Bechtle AG — Interim / Quarterly Report 2008

Aug 14, 2008

//INTERIM REPORT Q2 Q1

Bechtle – Your strong IT Partner. Today and Tomorrow.

// KEY FIGURES OF THE BECHTLE GROUP AT A GLANCE

According to IFRS
		01.01.– 30.06.2008	01.01.– 30.06.2007	Change in %
Earnings information
Revenue	th. euros	681,321	631,469	7.9
EBITDA	th. euros	29,019	28,261	2.7
EBIT	th. euros	22,582	21,977	2.8
EBT	th. euros	23,520	22,410	5.0
Earnings after taxes	th. euros	17,168	14,831	15.8
Earnings per share	euro	0.8081	0.6985	15.7
Financial information
Cash Flow from operating activities	th. euros	8,247	18,059	–54.3
Working capital (30.06.) 1)	th. euros	159,241	135,192	17.8
Cash and cash equivalents (30.06.) 2)	th. euros	38,943	36,286	7.3
Operating figures
Cash Flow per share	euro	0.39	0.85	–54.3
Return on equity 3)	%	6.26	6.00	4.3
Equity ratio (30.06.)	%	65.8	62.9	4.6
Number of employees (30.06.) 4)		4,249	4,080	4.1

1) Inventories, plus trade receivables, less trade payables, prepayments received

2) Incl. securities

3) Earnings after taxes proportional to the average equity for the period 4) Full-time employees, trainees, employees on maternity or paternity leave or employees doing military or civilian service

// REVIEW BY QUARTER 2008

in th. euros
	1st quarter 1 January to 31 March	2nd quarter 1 April to 30 June	3rd quarter 1 July to 30 September	4th quarter 1 October to 31 December	2008 fiscal year 1 January to 30 June
Revenue	336,856	344,465			681,321
EBITDA	14,975	14,044			29,019
EBIT	11,618	10,964			22,582
EBT	12,010	11,510			23,520
Earnings after taxes	8,730	8,438			17,168

// SEGMENT REPORTING

IT system house
		01.01.– 30.06.2008	01.01.– 30.06.2007	Change in %
Revenue	th. euros	427,810	398,047	7.5
EBITDA	th. euros	17,541	14,684	19.5
EBIT	th. euros	13,057	10,115	29.1
Number of employees (30.06.) 1)		3,246	3,205	1.3

IT e-commerce
		01.01.– 30.06.2008	01.01.– 30.06.2007	Change in %
Revenue	th. euros	253,511	233,422	8.6
EBITDA	th. euros	11,478	13,577	–15.5
EBIT	th. euros	9,525	11,862	–19.7
Number of employees (30.06.) 1)		1,003	875	14.6

1) Full-time employees, trainees, employees on maternity or paternity leave or employees doing military or civilian service

// THE SHARE

Opening price on 02.01.2008 (Xetra)	euros	27.00
Closing price on 30.06.2008 (Xetra)	euros	17.95
Share price performance	%	–33.5
Six-month high (Xetra closing price 02.01.2008)	euros	27.86
Six-month low (Xetra closing price 17.03.2008)	euros	17.51
Trading volume from 01.01. to 30.06.2008 (all German exchanges)	No.	9,806,902
Trading volume from 01.01. to 30.06.2008 (all German exchanges)	euros	203,174,169
June rankings on the German Stock Exchange according to market cap	Ranking	30
June rankings on the German Stock Exchange according to trade volume	Ranking	22
Market capitalisation (free float) as of 30.06.2008	million euros	188.3
Market capitalisation (total) as of 30.06.2008	million euros	380.5
Number of issued shares	No.	21,200,000
Free float	%	49.5
Number of shares entitled to dividend payout	No.	21,200,000
Dividend for the fiscal year 2007	euro	0.60
Segment		Prime Standard
Index		TecDAX
WKN		515 870
ISIN		DE 0005158703

// GROUP INTERIM FINANCIAL REPORT as of 30 June 2008

Bechtle reports revenue and earnings up

// Revenue up 7.8 per cent at 344.5 million euros

// EBT grows 25.2 per cent to 11.5 million euros

// IT system house segment continues to be profitable

// IT e-commerce segment invests in growth across Europe

// First half of 2008 confirms annual targets

BUSINESS ACTIVITIES

With more than 50 system houses in Germany, Switzerland and Austria, and trading companies in nine countries, Bechtle is one of Europe's leading IT e-commerce providers. This combination forms the basis of Bechtle's unique business model, which combines system house services with direct marketing of IT products. Established in 1983 and headquartered in Neckarsulm, Germany, the company offers its more than 56,000 mainly medium-sized customers from the fields of industry and trade, the public sector and financial markets a vendor-independent, one-stop IT infrastructure shop. Bechtle has been a publicly-quoted company since 2000 and has been listed in the TecDAX technology index since 2004.

