Takkt Ag · XETR:TTK
Takkt — DVFA Analyst Conference 2010
89 slides from Takkt's conference presentation, Mar 23, 2010
Slide 1: DVFA Analyst Conference Presentation
DVFA Analyst Conference Presentation 23 March 2010, Frankfurt/Main
Slide 2: Contents
Contents z introduction z financial year 2009 z covenants and stock market z e-commerce strategy z outlook 23/03/2010
Slide 3: Introduction
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS introduction
Slide 4: TAKKT 2010
Financial Statements Press Conference TAKKT 2010 Î active Î innovative Î progressive 23/03/2010
Slide 5: FOCUS measures
FOCUS measures z goal: review of Group activities and adjustment of structures and capacities z key measures: - Topdeq-exit from US market - streamlining of Plant Equipment Group warehouse infrastructure and close-down of two warehouses - adjustment of personnel capacity at production-site and shutd
Slide 6: New Group structure 2010
New Group structure 2010 z knowledge holding z synergies / economies of scale TAKKT EUROPE TAKKT AMERICA divisions z procurement BEG OEG PEG SPG OEG groups z advertising z logistics z customer database z e-commerce brands BEG = Business Equipment Group PEG = Plant Equipment Group OEG = Office Equipm
Slide 7: GROWTH measures
GROWTH measures z goal: pool and prioritise Group growth initiatives z key measures: - strengthening service sector business: Î acquisition of Central Restaurant Products Î roll-out of Hubert to France - geographic expansion: Î foundation of KAISER + KRAFT Russia - fostering online-business: Î start
Slide 8: Financial year 2009
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS financial year 2009
Slide 9: Turnover: crisis leaves distinct marks
Turnover: crisis leaves distinct marks TURNOVER TAKKT GROUP Ò 2005 – 2009 in EUR million 1,000 958.5 986.2 932.1 800 773.2 731.5 600 400 200 excl. Central Central 2009 2005 2006 2007 2008 2009 +6.3% +24.0% +2.9% -5.5% -21.5% change +5.9% +10.1% +9.2% +0.7% -26.2% organic 23/03/2010
Slide 10: Turnover 2009: uneven course of business during the year
Turnover 2009: uneven course of business during the year Trend H1 2009 H2 2009 FY 2009 Q1 2010 TAKKT Group -24.3% -18.7% -21.5% in Euro KAISER + KRAFT EUROPA -33.1% -26.0% -29.7% in Euro Topdeq -30.7% -30.8% -30.7% in Euro K+K America -17.9% -1.4% -9.6% in USD 23/03/2010
Slide 11: Turnover: K + K America gains importance
Turnover: K + K America gains importance TURNOVER by division Ò 2008 and 2009 57.8% 51.8% 7.8% 8.9% 40.4% 33.3% K + K America Topdeq KAISER + KRAFT EUROPA 2008 2009 23/03/2010
Slide 12: Turnover: North America gains importance
Turnover: North America gains importance TURNOVER by region Ò 2008 and 2009 39.9% 25.0% 36.3% 22.2% 2.9% 3.0% 32.2% 38.5% USA other Germany rest of Europe 2008 2009 23/03/2010
Slide 13: Gross profit: margin further improved
Gross profit: margin further improved GROSS PROFIT MARGIN Ò 2005 – 2009 in % in EUR million 1,000 50 800 40 600 30 400 20 200 gross profit margin gross profit turnover 2005 2006 2007 2008 2009 23/03/2010
Slide 14: Successful adaptation of P&L structures
Successful adaptation of P&L structures 9 z goal: increase of gross profit margin Gross z second half 2009: 40.9% in 2008 margin increased to 42.2% ex Central 9 z goal: 40-50% reduction of turnover decline (-23.7%) Personnel z second half 2009: -10.9% ex Central and costs before FOCUS one-off costs
Slide 15: EBITDA: double-digit margin ex FOCUS expenditure
EBITDA: double-digit margin ex FOCUS expenditure EBITDA Ò 2005 – 2009 in EUR million 142.3 140 133.1 119.5 120 z target corridor EBITDA 98.4 margin: 12 - 15 % 100 80 68.7 60 40 20 excl. Central Central 2009 2005 2006 2007 2008 2009 12.7% 12.5% 14.4% 14.3% 9.4% margin 10.1% margin ex FOCUS 23/03/2010
