TAKKT Group benefits from sustained economic recovery and growth initiatives

Thursday, 28. October 2010 07:30
Takkt AG /
TAKKT Group benefits from sustained economic recovery and growth initiatives
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Disproportionate increase in operating result

Stuttgart, Germany, 28 October 2010. The current economic recovery and the
GROWTH initiatives started last year have led to a satisfactory development of
business at TAKKT Group in the first nine months of 2010. Following a positive
turnover trend in the second quarter, the third quarter has also brought a clear
turnover increase. The higher level of capacity utilisation and the positive
effects from the FOCUS measures implemented in the previous year contributed to
a disproportionate increase in the operating result. The turnover guidance for
the full-year 2010 - which had been raised in the middle of the year - was
increased slightly. The Management Board now expects organic growth between
three and four percent.

Significant events in 2010
* Organic turnover growth of 3.1 percent in the first nine months, 6.5 percent
in the third quarter

* EBITDA margin increases to 13.0 (previous year's period: 10.1) percent
* Earnings per share up 61.8 percent
* TAKKT awarded first prize in the Investor Relations Award of business
magazine "Capital"


TAKKT Group achieved turnover growth of 7.8 percent in the first nine months of
2010. In this period, consolidated turnover came to EUR 587.3 (544.9) million.
Adjusted for currency effects and the acquisition of Central Restaurant Products
(Central), consolidated turnover grew organically by 3.1 percent. "The third
quarter showed an intact growth trend. With an organic turnover increase of 6.5
percent compared to the corresponding quarter last year, we maintained the high
growth rate seen in the second quarter," explained CEO Dr Felix A. Zimmermann.
Against this background, the Management Board has once again raised its turnover
forecast slightly: "We are now expecting organic turnover growth of three to
four percent for the full-year."

The gross profit margin climbed to 42.6 (41.9) percent in the reporting period;
adjusted for the acquisition of Central, the increase was 0.8 percentage points.
The higher gross profit margin and the improved utilisation of infrastructure
capacity, together with the positive impact of the FOCUS measures implemented
for restructuring in the previous year, led to an increase in operational
profitability. EBITDA (earnings before interest, tax, depreciation and
amortisation) increased to EUR 76.3 (55.2) million in the first three quarters
of 2010. This corresponds to an increase in the EBITDA margin to 13.0 (10.1)
percent.

The TAKKT cash flow rose to EUR 53.5 (40.7) million in the first nine months,
representing growth of 31.4 percent. The cash flow margin came to 9.1 (7.5)
percent, again confirming the special strength of the TAKKT business model.

Both divisions increase their turnover
Turnover in both divisions, TAKKT EUROPE and TAKKT AMERICA, developed
positively. In the period under review, TAKKT EUROPE generated total turnover of
EUR 332.9 (319.0) million. This represents a year-on-year increase of 4.4
percent. The division thereby contributed 56.7 (58.5) percent to consolidated
turnover. Adjusted for currency effects, turnover went up 2.4 percent in the
first nine months.

However, TAKKT EUROPE's two groups experienced differing business development.
The Business Equipment Group (BEG), comprising the KAISER + KRAFT EUROPA
companies, finished the first nine months of the year with a high single-digit
rate of turnover growth. Business development in Germany was the major driver of
this positive trend. The Office Equipment Group (OEG) containing the European
Topdeq companies, on the other hand, recorded a double-digit fall in turnover.
As a result, TAKKT is currently working on a catalogue of measures for the
strategic repositioning of the OEG. After finalising the exact measures and the
ensuing plan calculations, the OEG goodwill will be reviewed in the fourth
quarter. In this respect, it is currently impossible to rule out the need for
impairment.

TAKKT EUROPE reached a clear EBITDA growth of 45.9 percent to EUR 56.6 (38.8)
million in the first nine months. This took the EBITDA margin from 12.2 percent
in the corresponding period last year to 17.0 percent.

The division expanded further in the period under review by implementing a
variety of GROWTH initiatives. At the beginning of the year, KAISER + KRAFT
launched its operations in Russia. In May, the gaerner Group started its sales
activities in Italy. The new internet brand Certeo was launched in Austria in
the second quarter; its market entry in Switzerland will follow before the end
of 2010.

TAKKT AMERICA maintains growth
TAKKT AMERICA generated turnover of USD 333.8 (308.2) million in the reporting
period. This corresponds to an increase of 8.3 percent year-on-year. Adjusted
for the acquisition of Central, turnover grew by 4.9 percent. In TAKKT's
reporting currency Euro, the division generated turnover of EUR 254.5 (226.0)
million. Consequently, TAKKT AMERICA accounted for 43.3 (41.5) percent of
consolidated turnover.

One of the division's reliable strengths continues to be its widely diversified
customer and product portfolio. Although the companies in the Office Equipment
Group (OEG) tend towards late-cyclical development, the group increased its
turnover slightly in the first nine months. The Plant Equipment Group (PEG)
achieved a good single-digit increase in its turnover thanks to the continuous
rise in the number of orders. The Specialties Group (SPG) posted the biggest
improvement with a high single-digit rate of organic growth.

