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Surteco Group SE

Interim / Quarterly Report Aug 11, 2009

421_10-q_2009-08-11_42e127be-2724-46ac-8c4f-ef55a5f2c16d.pdf

Interim / Quarterly Report

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REPORT FOR THE FIRST HALF YEAR 2009

specialists for surface technologies

Q2

S O C I E T A S E U R O P A E A

1 January to 30 June

OVERVIEW 2 3

SURTECO GROUP

Q2 Q1-2
€ 000s 1/4/-30/6/
2008
1/4/-30/6/
2009
Variation
in %
1/1/-30/6/
2008
1/1/-30/6/
2009
Variation
in %
Sales revenues 107,405 83,760 -22 215,973 168,672 -22
of which
- Germany
- Foreign
35,139
72,266
29,682
54,078
-15
-25
74,076
141,897
62,968
105,704
-15
-26
EBITDA 19,219 14,809 -23 39,137 28,445 -27
EBITDA margin in % 17.9 17.7 18.1 16.9
EBIT 14,048 9,744 -31 28,960 18,354 -37
EBIT margin in % 13.1 11.6 13.4 10.9
EBT 12,117 8,144 -33 24,244 8,696 -64
Consolidated net profit 8,210 5,433 -34 16,392 4,080 -75
Earnings per share in € 0.74 0.49 -34 1.48 0.37 -75
30/6/2008 30/6/2009 Variation
in %
Net financial debt 160,685 141,289 -12
Gearing (debt ratio) in % 87 76 -13
Equity ratio in % 37.6 39.4 +5
Number of employees 2,223 1,996 -10

4 5 AND FRIENDS OF OUR COMPANY DEAR SHAREHOLDERS, PARTNERS

ECONOMIC TROUGH IS LIKELY TO BE REACHED SOON

According to data from the Organization for Economic Cooperation and Development (OECD), global economic development is approaching the trough. In individual regions such as the USA or emerging countries, like China, the organization slightly raised its forecasts in the study published at the end of June compared with the previous very pessimistic assessments. Key factors here are the various monetary and fiscal stimulus packages put in place by governments on the ground. However, as far as the eurozone and Germany are concerned, the OECD sees no short-term indications of recovery. During the course of 2009, the gross domestic product in all OECD countries is likely to decline by 4.1 %. In 2010, a slight increase of 0.9 % is anticipated. The US economy will have to contend with the economy shrinking by -2.8 % this year, and growth is predicted to return to positive territory in 2010 with slight growth of 0.7 %. The export-led economies in Japan (2009: -6.8 %) and Germany (-6.1 %) are experiencing significantly more pain during the crisis. During the coming year, both countries are projected to experience a slight upturn of 0.7 % and 0.2 % respectively. The entire eurozone will have to endure a decline in economic output of 4.8 % in 2009 and the OECD predicts stabilization at a low level for 2010. Once again, China is the great hope for the global economy, with growth of 7.7 % being regarded as realistic for 2009 and growth of 9.3 % for 2010. India is also likely to post above-average high growth rates. Emerging countries that are more heavily dependent on raw materials, such as Russia and Brazil, whose economies experienced a more marked dip in 2009, are expected to generate economic growth of around 4 % for the coming year.

However, according to a statement by the OECD, the slight recovery predicted for 2010 has a somewhat shaky foundation. Despite normalization of the situation, the financial sector in particular is not safe from negative surprises. Allocation of credit continues to be restricted. It is also not possible to exclude a sharp rise in unemployment in the industrialized countries.

FURNITURE AND WOOD-BASED INDUSTRY IMPACTED BY ECONOMIC DOWNTURN

The developments and the forecasts for the furniture industry and the wood-based sector have become increasingly negative as the year 2009 has progressed. After four months, the furniture industry has experienced a decline in sales of 14.8 % compared with the equivalent year-earlier period. In April, data from the Federation of the German Furnishing Industry (VDM) indicated that the negative dip was in fact more than 20 %. According to the VDM, the key factor for the year overall would be development during the autumn months, when sales are traditionally strong. The Association of the German Wood-based Materials Industry (VHI) issued a similar statement. According to statements made by the lobby group, 2009 will undoubtedly be a difficult year for the sector, because both domestic demand and export will decline significantly. This development has led to shutdowns in production capacities in many companies in the furniture and wood-based industry.

