Record figures for cash flow and profit

Dividend more than tripled

“Once again TAKKT has achieved substantial increase in its turnover and profit figures,” said Georg Gayer, CEO of TAKKT AG, at this year's Annual General Meeting in Ludwigsburg on 7 May. Group turnover grew in the year under review, 2007, to EUR 986.2 (2006: 958.5) million. This was an increase of 2.9 percent over 2006. Organic turnover growth, i.e. adjusted for the effects of exchange rates and the sale of the US company Conney Safety Products LLC (Conney), amounted to 9.2 percent. Cash flow reached a record level of EUR 101.2 (81.7) million. On account of the good earnings figures and the proceeds from the Conney sale, the Annual General Meeting approved a significant increase in the dividend from 25 to 80 cents per share.

In view of differing economic conditions worldwide, the pleasing business development was above all the outcome of the Group's successful diversification strategy. The consistent concentration on its core business with durable equipment also helped TAKKT to achieve its good results. Georg Gayer announced that further expansion would be achieved in roughly equal parts through acquisitions and organic growth. The Group will therefore resolutely pursue its multi-brand strategy concept and continue to expand its logistics infrastructure. TAKKT is also continuously optimising and extending its product range, catalogues and services.

Record levels for earnings figures
The EBITDA margin of 14.4 percent was above the management's existing target corridor of 11 to 13 percent. Profit for the period reached a new record level of EUR 79.3 million in the year under review compared to EUR 62.5 million in 2006. In percentage terms this represented a very good increase of 27 percent. At EUR 101.2 (81.7) million, cash flow reached a figure in the three-digit millions for the first time – another new record. The cash flow margin of 10.3 (8.5) percent was significantly higher than the previous year's figure. The equity ratio increased to 58.6 (47.7) percent.

All agenda items approved
The proposal to raise the ordinary dividend by 28 percent to 32 cents per share received an equally high level of approval at the Annual General Meeting as the payment of a special dividend of 48 cents per share arising from the flow of liquidity from the sale of Conney. The total dividend for 2007 thus amounts to 80 cents per share. Furthermore the Annual General Meeting again this year approved the discharge of the Management and Supervisory Boards as well as all other items on the agenda.

New company starts and concentration
In the year under review KAISER + KRAFT launched its branch in Slovakia. At the beginning of 2008 the KAISER + KRAFT EUROPA subsidiary Gaerner also started a new company in Spain. Both newcomers are profiting from sister companies that are already represented in the markets concerned. K + K America on the other hand concentrated further on its core business and divested Conney, which specialises in consumables in the fields of first aid and occupational safety.

E-business and logistics infrastructure: levers of success
In 2007 TAKKT had a turnover of EUR 130 million from online orders – i.e. a currency-adjusted increase of about 20 percent. A total of 13 percent of last year's overall turnover was generated online. “The subject of e-business is becoming more important for TAKKT year by year,” Gayer emphasised at the Annual General Meeting. For their electronic purchases, customers use the companies' internet sites as well as individual web shops and e-procurement solutions. Basis for fast and reliable delivery of goods, which customers have ordered, is an effective logistics infrastructure. Therefore Gayer also covered this subject in particular detail at the Annual General Meeting. TAKKT states that, in order to be able to continue its expansion, various extensions in the logistical field are required. Already in 2007, about EUR 36 million was invested in the expansion of warehouse capacities. One of the biggest investments in this area was the expansion of the warehouse in Pfungstadt into a European logistics centre for business equipment. Further projects will follow in 2008 and 2009, for example in Scandinavia and Eastern Europe.

Cautiously optimistic future outlook
For 2008 the TAKKT Management Board is cautiously optimistic because it cannot assume any positive economic stimuli in the regions relevant to the Group. The management is nevertheless confident that B2B mail order still possesses great potential to be tapped. For the financial year 2008, Gayer forecast organic growth in turnover of at least four percent. Earnings figures are also forecast to increase. TAKKT therefore anticipates an EBITDA margin in the upper third of its raised target corridor of 12 to 15 percent.

TAKKT AG – Supervisory Board ensures long-term Management
The Supervisory Board of TAKKT AG has in its meeting, immediately prior to the Annual General Meeting, deliberated upon the extension of contracts for Management Board members.

At the request of the Chairman of the Management Board, Georg Gayer (born 1946), whose existing contract runs until 28 February 2009, his contract is extended only until the end of the next but one Annual General Meeting in May 2010. In its meeting on 14 March 2008 the Supervisory Board had already appointed Dr Felix A. Zimmermann (born 1966) with effect from 1 May 2008 as Deputy Chairman with responsibility for the division K + K America. Thus at TAKKT all three divisions are individually represented by a member of the Management Board.

Furthermore the Supervisory Board has extended the contract of Franz Vogel (born 1948), COO KAISER + KRAFT EUROPA division, which was due for extension, until 28 February 2014.

Short profile of TAKKT
TAKKT is the leading B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group is represented with its brands in more than 25 countries. The product range of the TAKKT subsidiaries comprises over 130,000 items from the areas business and warehouse equipment, classical and design-oriented office furniture and accessories, as well as sales promotion items for retailers, the food service industry and the hotel market.

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

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

Stuttgart, 7 May 2008

Contact:

Georg Gayer, CEO
Phone +49 711 34658-201

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

E-mail: investor@takkt.de