Takkt Ag · XETR:TTK
Takkt — FY2008 Earnings Presentation
85 slides from Takkt's earnings presentation, Mar 25, 2009
Slide 1: DVFA Analyst Conference Presentation
DVFA Analyst Conference Presentation 25 March 2009, Frankfurt/Main
Slide 2: Contents
contents z financial year 2008 z TAKKT divisions z covenants and stock market z change in catalogue expense accounting z TAKKT in the economic cycle z outlook 25.03.2009
Slide 3: Financial year 2008
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS financial year 2008
Slide 4: TAKKT 2008: profitable and stable despite economic crisis
TAKKT 2008: profitable and stable despite economic crisis z organic turnover increase of 0.7 percent z profitability further increased: EBITDA margin reaches 14.6 percent z total dividend stable: 0.80 EUR per share also for 2008 z equity ratio above 60 percent 25.03.2009
Slide 5: TAKKT 2008: highlights from the divisions
TAKKT 2008: highlights from the divisions z Mail Order Company of the Year 2008 z Gaerner launched successfully in Spain z Stable profitability despite fall in turnover z Start-up of expanded mail order center in Pfungstadt z Hubert launched successfully in Germany z Integration of NBF Group accordi
Slide 6: Turnover 2008: uneven course of business affects growth
Turnover 2008: uneven course of business affects growth K + K EUROPA TOPDEQ K + K AMERICA TAKKT Ò 2008 organic growth of turnover in percent 10 5 0 -5 -10 -15 -20 9m QIV FY 9m QIV FY 9m QIV FY 9m QIV FY 25.03.2009
Slide 7: Turnover: organic growth of 0.7 percent
Turnover: organic growth of 0.7 percent TURNOVER TAKKT GROUP Ò 2004 – 2008 in million Euro 958.5 986.2 1,000 932.1 800 773.2 727.6 600 400 200 incl. Conney 04 - 06 excl. Conney 07 - 08 Conney 2007 2004 2005 2006 2007 2008 +1.9% +6.3% +24.0% +2.9% -5.5% change +5.8% +5.9% +10.1% +9.2% +0.7% organic c
Slide 8: Turnover by division
Turnover: successful because of diversification TURNOVER by division Ò 2007 and 2008 52.7% 57.8% 9.2% 8.9% 38.1% 33.3% K + K America Topdeq KAISER + KRAFT EUROPA 2007 2008 25.03.2009
Slide 9: Turnover by region
Turnover: successful because of diversification TURNOVER by region Ò 2007 and 2008 36.8% 39,9% 23.1% 25.0% 0.6% 0.7% 39.5% 34.4% North America other Germany rest of Europe 2007 2008 25.03.2009
Slide 10: Gross profit: slight margin improvement
Gross profit: slight margin improvement GROSS PROFIT MARGIN Ò 2004 – 2008 in % in million Euro 1.000 50 800 40 600 30 400 20 200 gross profit margin gross profit turnover 2004 2005 2006 2007 2008 25.03.2009
Slide 11: EBITDA: higher margin at the upper end of the target corridor
EBITDA: higher margin at the upper end of the target corridor EBITDA Ò 2004 – 2008 in million Euro 142.3 136.0 140 119.5 120 z target corridor EBITDA 98.4 margin : 12 - 15 % 100 87.2 80 60 40 20 2004 2005 2006 2007 2008 12.0% 12.7% 12.5% 14.4% 14.6% margin 25.03.2009
Slide 12: Profit before tax
Profit before tax: on high level and with further margin improvement PROFIT BEFORE TAX Ò 2004 – 2008 in million Euro 120 116.1 113.9 100 92.9 78.7 80 60 51.5 40 20 2004 2005 2006 2007 2008 7.1% 10.2% 9.7% 11.8% 12.2% margin 25.03.2009
Slide 13: Profit: profitability up again
Profit: profitability up again PROFIT Ò 2004 – 2008 in million Euro 79.3 77.1 80 70 62.5 60 50.4 50 40 33.0 30 20 10 2004 2005 2006 2007 2008 4.5% 6.5% 6.5% 8.0% 8.3% margin 25.03.2009
Slide 14: Cash flow: margin with new record
Cash flow: margin with new record CASH FLOW Ò 2004 – 2008 in million Euro 101.2 100.0 100 81.7 80 65.5 60.5 60 40 20 deferred tax depreciation profit 2004 2005 2006 2007 2008 8.3% 8.5% 8.5% 10.3% 10.7% margin 25.03.2009
Slide 15: Capital expenditure: above long-term average
