DGAP-News: SURTECO GROUP SE: Publication of the Nine-Month Report

SURTECO GROUP SE: Publication of the Nine-Month Report

- Group sales of EUR 519.3 million in the first three quarters
- EBIT at EUR 31.6 million
- Annual operating targets achievable: stable sales of EUR 655 to 685 million and EBIT of EUR 38 to 40 million
- Review of measures for additional improvement in profitability

Buttenwiesen, 14 November 2019 - SURTECO GROUP SE, holding company for leading brands in surface technology, succeeded in increasing adjusted sales and earnings in the third quarter. In spite of sustained difficult framework conditions, Group sales adjusted by the US impregnating business divested in July 2019 rose by 2 %. After nine months, sales of EUR 519.3 million (9M 2018: EUR 534.2 million) were reported, although they were slightly below the previous year on an adjusted comparison. In view of falling cost of materials, and lower personnel expenses, the quarterly EBIT (earnings before financial result and income tax) improved by 36 % to EUR 11.4 million compared with the weak year-earlier quarter (EUR 8.4 million). However, after nine months EBIT at EUR 31.6 million was still slightly below the year-earlier value (EUR 31.9 million). Thanks to an improved financial result and income taxes, consolidated net profit at EUR 19.5 million (9M 2018: EUR 19.3 million) was slightly above the year-earlier value after nine months. The sales forecast for 2019 of between EUR 655 million and EUR 685 million appears attainable at the upper end. The same applies to the operating result of between EUR 38 million and EUR 40 million. However, owing to the sustained difficult economic environment, additional measures from the "Alpha" optimization programme may become necessary to safeguard earnings for the coming year and in order to significantly improve earnings over the medium term.

Varying segment development
Decoratives - the biggest of the three SURTECO segments - with sales of EUR 378.7 million after nine months was just in negative territory (9M 2018: EUR 384.4 million). Profiles continued to develop positively and achieved nine-month growth of around 8 % to EUR 71.0 million (9M 2018: EUR 66.0 million). Weakness in the area of laminates burdened the Technicals Segment along with divestment of the US impregnating business. After nine months, sales were at EUR 69.6 million (9M 2018: EUR 83.8 million). In the segment EBIT, Decoratives achieved a significant increase to EUR 26.9 million after the previous figure of EUR 25.9 million. Profiles also posted an improvement at EUR 7.9 million after EUR 7.1 million. By contrast, Technicals suffered from a fall in sales and one-off negative impacts as a result of the divestment referred to above. Accordingly, the Segment EBIT fell back from EUR 3.7 million to EUR 1.7 million.

Level of debt significantly reduced
Owing to repayment of the final tranche of a US Private Placement amounting to EUR 60 million in August 2019, the balance sheet total as at 30 September 2019 came down significantly from EUR 844.5 million at the close of 2018 to EUR 799.6 million. Owing to simultaneously higher equity, the equity ratio rose by 4 percentage points to 45.8 %. Net financial debt fell to EUR 190.5 million and the level of debt dropped from 56 % to 52 %.

You can find the report on the first nine months of 2019 and other information about SURTECO GROUP SE on the Internet 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.

More information on the company is available at: www.surteco-group.com

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.

Important indicators of SURTECO GROUP SE (in EUR million)

(1) Since July 2019 without divested imprenating business (2018 not adjusted)
(2) Difference to balance of segment earnings due to internal clearing
(3) Based on a number of shares amounting to 15,505,731
(4) Net debt / Equity