Significant earnings increase in the third quarter

TAKKT AG continues to demonstrate strong profitability

The B-to-B mail-order company for office, business and warehouse equipment, which has over 2.4 million corporate customers worldwide, reported an all in all good third quarter, which will have a positive effect on the results for the full year. Adjusted for currency fluctuations, third-quarter turnover of TAKKT AG was up 0.6 percent on the same period of the previous year.

The economic tendency to recover, observed since the beginning of the year, continued. Turnover in the third quarter amounted to EUR 191.1 million (after EUR 198.5 million in the same period of the previous year), which means a decline of around 3.7 percent. Adjusted for currency fluctuations, turnover increased by a slight 0.6 percent, reflecting the economic recovery in the USA. All in all, European turnover reached the previous year's level. However, the negative trend in Germany continued.

Turnover in the first nine months of 2002 was characterised by the economic environment as well as by changes of the EUR/USD exchange rate. Total turnover amounted to EUR 590.2 million, after EUR 627.2 million in the first nine months of the previous year, which represents a decline of 5.9 percent.

TAKKT Group remains profitable
The earnings position of the TAKKT Group remains strong and stable. In the first nine months of 2002, the gross profit margin increased to 40.0 (39.4) percent. EBITDA amounted to EUR 64.4 (67.1) million in the period from January to September. This demonstrates the effectiveness of the measures launched in the first quarter to align the cost structures with the business trend.

EBIT fell by only 6.1 percent to EUR 42.9 (45.7) million, meaning that the decline in EBIT slowed down considerably compared to the first half of the year where there was a slowdown of 17.3 percent.

Profit before tax improved by 2.4 percent to EUR 29.2 (28.5) million in the first nine months of 2002. This was attributable to the EUR 3.5 million decline in interest expenses which resulted, on the one hand, from the low interest rates in the Euro-zone and, on the other hand, from the significant reduction of total liabilities enabled by the strong cash flow. Cash flow was up 3.5 percent to EUR 38.2 (36.9) million in the first nine months of the year. With EBITDA up 14.3 percent and EBIT up 26.7 percent on the same period of the previous year, the good third quarter made a particularly strong contribution to the overall development.

KAISER + KRAFT EUROPA remains profitable
In line with the expected economic environment, KAISER + KRAFT EUROPA's turnover declined by 6.2 percent to EUR 273.2 (291.3) million in the first nine months of 2002, accounting for an almost unchanged 46.3 percent of total Group sales. At EUR 89.3 million, KAISER + KRAFT EUROPA's third-quarter turnover reached the previous year's level (EUR 89.2 million). The already high EBITDA margin improved slightly to 16.3 (15.6) percent.

Topdeq very strong in the USA
Topdeq's turnover declined by 3.2 percent to EUR 57.1 (59.0) million in the first nine months of 2002 and thus accounted for 9.7 percent of total Group sales. The EBITDA margin improved to 0.7 percent, especially thanks to reduced start-up costs for new companies.

With repeat orders and the acquisition of new customers in the USA continuing to develop favourably, the US business once again exceeded the company's expectations. Business in France also developed favourably all in all. The disappointing performance of the German and Swiss companies, which was due to the effects of the weak economy, however, could not be fully offset.

The expansion of the central warehouse in Pfungstadt was successfully completed with the start of operations in the third quarter of the year. Its capital expenditure remained clearly below budget. Topdeq is now well positioned for further expansion plans.

Hubert again reports a good response
As at 30 September 2002, K + K America's turnover declined by 6.1 percent to EUR 259.9 (276.9) million. In US dollar terms, turnover declined by only 3.0 percent to USD 240.4 (248.0) million. The economic tendency to recover which emerged in the second quarter was confirmed. On a USD basis, third-quarter turnover was in fact up 2.6 percent on the same quarter of the previous year. K + K America's turnover accounted for 44.0 percent of total Group sales.

Hubert made a particularly strong contribution to this favourable development. The mail-order specialist for supplies and equipment for food service retailers, restaurants and the hotel industry again reported a good response to its catalogue.

High earning power while turnover remains stable in the fourth quarter
Turnover in the fourth quarter of 2002 is expected to remain stable compared to the same period of the previous year; this assumes that the exchange rates, especially against the US dollar, remain at the current level. For the full year 2002, the previous year's turnover will therefore not be reached given that the economy, especially in Europe, has failed to recover. "Thanks to its B-to-B mail-order business model, the TAKKT Group will nevertheless remain highly profitable even in a weak economic environment. The high profitability and strong cash flow will achieve the previous year's level at least," said Georg Gayer, Board Chairman of TAKKT AG.

Stuttgart, 7 November, 2002

Contacts:

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

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