Kap Ag · XETR:IUR
Kap — M.M. Warburg Investment Conference 2022
34 slides from Kap's conference presentation, Feb 16, 2022
Slide 1: KAP AG – We build market leaders!
KAP AG We build market leaders! M.M. Warburg Investment Conference (virtual) 16. Februar 2022
Slide 2: Disclaimer
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 par
Slide 3: Table of contents
Table of contents Eckehard Forberich Marten Julius CEO CFO 1 Company Overview 2 Business Model & ACCELERATE programme 3 Financials 9M 2021 4 Outlook Responsibilities: strategy, Responsibilities: Finance, business development, Controlling, Investor 5 Appendix M&A, Human Resources Relations, Inter
Slide 4: Company Overview
Company Overview
Slide 5: KAP at a glance
KAP at a glance Focus on attractive niche markets in selected industrial sectors Industrial holding focused on midsize niche markets EBITDA 2020(2) Revenue 2020(1) (normalised) €338.7m Long-term segment strategy for developing market leaders with sustainable growth potential €32.5m Clear focus o
Slide 6: KAP Group – Segment overview
KAP Group – Segment overview We develop industrial products and technological solutions for international clients Flexible films Engineered products Surface technologies Precision components One of the leading specialists for Leading manufacturer of technical Leading market position in surface Europ
Slide 7: Segment attractiveness
Segment attractiveness… ….underpinned by mega trends, defensible barriers to entry, and strong customer base Flexible films Engineered products Surface technology Precision components Mega trends such as Mega trends support Light-weight trend and Growth of the group is cocooning and signific
Slide 8: Selected products
Selected products KAP’s products are mission-critical in the insulation and in waterproofing of buildings Waterproofing roof Waterproofing and decoupling membranes membranes for bathrooms and showers Group sales 2021FC Window connection tapes Construction; Window laminates (Haogenplast) 35% vinyl fl
Slide 9: Selected products
Selected products KAP provides integrated solutions for the cars of today and tomorrow Automotive Selected KAP products independent from combustion engine (combustion); 11% Selected KAP products with a high share of replacement parts sales Group Automotive sales (non- Selected KAP products related t
Slide 10: Mega trends
Mega trends Longer term market outlook for KAP underpinned by structural mega trends engineered flexible surface precision kap products films technologies components Group Mega trends Mobility The future of passengers and goods transport KAP‘s future growth Cocooning c Renovation and embellishment o
Slide 11: Business Model & ACCELERATE programme
Business Modell & ACCELERATE programme
Slide 12: Business model
Business model Synergistic buy-and-build platform with active portfolio management and value creation 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
Slide 13: ACCELERATE – Strategy programme of the KAP Group
ACCELERATE – Strategy programme of the KAP Group KAP has completed several milestones during the past year Expansion of stake in assembly specialist NOW Contec to 100% Acquisition of AerO Coated Fabrics B.V. (‚AerO‘) to strenghten extrusion coating expertise in the Increase flexible films segmen
Slide 14: Latest M&A Deal - Haogenplast
Latest M&A Deal - Haogenplast Signed acquisition fits perfectly with the Flexible Films segment Transaction rationale Located in Israel and sales focus in Middle East, Southern and Eastern Europe Haogenplast will complement KAP‘s product portfolio in the Flexible Films segment and further divers
Slide 15: Financials 9M 2021
Financials 9M 2021
Slide 16: KAP Group – Highlights 9M 2021
KAP Group – Highlights 9M 2021 Robust business development despite global supply chain disruptions thanks to diversified portfolio Proven crisis resistance: Significantly lower demand in the automotive sector in Q3 2021 due to supply chain constraints were largely cushioned thanks to strong develo
Slide 17: 9M 2021 – Earnings position KAP Group
9M 2021 – Earnings position KAP Group Robust business development despite pandemic effects and supply chain disruptions Revenue(1) Normalised EBITDA(1) Cushioned overall effect of pandemic and (in €m) (in €m / margin in %) bottlenecks in supply chain on group level +9.0% +12.8% thanks to diversifi
Slide 18: 9M 2021 – Flexible films
9M 2021 – Flexible films Remains on its growth path with strong top- and bottom-line results Revenue EBITDA Increased revenue due to high demand of (in €m) (in €m / margin in %) swimming pool liners and acquisition of the +29.8% +18.9% extrusion specialist AerO Coated Fabrics Affected by price i
