Takkt Ag · XETR:TTK
Takkt — Investor Presentation (February 2024)
37 slides from Takkt's investor presentation, Feb 21, 2024
Slide 1: Investor Presentation
TAKIT Investor Presentation
Slide 2: Story highlights
Story highlights TAKKT’s Vision: Bringing new Worlds of Work to life B2B equipment market with ongoing huge growth opportunities due to trend shifts Strategy based on three pillars: Growth, OneTAKKT and Caring Committed to environmental resources, people and customer success Strong cash generation,
Slide 3: What we do: business model, organization, market position
WHAT WE DO: BUSINESS MODEL, ORGANIZATION, MARKET POSITION
Slide 4: TAKKT at a glance
TAKKT at a glance Business model Sales Employees B2B distance selling EURm 1,240 2,500 for equipment Market cap Earnings Cash Free TAKKT cash EURm ~900 EBITDA EURm 112 flow EURm 92 4
Slide 5: Business model
Business model Leading distance seller for Industrial & Packaging business equipment E-Commerce focus supported by key accounters and print marketing Office Furniture & Displays Multi-brand approach to serve the market through three customer- oriented divisions FoodService Goods involved typically b
Slide 6: Value add beyond distribution
Value add beyond distribution Vendors B2B customers Pre-selection of products to offer an attractive, broad and curated product portfolio (One-stop shops for three different worlds of work) Strong focus on sustainable products (low carbon footprint, recycled material, ..) Product expertise and perso
Slide 7: Organization along Worlds of Work
Organization along 3 Worlds of Work Manufacturing, Warehouse Service Industry HoReCa 7
Slide 8: Addressable market is > EUR 110bn
Addressable market is > EUR 110bn Foodservice Display Market: > EUR Large addressable market Growth in line with or above 50bn Foodservice GDP Canad Fragmented supplier structure a Fragmented competition Office Industrial Fragmented customer segments Office > EUR Market volume 60bn Room to grow for
Slide 9: Current market share around 1%
Current market share around 1% Display FoodService TAKKT EUR Strong presence in all markets (top 10 position in each) 530m Office FoodService Large assortment Canad Strong and long-term a relationship with customers Office Depth of suppliers globally, strong long-term relationships Packaging EUR 710
Slide 10: What drives us: our vision
WHAT DRIVES US: OUR VISION Bringing new Worlds of Work to life
Slide 11: Deliver on evolving customer needs
Deliver on evolving customer needs MEGATRENDS TAKKT’S OFFER Blue collar/ white collar Full time/ WHO WORKS part time Temps/ Gig workers WORKSPACE TALENT SCARCITY Demographic change SOLUTIONS New HEALTH & WELLBEING HEALTH/WELLBEING Worlds HOW TO Remote PRODUCTS WORK of Work Collaborative workspaces A
Slide 12: Vision: New products and solutions
Vision: New products and solutions SUSTAINABILITY HEALTH SERVICE/SOLUTIONS •Lorum Ipsum Sustainable solutions: Health & wellbeing products: Workspace solutions: NBF Parker chair Ergonomic workbench Project planning and execution Circular approach: Electrically height-adjustable Individual consultati
Slide 13: How we win: our strategy
HOW WE WIN: OUR STRATEGY Growth, OneTAKKT, Caring
Slide 14: Strategy overview
Strategy overview Growth Cross-selling E-commerce excellence Smart pricing OneTAKKT Integrated organization Three divisions with centralized sales, marketing and category management Scalable and efficient Group functions Integrated tech stack Integrated supply chain Caring Strong customer experience
Slide 15: 2023: Strategy implementation on track
2023: Strategy implementation on track Growth OneTAKKT Caring Relaunch of kaiserkraft Further reduction Very positive customer and integration of FS and integration of tech feedback on sustainable leading to steadily platforms across all enkelfähig products which increasing cross-selling divisions i
Slide 16: Sustainability: Goals and results
Sustainability: Goals and results Sustainability KPI Goal 2025 Result 2022 Share of enkelfähig products of order intake 40% 19.8% Reduction of CO2e emissions compared to base year 2021 -20% -11% (Scope 1 and Scope 2) Share of women in executive 45% 28.9% positions 16
Slide 17: Sustainability: Ratings and awards
Sustainability: Ratings and awards Confirmed score of A after change to Commercial Services and Supplies industry On a Scale from CCC to AAA 57th percentile within the benchmark Significantly lower carbon intensity than the industry average Risk Score improved to 16.8 On a scale from 0 (best) to 100
Slide 18: M&A strategy
M&A strategy Region/market: Focus on Europe and the US Worlds of work: Integration into one of the three divisions (more likely) or Targets build-up of new division for additional WoW (less likely) Financials: Solid financials and high organic growth potential Increase volume to improve economies of
Slide 19: Key topics and preliminary financials FY 2023
KEY TOPICS AND PRELIMINARY FINANCIALS FY 2023
Slide 20: 2023: TAKKT showed resilience
