Takkt AG · XETR:TTK

Takkt — FY2012 Earnings Presentation

59 slides from Takkt's earnings presentation, Mar 21, 2013

  1. Slide 1: Analyst conference

    Analyst conference 21 March 2013

  2. Slide 2: Content

    Content  Business model  Strategic initiatives 2013-2016  Financial year 2012  Outlook 2013  Financial calendar and IR contacts 2

  3. Slide 3: Business model

    TAKKTAG BUSINESS EQUIPMENT SOLUTIONS Business model

  4. Slide 4: Business overview

    Business overview  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

  5. Slide 5: Success factors

    Success factors clear business model clear clear strategy for TAKKT value-added for growth customers clear organisational structure 5

  6. Slide 6: Our business model

    Our business model TAKKT focuses its business model on a highly integrated multi-channel direct marketing approach in the B2B market segment. value adding direct partner TAKKT marketing pure retail distributor single channel multi-channel non- integrated integrated multi- multi- channel channel 6

  7. Slide 7: Clear value added for customers

    Clear value added for customers TAKKT business model serves customer needs for equipment in the most convenient and efficient way. Vendors TAKKT added values Customers High-quality Individual Large potential product price Groups selection quotes Custom Mid potential Advise made SMEs, public products

  8. Slide 8: Clear organisational structure

    Clear organisational structure Scalable organisational structure with clear allocation of responsibilities and quick decision-making processes TAKKT EUROPE TAKKT AMERICA SERVICE COMPANIES KAISER+KRAFT TOPDEQ C&H HUBERT NBF RATIOFORM EUROPA SERVICE Service SERVICE SERVICE MULTI-CHANNEL BRANDS WEB-FOC

  9. Slide 9: Clear strategy for growth

    Clear strategy for growth  new products growth through acquisitions  new customers (ca. 5% CAGR)  new regions  ongoing extension of multi-channel direct marketing growth through  development of web-focused brands organic activities  expansion of product range (ca. 5% CAGR)  international roll

  10. Slide 10: Long-term growth path

    Long-term growth path Turnover TAKKT Group  1985 - 2012 in EUR million 1,000 940 CAGR: ~ 10% 800 600 400 other 200 USA 80 Europe w/o Germany Germany 1985 2012 10

  11. Slide 11: Evolution of the business model

    Evolution of the business model integrated multi-channel direct marketing multi- + channel plus B2B direct marketing web- + focused + online  e-commerce  print + advise  webshop  field sales  e-procurement /  telesales + fulfilment  individual customized web customer  expansion of contacts p

  12. Slide 12: Acting sustainably

    Acting sustainably TAKKT aims to become a role model in terms of sustainability in its industry by 2016 Initiatives:  first time calculation of the carbon footprint of the largest subsidiaries, detailed plans to reduce and compensate for emissions  carbon neutral shipping in Europe via UPS  carbo

  13. Slide 13: Strategic initiatives 2013-2016

    Strategic initiatives 2013-2016

  14. Slide 14: Targets and strategic initiatives 2013 - 2016

    Targets and strategic initiatives 2013 - 2016  long-term average growth ~ 10% p.a. growth and ~ 50% organic growth profitability ~ 50% by acquisitions targets • EBITDA margin within corridor of 12 to 15%  ongoing extension of multi-channel direct marketing strategic  development of web-focused br

  15. Slide 15: Changes in customer behaviour: various points of contact

    Changes in customer behaviour: various points of contact past: present: order order  Initiatives:  redifining the role of the catalogue  expansion of e-commerce  extension of field and tele sales 15

  16. Slide 16: Strong interdependence between different sales channels

    Strong interdependence between different sales channels Analysing the customer journey: print 29% 27% 31% 25% 30% personal contact web shop 28% Explanation: 28% of all web shop orders were initiated by a prior personal contact  a multi-channel mix tailored to each customer„s needs is the key to suc

  17. Slide 17: Additional growth through multi-channel activities

    Additional growth through multi-channel activities Order intake 2012 Initiatives:  further focus on e-commerce, tele and field sales mid- to long-term target:  double the share of order intake of e-commerce, tele and field sales inbound e-commerce tele outbound field 17

  18. Slide 18: E-commerce growth significantly above Group average

    E-commerce growth significantly above Group average Order intake e-commerce  2008 - 2012 in percent 5.8% 30 25.7 25 21.3 19.4 20 6.5% 13.4% 13.9 14.3 15 10 5 multi-channel 0 2008 2009 2010 2011 2012 e-procurement web-focused Increase of 32.7 percent including acquisitions Organic growth of 7.7 perc

