DGAP-News

KAP AG CONFIRMS ANNUAL FORECAST FOR 2022 FOLLOWING ROBUST BUSINESS DEVELOPMENT IN THE FIRST QUARTER

DGAP-News: KAP AG / Key word(s): Quarterly / Interim Statement/Quarter Results KAP AG CONFIRMS ANNUAL FORECAST FOR 2022 FOLLOWING ROBUST BUSINESS DEVELOPMENT IN THE FIRST QUARTER 24.05.2022 / 07:30 The issuer is solely responsible for the content of this announcement. KAP CONFIRMS ANNUAL FORECAST FOR 2022 FOLLOWING ROBUST BUSINESS DEVELOPMENT IN THE FIRST QUARTER - Growth despite difficult market environment: Group’s revenue up 25.8% to €113.3 million in the first quarter - Earnings burdened by lagged passing on of rising raw material and energy prices: Normalised EBITDA down to €10.8 million (previous year: €11.7 million) - Forecast for 2022 confirmed: significant increase in revenue and operating result slightly above previous year’s level

Fulda, 24 May 2022 – KAP AG (“KAP”), a listed, mid-sized industrial holding company, made a solid start to the 2022 financial year. At €113.3 million, revenue from continuing operations in the first quarter increased by 25.8% on the previous year’s figure of €90.1 million. The start into the financial year was characterised by a challenging market environment with supply bottlenecks, significant price increases on procurement markets and the economic impact of the Russia-Ukraine war. Earnings before interest, taxes, depreciation and amortisation (EBITDA), which declined slightly to €10.5 million (previous year: €11.5 million), were impacted accordingly. Adjusted for factors not relevant to operations amounting to a net €0.3 million, normalised EBITDA decreased by 6.9% to €10.8 million (previous year: €11.6 million). At 9.5%, the normalised EBITDA margin was slightly below the minimum target margin of 10% (previous year: 12.9%). The decline in profitability is exclusively attributable to the very dynamic price increases, which can largely be passed on to customers, but only with a time lag. The Management Board confirmed the current forecast for the 2022 financial year.

Significant contribution to revenue and earnings from successfully completed acquisition
As part of the ‘Accelerate’ strategy program, KAP AG further strengthened its portfolio in the first quarter of 2022 by completing the full acquisition of Israeli plastics specialist Haogenplast Ltd (“Haogenplast”) in the flexible films segment. A leading supplier in the field of high-quality plastic products, the company mainly produces films for applications in the construction sector such as swimming pools, window laminates and technically high-quality weatherproof roofing. In the flexible films segment, Haogenplast has already contributed €13.7 million in profitable revenue, thus accelerating KAP AG’s course for growth under the ‘Accelerate’ programme.