Analysts' conference March 29, 2021 - TAKKT AG
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Analysts‘ conference March 29, 2021
Agenda
1. Organization and vision
2. Strategy
3. Financial year 2020
4. Outlook for 2021
TAKKT AG March 2021 Analysts' Conference 2
Organization and vision TAKKT AG March 2021 Analysts' Conference 3
TAKKT Group specializes in B2B distance selling for business equipment TAKKT AG March 2021 Analysts' Conference 4
TAKKT Group structure TAKKT AG March 2021 Analysts' Conference 5
TAKKT AG March 2021 Analysts' Conference 6
TAKKT AG March 2021 Analysts' Conference 7
Strategy TAKKT AG March 2021 Analysts' Conference 8
TAKKT has set new ambitions in certain areas to be achieved by 2025
Grow profitably Transform the business model Act sustainably
• Long-term organic sales growth • Organizational realignment with • Share of women in top
of around 5% per year focus on two business models executive positions of at least
30 percent
• Additional growth through • Above-average organic
acquisitions e-commerce growth • Share of sustainable products of
over 20 percent
• Sustainable increase in EBITDA • Consistently high
recommendation in customers • 100 percent carbon-neutral
and employees (cNPS and eNPS) print advertising and shipping
processes
TAKKT AG March 2021 Analysts' Conference 9Grow profitably:
Organic growth and profitability ambitions differ between the three segments
Long-term organic growth target
3-5% p.a. 6-8% p.a. 3-5% p.a. 5% p.a.
Long-term EBITDA target
around 15% around 10% more than 10% sustainable increase
in EBITDA
TAKKT AG March 2021 Analysts' Conference 10Transform the business model:
Continue with implementation of TAKKT 4.0
Two business models for two different customer types
Focus on a specific business model allows brands to better fulfill
the requirements of their respective customer type.
Reallocation of functions and responsibility
Establish segment functions (Logistics, IT infrastructure and data &
analytics) in WFC and OCC and Group finance function in 2021.
Strengthen the operational excellence
Steering with a new operating model which defines core
behaviors and processes across the Group.
TAKKT AG March 2021 Analysts' Conference 11Act sustainably:
TAKKT has set new targets for 2025
• TAKKT achieved most of its sustainability
goals for 2020
• Interim sustainability report gives an update
on the Group’s progress and sets new targets
for 2025
TAKKT AG March 2021 Analysts' Conference 12Financial year 2020 TAKKT AG March 2021 Analysts' Conference 13
Development of key financials in 2020
1,067.4 92.6 37.2
Sales in EUR million EBITDA in EUR million Net profit in EUR million
129.8 64.7 1.10
Free TAKKT cash flow Dividend proposal
Equity ratio in percent
in EUR million per share in EUR
TAKKT AG March 2021 Analysts' Conference 14TAKKT Group sales in 2020 slightly exceeded updated forecast from October
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
150.2
1,213.7
1,067.4
92.6
12.4%
8.7%
2019 2020 2019 2020
• Sales decrease by 12.0%; slightly better than expected in • Cost management led to substantial savings in personnel and
October marketing and other costs
• Positive acquisition effect (+0.4%) and negative currency • One-time expenses and gains resulted in a negative effect on
effect (-0.6%) mostly cancel each other out earnings of around EUR 8.6 (EUR 8.5) million
• Organic sales decline of 11.8% • EBITDA was EUR 92.6 (150.2) million, EBITDA margin at 8.7%
• Very different impacts from the pandemic on the various end (12.4%)
markets of the Group’s business units
TAKKT AG March 2021 Analysts' Conference 15Omnichannel Commerce stabilized over the course of the second half of the year
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
141.7
971.5
837.3 102.5
14.6%
12.2%
2019 2020 2019 2020
• Sales decrease by 13.8%; negative currency effects of 0.6% • Sales decline with negative impact on earnings
