TAKKT AG — Interim / Quarterly Report 2021

Jul 29, 2021

HALF-YEAR FINANCIAL REPORT 2021 FIRST SIX MONTHS

TO THE SHAREHOLDERS

with an increase in sales of 24.6 percent, TAKKT achieved the strongest organic growth in the company's history in the second quarter. This confirmed the forecast of significant positive growth rates starting from April after the expected slow start in the current fiscal year. Organically, the sales for the second quarter are around two percent below the pre-crisis levels of 2019. Reported sales were negatively affected by currency effects and climbed by 20.5 percent to EUR 291.0 (241.5) million.

The high speed of growth in the second quarter is due both to the comparatively weak baseline of the previous year and to the continuing high demand from customers. As in the first quarter, this demand could have enabled even stronger sales growth. However, due to the high capacity utilization of manufacturers as well as disruptions in the supply chain, delivery times increased. This resulted in a significant increase in order backlogs throughout the first half of the year.

Reported EBITDA is affected by one-time effects. Following specification of sales tax regulation for e-commerce distributors in the US, TAKKT made a provision for risks in the second quarter which reduced earnings by EUR 3.3 million. In the previous year, the Group made a one-time gain of EUR 4.5 million from the sale of real estate. This resulted in a slightly lower EBITDA in the second quarter at EUR 25.4 (27.3) million than in the previous year. The EBITDA margin was 8.7 (11.3) percent. Adjusted for the one-time effects, earnings rose more than sales in percent and were at EUR 28.7 million, which was well above the previous year's figure of EUR 22.8 million.

In the first half of the year, sales increased 5.9 percent to EUR 557.3 (526.4) million. Organic growth came to 9.5 percent. EBITDA in the first half of the year reached EUR 51.8 (51.6) million. In both periods, one-time effects reduced earnings by around EUR 3 million. The EBITDA margin was 9.3 (9.8) percent. Free TAKKT cash flow profited from a one-time cash inflow of EUR 13.4 million from the sale of non-controlling interests. In the previous year, significant inflows resulted from the reduction of net working capital and the sale of real estate. Free TAKKT cash flow of EUR 49.0 (90.9) million was therefore, as expected, significantly lower than in the previous year.

Looking to the second half of the year, TAKKT expects further strong organic growth. Since the comparison basis is increasing significantly, future growth rates will be lower than in the second quarter. The high order backlog may be partially reduced over the course of the year and contribute to additional sales growth. However, it is difficult to gauge how long the current disruptions to the supply chain will last.

TAKKT has passed on the higher prices of many raw materials and the increase in freight costs to customers through price adjustments in the first half of the year. The Group will also pass on future price increases from suppliers. In particular due to the inflation induced higher price level, TAKKT now expects an organic growth rate of between twelve and 17 percent for the full year and thus stronger organic growth than the seven to twelve percent forecast in the annual report. TAKKT passes the higher price level on to customers, but does not currently add any additional profit margin to its own pricing. As a result, no major effects on the absolute amount of gross profit and earnings are to be expected. EBITDA is still expected to be between EUR 100 and 120 million in 2021.

As announced in April, the Supervisory Board of TAKKT AG has appointed Maria Zesch as the company's new CEO. She will take over the position on August 1, 2021, succeeding Felix Zimmermann, who left the Management Board at his own request at the end of the Shareholders' Meeting on May 11, 2021.

TAKKT AG, Management Board

Tobias Flaitz Claude Tomaszewski

KEY FIGURES TAKKT GROUP AND SEGMENTS

	Q2/20	Q2/21	Change in %	H1/20	H1/21	Change in %
TAKKT
Sales in EUR million	241.5	290.9	20.5 (24.6*)	526.4	557.3	5.9 (9.5*)
Gross margin in percent	39.1	40.4		40.6	40.7
EBITDA in EUR million	27.3	25.4	–7.1	51.6	51.8	0.4
EBITDA margin in percent	11.3	8.7		9.8	9.3
EBIT in EUR million	17.4	16.0	–8.2	31.7	33.2	4.7
Profit before tax in EUR million	16.0	18.1	13.2	28.6	33.9	18.6
Profit in EUR million	12.2	14.4	18.0	21.5	26.3	22.4
Earnings per share in EUR	0.19	0.22	18.0	0.33	0.40	22.4
TAKKT cash flow in EUR million	20.4	24.6	20.6	42.5	47.0	10.6
Free TAKKT cash flow in EUR million	83.6	28.0	–66.5	90.9	49.0	–46.1
Omnichannel Commerce
Sales in EUR million	132.5	177.4	33.9 (37.0*)	307.7	347.2	12.9 (15.4*)
EBITDA in EUR million	17.3	26.0	50.3	38.3	52.5	37.0
EBITDA margin in percent	13.0	14.7		12.5	15.1
Web-focused Commerce
Sales in EUR million	57.9	62.6	8.2 (10.0*)	120.7	120.0	-0.6 (1.9*)
EBITDA in EUR million	3.4	0.9	–72.2	7.7	2.2	–71.5
EBITDA margin in percent	5.9	1.5		6.4	1.8
Foodservice Equipment & Supplies
Sales in EUR million	52.0	52.0	0.0 (9.0*)	100.1	92.3	-7.8 (0.5*)
EBITDA in EUR million	10.0	2.5	–75.2	12.7	4.9	–61.3
EBITDA margin in percent	19.3	4.8		12.7	5.3

* organic, i.e. adjusted for currency effects

TAKKT SHARE AND INVESTOR RELATIONS

The international capital markets continued to perform positively overall in the first half of the year. The indexes in Germany initially trended sideways at the start of 2021, after offsetting the significant pandemic-related slump in the second half of 2020. Against the backdrop of the sustained expansionary monetary and fiscal policy in the US and Europe, the indexes continued to rise from March onwards, reaching new all-time highs. By mid-year, the DAX had gained 13.2 percent, while the SDAX rose by 8.5 percent. The TAKKT share price also showed an initial horizontal trend at the beginning of the year. The share saw a significant increase at the end of February with the publication of the preliminary figures and the dividend proposal. In addition to the payment of a dividend for the 2020 fiscal year, the Management and Supervisory Boards also proposed making up for the ordinary dividend suspended in the previous year. By the time of the Shareholders' Meeting on May 11, the TAKKT share had gone up to EUR 14.30 in a positive stock market environment overall. The subsequent price decline as a result of the dividend payment of EUR 1.10 was largely recovered by the end of June. The closing price on June 30 was EUR 14.02 (year-end 2020: EUR 10.66). Including the dividend, the return on the TAKKT share for the first half of 2021 thus came to plus 41.8 percent.

