Segment strategy

Our strategy focuses on long-term company success. We think in terms of markets and customer benefit and not companies – in order to achieve attractive margins over the long term from which our shareholders also benefit indirectly. As a result, we have defined segments that map out these markets. A clearly defined segment strategy describes the roadmap for the transformation of existing segments and the development of new segments, with the aim of increasing the profitability and growth of KAP AG.

This roadmap contains target product groups, processes and services, the exploitation of synergies within the segments, and in future, a strong focus on research and development to increase innovative capacity. In the process of digitisation and implementing Industry 4.0, we will employ a holistic approach to become pioneers and develop new business models for both ourselves and external SME customers.

In addition to organic growth, we also make selective acquisitions that only make a positive contribution to the segment and group objective. As a medium-sized industrial group, we concentrate solely on SMEs and are a reliable partner for entrepreneurs.
Long-term thinking is combined with modern management approaches and excellent access to financing opportunities and global markets. This makes us an interesting choice for owners and families who wish to preserve their SME in the course of unresolved succession planning and know how to continue operating successfully on the market. The perspectives that we offer are convincing – in 2017/2018, five owners entrusted us with their companies and even became KAP shareholders themselves.

With our strategy, which focuses on growth and profitability in equal measure, we want to meet decisive operative objectives for the KAP Group in order to achieve an attractive dividend and increase the share price. this means a minimum EBITDA margin of >10% and in the medium term, >12% target margin as well as an always-positive free cash flow. This applies to every single product, key account, company and segment and therefore also the KAP Group.