Bechtle's accounting standards and financial reporting comply with the International Financial Reporting Standards (IFRS) as applied in the EU.

Note: Due to rounding differences, percentages stated in the report may differ slightly from the corresponding amounts in millions of euros. Similarly, totals may differ from the individual values.

BUSINESS ENVIRONMENT

MACROECONOMIC ENVIRONMENT

According to information provided by the European Central Bank, the economic growth in the EU was weaker in the second quarter than in the prior quarter. The continuous decline in consumer trust indicators in particular, which started in the summer of 2007, is considered to be an indication of a slow-down in economic dynamism.

According to estimates by the German Institute for Economic Research (DIW), the growth of the German economy in the second quarter amounted to just under 0.3 per cent over the prior quarter. The mood indicators published in July reflect a rather dreary estimation of the economic situation in Germany in the second quarter. The ifo business climate index dropped to the lowest level in three years. Though the index suggests that the German economy is still in a positive condition, the expectations for the future development are rather weak. In view of the increased global economic risks, the ZEW index has dropped as well, pointing to a decline in growth.

Surprisingly, the purchasing manager index for German service providers in June 2008 was able to recover, to a level of 53.3 points. Nevertheless, a five-year low of 48.3 points was reached in the euro zone. This means that service providers maintain a very negative outlook for the future in Europe.

IT MARKET AND INDUSTRY ENVIRONMENT

In the second quarter, the general mood in the IT industry was positive, though slightly less so than in the prior quarters. The BITKOM industry index – which considers the entire ITC market – receded by four points to 36 points in the second quarter, the lowest it has been on the past three years. In fact, the mood in the software & IT services segment was much better. 60 per cent of the surveyed companies expected higher sales in the second quarter; only 11 per cent feared a decline. According to BITKOM, the demand for information and communication technology remains high.

In the second quarter, the ifo index for IT service providers was largely consistant: it increased from 42 points in April to 43 in May and returned to 42 by the end of the quarter. The mood was stable, though it failed to reach January's peak of 49 points.

BUSINESS PERFORMANCE

REVENUE PERFORMANCE

In the second quarter of 2008, the Bechtle Group was able to follow up on the successful performance of the prior quarter. With revenue of 344.5 million euros in the reporting quarter, the company recorded an increase of 7.8 per cent compared to the prior year. Compared to the prior year period, the group's revenue in the first half of the year increased by 7.9 per cent to 681.3 million euros (prior year: 631.5 million euros), a figure clearly above the IT market growth rates of 4.6 per cent specified by the industry associations and research institutes. Bechtle AG again generated most of its revenue (64.7 per cent; prior year: 64.1 per cent) in the domestic market.

In the IT system house segment, the group boosted its revenue in the second quarter by 7.4 per cent to 220.1 million euros (prior year: 204.9 million euros). Cumulatively, the revenue in this segment grew by 7.5 per cent to 427.8 million euros (prior year: 398.0 million euros). The domestic system houses experienced an above-average growth of 9.2 per cent, while the revenue of the international system houses remained steady at prior year levels. In the second quarter, purely organic growth accounted for almost the entire increase in this segment. The performance of Bechtle AG in the system house segment, which exceeded the market growth in the first half of the year, is the result of the ongoing high investment affinity of medium-sized enterprises and of the growth in projects involving managed services and public clients, both focal areas for Bechtle.

In the second quarter, the company was able to increase its revenue in the IT e-commerce segment by 8.4 per cent from 114.6 million euros to 124.3 million euros. While domestic revenue increased by 12.7 per cent, the growth in companies abroad amounted to 6.6 per cent. In the first two quarters of the current fiscal year, the revenue in this area increased by 8.6 per cent to 253.5 million euros (prior year: 233.4 million euros). During this period, the growth in the IT e-commerce segment exhibited a similar dynamism in all markets, with 8.0 per cent in the domestic market and 8.9 per cent abroad. The increase was caused especially by the expansion of sales activities across Europe and the revenue contribution of Buyitdirect, a company that was acquired in the last fiscal year.

