Sharenet Sites 
Sharenet Sites
Operational Update And Trading Statement
KAP INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1978/000181/06)
Share code: KAP
ISIN: ZAE000171963
LEI code: 3789001F51BC0045FD42
(“KAP” or “the Company”)
OPERATIONAL UPDATE AND TRADING STATEMENT
The Company’s executive directors will be attending an investor conference from 29 to 31 March 2022 and
in anticipation thereof, the following operational update provides guidance in relation to KAP’s operational
performance for the first eight months, up to 28 February 2022, of the financial year ending 30 June 2022.
This update should be read in conjunction with the Company’s interim results released on 23 February
2022, for the six months ended 31 December 2021.
OPERATIONAL UPDATE
PG Bison continues to perform very well, supported by healthy demand in both domestic and export
markets. The eMkhondo (Piet Retief) particleboard plant expansion was successfully commissioned during
February/March 2022, adding approximately 14% additional production capacity to the division. This
additional capacity will offset a considerable portion of the anticipated production losses due to scheduled
annual plant maintenance shutdowns planned for the second half of the 2022 financial year (“2H22”).
Restonic has experienced a challenging start to the 2H22 period, with subdued consumer demand and
continued volatility and escalations in commodity driven raw material costs. Traditionally, the first half of the
financial year tends to be notably stronger than the second half, which is currently being experienced.
Feltex’s performance has improved into 2H22, with more stability in vehicle build volumes and with the
technical challenges related to the start-up of component production for a new model launch having been
largely resolved.
Safripol continues to perform exceptionally well, with strong demand for all three polymers, higher selling
prices and improved margins. This continues to be supported by global factors of supply and demand,
supply chain disruptions and commodity pricing, which favour local manufacture and supply.
Unitrans continues to trade on a relatively stable basis, with the South African operations performing well,
the passenger operations remaining stable and the rest-of-Africa operations continuing to find trading
conditions challenging, especially in Botswana.
RUSSIA-UKRAINE CONFLICT
The impact of the Russia-Ukraine conflict on KAP has been limited to date. KAP’s divisions do not source
critical raw materials or equipment from Russia or Ukraine and do not sell into these regions. Escalations
in global commodity prices and supply constraints and disruptions are expected to continue favouring local
manufacture and supply, which has been beneficial for KAP through Covid-19. It is, however, anticipated
that resultant global inflationary pressures will ultimately impact local prices and potentially consumer
demand.
TRADING STATEMENT
In terms of the JSE Limited (“JSE”) Listings Requirements, a listed company is required to publish a trading
statement once it is satisfied that a reasonable degree of certainty exists that financial results for the next
period to be reported on will differ by at least 20% from the financial results for the prior corresponding
period.
While there are four months remaining of the Company’s financial year ending 30 June 2022, following the
eight-month period covered by this operational update and trading statement, a reasonable degree of
certainty exists that if current trading conditions persist, the Company’s earnings from continuing operations
will increase by more than 50% compared to the prior corresponding financial year.
Headline earnings per share (“HEPS”) from continuing operations is expected to increase by a minimum of
21.5 cents to at least 64.5 cents (FY21: 43.0 cents) and earnings per share (“EPS”) from continuing
operations is expected to increase by a minimum of 22.0 cents to at least 66.0 cents (FY21: 44.0 cents).
A further trading statement will be issued in terms of the JSE Listings Requirements when a reasonable
degree of certainty exists as to the likely range of the expected increase in EPS and HEPS compared to
the prior corresponding period.
Shareholders are advised that the financial information in this announcement and on which this trading
statement is based has not been audited, reviewed or otherwise reported on by the Company’s external
auditors.
By order of the Board
KAP Secretarial Services Proprietary Limited
Stellenbosch
29 March 2022
Sponsor
PSG Capital
Date: 29-03-2022 05:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
