Takkt Ag · XETR:TTK
Takkt — Non-Deal Roadshow (March 2015)
39 slides from Takkt's roadshow presentation, March 2015
Slide 1: Roadshow March 2015
ROADSHOW MARCH 2015 TAKKTAG
Slide 2: Agenda
AGENDA BUSINESS MODEL STRATEGY VALUE-BASED FIGURES FINANCIAL YEAR 2014 OUTLOOK 2015 Roadshow presentation | TAKKT AG | March 2015 2
Slide 3: TAKKT at a glance
TAKKT AT A GLANCE • type: Business to Business business • sales channel: multi-channel direct marketing • products: durables/specialties • regional diversification: > 25 countries regions • turnover by region: 55% Europe / 45% North America • number of customers: > 2.5m key facts • number of employe
Slide 4: Clear organizational structure
CLEAR ORGANIZATIONAL STRUCTURE TAKKT AG Business Packaging Specialties Office Equipment Solutions Group Equipment Group Group Group Multi-channel brands Web-focused brands Roadshow presentation | TAKKT AG | March 2015 4
Slide 5: Added value for the customer – beyond pure distribution
ADDED VALUE FOR THE CUSTOMER – BEYOND PURE DISTRIBUTION TAKKT business model serves customer needs for equipment in the most convenient and efficient way vendors TAKKT added values customers High-quality Long large potential product guarantee Advise groups selection periods Custom mid potential made
Slide 6: Multi-brand strategy and efficient customer approach as success factors
MULTI-BRAND STRATEGY AND EFFICIENT CUSTOMER APPROACH AS SUCCESS FACTORS customer sales customer customer customer groups channels demand focus on relationship large customers multi-channel Groups optimising customer procurement brands frequent & lifetime regularly process value mid-sized (loyal) cus
Slide 7: Agenda
AGENDA BUSINESS MODEL STRATEGY VALUE-BASED FIGURES FINANCIAL YEAR 2014 OUTLOOK 2015 Roadshow presentation | TAKKT AG | March 2015 7
Slide 8: Strategic objectives with clearly defined financial targets
STRATEGIC OBJECTIVES WITH CLEARLY DEFINED FINANCIAL TARGETS • Organic growth (Ø 4-5% p.a.) supported by efficiency of direct marketing implementation of strategic initiative DYNAMIC Grow profitably development of web-focused brands • Acquisitions with focus on adding new product ranges, new cu
Slide 9: Evolution of the business models
EVOLUTION OF THE BUSINESS MODELS 2015 2000 web shop, e-procurement, field sales, telesales, product brands, web-focused brands Expansion of e-commerce 1990 MULTI-CHANNEL individual customer contacts, product knowledge Qualified advice 1980 infrastructure, adress selection Optimization of fulfillment
Slide 10: DYNAMIC: Growth and modernization initiative
DYNAMIC: GROWTH AND MODERNIZATION INITIATIVE DYNAMIC Procurement Marketing IT Sales • Expansion of product • Strengthening of • Modernization of range e-commerce IT-infrastructure • Increased share of • Additional tele- and private label sales fieldsales activities • Increase of direct imports Goa
Slide 11: DYNAMIC: Increase the share of private label sales
DYNAMIC: INCREASE THE SHARE OF PRIVATE LABEL SALES • Ratioform rounds off its product range with a new entry level offer and the best value for money • Interesting products for every customer group • Optimized product recommendations and personal advice Attractive in-house product lines to ensure lo
Slide 12: DYNAMIC: Increase the share of direct imports
DYNAMIC: INCREASE THE SHARE OF DIRECT IMPORTS • Cost savings in purchasing • High quality products at attractive prices • Increase in sourcing know-how – for example with the opening of HUBERT‘s purchasing office in Hong Kong The procurement process will be leaner, more direct and faster Roadshow pr
Slide 13: DYNAMIC: Virtual showroom
DYNAMIC: VIRTUAL SHOWROOM • Personalized purchasing experience for our online customers • Interactive product presentation in the web shop • Over 1,000 office furniture items come alive virtually in a 1,400-square meter showroom The bridge from store-based retail to web shop Roadshow presentation |
Slide 14: DYNAMIC: New ERP system