BUSINESS DEVELOPMENT STAGNATES AT LOW LEVEL

During the second quarter of 2009, the business trend experienced during the first three months continued. Sales and income were once again significantly below the values for the equivalent year-earlier period.

A short-term improvement in the economic situation is not in sight. Nevertheless, SURTECO is well positioned by comparison with the sector as a whole to weather the crisis. Harmonization programmes were already initiated and implemented during the third quarter of last year with the objective of safeguarding income and liquidity. These measures assisted in adjusting capacities to dramatically declining demand. Costs were reduced at all levels. Furthermore, the Group has been taking measures to ensure that it is well positioned to take advantage of the next upturn. The objective is to emerge from the crisis strengthened and to expand the leading position of the Group within the sector.

SALES AND MARKETS

SALES FOR THE FIRST HALF-YEAR 22 % BELOW THE PREVIOUS YEAR

During the second quarter, the sales reductions were at the same level as at the start of the year. Sales of € 83.8 million underperformed by 22 % compared with the previous year.

The figure for the first half of the year at € 168.7 million also remained 22 % lower than in 2008. A drop in domestic business of 15 % to € 63.0 million contrasted with a 26 % fall (€ 105.7 million) in foreign business. The crisis impacted particularly strongly on the rest of Europe (-29 %). The share of foreign sales in total sales amounted to 63 %.

STRATEGIC BUSINESS UNIT PLASTICS

The second quarter of 2009 concluded with a 23 % fall in sales amounting to € 52.2 million in the segment for plastic products. While the German market fell back by 17 % to € 17.6 million, the volume of foreign business came down by € 12.4 million or 26 % to € 34.6 million. The strongest negative impacts were experienced in Europe (not including Germany) where virtually one third of the sales volume evaporated by comparison with the second quarter in the previous year. On the American continent, the SBU Plastics generated sales of € 8.2 million (-18%) in the months from April to June 2009. Australia concluded with sales 20 % below the equivalent year-earlier value, of which 8 % was due to exchange-rate effects. The sales volume generated in Asia was down by 9 %.

There was no significant difference between developments during the second quarter and the trend during the first three months of the reporting year, so that the half-year analysis presents a similar structure. Sales revenues at € 106.0 million after six months were 22 % below the level recorded in the previous year. Domestic sales amounted to € 37.7 million (-14 %). The remaining sales fell back by an average of 25 % with the sharpest falls being recorded at € 39.7 million in European markets outside Germany (-30 %). Sales revenues on the American continent fell back by 17 % after six months, in Australia by 23 %, and in Asia by 10 %.

The virtually unchanged percentage shares of the individual product groups confirm the assumption that the slowdowns in sales are virtually exclusively due to economic effects, and the cause continues to be sluggish consumption by consumers. Vinylit GmbH is a gratifying exception. The producer of environmentally friendly, ventilated cladding systems is part of the SBU Plastics. These products and their energy-saving technology are in tune with a growing trend, and this manufacturer generated sales of € 4.4 million despite the crisis. This meant that a decline of "only" 7 % had to be accommodated.

STRATEGIC BUSINESS UNIT PAPER

The product area of surface coating materials based on specialist technical papers also experienced more serious sales losses abroad than in Germany itself. During the second quarter of 2009, domestic sales declined by 13 % to € 12.0 million. The willingness of consumers to make investments in long-term assets like furniture and interior fittings remains at a very low level. The other markets lost ground amounting to 23 % and fell to € 19.5 million. Overall, the total drop in sales during the second quarter amounted to 20 % (1st quarter of 2009: -25 %) and generated € 31.5 million.

During the first half of 2009, sales revenues totalling € 62.7 million were generated in the paper sector (-22 %). Domestic business dropped by 16 % to € 25.3 million, foreign sales at € 37.4 million lost a total of 26 % of their volume. Europe (without Germany) had to contend with a fall of 28 % to € 29.0 million. These consumer markets represent nearly half the total sales volume of the SBU Paper and they were particularly hard-hit by the crisis in sales. Orders from these markets were virtually only booked with increasing gaps and diminished order volumes.

The lower sales volumes affected all the product groups in the SBU Paper in equal measure. A shift from post-impregnated finish foils to more cost-effective pre-impregnates was unique within flat foils.

