KAP AG

Quarterly Report • Nov 24, 2021

Quarterly Report Q3 2021

1 January to 30 September 2021

ROBUST DEVELOPMENT OF BUSI-NESS IN THE FIRST NINE MONTHS DESPITE GLOBAL SUPPLY CHAIN CONSTRAINTS

In the first nine months of 2021, the KAP Group performed robustly overall thanks to its high degree of diversification. The general improvement in the economic environment compared with the previous year was the main contributing factor. For example, all continuing segments were able to improve their operating result year on year. The flexible films segment remained on a strong growth course and continued to benefit from high customer demand, e.g. in the construction and swimming pool liner sectors. The engineered products segment reported a decrease in revenue due to the final closure of two production sites in the second half of 2020. The precision components and surface technologies segments performed positively in the first nine months of 2021 due to an increase in demand in the automotive sector, although semiconductor shortages significantly curbed this performance in the third quarter in particular. The price increases on the procurement side can only be passed on to customers with a delay. The considerable tensions in international supply chains are persisting in the fourth quarter.

In the reporting period, KAP systematically continued the strategic and operating improvement initiatives within the framework of Accelerate that were planned for financial year 2021 and did so more quickly than planned. For example, the Group successfully completed the sale of the it/services segment with the sale of its subsidiaries MEHLER Engineering und Service and it-novum. In addition, it invested to a greater degree in the expansion of existing production sites, such as the sites in Hessisch Lichtenau and Döbeln, and invested in the completely new production site in Jasper, Alabama in the USA. In the flexible films segment, KAP acquired the Dutch company AerO Coated Fabrics B.V. and acquired the remaining shares in NOW Contec GmbH. In addition, KAP AG was able to contractually secure the sale of its commercial property in Fulda in March. Completion of the disposal is still subject to various customary conditions and is planned by the end of 2021.

In accordance with IFRS 5, the subsidiaries sold in the it/services segment – MEHLER Engineering und Service GmbH and it-novum GmbH – must be accounted for as discontinued operations in the consolidated financial statements. The it/services segment sold generated revenue of €7.8 million in the first nine months of 2021 (previous year: €16.5 million). The sale of the companies took effect during the first half of 2021 (January and June). Therefore, the previous year's figures and the figures for the current financial year have been adjusted for the contributions to revenue and earnings of the segment sold in the following analysis of the consolidated results.

KAP-Group1

		9M 2021	9M 2020	Change in %
Revenue	€ millions	266.3	244.4	9.0
EBITDA	€ millions	28.6	27.3	4.8
Normalisations	€ millions	1.4	-0.7	n.m.
Normalised EBITDA	€ millions	30.0	26.6	12.8
Normalised EBITDA margin	%	11.3	10.9	0.4 pp
Investments	€ millions	31.9	14.3	123.1
Employees as of 30 September		2,587	2,622	-1.3

1 Continuing operations (excl. it/services).

DEVELOPMENT OF THE KAP GROUP'S KEY PERFORMANCE INDICATORS

In the first nine months of 2021, KAP AG's revenue was €266.3 million and thus 9.0% above the previous year's level (previous year: €244.4 million). This performance resulted, in particular, from year-on-year revenue growth in the flexible films, surface technologies and precision components segments, which amounted to +29.8%, +14.1% and +8.1%, respectively.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to €28.6 million in the same period (previous year: €27.3 million) and were normalised for non-recurring effects and special items totalling €1.4 million net. The normalisations primarily concerned transactionrelated expenses. At €30.0 million, normalised EBITDA was significantly higher than the previous year's figure by 12.8% (previous year: €26.6 million). The normalised EBITDA margin was thus 11.3%, making it 0.4 percentage points higher than the previous year's figure (previous year: 10.9%).

As of 30 September 2021, the equity ratio was 49.9% (31/12/2020: 49.3%) with total assets of €339.7 million (31/12/2020: €313.1 million).

The cash flow from operating activities in the first nine months of the 2021 financial year decreased significantly by 98.0% to €0.8 million (previous year: €45.2 million). The significant decrease resulted largely from the growth-related increase in working capital.

