accelerate. The USA’s trade balance deficit was around 134.2 billion US dollars in August 2011, well above the previous
month’s figure of around 90 billion euros. Household incomes fell in August for the first time since the autumn of 2009. The
unemployment rate in the USA remained at 9.1 percent in August 2011. The inflation rate was around 3.8 percent in the
same period.

5


Sector situation
Medical
Germany's medical technology sector showed itself to be independent of economic trends in the first half of 2011. In spite of
volatile markets worldwide, demand for German medical products remains stable. According to the trade association SPEC-
TARIS, German medical technology manufacturers recorded sales revenue of more than ten billion euros in the first six
months of 2011, an increase of around 10 percent compared to 2010.

Above all increased orders from abroad contributed to the boom. According to SPECTARIS, international business rose in the
first half of 2011 by more than 13 percent. In particular exports to China and the USA rose at the start of the year by 35 per-
cent and 18 percent respectively. The increase in domestic demand was comparatively moderate at around 4 percent.

Electronic Products
The global demand for communications and consumer electronics continues to rise despite the worrying financial situation
in particular in Europe and the USA. The reason for the positive trend is the high demand in emerging countries. According
to experts, sales of electronic products in the emerging BRIC countries should increase by more than 10 percent in 2011.
The global high-tech market will grow by around 4 percent in 2011 according to the industry association BITKOM.

According to the experts of BITKOM, German manufacturers of high-tech products can expect an increase in sales in the
third quarter of 2011 compared to the same period of the previous year. The business climate in the domestic electronics
industry improved again in the third quarter of 2011. The BITKOM index rose by eleven points to 63 points.

Market observers attribute the positive development to new technologies and high-performance end devices. Various software
applications are also attracting more and more consumers.

Business development
Group earnings position
The Balda Group started its search in the second quarter of 2011 for a joint venture partner and investor for the companies
in the MobileCom segment. The segment has been reported as a discontinued business division since the second quarter of
2011. The factors for this decision are presented extensively in the 2011 half-year report. The manufacturing segments,
Medical and Electronic Products, remain in the Balda Group’s continued business divisions. Their business performance is
in line with their targets.

Group earnings position in the continued business divisions
In the first nine months of the current financial year the Group achieved sales revenue of around 44.4 million euros in its
continued business divisions. This is a fall of 2.1 million euros or around 4.5 percent compared to the first nine months of
2010. With sales of 15.4 million euros, the Group generated around 3.0 million euros less in the third quarter than in the
same period for 2010.

The Electronic Products segment is responsible for this Group sales January to September
performance. Electronic Products has been affected by in mio. euros

the crisis in Japan and project delays. Delays in billing 2011 44.4
for tools had a negative impact on the Medical segment’s
2010 46.5
sales in the third quarter of 2011.
0 15 30 45

6


The Balda Group reports an EBIT of 0.1 million euros in the first nine months for its continued business divisions (same peri-
od of the previous year: 1.3 million euros). In the third quarter from July to September the Group’s EBIT was minus 1.0 mil-
lion euros (same period of the previous year: plus 0.7 million euros). The Group’s financial earnings in the third quarter of
2011 were 5.6 million euros. In the same period of the previous year this item totalled around 11.9 million euros. The EBT is
at 5.7 million euros in the period under review around 7.6 million euros below the previous year’s figure of 13.3 million
euros.

After offsetting taxes on income and earnings of 0.9 million euros (same period for the previous year: tax revenue of 0.4 mil-
lion euros), the profit achieved in the Balda Group's continued business divisions after nine months in the current financial
year was 6.6 million euros following 13.6 million euros in the same period of the previous year.

Sales and earnings up in the Medical segment
The Medical segment’s sales rose significantly in the first nine months of 2011 to 24.4 million euros following 20.4 million
euros in the same period of the previous year. Business is growing in line with targets in 2011. Delays in billing for tools had
a negative impact on the segment’s sales in the third quarter of 2011. They will be billed in the fourth quarter of 2011. The
segment’s EBT was at 1.7 million euros after the first nine months slightly above the previous year's level of 1.6 million
euros. Earnings before taxes (EBT) totalled 1.6 million euros (previous year: 1.4 million euros). The Medical division is perfor-
ming in line with expectations. The trend is in the right direction.

Electronic Products segment suffering from supply shortages from Japan
Sales revenue in the Electronic Products segment totalled around 20.0 million euros as of 30 September 2011 following
26.1 million euros in the same period of the previous year. This development is partly due to the consequences of the nucle-
ar disaster in Japan. Bottlenecks in the supply of electronics components from Japan to be built into electronic devices resul-
ted in production stops in Malaysia. This had a negative impact on the segment’s order volume. At the same time postpone-
ments of orders resulted in a fall in sales revenue in the period under review.

The segment’s EBIT was minus 1.5 million euros (previous year: minus 2.6 million euros). In the second and third quarter
the segment achieved a break-even result. Electronic Products’ EBT in the period under review was minus 1.4 million euros
(previous year: minus 2.5 million euros). The trend of business development in the segment is positive.

Central Services segment
The earnings generated by the Central Services segment relate to holding and financing and leasing services with the proper-
ty in Bad Oeynhausen and to development services in the Group’s subsidiary in the USA. The financial earnings also include
currency gains from internal financing.

The overall operating performance of the Central Services segment stood at 0.7 million euros as of 30 September 2011. The
EBIT was 0.1 million euros after the first nine months (previous year: 3.0 million euros). The EBT was 5.7 million euros com-
pared to 15.0 million euros in the previous year. The fall is primarily due to the loss of earnings from associated companies.
The earnings of associated companies relating to the shareholding in TPK are no longer reported as financial assets after the
loss of significant influence and the change in the valuation method in October 2010. In the same period for the previous
year a figure of 14.3 million Euros was reported here. On the other hand, included in the EBT are the other financial ear-
nings of 5.2 million euros with currency gains from internal financing. These currency gains essentially relate to a loan gran-
ted in the 2009 financial year by Balda Investments Singapore (BIS) to Balda AG in US dollars for the repayment of bank lia-
bilities. The gains result from the difference in currency exchange rates between US dollars and euros as calculated on the
date of exchange.

