Turnover increase of 21.5 percent

Expansion continued successfully in 2000

For the financial year 2000, the TAKKT group, market leader in business-to-business mail-order sales for office, business and warehouse equipment in Europe and North America, again achieved record figures in turnover and profits. "A strong organic growth, successful new start-ups and the acquisition of Hubert in the United States support this development and at the same time form the foundation for achieving persistent growth again for the financial year 2001", noted Georg Gayer, chairman of the management board, at this year's financial statements press conference in Stuttgart.

Turnover and profit have shown strong growth
TAKKT further continued its growth course in the financial year 2000 with an increase in turnover of 21.5 percent. The group brought in EUR 762.8 (627.6) million in Europe and North America. Germany contributed 28.6 percent to the total turnover, the rest of Europe 30.9 percent and North America, including the new acquisition Hubert, 40.5 percent. The EBITDA (profit before taxes, interest, depreciation and amortisation) improved by 24.3 percent to EUR 87.6 (70.5) million. The operational EBITDA margin is tied to the good results from 1999 and has remained stable at 11.5 percent despite the new start-ups and investment in e-commerce. This does not include the capital expenditure of EUR 2.0 million for our IPO in 1999. Without taking these effects into account, the EBITDA margin rose from 11.2 to 11.5 percent.

Growth in all divisions
A look at the divisions shows that KAISER + KRAFT EUROPA, Topdeq and K + K America contributed equally to the success of the group. KAISER + KRAFT EUROPA achieved EUR 366.4 (326.5) million - an increase of 12.2 percent in comparison to the previous year. Topdeq increased by 19.2 percent and, with that, was the growth leader in the group. In absolute terms, Topdeq obtained EUR 87.1 (73.1) million. As a result of economic growth in the United States lasting until autumn 2000, turnover at K + K America climbed by 17.5 percent to 285.6 million dollars. Calculated in Euros, the increase even came to 35.6 percent due to the influence of the exchange rate. This corres-ponds to turnover of EUR 309.3 (228.0) million, including the acquisition of Hubert.

New companies started successfully
The expansion course was hastened with important start-ups, the acquisition in the United States and further investment in e-commerce. With KWESTO in Prague, a company that was founded to push ahead with market penetration first in the Czech republic, and, in the middle-term, in eastern Europe. The second start-up, Topdeq France, started at the beginning of the year 2000, has exceeded expectations set for it. At the beginning of 2001, Topdeq continued its expansion strategy by founding a company in New Jersey (USA). This is the first step of TAKKT's division Topdeq into the US market and is "in view of the market volume there an important step in our company strategy", explained Gayer.

Acquired the market leader with Hubert
In October 2000, TAKKT division K + K America acquired with Hubert the US market leader in B2B mail order business in the area of equipment and supplies for retail stores and the food service industry. With this, the division K + K America has a new product line that fits outstandingly in the replicable systems business of the group. Because K + K America has a high and stable cash flow, the purchase was financed entirely with loans in US dollars.

Internet activities expanded
The year 2000 was distinguished by the expansion in internet activities. TAKKT implemented a new interactive webpage for KAISER + KRAFT Germany as well as C&H Distributors (a company of K + K America). Beyond these web activities, KAISER + KRAFT EUROPA managed to establish their first large e-procurement systems, e.g. with the companies Wacker-Chemie, BASF Coatings, Siemens and Novartis.

Convincing financial figures
Despite diverse, future-oriented activities, as board member for finance and controlling Dr. Felix A. Zimmermann pointed out, "traditional returns and cash flow strength remained the hallmark of the group in the year 2000 as well." Annual profits after taxes rose by 5.2 percent compared to the previous year to EUR 33.6 (31.9) million - an excellent return in light of the new acquisition, the start-ups as well as spin-off related expenditures affecting profits. The earnings per share for the company, which was listed in the SDAX on 19 June 2000, were 46 cents, 2 cents higher than in 1999. Cash flow rose by 20.3 percent to EUR 55.1 (45.8) million. Capital investment amounted to EUR 168.9 million. Thanks to strong external and internal growth, new jobs were created in the group. At the year end, 1,931 (1,546) employees (full-time equivalents) worked for the group - 385 more than the year before.

Dividend
Because of the good results, and taking into account the need to strengthen the equity capital base for further company expansion by retaining profits, the company plans to distribute to shareholders a dividend of 10 cents per share for the past year. The dividend is provided with a tax credit of approx. four cents for domestic shareholders, which income is fully taxable according to German tax laws.

Solid balance sheet
Total assets increased from EUR 370.9 million to EUR 569.3 million. Fixed assets amounted to EUR 386.6 (273.3) million, current assets accounted for EUR 178.8 (130.5) million. Equity was increased from EUR 99.1 million to EUR 128.1 million. The equity ratio at the end of the year was 22.5 (26.7) percent. "This balance sheet structure leaves us enough space to finance the further growth out of our own cash flow", commented Dr. Zimmermann.

Outlook - TAKKT expands
Despite looming economic weaknesses in the United States, turnover, returns and cash flow will continue to grow in 2001 - not least because of this year's extensive investments, the start-ups KWESTO, Topdeq USA, Topdeq France, along with the acquisition of Hubert.

The quarterly figures will be published on 27 April 2001.

Stuttgart, 23. March 2001

Contacts:

Georg Gayer
Phone +49 (0)7 11.50 01-239

Dr. Felix A. Zimmermann
Phone +49 (0)7 11.50 01-861