CM CIC Market Solutions Forum May 20, 2021 - TAKKT AG
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CM CIC Market Solutions Forum May 20, 2021
Agenda
1. Organization and business models
2. Vision
3. Strategy
4. Financials first quarter 2021
5. Outlook for 2021
6. TAKKT dividend policy, share and equity story
TAKKT AG May 2021 CM CIC Market Solutions Forum 2
Organization and business models TAKKT AG May 2021 CM CIC Market Solutions Forum 3
TAKKT Group specializes in B2B distance selling for business equipment TAKKT AG May 2021 CM CIC Market Solutions Forum 4
TAKKT Group structure TAKKT AG May 2021 CM CIC Market Solutions Forum 5
Our business units are product specialists and sell equipment and specialties with an
overall average order value of 425 EUR
Foodservice Equipment &
Omnichannel Commerce Web-focused Commerce
Supplies
Kaiser+
ratioform NBF Newport D2G Hubert Central
Kraft
plant, packaging office new business display merchandising restaurant
warehouse and solutions equipment models and products and food equipment
office start-ups equipment
equipment
TAKKT AG May 2021 CM CIC Market Solutions Forum 6Our segments are positioned with a clear focus on two distinct customer types
Typical customers Customer & segment characteristics
Omnichannel Commerce → Value add service
Customer requirements: Omnichannel positioning:
• More complex requirements • Comprehensive range of services
• Very efficient procurement process • Personalized purchasing advice
Corporates • Excellent product quality and • Carefully curated product range
comprehensive service • Customer-specific solutions
• Looking for reliable and established • Mix of marketing channels
partner for procurement (online, print, sales reps)
Small- and
medium-sized → High share of business with existing customers
enterprises
Web-focused Commerce → Value for money
Customer requirements: Web-focused positioning:
• Less complex requirements • Entry-level priced products
• More price-conscious • Quick and easy digital searching
Businesses • Entry level products are often and ordering process
with less complex needs sufficient • Focus on online marketing
→ High share of new customer business
TAKKT AG May 2021 CM CIC Market Solutions Forum 7Vision TAKKT AG May 2021 CM CIC Market Solutions Forum 8
TAKKT AG May 2021 CM CIC Market Solutions Forum 9
TAKKT AG May 2021 CM CIC Market Solutions Forum 10
Strategy TAKKT AG May 2021 CM CIC Market Solutions Forum 11
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 May 2021 CM CIC Market Solutions Forum 12Grow 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 May 2021 CM CIC Market Solutions Forum 13Grow profitably:
Distance sellers gradually gaining market share
omnichannel models TAKKT companies either run a
omnichannel or a web-focused
web-focused models model
70-90% 10-30%
TAKKT companies partially use
platform models
marketplaces as an additional sales
(marketplaces)
channel
Local businesses Distance sellers
TAKKT AG May 2021 CM CIC Market Solutions Forum 14Grow profitably:
M&A is an essential part of TAKKT´s growth story and focuses on two areas
Strengthening of existing businesses Expansion of the value proposition
• Looking for additional product specialists in • Acquisition of smaller companies offering products
attractive niche markets for an integration into or services that expand the existing range of
one of the two segments products or services for customers
• Exploit synergies and improve the Group’s • For example solutions for manufacturing, refining or
market position adapting products and enhanced service offerings
• Primary goal is to have a positive development of • Primary goal is to improve the customer experience
the business-specific value and growth drivers before, during or after the sale
New organizational model with stronger integration of functions at the segment level (i.e. logistics, purchasing, IT) will
lead to increased benefits for acquired companies and higher value generation than before