7


Discontinued business divisions Segment sales from January to September
The discontinued business divisions comprise the for- in mio. euros = 2011 = 2010

mer segment of MobileCom. The segment recorded a Medical 24.4
loss for the period of 35.0 million euros in the period 20.4

under review following a loss of 6.7 million euros in the Electronic 20.0
Products 26.1
same period of the previous year. The negative perfor-
mance is primarily the result of special write-downs to Central 0.7
Services 0.1
the anticipated sale price.
0 10 20 30
Asset position
The Balda Group reports as of the end of the third quarter of 2011 a balance sheet total of 661.0 million euros (31
December 2010: 810.5 million euros). The fall of 149.5 million euros is primarily attributable to the decline in the value of
the TPK holding in financial assets.

Non-current assets fell as of 30 September 2011 by Balda Group / Balance Sheet
278.9 million euros to 432.7 million euros (31 De- in mio. euros

cember 2010: 711.7 million euros). This fall is the result 30.09.2011 661.0
of the aforementioned decline in the value of the TPK
holding and the reclassification of the portion of the sha-
31.12.2010 810.5
res held for sale as current assets. TPK’s share price fell
from 670 Taiwanese dollars on 31 December 2010 to 0 300 600 900
577 Taiwanese dollars on the on 30 September 2011. In
addition to this, the write-down and reclassification of
non-current assets in the MobileCom segment resulted
in a further reduction.

The net working capital of the continued business divisions, i.e. the current assets (not including liquid assets) less the cur-
rent liabilities (not including bank liabilities) decreased in the period under review. At the end of the third quarter net working
capital totalled 5.5 million euros (2010 balance sheet date: 14.8 million euros).

Equity fell as of 30 September 2011 to 614.2 million Balda Group / Equity ratio in percent
euros (2010 balance sheet date: 749.7 million euros). (in percent)

The Group’s earnings, the revaluation of the TPK shares 30.09.2011 92.9
and currency translation differences were primarily
responsible for the fall of 135.5 million euros. The equity
31.12.2010 92.5
ratio as of 30 September 2011 was almost unchanged
at 92.9 percent (31 December 2010: 92.5 percent). 0 25 50 75 100

Further comments on the individual items in the balance sheet as of 30 September 2011 are provided in the comments on
page 18 in the "condensed notes".

Financial position
The cash flow statement is prepared in accordance with IFRS for the Group, including the discontinued business divisions.
The figures for the discontinued business divisions are shown separately in the table in the appendix as an “of which” figure.

The inflow of funds from ongoing business activities in the Balda Group totalled 2.6 million euros in the first nine months of
2011. In the same period of the previous year the Group recorded an outflow of funds of 11.6 million Euros. The reason for
the increase in the period under review was the reduction in the working capital.

8


The Balda Group spent 3.3 million euros on investment activity in the period under review (previous year: 10.0 million euros). In
the same period of the previous year the cash flow from investment activities was influenced by payments relating to the sale
of shares in Group companies (12.1 million euros) and dividend inflows (6.9 million euros).

In the first nine months of 2011, in particular the repayment of credit lines in the MobileCom segment in the amount of 9.0
million euros resulted in an outflow of funds from financing activities. In the previous year, the utilisation of credit lines for
financing activities resulted in an inflow of funds of 9.8 million euros.

The Group's cash and cash equivalents totalled as of the end of September 38.7 million euros (30 September 2010: 55.3
million euros). Cash and cash equivalents relating to the continued business divisions totalled 35.8 million euros.

Due to its continued comfortable level of cash and cash equivalents, Balda is able to finance the operational business in
2011 from its own resources.

Significant events in the third quarter
Changes in the shareholder structure
During the course of the third quarter of 2011 there were changes in the shareholder structure of Balda AG.

On 4 August 2011 the major shareholder Octavian Special Masterfund increased its interest in Balda AG to 5.22 percent
(3,076,810 voting rights out of a total of 58,890,636 voting rights).

TPK dividend in kind
On 29 August 2011, TPK has distributed a dividend in kind of shares on the basis of the decision made at the annual gene-
real meeting on 9 June 2011. Balda accounted for 1,799,918 shares. The number of TPK shares held by Balda AG has now
risen to 37,798,283 shares.

Investments
The Balda Group invested in the current financial year to 30 September 2011, as in the previous year, a total of 1.4 million
euros in fixed assets and intangible assets in its continued business divisions.

The investments in continued business divisions are primarily replacement investments. In the Medical segment investments
totalled around 0.7 million euros. The Balda Group invested around 0.4 million euros on fixed assets and machinery in the
Electronic Products segment during the first nine months of 2011. In the Central Services segment investments totalled
around 0.3 million euros. The Balda Group spent around 0.1 million euros in the Medical segment and 0.2 million euros in
the Central Services Segment on intangible assets.

The Balda Group invested a total of 1.5 million euros in the discontinued business division (MobileCom) in the period under
review to 30 September 2011. These investments were necessary to further optimise the infrastructure for the new produc-
tion site in Beijing. Investments in the same period of the previous year totalled 5.3 million euros. Most of this was spent on
the development of the new production site in Beijing.

9


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 30 September 2011 the company's share capital amounted to 58,890,636 euros and was dispersed in 58,890,636
individual 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 company's annual general meeting.

Reduction of the Supervisory Board and amendment of the statutes
With an amendment of the company's statutes and with effect of 3 July 2011, the Annual General Meeting reduced the
Supervisory Board from six to three members. The members of the Supervisory Board are as follows: Dr. Michael Naschke
(Chairman), lawyer and partner in the law firm van Aubel, Berlin, Chun-Chen Chen (Deputy Chairman), Chairman of the
Board of Directors of TVM Corporation and Touch Video Monitor Corporation, Taipei, Taiwan and Yu-Sheng Kai, Managing
Director of Eternal Union International Limited, Hong Kong.

Voting right restrictions or the assignment of shares
All of the company's shares are freely assignable in accordance with the statutes.

