DGAP-News: TAKKT AG / Key word(s): Preliminary Results/Final Results TAKKT shows significant and profitable growth in the 2014 financial year 19.02.2015 / 07:32 --------------------------------------------------------------------- TAKKT shows significant and profitable growth in the 2014 financial year - Consolidated turnover grows organically by 5.5 percent, reported consolidated turnover increases by 2.9 percent - EBITDA margin of 14.0 (previous year: 12.9) percent in upper range of target corridor of 12 to 15 percent - Earnings per share at EUR 1.00 (0.80) - TAKKT cash flow rises to EUR 98.7 (83.4) million Stuttgart, Germany, February 19, 2015. With different growth dynamics in the core markets of Europe and North America, TAKKT was able to increase consolidated turnover organically in the 2014 financial year (i.e., adjusted for currency effects and the phase-out process of the Topdeq companies) by 5.5 percent over the previous year. Reported consolidated turnover rose by 2.9 percent to EUR 980.4 million (previous year: 952.5). "We can look back on a successful financial year," concluded Felix Zimmermann, CEO of TAKKT AG. "In Europe, we have done well over the course of the year despite the slowing economic momentum. The business in North America exceeded our expectations. Our portfolio concept thus proved its worth once again." EBITDA margin in upper range of target corridor The gross profit margin in the year under review came to 42.6 (43.6) percent. This decline is partially attributable to the planned discontinuation of the high gross profit Topdeq business. With a margin of 14.0 (12.9) percent, EBITDA (earnings before interest, taxes, depreciation and amortization) rose to EUR 137.3 (122.8) million. Turnover and earnings for the Group are thus above the forecast, which was published early in 2014. It assumed organic growth of three to five percent and an EBITDA margin in the middle of the target corridor of 12 to 15 percent. Earnings per share increased to EUR 1.00 (0.80). The TAKKT cash flow (the result for the period plus depreciation and amortization, impairment of non-current assets and deferred taxes affecting profit and loss) amounted to EUR 98.7 (83.4) million. This corresponds to a cash flow margin of 10.1 (8.8) percent and a TAKKT cash flow per share of EUR 1.50 (1.27). CFO Claude Tomaszewski explains: "The cash flow of the TAKKT Groupʼs business remained at its usual high level in the year under review. Pending the approval of the Supervisory Board, as in the previous year the Management Board and Supervisory Board will jointly propose to the Shareholders' Meeting that a dividend of EUR 0.32 per share be paid out." TAKKT EUROPE: Positive development in both divisions In the year under review, organic turnover of the TAKKT EUROPE segment increased by 3.3 percent. Taking into consideration the planned discontinuation of the Topdeq business, the reported turnover for the segment however decreased by 1.1 percent to EUR 519.8 (525.4) million. The segment's share of consolidated turnover was 53.0 (55.1) percent. Both divisions within the segment contributed to organic turnover. The Business Equipment Group (BEG) realized an increase in turnover in the low single-digit percentage range, which is due to the growth in virtually all brands and regions, including the home market of Germany. In contrast, the countries of Western Europe fell below expectations. The Packaging Solutions Group (PSG) also performed well with an increase in turnover in the mid-single-digit percentage range. Some of the reasons for this were the intensified field activities in the German market as well as growth in Italy. The segmentʼs EBITDA margin rose to 19.1 (17.0) percent. Key reasons for the margin increase were negative one-off effects in 2013 and the discontinuation of the low-margin Topdeq business. TAKKT AMERICA: Good market environment, positive turnover growth In the TAKKT AMERICA segment, turnover in the year under review grew organically by 8.1 percent. Reported turnover increased by 7.8 percent to EUR 460.9 (427.5) million, whereby the segment's share of consolidated income increased to 47.0 (44.9) percent. The growth was spurred by the good economic situation in North America. A slight negative effect on turnover in the reporting currency of euros resulted from the exchange rate of the Canadian dollar. Of the divisions within the segment, the