Masterflex SE — Investor Presentation 2014

Mar 28, 2014

Agenda

Overview	3
Financial key figures	4
The business model	11
Our growth strategy	15
Outlook	18
Annex	20

Masterflex at a glance

• 1987 established in Germany
• Trading on the Stock Exchange from 2000
• 13 locations worldwide
• 550 employees
• One of the leading specialists for connection solutions
• Stable double-digit EBIT margin

Financial key figures –sales trend

Turnover

€million

Above-average growth

• Dynamic sales growth in our hose business (+5.3% vs previous year)
• Asia business fully operational
• Good ongoing business in America
• Increasing exports from Europe
• 9.2% turnover in medical technology (2008) up to 13.1% (2013)
• Expansion of group marketing

Financial key figures –operating result

Group EBIT and margin

€million and %, continuing business units

Profitable business model

• EBIT declining slightly due to costs of internationalisation
• EBIT margin: 10.6% (previous year 13.7%)
• Staff cost ratio: 37.5% (previous year 36.0%)
• Cost of materials ratio: 31.1% (previous year 31.9%)

Financial key figures –net income

Consolidated net income

Income 2013

• Group net income €2.9 million (previous year €4.4 m)
• Financial result €-1.6 million (previous year €-1.6 m)
• Earnings per share €0.32 (previous year €0.50)

Financial key figures –equity

Equity and equity ratio

Increasing equity

• Drivers: net income since 2010 and capital measures in 2010
• Equity ratio at 42.9%
• Loss carryforward in the financial statement settled for the first time
• Dividend distribution achievable earlier

Financial key figures –refinancing

Financial liabilities

€million long term short term 2009 2010 2011 2012 2013

Strong debt relief achieved

• Drivers: net cash flow from operating activities of almost €8 million (previous year €3.6 million)
• New re-financing with 5 year syndicated loan and margin grid
• M&A facility available

Financial key figures

Shareholders

• SVB GmbH & Co. KG/ Family Schmidt (19.9%)
• BBC GmbH/ Dr. Bastin, Becks (6.1%)
• Monolith N.V. (5.0%)
• Families Bischoping (4.2%)
• von Rautenkranz Nachfolger BeteiligungsGbR (3.3%)
• Baden-Würtembergische Versorgungsanstalt für Ärzte, Zahnärzte und Tierärzte (3.3%)
• Tresary shares (1.5%)

The business model

• Specialist provider of high-tech hoses and connection systems for over 25 years
• Flexible solutions for transporting gases, liquids and solids
• Our overall market: many specialist markets, mostly regional served by medium-sized enterprises (B2B business)
• Global market volume for hoses incl. commodities is estimated at several €billion
• Our market potential: several €100 million

Business model - 5 brands with individual ranges

The business model - our customers

Mechanical engineering

Automotive industry

Manufacturing industry

• Medical technology
• Renewable energy

The business model - marketing expansion

Worldwide product campaign for Master-PUR Performance

• Advertisement
• Email signature
• Direct mailing

Our growth strategy

Objective: Global market leader in all specialist markets for connection systems

Innovations Internationalisation

The pillars of our strategy

Our growth strategy –innovations

Our growth strategy –internationalisation

• Historically-determined European focus
• Still much ground to cover in the world
• Product portfolio not yet on offer worldwide
• First organisational measures for this purpose in place from 2014

Outlook

Forecast for 2014

• Growth above the rate of the expected global economy
• Double-digit EBIT margin with increasing EBIT

Medium-term

• Above-average growth rates
• Acquisitions in the hose business
• Return on Dividends

Annex

2014 Financial Calendar

28 March	Annual Report 2013, Financial press and Analysts' Conference
12 May	Q1/2014
24 June	Annual general meeting
14 August	Q2/2014
14 November	Q3/2014
24 - 26 November	Equity forum, Frankfurt
Contacts
CEO	Dr. Andreas Bastin
CFO	Mark Becks
IR	Dr. Annette Littmann

Annex –key figures in the y-o-y comparison

2012 financial year versus 2013	31.12.2012	31.12.2013	Change
Turnover, HTS (T€)	54,984	57,904	5.3%
EBITDA(T€)	10,171	8,769	-13.8%
EBIT (T€)	7,556	6,114	-19.1%
EBT (T€)	5,989	4,537	-24.2%
Consolildated result from continuing operations (T€)	4,904	3,155	-35.7%
Consolidated result from discontinued operations (T€)	-262	-80	69.5%
Consolidated result attributable to shareholders (T€)	4,443	2,884	-35.1%
Earnings per share (€)
from continuing operations	0.53	0.33	-37.7%
from discontinued operations	-0.03	-0.01	66.7%
from continuing and discontinued operations	0.50	0.32	-36.0%
EBIT margin	13.7%	10.6%
Number of employees	501	550	9.8%
Consolidated equity (T€)	20,524	23,023	12.2%
Consolidated total assets (T€)	52,435	53,690	2.4%
Consolidated equity ratio	39.1%	42.9%

Annex - Disclaimer

This report contains forward-looking statements regarding future developments which are based on current assessments and planning of the management. Such forward-looking statements are characterised by words such as "expect", "would", "up to", "possible", "anticipate"and similar expressions. These statements are subject to risks and uncertainties. Should one of these factors of uncertainty or other imponderables occur or should the assumptions underlying the statements prove to be incorrect, the actual developments could differ significantly from the possible developments spec ified or implied in these statements. The Company does not intend to and assumes no obligation to update forward-looking statements on an ongoing basis, as these statements are based exclusively on the circumstances at the date of their publication.

Picture credits: All pictures © Masterflex SE except

Slide 13 Automotive: © Nataliya Hora–Fotolia.com , Rail industry © Petair–Fotolia.com, Aviation: © arquiplay77–Fotolia.com , Renewable energy: © F.Schmidt–Fotolia.com Slide 14 © Evan Kafka -gettyimages Slide 18 © jojji11-Fotolia.com