TAKKT AMERICA generated EBITDA of EUR 25.3 (21.9) million in the period under
review, resulting in an EBITDA margin of 9.9 (9.7) percent. Leaving out Central,
the EBITDA margin amounted to 9.6 (9.3) percent.

TAKKT AMERICA also continues to pursue various GROWTH initiatives. In September,
for example, the Hubert brand was launched in Switzerland as its third European
market, having already started successfully in Germany and France. In June, the
first online-only presence in the PEG, Industrialsupplies.com, was launched.

Due to positive experience throughout the Group, all companies within both
divisions will extend their range of private-brand articles.

Economic environment reinforces turnover forecast
Economic growth, particularly in Germany, has been a positive surprise in the
first nine months of 2010. So far, the economy has grown more robustly than was
generally expected. However, the TAKKT Management Board expects the pace of
growth to slow down slightly over the next few months, also because the previous
year's higher comparative figures. All in all, the TAKKT Management Board now
expects organic turnover growth of between three and four percent for the full-
year 2010.

The advertising costs posted by TAKKT Group will be disproportionately high in
the fourth quarter. This is due to the new IFRS accounting rules for advertising
costs that have been applied since 2009. As a consequence, the EBITDA margin at
year-end will be below the figure for the first nine months. "Currently, we
expect the Group EBITDA margin to be near the lower end of our long-term target
corridor of twelve to 15 percent, and thus well above that of the previous
year," explained TAKKT CFO Dr Florian Funck.

TAKKT receives Investor Relations Award
In 2010, TAKKT AG's consistent and sustainable investor relations work was again
rewarded on the capital market. TAKKT achieved first prize in the "SDAX"
category in the Investor Relations Awards of the business magazine "Capital",
scoring the highest rating of all 198 participating companies. The award spurs
TAKKT on to further improve its already high standards of comprehensive IR work.

TAKKT will present the preliminary figures for the 2010 financial year on 17
February 2011.

Conference call
We invite you to directly address the Management Board with your questions. We
will be hosting a conference call for this purpose at 15:00 (CEST) on 28 October
2010, during which we will be available for questions. To take part, please dial
the following number: +49 69 201744-295 (access code: 779134#).

Short profile of TAKKT AG
TAKKT is the leading B2B direct marketing specialist for business equipment in
Europe and North America. The Group is represented with its brands in more than
25 countries. The product range of the TAKKT subsidiaries comprises some
160,000 items for the areas of business and warehouse equipment, classic and
design-oriented office furniture and accessories, and supplies for retailers,
the food service industry and the hotel market.

TAKKT Group employs some 1,800 staff, has around three million customers
worldwide and distributes more than 55 million catalogues and mailings per year.

TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse's Prime
Standard on 01 January 2003.

Contacts:
Dr Felix A. Zimmermann, CEO
           Tel. +49 711 3465-8201
Dr Florian Funck, CFO
                        Tel. +49 711 3465-8207

Email: investor@takkt.de




IFRS figures for TAKKT Group to the end of Q3 2010
in EUR million

+-------------------+-------+-------+------+----------+----------+------+
|    |Q3 2010|Q3 2009|Δ in %|Q1-Q3 2010|Q1-Q3 2009|Δ in %|
+-------------------+-------+-------+------+----------+----------+------+
|TAKKT Group | 210.5| 186.6| 12.8| 587.3| 544.9| 7.8|
|turnover | | | | | | |
| | | | | | | |
|Organic growth |  |  | 6.5|  |  | 3.1|
| | | | | | | |
|  TAKKT EUROPE | 110.5| 100.2| 10.3| 332.9| 319.0| 4.4|
| | | | | | | |
|  TAKKT AMERICA (€)| 100.0| 86.4| 15.7| 254.5| 226.0| 12.6|
| | | | | | | |
|  TAKKT AMERICA ($)| 129.4| 122.4| 5.7| 333.8| 308.2| 8.3|
+-------------------+-------+-------+------+----------+----------+------+
|EBITDA | 24.1| 15.7| 53.5| 76.3| 55.2| 38.2|
| | | | | | | |
|EBITDA margin | 11.4| 8.4|  | 13.0| 10.1|  |
+-------------------+-------+-------+------+----------+----------+------+
|EBIT | 19.1| 10.5| 81.9| 61.4| 41.0| 49.8|
| | | | | | | |
|EBIT margin | 9.1| 5.6|  | 10.5| 7.5|  |
+-------------------+-------+-------+------+----------+----------+------+
|Profit before tax | 17.1| 8.4| 103.6| 54.7| 35.9| 52.4|
| | | | | | | |
|Pbt margin | 8.1| 4.5|  | 9.3| 6.6|  |
+-------------------+-------+-------+------+----------+----------+------+
|TAKKT cash flow | 16.7| 11.1| 50.5| 53.5| 40.7| 31.4|
| | | | | | | |
|Cash flow margin | 7.9| 5.9|  | 9.1| 7.5|  |
+-------------------+-------+-------+------+----------+----------+------+




The 2009 figures have been adjusted to the new segment structure for the sake of
comparability.



[HUG#1455894]



--- End of Message ---

Takkt AG
Neckartaltstr. 155 Stuttgart null


Listed: Regulierter Markt in Frankfurter Wertpapierbörse;


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