TAKKT's investor relations work focuses on providing information to shareholders, analysts and investors in a transparent and reliable manner. In the first half of 2021, TAKKT participated in several capital market conferences, all of which were held in a virtual format. These included the capital market conferences of ODDO BHF, Kepler Cheuvreux and Unicredit in January, the CIC Market Solutions Forum of Crédit Mutuel in May, and the CEE Consumer Conference of Erste Bank in June. In addition, the company held talks with investors during a virtual roadshow. At the end of March, the Management Board discussed the figures for the previous year as well as the strategy and outlook for 2021 at the analyst conference.

Franz Haniel & Cie GmbH continues to hold just over 50 percent of shares in TAKKT AG . In the regional distribution of free-float shares of institutional investors, the share held by the US increased slightly, while the remaining distribution remained virtually unchanged.

Shareholder structure and regional distribution of free-float shares of institutional investors as of June 30, 2021*

* For regional distribution approximation values, based on Bloomberg data

Performance of the TAKKT share (52-week comparison, SDAX as benchmark)

The TAKKT share is currently being covered by eight analysts. As of July 26, 2021, five analysts recommended buying TAKKT shares and three recommended holding them. The average share price was EUR 15.00.

Recommendations of the analysts as of July 26, 2021

Institution	Analyst	Recommendation	Target Price
Bankhaus Metzler	Tom Diedrich	Buy	15.50
Berenberg Bank	Catharina Claes	Buy	17.00
DZ Bank	Thomas Maul	Hold	14.30
Hauck & Aufhäuser Christian Salis		Hold	14.00
Kepler Cheuvreux	Craig Abbott	Buy	13.00
LBBW	Thomas Hofmann Hold		14.20
M.M. Warburg	Thilo Kleibauer	Buy	16.00
Pareto Securities	Mark Josefson	Buy	16.00

The Shareholders' Meeting of TAKKT AG was once again held virtually on May 11, 2021. The attendees were able to follow the meeting live via audio and video transmission and exercise their voting rights over the internet through a shareholder portal. All questions submitted were answered by CEO Felix Zimmermann. The agenda included the decision on profit appropriation, the discharge of the Management and Supervisory Boards, the selection of an auditor and approval of the remuneration system for the Management and Supervisory Boards. The Shareholders' Meeting ratified all of the items on the agenda by a large majority.

In addition to the payment of a dividend of EUR 0.55 for the 2020 fiscal year, the shareholders endorsed making up the ordinary dividend of EUR 0.55 that was suspended in the previous year. The detailed voting results from the Shareholders' Meeting 2021 can be viewed on the website of TAKKT AG in the Investor Relations section.

Following the Shareholders' Meeting, a change was made in the distribution of roles on the Supervisory Board as planned. Thomas Schmidt, CEO of TAKKT's majority shareholder Haniel, was elected as the new chairman by the Supervisory Board. Previous chairman Florian Funck will remain a member of the Supervisory Board.

INTERIM MANAGEMENT REPORT OF THE TAKKT GROUP

BUSINESS ACTIVITIES OF THE GROUP

Organization and business areas

The TAKKT Group specializes in B2B distance selling for business equipment. The companies and brands operate in attractive markets and focus primarily on the sale of durable and less price sensitive equipment as well as special items that are needed regularly by corporate customers in various industries and regions. The product ranges that are offered mostly encompass durables that companies use for their business activities. The TAKKT companies supply products such as pallet lifting trucks to German automobile suppliers, computer cabinets to Swiss mechanical engineers, custom-printed advertising banners for trade shows, shipping cartons to European industrial companies and food service equipment to commercial kitchens in the US.

In 2020, the organizational realignment of the TAKKT Group was introduced with TAKKT 4.0. This change is especially aimed at making the Group more compact, with a focus on two distinguishable customer types. On the one hand, these are corporate customers with more complex requirements, and more price-conscious, transaction-oriented B2B customers on the other. In order to do this, TAKKT operates the two business models of Omnichannel Commerce and Web-focused Commerce in B2B distance selling. The main reason for the segmentation by business model is that the two types of customers have very different requirements in terms of products, delivery speed, service and quality. In order to best meet these needs, providers also need to have a differentiated positioning.

The Omnichannel Commerce segment addresses corporate customers with more complex requirements with a broad range of service offerings via online channels, key account managers and print advertising. The Web-focused Commerce segment gears its offerings to the less complex requirements of transaction-oriented and more price-conscious B2B customers mainly through online channels. Detailed information on the organizational alignment can be found in the 2020 annual report beginning on page 36.

Corporate goals and strategy

In early 2020, the Group began with the implementation of TAKKT 4.0 and is thus repositioning itself. The Group's strategic goals are to continue its profitable growth, transform its business model and act in a sustainable manner. The strategic goals and respective sub-targets are presented in the following overview.

Strategic goals	Sub-targets (until 2025)
Grow profitably	• Long-term organic sales growth of around 5% per year • Additional growth through acquisitions • Sustainable increase in EBITDA
Transform the business model	• Organizational realignment with focus on two business models • Employee NPS of over 30 • Customer NPS of over 60 • Above-average organic e-commerce growth
Act sustainably	• Share of women in top executive positions of at least 30 percent • Share of sustainable products of over 20 percent • 100 percent carbon-neutral print advertising and shipping processes

TAKKT wants to accelerate organic growth and achieve an increase for the Group of around five percent per year on average over the long term.The Group also wants to continue to grow through acquisitions. In addition, TAKKT attaches great importance to a high level of profitability. The starting point is a gross profit margin, which for the Group average should exceed 40 percent. TAKKT wants to achieve a sustainable increase in the operating result (EBITDA).

With TAKKT 4.0, the Group is driving forward the transformation of the business model and focusing on two business models for two specific customer types. The aim of this increased customer focus is to create a better shopping experience and greater satisfaction. The Group has also set itself the goal of strengthening employees' identification with the company and its attractiveness as an employer. By continually developing its business model, TAKKT wants to benefit from the increasing shift of the business toward online sales channels and to continue generating particularly strong organic growth in e-commerce.

Sustainability has been an integral part of the corporate strategy for many years. TAKKT is convinced that sustainability represents competitive advantages across all stages of the value chain and enhances company value for the long term. TAKKT's sustainability goals cover the different dimensions of sustainability. More specifically, TAKKT wants to increase the share of women in executive positions, further expand the share of sustainable products, and make print advertising and shipping processes completely carbon neutral.

More detailed information on the corporate goals and strategy can be found in the 2020 annual report beginning on page 44.

Management system

TAKKT's management system is linked to the Group's strategic objectives and includes financial and other operational key figures. These indicators are divided into various perspectives (growth, costs and earnings, cash, customer and employee perspective, and sustainability).