The cash flow from investing activities resulted in a cash outflow of €–7.1 million (previous year: €–14.4 million). This decrease is largely due to positive cash flows from the sale of the it/services segment. Conversely, there were offsetting effects as a result of high investments in our new site in Jasper in Alabama, USA, and of the acquisition of the AerO companies in the Netherlands.

Cash flow from financing activities in the nine-month period amounted to €–2.4 million (previous year: €30.9 million). The cash inflow in the previous year resulted from the high level of drawdown of working capital lines of credit, which were repaid as of year-end 2020.

The number of staff fell by 1.3% compared to the previous year to 2,587 employees as of 30 September 2021 (previous year: 2,622 employees).

GROWTH OF THE SEGMENTS IN THE FIRST NINE MONTHS OF 2021

		9M 2021	9M 2020	Change in %
Revenue	€ millions	88.2	99.5	-11.4
EBITDA	€ millions	6.8	-5.5	n.m.
Normalisations	€ millions	-0.8	11.2	n.m.
Normalised EBITDA	€ millions	6.0	5.7	5.3
Normalised EBITDA margin	%	6.8	5.7	1.1 pp
Investments	€ millions	2.7	1.0	170
Employees as of 30 September		850	897	-5.2

engineered products

Revenue in the engineered products segment fell by 11.4% to €88.2 million (previous year: €99.5 million). The significant decrease is, however, largely due to the year-on-year decrease in production capacity. This resulted from the final closure of two production sites – in Fulda and Jilemnice – in the second half of 2020, which was carried out as part of focusing the segment on higher-value products. In the first nine months, particularly in the third quarter, the segment was also impacted by the considerable supply chain problems in the automotive industry. The resulting significant increases in the costs of raw materials and transport on the procurement side can only be passed on to customers with a delay due to their dynamic development.

Normalised EBITDA increased by 5.3% to €6.0 million in the first nine months of the year (previous year: €5.7 million). The normalised special items and non-recurring effects from the reporting period, which totalled €–0.8 million, largely comprise gains from the disposal of assets. The normalised EBITDA margin thus increased by 1.1 percentage points to 6.8%.

As part of Accelerate, KAP AG systematically continued the initiatives it had previously introduced in the first nine months of 2021. In the third quarter of 2021, implementation of another measure was commenced as part of the forward-looking alignment of the engineered products segment. KAP AG invested in the construction of a new production hall and a textile laboratory at the Hessisch Lichtenau site. The investments also include an efficient, state-of-the-art production facility for manufacturing technical threads with a regenerative thermal oxidation plant.

The investments increased by 170% to €2.7 million in the first nine months of the year (previous year: €1.0 million). In addition to the measures already implemented in the reporting period, they mainly comprise operational maintenance measures at the Hessisch Lichtenau site.

As at 30 September 2021, 850 people were employed in the engineered products segment (previous year: 897). This is equivalent to a year-on-year decrease of 5.2% and is largely due to the plant closures in Fulda and Jilemnice.

flexible films

		9M 2021	9M 2020	Change in %
Revenue	€ millions	101.0	77.8	29.8
EBITDA	€ millions	15.0	12.7	18.1
Normalisations	€ millions	0.1	0	0
Normalised EBITDA	€ millions	15.1	12.7	18.9
Normalised EBITDA margin	%	14.9	16.3	-1.4 pp
Investments	€ millions	10.6	1.2	783.3
Employees as of 30 September		358	319	12.2

The flexible films segment continued on its growth path in the first nine months of 2021. Thanks to its strong market position, it reported revenue growth of 29.8% to €101.0 million (previous year: €77.8 million). The increase in revenues is particularly due to the increase in unit sales in the areas of swimming pool liners and construction and the acquisition of the extrusion specialist AerO Coated Fabrics. The flexible films segment was affected by an increase in the prices of raw materials in the procurement of PVC and plasticisers. The ongoing price rises in the global raw materials market can only be passed on to the segment's customers with a delay.

EBITDA increased by 18.9% to €15.1 million in the first nine months of the year (previous year: €12.7 million), while the EBITDA margin fell by 1.4 percentage points to 14.9%, largely as a result of the increase in prices of raw materials.

As part of Accelerate, KAP AG has introduced various efficiency measures in the flexible films segment. This includes not only the further professionalisation of purchasing and sales but also the optimisation of the use of raw materials and the improvement of product quality and productivity. In addition, the segment is working on further expanding its international procurement and sales structures.