Capital expenditure: above long-term average CAPITAL EXPENDITURE Ò 2004 – 2008 in million Euro 72.0 75 60 47.4 z long-term average: 1 – 2 percent of sales 45 27.9 30 15 8.9 acquisition 8.6 capital expenditure incl. finance leasing 2004 2005 2006 2007 2008 1.2% 1.2% 7.5% 4.8% 3.0% margin 25.03.2009
Slide 16: Employees: the basis for sustainable business success
Employees: the basis for sustainable business success EMPLOYEES Ò 2004 – 2008 full-time equivalent as of 31/12/ 2,027 1,971 1,960 2,000 1,840 1,868 1,500 1,000 500 abroad Germany 2004 2005 2006 2007 2008 25.03.2009
Slide 17: Exchange rates: volatile USD with impact on TAKKT
Exchange rates: volatile USD with impact on TAKKT 2008 2007 Δ in % USD average rate 1.4631 1.3685 6.9 closing rate 31/12/ 1.3917 1.4721 -5.5 CHF average rate 1.5862 1.6425 -3.4 closing rate 31/12/ 1.4850 1.6547 -10.3 GBP average rate 0.7944 0.6840 16.1 closing rate 31/12/ 0.9525 0.7334 29.9 z impact
Slide 18: Group balance sheet: assets
Group balance sheet: capital expenditure & weak QIV show impact ASSETS Ò in million Euro on on % % 31/12/08 31/12/07 non-current assets 371.8 68.3 386.7 67.9 property, plant and equipment 108.7 19.7 93.4 17.0 goodwill 217.7 39.4 211.6 38.5 other intangible assets 20.1 3.6 21.9 4.0 other 0.9 0.2 0.9
Slide 19: Group balance sheet: further debt repayment, equity ratio > 60 percent
Group balance sheet: further debt repayment, equity ratio > 60 percent EQUITY AND LIABILITIES Ò in million Euro on on % % 31/12/08 31/12/07 total equity shareholders‘ equity 340.5 61.7 321.9 58.6 minority interest 3.5 0.6 3.0 0.5 pension provisions 15.5 2.8 14.3 2.6 other provisions 14.8 2.7 17.9 3.
Slide 20: Borrowings: low level offers room for external growth
Borrowings: low level offers room for external growth BORROWINGS Ò 2004 – 2008 in million Euro 250 200 186.3 162.2 168.7 150 100 91.3 83.4 50 < 1 year 1 to 5 years > 5 years 2004 2005 2006 2007 2008 25.03.2009
Slide 21: Net borrowings: reduced by strong cash flow
Net borrowings: reduced by strong cash flow NET BORROWINGS Ò 2006 – 2008 in million Euro 164.8 150 currency effects 100 81.6 79.9 Conney disposal dividend payment 50 repayments net borrowings 31/12/06 31/12/07 31/12/08 25.03.2009
Slide 22: Borrowings: by currency and interest rate hedges
Borrowings: by currency and interest rate hedges Î hedging in EUR and USD according to Group strategy 25.03.2009
Slide 23: Interest expense: reduced interest rate
Interest expense: reduced interest rate Average interest rate (net finance expense*/average net borrowings) AVERAGE INTEREST RATE Ò 2004 – 2008 6.4 6.1 6.0 5.7 5.7 5.0 4.9 4.0 3.0 2.0 1.0 2004 2005 2006 2007 2008 * excluding interest on pension provisions 25.03.2009
Slide 24: Key figures per share
Key figures per share: cash flow, earnings and dividend remain high KEY FIGURES PER SHARE Ò 2004 – 2008 1.4 in Euro 1.2 1.0 0.8 0.6 0.4 cash flow per share earnings per share 0.2 dividend per share special dividend 2004 2005 2006 2007 2008 34% 22% 30% 75% 69% payout ratio 25.03.2009
Slide 25: Free cash flow enables external growth and/or high dividend
Free cash flow enables external growth and/or high dividend target corridor z management instruments outside the operative equity ratio business ~ 60% maximum acquisitions dividend/return of capital debt repayment z reduction of net financial debt clearly under EUR 100m not wanted z primary fo
Slide 26: TAKKT divisions
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS TAKKT divisions
Slide 27: TAKKT: divisions
TAKKT: divisions z about 50,000 products: z some 2,500 products: z 95,000 products for: transport, storage, designer office transport, storage, office, workshop and furniture and business + office environment accessories equipment, retail trade, restaurant and hotel sector z present in >20 countries
