Corporate presentation

TAKKT AG

Agenda

1. Business model

2. TAKKT 4.0

3. Strategy

4. Key performance figures and indicators

5. Outlook 2019

6. TAKKT dividend policy, share and equity story

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TAKKT AG

Business model

February 2020 3

TAKKT AG

TAKKT is a group of B2B direct marketing specialists

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TAKKT AG

From 2020 onwards, TAKKT will start to change the organization (TAKKT 4.0), focusing on two business models

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TAKKT AG

Web-focused Commerce

D2GNewport

Omnichannel Commerce

NBF

Hubert* Central*

Kaiser+Kraft

ratioform

* Exploring strategic options for Hubert and Central

TAKKT AG

office equipment

NBF

Our business units are product specialists and sell equipment and specialties with an overall average order value of 450 EUR

Kaiser+Kraft

plant, warehouse and

office equipment

packaging solutions

ratioform

restaurant equipment

Central

merchandising and food

equipment

Hubert

Omnichannel Commerce Web-focused Commerce

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Newport

new business models and

start-ups

D2G

displayproducts

TAKKT AG February 2020 7

Fragmented market environment offers good growth potential

TAKKT companies either run an omnichannel or a web-focusedbusiness model

TAKKT companies partially use marketplaces as an additional sales channel

platform economics business models (marketplaces)

omnichannelbusiness models

web-focusedbusiness models70-90% 10-30%

Store-based businesses Distance-selling businesses

TAKKT AG

Our customer types mainly differ between the quality- and service-oriented versus the more price-conscious business customer

Typical customers Characteristics Channels

• Quality- and service-oriented customer with focus on efficiency of procurement process (value add service)

• Frequent and regular demand

• Customer lifetime value (loyal)

• More price-conscious (value for money)

• Less frequent, irregular demand

• Transaction-oriented and less loyal customer

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Businesses with less complex needs

Small- and medium-sized

enterprises

Corporates

Om

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We

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WEB

WEB

SALES REPS

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TAKKT 4.0

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TAKKT AG February 2020 10

New organizational approach to provide the basis for additional growth

• While showing above-average profitability, TAKKT has grown better than the market over the last two years, but in some cases fell short of its own growth expectations and the performance of stock-listed peers

• The current organizational set-up has reachedits limits. We have lost speed through theparallel management of diverse stand-alonebusiness models. The dynamic marketenvironment requires quick decision-makingand a clear focus

• Operational excellence needs to be improved in all our businesses

Situation TAKKT 4.0

New organizational approach based on 3 elements:

• Focusing with two business models on two customer types to reduce complexity and best serve the different customer needs

• Transforming the organization to allocate management responsibilities and functions at the relevant level, to create room for entrepreneurial spirit. Acquisitions can be integrated more easily within the future set-up

• Strengthening operational excellence to intensify the implementation of ‘best practice’ approaches and continuous improvement

TAKKT AG February 2020 11

Focusing with two business models on two customer types

• TAKKT will focus on two business models, Omnichannel and Web-focused Commerce

• Omnichannel Commerce addresses with its multiple touchpoints and broad service offerings via online channels, key account managers and catalogs B2B customers with complex needs

• Web-focused Commerce focuses its offerings primarily via online channels on the less complex needs of the more transactional and price-conscious B2B customer

• This reduces complexity in the Group and leads to a more consistent positioning for the specific needs of 2 different customer types (value-add service versus best-value for money)

• The 2 customer types are best addressed with distinct and scalable business models with different speed, separate management and different working cultures

→ New segmentation will start in 2020

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Omnichannel Commerce

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Focusing on 2 business models in order to reduce complexity in the Group: consistent positioning for the needs of 2 different customer types

TAKKT until 2019 TAKKT tomorrow

Kaiser+Kraftgroup

ratio-formgroup

New-port

group

D2Ggroup

Hubert group

NBFgroup

Central group

TAKKT EUROPE TAKKT AMERICA

TAKKT AG

Web-focused Commerce

TAKKT AG

positioningKaiser+

Kraftratio-form

NBFNew-port

D2G

Portfolio of individual businesses2 segments and 7 divisions

Hubert* Central*

* Exploring strategic options for Hubert und Central

TAKKT AG February 2020 13

Transforming the organization

• Re-allocation of responsibilities accross three levels (business, segment, Group) with strong focuson functional organization

• Individual businesses dedicate all resources to customer-centric activities

• Segments integrate business model specific functions that ensure highly professional and efficient operations through implementation of best practice or bundling, hence making it easier to scale

