TAKKT (TTK) investor relations material

Business model and market position

• Operates as a leading B2B omnichannel distributor for business equipment in Europe and North America, with over €1 billion in sales and more than 400,000 products across three divisions: Industrial & Packaging, Office Furniture & Displays, and Foodservices.

• Maintains a diversified customer base of over 500,000 active clients from various industries, with sales balanced across e-commerce and offline channels, and regions including Germany, Europe ex-Germany, and North America.

• Addresses both large/medium customers with complex needs and small customers with transactional demand, offering tailored solutions, expert consulting, and sustainable sourcing.

• Sustainability is integral, with 30% of revenue from sustainable products, 38% renewable electricity usage, and a 30% reduction in emissions intensity since 2021.

Strategy and mid-term targets

• Strategic focus on strengthening the core Industrial & Packaging division, reviewing less profitable activities, and enhancing omnichannel customer experiences.

• Growth initiatives include expanding product ranges, improving brand visibility, and leveraging digital channels, with targeted improvements in each division.

• Operational efficiency is being increased through process standardization, automation, and outsourcing, with a new competence center established and 70 FTEs hired.

• Achieved €15m in run rate savings in 2025, with another €15m targeted for 2026 through procurement optimization and further rightsizing.

• Mid-term financial targets include above-market organic sales growth, an adjusted EBITDA margin of 8–10%, and average cash conversion of 50–60%, though full realization is delayed by 1–2 years due to market volatility.

Financial results and guidance 2026

• Q1 2026 sales were €225.7m, down 6.7% organically year-over-year, with adjusted EBITDA margin at 2.4% and free cash flow at €-9.8m.

• All divisions experienced negative organic sales growth in Q1 2026, with Foodservices most impacted at -13.9% and Office Furniture & Displays at -2.1%.

• 2025 full-year sales declined 8.4% to €964.3m, with an adjusted EBITDA margin of 3.8% and positive free cash flow of €10.3m.

• Net financial liabilities increased to €131.5m at year-end 2025, with a solid equity ratio above 50% despite a €125.5m goodwill impairment.

• Guidance for 2026 anticipates gradual improvement, with organic sales development between -7% and +3%, adjusted EBITDA margin of 2–5%, and positive free cash flow.