Slide 16: EBITDA: burdened by crisis
EBITDA: burdened by crisis K + K EUROPA TOPDEQ K + K America Ò 2008 – 2009 in EUR million 120 109.8 100 80 60 56.6 40 25.5 21.1 20 6.1 -1.5 Central 2009 2008 2009 2008 2009 2008 2009 20.4% 14.9% 7.4% -2.6% 8.2% 7.1% margin 15.6% -0.5% 7.7% margin ex FOCUS 23/03/2010
Slide 17: Profit before tax
Profit before tax: expected additional depreciation because of Central PROFIT BEFORE TAX Ò 2005 – 2009 in EUR million 120 116.1 111.0 100 92.9 78.7 80 60 42.4 40 20 2005 2006 2007 2008 2009 10.2% 9.7% 11.8% 11.9% 5.8% margin 23/03/2010
Slide 18: Profit: TAKKT profitable despite crisis
Profit: TAKKT profitable despite crisis PROFIT Ò 2005 – 2009 in EUR million 79.3 80 75.1 70 62.5 60 50.4 50 40 30 27.8 20 10 2005 2006 2007 2008 2009 6.5% 6.5% 8.0% 8.1% 3.8% margin 23/03/2010
Slide 19: Cash flow: still good margin
Cash flow: still good margin CASH FLOW Ò 2005 – 2009 in EUR million 101.2 100 97.1 81.7 80 65.5 60 56.1 40 20 deferred tax depreciation profit 2005 2006 2007 2008 2009 8.5% 8.5% 10.3% 10.4% 7.7% margin 23/03/2010
Slide 20: Cash flow generation: remains one of TAKKT's strengths
Cash flow generation: remains one of TAKKT’s strengths Ò in EUR million 2008 2009 cash flow 97.1 56.1 change of net working capital -0.2 14.9 cash flow from 96.9 71.0 operating activities capital expenditure for rationalisation, maintenance 27.9 4.6 and expansion of business free cash flow 69.0 66.4
Slide 21: Employees: the basis for sustainable business success
Employees: the basis for sustainable business success EMPLOYEES Ò 2005 – 2009 full-time equivalent as of 31/12 2,027 1,971 1,960 2,000 1,868 1,768 1,500 1,000 500 abroad Germany 2005 2006 2007 2008 2009 23/03/2010
Slide 22: Exchange rates: mainly top line impact
Exchange rates: mainly top line impact 2009 2008 Δ in % USD average rate 1.3909 1.4631 -4.9 closing rate 31/12/ 1.4406 1.3917 3.5 CHF average rate 1.5099 1.5862 -4.8 closing rate 31/12/ 1.4836 1.4850 -0.1 GBP average rate 0.8930 0.7944 12.4 closing rate 31/12/ 0.8881 0.9525 -6.8 z impact on: turno
Slide 23: Group balance sheet: extended by Central-acquisition
Group balance sheet: extended by Central-acquisition ASSETS Ò in EUR million on on % % 31/12/09 31/12/08 non-current assets 386.8 72.2 353.9 66.7 property, plant and equipment 99.8 18.6 108.7 20.5 goodwill 240.1 44.8 217.7 41.0 other intangible assets 41.3 7.7 20.1 3.8 other 0.8 0.2 0.8 0.2 deferred
Slide 24: Central: purchase price allocation
Central: purchase price allocation Ò Fair value Useful life Amortisation in USD m in years 2009 in USD m trade names 12.6 indefinite - customer lists 23.7 5-11 3.2 catalogue design 2.5 5 0.4 other 0.3 3 0.1 39.1 3.7 goodwill 37.6 other net assets 6.8 purchase price 83.5 23/03/2010
Slide 25: Group balance sheet: solid financing structures also in 2009
Group balance sheet: solid financing structures also in 2009 EQUITY AND LIABILITIES Ò in EUR million on on % % 31/12/09 31/12/08 total equity shareholders‘ equity 238.8 44.5 324.4 61.1 minority interest 3.3 0.6 3.4 0.6 pension provisions 17.0 3.2 15.5 2.9 other provisions 15.6 2.9 14.8 2.8 borrowing
Slide 26: Borrowings: sound maturity profile
Borrowings: sound maturity profile BORROWINGS Ò 2005 – 2009 in million Euro 250 200 184.0 162.2 168.7 150 100 91.3 83.4 50 < 1 year 1 to 5 years > 5 years 2005 2006 2007 2008 2009 23/03/2010
Slide 27: Net borrowings: strong cash flow limits increase
Net borrowings: strong cash flow limits increase NET BORROWINGS Ò 2007 – 2009 in EUR million 300 250 currency effects 200 180.8 acquisition 150 dividend payment 100 81.6 79.9 share buy-back repayments 50 net borrowings 31/12/07 31/12/08 31/12/09 23/03/2010