• Segments foster cultural change

• Group level is responsible for functional activities that do not thwart speed of segment and which can be best realized on Group level

• Within TAKKT´s management board there will be one dedicated member for the management of the Omnichannel Commerce segment and one dedicated member for the Web-focused Commerce segment

• Segments are empowered to make all operational decisions

• Segments are the base for additional acquisitions in order to strengthen the different market positions further

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Transforming the organization: Management Board responsibilities

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Omnichannel Commerce segment

Web-focused Commerce segment

TAKKT AG

Heiko HegweinBoard Member, Head of

N.N.Board Member, Head of

Felix ZimmermannCEO

Claude TomaszewskiCFO

Groupfunctions

Groupfunctions

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Strengthening operational excellence

• Development of new management and steering methods to drive operational excellence

• Hiring of operational excellence experts, building an operational excellence network

• The allocation of core competencies on segment level creates higher efficiency, e.g. quicker learning curves, higher degree of integration, etc.

3

TAKKT AG February 2020 16

Benefits of TAKKT 4.0

• Stronger and sharper market positioning as one of the market leading Omnichannel- and Web-focused businesses

• Scalable organization with organic growth rates that are higher than those of the comparable markets and similar to capital market peers

• Focused M&A activities will support additional growth for both segments

Accelerated growth Stronger market position Faster decision making

• Give both segments operational independence

• Empowerment on the relevant level

• Strengthening of success-critical competencies

• Higher degree of integration within both segments

• Clearer focus of the management capacities

→ TAKKT 4.0 creates the basis to unlock additional growth potential

TAKKT AG February 2020 17

TAKKT 4.0 builds on previous initiatives Dynamic and Digital Transformation

Dynamic Digital Transformation TAKKT 4.0

• Modernization- and Growth-initiative• Integrated multi-channel approach• Expansion of web-focused brands• Push to expand private label products

and direct imports

• Focusing on customer centricity• Transforming the organization into

„digital first“• Digital Agenda with more than 100

measures to digitalize the corebusiness

• Developing new business models foryounger, fast-growing business models(Newport)

• Focusing with 2 business models on 2 customer types

• Re-allocation of responsibilities withstrong focus on functional organization

• Strengthening operational excellence

2013 – 2016 2017 – 2020 2020 – 2023

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Strategy

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Four strategic goals

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Grow profitably

Organic growth(3-5% p.a. on average)

• Attractive markets• E-commerce growth rates above

average market growth

Growth through acquisitions(around 5% p.a. on average)

• Expansion of the customer valueproposition

• Strengthening existing businessmodels

Profitability(EBITDA margin between 12 and 16%)

• Balance between growth and profitability

• Investments of EUR 50 million by 2020

• Sustainable organizational transformation

Digitalize the core business

• Regional diversification• Diversified share of sales with

various customer groups• Balanced product range

Diversify risk

• Industry role model for sustainability

• Sustainability as “built-in” rather than an “add-on” in the day-to-day corporate management

Act sustainably

1

2 3 4

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36.5%43.9% 46.8%

52.1% 54.0%

2015 2016 2017 2018 H1/2019

Grow profitably organically: E-commerce growth rates above average market growth

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10.6%

7.9%

11.6%

6.1%

2016 2017 2018 H1/2019

Organic e-commerce growth (in percent) Share of e-commerce in order intake (in percent)

TAKKT AG February 2020 21

Grow profitably through acquisitions: XXLhoreca acquired in May 2019 strengthensNewport division in Europe

• E-commerce business specialized in food service products for hotels, restaurants and catering companies

• Sales of EUR 14m with a double-digit EBITDA margin

• Active as a one-stop shop in the Netherlands, Belgium and France, and now also in Germany and Austria

TAKKT AG

Digitalize the core business: We invest around € 50 million until 2020 for theimplementation of our digital agenda and up to € 20 million for start-up investments

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In EUR million 2016 2017 2018 2019 FC 2020 BUD

Additional personnel expenses (year-on-year) 0.6 3.9 2.9 1 1

Other expenses 1.9 3.8 4.0 3 4

Capital expenditure 1.4 8.7 8.4 6 6

Digital agenda cost (investment view) 3.9 16.5 15.3 10 11

Personnel expenses (cumulative) 0.6 4.4 7.3 8 9

Other expenses 1.9 3.8 4.0 3 4

Digital agenda cost (EBITDA impact) 2.5 8.3 11.3 11 13

TAKKT Start-up investments 1.0 4.5 2.3 3 4

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Diversify risks: Diversification on regions, customers and product ranges