EXPENSES

COST STRUCTURES FURTHER IMPROVED

The proportion of costs for raw materials, consumables and supplies (€ 33.6 million) in total output at 40.5 % was significantly below the ratio for the months of January to March (42.9 %) in the second quarter. This reveals a proportion of costs in relation to sales of 41.7 % for the first half-year of 2009 (cost of materials € 69.1 million),

1.1 percentage points lower than the equivalent year-earlier period.

The personnel expenses of the SURTECO Group amounted to € 20.8 million during the second quarter of the current business year. After the first six months of the current business year, expenditure on personnel totalled € 42.2 million (proportion of total output: 25.4 %).

On 30 June 2009, the SURTECO Group had a headcount of 1,996 employees. One year ago, the workforce was 2,223 strong. A reduction of 10 % has enabled the Group to implement the appropriate adjustment to match the modified capacity situation.

Other operating expenses in the first half of 2009 at € 30.1 million were € 3.4 million below the equivalent year-earlier value.

EARNINGS

EBITDA MARGIN IN THE SECOND QUARTER AT LEVEL FOR PREVIOUS YEAR

In the second quarter of 2009, the SURTECO Group generated an EBITDA of € 14.8 million. This figure is 23 % lower than the value for the previous year and has changed in proportion to sales development so that the EBITDA margin at 17.7 % only changed marginally (-0.2 percentage points). The consolidated net profit fell short of the value for 2008 by € 2.8 million or 34 % and amounted to € 5.4 million. This generates earnings per share of € 0.49 (2nd quarter of 2008: € 0.74). Analysis of the results for the first half of the year reveals an operating result of € 28.4 million (2008: € 39.1 million) and a change in EBITDA margin of 18.1 % to 16.9 %. EBIT came down by 37 % and amounts to € 18.4 million after six months. The EBIT margin fell by 2.5 percentage points to 10.9 %. The EBT reflects the impairment on the shares in Pfleiderer AG, Neumarkt, held by SURTECO amounting to € 6.0 million. This means that the pretax result at € 8.7 million is 64 % lower than the value for the previous year.

On the basis of 11,075,522 shares, the consolidated net profit amounting to € 4.1 million (-75 %) yielded earnings per share of € 0.37 (1st half-year of 2008: € 1.48).

NET ASSETS, FINANCIAL POSITION AND RESULTS OF OPERATIONS

The balance sheet total on 30 June 2009 fell by 4 % compared with 31 December 2008. The equity ratio over this period went up from 36.8 % to 39.4 %. Key factors influencing development in the first six months were the reduction in net financial debt by € 30.0 million to € 141.3 million and a further improvement in working capital of € 67.0 million to € 56.2 million. Optimized warehouse management enabled inventories to be reduced. Property, plant and equipment fell back slightly as a result of the lower investments (€ 4.7 million).

The consistent reduction in net indebtedness and the increasing equity ratio improved the gearing from 95 % to 76 %.

The positive development of free cash flow demonstrates that the measures taken by the management of SURTECO are having an effect and form the basis for rapid reduction of the level of debt. This is particularly evident for cash flow from operating activities, which have remained at the level of the previous year despite falling sales revenues.

CALCULATION OF FREE CASH FLOW

€ 000s 1/1/ -
30/6/2008
1/1/ -
30/6/2009
Cash inflow from
operating activities
40,872 42,138
Tax payments -6,000 -2,038
Cash outflow from
current business operations
34,872 40,100
Cash outflow from
investment activities
(without financial investments)
-9,745 -4,007
Free cash flow 25,127 36,093