• Organic sales decline of 13.2% due to the pandemic • One-time expenses and gains had a negative net impact
• ratioform with a stable organic development; of EUR 3.3 (7.3) million
KAISER+KRAFT, NBF, Hubert and Central with double-digit • EBITDA was EUR 102.5 (141.7) million, EBITDA margin at
decline 12.2% (14.6%)
TAKKT AG March 2021 Analysts' Conference 16Business units in Web-focused Commerce impacted very differently by the pandemic
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
247.3 28.5
234.3
11.5%
9.5
4.1%
2019 2020 2019 2020
• Sales decrease by 5.3% with positive effects from the • Drop in sales at D2G weighed on earnings
acquisition of XXLhoreca (+2.3%) and negative effects from • Positive net impact on earnings of EUR 2.5 million in prior year
currency fluctuations (-1.3%) • EBITDA was EUR 9.5 (28.5) million, EBITDA margin at 4.1%
• Organic sales decline of 6.3% (11.5%)
• Newport with low double-digit organic growth, D2G with
double-digit organic decline
TAKKT AG March 2021 Analysts' Conference 17Lower sales volume also had an impact on gross profit margin
Gross profit margin development (in %)
41.3% -0.9
-0.5
-0.7 39.7%
+0.5
2019 Inventory Supplier Freight Other 2020
obsolesence discounts margin
TAKKT AG March 2021 Analysts' Conference 18Cost management allowed substantial compensation of decline in gross profit
EBITDA development (in EUR million)
150.2
92.6
EBITDA 2019 Gross profit Marketing Personnel Other One-time EBITDA 2020
costs costs* costs* effects
*adjusted for one-time effects
TAKKT AG March 2021 Analysts' Conference 19TAKKT cash flow negatively impacted by lower business volume
TAKKT cash flow (in EUR million) and margin (in %) in EUR million 2019 2020
Profit 74.7 37.2
120.4 + depreciation +41.4 +40.2
+/- deferred taxes expense/income +3.3 -4.5
82.0 +/- other non-cash expenses/income +1.1 +13.5
+/- result from non-cur. asset disposal -0.1 -4.4
9.9% TAKKT cash flow 120.4 82.0
7.7%
in EUR million 2019 2020
EBITDA 150.2 92.6
2019 2020 - financial result -8.2 -5.7
- current taxes -22.6 -14.0
+/- other non-cash expenses/income +1.1 +13.5
+/- result from non-cur. asset disposal -0.1 -4.4
TAKKT cash flow 120.4 82.0
TAKKT AG March 2021 Analysts' Conference 20Best free TAKKT cash flow in the company’s history to date
Cash flow development for the period (in EUR million)
+22.6 129.8
+8.4 120.5 -13.3
+22.4
+8.5 +2.5
82.0 -3.3
TAKKT cash flow Trade Trade Inventories Change in Change in Cash flow from Capex in Sale of real Free TAKKT
payables receivables assets/liabilities provisions operating non-current estate cash flow
activities assets
TAKKT AG March 2021 Analysts' Conference 21Free cash flow with a more stable development than EBITDA
Development of EBITDA and free cash flow (in EUR million)
• High free cash flow in 2020
160 due to release of cash from
net working capital and low
capex spending
120
• Sale of real estate contributed
an additional EUR 22.6 million
to free TAKKT cash flow
80
40
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
EBITDA Free cash flow
TAKKT AG March 2021 Analysts' Conference 22Significant reduction in net financial liabilities and very solid balance sheet
Net financial liabilities (in EUR million) Equity ratio (in %)
189.8 64.7%
58.5%
75.4
12/31/2019 12/31/2020 12/31/2019 12/31/2020
• Strong free cash flow used to repay liabilities • Profit for the period and decrease in total assets result in
• TAKKT repaid all bank liabilities an increased equity ratio
• Initial recognition of lease contract from sale-and-lease
back in the US adds EUR 13.9 million to liabilities
TAKKT AG March 2021 Analysts' Conference 23TAKKT proposes dividend payment of EUR 1.10 per share
Dividend policy Dividend proposal
Dividend payment of EUR 0.55 for 2020 plus
• Payout ratio within a corridor of 35 to 45 percent of the profit
previous year’s suspended base dividend of
• TAKKT aims for a consistent and reliable dividend stream another EUR 0.55.
