Overview Strategy Figures Outlook Appendix 1

Investor Presentation MASTERFLEX

Overview

Business Model and Strategy

Figures
Outlook

Appendix

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Overview

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Masterflex Group SE – Connecting Values

million

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Masterflex specialist for high-tech connection solutions

Masterflex hose systems can be used in various industries connection solutions applicable in a wide range of industries Medical Food & Pharma Renewable Energies Automotive Aerospace Process industry & Robotics

Predictive Maintenance

Masterflex

growth drivers

Profiting from sustainable growth trends in the sector

Globalisation & demographic change

Megatrends remain long-term

Digitalization

Sustainability

Sector diversification balances out cyclical fluctuations.

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Application examples

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Broad product portfolio as a result of industry diversification

Materials	Product	Market Participant
PU, PVC, Fabric		Schauenburg, Norres, Merlett
VMQ (Silicone), CMS (Hypalon®)		Hutchinson, MST, Flexfab
PU, PVC, PA, PE		Modenplast, Medi-Line, Raumedic
PC ABS, PVC		Borla, Promepla, diverse
PU, PVC, Metal		Hi-tech Duravent, Flexaust, Kanaflex
FEP, PFA, PTFE		Optinova, Saint Gobain

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Our competitive strengths

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and	Business Model Strategy

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Business model stands for sustainable, long-term and profitable growth

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The goal of internationalisation

Masterflex is represented with its own production on all continents
Distribution of the entire "German product range" also abroad - offers great potential
Growth via acquisitions

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Innovation strategy focused on long-term growth drivers

Globalisation

The population is getting older
The desire for more prosperity in emerging countries is growing

Drivers for the medical technology, food & pharma, mobility sectors

• The trend of increasing networking of processes and systems through intelligent connection solutions cannot be stopped

Disruptive innovations in the focus of the development strategy

Digitalization Sustainability

• High-tech plastics will substitute conventional materials, especially steel and rubber, in many sub-sectors

Innovation strategy focused on the use of environmentally friendly plastics

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Awarded as Top Innovator since 2016

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Digital transformation: Industry 4.0-enabled production unstoppable

Assistance system for production plants

Continuous support of the plant operator through intuitive communication
Live simulation
Automated recommendation of optimal process settings

Next steps

Autonomous intervention
Transfer to other production lines and plants

AMPIUS® is part of the world's first industry 4.0-enabled hose extrusion line.

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Digital transformation using the example: Ampius®

Networkable and intelligent hose system
Real-time data from hose operation (in daily operation/contact with thousands of machines and plants)
Implementation of additional digital functions, such as life cycle transparency and wear monitoring
Customer and application-specific added value
Nucleus for smart services with potential for innovative business models
Pilot projects since 2018, first intelligent series hose since July 2019

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Operative Excellence

Our claim:

Ongoing optimisation of core processes
Scaling of products
Efficiency improvements
Expansion of digital competencies

**EBIT targets* from the 'B2DD Program' in 2019:**

- Staff reduction: EUR 1.4 million

Innovations: EUR 0.6 million • Material: EUR 0.5 million Total: EUR 2.5 million

Further measures in 2020

(also for volume adjustment due to the pandemic):

Closure of production in the Czech Republic
Closure of production in France
Further staff reductions at the German sites

* One-off costs for the implementation of efficiency improvements in the 2020 business year: EUR 0.8 million

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Summary of our strategic goals

Internationalisation	Innovation	Digital Transformation	Operative Excellence
• Tapping the disproportionate potential in America and Asia • Stronger revevenue balance between Europe and America/Asia • Exploit acquisition potential • Making a broad product range available worldwide	• Expansion of innovation and technology leadership • Maximum customer proximity in development work • Leading solutions for flexible connection systems with sophisticated and sustainable plastics • Exploiting acquisition potential	• Further automation of internal value chains • Creation of new types of service and performance offers based on real-time data from hose use with AMPIUS (smart hoses)	• Foundations for very profitable growth • Stronger focus on scaling and efficiency gains • B2DD program

1. Organic growth to EUR 100 million by 2024 at the latest and double-digit EBIT margin by 2022.

2. Growth in the course of a buy & build strategy to EUR 200 million turnover by 2030.

19 Overview Strategy Figures Outlook Appendix
Figures

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The 2020 business year at a glance