DYNAMIC: NEW ERP SYSTEM • Optimized business processes on a broadened data basis • Integration of information flows across all sales channels • More effective orientation towards the customer‘s needs Integrated information to the customer‘s advantage Roadshow presentation | TAKKT AG | March 2015 14
Slide 15: DYNAMIC: Specific goals have been set
DYNAMIC: SPECIFIC GOALS HAVE BEEN SET KPIs Objectives 2016 2014 Share of new products in order intake 9.0% 20-25 percent Procure- Share of private labels in order intake 14.7% 20-25 percent ment Share of direct imports in purchase volume 10.0% 10-15 percent Share of web-only products in entire 42.0%
Slide 16: Adding value to the portfolio: acquisitions and divestments
ADDING VALUE TO THE PORTFOLIO: ACQUISITIONS AND DIVESTMENTS Acquisition criteria Divestment criteria • mainly medium-sized companies (and also • strategic fit smaller ones for add-on acquisitions) • growth potential • often family owned • potential to fulfill profitability expectations • high EBITDA
Slide 17: Post-Up Stand acquisition in March 2015
POST-UP STAND ACQUISITION IN MARCH 2015 Post-Up Stand 2014: • turnover of USD 16 million, 75% online • >15% EBITDA margin • approx. 200 products (post-up stands, advertising banners, table top displays) • 64 employees core competencies: • customized printed products • 48 hour turnaround time • cost
Slide 18: Structure of purchase price (including earn-out)
STRUCTURE OF PURCHASE PRICE (INCLUDING EARN-OUT) • Fixed purchase price installments of in total USD 16.5m • Variable earn-out payable in 2018 and dependent on cumulated profit contribution (gross profit less advertising costs) in the years 2015 to 2017 (max. of USD 12 m) Turnover development (m
Slide 19: Diversification of regions, customer groups & product ranges
DIVERSIFICATION OF REGIONS, CUSTOMER GROUPS & PRODUCT RANGES Increase of US-American Low dependency from single Broad product portfolio – share in turnover customer groups multi-purpose use Regions Customer groups Product ranges 3.0% 44.0% 9.9% 32.7% 11.5% 2.3% Others USA Others Manufacturing Mercha
Slide 20: Sustainability: goal of being a role model in our industry by 2016
SUSTAINABILITY: GOAL OF BEING A ROLE MODEL IN OUR INDUSTRY BY 2016 Examples: Paper use per EUR million turnover 2011 34.9 t - 40% 2014 20.8 t CO2-emissions per kg paper advertising materials 2011 2.35 kg - 23% 2014 1.80 kg • Sustainability update informs about the current status of the sustainabilit
Slide 21: Improved sustainability indicators
IMPROVED SUSTAINABILITY INDICATORS Focus area Key figure 2011 2012 2013 2014 Pilot project Share of certified suppliers 1.9% launched Share of purchase volume from certified Pilot project Sourcing 23.7% suppliers launched Percentage of turnover from sustainable 1.7% 3.1% 4.4% 6.6% product ranges Pap
Slide 22: Agenda
AGENDA BUSINESS MODEL STRATEGY VALUE-BASED FIGURES FINANCIAL YEAR 2014 OUTLOOK 2015 Roadshow presentation | TAKKT AG | March 2015 22
Slide 23: Good development of key financial indicators
GOOD DEVELOPMENT OF KEY FINANCIAL INDICATORS 2010 2011 2012 2013 2014 Organic turnover development in percent 4.8 7.3 -2.8 -2.6 5.5 Number of orders in thousand 1,746 1,780 2,016 2,171 2,182 Average order value in EUR 462 479 465 440 450 Gross margin in percent 42.9 43.3 43.3 43.6 42.6 EBITDA margin
Slide 24: Improved value-based management figures
IMPROVED VALUE-BASED MANAGEMENT FIGURES Return on capital employed in % TAKKT value added in EUR million 23.0% 43.3* 18.1% 40.7 38.3* 14.8% 14.4% 32.4 12.5% 26.5* 18.0* 18.9 12.7* 8.7 9.7 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 * Adjusted for amortization of intangible assets resulting fro
Slide 25: Stable dividend development
STABLE DIVIDEND DEVELOPMENT Dividend per share in EUR 0.85 0.53 0.32 0.32 0.32 0.32 0.32 2010 2011 2012 2013 2014* *dividend proposal per share for the financial year 2014 Roadshow presentation | TAKKT AG | March 2015 25
Slide 26: Share performance in the last 15 months