Slide 28: KAISER + KRAFT EUROPA: turnover and EBITDA up again
KAISER + KRAFT EUROPA: turnover and EBITDA up again TURNOVER EBITDA Ò 2004 – 2008 Ò 2004 – 2008 in million Euro in million Euro 600 120 108.4 111.5 519.8 539.3 500 451.2 100 84.9 401.3 400 379.5 80 70.4 65.9 300 60 200 40 100 20 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 margin 17.4% 17.5% 18
Slide 29: Topdeq: stable profitability despite decline in turnover
Topdeq: stable profitability despite decline in turnover TURNOVER EBITDA Ò 2004 – 2008 Ò 2004 – 2008 in million Euro in million Euro 100 91.2 7.0 86.0 82.7 7 6.3 82.1 80 74.6 6 5 4.3 60 4 3 2.8 40 2 20 1 -0.4 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 margin -0.6% 3.4% 5.0% 7.6% 7.6% 25.03.
Slide 30: K + K America: key figures down due to Conney disposal and economy
K + K America: key figures down due to Conney disposal and economy TURNOVER EBITDA Ò 2004 – 2008 Ò 2004 – 2008 in million USD in million USD 528.8 513.0 49.3 49.2 50 500 454.9 40.8 38.9 400 339.8 360.2 40 36.6 300 30 200 20 100 10 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Conney: incl. 04 -
Slide 31: K + K America: weak US dollar impacts euro figures
K + K America: weak US dollar impacts euro figures TURNOVER EBITDA Ò 2004 – 2008 Ò 2004 – 2008 in million Euro in million Euro 421.5 400 375.6 39.3 40 36.1 310.9 32.9 290.0 29.5 300 273.5 30 26.6 200 20 100 10 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 margin 10.8% 11.3% 9.3% 9.6% 8.6% 25.03.
Slide 32: NBF integration: according to plan
NBF integration: according to plan Ò EBITDA margin in percent 10 Phase III 9 introduction stock shipment 8 Phase II business model 7 fine tuning 6 Phase I cost synergies 5 2006 2007 2008 - 2010 Î in 2008 EBITDA margin of 8.5 percent after 5 percent in 2005 25.03.2009
Slide 33: Covenants and stock market
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS covenants and stock market
Slide 34: Equity ratio: increase to more than 60%
Equity ratio: increase to more than 60% due to high profits Equity ratio (shareholders’ equity/total assets) EQUITY RATIO Ò 2004 – 2008 in percent 58.6 61.7 60 50 46.1 47.7 39.6 40 30 20 10 2004 2005 2006 2007 2008 25.03.2009
Slide 35: Gearing: ready for growth
Gearing: ready for growth Gearing (net borrowings/shareholders’ equity) GEARING Ò 2004 – 2008 1.50 1.25 1.0 1.00 0.75 0.7 0.6 0.50 0.3 0.25 0.2 2004 2005 2006 2007 2008 25.03.2009
Slide 36: Interest cover: very comfortable situation
Interest cover: very comfortable situation Interest cover (EBITA/net interest expense) INTEREST COVER Ò 2004 – 2008 21.5 14.1 14 12 10 8.6 8.7 8 7.2 6 4 2 2004 2005 2006 2007 2008 25.03.2009
Slide 37: Debt repayment period: further reduction
Debt repayment period: further reduction Debt repayment period (average net borrowings/cash flow) DEBT REPAYMENT PERIOD Ò 2004 – 2008 in years 5.0 4.0 3.5 3.0 2.6 2.3 2.0 1.2 1.0 0.8 z average exchange rates to match with cash flow 2004 2005 2006 2007 2008 25.03.2009
Slide 38: TAKKT share: better than the index
TAKKT share: better than the index in difficult capital market envirnonment SHARE PRICE DEVELOPMENT Ò in Euro z Prime Standard since 2008 comparison 01/01/2003 z 72.9 million shares 11.9 z market capitalisation: ~ Euro 583m z shareholder structure 9.5 after buyback: - free float: 29.6 % - Franz Hani
Slide 39: Share buy-back programme successfully completed
Share buy-back programme successfully completed z positive effect on balance sheet structure with regards to the total capital costs z high and stable FCF generation allows TAKKT to take reasons advantage of higher financial leverage for z enough financial flexibility for further growth even after b
