Masterflex SE — Investor Presentation 2016

Nov 14, 2016

The Technology Leader for Connections

Q 3/2016 14th November 2016

At a glance

Technology leader for high-tech hoses and connection systems

• 1987 established in Germany/Ruhr region
• 12 sites in Europe, North & South America and Asia
• Sustainable good EBIT margin
• Solide balance sheet with an equity ratio of 44%
• Since 2000 listed in the Prime Standard segment
• 48% Freefloat, more than 50% with 6 major shareholders (thereof a good 6% to the Executive Board)

Financial Figures –Sales Trend

Group Turnover

Financial Figures –Operational Results

Group EBIT & EBIT Margin

€ million

• EBIT margin: 9.5% (previous year: 9.0%)
• Ongoing process of optimization at all important sites initiated

Financial Figures –Results

Financial Figures –Financing

Solid Funding for Ongoing Growth New group syndication loan until 2021 incl. M&A- facility Short-term debt sustainably reduced Equity ratio of 44.2% (End of 2015: 47.7%) Financial Liabilities € million 23.2 22.7 20.3 20.2 25.6 2012 2013 2014 2015 2016 - Q3 thereof short-term

Financial Figures: Solid Balance Sheet

ASSETS EQUITY & LIABILITIES

Long-term assets (52.3%)	€ 32.8 million	Equity € 27.7 million (44.2%)
Intangible assets	6.4%
Tangible assets	43.2%
Financial assets*	2.7%	Long-term debts € 23.8 million (38.0%)
Current assets (47.7%)	€ 29.9 million	financial debts 34.9% thereof pensions 0.0% thereof
Inventories Receivables**	22.7% 14.7%	Short-term debts € 11.2 million (17.8%)
Cash	10.3%	trade payables 5.1% thereof financial debt 5.9% thereof
Total assets	€ 62.7 million	Total equity & liabilities € 62.7 million

* incl. deferred taxes ** incl. miscellaneous

Our share

Stock price development in 2016

Share: gathered momentum again

• After losses in springtime, the share price substantially above € 6
• Market cap: € 60.7 million
• PE ratio*: 22.8
• P/B ratio*: 2.19

* Share price of 3.11.: € 6.85. EpS 2016e: 0.30 (DZ Bank 8/2016)

Shareholder Structure

Stockholders: largely stable structure together with slightly decreasing free float

• Free flow (48.1%)
• SVB GmbH & Co. KG/ Family Schmidt (19.9%)
• Stichting Administratiekantoor Monolith (14.4%)
• BBC GmbH/ Dr. Bastin, Becks (6.1%)
• Baden-württ. Versorgungsanstalt für Ärzte, Zahn- und Tierärzte (3.6%)
• Families Bischoping (3.3%)
• J.F. Müller & Sohn (3.1%)
• Treasury shares (1.5%)

Besides hoses, clips as well as adaptors, connectors and protective caps are part of a proper patient care to ensure proper inflow and outflow. Fleima- Plastic supplies these impeccable quality moulded parts.

The Business Model

The Market

• Total market volume: € 21 billion (Europe, Americas, Asia)
• Market for special hoses: € 2 billion
• Our long-term goal: € 200 million
• Our solutions: Durable connections for transport of gases, fluids and solids under special requirements
• Consultation driven sale and development work
• Focus on top selling and high margin products

Masterflex Group products –a one stop shop

Data: ProdCom/Eurostat; own survey

Our Product Range

Brand	Product	Materials	Markt players
		PU, PVC, textiles	Schauenburg, Norres, IPL
		VMQ (silicone), CMS (Hypalon®)	Hutchinson, MST, Flexfab
		PU, PVC, PA, PE	Parker, Festo, Raumedic
		PC ABS, PVC	Spang & Brands, diverse
		PU, PVC, metals	Hi-tech Duravent, Schauenburg, Kanaflex

Our customer sectors

* Turnover 2015

The Business Model –Investments

Extension of the Gelsenkirchen-Site

Key aspects of this investment

• Start of preparation in 02/2016; final inspection in 11/2016 (ahead of schedule)
• Cost of approx. € 7 million: € 5 million for buildings; € 2 million for machines
• Overall 7,700 sqare meter new: up to 2,400 square meter for production; 3,500 square meter for store, R&D and logistics

Our Growth Strategy

Outlook

Forecast for 2016

• Growth above the global economy growth rate (2.9%e)
• EBIT signifcant above the previous year (2015: € 4.9 million)
• 9 months 2016: Outlook more than fulfilled!

Medium term perspective

Growth also through acquisitions in the hose business

Return to dividends

Welding is an important technology for connecting metal sheets in a long-lasting and resilient manner. Sparks can often fly! And so that flying sparks do not set the welding robot on fire, with its pneumatic hose feeds, flameresistant smooth hoses are fitted, part of the Xflame fa mily from Novoplast Schlauchtechnik.

Thank you for your attention!

Annex

Financial Calendar 2016/2017

30 March	Financial press conference
7 April	DFVA Analyst's conference
9 May	Release to Q1/2016
14 June	AGM, Gelsenkirchen
12 August	Half year report 2016
14 November	Release to Q3/2016
21 - 23 November	German Equity Forum, Frankfurt
31 March 2017	Financial press conference
27 June 2017	AGM, Gelsenkirchen
Contact	ir@masterflexgroup.com
CFO	Mark Becks
IR	Dr. Annette Littmann

Annex –Key Figures year-on-year

2014 Financial Year versus 2015	31.12.2014	31.12.2015	Change
Turnover (€k)	62,466	64,112	2.6%
EBITDA (€k)	9,172	7,672	-16.4%
EBIT (€k)	6,317	4,870	-22.9%
EBT (€k)	5,194	3,872	-25.5%
Consolidated result from continuing operations (€k)	3,232	2,252	-30.3%
Consolidated result from discontinued operations (€k)	-154	-374	-142.9%
Consolidated result attributable to shareholders (€k)	3,043	1,948	-36.0%
Earnings per share (€)	0.34	0.22	-35.3%
EBIT margin (%)	10.1	7.6
Number of employees	567	609	7.4%
Consolidated equity (€k)	23,835	26,012	9.1%
Consolidated total assets (€k)	51,982	54,484	4.8%
Consolidated equity ratio (%)	45.9	47.7

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 specified 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 11 © zoja –Fotolia.com
• Slide 13 Automotive: © Nataliya Hora–Fotolia.com, Rail industry © Petair–Fotolia.com, Aviation: © arquiplay77–Fotolia.com , Renewable energy: © F.Schmidt–Fotolia.com
• Slide 16 © psdesign1–Fotolia.com