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KATEK SE plans IPO in Q2 2021

- KATEK SE plans IPO and listing of its shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q2 2021

- Strong business development with sustainable sales growth from EUR 164 million in 2018 to most recently over EUR 414 million in 2020

- KATEK SE is aiming for issue proceeds of approximately EUR 80 million, in particular to accelerate its organic and inorganic growth strategy

Munich, April 14, 2021 - KATEK SE ("KATEK" or the "Company") is preparing an initial public offering and listing of its shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q2 2021. The KATEK Group is one of the fastest growing electronics companies in Europe. It offers software and hardware development, prototyping, and manufacturing of high-quality electronics. The products and services of the KATEK Group are in particularly strong demand in the high-growth markets of eMobility, renewable energies, and medical technology. In 2020, the Group generated sales of EUR 414 million - an increase of 59% compared to the previous year. In terms of market share, KATEK is currently number two in Germany and the fastest growing European company in the electronics / electronics services market. ^[1]

The planned offering will consist of newly issued shares, i.e. a capital increase, as well as existing shares in connection with a market customary over-allotment (greenshoe option). A secondary placement of existing shares on the part of existing shareholders is not planned. PRIMEPULSE SE will therefore remain the majority shareholder in the future. The offering is planned as a public offering in Germany and private placements with institutional investors in certain jurisdictions outside Germany. A lock-up period of 12 months has been agreed for the Company, its major shareholders and the management. The proceeds from the newly issued shares in the amount of approximately EUR 80 million will be used in particular to accelerate the organic and inorganic growth strategy.

Rainer Koppitz, CEO: "Within two years, KATEK has developed into one of the leading electronics companies in Europe. The German and European industry need strong electronics partners at their side to be successful in their markets. We are building a European champion and want to drive our profitable growth with the IPO. "

Dr. Johannes Fues, CFO: "Despite the more difficult conditions in the Corona pandemic year 2020, the operating EBITDA margin (EBITDA adj. ) was increased to 5%. Our medium-term target is an EBITDA margin of 10%. With the IPO, we are taking the next step in the expansion of the KATEK Group."

KATEK SE is the parent company of the KATEK Group, a leading European electronics company offering hardware and software development, prototyping and manufacturing, and related services. The range of services covers the entire life cycle of electronic assemblies and devices. Economies of scale coupled with deep technology and software know-how and a focus on "high-value, low-volume" application areas underpin KATEK Group's high competitiveness. KATEK supports customers with complex electronic assemblies and devices, and the high level of customer satisfaction with KATEK as a reliable partner is reflected by the fact that 93% of 2020 revenues were generated through transactions with regular customers. With its approximately 2,600 employees* at locations in Germany and Eastern Europe, the KATEK Group generated revenues of more than EUR 414 million in 2020 with well-known customers, including in the Internet of Things (IoT), automotive / eMobility, renewable energies and healthcare sectors.

Growth strategy based on two core areas

The core element of the corporate strategy is to continue the historical growth with above-average growth rates as well as to further improve profitability at the same time. KATEK aims to be the leading European partner for electronic tech solutions, covering the entire value chain and serving global growth industries. Global trends such as the rise of electric vehicles and the need for e-mobility charging stations, the increasing demand for solar energy and more generally the advancing "electronification" of the world lead to a growing need for innovative electronics partners for the German and European industry.

KATEK's growth strategy is based on two core areas:

- Continuation of strong organic growth and overall profitability by focusing on high value electronics solutions in high quality, know-how-intensive application areas and high growth markets such as IoT solutions, eMobility, renewable energies and healthcare. In addition, KATEK will increasingly offer its large customer base of more than 650 customers further service elements of the value chain such as rapid prototyping, SW/HW engineering and complete system construction through up- and cross-selling.

- Continuation of inorganic growth through strategic acquisitions. Inorganic growth has contributed significantly to positioning KATEK among the market leaders in the European electronics industry. Management will continue this inorganic growth strategy with a focus on Germany, Austria and Switzerland, and will give priority to acquiring companies that enable strengthening in the growth markets. The fragmented market environment is extremely favorable for active consolidation. Industrial customers in particular demand a long-term reliable and stable partner for the electronics of their products. KATEK is already in talks with further promising targets and expects to make approximately two strategically and economically rewarding acquisitions per year in the future.

Strong business performance in 2020 with 59% year-on-year growth

The KATEK Group has significantly accelerated its growth in recent years through numerous successful acquisitions and integrations. The KATEK Group's sales increased from EUR 164 million in 2018 to EUR 261 million in 2019 and most recently to over EUR 414 million in 2020. Adjusted EBITDA (EBITDA adj. ) amounts to EUR 20.8 million in fiscal year 2020 , which corresponds to an adjusted EBITDA margin of 5.0%. Net liabilities to banks amounted to EUR 51.0 million in 2020, resulting in a leverage of approximately 2.45x.