Slide 40: Change in catalogue expense accounting
change in catalogue expense accounting
Slide 41: New catalogue expense accounting: overview
New catalogue expense accounting: overview z IAS 38 advertising and promotional activity - effective as of 1 January 2009 current practice new practice z capitalisation of catalogue z recognition of catalogue expense under other assets upon expenses when company has the shipment and reversal pro rat
Slide 42: Impact on catalogue cost recognition between the quarters
Impact on catalogue cost recognition between the quarters Ò catalogue expense in million Euro 30 20 10 old new QIV 07 QI 08 QII 08 QIII 08 QIV 08 Î TAKKT will report adjusted previous year’s numbers to ensure comparability of key figures 25.03.2009
Slide 43: Impact on income statement and balance sheet
Impact on income statement and balance sheet income statement balance sheet z catalogue costs are shown under z other receivable and assets other operating expense includes costs/advance payments for services not yet received (e.g. z all key income statement figures prepaid postal charges) from EBIT
Slide 44: Revised financial year 2008: income statement
Illustration of changes for revised financial year 2008 of TAKKT Group ABSTRACT FROM INCOME STAMENT Ò In million Euro 2008 2008 revised reported U Gross profit 386.3 386.3 0.0 other operating expenses 158.0 155.1 2.9 EBITDA 133.1 136.0 -2.9 EBIT 117.3 120.2 -2.9 profit before tax 111.0 113.9 -2.9 in
Slide 45: Revised financial year 2008: assets
Illustration of changes for revised financial year 2008 of TAKKT Group ASSETS Ò in million Euro 2008 2008 revised reported U Non-current assets 353.9 352.0 1.9 xx xx deferred tax 6.6 4.7 1.9 xx other non-current assets 347.3 347.3 xx 0.0 xx Current assets 176.9 200.4 -23.5 xx other receivables and a
Slide 46: Revised financial year 2008: equity and liabilities
Illustration of changes for revised financial year 2008 of TAKKT Group EQUITY AND LIABILITIES Ò in million Euro 2008 2008 revised reported U Total equity 327.7 344.0 -16.3 xx shareholder‘s equity xx 324.3 340.5 -16.2 xx minority interest 3.4 3.5 -0.1 xx Non-current liabilities 87.1 92.4 -5.3 xx defe
Slide 47: Effects on key figures of TAKKT Group in 2008
Effects on key figures of TAKKT Group in 2008 TAKKT GROUP Ò in million Euro EBITDA EBITDA EBITDA % EBITDA % revised reported revised reported Q1 43.1 37.8 17.9 15.7 Q2 33.2 33.8 14.3 14.5 1st half year 76.3 71.6 16.1 15.1 Q3 32.0 31.8 13.9 13.8 9 month 108.3 103.4 15.4 14.7 Q4 24.8 32.6 10.8 14.2 Fu
Slide 48: TAKKT in the economic cycle
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS TAKKT in the economic cycle
Slide 49: Value and growth drivers in the economic cycle
Economic development: value and growth drivers in the economic cycle average order value (AOV) fluctuates gross profit margin is slightly anti-cyclical Δ GDP Δ GDP in % in % GP AOV margin t t order frequency (OF) fluctuates stable new customers/market share gains Δ GDP Δ GDP in % in % no. of custo-
Slide 50: Positive effects of diversification in 4 dimensions
Positive effects of diversification in 4 dimensions throughout cycle diversified industry mix production oriented industry + + service sector non-profit organisations diversified region and diversified product range country portfolio business equipment dimensions of North America office
Slide 51: TAKKT growth strategy: new foundations as growth contributors
TAKKT growth strategy: new foundations as important growth contributors TURNOVER TAKKT GROUP Ò 1980 – 2008 in million Euro 250 200 CAGR 14% 150 100 foundations 2000s (19) 50 foundations 1990s ( 6) foundations 1980s ( 3) foundations 1970s ( 3) 1980 1990 2000 2008 Î 31 foundations show dynamic growth
