Takkt Ag · XETR:TTK
Takkt — Investor Presentation (June 2024)
46 slides from Takkt's investor presentation, Jun 24, 2024
Slide 1: Investor Presentation
TAKIT Investor Presentation
Slide 2: TAKKT at a glance
TAKKT at a glance Business model Sales Employees B2B Omnichannel EURm 1,240 2,500 Distributor Market cap Earnings Cash Free cash flow EURm ~750 EBITDA EURm 112 EURm 74 2 24.06.2024
Slide 3: What we do: business model, organization, market position
WHAT WE DO: BUSINESS MODEL, ORGANIZATION, MARKET POSITION
Slide 4: Business model
Business model Leading omnichannel distributor Industrial & Packaging for business equipment Focus on E-Commerce with webshops and E-Procurement supported by key accounters and print marketing Office Furniture & Displays Multi-brand approach to serve the market through three customer- oriented divis
Slide 5: Value add beyond distribution
Value add beyond distribution Vendors B2B customers Pre-selection of products to offer an attractive, broad and curated product portfolio (One-stop shops for three different worlds of work) Strong focus on sustainable products (low carbon footprint, recycled material, ..) Product expertise and perso
Slide 6: Addressable market is > EUR 110bn
Addressable market is > EUR 110bn Foodservice Display Market: > EUR Large addressable market Growth in line with or above 50bn Foodservice GDP Canad Fragmented supplier structure a Fragmented competition Office Industrial Fragmented customer segments Office > EUR Market volume 60bn Room to grow for
Slide 7: Current market share around 1%
Current market share around 1% Display FoodService TAKKT EUR Strong presence in all markets (top 10 position in each) 530m Office FoodService Large assortment Canad Strong and long-term a relationship with customers Office Depth of suppliers globally, strong long-term relationships Packaging EUR 710
Slide 8: Organization along Worlds of Work
Organization along 3 Worlds of Work Manufacturing, Warehouse Service Industry HoReCa 8 24.06.2024
Slide 9: What drives us: our vision
WHAT DRIVES US: OUR VISION Bringing new Worlds of Work to life
Slide 10: Deliver on evolving customer needs
Deliver on evolving customer needs MEGATRENDS TAKKT’S OFFER Blue collar/ white collar Full time/ WHO WORKS part time Temps/ Gig workers WORKSPACE TALENT SCARCITY Demographic change SOLUTIONS New HEALTH & WELLBEING HEALTH/WELLBEING Worlds HOW TO Remote PRODUCTS WORK of Work Collaborative workspaces A
Slide 11: Vision: New products and solutions
Vision: New products and solutions SUSTAINABILITY HEALTH SERVICE/SOLUTIONS •Lorum Ipsum Sustainable solutions: Health & wellbeing products: Workspace solutions: NBF Parker chair Ergonomic workbench Project planning and execution Circular approach: Electrically height-adjustable Individual consultati
Slide 12: How we win: our strategy
HOW WE WIN: OUR STRATEGY Growth, OneTAKKT, Caring
Slide 13: Strategy overview
Strategy overview Bringing new worlds of work to life by caring about environmental resources, people and customer success GROWTH OneTAKKT CARING Win customer trust as caring partner Increase profitability via Care-taking as major differentiator to gain customers and orders harmonization and automat
Slide 14: Strategic mid-term targets 2028
Strategic mid-term targets 2028 Bringing new worlds of work to life GROWTH OneTAKKT CARING Accelerate organic growth Increase EBITDA margin to 12% Customer NPS of 60 and gain market share Average cash conversion Increase share of women in Additional growth via M&A between 50% and 60% of EBITDA lea
Slide 15: Strategy implementation on track
Strategy implementation on track RESTART RESILIENCE ACCELERATION 2021–2022 2023–2024 2025–2028 ENVIRONMENT Pandemic, inflation, supply High uncertainty, Expected improvement in chain disruptions subdued demand environment PRIORITIES Operational Inflation management Improve gross profit margin, Accel
Slide 16: Growth Levers
Strategy progress 2023 – Growth Product Already 1/4 of revenues coming from “enkelfähig" products Growth Levers Cross- EUR 11m in cross-selling in 2023 (vs EUR 1.6m in 2022) within I&P and FS divisions selling Smart Improved gross profit margin and additional sales from smart pricing Pricing E-Com P