The company's Board of Directors is unaware of restrictions on voting rights or restrictions affecting the assignment of shares as
of the reporting date.

Shareholdings surpassing ten percent of the capital
As of 30 September 2011 the following shareholders held direct or indirect shareholdings in the company's share capital that
entitled 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 2010 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 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 Group's 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.

10


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.

Employees
Increase in the number of employees in the third quarter Number of employees
The number of employees increased slightly in the third
30.9.2011 1,107
quarter of 2011. The Balda Group employed as of 30
September 2011 a total of 1,107 people in its continued
30.6.2011 1,025
business divisions. This is an increase of 82 employees
compared to 30 June 2011, at which time 1,025 people 0 500 1,000 1,500
were employed. The increase is mainly attributable to new
appointments in the Electronic Products segment. There has also been a slight increase in the number of employees in the
Medical segment in the period under review.

The Group’s personnel expenses ratio was almost unchanged as of 30 September 2011 and was 26.2 percent (30 June
2011: 25.7 percent).

Since the second quarter of the current financial year the Personnel expenses ratio
MobileCom segment has been a discontinued business
30.9.2011 26.2 %
division and employed as of 30 September 2011 a total of
350 people (30 June 2011: 583 people) At the end of
30.6.2011 25.7 %
December 2010 the factories in China still employed
1,344 people. 0 10 20 30

Medical recorded a slight increase. The segment employed 218 people in Germany in the period under review following 213
people as of the end of the second quarter of 2011. The segment’s positive business performance is the reason for the slight
increase in the number of employees.

As of 30 September 2011 the Electronic Products segment employed a total of 869 people. As of 30 June 2011, 789 people
were still employed in the production plants in Malaysia. The increase of 80 employees or around 10 percent was the result
of temporary employees being taken on.

With 20 employees, the number employed in the Central Services segment remained below the level of the second quarter
of 2011. On the 30 September 2011 23 people were employed in the holding companies and the development centre in the
USA.

Events after the balance sheet date
Disposal of shares in the MobileCom segment
Balda has carried out its repeatedly advertised intention (most recently in the ad-hoc announcement of 4 August 2011) to dispose
of its MobileCom segment and has sold it by way of a management buy out (MBO). The segment had already been reported in
the 2011 half-year report under “discontinued operations”. The parties have on October 31 with the approval of the Balda
Supervisory Board closed the contracts of sale.

With this Balda has disposed of its activities in the mobile phone business in China. The buyer is Ample Gain Enterprises Limited
(AGE). The Bad Oeynhausen Group is disposing of its companies in Beijing (BSBJ and BTO Technologies) and Suzhou (BSSU)

11


including the rights to properties, buildings and machine park. It is expected that the closing will take place in November 2011.
The parties have agreed not to disclose the details of the transaction such as the conditions and the purchase price. The sale
ends Balda’s of late loss-making involvement due to the challenging market conditions in the MobileCom segment in China. The
Group is therefore freeing resources to focus on higher-margin business divisions such as the Medical division.

No further events occurred after 30 September 2011 which are of major significance to the Balda Group and might result in a dif-
ferent assessment of the company.

Forecast
Macroeconomic development
The assessment for the development of the macro economy is not as bright as the report for the first half of 2011. The posi-
tive development of the global economy will continue at a much slower rate in 2011. The International Monetary Fund (IMF)
is expecting global growth to be around 4 percent for the current year. The emerging countries will remain the drivers of
growth. The main impetus for growth is provided by exports and rising raw material prices. For China gross domestic product
is expected to grow by 9.4 percent.

Growth in the US economy will fall in the current year to 1.6 percent. Recently the downside risks in the US economy have
increased due to the continued difficult situation in the employment market and the high national debt.

In the eurozone the debt crisis for the banks and some countries in the eurozone should continue to have a negative impact
on the spending behaviour of private and public households. The IMF is expecting GDP growth of around 1.5 percent in the
eurozone in 2011 following 1.7 percent in the previous year.

The leading economic research institutes are not expecting a recession in Germany. According to economists, economic out-
put should fall slightly in the fourth quarter. Overall Germany’s economy should grow overall by around 2.9 percent in 2011.
Unemployment will continue to fall in the view of the leading economic research institutes. According to the autumn report,
the unemployment rate should fall from just below three million in the current year to around 2.8 million in 2012. This equa-
tes to an unemployment rate of 7.0 percent for 2011 and 6.7 percent for 2012.

Sector situation
Medical
The demand for German medical technology will remain stable in 2011 and 2012 according to the trade association SPEC-
TARIS. After an increase of 9 percent in 2010, sales will rise this year by a two-digit figure. In particular the increase in
orders from abroad is contributing to this result. The emerging markets will, according to market researchers, become even
more important as sales markets for medical technology in future.

The aging population in Western Europe and the willingness of consumers to spend more on health support the optimistic
forecasts of experts. The innovative strength of German medical technology manufacturers is a further driver of the foreca-
sted growth. Market observers see opportunities in particular in the international acceptance of German healthcare products.
Experts expect that the global health market will double from currently 220 billion euros to around 450 billion euros by 2020.

Electronic Products
The continued turbulence in the financial markets did not have any serious consequences for the global market for electronic
products in the first nine months of 2011. The forecasts for the coming months are also mainly optimistic. The majority of
companies in the electronics sector can expect further growth in 2012.

12


Attractive and easy-to-operate devices such as the tablet PC and electronic components for smartphones will continue to
generate global demand. Newly developed software programmes and applications (apps) will also have a positive impact on
the development of sales. The fast development of new devices and the ever shorter lifecycles of products will, though, inten-
sify price competition among manufacturers of consumer electronics. This development will, according to experts, result in
falling margins in spite of higher sales.

Future corporate situation
The Electronic Products segment will no longer be able to make up entirely for the loss in sales due to the short supply of
electronics components from Japan by the end of the year. The targeted sales figure will not be achieved in full. After a nega-
tive EBIT in the first quarter of 2011 and two break-even quarters, a minus EBIT can be expected for year as a whole.