Slide 28: Borrowings: by currency and interest rate hedges
Borrowings: by currency and interest rate hedges BORROWINGS BY CURRENCY AND INTEREST RATE HEDGES Ò portion of weighted re- average on total liability maining term interest rate 31/12/09 (in percent) (in years) (in percent) USD liabilities 120,747 65.7 3.5 4.0 EUR liabilities 62,987 34.2 Borrowings 3
Slide 29: Interest expense: reduced interest rate
Interest expense: reduced interest rate Average interest rate (net finance expense*/average net borrowings) AVERAGE INTEREST RATE Ò 2005 – 2009 6.4 6.1 6.0 5.7 5.7 5.0 4.0 3.6 3.0 2.0 1.0 2005 2006 2007 2008 2009 * excluding interest on pension provisions 23/03/2010
Slide 30: Covenants and stock market
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS covenants and stock market
Slide 31: Equity ratio: well within the target corridor
Equity ratio: well within the target corridor Equity ratio (shareholders’ equity/total assets) EQUITY RATIO Ò 2005 – 2009 in percent 58.6 61.1 60 50 46.1 47.7 44.5 40 30 20 10 2005 2006 2007 2008 2009 23/03/2010
Slide 32: Gearing: headroom for further growth
Gearing: headroom for further growth Gearing (net borrowings/shareholders’ equity) GEARING Ò 2005 – 2009 1.50 1.25 1.00 0.8 0.75 0.7 0.6 0.50 0.3 0.25 0.2 2005 2006 2007 2008 2009 23/03/2010
Slide 33: Interest cover: lower because of trough EBITDA in 2009
Interest cover: lower because of trough EBITDA in 2009 Interest cover (EBITA/net interest expense) INTEREST COVER Ò 2005 – 2009 22 21.0 18 14.1 14 10 8.6 8.7 6.9 6 2 2005 2006 2007 2008 2009 23/03/2010
Slide 34: Debt repayment period: still on solid grounds
Debt repayment period: still on solid grounds Debt repayment period (average net borrowings/cash flow) DEBT REPAYMENT PERIOD Ò 2005 – 2009 in years 5.0 4.0 3.0 3.0 2.6 2.3 2.0 1.2 1.0 0.8 z average exchange rates to match with cash flow 2005 2006 2007 2008 2009 23/03/2010
Slide 35: Financial solidity: basis for further growth
Financial solidity: basis for further growth z flexible cost structure leads to good cash flow generation cash flow also in the crisis year strength z debt service coverage secured at all times financial z transaction risks hedged conservatively risk under control z translation risks not significant
Slide 36: TAKKT share
TAKKT share SHARE PRICE DEVELOPMENT Ò in EUR z Prime Standard since 01/01/2003 z 65.6 million shares 11,1 z market capitalisation: ~ Euro 540 million 9,5 z shareholder structure after buyback: 7,9 - free float: 29.6 % - Franz Haniel & Cie. – 6,3 GmbH: 70.4 % TAKKT share 4,7 SDAX (indexed) Jan-09
Slide 37: Dividend policy: constant participation in the Group's success
Dividend policy: constant participation in the Group’s success z in general: payout of ~ 30 percent of profits attributable to ordinary shareholders dividend z but: not less than in the previous year Î 32 cents for 2009 z only proposed if: Î equity ratio near 60 percent or above special Î no major a
Slide 38: Key figures per share: stable ordinary dividend
Key figures per share: stable ordinary dividend KEY FIGURES PER SHARE Ò 2005 – 2009 in EUR 1.2 1.0 0.8 0.6 0.4 cash flow per share earnings per share 0.2 dividend per share special dividend 2005 2006 2007 2008 2009 22% 30% 75% 71% 78% payout ratio 23/03/2010
Slide 39: E-commerce strategy
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS e-commerce strategy
Slide 40: General trends in the online environment
