Masterflex SE: Dividend Payout Ability regained through Growth Path

Preliminary figures about revenues and EBIT confirmed * Net Profit Eur 3.0 million * EpS Eur 0.34

Gelsenkirchen/Germany (pta005/30.03.2015/08:00 UTC+2) In the 2014 financial year, Masterflex SE steadily continued the growth trend it has enjoyed for four years. Turnover of the specialist supplier of high-tech hoses and connection systems, which operates almost everywhere in the world, increased by 7.9 percent to its current level of Eur 62.5 million. The operating result grew by 3.3 percent to Eur 6.3 million producing an operating profitability (EBIT margin) of 10.1 percent. Thus, the company was able to confirm preliminary figures for the 2014 financial year in an adhoc announcement published on 3 March. The consolidated net profit at Eur 3.0 million is higher than the previous year.

Dr. Andreas Bastin, CEO of the Masterflex Group, said, "Due to the pace of growth and sustained profitability, 2014 was a good year for us. Yet, true to the saying 'Good is the enemy of better', we are nevertheless certain that there is always room for improvement. And to become even better is our declared goal for 2015. Because we want to be the market leader in all of the global markets we address in the medium term. In addition to Europe, these are located in America and Asia in particular".

The financial result in 2014 at Eur -1.1 million was 28.8 percent below the previous year (Eur -1.6 million). The syndicated loan negotiated in 2013 with its preferential rates of interest is reflected here significantly. Expenses for income tax rose to Eur 2.0 million (previous year Eur 1.7 million*); in the previous year, a not insignificant portion is attributable to the result correction with regard to the deferred tax assets in accordance with IAS 8. Earnings from continued operations amounted to Eur 3.2 million in the past year (previous year Eur 2.9 million*) and the expenses from discontinued operations were Eur -0.2 million (Eur -0.1 million). The consolidated net profit amounts to Eur 3.0 million (previous year Eur 2.6 million*) or Eur 0.34 per share (previous year Eur 0.29*).

Operating cash flow remained at Eur 6.8 million roughly at the previous year's level (Eur 8.0 million) taking into account the stronger increase in income taxes paid. The equity ratio lies at 45.9 percent (previous year 40.7 percent*).

In accordance with the HGB individual financial statement applicable to making dividend payouts, the specialist supplier of high-tech hoses achieved the capability to pay out a dividend at the end of the 2014 financial year for the first time in several years. Bastin said, "On this basis, the first phase of our growth which started following the restructuring in 2011 ended faster than expected. The payment of a dividend is a topic of our agenda over the next few years. Now we just have to stay on track with respect to the partly conflicting objectives of 'reducing debt', 'financing growth', 'making use of opportunities for company acquisitions' and payment of a dividend".

The technology-leading Masterflex Group introduced two particularly important product innovations in 2014. The main advantage of the, in the first half of 2014 newly introduced Master-PUR Trivolution is the combination of its three features of antistatic, flame-resistance and microbial resistance combined into one single hose, which led to its now trademark-protected epithet "TRIvolution". And with its second innovation, the high temperature FireFlex(TM) exhaust hose, the Masterflex Group in the USA under the Masterduct brand is offering an important product for vehicle fleets in the fire service. Fireflex(TM), the easy-to-assemble yet very robust hose, simplifies the maintenance process considerably, allowing heavy-duty fire appliances to be started and maintained without danger to life or limb.

The Masterflex Group remains confident that above-average growth opportunities will continue in the future. Particular management attention is focused on the vision-orientated expansion of the company on an international level, in particular Asia and the American continent. Bastin: "In China, we will further penetrate the giant Chinese market with a now fully integrated, motivated sales force and recently expanded range of plant machinery. The same applies to many of China's neighbours. And in the USA, we have a very stable starting position for our product portfolio which we will strengthen and expand.

In addition, the Masterflex Group is carefully exploring opportunities to acquire companies in the global markets for high-tech hoses and connection systems. In this regard, comprehensive global industry documentation on market players and products can be drawn on which the group has built up over more than half a decade, based on its own market observation and analysis.

To boost its perception as a globally active yet also unified group of companies, from now on Masterflex SE will feature a slightly revised logo for its umbrella brand Masterflex Group and its five product brands Masterflex, Matzen & Timm, Novoplast Schlauchtechnik, Fleima-Plastic and Masterduct (see attached picture).

This logo symbolises the strong unity of the five product brands which combine a wide variety of competencies of all types of connecting systems under the umbrella of the Masterflex Group. In making this small alteration, the Masterflex Group expects an improved perception of itself and its products and, in the longer term, more business. Further, from now on, all employee email addresses will gradually be standardised throughout the world locations.

The Annual General Meeting of the Masterflex Group will take place on 16 June 2015 at the Veltins-Arena in Gelsenkirchen.

Selected Key Figures FY 2014 and 2013*

	31.12.14	31.12.13	Change
Consolidated revenue (kEur)	62,466	57,904	7.9 %
EBITDA (kEur)	9,172	8,769	4.6 %
EBIT (kEur)	6,317	6,114	3.3 %
EBT (kEur)	5,194	4,537	14.5 %
Consolidated earnings from	3,232	2,867	12.7 %
continued business units (kEur)
Consolidated earnings from	-154	-80	-92.5 %
discontinued business units (kEur)
Consolidated net income (kEur)	3,043	2,596	17.2 %
Group equity (kEur)	23,835	21,063	13.2 %
Group equity ratio	45.9%	40.7%
Group total assets (kEur)	51,982	51,73	0.5 %
Employees	567	550	3.1 %
EBIT margin	10.1%	10.6%
Return on sales	5.2%	5.0%
EpS (Eur)
from continued business units	0,36	0,3	20.0 %
from discontinued business units	-0,02	-0,01	-100.0 %
from continued and	0,34	0,29	17.2 %
discontinued business units

* Taking into consideration the correction in accordance with IAS 8: In accordance with this accounting standard, an error from 2010 was corrected by a reversal of deferred tax assets of Eur 2.8 million in total; of the total amount, Eur 1.9 million was attributable to the preceding years between 2010 and 2013 (see adhoc announcement of 3 March 2015).

The Masterflex Group is the listed specialist in the development and manufacture of sophisticated hose and connection systems. With 13 operational units in Europe, America and Asia, the group is represented almost everywhere in the world. Internationalisation and innovation are the drivers for growth.

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