RESEARCH AND DEVELOPMENT

INVISIBLE JOINT BECOMES REALITY

Fusion edge is an innovative plastic joint. It has pioneered a positively revolutionary innovation in furniture construction. This is because the surface for side coating of materials developed by Döllken to production readiness is created entirely without any adhesive. Up to now, the profile of this joint has been too obvious, particularly in high-gloss fronts. Döllken cooperated closely with a major machinery manufacturer to develop the laser-joint procedure in order to bond the edgebanding securely and firmly to the material. The edging material used comprises an upper base layer, which is identical with conventional edgebanding qualities, and a very thin functional layer, which is identical in colour with the base layer. When the edgebanding is applied to the substrate material, a powerful laser melts this functional layer and creates a jointless bond between the surface material and board. This process yields a number of advantages for furniture manufacturers: they benefit from the high-quality visual profile of their products while simultaneously increasing their production certainty and productivity. The success of such complex new procedures is based on interdisciplinary cooperation in the form of joint ventures for development projects and development networks. The machinery manufacturer referred to above has already installed a system designed for carrying out processing operations with Döllken Fusion Edge edgebandings and two other systems are currently in production. The new procedure received the M Technology Award 2008 at the Furniture and Components Trade Fair (ZOW), as well as being nominated for the Design Prize of the Federal Republic of Germany 2009.

SURTECO SHARES

During the second quarter of 2009, the SURTECO share was able to regain the price losses sustained during the first quarter. From the beginning of April to the end of June, the share price climbed by nearly 32 % to a closing price of € 10.00. The SDAX comparative index for relatively small listed securities increased during the reporting period by "only" some 22 %. By comparison with the beginning of the year, the development in value of the SURTECO shares remained correspondingly unchanged. On 30 June 2009, the market capitalization was € 110.8 million. The statistics of Deutsche Börse AG ranks the company at position 118 for market capitalization (with reference to free float) on the basis of the comparatively low level of free float, and at position 121 for trading volume. In order to be in a position to achieve the company's medium-term goal of being listed in the SDAX, SURTECO would have to be ranked among the top 110 for both these categories. The upward trend of the share has also continued at the beginning of the third quarter. By the end of July, the SURTECO price was € 12.25.

January - June 2009

Number of shares 11,075,522
Free float in % 23.7
Price on 2/1/2009 in € 10.20
Price on 30/6/2009 in € 10.00
High in € 10.49
Low in € 6.35
Market capitalization as at
30/6/2009 in € 000s
110,755

Share price performance January - June 2009 in €

OUTLOOK FOR THE FISCAL YEAR 2009

Since the situation in the second quarter continued to be stable at the low level of the start of the year and there were no tangible signs of a short-term improvement in the general economic situation, the assumption must be that the crisis will certainly continue through this year and will probably extend until well into the year 2010. As far as SURTECO is concerned, short-term safeguarding of liquidity and income therefore remains the focus of action for 2009, as well as providing a long-term structure for the future and safeguarding the leading position of SURTECO in the segment of surface coating materials for the international furnishing industry. Apart from the planned harmonization of personnel strength to utilization capacity, including flexible employment models, the immediate measures focus on restructuring and optimization of production sites and manufacturing systems, such as closure of the edging tape plant in Montreal/ Canada and transfer of melamine edging-tape production of the SBU Paper from the Buttenwiesen location to Sassenberg.

The long-term measures are bundled in the "PREIS" project (productive, return, efficient, innovative, speedy) which is intended to generate annual savings effects of more than € 10 million from 2010. The focuses here are on improvements in the operating areas of sales, purchasing and quality management, improvement in net working capital, and strengthening of the portfolio by strategic purchases and disposals.

16 17 CONSOLIDATED INCOME STATEMENT SURTECO GROUP

Q2 Q1-2
€ 000s 1/4/-30/6/
2008
1/4/-30/6/
2009
1/1/-30/6/
2008
1/1/-30/6/
2009
Sales revenues 107,405 83,760 215,973 168,672
Changes in inventories 328 -956 -842 -3,165
Own work capitalized 365 297 605 444
Total output 108,098 83,101 215,736 165,951
Cost of materials -46,434 -33,616 -92,258 -69,133
Personnel expenses -26,872 -20,752 -53,453 -42,153
Other operating expenses -16,851 -15,546 -33,506 -30,060
Other operating income 1,278 1,622 2,618 3,840
EBITDA 19,219 14,809 39,137 28,445
Depreciation and amortization -5,171 -5,065 -10,177 -10,091
EBIT 14,048 9,744 28,960 18,354
Financial result -1,931 -1,600 -4,716 -9,658
EBT 12,117 8,144 24,244 8,696
Income tax -3,907 -2,711 -7,852 -4,616
Net income 8,210 5,433 16,392 4,080
of which consolidated net profit 8,210 5,433 16,392 4,080
of which minority interests 0 0 0 0
Basic and diluted earnings
per share in €
0.74 0.49 1.48 0.37
Number of shares issued 11,075,522 11,075,522 11,075,522 11,075,522

