TAKKT AG: Recovery tendencies noticeable in the fourth quarter

Full year 2003: Increased profitability; decline in turnover due to currency effects

According to preliminary figures, the turnover of TAKKT AG declined by 8.9 percent to EUR 713.9 (783.7) million in the past fiscal year. Adjusted for changes in exchange rates, the decline was only 1.0 percent. However, the company improved its profitability in 2003; while the EBITA margin rose from 9.6 to 9.8 percent, earnings before taxes rose 4.1 percent to EUR 40.6 (39.0) million. “In view of the difficult economic environment in the past year, we are satisfied with the results achieved. The recovery tendencies in the fourth quarter had a positive effect on the TAKKT group’s key figures,” said Georg Gayer, Chairman of the Management Board of TAKKT AG, commenting on the preliminary IFRS figures.

Further increase in profitability in the fourth quarter
In the fourth quarter of 2003, the TAKKT group generated EUR 181.8 (193.5) million in turnover. This represents a decline of 6.0 percent; in exchange rate adjusted terms, turnover would have been up by a moderate 1.3 percent. EBITA increased from the previous year’s EUR 18.7 million to EUR 19.8 million, while the EBITA margin rose from 9.7 to 10.9 percent.

The TAKKT divisions
KAISER + KRAFT EUROPA generated turnover of EUR 93.7 (93.9) million in the fourth quarter, which represents a moderate 0.2 percent decline. Topdeq increased its turnover by 2.7 percent, and contributed EUR 22.8 (22.2) million to total group turnover. In euro terms (the reporting currency), K + K America reported turnover of EUR 65.3 (77.4) million, down 15.6 percent on the fourth quarter of 2002. In US dollar terms, turnover, at USD 77.8 million, would have been up slightly on Q4 2002’s USD 77.6 million.

The TAKKT strategy again proved its worth in the past financial year. The effects of the weak economy were mitigated by the diversified customer and product portfolio. Active cost management also had a positive effect on group results. TAKKT’s earnings before taxes benefited from the anewed reduction in interest expense. At EUR 40.6 million, earnings were up on the previous year’s EUR 39.0 million, while the EBT margin rose to 5.7 (5.0) percent. TAKKT’s total cash flow amounted to EUR 50.4 (53.0) million.

“We even managed to increase the company’s profitability slightly in a difficult environment. This success was mainly due to the fact that we were quick to align our capacities with the anticipated course of business and that the stable, high cash flow allowed us to reduce liabilities,“ said Dr. Felix A. Zimmermann, Director of Controlling and Finance, with regard to the preliminary figures.

More details on the financial statements and an outlook on 2004 will be presented at the annual press conference in Stuttgart on 23 March, 2004.

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 product range of the TAKKT subsidiaries comprises some 100,000 business and warehouse equipment items, classical and design-oriented office furniture, occupational safety products as well as sales promotion items for retailers, the food service industry and the hotel market. 

TAKKT AG employs approximately 1,900 people, has over 2.7 million customers worldwide and distributes more than 50 million catalogues and mailings per year.

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

Preliminary IFRS figures of TAKKT AG 2003

Stuttgart, February 17, 2004

Contact:

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

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