Takkt AG · XETR:TTK
Takkt — Berenberg German Corporate Conference 2022
40 slides from Takkt's conference presentation, Sep 21, 2022
Slide 1: Berenberg German Corporate Conference
Berenberg German Corporate Conference September 21, 2022 TAKKT AG September 2022 Berenberg German Corporate Conference 1
Slide 2: Summary: Highlights of our new story
Summary: Highlights of our new story TAKKT’s Vision: Bringing new Worlds of Work to life B2B equipment market with huge growth opportunities due to trend shifts Strategy based on three pillars: Growth, OneTAKKT and Caring 2025 growth targets: EUR 2bn sales, EUR 240m EBITDA and EUR 150m free cash flo
Slide 3: Business model
Business model TAKKT AG September 2022 Berenberg German Corporate Conference 3
Slide 4: TAKKT's Vision
TAKKT’s Vision By caring about environmental resources, people and customer success. TAKKT AG September 2022 Berenberg German Corporate Conference 4
Slide 5: TAKKT supports customers in three specific worlds of work
TAKKT supports customers in three specific worlds of work Customers' Manufacturing, Warehouse Service Industry Hotels, Restaurants, Catering industries TAKKT’s divisions Industrial & Packaging Office Furniture & Displays FoodService TAKKT AG September 2022 Berenberg German Corporate Conference 5
Slide 6: Our divisions are product specialists and sell equipment and specialties
Our divisions are product specialists and sell equipment and specialties with an average order value of around EUR 500 in 2021 Divisions Industrial & Packaging Office Furniture & Displays FoodService TAKKT AG September 2022 Berenberg German Corporate Conference 6
Slide 7: New organizational structure with three customer-oriented divisions
New organizational structure with three customer-oriented divisions and integrated Group functions New Group structure (as of January 1, 2022) TAKKT AG September 2022 Berenberg German Corporate Conference 7
Slide 8: TAKKT's addressable market is > EUR 110bn in size and growing
TAKKTs addressable market is > EUR 110bn in size and growing Foodservice Display Greenland Market: > EUR • Large addressable market 50bn • Growth in line with or above GDP Foodservice • Fragmented supplier structure Canada • Fragmented competition Industrial • Fragmented customer segments Office Uni
Slide 9: TAKKT's market share is currently around 1%
TAKKT’s market share is currently around 1% leaving significant room for growth Display FoodService Greenland TAKKT EUR • Strong presence in all markets 460m (top 10 position in each) Office FoodService • Large assortment Canada • Strong and long-term relationship with customers Office United • Dept
Slide 10: Strategy
Strategy TAKKT AG September 2022 Berenberg German Corporate Conference 10
Slide 11: Strategy builds on three pillars Growth, OneTAKKT and Caring
Strategy builds on three pillars Growth, OneTAKKT and Caring TAKKT’s strategic pillars Growth: - Three divisions for three worlds of work - E-commerce excellence - Smart pricing OneTAKKT: - Scalable platforms in supply chain & tech - New collaboration and employee empowerment Caring: - Strong custom
Slide 12: We aim to deliver value via levers in Growth, OneTAKKT, and Caring
We aim to deliver value via levers in Growth, OneTAKKT, and Caring Growth OneTAKKT Caring Opportunity through Scalability and efficiency Growth enabling additional customer focus via via integration business opportunities new division set-up • E-commerce excellence • Tech platform harmonization • In
Slide 13: Strategy implementation: Growth
Strategy implementation: Growth • Successful integration of gaerner brand into KAISER+KRAFT • Start of cross-selling in I&P by offering packaging products from ratioform brand to KAISER+KRAFT key accounts in September • Division integration: FOUNDATION • OneTeam in largest division I&P (integrated s
Slide 14: Strategy implementation: OneTAKKT
Strategy implementation: OneTAKKT • Group-wide contract pooling and renegotiation of container shipping leads to cost savings in 2022 • Centralization of UK warehouses (less locations, better efficiency) • Introduction of Group-wide collaboration tool • Operations: FOUNDATION • Integrated Supply Cha
Slide 15: Strategy implementation: Caring
Strategy implementation: Caring • Rating of all products according to their sustainability impact in progress • Around 20% of products in I&P already “enkelfähig” • Our vision: Bringing New Worlds of Work to life FOUNDATION • Customers: Evaluation of product categories along new Worlds of Work and c
Slide 16: Financial and non-financial targets for 2025
Financial and non-financial targets for 2025 Growth OneTAKKT Caring Sales EUR 2bn EBITDA EUR 240m cNPS of 60 Free TAKKT cash flow eNPS of 50 EUR 150m Organic growth: ø10% p.a. Increase in profitability 45% share of women in Organic e-commerce by 2-3 percentage points leadership positions growth: ø15
Slide 17: Financials
Financials TAKKT AG September 2022 Berenberg German Corporate Conference 17
Slide 18: Update on key topics 2022
Update on key topics 2022 Prolonged conflict with negative War in Ukraine impact on global economic growth Top priority for all business units, good results Inflation management in Q2 with gross profit margin above 40% Product availability still a key challenge, Managing the supply chain increase in
Slide 19: TAKKT Group: Strong first half-year in a challenging environment
TAKKT Group: Strong first half-year in a challenging environment Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 657.0 67.3 557.3 51.8 9.3% 10.2% H1/21 H1/22 H1/21 H1/22 • Sales increase by 17.9% with positive effects from currency • Strong increase of EBITDA to EUR 67.3 (51.8) mill
Slide 20: Industrial & Packaging: Good organic growth in European business
Industrial & Packaging: Good organic growth in European business Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 368.2 55.3 333.7 49.6 14.9% 15.0% H1/21 H1/22 H1/21 H1/22 • Sales increase by 10.3% with positive currency effects • EBITDA increased to EUR 55.3 (49.6) millions, EBITDA
Slide 21: Office Furniture & Displays: Very strong performance with both brands
Office Furniture & Displays: Very strong performance with both brands Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 14.3 155.7 120.3 9.2% 4.3 3.6% H1/21 H1/22 H1/21 H1/22 • Sales increase by 29.5% with positive effects from • Significant increase in EBITDA to EUR 14.3 (4.3) curren
Slide 22: FoodService: Recovery in US restaurant and foodservice markets
FoodService: Recovery in US restaurant and foodservice markets Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 133.1 7.9 103.3 5.7 5.5% 5.9% H1/21 H1/22 H1/21 H1/22 • Sales increase by 28.8%, positive currency effects • EBITDA increased to EUR 7.9 (5.7) million due to the from a str
Slide 23: Increase in TAKKT cash flow
Increase in TAKKT cash flow TAKKT cash flow (in EUR million) and margin (in %) in EUR million H1/21 H1/22 Profit 26.3 26.4 58.9 + depreciation/impairment +18.6 +31.6 47.0 +/- deferred taxes expense/income +1.0 -1.1 +/- other non-cash expenses/income +3.8 +2.1 +/- result from non-cur. asset disposal
Slide 24: Free TAKKT cash flow impacted by increase in net working capital
Free TAKKT cash flow impacted by increase in net working capital in EUR million H1/21 H1/22 TAKKT cash flow 47.0 58.9 Change in net working capital as well as other • Significant increase in net working capital, -4.4 -53.5 adjustments mostly due to build up of inventories to improve delivery capabil
Slide 25: Outlook 2022
Outlook 2022 TAKKT AG September 2022 Berenberg German Corporate Conference 25
Slide 26: Organic sales growth
Organic sales growth Organic growth Q1/21 Q2/21 Q3/21 Q4/21 2021 Q1/22 Q2/22 H2/22 TAKKT Group -3.3% 24.6% 12.1% 14.4% 11.4% 18.9% 6.8% 12.6% Industrial & 3.6% 30.3% 13.5% 13.7% 14.5% 12.6% 5.8% 9.2% Packaging* Office Furniture & -14.8% 25.7% 13.7% 13.1% 8.1% 24.3% 11.8% 17.6% Displays* FoodService*
Slide 27: Outlook: TAKKT confirms organic growth guidance and expects EBITDA in upper half
Outlook: TAKKT confirms organic growth guidance and expects EBITDA to reach the upper half of the initial forecast range Economic environment TAKKT’s priorities in H2 FY forecast for key financials • The prolonged conflict in Ukraine • Growth and inflation management: and high inflation lead to slow