The segment company's investment spending totalled €10.6 million in the first nine months of the year (previous year: €1.2 million), which is equivalent to a very significant rise of 783.3% year on year. The rise results largely from the acquisition of AerO Coated Fabrics and from various efficiency measures.

The number of staff increased by 12.2% to 358 people as of 30 September 2021 (previous year: 319).

		9M 2021	9M 2020	Change in %
Revenue	€ millions	44.4	38.9	14.1
EBITDA	€ millions	8.2	13.1	-37.4
Normalisations	€ millions	-0.2	-6.6	n.m.
Normalised EBITDA	€ millions	8.0	6.5	23.1
Normalised EBITDA margin	%	18.1	16.8	1.3 pp
Investments	€ millions	13.5	9.6	40.6
Employees as of 30 September		681	741	-8.1

surface technologies

In the surface technologies segment, revenue rose by around 14.1% to €44.4 million (previous year: €38.9 million), following a significant decline in the same period of the previous year due the sharp fall in demand in the automotive sector as a result of the Covid-19 pandemic. The general recovery in the automotive sector in the first half of 2021 initially had a positive impact on the segment companies' business development. However, call-off reductions at large customers due to supply chain difficulties, which particularly impacted development in the third quarter, prevented a more far-reaching recovery.

Normalised EBITDA rose significantly by 23.1% to €8.0 million in the first nine months of 2021 in comparison with the same period of the previous year, which was more heavily impacted by the Covid-19 pandemic (previous year: €6.5 million). The normalisations amounted to €0.1 million. The normalised EBITDA margin thus increased by 1.3 percentage points to 18.1% (previous year: 16.8%).

As part of Accelerate, KAP AG prioritised the construction of the new site in Jasper in Alabama, USA, for its major customer Daimler. A total investment volume in the high single-digit million range is budgeted for the construction. Production at the new site is to start at the end of 2021 and contribute positively to the segment result from financial year 2022.

Investments in the surface technologies segment totalled €13.5 million in the reporting period and thus rose significantly year on year (previous year: €9.6 million). They largely comprise the expenses for the construction of the new site in Jasper in Alabama, USA.

As of 30 September 2021, 681 people (previous year: 741) were employed in the segment, which is equivalent to a decrease of 8.1% year on year.

precision components

		9M 2021	9M 2020	Change in %
	€ millions	30.6	28.3	8.1
	€ millions	2.1	1.1	90.9
Normalisations	€ millions			n.m.
Normalised EBITDA	€ millions	1.6	0.8	100.0
Normalised EBITDA margin	%	5.1	2.9	2.2 pp
Investments	€ millions	5.0	1.8	177.8
Employees as of 30 September		639	598	6.8
		-0.5	-0.3

The precision components segment generated revenue growth of 8.1% in the first nine month of 2021 to €30.6 million (previous year: €28.3 million). The increase was mainly due to the positive effects from the recovery of the automotive sector in the first six months of 2021, which where, however, partially curtailed by the semiconductor shortage impacting our customers. Particularly in the third quarter, shifts in customer demand occurred as a result of supply chain disruptions and had a noticeable impact on this segment's business development.

Normalised EBITDA increased by 100.0% to €1.6 million in the first nine months of 2021 (previous year: €0.8 million). Overall, the normalisation made amounts to €–0.5 million. The normalised EBITDA margin improved by 2.2 percentage points to 5.1% (previous year: 2.9%). This rise reflects the effectiveness of the efficiency measures from the Accelerate programme already implemented.

In addition, during the reporting period KAP AG launched various sales offensives in the area of e-bikes, which will have positive revenue and earnings effects as early as the first quarter of 2022. In order to achieve permanently competitive offer prices for Western European and local customers, corresponding expansion plans are under review for our Eastern European sites.

The investment spending amounted to €5.0 million in the first nine months (previous year: €1.8 million) and was largely accounted for by investments in a new facility for producing components for e-bikes.

The number of employees increased to 639 as of 30 September 2021 (previous year: 598), after staff cuts had been necessary in the previous year due to the Covid-19 pandemic.

