DGAP-News

KAP SHOWS POSITIVE DEVELOPMENT IN THE 2020 FINANCIAL YEAR DESPITE PANDEMIC AND SPEEDS UP THE ACTION PROGRAMME 'ACCELERATE' - Seite 2

Eckehard Forberich, member and Spokesperson of the KAP AG Management Board: "We owe our robust business performance in these pandemic conditions mostly to our diversified investment approach with companies in leading market positions in niche markets. Additionally, we laid the foundation for returning to a strong concentration on the group's ongoing development with rigorous working capital management and by selling properties in Fulda. We concluded two bolt-on transactions and, moreover, we consolidated strategic improvement initiatives that had already been initiated into a single coordinated transformation programme. With Accelerate, we are creating an environment for profitable internal and external growth with a target of turning the KAP Group into a leading, forward-looking industrial holding company with lasting, improved profitability."

Accelerate - accelerated transformation by end of 2023
In order to achieve the KAP Group's strategic and operational vision, the Management Board has considered the existing group strategy and defined concrete sets of measures for business segments. These measures with a long-term focus are planned to be implemented over the next two years and will achieve their full effect in 2023. The overarching medium-term target of the Accelerate strategy programme is further significant improvement in operating profitability.

Accelerate puts a focus on six key points: boosting sales activity, increasing efficiency, safeguarding attractive opportunities for the future, optimising financial flexibility, increasing revenue and earning power and expanding the portfolio; and strengthening risk management across the group.

The focus on sales will be made stronger for all segments to accelerate organic growth in particular. This will also involve a special focus on ongoing efficiency increases. The future prospects of the business segments are being safeguarded with highly specialised development of applications and investment in existing and new sites. For the group's segments, focusing on the portfolio will mean leaner site and leadership structures as well as targeted mergers and acquisitions for inorganic growth. The KAP Group's overarching KPI and risk management systems will be expanded further and the group's controlling strengthened in order to manage these complex processes. The strategy programme is presented in detail in the 2020 Annual Report published today.