Annual General Meeting resolves to pay dividend of 10 cents

TAKKT will expand to Japan

In light of the difficult world-wide economic climate, the TAKKT group asserted itself well in financial year 2001, with an increase in turnover of 8 percent to EUR 824.1 million. The EBITDA sank as expected by 4.1 percent to EUR 84.0 million, primarily as a result of the planned start-up losses for newly established companies in 2001. However, at 10.2 percent, the EBITDA margin remained in the long-term target corridor of 10 to 12 percent. After a weak start to financial year 2002 due to the economic situation, the group expects positive development in the second half of the year in the course of an anticipated economic recovery. The chairman of the management board of TAKKT AG, Georg Gayer, announced at the annual general meeting that TAKKT also wants to break into the market in Asia. The KAISER + KRAFT EUROPA division plans to mail catalogues for business and warehouse equipment in Japan for the first time at the start of 2003. As in the previous year, the Annual General Meeting resolved to pay a dividend of 10 cents per share.

Market position strengthened in difficult environment
The TAKKT group, the leading B2B mail-order specialist for business, office and warehouse equipment in Europe and North America, was able to strengthen its market position in financial year 2001. The product portfolio strategy which the group has practised consistently for years, has continued to be advantageous. "Because the slump in the US economy affected Europe faster than usual, it became more and more difficult in the course of the year to counterbalance the slowdown in the US through European business," explained Georg Gayer, chairman of the management board, outlining the course of business in financial year 2001 at the Annual General Meeting. The solid business figures were not so much a result of the group's international presence, but rather its diversified product range and the acquisition of Hubert, both of which helped the group to cushion the effects of the weak phase in the world economy.

Strengthened equity and strong cash flow
The TAKKT group used its consolidated net income of EUR 18.9 (previous year: 33.6) million to strengthen its equity base in order to finance further growth. In total, the group applied EUR 10.8 (25.5) million to the general reserves, thereby increasing equity to EUR 139.5 (128.1) million at the balance sheet date. With total assets of EUR 544.6 (569.3) million, down slightly in comparison to 2000, the equity ratio improved to 25.6 (22.5) percent.
The TAKKT group has also maintained a strong cash flow of EUR 49.1 (55.1) million and a free cash flow of EUR 36.7 million. The company can therefore discharge its debts as planned and finance its desired future organic growth from earnings.

Dividend remains 10 cents per share
The Annual General Meeting accepted the proposal of the management board and the supervisory board to pay a dividend of 10 cents per no-par value share, or a total of EUR 7.3 million, from the retained earnings of TAKKT AG in the amount of EUR 13.5 million. In accordance with the resolution of the annual general meeting, the remaining EUR 6.2 million will be appropriated to the general reserves of TAKKT AG.

Expansion to Eastern Europe and Japan
In future, the TAKKT group will continue its strategy of consistently applying its systems approach to new regions. KAISER + KRAFT subsidiary KWESTO founded its third company after Poland and the Czech Republic in Slovakia and strengthened its market position in Eastern Europe. The first catalogues in national language will be mailed by the beginning of May.
After Europe and North America, where the company already has a nearly full-coverage presence in the area of business and warehouse equipment, the group now plans to expand to Asia. The initial centre of focus is Japan, which, according to intensive market analyses, has the best prerequisites and the greatest market potential for a promising B2B mail-order business. "We will accomplish this move towards Japan by our own efforts and using our own know-how, as we have already done with great success," said chairman of the management board Georg Gayer. "We will start off with a limited product range and will then extend gradually in line with market requirements. The risk will therefore remain calculable, and we will also be able to guarantee the necessary service from day one," explained Georg Gayer further. After two years' preparation, operations are scheduled to commence at the beginning of 2003.

Anticipated weak first quarter of 2002
The development in the fourth quarter of 2001 continued as expected in the first quarter of 2002. Europe, and particularly Germany, were in a poor economic condition. The turnover of KAISER + KRAFT EUROPA decreased accordingly by 11.5 percent compared to the first quarter of 2001. In the same period, Topdeq suffered a turnover decline of 2.6 percent. Unlike Topdeq Germany and Topdeq Switzerland, the French and American companies achieved good rates of growth. On a dollar basis, the turnover of K + K America dropped by 10.9 percent. However, signs are now pointing to a gradual upswing in the US economy, which will revive the North American business of TAKKT AG.

Growth in the second half of 2002
"For the north American region, the TAKKT group is anticipating a growth increase in the second half year. In Europe and especially in Germany, however, an economic recovery is expected in the third or fourth quarters," said Georg Gayer of the group's prospects. "The extent to which this boost will be able to counterbalance the economically determined weak start to the year depends on the intensity of the upswing." Regardless of this, the TAKKT group will increase its efficiency in financial year 2002 and, according to Georg Gayer, improve the earnings prospects of the entire group.

Actions of management and supervisory boards approved
The Annual General Meeting formally approved the actions of the management board and supervisory board. The shareholders also voted in line with the management board and supervisory board in all other areas.

Short profile of TAKKT
Active in 21 countries, TAKKT AG is the leading B2B mail-order specialist for office, business and warehouse equipment in Europe and North America. It was established on 1 March 1999 and has been listed on the Frankfurt and Stuttgart stock exchanges since 15 September 1999. In the context of the first classic spin-off of a listed German company, TAKKT AG took over the former mail-order division of GEHE AG on 1 July 1999. Since the middle of 2000, the TAKKT share has been listed in the SDAX.

The entire speech of Georg Gayer, chairman of the management board of TAKKT AG, being held on the third Annual General Meeting, is available on the internet in the section "Share/Annual General Meeting".

Stuttgart, 7 May, 2002

Contacts:

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

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