Quarterly Report • May 15, 2018
Quarterly Report
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1 January to 31 March
SURTECO GROUP
Sales revenues 169.7 186.7 +10
of which
Germany
Foreign
EBITDA
EBITDA margin in %
EBIT
EBIT margin in %
EBT 8.9 11.0 +23
Consolidated net profit 6.2 8.0 +28
Earnings per share in € 0.40 0.51 +28
Number of shares 15,505,731 15,505,731
Net financial debt in € million 126.3 205.2 +62
Level of debt in % 36 59 +23 pts.
Equity ratio in % 51.1 40.9 -10.2 pts.
Number of employees 2,871 3,331 +16
Net financial debt in € million 190.0 205.2 +8
Level of debt in % 54 59 +5 pts.
Equity ratio in % 41.4 40.9 -0.5 pts.
Number of employees 3,295 3,331 +1
| Δ % | 31/3/2018 | 31/12/2017 |
|---|---|---|
| +8 | 205.2 | 190.0 |
| +5 pts. | 59 | 54 |
| -0.5 pts. | 40.9 | 41.4 |
| +1 | 3,331 | 3,295 |
Equity ratio in % 51.1 40.9 -10.2 pts. Number of employees 2,871 3,331 +16
The operating development of SURTECO correlates with the general economic situation in the individual country regions because the latter exert a direct impact on acquisition and investment affinity and therefore on the economic performance of our customers. When the Probos Group was taken over in 2017, the sales markets of Latin America, in particular Brazil, increased in importance. The wood-processing and furniture industry are predominant in the customer sectors. Furthermore, the Group supplies a number of other industries including the caravan industry through the British Nenplas Group purchased in 2016 and the cruise ship sector through its Swedish subsidiary Gislaved.
The International Monetary Fund (IMF) predicted another year of sound growth in 2018 for the global economy. In their latest forecast report published in April 2018, the experts predict global economic growth of 3.9 %. This indicates that the developed economies will see stable upward development of 2.5 %. The economies in the threshold markets and developing economies can expect a dynamic rise in economic output of 4.9 %.
Driven by the latest tax reform, the US economy is expected to expand by 2.9 %, while the eurozone is likely to undergo more modest growth by 2.4 %. This positive trend will be powered by all the important EU countries: Germany (+2.5 %), France (+2.1 %), Italy (+1.5 %) and Spain (+2.8 %). The IMF maintains that although Brexit will increasingly exert a negative impact in the United Kingdom, the country is still likely to post sound growth with an increase of 1.6 %. The economies in Central and Eastern Europe are likely to post robust growth of 4.3 % this year, although they will not be able to sustain the level reached in the year 2017 (+5.8 %). China will again play a dominant role within the BRIC countries by posting an increase in growth of 6.6 %. Brazil will be able to increasingly break out of the recent recession with growth of +2.3 %. The same applies to Russia (+1.7 %), even though sanctions imposed by the West will continue to inhibit economic growth.
During the first quarter of 2018, the sales revenues of the SURTECO Group went up by 10 % compared with the equivalent year-earlier period to € 186.7 million (2017: € 169.7 million). With exchange rates at the level of the previous year, sales revenues rose to around € 193 million. The sales of the Strategic Business Unit Paper were slightly below the year-earlier value, while the plastics line succeeded in significantly increasing its sales revenues essentially on account of the Portuguese Probos Group acquired in June 2017. Business in the domestic market rose by 6 % to € 49.0 million (2017: € 46.3 million) in the months from January to March 2018 while the rest of Europe was able to improve sales by 17 %. A countervailing development emerged on the American
continent. While sales revenues eased by 23 % primarily on account of exchange rates, sales in South America increased fivefold owing to the acquisition of the Probos companies. In Australia, sales went up by 2 % and in Asia by 31 % compared with the year-earlier period. Overall, € 137.7 million (2017: € 123.4 million) were generated abroad. The foreign sales ratio increased from 72.7 % in the previous year to 73.8 % in the first quarter of 2018.