Slide 52: Flexible cost structure and high free cash flow
Flexible cost structure is basis for good margins throughout the cycle Business model generates high free cash flow stable gross margin stable margins high cost of goods cash flow advert. low ord. ~10% CAPEX turnover high free d.t. depr. pers. ~1.5% cash flow ~10% d.t. GM ~ 40% others ~10% profit pr
Slide 53: Adjustment measures for important cost blocks: sourcing, personnel
Adjustment measures for important cost blocks z renegotiation with suppliers due to lower commodity prices z shift from drop to stock shipment with sourcing advantages sourcing z forward buying for fast selling articles z partial pass on of sourcing advantages to customers z reduction of working hou
Slide 54: Adjustment measures: advertising, other
Adjustment measures for important cost blocks z reduction of non-customer circulation z discontinuation of smaller advertising media (e.g. leaflets) advertising z increase of fax and e-mail campaigns z reduction of advertising production cost (e.g. printing/paper) z increase of online advertising z
Slide 55: Industry trends: fostering TAKKT business model
Industry trends: fostering TAKKT business model consolidation of business partners from product cost to process cost thinking search costs customer supplier selection s t ct s t ct co d u co d u vs costs s s o o pr pr order costs … e-commerce internationalisation of businesses customer supplier @ @
Slide 56: Outlook
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS outlook
Slide 57: Impact of financial and economic crisis on TAKKT
Impact of financial and economic crisis on TAKKT z business cycle impacts turnover development turnover z broad diversification mitigates effects gross z stable gross margin independent from the cycle margin z products are hardly price sensitive z large part of costs (e.g. employees, advertising) wi
Slide 58: First glance into 2009: difficult year for TAKKT
First glance into 2009: difficult year for TAKKT z organic turnover decline of 10 to 25 percent in 2009 likely z effects of organic turnover decline on EBITDA margin Decline of 10 - 15 %: EBITDA margin corridor holds (12 - 15 percent) Decline of 15 - 20 %: EBITDA margin > 10 percent Decline >
Slide 59: 10 years of TAKKT – a growing company
10 years of TAKKT – a growing company 1999 2008 change companies 35 59 + 24 countries 18 27 + 9 customers about 1.9 m about 3.0 m + 1.1m articles about 77,000 about 145,000 + 68,000 employees about 1,500 about 2,000 + 500 25.03.2009
Slide 60: 10 years of TAKKT – a growing company (financials)
10 years of TAKKT – a growing company 1999 2008 change turnover EUR 627.5 m EUR 932.1 m + 48.5 % EBITDA EUR 72.6 m EUR 136.0 m + 87.3 % profit before tax EUR 50.2 m EUR 113.9 m + 126.9 % profit EUR 31.2 m EUR 77.1 m + 147.1 % dividend EUR 0.10 EUR 0.80 + 700.0 % 25.03.2009
Slide 61: Strategic agenda: growth targets and initiatives
Strategic agenda: growth targets and initiatives z long-term average growth 12% p.a. growth ~ 50 % organic growth targets ~ 50 % by acquisitions z at least 1 new foundation or acquisition p. a. z consistent optimisation and extension of product ranges organic and services growth z expansion of Huber
Slide 62: That's why invest in TAKKT
That’s why invest in TAKKT z product diversification balanced z independence from customers and suppliers risk portfolio z regional diversification z duplicable system business sustainable z entering new markets / product groups growth potential z expansion / penetration of established markets z sta
Slide 63: Thank you for your attention
Thank you for your attention.