Office Equipment Group (OEG) performed especially well. One of the reasons for this was the recovery of the business with federal institutions, which allowed for organic growth in the low double-digit percentage range. The Specialties Group (SPG) also developed very positively and realized organic turnover growth in the high single-digit percentage range. The division also continued to benefit from the high growth dynamic of the Group company GPA. On the other hand, the Plant Equipment Group (PEG), which was sold as of January 30, 2015, recorded an organic decrease in turnover in the low single-digit percentage range due to the continued challenging market environment. The profitability of the segment developed positively with an increase in the EBITDA margin of TAKKT AMERICA to 10.3 (9.9) percent. Final quarter of 2014: Organic growth of 5.9 percent In the fourth quarter of the year under review, consolidated turnover increased organically by 5.9 percent and reported consolidated turnover grew by 6.4 percent to EUR 254.3 (239.1) million. In the TAKKT EUROPE segment, organic growth came to 2.5 percent while TAKKT AMERICA recorded a currency-adjusted increase of 10.3 percent. EBITDA for the Group amounted to EUR 32.1 (19.5) million in the final quarter of 2014 and the margin increased to 12.6 (8.1) percent. Most of the negative one-off effects of the previous year occurred in the last quarter; adjusted for these effects, profitability in the final quarter remained virtually unchanged. Outlook: Cautious start to the year in Europe, strong start in North America The early indicators of business performance that are relevant for TAKKT have been pointing to a weaker start to the year in Europe since mid-2014. Zimmermann explains: "For Europe, a cautious start to the 2015 financial year is likely. We expect increasing recovery during the course of the year. In contrast, the signs in the US indicate expansion from the beginning. For all of 2015, we expect improved GDP growth rates in Europe and especially in North America and an increase in order intakes. Based on this, we anticipate organic turnover growth again for 2015." TAKKT will give further details on the 2014 financial statements and assessment of future business development with publication of the annual report on March 20, 2015. Conference call A telephone conference with the Management Board will take place on February 19, 2015 at 3.00 p.m. (CET). If you would like to take part, please dial the following number: +49 69 201744-220 (access code: 779134#). Preliminary IFRS figures for the TAKKT Group for the 2014 financial year (in EUR million) Q4 Q4 FY FY 2014 2013 Change in % 2014 2013 Change in % TAKKT Group turnover 254.3 239.1 +6.4 980.4 952.5 +2.9 Organic growth +5.9 +5.5 TAKKT EUROPE 135.1 139.9 -3.4 519.8 525.4 -1.1 TAKKT AMERICA 119.3 99.4 +20.1 460.9 427.5 +7.8 EBITDA 32.1 19.5 64.7 137.3 122.8 11.9 EBITDA margin (%) 12.6 8.1 14.0 12.9 EBIT 25.2 12.4 102.5 110.8 95.8 15.6 EBIT margin (%) 9.9 5.2 11.3 10.1 Profit before tax 22.8 7.8 193.1 99.3 81.2 22.4 Pre-tax profit margin (%) 8.9 3.3 10.1 8.5 TAKKT cash flow 23.7 11.6 110.3 98.7 83.4 18.3 TAKKT cash flow margin (%) 9.3 4.9 10.1 8.8 About TAKKT AG TAKKT is the leading B2B direct marketing specialist for business equipment in Europe and North America. The Group is represented with its brands in more than 25 countries. The product range of the subsidiaries comprises more than 200,000 products for the areas of plant and warehouse equipment, office furniture, transport packaging, display articles, supplies for retailers, the food service industry and the hotel market. The TAKKT Group has over 2,000 employees and just under three million customers worldwide. The company is listed on the SDAX and the Deutsche Boerse Prime Standard. Contacts: Giuseppe Palmieri, Tel. +49 711 3465-8250 Dr. Christian Warns, Tel. +49 711 3465-8222 Email: [email protected] --------------------------------------------------------------------- 19.02.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: TAKKT AG Presselstr. 12 70191 Stuttgart Germany Phone: +49 (0)711 346 58 -0 Fax: +49 (0)711 346 58 - 10 E-mail: [email protected] Internet: www.takkt.de ISIN: DE0007446007 WKN: 744600 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Munich End of News DGAP News-Service --------------------------------------------------------------------- 324859 19.02.2015