Takkt Ag · XETR:TTK
Takkt — Investor Presentation (March 2001)
60 slides from Takkt's investor presentation, Mar 26, 2001
Slide 1: Analyst Presentation
Analyst Presentation March 26, 2001
Slide 2: Contents
Contents ❙ Year 2000 - Strategic Positioning ❙ Stock Performance and Financial Statements 2000 ❙ TAKKT Divisions ❙ Value- and Growth-Drivers of B2B Mail Order ❙ TAKKT Strategy
Slide 3: Year 2000 - Strategic Positioning
Year 2000 - Strategic Positioning
Slide 4: TAKKT strategy – Increasing the speed of growth
TAKKT strategy – Increasing the speed of growth ❙ Expansion of our successful business into new regions ❙ Growth through acquisition ❙ Strengthening of organic growth ❙ E-commerce – the next logical step
Slide 5: Highlights 2000 – New companies established
Highlights 2000 – New companies established ❙ KWESTO: Greater market penetration in the Czech Republic and Eastern Europe ❙ France: Successful continuation of European growth strategy ❙ USA: European design on the East Coast ❙ Expanding our regional presence ensures future growth
Slide 6: Highlights 2000 – Acquisition of Hubert
Highlights 2000 – Acquisition of Hubert ❙ Hubert: US market leader in B2B mail order business in the area of equipment and supplies for retail grocery stores and the food service industry ❙ New product area for K + K America ❙ Recruitment of new customer groups (175,000 new customers) ❙ Diversificat
Slide 7: Highlights 2000 – Investment in e-commerce
Highlights 2000 – Investment in e-commerce ❙ New interactive websites at KAISER + KRAFT (Germany) and C&H Distributors (USA) ❙ Successful launch of e-procurement projects ❙ E-commerce is the next logical step for the mail order business
Slide 8: Highlights 2000 – Expansion of mail order warehouse in Kamp-Lintfort
Highlights 2000 – Expansion of mail order warehouse in Kamp-Lintfort ❙ Size of investment: approx. EUR 17 million ❙ Capacities more than doubled ❙ Reduction of delivery periods ❙ Important step toward achieving greater market share as a service and market leader
Slide 9: Financial year 2000 – Growth in turnover and EBITDA
Financial year 2000 – Growth in turnover and EBITDA TURNOVER EBITDA ì 1999 – 2000 ì 1999 – 2000 in million Euro in million Euro 87.6 800 762.8 % % 1. 5 80 4.3 700 2 627.6 2 70.5 600 60 500 400 40 300 200 20 100 1999 2000 1999 2000
Slide 10: Stock Performance and Financial Statements 2000
Stock Performance and Financial Statements 2000
Slide 11: The TAKKT share - SDAX outperformer
The TAKKT share - SDAX outperformer in Euro in % 12.0 180 ❙ TAKKT share ❙ SDAX 9.4 140 15/09/99 = 100 ❙ High ranking in SDAX: 6.8 100 ~ no. 4 out of 100 9/99 1/00 7/00 1/01 Multiples:* Market Cap: 1999 2000 2001e EV / EBITDA 9.2 12.0 10.4 Euro 594.1m EV / EBITA 15.6 13.2 11.5 (23-03-01) EV / EBIT 17
Slide 12: The TAKKT share - good performance and further growth potential
The TAKKT share - good performance and further growth potential 2.216.514 400,000 14.0 10.0 ❙ TAKKT share 200,000 ❙ no. of shares 6.0 0 9/99 1/00 7/00 1/01 Volume: Q1/00 Q2/00 Q3/00 Q4/00 total 00 - traded volume 4,736 1,793 1,684 2,041 10,254 (in thousand shares) - % of free float* 30.3 11.5 10.8 1
Slide 13: TAKKT group turnover – Growth rate over 21.5 percent
TAKKT group turnover – Growth rate over 21.5 percent TURNOVER TAKKT GROUP ì 1996 – 2000 800 in million Euro 762.8 700 627.6 600 539.2 500 469.5 394.1 400 300 200 100 1996 1997 1998 1999 2000
Slide 14: Increased share of new and established markets
Increased share of new and established markets TURNOVER by regions 2000 North America 40.5% Germany 28.6% Rest of Europe 30.9%
Slide 15: All divisions play their part in ensuring corporate success
All divisions play their part in ensuring corporate success TURNOVER by divisions 2000 KAISER + KRAFT EUROPA 48.0% Topdeq 11.5% K + K America 40.5%
Slide 16: EBITDA – Good fourth quarter makes an impact
EBITDA – Good fourth quarter makes an impact EBITDA ì 1996 – 2000 in million Euro 87.6 80 70.5 65.1 60 52.0 44.3 40 20 1996 1997 1998 1999 2000 11.2% 11.1% 12.1% 11.2% 11.5% Margin
Slide 17: Seasonality of turnover
Seasonality of turnover TURNOVER 2000 ì German GAAP in million Euro 763 250 218 200 190 180 175 150 100 50 QI QII QIII QIV Total 2000
