Takkt Ag · XETR:TTK
Takkt — Non-Deal Roadshow (March 2014)
36 slides from Takkt's roadshow presentation, March 2014
Slide 1: Roadshow Presentation March 2014
ROADSHOW PRESENTATION MARCH 2014 PORTFOLIO OF B2B DIRECT MARKETING SPECIALISTS
Slide 2: Agenda
AGENDA Business model Growth and diversification strategy Organic growth initatives Financial year 2013 Outlook 2014 2
Slide 3: Portfolio of B2B Direct Marketing Specialists
PORTFOLIO OF B2B DIRECT MARKETING SPECIALISTS 3
Slide 4: Portfolio of B2B Direct Marketing Specialists
PORTFOLIO OF B2B DIRECT MARKETING SPECIALISTS 4
Slide 5: TAKKT at a Glance
TAKKT AT A GLANCE • type: Business to Business business • sales channel: multi-channel direct marketing • products: durables/specialties • regional diversification: > 25 countries regions • turnover by region: 55% Europe / 45% North America • number of customers: > 3m key facts • number of employees
Slide 6: Our Market Position
OUR MARKET POSITION TAKKT focuses its business model on a highly integrated multi-channel direct marketing approach in the B2B market segment multi- channel brands multi- value adding channel direct partner brands marketing web-focused brands pure retail distributor single channel multi-channel non-
Slide 7: TAKKT Value Add Goes Significantly Beyond Product Distribution
TAKKT VALUE ADD GOES SIGNIFICANTLY BEYOND PRODUCT DISTRIBUTION TAKKT business model serves customer needs for equipment in the most convenient and efficient way vendors TAKKT added values customers High-quality Fast Individual large potential product delivery price groups selection times quotes Cust
Slide 8: TAKKT's Multiple Channels Ideally Serve Diverse Customer Groups
TAKKT‘S MULTIPLE CHANNELS IDEALLY SERVE DIVERSE CUSTOMER GROUPS multi-channel web-focused 8
Slide 9: Evolution of the Business Model
EVOLUTION OF THE BUSINESS MODEL core competencies integrated multi-channel direct marketing + multi- channel direct marketing + web- focused + online • e-commerce print + advice field sales • webshop telesales • e-procurement/ • performance brands + fulfillment • individual customer (product brands)
Slide 10: Clear Organizational Structure
CLEAR ORGANIZATIONAL STRUCTURE TAKKT AG Business Packaging Plant Specialties Office Equipment Solutions Equipment Group Equipment Group Group Group Group Multi-channel brands Web-focused brands 10
Slide 11: Agenda
AGENDA Business model Growth and diversification strategy Organic growth initatives Financial year 2013 Outlook 2014 11
Slide 12: Growth Strategy with Clearly Defined Financial Targets
GROWTH STRATEGY WITH CLEARLY DEFINED FINANCIAL TARGETS • ongoing extension of multi-channel direct marketing growth through • development of web-focused brands organic activities (ca. 5% CAGR) • expansion of product range • international roll-out • new product ranges growth through • new customer gr
Slide 13: Diversification of Regions, Customer Groups & Product Ranges
DIVERSIFICATION OF REGIONS, CUSTOMER GROUPS & PRODUCT RANGES Regions Customer groups Product ranges Others USA Others Manufacturing Merchandising Others Germany Non-profit and Public Packaging Storage and Organizations and Shipping Transport Food and Trade Dining Plant and Environment Europe without
Slide 14: Agenda
AGENDA Business model Growth and diversification strategy Organic growth initatives Financial year 2013 Outlook 2014 14
Slide 15: Multi-Channel Advantages: Various Points of Contact
MULTI-CHANNEL ADVANTAGES: VARIOUS POINTS OF CONTACT PAST PRESENT exclusive reliance on print multi-channel distribution strategy Initiatives: • redefining the role of the catalogue • expansion of e-commerce • extension of field and tele sales 15
Slide 16: E-Commerce Once Again with Growth
E-COMMERCE ONCE AGAIN WITH GROWTH E-commerce share of total order intake in % Split of e-commerce channels 28.0% 25.7% 21.3% E-procurement 19.4% 14.3% 2009 2010 2011 2012 2013 Web-focused Multi-channel 16
Slide 17: Development of Web-Focused Brands
DEVELOPMENT OF WEB-FOCUSED BRANDS • • • • • • 17