Slide 64: DVFA Analyst Conference Presentation
DVFA Analyst Conference Presentation 25 March 2009, Frankfurt/Main
Slide 65: Appendix
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS appendix
Slide 66: Key figures: personnel
Key figures personnel Ò in thousand Euro / other 2004 2005 2006 2007 2008 employees (full-time Ø) 1,851 1,848 2,016 2,040 1,980 turnover per employee 393 418 475 483 471 personnel costs per empl. 51.7 53.3 57.2 55.1 52.1 cash flow per employee 32.7 35.5 40.5 49.6 50,5 employees (f.-time at 31/12) 1,
Slide 67: Key figures: P&L
Key figures P&L Ò in million Euro 2004 2005 2006 2007 2008 turnover 727.6 773.2 958.5 986.2 932.1 EBITDA 87.2 98.4 119.5 142.3 136.0 EBITA 78.2 88.9 105.2 125.0 120.2 EBIT 62.5 88.9 105.2 125.0 120.2 profit before tax 51.5 78.7 92.9 116.1 113.9 profit 33.0 50.4 62.5 79.3 77.1 cash flow 60.5 65.5 81.
Slide 68: Key figures: balance sheet / covenants
Key figures balance sheet / covenants Ò in million Euro / other 2004 2005 2006 2007 2008 Ø net borrowings -211.8 -170.2 -188.7 -124.6 -82.1 net borrowings (ye) -182.3 -156.5 -164.8 -81.6 -79.9 CAPEX (incl. acquisitions) 8.6 8.9 72.0 47.4 27.9 change in working capital 2.8 11.5 14.5 9.8 7.6 gearing 1
Slide 69: Effects of change in catalogue expense accounting on TAKKT divisions
effects of change in catalogue expense accounting on TAKKT divisions
Slide 70: Effects on key figures: KAISER + KRAFT EUROPA
Effects on key figures of TAKKT Group in 2008 KAISER + KRAFT EUROPA Ò in million Euro EBITDA EBITDA EBITDA % EBITDA % revised reported revised reported Q1 33.7 31.1 23.6 21.8 Q2 30.1 29.3 21.4 20.8 1st half year 63.8 60.4 22.5 21.3 Q3 21.4 22.7 17.1 18.2 9 months 85.2 83.1 20.9 20.4 Q4 24.6 28.4 18.
