Masterflex SE: First half of the year sees growth in revenue and profitability

Revenue +3.9% * EBIT margin at 10.1% * a non-recurring effect of court verdict * Two innovations

Gelsenkirchen (pta005/12.08.2016/08:00 UTC+2) Gelsenkirchen, 12 August 2016 - The innovative hose manufacturer increased its revenue by 3.9% to Eur 34.3 million in the first half of 2016. When the prior-period amounts are adjusted for the Russia business (sale of the Russian joint venture in October 2015), revenue with high-tech hoses and connection systems grew by as much as 5.7%. At the same time, operating earnings (EBIT) rose by 13.3% from Eur 3.0 million to Eur 3.5 million, resulting in an EBIT margin of 10.1% (same period of the previous year: 9.2%; 2015 as a whole: 7.6%).

Dr Andreas Bastin, CEO of the Group: "We are more than satisfied with the first half of the year. Our business is going well; our profitability has increased. The latter in particular is a wonderful validation of our package of measures from autumn 2015 to increase our profitability. This package has since been implemented in increments and also enhanced." The aim is to keep the cost of materials ratio stable (H1 2016: 31.0%) and to gradually reduce the staff costs ratio (H1 2016: 38.1%) in the next few years.

In addition, the Masterflex Group launched two product innovations on the market in the first half of 2016: the Master-PUR L-F Trivolution®, an attractively priced, super-light film hose for simple aspiration applications and the templine® VARIO, an additional product from the templine family of heated hoses, here with a quickly replaceable inner transport hose. The products were positively received on the market.

Due to its strength in innovation, the manufacturer of high-tech hoses and connection systems was named a "TOP Innovator 2016" at the end of June. This prize is awarded to the 100 most innovative German medium-sized companies by the Institute for Entrepreneurship and Innovation at the Vienna University of Economics and Business. Bastin: "We were of course delighted about the TOP 100, another award following the title of "Global Market Leader 2016" at the start of the year. We also see this as an endorsement to continue on this path, guided by innovation and efficiency."

In contrast, expenses from discontinued operations increased considerably from Eur -0.03 million to Eur -0.5 million. This is due exclusively to a decision by the Dusseldorf Higher Regional Court. Unlike at the Regional Court of the first instance, the judges of the Higher Regional Court awarded the purchasers of the shares in Clean Air Mobility GmbH the reimbursement of an amount of Eur 0.9 million plus interest. This amount exceeds the accounting provision by around Eur 0.5 million (see ad hoc disclosure dated 16 June 2016). An appeal has been lodged against the decision.

Taking this extraordinary cost into account, the Group result amounts to Eur 1.4 million (previous year: Eur 1.6 million). Earnings per share amount to Eur 0.16 (previous year: Eur 0.18).

The construction of the extension at the headquarters in Gelsenkirchen is on time and on budget. Bastin: "We expect to be able to begin using the production halls, the warehouse and other spaces before the end of the year. By no later than 2017, this will then lead to further savings due to alternative warehouses and rooms as well as logistics pathways that are no longer required. We are therefore looking into the future with optimism."

The table below shows the most important key figures for the first half of 2016. The full interim financial statements as of 30 June 2016 are also available online at http://masterflexgroup.com/en/investor-relations/financial-reports/financial-reports-2016.html

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Emitter:	Masterflex SE Willy-Brandt-Allee 300 45891 Gelsenkirchen Germany
Contact Person:	Dr. Annette Littmann
Phone:	+49 209 97077-0
E-Mail:	a.littmann@masterflexgroup.com
Website:	www.MasterflexGroup.com
ISIN(s):	DE0005492938 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart