Takkt AG · XETR:TTK
Takkt — Analysts' Conference March 2021
41 slides from Takkt's conference presentation, Mar 29, 2021
Slide 1: Analysts' conference March 29, 2021
Analysts‘ conference March 29, 2021
Slide 2: Agenda
Agenda 1. Organization and vision 2. Strategy 3. Financial year 2020 4. Outlook for 2021 TAKKT AG March 2021 Analysts' Conference 2
Slide 3: Organization and vision
Organization and vision TAKKT AG March 2021 Analysts' Conference 3
Slide 4: TAKKT Group specializes in B2B distance selling for business equipment
TAKKT Group specializes in B2B distance selling for business equipment TAKKT AG March 2021 Analysts' Conference 4
Slide 5: TAKKT Group structure
TAKKT Group structure TAKKT AG March 2021 Analysts' Conference 5
Slide 6: TAKKT AG March 2021 Analysts' Conference
TAKKT AG March 2021 Analysts' Conference 6
Slide 7: TAKKT AG March 2021 Analysts' Conference
TAKKT AG March 2021 Analysts' Conference 7
Slide 8: Strategy
Strategy TAKKT AG March 2021 Analysts' Conference 8
Slide 9: TAKKT has set new ambitions to be achieved by 2025
TAKKT has set new ambitions in certain areas to be achieved by 2025 Grow profitably Transform the business model Act sustainably • Long-term organic sales growth • Organizational realignment with • Share of women in top of around 5% per year focus on two business models executive positions of at lea
Slide 10: Grow profitably: Organic growth and profitability ambitions differ between segments
Grow profitably: Organic growth and profitability ambitions differ between the three segments Long-term organic growth target 3-5% p.a. 6-8% p.a. 3-5% p.a. 5% p.a. Long-term EBITDA target around 15% around 10% more than 10% sustainable increase in EBITDA TAKKT AG March 2021 Analysts' Conference 10
Slide 11: Transform the business model: Continue with implementation of TAKKT 4.0
Transform the business model: Continue with implementation of TAKKT 4.0 Two business models for two different customer types Focus on a specific business model allows brands to better fulfill the requirements of their respective customer type. Reallocation of functions and responsibility Establish s
Slide 12: Act sustainably: TAKKT has set new targets for 2025
Act sustainably: TAKKT has set new targets for 2025 • TAKKT achieved most of its sustainability goals for 2020 • Interim sustainability report gives an update on the Group’s progress and sets new targets for 2025 TAKKT AG March 2021 Analysts' Conference 12
Slide 13: Financial year 2020
Financial year 2020 TAKKT AG March 2021 Analysts' Conference 13
Slide 14: Development of key financials in 2020
Development of key financials in 2020 1,067.4 92.6 37.2 Sales in EUR million EBITDA in EUR million Net profit in EUR million 129.8 64.7 1.10 Free TAKKT cash flow Dividend proposal Equity ratio in percent in EUR million per share in EUR TAKKT AG March 2021 Analysts' Conference 14
Slide 15: TAKKT Group sales in 2020 slightly exceeded updated forecast
TAKKT Group sales in 2020 slightly exceeded updated forecast from October Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 150.2 1,213.7 1,067.4 92.6 12.4% 8.7% 2019 2020 2019 2020 • Sales decrease by 12.0%; slightly better than expected in • Cost management led to substantial saving
Slide 16: Omnichannel Commerce stabilized over the course of the second half
Omnichannel Commerce stabilized over the course of the second half of the year Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 141.7 971.5 837.3 102.5 14.6% 12.2% 2019 2020 2019 2020 • Sales decrease by 13.8%; negative currency effects of 0.6% • Sales decline with negative impact on
Slide 17: Business units in Web-focused Commerce impacted very differently by the pandemic
Business units in Web-focused Commerce impacted very differently by the pandemic Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 247.3 28.5 234.3 11.5% 9.5 4.1% 2019 2020 2019 2020 • Sales decrease by 5.3% with positive effects from the • Drop in sales at D2G weighed on earnings acq
Slide 18: Lower sales volume also had an impact on gross profit margin
Lower sales volume also had an impact on gross profit margin Gross profit margin development (in %) 41.3% -0.9 -0.5 -0.7 39.7% +0.5 2019 Inventory Supplier Freight Other 2020 obsolesence discounts margin TAKKT AG March 2021 Analysts' Conference 18
Slide 19: Cost management allowed substantial compensation of decline in gross profit
Cost management allowed substantial compensation of decline in gross profit EBITDA development (in EUR million) 150.2 92.6 EBITDA 2019 Gross profit Marketing Personnel Other One-time EBITDA 2020 costs costs* costs* effects *adjusted for one-time effects TAKKT AG March 2021 Analysts' Conference 19
Slide 20: TAKKT cash flow negatively impacted by lower business volume
TAKKT cash flow negatively impacted by lower business volume TAKKT cash flow (in EUR million) and margin (in %) in EUR million 2019 2020 Profit 74.7 37.2 120.4 + depreciation +41.4 +40.2 +/- deferred taxes expense/income +3.3 -4.5 82.0 +/- other non-cash expenses/income +1.1 +13.5 +/- result from no
Slide 21: Best free TAKKT cash flow in the company's history to date
Best free TAKKT cash flow in the company’s history to date Cash flow development for the period (in EUR million) +22.6 129.8 +8.4 120.5 -13.3 +22.4 +8.5 +2.5 82.0 -3.3 TAKKT cash flow Trade Trade Inventories Change in Change in Cash flow from Capex in Sale of real Free TAKKT payables receivables ass
Slide 22: Free cash flow with a more stable development than EBITDA
Free cash flow with a more stable development than EBITDA Development of EBITDA and free cash flow (in EUR million) • High free cash flow in 2020 160 due to release of cash from net working capital and low capex spending 120 • Sale of real estate contributed an additional EUR 22.6 million to free TA
Slide 23: Significant reduction in net financial liabilities and very solid balance sheet
Significant reduction in net financial liabilities and very solid balance sheet Net financial liabilities (in EUR million) Equity ratio (in %) 189.8 64.7% 58.5% 75.4 12/31/2019 12/31/2020 12/31/2019 12/31/2020 • Strong free cash flow used to repay liabilities • Profit for the period and decrease in
Slide 24: TAKKT proposes dividend payment of EUR 1.10 per share
TAKKT proposes dividend payment of EUR 1.10 per share Dividend policy Dividend proposal Dividend payment of EUR 0.55 for 2020 plus • Payout ratio within a corridor of 35 to 45 percent of the profit previous year’s suspended base dividend of • TAKKT aims for a consistent and reliable dividend stream
Slide 25: Outlook for 2021
Outlook for 2021 TAKKT AG March 2021 Analysts' Conference 25
Slide 26: Outlook: TAKKT expects strong growth and significant earnings increase in 2021
Outlook: TAKKT expects strong growth and significant earnings increase in 2021 Economic environment Strategic focus Outlook for key financials • Economic development still • Implementation of strategic dependant on course of the initiatives to drive organic growth in Organic sales growth of pandemic
Slide 27: Appendix: TAKKT share and equity story
Appendix: TAKKT share and equity story TAKKT AG March 2021 Analysts' Conference 27
Slide 28: 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 Franz Haniel & 125 49.8% 50.2% Cie. Free float 100 75 Analyst recommendations 50 Buy 25 8 TAKKT DAX MDAX SDAX Average price target of EUR 13.8 TAKKT AG Mar
Slide 29: TAKKT equity story at a glance
TAKKT equity story at a glance TAKKT’s business units are B2B direct-marketing Gross profit margin > 40% (target) specialists for business equipment in Europe and North America 38.5% 40.5% 41.4% 42.6% 39.7% Business units are market-leaders in attractive market niches 1999 2003 2008 2015 2020 with h
Slide 30: TAKKT investor relations
TAKKT investor relations IR Contact Upcoming Events Michael Loch / Benjamin Bühler March Phone: +49 711 3465-8222 / -8223 30./31. Jefferies European Mid-Cap Forum (virtual event) Fax: +49 711 3465-8100 e-mail: investor@takkt.de April 14./15. Virtual roadshow www.takkt.com 29. Earnings call Q1/2021 T
Slide 31: Appendix: Key performance figures and indicators
Appendix: Key performance figures and indicators TAKKT AG March 2021 Analysts' Conference 31
Slide 32: Overview of key performance figures and indicators
Overview of key performance figures and indicators Financial key figures Product range figures Digital agenda indicators • Organic sales development • Share of private labels • Launched and completed measures • Number of orders and average order • Share of direct imports • Newly created positions va
Slide 33: Financial key figures
Financial key figures 2016 2017 2018 2019 2020 Organic sales development in percent 5.2 0.4 3.4 -1.4 -12.0 Number of orders in thousand 2,409 2,465 2,676 2,642 2,535 Average order value in EUR 469 458 449 460 425 Gross profit margin in percent 42.6 42.5 41.5 41.3 39.7 EBITDA in EUR million 171.3 150
Slide 34: Product range figures
Product range figures Share of private labels* (in %) Share of direct imports* (in %) 22.0% 21.7% 24.1% 24.2% 20.7% 21.7% 17.9% 18.3% 15.5% 13.7% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 * The figures have only been reported as shares of sales for 2019 and 2020. For prior years, they are sh
Slide 35: Digital agenda indicators
Digital agenda indicators Newly created positions filled Organic e-commerce growth (in percent) 11.6% 10.6% 7.9% 98 85 87 78 2.0% 26 -3.6% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Launched and completed measures Share of e-commerce in order intake (in percent) 157 162 60.0% 123 52.1% 55.0%
Slide 36: TAKKT invested around €51 million until 2020 for the digital agenda
TAKKT invested around € 51 million until 2020 for the implementation of the digital agenda and additional € 11 million for start-up investments In EUR million 2016 2017 2018 2019 2020 Additional personnel expenses (year-on-year) 0.6 3.9 2.9 0.7 -0.6 Other expenses 1.9 3.8 4.0 2.9 2.1 Capital expendi
Slide 37: Value-based figures
Value-based figures TAKKT value added (in EUR million) Return on Capital Employed (in %) 16.5% 50.4* 14.6% 14.0% 46.8* 7.3 37.6 * 11.1% 8.5 7.2 15.9* 5.6% 38.3 43.1 30.4 6.1 9.8 2020 2016 2017 2018 2019 -18.7 * 2016 2017 2018 2019 2020 * Adjusted for amortization of intangible assets resulting -4.5
Slide 38: 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% 61.2% 60.8% 58.5% < 5 years 55.2% Internal target range: 30 to 60 percent 1.6 1.7 1.4 1.4 1.4 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Interest cover Gea
Slide 39: Sustainability indicators
Sustainability indicators Focus area* Key figure 2017 2018 2019 2020 Share of sourcing volume from certified suppliers 46.8% 44.2% 51.6% 49.1% Sourcing Share of direct imports sourcing volume from certified suppliers 39.8% 39.3% 60.2% 54.2% Share of sales from sustainable product ranges 9.3% 9.5% 9.
Slide 40: Appendix: Pro forma figures new segment structure
Appendix: Pro forma figures new segment structure TAKKT AG March 2021 Analysts' Conference 40
Slide 41: Pro forma sales development for the new segment structure
Pro forma sales development for the new segment structure in % Q1/20 Q2/20 Q3/20 Q4/20 2020 TAKKT Group in EUR -7.2% -20.0% -14.0% -6.9% -12.0% organic -10.1% -21.2% -12.2% -3.6% -11.8% currency +1.5% +0.7% -1.8% -3.3% -0.6% acquisition/divestment +1.4% +0.5% - - +0.4% Omnichannel Commerce in EUR* -