The sales development of the individual product groups in the Strategic Business Unit Paper proved volatile in the first quarter of 2018. The business with decorative printing increased by 3 % compared with the year-earlier value at the beginning of 2018. Sales revenues with fully impregnated finish foils (+6 %), pre-impregnated products (+1 %) and in particular with release papers (+30 %) increased compared with the equivalent year-earlier quarter. By contrast, the business with melamine edgebandings eased by 5 % and with impregnates by 10 %. Overall, the paper line generated sales revenues amounting to € 95.8 million (2017: € 97.0 million) in the first quarter of 2018. Sales revenues of € 25.1 million were attributable to Germany after € 24.4 million in the previous year (+3 %). In the Rest of Europe, sales rose by 9 % and in Asia and Australia – in each case from a relatively low initial position – by 46 % and 48 % respectively. The reduction in business in North America amounting to 29 % reflected negative currency effects, shifts in product mix, as well as restrained demand from a number of customers. Overall, foreign sales at € 70.8 million were below the year-earlier value of € 72.5 million on account of negative currency effects amounting to € 2.7 million.
In the first quarter of 2018, the plastics line increased sales by 25 % to the current level of € 90.9 million after € 72.8 million in the year-earlier period. In particular, the business with plastic edgebandings rose by 42 % compared with the year-earlier period during the quarter under review. This is essentially due to the acquired Probos Group with production locations in Portugal and Brazil. However, gains were also made in the product groups not affected by the acquisition. Sales with plastic foils and skirtings therefore increased in each case by 5 % and with technical extrusions (profiles) by 6 %. Only the area of roller-shutter systems fell back by 9 % compared with the previous year. The sales in Germany increased by 9 % to € 23.9 million (2017: € 21.9 million). In the Rest of Europe, sales rose by 29 % and in Asia by 20 %. The business in South America increased sevenfold acquisition-related, whereas business in North America posted a fall of 10 % also due to negative currency effects. Sales revenues in Australia remained stable at the year-earlier level. Overall, foreign sales revenues at € 67.0 million were 32 % above the year-earlier value of € 50.9 million. Currency effects of € 3.4 million prevented a much stronger rise in sales in the plastics line.
The purchase prices for the technical raw papers used in the Strategic Business Unit Paper rose significantly at the beginning of 2018 owing to price increases for important intermediate products such as cellulose and titanium dioxide. The prices for virtually all chemical additives also increased significantly in the first quarter of 2018. In the Strategic Business Unit
Plastics, the prices for the raw materials ABS (acrylonitrile butadiene styrene) and PMMA (polymethyl methacrylate) in particular were above the anticipated values. The accumulated cost of materials ratio of the SURTECO Group therefore rose from 47.8 % to 48.8 % in the months from January to March. Furthermore, the Probos acquisition increased the overall cost of materials from € 80.5 million to € 91.4 million. The personnel expenses also went up on account of the external growth from 43.9 million in the year-earlier period to € 46.7 million. The personnel expenses ratio fell from 26.0 % in the first quarter of 2017 to 24.9 % in 2018. Other operating expenses at € 26.9 million were € 1.6 million above the year-earlier value of € 25.3 million and the ratio as a function of the total output improved from 15.0 % to 14.3 %.
The total output of the SURTECO Group at +11 % rose rather more significantly than the sales revenues and amounted to € 187.5 million in the first quarter of the year after € 168.6 million in the previous year. After taking account of the expense items amounting to a total of € 165.0 million (2017: € 149.7 million) and the other operating income amounting to € 1.0 million (2017: € 0.8 million), the SURTECO Group generated earnings before financial result, income tax and depreciation and amortization (EBITDA) of € 23.5 million (2017: € 19.6 million). The EBITDA margin improved from 11.6 % in the year-earlier period to 12.6 %. Depreciation and amortisation increased primarily on account of the takeover of the Probos Group including the purchase price allocation (PPA) of € -8.9 million in the previous year to € -10.1 million in the first quarter of 2018. Earnings before financial result and income tax (EBIT) were therefore € 13.4 million after € 10.7 million in the previous year (+25 %). Primarily owing to exchange rate effects from the valuation on the balance sheet date, the financial result at € -2.4 million was above the year-earlier value of € -1.8 million. Earnings before income tax (EBT) at € 11.0 million accordingly increased by 23 % compared with the year-earlier value of € 8.9 million. If income tax amounting to € -2.9 million (2017: € -2.7 million) is deducted and taking into account non-controlling interests, an increase in consolidated net profit of 28 % to € 8.0 million (2017: € 6.2 million) results. Based on an unchanged volume of 15,505,731 no-par-value shares, earnings per share of € 0.51 (2017: € 0.40) were generated.
