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:

Important indicators of SURTECO SE
(in EUR million)

(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