Sales revenue in the Medical segment will increase significantly in the last quarter of 2011 compared to the previous quarter.
The earnings situation will improve.

The Balda Group is expecting sales revenue in the 2011 financial year to be at the lower end of the forecast of around 70
million euros with a slightly positive EBIT in the continued business divisions. Any special effects or special write-downs are
not considered. The EBT will be higher than the EBIT.

Risks and opportunities report
The Balda Group identifies and assesses its opportunities and risks on a continuous basis. The Group management report
for the 2010 financial year describes the opportunities and risks for the Group in detail. Changes to the opportunities and
risks situation are also indicated in the interim report for the first half of 2011. During the third quarter of the current financi-
al year the opportunities and risks position of the Group has changed due to the following factors:

Financial risks
Developments in the financial markets might increase the risks for Balda AG. This applies in particular with regard to rising
inflation, the reluctance of consumers to buy and negative influences on the share price of Balda’s holding in TPK.

Financial markets have been characterised by escalating national debts in several eurozone countries and banks and the
associated risks in the third quarter of 2011. In spite of repeated interventions by the European Central Bank, the
International Monetary Fund and the European Commission, the situation in Greece and other periphery countries remains
fragile. The slow progress with structural changes increased the probability of Greece’s debts being cut. Italy is also affected
by a rising national deficit. Due to the hesitant management of governments in Europe, the ratings agency Standard and
Poor’s downgraded Italy’s credit rating in September 2011. This step unsettled the markets still further.

The cutting of Greece’s debt by 50 percent will result in high write-offs for the banks and have a negative impact on the capi-
tal adequacy of the financial institutes concerned. According to the decision by the EU states on 26 October 2011, this
impact may be absorbed by the EFSF fund or by the states. Politicians would need to take further fiscal actions in order to
protect the existence of banks. This scenario might further exacerbate national debts in Europe.

In spite of the increase in its debt ceiling, the USA remain a negative factor for the global economy. The high indebtedness
of the public sector, companies and private households on the one hand and the reluctance to buy, high unemployment and
low growth on the other are risk factors in the US economy.

13


The drastic increase in the amount of money in circulation due to the intervention of issuing banks heightens the risk of
rising inflation. Rising food and energy prices are also a risk factor for global price stability. In particular the emerging and
developing countries considered to be a destination for investment are affected by this development.

The increased uncertainty in share markets caused by the banking crisis in Europe might adversely affect global stock mar-
kets. The share price of TPK might suffer as a result despite positive fundamental data.

Currency risks
Further risks could arise due to the standard rate of exchange between the euro and the US dollar changing. A weakening of
the US dollar might have a negative impact on the Balda Group's sales invoiced in the American currency. Any fall in the
value of the euro would adversely affect the Medical subsidiary located in Germany. With regard to the potential sale of TPK
shares, risks might arise for the Group from fluctuations in the exchange rate between the Taiwanese dollar and the US dollar.

Risks and opportunities in the market for suppliers
The difficult situation in the raw materials market might place further pressure on prices in the sales markets. The increasing
competition in sales markets with increasing pressure on prices might also have a negative impact on the Group.

Customer risks
The business performance of the Balda Group depends on the market success of its customers. The non-acceptance of pro-
ducts and any loss of market shares by these customers could have a negative effect on the Group’s order volumes.

The Balda Group takes the opportunity to efficiently control this risk efficiently with technological diversification and further
innovation. The Group reduces the risk of dependency on a few customers with the development of its own products for new
customers in the Electronic Products and Medical segments.

Macroeconomic risks
The natural disaster in Japan at the start of 2011 curbed global economic development in the first few months of the current
year. This resulted in bottlenecks in the supply of components. The trend towards renewable energy sources might result in
much higher energy prices and have a negative impact on the competitiveness of German companies.

One risk is, as mentioned above, high levels of national debt in several European countries. A possible default on Greek
government bonds or a large debt cut would directly affect European banks. High write-downs on their security holdings
might generate further uncertainty in the financial markets.

TPK share risk
Balda AG’s holding in the touchscreen manufacturer TPK is a major asset of the Balda Group. The value of this holding is
also dependent on the political, financial and economic environment. The trends in the financial markets and the related wil-
lingness of market players to invest might have a significant impact on the share price of TPK, regardless of the company’s
fundamental data. Any worsening of the global debt and banking crisis before the end of a lock-up period might have a nega-
tive impact on the value of Balda’s holding.

Acquisition risk
After the sale of the MobileCom segment, the Group’s competitive capacity has reached a lower level. The failure to grow
combined with the planned acquisition to materialise might represent an existential risk for the Group.

Overall risk
Based on the present level of information, there are no further risks for the growth or existence of the Group that go beyond
the risks described above. The Board of Directors currently has no further knowledge concerning the worsening of any of the
above-mentioned risks.

14


Opportunities
The Group's opportunities can be summarised as follows. With its current level of liquid assets as of the end of the third
quarter of 2011 and the TPK holding, the company has sufficient financial and personnel resources to achieve its goals.
Balda is capable of realising important projects, such as the implementation of planned investments and possibly a merger
or acquisition, primarily by its own means.

Balda share
Nervous share markets
The slowdown in growth in the global economy and the national and bank debt crisis in Europe depressed the mood of stock
markets worldwide in the period under review. This development resulted in a heavy fall in share prices. It was not until the
end of the third quarter that international share markets were given fresh impetus by positive economic data from the USA
and the hope that the eurozone would find a way out of the debt crisis after all. The leading German index DAX ended the
third quarter on 5,502 points. It therefore recorded in the nine months a fall of 21.1 percent (opening price 2011: 6,973
points). The German Small Cap Index, in which the share of Balda AG is listed, experienced a similar development. The
SDax has lost 934 points since the start of the year. It was on 4,311 points at the end of the period under review, a drop of
17.8 percent.

Balda AG’s share was not left unscathed by the downswing in the stock markets and ended the third quarter on 5.84 euros.
The share certificates were therefore around 35.7 percent below the closing price for the second quarter of 2011. In the peri-
od January to September 2011 Balda AG's share price fell by 14.8 percent. The nine-month high of the Balda share on the
Xetra trading platform was 9.89 euros on 19 May 2011. Its low was 5.52 euros on 29 September 2011.