  19. Slide 19: Multiple channels address different customer groups

    Multiple channels allow to specifically adress different customer groups customer customer customer customer group demand focus on relationship large customers multi- • optimising the Groups channel frequent & procurement brands regularly process long-term mid-sized • services customers SMEs, public

  20. Slide 20: Development of web-focused brands

    Development of web-focused brands ● office, plant and warehouse equipment ● targeted at smaller and micro businesses ● display articles and digital signage products ● experts in SEO/SEA (~ 80% of turnover generated online) ● high quality office furniture ● targeted at smaller businesses with a less

  21. Slide 21: Expansion of product range

    Expansion of product range new product categories:  price insensitive products   fragmented market environment  high quality products  opportunity for added value web-only products:  additional products out of existing product categories  test new product categories  strict profitability req

  22. Slide 22: Positioning of performance brands at TAKKT

    Positioning of performance brands at TAKKT TAKKT„s performance brands are positioned as 3rd and 4th category brands and focus on offering high quality and reliability 1st category 2nd category 3rd category 4th category “generics” “value” “brand equivalents” “premium/niche”  low priced  basic produ

  23. Slide 23: Strengthening the performance brand portfolio

    Strengthening the performance brand portfolio Turnover share performance brands  in percent 25 20 20 15 13.1 9.8 10.5 10 5 2010 2011 2012 2013 2014 2015 2016 23

  24. Slide 24: 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 Canada Germany France Switzerland US 2005 2007 2009 2010 2013 2000 Foundation Austria Switzerland France Germany 2010 2011 2012

  25. Slide 25: Typical profitability life cycle of new business

    Typical profitability life cycle of new business established EBITDA companies margin Profitability development follows typical life cycle curve . . . 0 t typical new business break even 3 -5 years 100% marketing split . . . since the share of the marketing non customers spend targeted at customers b

  26. Slide 26: Future portfolio of products and regions

    Future portfolio of products and regions product other display products packaging sales foodservice- equipment office equipment business equipment region Europe North America Asia other 26

  27. Slide 27: Financial year 2012

    TAKKTAG BUSINESS EQUIPMENT SOLUTIONS Financial year 2012

  28. Slide 28: Financial highlights 2012

    Financial highlights 2012  Double digit growth (+10.3%) due to two acquisitions and a strong US business  Growth in the US partly compensated decline in European business. Organic turnover development (currency and acquisition effects excluded) was slightly declining by 2.8%.  EBITDA-margin remai

  29. Slide 29: Growth through acquisitions

    Growth through acquisitions Turnover TAKKT Group  2008 - 2012 in EUR million 1,000 932.1 939.9 852.2 79.3 801.6 800 731.5 860.6 600 400 200 0 2008 2009 2010 2011 2012 -5.5% -21.5% +9.6% +6.3% +10.3% growth +0.7% -26.2% +4.8% +7.3% -2.8% organic 29

  30. Slide 30: Growth of US-business partly compensates organic decline in Europe

    Growth of US-business partly compensates organic decline in Europe TAKKT EUROPE TAKKT AMERICA  2011 - 2012 in EUR million 600 515.1 .507.3 500 42.9 425.2 400 36.4 345.2 300 472.2 388.8 200 100 0 2011 2012 2011 2012 +1.5% +23.2% growth -7.6% +4.2% organic 30

  31. Slide 31: Changing dynamics over the course of the year

    Changing dynamics over the course of the year Organic growth  QI Q II Q III Q IV FY TAKKT Group +2.2% -2.8% -4.5% -5.8% -2.8% TAKKT EUROPE -2.6% -6.3% -10.0% -11.5% -7.6% TAKKT AMERICA +10.0% +2.2% +2.1% +3.2% +4.2% 31

  32. Slide 32: Diversification of regions, customer groups and product segments

    Diversification of regions, customer groups and product segments 3.5% 3.1% 10.6% 8.4% 24.0% 22.7% 34.1% 11.4% 15.7% 41.7% 6.7% 30.8% 23.8% 26.8% 12.8% 23.9% 2012 2012 2012 Regions Customer groups Product segments USA Manufacturing Plant & Environment Germany Trade Storage & Transport Europe w/o Germ

  33. Slide 33: Gross profit margin remains stable due to acquisitions

    Gross profit margin remains stable due to acquisitions Turnover and gross profit  2008 - 2012 in EUR million in % 1,000 50 800 40 600 30 400 20 200 10 Gross profit margin Gross profit 2008 2009 2010 2011 2012 Turnover 33