In the first quarter of 2018, EBIT of the Strategic Business Unit Paper at € 7.1 million was below the year-earlier value of € 7.6 million primarily owing to higher prices for raw materials and shifts in the product mix. Conversely in the Strategic Business Unit Plastics, EBIT increased from € 5.4 million to € 8.2 million thanks to the Probos acquisition and to organic growth.
The balance sheet total of the SURTECO Group rose slightly by 2 % on 31 March 2018 to € 856.4 million (31 December 2017: € 842.6 million). On the assets side of the balance sheet, trade accounts receivable went up by € 32.0 million to € 89.8 million compared with 31 December 2017, whereas cash and cash equivalents came down by € 16.0 million to € 117.4 million. This is attributable to reduced factoring from January 2018. Overall, current assets increased from € 326.2 million at year-end 2017 to € 342.9 million on the balance sheet date of the first quarter of 2018. Non-current assets decreased slightly from € 516.4 million to € 513.5 million. On the liabilities side, current liabilities went up to € 116.0 million on 31 March 2018 (31 December 2017: € 106.4 million) essentially due to a rise in trade accounts payable (€ 69.7 million on the balance sheet date for the quarter after € 63.2 million at year-end 2017) and on account of higher other current financial liabilities amounting to € 29.7 million after € 26.2 million. Non-current liabilities at € 390.5 million on 31 March 2018 only underwent a slight rise compared with 31 December 2017 (€ 386.9 million). Equity at € 349.9 million was approximately at the level of the annual financial statements for 2017. Owing to the increased balance sheet total, the equity ratio of 41.4 % on 31 December 2017 eased slightly to 40.9 % on 31 March 2018. Mainly on account of the effects described above, the net financial debt rose to € 205.2 million (31 December 2017: € 190.00 million) and the level of debt (gearing) therefore increased from 54 % to 59 %. The increased business volume and the change in factoring activity exerted an impact on the change in net assets and liabilities, and hence on the cash flow derived from current business activities. Consequently, the latter at € -3.7 million was below the year-earlier value of € 16.8 million. If the cash flow from investment activities amounting to € -9.2 million (2017: € -6.1 million) is deducted, free cash flow of € -12.9 million results after € 10.7 million in the year-earlier period.
| € million | 1/1/-31/3/ 2017 |
1/1/-31/3/ 2018 |
|---|---|---|
| Cash flow from current business operations |
16.8 | -3.7 |
| Purchase of property, plant and equipment |
-5.8 | -9.0 |
| Purchase of intangible assets |
-0.3 | -0.4 |
| Dividend received | 0.0 | 0.2 |
| Cash flow from investment activities |
-6.1 | -9.2 |
| Free cash flow | 10.7 | -12.9 |
SURTECO SE with its Strategic Business Units Plastics and Paper is exposed to a large number of risks on account of global activities and intensification of competition. The detailed description of the Risk Management System is provided in the Risk and Opportunities Report given in our Annual Report 2017. The identified individual risks are also allocated to damage and probability classes on account of their expected gross financial burden to EBT for the current and subsequent years on the basis of the following tables.
| Damage class |
Qualitative | Quantitative |
|---|---|---|
| 1 | Minor | > € 0.5-0.75 million |
| 2 | Moderate | > € 0.75-1.5 million |
| 3 | Major | > € 1.5-3.0 million |
| 4 | Threat to existence as a going concern |
> € 3.0 million |
| Probability class |
Qualitative | Quantitative |
| 1 | Slight | 0 % - 24 % |
| 2 | Moderate | 25 % - 49 % |
| 3 | Likely | 50 % - 74 % |
| 4 | Very likely | 75 % - 100 % |
In the months January to March 2018, two new market risks, one procurement risk and a currency risk were identified in the Strategic Business Unit Paper. The market risks were assigned to damage class 2 and probability class 3 and 4 respectively. The procurement risk was identified in damage class 2 and probability class 4, and the currency risk in damage class 1 and probability class 4. In the Strategic Business Unit Plastics, one further market risk was identified compared with year-end 2017 in damage class 2 and probability class 2.
The Board of Management is still assuming that sales revenues for the SURTECO Group will be in the range from € 725 million to € 750 million. In this scenario, sales for the Strategic Business Unit Paper are likely to rise slightly and the sales of the Strategic Business Unit Plastics – including the Probos Group – look set to increase significantly. Furthermore, the EBIT of the Strategic Business Unit Paper is projected to undergo a significant increase, whereas EBIT of the Strategic Business Unit Plastics is expected to rise substantially compared with 2017. The consolidated EBIT for the SURTECO Group is expected to be in the range between € 49 million and € 53 million.
