Bechtle AG — Earnings Release 2007

Nov 13, 2007

News Details

Corporate | 13 November 2007 07:30

Bechtle AG: Strong third quarter / forecast earnings increased to 58 million euros

Bechtle AG / Quarter Results/Interim Report

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Increase in revenue of 22 per cent / 38 per cent increase in EBT

Neckarsulm, 13/11/2007 – Bechtle AG has again considerably increased
revenue and earnings in Q3 2007 keeping the positive trend from the first
half of the year going. Up 22 per cent to 342.8 million euros, the third
quarter numbers for the IT services and retail company group revenue
increased from those of last year (280.9 million euros). The group earnings
before taxes (EBT) at 17.1 million euros was up on the previous year by 38
per cent (previous year: 12.4 million euros). Thus, the EBT margin
increased in the third quarter to 5.0 per cent (previous year: 4.4 per
cent). The earnings per share were 0.53 euros compared to 0.35 euros from
the same period last year.

From January to September, revenue lay at 974.3 million euros which is a 14
per cent increase from the same time period last year. In the first nine
months, EBT improved by 48 per cent to 39.5 million euros, which equals a
margin of 4.1 per cent. The earnings per share increased from 0.79 euros to
1.23 euros. 'We can be very happy with our performance in the third
quarter. Our growth in revenue lies considerably over that of the
development of the entire market and our margins, compared to competitors
in the same branch, are outstanding. We worked hard and in the last two
years, we set the right course and now we profit from the increase in the
momentum of the boom', said Ralf Klenk, Chairman of the Executive Board of
Bechtle AG.

IT System House Segment with a considerable increase in revenue and margin

In the IT system house segment, Bechtle achieved a revenue of 225.5 million
euros which is an increase of 20 per cent over the previous years number
(187.6 million euros). After a growth rate of 1 per cent in the first
quarter and 8 per cent in the second quarter, the dynamic in the third
quarter becomes particularly clear. In nine months, revenue increased by 10
per cent to 623.5 million euros (previous year's time period: 567.5 million
euros).

The EBIT of the IT system house segment rose by 88 per cent in the third
quarter from 5.6 to 10.5 million euros compared to the previous year. The
EBIT margin improved from 3.0 to 4.7 per cent. From January to September,
the EBIT for the IT system house segment rose by 123 per cent from 9.3 to
20.7 million euros. The EBIT margin improved from 1.6 to 3.3 per cent.

The reason for the positive development in this segment is, besides a
considerable pickup in demand for services, mainly Bechtle AG's
restructuring measures implemented in the last and current fiscal year.
These measures were mainly aimed at extending the share of the
higher-margin service business.

IT E-commerce Segment increases growth contribution

The IT e-commerce segment could also improve its already high revenue
growth rates in the third quarter. Revenue grew 26 per cent, from 93.3 to
117.4 million euros. From January to September, the trade segment recorded
an increase in revenue of 22 per cent to 350.8 million euros (previous
year: 288.2 million euros).

Apart from the economic situation, growth in IT e-commerce is again due to
the extension and training of the sales teams as well as acquisitions.

In the third quarter, the trade segment EBIT decreased slightly from 6.8 to
6.6 million euros. The margin also decreased from 7.3 to 5.6 per cent. The
main reason for the decrease is the altered product mix with a high share
of low-margin hardware products. Within nine months, the IT e-commerce
segment EBIT rose by 7 per cent to 18.4 million euros (previous year: 17.3
million euros). The margin dropped from 6.0 to 5.3 per cent.

Solid balance sheet structure

The equity ratio was 63.6 per cent on 30 September 2007 compared to 60.0
per cent on 31 December 2006. Cash and cash equivalents, including
securities, sank to 34.5 million euros by September 30th (December 31st,
2006: 39.4 million euros). The decline mostly results from acquisitions
made in 2007, the dividend payout on 22nd June, as well as the
pre-financing effects of the considerable revenue growth in the third
quarter. Together with free credit lines in the amount of 37.4 million
euros, on 30 September 2007 Bechtle had a comfortable cash reserve of 71.9
million euros.

Rise in employee numbers

As of 30 September 2007 the Bechtle Group had 4,170 employees compared to
3,888 at the end of 2006. The increase is due to acquisitions as well as
new employees in both business segments. Personnel expenses in the first
nine months increased by 5 per cent to 150.9 million euros (previous year:
143.7 million euros) and have therefore risen disproportionally to revenue.
The personnel cost quota sank from 16.8 to 15.5 per cent.

Positive forecast for the year

After the first nine month course of business, Bechtle AG's Executive Board
have once again, in an ad hoc announcement from 22 October 2007, raised
their EBT prognosis for the entire year 2007 and now expect an EBT of
around 58 million euros (previous year: 45.9 million euros). The
realisation of the ambitious forecast, requires a consistent, good economic
situation in the final months of fiscal year 2007 and a continued
willingness to invest from SMBs, with these factors becoming stronger
towards the end of the year. As for revenue, the Executive Board stands by
their March prognosis with a target range of th. million euros 1.30 to 1.35
(previous year: th. million euros 1.2).

'So far this year, especially in the third quarter, Bechtle has shown the
type of potential that this company possesses. I'm proud that, providing a
successful fourth quarter, we will end our 24th financial year with record
results and be able to start our 25th year with élan', said Ralf Klenk.

***

Quarter and 9 month numbers in overview

th. euros Q3/2007 Q3/2006 Changes in Quarter
Revenue 342,833 280,946 + 22.0%
Domestic 232,262 194,120 + 19.6%
Abroad 110,571 86,826 + 27.3%
IT system house 225,451 187,643 + 20.1%
IT e-commerce 117,382 93,303 + 25.8%
EBITDA 20,378 15,645 + 30.3%
EBIT 17,097 12,403 + 37.9%
IT system house 10,537 5,600 + 88.2%
IT e-commerce 6,560 6,803 - 3.6%
EBT 17,124 12,426 + 37.8%
Earnings after tax 11,326 7,418 + 52.7%
EPS (in euros) 0.53 0.35 + 52.7%

th. euros Jan. – Sept. Jan. – Sept. Changes Jan. –
2007 2006 Sept.
Revenue 974,302 855,702 +13.9%
Domestic 636,922 570,851 +11.6%
Abroad 337,380 284,851 +18.4%
IT system house 623,498 567,548 +9.9%
IT e-commerce 350,804 288,154 +21.7%
EBITDA 48,639 36,123 +34.7%
EBIT 39,074 26,547 +47.2%
IT system house 20,652 9,275 +122.7%
IT e-commerce 18,422 17,272 +6.7%
EBT 39,534 26,750 +47.8%
Earnings after tax 26,157 16,748 +56.2%
EPS (in euros) 1.23 0.79 +56.1%
Equity Ratio (in 63.6 63.9 -0,5%
%)
Employee numbers 4,170 3,838 +8.7%

The complete interim report is available for download in both English and
German, at www.bechtle.com/qb.

Contact:
Bechtle AG
Martin Link
Investor Relations
Phone: +49 (0) 7132/981-4149
Fax: +49 (0) 7132/981-4116
martin.link@bechtle.com

13.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: Bechtle AG
Bechtle Platz 1
74172 Neckarsulm
Deutschland
Phone: +49 (0)71 32/ 9 81-0
Fax: +49 (0)7132/ 9 81 - 80
E-mail: ir@bechtle.com
Internet: www.bechtle.com
ISIN: DE0005158703
WKN: 515870
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart

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