Masterflex SE — Earnings Release 2020

Sep 30, 2020

The first 9 months of 2020 at a glance

Solid third quarter of 2020 despite Coronavirus

• Focus on the growth industry medical technology provides stability
• Earnings forecast for the 2020 financial year exceeded
• Group-revenue with EUR 55.8 million at the upper end of the full-year forecast
• Group operating EBIT with EUR 3.5 million well in excess of the forecast for 2020
• Further increase in liquidity and reduction in net debt
• Successful implementation of the "Back to Double Digit" optimisation programme
• Generation of additional measures to achieve a double-digit EBIT margin by 2022

Q3/2020: Key figures

Key figures Q3/2020

in million EUR

	30.09.2020	30.09.2019
Revenue	55.8	62.5
EBITDA	6.6	8.3
EBIT (operative)	3.5	5.2
Consolidated net income	1.4	3.1
EPS (in EUR)	0.15	0.32

Positive earnings in a challenging environment

• Corona-related decline in revenue of 10.8% (upper end of full-year forecast: minus 10-15%).
• Stability thanks to positive demand trend in the medical technology, food and pharmaceutical industries.
• Significant positive contributions to earnings through savings in personnel costs, increased personnel productivity and cost optimisation in the use of materials.
• EBIT margin in the first nine months of 2020 at 6.3% (previous year: 8.4%).

Individual quarters 2020

Sales by quarter

in EUR million

Operating EBIT by quarter

in EUR million

Solid performance in Q3 in line with management expectations

Revenue decline in Q2 (-19.1%) was significantly reduced in Q3 (-10.6%)

Equity ratio remains very solid

Group equity and equity ratio

in EUR million and %

• Stable consolidated equity as of 30.09.2020 at EUR 42.0 million with simultaneous dividend continuity
• Increase in Group cash and cash equivalents as of 30.09.2020 to EUR 8.2 million (previous year: EUR 5.3 million)
• Operating cash flow increases to 7.8 million euros as of 30.09.2020 (previous year: EUR 4.1 million)
• Liquidity increased and net debt reduced

Status in the Corona crisis and outlook 2020

Q3/2020 Status in the Corona crisis

• The revenue shortfalls resulting from the temporary closures of the plants in China and France (Q1/2020: EUR 0.4 million) were partially compensated from Q2 onwards. Business development in China shows some stability.
• Business development and expectations in the individual target industries remain highly heterogeneous.
• Closure costs of the production site in the Czech Republic in Q3/2020, with a total of TEUR 450 below the expected budget.
• Partly short-time working implemented and positive impact of staff reduction programme.

Outlook 2020

• Against the background of the current dynamic development of the COVID-19-pandemic, Q4/2020 and Q1/2021 are expected to be below the previous year's level.
• This does not affect the full-year forecast
• Solid development in Q3/2020 leads to a confirmation of the forecast for 2020 with a 10% to 15% decline in consolidated revenue.

Operating EBIT is expected to be between EUR 1.0 and EUR 2.5 million.

B2DD optimisation programme on track

Medium and long-term perspective

• Market leader in all addressed markets
• Sustainable increase in operating EBIT, among other things through optimization program "Back to Double Digit" (B2DD)
• Double-digit EBIT margin from 2022
• EUR 100 million revenues in 2023/2024 through organic growth
• Further improvement in operating Cashflow
• Additional growth through acquisitions with the goal of EUR 200 million revenues by 2030

We continue with our medium-term targets despite the Corona crisis.

Contact Details

Masterflex SE

Mark Becks, CFO

Willy-Brandt-Allee 300 45891 Gelsenkirchen Germany

CROSS ALLIANCE Communication GmbH

Susan Hoffmeister, Investor Relations Tel.: +49 89 125 09 03-33 ir@masterflexgroup.com