General trends in the online environment z ratio of digital natives to digital migrants is increasing z enhanced search functionalities for customers z enhanced marketing possibilities for companies z search focus on the web shifts from brand to product search Î online channel becoming more importan
Slide 41: Characteristics of different customer types
Characteristics of different customer types walk-in regular customer customer business size small big potential per low high customer price sensitivity high low quality & service low high orientation process cost thinking low high consulting needs low high high Î separate strategy to address walk-in
Slide 42: TAKKT: options for entering online walk-in customer market
TAKKT: options for entering online walk-in customer market www.kaiserkraft.xx + protection of traditional business + leverage of existing online platform modell and traditional catalogue brand + flexibility to use web marketing tactics (e.g. flexible pricing, flexible offering) - dilution of quality
Slide 43: TAKKT: traditional catalogue business vs. Certeo
TAKKT: traditional catalogue business vs. Certeo + z traditional catalogue business z walk-in customer business z focus: customer lifetime value z focus: order profitability z implementation of catalogue on the z flexible product offering and pricing on internet as copy the internet z catalogue not
Slide 44: TAKKT: multi-brand and multi-channel strategy
TAKKT: multi-brand and multi-channel strategy e-procurement large customers traditional current sales business: and marketing focus: catalogue + regular customers web-copy mid-size customers online-only new, additional business (e.g. small customers customer base: www.certeo.de, walk-in customers of
Slide 45: Outlook
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS outlook
Slide 46: Strategic agenda: growth targets and initiatives
Strategic agenda: growth targets and initiatives z long-term average growth >10% p.a. growth ~ 50 % organic growth targets ~ 50 % by acquisitions z at least 1 new foundation or acquisition p. a. organic z further expansion in service sector growth z Asia initiatives z multi-brand strategy (online &
Slide 47: GROWTH initiatives
GROWTH initiatives z additional initiatives for 2010: - market entry of TAKKT companies into new countries Î operational start of KAISER + KRAFT in Russia Î further expansion of Hubert and gaerner in Europe - development of private brands Î siqnatop at Topdeq Î Relius at PEG Î Quipo at BEG - acquisi
Slide 48: Outlook for 2010
Outlook for 2010 z first quarter still with negative signs for most groups z positive growth rates for the Group in the following quarters Î return to growth course in 2010 with turnover increase of up to two percent z gross profit margin at same high level as in 2009 z increase of operational margi
Slide 49: Corporate Responsibility: our principles
Corporate Responsibility: our principles z We gear our actions towards the principles of sustainability and future compliance, in economic, ecological and social terms. z We ensure that resources are conserved, both in our core business and beyond. z We are dedicated to pursuing the interests of our
Slide 50: Responsible and sustainable management at TAKKT
Responsible and sustainable management at TAKKT Corporate Corporate Responsibility Responsibility employees society environment health & „Waldfonds“ prevention sponsoring children forestation project family service & in India advice Carbon Disclosure schoolchildren Project sharing joint success in G
Slide 51: 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 52: TAKKT 2010
Financial Statements Press Conference TAKKT 2010 Î active Î innovative Î progressive 23/03/2010
Slide 53: Thank you for your attention.
Thank you for your attention.