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44%

23%

33%

Regions

North America

Germany

Europe without Germany

2018

Balanced contribution to sales from two continents

28%

16%23%

13%

20%

Customer groups

ManufacturingTradeServicesNon-profit and public organizationsOthers

2018

Low dependency from single customer groups

17%

17%

25%

14%

9%

13%5%

Product ranges

Storage and TransportPlant and EnvironmentOfficeFood and DiningPackaging and ShippingSales Promotion

2018

Broad product portfolio –multi-purpose use

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Act sustainably: Role model for sustainability in our industry

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Direct marketing is more carbon-efficient than local stores

Lower carbon footprint by increased efforts to furtherreduce or compensate for emissions(e.g. carbon-neutral shipping)

Efficiency of the direct marketing model

Compliance with UN Global Compact since 2012

Reporting according to most recent GRI standards at “comprehensive” application level

German CSR Award 2018 in the „Ecological Commitment“ category

Compliance and reporting

Expansion of the supplier evaluation program

Carbon-neutral print advertising

Emissions from parcel and cargo shipmentsto be offset to a large degree

Activities along the value chain

TAKKT has defined non-financial performance indicators and determined goals and

measures to be achieved by 2020

Focus areas entail sourcing, marketing, logistics, resources & climate, employees and society

Ambitious targets for 2020

TAKKT AG

Key performance figures andindicators

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Overview of key performance figures and indicators

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• Organic sales development• Number of orders and average order

value• Gross profit margin• EBITDA margin• TAKKT cash flow margin• Capital expenditure ratio

Financial key figures

• TAKKT value added• Return on Capital Employed (ROCE)

Value-based figures

• Share of private labels in order intake• Share of direct imports in purchase

volume

Product range figures

• Equity ratio• Debt repayment period• Interest cover• Gearing (debt-equity ratio)

Internal covenants

• Launched and completed measures• Newly created positions• Organic e-commerce growth• Share of e-commerce in order intake

Digital agenda indicators

• A total of 16 indicators across the six focus areas sourcing, marketing, logistics, resources & climate, employees and society

Sustainability indicators

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Financial key figures

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in EUR million 2014 2015 2016 2017 2018

Organic sales development in percent 5.5 4.7 5.2 0.4 3.4

Number of orders in thousand 2,182 2,225 2,409 2,465 2,676

Average order value in EUR 450 482 469 458 449

Gross profit margin in percent 42.6 42.6 42.6 42.5 41.5

EBITDA margin in percent 14.0 14.8 15.2 13.5 12.7

TAKKT cash flow margin in percent 10.1 10.7 11.2 9.8 10.2

Capital expenditure ratio in percent 1.4 1.3 1.5 2.1 1.8

TAKKT AG

12.1%13.7%

15.5%17.9%

18.9%

2015 2016 2017 2018 H1/2019

Product range figures

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15.9%18.3%

20.7% 21.7%23.2%

2015 2016 2017 2018 H1/2019

Share of private labels in order intake (in %) Share of direct imports in purchase volume (in %)

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Digital agenda indicators

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26

78

98

2016 2017 2018

Newly created positions

100114

27

44

2017 2018

Launched and completed measures Share of e-commerce in order intake (in percent)

10.6%

7.9%

11.6%

6.1%

2016 2017 2018 H1/2019

Organic e-commerce growth (in percent)

Launched

Completed

36.5%

43.9%46.8%

52.1% 54.0%

2015 2016 2017 2018 H1/2019

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18.928.5

38.3 43.130.4

7.6

8.4

8.57.3

7.226.5

36.9

46.850.4

37.6

2014 2015 2016 2017 2018

14.4%

15.7%16.5%

14.6%14.0%

2014 2015 2016 2017 2018

Value-based figures

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Return on Capital Employed (in %)TAKKT value added (in EUR million)

* Adjusted for amortization of intangible assets resulting from acquisitions and the related tax impact.

