SURTECO SE: Significant rise in earnings expected for 2018

- Consolidated net profit for 2017 rises by 10 % to EUR 26.2 million

- Healthy balance sheet structure in spite of higher investments in international expansion

- Dividend proposal with unchanged payout of EUR 0.80 per share

- Outlook for 2018: sales growth at between EUR 725 and EUR 750 million - EBIT increase projected to between EUR 49 and EUR 53 million

Buttenwiesen, 27 April 2018 - SURTECO SE, the world's leading manufacturer of surfaces for the furniture and wood-based industry, and producer of technical extrusions (profiles), is striving to achieve significant growth in sales and earnings for the new business year 2018. Consolidated sales are therefore projected to rise from EUR 689.7 million (+8 % compared with 2016) to between EUR 725 and EUR 750 million. This growth should be achieved on the back of modest organic growth and full-year consolidation of the Probos Group. Earnings before the financial result and income tax (EBIT) are projected to improve from EUR 44.7 million (+9 % compared with 2016) to a value between EUR 49 and EUR 53 million in 2018.

In the business year 2017, consolidated net profit increased by 10 % to EUR 26.2 million (2016: EUR 23.9 million). In view of the robust operating development, the Board of Management and the Supervisory Board will submit a proposal to the Annual General meeting on 28 June 2018 to pay out an unchanged dividend of EUR 0.80 per share. This corresponds to a payout rate of approximately 47 % of the consolidated net profit.

"Our strategy is increasingly proving successful as we have expanded into growth markets and growth products, alongside organic growth," commented Dr. Herbert Müller, the Chairman of the Board of Management, as he outlined development.

Both segments with renewed earnings growth

While sales in the plastics segment went up by 26 % to EUR 321.7 million (2016: EUR 254.4 million) driven by organic growth and on account of the acquisition of the Portuguese Probos Group and the British Nenplas Group, development in the paper segment fell by -5 % to EUR 368.0 million (2016: EUR 385.4 million) as a result of ongoing final follow-on effects from the concentration of German decorative printing activities. However, consistently applied efficiency enhancement measures ensured that EBIT continued to increase in both segments (EBIT paper line: +6 % to EUR 26.9 million and plastics line +11 % to EUR 24.6 million). The number of employees rose significantly by 16 % to 3,295 due to acquisition.

Balance sheet and cash flow defined by expansion

On account of the takeover of the Probos group in 2017 with an investment volume of EUR 99 million and the first-time issuance of a promissory loan note in October, the equity ratio at 31 December 2017 came down from 51.4 % in the previous year to 41.4 %. The transactions referred to were also reflected in the level of debt (54 % after 39 % in 2016) and the net debt (EUR 190.0 million after EUR 135.6 million in the previous year). Primarily due to the purchase price payment for the acquisition, the free cash flow for 2017 amounted to EUR -32.6 million (2016: EUR 4.1 million). Refinancing at favourable conditions and the increased operating result mean that the company has a very healthy platform for the targeted company growth.

You will find the Annual Report for the year 2017 and additional information about SURTECO SE on the Internet at www.ir.surteco.com.

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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 papers, 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. 3,300 and manufactures at 23 sites on four continents, currently generating approximately 25 % of sales in Germany, 46 % 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, Stuttgart Hamburg and Hannover.

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.
Important indicators of SURTECO SE (in EUR million)

¹ Difference to balance of segment earnings due to internal clearing
² Based on a number of shares amounting to 15,505,731
³ For the business year 2017: Dividend proposal to the Annual General Meeting
⁴ Net debt / Equity