Organic sales development and organic e-commerce performance serve as benchmarks for the Group's growth. Under the costs and earnings perspective, the key figures of gross profit margin and EBITDA are analyzed. The cash perspective includes the key figures TAKKT cash flow and free TAKKT cash flow as well as the capital expenditure ratio. The customer and employee perspective is measured using the cNPS and eNPS. With regard to progress in the area of sustainability, TAKKT uses the indicators for share of women in top executive positions, share of sales from sustainable products and share of carbon-neutral activities. Further information on the management system can be found in the 2020 annual report starting on page 47.

BUSINESS SITUATION IN THE FIRST HALF-YEAR

General conditions

Economic development in the markets that are relevant for TAKKT continued to be influenced by the coronavirus pandemic in the first half of the year. Different incidence rates, the tightening or easing of protective measures and the progress with vaccinations resulted in varying dynamics in the individual regions, particularly at the beginning of the year. In the second quarter, the economic recovery gained traction everywhere.

In the US, the economy benefited from the relatively rapid rate of vaccination at the beginning of the year, the associated easing of protective measures and the expansionary fiscal policy. The economic performance in the eurozone was still in decline from January to March due to the prolonged lockdown. However, the subsequent easing of protective measures and the resulting surge in demand led to a dynamic upswing. At the global level, strong demand coupled with capacity and transport bottlenecks led to limited availability of important raw and base materials as well as significant price increases.

In order to estimate industry-specific conditions, TAKKT uses various indicators which are described in detail in the 2020 annual report starting on page 52. The economic momentum was reflected in the Purchasing Managers' Indexes, which are especially relevant for the European KAISER+KRAFT group. In the first half of the year, they were well above the expansion threshold of 50 points and reached new record highs several times. By June, the value had risen to 63.4 points for the eurozone and 65.1 points for Germany.

The Restaurant Performance Index (RPI), relevant for Central and - to a lesser extent - Hubert, also indicates a good current business environment. In May, the index was at 105.5 points, only a slight decline from the record high of 106.3 points in the previous month.

Business development

As expected, the start to the 2021 fiscal year was rather subdued. The high infection rates during the winter months and the extension of protective measures in many regions put a damper on demand in the first quarter. Organic growth was still in the negative zone, partly because the previous year's figures in January and February 2020 had not yet been affected by the pandemic.

Towards the end of the first quarter, demand picked up markedly. This positive development continued in the following months. Compared to the previous year, which was severely affected by the pandemic, TAKKT achieved overall organic sales growth of almost 25 percent in the second quarter.

The strong customer demand would have made even stronger sales growth possible in the first and second quarters. However, due to the high capacity utilization of manufacturers as well as disruptions in the supply chain, delivery times increased. This resulted in a significant increase in order backlogs throughout the first half of the year. Since these problems affected the entire market, customers were understanding about the delays. Consequently, there was no noticeable increase in cancellations of previously placed orders.

Organic sales in the Omnichannel Commerce segment in the first quarter were almost on par with the previous year's level. In the second quarter, the segment generated the strongest growth within the Group with an increase of 37.0 percent. The high growth was attributable to the above-average decline in sales in the previous year as well as strong demand from customers in all three business units.

ratioform reported sustained robust demand for packaging solutions and thus registered double-digit organic growth since the beginning of the year. This growth accelerated again significantly in the recent three months, partly due to the lower basis of comparison. In contrast, both the plant, warehouse and office equipment business of KAISER+KRAFT and office furniture sales at NBF started the new year with a slight minus. However, they were able to generate strong double-digit organic growth in the second quarter.

The Web-focused Commerce segment was able to realize a significant increase in organic growth during the first half of the year. After a decline of 5.6 percent in the first quarter, sales in the second quarter increased by 10.0 percent. The two business units continued to develop very differently.

The Newport companies, which focus on the needs of small and medium-sized business customers, continued their strong organic growth. The segment posted a double-digit increase for the fifth quarter in a row, while steadily increasing its growth rate. The situation with regard to the display and banner business of Displays2go remains challenging. Although the US eased pandemic-related protective measures significantly in the first half of the year, there are still far fewer large events and trade fairs than there were before. The organic decline at Displays2Go decreased from a double-digit percentage range in the first quarter to a singledigit level in the second quarter. This was mainly attributable to the lower basis of comparison.

The Foodservice Equipment & Supplies segment, which was newly established at the beginning of the year, also saw a significant improvement in the second quarter. It registered organic growth of 9.0 percent, following a decline of 8.7 percent at the beginning of the year.

This improvement over the course of the year is primarily attributable to the activities of Central. The segment, which is geared to smaller, often family-run restaurants, benefited from the easing of restrictions and realized high double-digit growth in the past three months following a slight decline in the previous quarter. On the other hand, Hubert, which focuses more on large canteens and cafeterias, saw a double-digit decline in both quarters.

TAKKT was able to further increase its e-commerce share in the first half of the year to 61.1 (59.6) percent. Organic e-commerce growth once again exceeded the Group's organic sales and came to 15.9 percent.

The shares of private label brands and direct imports developed differently in the first half of the year. The share of sales of private labels rose to 25.2 (23.3) percent. While sales of direct imports increased in absolute terms compared to the previous year, their share of sales declined slightly to 20.5 (22.8) percent. These products were particularly affected by supply bottlenecks due to difficulties with global shipping.

Sales review

The first half of 2020 was heavily affected by the first wave of the coronavirus pandemic starting in mid-March. Compared with this basis, TAKKT increased sales in the first half of 2021 by 5.9 percent to EUR 557.3 (526.4) million. Adjusted for negative currency effects, which reduced reported growth by 3.6 percentage points, organic sales even nearly achieved double-digit growth of 9.5 percent.

Sales TAKKT Group first half-year in EUR million

Activities in the Omnichannel Commerce segment, which were hit especially hard by sales losses in the previous year due to the pandemic, achieved significant double-digit growth in the reporting period. Sales increased by a total of 12.9 percent to EUR 347.2 (307.7) million. Adjusted for the negative currency effect of 2.5 percentage points, organic growth came to 15.4 percent. All three business units, KAISER+KRAFT, ratioform and NBF, achieved double-digit organic growth.

Sales Omnichannel Commerce first half-year

in EUR million

7

In the Web-focused Commerce segment, sales of EUR 120.0 (120.7) million were nearly identical to those in the previous year. Adjusted for the negative currency effect of 2.5 percentage points, the segment achieved organic growth of 1.9 percent. While Newport posted significant double-digit organic growth, the Displays2go business, which is geared to conferences and trade shows, saw a double-digit percentage decline.

