Bechtle AG — Earnings Release 2007

Mar 27, 2008

News Details

Corporate | 27 March 2008 10:30

Bechtle AG: FY 2007 was the most successful year in company history

Bechtle AG / Final Results/Forecast

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Increase in turnover of 13 per cent / 29 per cent increase in EBT

Neckarsulm, 27/03/2008 – In the 2007 financial year, Bechtle AG achieved a
significant increase in turnover and earnings, dwarfing its own forecasts.
Up 13.4 per cent to 1383.5 million Euros, the 2007 numbers for the IT
services and retail company group revenue increased from those the previous
year (1220.1 million Euros). At 59.0 million Euros, the group earnings
before taxes (EBT) were up on the previous year by 28.7 per cent (previous
year: 45.9 million Euros). The EBT margin increased to 4.3 per cent
(previous year: 3.8 per cent). Earnings per share were up 38.3 per cent,
from 1.39 Euros in the previous year to 1.93 Euros. Due to the excellent
business development, the executive and supervisory boards will suggest a
dividend of 0.60 Euros per share at the general meeting in June 2008, an
increase of 10 Cents.

IT System House Segment with considerable Margin Improvement

In 2007, Bechtle achieved a turnover of 885.8 million Euros in the IT
system house segment, which is an increase of 8.4 per cent over the
previous year's number (817.0 million Euros). As usual, the seasonal
development was particularly strong in the last quarter, which gave above
average contribution and accounted for 29.6 per cent. With 743.0 million
Euros (previous year: 678.9 million Euros), 83.9 per cent of the segment's
turnover were created in Germany (previous year: 83.1 per cent). The
external turnover of 142.8 million Euros accounted for 16.1 per cent
(previous year: 16.9 percent with 138.1 million Euros). The segment's
organic turnover growth is at 4.6 per cent.

Despite economic incentives, this growth is mainly based on an improved
line-up in the public sector and Managed Services segment.

The 2007 operating profit (EBIT) in the IT system house segment is at 33.1
million Euros, an increase of 46.3 per cent from 22.6 million Euros. The
EBIT margin improved from 2.8 to 3.7 per cent. This positive development
is, besides a one-off effect from the first quarter, primarily due to cost
optimisation through the centralisation of system house locations and
improved productivity, as well as an increase in the share of top quality
IT services.

IT E-commerce Segment continues to be a Growth Driver

In the completed financial year, the IT e-commerce segment again shows a
considerable growth rate. Turnover grew 23.5 per cent, from 403.1 to 497.7
million Euros. A good portion of revenue was generated abroad. Thanks to
the successful development of the European e-commerce subsidiaries, the
foreign contribution to the segment's turnover increased by 27.0 per cent
from 266.2 million Euros to 338.3 million Euros, while the German trading
companies accounted for 32.0 per cent with 159.4 million Euros (previous
year: 34.0 per cent with 137.0 million Euros).

Acquisitions aside, the turnover growth in the trade segment was at 14.0
per cent, which is significantly above the overall growth of the European
hardware and software market. Besides a pick up in demand, new recruitments
and training of the sales teams have been important factors in our growth.

EBIT improved from 23.2 to 25.2 million Euros, an increase of 8.9 per cent.
The EBIT margin decreased slightly from 5.7 to 5.1 per cent. This decrease
is mainly due to bulk sales of low-margin hardware products that are in
high demand.

Solid Balance Sheet Structure and significantly improved Cash Flow

Despite the increase in total assets and liabilities, the equity capital
improved as a result of the increased corporate annual net profit on 31st
December 2007, from 59.2 per cent to 61.2 per cent. On the balance sheet
date, cash and cash equivalents, including securities, were up 37.8 per
cent at 54.2 million Euros (previous year: 39.4 million Euros). Together
with free credit lines in the amount of 41.6 million Euros, on 31st
December, 2007 Bechtle AG had a comfortable cash reserve of 95.9 million
Euros.

The cash flow from operating activities has improved by 56.3 per cent
compared to the previous year, amounting to 42.0 million Euros (previous
year: 26.9 million Euros). Free cash flow amounted to 25.8 million Euros
(previous year: 5.7 million Euros).

Rise in employee numbers

As of 31st December, 2007 the Bechtle group had 4250 employees compared to
3888 at the end of 2006. The increase is due to acquisitions as well as new
employees in both business segments. Personnel expenses for the reporting
year are up 5.5 per cent to 204.4 million Euros (previous year: 192.6
million Euros) and have therefore risen disproportionably to revenue. The
personnel cost quota sank from 15.8 to 14.7 per cent.

'We can be very happy with our performance in last year. Our growth lies
considerably over that of the development of the entire market and our
margins, compared to competitors in the same branch, are outstanding. We
are starting to profit from our structuring measures, which proves that we
did the right thing at the right time to set the course for the future of
Bechtle and optimally exploit the good economic situation in 2007', says
Ralf Klenk, CEO of Bechtle AG.

Positive Forecast for 2008

Presupposing a continuous good economic situation, the Bechtle AG
management expects to further the previous years' positive development in
2008. With regard to the IT e-commerce segment, the executive board is
banking on organic growth, breaking into new foreign markets. The IT system
house segment's turnover should grow through both selective takeovers and
the development of the public sector and Managed Services business. 2008
will also bring the required resourcing with personnel in order to
accommodate the new structures and build a solid basis for profitable
growth in the coming years. Quantity and timing of this resourcing will
substantially affect the group performance in the current year.
Nevertheless, Bechtle aims for a 2008 turnover of at least 1.5 thousand
million Euros and an EBT of around 60 million Euros.

'Were taking the necessary measures to get Bechtle ready for the
realisation of our Vision 2020, which means a turnover of 5 thousand
million Euros', says Ralf Klenk.

In thousand euros 2007 2006 Change
Turnover 1 383 453 1 220 138 13.4%
Domestic 902 367 815 876 10.6%
Abroad 481 086 404 262 19.0%
IT system house 885 772 816 998 8.4%
IT e-commerce 497 681 403 140 23.5%
EBITDA 71 754 60 186 19.2%
EBIT 58 253 45 730 27.4%
IT system house 33 065 22 597 46.3%
IT e-commerce 25 188 23 133 8.9%
EBT 59 006 45 859 28.7%
Earnings after taxes 40 959 29 608 38.3%
Earnings per share in Euro 1.9291 1.3945 38.3%
Cash flow from operating activities 41 609 26 866 54.9%
Cash and cash equivalents 54 229 39 352 37.8%
Equity ratio in % 61.2 59.2 3.3%
Workforce on 31/12 4250 3888 9.3%

The 2007 annual report is available at www.bechtle.com/gb. 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

27.03.2008 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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