Masterflex : Ad hoc Release: Annual Forecast Adjusted

On the basis of the provisional nine-month figures, the Executive Board no longer expects to achieve the forecast for the 2015 financial year

Gelsenkirchen, 26^th October 2015 - On the basis of the provisional nine-month figures, the Executive Board of Masterflex SE no longer expects to achieve the forecast for the 2015 financial year of above-average revenue growth and a slight increase in operating earnings (EBIT). At present, revenue growth of 2% to 4% seems realistic. This business volume will be too low to back up the measures financed in recent months in expectation of greater expansion with sufficient earnings. This means that the resulting EBIT margin will no longer be in double digits, but rather in single digits.

Various measures are being taken to improve profitability, but they will not take full effect until 2016. In light of this, the Executive Board expects operating earnings for 2015 to fall slightly year on year.

NOTES

The expected revenue boost in the second half of 2015 did not materialise due to problems in the smooth hose business at Novoplast Schlauchtechnik coupled with the problems on the American market as explained previously. The revenue from the major order in the Novoplast Schlauchtechnik brand's medical products business unit - which has had problems since the end of last year - has not yet been ramped back up because of technical quality issues. In addition, some projects in this brand's industrial business unit have been delayed for various reasons. Relief was originally expected here, too, award summer this year at the latest.

The Masterflex Group's other sites are no longer able to compensate for these revenue losses in 2015. As already announced in connection with Q2, this applies in particular to business in the USA, where the Masterflex Group sees a great deal of business potential for high-tech hoses and connection systems.

In order to avoid such circumstances or to identify them much earlier in the future, project structures and processes have been and are being adjusted. This includes changes in project responsibilities and management at Novoplast Schlauchtechnik, in both the industrial and medical business units and within the management team. These have already been implemented in recent weeks. In the USA, the management was replaced as of 1^st September; the strategy for this high-potential market is currently being revised.

The Executive Board is also working on a package of further measures for 2016. This is intended to strengthen the Group's profitability with the aim of a rapid return to a double-digit EBIT margin and will be announced soon.