More than 18 per cent growth in turnover in 1999

Continued strong growth for TAKKT AG

TAKKT AG of Stuttgart, Germany, the leading business-to-business mail order company for office, business and warehouse equipment in Europe and North America, has continued its uninterrupted growth in the 4th quarter of 1999. Compared with the previous year, turnover in the months October to December rose by 11.8 per cent from EUR 148.8 million to EUR 166.4 million. For the 1999 financial year, this represents a provisional increase in turnover by 18 per cent to over EUR 627 million. Adjusted for spin-off related costs, EBITDA in the past year also rose by 11 per cent to over EUR 72 million. "TAKKT AG has exceeded its target for 1999, we are very pleased with this result", as Dr. Felix A. Zimmermann, Managing Board Member for Finance, comments on the past financial year.

The new acquisitions from 1998 have had a major share in this growth. TAKKT took over the Scandinavian Gerdmans Group in May 1998 and Conney Safety Products, a company operating in the USA, in October 1998.

Increase in all business divisions
In the fourth quarter, the KAISER + KRAFT EUROPA Group achieved a growth in turnover by 3.5 per cent to EUR 86.2 million compared with EUR 83.3 million in 1998. The development of the Topdeq Group was also positive. In the last three months of 1999, turnover rose from EUR 19.7 million to EUR 22.2 million, up by 13.1 per cent compared with the same quarter in the previous year. K + K America increased its turnover in the last quarter by over 26 per cent from EUR 45.8 to 57.9 million. The high growth rate resulted mainly from the first consolidation of Conney Safety Products. On a US dollar basis, turnover in the fourth quarter grew by 16.2 per cent.

Geographically, the turnover of TAKKT in 1999 is distributed almost evenly between the following three regions: In Germany, the company achieved a turnover of just over EUR 199 million (31.6 per cent), turnover in the rest of Europe was about EUR 200 million (31.9 per cent) and EUR 228 million (36.5 per cent) in North America.

The key figure EBITDA, which represents the business operations of TAKKT AG (unaffected by taxes, financing methods and investment activities), decreased by 4.3 per cent from EUR 26.2 to 25.1 million in the fourth quarter of 1999, after adjustment for spin-off related costs. This was due to higher advertising costs for the acquisition of new customers, start-up costs for the newly founded Topdeq France and the fact that, as expected, Conney Safety Products did not yet make any contribution to profits. However, over the whole 1999 financial year, EBITDA, again adjusted for spin-off related costs, rose by 11 per cent from EUR 65.2 million to over EUR 72 million.

Balanced product portfolio
Managing Board Chairman, Georg Gayer, explained the positive development as follows: "We have exceeded our turnover target of DM 1.2 billion (EUR 613.5 million) by DM 27 million (EUR 14.2 million). Against the background of the general economic climate, which is difficult in some areas, this is an excellent result for us. It has become apparent that our strategy of operating with a balanced product portfolio in various regions is right. Even in economically difficult times, we are largely resistant to risks caused by a general economic volatility."

Further details on the annual financial statement will be announced at the financial statements press conference on 14th April in Stuttgart.

Stuttgart, February 7, 2000

Contact:
Georg Gayer
Tel. +49 (0)711 5001-239
Dr. Felix A. Zimmermann
Tel. +49 (0)711 5001-861