Slide 54: DVFA Analyst Conference Presentation
DVFA Analyst Conference Presentation 23 March 2010, Frankfurt/Main
Slide 55: Appendix
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS appendix
Slide 56: Key figures P&L
Key figures P&L Ò in EUR million 2005 2006 2007 2008 2009 turnover 773.2 958.5 986.2 932.1 731.5 EBITDA 98.4 119.5 142.3 133.1 68.7 EBITA 88.9 105.2 125.0 117.3 49.4 EBIT 88.9 105.2 125.0 117.3 49.4 profit before tax 78.7 92.9 116.1 111.0 42.4 profit 50.4 62.5 79.3 75.1 27.8 cash flow 65.5 81.7 101.
Slide 57: Key figures balance sheet / covenants
Key figures balance sheet / covenants Ò in EUR million / other 2005 2006 2007 2008 2009 Ø net borrowings -170.2 -188.7 -124.6 -82.1 -169.8 net borrowings (ye) -156.5 -164.8 -81.6 -79.9 -180.8 CAPEX (incl. acquisitions) 8.9 72.0 47.4 27.9 60.1 change in working capital 11.5 14.5 9.8 4.6 -14.2 gearing
Slide 58: Key figures personnel
Key figures personnel Ò in EUR thousand / other 2005 2006 2007 2008 2009 employees (full-time Ø) 1,848 2,016 2,040 1,980 1,817 turnover per employee 418 475 483 471 403 personnel costs per empl. 53.3 57.2 55.1 52.1 55.6 cash flow per employee 35.5 40.5 49.6 49.0 30.9 employees (f.-time at 31/12) 1,8
Slide 59: Capital expenditure: ex Central on low level
Capital expenditure: ex Central on low level CAPITAL EXPENDITURE Ò 2005 – 2009 in EUR million 75 72.0 60.1 60 z long-term average: 47.4 1 – 2 percent of sales 45 30 27.9 15 acquisition 8.9 capital expenditure incl. finance leasing 2005 2006 2007 2008 2009 1.2% 7.5% 4.8% 3.0% 8.2% margin 23/03/2010
Slide 60: 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 61: TAKKT divisions
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS TAKKT divisions
Slide 62: TAKKT: divisions
TAKKT: divisions z about 50,000 products: z some 2,300 products: z 110,000 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 countrie
Slide 63: KAISER + KRAFT EUROPA
KAISER + KRAFT EUROPA TURNOVER EBITDA Ò 2005 – 2009 Ò 2005 – 2009 in EUR million in EUR million 600 539.3 120 108.4 109.8 519.8 500 451.2 100 401.3 84.9 400 379.2 80 70.4 56.6 300 60 200 40 100 20 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 margin 17.5% 18.8% 20.9% 20.4% 14.9% margin ex FOCUS
Slide 64: Topdeq
Topdeq TURNOVER EBITDA Ò 2005 – 2009 Ò 2004 – 2008 in EUR million in EUR million 100 91.2 7.0 86.0 7 6.1 82.1 82.7 80 6 5 4.3 57.3 4 60 2.8 3 40 2 1 -1.5 20 0 -1 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 margin 3.4% 5.0% 7.6% 7.4% -2.6% margin ex FOCUS -0.5% 23/03/2010
Slide 65: K + K America (USD)
K + K America TURNOVER EBITDA Ò 2005 – 2009 Ò 2005 – 2009 in USD million in USD million 528.8 513.0 49.3 49.2 50 500 454.9 40.8 38.9 411.2 400 360.2 40 29.3 300 30 200 20 100 10 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Central margin 11.3% 9.3% 9.6% 8.2% 7.1% margin ex FOCUS 7.7% 23/03/2010
Slide 66: K + K America (EUR)
K + K America TURNOVER EBITDA Ò 2005 – 2009 Ò 2005 – 2009 in EUR million in EUR million 421.5 400 375.6 39.3 40 36.1 32.9 310.9 295.6 300 290.0 30 25.5 21.1 200 20 100 10 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 margin 11.3% 9.3% 9.6% 8.2% 7.1% margin ex FOCUS 7.7% 23/03/2010
Slide 67: TAKKT in the economic cycle
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS TAKKT in the economic cycle
Slide 68: Economic development: 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 continuous gain of new customers Δ GDP Δ GDP in % in % no. of custo- OF mers
Slide 69: Positive effects of diversification in 4 dimensions throughout cycle
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 70: TAKKT growth strategy: new foundations as important growth contributors
TAKKT growth strategy: new foundations as important growth contributors TURNOVER TAKKT GROUP Ò 1980 – 2009 in EUR million 250 200 CAGR 12% 150 100 foundations 2000s (22) 50 foundations 1990s ( 6) foundations 1980s ( 3) foundations 1970s ( 3) 1980 1990 2000 2009 Î 34 foundations show dynamic growth a