Revenue according to segments in million euros

The revenue share generated by the IT system house segment receded slightly from 63.0 per cent to 62.8 per cent. The IT e-commerce segment increased its contribution to the group's revenue to 37.2 per cent (prior year: 37.0 per cent).

Based on an average of 3,918 full-time employees, total sales per employee in the first half of 2008 increased from 168.8 thousand euros in the prior year to 173.9 thousand euros. In the IT system house segment with an average of 2,986 employees, the sales per employee increased from 135.6 thousand euros to 143.3 thousand euros during this period. In the IT e-commerce segment, the significant increase in the average number of full-time employees from 804 to 932 within the scope of the implemented growth strategy resulted in a decrease in sales per employee from 290.3 thousand euros to 272.0 thousand euros.

	Q2/2008	Q2/2007	Change in quarter	1st half 2008	1st half 2007	Change in quarter
Group	344,465	319,582	7.8%	681,321	631,469	7.9%
Domestic	224,746	203,494	10.4%	440,830	404,660	8.9%
Abroad	119,719	116,088	3.1%	240,491	226,809	6.0%
IT system house	220,147	204,937	7.4%	427,810	398,047	7.5%
Domestic	185,934	169,049	10.0%	360,619	330,365	9.2%
Abroad	34,213	35,888	–4.7%	67,191	67,682	–0.7%
IT e-commerce	124,318	114,645	8.4%	253,511	233,422	8.6%
Domestic	38,812	34,445	12.7%	80,211	74,295	8.0%
Abroad	85,506	80,200	6.6%	173,300	159,127	8.9%

Revenue performance – group and segments in th. euros

EARNINGS PERFORMANCE

In the second quarter, cost of sales in relation to revenue fell slightly to 85.4 per cent (prior year: 86.2 per cent). The gross margin thus increased to 14.6 per cent compared to the reference period (prior year: 13.8 per cent). Accordingly, gross earnings climbed by 14.3 per cent to 50.4 million euros, compared to 44.1 million euros in the prior year. Among other reasons, the number of workdays in the second quarter was greater than in the prior year. Due to the disproportionately low development of the cost of sales, the group recorded a rise of the gross margin to 14.7 per cent in the first half of the year (prior year: 13.9 per cent). In absolute terms, the gross earnings in the first half of the year amounted to 100.2 million euros, compared to 88.1 million euros in the prior year, an increase of 13.8 per cent. The progress of the gross earnings is basically the result of an improved cost position and the expanding offering of higher quality services.

The distribution cost ratio increased slightly to 6.4 per cent in the quarter, as well as in the sixmonth period, compared to 6.3 per cent in the corresponding prior year periods. In the second quarter, the share of administrative expenses in revenue amounted to 5.5 per cent, compared to 5.6 per cent in the prior year. Aggregated over the first six months of 2008, the administrative cost ratio advanced slightly from 5.3 per cent to 5.5 per cent. The trend of the sales and administrative expenses in the first half of the year is related to the intensified international sales activities and the implemented growth-oriented structural measures.

Due to reduced marketing grants, other operating income in the second quarter reached 1.4 million euros, compared to 2.9 million euros in the prior year. Compared to the prior year six-month period, the special effect of 2.6 million euros from the first quarter of 2007 was also evident. Thus, other operating income was 58.1 per cent lower in the first six months of 2008, totalling 3.0 million euros compared to 7.2 million euros in the prior year period.

In the second quarter, earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to 14.0 million euros, 15.5 per cent above the previous year's result. In the six-month period, the EBITDA of Bechtle AG increased by 2.7 per cent from 28.3 million euros to 29.0 million euros. In the same period, scheduled amortisation and depreciation on other intangible assets and property, plant and equipment increased only slightly by 2.4 per cent from 6.3 million euros to 6.4 million euros.

In the second quarter of 2008, the operating earnings before interest and taxes (EBIT) amounted to 11.0 million euros, an increase of 21.1 per cent over the corresponding prior year quarter (9.1 million euros). Thus, despite the special non-operating revenues contained in the prior year, the group was able to push up the cumulative EBIT for the first six months of the 2008 fiscal year by 2.8 per cent to 22.6 million euros.