*

*

**

*

TAKKT AG

Internal covenants

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2.52.2

1.61.4 1.4

2014 2015 2016 2017 2018

9.8

14.4

18.316.3

23.8

2014 2015 2016 2017 2018

0.6

0.5

0.3

0.2 0.2

2014 2015 2016 2017 2018

43.8%49.1%

55.2%61.2% 60.8%

2014 2015 2016 2017 2018

Equity ratio (in %) Debt repayment period (in years)

Interest cover Gearing

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Sustainability indicators

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Focus area Key figure 2014 2015 2016 2017 2018

Sourcing

Share of sourcing volume from certified suppliers 23.7% 36.3% 40.5% 46.8% 44.2%

Share of direct imports sourcing volume from certified suppliers 39.8% 39.3%

Share of sales from sustainable product ranges 6.6% 9.6% 9.8% 9.3% 9.5%

Marketing

Carbon-neutral web shops for major companies 7 12

Paper consumption print advertising materials per order 5.4kg 4.2kg

Share of carbon-neutral advertising materials 12.1% 19.9%

LogisticsShare of carbon-neutral parcel delivery 91.4% 93.5%

Share of carbon-neutral general cargo delivery 44.7% 48.9%

Resources and Climate

Major companies with carbon footprint 7 10 10 13 13

Major companies with a certified environmental mgmt. system 1 3 3 6 6

Major companies with a certified energy management system 4 4

Energy consumption at GER / US locations per order in megajoule 70.6 66.7

EmployeesShare of retained „digital talents“ 90.9% 89.9%

Share of women in top executive positions 10.5% 12.3%

Society

Percentage of employees who have the opportunity to take a paid leave for local volunteer involvement

18.4% 37.9% 41.2% 65.7% 70.2%

Percentage of employees who took part in local volunteer projects 15.1% 18.0%

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Outlook 2019

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TAKKT AG February 2020 34

Full year outlook: TAKKT expects significantly weaker business in the fourth quarter and reacts with structural cost adjustments

Expectations for Q4/19Economic environment Forecast TAKKT Group

• Decreasing GDP growth projections for 2019 for both Europe and the US

• US with significantly stronger growth rate than Europe

• Trade conflict with negative impact on economic development

• Industry indicators point to difficult environment in Europe, while US markets are more positive

• TAKKT expects the organic sales development to continue to weaken noticeably due to a further decline in the economic and market environment

• In this case, TAKKT has planned structural cost adjustments in addition to the ongoing disciplined cost management, which will lead to one-off expenses in Q4

Organic sales developmentminus 1% to minus 2%

EBITDA marginaround 12%

TAKKT AG

TAKKT dividend policy, share and equity story

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TAKKT AG

TAKKT dividend policy

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Annual payment of base dividendincreased or stable since IPO in 1999

Payout for 2018

EUR 0.85 per share(EUR 0.55 base dividend plus

EUR 0.30 special dividend)

Reliable dividend policy

• Payout ratio within a corridor of 35 to 45 percent of the profit

• TAKKT aims for a consistent and reliable dividend stream

• Willingness to return funds to shareholders via a special dividend when equity ratio is high and funds cannot be reinvested. Payment of special dividend for fiscal years 2008, 2011 and for 2018.

Attractive dividend

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend per share in Euro

0.85

0.32

0.80

0.32 0.32 0.32 0.32

0.50 0.55 0.55

0.85

0.32 0.32

0.55

TAKKT AG

TAKKT equity story at a glance

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38.5% 40.5% 41.4% 43.6% 41.5%

1999 2003 2008 2013 2018

Gross profit margin > 40% (target)

Reliable dividend payouts (in EUR)

11.2% 11.2%14.3% 12.9% 12.7%

1999 2003 2008 2013 2018

EBITDA margin 12-15% (target)

7.4% 7.3%10.4% 8.8% 10.2%

1999 2003 2008 2013 2018

TAKKT cash flow margin > 8% (target)

0.32 0.32 0.50 0.55 0.55 0.85

2013 2014 2015 2016 2017 2018

Dividend EPS

1.34

0.801.00

1.24 1.39 1.47

Group companies are market-leaders in attractive market niches with high operational margins

TAKKT is a worldwide, diversified group of B2B direct-marketing specialists for business equipment

Growth opportunities through organic initiativesas well as upside from opportunistic acquisitions

Business model generates high free cash flows and allows stable dividend payouts

EBITDA margin corridor between 12 and 16%

Stable, long-term oriented shareholder structure with Franz Haniel & Cie. GmbHas majority shareholder

TAKKT AG

TAKKT investor relations

February 2020 38

IR Contact

Christian Warns / Benjamin BühlerPhone: +49 711 3465-8222 / -8223Fax: +49 711 3465-8100e-mail: investor@takkt.de

www.takkt.comTAKKT AG is headquartered in Stuttgart, Germany.

Upcoming Events

February19. Preliminary results 2019

March19. CM-CIC ESN Market Solutions Forum, Paris26. Annual report 2019 and analysts‘ conference