Surteco Group SE

Earnings Release • Aug 12, 2016

News Details

Corporate | 12 August 2016 07:30

SURTECO SE: SURTECO with dynamic sales in the second quarter

DGAP-News: SURTECO SE / Key word(s): Half Year Results

2016-08-12 / 07:30

The issuer is solely responsible for the content of this announcement.

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Press Release

SURTECO with dynamic sales in the second quarter

– Consolidated sales for the first half year increase by 3 % to EUR 337.7 million

– EBIT up by 22 % to EUR 21.6 million

– Forecast confirmed for 2016: modest sales increase and significant improvement in EBIT to between EUR 38 and EUR 42 million

Buttenwiesen-Pfaffenhofen, 12 August 2016 – SURTECO SE – one of the world’s leading manufacturers of decorative surface materials – is on track to achieve the targets for the year overall after six months of the business year 2016. During the first half of the year, consolidated sales rose by 3 % to EUR 337.7 million (first half year 2015: EUR 327.2 million) in line with expectations. The reason for this growth was the friendly market environment and the gradual increase in production output for decorative paper following the concentration of decorative printing activities. Earnings before interest, tax, depreciation and amortization went up by 11 % to EUR 38.3 million. EBIT underwent a significant improvement by 22 % to EUR 21.6 million (1st half year 2015: EUR 17.7 million). With an almost equal income tax, a currency-related weaker financial result meant that the post-tax profit at EUR 12.0 million was only slightly above the comparable value for the previous year of EUR 11.6 million. However, during the second quarter, this value had more than doubled to EUR 6.7 million (second quarter 2015: EUR 3.2 million). Against the background of the positive business performance, SURTECO is confident that the Group will achieve the whole-year forecast for 2016. Accordingly, consolidated sales are likely to be slightly in excess of the record value achieved in 2015, and a substantial improvement in EBIT to between EUR 38 and 42 million should be generated.

“SURTECO can now increasingly benefit from integration of the Süddekor Group. This has emerged during the course of the second quarter. We are therefore confident that we will reach our target for the year and that EBIT will improve by more than 20 % to between EUR 38 and EUR 42 million,” commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO SE.

Significantly positive free cash flow – balance sheet structure in excellent shape

SURTECO posted free cash flow of EUR 7.8 million in the first half of the year which is below the comparable year-earlier figure of EUR 23.4 million. The latter, however, included proceeds from disposals of property, plant and equipment amounting to around EUR 10 million. The balance sheet structure of SURTECO continues to be in very good shape after the first half year of 2016. The Group succeeded in reducing the net financial debt by 5 % to EUR 120.3 million compared with year-end 2015. The level of debt – defined as the ratio of net debt to equity – came down from 38 % to 36 %. The equity ratio at 48.4 % continues to be very robust. This means that the company is in a very good position to generate the targeted future growth.

Confirmation of the annual targets for sales and earnings

In spite of the current uncertainties surrounding Brexit and the situation in Turkey, SURTECO continues to anticipate sound framework conditions for the second half of the year. Consequently and in view of the positive development in the second quarter, the Board of Management confirms its forecast for the business year 2016. The company therefore continues to anticipate a modest increase in consolidated sales and is assuming that there will be a substantial increase in EBIT in the Strategic Business Unit Paper and a significant rise in EBIT in the Strategic Business Unit Plastics. As announced, a consolidated Group EBIT in the range of EUR 38 to

EUR 42 million (2015: EUR 31.1 million) is likely to be achieved.

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

Contact:

SURTECO SE
Andreas Riedl Chief Financial Officer + 49 (0) 8274/99 88-563	Martin Miller Investor Relations and Press 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 29 % of sales in Germany, 44 % 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 HY-2015	1 HY-2016	Q2- 2015	Q2-2016
Consolidated sales	327.2	337.7	161.2	167.5
– of which Paper	203.4	209.0	99.7	102.2
– of which Plastics	123.8	128.7	61.5	65.3
Foreign sales in %	72	72	73	73
EBITDA	34.6	38.3	15.7	19.4
EBITDA margin in %	10.6	11.3	9.7	11.6
EBIT	17.7	21.6	7.4	11.2
EBIT marge in %	5.4	6.4	4.6	6.7
EBT	16.8	17.2	4.7	10.0
Consolidated net profit	11.6	12.0	3.2	6.7
Earnings per share in EUR 1	0.75	0.78	0.20	0.43

	31/12/2015	30/06/2016	Variation
Balance sheet total	656.1	684.2	+4 %
Equity	334.9	331.3	-1 %
Net debt	126.6	120.3	-5 %
Level of debt in % 2	38	36	-2 pts.
Equity ratio in %	51.0	48.4	-2.6 pts.
Employees	2,695	2,679	-1 %

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

(2) Net debt / Equity

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2016-08-12 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