Interview with Dr Felix A. Zimmermann

on the crisis and the ensuing opportunties for TAKKT
(March 2010)

Question: Dr Zimmermann, how long will it take for TAKKT to recover completely from the global economic crisis?

It is difficult to give you an exact timing as it depends on how quickly the world economy recovers and on whether the recovery is sustainable. One thing is clear: We already did our homework during 2009 and showed how flexible we can be in adjusting our cost structures. This makes us confident that we are well positioned to tackle the challenges and opportunities of 2010. It will take some time to regain our pre-crisis level of 2008. However, we are committed to coming out of the crisis more quickly than our competitors.

Question: What lessons can be learned from the current crisis for TAKKT and for the TAKKT strategy?

The TAKKT business model is fundamentally intact. We have been able to keep the gross profit margin stable and we see no significant trends towards consolidation – neither on the supplier side nor on the customer side. The fact that TAKKT has coped so well with the crisis until now is not just due to the high flexibility of its business model and cost structures. Strict customer focus is also an important element of the TAKKT strategy. Particularly in times of crisis, when attention is frequently focused only on internal cost structures, it is important not to lose sight of this. The crisis has resulted in a significant decline in the number of orders received. We have adjusted our capacities in line with this and optimised our processes – so we are now ready for the economic recovery.

Question: The mail order industry had to learn its lesson at last after the exit of a well-known B2C mail order company – the internet punishes latecomers. How will you ensure that TAKKT always keeps up with the times and with changing consumer habits?

To attribute the exit of Quelle only to the internet is too simplistic. We see the internet more as an opportunity for TAKKT as it opens up additional sales channels using infrastructure that is already in place. Nevertheless, it is always important to keep up-to-date with changing market behaviour. We do this by means of regular customer surveys and detailed market analyses and we adjust the company strategy to the findings as required.

Question: What will be the crucial factors in the next few years that will determine the success or failure of B2B mail order?

Clear product focus, strict focus on customers and services, efficient central infrastructures, further internationalisation and e-commerce competence.

Question: TAKKT has experienced above-average growth over the last 25 years. What should shareholders be prepared for in the next 25 years?

TAKKT will stick to its business model: a clear focus on specialised B2B mail order for business equipment. However, I would like three types of business to have a higher share of Group turnover in 25 years: firstly our business with customers from the services sector, secondly our business in Asia and thirdly our e-commerce activities.