DGAP-Adhoc: SURTECO GROUP SE: Resolution passed on comprehensive structural modifications; changes in the Management Board

SURTECO GROUP SE: Resolution passed on comprehensive structural modifications; changes in the Management Board

Munich, 19 December 2019 - At its meeting today, the Supervisory Board of SURTECO GROUP SE passed a resolution relating to comprehensive measures designed to optimize the structure of the company.
In line with this resolution, the Management Board will in future play an operational role and take over the executive management of the biggest subsidiary company SURTECO GmbH. Measures to further improve the company's profitability were also resolved. These involve the Group structures being significantly streamlined, particularly in the Decoratives Segment. As a result of this, an adjustment in the size of the workforce is envisaged by around 175 employees in Germany. Additionally, the sales companies in Spain and Turkey will be closed. Owing to the ongoing challenging economic framework conditions and the resulting under-utilization of capacity, one-off write-downs on assets and inventories are necessary.
Expenses about 15 to 20 million euros will be incurred for these measures, which will constitute an obviously negative burden on the result for 2019. The original forecast of 38 to 40 million euros is still forecast for the operating result (EBIT¹ adjusted by one-off expenses). Over the medium term, the measures referred to above should lead to an EBIT between 55 and 60 million euros.

The CFO of the company, Mr. Andreas Riedl, has asked the Supervisory Board not to extend his Management Board contract, which expires on 30 June 2020. He will continue to carry out his functions on the Management Board until his contract expires and he will then take up new functions outside the SURTECO Group.
The Supervisory Board would like to take this opportunity to thank Mr. Riedl for his many years of successful service in the SURTECO Group and regrets the decision taken by Mr. Riedl.

Furthermore, the Supervisory resolved to extend the Management Board and appoint a Chief Operating Officer. An appointment will be made to this position during the course of the business year 2020.

¹ The use of indicators in this press release is carried out in accordance with the definition in the Annual Report 2018. This can be called up at www.surteco-group.com.