TAKKT AG May 2021 CM CIC Market Solutions Forum 15Transform 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 May 2021 CM CIC Market Solutions Forum 16Transform the business model:
Continue to push for above-average organic e-commerce growth
Organic e-commerce growth (in percent) Share of e-commerce in order intake (in percent)
11.6%
10.6%
60.0%
7.9% 52.1% 55.0%
43.9% 46.8%
2.0%
-3.6%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
TAKKT AG May 2021 CM CIC Market Solutions Forum 17Act 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 May 2021 CM CIC Market Solutions Forum 18Financials first quarter 2021 TAKKT AG May 2021 CM CIC Market Solutions Forum 19
TAKKT showed good growth towards the end of the first quarter
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
285.0 26.5
266.4 24.3
8.5% 9.9%
Q1/20 Q1/21 Q1/20 Q1/21
• Sales decrease by 6.5% with negative effects from currency • Earnings in Q1/20 negatively impacted by one-time expenses
fluctuations (-3.2%), primarily from a weaker US-Dollar for the implementation of TAKKT 4.0 (EUR 7.6 million)
• Organic sales decline of 3.3% • EBITDA was EUR 26.5 (24.3) millions, EBITDA margin at 9.9%
• Order intake with a better development than sales and (8.5%)
showing organic growth in Q1
• Performance of the individual business units continued to
vary due to the different impact of the pandemic
TAKKT AG May 2021 CM CIC Market Solutions Forum 20Organic development at Omnichannel Commerce almost flat
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
26.5
175.1 169.8
21.0
15.6%
12.0%
Q1/20 Q1/21 Q1/20 Q1/21
• Sales decrease by 3.1%; negative currency effects of 2.1% • In Q1/20, one-time expenses for TAKKT 4.0 had a negative
• Organic sales development at minus 1.0% only slightly impact on earnings (EUR 7.6 million)
negative • EBITDA increased to EUR 26.5 (21.0) millions, EBITDA margin
• ratioform with a strong performance and low double-digit at 15.6% (12.0%)
organic growth, KAISER+KRAFT and NBF still slightly
negative with a low single-digit decline
TAKKT AG May 2021 CM CIC Market Solutions Forum 21Very different development of business units in Web-focused Commerce continues
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
62.9 4.3
57.4
6.9%
1.3
2.2%
Q1/20 Q1/21 Q1/20 Q1/21
• Sales decrease by 8.8% with negative effects from currency • Decline in sales and a lower gross profit margin at D2G
fluctuations (-3.2%) weighed on earnings
• Organic sales decline of 5.6%, very different development of • EBITDA was EUR 1.3 (4.3) millions, EBITDA margin at 2.2%
the two business units continued (6.9%)
• Newport continues to show strong growth with double-digit
organic increase, D2G with significant double-digit organic
decline
TAKKT AG May 2021 CM CIC Market Solutions Forum 22Market environment in Foodservice Equipment & Supplies still impacted by the pandemic
Sales (in EUR million) EBITDA (in EUR million) and margin (in %)
2.7
48.1 2.4
40.3
5.6% 6.1%
Q1/20 Q1/21 Q1/20 Q1/21
• Sales decrease by 16.2% with negative currency effects from • Lower sales level results in slightly lower earnings
a weaker US-Dollar (-7.5%) • EBITDA was EUR 2.4 (2.7) millions, EBITDA margin at 6.1%
• Organic sales decline of 8.7%, business environment in the (5.6%)
foodservice sector remained challenging due to the
pandemic
• Central with low single-digit organic decline, Hubert with
double-digit organic decline
TAKKT AG May 2021 CM CIC Market Solutions Forum 23TAKKT cash flow on the same level as last year
TAKKT cash flow (in EUR million) and margin (in %) in EUR million Q1/20 Q1/21
profit 9.3 11.9
22.1 22.4
+ depreciation +10.0 +9.3
+/- deferred taxes expense/income +0.7 +0.5
+/- other non-cash expenses/income +2.1 +0.7
TAKKT cash flow 22.1 22.4
7.8% 8.4%
in EUR million Q1/20 Q1/21
EBITDA 24.3 26.5
Q1/20 Q1/21 - financial result -1.7 -1.4
- current taxes -2.6 -3.4
+/- other non-cash expenses/income +2.1 +0.7
TAKKT cash flow 22.1 22.4
TAKKT AG May 2021 CM CIC Market Solutions Forum 24Cash flow generation
in EUR million Q1/20 Q1/21
TAKKT cash flow 22.1 22.4
Change in net working capital as well as other