Slide 18: Expansion of Product Range
EXPANSION OF PRODUCT RANGE • price insensitive products New product • fragmented market environment categories • high quality products • opportunity for added value • additional products out of existing product categories Web-only products • test new product categories • strict profitability require
Slide 19: Increasing Share of Performance Brands
INCREASING SHARE OF PERFORMANCE BRANDS Share of performance brands in order intake in % 20% 13.9% 13.1% 10.5% 9.8% 2010 2011 2012 2013 2014 2015 2016 (goal) • Private label brands with focus on high quality and reliability • “brands equivalent” same quality as industry standard with better value f
Slide 20: Goal of Being a Leading Example of Sustainability by 2016
GOAL OF BEING A LEADING EXAMPLE OF SUSTAINABILITY IN OUR SECTOR BY 2016 20
Slide 21: Roll Out of Successful Business Models
ROLL OUT OF SUCCESSFUL BUSINESS MODELS Foundation Western Southern Eastern China Russia Germany Europe Europe Europe 2006 2010 1945 1967-75 from 1986 from 1990 Acquisition Nether- Canada Germany France Switzerland US lands 2005 2007 2009 2010 2000 2013 Foundation Austria Switzerland France Germany 2
Slide 22: Agenda
AGENDA Business model Growth and diversification strategy Organic growth initatives Financial year 2013 Outlook 2014 22
Slide 23: Turnover Growth Despite Difficult Economic Conditions
TURNOVER GROWTH DESPITE DIFFICULT ECONOMIC CONDITIONS Turnover in EUR million 939.9 952.5 852.2 801.6 731.5 2009 2010 2011 2012 2013 absolute: +1.3% growth organic: -2.6% decline 23
Slide 24: US Business Strong, TAKKT Europe Showed Organic Decline
US-BUSINESS STRONG DESPITE BUDGET DISPUTE, TAKKT EUROPE SHOWED ORGANIC DECLINE Turnover TAKKT EUROPE and TAKKT AMERICA in EUR million TAKKT EUROPE TAKKT AMERICA 515.1 525.4 425.2 427.5 2012 2013 2012 2013 absolute: +2.0% growth absolute: +0.5% growth organic: -5.3% decline organic: +0.7% growth 24
Slide 25: Positive Organic Growth Trend Over the Course of the Year
POSITIVE ORGANIC GROWTH TREND OVER THE COURSE OF THE YEAR 25
Slide 26: Acquisitions Increase Gross Profit Margin
ACQUISITIONS INCREASE GROSS PROFIT MARGIN Gross profit margin in % 42.9% 43.3% 43.3% 43.6% 42.0% 2009 2010 2011 2012 2013 26
Slide 27: Decrease in Profitability Due to One-Offs
DECREASE IN PROFITABILITY DUE TO ONE-OFFS EBITDA TAKKT Group in EUR million and margin in % 133.7 121.0 122.8 100.6 14.2% 14.2% 68.7 12.6% 12.9% 9.4% 2009 2010 2011 2012 2013 27
Slide 28: Difficult Business Climate for TAKKT Europe, TAKKT America Increased Profitability
DIFFICULT BUSINESS CLIMATE FOR TAKKT EUROPE, TAKKT AMERICA INCREASED PROFITABILITY EBITDA in EUR million and margin in % TAKKT EUROPE TAKKT AMERICA 101.9 89.3 19.8% 17.0% 41.3 42.2 9.7% 9.9% 2012 2013 2012 2013 28
Slide 29: Decrease in Profit
DECREASE IN PROFIT Profit in EUR million 67.0 -11.0 -4.7 -3.1 +4.3 52.5 2012 EBITDA depreciation financial result tax 2013 29
Slide 30: Cash Flow Remains Strength of the Business Model
CASH FLOW REMAINS STRENGTH OF THE BUSINESS MODEL 30
Slide 31: Reduction in Net Borrowings Thanks to Strong Cash Flow
REDUCTION IN NET BORROWINGS THANKS TO STRONG CASH FLOW Net borrowings in EUR million 324.9 273.0 180.8 139.2 93.7 2009 2010 2011 2012 2013 31
Slide 32: Agenda
AGENDA Business model Growth and diversification strategy Organic growth initatives Financial year 2013 Outlook 2014 32
Slide 33: Outlook for 2014
OUTLOOK FOR 2014 weaker economy GDP growth rates compared to 2013 PMI Organic turnover growth unchanged or weaker lower PMI figures lower main scenario significantly higher clearly above 50 3-5% stronger economy unexpectedly strong higher PMI figures higher e EBITDA in 2014 will be impacted by one-t
Slide 34: Thank You for Your Kind Attention
ROADSHOW PRESENTATION MARCH 2014 THANK YOU FOR YOUR KIND ATTENTION
Slide 35: Why Invest in TAKKT?
WHY INVEST IN TAKKT? • • • • • • • • • 35
Slide 36: Contact Details TAKKT Investor Relations
CONTACT DETAILS TAKKT INVESTOR RELATIONS 36