During the first quarter of 2018, the SURTECO share was unable to entirely shake off the uncertainties in the capital markets relating to concerns about rising interest rates and the threat of an impending global trade war. While the leading German DAX index posted a drop of 6 %, SURTECO shares only fell back by around 4 %. This meant that after the exceptionally successful year on the stock exchange in 2017, when shareholders were able to enjoy a rise of 17 % including the dividend, the share paused to catch its breath. On 2 January, SURTECO started the year at € 26.40 and reached its high for the quarter at € 28.55 on 19 January. The generally weaker and increasingly more volatile stock exchanges led to profit-taking and the price eased to € 24.25. The announcement of preliminary annual figures for 2017 and the associated confirmation of the reliable forecasts previously made ensured that the SURTECO share ended the quarter on 29 March at a price of € 25.20.
At the end of March 2018, the market capitalization based on an unchanged number of shares amounting to some 15.5 million no-par-value shares was € 390.7 million. The free float remains unchanged at around 44.5 % while the other shares continue to be in the hands of the company's founding shareholders.
| Number of shares | 15,505,731 |
|---|---|
| Free float in % | 44.5 |
| Price on 2/1/2018 in € | 26.40 |
| Price on 29/3/2018 in € | 25.20 |
| High in € | 28.55 |
| Low in € | 24.25 |
| Market capitalization as at 29/3/2018 in € million |
390.7 |
SURTECO GROUP
Sales revenues 169,722 186,748
Changes in inventories -2,265 -495
Own work capitalized 1,146 1,252
Cost of materials -80,532 -91,411
Personnel expenses -43,891 -46,691
Other operating expenses -25,289 -26,900
Other operating income 756 952
Depreciation and amortization -8,907 -10,050
Financial result -1,840 -2,435
Income tax -2,670 -2,928
Of which
Owners of the parent (consolidated net profit) 6,212 7,980
Non-controlling interests 18 62
Basic and diluted earnings per share in € 0.40 0.51
Number of shares 15,505,731 15,505,731
| 1/1/-31/03/ | 1/1/-31/03/ |
|---|---|
| 2018 | 2017 |
| 186,748 | 169,722 |
| -495 | -2,265 |
| 1,252 | 1,146 |
| 187,505 | 168,603 |
| -91,411 | -80,532 |
| -46,691 | -43,891 |
| -26,900 | -25,289 |
| 952 | 756 |
| 23,455 | 19,647 |
| -10,050 | -8,907 |
| 13,405 | 10,740 |
| -2,435 | -1,840 |
| 10,970 | 8,900 |
| -2,928 | -2,670 |
| 8,042 | 6,230 |
| 7,980 | 6,212 |
| 62 | 18 |
| 0.51 | 0.40 |
| 15,505,731 | 15,505,731 |
SURTECO GROUP
€ 000s 1/1/-31/03/
Net income 6,230 8,042
Components of comprehensive income not to be reclassified to the income statement 0 0
Net gains/losses from hedging of net investment in a foreign operation 48 -534
Exchange differences for translation of foreign operations 1,547 -2,354
Financial instruments available-for-sale 223 0
Components of comprehensive income that may be reclassified to the income statement 1,818 -2,888
Other comprehensive income for the period 1,818 -2,888
Comprehensive income 8,048 5,154
Owners of the parent (consolidated net profit) 8,032 5,092 Non-controlling interests 16 62
| 1/1/-31/03/ 2018 |
1/1/-31/03/ 2017 |
|---|---|
| 8,042 | 6,230 |
| 0 | 0 |
| -534 | 48 |
| -2,354 | 1,547 |
| 0 | 223 |
| -2,888 | 1,818 |
| -2,888 | 1,818 |
| 5,154 | 8,048 |
| 5,092 | 8,032 |
| 62 | 16 |
SURTECO GROUP
Cash and cash equivalents 133,373 117,402