CONSOLIDATED BALANCE SHEET 18 19

SURTECO GROUP

€ 000s 31/12/2008 30/6/2009
ASSETS
Cash and cash equivalents 60,468 62,949
Trade accounts receivable 34,465 32,147
Inventories 59,759 54,271
Current income tax assets 6,912 4,671
Other current assets 10,050 8,188
Current assets 171,654 162,226
Property, plant and equipment 175,840 171,167
Intangible assets 8,471 8,359
Goodwill 108,227 108,751
Investments in associated enterprises 1,683 1,683
Financial assets 10,804 8,553
Non-current tax assets 1,233 966
Other non-current assets 6,768 1,806
Deferred taxes 5,393 6,134
Non-current assets 318,419 307,419
490,073 469,645

Q2

CONSOLIDATED BALANCE SHEET 20 21

SURTECO GROUP

€ 000s 31/12/2008 30/6/2009
LIABILITIES AND SHAREHOLDERS`EQUITY
Short-term financial liablilities 35,239 20,245
Trade accounts payable 18,290 24,736
Income tax liabilities 3,131 3,224
Short-term provisions 8,933 5,483
Other current liabilities 14,441 14,683
Current liabilities 80,034 68,371
Long-term financial liabilities 196,512 183,993
Pensions and similar obligations 9,589 9,939
Other non-current financial liabilities 0 768
Deferred taxes 23,422 21,384
Non-current liabilities 229,523 216,084
Capital stock 11,076 11,076
Reserves 162,711 170,059
Consolidated net profit 6,754 4,080
Capital attributable to shareholders 180,541 185,215
Minority interests -25 -25
Equity 180,516 185,190
490,073 469,645

CONSOLIDATED CASH FLOW STATEMENT SURTECO GROUP 22

Q1-2
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
Earnings before income tax
and minority interests
24,244 8,696
Reconciliation to cash flow from
current business operations
17,622 9,490
Internal financing 41,866 18,186
Change in assets and liabilities (net) -1,788 21,914
Cash flow from current business operations 40,078 40,100
Cash flow from investment activities -33,585 -4,007
Cash flow from financial activities -45,474 -33,864
Change in cash
and cash equivalents
-38,981 2,229
Cash and cash equivalents
1 January 97,782 60,468
Effect of changes in exchange rate on
cash and cash equivalents
0 252
30 June 58,801 62,949
Retained earnings
€ 000s Capital
stock
Additional
capital
paid in
Fair value
measure
ment
for financial
instruments
Other
compre
hensive
income
Currency
translation
adjust
ments
Other
retained
earnings
Consoli-
dated net
profit
Minority
interests
Total
31 December 2007 11,076 50,416 3,436 45 -10,944 100,011 31,615 0 185,655
Dividend payout 0 0 0 0 0 0 -12,183 0 -12,183
Net income 0 0 0 0 0 0 16,392 0 16,392
Other changes 0 0 -7,383 0 -503 21,511 -19,432 0 -5,807
30 June 2008 11,076 50,416 -3,947 45 -11,447 121,522 16,392 0 184,057
31 December 2008 11,076 50,416 6,431 650 -18,080 123,294 6,754 -25 180,516
Dividend payout 0 0 0 0 0 0 -3,876 0 -3,876
Net income 0 0 0 0 0 0 4,080 0 4,080
Other changes 0 0 -202 0 4,672 2,878 -2,878 0 4,470
30 June 2009 11,076 50,416 6,229 650 -13,408 126,172 4,080 -25 185,190

STATEMENT OF COMPREHENSIVE INCOME SURTECO GROUP

Q1-2
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
Net income 16,392 4,080
Currency changes -503 4,672
Market value of financial assets and
cash flow hedges
-7,383 -202
Comprehensive income 8,506 8,550
of which group share 8,506 8,550
of which minority shareholders 0 0

