SURTECO SE, DE0005176903

SURTECO SE, DE0005176903

14.11.2016 - 07:34:57

SURTECO SE: SURTECO generates expected increase in earnings after nine month

Press Release

SURTECO generates expected increase in earnings after nine months

- Group sales improved by EUR 7 million to EUR 490.9 million

- EBIT increases by 28 % to EUR 30.6 million

- Focus firmly on forecast for the full year 2016

Buttenwiesen-Pfaffenhofen, 14 November 2016 - SURTECO SE - one of the world's leading manufacturers of decorative surface materials - has posted a robust operating development after nine months of the business year 2016. Although the Group had to overcome some difficult framework conditions, Group sales improved by EUR 7.0 million to EUR 490.9 million (nine months 2015: EUR 483.9 million). Growth in export sales exerted a noticeably positive impact. In view of the good utilization of capacities and significantly lower one-off expenses, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 12 % to EUR 55.6 million after nine months. EBIT rose by 28 % to EUR 30.6 million (nine months 2015: EUR 24.0 million). Consolidated profit increased by 18 % to EUR 16.8 million. Extraordinary currency gains in the financial result of the previous year proved an obstacle to an even bigger increase.

"Powered by further buoyant demand from abroad, we are entitled to be well satisfied after nine months. The growth in EBIT of more than 25 % achieved so far means that we are on course to meet our targets for the year," commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO SE.

Unchanged good balance sheet quality

The balance sheet structure of SURTECO continues to be extremely healthy. Net financial debt at EUR 126.3 million was slightly below the value at year-end 2015. The level of debt - defined as the ratio of net financial debt to equity - continues unchanged at 38 %. The equity ratio reached a solid 49.5 % on 30 September 2016. The free cash flow amounted to EUR 13.5 million after the first three quarters of 2016.

Annual targets for sales and earnings continue to be the firm focus

Although the forecasts for the market and sector environment are reserved for the remainder of the business year, the Board of Management reaffirmed its forecasts subject to the conditions of continued stable raw materials prices and exchange rates. Group sales are therefore projected to increase to slightly above the year-earlier value (EUR 638.4 million). EBIT for the group is likely to be in the middle or lower range of the forecast span of EUR 38 to 42 million and as notified should therefore be substantially above the year-earlier value of EUR 31.1 million. EBIT of the Strategic Business Unit Paper is therefore likely to rise substantially and EBIT of the Strategic Business Unit Plastics should rise significantly.

You can find the report for the first three quarters of 2016 and other information on SURTECO SE on the Internet by going to www.surteco.com.

Contact:

SURTECO SE Andreas Riedl Martin Miller Chief Financial Officer Investor Relations and Press + 49 (0) 8274/99 88-563 Office + 49 (0) 8274/99 88-508 Internet www.surteco.com Email ir@SURTECO.com Fax + 49 (0) 8274/99 88-515

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. 2,700 and manufactures at 20 sites on four continents, currently generating approximately 28 % 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, 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)

Q 1-3 2015 Q 1-3 2016 Q3 2015 Q3 2016 Consolidated sales 483.9 490.9 156.7 153.2 - of which Paper 298.7 298.4 95.4 89.4 - of which Plastics 185.2 192.5 61.4 63.8 Foreign sales in % 72 72 72 73 EBITDA 49.8 55.6 15.2 17.3 EBITDA margin in % 10.3 11.3 9.7 11.3 EBIT 24.0 30.6 6.3 9.0 EBIT marge in % 5.0 6.2 4.0 5.9 EBT 20.0 25.0 3.3 7.8 Consolidated net 14.2 16.8 2.5 4.8 profit Earnings per share 0.91 1.08 0.16 0.31 in EUR1

31/12/2015 30/09/2016 Variation Balance sheet total 655.7 676.0 +3 % Equity 334.4 334.4 - Net debt 126.6 126.3 +-0 % Level of debt in % 2 38 38 +-0 pts. Equity ratio in % 51.0 49.5 -1.5 pts. Employees 2,695 2,715 +1 %

(1) Based on an number of shares amounting to 15,505,731

(2) Net debt / Equity

14.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Language: English Company: SURTECO SE Johan-Viktor-Bausch-Str. 2 86647 Buttenwiesen-Pfaffenhofen Germany Phone: +49 (0)8274 99 88-0 Fax: +49 (0)8274 99 88-5 05 E-mail: ir@surteco.com Internet: www.surteco.com ISIN: DE0005176903 WKN: 517 690 Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange End of News DGAP News Service

518783 14.11.2016

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