Trade accounts receivable 57,826 89,793
Receivables from affiliated enterprises 731 961
Inventories 119,732 122,442
Current income tax assets 1,377 1,154
Other current non-financial assets 9,457 6,790
Other current financial assets 3,666 4,378
Currents assets 326,162 342,920
Property, plant and equipment 258,208 257,802
Intangible assets 66,676 64,674
Goodwill 163,303 162,640
Investments accounted for using the equity method 1,988 2,090
Financial assets 830 830
Other non-current non-financial assets 69 0
Other non-current financial assets 6,333 6,529
Deferred taxes 19,027 18,934
Non-current assets 516,434 513,499
please turn over
| 31/03/2018 | 31/12/2017 |
|---|---|
| 117,402 | 133,373 |
| 89,793 | 57,826 |
| 961 | 731 |
| 122,442 | 119,732 |
| 1,154 | 1,377 |
| 6,790 | 9,457 |
| 4,378 | 3,666 |
| 342,920 | 326,162 |
| 257,802 | 258,208 |
| 64,674 | 66,676 |
| 162,640 | 163,303 |
| 2,090 | 1,988 |
| 830 | 830 |
| 69 | |
| 6,529 | 6,333 |
| 18,934 | 19,027 |
| 513,499 | 516,434 |
| 856,419 | 842,596 |
SURTECO GROUP
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|---|
| Short-term financial liabilities |
| Trade accounts payable |
| Liabilities to affiliated companies |
| Income tax liabilities |
| Short-term provisions |
| Other current non-financial liabilities |
| Other current financial liabilities |
| Current liabilities |
Long-term financial liabilities 317,662 316,790
Pensions and other personnel-related obligations 12,814 12,816
Other non-current non-financial liabilities 41 39
Other non-current financial liabilities 4,372 4,431
Deferred taxes 52,043 56,390
Non-current liabilities 386,932 390,466
Capital stock 15,506 15,506
Capital reserve 122,755 122,755
Retained earnings 181,861 200,692
Consolidated net profit 26,192 7,980
Non-controlling interests 2,922 2,984
Equity 349,236 349,917
| 31/12/2017 | 31/03/2018 |
|---|---|
| 5,656 | 5,769 |
| 63,174 | 69,715 |
| 3 | 0 |
| 3,154 | 3,855 |
| 3,966 | 3,611 |
| 4,241 | 3,426 |
| 26,234 | 29,660 |
| 106,428 | 116,036 |
| 317,662 | 316,790 |
| 12,814 | 12,816 |
| 41 | 39 |
| 4,372 | 4,431 |
| 52,043 | 56,390 |
| 386,932 | 390,466 |
| 15,506 | 15,506 |
| 122,755 | 122,755 |
| 181,861 | 200,692 |
| 26,192 | 7,980 |
| 346,314 | 346,933 |
| 2,922 | 2,984 |
| 349,236 | 349,917 |
| 842,596 | 856,419 |
SURTECO GROUP
€ 000s 1/1/-31/03/
Reconciliation to cash flow from current business operations 11,228 14,013
Internal financing 20,128 24,983
Changes in assets and liabilities (net) -3,299 -28,667
Cash flow from current business operations 16,829 -3,684
Cash flow from investment activities -6,090 -9,232
Cash flow from financial activities -3,324 -2,518
Change in cash and cash equivalents 7,415 -15,434 Cash and cash equivalents
1 January 60,416 133,373
Effect of changes in exchange rate on cash and cash equivalents -287 -537
31 March 67,544 117,402
| 1/1/-31/03/ 2018 |
1/1/-31/03/ 2017 |
|---|---|
| 10,970 | 8,900 |
| 14,013 | 11,228 |
| 24,983 | 20,128 |
| -28,667 | -3,299 |
| -3,684 | 16,829 |
| -9,232 | -6,090 |
| -2,518 | -3,324 |
| -15,434 | 7,415 |
| 133,373 | 60,416 |
| -537 | -287 |
| 117,402 | 67,544 |
SURTECO GROUP
| € 000s | Capital stock |
Capital reserve |
Fair value measure ment for financial instru ments |
|---|---|---|---|
| 1 January 2017 | 15,506 | 122,755 | 86 |
| Net income | 0 | 0 | 0 |
| Other comprehensive income |
0 | 0 | 223 |