In the reporting quarter, the balance of the interest income and interest expenses (financial earnings) amounted to 0.5 million euros (prior year: 0.1 million euros). Accordingly, the group's earnings before taxes (EBT) increased by 25.2 per cent to 11.5 million euros in the second quarter of 2008 (prior year: 9.2 million euros). This represents an EBT margin improvement from 2.9 per cent to 3.3 per cent. With interest earnings of 0.9 million euros in the first two quarters (prior year: 0.4 million euros), the EBT amounted to 23.5 million euros, which is 5.0 per cent above the prior year (22.4 million euros). Thus, the EBT margin for the group in the first half of 2008 was 3.5 per cent, as in the prior year. Adjusted by the special effect of the first quarter of 2007, the EBT margin exhibited a substantial improvement from 3.1 per cent to 3.5 per cent.

In the first six months, income tax expenses receded by 16.2 per cent to 6.4 million euros (prior year: 7.6 million euros). This means a drop in the tax rate from 33.8 per cent to 27.0 per cent, mainly due to the domestic corporation tax reform.

In the six-month period, the earnings after tax increased by 15.8 per cent, reaching a figure of 17.2 million euros as of 30 June 2008, compared to 14.8 million euros in the corresponding prior year period. This means a net profit margin of 2.5 per cent compared to 2.3 per cent in the prior year period. On the unchanged basis of 21.2 million shares, the earnings per share (EPS diluted/basic) after six months amounted to 0.81 euros, compared to 0.70 euros in the prior year.

At segment level, the earnings situation was as follows:

In the second quarter of 2008, the EBIT in the IT system house segment exploded by 67.1 per cent to 7.2 million euros (prior year: 4.3 million euros). The EBIT margin increased by 2.1 per cent to 3.3 per cent. In the first half of 2008, Bechtle AG recorded an EBIT increase by 29.1 per cent from 10.1 million euros to 13.1 million euros in the IT system house segment. The special income included in the first quarter of the prior year could thus be fully compensated for, and the operating result even be surpassed. Consequently, the EBIT margin underwent a substantial improvement from 2.5 per cent to 3.1 per cent. This fine increase in earnings is mainly the result of the positive business development of the domestic system houses in the project business and in the managed services environment.

Compared to the prior year period, the EBIT in the IT e-commerce segment in the second quarter of the current fiscal year decreased from 4.7 million euros to 3.7 million euros. Thus, the EBIT margin in the quarter was 3.0 per cent. In this area, the group's accumulated operating result at the end of the first half of the year amounted to 9.5 million euros (prior year: 11.9 million euros). This represents a 19.7 per cent decrease. The EBIT margin after the first two quarters of 2008 was 3.8 per cent, compared to 5.1 per cent in the prior year. This development reflects the disproportionately low revenue performance in relation to the expenses for employees hired in this segment in 2008 as well as the required proactive investments for the expansion of the Comsoft and ARP activities across Europe.

	Q2/2008	Q2/2007	Change in quarter	1st half 2008	1st half 2007	Change in quarter
Group	10,964	9,055	+21.1%	22,582	21,977	+2.8%
IT system house	7,249	4,337	+67.1%	13,057	10,115	+29.1%
IT e-commerce	3,715	4,718	–21.3%	9,525	11,862	–19.7%

EBIT performance – group and segments in th. euros

ASSET AND CAPITAL STRUCTURE

As of 30 June 2008, the balance sheet total of the Bechtle Group amounted to 429.8 million euros, a figure that is, due to seasonal effects, 21.6 euros or 4.8 per cent lower than the figure as of 31 December 2007.

On the asset side, non-current assets remained almost unchanged, totalling 146.1 million euros (31.12.2007: 145.6 million euros). The investment ratio (ratio of non-current assets to the balance sheet total) increased from 32.2 per cent to 34.0 per cent.

As of 30 June 2008, the current assets declined by 7.2 per cent to 283.8 million euros, mainly due to seasonal effects (31.12.2007: 305.9 million euros). Following the stock disposal in the strong final quarter of 2007, the stocks again went up by 8.5 million euros to 55.3 million euros. At the same time, however, trade receivables dropped from the high level at the end of the year by 11.2 million to 178.1 million euros. Cash and cash equivalents, too, dropped from 52.3 million euros to 38.1 million euros. This was due to the dividend payment of 12.7 million euros in June 2008. The decline in other current assets from 13.4 million euros to 8.5 million euros as of 30 June 2008 is related to manufacturer refunds that were due in the fourth quarter of last year but that had not yet been paid out.

