# All surfaces covered
Report for the first three month 2025
1
#### AT A GLANCE
| | Q1 | | |
|--------------------------------|--------------------|--------------------|-----------|
| € million | 1/1/-31/3/<br>2024 | 1/1/-31/3/<br>2025 | Δ % |
| Sales revenue | 222.3 | 222.3 | - |
| EBITDA | 27.6 | 19.5 | -29 |
| EBITDA-margin in % | 12.4 | 8.8 | -3.6 pts. |
| EBITDA adjusted | 27.6 | 26.7 | -3 |
| EBITDA-margin adjusted in % | 12.4 | 12.0 | -0.4 pts. |
| Depreciation and amortization | -15.2 | -15.0 | -2 |
| EBIT | 12.4 | 4.5 | -64 |
| EBIT-margin in % | 5.6 | 2.0 | -3.6 pts. |
| Financial result | -2.6 | -6.5 | +150 |
| EBT | 9.8 | -1.9 | -120 |
| Consolidated net profit / loss | 6.9 | -5.1 | -174 |
| Earnings per share in € | 0.44 | -0.33 | -174 |
| Number of shares | 15,505,731 | 15,505,731 | |
| | 31/3/2024 | 31/3/2025 | Δ % |
|---------------------------------|------------|-----------|-----------|
| Net financial debt in € million | 351.2 | 339.3 | -3.4 |
| Level of debt in % | 87.1 | 85.4 | -1.7 pts. |
| Equity ratio in % | 37.5 | 39.1 | +1.6 pts. |
| Number of employees | 3,694 | 3,726 | +0.9 |
| | | | |
| | 31/12/2024 | 31/3/2025 | Δ % |
| Net financial debt in € million | 339.9 | 339.3 | -0.2 |
Level of debt in % 82.8 85.4 +2.6 pts. Equity ratio in % 41.0 39.1 -1.9 pts. Number of employees 3,732 3,726 -0.2
# Interim Management Report as at 31 March 2025
## Economic report
#### SURTECO GROUP
Against the background of persistent restrained demand, sales revenues of the SURTECO Group during the first quarter of 2025 remained virtually unchanged at € 222.3 million compared with the year-earlier period. The adjusted earnings before financial result, income tax and depreciation and amortization (adjusted EBITDA) of the Group came down by -3 % in the first three months of 2025 to € 26.7 million after € 27.6 million in the previous year. Key influencing factors impacting on earnings were rather higher cost of materials by comparison with the year-earlier quarter, in particular for paper. Reported EBITDA amounted to € 19.5 million after € 27.6 million in the first quarter of 2024. This is made up of provisions for personnel measures in connection with the decision taken during the first quarter of 2025 to discontinue the business with impregnates and footprint optimizations in Edgebands.
#### SURFACES
The Segment Surfaces encompasses all the surface activities of the Group including melamine edgebandings in Europe and South America. The sales of the segment at € 70.7 million were -1 % below the level of the first quarter in 2024 (€ 71.6 million). Adjusted EBITDA for the segment with a value of € 6.8 million in the first quarter of 2025 fell below the year-earlier amount of € 8.1 million. This was primarily due to the increased cost of materials.
#### EDGEBANDS
The Segment Edgebands comprises all the plastic edging activities of the Group in Europe and South America. On the basis of sales amounting to € 39.0 million in the first quarter of 2024, sales at € 36.9 million fell back by -5 % in the first three months of 2025. Adjusted EBITDA at € 6.2 million was also below the year-earlier value of € 7.2 million owing to increased prices for raw materials.
#### PROFILES
The Segment Profiles bundles the activities with technical extrusions (profiles), skirtings and associated products in Europe and South America. Sales for the first three months of 2025 in the amount of € 35.5 million were 2 % above the sales amounting to € 34.7 million in 2024. Adjusted EBITDA at € 4.5 million was slightly below the value of € 4.9 million in the first quarter of 2024.
#### NORTH AMERICA
The Segment North America includes the activities with all the products of the Group in this region. Sales in the divisions of Omnova in Thailand are also allocated to this segment. Sales of the segment increased in the first quarter of 2025 by 4 % to € 68.5 million after sales of € 65.9 million in the previous year. Adjusted EBITDA increased to € 8.8 million after € 7.7 million in the previous year.
