Press Release

SURTECO continues dynamic growth

- Consolidated sales increase by 59 % to EUR 470.1 million in the first nine months

- EBITDA increases by 42 % - consolidated net profit up by 56 % on previous year

- Outlook for 2014: sales forecast slightly reduced - profit forecast confirmed

Buttenwiesen-Pfaffenhofen, 14 November 2014 - SURTECO SE - one of the world's leading manufacturers of decorative surface materials - generated growth of 59 % to achieve sales revenues of EUR 470.1 million (nine months 2013: EUR 295.9 million) in the first nine months of the business year 2014. Growth was driven by consolidation of the Süddekor Group, taken over at the end of 2013. The business experienced organic growth of 2.5 %. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 42 % to EUR 57.2 million (nine months 2013: EUR 40.3 million). The pretax result (EBT) increased by 54 % to EUR 27.5 million (nine months 2013: EUR 17.9 million). Against this background, the company confirms the predicted increase in pretax result compared with the value for the previous year (EUR 28.1 million), although it is important to bear in mind that the previous year's result was impacted by a non-operating positive one-off effect of EUR 13.5 million. In view of the general slowdown in economic conditions, the sales target has been adjusted to between EUR 615 million and EUR 625 million.

"Although the overall conditions in the current business year are not favourable, we can be satisfied with the business performance so far. After completing the integration of the Süddekor Group, we are expecting a significant increase in earnings from 2016," according to the Friedhelm Päfgen, Chairman of the Board of Management of SURTECO SE.

Organic growth in both Strategic Business Units

As a result of acquisition, the paper segment posted an increase in sales amounting to 146 % with a rise to EUR 297.7 million. The segment underwent moderate organic growth of 2.1 %. Although sales for the Strategic Business Unit Plastics at EUR 172.4 million fell slightly short of the level for the previous year (EUR 174.8 million), adjusted by the sale of the cladding business, the plastics division also generated growth of 2.7 %. While earnings for the paper segment were significantly above the values for the previous year, the plastics segment remained virtually stable. The disproportionately low increase in earnings per share from EUR 1.12 to EUR 1.24 is due to the increase in the number of shares following the capital increase in November 2013 from 11.1 million to 15.5 million.

Unchanged high level of balance sheet quality, free cash flow significantly up

The equity ratio of 49.6 % was at the level for the close of 2013 (49.7 %). The gearing (level of debt) was reduced slightly to 48 % (end of 2013: 49 %), while the net financial debt at EUR 151.8 million remained at the year-end level for 2013 (EUR 151.2 million). The increased business volume led to an increase in free cash flow by 35 % from EUR 11.6 million to EUR 15.7 million.

Earnings forecast confirmed - sales target slightly adjusted to take account of more difficult framework conditions

SURTECO continues to operate in a difficult environment with the customer focus on the furniture industry. In view of the slowdown being experienced by the European economy in particular and the conflicts in the Ukraine region, the Board of Management has adjusted the previous consolidated sales target from between EUR 630 million and EUR 640 million to between EUR 615 million and EUR 625 million. Nevertheless, the projected increase in pretax result compared with the value for the previous year (EUR 28.1 million) has been confirmed. However, this forecast does not include any restructuring expenses requiring the formation of reserves, which will arise from the merger of the decor printing division. The integration of Süddekor continues to proceed according to plan and the initial synergies will be included in the result from 2015.

You can find the report for the first three quarters 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, Hamburg, Hannover 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) Q1-3 2014: based on 15,505,731 no-par-value shares (including capital increase from December 2013), Q1-3 2013: number of shares: 11,075,522

(2) Net debt / Equity