Share price January to September 2011
in euro

10.0

Balda AG
SDAX

9.0

8.0

7.0

6.0

5.0

January February March April May June July August September

15


In the first nine months on average 432,777 shares were traded per day (Xetra) (previous year: 310,107 shares per day).
The market capitalisation of Balda AG was 343.9 million euros as of 30 September 2011 based on 58,890,636 million sha-
res. On 31 December 2010 its stock exchange value was 406.3 million euros.

Selected explanatory notes
General explanations
The headquarters of Balda Aktiengesellschaft is located in Bad Oeynhausen, Germany.

The interim report as of 30 September 2011 was prepared in accordance with the International Financial Reporting
Standards (IFRS), as they are to be applied within the European Union (EU). The accounting methods applied are in accor-
dance 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.

Changed basis of consolidation
In January 2011 the legal requirements for closing Balda Solutions (Xiamen) Ltd, Xiamen (China) were met. The company was
liquidated and is no longer included in the basis of consolidation.

In the third quarter of 2011 three new companies were established in Singapore, the shares of which are held 100 % by the
Dutch intermediate holding company Balda Investments Netherlands BV.:

Balda Investments Malaysia Pte. Ltd.
Balda Investments Suzhou Pte. Ltd.
Balda Investments Beijing Pte. Ltd.

The companies take over the holdings in the operating companies of the MobileCom segment and Electronic Products from the
intermediate holding company Balda Investments Singapore Ltd., Singapore. Balda Investments Malaysia Ltd. takes over the hol-
ding in the operating company in Malaysia. Balda Investments Suzhou Ltd. takes over the holding in the (no longer operating)
company Balda Solutions (Suzhou) Ltd., Suzhou (China). Balda Investments Beijing Ltd. takes over the shares in Balda
Solutions (Beijing) Ltd. including BTO Technologies Ltd and Balda Solutions Suzhou Sales & Finance Ltd. The Group has therefo-
re created clear structures for the two segments.

The consolidated financial statements of the first nine months of 2011 included, alongside Balda AG, six domestic and 13
foreign subsidiaries within the scope of full consolidation.

Information about the accounting and valuation methods
The interim consolidated financial statements as of 30 September 2011 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 2010 was
selected. The interim consolidated financial statements were prepared applying the same accounting, valuation and consolida-
tion methods as in the consolidated financial statements for the 2010 financial year and comply with the IAS 34 regulations
(interim reporting).

16


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 financi-
al statements as of 31 December 2010. The exercising of options included in the IFRS is also addressed here.

The exchange rates taken as basis for the foreign exchange translation related to EUR 1.00 changed as follows:

Average spot-exchange rate on reference date Average exchange rates
30. September 31. December 1.1. - 30.9.

Currencies ISO Code 2011 2010 2011 2010

US Dollar USD 1.3596 1.3252 1.4059 1.3135

Chinese Renminbi CNY 8.6881 8.7336 9.1224 8.9285

Malaysian Ringgit MYR 4.3271 4.0800 4.2477 4.2569

Segment reporting
The segment reporting (see table in the appendix) is prepared in accordance with the same principles as in the 2010 annual
financial statements.

The values for the MobileCom segment are listed in this interim report under the discontinued business division and are therefo-
re no longer included in the segment reporting.

The Medical, Electronic Products 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 development
and production of electronic products since the realignment. The Central Services segment includes expenditure and income
relating to holding functions and income from the shareholding in TPK.

In accordance with internal reporting, information on total output has been added to the segment reporting. The total output com-
prises sales revenue, other operating income and changes in inventories of finished and unfinished goods. The development of
sales and the earnings situation of the individual Group segments are presented in detail in "Business development" (see page 6).

Financial position
Rise in operating cash flow
The cash flow statement is prepared in accordance with IFRS for the Group, including the discontinued business divisions.
The figures for the discontinued business divisions are shown separately in the table in the appendix as an “of which” figure.

The inflow of funds from ongoing business activities in the Balda Group totalled 2.6 million euros in the first nine months of
2011. In the same period of the previous year the Group recorded an outflow of funds of 11.6 million Euros. The reason for
the increase in the period under review was the reduction in the working capital.

The Balda Group spent 3.3 million euros on investment activity in the period under review (previous year: 9.1 million euros).
In the same period of the previous year the cash flow from investment activities was influenced by payments relating to the
sale of shares in Group companies (12.1 million euros) and dividend inflows (6.9 million euros).

In the first nine months of 2011, in particular the repayment of credit lines in the MobileCom segment in the amount of 9.0
million euros resulted in an outflow of funds from financing activities. In the previous year, the utilisation of credit lines for
financing activities resulted in an inflow of funds of 9.8 million euros.

17


The Group's cash and cash equivalents totalled as of the end of September 2011 38.7 million euros (30 September 2010:
55.3 million euros). Cash and cash equivalents relating to the continued business divisions totalled 35.8 million euros.

Due to its continued comfortable level of cash and cash equivalents, Balda is able to finance the operational business in
2011 from its own resources.

Balance sheet structure
The Balda Group recorded as of 30 September 2011 a balance sheet total of 661.0 million euros following 810.5 million
euros as of 31 December 2010. The fall of 149.5 million euros is primarily attributable to the decline in the value of the TPK
holding.

On the assets side, the value of fixed assets fell as of 30 September 2011 from 61.6 million euros as of the 2010 reference
sheet date to 24.9 million euros. This fall was primarily due to the devaluation of the likely recoverable amount in the market
for the assets of the MobileCom segment. The Balda Group started its search in June 2011 for a buyer for the MobileCom
segment. With this, the segment was reclassified from non-current to current assets. On 31 October the contracts for the
sale of 100 % of the shares in the MobileCom companies were closed.

Goodwill was reduced as a result of the write-down of goodwill for Balda Solutions Beijing following the devaluation of the
assets to 6.8 million euros (2010 balance sheet date: 15.7 million euros).

