DGAP-News

KAP AG SURPASSES REVENUE AND EARNINGS FORECAST DESPITE DIFFICULT MARKET ENVIRONMENT

DGAP-News: KAP AG / Key word(s): Preliminary Results KAP AG SURPASSES REVENUE AND EARNINGS FORECAST DESPITE DIFFICULT MARKET ENVIRONMENT 19.03.2021 / 08:30 The issuer is solely responsible for the content of this announcement. KAP AG SURPASSES REVENUE AND EARNINGS FORECAST DESPITE DIFFICULT MARKET ENVIRONMENT

• At EUR 338.7 million, revenue was above the forecast range of EUR 300 to 330 million
• Normalised EBITDA increased to EUR 32.8 million (+2.8% year-on-year)
• Key milestones were reached in the transformation: Significant improvement in the normalised EBITDA margin to 9.7%
• Significant reduction in net debt and strong cash flow
• Proposed dividend of EUR 0.75 per share (previous year: EUR 0)
• 2021 forecast: revenue between EUR 300 and 330 million and normalised EBITDA between EUR 27 and 33 million (excluding it/services segment)

Fulda, 19 March 2021 - According to preliminary consolidated figures, KAP AG, a listed SME holding company in the industrial sector, generated revenue of EUR 338.7 million in the 2020 financial year (previous year: EUR 372.8 million). This meant that revenue was around 9% lower than the previous year's figure but higher than the forecast of EUR 300 to 330 million specified in September 2020. Normalised earnings before interest, taxes, depreciation and amortisation ("normalised EBITDA") also developed better than expected. At EUR 32.8 million (previous year: EUR 31.9 million), it was higher than the communicated target range of EUR 27 to 30 million and higher than in the previous year. The normalised EBITDA margin also improved year on year, rising 1.1 percentage points to 9.7%. The KAP Group's most important key performance indicator is therefore only marginally below the minimum target of 10.0%. Despite the very good earnings performance at operating level, the consolidated result will remain slightly negative due to non-recurring expenses, although significantly better than in the previous year. The it/services segment's business units held for sale are still fully reflected in the preliminary results for 2020.