  34. Slide 34: EBITDA-margin still in the upper third of the target corridor

    EBITDA-margin still in the upper third of the target corridor EBITDA  2008 - 2012 in EUR million 150 133.1 133.8 125 121.0 14.7 100.6 100 119.1 75 68.7 50 25 0 2008 2009 2010 2011 2012 14.3% 9.4% 12.6% 14.2% 14.2% margin 13.8% ex acquistions 34

  35. Slide 35: Profitability in the US increased further

    Profitability in the US increased further TAKKT EUROPE TAKKT AMERICA  2011 - 2012 in EUR million 120 101.0 102.0 100 10.9 80 91.1 60 41.3 40 3.8 28.6 1.3 20 27.3 37.5 0 2011 2012 2011 2012 19.9% 19.8% 8.3% 9.7% margin 19.3% ex Ratioform 8.7% 9.6% ex GPA and one offs 35

  36. Slide 36: Slight increase in profit despite decline in European business

    Slight increase in profit despite decline in European business Profit after taxes  2008 - 2012 in EUR million 100 80 75.1 66.0 67.0 60 40 34.6 27.8 20 0 2008 2009 2010 2011 2012 8.1% 3.8% 4.3% 7.7% 7.1% margin 36

  37. Slide 37: Slightly increased profit after taxes

    Slightly increased profit after taxes Profit after taxes  2011 - 2012 in EUR million 100 +12.8 -5.4 80 -3.0 -3.4 67.0 66.0 60 40 profit after taxes 20 ∆ EBITDA ∆ depreciation/ impairment 0 2011 2012 ∆ financial result ∆ taxes 37

  38. Slide 38: TAKKT cash flow increased by more than five percent

    TAKKT cash flow increased by more than five percent TAKKT cash flow  2008 - 2012 in EUR million 97.1 92.7 100 87.8 81.7 80 70.3 70.3 56.1 60 40 20 deferred tax depreciation 2008 2009 2010 2011 2012 profit 10.4% 7.7% 8.8% 10.3% 9.9% margin 38

  39. Slide 39: Cash flow remains the strength of the TAKKT business model

    Cash flow remains the strength of the TAKKT business model TAKKT cash flow  in EUR million 2008 2009 2010 2011 2012 TAKKT cash flow 97.1 56.1 70.3 87.8 92.7 change of net working capital and other -0.2 +14.9 +18.1 -8.4 +10.6 adjustments cash flow from operating 96.9 71.0 88.4 79.4 103.3 activities

  40. Slide 40: Acquisitions considerably increase the balance sheet total

    Acquisitions considerably increase the balance sheet total Non-current assets Total equity  2011 - 2012 in EUR million  2011 - 2012 in EUR million +302.8m +11.0m 800 679.7 400 301.0 312.0 600 300 376.9 400 200 200 100 2011 2012 2011 2012 Current assets Liabilities  2011 - 2012 in EUR million  20

  41. Slide 41: Acquisitions increased borrowings

    Acquisitions increased borrowings Borrowings  2008 - 2012 in EUR million 350 330.9 300 250 200 184.0 142.8 150 95.9 100 83.4 50 0 2008 2009 2010 2011 2012 41

  42. Slide 42: Acquisitions partly financed by cash flow from operating activities

    Acquisitions partly financed by cash flow from operating activities Borrowings  2011 - 2012 in EUR million 400 +67.7 +8.0 +2.2 330.9 300 +204.6 borrowings 200 dividend payment +55.8 -103.3 cash flow from operating activities 95.9 100 net acquisition payments acquired debt 0 net capex 2011 2012 curr

  43. Slide 43: Schuldschein loan broadens TAKKT's financing base

    Schuldschein loan broadens TAKKT’s financing base Borrowings by currency  in EUR million portion of weighted total remaining average 31.12.12 liabilities term (years) interest rate USD liabilities 108.9 32.9% 3.8 3.5% EUR liabilities 221.7 67.0% borrowings 32.7 9.9% 3.9 2.2% Schuldschein 139.5 42.2

  44. Slide 44: Schuldschein loan improves maturity profile

    Schuldschein loan improves maturity profile Maturity profile  in EUR million 150 125 111.3 98.1 100 75 52.4 50 37.7 29.2 25 2.1 0 2013 2014 2015 2016 2017 2018 ff. 44

  45. Slide 45: Equity ratio still at a comfortable level

    Equity ratio still at a comfortable level Equity ratio  2008 - 2012 in percent 61.7 60 54.7 46.5  equity ratio 45.1 (total equity/total assets) 40 35.7 20 2008 2009 2010 2011 2012 45

