TAKKT significantly increases turnover and profit in 2005

Strong Q4

TAKKT AG significantly improved its key figures in FY 2005. According to preliminary figures turnover was up by 6.3 percent against the previous year reaching EUR 773.2 (727.6) million. Currency adjusted the growth was 5.9 percent. The international B2B mail order group also improved its profitability: profit before tax was up by 52.8 percent reaching EUR 78.7 (51.5) million. All three divisions of the group contributed to this positive development.

“We have grown significantly stronger than the economies in which we are operating“, comments Georg Gayer, CEO of TAKKT. “This increase is all the more remarkable as we have achieved it despite the generally sluggish economic development.” The group’s success is reflected in its key figures. According to preliminary figures EBITA increased by 13.7 percent to EUR 88.9 (78.2) million, while the EBITA margin improved from 10.7 to 11.5 percent. “This puts us above our long-term target corridor between nine and eleven percent, in spite of budgeted expense for founding new companies on three continents”, explains TAKKT's CFO Dr Florian Funck. Cash flow also improved from EUR 60.5 to 65.5 million.

On track for growth also in Q4 
TAKKT closed the financial year 2005 with a strong fourth quarter. Turnover was up by 10.2 percent to EUR 210.3 (190.8) million. In currency-adjusted terms the increase was 6.5 percent. This success was driven by all three divisions. KAISER + KRAFT EUROPA generated a turnover of EUR 111.4 (103.8) million, which is an increase of 7.3 percent. Topdeq saw its top-line increase by 3.5 percent against the previous year reaching EUR 23.7 (22.9) million. K + K America recorded a turnover of USD 89.5 (83.3) million, an increase of 7.4 percent. In the reporting currency of euro turnover was up by 17.3 percent from EUR 64.1 to 75.2 million.

Profitability increased in all segments  
Profits and margins developed very positively in Q4 with profits picking up further momentum. Compared to the previous year's quarter EBITA increased by 24.0 percent to EUR 24.8 (20.0) million, with the margin up to 11.8 percent (10.5). Profit before tax was up by 65.2 percent reaching EUR 22.3 (13.5) million. The profit margin hit double digits with 10.6 percent.  
 
Optimised portfolio after acquisition 
At the beginning of January 2006 TAKKT took over the operations of National Business Furniture Group (NBF). NBF is the US market leader in B2B office furniture mail order and generates a turnover in excess of USD 120 million. Until now the division K + K America, which now owns NBF, was comparatively weakly positioned in this product segment. “Thanks to the acquisition we are now able to acquire more customers from the growing service sector”, outlines CEO Georg Gayer. “NBF is also an ideal growth platform for TAKKT in North America.” 

Financial statements press conference 
Further details about the financial statements and an outlook for 2006 will be published at the financial statements press conference on 23 March 2006 in Stuttgart.

Preliminary IFRS figures of the TAKKT group 2005

Stuttgart, 16 February 2006

Contacts:

Georg Gayer, CEO
Phone +49 711 34658-201

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