The value of the holding in TPK fell due to the share performance in the first nine months of 2011 by 100.5 million euros to
526.8 million euros. The share price fell from 670 Taiwanese dollars (TWD) per share as of the end of 2010 to 577 TWD per
share on 30 September 2011. Due to the planned sale of 9.5 million shares in connection with the capital increase of TPK
the value of this portion of the shares (132.4 million euros) was reclassified as of 30 September 2011 as “assets held for
sale”.

Overall non-current assets fell as of the end of the third quarter of 2011 by 317.3 million euros to 394.4 million euros from
711.7 million euros as of 31 December 2010.

With current assets, inventories fell as of 30 September 2011 to 15.2 million euros (2010 balance sheet date: 18.6 million
euros). The fall of 3.4 million euros is primarily attributable to the reclassification of the MobileCom segment.

Due to customer payments in particular in the MobileCom segment and the reclassification to assets held for sale, trade
accounts receivable fell as of 30 September 2011 by 16.9 million euros to 8.9 million euros (31 December 2010: 25.8 mil-
lion euros).

The fall in liquid assets by 13.1 million euros to 35.8 million euros as of 30 September 2011 (2010 balance sheet date: 48.9
million euros) is primarily attributable to the repayment of credit lines and the financing of the MobileCom segment.

The assets held for sale totalled 166.2 million euros as of 30 September 2011 (2010 reference date: 0 million euros). This
item includes the portion of the TPK holding held for sale (132.4 million euros) and current and non-current assets in the
MobileCom segment following devaluation to the anticipated disposal proceeds.

18


In detail: million euros

Tangible assets 19.2

Financial investments 132.4

Inventories 1.5

Trade receivables 6.6

Other assets 3.6

Liquid funds 2.9

Overall current assets increased as of 30 September 2011 to 228.2 million euros from 98.8 million euros at the end of
2010.

The Group's equity attributable to the shareholders as of 30 September 2011 totalled 614.2 million euros following 749.7
million euros at the end of 2010. The fall of 135.5 million euros is attributable to the revaluation of the TPK shares and diffe-
rences due to currency translation.

Current liabilities fells as of 30 September 2011 to 4.8 million euros from 5.9 million euros as of the 2010 balance sheet
date.

Current liabilities fell by 12.8 million euros to 42.0 million euros as of the end of the third quarter (2010 balance sheet date:
54.8 million euros). In detail the items changed as follows:

The fall in trade accounts receivable to 5.4 million euros from 21.6 million euros as of the 2010 balance sheet date is attri-
butable to the reclassification of the MobileCom segment. The repayment of credit lines in the MobileCom segment and its
reclassification resulted as of the end of the third quarter in a fall in the item current liabilities due to credit institutions and
current part of long-term loans to 0.5 million euros (2010 balance sheet date: 19.8 million euros).

The planned sale of the MobileCom segment involves 20.7 million euros of liabilities relating to assets held for sale, compri-
sing

million euros

Trade payables 8.6

Current bank liabilities 7.7

Other current liabilities 0.9

Long-term bank liabilities 3.5

The other balance sheet items have not changed significantly as of 30 September 2011 compared to the end of the previous
year.

Income statement
The Balda Group achieved in the first nine months of the current financial year in the continued business divisions sales of
44.4 million euros compared to 46.5 million euros in the same period of the previous year. This equates to a fall of 2.1 million
euros or 4.5 percent. The Electronic Products segment is responsible for this. This performance is partly attributable to the
consequences of the nuclear disaster in Japan. Bottlenecks at the suppliers of electronics components from Japan to be built
into electronic devices resulted in production stops in Malaysia. This had a negative impact on the segment’s order volume. At
the same time postponements of orders resulted in a fall in sales revenue in the period under review.

19


Delays in billing for tools had a negative impact on the Medical segment’s sales in the third quarter of 2011.

With sales of 15.4 million euros, the Balda Group generated earnings of around 3.0 million euros less in the third quarter of
2011 than in the same period of the previous year. In the previous quarter in 2010 earnings totalled 18.4 million euros.

The business performance including the earnings position of the individual segments is presented in the interim report on
page 6 ff.

Other operating income in the period under review totalled 5.7 million (same period of the previous year: 8.1 million euros).

The Balda Group recorded an overall operating performance of 50.4 million euros in the period under review (same period for
the previous year: 55.4 million euros).

The cost of materials fell in the period under review to 26.3 million euros (same period of the previous year: 27.5 million
euros). In particular the lower sales volume was responsible for this. The cost of materials ratio measured against overall ope-
rating performance increased in the period under review from 49.7 percent to 52.1 percent. This is attributable to the increa-
sed cost of materials related to the billing of tools in the Medical segment. The material usage ratio in the tool business is
much higher than for articles.

Expenditure on personnel fell as a result of the fall in overall operating performance. The Group spent 13.2 million euros (pre-
vious year: 14.1 million euros) on personnel and social services. Measured against overall operating performance, the person-
nel expenses ratio after nine months of 2011 stood at 26.2 percent (previous year: 25.4 percent).

The cost of depreciation fell in the period under review to 2.8 million euros following 4.5 million euros in the same period of
the previous year. This is mainly attributable to capitalised customer relationships accounted for in the previous year in the
Electronic Products segment no longer applying and lower scheduled depreciation in the current financial year due to the spe-
cial write-downs at the end of 2010 in the Electronic Products segment.

Earnings development
The Balda Group reports an EBIT of 0.1 million euros in the first nine months for its continued business divisions (same peri-
od of the previous year: 1.3 million euros). In the third quarter from July to September the Group’s EBIT was minus 1.0 million
euros (same period of the previous year: plus 0.7 million euros). The continued pressure on margins and low utilisation in the
Electronic Products segment had an adverse effect on the EBIT in the period under review.

