TAKKT AG grows by 2.9 percent in exchange rate adjusted terms

Earnings before tax up by more than 20 percent

TAKKT AG, the leading B2B mail order company in Europe and North America, has reported good figures for the first quarter of 2004. While turnover in euros was down 3.6 percent on the same period of the previous year to EUR 184.4 (191.2) million, it was up 2.9 percent in exchange rate adjusted terms.

Despite the persistently difficult economic environment, the TAKKT Group continued to improve its earnings position. The EBITA margin rose strongly from 11.0 to 12.2 percent. At EUR 15.8 (13.1) million, earnings before tax were up 20.6 percent on the previous year.

“In some European markets – especially in Germany – the weak economy continues to have an adverse impact on customers’ purchasing behaviour. This trend has been offset by the good performance of our other companies, though. Signs of a recovery are particularly strong in the USA,” said Georg Gayer, Chairman of the Management Board of TAKKT AG, commenting on the figures.

Further improved profitability
EBITA climbed 7.1 percent to EUR 22.5 (21.0) million. The EBITA margin clearly improved over the same period of the previous year, reaching 12.2 (11.0) percent. EBIT rose by 10.7 percent to EUR 18.6 (16.8) million, which represents an EBIT margin of 10.1 (8.8) percent. At EUR 16.2 (14.7) million cash flow has remained strong and clearly exceeded the previous year’s level.

High profitability at KAISER + KRAFT EUROPA
KAISER + KRAFT EUROPA increased its first-quarter turnover by a moderate 0.2 percent to EUR 98.3 (98.1) million. In exchange rate adjusted terms, turnover was up 1.5 percent. The individual markets have developed irregularly. Customers’ purchasing restraint was particularly evident in Sweden, Germany and the Netherlands, whereas the KAISER + KRAFT and KWESTO Eastern European companies showed a good performance. EBITA rose to EUR 17.5 (16.6) million. The increased EBITA margin of 17.8 (16.9) percent underpins the division’s high profitability.

Improved profitability at Topdeq
Topdeq reported a moderate 2.1 percent decline in first-quarter turnover to EUR 18.8 (19.2) million. On the basis of stable exchange rates, Topdeq’s turnover would have been up 0.5 percent. Due to the difficult economic situation, business in Germany and the Netherlands declined slightly. Against this background, the good growth rates achieved by the Topdeq companies in the USA and France were all the more pleasing. EBITA rose by EUR 0.8 million to EUR 0.3 (-0.5) million, benefiting from the rationalisation measures initiated and the capacity adjustments implemented in the previous quarters.

K + K America grows by 6.1 percent
The K + K America Group closed the first three months with an increased turnover. The US companies generated USD 84.1 (79.3) million, which represents a 6.1 percent increase over the same period of the previous year. Due to the depreciation of the dollar, turnover in euros was down from EUR 73.9 million to EUR 67.3 million, though. While Conney’s turnover fell short of the previous year, C&H Distributors and Hubert developed favourably. EBITA in US dollar rose by 20.3 percent from 6.9 million to 8.3 million. Converted into the reporting currency, EBITA amounted to EUR 6.6 (6.4) million.

Short profile of TAKKT AG
Represented in more than 20 countries, TAKKT AG is the number one B2B mail order group for office, business and warehouse equipment in Europe and North America. The Group employs about 1,900 people and has 2.5 million customers worldwide.

The company is listed in the SDAX and was admitted to Deutsche Boerse’s Prime Standard on 1 January 2003.

IFRS figures of TAKKT AG for the first quarter of 2004

Stuttgart, 29 April 2004

Contacts:

Georg Gayer
Phone +49 (0)711 3 46 58-201

Dr. Felix A. Zimmermann
Phone +49 (0)711 3 46 58-207