#### ASIA / PACIFIC
The Segment Asia / Pacific encompasses business with all product groups in the area of Asia, Australia and Oceania. On the basis of sales amounting to € 11.1 million in the previous year, sales in this segment came down by -4 % to € 10.7 million. Adjusted EBITDA amounted to € 1.4 million after € 1.7 million in the first three months of 2024.
# Net assets, financial positions and results of operations
The balance sheet total of the Group increased slightly from € 1,012.4 million at year-end 2024 to € 1,017.0 million on 31 March 2025. Current assets went up as a result of a rise in trade accounts receivable and higher inventories from € 319.0 million at year-end 2024 to € 340.4 million, while non-current assets eased slightly from € 693.4 million to € 676.6 million. On the liabilities side of the balance sheet, current liabilities increased on the balance sheet date of the first quarter of 2025 to € 180.1 million (31/12/2024: € 154.6 million). Non-current liabilities at € 439.5 million remained stable around the level reached at the end of 2024 (€ 447.3 million) and equity fell to € 397.4 million (31/12/2024: € 410.5 million). The equity ratio went down from 41.0 % at year-end 2024 to 39.1 %. Net financial debt came down slightly from € 339.9 million to € 339.3 million, which led to a level of debt of 85.4 % (31/12/2024: 82.8 %).
| € million | 31/12/2024 | 31/3/2025 |
|-------------------------|------------|-----------|
| ASSETS | | |
| Current assets | 319.0 | 340.4 |
| Non-current assets | 693.4 | 676.6 |
| Balance sheet total | 1,012.4 | 1,017.0 |
| | | |
| LIABILITIES | | |
| Current liabilities | 154.6 | 180.1 |
| Non-current liabilities | 447.3 | 439.5 |
| Equity | 410.5 | 397.4 |
| Balance sheet total | 1,012.4 | 1,017.0 |
### Balance sheet structure of the SURTECO Group
As a result of the lower pre-tax result, the cash flow from current operations in the first quarter of 2025 amounted to € 11.5 million after € 19.0 million in the year-earlier quarter. Less cash flow from investment activities amounting to € -5.9 million in the first quarter of 2025 (2024: € -3.8 million), free cash flow hence amounts to € 5.6 million in the first three months of 2025 after € 15.2 million in the previous year.
| € million<br>1/1/-31/3/<br>2024 | 1/1/-31/3/<br>2025 |
|----------------------------------------------------------------|--------------------|
| Cash flow from current business operations<br>19.0 | 11.5 |
| Purchase of property, plant and equipment<br>-4.2 | -5.8 |
| Purchase of Intangible assets<br>0.0 | -0.3 |
| Proceeds from disposal of property, plant and equipment<br>0.4 | 0.2 |
| Cash flow from Investment activity<br>-3.8 | -5.9 |
| Free cash flow<br>15.2 | 5.6 |
### Calculation of free cash flow
The total output of the Group went up by 1 % in the first quarter of 2025 compared with the previous year to € 228.5 million (Q1-2024: € 225.6 million). The cost of materials increased from € -108.7 million in the previous year to € -112.1 million owing to increased costs of raw materials. In relation to the total output, the ratio went up from 48.2 % in the previous year to 49.1 %. Personnel expenses increased from € -57.5 million in the previous year to € -66.5 million in the first quarter of 2025. This is essentially due to extraordinary expenses for personnel measures following discontinuation of the impregnates business and footprint optimizations in Edgebands. In relation to the total output, personnel expenses increased to 29.1 % (2024: 25.5 %). Other operating expenses at € -31.8 million fell slightly below the year-earlier level (€ -33.0 million). Proportionally, they dipped from 14.6 % to 13.9 %. Overall, EBITDA therefore came down to € 19.5 million after € 27.6 million in the previous year. Adjusted by one-off expenses in personnel expenses, adjusted EBITDA amounted to € 26.7 million in the first quarter of 2025 after € 27.6 million in the year-earlier period. Depreciation and amortization amounted to € -15.0 million after € -15.2 million at the year-earlier level. This results in an EBIT for the Group of € 4.5 million (2024: € 12.4 million). Subject to the strong influence of foreign exchange rate effects, the financial result amounted to € -6.5 million after € -2.6 million in the previous year. Hence, the pre-tax result came down to € -1.9 million after € 9.8 million in the previous year. After deduction of income tax amounting to € -3.2 million (2024: -3.0 million), the net loss amounted to € -5.1 million in the first quarter of 2025 after net income for the year amounting to € 6.8 million in in 2024.