• Willingness to return funds to shareholders via a special dividend when This proposal is subject to the condition that the
equity ratio is high and funds cannot be reinvested. negative effects of the pandemic do not worsen
significantly before the Shareholders’ Meeting.
Dividend per share in Euro
1.10*
0.85 0.85
0.50 0.55 0.55
0.32 0.32 0.32 0.32
0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
* Proposal to the Shareholders‘ Meeting
TAKKT AG March 2021 Analysts' Conference 24Outlook for 2021 TAKKT AG March 2021 Analysts' Conference 25
Outlook: TAKKT expects strong growth and significant earnings increase in 2021
Economic environment Strategic focus Outlook for key financials
• Economic development still • Implementation of strategic
dependant on course of the initiatives to drive organic growth in Organic sales growth of
pandemic. the business units. between 7 and 12 percent
• Extension of lockdowns in Europe • Development of segment structures
will negatively impact business in OCC and WFC. IT infrastructure,
activity in Q1. logistics and data & analytics will be EBITDA between
centrally coordinated and managed. EUR 100 and 120 million
TAKKT AG March 2021 Analysts' Conference 26Appendix:
TAKKT share and equity story
TAKKT AG March 2021 Analysts' Conference 27TAKKT share performance, shareholder structure and analyst recommendations
Total Shareholder Return: TAKKT and indices Shareholder structure
150
Franz Haniel &
125 49.8% 50.2% Cie.
Free float
100
75 Analyst recommendations
50
Buy
25
8
TAKKT DAX MDAX SDAX
Average price target of EUR 13.8
TAKKT AG March 2021 Analysts' Conference 28TAKKT equity story at a glance
TAKKT’s business units are B2B direct-marketing Gross profit margin > 40% (target)
specialists for business equipment in Europe and North America 38.5% 40.5% 41.4% 42.6% 39.7%
Business units are market-leaders in attractive market niches 1999 2003 2008 2015 2020
with high operational margins EBITDA margin 12-15% (target)
14.3% 14.8%
11.2% 11.2%
8.7%
Growth opportunities through organic initiatives (Digitalization and TAKKT 4.0)
as well as upside from acquisitions 1999 2003 2008 2015 2020
TAKKT cash flow margin > 8% (target)
10.4% 10.7%
7.4% 7.3% 7.7%
Sustainable increase in EBITDA
1999 2003 2008 2015 2020
Reliable dividend payouts (in EUR)
Dividend EPS
Business model generates high free cash flows
1.47
and allows attractive dividend payouts 1.24
1.39 1.34
1.14 1.10
0.85
0.50 0.55 0.55 0.57
0.00
Stable, long-term oriented shareholder structure with Franz Haniel & Cie. GmbH 2015 2016 2017 2018 2019 2020
as majority shareholder
TAKKT AG March 2021 Analysts' Conference 29TAKKT investor relations
IR Contact Upcoming Events
Michael Loch / Benjamin Bühler March
Phone: +49 711 3465-8222 / -8223 30./31. Jefferies European Mid-Cap Forum (virtual event)
Fax: +49 711 3465-8100
e-mail: investor@takkt.de April
14./15. Virtual roadshow
www.takkt.com 29. Earnings call Q1/2021
TAKKT AG is headquartered in Stuttgart, Germany.