The Balda Group’s financial earnings fell to 5.6 million euros (same period of the previous year: 11.9 million euros). The fall is
primarily due to the loss of earnings from associated companies. The earnings of associated companies relating to the share-
holding in TPK are no longer reported as financial assets after the loss of significant influence and the change in the valuation
method in October 2010. In the same period for the previous year a figure of 14.3 million Euros was reported here. On the
other hand currency gains relating to internal financing resulted overall in positive financial earnings in the first nine months of
the financial year. Due to the performance of the US dollar as of the balance sheet date, the loan valuation resulted in negati-
ve financial earnings in the third quarter.

The EBT is at 5.7 million euros in the period under review around 7.6 million euros below the previous year’s figure of 13.3
million euros.

After offsetting taxes on income and earnings of 0.9 million euros (same period for the previous year: tax revenue of 0.4 mil-
lion euros), the profit achieved in the Balda Group's continued business divisions after nine months in the current financial
year was 6.6 million euros following 13.6 million euros in the same period of the previous year.

The discontinued business divisions recorded a loss for the period of 35.0 million euros in the period under review (same peri-
od of the previous year: loss for the period of 6.7 million euros). This includes special accounting write-downs to the recovera-

20


ble value of the units sold in the amount of 24.5 million euros. The loss from the operating business of the discontinued busi-
ness divisions was 10.5 million euros in the first nine months of 2011.

In the first three quarters of 2011 the Balda Group recorded in its continued and discontinued business divisions a loss for the
period of 28.4 million euros. In the same period of the previous year the Group recorded an overall profit of 6.9 million euros.

Based on 58.891 million shares, the profit for the period results in undiluted earnings per share of 0.11 euros. In the previous
year the earnings per share based on 54.157 million shares were 0.25 euros.

Related parties
Alongside the companies included in the consolidated financial statements, there are companies and persons, as well as
persons in key positions of management that are related to the Balda Group according to IAS 24. In the period under review
there were no business relations with these persons or companies excepting the remuneration payments to the Board of
Directors and the Supervisory Board.

Other financial obligations
Other financial obligations, consisting mainly of letting and leasing obligations as well as purchase commitments for invest-
ments, amounted to 0.5 million euros as of the 30th September of the current financial year.

Events after the reference date
Information on significant events after the reference date is presented in this report in "Events after the reference date" on
page 11.

Details on the preparation of the interim report
The consolidated balance sheet, the statements of comprehensive income, cash flow statements, the segment reports, the
statements of changes in equity, the interim management report and the condensed notes prepared as of the 30th
September 2011 have not been audited or subjected to an auditing review. They were prepared for the 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 the
Board 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 statement
To be best of my knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the
interim consolidated financial statements give a true and fair view of the asset, financial and earnings position of the Group,
and the interim management report of the Group includes a fair review of the development and performance of the business
and 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, 3 November 2011

Rainer Mohr
(Sole Member of the Board of Directors)

21

Quarterly Financial Statements III/2011

22

Balance Sheet Group – Assets

Balda Group – Balance Sheet as of 30 September 2011 – Assets

in KEUR 30 September 2011 31 December 2010
A. Long-term assets
I. Tangible assets 24,935 61,601
1. Land and buildings 15,673 29,586
2. Machinery and equipment 7,326 29,317
3. Fixtures, furniture and office equipment 1,896 2,676
4. Advance payments and construction in progress 40 22
II. Goodwill 6,833 15,705
III. Intangible assets 457 900
IV. Financial assets 394,393 627,293
1. Investments 1 1
2. Financial Investments 394,392 626,812
3. Other financial assets 0 480
V. Deferred taxes 6,122 6,168
Long-term assets 432,740 711,667

B. Current assets
I. Inventories 15,219 18,616
1. Raw materials and supplies 4,161 5,357
2. Work in progress and finished goods and merchandise 4,843 10,399
3. Advance payments 6,215 2,860
II. Trade accounts receivable 8,965 25,772
III. Other current assets 1,749 4,830
IV. Tax refund 339 648
V. Cash and cash equivalents 35,775 48,937
VI. Assets held for sale 166,165 0
Current assets 228,212 98,803
Total assets 660,952 810,470

23

Balance Sheet Group – Total Liabilities and Shareholders’ Equity

Balda Group – Balance Sheet as of 30 September 2011 – Total Liabilities and Shareholders’ Equity

in KEUR 30 September 2011 31 December 2010
A. Shareholders’ equity
I. Subscribed share capital 58,891 58,891
II. Reserves 398,843 505,944
III. Net profit 156,440 184,885
1. Earnings -28,445 94,584
2. Retained earnings 184,885 90,301
Equity of the shareholders of Balda AG 614,174 749,720
Total shareholders’ equity 614,174 749,720
B. Long-term liabilities
I. Long-term debt 8 440
1. Bank loans 8 440
II. Long-term finance lease obligations 245 222
III. Deferred taxes 4,447 5,172
IV. Long-term provisions/pension accruals 68 69
Long-term liabilities 4,768 5,903
C. Current liabilities
I. Trade accounts payable 5,428 21,643
II. Other current liabilities 3,477 6,038
III. Advance payments received 10,247 4,768
IV. Short-term debts and current portion
of long-term debts 553 19,819
V. Current portion of finance lease obligation 102 179
VI. Tax liabilities 1,390 2,307
VII. Short-term provisions 89 93
VIII. Liabilities held for sale 20,724 0
Current liabilities 42,010 54,847
Total liabilities and shareholders’ equity 660,952 810,470

24

Income Statement / Group-Total-Income-Statement

Balda Group – Income Statement – 1 January to 30 September 2011

in KEUR 3rd Quarter 3rd Quarter 1-3 Quarters 1-3 Quarters
2011 20101 2011 20101
Revenues 15,425 18,394 44,368 46,450
Other operating income 796 2,315 5,650 8,145
Changes in inventories of finished
goods and work in progress -273 139 364 814
Total income 15,948 20,848 50,382 55,409
Material expenses 8,449 11,156 26,270 27,522
Material costs rate in % 53.0% 53.5% 52.1% 49.7%
Personnel expenses 4,355 4,583 13,193 14,091
Ratio of personnel costs in % 27.3% 22.0% 26.2% 25.4%
Depreciations 912 1,507 2,840 4,506
Other operating expenses 3,273 2,892 7,982 7,943
Operating income -1,041 710 97 1,347
Operating income in % -6.5% 3.4% 0.2% 2.4%
Financial result 117 -875 348 -2,364
Other financial costs -3,847 0 5,214 0
Earnings from affiliated companies 0 4,553 0 14,273
Total financial result -3,730 3,678 5,562 11,909
Earnings before income taxes -4,771 4,388 5,659 13,256
Taxes on income and on earnings 1,115 0 932 371
Net income – continued operations -3,656 4,388 6,591 13,627
Earnings discontinued operations -9,405 -2,585 -35,036 -6,731
Group result -13,061 1,803 -28,445 6,896

