TAKKT shows sustained growth

Turnover and profitability forecasts raised

The first six months of 2007 were overall positive for the TAKKT Group. The leading B2B mail order group for business equipment in Europe and North America increased its Group turnover in the period from January to June to EUR 490.2 (previous year: 471.6) million, which represents an increase of 3.9 percent. In currency-adjusted terms the increase amounts to 7.5 percent. EBITDA climbed disproportionately by 15.5 percent to EUR 67.0 (58.0) million. The cash flow set a new record of EUR 46.0 (38.8) million.

According to Georg Gayer, CEO of TAKKT AG, "In spite of mixed economic trends in Europe and North America we have realised significant organic growth. This achievement further confirms our strategy of international diversification. In view of the favourable business development, management has raised the forecast for the growth in turnover for the whole of 2007 to around six percent."

Further improvement in EBITDA
EBITDA, the earnings before interest, tax, depreciation and amortisation, increased in the first six months to EUR 67.0 (58.0) million – an increase of 15.5 percent. The EBITDA margin rose accordingly, to 13.7 (12.3) percent. As Dr Florian Funck, CFO of TAKKT AG, explains, "The pleasing rise in profitability was fuelled by both an improved gross profit margin in all three divisions and higher utilisation of our mail order infrastructures in Europe. As regards to profitability, we are optimistic that the EBITDA margin will be at the upper end of the target corridor of 11 to 13 percent – despite the planned expenditure for new and young companies."

With reduced interest expense the profit before tax climbed clearly, by 20.9 percent, to EUR 54.4 (45.0) million. Thanks to further improved earnings figures, the cash flow reached a new record high of EUR 46.0 (38.8) million. Measured against the previous year it increased by 18.6 percent. The cash flow margin rose to 9.4 (8.2) percent of Group turnover.

Very favourable growth at KAISER + KRAFT EUROPA
In the first half-year, the KAISER + KRAFT EUROPA division continued to pursue the good development established during the past financial year and further strengthened its market position. The largest division of TAKKT AG increased its turnover substantially, by 16.3 percent, from EUR 219.5 to 255.2 million. The majority of the sales companies contributed to this strong growth. Last year's start-up companies, Gaerner in France and KAISER + KRAFT in China, continued to develop in an extremely positive way.

Compared with the first half-year 2006, the EBITDA climbed significantly again, by 26.0 percent, to EUR 51.9 (41.2) million. Bolstered by further improved capacity utilisation and advertising efficiency, the EBITDA margin reached a new half-year record of 20.3 (18.8) percent.

Topdeq continues profitable growth
The Topdeq division has expanded robustly again. Its turnover climbed to EUR 44.9 (41.7) million. This represents an increase of 7.7 percent, or 9.8 percent after adjustment for currency fluctuations. The companies in the Netherlands, Switzerland, Belgium and France showed particularly positive development. The young company in Austria continues to develop ahead of expectations. The positive effects of the repositioning undertaken in recent years are reflected most clearly in the operating result. The EBITDA increased by 81.2 percent, from EUR 1.6 to 2.9 million. The EBITDA margin rose accordingly from 3.8 to 6.5 percent.

Weakening economy affects K + K America
The faltering economy in North America exerted an effect on the development of K + K America. The decline in the number of orders and lower average order values pushed turnover down from USD 258.5 to 252.6 million. This corresponds to a decline of 2.3 percent. Expressed in the reporting currency of euros, turnover dropped by 9.6 percent.

As in preceding quarters, the business development varied at the individual companies. C&H in the USA and Avenue in Canada, which primarily serve the manufacturing sector, posted a decrease in turnover in the first two quarters of 2007. Hubert and National Business Furniture, on the other hand, whose customers operate largely in the service sector, recorded a growth in business.

EBITDA fell from EUR 20.1 to 16.5 million, and the margin to 8.7 (9.6) percent. The decrease is attributable principally to reduced capacity utilisation, a slight drop in advertising efficiency, and additional expense arising from the roll-out of a new IT platform.

Further award for investor relations work 
On 20 June the Group received an award for the third time running for its intensive, continuous and transparent investor relations work.  After two third places in 2005 and 2006, this year TAKKT came in first for the renowned investor relations award of the business magazine “Capital” in the SDAX segment. In the overall ratings of 194 German and European companies from EUROSTOXX 50, DAX, MDAX, TecDAX and SDAX, TAKKT was the only company whose investor relations work was rated by the jury with more than 450 points – corresponding to a score of “outstanding”. Thus TAKKT is setting new standards in respect of content, credibility, transparency and speed of its information.

Conference call
You are invited to put questions to our Management Board in person. At 3:00 pm CEST on 31 July 2007, we are hosting a Q&A telephone conference. You can log in to the conference on +49 30 20223191.

IFRS figures of the TAKKT Group at the end of H1 2007

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. The product range of the TAKKT subsidiaries comprises some 120,000 items from the areas business and warehouse equipment, classical and design-oriented office furniture, occupational safety products, sales promotion items for retailers, the food service industry and the hotel market.

TAKKT AG employs over 2,000 staff, has more than 3 million customers worldwide and distributes more than 70 million catalogues and mailings per year.

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

Stuttgart, 31 July 2007

Contact:

Georg Gayer, CEO
Phone +49 711 34658-201

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

E-mail: investor@takkt.de