DGAP-News: TAKKT AG: TAKKT increases key earnings figures disproportionately - Organic turnover growth of 6.4 percent

31.07.2008

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement.

Stuttgart, 31 July 2008. Against a background of uneven international economic conditions, TAKKT AG performed well in the first half of 2008. Due to the weak US dollar and the sale of Conney Safety Products LLC (Conney) on 30 September 2007, turnover declined by 3.5 percent in comparison to the previous year from EUR 490.2 to 473.2 million. However, adjusting for Conney and currency effects, Group turnover grew by 6.4 percent. The Group again improved its key earnings figures. Cash flow, at EUR 51.9 (previous year: 46.0) million, reached a new half year record.

'The development in the first six months underlines once more the strength of the TAKKT business model,' said Georg Gayer, CEO of TAKKT AG. 'On this basis we confirm our target of increasing our turnover organically by at least four percent in 2008.'

EBITDA continues upward trend Earnings before interest, tax, depreciation and amortisation (EBITDA) rose disproportionately in the first six months of the year by 6.9 percent to EUR 71.6 (67.0) million. The EBITDA margin thus reached a figure of 15.1 (13.7) percent. Even excluding the positive structural effect of the sale of the lower-margin subsidiary Conney, the EBITDA margin would have risen by 1.1 percentage points.

'Two factors are primarily responsible for the positive development of the EBITDA margin: improved gross profit margins in all divisions as well as the higher capacity utilisation of the mail order infrastructure in Europe,' said Dr Florian Funck, CFO of TAKKT AG. 'For the financial year 2008 we anticipate an EBITDA margin at the upper end of the target corridor, which has only just been raised to 12 to 15 percent.'

KAISER + KRAFT EUROPA maintains growth As in previous quarters, the KAISER + KRAFT EUROPA division remains the strongest growth and profitability driver in the TAKKT Group. Turnover in the first half of 2008 rose to EUR 283.2 (255.2) million - representing an increase of 11.0 percent. Growth was based on both an increase in the number of orders and a higher average order value. Especially gratifying was the development of the companies in Asia, Eastern and Central Europe as well as Portugal, Denmark and Finland.

The division's EBITDA grew from EUR 51.9 to 60.4 million. This was 16.4 percent more than in the same period of last year. The EBITDA margin reached a figure of 21.3 (20.3) percent. The substantial increase was made possible by further improvements in trade margins and higher capacity utilisation of the mail order platform.

Topdeq raises profitability despite difficult market situation In the first six months of the financial year, Topdeq suffered from the increasingly uncertain development of the economy and recorded a decline in turnover of 5.6 percent to EUR 42.4 (44.9) million. In currency-adjusted terms this corresponded to a fall of 3.6 percent. However, the young companies in Austria and Belgium showed substantial growth against the trend.

Unaffected by the turnover development, the division increased its profitability. EBITDA rose by 10.3 percent from EUR 2.9 to 3.2 million. Accordingly the EBITDA margin improved by 1.0 percentage points to 7.5 (6.5) percent. The main reason for this increase is the further improvement in the gross profit margin. In addition, since the second quarter of 2008 higher operating costs for the expanded mail order centre in Pfungstadt have been matched by corresponding income.

K + K America optimises processes and expands into Europe Turnover at K + K America fell by 10.6 percent to USD 226.2 (253.0) million, purely as a result of the Conney sale. Adjusted for Conney the division grew on US dollar basis by a gratifying 2.7 percent despite the difficult market situation in North America. This is mainly thanks to the broad diversification of the division. Translated into euros, turnover amounted to EUR 147.9 (190.4) million.

Due to currency effects and the Conney divestment the EBITDA fell to EUR 13.2 (16.5) million. But the EBITDA margin rose to 8.9 (8.7) percent despite the start-up losses of the Hubert company in Germany. This was accounted for by structural improvements from the Conney sale and process optimisation measures, especially in the Plant Equipment Group. In addition the expansion of the K + K America subsidiary Hubert into Europe was launched in May with the despatch of the first catalogue in Germany. Turnover in the first months has significantly exceeded expectations.

Two awards for investor relations work For the fourth time in succession, TAKKT was placed in the top 3 in the SDAX segment of the renowned investor relations award from the business magazine Capital. In 2008 for the first time the Group also achieved third place in the SDAX segment of the German Investor Relations Award as presented by Thomson Reuters Extel Surveys, the business magazine WirtschaftsWoche, and the German Investor Relations Association (DIRK). Both these successes once again confirm the excellent and consistent investor relations work undertaken at TAKKT AG.

Telephone conference We invite you to put your questions to our Management Board in person. For this purpose we are arranging a telephone conference on 31 July 2008 at 15:00 hrs (CEST) in which we will answer your questions. Please dial telephone number +49 30 20 22 31 91.

Short profile of TAKKT AG 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.

The 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.

For a detailed overview of the key figures please go to http://www.takkt.de/en/press/takkt_press2008_1546.html

Contacts: Georg Gayer, CEO Tel. +49 711.3 46 58-201

Dr Florian Funck, CFO Tel. +49 711.3 46 58-207

E-Mail: investor@takkt.de

31.07.2008 Financial News transmitted by DGAP

Language: English
Issuer: TAKKT AG
Presselstr. 12
70191 Stuttgart
Deutschland
Phone: +49 (0)711 346 58 -0
Fax: +49 (0)711 346 58 - 10
E-mail: investor@takkt.de
Internet: www.takkt.de
ISIN: DE0007446007
WKN: 744600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, München

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