Slide 18: Distribution of EBITDA throughout the year
Distribution of EBITDA throughout the year Effect of accounting treatment of catalogue expenses on EBITDA EBITDA 2000 ì German GAAP 87.6 in million Euro 38.9 40 30 20 19.0 17.5 12.2 10 QI QII QIII QIV Total 2000 6.5% 10.8% 9.7% 17.8% 11.5% Margin
Slide 19: EBIT – Spin-off and acquisition of Hubert make comparisons more difficult
EBIT – Spin-off and acquisition of Hubert make comparisons more difficult EBIT ì 1996 – 2000 in million Euro 66.1 60 58.8 56.5 46.2 39.5 40 20 1996 1997 1998 1999 2000 10.0% 9.8% 10.9% 9.0% 8.7% Margin
Slide 20: Profit before tax – adversely affected by interest expense
Profit before tax – adversely affected by interest expense PROFIT BEFORE TAX ì 1996 – 2000 in million Euro 60 57.8 53.8 50.5 45.5 38.9 40 20 1996 1997 1998 1999 2000 9.9% 9.7% 10.7% 8.0% 7.1% Margin
Slide 21: Profit after tax – 5.2 percent increase
Profit after tax – 5.2 percent increase PROFIT AFTER TAX ì 1996 – 2000 in million Euro 33.6 31.9 29.5 30 25.1 20.7 20 10 1996 1997 1998 1999 2000
Slide 22: Cash flow – Further growth projects are assured
Cash flow – Further growth projects are assured CASH FLOW ì 1996 – 2000 in million Euro 55.1 50 45.8 40 35.9 30.9 30 25.5 20 10 1996 1997 1998 1999 2000 Depreciation Net income
Slide 23: Capital investment in 2000
Capital investment in 2000 – Primary focus: Hubert, Kamp-Lintfort, e-commerce CAPITAL INVESTMENT ì 1996 – 2000 168.9 in million Euro 160 140 121.1 120 100 80 73.8 60 40 25.5 20 5.6 1996 1997 1998 1999 2000 Tangible assets Intangible assets
Slide 24: Workforce – 150 new jobs
Workforce – 150 new jobs EMPLOYEES ì 1996 – 2000 Ø on full-time basis 1,674 1,497 1,500 1,330 1,165 1,101 1,000 500 1996 1997 1998 1999 2000
Slide 25: Figures 2000 of the TAKKT group
Figures 2000 of the TAKKT group (in million Euro) Pre-Tax Turnover EBITDA EBIT Profits + 21.5% 762.8 627.6 + 24.3% + 16.9% + 6.5% Spin-off 87.6 related 70.5 expenses 66.1 56.5 50.5 53.8 included 1999 2000 1999 2000 1999 2000 1999 2000 Margins: 11.2% 11.5% 9.0% 8.7% 8.0% 7.1% not comparable due to sp
Slide 26: Financial year 2000 at a glance
Financial year 2000 at a glance in million Euro 1997* 1998* 1999* 2000 CAGR Turnover 469.5 539.2 627.6 762.8 + 18% Change as % 19.1 14.8 16.4 21.5 EBITDA 52.0 65.1 70.5 87.6 + 19% as % of turnover 11.1 12.1 11.2 11.5 EBIT 46.2 58.8 56.5 66.1 + 13% as % of turnover 9.8 10.9 9.0 8.7 Annual net incom
Slide 27: Consolidated balance sheet – noticeable growth trend
Consolidated balance sheet – noticeable growth trend in million Euro On On % % % 31.12.00 31.12.99 ASSETS Fixed assets 386.7 67.9 237.3 64.0 Current assets 178.8 31.4 130.4 35.2 Prepayments 3.8 0.7 3.2 0.8 569.3 100.0 370.9 100.0 EQUITY AND LIABILITIES Shareholders' equity 128.1 22.5 99.1 26.7 Pro
Slide 28: TAKKT Divisions
TAKKTAG KT Divisions
Slide 29: The TAKKT group – centralised management and market proximity
The TAKKT group – centralised management and market proximity ❙ Knowledge ❙ Synergies / economies of scale ❙ Procurement / advertising ❙ Logistics ❙ Customer database ❙ E-commerce ❙ Distribution companies
Slide 30: TAKKT divisions
TAKKT divisions ❙ Supply of appliances and equipment for offices, warehouses and plants ❙ Over 30,000 products offered ❙ European-wide operations in 16 countries ❙ 2000 Revenues: Euro 366 m ❙ 2000 EBITDA: Euro 52 m ❙ No of employees full time: 860
Slide 31: KAISER + KRAFT EUROPA – Strongest share of turnover within the TAKKT group
KAISER + KRAFT EUROPA – Strongest share of turnover within the TAKKT group TURNOVER EBITDA ì 1996 – 2000 ì 1996 – 2000 in million Euro in million Euro 60 400 366.4 52.3 313.0 326.5 50 43.6 300 40.3 260.8 40 239.4 27.9 29.9 200 30 20 100 10 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
Slide 32: Divisions
Divisions ❙ Supply of design-oriented office furniture, equipment and accessories ❙ Over 2,000 products offered ❙ Operations in Germany, Switzerland, the Netherlands, France and since January 2001 in the USA ❙ 2000 Revenues: Euro 87 m ❙ 2000 EBITDA: Euro 8 m ❙ No of employees full time: 218
Slide 33: Topdeq - Excellent start with Topdeq France
