DGAP-News: KAP AG / Key word(s): Preliminary Results 
KAP AG SURPASSES REVENUE AND EARNINGS FORECAST DESPITE DIFFICULT MARKET ENVIRONMENT 
2021-03-19 / 08:30 
The issuer is solely responsible for the content of this announcement. 
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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. 
Eckehard Forberich, Member and Spokesman of the Management Board of KAP AG: "We're satisfied with our business 
performance in light of the extremely gloomy and uncertain market environment. The faster-than-expected recovery from 
the effects of the pandemic has shown that we responded appropriately to the crisis and have a diverse and thus overall 
resilient investment portfolio. We'd like to extend our special thanks to our employees. They have demonstrated the 
highest level of flexibility in these difficult times and made this robust business performance possible. We have 
therefore been able to continue to concentrate on significantly improving our operating profitability." 
Varied segment development 
Business performance in the segments was very mixed in 2020. The engineered products, surface technologies and 
precision components segments were hit particularly hard by the COVID-19 pandemic, as they operate in sectors that were 
exposed to a sharp decrease in demand, such as the automotive industry. Their revenue therefore performed significantly 
worse than in the previous year. However, in the engineered products segment, the realignment implemented showed 
visible effects and resulted in a significant improvement in the operating result. The flexible films segment proved to 
be a winner in the crisis and was able to make use of attractive market opportunities, despite the uncertain market 
environment, and thus achieve double-digit growth in revenue. The operating segment result and the profit margin were 
also significantly higher than the previous year. The flexible films segment benefited from its strong market position 
and new sales opportunities, e.g. in the field of medical protective clothing. The it/services segment, which is held 
for sale due to a very attractive offer, was hardly impacted by the pandemic and continued on its growth course. The 
diversified portfolio approach successfully cushioned the considerable effects of the pandemic. 
Significant reduction in net debt and strong cash flow 
KAP AG further optimised its financing structure in the 2020 financial year despite the challenging environment. Net 
debt was thus reduced even more significantly over the course of the year than in the previous year. Compared to 2019, 
it fell by nearly 40% to around EUR 55 million as of 31 December 2020. Due to successful measures to improve working 
capital management and careful management of investments, there were significantly higher cash inflows in 2020. Free 
cash flow increased to EUR 30 million (previous year: EUR 19 million). 
Marten Julius, CFO of KAP AG: "We progressed well again in our strategic development, particularly in the optimisation 
of working capital management. That's made a significant contribution to good cash flow development and to reducing 
debt." 
Proposed dividend of EUR 0.75 per share 
Due to robust business performance and a solid financial position, the Management Board and Supervisory Board have 
decided to propose a dividend of EUR 0.75 per share to the Annual General Meeting despite the impact of the pandemic. 
This continues KAP AG's shareholder-friendly dividend policy. The dividend payment for the 2019 financial year was 
suspended last year due to the uncertainties in connection with the COVID-19 pandemic, which were difficult to assess 
at the time. This is now being made up for. 
Acceleration of the transformation in the 2021 financial year 
The Management Board will systematically continue the KAP Group's strategic realignment in 2021 in order to create the 
basis for a long-term and sustainable improvement in profitability. The focus in this process is largely on 
strengthening sales and continuing the efficiency measures. For the 2021 financial year, the Management Board expects 
revenue between EUR 300 and 330 million and normalised EBITDA of EUR 27 to 33 million. This forecast does not take into 
account the it/services segment's discontinued operations or the currently unpredictable impact of the COVID-19 
pandemic. 
Eckehard Forberich, Member and Spokesman of the Management Board of KAP AG: "We've already taken the first steps 
towards achieving our medium-term targets. We want to further expand our leading positions in our existing industrial 
niche markets and become even more profitable. Like in the previous year, we're also going to continue to work on 
making KAP AG even leaner and more efficient overall." 
We will publish the complete audited 2020 annual report on 23 April 2021 and make it available on our website: https:// 
www.kap.de/en/investor-relations/reports/annual-reports. 
Contact: 
KAP AG 
Marten Julius (CFO) 
E: m.julius@kap.de 
T: +49 661 103 715 
Kirchhoff Consult AG 
Nicole Schüttforth 
E: nicole.schuettforth@kirchhoff.de 
T: +49 40 609 186 64 
About KAP AG 
KAP AG is a listed industrial group in the upper midsize market that offers attractive growth opportunities in its 
respective niche markets. KAP AG focuses on five different business areas: engineered products, flexible films, surface 
technologies, precision components and it/services. Through targeted acquisitions, the company strengthens its existing 
business areas or exploits new market opportunities. KAP allows its shareholders to participate in its long-term 
profitable growth through a stable dividend. The group currently has 29 locations and around 2,700 employees in 12 
countries. The shares of KAP AG are listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard, 
ISIN DE0006208408). 
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2021-03-19 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
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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 (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Stuttgart, Tradegate Exchange 
EQS News ID:  1176874 
 
End of News   DGAP News Service 
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1176874 2021-03-19

(END) Dow Jones Newswires

March 19, 2021 03:31 ET (07:31 GMT)