DGAP-News: SURTECO SE: Further high level of dynamic growth at SURTECO for the first half of the year

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| Source: EQS Group AG
DGAP-News: SURTECO SE / Key word(s): Half Year Results
SURTECO SE: Further high level of dynamic growth at SURTECO for the
first half of the year

14.08.2014 / 08:00

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Press Release   

Further high level of dynamic growth at SURTECO for the first half of the
year

  - Sales at the Group rose by 59 % to 315.3 million euros

  - EBITDA increased by 50 % to 39.6 million euros - consolidated net
    profit went up by 60 % to 12.8 million euros

  - Integration of Süddekor continues apace 

  - Outlook for 2014 confirmed

Buttenwiesen-Pfaffenhofen, 14 August 2014 - SURTECO SE - one of the world's
leading manufacturers of decorative surface materials - continued to post a
high level of dynamic growth after the first six months of the business
year 2014. A key factor in the 59 percent increase in sales to 315.3
million euros (first half of 2013: 198.4 million euros) was the
consolidation of the Süddekor Group taken over at the end of 2013. However,
modest organic growth was also generated. The Group also increased its
profit. Earnings before interest, tax, and depreciation and amortization
(EBITDA) climbed by 50 % from 26.4 million euros to 39.6 million euros by
the end of the first half year. Consolidated net profit rose by 60 % to
12.8 million euros (1st half of 2013: 8.0 million euros).

"Even after six months, we can be satisfied with the development of our
indicators for 2014, even if the framework conditions have not been
conducive to assisting our endeavours. The integration of Süddekor is
proceeding as planned", stated the Chairman of the Board of Management of
SURTECO SE, Friedhelm Päfgen.

Organic growth in both business units

The increase in sales of 144 % to 200.4 million euros in the paper segment
was primarily due to the Süddekor takeover, with organic growth also going
up by 2.2 %. Although the Business Unit Plastics remained slightly below
the level of the previous year at 114.9 million euros in the reported
sales, adjusted by the divested cladding business of the Vinylit GmbH it
also posted an increase of 2.4 %. Earnings in both segments similarly
showed increases over the amounts for the previous year. The
disproportionately lower increase in earnings per share from 0.72 euros to
0.83 euros is explained by the capital increase carried out in November
2013.

Free cash flow increased by 79 % to 11.1 million euros

Since Süddekor was already consolidated in the balance sheet at the close
of 2013, there have been no major changes on this front. The equity ratio
at 48.5 % (end of 2013: 49.7 %) continues to remain robust alongside the
gearing (level of debt) at 50 % (end of 2013: 49 %). The platform for this
was a stable development of net financial debt (first half of 2014: 153.8
million euros compared with 151.2 million euros at 31/12/2013). The good
earnings performance is also reflected in the free cash flow, which went up
by 79 % from 6.2 million euros to 11.1 million euros.

Forecast for 2014 confirmed - uncertainties about the impact of the Ukraine
crisis

SURTECO SE is continuing to operate in a difficult environment with the
focus on customers in the furniture industry. Nevertheless, the company
holds to its forecasts given in April 2014: Consolidated sales are
projected to increase to 630-640 million euros (2013: 404 million euros).
Potential impacts on business in Eastern Europe as a consequence of the
deteriorating crisis in Ukraine cannot be predicted at present.
Nevertheless, pretax earnings (EBT) are projected to increase significantly
compared with the previous year. The pretax earnings of the previous year
(28.1 million euros) were defined by a positive one-off effect amounting to
13.5 million euros from the purchase-price allocation of the Süddekor
companies.
This forecast does not include restructuring expenses which arise from
relocating the printing activities of Süddekor GmbH, Laichingen, to the
Buttenwiesen site. The conditions for creation of provisions are not yet in
place.

The integration of Süddekor is proceeding in accordance with expectations. 
A uniform sales structure has been implemented, and as planned a start has
been made on the concentration of the Group's printing activities at the
Buttenwiesen site. The first synergies from the merger of the printing
activities will flow into consolidated earnings starting in 2015.

You can find the report for the first half-year of 2014 and other
information about SURTECO SE on the Internet by going to 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,
Düsseldorf, Hamburg, Hannover 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>

                                            Q1-2 2013   Q1-2 2014 
Variation
Consolidated sales                              198.4       315.3     +59 %
- of which paper                                 82.0       200.4    +144 %
- of which plastics                             116.4       114.9      -1 %
Foreign sales in %                                 69          71  -EBITDA 
26.4        39.6     +50 %
EBITDA margin in %                               13.3        12.6  -
EBIT                                             15.8        21.6     +37 %
EBT                                              11.9        17.8     +50 %
Consolidated net profit                           8.0        12.8     +60 %
Earnings per share in EUR 1                      0.72        0.83     +15 %
Cash flow from current business                  13.2        22.1     +67 %
operations
Free cash flow                                    6.2        11.1     +79 %


</pre>

<pre>

                                           31/12/2013             30/6/2014
Balance sheet total                             626.7                 634.8
Equity                                          311.4                 308.0
Net debt                                        151.2                 153.8
Gearing (level of debt) in % 2                     49                    50
Equity ratio in %                                49.7                  48.5
Employees                                       2,664                 2,652


</pre>

(1) Q1-2 2014: based on 15,505,731 no-par-value shares  (including capital
    increase from December 2013), Q1-2 2013: number of shares: 11,075,522

(2) Net debt / Equity



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14.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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, Hamburg, Hannover,      
             Stuttgart                                                  
 
 
End of News    DGAP News-Service  
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281852 14.08.2014