### Outlook for the business year 2025
Business performance during the first quarter of 2025 is within the anticipated parameters. Consequently, the forecast in the Annual Report 2024 is confirmed. Group sales for the full year 2025 should therefore be in the range between € 850 million and € 900 million. Adjusted EBITDA for the Group at year-end is expected to lie between € 85 million and € 105 million.
# Income Statement for the period 1 January to 31 March 2025
| | Q1 | |
|---------------------------------------------|------------|------------|
| € 000s | 1/1/-31/3/ | 1/1/-31/3/ |
| | 2024 | 2025 |
| Sales revenues | 222,309 | 222,292 |
| Changes in inventories | 2,723 | 5,716 |
| Own work capitalized | 536 | 485 |
| Total output | | 228,493 |
| | 225,567 | |
| Cost of materials | -108,740 | -112,096 |
| Personnel expenses | -57,452 | -66,541 |
| Other operating expenses | -32,954 | -31,828 |
| Other operating income | 1,204 | 1,512 |
| | | |
| EBITDA | 27,625 | 19,540 |
| Depreciation and amortization | -15,223 | -14,991 |
| EBIT | 12,402 | 4,548 |
| Financial result | -2,589 | -6,468 |
| EBT | 9,813 | -1,919 |
| Income tax | -2,968 | -3,177 |
| Net income | 6,845 | -5,097 |
| Non-controlling interests | 50 | 0 |
| Consolidated net profit / loss | 6,895 | -5,097 |
| | | |
| Basic and undiluted earnings per share in € | 0.44 | -0.33 |
| Number of shares | 15,505,731 | 15,505,731 |
| | | |
### Consolidated Balance Sheet
| € 000s | 31/12/2024 | 31/3/2025 |
|--------------------------------------------------|------------|-----------|
| ASSETS | | |
| Cash and cash equivalents | 71,186 | 67,942 |
| Trade accounts receivable | 75,084 | 90,245 |
| Inventories | 148,044 | 157,760 |
| Current income tax assets | 1,741 | 1,289 |
| Other current non-financial assets | 12,061 | 13,139 |
| Other current financial assets | 10,932 | 10,014 |
| Current assets | 319,048 | 340,389 |
| Property, plant and equipment | 299,440 | 292,578 |
| Intangible assets | 97,283 | 91,353 |
| Rights of use | 37,509 | 36,394 |
| Goodwill | 227,234 | 224,760 |
| Investments in associates | 404 | 404 |
| Financial assets | 1,798 | 1,784 |
| Non-current income tax assets | 4,507 | 4,401 |
| Other non-current non-financial assets | 370 | 423 |
| Other non-current financial assets | 997 | 1,078 |
| Deferred taxes | 23,812 | 23,418 |
| Non-current assets | 693,354 | 676,593 |
| | 1,012,402 | 1,016,982 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| Short-term financial liabilities | 16,743 | 19,841 |
| Trade accounts payable | 92,191 | 106,541 |
| Income tax liabilities | 1,800 | 2,346 |
| Short-term provisions | 4,910 | 10,163 |
| Other current non-financial liabilities | 3,295 | 3,234 |
| Other current financial liabilities | 35,695 | 38,026 |
| Current liabilities | 154,634 | 180,150 |
| Long-term financial liabilities | 394,359 | 387,430 |
| Pensions and other personnel-related obligations | 11,696 | 11,589 |
| Long term provisions | 191 | 147 |
| Other non-current non-financial liabilities | 23 | 75 |
| Other non-current financial liabilities | 1,368 | 1,181 |
| Deferred taxes | 39,650 | 39,041 |
| Non-current liabilities | 447,287 | 439,464 |
| Capital stock | 15,506 | 15,506 |
| Capital reserve | 122,755 | 122,755 |
| Retained earnings | 263,807 | 264,203 |
| Consolidated net profit/loss | 8,413 | -5,097 |
| Equity | 410,481 | 397,367 |
| | 1,012,402 | 1,016,982 |
# Consolidated Cash Flow Statement
| | Q1 | | |
|----------------------------------------------------------------------|------------|------------|--|
| € 000s | 1/1/-31/3/ | 1/1/-31/3/ | |
| | 2024 | 2025 | |
| Earnings before income tax | 9,813 | -1,919 | |
| Reconciliation of cash flow from current business operations | 19,433 | 18,905 | |
