TAKKT AG increases profit before tax by 36.7 percent

Growth of turnover in the first nine months

TAKKT AG reports positive results for the first nine months of 2004. The leading B2B mail order group for business equipment in Europe and North America increased its turnover by 0.9 percent from EUR 532.1 million to EUR 536.8 million. TAKKT would have achieved a growth rate of 5.1 percent with constant exchange rates. Earnings rose at an above average rate, with earnings before tax up 36.7 percent to EUR 38.0 (27.8) million.

This improvement is due to two factors. Order numbers were up noticeably on the previous year and the average order value increased in currency-adjusted terms.

“The course of business in the first nine months was overall satisfactory. We now expect a currency-adjusted growth of four to five percent. This clearly distinguishes TAKKT from other general mail order companies,” said Georg Gayer, CEO of TAKKT AG.

Continued increase in profitability
Earnings before interest, tax and amortisation (EBITA) climbed 15.2 percent to EUR 58.2 (50.5) million, so that the EBITA margin rose from 9.5 to 10.8 percent. At EUR 42.6 (36.6) million, cash flow was also clearly up on the previous year.

“The improved business situation has enabled TAKKT to increase its earnings and cash flow at an above average rate. The good results underpin impressively the strength of the TAKKT business model”, said CFO Dr Florian Funck commenting on the good results for the first nine months.

Good business at KAISER + KRAFT EUROPA
KAISER + KRAFT EUROPA increased its turnover for the first nine months by 4.4 percent to EUR 275.7 (264.2) million. Based on stable exchange rates, the increase would have been 4.6 percent. The subsidiaries in Eastern Europe, Norway, France, Switzerland and Japan reported particularly positive results. In Germany business was increasingly positive. KAISER + KRAFT EUROPA’s earnings position remains promising, with EBITA totalling EUR 44.2 (40.0) million. The EBITA margin rose to 16.0 (15.1) percent.

Topdeq: Positive growth in France, Switzerland and the USA
Turnover in the Topdeq division declined slightly by 0.2 percent to EUR 51.7 (51.8) million. Based on constant exchange rates, the turnover would have increased by 1.6 percent. The persistently weak demand for office furniture is apparent in Germany and particularly the Netherlands. The subsidiaries in France and Switzerland have developed favourably and reported good growth rates. The US subsidiary returned positive growth rates in the third quarter. The division generated earnings before interest, tax and amortisation (EBITA) of EUR -2.2 (-2.8) million.

K+K America: Turnover increased
The companies of the K+K America division generated a turnover of USD 256.5 (239.9) million in the first nine months of the year, which represents a 6.9 percent increase over the previous year. Translated into the reporting currency euro, however, turnover was down 3.1 percent to EUR 209.4 (216.1) million. Positive economic growth benefited C&H, C&H Mexico, Avenue and Hubert, in particular. K+K America’s EBITA margin reached 10.4 (8.7) percent. EBITA totalled USD 26.7 (20.8) million, equivalent to EUR 21.8 (18.7) million.

Short profile of TAKKT AG
Represented in more than 20 countries, TAKKT AG is the number one B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group employs approximately 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.

Figures of TAKKT AG according to IFRS for the first nine months 2004

Stuttgart, 4 November 2004

Contacts:

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

Dr Florian Funck, CFO
Phone +49 (0)711-3 46 58-207