SHARE PERFORMANCE IN THE LAST 15 MONTHS EUR 18 Regional distribution of free-float 17 9% 14% 16 Others UK 15 31% 31.12. 20% 14 Benelux 2014 USA 13 7% 19% France Germany 12 11 10 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 Roadshow presentation | TAKKT AG | March 2015 26
Slide 27: Agenda
AGENDA BUSINESS MODEL STRATEGY VALUE-BASED FIGURES FINANCIAL YEAR 2014 OUTLOOK 2015 Roadshow presentation | TAKKT AG | March 2015 27
Slide 28: Organic growth exceeds original guidance of three to five percent
ORGANIC GROWTH EXCEEDS ORIGINAL GUIDANCE OF THREE TO FIVE PERCENT Turnover TAKKT Group in EUR million 952.5 980.4 939.9 852.2 801.6 2010 2011 2012 2013 2014 +2.9% growth organic: +5.5% growth Roadshow presentation | TAKKT AG | March 2015 28
Slide 29: Strong growth impulse from the US, good development in Europe
STRONG GROWTH IMPULSE FROM THE US, GOOD DEVELOPMENT IN EUROPE Turnover in EUR million TAKKT EUROPE TAKKT AMERICA 525.4 519.8 460.9 427.5 2013 2014 2013 2014 -1.1% decline +7.8% growth organic: +3.3% growth organic: +8.1% growth Roadshow presentation | TAKKT AG | March 2015 29
Slide 30: Particularly strong second half in the USA
PARTICULARLY STRONG SECOND HALF IN THE USA Organic growth Q1/14 Q2/14 Q3/14 Q4/14 2014 TAKKT Group +4.9% +4.0% +7.2% +5.9% +5.5% TAKKT EUROPE +6.1% -0.1% +4.8% +2.5% +3.3% TAKKT AMERICA +3.3% +8.8% +9.4% +10.3% +8.1% Roadshow presentation | TAKKT AG | March 2015 30
Slide 31: E-commerce continues to gain importance
E-COMMERCE CONTINUES TO GAIN IMPORTANCE Share of e-commerce in order intake in % Split between e-commerce channels 7.4% 30.1% 28.0% e-procurement 25.7% 21.3% 19.4% 2014 8.8% 13.9% 2010 2011 2012 2013 2014 web-focused multi-channel Roadshow presentation | TAKKT AG | March 2015 31
Slide 32: Profitability in upper range of target corridor
PROFITABILITY IN UPPER RANGE OF TARGET CORRIDOR EBITDA TAKKT Group in EUR million and margin in % 133.7 137.3 121.0 122.8 100.6 14.2% 14.2% 14.0% 12.6% 12.9% 2010 2011 2012 2013 2014 • Previous year was adversely affected by one-offs of roughly EUR 12 million. Roadshow presentation | TAKKT AG | Marc
Slide 33: Increased profitability in both segments
INCREASED PROFITABILITY IN BOTH SEGMENTS EBITDA in EUR million and margin in % TAKKT EUROPE TAKKT AMERICA 99.1 89.3 19.1% 17.0% 47.6 42.2 9.9% 10.3% 2013 2014 2013 2014 Roadshow presentation | TAKKT AG | March 2015 33
Slide 34: Cash flow benefits from a good business development
CASH FLOW BENEFITS FROM A GOOD BUSINESS DEVELOPMENT in EUR million 2010 2011 2012 2013 2014 TAKKT cash flow 70.3 87.8 92.7 83.4 98.7 Change of net working capital as well as 18.1 -8.4 10.6 -5.7 2.5 other adjustments Cash flow from operating activities 88.4 79.4 103.3 77.7 101.2 Capital expenditure i
Slide 35: Agenda
AGENDA BUSINESS MODEL STRATEGY VALUE-BASED FIGURES FINANCIAL YEAR 2014 OUTLOOK 2015 Roadshow presentation | TAKKT AG | March 2015 35
Slide 36: Outlook
OUTLOOK weaker stronger main scenario economy economy higher, unchanged or unexpectedly GDP growth rates compared to 2014 especially weaker strong in the US Organic turnover growth lower 3 - 5% higher • Stable or only slightly declining gross profit margins at the segment level. • In the main scenar
Slide 37: Why invest in TAKKT?
WHY INVEST IN TAKKT? • extension of multi-channel direct marketing activities and development of web-focused sustainable brands growth potential • duplicable system business • entering new markets / product groups • product diversification balanced • independence from customers and risk portfolio su
Slide 38: Thank you for your kind attention
Thank you for your kind attention Roadshow presentation | TAKKT AG | March 2015 38
Slide 39: Contact details TAKKT Investor Relations
CONTACT DETAILS TAKKT INVESTOR RELATIONS TAKKT AG Presselstrasse 12 Corporate Finance/Investor Relations 70191 Stuttgart Dr Christian Warns Germany Phone: +49 711 3465-80 Phone: +49 711 3465-8222 Fax: +49 711 3465-8100 Fax: +49 711 3465-8104 e-mail: [email protected] e-mail: [email protected]