EVENTS AFTER REPORTING PERIOD

After the end of the reporting period on 30 September 2021, no events of material importance occurred that affect the true and fair view of the operations, the results of operations, the position and the expected development of the company.

CONFIRMATION OF THE 2021 FORECAST

The positive business development in the first half of 2021 was above the expectations on which the original forecast published in the 2020 Annual Report was based. KAP AG therefore increased its revenue and earnings forecast for financial year 2021 at the end of August. The Management Board expects consolidated revenue of between €320 million and €350 million for the current financial year (previously: between €300 million and €330 million) and normalised EBITDA in a target range from €32 million to €38 million (previously: €27 to €33 million) at the lower end of the range. This forecast already takes account of the sale of the it/services segment.

KAP Group's further course of business until the end of 2021 will largely depend on the development of the Covid-19 pandemic in individual countries and on the procurement markets in the automotive industry. Depending on severity, either factor could have a considerable impact on the company's future business development.

Financial information

Development of the KAP Group in Q3 2021

CONSOLIDATED STATEMENT OF INCOME

FROM 1 JANUARY TO 30 SEPTEMBER 2021

in € thousands	9M 2021	9M 2020
Revenue	266,264	244,400
Change in inventories and other own work capitalised	2,629	-10,490
Total performance	268,893	233,910
Other operating income	15,324	18,530
Cost of materials	-145,410	-119,983
Personnel expenses	-64,919	-66,277
Depreciation and amortisation of intangible assets, property, plant and equipment and investment property	-17,813	-20,150
Other operating expenses	-45,303	-38,896
Operating result	10,772	7,134
Interest result	-1,678	-2,246
Other financial result	1,006	-2,385
Financial result	-672	-4,631
Earnings from continuing operations before income taxes	10,100	2,503
Income taxes	-3,512	-2,444
Earnings from continuing operations	6,588	59
Earnings from discontinued operations after taxes	19,616	230
Consolidated annual result after taxes	26,204	289
Result share of non-controlling interests	-178	-700
Consolidated annual result of KAP AG shareholders	26,026	-411
Undiluted earnings per share (€)
Earnings from continuing operations	0.85	0.01
Gains/losses from discontinued operations	2.53	0.03
	3.38	0.04

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/LOSS

FROM 1 JANUARY TO 30 SEPTEMBER 2021

in € thousands	9M 2021	9M 2020
Consolidated result after taxes	26,204	289
Unrealised gains from currency translation	2,309	-4,997
Items which may be reclassified in the income statement in the future	2,309	-4,997
Actuarial gains from defined-benefit pension plans	0	0
Deferred taxes on actuarial gains/losses from defined-benefit plans	0	0
Items which will not be reclassified in the income statement in the future	0	0
Other result after taxes	2,309	-4,997
thereof result after taxes attributable to non-controlling interests	0	0
thereof result after taxes attributable to shareholders of KAP AG	2,309	-4,997
Total comprehensive income	28,513	-4,708
thereof attributable to non-controlling interests attributable to total comprehensive income	178	700
thereof attributable to shareholders of KAP AG	28,335	-5,408

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE PERIOD ENDED 30 SEPTEMBER 2021

in € thousands	30/09/2021	31/12/2020
ASSETS
ASSETS
Non-current assets
Intangible assets	35,924	27,840
Property, plant and equipment	157,715	149,893
Investment properties	1,905	1,961
Financial assets accounted for using the equity method	0	0
Other financial assets	206	231
Deferred tax assets	3,863	5,310
	199,613	185,235
Current assets
Inventories	53,057	42,822
Trade receivables	55,824	43,347
Income tax receivables	1,498	1,051
Other receivables and assets	12,132	9,768
Cash and cash equivalents	8,382	15,694
	130,893	112,682
Non-current assets held for sale and discontinued operations	9,155	15,153
	339,661	313,070

