SURTECO SE: increase in earnings during the first quarter

- Consolidated net profit grows by 28 % to EUR 8.0 million during the first quarter of 2018

- Sales increase by 10 % to EUR 186.7 million on the back of acquisition

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

Buttenwiesen, 15 May 2018 - SURTECO SE, the leading manufacturer of surfaces for the furniture and wood-based materials industry and producer of technical extrusions (profiles), achieved a substantial increase in earnings in the first quarter of 2018. By comparison with the equivalent year-earlier period, consolidated net profit went up by 28 % to EUR 8.0 million (Q1 2017: EUR 6.2 million). The principal driver exerting a positive effect in the Strategic Business Unit Plastics was the acquisition of the Portuguese Probos Group in the middle of 2017. The sales revenues of the SURTECO Group rose by 10% to EUR 186.7 million during the reporting period after EUR 169.7 million in the previous year. If exchange rates were at the year-earlier level, sales revenues would have risen to around EUR 193 million. The earnings before financial result and income tax (EBIT) were EUR 13.4 million (Q1 2017: EUR 10.7 million) from January to March 2018. This represented strong growth of 25 %.

"Our international expansion strategy is paying off. The acquisitions we have made increase our presence in growth markets and they are developing into very gratifying profitability drivers within the Group," commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO SE, in response to the development.

Plastics sector posts significant growth - Paper sector experiences negative burden from raw materials prices

In the first quarter of 2018, the Strategic Business Unit Plastics reported a disproportionate growth in profit. While revenues in the Plastics sector went up by one quarter to EUR 90.9 million (Q1 2017: EUR 72.8 million), primarily as a result of the acquisition of the Probos Group, EBIT of the business line climbed by 52 % to EUR 8.2 million, after EUR 5.4 million in the year-earlier period. By contrast, a brake was put on development in the Business Unit Paper by higher raw materials prices and an unfavourable product mix. Negative currency effects mean that sales in the Paper segment have gone down by 1 % to EUR 95.8 million (Q1-2017: EUR 97.0 million) and EBIT has eased from EUR 7.6 million to EUR 7.1 million.

Robust balance sheet quality

As at the balance sheet date on 31 March 2018, the balance sheet total increased slightly by nearly 2 % to EUR 856.4 million (31 December 2017: EUR 842.6 million). During the reporting period, the equity remained largely unchanged at EUR 349.9 million by comparison with year-end 2017 (31 December 2017: EUR 349.2 million). In relation to the increased balance sheet total, the equity ratio of 41.4 % as at 31 December 2017 came down slightly to 40.9 % on 31 March 2018. Primarily on account of reduced receivables sales (factoring) from January 2018, the net financial debt rose as at the end of March to EUR 205.2 million after EUR 190.0 million at year-end 2017. Accordingly, the level of debt (gearing) stood at 59 % at the end of March and was therefore 5 percentage points above the value on 31 December 2017.

Outlook for 2018: Increase in sales and earnings

SURTECO SE confirms an unchanged outlook for the business year 2018 and continues to work towards significant growth in sales and earnings. Group sales amounting to EUR 689.7 million last year are projected to rise to between EUR 725 and 750 million. The growth is supposed to be achieved by modest organic growth and full-year consolidation of the Probos Group. Earnings before financial result and income tax (EBIT) are projected to be improved from EUR 44.7 million in the previous year to a value between EUR 49 and 53 million in 2018.

You will find the report on the 1st quarter of 2018 and other information about SURTECO SE on the Internet at www.ir.surteco.com.

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Profile of SURTECO
SURTECO SE, Buttenwiesen, 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) Net debt / Equity