DGAP-News: SURTECO SE: SURTECO expects a significant increase in sales in 2014 from the acquisition of the SÜDDEKOR Group

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| Source: EQS Group AG
DGAP-News: SURTECO SE / Key word(s): Final Results
SURTECO SE: SURTECO expects a significant increase in sales in 2014
from the acquisition of the SÜDDEKOR Group

30.04.2014 / 06:30

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Press Release   

SURTECO expects a significant increase in sales in 2014 from the
acquisition of the SÜDDEKOR Group

  - Group sales at 404.1 million euros in the business year 2013, EBITDA
    increases to 59.9 million euros due to one-off effects

  - Dividend proposal 0.65 (2012: 0.45) euros per share

  - Outlook 2014: Confidence on the basis of Süddekor takeover, majority of
    synergies expected from 2015

Buttenwiesen-Pfaffenhofen, 30 April 2014 - SURTECO SE - one of the world's
leading manufacturers of decorative surface materials - today submitted its
audited figures for the business year 2013. These indicate that Group sales
at 404.1 million euros (2012: 407.7 million euros) came out slightly below
the year-earlier value due to difficult conditions in the sector
environment. Sales amounting to 14.2 million euros for the Süddekor Group,
which was taken over at the end of 2013, are only included in this figure
for the month of December. Earnings before financial result, income tax and
depreciation and amortization (EBITDA) increased by 16 % to 59.9 million
euros (2012: 51.7 million euros). In addition, the SÜDDEKOR acquisition
delivered a badwill effect amounting to 13.5 million euros resulting from
the difference between the purchase price and the remeasurement of assets
in the course of a purchase price allocation. Against the background of
positive expectations for the business year 2014, the Board of Management
and the Supervisory Board of SURTECO SE will recommend to the Annual
General Meeting to be held on 27 June 2014 that a payment of dividend
increased from 0.45 euros to 0.65 euros per share should be made for the
business year 2013.

"Integration of SÜDDEKOR will be the main focus of activities at SURTECO
for 2014. The measures implemented so far have proceeded according to plan.
We expect the majority of the synergies from the year 2015. Nevertheless,
SURTECO should be able to achieve a significant increase in sales and
operating earnings in the current year," commented the Chairman of the
Board of Management SURTECO SE Friedhelm Päfgen.

 Acquisition delivers stimuli

The foreign sales ratio of SURTECO rose again from 69 % to 70 % during the
year under review. While sales of the Strategic Business Unit Plastics
decreased by 3 % to 229.4 million euros as a result of sector conditions,
the paper segment posted growth of 3 % to 174.7 million euros on account of
the consolidation of the SÜDDEKOR Group. The positive one-off effect of the
badwill also led to a significant increase in EBIT and pretax result
amounting to 37.3 million euros (2012: 29.7 million euros) and 28.1 million
euros (2012: 21.2 million euros) respectively. Consolidated net profit rose
disproportionately by 46 % to 21.9 million euros because the badwill is not
relevant from a tax perspective. Earnings per share (consolidated net
profit/ weighted average of shares issued) climbed from 1.36 euros to 1.86
euros.

 

Equity ratio increases to 50 % - gearing effectively stable at 49 %

The balance sheet structure of SURTECO continues to remain very stable
following the takeover of SÜDDEKOR. As a result of the acquisition, the
balance sheet total went up by 34 % to 626.5 million euros. Because the
transaction was financed from a capital increase and existing liquid
assets, the equity ratio increased from 47.8 % to 49.7 %. Net financial
debt increased essentially on account of leasing liabilities of the
SÜDDEKOR companies recognized for the first time, rising from 101.8 million
euros to 151.1 million euros. Gearing - defined as the ratio of net
financial debt to equity capital - amounted to 49 % (2012: 46 %) at 31
December 2013. While cash flow from current business activities remained
stable at 55.0 million euros, the takeover of SÜDDEKOR led to cash outflow
of 99.0 million euros and free cash flow of minus 68.8 million euros (2012:
35.4 million euros).

