Masterflex grows in 2019 for the 10th year in sequence with consistently positive profitability

- Revenues up by 3.5 % to EUR 80.0 million

- Net income 2.5 million Euro, dividend 0.07 Euro per share

- Significant expansion of revenues in the medical technology area

- Corona effects on business development 2020 currently not predictable, therefore no forecast possible yet

- Medium-term outlook remains positive

Gelsenkirchen, 31 March 2020 - "With a quite successful 2019 financial year, the Masterflex Group has laid the basis for at least cushioning the negative effects of the corona crisis in 2020 and continuing to shape the medium-term prospects for our group positively. The significant expansion of our revenues in industrial sectors such as medical technology is offsetting declines in other industries such as aviation and mechanical engineering. In addition, our expanded "Back to Double Digit" optimization program, which has been running since 2019, makes us more resistant to fluctuations in demand and volume. This time lead in reducing our cost base should also help us. As of today, all our supply chains are intact and all sites continue to produce," said Dr. Andres Bastin, CEO of the Masterflex Group.

2019 financial year
In 2019, the Masterflex Group was able to grow for the tenth year in sequence and increase revenues by 3.5% to EUR 80.0 million, compared with EUR 77.2 million in the previous year. Operating EBIT generated in 2019 amounted to EUR 5.1 million after EUR 6.3 million in 2018, while the operating EBIT margin reached 6.3% (previous year: 8.1%). The Masterflex Group has thus achieved the revenue forecast that was adjusted in November 2019 and slightly exceeded the EBIT margin. The company had forecast consolidated revenues in a range of EUR 79.0 million to EUR 80.0 million and an adjusted operating EBIT margin in a range of 5% to 6%.

Consolidated net income for 2019 was EUR 2.5 million, compared with EUR 3.4 million in the previous year. Equity increased from Euro 40.2 million to Euro 42.0 million. The calculated equity ratio declined from 53.5 % to 51.5 %, in particular due to the extension of the balance sheet, which resulted from the first-time recognition in accordance with IFRS 16. The operating cash flow could be increased from Euro 4.7 million to Euro 6.7 million in 2019.

Dr. Andreas Bastin: "After an overall good momentum in the first half of the year we were also able to resist the economic slowdown for a long time in the second half of the year, which had a disproportionately high impact in some of our target industries such as automotive. The fact that we have been able to consistently expand revenues in fields such as medical technology in recent years - at twice the rate of growth of our total revenues - has also been a great help in this regard. In 2019, we generated 17% of our consolidated revenues in the medical technology sector. In the fourth quarter of 2019, however, we were no longer able to compensate for the slowdown in certain target industries. As a result, 2019 fell slightly short of our expectations, even though we were even able to exceed our forecast, which had been adjusted during the year. In addition, we also did our homework on the financing side with a new syndicated loan signed in 2019, which gives us even more scope than the old agreement, which is very important in the possible future development. "

2020 forecast not possible - medium-term growth and profit targets confirmed
A concrete growth and financial forecast for the 2020 financial year is not possible due to the daily increasing uncertainties regarding the effects of the coronavirus pandemic. At present, the Management Board believes that a forecast for the development of revenues and earnings in 2020 is only possible to the extent that, due to the corona issue, a significant decline in revenues and EBIT on the one hand represents a realistic scenario if the spread with a strong impact on the global economy cannot be stopped for a longer period of time and there are also interruptions in production. In this case, a double-digit drop in revenues and a corresponding decline in EBIT is also to be expected. On the other hand, in a scenario in which the spread of the virus is quickly brought under control and the consequences for the economy are limited, a steady sales trend or - in the case of catch-up effects - even slight revenues growth may be considered possible. The current developments in China and Asia show that such a scenario is also conceivable. As soon as the effects of the coronavirus pandemic can be better estimated, the Masterflex Group will publish a concrete forecast for 2020. Nevertheless, Masterflex expects the medium-term growth path to continue over the next three years. It also remains the goal of achieving a sustained double-digit EBIT margin again from 2022. This is based on the Company's continued excellent market position on the global market for high-end hose and connector solutions, its global positioning, broadly diversified client industries and its long-standing innovation leadership in combination with the measures from the B2DD programme for a sustained increase in earnings power.

Dividend
The Management Board and the Supervisory Board will propose to the Annual General Meeting on 23 June 2020 that an amount of EUR 0.7 million be distributed to the shareholders as a dividend from the balance sheet profit of EUR 10.6 million as of 31 December 2019 of Masterflex SE and that the remaining amount of EUR 9.9 million be carried forward to new account. This corresponds to a dividend of Euro 0.07 per share.

Annual Report
The 2019 annual report has been published on www.masterflexgroup.com.

Conference call
A conference call will be held on 2 April 2020, 10:00 a.m. for representatives of the press, analysts and institutional investors. The company's current presentation on the 2019 financial figures will be published on www.masterflexgroup.com.

Masterflex Group specializes in the development and production of high-quality hose and connection systems. With 14 operating units in Europe, America and Asia, the Group maintains a nearly global presence. Its growth drivers are internationalization, innovation, operational excellence and digitization. Masterflex shares (German Securities ID: 549293) have been admitted for trading in Deutsche Börse's Prime Standard segment since 2000.

Contact: Frank Ostermair/Linh Chung, Better Orange IR & HV AG, Phone: 49 89 88 96 906 14, E-mail: [email protected]