٦ ×	۰, ×.
	× ۰. ۰,

in € thousands	30/09/2021	31/12/2020
EQUITY AND LIABILITIES
EQUITY AND LIABILITIES
Equity and reserves
Subscribed capital	20,196	20,177
Capital reserve	86,921	86,840
Reserves	-19,452	-20,431
Net result	78,494	65,446
Equity attributable to shareholders of KAP AG	166,159	152,032
Non-controlling interests	3,818	2,296
	169,977	154,328
Non-current liabilities
Provisions for pensions and similar obligations	17,637	18,280
Non-current financial liabilities	54,059	59,044
Deferred tax liabilities	6,371	6,643
	78,067	83,967
Current liabilities
Other provisions	22,642	27,100
Current financial liabilities	16,923	11,504
Trade payables	27,816	18,858
Income tax liabilities	3,844	4,961
Other liabilities	20,392	7,456
	91,617	69,879
Liabilities in connection with discontinued operations	0	4,896
	339,661	313,070

CONSOLIDATED STATEMENT OF CASH FLOWS

FROM 1 JANUARY TO 30 SEPTEMBER 2021

in € thousands	9M 2021	9M 2020
Earnings from continuing operations	6,588	59
Interest result	1,678	2,246
Income taxes	3,512	2,444
Earnings before interest and income taxes	11,778	4,749
Depreciation and amortisation of non-current assets (offset against write-ups)	17,813	20,150
Change in provisions	-5,101	5,337
Other non-cash expenses and income	1,289	393
Gains/losses from the disposal of non-current assets	-1,880	-145
Cash flow from operating activities before changes in assets and liabilities	23,899	30,484
Changes in inventories, receivables and other assets not attributable to investing and financing activities	-24,352	20,030
Changes in payables and other liabilities which are not attributable to investing and financing activities	7,636	-2,089
Cash flow from operating activities before interest and income taxes	7,183	48,425
Interest paid and received	-1,678	-1,490
Income taxes paid and received	-4,712	-1,885
Cash flow from operating activities	793	45,050
Proceeds from disposals of property, plant and equipment (including investment property)	1,880	464
Investments in property, plant and equipment (including investment property)	-21,550	-14,351
Proceeds from the disposal of intangible assets	0	0
Investments in intangible assets	-1,144	-519
Proceeds from the disposal of financial assets	0	20
Cash inflow from the disposal of consolidated companies	22,032	0
Cash outflow from the addition of consolidated companies	-8,383	0
Cash inflow from repayments of financial receivables	25	-51
Cash flows from investing activities	-7,140	-14,437
Proceeds from capital increase	100	0
Dividends paid to shareholders	0	0
Acquisition of minority interest	-2,300	0
Cash inflow from borrowing	12,572	35,203
Disbursements for the repayment of financial liabilities	-12,808	-4,223
Cash flow from financing activities	-2,436	30,980

in € thousands	9M 2021	9M 2020
Net change in cash and cash equivalents	-8,783	61,593
Effect of changes in foreign exchange rates, consolidated group and valuations on cash and cash equivalents	1,201	-140
Cash and cash equivalents at beginning of period	15,964	5,077
Cash and cash equivalents at end of period excl. discontinued operations	8,382	66,530
Cash and cash equivalents attributable to discontinued operations	0	160
Cash and cash equivalents at end of period incl. discontinued operations	8,382	66,690

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 SEPTEMBER 2021

in € thousands	Subscribed capital	Capital reserve	Currency differences	Actuarial gains/losses
01/01/2020	20,177	86,840	-19,740	-7,073
Consolidated annual result	0	0	0	0
Other comprehensive income before taxes	0	0	-4,997	0
Deferred taxes on other comprehensive income	0	0	0	0
Total comprehensive income	0	0	-4,997	0
Capital increase	0	0	0	0
Capital decrease	0	0	0	0
Dividends paid to shareholders	0	0	0	0
Change in consolidation group	0	0	0	0
Other changes	0	0	0	0
30/09/2020	20,177	86,840	-24,737	-7,073
01/01/2021	20,177	86,840	-23,821	-6,982
Consolidated annual result	0	0	0	0
Other comprehensive income before taxes	0	0	2,310	0
Deferred taxes on other comprehensive income	0	0	0	0
Total comprehensive income	0	0	2,310	0
Capital increase	19	81	0	0
Capital decrease	0	0	0	0
Dividends paid to shareholders	0	0	0	0
Change in consolidation group	0	0	0	251
Withdrawals	0	0	0	0
Other changes	0	0	0	0
30/09/2021	20,196	86,921	-21,511	-6,731