Slide 71: Effects on key figures: TOPDEQ
Effects on key figures of TAKKT Group in 2008 TOPDEQ Ò in million Euro EBITDA EBITDA EBITDA % EBITDA % revised reported revised reported Q1 1.5 1.7 6.7 7.6 Q2 1.4 1.5 7.0 7.5 1st half year 2.9 3.2 6.8 7.5 Q3 2.6 1.5 12.9 7.4 9 months 5.5 4.7 8.8 7.5 Q4 0.7 1.6 3.5 8.0 full year 6.2 6.3 7.5 7.6 25.03
Slide 72: Effects on key figures: K + K America
Effects on key figures of TAKKT Group in 2008 K + K AMERICA Ò in million USD EBITDA EBITDA EBITDA % EBITDA % revised reported revised reported Q1 15.0 10.7 13.2 9.4 Q2 7.6 9.5 6.7 8.4 1st half year 22.6 20.2 10.0 8.9 Q3 15.5 14.9 12.1 11.6 9 months 38.1 35.1 10.8 9.9 Q4 -0.8 3.8 -0.8 3.8 full year 3
Slide 73: Business model & strategic success factors
business model & strategic success factors
Slide 74: TAKKT: business overview
TAKKT: business overview business z sales channel: B2B mail order activity z products: durables/specialties z regional diversification: > 25 countries geographic balance z turnover by region: ~ 65% Europe/ ~ 35% North America z number of customers: ~ 3m z advertising media sent out per year: > 60m k
Slide 75: TAKKT business model: added value for customers and suppliers
TAKKT business model: added value for customers and suppliers Example: KAISER + KRAFT EUROPA suppliers customers customer 1 -D supplier A -F - PL - GB supplier B -… customer 2 supplier C -… services: - short delivery time customer 3 - e-procurement - active supply chain total: management total: ~ 50
Slide 76: TAKKT competes in a very attractive industry
TAKKT competes in a very attractive industry Low – high entry threat of barriers via new Low – start-up only 2 cus- losses entrants tomer >1% of turnover, prices insensitive power of rivalry power of suppliers within industry customers Low – fragmented Low – supplier Low – threat of between mail ord
Slide 77: TAKKT: long-term growth path
TAKKT: long-term growth path TURNOVER TAKKT GROUP Ò 1985 – 2008 in million Euro 932.1 1,000 1985 – 2008 800 z growth: CAGR >10% z EBITDA margin: >10% 600 400 other 200 80 North America rest of Europe Germany 1985 1996 2008 Î growth: ~ ½ organic, ~ ½ acquisitions 25.03.2009
Slide 78: TAKKT: business model and market overview
TAKKT: business model and market overview product products TAKKT z price insensitive durables Manutan z ∅ order value ~ €460 Schäfer Shop Electro- z broad product range W.W.Grainger components specialties MSC Industrial Hagemeyer sales channel consum- Corporate Express z pure mail order ables Office
Slide 79: TAKKT: strategic success factors
TAKKT: strategic success factors clear business focus clear clear strategy for TAKKT value-added for growth customer clear organisational structure 25.03.2009
Slide 80: Success factors: clear organisational structure
TAKKT success factors: clear organisational structure z knowledge z synergies / economies of scale z procurement / advertising z logistics z customer database z e-commerce z distribution companies Î allows centralised management and market proximity 25.03.2009
Slide 81: Typical profitability life cycle of new foundations
TAKKT growth strategy: typical profitability life cycle of new foundations EBITDA margin profitability development follows established companies, e.g. KK-CH typical life cycle curve . . . costs BEP 3-5 years 0 t new foundations e.g. KK-SK, Gae-E,… . . . since the share of the 100% circulation split
Slide 82: Multi-brand strategy – a driver for profitable growth
Multi-brand strategy – a driver for profitable growth z customers like to have limited choice and do not want to reason be dependent on just one supplier z different brands work largely on same platform z pictures, texts and prices in catalogues slightly different mechanics z brands compete against
Slide 83: Clear potential for future growth
Clear potential for future growth product other V V V foodservice equipment/spec. V design-oriented office equipment V in terms of sales office equipment business equipment region Europe North America Asia Î objective: diversified product portfolio via duplication of system business 25.03.2009
Slide 84: Financial calendar 2009
Financial calendar 2009 z 19/01/2009 Cheuvreux German Corporate Conference, Frankfurt z 17/02/2009 preliminary figures 2008 z 25/03/2009 financial statements press conference + analyst presentation z March/April spring road shows z 30/04/2009 interim report for the first quarter 2009 z 06/05/2009 an
Slide 85: Contact
Contact TAKKT AG Presselstrasse 12 70191 Stuttgart Corp. Finance/Investor Relations Germany Mr Joachim Eschke Phone: +49 711 34658-0 Phone: +49 711 34658-222 Fax: +49 711 34658-100 Fax: +49 711 34658-104 e-mail: service@takkt.de e-mail: joachim.eschke@takkt.de www.takkt.de www.takkt.de 25.03.2009