Strong organic growth for TAKKT in the first half-year

• Organic sales growth of 7.8 percent, reported Group sales up by 9.5 percent
• Gross profit margin increased to 43.4 (42.9) percent
• EBITDA margin at 17.2 (15.5) percent, at 15.8 (14.8) percent when adjusted for one-time effects
• Earnings per share at EUR 0.80 (0.64)

Stuttgart, Germany, July 28, 2016. In the first half-year of 2016, TAKKT built on the success of the 2015 financial year. The Group grew organically by 7.8 percent (e.g., adjusted for currency, acquisition and divestment effects). Felix Zimmermann, CEO of TAKKT AG, elaborates, “As expected, American activities experienced robust growth. But we were also able to perform quite well in Europe in the second quarter.” Reported Group sales increased by 9.5 percent to EUR 554.2 (506.0) million in the first half-year of 2016. In the second quarter, TAKKT generated 10.6 percent higher Group sales of EUR 280.4 (253.6) million, while organic growth amounted to 9.9 percent.

The gross profit margin was slightly above the level of the previous year at 43.4 (42.9) percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to EUR 95.3 (78.4) million in the first half of 2016, and the EBITDA margin increased to 17.2 (15.5) percent. Positive one-time effects contributed to this figure in both periods. Adjusted for these effects, profitability was at 15.8 (14.8) percent. In the first six months, TAKKT achieved a very positive TAKKT cash flow (defined as the profit for the period plus depreciation and amortization, impairment of non-current assets and deferred taxes affecting profit and loss), amounting to EUR 69.1 (59.1) million.

TAKKT EUROPE: Uptick in growth in the second quarter
The organic sales of the TAKKT EUROPE segment increased by 6.0 percent in the first half-year, primarily due to a strong second quarter. Reported sales of EUR 285.7 (259.3) million were 10.2 percent higher than the previous year’s figure and benefited from the contribution of the BiGDUG company that was acquired in mid-2015. In the second quarter of 2016, organic sales growth for TAKKT EUROPE amounted to 10.9 percent. The Business Equipment Group (BEG) achieved slightly better organic growth than the segment in the first half-year, while growth in the Packaging Solutions Group (PSG) was slightly lower. EBITDA for the segment reached EUR 62.1 (50.0) million, while the margin increased to 21.7 (19.3) percent. Adjusted for one-time effects, the margin in the first half-year of 2016 came to 20.1 percent.

TAKKT AMERICA: Continued good performance
In the TAKKT AMERICA segment, sales in the first half-year of 2016 increased organically by 9.8 percent, while reported sales improved by 8.8 percent to EUR 268.6 (246.9) million. Portfolio effects from the sale of PEG and the acquisition of Post-Up Stand should be taken into account. In the second quarter of 2016, the segment grew organically by 8.9 percent. The Specialties Group (SPG) and the Office Equipment Group (OEG) both achieved organic growth in the first half-year marginally below the double-digit percentage range. Particularly worth mentioning within the SPG was the strong growth of the restaurant equipment supplier Central and the direct marketer for display products GPA. TAKKT AMERICA generated EBITDA of EUR 39.6 (32.8) million. The margin was 14.7 (13.3) percent. Adjusted for positive one-time effects, it came to 13.7 (11.9) percent.

Outlook: TAKKT confirms forecast
Purchasing Managers’ Index figures and industry indicators in Europe and the USA generally point to a continued good business climate but have not yet been adjusted for the results of the Brexit decision. The IMF has revised growth forecasts slightly lower as a result of this decision. Claude Tomaszewski, CFO at TAKKT, says, “We had a strong first half of the year. Against a backdrop of growing political and economic uncertainty, we expect the pace of growth to slow in the second half of the year. We also have to take into consideration that the first half of 2016 had more working days compared to the previous year’s period – an effect which will be reversed in the second half-year. For the full year, we therefore continue to expect an organic sales growth of three to five percent.” As before, EBITDA is expected to be in the upper third of the target corridor of 12 to 15 percent.

Conference call
We would like to invite you to address your questions to the Management Board. We will be hosting a conference call for this purpose on July 28, 2016, at 3:00 pm (CEST). To take part, please dial the following number: +49 69 201 744 220 (access code: 779134#).

Financial calendar
The nine-month figures for the 2016 financial year will be published on October 31.

IFRS figures for TAKKT Group to the end of H1 2016:
(in EUR million)

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 300,000 products for the areas of plant and warehouse equipment, office furniture, transport packaging, display articles and equipment for the food service industry, hotel market and retailers.

The TAKKT Group has over 2,000 employees and just under three million customers worldwide. The company is listed on the SDAX and Deutsche Börse Prime Standard.

Contacts:
Dr. Christian Warns Tel. +49 711 3465-8222
Giuseppe Palmieri Tel. +49 711 3465-8250

Email: investor@takkt.de