  46. Slide 46: Enough headroom for future growth

    Enough headroom for future growth Gearing  2006 - 2011 1.25 1.0 1.00  gearing 0.8 (net borrowings/total equity) 0.75 0.6 0.50 0.3 0.2 0.25 2008 2009 2010 2011 2012 46

  47. Slide 47: Only slightly decreased interest cover

    Only slightly decreased interest cover Interest cover  2008 - 2012 21.0 18  interest cover 14 12.2 (EBITA/net interest expense) 9.0 9.6 10 6.9 6 2 2008 2009 2010 2011 2012 47

  48. Slide 48: Manageable debt repayment period due to strong cash flow

    Manageable debt repayment period due to strong cash flow Debt repayment period  2008 - 2012 in years 4.0 3.0  debt repayment period 3.0 2.4 2.2 (average net borrowings/ 2.0 TAKKT cash flow) 1.2 1.0 0.8 2008 2009 2010 2011 2012 48

  49. Slide 49: Increase in numbers of employees mainly due to acquisitions

    Increase in numbers of employees mainly due to acquisitions Employees  2008 - 2012 full time equivalent at 31.12. 2,500 2,351 1,960 2,000 1,869 1,768 1,807 1,500 1,000 500 0 Germany 2008 2009 2010 2011 2012 abroad 49

  50. Slide 50: TAKKT share price trending upwards

    TAKKT share price trending upwards Share price development  in Euro 13.00  market cap: EUR ~ 768m as per 28.02.13 12.00  shareholders: - free float: 29.6% 11.00 - Franz Haniel & Cie. – GmbH: 70.4%  share price performance 2012: 10.00 +23.2 % total shareholder return: 34.0 % 9.00  dividend yield

  51. Slide 51: Earnings and TAKKT cash flow increased further

    Earnings and TAKKT cash flow increased further Key figures per share  2008 - 2012 in Euro 1.50 1.41 1.33 1.34 1.25 1.07 1.01 1.01 1.02 1.00 0.84 0.75 0.52 0.50 0.41 0.25 earnings per share 0.00 2008 2009 2010 2011 2012 TAKKT cash flow per share 51

  52. Slide 52: Dividend policy unchanged

    Dividend policy unchanged Key figures per share  2008 - 2012 in Euro 1.00 0.85 0.80 0.80 0.60 0.53 0.48 0.40 0.32 0.32 0.32 0.20 0.32 0.32 0.00 base dividend 2008 2009 2010 2011 2012 special dividend 52

  53. Slide 53: Successful financial year 2012

    Successful financial year 2012  Group portfolio is expanded by two acquisitions  Regional diversification has a positive effect  Stable Group earnings despite a weak economic environment in Europe  Schuldschein debut strengthens TAKKT‟s standing on the capital market 53

  54. Slide 54: Outlook 2013

    TAKKTAG BUSINESS EQUIPMENT SOLUTIONS Outlook 2013

  55. Slide 55: Outlook for 2013

    Outlook for 2013 scenario I scenario II scenario III GDP growth rates significantly unchanged/ lower compared to 2012 higher slightly higher PMI 50-60 ~ 50 < 50 organic turnover growth 3-5% 1-3% ≤ 0% fx-adj. turnover growth 9-11% 7-9% ≤ 6% (acquisitions included)  EBITDA-margin expected within the

  56. Slide 56: Why invest in TAKKT?

    Why invest in TAKKT?  extension of multi-channel direct marketing activities and development of web-focused sustainable brands growth potential  duplicable system business  entering new markets / product groups  product diversification balanced  independence from customers and suppliers risk po

  57. Slide 57: Financial calendar and IR contact

    financial calendar and IR contact

  58. Slide 58: Financial calendar 2013

    Financial calendar 2013 21-23 January Cheuvreux German Corporate Conference, Frankfurt 19 February preliminary figures 2012 21 March financial statements 2012 press conference and analyst presentation 25-28 March spring road show 30 April interim financial report 3M 2013 07 May annual general meetin

  59. Slide 59: IR contact

    IR contact TAKKT AG Presselstrasse 12 Corporate Finance/Investor Relations 70191 Stuttgart Dr Christian Warns Germany Phone: +49 711 3465-80 Phone: +49 711 3465-8222 Fax: +49 711 3465-8100 Fax: +49 711 3465-8104 e-mail: investor@takkt.de e-mail: christian.warns@takkt.de www.takkt.de www.takkt.de 59

Takkt — FY2012 Earnings Presentation on 6ix