Sales Web-focused Commerce first half-year in EUR million

The US dollar, weaker compared to the previous year, also had a negative impact on sales in the Foodservice Equipment & Supplies segment in the reporting currency of euros. At EUR 92.3 (100.1) million, sales in the reporting period were 7.8 percent below the level of the previous year. Adjusted for the currency effect of 8.3 percentage points, the segment achieved slight organic growth of 0.5 percent. Central benefited from the good demand from restaurants following the relaxation of protective measures, and realized double-digit organic growth. In contrast, business at Hubert remained challenging and saw a decline in the double-digit percentage range.

Sales Foodservice Equipment & Supplies first half-year in EUR million

Earnings review

In the first half of the year, the gross profit margin remained virtually unchanged compared to the previous year at 40.7 (40.6) percent. In both periods, the margin was influenced by negative effects. In the current year, these were attributable to a lower freight margin, partly as a result of higher freight costs. In the previous year, the negative effects were related to the valuation of inventories.

In response to the pandemic and the resulting decrease in sales, TAKKT focused on comprehensive cost management since March 2020 and realized big savings in personnel and marketing expenses, especially in the second quarter. In order to meet the strong demand from customers and maximize the good growth potential, TAKKT increased expenses for marketing and personnel in the reporting period. Personnel costs in the previous year were negatively affected by one-time expenses of around EUR 7 million. In the first half of the year, they came to EUR 91.8 (93.0) million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were influenced by one-time effects, as in the previous year. Following specification of sales tax regulation for e-commerce distributors in the US, TAKKT made a provision for risks which reduced earnings by EUR 3.3 million. In addition to the aforementioned one-time personnel expenses, there was also a one-time gain from the sale of real estate in the previous year. The previous year's earnings thus also saw an overall decrease of around EUR 3 million. In the first half of the year, TAKKT generated EBITDA of EUR 51.8 (51.6) million. The EBITDA margin was 9.3 (9.8) percent.

EBITDA TAKKT Group first half-year

in EUR million/margin in %

The Omnichannel Commerce segment increased earnings significantly to EUR 52.5 (38.3) million. The EBITDA margin rose to 15.1 (12.5) percent. In addition to the strong growth, the absence of the aforementioned one-time personnel expenses, which had a negative impact on segment earnings in the previous year, also contributed to this increase.

in EUR million/margin in %

In the Web-focused Commerce segment, EBITDA amounted to EUR 2.2 (7.7) million and the margin came to 1.8 (6.4) percent. While the Newport companies achieved higher earnings compared to the previous year, Displays2go had a negative EBITDA, also due to the aforementioned provision for risks.

EBITDA Web-focused Commerce first half-year

in EUR million/margin in %

EBITDA in the Foodservice Equipment & Supplies segment amounted to EUR 4.9 (12.7) million, while the margin came to 5.3 (12.7) percent. The decline in earnings is attributable to the onetime gain from the sale of real estate in the previous year and the weak business at Hubert.

EBITDA Foodservice Equipment & Supplies first half-year

in EUR million/margin in %

Depreciation and amortization of EUR 18.6 (19.9) million was slightly less than in the previous year. EBIT increased to EUR 33.2 (31.7) million and the EBIT margin remained unchanged at 6.0 percent. Due to the sale of an investment as well as lower interest expense, the financial result improved to plus EUR 0.7 (minus 3.1) million. Profit before tax increased to EUR 33.9 (28.6) million. Since investment income is only taxed at a low rate, the tax ratio decreased to 22.4 (24.8) percent. The profit for the period increased significantly to EUR 26.3 (21.5) million. This corresponds to earnings per share of EUR 0.40 (0.33) in the first half of the year.

Financial position

TAKKT's business model continues to be characterized by a high level of operating and free cash flow. TAKKT cash flow increased to EUR 47.0 (42.5) million and the TAKKT cash flow margin came to 8.4 (8.1) percent. The TAKKT cash flow per share was EUR 0.72 (0.65).

TAKKT cash flow first half-year

in EUR million and cash flow margin in %

On the whole, net working capital increased slightly in the first half of 2021, while in the previous year, TAKKT was able to generate cash inflow of over EUR 30 million. In view of the crisis, the Group had implemented extensive measures to reduce net working capital. Cash flow from operating activities of EUR 42.6 (75.4) million was significantly lower than in the first half of 2020.

Capital expenditure of EUR 7.2 (6.9) million was at a similar level to the previous year. As in the previous year, free TAKKT cash flow benefited from one-time effects. The sale of real estate in the US in the previous year resulted in cash inflow of EUR 21.9 million, and in the first half of 2021 TAKKT received EUR 13.4 million from the sale of investments. A cash inflow of over EUR 10 million resulted from the sale of a start-up investment by the TAKKT Beteiligungsgesellschaft in parcelLab as part of a financing round. The expenditure for the investment was less than one million euros. The free TAKKT cash flow therefore came to EUR 49.0 (90.9) million.

Due to the make-up payment of the ordinary dividend that was suspended in the previous year in addition to the regular distribution, the dividend payment of EUR 72.2 million exceeded the free TAKKT cash flow. Consequently, net financial liabilities increased from EUR 75.4 million at year-end 2020 to EUR 101.7 million. More detailed information about the generation and use of cash flow can be found in the cash flow statement of this half-year financial report.

Assets position

Due to the significant business improvement, the Group's assets increased slightly in the first half of the year. Positive currency effects from the stronger US dollar compared to the end of the year contributed to this increase. Total assets increased to EUR 1,024.6 (December 31, 2020: 1,004.3) million.

Non-current assets remained virtually unchanged at EUR 780.3 (781.1) million. The volume of tangible assets decreased slightly, while intangible assets increased by a similar amount.

Current assets increased significantly from EUR 223.2 to 244.3 million. The robust business development led to an increase in inventories as well as receivables from customers.

There has not been a significant change in the payment behavior of customers caused by the coronavirus crisis. The payment period for accounts receivable remained at a stable level of 28 (29) days. The loss of receivables also remained at a consistently low level with a write-off rate of less than 0.2 percent of sales.

The structure of assets changed slightly as a result of the increase in current assets. However, non-current assets still comprise the majority of assets at 76.2 (77.8) percent, especially with goodwill which makes up 56.3 (56.5) percent.

Shareholders' equity decreased by EUR 19.7 million in the first half of the year, amounting to EUR 629.9 (649.6) million at mid-year. The negative effects of the high dividend payment of EUR 72.2 million were partly offset by the profit for the period of EUR 26.3 million, positive currency effects of EUR 10.7 million and positive effects recognized directly in equity of EUR 15.3 million resulting from the valuation of retirement pensions and investments. The equity ratio decreased slightly to 61.5 (64.7) percent.