Total equity	Non-controlling interestsr	Equity attributable to KAP shareholders	Consolidated balance sheet result	Total	Other
161,006	2,017	158,989	68,413	-16,441	10,372
700		-412	-412	0	0
0		-4,997	0	-4,997	0
0		0	0	0	0
-4,709 700		-5,409	-412	-4,997	0
0		0	0	0	0
0		0	0	0	0
0		0	0	0	0
0		0	0	0	0
0		-6	-6	0	0
156,291	2,717	153,574	67,995	-21,438	10,372
154,328	2,296	152,032	65,446	-20,431	10,372
178 26,204		26,026	26,026	0	0
0		2,310	0	2,310	0
0		0	0	0	0
178 28,514		28,336	26,026	2,310	0
0		100	0	0	0
0		0	0	0	0
-13,593 0		-13,593	-13,593	0	0
	2,364	251	0	251	0
	-1,022	-1,278	0	-1,278	-1,278
2		311	615	-304	-304
169,977	3,818	166,159	78,494	-19,452	8,790

Revenue reserves

SEGMENT REPORTING BY BUSINESS AREA

	engineered products		flexible films		surface technologies		precision components		it/services
in € thousands	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020
Revenue	88,154	99,466	100,996	77,759	44,420	38,891	30,593	28,295	7,831	16,511
Segment result	6,838	-5,545	14,923	12,698	8,180	13,139	2,099	1,147	1,560	3,111
Scheduled depreciation and amortisation	2,504	5,305	2,929	2,471	9,009	8,784	2,836	2,938	106	790
Operating result	4,334	-10,850	11,994	10,227	-829	4,355	-737	-1,791	1,454	2,321
Investments	2,722	955	10,631	1,221	13,463	9,647	4,982	1,811	267	358
Working capital	40,101	39,771	27,451	22,175	3,617	4,768	11,169	12,842	0	1,781
Employees as of 30 September	850	897	358	319	681	741	639	598	0	119

	Holding company		Consolidation		Consolidated result		Elimination of it/services		Consolidated result of continuing operations
in € thousands	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020
Revenue	3,166	0	-1,560	-2,840	273,600	258,082	-7,336	-13,682	266,264	244,400
Segment result	-5,134	-4,087	1,317	7,502	29,774	27,965	-1,190	-681	28,584	27,284
Scheduled depreciation and amortisation	474	520	61	132	17,919	20,940	-106	-790	17,813	20,150
Operating result	-4,607	-4,607	1,256	4,230	11,855	7,025	-1,084	109	10,771	7,134
Investments	101	358	0	295	32,166	14,645	-267	-358	31,899	14,287
Working capital	-1,275	-824	2	-124	81,065	80,389	0	0	81,065	80,389
Employees as of 30 September	59	37	0	0	2,587	2,711	0	-89	2,587	2,622

FINANCIAL CALENDAR

24 November 2021	Deutsches Eigenkapitalforum (virtual)
28 April 2022	Publication of the 2021 Annual Report
24 May 2022	Publication of the Q1 2022 quarterly report
7 July 2022	Annual General Meeting
30 August 2022	Publication of the six-month financial statements for the period ended 30 June 2022
24 November 2022	Publication of the Q3 2022 quarterly report

All dates are subject to change. We publish all the dates above together with additional dates and any updates to these on https://www.kap.de/en/investor-relations/calendar.

CONTACT

Kai Knitter Head of Investor Relations & Corporate Communications

Tel. +49 661 103-327 Email investorrelations@kap.de

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. These statements are based on current estimates and forecasts by the Management Board and on the information currently available to the Management Board. Such statements are subject to risks and uncertainties that are mostly difficult to assess and are generally outside the scope of KAP AG's and its subsidiaries' control. These include the future market environment and economic conditions, the behaviour of other market participants, the successful integration of new acquisitions, the realisation of anticipated synergy effects and measures taken by government agencies. Should any of these or other uncertainties and imponderables materialise, or should the assumptions on which the statements made are based prove to be inaccurate, actual results could differ materially from those expressed or implied by such statements. KAP AG does not assume any special obligation going beyond the legal requirements to update forward-looking statements made in this report.

ROUNDING

The figures in this report have been rounded in accordance with established commercial practice. Rounding differences may thus occur, meaning that the result of adding the individual figures together does not always precisely correspond to the total specified.

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