As of the end of the first half of the year, Bechtle had access to global credit lines worth 44.9 million euros and bank guarantees worth 0.9 million euros. As of the balance sheet date, 1.8 million euros of this amount had been utilised by bank guarantees and 0.9 million euros by cash advances, reducing the available credit lines to 43.1 million euros. Thus, as of 30 June 2008, Bechtle had a comfortable liquidity reserve of 81.2 million euros at its disposal.

On the liabilities side, non-current liabilities receded to 20.2 million euros as of 30 June 2008 (31.12.2007: 23.8 million euros). Here, the almost complete clearance of financial liabilities was effective: most of the liabilities had a term to maturity of less than one year and were therefore allocated to current financial liabilities.

Most of the changes in current liabilities were due to seasonal factors. Compared to the end of 2007, the trade liabilities dropped from 88.3 million to 72.9 million euros. Other current liabilities subsided from 35.3 million to 26.5 million euros. This effect was caused primarily by the reduction of the balance sheet item "personnel liabilities", which was greatly influenced by performancerelated compensation components paid out in the first six-month period. In total, the current liabilities at the end of the six-month period amounted to 126.7 million euros (31.12.2007: 151.2 million euros).

As of 30 June 2008, equity increased from 276.5 million euros to 282.9 million euros. Thus, the equity ratio climbed to 65.8 per cent (31.12.2007: 61.2 per cent).

As the cash and cash equivalents plus securities were considerably higher than the current and non-current financial liabilities, the net debt totalled minus 32.5 million euros (31.12.2007: minus 44.5 million euros).

Due to the increase in equity along with the decrease in liabilities, the debt ratio (ratio of debt capital to equity) improved to 0.52 (31.12.2007: 0.63).

In the first six months, the equity to non-current assets ratio increased from 189.9 per cent to 193.7 per cent.

Compared to the first six months of the prior year, the cash flow from operating activities dropped from 18.1 million euros to 8.2 million euros. This was due to the high business performance in the second quarter, especially in June, which resulted in a disproportionately high build-up of stocks and a slower reduction of trade receivables than in the prior year period.

In the six-month period, cash outflows from investing activities amounted to 6.5 million euros, compared to 4.3 million euros in the corresponding prior year period. The previous year's figure had been affected by an inflow from the sale of a property in Switzerland. In the first half of 2008, the payments for the acquisition of consolidated companies amounted to 2.9 million euros, far below the prior year value of 6.2 million euros. This was related to the acquisition of BadenData in Offenburg and the payment of purchase prices in connection with acquisitions from the prior year. The payments for investments in intangible assets and in property, plant and equipment increased from 3.9 million euros to 5.6 million euros. This amount includes the purchase of land for the extension of the logistics building at the company headquarters.

In the six-month period, the negative cash flow from financing activities amounted to 16.6 million euros, compared to 15.7 million euros in the prior year, and was mainly characterised by the repayment of loans and the higher distribution of dividends.

The working capital increased at a faster rate than the revenue and closed at 159.2 million euros, compared to 135.2 million euros as of 30 June 2007. The working capital amounted to 23.4 per cent of the group revenue, compared to 21.4 per cent on the prior year reporting date. The increase is mainly connected to the reporting date-oriented pre-financing of the revenue at the end of the six-month period, and the higher stock levels due to the growing influx of orders.

In the six-month period, the free cash flow amounted to minus 0.1 million euros, compared to 8.3 million euros in the corresponding period in the previous year. This was mainly due to the fact that the cash flow from operating activities was much lower in the first quarter of 2008 than in the prior year quarter, and also due to the higher cash outflow for purchase price payments. However, the free cash flow underwent a positive development in the second quarter of 2008, totalling 0.4 million euros, compared to minus 2.3 million euros in the prior year quarter. In the prior year, acquisitions in the second quarter had generated an increased cash outflow.

EMPLOYEES

As of the reporting date 30 June 2008, the Bechtle Group had a total of 4,249 employees, including individuals on maternity leave or in military or civilian service. The headcount at the end of the second quarter was thus at the same level as on 31 December 2007 (4,250).

In the first half of 2008, the number of domestic employees climbed from 3,036 to 3,060. This growth was mainly triggered by the expansion of the IT e-commerce segment. In other countries, the number of employees of the group was reduced slightly to 1,189 (31 December 2007: 1,214).

