Turnover up 1.4 percent, excluding currency effects

TAKKT shows strength in a weak environment

The Stuttgart-based B-to-B mail-order specialist for office, business and warehouse equipment reported a turnover increase by 1.4 percent in the first quarter of 2003, excluding currency effects. This means that the slight upward trend recorded since the third quarter of 2002 continued. Due to the weak US dollar, turnover reported in euros declined by 7.2 percent to EUR 191.2 (206.0) million. In spite of the continued weak overall environment, TAKKT AG’s profit margins improved again.

The continued improvement of the company’s profitability is also demonstrated by the profit after tax which rose by 15.9 percent to EUR 8.0 (6.9) million, reflecting an almost unchanged tax rate. “In view of the current economic problems in Germany and abroad as well as the continued weakness of the US dollar, this slightly positive development makes us moderately optimistic about the further course of the fiscal year, especially as far as the profitability of the TAKKT Group is concerned,” said Georg Gayer, Chairman of TAKKT AG’s Management Board.

Even stronger profitability
The stable high level of profitability already reached continued to improve in the first quarter of 2003. In the first three months of the year, the gross profit margin increased to 40.9 (40.6) percent.

First-quarter EBITDA remained almost unchanged at EUR 23.5 (23.7) million. At 12.3 percent, the EBITDA margin was up 0.8 percentage points on the first quarter of 2002. EBIT improved to EUR 16.8 (16.3) million, and the EBIT margin increased to 8.8 (7.9) percent.

Profit before tax rose from EUR 11.5 million in the first three months of the previous year to EUR 13.1 million. This is an increase of 13.9 percent. At EUR 14.7 (14.3) million, the cash flow reached the high level achieved in the first quarter of 2002.

According to TAKKT AG’s Finance Director, Dr. Felix A. Zimmermann, “consistent capacity adjustments initiated in the previous year, the sustained reduction of the company’s net financial debt as well as lower interest changes permitted another significant improvement of TAKKT AG’s profitability in the first three months of 2003”.

KAISER + KRAFT EUROPA remains the most profitable division
In spite of the difficult economic environment especially in Germany, KAISER + KRAFT EUROPA’s first-quarter turnover increased to EUR 98.1 (96.3) million, up 1.9 percent. The EBITA margin of 16.9 (16.0) percent reported for the first quarter of 2003 underlines the company’s extraordinarily high profitability. One reason for this comparatively stable development was the above-average performance of the companies in France, Poland and Spain, with the new companies established in recent years also contributing to the overall success.

Topdeq does not meet expectations just yet
The specialist for design-oriented office furniture and accessories had to cope with a decline in turnover of 9.0 percent to EUR 19.2 (21.1) million in the first three months of 2003. This fall was in particular attributable to the economic situation in Germany, Switzerland and the Netherlands. The EBITA margin decreased by 6.9 percentage points to -2.6 (4.3) percent. The continued favourable development of the newly established companies in the USA and France could not offset the decline in profits of the other companies.

K + K America achieves a slight increase in turnover
K + K America’s turnover rose to USD 79.3 (77.7) million in the first quarter of the current fiscal year. This is an increase of 2.1 percent. However, turnover reported in euros fell by 16.6 percent to EUR 73.9 (88.6) million as a result of the exchange rate change.

Key turnover contributions in the first quarter of 2003 were made by the US companies, Conney Safety Products and Hubert, as well as the Canadian subsidiary, Avenue Industrial Supply. The new Mexican company also started to show encouraging results.

K + K America – like KAISER + KRAFT EUROPA – improved its profitability, with the EBITA margin increasing to 8.7 (7.2) percent.

Short profile of TAKKT AG
TAKKT AG is the leading European and North-American B-to-B mail-order specialist for office, business and warehouse equipment. The Group meanwhile sells its products in over 20 countries. The TAKKT share has been listed at the Frankfurt and Stuttgart stock exchanges since September 15, 1999 and was admitted to the new Prime Standard segment of Deutsche Börse AG on January 1, 2003.

Stuttgart, April 29, 2003

Contacts:
Georg Gayer
Phone +49 (0)7 11 3 46 58-201
Dr. Felix A. Zimmermann 
Phone +49 (0)7 11 3 46 58-207