Turnover and earnings set new records
Dividends increase by 67 percent
“In 2006, TAKKT again exceeded targets, showing strong and profitable growth,” said Georg Gayer, CEO of TAKKT AG, at the Group’s Annual General Meeting on 4 May 2007. The leading B2B mail order company for business equipment in Europe and North America saw turnover increase by 24.0 percent in the financial year 2006. At EUR 81.7 million, cash flow hit a record high. On the basis of these positive figures, the shareholders at the Annual General Meeting approved a 67 percent dividend increase.
This continued success was due to growth in the Group’s established and younger companies, as well as the purchase of the National Business Furniture Group, NBF for short, in January 2006. TAKKT expanded its market position last year and Gayer announced that in the future the Group would be continuing its proven strategy of organic growth combined with acquisitions.
Growing importance of electronic media
In 2006, TAKKT was again able to expand its customer base, while also continuing to increase the number of orders and average order value. The trend towards online business, evident in recent years, has continued. “In 2006, online turnover passed the EUR 100 million mark for the first time,” noted Gayer.
Record earnings
The successful 2006 financial year is reflected in various key figures. The 12.5 percent EBITDA margin again exceeded the long-term target of 10 to 12 percent. From 2007 onwards, TAKKT is raising the target corridor by one percentage point, to 11 to 13 percent. In 2006 the Group achieved record earnings of EUR 62.5 (previous year: 50.4) million. Cash flow also hit a new high with EUR 81.7 (65.5) million. As last year, the cash flow margin was 8.5 percent. Despite the NBF acquisition, the equity ratio improved to 47.7 (46.1) percent.
Higher dividends well received
At the Annual General Meeting (AGM), the Management and Supervisory Boards proposed increasing the dividend by 67 percent to 25 cents. This gives shareholders an appropriate return on the Group’s performance, while retaining enough capital for TAKKT to finance further growth. The shareholders approved this proposal.
Further expansion planned
During 2007, TAKKT plans to transfer its business model to promising new markets. Accordingly, KAISER + KRAFT will begin operations in Slovakia in May and TAKKT is preparing the start of the Hubert business in Europe. In addition, recent start-ups such as KAISER + KRAFT in China will be further expanded and strengthened in their markets. Gayer expects continued strong growth in Asia, Eastern Europe, and Central America in particular. Generally all divisions will continue to improve in terms of product range and service.
Extensive investments in logistics infrastructure
At the AGM, Gayer announced that the Group will be investing around EUR 50 million in expanding and optimising the logistics capacity during 2007. Most of this investment will go to the purchase and expansion of the mail order centre in Pfungstadt, which has been rented up until now, enabling it to function as the European logistics centre for business equipment.
Cautious optimism for 2007
TAKKT Management is cautiously optimistic for 2007. Cautiously, because the economic slowdown in the USA is likely to have a negative impact on business. Optimistic, because the good business climate in Europe will generate disproportionate turnover and earnings growth, and because the Group will continue to exploit to the full the potential of the B2B mail order business. Over the course of the year Group turnover is expected to grow by at least 4 percent in currency-adjusted terms. “Efficient cost management will enable TAKKT to achieve an EBITDA-margin in the upper half of the 11 to 13 percent target corridor,” predicted Gayer.
Election of new Supervisory Board
In accordance with the change in the Articles of Association in 2006, the Supervisory Board will now have just six members, instead of nine. At the AGM, the shareholders accepted the proposals made by the Supervisory Board and elected the following members: Dr Klaus Trützschler, Dr Eckhard Cordes, Michael Klein, Thomas Kniehl, Dr Dres h. c. Arnold Picot and Alexander von Witzleben. Mr von Witzleben is elected the first time to the Supervisory Board. He is currently CEO of JENOPTIK AG, but he will be joining the Management Board of TAKKT’s main shareholder Franz Haniel & Cie. GmbH in July 2007. Dr Schadt, Mr Flammer, Mr Kämmerer and Mr Matzke have retired from the TAKKT Supervisory Board.
Management and Supervisory Boards discharged
The shareholders agreed to the discharge of Management and Supervisory Boards, as well as to the other proposals presented by the Management and Supervisory Boards.
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 accessoires, occupational safety products, sales promotion items for retailers, the food service industry and the hotel market.
TAKKT AG employs over 2,000 staff, has about 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, 4 May 2007
Contact:
Georg Gayer, CEO
Phone +49 711.34658-201
Dr Florian Funck, CFO
Phone +49 711.34658-207