Topdeq - Excellent start with Topdeq France TURNOVER EBITDA ì 1996 – 2000 ì 1996 – 2000 in million Euro 10 in million Euro 9.3 100 8.3 8.4 87.1 8 80 73.1 63.0 53.3 6 60 4.6 44.5 40 4 3.3 20 2 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
Slide 34: Divisions
Divisions ❙ Sale of office, warehouse and plant equipment, packaging material and work safety products, foodservice equipment and supply in North America ❙ Over 68,000 products offered ❙ Operations in the US and Canada ❙ 2000 Revenues: Euro 309 m ❙ 2000 EBITDA: Euro 34 m ❙ No of employees full time:
Slide 35: K + K America – Acquisition and sound business situation
K + K America – Acquisition and sound business situation TURNOVER EBITDA ì 1996 – 2000 ì 1996 – 2000 in million Euro in million Euro 40 309.3 33.9 300 30 228.0 23.2 200 155.4 163.2 17.5 20 16.5 110.2 13.1 100 10 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
Slide 36: Value- and Growth-Drivers of B2B Mail Order
Value- and Growth-Drivers of B2B Mail Order
Slide 37: Market overview and business model
Market overview and business model Focus on durables and specialties via mail order Product TAKKT-Group TAKKT Durables ❙ pure mail order Manutan ❙ no outlets Schäfer Shop ❙ no business agents W.W.Grainger McMaster Carr ❙ infrastructure for Specialties MSC Industrial fulfilment Vallen ❙ strong brands
Slide 38: Value- and growth-drivers
Value- and growth-drivers TAKKT concentrates on price insensitive products . . . Product Product Durables Equipment Durables Equipment Special- EDP Safety Special- EDP Safety ties ties Consum- Paper Consum- Paper ables ables price price concentrated fragmented sensitive insensitive suppliers supplie
Slide 39: A fragmented customer structure guarantees stable margins
A fragmented customer structure guarantees stable margins e. g. KK-D no. of employees > 1,000 large end user accounts ≠ decider response rate increases order midsize frequency companies declines < 50 small end user= < 20 accounts decider
Slide 40: B2B: customer behaviour
B2B: customer behaviour Consumables Specialties Durables End user decides over the supplier Corporate buyer decides over the supplier ❙ In case of specialty and durable products the end user is often the decision-maker on which supplier he wants to take ❙ In case of standard consumable products the
Slide 41: Our customers – KAISER + KRAFT EUROPA
Our customers KAISER + KRAFT EUROPA Consumables Specialties Durables End user decides over the supplier KAISER + KRAFT EUROPA Corporate buyer decides over the supplier ❙ KAISER + KRAFT EUROPA has approx. 800,000 customers ❙ Most KAISER + KRAFT EUROPA customers are end users ❙ KAISER + KRAFT EUROPA c
Slide 42: Our customers – K + K America
Our customers K + K America Consumables Specialties Durables End user decides over the supplier K+K America Corporate buyer decides over the supplier ❙ K + K America has approx. 1,200,000 customers ❙ Most K + K America customers are end users ❙ K + K America customers prefer outstanding service to f
Slide 43: Our customers – Topdeq
Our customers Topdeq Durables Buyer ≠ End User Topdeq Buyer = End User 1-20 20-50 50-100 100-500 Number of Employees ❙ Topdeq has 310,000 customers ❙ Topdeq customers are simultaneously both end users and buyers ❙ Topdeq customers are usually owners or directors
Slide 44: Winning new customers
Winning new customers ❙ Acquisitions ❙ Topdeq 1994 ❙ Gerdmans 1998 ❙ Conney 1998 ❙ Hubert 2000 ❙ Foundations ❙ Topdeq F 2000 ❙ KWESTO 2000 ❙ Topdeq USA 2001 ❙ Increase of catalogue circulation catalogue circulation 40 in m 20 0 t In the past 15 years: 1 foundation or acquisition per year
Slide 45: Winning new customers
Winning new customers Foundations ROS established Foundations are investments . . . companies, e.g. KK-D costs BEP 3-5 years 0 t Foundations e.g. TQ USA . . . customers . . . in winning new customers by leveraging the existing infrastructure winning market shares 0 t
Slide 46: Winning new customers
Winning new customers Growth potential turnover/ customer increase of order frequency winning new customers . . . no. of customers fixed costs per customer . . . with acquisitions, foundations, increase of catalogue circulation
Slide 47: How do value- and growth-drivers react to economic trends?
