KAP DEVELOPS IN LINE WITH ADJUSTED EXPECTATIONS IN A DIFFICULT ENVIRONMENT
IN 2023 AND IMPLEMENTS FURTHER MEASURES TO INCREASE EFFICIENCY IN 2024

EQS-News: KAP AG / Key word(s): Preliminary Results
KAP DEVELOPS IN LINE WITH ADJUSTED EXPECTATIONS IN A DIFFICULT ENVIRONMENT
IN 2023 AND IMPLEMENTS FURTHER MEASURES TO INCREASE EFFICIENCY IN 2024

14.03.2024 / 12:53 CET/CEST
The issuer is solely responsible for the content of this announcement.

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KAP DEVELOPS IN LINE WITH ADJUSTED EXPECTATIONS IN A DIFFICULT ENVIRONMENT
IN 2023 AND IMPLEMENTS FURTHER MEASURES TO INCREASE EFFICIENCY IN 2024

  * Revenue reaches EUR316.7 million and normalised EBITDA EUR15.1 million
    (adjusted for the companies sold in April 2023)

* Business develops in line with adjusted annual guidance forecast

* Dividend to be suspended to strengthen the capital and financing base

  * Further adjustments and efficiency improvements are planned for the
    current financial year

Fulda, 14 March 2024 - KAP AG ("KAP"), a medium-sized industrial holding
company listed on the stock exchange, generated revenue of EUR337.0 million in
the 2023 financial year according to preliminary figures. The decline of
22.3% on the previous year is mainly due to the sale of a subsection of the
flexible films segment as well as adverse economic factors. Excluding the
divested operations in the reporting period, revenue amounted to EUR316.7
million, down 12.1% year on year.

Normalised earnings before interest, taxes, depreciation and amortisation
(normalised EBITDA) totalled EUR16.8 million in 2023, falling short of the
previous year's figure by 53.2%. The margin came to 5.0% (previous year:
8.3%). This was due in particular to declines in earnings in the engineered
products, flexible films and surface technologies segments. Normalised
EBITDA without the contributions to earnings of the divested companies
decreased by 35.7% to EUR15.1 million. This results in a normalised EBITDA
margin of 4.8% for 2023 (previous year: 6.5%).

KAP is therefore in line with the guidance forecast as adjusted in August
2023, in which the Management Board expected significantly lower revenue and
significantly lower normalised EBITDA for the full year, in each case with
an anticipated year-on-year change in the low double-digit percentage range.

Marten Julius, member and Spokesman of the Management Board of KAP AG: "2023
was dominated by geopolitical tensions, rising energy costs and adverse
economic factors. Although we have developed in line with our adjusted
expectations, we cannot be satisfied with our earnings for the year. We have
already made structural adjustments to make the KAP Group and its segments
even more efficient and leaner and to increase profitability again. In any
case, we have to constantly challenge our position in order to remain
competitive in the long term. In light of the measures already largely
implemented, we are optimistic about KAP's development in the current
financial year."

Heterogeneous business development in the segments
Revenue in the flexible films segment decreased by 44.5% year on year to
EUR98.3 million. On a comparable basis, that is excluding the companies
divested in April 2023, revenue was down 24.8%. The development in the
reporting year is primarily due to the sluggish sell-off of our customers'
high inventories and the general slowdown in the construction industry.
Having said that, the megatrends of climate change and demographic change as
well as the declining number of public swimming pools will have a positive
impact on the development of this segment in the long term. The first signs
of a trend reversal were already noticeable at the end of 2023 in the form
of rising order volumes. Normalised EBITDA decreased by 56.3% to EUR9.8
million (previous year: EUR22.4 million), down 21.4% on a comparable basis.

In the engineered products segment, both revenue and normalised EBITDA fell
significantly. This is primarily due to the economic influences in the
automotive sector and the expiry of a high-margin customer contract at the
end of 2022. At EUR116.7 million, revenue was 19.9% below the previous year's
figure, while normalised EBITDA came to EUR3.1 million (previous year: EUR9.2
million). Extensive structural adjustments to further increase production
efficiency and streamline organisational structures have already been
initiated.

The weak global economy in the automotive industry was also clearly felt in
the surface technologies segment. Nevertheless, it was possible to increase
revenue slightly. The segment's revenue reached EUR68.6 million (previous
year: EUR65.3 million). Normalised EBITDA totalled EUR5.4 million in the
reporting year (previous year: EUR6.8 million).

On the back of a higher-quality product mix, price adjustments and
rigorously implemented efficiency enhancement measures in established
production processes as well as a sharper focus on profitable niche markets,
the precision components segment was able to increase both revenue and
EBITDA year on year. At EUR53.4 million, revenue was thus 17.1% above the
previous year's figure, while normalised EBITDA came to EUR2.3 million
(previous year: EUR-0.1 million).

Dividend for the 2023 financial year
KAP AG's Management Board has decided to propose to the Annual General
Meeting to be convened on 12 July 2024 that no dividend be distributed for
the 2023 financial year. The KAP Group's financial performance in the 2023
financial year was not immune to the global crises and the associated
economic challenges, which had a direct impact.

Extensive structural adjustments have already been initiated and implemented
in order to make the KAP Group and its segments more efficient and leaner
and to increase profitability again. One aim is to strengthen the KAP
Group's capital and financing base by foregoing the dividend. The Company
will generally continue to strive to allow shareholders to participate in
the Company's business performance through an attractive dividend in the
coming years.

Rigorously implementing the strategy
As part of the segment strategy, KAP continued to strategically develop its
portfolio in the 2023 financial year. In this context, a total of seven
companies of the flexible films segment were sold to Kingspan Holding GmbH,
a company of Kingspan Group Plc., Ireland.

The complete and audited annual report 2023 and the guidance forecast for
the 2024 financial year will be available to download on KAP AG's website
from 26 April.

Contact:
KAP AG
Kai Knitter
Head of Investor Relations & Corporate Communications
investorrelations@kap.de
+49 661 103 327

About KAP AG
KAP AG is a listed industrial holding company focused on upper mid-size
operating companies that seizes attractive growth opportunities in their
respective niche markets. Specifically, KAP AG currently focuses on four
distinct operating segments: engineered products, flexible films, surface
technologies and precision components. The Group lets its shareholders
participate in the long-term sustainable value development through an
attractive dividend. KAP AG currently has some 2,600 employees at 24
locations in eleven countries. KAP AG is a Participant of the United Nations
Global Compact and adheres to its principles-based approach to responsible
business. KAP AG's shares are listed on the Regulated Market of the
Frankfurt Stock Exchange (General Standard, ISIN DE0006208408).


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   Language:       English
   Company:        KAP AG
                   Edelzeller Straße 44
                   36043 Fulda
                   Germany
   Phone:          06611030
   Fax:            0661103830
   E-mail:         office@kap.de
   Internet:       www.kap.de
   ISIN:           DE0006208408
   WKN:            620840
   Listed:         Regulated Market in Frankfurt (General Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1858177

End of News EQS News Service
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1858177 14.03.2024 CET/CEST