DGAP-News: SURTECO GROUP SE: Resolution passed on comprehensive restructuring measures; investments in process optimization and digital printing; changes in the Management Board

SURTECO GROUP SE: Resolution passed on comprehensive restructuring measures; investments in process optimization and digital printing; changes in the Management Board

Munich, 19 December 2019 - At its meeting today, the Supervisory Board of SURTECO GROUP SE passed a resolution relating to comprehensive measures designed to optimize the structure of the company.
In order to streamline the Group structures, the executive management of SURTECO GmbH will be taken over by the Management Board of SURTECO GROUP SE with effect from next year. In this context, the managing directors Mr. Dieter Baumanns and Mr. Peter Schulte leave the company. As part of a functional organisation, the Management Board will in future assume responsibility for operational activities. Additionally, the organization will be further streamlined by closing the sales companies in Spain and Turkey. The reduction of approximately 175 jobs, particularly in the Decoratives Segment, is intended to strengthen competitiveness at the German locations.

"There is no alternative to the planned restructuring measures. Equally important, is investing in growth areas such as supermatt surfaces, release papers, digital printing and the area of profiles," commented Wolfgang Moyses, the Chairman of the Management Board of SURTECO GROUP SE.

Owing to the demand-related under-utilization of capacity and optimization of the production network over the long term, one-off write-downs on assets and inventories are also being carried out in the business year 2019.
Expenses about 15 to 20 million euros will be incurred for these measures, which will constitute an obviously negative burden on the result for 2019. The original forecast of 38 to 40 million euros is still forecast for the operating result (EBIT¹ adjusted by one-off expenses). Over the medium term, the measures referred to above should lead to an EBIT between 55 and 60 million euros.

Investments in equipment and buildings
In the business year 2020, the company will be investing in forward-looking projects. These include investment in production facilities, and in production and warehousing areas in the strongly growing Profiles Segment. In the Decoratives Segment, new production lines will be installed in the plastic edgings business and decorative printing will be expanded by a full-range digital printing facility that is scheduled to start up production operations already in the business year 2020.

Changes in the Management Board
The CFO of the company, Mr. Andreas Riedl, has asked the Supervisory Board not to extend his Management Board contract, which expires on 30 June 2020. He will continue to carry out his functions on the Management Board until his contract expires and he will then take up new functions outside the SURTECO Group.
The Supervisory Board would like to take this opportunity to thank Mr. Riedl for his many years of successful service in the SURTECO Group and regrets the decision taken by Mr. Riedl.
In order to strengthen the operating functions, the Supervisory Board has additionally resolved to extend the Management Board by a Chief Operating Officer (COO). An appointment will be made to this position during the course of the business year 2020.

¹ The use of indicators in this press release is carried out in accordance with the definition in the Annual Report 2018. This can be called up at www.surteco-group.com.

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Profile of SURTECO

SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems.

With more than 3,300 employees at 23 production sites worldwide, the Group generates annual sales of around EUR 700 million in 2018. 24 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 29 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from the wood-based, flooring and furniture industries, as well as from interior design.

The shares in SURTECO GROUP 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 and Stuttgart.

Cautionary note regarding forward-looking statements

This press release may contain 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 assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.