Masterflex SE — Investor Presentation 2022

Mar 31, 2022

Earnings Call Presentation 2021

Overview Figures Outlook Appendix 1

31 March 2022

Overview	Figures	Outlook	Appendix	3
Overview

Overview	Figures	Outlook	Appendix	4

Masterflex Group SE – Connecting Values

Overview Figures Outlook Appendix 5

Masterflex: Specialist for high-tech connection solutions

Masterflex offers high material competence for demanding applications and highly specialized hose solutions

Masterflex connection solutions applicable in a wide range of industries

Medical Technology Food & Pharma

Renewable Energies

Automotive

Aviation

Process Industry & Robotics

Predictive Maintenance Semiconductor Industry Masterflex benefits from sustainable growth trends Megatrends remain long-term growth drivers

Globalization & Demographic change Digitalization

Sustainability

Sector diversification smoothes out economic fluctuations.

Overview	Figures	Outlook	Appendix	6

Highlights Full Year 2021

• Group sales of EUR 79.1 million above the Q3 2021 forecast (5% to 8%) and 10% above previous year (2020: EUR 71.9 million)
• Group operating EBIT of EUR 5.8 million (2020: EUR 3.2 million) above pre-pandemic level (EUR 5.1 million)
• Significant improvement in operating EBIT margin to 7.3% underlines success of B2DD
• Dividend increased to EUR 0.12 per share (2020: EUR 0.08)
• Order backlog as of 31 December 2021 (EUR 22.9 EUR) doubled compared to 31 December 2020
• High demand in the classic industrial sectors (mechanical engineering, automotive) catch-up effects as well as retooling to more sustainable manufacturing processes
• High-margin medical technology business with flat demand trend due to COVID-19, nevertheless consistent expansion of the product portfolio of medical hose solutions with a long-term focus
• Stable liquidity situation despite strategic working capital build-up high cash balance at EUR 9.6 million
• Liquidity further increased and net debt reduced

Overview	Figures	Outlook	Appendix	7
Figures	Full	Year 2021

Overview	Figures	Outlook	Appendix	8

Earnings development Masterflex 2019 - 2021

In EUR million	FY 2019	FY 2020	FY 2021
Revenue	80.0	71.9	79.1
EBITDA	9.7	7.9	10.7
EBIT (operational)	5.1	3.2	5.8
EBIT-margin	6.3%	4.4%	7.3%
Group result	2.5	0.8	3.3
EPS (in EUR)	0.26	0.08	0.34
Debt to equity	2.5	2.3	1.5
Net debt	23.9	18.2	15.9

Overview	Figures	Outlook	Appendix	9

Matzen		& Timm only
--------	--	-------------	--	--

In EUR million	FY 2019	FY 2020	FY 2021
Revenue	9.8	6.7	6.6
EBIT	0.5	-0.5	-1.5

Group without Matzen & Timm

In EUR million	FY 2019	FY 2020	FY 2021
Revenue	70.2	65.2	72.5
EBIT	4.5	3.7	7.2
EBIT-margin	6.4%	5.7%	10.0%

• Medium-term earnings target of "Double Digit" without Matzen & Timm already achieved with EBIT-margin of 10.0%

Overview	Figures	Outlook	Appendix	10

EBIT-bridge 2020 to 2021 (Group)

In EUR million

Overview	Figures	Outlook	Appendix	11

Individual quarters 2021

Revenue by quarter In EUR million

Operating EBIT by quarter In EUR million

• Sound business performance in the first nine months of 2021
• Strong Q4 sales and balanced EBIT despite fewer billing days

Overview	Figures	Outlook	Appendix	12

Equity ratio remains solid

Group equity and equity ratio

In EUR million and %

• Stable Group equity as of 31 December 2021 at EUR 45 million and dividend continuity at the same time
• High equity ratio of just under 57%
• Increase in cash and cash equivalents to EUR 9.6 million as of 31 December 2021 (2020: EUR 9.2 million)
• Liquidity increased and net debt reduced

Overview	Figures	Outlook	Appendix	13

Masterflex share and dividend information

Analyst recommendations - Share price potential of around 60%

• Montega Research: 8 March 2022 Recommendation: BUY, Target price: EUR 11.00
• SMC Research: 9 March 2022 Recommendation: BUY, Target price: EUR 10.60
• METZLER: 2 March 2022 Recommendation: BUY, Target price: EUR 8.50

Overview	Figures	Outlook	Appendix	14
Outlook

Overview	Figures	Outlook	Appendix	15

Outlook and challenges 2022

• Despite all the challenges (ongoing Covid-19 pandemic and Ukraine war), we see the sustained achievement of a double-digit EBIT-margin as feasible in 2022
• Business development and expectations in the individual target industries continue to be highly heterogeneous, but fundamentally positive. Due to the broad range of applications of Masterflex hoses in different industries, economic fluctuations can be balanced out
• For the full year 2022, we expect a revenue of between EUR 83 EUR million and EUR 87 million
• In terms of operating EBIT, we expect a range of between EUR 8.3 million and EUR 9.0 million for 2022
• Manage pricing versus inflation well
• Maintain raw material availability, no significant supply bottlenecks
• Get M&T back on track/rapid ramp-up Czech Republic to work off high order backlog (EUR 6 million)
• Medical technology growth driver/no further Covid-19-related restrictions

Overview	Figures	Outlook	Appendix	16

Medium-term forecast

Masterflex earnings to grow faster than revenue in the future:

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

Overview	Figures	Outlook	Appendix	17

Why invest in Masterflex?

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

1. Masterflex has close ties with 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.

Strategic acquisitions offer additional growth potential.

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

1.

Overview	Figures	Outlook	Appendix	18
Appendix

Overview	Figures	Outlook	Appendix	19

Masterflex at a glance

in kEUR	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021
Revenue	66,486	74,675	77,243	79,969	71,881	79,068
EBITDA	8,811	10,263	9,592	9,656	7,892	10,670
EBIT (operational)	6,097	7,081	6,251	5,058	3,167	5,764
Group result	2,928	4,311	3,373	2,532	793	3,282
EPS (in EUR)	0.34	0.45	0.35	0.26	0.08	0.34

1. Pre-pandemic level reached again in FY 2021 and back on growth path

2. Significant improvement in profitability; disproportionate earnings growth expected

Overview	Figures	Outlook	Appendix	20

Summary of our strategic goals

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

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

Overview	Figures	Outlook	Appendix	21

Financial calendar and contact

Financial calendar 2022

31 March	Annual Report 2021
11 May	Quarterly Statement 1/2022
23- 25 May	Spring Conference, Frankfurt
14 June	Annual General Meeting 2002, virtual
10 August	Half-Year Report 2022
25 August	Hamburg Investors Day
9 November	Quarterly Statement 3/2022
15 December	Munich Capital Market Conference, Munich