Slide 19: 9M 2021 – Engineered products
9M 2021 – Engineered products Segment burdened by automotive demand decline and plant closures Revenue Normalised EBITDA Revenue decline mainly due to lower (in €m) (in €m / margin in %) production capacities resulting from the -11.4% +5.3% closure of two plants end of 2020 Negative impact from
Slide 20: 9M 2021 – Surface technologies
9M 2021 – Surface technologies Strong development in the first six months, but slowdown in the 3rd quarter Revenue Normalised EBITDA General recovery in the automotive (in €m) (in €m / margin in %) sector with a positive impact after a +14.1% +23.1% pandemic-related weak performance in the previou
Slide 21: 9M 2021 – Precision components
9M 2021 – Precision components Significantly improved operating margins despite challenging environment Revenue Normalised EBITDA Revenue increase mainly due to recovery (in €m) (in €m / margin in %) of the automotive sector in first six month 8.1% 100% Shifts in client demand in Q3 due to suppl
Slide 22: 9M 2021 – Consolidated statement of cash flows
9M 2021 – Consolidated statement of cash flows Strong investments despite challenging market environment Cash flow items 9M 2021 € 22 m: Cash in from sale of it-novum (in €m) € 29 m: Significant investments in property, plant, and equipment according to current CAPEX programme focusing on: 17.8
Slide 23: Outlook
Outlook
Slide 24: Outlook
Outlook We expect the continuing operations to generate revenues of between €320 and €350 million Previous Guidance Revised guidance (26 Aug 2021) Guidance 2021 Revenues: €300 – 330 million Revenues: €320 – 350 million (excl. it/services) Normalised EBITDA: €27 – 33 million Normalised EBITDA
Slide 25: Strategic vision of the KAP Group 2023
Strategic vision of the KAP Group 2023 KAP AG as a buy & build platform for scalable medium-sized businesses Strategic vision of the KAP Group 2023 Regions Segments Customer industries Basis: Industrial holdings in Focus on medium-sized Construction technology Germany manufacturing companies in attr
Slide 26: KAP – Investment Case
KAP – Investment Case What matters to us in the interest of our shareholders Value-adding buy & build platform TOP 1-3 market positions in all for scalable mid-market relevant target markets businesses Benefiting from mega trends in Sustainable Technological Recognised quality and innovation leader
Slide 27: We are looking forward to your questions
We are looking forward to your questions
Slide 28: Appendix
Appendix
Slide 29: Selected Group key figures on the earnings situation 2020
Selected Group key figures on the earnings situation 2020 Normalised EBITDA margin improved by 1.0 percentage points 2019 2020 Change in € m in € m in % Revenue 372.8 338.7 -9.1 EBITDA 36.2 35.2 -2.8 in % 9.7 10.4 0,7 pp Normalisations -4.3 -2.8 <> 100 Normalised EBITDA 31.9 32.5 1.9 in % 8.6 9.6 1.
Slide 30: Selected key figures on the financial position
Selected key figures on the financial position Good financial situation enables debt reduction 2019 2020 Change in € m in € m in € m Assets Non-current asstes 208.4 185.2 -23.2 (1) Current assets 138.3 112.7 -25.6 Liabilities Equity 161.0 154.4 -6.6 Non-current liabilities 106.8 84.0 -22.8 Current l
Slide 31: Selected key figures on the financial position
Selected key figures on the financial position Improved working capital management leads to significant increase in operating cash flow 2019 2020 Change in € m in € m in % Cash and cash equivalents at beginning of period 11.7 5.1 -56.4 Cash flow from operation activities 35.5 55.2 55.5 Cash flow fro
Slide 32: Share price development
Share price development Significantly outperformed SDAX in 2021 Executive Board and Supervisory Board propose increased dividend for financial year 2020 of EUR 1.75 KAP AG increases revenue and earnings significantly in the first half KAP AG surpasses revenue and of 2021 earnings forecast despite di
Slide 33: Shareholder structure
Shareholder structure Shareholder structure FM Verwaltungs GmbH Free float 45.5%* 25.7%* 28.8%* KAP AG FM Verwaltungs GmbH - Fried Möller Founded 1987 in Washington D.C., United States Former CEO of KAP (until 2017) Assets under management of currently USD 293bn Supervisory board member from
Slide 34: IR contact
IR contact KAP AG Kai Knitter Head of Investor Relations & Corporate Communications Edelzeller Str. 44 36043 Fulda P +49 661 103 327 E investorrelations@kap.de Please feel free to visit our Investor Relations website: www.kap.de/investor-relations