-11.2 +1.6 • Hardly any change in net working capital in
adjustments
Q1/21. Last year, inventories increased by
Cash flow from operating activities 10.9 24.0 around EUR 9 million, in part due to
adjustment of product range to pandemic
Capital expenditure in non-current assets -3.9 -3.0 • Capital expenditure slightly lower than prior
year
Proceeds from disposal of non-current assets +0.3 +0.1
Free TAKKT cash flow
(for acquisitions, payout to shareholders and 7.3 21.1
loan repayments)
TAKKT AG May 2021 CM CIC Market Solutions Forum 25Balance sheet
Net financial liabilities (in EUR million) Equity ratio (in %)
75.4 64.7% 65.4%
56.7
12/31/2020 03/31/2021 12/31/2020 03/31/2021
• Further decrease in net financial liabilities • Equity ratio increased slightly
• Cash and short-term deposits of EUR 24.0 million
TAKKT AG May 2021 CM CIC Market Solutions Forum 26Outlook for 2021 TAKKT AG May 2021 CM CIC Market Solutions Forum 27
Organic sales growth
Organic growth Q1/20 Q2/20 Q3/20 Q4/20 2020 Q1/21
TAKKT Group -10.1% -21.2% -12.2% -3.6% -11.8% -3.3%
Omnichannel Commerce* -10.3% -27.9% -14.6% -1.6% -13.6% -1.0%
Web-focused Commerce -3.8% -9.2% -6.5% -5.6% -6.3% -5.6%
Foodservice Equipment &
-15.9% -13.1% -11.1% -8.3% -12.2% -8.7%
Supplies*
* New segment structure implemented in 2021. The table shows the pro forma figures for 2020 in the new structure.
TAKKT AG May 2021 CM CIC Market Solutions Forum 28Outlook: 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
• Substantial recovery expected with • Development of segment structures
an increase in vaccinations in all in OCC and WFC. In both segments,
target markets. US will most likely IT infrastructure, logistics and data & EBITDA between
show a faster pace than Europe. analytics will be centrally EUR 100 and 120 million
coordinated and managed.
TAKKT AG May 2021 CM CIC Market Solutions Forum 29TAKKT dividend policy, share and
equity story
TAKKT AG May 2021 CM CIC Market Solutions Forum 30Dividend policy: Reliable and consistent payouts to shareholders
Dividend policy Latest dividend
• Payout ratio within a corridor of 35 to 45 percent of the profit Dividend payment of EUR 0.55 for 2020 plus
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
equity ratio is high and funds cannot be reinvested.
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
TAKKT AG May 2021 CM CIC Market Solutions Forum 31TAKKT 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 2
Buy
25 Hold
6
TAKKT DAX MDAX SDAX
Average price target of EUR 15.0
TAKKT AG May 2021 CM CIC Market Solutions Forum 32TAKKT 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 May 2021 CM CIC Market Solutions Forum 33TAKKT investor relations
IR Contact Upcoming Events
Michael Loch / Benjamin Bühler June
Phone: +49 711 3465-8222 / -8223 8 Erste Group Consumer Conference (virtual)
Fax: +49 711 3465-8100
e-mail: investor@takkt.de July
29 Earnings Call Q2
www.takkt.com
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 May Jul Sep Nov Jan Mar May
TAKKT AG May 2021 CM CIC Market Solutions Forum 34Appendix:
Key performance figures and
indicators
TAKKT AG May 2021 CM CIC Market Solutions Forum 35Overview 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 May 2021 CM CIC Market Solutions Forum 36Financial 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 May 2021 CM CIC Market Solutions Forum 37Free 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 May 2021 CM CIC Market Solutions Forum 38Product 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 May 2021 CM CIC Market Solutions Forum 39Digital 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 May 2021 CM CIC Market Solutions Forum 40TAKKT 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 May 2021 CM CIC Market Solutions Forum 41
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 May 2021 CM CIC Market Solutions Forum 42Internal 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 May 2021 CM CIC Market Solutions Forum 43Sustainability 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 May 2021 CM CIC Market Solutions Forum 44You can also read