Slide 17: Strategy progress 2023 - OneTAKKT
Strategy progress 2023 - OneTAKKT Supply chain efficiency Inventory Management Decreased outbound transport Global initiative to transform cost in EU & US inventory management Closed 3rd party warehouses Strong inventory reduction of EUR 35 EU & US network set-up million in Europe & the US developed
Slide 18: Strategy progress 2023 - Caring
Strategy progress 2023 - Caring Sustainability Priorities Achievements & External Recognition Product Impact Responsible production & circularity 24% Share of Enkelfähig revenues Distribution Impact Climate adaption & mitigation 11% Reduction of CO2e Social Impact emissions Scope 1 & 2 Equity & Equa
Slide 19: Sustainability: Ratings and awards
Sustainability: Ratings and awards Confirmed score of A after change to Commercial Services and Supplies industry On a Scale from CCC to AAA 57th percentile within the benchmark Significantly lower carbon intensity than the industry average Risk Score improved to 16.8 On a scale from 0 (best) to 100
Slide 20: M&A strategy
M&A strategy Region/market: Focus on Europe and the US Worlds of work: Integration into one of the three divisions (more likely) or Targets build-up of new division for additional WoW (less likely) Financials: Solid financials and high organic growth potential Increase volume to improve economies of
Slide 21: Key topics and financials Q1 2024
KEY TOPICS AND FINANCIALS Q1 2024
Slide 22: Key topics in Q1 2024
Key topics in Q1 2024 Market environment Low or negative GDP growth, continues to be challenging PMIs and RPI signaling contraction Difficult start to the Organic sales growth year as expected minus 16.5 percent TAKKT shows resilience on cash, FCF improved to EUR 21.3 (14.5) million gross profit and
Slide 23: Q1: TAKKT Group
Q1: TAKKT Group Sales (in EUR million) EBITDA (in EUR million), (adjusted) margin (in %) 321.8 30.2 269.0 9.4% 9.6% 16.8 6.2% 7.4% Q1/23 Q1/24 Q1/23 Q1/24 Sales 16.4% below prior year, EBITDA of EUR 16.8 (30.2) million, impacted by one- 0.1% positive currency effects time costs of EUR 3.0 (0.6) mill
Slide 24: Q1: Industrial & Packaging
Q1: Industrial & Packaging Sales (in EUR million) EBITDA (in EUR million), (adjusted) margin (in %) 180.1 26.9 154.7 14.9% 14.9% 16.8 12.2% 10.9% Q1/23 Q1/24 Q1/23 Q1/24 Sales 14.1% below prior year, positive currency EBITDA at EUR 16.8 (26.9) million effects of 0.9% EBITDA margin at 10.9% (14.9%),
Slide 25: Q1: Office Furniture & Displays
Q1: Office Furniture & Displays Sales (in EUR million) EBITDA (in EUR million), (adjusted) margin (in %) 73.2 5.4 60.3 3.1 7.4% 7.4% 5.1% 5.5% Q1/23 Q1/24 Q1/23 Q1/24 Sales decreased by 17.7%, negative currency EBITDA was EUR 3.1 (5.4) million, EBITDA margin effects of 1.0% at 5.1% (7.4%) Organic sa
Slide 26: Q1: FoodService
Q1: FoodService Sales (in EUR million) EBITDA (in EUR million), (adjusted) margin (in %) 68.5 2.6 54.0 1.8 3.8% 4.7% 3.3%3.7% Q1/23 Q1/24 Q1/23 Q1/24 Sales decrease by 21.1% with negative EBITDA at EUR 1.8 (2.6) million, EBITDA margin at currency impact of 0.9% 3.3% (3.8%) Organic sales development
Slide 27: Cash flow and balance sheet strength
CASH FLOW AND BALANCE SHEET STRENGTH
Slide 28: Strong increase in free cash flow 2023
Strong increase in free cash flow 2023 Free cash flow development Delta 2023 vs in EUR million 2022 2023 2022 Cash flow before change of 115.1 86.0 -29.1 net working capital Change in net working capital as • Substantial reduction in -30.7 +20.4 +51.1 NWC after increase in 2022 well as other adjustm
Slide 29: Cash flow generation in Q1/24
Cash flow generation in Q1/24 Free cash flow development in EUR million Q1/23 Q1/24 Cash flow before change of 24.9 13.5 net working capital Change in net working capital as well Active inventory management -4.3 +14.3 as other adjustments allows for release of additional inventory of EUR 7 million C
Slide 30: Stable and positive long-term FCF
Stable and positive long-term FCF Development of EBITDA and free cash flow (in EUR million) 160 120 80 40 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 EBITDA Free cash flow 30 24.06.2024
Slide 31: Balance sheet Q1/24
