Press Release

SURTECO with sales and earnings surge in the first quarter

- Group sales surge 62 % to 160.1 million euros

- EBITDA increases by 65 % to 21.8 million euros

- Optimization of the production network has been launched in the course of integration of SÜDDEKOR - significant synergies expected

- Outlook for 2014: Rise in sales to 630-640 million euros with sustained high profitability

Buttenwiesen-Pfaffenhofen, 15 Mai 2015 - SURTECO SE - one of the world's leading manufacturers of decorative surface materials - benefited significantly in line with expectations from the first-time full consolidation of SÜDDEKOR, taken over at the end of 2013. Group sales rose in the quarter under review by 62 % to 160.1 million euros (Q1 2013: 98.7 million euros). Even on the basis of adjusted figures, SURTECO would have achieved moderate growth. A particular highlight is the fact that the new SURTECO Group has also succeeded in achieving an improved yield even without the forecast synergy effects arising from the takeover and projected to come onstream especially from 2015. The EBITDA margin rose from 13.4 % to 13.6 % with an increase of 65 % in earnings before interest, tax and depreciation and amortization (EBITDA) from 13.2 million euros to 21.8 million euros. Against the background of this improved operating result, the company is confident of achieving the projected targets for 2014 over the remainder of the year.

"We made a good start to the business year 2014 and achieved even better progress than we originally anticipated. The integration of SÜDDEKOR is running according to schedule, the optimization of the production network has been launched and we can look forward to the rest of the year with confidence. Our expectation is for significant growth at our company with an increase in sales to 630-640 million euros," commented Chairman of the Board of Management of SURTECO SE Friedhelm Päfgen.

Both business units post significant improvement in earnings

Since SÜDDEKOR activities are being consolidated in the paper segment, a surge in sales took place here in the first quarter by 149 % to 102.4 million euros (Q1 2013: 41.1 million euros). In the Strategic Business Unit Plastics, sales at 57.7 million euros remained at the level of the previous year, although an increase would have been posted if sales had been adjusted by the activities discontinued in 2013. Double-digit percentage growth in both business units contributed to the increase in earnings for the Group. SURTECO was therefore able to post an increase in profit before tax of 57 % from 6.1 million euros to 9.6 million euros. Profit after tax went up from 69 % to 6.7 million euros (Q1 2013: 4.0 million euros).

Significantly positive free cash flow

The balance sheet structure of SURTECO is extremely sound even after the takeover of SÜDDEKOR with an equity ratio of 48.8 % (end of 2013: 49.7 %). Against the background of the good earnings development, free cash flow also increased to 6.7 million euros (Q1 2013: 3.8 million euros). This increase was partly used to scale back net financial debt from 151.2 million euros on 31 December 2013 to 146.8 million euros on 31 March 2014. Gearing - defined as the ratio of net financial debt to equity - came down accordingly from 49 % to 47%.

Optimism increases for 2014, forecast confirmed - optimization of the production network launched in the course of SÜDDEKOR integration

Although there were no significant positive stimuli originating from the furniture industry as the Group's most important customer in the business year 2014, sales for the Group are likely to increase to between 630 and 640 million euros (2013: 404 million euros) on the back of the acquisition. If stable procurement prices prevail, an increase in the operating result can be anticipated for the SURTECO Group and for the Strategic Business Units. A significant positive free cash flow is projected, which should be used to reduce the level of indebtedness and to make an attractive payout to shareholders.

The integration of SÜDDEKOR is proceeding according to plan. Now that a uniform sales structure has been implemented, SURTECO started on the process of optimizing the production network at the beginning of May. The first stage involved concentrating the Group's decor printing activities at the Buttenwiesen site. Synergies are anticipated here which will exert a positive impact on the consolidated result from the year 2015.

You can find the report for the first quarter 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 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.

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Important indicators of SURTECO SE

(in EUR million)

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

(2) Net debt / Equity