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Corporate strategy

TAKKT’s goal is to be a leading global B2B direct marketing specialist for business equipment. To accomplish this, specialized companies with different strengths are combined in a profitable and growth-oriented portfolio with a diversified risk profile. Most of the Group companies focus on the marketing and sales channels of print, online, telesales and field activities as part of a multi-channel approach.

Further information can also be found in the most recent annual report.

A key strategic issue for TAKKT in further development of the business model is digitalization. In addition, TAKKT wants to develop its position as a role model for sustainability by the end of 2020. The strategic objectives of the TAKKT Group are presented in the following overview.

 

 

Strategic goals

Grow profitably

  • Long-term organic sales growth by an average of four to five percent per year
  • Growth through opportunistic acquisitions (average of around five percent per year)
  • EBITDA margin of between 12 and 15 percent
Digitalize the business model
  • Implementation of the digital transformation
  • Double e-commerce business from around EUR 450 million (2016) to EUR 900 million (2020)
Diversify risk
  • Significant contributions to sales on at least two continents
  • Diversified share of sales with the manufacturing, trade and service sector industries as well as government institutions
  • Balanced product range
Act sustainably
  • Industry role model for sustainability
  • Sustainability as “built-in” rather than an “add-on” in day-to-day corporate management

 

TAKKT pursues a strategy of profitable growth. TAKKT aims for average organic growth of around four to five percent. In addition, opportunistic acquisitions are a significant part of the growth strategy (average of around five percent per year). In terms of profitability, TAKKT’s aim is to achieve an EBITDA margin of between 12 and 15 percent.

A large part of the market for durable equipment is still covered by local retailers. As a pure distance seller, TAKKT benefits from the trend of increasingly ordering goods via the more efficient method of distance selling. This allows TAKKT to gradually acquire market share from local retailers, putting it in a position to achieve stronger organic growth than the market.

In addition to organic growth, TAKKT also wants to grow through acquisitions. Potential takeover candidates are broken down into three areas: Smaller companies with strong profitable growth that generate sales in the low double-digit million euro range provide an opportunity to expand existing activities on the regional level as well as through an adjacent business model. Medium-sized, market-leading companies with sales of up to EUR 100 million as platform acquisitions serve as the starting point for further organic growth or additional strategic purchases. Larger companies are also still a possibility; however, the likelihood of this is very low.

TAKKT added a new element to its acquisition strategy with the creation of the investment company TAKKT Beteiligungsgesellschaft mbH (TBG) at the beginning of 2016. TBG aims to function as a smart investor for strategic investments in young companies with strong potential for growth. The company will specifically focus on B2B direct marketing specialists or service providers working along the value chain of TAKKT companies. Minority interests will be considered primarily. The focus will be on newly established companies that are already active on the market and looking for external partners to finance their growth initiatives.

In 2017, the next phase for further development of the business model was ushered in with the start of the digital transformation initiative. This is in line with the observation that both the behavior of the customer as well as the workplace change quickly in times of rapid technological change, which opens up new opportunities. TAKKT sees its business model of B2B direct marketing as ideal for benefiting from the growth of digitalization and gaining market shares. This is why the digital transformation in the company is being accelerated and taking absolute priority in all decision making.

For TAKKT, there are three key activities for a successful digital transformation: digitalization of the entire value chain, establishing more agile corporate structures and developing innovative business models. A Vision 2020 was formulated in 2016 for the implementation of the digital transformation in the company, and a digital agenda that includes more than 100 measures was developed across all divisions.

 

 

 

 

 

TAKKT strives to further diversify the risks of the Group and become more independent of economic influences. With customer groups, product ranges and regions, three levels are taken into consideration here.

 

 

 

 

 

At the end of 2016, we met an important interim objective: TAKKT is the role model for sustainability in the industry. We were able to achieve this by making sustainability an integral part of every area of our company and making progress in all focus areas. TAKKT’s single-tier direct marketing model generally offers clear advantages over trading systems with local stores. Shipping routes are optimized and emissions minimized due to the elimination of additional transportation steps. At the same time, since 2011 we have been working continuously to reduce the use of resources at all stages of value creation and be as environmentally friendly as possible. 

We see the possibilities of the growing digitalization as a clear opportunity to make processes even faster and more efficient. For example, systematic expansion of the e-commerce business has allowed us to increase the efficiency of customer-oriented marketing and save on resources at the same time by reducing paper use. We are of the firm conviction that long-term business success is not possible without sustainable action. We will continue to maintain the course we have adopted to see sustainability as an integral part of our company strategy. Our goal is to create a long-term balance between economic, environmental and social concerns in order to optimize the benefits for all stakeholders.  

Additional information on sustainability at TAKKT can be found here.