Interim Report First Half-Year 2023

WORLD MARKET LEADER 2023 / TOP INNOVATOR 2021

2 Interim Report 2023

Key figures

Highlights of the first six months of 2023

  • 7.3% increase in turnover despite declining economic momentum
  • 12.9% EBIT margin despite special charges
  • Dividend increase to EUR 0.20 per share
  • Order intake remains solid
  • Full-yearforecast confirmed
  • Future programme HERO@ZERO launched

Masterflex at a glance

in EUR thousand

01.01.-30.06.23*

01.01.-30.06.22*

Change

Consolidated revenue

52,684

49,112

7.3%

EBITDA

9,371

9,127

2.7%

EBIT (operational)

6,779

6,696

1.2%

EBIT

6,647

6,664

-0.3%

EBT (operational)

6,220

6,390

-2.7%

Financial result

-559

-242

131.0%

Consolidated result

4,268

4,663

-8.5%

Consolidated earnings per share (EUR)

0.44

0.49

-10.2%

EBIT-margin (operational)

12.9%

13.6%

Net return on sales

8.1%

9.5%

Employees (number)

618

582

6.2%

30.06.23*

31.12.22

Change

Consolidated equity

54,083

51,985

4.0%

Consolidated total assets

91,789

90,218

1.7%

Consolidated equity ratio

58.9%

57.6%

* unaudited

3 Interim Report 2023

Content

To our Shareholders

4

Foreword by the Chairman of the Management Board

4

Masterflex Share and Annual General Meeting

7

Interim Group Management Report

10

Business Development

10

Results of Operations

10

Net Assets of the Group

11

Financial Position of the Group

11

Employees

12

Research and Development

12

Opportunity and Risk Report

12

Outlook

12

Interim Consolidated Financial Statements

13

Consolidated Statement of Financial Position

13

Consolidated Statement of Income for the First Half-Year

15

Consolidated Statement of Comprehensive Income for the First Half-Year

16

Consolidated Statement of Income for the Second Quarter

17

Consolidated Statement of Comprehensive Income for the Second Quarter

18

Consolidated Statement of Changes in Equity

19

Consolidated Statement of Cash Flows

20

Notes to the Consolidated Financial Statements

21

Notes

21

Imprint

25

4

Interim Report 2022

To our Shareholders

Interim Group Management Report

Interim Consolidated Financial Statements

Notes

Foreword by the Chairman of the Management Board

Another successful, but also challenging half-year lies behind us. In the first half of the current 2023 financial year, we as the Masterflex Group were once again able to defy the numerous challenges and increased our revenue despite recessionary developments in some customer indus- tries, supply chains that have not yet been fully restored, high input prices and ongoing geopolitical uncertainties. And strategically, we have also successfully taken decisive steps into the future.

Further revenue growth

Specifically, we were able to increase Group revenue in the first half of 2023 by 7.3% to EUR 52.7 million compared to the extraordinarily strong prior-year period of EUR 49.1 million. This develop-

ment was driven by positive volume effects, particularly in

medical technology and aviation, as

well as price effects. Our operating earnings before interest

and taxes (operating EBIT) amounted

to EUR 6.8 million after EUR 6.7 million in the same period of the previous year. Overall, we thus achieved an operating EBIT margin of 12.9% in relation to Group turnover, after 13.6% in the previous year. Due to rising financing costs, the consolidated net income of EUR 4.3 million (previous year: EUR 4.7 million) was 8.5% below the previous year's value.

We recorded good demand dynamics, especially in the aviation business, in the life science sector and in medical technology. Not surprising in view of the recessionary tendencies, however, is the interim decline in demand in the classic cyclical sectors. Once again, the development in the first half of 2023 shows that we can compensate for cyclical fluctuations in individual customer industries through our broad industry expertise.

The result in the first half of the year was influenced by several simultaneously occurring special effects at our subsidiary APT Advanced Polymer Tubing GmbH. These related to the ERP conver- sion, the relocation from Neuss to Düsseldorf and the associated higher rental costs, as well as raw material price increases that could not yet be taken into account in the sales prices. Overall, these effects reduced EBIT by EUR 0.9 million. We do not expect any cost-burdening special effects in the second half of the year. In addition, we are continuing our successful efficiency measures with­ in the framework of our B2DD efficiency programme in order to realise further margin increases.

With the successful business development despite the economic headwind, we were also able to further strengthen our balance sheet. Equity in the first half of 2023 amounts to EUR 54.1 million after EUR 52.0 million at the end of the 2022 financial year. Our equity ratio is thus a rock-solid 58.9% (31 December 2022: 57.6%), and the balance sheet quality of the Masterflex Group is first- class.

5

Interim Report 2022

To our Shareholders

Interim Group Management Report

Interim Consolidated Financial Statements

Notes

Dr. Andreas Bastin

Chief Executive Officer

Dividend increase by 67% to EUR 0.20

Our Annual General Meeting took place on 07 June 2023 as an attendance event. The successful business development in the 2022 financial year enabled us to increase the dividend distribution by around 67% compared to the previous year and to allow our shareholders to participate in the success of the 2022 financial year with a dividend of EUR 0.20 per share (previous year: EUR 0.12). EUR 1,923,667 (previous year: EUR 1,154,200) of the net retained profits of Masterflex SE were distributed. We will continue to adhere to our dividend policy, which provides for significant profit participation for our shareholders.

Growth strategy 2030 -

with HERO@ZERO into the circular economy

In the past first half of the year, we have set a decisive strategic course for the future. The focus is on our new future programme HERO@ZERO, which is another important factor in our growth strategy. We are also taking into account our responsibility as a plastics processing company and are positioning our company for the future against the background of the expected, ecologically oriented legislative initiatives. Plastics will continue to play a decisive role in many areas of ap- plication, especially in solving major climate and environmental tasks in the field of renewable energies, smart cities, lightweight construction or e-mobility. For us, plastic is not a disposable product, but a high-quality and recyclable raw material thanks to our use of non-toxichigh-tech polymers. We have therefore decided to expand our business model in order to be able to participate economically in the after-use life cycle of our products, which is gaining in importance, beyond the ecological sustainability concept.

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Disclaimer

Masterflex SE published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 05:40:03 UTC.