TAKKT starts successfully into 2007

Profitability continues to improve at high level

In the first three months of the year 2007 TAKKT Group overall returned very positive growth rates. The leading B2B mail order group for business equipment in Europe and North America increased its turnover by 2.8 percent to EUR 254.6 (previous year: 247.6) million in the period from January until the end of March. In currency-adjusted terms the increase amounts to 6.7 percent. EBITDA increased disproportionately by 7.5 percent to EUR 37.2 (34.6) million. Cash flow once again set a new record at EUR 25.2 (22.8) million.

“Thanks to its international presence TAKKT Group was able to more than compensate slowing turnover in North America as a result of the cooling economy with growth in Europe”, explains Georg Gayer, CEO of TAKKT AG. “The Group is again proving the success and sustained growth of the TAKKT business model. For the financial year 2007 the Management Board is generally expecting a solid increase in currency-adjusted turnover of at least four percent.”

EBITDA continues to increase
Earnings before interest, tax, depreciation and amortisation, EBITDA, increased disproportionately in the first three months from EUR 34.6 to 37.2 million, up 7.5 percent. The EBITDA margin increased accordingly to 14.6 (14.0) percent.

“The positive development in EBITDA can be mainly attributed to increased profitability of Topdeq and increased growth in our highly profitable division KAISER + KRAFT EUROPA”, explains Dr Florian Funck, CFO of TAKKT AG. “For the financial year 2007 we are expecting the EBITDA margin to be in the upper half of the target corridor, which we increased by one percentage point to the range between eleven to 13 percent.”

Interest expense was down slightly and profit before tax increased by 10.0 percent to EUR 30.8 (28.0) million. Cash flow set a new record at EUR 25.2 (22.8) million, an increase of 10.5 percent against the previous year. This is a margin of 9.9 (9.2) percent of Group turnover.

KAISER + KRAFT EUROPA continues on growth track 
In the first quarter the business of KAISER + KRAFT EUROPA has benefited from the sustained good economic cycle in Europe. Turnover in the largest TAKKT Group division increased by 14.7 percent to EUR 133.4 (116.3) million year on year. This positive development generally relates to a broad basis of companies in the different countries. The young companies of Gaerner in France and KAISER + KRAFT in China show a very favourable development as well.

EBITDA was considerably higher than in the previous year at EUR 28.4 (24.0) million. The EBITDA margin increased to 21.3 (20.6) percent as a result of higher capacity utilisation of mail order infrastructure and improved efficiency of catalogues and mailings.

Topdeq continues success in premium segment
Topdeq continued its good business development and improved its turnover by 5.2 percent to EUR 24.5 (23.3) million. In currency-adjusted terms turnover in the division increased by 7.3 percent in the first three months. This success can be mainly attributed to repositioning the division as a premium brand, which resulted in order values increasing clearly. In the first quarter the Dutch company in particular recorded very positive results. The development of the young company in Austria remains above expectations.

Topdeq’s earnings continued to develop positively: EBITDA increased disproportionately by 50.0 percent to EUR 2.4 (1.6) million. The EBITDA margin was 9.8 (6.9) percent. Improved purchasing terms and higher capacity utilisation contributed to this good result.  

Reductions at K + K America due to economy cooling
K + K America was exposed to the US economy losing momentum: turnover decreased by 2.4 percent to USD 126.7 (129.8) million in the first quarter of 2007. In the reporting currency of Euro this amounts to a decrease of 10.5 percent.  

As in 2006, the development of individual companies continues to be mixed: C&H in the USA and Avenue in Canada, which mainly supply customers from the manufacturing segment, saw turnover decrease. In contrast companies such as Hubert and National Business Furniture, which are closer to the service sector, recorded slight increases.

EBITDA declined to EUR 8.5 (11.3) million with the EBITDA margin falling from 10.5 to 8.8 percent. This is due to lower capacity utilisation, slightly reduced efficiency of catalogues and mailings as well as additional expense for rolling-out the new IT platform.

Conference call
We would like to invite you to put questions personally to our Management Board. A telephone conference is arranged for 26 April 2007 at 3:00 pm (CEST) in which we will be delighted to answer your questions. Please dial in on +49 30 20223191.

IFRS figures of TAKKT AG for QI 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 and accessories, 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, 26 April 2007

Contact:

Georg Gayer, CEO
Phone +49 711 34658-201

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

E-mail: investor@takkt.de