| Internal financing | 29,246 | 16,986 | |
| Changes in assets and liabilities (net) | -10,193 | -5,524 | |
| Cash flow from current business operations | 19,053 | 11,462 | |
| Cash flow from investment activities | -3,812 | -5,907 | |
| Cash flow from financial activities | -6,981 | -8,758 | |
| Change in cash and cash equivalents | 8,260 | -3,203 | |
| | | | |
| Cash and cash equivalents | | | |
| 1 January | 111,811 | 71,186 | |
| Effects of changes in the exchange rate on cash and cash equivalents | 211 | -41 | |
| 31 March | 120,282 | 67,942 | |
# Segment reporting
| Segment information<br>€ 000s | BU<br>Surfaces | BU<br>Edgebands | BU<br>Profiles | BU<br>North<br>America | BU<br>Asia<br>Pacific | Reconcili<br>ation | SURTECO<br>Group |
|------------------------------------------|----------------|-----------------|----------------|------------------------|-----------------------|--------------------|------------------|
| 1/1/-31/3/2025 | | | | | | | |
| External sales | 70,708 | 36,936 | 35,454 | 68,491 | 10,703 | 0 | 222,292 |
| Internal sales with the<br>SURTECO Group | 4,330 | 368 | 8 | 0 | 180 | -4,886 | 0 |
| Total sales | 75,038 | 37,304 | 35,462 | 68,491 | 10,883 | -4,886 | 222,292 |
| Segment earnings<br>(EBITDA) | 6,767 | 6,190 | 4,484 | 8,830 | 1,365 | -975 | 26,661 |
| | | | | | | | |
| 1/1/-31/3/2024 | | | | | | | |
| External sales | 71,570 | 39,040 | 34,659 | 65,903 | 11,137 | 0 | 222,309 |
| Internal sales with the<br>SURTECO Group | 4,116 | 291 | 17 | 0 | 0 | -4,424 | 0 |
| Total sales | 75,686 | 39,331 | 34,676 | 65,903 | 11,137 | -4,424 | 222,309 |
| Segment earnings<br>(EBITDA) | 8,127 | 7,207 | 4,932 | 7,665 | 1,656 | -1,962 | 27,625 |
# Calculation of indicators
| EBITDA adjusted | Earnings before financial result, income tax and depreciation and amortization<br>less extraordinary income, acquisition and integration costs, consultancy costs<br>and provisions for staff measures | | | | |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| EBITDA | Earnings before financial result, income tax and depreciation and amortization | | | | |
| Cost of materials ratio in % | Cost of materials/Total output | | | | |
| EBITDA adjusted margin in % | EBITDA adjusted/Sales | | | | |
| Debt-service coverage in % | (Consolidated net profit + Depreciation and amortization) / Net debt | | | | |
| Earnings per share in € | Consolidated net profit/Weighted average of the issued shares | | | | |
| EBIT margin in % | EBIT/Sales | | | | |
| EBITDA margin in % | EBITDA/Sales | | | | |
| Leverage | Net dept/EBITDA adjusted for the last 12 month | | | | |
| Equity ratio in % | Equity/Total equity (= balance sheet total) | | | | |
| Free cash flow in € | Cash flow from current business operations - (Acquisition of property,<br>plant and equipment + Acquisition of intangible assets + Acquisition<br>of companies + Proceeds from disposal of property, plant and equipment +<br>Dividends received) | | | | |
| Interest cover factor | EBITDA/Interest (net) (Interest income – Interest expenses) | | | | |
| Level of debt in % | Net debt/Equity | | | | |
| Net debt in € | Short-term financial liabilities + Long-term financial liabilities –<br>Cash and cash equivalents | | | | |
| Personnel expense ratio in % | Personnel expenses/Total output | | | | |
| Working Capital in € | (Trade accounts receivable + Inventories) – Trade accounts payable | | | | |
# Contact
Martin Miller Investor Relations T: +49 8274 9988-508 [ir@surteco.com](mailto:ir@surteco.com)
Martin Miller
SURTECO GROUP SE Johan-Viktor-Bausch-Straße 2 86647 Buttenwiesen Germany
Ansprechpartner
ISIN: DE0005176903
[www.surteco.com](http://www.surteco.com/)