Slide 71: Flexible cost structure is basis for margin stability
Flexible cost structure is basis for margin stability throughout 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 72: 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 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: ~ 60% Europe/ ~ 40% North America z number of customers: ~ 3m z advertising media sent out per year: > 55m 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 tomers >1% of turnover, prices insensitive power of rivalry power of suppliers within industry customers Low – fragmented Low – supplier Low – threat of between mail or
Slide 77: TAKKT: long-term growth path
TAKKT: long-term growth path TURNOVER TAKKT GROUP Ò 1985 – 2009 in EUR million 1,000 731.5 1985 – 2009 800 z growth: CAGR ~10% 600 z op. EBITDA margin: >10% 400 other 200 80 USA rest of Europe Germany 1985 1996 2009 Î growth: ~ ½ organic, ~ ½ acquisitions 23/03/2010
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 ~ €440 Schäfer Shop Electro- z broad product range W.W.Grainger components specialties MSC Industrial Hagemeyer sales channel z pure mail order consum- Office Depot ables Staples z d
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 23/03/2010
Slide 80: TAKKT growth strategy: 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 81: 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 82: Clear potential for future growth
Clear potential for future growth product other V V V foodservice- equipment/spec. V in terms office of sales equipment business equipment region Europe North America Asia Î objective: diversified product portfolio via duplication of system business 23/03/2010
Slide 83: Acquisition of Central Restaurant Products
acquisition of Central Restaurant Products
Slide 84: Central – overview
Central – overview z mail order distributor of restaurant equipment & supplies z customers: commercial & non-commercial restaurants z brand: Central Restaurant z headquarters in Indianapolis, Indiana z founded 1981 z turnover 2008e: USD ~70m z turnover growth 2008e vs. 2007: 10.2% z EBITDA margin 20
Slide 85: Acquisition of Central – an ideal second brand to Hubert
Acquisition of Central – an ideal second brand to Hubert Hubert: - special services for large accounts Hubert large - customised catalogues target segment and webshops middle - higher pricing - 30,000 articles Central: Central - standardised catalogues target segment small and webshops - lower prici
Slide 86: Acquisition of Central – impact on covenants
Acquisition of Central – impact on covenants 2009 target 2009 covenant range TAKKT with CR equity ratio ≥ 30% ≥ 40% gearing ≤ 2.0 ≤ 1.0 debt repayment ≤ 5.0 years ≤ 4.0 years period interest coverage ≥ 4.0 ≥ 6.0 Î even after acquisition of Central very solid balance sheet 23/03/2010
Slide 87: Acquisition of Central – summary
Acquisition of Central – summary Acquisition of Central offers ... z another B2B mail order market leader with a very flexible business model z further growth opportunities in a relatively stable market z further diversification of K+K America and TAKKT business z increase of profitability of K+K Am
Slide 88: Financial calendar 2010
Financial calendar 2010 z 18/01/2010 Cheuvreux German Corporate Conference, Frankfurt z 18/02/2010 preliminary figures 2009 z 22/03/2010 financial statements press conference z 23/03/2010 analyst presentation z March spring road shows z 29/04/2010 interim report for the first quarter 2010 z 04/05/20
Slide 89: Contact
Contact TAKKT AG Presselstrasse 12 70191 Stuttgart Corp. Finance/Investor Relations Germany Mr Joachim Eschke Phone: +49 711 3465-80 Phone: +49 711 3465-8217 Fax: +49 711 3465-8100 Fax: +49 711 3465-8104 e-mail: service@takkt.de e-mail: joachim.eschke@takkt.de www.takkt.de www.takkt.de 23/03/2010