Bechtle AG — Earnings Release 2008

Nov 14, 2008

News Details

Corporate | 14 November 2008 07:30

Bechtle AG continues on its successful course in the third quarter

Bechtle AG / Quarter Results/Interim Report

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Bechtle AG continues on its successful course in the third quarter

• Revenue increased to 345.4 million Euros in Q3 2008

• EBT grows by 4.2 per cent to 17.8 million Euros

• Comfortable level of liquidity and strong cash flow

• Entry into the Austrian and Irish markets

Neckarsulm, 14 November 2008 – In the third quarter of 2008, the Bechtle
group was once again able to top last year's strong business development.
With 345.4 million Euros, the revenue total was up 0.7 per cent compared to
the previous year (342.8 million Euros). Earnings before tax (EBT) climbed
4.2 per cent to 17.8 million Euros (previous year: 17.1 million Euros). The
EBT margin of 5.2 per cent has increased from last year's quarter (5.0 per
cent). Earnings after tax increased by 17.3 per cent, amounting to 13.3
million Euros in the reporting quarter (previous year: 11.3 million Euros).
The earnings per share is at 0.63 Euros compared to 0.53 Euros from the
previous year.

'We are very happy with the business development and our achievements in
the year of our 25th anniversary. We were able to slightly improve upon
strong third quarter revenue from the previous year. We are particularly
pleased that we were able to significantly improve upon profits earned.
Especially against the backdrop of the financial crisis and the current
economic development this is a respectable outcome', says Ralf Klenk,
chairman of the board at Bechtle AG.

IT system house: continued profitable growth

In the IT system house segment, the Bechtle group increased its revenue by
1.4 per cent to 228.6 million Euros in the third quarter of 2008 (previous
year: 225.5 million Euros). Two small-scale acquisitions in Austria
contributed to the growth. The earnings before interest and tax (EBIT) rose
for the same period by 4.7 per cent to 11.0 million Euros (previous year's
quarter: 10.5 million Euros), bringing the EBIT margin up to 4.8 per cent
(previous year: 4.7 per cent). The significant increase in earnings can be
attributed primarily to the positive developments in the system houses
regarding managed services and project related business.

IT e-commerce: Investment assures long-term success

The revenue from the IT e-commerce segment at 116.8 million Euros (previous
year: 117.4 million Euros) remained near level with the strong revenue from
the previous year. The sale of TomTech must, however, be taken into
consideration, the deconsolidation of which on the 31 August 2008
negatively affected the third quarter revenue in this segment. The EBIT
receded slightly in the third quarter from 6.6 million Euros in the
previous year's quarter to 6.4 million Euros. The EBIT margin at 5.5 per
cent remained practically the same as the previous year's margin (5.6 per
cent). A major factor resulting in this development was the necessary
investment for the expansion of the Europe-wide e-commerce business: new
employees, increased marketing expenditure and the founding of a new
subsidiary in Ireland. 'Although the investment negatively affected the
group's profits on the short run, it was a fundamental and necessary
component in our mid-range and long-run growth strategy,' explains Ralf
Klenk.

Finances: Crisis proof balance sheet structure

By the closing date of the third quarter, 30 September 2008, the Bechtle
group's equity rose from 276.5 million Euros to 296.9 million Euros,
improving the equity ratio to 66.0 per cent (31 December 2007: 61.2 per
cent). Cash and cash equivalents increased by 15.1 per cent from 52.3
million Euros to 60.2 million Euros. One reason for the positive
development is the good results of the Bechtle AG. The cash flow from
operating activities for the nine-month period rose from 9.6 million Euros
in the previous year to 39.0 million Euros. The main reason for the rise,
in addition to the higher earnings before tax, is the change in net assets.

Prospects for 2008: Board of directors reaffirms earnings targets

The development of Bechtle AG in the first nine months lies within the
expectations of the board of directors. However, the economic parameters
have deteriorated more and more in the past months. How the downturn in the
real economy resulting from the financial market crisis affects the market
demand in the IT sector will be a crucial factor in the development of
Bechtle AG in the remaining weeks of the fiscal year 2008, especially
considering the above-average significance of the fourth quarter. Despite
the uncertainty, the board of directors reaffirmed the forecast EBT of
approximately 60 million Euros. 'For the remaining weeks of 2008 we will be
placing added emphasis on the attainment of our year-end targets,' says
Ralf Klenk. 'We deliberately place more importance on earnings than on mere
revenue. Difficult economic times can also present excellent opportunities
for well-established and financially stable businesses. In the past Bechtle
has shown more than once that it can exploit such opportunities through,
for example, acquisitions, for the benefit of a sound strategic development
of the company. That will also remain the approach in the future.'

th. Euros Q3/2008 Q3/2007 Change in Quarter
Revenue 345 376 342.833 0.7 %
Domestic 230 370 232 262 -0.8 %
Abroad 115 006 110 571 4.0 %
IT system house 228 622 225 451 1.4 %
IT e-commerce 116 754 117 382 -0.5 %
EBITDA 20 713 20 378 1.6 %
EBIT 17 435 17 097 2.0 %
IT system house 11 034 10 537 4.7 %
IT e-commerce 6 401 6 560 -2.4 %
EBT 17 848 17 124 4.2 %
Earnings after taxes 13 283 11 326 17.3 %
Earnings per share in Euro 0.63 0.53 17.3 %
Cash flow from operating 30 740 -8 476 462.7 %
activities

th. Euros 9 Months 9 Months Change over 9
2008 2007 Months
Revenue 1 026 697 974 302 5.4 %
Domestic 671 200 636 922 5.4 %
Abroad 355 497 337 380 5.4 %
IT system house 656 432 623 498 5.3 %
IT e-commerce 370 265 350 804 5.5 %
EBITDA 49 732 48 639 2.2 %
EBIT 40 017 39 074 2.4 %
IT system house 24 091 20 652 16.7 %
IT e-commerce 15 926 18 422 -13.5 %
EBT 41 368 39 534 4.6 %
Earnings after taxes 30 451 26 157 16.4 %
Earnings per share in Euro 1.43 1.23 16.4 %
Cash flow from operating 38 987 9583 306.8 %
activities

th. Euros 30/09/2008 31/12/2007 Change
Cash and cash equivalents 60 180 52 300 15.1 %
Equity ratio (in per cent) 66.0 61.2 7.8 %
No. of Employees 4 397 4 250 3.5 %

The quarterly report for Q3/2008 is available for download at
www.bechtle.com/qb. We are also happy to provide you with printed copies on
request.

Contact:
Bechtle AG
Investor Relations

Thomas Fritsche
Telefon: +49 7132/981-4121
Martin Link
Telefon: +49 7132/981-4149
Telefax: +49 7132/981-4116
ir@bechtle.com

14.11.2008 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 - 8000
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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