TAKKT launching operations in China

New companies in France and Austria are planning first catalogue mailing in 2006

TAKKT AG is continuing its expansion in 2006. The B2B business equipment mail order group mailed its first catalogue in China mid February. New companies in France and Austria will start to trade in May and September respectively.

“We are applying our successful business model in promising new markets“, explains Georg Gayer, CEO of TAKKT AG. “China holds great potential for us considering that the country recorded economic growth of almost ten percent last year alone and is one of the key investment target’s of our European and North American customers.” TAKKT’s division KAISER + KRAFT EUROPA is operating in Shanghai and mailed its first Chinese catalogue in mid February. Customers have responded exceedingly well especially when considering that B2B mail order was almost unheard of in China until now.

Two brands for France 
From May customers in France will be able to order products from the Gaerner catalogue for the first time. The KAISER + KRAFT EUROPA division has already been operating in France under the FRANKEL brand for 33 years. Both of the division’s brands will be competing. A two-brand strategy has already proven a success in Germany, Switzerland, Austria, the Netherlands and the UK. “Thanks to doubling our presence we are able to tap even more potential in France, the second largest economy in the Eurozone”, explains Georg Gayer. At the same time TAKKT can increase efficiency as both companies can fall back on the same central infrastructure.

Design experts in Austria  
As is the case in France, TAKKT also benefits from its market insight into Austria, where it has been in business for more than 20 years. When the Topdeq division launches operating business in September it can rely on established structures and proven service providers. Customers can visit a showroom in Vienna to look at designer furniture and accessories first hand, which are shipped from Germany. As a result Topdeq can increase capacity utilisation at its Pfungstadt mail order centre.

“We are very careful to keep risks under control in expansion“, explains CFO Dr Florian Funck. “We are able to do this in markets we are unfamiliar with, such as China, by gradually increasing the number of catalogues printed and the pages in each catalogue On the other hand we are expanding our business in familiar markets, such as Austria and France, and continue to build on our long-standing expertise."

Short profile of TAKKT AG
TAKKT AG is the leading B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group is represented in more than 25 countries with its brands. More than 100,000 products make up the product range of its subsidiaries and cover the following areas: business and warehouse equipment, traditional and design-oriented office furniture and accessories, occupational safety products, sales promotion articles for retailers as well as the food service and hotel market.

TAKKT AG employs about 2,000 members of staff, has more than 2 million customers worldwide and distributes more than 55 million catalogues and mailings every year.

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

Stuttgart, 14 March 2006

Contacts:

Georg Gayer, CEO
Phone +49 711 34658-201

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