| Comprehensive income | 0 | 0 | 223 |
| Allocation to retained earnings |
|||
| Changes in equity | 0 0 |
0 0 |
0 0 |
| 31 March 2017 | 15,506 | 122,755 | 309 |
| 1 January 2018 | 15,506 | 122,755 | 0 |
| Net income | 0 | 0 | 0 |
| Other comprehensive | |||
| income Comprehensive income |
0 0 |
0 0 |
0 0 |
| Allocation to retained | |||
| earnings | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 |
| Changes in equity | 0 | 0 | 0 |
| 31 March 2018 | 15,506 | 122,755 | 0 |
| Retained earnings | Consoli dated net |
Non-con trolling |
Total | |||
|---|---|---|---|---|---|---|
| Other compre hensive income |
Currency trans lation adjust ments |
Other retained earnings |
profit | interests | ||
| -1,977 | -620 | 183,947 | 23,867 | 2,988 | 346,552 | |
| 0 | 0 | 0 | 6,212 | 18 | 6,230 | |
| 0 | 1,597 | 0 | 0 | -2 | 1,818 | |
| 0 | 1,597 | 0 | 6,212 | 16 | 8,048 | |
| 0 | 0 | 23,867 | -23,867 | 0 | 0 | |
| 0 | 0 | 23,867 | -23,867 | 0 | 0 | |
| -1,977 | 977 | 207,814 | 6,212 | 3,004 | 354,600 | |
| -1,923 | -8,768 | 192,552 | 26,192 | 2,922 | 349,236 | |
| 0 | 0 | 0 | 7,980 | 62 | 8,042 | |
| 0 | -2,888 | 0 | 0 | 0 | -2,888 | |
| 0 | -2,888 | 0 | 7,980 | 62 | 5,154 | |
| 0 | 0 | 26,192 | -26,192 | 0 | 0 | |
| 0 | 0 | -4,473 | 0 | 0 | -4,473 | |
| 0 | 0 | 21,719 | -26,192 | 0 | -4,473 | |
| -1,923 | -11,656 | 214,271 | 7,980 | 2,984 | 349,917 |
by Strategic Business Units
SURTECO GROUP
€ 000s SBU
1/1/-31/3/2018 External sales 95,843 90,905 0 186,748 Internal sales 193 1 -194 0
Total sales 96,036 90,906 -194 186,748
1/1/-31/3/2017 External sales 96,965 72,757 0 169,722 Internal sales 228 2 -230 0
Total sales 97,193 72,759 -230 169,722
| € 000s | SBU SBU Recon SURTECO |
|---|---|
| 1/1/-31/3/2018 | Paper Plastics ciliation |
| EBIT | 7,088 8,171 -1,854 |
| 1/1/-31/3/2017 | |
| EBIT | 7,562 5,434 -2,256 |
| Recon ciliation |
SBU Plastics |
SBU Paper |
|---|---|---|
| 0 | 90,905 | 95,843 |
| 1 -194 |
193 | |
| -194 | 90,906 | 96,036 |
| 0 | 72,757 | 96,965 |
| 2 -230 |
228 | |
| -230 | 72,759 | 97,193 |
| Recon ciliation |
SBU Plastics |
SBU Paper |
| -1,854 | 8,171 | 7,088 |
SURTECO GROUP
Germany 46,337 49,005
Rest of Europe 76,383 89,086
America 34,656 33,661
Asia, Australia, Others 12,346 14,996
Germany 24,446 25,082
Rest of Europe 46,490 50,544
America 23,526 16,682
Asia, Australia, Others 2,503 3,535
| Germany |
|---|
| Rest of Europe |
| America |
| Asia, Australia, Others |
| 1/1/-31/3/2017 | 1/1/-31/3/2018 |
|---|---|
| 46,337 | 49,005 |
| 76,383 | 89,086 |
| 34,656 | 33,661 |
| 12,346 | 14,996 |
| 169,722 | 186,748 |
| 1/1/-31/3/2017 | 1/1/-31/3/2018 |
|---|---|
| 24,446 | 25,082 |
| 46,490 | 50,544 |
| 23,526 | 16,682 |
| 2,503 | 3,535 |
| 96,965 | 95,843 |
| 1/1/-31/3/2017 | 1/1/-31/3/2018 |
|---|---|
| 21,891 | 23,923 |
| 29,893 | 38,542 |
| 11,130 | 16,979 |
| 9,843 | 11,461 |
| 72,757 | 90,905 |
The consolidated financial statements of the SURTECO Group for the period ended 31 December 2017 were prepared in accordance with the regulations of the International Financial Reporting Standards (IFRS) as they were adopted by the EU, in the version valid on the closing date for the accounting period. As a matter of principle, the same accounting and valuation principles were used for the preparation of this interim report as at 31 March 2018 as in the preparation of the consolidated financial statements for the business year 2017.
