DGAP-News

KAP SHOWS POSITIVE DEVELOPMENT IN THE 2020 FINANCIAL YEAR DESPITE PANDEMIC AND SPEEDS UP THE ACTION PROGRAMME 'ACCELERATE'

DGAP-News: KAP AG / Key word(s): Annual Report/Annual Results KAP SHOWS POSITIVE DEVELOPMENT IN THE 2020 FINANCIAL YEAR DESPITE PANDEMIC AND SPEEDS UP THE ACTION PROGRAMME 'ACCELERATE' 23.04.2021 / 15:14 The issuer is solely responsible for the content of this announcement. KAP SHOWS POSITIVE DEVELOPMENT IN THE 2020 FINANCIAL YEAR DESPITE PANDEMIC AND SPEEDS UP THE ACTION PROGRAMME 'ACCELERATE'

• Revenue for the 2020 financial year better than expected at €338.7 million, with a significantly improved normalised EBITDA margin of 9.6% (previous year: 8.6%) and positive free cash flow of €34.2 million (previous year: €19.4 million)
• New programme of measures Accelerate with the goal of significantly increased operating profit by end of 2023
• Coating and packaging expertise in the flexible films segment boosted further with two transactions in Q1 2021
• Confirmed forecast for 2021: revenue between €300 and 330 million and normalised EBITDA between €27 and 33 million (excluding the it/services segment)

Fulda, 23 April 2021 - KAP AG ("KAP"), a listed medium-sized industrial holding company, proved that its diversified investment model is crisis-proof during the challenging financial year of 2020. Through the successful implementation of its group strategy, the company increased its profitability significantly despite the sombre market environment and reduced its net debt substantially by restructuring. KAP released its 2020 Annual Report today with audited consolidated IFRS financial statements and extensive information about its recently published strategy programme called Accelerate.

Robust business performance during the pandemic
The KAP Group, including the segment held for sale (it/services), achieved revenue of €338.7 million (previous year: €372.8 million) during the 2020 financial year. The consolidated revenue therefore came in at 9.1% below the previous year's, though above the €300 to 330 million forecast in September 2020. At a regional level, there was positive momentum in Asia whilst Germany and America performed more weakly. The normalised earnings before interest, taxes, depreciation and amortisation ("normalised EBITDA") also developed better than expected. At €32.5 million (previous year: €31.9 million), they were above the announced range of €27 to 30 million and 1.9% higher than the previous year. The normalised EBITDA margin also improved by 1.0 percentage points to 9.6%. Consequently, the KAP Group's most important key performance indicator is short of the minimum 10.0% target by only an insignificant amount. The normalised earnings during the reporting period included a total adjustment of €-2.8 million (previous year: €-4.3 million) relating to insurance payments, one-time expenses in connection with fire damage in the surface technologies segment, transaction expenses and severance costs. Although the earnings development at an operational level was very pleasing, the consolidated net income of €-2.7 million remained slightly negative due to non-recurring charges, even if it was a considerable improvement on the previous year (€-14.1 million). The Management Board, together with the Supervisory Board, has resolved to propose a dividend of €0.75 per share for the 2020 financial year at the Annual General Meeting due to the high positive free cash flow, despite the impacts of the pandemic. KAP AG is therefore maintaining its shareholder-friendly dividend policy.