Esselte Europe Builds Upon Sales Growth in 2007

March 14, 2008

9% growth of Leitz in 2007 makes major contribution to the development of the office product manufacturer

Stuttgart, 14 March 2008: Esselte, the leading manufacturer of office products generated positive results in 2007. Despite a difficult market environment marked by low margins, the company successfully increased its sales in Europe by 1% in comparison to 2006. In fact, 2007 saw Esselte increase its EBITDA* by 21%. “The contribution made by the Leitz brand within our overall development is particularly significant,” explained Barry Mc Cool, Vice President of Marketing at Esselte Europe. “The brand’s innovations are producing extraordinarily high rates of growth that, in turn, are more than compensating for lower non-strategic private label business, both in sales and profit terms.” Overall, Leitz registered a 9% increase in sales within Europe, and indeed a 19% increase outside Germany. As such, Leitz was responsible for over 40% of Esselte’s European sales.

Growth has permeated all the product categories. In terms of Leitz lever arch files, Esselte Europe successfully increased turnover by 8% in comparison to 2006. A major factor in this respect is the contribution made by the Leitz 180° mechanism and the new Leitz 180˚ Active lever arch file. In the first year, Esselte has already sold over one million Leitz 180˚ Active files throughout Europe - with the launch aided by successful and vigorous marketing campaigns and sales promotions. Esselte also reports strong development in the stapler and perforator product categories, which were up by 6% and 7% respectively. Indeed, in Germany sales of Leitz perforators increased by 10%. In other European countries growth has accelerated significantly, with sales of staplers up by a record 47% in the Benelux countries in 2007. Esselte also successfully increased sales of perforators by 38% in the Eastern European market.

In terms of pockets and presentation folders the European market leader recorded growth of 5% in 2007, with the launch of the Vivanto PP range developing into a real success story for the Leitz brand. Following a four-fold increase in sales in 2006, turnover in 2007 rose by a further factor of five as compared to the previous year. Letter trays and magazine files have also generated positive development for Esselte, with pan-European sales of the Leitz brand up by 8% in this category.

“These exciting figures are primarily the result of the consistent premium brand strategy that we apply for Leitz,” declared Marketing Vice-President Barry Mc Cool. “As was the case previously, brand recognition is extremely high.” In Germany Leitz enjoys a spontaneous brand awareness of 42% and aided brand awareness of 78%. Three-quarters of those using office products associate the Leitz brand with excellent quality and outstanding durability. Even school children express a high level of brand affinity. According to a 2007 survey, 89% of pupils questioned in Germany are familiar with the Leitz brand – a figure well above any other competitor.

This brand strength is the foundation of the successful Leitz business in Europe and Germany. In 2007, Esselte recorded increases in turnover for all Leitz product categories; with 180° plastic LAF up by 16% in Europe (15% in Germany), 180° cardboard LAF up by 4% (+5% in Germany), pockets and folders up by 9% (+4% in Germany), letter trays by 8% (11% in Germany), perforators also by 8% (+10% in Germany) and staplers up by 17% (+9% in Germany).

“The decisive factor is the long-term growth trend,” stated Barry Mc Cool. As an example, European sales of Leitz perforators successfully increased by 120% between 1999 and 2007. During the same period, sales of Leitz lever arch files rose by 70% in Europe, excluding Germany. Barry Mc Cool continues, “We are planning to achieve further growth in turnover in 2008 and are particularly aiming to raise Leitz sales to a whole new level”.


About Leitz Products
Leitz products are sold in over 40 European countries and 124 countries throughout the world. The Esselte Group generates an annual global turnover of $1 Billion; whereby Europe is one of the regions where sales have constantly been successfully increased year over year.

About Esselte
Esselte, With executive offices in Stamford, Conn., USA, is a leading global office supplies manufacturer with annual sales of approximately USD 1 billion, subsidiaries in 33 countries and approximately 5,000 employees worldwide. The company develops innovative solutions that simplify the modern home and workplace. Esselte sells more than 20,000 different office products in over 120 countries; its principal brands include Esselte, Leitz, Oxford, Pendaflex and Xyron. More information about Esselte can be found by visiting www.esselte.com.

* EBITDA is reported before one time costs from restructuring and before corporate expenses.