Clear increase in first-half turnover and earnings

TAKKT AG continues on growth path

TAKKT AG has presented favourable figures for the first half of 2005. The leading B2B mail order company for business equipment in Europe and North America generated EUR 377.5 (H1 2004: 358.4) million in turnover, which represents a 5.3 percent increase. In currency-adjusted terms, turnover was up by as much as 6.8 percent. Earnings figures also increased noticeably, with earnings before interest, tax and amortisation (EBITA) up 11.9 percent to EUR 45.0 (40.2) million.

“The positive performance in recent months shows once again that TAKKT’s global activities are well positioned both strategically and operationally,” TAKKT's CEO Georg Gayer commented on the latest figures. “Against the background of the good development in the first six months, the management now expects that we will achieve currency-adjusted turnover growth of at least four percent for the full financial year.”

Over-proportional increase in operating result (EBITA)
Earnings before interest, tax and amortisation (EBITA) rose by 11.9 percent to EUR 45.0 (40.2) million. Accordingly, the EBITA margin climbed to 11.9 (11.2) percent. The good results are not least due to the fact that TAKKT has again increased its gross profit margin. Also, the group has further optimised its processes and achieved better capacity utilisation.

The adoption of IFRS 3 with effect from 1 January 2005 means that, contrary to the previous year, there is no amortisation of goodwill. Accordingly, profit before tax rose significantly by 49.4 percent to 39.9 (26.7) million. Cash flow - defined as net income before minority interest plus depreciation and deferred taxes - reached EUR 33.2 (30.4) million.

“We are confident that, despite the expenses incurred for several new business start-ups, the full-year EBITA margin will be at the upper end of our long-term target corridor of 9 to 11 percent,” said CFO Dr Florian Funck.

KAISER + KRAFT EUROPA reports excellent earnings
Despite unfavourable economic conditions, KAISER + KRAFT EUROPA again increased its turnover by 6.5 percent to EUR 198.7 (186.5) million. Based on stable exchange rates, the division would have grown by 6.2 percent. The subsidiaries in Japan, the Slovak Republic, France, Austria, Belgium, Scandinavia and Switzerland developed very positively. The new company in Turkey started as planned by mailing its first catalogue in May.

The earnings position of KAISER + KRAFT EUROPA continues to remain very favourable, with EBITA rising 10.0 percent to EUR 34.1 (31.0) million. This reflects an EBITA margin of 17.2 (16.6) percent.

Double-digit turnover growth at Topdeq
The Topdeq division developed very positively in the first six months of 2005. Turnover was up 13.8 percent to EUR 39.6 (34.8) million. Adjusted for exchange rate effects, turnover would have grown by as much as 14.9 percent. The situation remains particularly favourable in the USA and France, with Germany and Switzerland also showing positive growth. The new subsidiary in Belgium started operations by mailing its first catalogue in May 2005.

The profitability of the Topdeq group improved despite the start-up costs in Belgium. The division generated EUR 0.4 (-0.8) million in EBITA; the EBITA margin reached 1.0 (-2.3) percent.

K + K America boosts profitability
The companies of the K + K America division increased their turnover by 6.2 percent to USD 178.6 (168.1) million. Translated into euros, the division’s turnover amounted to EUR 139.2 (137.1) million, which still represents an increase by 1.5 percent. The start of the new Hubert company in Canada went according to plan. Since July, the company has assumed all sales and marketing responsibilities for the Canadian market previously performed by Hubert USA.

K + K America also boosted its profitability. EBITA improved from EUR 13.7 to 14.8 million. Accordingly, the EBITA margin climbed to 10.6 (10.0) percent.

Award for active investor relations
This year, TAKKT was ranked third in the SDAX segment in “Capital” magazine’s renowned Investor Relations Award. This award confirms the success of the TAKKT strategy of informing shareholders, analysts and potential investors of the group’s current performance and future business outlook in a comprehensive and timely manner.

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

TAKKT AG employs approximately 1,900 staff, has more than 2.6 million customers worldwide and distributes more than 50 million catalogues and mailings each year.

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

IFRS figures of TAKKT AG for H1 2005

Stuttgart, 4 August 2005

Contacts:

Georg Gayer, CEO
Phone +49 711 34658-201

Dr Florian Funck, CFO
Phone +49 711 34658-207