TAKKT AGM: Continued expansion in Eastern Europe

Stock repurchase programme approved, cautious optimism for 2004

At the Annual General Meeting of TAKKT AG, Management Board Chairman Georg Gayer summarised the financial year 2003 in mostly positive terms. “Despite the weak economy, the company’s profitability has increased slightly, earnings before tax improving by 4.3 percent,” said Gayer. He announced TAKKT’s intention to further expand its market position, especially by expanding in Eastern Europe.

The Annual General Meeting approved the proposal of the Management and Supervisory Boards to pay an unchanged dividend of 10 cents per share. In addition, the shareholders approved a stock repurchase programme whose structure is basically identical to that of the programme adopted in 2003.

Market leadership consolidated
TAKKT consolidated its position as the leading international B2B mail order company for business equipment. As in previous years, 2003 saw subsidiaries of the Group start operations in strategically important markets; KAISER + KRAFT Japan and C&H Mexico mailed their first catalogues in January, followed by KWESTO Hungary in May. Moreover, the TAKKT Group added over 10,000 products to its range, while at the same time optimising its services and advertising materials. “In view of the weak economy, we are overall satisfied with the course of business,” said Gayer. “TAKKT’s growth and portfolio strategy has once again proven its worth in an adverse environment.”

Equity and cash flow remain at high level
The equity ratio reached an excellent 32.8 (27.7) percent, while total assets declined due to currency effects and the scheduled reduction of liabilities by 11.2 percent to EUR 479.9 (540.4) million. As in the previous years, TAKKT generated a high cash flow of EUR 50.6 (53.0) million. The free cash flow amounted to EUR 40.8 (44.4) million. “These excellent figures show that TAKKT is a very profitable company also under difficult market conditions. We expect to generate a high cash flow again this year,” said CFO Dr. Felix Zimmermann commenting on the figures.

Constant dividend
The Annual General Meeting resolved to pay out a dividend of 10 cents per share from TAKKT AG’s net profit for the year. This is equivalent to a total dividend amount of approx. EUR 7.3 million. The shareholders thus continued the proposal made by the Management and Supervisory Boards.

Shareholders approve stock repurchase programme
The stock repurchase programme entitles the Management Board of TAKKT AG to acquire its own shares up to 10 percent. This programme will enable the Management Board to make flexible use of shares to acquire companies. According to Gayer, this will clearly increase TAKKT’s strategic room for manoeuvre.

New business started in an EU accession country
The KAISER + KRAFT EUROPA Group will push ahead its regional expansion in Eastern Europe. According to an announcement made at the Annual General Meeting, the first catalogue will be mailed in Estonia before the end of May.

Cautious optimism for 2004
In the light of the stimulation provided by the US economy, the TAKKT Management Board remains carefully optimistic for the financial year 2004. No detailed turnover projection was made, however, given that the further development of the economy and the euro exchange rate is difficult to predict. “If the growth rates projected by economic researchers are actually achieved, we expect the TAKKT Group’s turnover to grow by approximately 3 percent in exchange rate adjusted terms,” said Gayer. “We will keep to our EBITA margin target of 9 to 11 percent.” The Group´s profitability is expected to remain stable at a high level.

Discharge given to the Management and Supervisory Boards
The Annual General Meeting gave discharge to the Management Board and the Supervisory Board. The shareholders also approved all other proposals made by the Management and Supervisory Boards.

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 2.5 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.

Stuttgart, 4 May 2004

Contacts:

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

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