Annual income total Group added to:
Shareholders of Balda AG -13,061 1,803 -28,445 7,155
thereof from continued operations -3,656 4,388 6,591 13,627
thereof from discontinued operations -9,405 -2,585 -35,036 -6,472
Shares of other associates 0 0 0 -259
thereof from continued operations 0 0 0 0
thereof from discontinued operations 0 0 0 -259
1) Adjusted figures, MobileCom taken out

Earnings per Share:
Average number of tradeable shares (undiluted) 58,891 54,157 58,891 54,157
Average number of tradeable shares (diluted) 58,891 54,182 58,891 54,182
Earnings per Share – Grou
- undiluted (EUR) -0.222 0.033 -0.483 0.132
- diluted (EUR) -0.222 0.033 -0.483 0.132
Earnings per Share – continued operations
- undiluted (EUR)) -0.062 0.081 0.112 0.252
- diluted (EUR) -0.062 0.081 0.112 0.252

Group-Total-Income-Statement – 1 January to 30 September 2011

in KEUR 2011 2010
1. Annual result total Group -28,445 6,896
2. Other result -107,101 16,667
1. Discrepancy contribution from currency conversion -7,861 16,511
2. Share of other result of at equity balanced associated companies 0 156
3. Subsequent measurement of financial instruments -99,240 0
3. Total result of the period -135,546 23,563
Total result of the period attributable to:
Shareholders of Balda AG -135,546 23,409
Share of other associates 0 154

25

Cash flow

Balda Group – Cash flow – 1 January to 30 September 2011

in KEUR 9-Month Report 9-Month Report
01.01.2011 - 01.01.2010 -
30.09.2011 30.09.2010
Net loss/income before income tax and financing costs –
continued operations 97 -3,613
Net loss/income before income tax and financing costs –
discontinued operations -32,104 0
+ Income from interest 484 353
- Interest payments -656 -894
+/- Payments on tax on income and earnings -812 -249
+/- Write-offs/write-ups on long-term assets
(excluding deferred taxes) 27,176 8,648
+/- Other non-cash affecting expenses and earnings 537 0
+/- Increase/decrease in tax refund and tax liabilities -679 -6,426
+/- Increase/decrease in provisions -5 -30
+/- Increase/decrease in inventories, trade accounts receivable
and other assets not itemised within investment or financing activities 12,964 -21,921
+/- Increase/decrease in accounts payable and other liabilities not
itemised within investment or financing activities -4,376 12,541
= Cash flow from operating activities 2,626 -11,591
thereof discontinued operations 3,841 -4,994
Cash flow from investing activities
- Payments in intangible and tangible assets affecting payment 1 -3,262 -9,084
+/- Income from dividend payments 0 6,908
+ Cash inflow from the sales of shares of the group 0 12,131
= Cash flow from investing activities -3,262 9,955
thereof discontinued operations -2,195 -7,897
Cash flow from financing activities
+/- Affecting payment change of liabilities against banks -8,480 9,801
+/- Affecting payment change of financial leasing liabilities -54 -299
= Cash flow from financing activities -8,534 9,502
thereof discontinued operations -8,274 2 10,649
+/- Change in cash and cash equivalents affecting payment -9,170 7,866
+ Cash and cash equivalents at the beginning of the fiscal year 48,937 43,129
+/- Impact of exchange rate differences on cash held in foreign currencies -1,055 4,342
= Cash and cash equivalents at the end of the reporting period – Group 38,712 55,337
Cash and cash equivalents at the end of 3. quarter –
discontinued operations 2,937 4,254
Cash and cash equivalents at the end of the reporting period 35,775 51,083
continued operations
Total financial resources at the end of the reporting period – Group
Cash funds 38,712 55,337

1) Expenditures relate to some extent to the previous years
2) Including financing through Balda Investments Singapore PTE LTD (continued operations) in the amount of KEUR 3,684

26

Segment Reporting

Balda Group – Segment Reporting as of 30 September 2011

Quarterly result as of 30.09.2011

in KEUR Electronic Products Medical
Revenues external 19,946 24,422
Revenues internal 26 0
Revenues total 19,972 24,422
Change from previous year -23.4% 19.9%
Total income 1
20,268 25,199
Change from previous year -24.4% 19.8%
EBIT -1,535 1,740
in % of total income -7.6% 6.9%
EBT -1,428 1,570
Investments 387 655
Segment assets (1)/(2) 35,245 19,246
Number of employees as 30.09. (3) 869 218

Quarterly result as of 30.09.2010

in KEUR Electronic Products Medical
Revenues external 26,083 20,297
Revenues internal 0 70
Revenues total 26,083 20,367
Total income 1
26,801 21,038
EBIT -2,562 1,605
EBT -2,496 1,436
Investments 234 976
Segment assets (1)/(2)
54,860 14,020
Number of employees as 30.09. (3)
1,013 212

(1) Segment assets = Long-term plus short-term fixed assets excluding assets held for sale and excluding deferred tax and tax refund claims.
(2) Segment assets for "Central Services" with KEUR 526,798 (previous year KEUR 51,478) contains the equity of the associate TPK .
(3) Number of employees as at 30.09. = only continued operations including temporary employment agency workers and trainees.
(4) The amounts listed in the reconcilitation relate to assignments to the discontinued operations.
(5) The Inter-segment-adjustments relate to the revenues that have been reached between the segments, Group internal receivables and the elimination of Group Internal
dividends between the segments.

27

Balda_Q3_e_2011

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