The objective and purpose of interim reporting is to provide an information tool building on the consolidated financial statements and we therefore refer to the standards and interpretations applied in the valuation and accounting methods used in the preparation of the consolidated statements of the SURTECO Group for the period ending 31 December 2017 for further information. The comments included in this report also apply to the quarterly financial statements and the half-yearly financial statements for the year 2018 if no explicit reference is made to them.
The regulations of the International Accounting Standard (IAS) 34 "Interim Financial Reporting" for abbreviated interim financial statements and the German Accounting Standard (DRS) 16 "Interim Reporting (Zwischenberichterstattung)" were applied for this interim report.
Where the standards adopted by the IASB had to be applied from 1 January 2018, they were taken into account in this interim report if they exert effects on the SURTECO Group. The preparation of the interim report requires assumptions and estimates to be made by the management. This means that there may be deviations between the values reported in the interim report and the actual values achieved. The mandatory standards and interpretations to be applied for the first time in the business year as from 1 January 2018 were taken into account when drawing up the interim financial statements. The application of these IFRS
regulations exerted no material effect on the net assets, financial position and results of the Group. Furthermore, reference is made to the explanations on the applicable standards provided in the notes to the consolidated financial statements on 31 December 2017.
The overall activities of the SURTECO Group are typically not subject to significant seasonal conditions.
The Group currency is denominated in euros (€). All amounts are specified in thousand euros (€ 000s), unless otherwise indicated.
We draw your attention to the fact that differences may occur when using rounded amounts and percentages on account of commercial rounding.
These interim financial statements and the interim report have not been audited and they have not been subject to an audit review by an auditor.
As at 31 March 2018, the SURTECO Group interim consolidated financial statements include SURTECO SE and all the major companies which are material for the net assets, financial position and results of operations in which SURTECO SE holds a controlling interest.
During the period under review, the companies of the Group undertook no business transactions with related parties that could have exerted a material influence on the net assets, financial position and results of operations of the Group.
After 31 March 2018 up to the date when this report went to press, there were no events or developments that would be likely to lead to a significant change in the recognition or valuation of the individual assets or liabilities.
Cost of materials ratio in % Cost of materials/Total output
Earnings per share in € Consolidated net profit/Number of shares
EBIT Earnings before financial result and income tax
EBIT margin in % EBIT/Sales revenues
EBITDA Earnings before financial result, income tax and
EBITDA margin in % EBITDA/Sales revenues
Equity ratio in % Equity/Balance sheet total
Gearing (debt level) in % Net debt/Equity
Market capitalization in € Number of shares x Closing price on the balance
Net debt in € Short-term financial liabilities
36
Personnel expense ratio in % Personnel costs/Total output
Working capital in € Trade accounts receivable + Inventories
Cost of materials ratio in % Cost of materials/Total output
Earnings per share in € Consolidated net profit/Number of shares
EBIT Earnings before financial result and income tax
EBIT margin in % EBIT/Sales revenues
EBITDA Earnings before financial result, income tax and depreciation and amortization
EBITDA margin in % EBITDA/Sales revenues
Equity ratio in % Equity/Balance sheet total
Gearing (debt level) in % Net debt/Equity
Market capitalization in € Number of shares x Closing price on the balance sheet date
Net debt in € Short-term financial liabilities + Long-term financial liabilities
Personnel expense ratio in % Personnel costs/Total output
Working capital in € Trade accounts receivable + Inventories - Trade accounts payable
28 June 2018 Annual General Meeting
03 July 2018 Dividend payment
14 August 2018 Six-month report January – June 2018
14 November 2018 Nine-month report January – September 2018
28 June 2018 Annual General Meeting
03 July 2018 Dividend payment
14 August 2018 Six-month report January – June 2018
14 November 2018 Nine-month report January – September 2018
Investor Relations and Press Office T: +49 (0)8274/9988-508 F: +49 (0)8274/9988-515 [email protected] www.ir.surteco.com
Johan-Viktor-Bausch-Straße 2 86647 Buttenwiesen-Pfaffenhofen Germany
The paper used for this Interim Report was produced from cellulose sourced from certified forestry companies that operate responsibily and comply with the regulations of the Forest Stewardship Council.
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