KAP : > Geschäftszahlen 2023 (April 2024, nur in Englisch)

KAP AG

We build market leaders!

2023 Full Year Figures

Disclaimer

This presentation was prepared by KAP AG exclusively for the benefit and internal use of the Recipient and solely as a basis for discussion of certain issues described herein. This presentation is strictly confidential and may not be reproduced, summarised or disclosed, in whole or in part, without the prior written authorisation of KAP AG, and by accepting this presentation you hereby agree to be bound by the restrictions contained herein.

Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct. KAP AG does not assume any responsibility with respect to the authenticity, origin, validity, accuracy or completeness of the information and data contained herein or assumes any obligation for damages, losses or costs (including, without limitation, any direct or consequential losses) resulting from any errors or omissions in this presentation. The Recipient are advised not to rely solely on the information provided in this presentation but to undertake their own assessments and/or obtain their own professional tax, legal, financial and other advice of any kind as it deems necessary. Any liabilities arising from a breach of duty at the time of contracting (Section 311 para 2 and 3 of the German Civil Code (culpa in contrahendo)) shall be excluded.

The opinions contained in this presentation are necessarily based on current market conditions, which may change significantly over a short period of time. Changes and events occurring after the date hereof may, therefore, affect the validity of the conclusions contained in this presentation and KAP AG assumes no obligation to update and/or revise this presentation or the information and data upon which it has been based.

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Table of contents

1. Company overview and business model
2. Financials 2023
3. Outlook

Marten Julius

CEO

• Responsibilities (i.a.): strategy, business development, M&A, Finance, IR, Sustainability
• Overall, >25 years relevant experience in Management, M&A, Finance & Controlling

Dr. Hartmut Sauer

• Segment Manager surface technologies & M&A
• Overall, >20 years relevant experience in Management and M&A

Company overview & business model

Focus on attractive niche markets in selected industrial sectors

KAP at a glance

Industrial holding focused on midsize niche markets

• Long-termsegment strategy for developing market leaders with sustainable growth potential
• Clear focus on profitable industrial sectors in attractive niche markets
• Experienced solution specialist serving individual and complex customer needs
• Global presence with 24 locations in 11 countries
• Listed on Regulated Market of Frankfurt Stock Exchange (General Standard)

Revenue 2023

€337.0m

(-22.3%)

Employees

Dec-2023

2,479

EBITDA 2023 (normalised)

€17.3m

(-51.8 %)

Market Cap(1)

€109.5m

(1) Calculation with XETRA closing price on 29 Dec, 2023

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We develop industrial products and technological solutions for international clients

KAP Group - Segment overview

flexible films

One of the leading specialists for extrusion coatings in Europe

• Market leading in reinforced swimming pool films, high-end projection screens, membranes and tarpaulin sheets.
• Broad range of applications in swimming pool liners, window laminates, technical waterproofing and entertainment

engineered products

Leading manufacturer of technical textiles with global presence

• Application in the areas of mobility, industry, mining, pharmaceuticals, consumer goods, aviation and oil & gas
• Special threads and fabrics improve stability and reduce weight in the end products
• Great potential for the future through new developments and improved recyclability

surface technologies

Leading market position in surface technology

• Diverse surface processes in refinement of metal surfaces for customers from the furniture, machinery and electrical industries as well as food, automotive and e- mobility
• Customised process adaptations for corrosion protection and durability as well for decorative purpose

precision components

European leading manufacturer of precision components

• Development and production of highly complex plastic and plastic- metal composite parts in large quantities and low tolerance
• Application in electro- and electromechanical special drives such as electric motors and e- bikes, wipers and washing machines

Pool liners	High-end	Engineered yarns Engineered Fabrics	Zinck Nickel	Passivation	Composite metal-	Plastic parts
	Projection screens				plastic parts

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Segment attractiveness…

….underpinned by mega trends, defensible barriers to entry, and strong customer base

Segment

attractiveness

flexible films

• Mega trends such as global
  Warming and demographic changes drive business
• Spending growth driven by new builds and need for renovation of pools built in the boom years. Also increasing demand for reinforced liner, over other more expensive solutions, such as mosaic.
• High entry barriers due to:
• • Strong customer relationships with high quality design products
  • Capital intensity of production machinery

engineered products

• Mega trends support significant growth in high-endapplications such as light- weight manufacturing and sustainability
• Sustainable demand for power transmission belts in several industries. Continued development from automotive to industrial applications and from original equipment to replacement markets
• Entry barriers are high due to significant initial investments, customer certification requirements, and extensive need for chemical and production technology experience

surface technology

• Light-weighttrend and electrification in mobility/ automotive business support significant growth in specific solutions for corrosion protection of a variety of metal applications
• Entry barriers are high due to significant asset-heavyproduction and customer specifications. Additionally, customer proximity, and access to qualified staff is critical. KAP ST runs several training and development programmes also as part of university cooperations
• Critical company size in the field of surface technology to win large scale projects internationally

precision components

• Growth of the group is supported by automotive mega trends such as autonomous driving, electrification as well as light-weight manufacturing
• Entry barriers are high due to significant capex, specific technological customer requirements, and customer approval processes
• Proven track-record to also run low cost production sites
• Long lasting and resilient relationship to a highly reputable customer base support organic growth

Top customers

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Longer term market outlook for KAP underpinned by structural mega trends

Mega trends

	engineered	flexible	surface	precision	kap
Mega trends	products	films	technologies	components	Group

Mobility

The future of passengers and goods transport

s Sustainability

Consideration of environmental, economic and social aspects

Electrification

Hybrid or electric powertrains and batteries

KAP's future

growth path is supported by multiple long- term mega trends

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Synergistic buy-and-build platform with active portfolio management and value creation

Business model

KAP operates a professional holding structure that enables its portfolio companies to seize attractive market opportunities

Buy-and-build platform:

Acquisition of medium-sized family businesses that match the segment strategy and increase overall returns

KAP is acting as partner for private owners who prefer to sell their businesses to a trusted industrial holding with a track-record of successfully developing SMEs

Disciplined investment approach with a focus on bolstering existing strategic segments or potentially entering in new attractive segment

Realisation of synergies:

Knowledge transfer and best-practice sharing within the Group facilitates early identification and implementation of market trends and technology

Bundling of central functions:

Portfolio benefits from professional support functions and respective cost savings

flexible

films

Operative Excellence

Strategy &

M&A

engineered	surface	precision
products	technologies	components

Buy-and-build platform for profitable growth

Operating	Innovation &	Growth
leverage	Know-how Transfer	strategy
Funding,	Compliance, Governance &	Human
Controlling &	Resources, Legal
Risk Management
Accounting	& IT

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Financials 2023