Outlook for 2014: Confidence on the basis of the SÜDDEKOR integration -
majority of the synergies expected from 2015

SURTECO is once again not anticipating positive stimuli from the furniture
industry as its most important customer group in the business year 2014.
The trend is to expect potential for growth to come from outside Germany,
in particular from Eastern Europe. The cost of raw materials has
stabilized, albeit at a high level, after some costs rose sharply during
recent years. The value of SURTECO is therefore likely to increase
primarily on account of the full consolidation of SÜDDEKOR. The integration
of the activities taken over will be the strategic focus for 2014. The
majority of the anticipated synergies are expected from 2015. Nevertheless,
the sales and operating results of the SURTECO Group are likely to
significantly exceed the values of the previous year in 2014. During the
first quarter, the company made a robust, positive start to the year
(SURTECO will be publishing details on 15 May 2014). Furthermore, the
objective in this year is again to generate positive free cash flow which
is earmarked to reduce net financial debt and to pay out another attractive
dividend.

You can find the Annual Report for 2013 and other information about SURTECO
SE on the Internet at www.surteco.com.

Profile of SURTECO
SURTECO SE, Buttenwiesen-Pfaffenhofen, is a leading international
specialist for surface technologies. The product portfolio includes papers
printed with decorative designs, impregnated products, release paers, 
decorative flat foils and edgebandings based on specialist papers for
technical applications and plastics. The extensive product portfolio is
completed by skirtings made of plastic, technical extrusions for industry
and do-it-yourself ranges and shutter systems.
The Group currently has a workforce of appr. 2,700 and manufactures at 21
sites on four continents, currently generating approximately 30 % of sales
in Germany, 45 % in European countries outside Germany and the remainder in
America, Asia and Australia. Customers of SURTECO generally come from the
wood based materials, flooring and furnishing industry and the interior
industry.
The shares of SURTECO SE are listed on the official market (Prime Standard)
of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and
ISIN DE0005176903. They are also traded on the stock markets in
Berlin/Bremen, Düsseldorf and Stuttgart. The stock is listed on the SDAX of
Deutsche Börse.

Cautionary note regarding forward-looking statements
This press release contains statements of future forecasts or expectations
and other forward-looking statements and involves known and unknown risks
and uncertainties. There is therefore no guarantee for the statements and
expectations expressed herein. The actual results and developments may
differ substantially. The company does not intend to - and assumes no
obligation - to update any forward looking statements contained herein or
to adapt such information to future results or developments.

Contact:

<pre>

SURTECO SE

Andreas Riedl                           Martin Miller
Chief Financial Officer                 Investor Relations and Press Office
+ 49 (0) 8274/99 88-563                 + 49 (0) 8274/99 88-508


Internet www.surteco.com
Email ir@SURTECO.com
Fax    + 49 (0) 8274/99 88-515



</pre>

 Important indicators of SURTECO SE 
(in EUR million)
  
<pre>

                                               2012                    2013
Consolidated sales                            407.7                   404.1
- of which paper                              170.1                   174.7
- of which plastics                           237.6                   229.4
Foreign sales in %                               69                      70
EBITDA                                         51.7                    59.9
EBITDA margin in %                             12.7                    14.8
EBIT                                           29.7                    37.3
EBT                                            21.2                    28.1
Consolidated net profit                        15.0                    21.9
Earnings per share in EUR 1                    1.36                    1.86
Dividend per share in EUR 2                    0.45                    0.65


</pre>

 
<pre>

                                                31/12/2012      31/12/2013
Balance sheet total                                  467.3           626.5
Equity                                               223.2           311.0
Net debt                                             101.8           151.1
Gearing (level of debt) in 3                            46              49
Equity ratio in %                                     47.8            49.7
Cash flow from current business operations            55.3            55.0
Free cash flow                                        35.4           -68.8
Employees                                            1,967           2,702


</pre>

(1) Based on an number of shares amounting to 11,767,363 (weighted average
    of shares issued), Number of shares 2012: 11,075,522

(2) For the business year 2013: Dividend proposal to the Annual General
    Meeting

(3) Net debt / Equity

 


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30.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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Language:    English                                                    
Company:     SURTECO SE                                                 
             Johan-Viktor-Bausch-Str. 2                                 
             86647 Buttenwiesen-Pfaffenhofen                            
             Germany                                                    
Phone:       +49 (0)8274 99 88-0                                        
Fax:         +49 (0)8274 99 88-5 05                                     
E-mail:      ir@surteco.com                                             
Internet:    www.surteco.com                                            
ISIN:        DE0005176903                                               
WKN:         517 690                                                    
Indices:     SDAX                                                       
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Stuttgart               
 
 
End of News    DGAP News-Service  
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265370 30.04.2014