Liabilities increased in the first half of the year by EUR 40.0 million to EUR 394.7 (354.7) million. This was attributable to increased bank liabilities as well as the increase in liabilities in connection with the upturn in business. Consequently, the share of current liabilities increased compared to non-current liabilities, which continue to make up well over 50 percent of liabilities.

OUTLOOK

Risk and opportunities report

The risks and opportunities for the TAKKT Group explained in the 2020 annual report starting on page 74 did not change significantly in the first half of the year. The Management Board does not believe that there are any substantial individual risks to the Group as a going concern.

The most significant risk for the TAKKT Group, which is also a noteworthy opportunity, continues to be the development of the economy. Thanks to the improving vaccination rates and expansionary monetary and fiscal policy measures worldwide, the positive economic trend continued in the first half of 2021. However, there is still a degree of economic risk due to the consequences of possible protective measures given the high infection rates from different coronavirus variants.

There is also the risk that the entry of new web-focused providers and online marketplace models or a change in the behavior of established providers could lead to a more aggressive competitive environment and a consequent negative impact on sales and gross profit.

TAKKT also deems the risk from structural changes in demand to be significant. The trend towards new forms of collaboration and virtual or hybrid event formats has been accelerated by the consequences of the coronavirus pandemic. This could result in long-term market changes. As a result, there is the risk of decreased demand for office equipment and displays in the medium term. However, there is also the potential to profit from the increased demand for home office products. TAKKT is observing and analyzing these trends and, if necessary, will take measures to meet these changes, such as adapting its product ranges.

In addition, there are significant risks in connection with the implementation of TAKKT 4.0. Goals or measures may be achieved later or results may not be satisfactory. The implementation could incur higher costs than expected or not have the desired effect on the development of sales and earnings.

The targeted exploitation of vulnerabilities in information and communications technology by external parties represents another risk. This can lead to significant cash outflows and financial loss resulting from the disruption of business operations and reputational damage. TAKKT addresses this risk through technical protection mechanisms, periodic employee training, and the specification of defined processes. Due to the accumulation of such cyberattacks, the probability of this risk has increased.

Due to the current high utilization of global transport capacities, the risk of negative effects on sales and earnings due to bottlenecks in the supply chains has increased. Increased demand or lack of product availability could result in the cancellation or absence of orders. TAKKT passes on price increases from suppliers or for container freight during the year to customers. There is a certain risk that price increases can only be passed on to customers with a delay or not to the full amount.

As pointed out in the 2020 annual report, the opportunities for TAKKT occur as a result of improved economic conditions, the transformation of the business model with the implementation of TAKKT 4.0, and through increasing market shares for distance selling and the strong growth in e-commerce. Furthermore, the Group should continue to be able to benefit from further acquisitions or start-ups. Other opportunities relate to TAKKT's sustainability positioning in the industry, further development of the IT applications, increased use of new technologies and good access to capital. A more in-depth presentation of the opportunities and risks relevant to TAKKT can be found in the 2020 annual report starting on page 74.

Forecast report

As in the previous year, the coronavirus pandemic was a key factor in economic development and TAKKT's business activity in the first half of the year. Development in the second half of the year will also depend on vaccination progress, infection rates and the spread of new virus variants.

Current economic forecasts are therefore still subject to a great deal of uncertainty. In a study from the end of July, the International Monetary Fund forecast GDP growth of 7.0 percent for the US and 4.6 percent for the eurozone in 2021. This is a slight improvement compared to the estimates from April.

In addition to economic forecasts, market and industry indexes also give an indication of the further development of individual business units. The Purchasing Managers' Index relates to KAISER+KRAFT and the Restaurant Performance Index (RPI) relates to Central. The Purchasing Managers' Index figures for the manufacturing sector were at very high levels in June with 63.4 points for the eurozone and 65.1 points for Germany. The RPI relevant to the US food service market recently stood at 105.5 points. These indicators therefore point to a sustained positive market environment for the two business units.

With regard to the second half of the year, TAKKT expects continued strong organic growth. Since the comparison basis is increasing significantly, future growth rates will be lower than in the second

quarter. The high order backlog may be partially reduced over the course of the year and contribute to additional sales growth. However, it is difficult to gauge how long the current disruptions to the supply chain will last.

TAKKT has passed on the higher prices of many raw materials and the increase in freight costs to customers through price adjustments in the first half of the year. The Group will also pass on future price increases from suppliers. In particular due to the inflation induced higher price level, TAKKT now expects an organic growth rate of between twelve and 17 percent for the full year and thus stronger organic growth than the seven to twelve percent forecast in the annual report. TAKKT passes the higher price level on to customers, but does not currently add any additional profit margin to its own pricing. As a result, no major effects on the absolute amount of gross profit and earnings are to be expected.

The gross profit margin is expected to be negatively affected by the higher sales level as a consequence of price increases. The increase in gross profit margin to over 40 percent forecast in the 2020 Annual Report (2020 fiscal year: 39.7 percent) could therefore be lower than originally expected. Personnel and marketing costs are still expected to be significantly above the level of 2020. EBITDA is still expected to be between EUR 100 and 120 million in 2021.

With regard to the TAKKT cash flow, the Group continues to expect a significant increase of between EUR 80 and 100 million. The free TAKKT cash flow will be significantly lower than in 2020 as expected. For the capital expenditure ratio, TAKKT still expects a value at the upper end of the long-term targeted benchmark of between one and two percent of sales. The statements in the annual report regarding the future development of sustainability indicators and on the willingness of customers and employees to recommend TAKKT (cNPS and eNPS) remain unchanged.

TAKKT will publish the figures for the first nine months on October 28, 2021.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Consolidated statement of income of the TAKKT Group in EUR million

	4/1/2021 – 6/30/2021	4/1/2020 – 6/30/2020	1/1/2021 – 6/30/2021	1/1/2020 – 6/30/2020
Sales	291.0	241.5	557.3	526.4
Changes in inventories of finished goods and work in progress	0.1	–0.8	0.1	–0.6
Own work capitalized	0.6	0.2	0.9	0.4
Gross performance	291.7	240.9	558.3	526.2
Cost of sales	–174.1	–146.3	–331.6	–312.5
Gross profit	117.6	94.6	226.7	213.7
Other operating income	0.9	5.6	2.1	7.1
Personnel expenses	–47.7	–40.5	–91.8	–93.0
Other operating expenses	–45.4	–32.4	–85.2	–76.2
EBITDA	25.4	27.3	51.8	51.6
Depreciation, amortization and impairment of property, plant and equipment and other intangible assets	–9.4	–9.9	–18.6	–19.9
EBIT	16.0	17.4	33.2	31.7
Income from associated companies	2.7	–0.2	2.5	–0.4
Finance expenses	–0.9	–1.2	–2.0	–2.5
Other finance result	0.3	0.0	0.2	–0.2
Financial result	2.1	–1.4	0.7	–3.1
Profit before tax	18.1	16.0	33.9	28.6
Income tax expense	–3.7	–3.8	–7.6	–7.1
Profit	14.4	12.2	26.3	21.5
attributable to owners of TAKKT AG	14.4	12.2	26.3	21.5
attributable to non-controlling interests	0.0	0.0	0.0	0.0
Weighted average number of issued shares in million	65.6	65.6	65.6	65.6
Basic earnings per share (in EUR)	0.22	0.19	0.40	0.33
Diluted earnings per share (in EUR)	0.22	0.19	0.40	0.33

	4/1/2021 – 6/30/2021	4/1/2020 – 6/30/2020	1/1/2021 – 6/30/2021	1/1/2020 – 6/30/2020
Profit	14.4	12.2	26.3	21.5
Actuarial gains and losses resulting from pension provisions recognized in equity	2.0	–10.8	8.9	–1.7
Tax on actuarial gains and losses resulting from pension provisions	–0.7	3.2	–2.7	0.5
Gains and losses resulting from the subsequent measurement of investment in equity instruments recognized in equity	9.2	–0.3	9.2	–0.9
Tax on subsequent measurement of investment in equity instruments	–0.1	0.0	–0.1	0.0
Other comprehensive income after tax for items that will not be reclassified to profit and loss in future	10.4	–7.9	15.3	–2.1
Income and expenses from the subsequent measurement of cash flow hedges recognized in equity	0.1	–0.2	–0.6	0.1
Income recognized in the income statement	0.0	0.0	0.8	1.8
Tax on subsequent measurement of cash flow hedges	–0.1	0.1	0.0	–0.4
Other comprehensive income after tax resulting from the subsequent measurement of cash flow hedges	0.0	–0.1	0.2	1.5
Income and expenses from the adjustment of foreign currency reserves recognized in equity	–3.8	–8.8	10.7	–3.1
Income recognized in the income statement	0.0	0.0	0.0	0.0
Other comprehensive income after tax resulting from the adjustment of foreign currency reserves	–3.8	–8.8	10.7	–3.1
Other comprehensive income after tax for items that are reclassified to profit and loss	–3.8	–8.9	10.9	–1.6
Other comprehensive income (Changes to other components of equity)	6.6	–16.8	26.2	–3.7
attributable to owners of TAKKT AG	6.6	–16.8	26.2	–3.7
attributable to non-controlling interests	0.0	0.0	0.0	0.0
Total comprehensive income	21.0	–4.6	52.5	17.8
attributable to owners of TAKKT AG	21.0	–4.6	52.5	17.8
attributable to non-controlling interests	0.0	0.0	0.0	0.0

Consolidated statement of comprehensive income of the TAKKT Group in EUR million

Assets	6/30/2021	12/31/2020
Property, plant and equipment	125.6	131.6
Goodwill	577.1	567.9
Other intangible assets	67.2	68.8
Investment in associated companies	0.0	0.5
Other assets	6.7	7.5
Deferred tax	3.7	4.8
Non-current assets	780.3	781.1
Inventories	114.2	105.0
Trade receivables	98.5	86.9
Other receivables and assets	20.7	21.4
Income tax receivables	7.1	5.6
Cash and cash equivalents	3.8	4.3
Current assets	244.3	223.2
Total assets	1,024.6	1,004.3
Equity and liabilities	6/30/2021	12/31/2020
Share capital	65.6	65.6
Retained earnings	590.7	627.1
Other components of equity	–26.4	–43.1
Total equity	629.9	649.6
Financial liabilities	72.8	67.8
Pension provisions and similar obligations	78.0	85.7
Other provisions	4.8	4.4
Deferred tax	62.0	57.9
Non-current liabilities	217.6	215.8
Financial liabilities	32.7	15.1
Trade payables	43.3	34.6
Other liabilities	74.8	60.0
Provisions	20.4	23.2
Income tax payables	5.9	6.0
Current liabilities	177.1	138.9
Total equity and liabilities	1,024.6	1,004.3

Consolidated statement of financial position of the TAKKT Group in EUR million

Consolidated statement of changes in total equity of the TAKKT Group in EUR million

	Share capital	Retained earnings	Other components of equity	Total equity
Balance at 1/1/2021	65.6	627.1	–43.1	649.6
Transactions with owners	0.0	–72.2	0.0	–72.2
thereof dividends paid	0.0	–72.2	0.0	–72.2
Total comprehensive income	0.0	26.3	26.2	52.5
thereof Profit	0.0	26.3	0.0	26.3
thereof Other comprehensive income (Changes to other components of equity)	0.0	0.0	26.2	26.2
Transfer to retained earnings	0.0	9.5	–9.5	0.0
Balance at 6/30/2021	65.6	590.7	–26.4	629.9

	Share capital	Retained earnings	Other components of equity	Total equity
Balance at 1/1/2020	65.6	590.5	–11.9	644.2
Transactions with owners	0.0	0.0	0.0	0.0
thereof dividends paid	0.0	0.0	0.0	0.0
Total comprehensive income	0.0	21.5	–3.7	17.8
thereof Profit	0.0	21.5	0.0	21.5
thereof Other comprehensive income (Changes to other components of equity)	0.0	0.0	–3.7	–3.7
Transfer to retained earnings	0.0	–0.7	0.7	0.0
Balance at 6/30/2020	65.6	611.3	–14.9	662.0

Consolidated statement of cash flows of the TAKKT Group in EUR million

	1/1/2021 – 6/30/2021	1/1/2020 – 6/30/2020
Profit	26.3	21.5
Depreciation, amortization and impairment of non-current assets	18.6	19.9
Deferred tax expense	1.0	–0.2
Other non-cash expenses and income	3.8	5.9
Result from disposal of non-current assets	–2.7	–4.6
TAKKT cash flow	47.0	42.5
Change in inventories	–6.9	–2.3
Change in trade receivables	–11.1	14.1
Change in trade payables	8.0	–4.1
Change in provisions	–4.6	0.8
Change in other assets /liabilities	10.2	24.4
Cash flow from operating activities	42.6	75.4
Proceeds from disposal of non-current assets	13.6	22.4
Capital expenditure on non-current assets	–7.2	–6.9
Cash outflows for the acquisition of consolidated companies	0.0	0.0
Cash flow from investing activities	6.4	15.5
Proceeds from Financial liabilities	27.4	46.6
Repayments of Financial liabilities	–4.8	–137.7
Dividend payments to owners of TAKKT AG	–72.2	0.0
Cash flow from financing activities	–49.6	–91.1
Cash and cash equivalents at 1/1	4.3	3.8
Increase/decrease in Cash and cash equivalents	–0.6	–0.2
Non-cash increase/decrease in Cash and cash equivalents	0.1	–0.1
Cash and cash equivalents at 6/30	3.8	3.5

EXPLANATORY NOTES

Reporting principles

The condensed interim consolidated financial statements of TAKKT Group as of June 30, 2021 were prepared in accordance with section 115 of the German Securities Trading Act (WpHG) as well as IAS 34 "Interim Financial Reporting" and German Accounting Standard DRS 16 "Interim Financial Reporting". All International Financial Reporting Standards (IFRS) and related interpretations of the IFRS Interpretations Committee (IFRS IC) adopted by the European Union (EU) were considered. The interim financial statements and management report have not been audited in accordance with section 317 of the German Commercial Code (HGB) nor been subject to an audit review.