Balance sheet Q1/24 Net financial liabilities (of which lease liabilities) (in EUR million) Equity ratio (in %) 106.0 63.8% 64.0% 89.8 57.7 61.1 12/31/2023 03/31/2024 12/31/2023 03/31/2024 Decrease in net financial liabilities Equity ratio above the target corridor of 30 to 60 percent Strong balance
Slide 32: Outlook 2024
LT OUTLOOK 2024
Slide 33: Outlook 2024
Outlook 2024 Environment and TAKKT’s priority: FY forecast expectations Strengthen resilience key financials Low growth in target markets Continue the focus on gross Organic sales with in Europe and the US profit margin, cost high-single- to management and cash flow low-double-digit decline European
Slide 34: TAKKT share and investment thesis
TAKKT SHARE AND INVESTMENT THESIS
Slide 35: Information about the TAKKT share
Information about the TAKKT share Total Shareholder Return: TAKKT and indices Shareholder structure 1.7% Franz Haniel & Cie. 150 33.3% Free float 125 65.0% Treasury shares 100 Analyst recommendations 75 50 Buy Hold Sell 25 3 TAKKT DAX MDAX SDAX Average price target of EUR 13.0 35 24.06.2024
Slide 36: Dividend proposal
Dividend proposal Share buyback Prolongation of share buyback program with a total volume of up to EUR 25 million until the end of December 2024 To date, 1.1 million shares repurchased for EUR 14.3 million Dividend policy Dividend payout TAKKT is committed to pay out at least a base Dividend payment
Slide 37: Investment thesis
Investment thesis Addressable market >EUR 110bn Vision: Bringing new worlds of work to life Strategy: Growth – OneTAKKT – Caring Excellent position to grow in an attractive and Clear vision & growth- fragmented market oriented strategy Good execution Strong balance sheet, and track record cash flow
Slide 38: Appendix
LT APPENDIX
Slide 39: Organic sales growth
Organic sales growth Organic growth Q1/23 Q2/23 Q3/23 Q4/23 2023 Q1/24 TAKKT Group -3.3% -1.8% -7.1% -11.3% -5.9% -16.5% Industrial & -4.2% -4.3% -7.5% -11.5% -6.9% -15.0% Packaging Office Furniture & -5.8% -10.3% -12.2% -14.7% -10.8% -16.7% Displays FoodService 2.5% 14.9% -0.6% -6.8% 2.3% -20.2% 39
Slide 40: Structure of sales development
Structure of sales development Q1/23 Q2/23 Q3/23 Q4/23 2023 Q1/24 TAKKT Group in EUR -2.0% -2.8% -10.6% -13.3% -7.2% -16.4% organic -3.3% -1.8% -7.1% -11.3% -5.9% -16.5% currency 1.3% -1.0% -3.5% -2.0% -1.3% +0.1% acquisition/divestment - - - - - - Industrial & Packaging in EUR -5.1% -4.6% -7.8% -11
Slide 41: Financial key figures
Financial key figures 2019 2020 2021 2022 2023 Organic sales development in percent -1.4 -11.8 11.4 -1.0 -11.3 Organic growth in order intake via e-commerce 2.0 -3.6 16.3 1.1 -8.1 in percent Number of orders in thousand 2,642 2,535 2,500 2,190 1,970 Average order value in EUR 460 425 491 607 631 Gro
Slide 42: 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% 59.0% 55.0% 57.1% 2.0% 1.1% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 -3.6% -8.1% 42 24.06.2024
Slide 43: Product range figures
Product range figures Share of private labels (in %) Share of direct imports (in %) 23.3% 22.5% 29.4% 30.4% 22.0% 21.7% 21.6% 26.5% 24.1% 24.2% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 43 24.06.2024
Slide 44: Value-based figures
Value-based figures TAKKT value added (in EUR million) Return on Capital Employed (in %) 9.8 11.1% 8.0% 8.4% 2020 2021 2022 2023 2019 -1.5 -3.1 5.6% 4.2% -23.2 2019 2020 2021 2022 2023 -30.6 TAKKT value added (in EUR million) - adjusted for impairment Return on Capital Employed (in %) – adjusted for
Slide 45: Internal covenants: Strong balance sheet
Internal covenants: Strong balance sheet Equity ratio (in %) Debt repayment period (in years) 64.7% 62.2% 62.4% 63.8% 58.5% 1.3 0.8 0.9 0.9 0.9 Internal target range: Internal target value: 30 to 60 percent < 5 years 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Interest cover Gearing 20.1 16.7
Slide 46: TAKKT investor relations
TAKKT investor relations IR Contact Upcoming Events Benjamin Bühler Phone: +49 711 3465-8223 Early July, Virtual Roadshow Fax: +49 711 3465-8100 e-mail: investor@takkt.de July 25, Quarterly statement 2/2024 www.takkt.com September 23-25, Berenberg conference TAKKT AG is headquartered in Stuttgart, G