Kap Limited · JSE:KAP
Kap — FY2026 Earnings Presentation
34 slides from Kap's earnings presentation, September 2026
Slide 1: Audited Results for the Year Ended 30 June 2026
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 1
Slide 2: Agenda
AGENDA OPERATIONAL REVIEW Frans Olivier FINANCIAL REVIEW Dries Ferreira GROUP OUTLOOK Frans Olivier Q&A Frans Olivier / Dries Ferreira AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 2
Slide 3: Operational Review
OPERATIONAL REVIEW Frans Olivier Chief executive officer AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 3
Slide 4: Overview
OVERVIEW General remarks • Strategy execution to deliver improved returns and enhance shareholder value a three to five-year process • FY26 execution and focus established good momentum, further progress required • We remain focused on executing items within our control and expectations around deliv
Slide 5: PG Bison
PG BISON Increased capacity and commercial initiatives support growth • Sustained demand, particularly for upgraded (value-add) board Revenue • Full utilisation of new MDF line and process optimisation (value add) supported higher production volumes and plant efficiencies R7 278 million 15% • Pane
Slide 6: Safripol
SAFRIPOL Temporary Q4 tailwinds amid cyclical lows • Challenging polymers market: global oversupply, subdued demand and weak pricing, increased PET imports priced below market Revenue • Q4 Middle East-related supply disruptions tightened global polymer supply, supported global R9 131 million industr
Slide 7: Unitrans
UNITRANS Building a stronger, focused business • Objective to build a focused business with improved profitability and returns; good progress during the year underpinned by disciplined execution Revenue • Subdued regional economy constrained growth at acceptable returns R8 671 million 7% • Revenue
Slide 8: Feltex
FELTEX Strong recovery in performance as prior-year constraints eased • Domestic vehicle assembly volumes +6% following FY25 constraints Revenue • Domestic passenger, LCV and SUV sales +15%, +14% and +17%, respectively, supported by lower average interest rates and competitively priced imports R2 75
Slide 9: Sleep Group
SLEEP GROUP Performance weighed down by weak demand and competition • Weak consumer environment: disposable income pressure, promotion-led buying, strong FY25 base Revenue • Bedding unit sales declined modestly; Namibian growth and Botswana inclusion offset R1 831 million domestic weakness stable •
Slide 10: Optix
OPTIX Slow sales pipeline conversion continued to pressure performance • Subscriptions +74%, reflecting continued recurring revenue momentum Revenue • Revenue -10%, subscription growth offset by decline in hardware sales in a highly price-competitive market R544 million 10% • Operating loss increa
Slide 11: Financial Review
FINANCIAL REVIEW Dries Ferreira Chief financial officer AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 11
Slide 12: Salient Features of the FY26 Results
SALIENT FEATURES OF THE FY26 RESULTS Revenue EBITDA Operating profit before capital items R29.6 billion R3.9 billion R2.5 billion stable 13% 28% Operating margin Headline earnings per share Loss per share 8.4% 45.2 cents 4.8 cents 190 bps 88% (FY25: 0.4 cents earnings) Net working capital Ca
Slide 13: Group Revenue
GROUP REVENUE Stable compared with prior year (Rm) Revenue growth by: 3 000 ▪ Increased sales and production 951 (561) volumes at PG Bison 2 500 ▪ Improved domestic vehicle assembly volumes benefiting (661) Feltex 2 000 29 615 329 (3) (58) (6) Offset by: 29 606 ▪ Safripol impacted by stronger 1 500
Slide 14: Group Operating Profit
GROUP OPERATING PROFIT* Increased by 28% compared with prior year (Rm) 1 750 Operating profit increase mainly due to: ▪ Increased panel sales and 104 (42) production volumes in PG Bison 1 400 180 (52) 2 473 ▪ Q4 recovery in Safripol's performance, largely due to 128 Middle East-related supply 1 050
Slide 15: Financial Analysis: Income Statement
FINANCIAL ANALYSIS Income statement FY26 FY25 Variance Rm Rm % Revenue 29 606 29 615 – Operating profit improved by 28% EBITDA 3 882 3 422 13 Capital items include impairments Depreciation and amortisation (1 409) (1 485) of goodwill and intangible assets, with the largest associated with Operating
Slide 16: Financial Analysis: Capital Items
FINANCIAL ANALYSIS Capital items FY26 FY26 FY25 FY25 Gross Net * Gross Net * Rm Rm Rm Rm Impairments 1 487 1 183 757 579 Impairments consist of: Goodwill 389 389 145 145 ▪ Sleep Group – goodwill (R389 million) Intangible assets 1 095 784 272 187 Property, plant and equipment 3 10 340 247 ▪ Safripol
Slide 17: Financial Analysis: Tax Rate Reconciliation
FINANCIAL ANALYSIS Tax rate reconciliation FY26 FY25 % % Statutory tax rate 27.0 27.0 Tax rate increase mainly due to: Impairments 112.5 20.8 ▪ Goodwill of R389 million, not Taxation losses (net) 32.9 24.4 tax deductible ▪ Taxation losses (net) not Withholding taxes 21.7 9.6 recognised of R123 milli
Slide 18: Financial Analysis: Balance Sheet