Slide 28: TAKKT share, dividend and equity story
TAKKT share, dividend and equity story TAKKT AG September 2022 Berenberg German Corporate Conference 28
Slide 29: TAKKT share performance, shareholder structure and analyst recommendations
TAKKT share performance, shareholder structure and analyst recommendations Total Shareholder Return: TAKKT and indices Shareholder structure 150 40.6% Franz Haniel & Cie. 59.4% Free float 125 100 Analyst recommendations 75 1 50 Buy 4 Hold 25 Sell 3 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oc
Slide 30: TAKKT pays dividend of EUR 1.10 per share for 2021
TAKKT pays dividend of EUR 1.10 per share for 2021 and commits to a base dividend of at least EUR 0.60 for the future Dividend proposal & policy • Dividend payment of EUR 1.10 per share for 2021 • TAKKT commits to pay out at least a base dividend of EUR 0.60 per share in the coming years • Possibili
Slide 31: Appendix
Appendix TAKKT AG September 2022 Berenberg German Corporate Conference 31
Slide 32: TAKKT investor relations
TAKKT investor relations IR Contact Upcoming Events Michael Loch / Benjamin Bühler October Phone: +49 711 3465-8222 / -8223 25. Earnings Call Q3/22 Fax: +49 711 3465-8100 e-mail: investor@takkt.de November 28/30. German Equity Forum www.takkt.com TAKKT AG is headquartered in Stuttgart, Germany. Basi
Slide 33: Appendix: Structure of sales development
Appendix: Structure of sales development in % Q1/22 Q2/22 H1/22 TAKKT Group in EUR 23.3% 13.0% 17.9% organic 18.9% 6.8% 12.6% currency 4.4% 6.2% 5.3% acquisition/divestment - - - Industrial & Packaging in EUR 14.0% 6.6% 10.3% organic 12.6% 5.8% 9.2% currency 1.4% 0.8% 1.1% acquisition/divestment - -
Slide 34: Very solid balance sheet structure
Very solid balance sheet structure Net financial liabilities (of which lease liabilities) (in EUR million) Equity ratio (in %) 180.9 62.2% 59.5% 105.0 75.4 71.7 12/31/2021 6/30/2022 12/31/2021 6/30/2022 • Increase in net financial liabilities • Equity ratio at the upper end of the target corridor of
Slide 35: Free cash flow with a stable long-term development and a positive trend
Free cash flow with a stable long-term development and a positive trend Development of EBITDA and free cash flow (in EUR million) • Lower free cash flow in 2021 160 due to increase in net working capital (trade receivables and inventories) compared to 120 significant reduction in the prior year 80 4
Slide 36: Financial key figures
Financial key figures 2017 2018 2019 2020 2021 Organic sales development in percent 0.4 3.4 -1.4 -11.8 11.4 Organic growth in order intake via e-commerce in percent 7.9 11.6 2.0 -3.6 16.3 Number of orders in thousand 2,465 2,676 2,642 2,535 2,500 Average order value in EUR 458 449 460 425 491 Gross
Slide 37: E-com growth and share
E-com growth and share Organic e-commerce growth of order intake (in %) Share of e-commerce in order intake (in %) 16.3% 60.0% 60.8% 55.0% 11.6% 52.1% 46.8% 7.9% 2.0% -3.6% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 TAKKT AG September 2022 Berenberg German Corporate Conference 37
Slide 38: Product range figures
Product range figures Share of private labels* (in %) Share of direct imports* (in %) 26.5% 22.0% 21.7% 21.6% 24.1% 24.2% 20.7% 21.7% 17.9% 15.5% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 * The figures have only been reported as shares of sales since 2019. For prior years, they are shown as
Slide 39: Value-based figures
Value-based figures TAKKT value added (in EUR million) Return on Capital Employed (in %) 43.1 14.6% 14.0% 30.4 11.1% 8.0% 5.6% 9.8 2020 2021 2017 2018 2019 -3.1 2017 2018 2019 2020 2021 -23.2 TAKKT AG September 2022 Berenberg German Corporate Conference 39
Slide 40: Internal covenants within or exceeding the target range
Internal covenants within or exceeding the target range Equity ratio (in %) Debt repayment period (in years) Internal target value: 64.7% 62.2% 61.2% 60.8% 58.5% < 5 years Internal target range: 30 to 60 percent 1.7 1.4 1.4 1.4 0.9 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Interest cover Gea