2023: TAKKT showed resilience Challenging environment Weak GDP, geopolitical crisis, low PMIs, inflationary pressure Flexible management approach and focus shift Demand: H1 as expected, H2 much softer Doubled down on GP margin, costs & cash management Achieved adjusted FY 23 forecast Increased GP ma
Slide 21: Key financial topics in Q4
Key financial topics in Q4 Cautious expectations confirmed Stagnation and negative sentiment in by very weak environment Europe, soft markets in the US Continuation of Organic sales decline of 11.3% top-line trend Tight management of gross 1.7%points increase in gross profit margin profit and costs
Slide 22: 2023: TAKKT Group
2023: TAKKT Group Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 132.1 1,336.8 111.8 1,240.0 9.9% 9.0% 2022 2023 2022 2023 Sales decline of 7.2% in a challenging EBITDA was EUR 111.8 (132.1) million, reaching the economic environment after strong growth mid-point of the forecast ra
Slide 23: 2023: Industrial & Packaging
2023: Industrial & Packaging Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 725.0 102.5 672.9 90.6 14.1% 13.5% 2022 2023 2022 2023 Sales decrease of 7.2% with slightly EBITDA was EUR 90.6 (102.5) million, EBITDA negative currency effects of 0.3% margin at 13.5% (14.1%) Organic sale
Slide 24: 2023: Office Furniture & Displays
2023: Office Furniture & Displays Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 324.7 31.3 281.6 26.4 9.6% 9.4% 2022 2023 2022 2023 Sales decrease of 13.3% with negative EBITDA was at EUR 26.4 (31.3) million, EBITDA currency effects of 2.5% margin virtually unchanged at 9.4% (9.6%
Slide 25: 2023: FoodService
2023: FoodService Sales (in EUR million) EBITDA (in EUR million) and margin (in %) 287.1 285.6 19.7 15.4 6.9% 5.4% 2022 2023 2022 2023 Sales virtually flat with minus 0.5% decline due to EBITDA was EUR 15.4 (19.7) million, EBITDA negative currency effects of 2.8% margin at 5.4% (6.9%) Organic sales
Slide 26: Cash flow generation
Cash flow generation in EUR million 2022 2023 TAKKT cash flow 115.1 86.0 Change in net working capital as well • Substantial reduction in NWC after -30.7 +20.4 as other adjustments increase in 2022 due to cash release of EUR 35.2 million from inventories. Cash flow from operating activities 84.4 106
Slide 27: Balance sheet
Balance sheet Net financial liabilities (of which lease liabilities) (in EUR million) Equity ratio (in %) 62.4% 63.8% 116.7 106.0 63.4 57.7 12/31/2022 12/31/2023 12/31/2022 12/31/2023 Decrease in net financial liabilities despite Equity ratio above the target corridor of 30 payment of special divide
Slide 28: First glance into 2024
FIRST GLANCE INTO 2024 15.02.2024
Slide 29: First glance into 2024
First glance into 2024 Economic environment Current expectations TAKKT’s priorities Political and economic First half of the year will Continue with focus on gross uncertainty continues remain challenging profit margin, cost management and cash generation Europe and especially Trend change not yet i
Slide 30: TAKKT share and investment thesis
TAKKT SHARE AND INVESTMENT THESIS
Slide 31: Information about the TAKKT share
Information about the TAKKT share Total Shareholder Return: TAKKT and indices Shareholder structure 1.3% Franz Haniel & Cie. 150 33.7% Free float 125 65.0% Treasury shares 100 Analyst recommendations 75 1 Buy 50 Hold 2 Sell 25 TAKKT DAX MDAX SDAX Average price target of EUR 14.1 31
Slide 32: Dividend proposal
Dividend proposal Share buyback Prolongation of share buyback program with a total volume of up to EUR 25 million until the end of December 2024 To date, 870 thousand shares repurchased for EUR 11.3 million Dividend policy Dividend proposal TAKKT is committed to pay out at least a base Management pr
Slide 33: Investment thesis
Investment thesis Addressable market >EUR 100bn Vision: Bringing new worlds of work to life lower e-commerce B2B penetration Strategy: Growth – OneTAKKT – Caring Excellent position to grow in an attractive and Clear vision & growth- fragmented market oriented strategy Good execution Strong balance s
Slide 34: Appendix
LT APPENDIX
Slide 35: Organic sales growth
Organic sales growth Organic growth 2022 Q1/23 Q2/23 Q3/23 Q4/23 2023 TAKKT Group 7.5% -3.3% -1.8% -7.1% -11.3% -5.9% Industrial & 3.7% -4.2% -4.3% -7.5% -11.5% -6.9% Packaging Office Furniture & 11.3% -5.8% -10.3% -12.2% -14.7% -10.8% Displays FoodService 14.9% 2.5% 14.9% -0.6% -6.8% 2.3% 35 15.02.
Slide 36: Structure of sales development
Structure of sales development Q1/23 Q2/23 Q3/23 Q4/23 2023 TAKKT Group in EUR -2.0% -2.8% -10.6% -13.3% -7.2% organic -3.3% -1.8% -7.1% -11.3% -5.9% currency 1.3% -1.0% -3.5% -2.0% -1.3% acquisition/divestment - - - - - Industrial & Packaging in EUR -5.1% -4.6% -7.8% -11.3% -7.2% organic -4.2% -4.3
Slide 37: TAKKT investor relations
TAKKT investor relations IR Contact Upcoming Events Benjamin Bühler Phone: +49 711 3465-8223 March 28, Annual report and analysts’ Fax: +49 711 3465-8100 conference e-mail: [email protected] April 25, Quarterly statement 1/2024 www.takkt.com TAKKT AG is headquartered in Stuttgart, Germany. May 17, S