How do value- and growth-drivers react to economic trends? ∆ GDP in % ❙ Gross profit margin stays stable gross profit t ∆ GDP new in % customers ❙ Independent of economic trends new customers / market shares are acquired t
Slide 48: How do value- and growth-drivers react to economic trends?
How do value- and growth-drivers react to economic trends? ∆ GDP in % ❙ Average order size fluctuates with the economic trend AOS t ∆ GDP in % ❙ Order frequency fluctuates OF with the economic trend t
Slide 49: How do value- and growth-drivers react to economic trends?
How do value- and growth-drivers react to economic trends? e.g. C&H and KK-D ∆ GDP in % AOS ❙ Average order size fluctuates with the economic trend 89 90 91 92 93 94 95 96 97 98 99 00 ∆ GDP in % OF ❙ Order frequency fluctuates with the economic trend 89 90 91 92 93 94 95 96 97 98 99 00 C&H KK-D
Slide 50: New value- and growth-drivers
New value- and growth-drivers E-Procurement Community Content Content Market position is determined by content quantity and quality Community Supplier 1 Customer 1 Community Commerce Transaction- orientated business Supplier 2 Website Customer 2 models are defined by technology Supplier 3 Customer 3
Slide 51: E-Commerce
E-Commerce ❙ We understand e-commerce via Internet as an additional sales channel for our existing catalogue business ❙ Upcoming e-commerce activities will enforce the competition between the distribution channels wholesale, retail, mail order and e-commerce ❙ The market for business equipment and s
Slide 52: Winning new customers and market shares with . . .
Winning new customers and market shares with . . . TAKKT customers in million ❙ Foundations 2.0 CAGR 20% ❙ Acquisitions 1.5 ❙ Increase of catalogue circulation ❙ Expansion of product range 1.0 ❙ E-commerce 0.5 95 96 97 98 99 00
Slide 53: TAKKT Strategy
TAKKT Strategy
Slide 54: Consistent Duplication of System Business
Consistent Duplication of System Business K + K America 1988 - 2000 KAISER + KRAFT Europa 1945 - 2000 Topdeq 1994 - 2000 Milwaukee Milwaukee Stuttgart 1 foundation or acquisition per year
Slide 55: Growth potential for TAKKT's system business
Growth potential for TAKKT’s system business Product other I I I Food/Gastro- I equipment/spec. Safety I Design-oriented I in terms business- of sales furniture Office equipment Plant I equipment Region Europe North America other Objective: diversified product portfolio via duplication of system bus
Slide 56: Optimal portfolio of customers and suppliers
Optimal portfolio of customers and suppliers e. g. KAISER + KRAFT EUROPA Structure of customers by size Structure of suppliers by purchase volume Company with >50 Company Top 20 employees with <50 employees 25% Rest 39% 61% 75% Total: 800,000 Total: 900+ customers suppliers ❙ Target: low-risk custom
Slide 57: Optimal portfolio of regions and products
Optimal portfolio of regions and products Sales by region (pro forma 2001) Sales by products (pro forma 2001) Office North Plant equipment America equipment 13 % 43 % 51 % Germany Safety 29 % 13 % Design- oriented Rest of 12 % Europe 28 % Foodservice 11% ❙ Market leadership in each of these ❙ Divers
Slide 58: Strategy
Strategy ❙ Be the market leader in B2B e-commerce E-Commerce for business equipment ❙ Service expansion ❙ Countries with low level of mail order business Geographic and rising need for office warehouse equipment Expansion ❙ New subsidiaries or acquisitions ❙ Geographic expansion in core markets Targ
Slide 59: That's why invest in TAKKT
That’s why invest in TAKKT 1 Optimal portfolio of system businesses with comparable low risks 2 B2B mail order is at the beginning of a new life cycle 3 E-commerce is the next logical step for our business 4 Superior growth and consistently high margins
Slide 60: TAKKT AG
TAKKTAG BUSINESS EQUIPMENT SOLUTIONS TAKKTAG EG@UEPESERT SOU UFEIEE: