Bechtle AG — Earnings Release 2007

May 15, 2007

News Details

Corporate | 15 May 2007 08:00

Bechtle AG: Successful start to the year, first quarter exceeds expectations

Bechtle AG / Quarter Results

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

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Increase in revenue of 7.2 per cent / over-proportional growth in Earnings
before Tax

Neckarsulm, 15/05/2007 – Bechtle AG increased its revenue in the 2007 first
quarter by more than the average market growth and raised earnings
disproportionately high in comparison with revenue. By the 31st March, the
IT services and retail company group revenue increased by 7.2 per cent to
311.9 million euros (previous year: 291.0 million euros). The group
earnings before taxes (EBT) at 13.2 million Euros was up on the previous
year by 50.6 per cent (previous year: 8.8 million Euros). This includes
one-off special items to the amount of 2.6 million Euros. Excluding the
positive special items, the EBT margin rose to 3.4 per cent (previous year:
3.0 per cent). The Earnings per Share reached 0.43 Euros compared with the
0.27 Euros from the comparative period in the previous year.

'We started the year well and are happy with the good results we have
achieved. The sector as a whole has gained momentum. Particularly in our
core sector, the medium-sized businesses, the readiness to invest has
noticeably increased. This year, however, we are concentrating on not-yet
completed internal restructuring as well as integration measures for the
newly acquired businesses. Against this background, the Earnings from the
first quarter are all the more enjoyable', said Ralf Klenk, Chairman of the
Board of Bechtle AG

IT System House Segment with Operating Profit Margin Improvement

With 193.1 million Euros, the IT system house segment lies at 1.4 per cent
over the previous year revenue of 190.5 million Euros. The 60 Bechtle IT
system houses account for 61.9 per cent of the total revenue. The operating
profit EBIT rose significantly from 2.0 million Euros to 5.8 million Euros.
This, however, is where the special items take effect. This involves the
sale of property in Switzerland that we haven't used ourselves as well as a
reimbursement of costs in connection with a now settled lawsuit. But even
without the special items, the EBIT segment increased by 62.0 per cent to
3.2 million Euros. The EBIT margin, without special items, amounted to 1.7
per cent, after 1.0 per cent in the comparative period of the previous
year. In particular, the increased productivity as well as cost reductions
took effect due to restructuring measures adopted in the previous year.

IT E-commerce Segment as Growth Driver

In IT e-commerce, Bechtle achieved a strong increase in revenue of 18.2 per
cent to 118.8 million Euros. The EBIT grew by 7.0 per cent to 7.1 million
Euros. The EBIT margin then amounted to 6.0 per cent (previous year: 6.6
per cent). The expansion of the sales team was noticeable through the
increased revenue. However, earnings show the cost of training and
qualifying new employees. Nevertheless, the expansion of the sales team is
an important investment in the future of the IT e-commerce segment for
Bechtle. The margin was additionally burdened by the product mix with a
high share of low-margin hardware products.

Balance sheet structure continues to be stable

On the 31st March 2007, the equity ratio lay at 64.3 per cent, after 60.0
per cent on the 31st December 2006. The return on equity rose, in
comparison with the previous year quarter, from 2.5 to 3.6 per cent.
Together with free credit lines in the amount of 43.3 million Euros, on the
31st March 2007 Bechtle had a cash reserve of 93.0 million Euros. Thus,
financially, the group has room for future growth.

The cash flow from operating activities rose in the first three months,
compared to the previous comparative period, by 123.7 per cent to 12.3
million Euros. Background are, primarily, the increased EBT and the reduced
Net working capital. The free cash flow increased noticeably from 2.4
million Euros to 10.4 million Euros.

Over 4000 employees, for the first time

On the 31st March 2007, the Bechtle group comprised 4007 employees. This is
the first time in the company's history that there have been over 4000
employees on Bechtle's payroll. At the end of 2006, there were 3888
employees. The increase was as much a consequence of the acquisitions as it
was additions to the sales team in the e-commerce branch.

Events after the end of the quarter: Acquisitions in Switzerland and the
Netherlands, Bechtle subsidiary ARP in France

In April, Bechtle acquired two further companies: The Dutch buyitdirect.com
NV, a traditional B2B e-commerce retailer with a strong focus on the
licence business, and the Swiss Coma Services AG, a service provider for
printers and multifunctional peripherals.

On 2nd May, the Bechtle subsidiary ARP Datacon launched the newly founded
ARP France SAS with an online trade platform in France. Thus, ARP who are
also present in the Netherlands, introduced their second location in a
non-German-speaking country. In the medium term, ARP is supposed to
establish locations in all countries where Bechtle direct is present
already today to accommodate our multi-brand strategy.

Forecast for the total year confirmed

Against the background of the good 2007 first quarter, the executive board,
in an Ad Hoc on 24th April, increased its original prognosis of 48 million
Euros for the total year EBT. Presupposing a constantly good economic
situation and a strong final quarter, they expect an EBT of at least 50
million Euros. The board sees the revenue as unchanged from the original
prognosis from the end of March in a target corridor of 1.30 to 1.35
thousand million Euros.

'The course adopted by us – expansion of sales activities in e-commerce,
concentration on margin improvement in the IT system house segment and
expansion of the Managed Services – will be consistently maintained by us.
Furthermore, we will hold all possibilities for acquisitions open', said
Ralf Klenk

Quarter numbers in overview

th. Euros Q1/2007 Q1/2006 Change
Revenue 311 887 291 000 + 7.2%
Domestic 201 166 191 211 + 5.2%
Abroad 110 721 99 789 + 11.0%
IT System House 193 110 190 531 + 1.4%
IT E-commerce 118 777 100 469 + 18.2%
EBITDA 16 100 11 804 + 36.4%
EBIT 12 922 8662 + 49.2%
IT System House 5778 1983 + 191.4%
IT E-commerce 7144 6679 + 7.0%
EBT 13 215 8777 + 50.6%
Earnings After Tax 9031 5789 + 56.0%
EPS (in Euros) 0.43 0.27 + 56.0%
Equity Ratio (%) 64.3 62.3 + 3.3%
Workforce(31/03) 4007 3906 + 2.6%

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

DGAP 15.05.2007

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
www: www.bechtle.com
ISIN: DE0005158703
WKN: 515870
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München,
Stuttgart

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