Accounting and valuation principles

The same accounting and valuation principles have been applied as for the consolidated financial statements for the 2020 financial year. The interim financial statements should be read in conjunction with the 2020 annual report, page 103 et seqq.

All new and amended standards to be applied for the first time in the current financial year do not have a material effect on the net assets, financial position and results of operations or the presentation of the interim financial statements.

Segment information by division of the TAKKT Group in EUR million

1/1/2021 – 6/30/2021	Omnichannel Commerce	Web-focused Commerce	Foodservice Equipment & Supplies	Segments total	Others	Consolidation	Group total
Sales to third parties	345.0	120.0	92.3	557.3	0.0	0.0	557.3
Inter-segment sales	2.2	0.0	0.0	2.2	0.0	–2.2	0.0
Segment sales	347.2	120.0	92.3	559.5	0.0	–2.2	557.3
EBITDA	52.5	2.2	4.9	59.6	–7.8	0.0	51.8
EBIT	41.1	–2.8	3.2	41.5	–8.3	0.0	33.2
Profit before tax	42.2	–3.9	2.8	41.1	–7.2	0.0	33.9
Profit	31.9	–2.6	2.0	31.3	–5.0	0.0	26.3
Average no. of employees (full-time equivalent)	1,430	560	335	2,325	47	0	2,372
Employees at the closing date (full-time equivalent)	1,470	573	339	2,382	46	0	2,428

1/1/2020 – 6/30/2020	Omnichannel Commerce	Web-focused Commerce	Foodservice Equipment & Supplies	Segments total	Others	Consolidation	Group total
Sales to third parties	305.6	120.7	100.1	526.4	0.0	0.0	526.4
Inter-segment sales	2.1	0.0	0.0	2.1	0.0	–2.1	0.0
Segment sales	307.7	120.7	100.1	528.5	0.0	–2.1	526.4
EBITDA	38.3	7.7	12.7	58.7	–7.1	0.0	51.6
EBIT	27.1	1.8	10.5	39.4	–7.7	0.0	31.7
Profit before tax	24.8	0.1	9.2	34.1	–5.5	0.0	28.6
Profit	18.7	0.0	6.7	25.4	–3.9	0.0	21.5
Average no. of employees (full-time equivalent)	1,339	524	352	2,215	45	0	2,260
Employees at the closing date (full-time equivalent)	1,273	523	334	2,130	40	0	2,170

Until the end of 2020, the business activities were divided into the two segments Omnichannel Commerce and Web-focused Commerce. As Hubert and Central pursue a different business model compared to the other companies in the Omnichannel Commerce segment, a third segment was established from 2021 onwards as Foodservice Equipment & Supplies. This segment comprises the two business units and will enable better and stronger integration of the other companies within the Omnichannel Commerce segment, while at the same time allowing work to be carried out on the strategic options for Hubert and Central. The prior-year figures have been adjusted accordingly.

Scope of consolidation

Compared to the scope of consolidation at December 31, 2020, the fully consolidated subsidiaries KWESTO s.r.o., Prague / Czech Republic, KWESTO s.r.o., Nitra / Slovakia and KWESTO Sp. z o.o., Wroclaw / Poland were disposed of in the course of liquidation. In the case of associated companies, the share in Simple System GmbH & Co. KG, Munich / Germany was disposed of.

Sales in EUR million

In the following table, sales according to regions are further broken down:

	Omnichannel Commerce	Web-focused Commerce	Foodservice Equipment & Supplies	1/1/2021 – 6/30/2021
Germany	116.7	9.6	0.0	126.3
Europe without Germany	146.4	73.5	0.0	219.9
USA	81.7	35.4	88.1	205.2
Other	0.2	1.5	4.2	5.9
Sales by Region	345.0	120.0	92.3	557.3

	Omnichannel Commerce	Web-focused Commerce	Foodservice Equipment & Supplies	1/1/2020 – 6/30/2020
Germany	104.2	6.9	0.0	111.1
Europe without Germany	127.7	61.6	0.0	189.3
USA	73.5	50.5	94.6	218.6
Other	0.2	1.7	5.5	7.4
Sales by Region	305.6	120.7	100.1	526.4

Leases

As of June 30, 2021 the book value of right-of-use assets from leasing totaled EUR 65.4 million (EUR 69.4 million as of December 31, 2020). The leased assets are shown in land and buildings with an amount of EUR 63.9 million (EUR 67.9 million as of December 31, 2020) and in plant, machinery and equipment with an amount of EUR 1.5 million (EUR 1.5 million as of December 31, 2020).

Non-current Financial liabilities include non-current lease liabilities with an amount of EUR 61.4 million (EUR 65.6 million as of December 31, 2020) at the balance sheet date. Current Financial liabilities include current lease liabilities with an amount of EUR 13.5 million (EUR 13.4 million as of December 31, 2020) at the reporting date.

Trade receivables

The valuation of trade receivables takes into account not only the age of the receivables, the general credit risk and past experience, but also current and forecast conditions. As of June 30, 2021, the payment period was 28 days (28 days as of December 31, 2020). Despite the corona crisis, there was no significant indication of a deterioration in the value of trade receivables or a deterioration in customer payment behavior. As in the previous year, the write-off rate remained below 0.2% of revenues. The allowance on trade receivables increased slightly to EUR 4.8 million (EUR 4.6 million as of 31 December, 2020).

Inventory

In the valuation of inventories, write-downs are calculated based on the expected range of inventories. At EUR 16.6 million (EUR 16.1 million as of December 31, 2020), the obsolescence reserve on finished goods remained above the level prior to the corona crisis.