SEGMENT REPORTING SURTECO GROUP 26 27

BY STRATEGIC BUSINESS UNITS

Sales revenues
€ 000s SBU
Paper
SBU
Plastics
Recon
ciliation
SURTECO
Group
1/1/-30/6/2009
External sales 62,704 105,968 0 168,672
Internal sales 525 170 -695 0
Total sales 63,229 106,138 -695 168,672
1/1/-30/6/2008
External sales 80,540 135,433 0 215,973
Internal sales 679 226 -905 0
Total sales 81,219 135,659 -905 215,973
Segment earnings (EBT)
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
SBU Plastics 22,845 13,025
SBU Paper 8,139 4,517
Reconciliation -2,024 -8,846
28,960 8,696

28 SEGMENT REPORTING 29 SURTECO GROUP

BY REGIONAL MARKETS

Sales revenues SURTECO Group
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
Germany 74,076 62,968
Rest of Europe 97,073 68,647
America 25,367 21,460
Asia, Australia, Others 19,457 15,597
215,973 168,672
Sales revenues SBU Plastics
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
Germany 43,946 37,682
Rest of Europe 56,910 39,655
America 19,691 16,415
Asia, Australia, Others 14,886 12,216
135,433 105,968
Sales revenues SBU Paper
€ 000s 1/1/-30/6/2008 1/1/-30/6/2009
Germany 30,130 25,286
Rest of Europe 40,163 28,992
America 5,676 5,045
Asia, Australia, Others 4,571 3,381
80,540 62,704

30 31 NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS (ABBREVIATED)

ACCOUNTING PRINCIPLES

The consolidated financial statements of SURTECO SE for the period 31 December 2008 were prepared in accordance with the regulations of the International Financial Reporting Standards (IFRS), as they were adopted by the EU. This report has been prepared in accordance with the International Accounting Standard (IAS) 34 "Interim Financial Reporting. The same accounting and valuation principles as in the preparation of the consolidated financial statements for the business year 2008 are applied in drawing up the interim financial report for the quarter ended 30 June 2009. If the standards adopted by the IASB had to be applied from 1 January 2009, they were taken account of in this interim report if they exert effects on the SURTECO Group.

We refer readers to the consolidated financial statements of SURTECO SE for the period ending 31 December 2008 in respect of further information on the details of the accounting and valuation methods used. The group currency is denominated in euros. All amounts are specified in thousand euros (€ 000s).

GROUP OF CONSOLIDATED COMPANIES

The SURTECO Group interim consolidated financial statements include all domestic and foreign companies in which SURTECO holds a direct or indirect majority of the voting rights.

REPORT ON IMPORTANT TRANSACTIONS WITH RELATED PARTIES

During the period under review, the company had no business transactions with affiliated persons that could have exerted a material influence on the net assets, financial position and results of operations of the company, nor did the company conclude any such transactions at standard commercial conditions.

RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.

Buttenwiesen-Pfaffenhofen, 11 August 2009

Board of Management of Management

Friedhelm Päfgen Dr.-Ing. Herbert Müller Chairman of the Member of the Board

32 Q2 33

Calculation of indicators:

Cost of materials ratio in % Cost of materials/Total output
EBIT margin in % EBIT/Sales revenues
EBITDA margin in % EBITDA/Sales revenues
Equity ratio in % Equity/Balance sheet total
Earnings per share in € Consolidated net profit/Number of shares
Gearing (debt level) in % (Short-term and long-term debt less cash and cash
equivalents)/Equity
Market capitalization Number of shares x Closing price on the balance
sheet date
Net debt in € (Short-term debt + long-term debt) less (Cash and
cash equivalents)
Personnel expense ratio in % Personnel expenses/Total output
Working capital in € (Trade receivables + inventories) less (Trade liabilities
+ short-term accrued reserves)

FINANCIAL CALENDAR 11 November 2009 30 April 2010 12 May 2010 24 June 2010 Nine-month report January-September 2009 Annual report 2009 Three-month report January-March 2010 Annual General Meeting Sheraton Arabellapark Munich

REPORT FOR THE FIRST HALF YEAR 2009

ticker symbol: SUR isin: DE0005176903

Andreas Riedl Chief Financial Officer Phone +49 (0) 8274 9988-563

Günter Schneller Investor Relations and Press Officer Phone +49 (0) 8274 9988-508

Fax +49 (0) 8274 9988-515 Email [email protected] Internet www.surteco.com

Johan-Viktor-Bausch-Straße 2 86647 Buttenwiesen-Pfaffenhofen Germany

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