FINANCIAL ANALYSIS Balance sheet 30 Jun 26 30 Jun 25 Rm Rm Property, plant and equipment and investment property 15 287 15 653 Intangible assets reduced Right-of-use assets 285 318 predominantly due to impairments in Safripol and Optix Intangible assets 368 1 491 Goodwill 135 510 Decrease in goodwil
Slide 19: Financial Analysis: Net Working Capital
FINANCIAL ANALYSIS Net working capital* (Rm) 1 350 255 (662) Marginal net increase of R56 million (2%) from 30 June 2025 1 150 Net inventory increased by R463 million (12%): 463 ▪ PG Bison inventory increased related to expected deep-sea exports orders 950 and planned maintenance shutdowns in 1H27 ▪
Slide 20: Financial Analysis: Cash Flow
FINANCIAL ANALYSIS Cash flow FY26 FY25 Rm Rm EBITDA 3 882 3 422 Cash generated from operations Net revaluation of biological assets 85 (24) up R911 million (30%) due to: ▪ R460 million (13%) increase Other non-cash adjustments 34 35 in EBITDA Cash generated from trading 4 001 3 433 ▪ R343 million le
Slide 21: Financial Analysis: Cash Flow (continued)
FINANCIAL ANALYSIS Cash flow (continued) FY26 FY25 Rm Rm Cash flow from operating activities 2 738 1 779 Net increase of R123 million Investing activities (1 397) (1 297) in capital expenditure Expansion capex* (510) (500) Net cash inflow of R170 million on the disposal of Unitrans’ Replacement cape
Slide 22: Investment to Drive Growth and Efficiency Benefits
FINANCIAL ANALYSIS Investment to drive growth and efficiency benefits Manufacturing capital expenditure Material and strategic items* PG Bison PG Bison (Rm) MDF line MFB expansion 2 000 of R2 047 million of R239 million 1 843 Pre-FY25: R1 923 million FY26: R106 million 1 800 1 501 FY25: R96 million
Slide 23: Investment to Drive Growth and Efficiency Benefits (continued)
FINANCIAL ANALYSIS Investment to drive growth and efficiency benefits (continued) Non-manufacturing capital expenditure* Items to highlight Unitrans (Rm) Normal replacement of 'Catch-up' replacement of Proceeds of Expansion of 1 400 1 338 R657 million R346 million R196 million R172 million 1 238 (FY
Slide 24: Treasury Activity: Debt Serviceability Ratios
TREASURY ACTIVITY Debt serviceability ratios Bank covenant FY26 30 Jun 26 30 Jun 25 Gross interest-bearing debt (Rm) 8 648 10 196 Net debt: EBITDA Net interest-bearing debt (Rm) 6 976 8 106 internal limit Equity excluding non-controlling interest (Rm) 12 189 12 443 < 2.5 times Gearing (net debt: equ
Slide 25: Treasury Activity: Debt Maturity Profile
TREASURY ACTIVITY Net interest-bearing debt maturity profile at 30 June 2026 (Rm) 8 000 Debt maturity profile and expected refinancing allow for planned reduction of net debt in FY27 6 205 6 000 1H27 2 033 ▪ KAP021 – R250 million ▪ KAP030 – R500 million 4 000 2 500 2H27 ▪ KAP023 – R500 million ▪ KAP
Slide 26: Group Outlook
GROUP OUTLOOK Frans Olivier Chief executive officer AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026 26
Slide 27: Group Outlook
GROUP OUTLOOK • FY26 progress reflects resilience and focus of our people, good momentum created in the group • Operating environment is expected to remain uncertain and challenging • Global polymer prices and margins are expected to moderate, with a stronger forecast rand relative to the USD • Stra
Slide 28: Q&A
Q&A AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026
Slide 29: Appendix
APPENDIX AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2026
Slide 30: Group Revenue, Operating Profit and HEPS
FINANCIAL ANALYSIS Group revenue, operating profit and HEPS Revenue Operating profit# Headline earnings per share 74.4 (Rm) (Rm) (Cents) 37.2 2 936 1 384 2 523 2 473 29 628 29 062 29 615 29 606 27 979 2 250 1 008 1 209 47.3 14 363 14 260 14 734 45.3 45.2 14 034 1 937 14 330 998 13.5 23.5 22.5 784 37
Slide 31: Divisional Contribution
FINANCIAL ANALYSIS Divisional contribution Revenue* Operating profit^ 24% (FY25: 21%) 37% (FY25: 36%) PG Bison PG Bison 30% (FY25: 32%) 26% (FY25: 26%) Safripol Safripol 29% (FY25: 31%) 25% (FY25: 23%) Unitrans Unitrans 9% (FY25: 8%) 11% (FY25: 9%) Feltex Feltex 6% (FY25: 6%) 5% (FY25: 8%) Sleep Gro
Slide 32: Group Margin Analysis
FINANCIAL ANALYSIS Group margin analysis* Group FY26 8.4% FY25 6.5% FY24 7.7% FY23^ 8.5% FY22 10.5% PG Bison Safripol Unitrans FY26 12.8% FY26 6.9% FY26 7.1% FY25 11.3% FY25 5.2% FY25 4.7% FY24 17.4% FY24 3.8% FY24 5.2% FY23 17.4% FY23^ 8.9% FY23 3.8% FY22 17.0% FY22 13.8% FY22 5.9% Feltex Sleep Gro
Slide 33: ROCE Performance per Division
FINANCIAL ANALYSIS ROCE performance per division Net operating asset contribution Return on capital employed 41% (FY25: 38%) 11.2% (FY25: 8.4%) PG Bison Group 17% (FY25: 21%) 10.6% (FY25: 8.2%) Safripol PG Bison 28% (FY25: 26%) 14.7% (FY25: 9.9%) Unitrans Safripol 7% (FY25: 7%) 10.3% (FY25: 7.3%) Fe
Slide 34: Treasury Activity: Significant Debt Funding Activities
TREASURY ACTIVITY Significant debt funding activities for the year Revolving credit facility (‘RCF’) • In December 2025, R2 billion tranche of KAP’s RCF extended by two years to 7 December 2028 • Funds raised have been 'housed' in the RCF, of which R2.5 billion is currently undrawn and remains avail