Total Equity

On May 11, 2021, the Annual General Meeting approved the proposed dividend of EUR 1.10 (EUR 0.00) per share for the 2020 financial year. Thus, a total dividend for the 65.6 million no-par value shares in the amount of EUR 72,171 thousand (previous year: EUR 0 thousand) was distributed. In addition to the payment of a dividend for the 2020 financial year of EUR 0.55 per share, thereby the suspended base dividend from the previous year of also EUR 0.55 per share was made up for.

Financial instruments – Fair value measurement

For a detailed overview of financial risks and their management along with the financial instruments held by TAKKT, please refer to the consolidated financial statements 2020. This section provides information about the fair value of financial instruments, the respective input factors and valuation methods. It also explains the classification of financial instruments into the levels within the fair value hierarchy of IFRS 13.

The input factors used for the valuation techniques to measure fair value are divided into the following levels:

• Level 1: Quoted prices in active markets accessible to the company for the identical asset or liability.
• Level 2: Input factors other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3: Input factors for the asset or liability that are unobservable.

Financial instruments at TAKKT recognized at fair value relate to investments, derivative financial instruments and contingent considerations. They are subject to a recurring fair value measurement. Derivative financial instruments included in current Other receivables and assets as well as in current Other liabilities relate to level 2. The investments, included in non-current Other assets, as well as the contingent considerations, included in current Other liabilities, relate to level 3.

All other financial instruments are recognized at amortized cost.

Should it prove necessary to reclassify assets and liabilities carried at fair value on a recurring basis into a different level – for example because an asset is no longer traded on an active market or is being traded for the first time – they are reclassified at the end of the reporting period. There were no reclassifications during the reporting period. The fair value of financial instruments traded on an active market is based on the prices quoted on the reporting date. When level 2 assets and liabilities are measured at fair value on a recurring basis, the discounted cash flow method is used. This means that the future cash flows which the financial instruments are expected to generate are discounted using maturity-matched market interest rates. The creditworthiness of the respective debtor is taken into account by considering risk premiums depending on rating and term in the discount factors. The risk premiums are determined using prices for fixed-income securities observable on markets.

The valuation of venture capital funds is based on the so-called Adjusted Net Asset Method. Under this method, the fair values of the individual investments, determined by the fund based on recognized valuation methods, are aggregated and adjusted for appropriate illiquidity discounts for the overall fund. In case of investments in unlisted corporate entities, the valuation is derived from additional capital contributions by the investors or from the share price a third and new party has to pay in the course of another round of financing (Price of Recent Investment Valuation Method).

On the reporting date, the fair value of investments listed under non-current Other assets stood at EUR 6.4 million (EUR 7.1 million as of December 31, 2020). Thereof EUR 1.3 million (EUR 0.8 million as of December 31, 2020) relate to debt instruments measured at fair value through profit and loss and EUR 5.1 million (EUR 6.3 million as of December 31, 2020) to equity instruments measured at fair value through other comprehensive income. The fair value of derivative financial instruments within current Other receivables and assets totaled EUR 0.2 million (EUR 0.3 million as of December 31, 2020) and within current Other liabilities EUR 0.8 million (EUR 1.0 million as of December 31, 2020).

The following overview shows a detailed reconciliation of the financial instruments that are measured at fair value within level 3 on a recurring basis without contingent considerations from acquisitions in EUR million:

	2021	2020
Balance at 01/01	7.1	8.1
Addition	0.1	0.4
Fair value change recognized in profit or loss	0.4	0.1
Fair value change recognized in other comprehensive income	9.2	–1.5
Disposals	–10.4	0.0
Balance at 06/30 / 12/31		7.1
Unrealized gains or losses recognized in profit or loss relating to those financial instruments held at the reporting date	0.4	0.1

The positive fair value change recognized in Other comprehensive income in the amount of EUR 9.2 million resulted from the revaluation of the investment in parcelLab GmbH as a result of a recent financing round. TAKKT no longer participated in this round as an investor, but disposed of the shares, resulting in the shown disposals of EUR 10.4 million. There are currently no indications of reduced recoverability for all other investments.

The book values of all financial instruments not carried at fair value in the balance sheet represent appropriate approximate values for the fair values as of the closing date of the reporting period. Significant deviations between book values and fair values could arise regarding the lease and other financial liabilities, which exclusively include TAKKT performance bonds issued to TAKKT Group executives.

Regarding the Other financial liabilities, the book value amounts to EUR 3.2 million (EUR 2.6 million as of December 31, 2020) and their fair value to EUR 3.5 million (EUR 2.8 million as of December 31, 2020).

Fair value is determined using the same method assigned to level 2 as for assets and liabilities that are measured at fair value on a recurring basis applying the discounted cashflow-method.

Assumptions and estimates

All assumptions and estimates were reviewed and are based on the circumstances on the balance sheet date.

Earnings per share

Basic and diluted earnings per share are calculated by dividing the profit by the weighted average number of shares issued. So-called potential shares (mainly stock options and convertible bonds), which could dilute the earnings per share, were not issued. The diluted and undiluted earnings per share are therefore identical.

Related party disclosures

Related parties in the sense of IAS 24 include the Management and Supervisory Boards of TAKKT AG (including any and all persons related to these Boards), TAKKT Group's associated companies and the majority shareholder Franz Haniel & Cie. GmbH, Duisburg/ Germany (including its subsidiaries, associated companies, Management and Supervisory Board members). Related-party transactions mainly relate to the cash management system, ongoing delivery and settlement transactions and service contracts. By participating in Haniel Group's cash management system, TAKKT Group benefits from potential economies of scale. All transactions with related parties are contractually agreed and performed on terms that are customary for transactions with third parties.

Significant business transactions in the first half of 2021

In the first half of the year, TAKKT disposed of its investment in parcelLab GmbH resulting in a positive fair value change recognized in Other comprehensive income of EUR 9.2 million. In addition, TAKKT disposed of its investment in Simple System GmbH & Co. KG, Munich / Germany. This resulted in an income within the financial result of EUR 2.5 million.

Events after the reporting period

There were no significant events which had any meaningful impact on the net assets, financial position and results of operations after the reporting date.

Other disclosures

As at the last balance sheet date there were no material contingent liabilities and receivables. There have been no exceptional transactions pursuant to IAS 34.16A(c) or other matters requiring disclosures.

Responsibility statement by the Management Board

To the best of our knowledge and in accordance with the applicable accounting principles for interim financial reporting, the condensed interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group. The interim management report of the Group includes a fair view of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remaining financial year.

Stuttgart, July 29, 2021

TAKKT AG Management Board

Tobias Flaitz Claude Tomaszewski

ADDITIONAL INFORMATION

Address and contact

TAKKT AG Presselstraße 12 70191 Stuttgart Germany

Investor Relations T +49 711 3465-8222 F +49 711 3465-8104 investor@takkt.de www.takkt.de