Decline in fourth-quarter consolidated turnover due to general economic situation

TAKKT AG asserted itself in a difficult environment in 2001

The Stuttgart-based TAKKT AG increased its turnover by 8 percent from EUR 762.8 million in the year 2000 to EUR 824.1 million in 2001, according to preliminary figures. The company suffered a decline in turnover in the fourth quarter 2001 due to economic conditions. Turnover dropped by 9.8 percent to EUR 196.9 million. Georg Gayer, chairman of the management board of TAKKT AG, said, "In addition to the continuing weak economy in the USA, the economic situation in Europe also became noticeably overcast. In light of this development, the TAKKT group asserted itself well in the year 2001." The EBITDA for the entire year decreased by 4.1 percent to EUR 84.0 (87.6) million. This allowed for an EBITDA margin of 10.2 percent, which is within the long-term target corridor of 10 to 12 percent. In the previous year, the EBITDA margin amounted to 11.5 percent.

Decline in fourth-quarter turnover due to general economic situation
In the fourth quarter 2001, the TAKKT group achieved a turnover of EUR 196.9 (218.2) million. Turnover declined by 9.8 percent compared to the same quarter in the previous year. The operating results, or EBITDA (earnings before interest, taxes, depreciation and amortisation), was down 17.5 percent in the quarter under review to EUR 32.1 (38.9) million. At 16.3 (17.8) percent, the EBITDA margin remained slightly under the excellent figure from the same quarter of 2000.

The trend towards recovery in the fourth quarter in the USA was delayed by the events of September 11. Overall economic development in Europe slowed noticeably. The TAKKT group was unable to avoid this economic development entirely. All divisions of TAKKT therefore showed a decline in turnover in the quarter under review:

The turnover of KAISER + KRAFT EUROPA, which was particularly strong in the fourth quarter of 2000 with 17.5 percent growth, decreased by 9.2 percent to EUR 92.1 (101.4) million. Topdeq's revenues were down 3.6 percent compared to the previous year. Although its growth is still negative, a reversal of this trend can be seen when compared to the first three quarters of 2001. The division achieved a turnover of EUR 23.9 (24.8) million. K + K America contributed EUR 81.0 (92.1) million to the turnover, a decline of 12.0 percent. Thanks to Hubert, which due to its focus on the service industry has a product portfolio that is relatively resistant to economic fluctuations, this division was able to compensate partially for the weak turnover of C&H Distributors. Calculated in dollars, the turnover of K + K America, including Hubert, decreased by 10.6 percent to USD 72.5 (81.1).

Product portfolio strategy proved successful
"Normally, economic developments move from the USA to Europe with a certain delay. In 2001, however, this 'time lag' was exceptionally short. This made it difficult for TAKKT AG to compensate for the downturn in the USA through its European business in the course of year, despite the group's international presence," said Gayer commenting on the preliminary figures for the entire year. However, Gayer explained that in the face of an extremely difficult economic environment, the group was still able to show solid business figures for the entire year thanks to its consistent adherence to its product portfolio strategy, its expanded service offers and the positive rate of growth in
e-business.

The slight decline in the EBITDA margin to 10.2 percent can be attributed primarily to the planned start-up losses for the newly established KAISER + KRAFT Portugal, KWESTO Poland and Topdeq USA, as well as the cost of mailing the first Hubert catalogues in Canada and KAISER + KRAFT catalogues in Ireland. At the same time, the economically determined decrease in the turnover of the established companies had a negative effect. "Cost-cutting measures, an increase in the gross profit and the first-time consolidation of Hubert could not completely compensate for these effects. However, because the interest charges and depreciation on the acquisition of Hubert in the year 2000 affect a full year for the first time, the EBIT and the earnings before taxes cannot be compared with the figures from the previous year," Dr. Felix A. Zimmermann, the board member for finance and controlling, said of the preliminary figures for the entire year.

TAKKT AG maintains course of growth
In the year 2002, emphasis will be placed on further strengthening the core competencies of TAKKT AG, without ruling out newly established companies or acquisitions in the course of the year. If the economic upswing in the USA and Europe which is forecasted by many economic experts does come to pass in the second half of 2002, the TAKKT group will once again achieve considerable growth in both turnover and earnings. Gayer said, "The first two quarters of this year will certainly be difficult, but we are looking to the second half-year with confidence. Our target growth for the entire year remains orientated on our long-term, average organic growth corridor with an increase of around 5 to 7 percent." TAKKT AG is also reiterating its goal of achieving a long-term EBITDA margin of 10 to 12 percent.

Further details on the annual financial statements will be announced at this year's financial statements press conference on 21 March 2002 in Stuttgart.

Short profile of TAKKT
Represented in 21 countries, TAKKT AG is the number one B-to-B mail order company for office, business and warehouse equipment in Europe and North America. The company was founded on March 1, 1999 and has been listed on the Frankfurt and Stuttgart stock exchanges since September 15, 1999. In connection with the first classic spin-off of a listed German company, TAKKT AG took over the former mail order business division of GEHE AG on July 1, 1999. The TAKKT share has been listed on the SDAX index since mid-2000.

Stuttgart, 14 February, 2002

Contacts:

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

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