Basic data TAKKT share Historic share price development (Xetra)
ISIN / WKN / Ticker DE0007446007 / 744600 / TTK 16
TAKKT AG
14
No. shares 65,610,331
12
Type No-par-value bearer shares
10
Share capital EUR 65,610,331
8
Listing September 15, 1999
6
Index SDAX, prime standard
4
Designated sponsors Pareto Securities, Oddo Seydler, Hauck & Aufhäuser Mar May Jul Sep Nov Jan Mar
TAKKT AG March 2021 Analysts' Conference 30Appendix:
Key performance figures and
indicators
TAKKT AG March 2021 Analysts' Conference 31Overview of key performance figures and indicators
Financial key figures Product range figures Digital agenda indicators
• Organic sales development • Share of private labels • Launched and completed measures
• Number of orders and average order • Share of direct imports • Newly created positions
value • Additional personnel expenses
• Gross profit margin • Other expenses
• EBITDA • Capital expenditure and start-up
• TAKKT cash flow investments
• Free TAKKT cash flow • Organic e-commerce growth
• Capital expenditure ratio • Share of e-commerce in order intake
Value-based figures Internal covenants Sustainability indicators
• TAKKT value added • Equity ratio • A total of 16 indicators across the six
• Return on Capital Employed (ROCE) • Debt repayment period focus areas sourcing, marketing,
• Interest cover logistics, resources & climate,
• Gearing (debt-equity ratio) employees and society
TAKKT AG March 2021 Analysts' Conference 32Financial key figures
2016 2017 2018 2019 2020
Organic sales development in percent 5.2 0.4 3.4 -1.4 -12.0
Number of orders in thousand 2,409 2,465 2,676 2,642 2,535
Average order value in EUR 469 458 449 460 425
Gross profit margin in percent 42.6 42.5 41.5 41.3 39.7
EBITDA in EUR million 171.3 150.3 150.1 150.2 92.6
TAKKT cash flow in EUR million 125.6 109.1 120.8 120.4 82.0
Free TAKKT cash flow in EUR million 101.4 73.0 82.7 107.1 129.8
Capital expenditure ratio in percent 1.5 2.1 1.8 1.8 1.2
TAKKT AG March 2021 Analysts' Conference 33Product range figures
Share of private labels* (in %) Share of direct imports* (in %)
22.0% 21.7%
24.1% 24.2%
20.7% 21.7% 17.9%
18.3% 15.5%
13.7%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
* The figures have only been reported as shares of sales for 2019 and 2020. For prior years, they are shown as shares of order intake (private label) and purchase volume (direct imports)
TAKKT AG March 2021 Analysts' Conference 34Digital agenda indicators
Newly created positions filled Organic e-commerce growth (in percent)
11.6%
10.6%
7.9%
98
85 87
78
2.0%
26
-3.6%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Launched and completed measures Share of e-commerce in order intake (in percent)
157 162
60.0%
123 52.1% 55.0%
114 46.8%
100 43.9%
92
44
27
Launched
Completed
2017 2018 2019 2020 2016 2017 2018 2019 2020
TAKKT AG March 2021 Analysts' Conference 35TAKKT invested around € 51 million until 2020 for the implementation of the digital agenda and additional € 11 million for start-up investments In EUR million 2016 2017 2018 2019 2020 Additional personnel expenses (year-on-year) 0.6 3.9 2.9 0.7 -0.6 Other expenses 1.9 3.8 4.0 2.9 2.1 Capital expenditure 1.4 8.7 8.4 6.0 4.7 Digital agenda cost (investment view) 3.9 16.5 15.3 9.6 6.2 Personnel expenses (cumulative) 0.6 4.4 7.3 8.0 7.4 Other expenses 1.9 3.8 4.0 2.9 2.1 Digital agenda cost (EBITDA impact) 2.5 8.3 11.3 10.9 9.5 TAKKT Start-up investments 1.0 4.5 2.3 3.0 0.3 TAKKT AG March 2021 Analysts' Conference 36
Value-based figures
TAKKT value added (in EUR million) Return on Capital Employed (in %)
16.5%
50.4* 14.6% 14.0%
46.8*
7.3 37.6 * 11.1%
8.5
7.2
15.9* 5.6%
38.3 43.1
30.4 6.1
9.8 2020
2016 2017 2018 2019 -18.7 * 2016 2017 2018 2019 2020
* Adjusted for amortization of intangible assets resulting -4.5
from acquisitions and the related tax impact. -23.2
• Due to the significantly lower earnings during the pandemic, the value-based figures also decreased significantly
TAKKT AG March 2021 Analysts' Conference 37Internal covenants within or exceeding the target range
Equity ratio (in %) Debt repayment period (in years)
Internal target value:
64.7%
61.2% 60.8% 58.5% < 5 years
55.2%
Internal target range:
30 to 60 percent 1.6 1.7
1.4 1.4 1.4
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Interest cover Gearing
23.8 Internal target value:
< 1.5
18.3
16.3 16.7
11,0
0.3 0.3
0.2 0.2
Internal target value: 0.1
>4
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
TAKKT AG March 2021 Analysts' Conference 38Sustainability indicators
Focus area* Key figure 2017 2018 2019 2020
Share of sourcing volume from certified suppliers 46.8% 44.2% 51.6% 49.1%
Sourcing Share of direct imports sourcing volume from certified suppliers 39.8% 39.3% 60.2% 54.2%
Share of sales from sustainable product ranges 9.3% 9.5% 9.5% 10.8%
Carbon-neutral web shops for major companies 7 12 17 15
Marketing Paper consumption print advertising materials per order 5.4kg 4.2kg 3.0kg 2.8kg
Share of carbon-neutral advertising materials 12.1% 19.9% 60.5% 100.0%
Share of carbon-neutral parcel delivery 91.4% 93.5% 92.2% 93.5%
Logistics
Share of carbon-neutral general cargo delivery 44.7% 48.9% 54.8% 87.1%
Major companies with carbon footprint 13 13 16 16
Resources Major companies with a certified environmental mgmt. system 6 6 9 10
and Climate Major companies with a certified energy management system 4 4 4 6
Energy consumption at GER / US locations per order in megajoule 70.6 66.7 71.3 51.0
Share of retained „digital talents“ 90.9% 89.9% 65.9% 61.7%
Employees
Share of women in top executive positions 10.5% 12.3% 15.1% 14.0%
Percentage of employees who have the opportunity to take a paid
65.7% 70.2% 68.8% 86.1%
Society leave for local volunteer involvement
Percentage of employees who took part in local volunteer projects 15.1% 18.0% 14.7% 9.5%
* The Newport companies are only included in the focus area employees for the sustainability indicators.
TAKKT AG March 2021 Analysts' Conference 39Appendix:
Pro forma figures
new segment structure
TAKKT AG March 2021 Analysts' Conference 40Pro forma sales development for the new segment structure in % Q1/20 Q2/20 Q3/20 Q4/20 2020 TAKKT Group in EUR -7.2% -20.0% -14.0% -6.9% -12.0% organic -10.1% -21.2% -12.2% -3.6% -11.8% currency +1.5% +0.7% -1.8% -3.3% -0.6% acquisition/divestment +1.4% +0.5% - - +0.4% Omnichannel Commerce in EUR* -9.3% -27.3% -15.6% -3.2% -13.8% organic -10.3% -27.9% -14.6% -1.6% -13.6% currency +1.0% +0.6% -1.0% -1.6% -0.2% acquisition/divestment - - - - - Web-focused Commerce in EUR +5.5% -6.8% -8.6% -10.5% -5.3% organic -3.8% -9.2% -6.5% -5.6% -6.3% currency +1.9% +0.2% -2.1% +4.9% -1.3% acquisition/divestment +7.4% +2.2% - - +2.3% Foodservice Equipment & Supplies in EUR* -13.4% -11.5% -15.0% -15.8% -13.9% organic -15.9% -13.1% -11.1% -8.3% -12.2% currency 2.5% 1.6% -3.9% -7.5% -1.7% acquisition/divestment - - - - - * New segment structure implemented in 2021. The table shows the pro forma figures for 2020 in the new structure. TAKKT AG March 2021 Analysts' Conference 41
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