Forecast exceeded despite corona-related effects

Orientation towards the future-oriented medical technology sector provides stability
Earnings forecast for the 2020 financial year exceeded
Group turnover of EUR 71.9 million at the upper end of the forecast range
Group operating EBIT of EUR 3.2 million significantly above 2020 forecast
Closure costs of the production site in the Czech Republic in Q3/2020, at around kEUR 500 within the expected cost framework
Liquidity further increased and net debt reduced
Successful implementation and expansion of the "Back to Double Digit" optimisation program
Generated further measures to achieve a double-digit EBIT margin by 2022

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12/2020: Figures

In EUR milion	31/12/2020	31/12/2019
Revenue	71.9	80.0
EBITDA	7.9	9.7
EBIT (operative)	3.2	5.1
Group result	0.8	2.5
EPS (in EUR)	0.08	0.26

Positive earnings situation in a challenging environment

Corona-related decline in sales of 10.1% (upper end of full-year forecast: minus 10-15%).
Stability thanks to positive demand trend in the medical technology and food and pharmaceutical industries.
Significant positive contributions to earnings through personnel cost savings, increase in personnel productivity and cost optimisation in the use of materials.
EBIT margin 2020 at 4.4% (previous year: 6.3%).

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Single quarters 2020

Revenue by quarters in EUR million

Operative EBIT by quarters in EUR million

Solid business development for the full year in line with management expectations
Decline in turnover in Q2 (-19.1%) was significantly reduced in Q3 and Q4 (-10.6%, -8.0%)

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Equity ratio remains very solid

Group equity and equity ratio in EUR million and %

Stable Group equity as of 31/12/2020 at EUR 41.3 million and simultaneous dividend continuity
Increase in cash and cash equivalents to EUR 9.2 million as at 31/12/2020 (2019: EUR 6.9 million)
Operating cash flow increases in 2020 to EUR 11.5 million (2019: EUR 6.7 million)
Liquidity increased and net debt reduced

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Masterflex share and dividend information

Analyst recommendation

METZLER: 01 April 2021 BUY recommendation, target price: EUR 8.50
SMC Research: 15 March 2021 BUY recommendation, target price: EUR 9.00

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Outlook

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Outlook 2021

Business development and expectations in the individual target sectors remain highly heterogeneous, but fundamentally positive
Against the backdrop of the ongoing COVID 19 pandemic, Q1/2021 is expected to be below the previous year's level
We expect moderate growth in the second quarter and a stronger increase for the rest of the year
For the full year 2021, we expect revenue growth of 2.0% to 5.0%
On this basis, the operating EBIT should be above the previous year in absolute and percentage terms

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Medium-term forecast

Masterflex's earnings will grow faster than revenue in the future:

Organic growth in turnover to approx. EUR 100 million by 2024 at the latest
Double-digit EBIT margin from 2022 onwards
Additional growth through acquisitions to a turnover level of EUR 200 million by 2030

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Why invest in Masterflex?

Masterflex is a medium-sized global market leader and therefore a clear growth stock.

Masterflex is closely linked to its customers - but its broad positioning means that it is largely independent of customers and industries.

Masterflex is an established B2B brand and is perceived by customers and competitors as a technology leader (TOP100 Innovator, Global Market Leader 2021).

In particular, the markets already developed in the USA and Asia still offer disproportionately high development potential.

Acquisitions in line with the strategic guideline offer additional growth potential.

Masterflex is a clear pioneer in the digitalisation of hoses and connection solutions.

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Appendix

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Masterflex at a glance

in kEUR	31/12/2015	31/12/2016	31/12/2017	31/12/2018	31/12/2019	31/12/2020
Revenue	64,112	66,486	74,675	77,243	79,969	71,881
EBITDA	7,672	8,811	10,263	9,592	9,656	7,892
EBIT (operative)	4,870	6,097	7,081	6,251	5,058	3,167
Group result	1,948	2,928	4,311	3,373	2,532	793
EPS (in EUR)	0.22	0.34	0.45	0.35	0.26	0.08

1. Organic growth by 2024 at the latest: turnover EUR 100 million

2. Double-digit EBIT and improved operating cash flow by 2022

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Financial calendar and contact

Financial calendar 2021

31 March	Annual Report 2020
12 April	Virtual Roadshow Paris, Metzler
12 May	Report Q1/2021
19 May	Annual General Meeting
11 August	Half-year Report 2021
25 - 26 August	Hamburg Investors Day
6 - 7 September	Autumn Conference Frankfurt
10 November	Report Q3/2021