KATEK believes that market trends such as the rise in eMobility, demand in the renewable energies sector and the general growth of the market for electronics manufacturing and services mean that it is well positioned to continue on its profitable growth path. This conviction is reflected in management's targets for KATEK's operations: more than EUR 500 million in sales organically (in the short term) and another EUR 100 million in sales through inorganic growth (in the short to medium term). In addition, KATEK has set itself the medium-term goal of achieving an EBITDA margin of more than 10% in the Group. This will be achieved, among other things, by exploiting economies of scale in procurement, increasing organizational efficiency, and qualified upselling and cross-selling. The above targets are objectives and not forecasts or projections.

Key points of the IPO

In connection with the IPO, the Company expects proceeds from the placement of new shares in the amount of approximately EUR 80 million, which will primarily be used for the organic and inorganic growth strategy.

At the time of publication of this announcement, the top management holds a total of 4.5% and the main shareholders PRIMEPULSE SE and grosso tec AG together hold around 91% of the shares in KATEK SE. PRIMEPULSE SE will remain the majority shareholder of KATEK after the IPO. A lock-up period of 12 months applies to the members of the management and the main shareholders with regard to all their shares.

Further details on the planned IPO will be announced in the context of the publication of the securities prospectus.

Hauck & Aufhäuser acts as Sole Global Coordinator and together with M.M.Warburg & CO as Joint Bookrunner.

KATEK Investor Relations

Investor Relations
ir@katek-group.com
+ 49 89 24881 4280

KATEK press contact

Startup Communication
Christina Fischer-Friedrich
cf@startup-communication.de
+ 49 89 120 21 92 67

About KATEK

The KATEK Group is a leading European electronics company offering hardware and software development, prototyping and manufacturing, and related services in the market for high-end electronics or electronics services. The KATEK Group currently employs approximately 2,600 employees* in Germany and Eastern Europe. CEO is Rainer Koppitz and CFO is Dr. Johannes Fues. For more information about KATEK, please visit https://katek-group.de/

DISCLAIMER:

This communication may not be published or distributed, directly or indirectly, in or into the United States of America. This communication is not an offer of securities for sale in the United States. The securities referred to in this communication have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States except pursuant to an exemption from registration. There will be no public offering of securities in the United States.

In the United Kingdom, this communication is directed only at persons who (i) are qualified investors within the meaning of the Financial Services and Markets Act 2000 (as amended from time to time) and any relevant implementing measures, and/or (ii) are outside the United Kingdom, and/or (iii) have professional experience in investment matters, who fall within the definition of "investment professionals" under Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended from time to time) (the "Order"), or are persons falling within Article 49(2)(a) to (d) of the Order ("high net worth companies, unincorporated associations, etc.") or who fall within any other exemption of the Regulation (all persons under (i) through (iii) being collectively referred to as "Relevant Persons"). Persons who are not Relevant Persons should not act in any way with regard to or in reliance on this announcement or any part of its contents. All investments and investment activities referred to in this announcement are available only to Relevant Persons and will be engaged in only with Relevant Persons.

This publication constitutes an advertisement.

This announcement constitutes neither an offer to sell nor a solicitation of an offer to buy securities. The public offer in Germany will be made exclusively by means of and on the basis of a securities prospectus to be published. An investment decision regarding the publicly offered securities of KATEK SE should only be made on the basis of the securities prospectus. The securities prospectus will be published without undue delay after its approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin) and will be available free of charge at KATEK SE, Promenadeplatz 12, 80333 Munich, Germany, and on the internet at https://katek-group.de/investor-relations/

Statements contained herein may constitute "forward-looking statements". Forward-looking statements are identified by words such as "may," "will," "should," "plans," "expects," "anticipates," "estimates," "believes," "intends," "has in mind," "targets" or their negative form or equivalent variations and comparable terminology.

Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, levels of utilization, performance or achievements of the Group or the industries in which it operates to be materially different from those expressed or implied by such statements. Undue reliance should not be placed on forward-looking statements. The Group will not update or revise any forward-looking statements contained herein as a result of new information, future events or otherwise.

^[1] Calculation KATEK based on Die EMS Industrie - eine Branche wird erwachsen. Königswinter: in4ma, supplemented by Weiß, D. G. (2021): List of the Top 10 EMS/ODM Companies in DACH 2020. Königswinter: in4ma