As of the reporting date, the IT system house segment had a total of 3,246 employees, 57 less than as of 31 December 2007. The headcount difference in the system house segment is mainly due to project-specific temporary employment contracts that duly expired at the end of the year. At the end of the first half of 2008, the IT e-commerce segment had 1,003 employees, 56 more than as of 31 December 2007.

In the first six months of the 2008 fiscal year, personnel expenses increased by 7.4 per cent – a growth rate below that of the revenue performance – to 108.9 million euros (previous year: 101.4 million euros). The personnel expense ratio thus dropped from 16.1 per cent to 16.0 per cent. Based on an average number of 4,159 full-time employees (including trainees), the personnel expenses per employee increased from 25,6 thousand euros to 26,2 thousand euros in the first half of 2008.

OPPORTUNITIES AND RISKS REPORT

In line with the long-term focus of Bechtle's strategy and business management, the opportunities and risks for the second half of 2008 are identical to the scenarios detailed on pages 74 to 84 of the annual report 2007. Concerning the second half of 2008, it is important to remember the cyclic nature of the business of Bechtle AG, especially against the background of a potential slackening of the economic situation. The second six-month period and especially the fourth quarter account for an exceptionally high proportion of the revenue and earnings.

NOTEWORTHY EVENTS IN THE SECOND QUARTER

As of 1 April 2008, Bechtle AG acquired 100 per cent of the interests in BadenData GmbH, Offenburg. Apart from being an attractive regional extension, the company complements the IT service offer in connection with computer networks within the Bechtle Group. Thus, in addition to the system houses in Freiburg and Karlsruhe, Bechtle now has a third location in the Upper Rhine region and is now present in Baden-Württemberg's largest administrative district.

NOTEWORTHY EVENTS AFTER THE REPORTING PERIOD

Bechtle AG consistently implemented a further step within the scope of its market strategy in the system house segment: By means of the acquisition of Madras Computer Vertriebsgesellschaft mbH in Vienna as of 10 July 2008, the group has gained access to the system house market in Austria – another step toward the goal of achieving coverage of the German-speaking market. The group considers the Vienna subsidiary as a base camp for future intensification of system house activities in Austria. In the Austrian market, Madras Computer, which was established in 1990, is a renowned specialist for system integration in the fields of enterprise storage, backup solutions, IT infrastructure and security. In accordance with Bechtle's profiles, the range of customers of the system house includes public clients and medium-sized enterprises.

Bechtle continued to bundle its software activities under the brand Comsoft direct. Apart from the existing Comsoft subsidiaries in France and Switzerland, additional subsidiaries were established in Germany and in the Netherlands in 2007. Since 21 July 2008, the Bechtle Group is also present in the Austrian market in the form of Comsoft direct GmbH in Vienna. The successful software competence centre of the Bechtle subsidiary, ARP Datacon, was integrated in the newly formed company. Within the Bechtle Group, Comsoft direct is a specialist for software licensing and management, providing a cross-vendor full-service solution portfolio ranging from sales and procurement to maintenance and project management.

THE SHARE

The first half of the year was overshadowed by critical aspects such as the persistent financial crisis, growing fears of inflation and high oil prices. Many share indices reached important trend lines and were tensed. At the beginning of the second half of the year, the situation in international capital markets continued to be rather gloomy.

On 30 June 2008, the TecDAX index, which is relevant for Bechtle, scored 770.58 points, a value that is 21.0 per cent lower than the opening price at the beginning of the year. Following an opening price of 27.00 euros on 2 January 2008, the Bechtle share stabilised at a price of 17.95 euros on 30 June 2008, a drop of 33.5 per cent. The share peaked on the first trading day of the year, on 2 January 2008, at 27.86 euros. Subsequently, the six-month low of 17.51 euros was attained on 17 March 2008.

Compared to the prior year, the liquidity of the Bechtle share improved considerably, also thanks to intensified investor relations. In the first two quarters of 2008, the transaction volume averaged 77,833 shares (prior year: 52,688 shares) worth 1,612,493 euros (previous year: 1,207,682 euros) per trading day. The total trading volume in the reporting period amounted to 9.8 million Bechtle shares. At the end of the six-month period, the absolute market capitalisation was 380.5 million euros; in relation to the free float, it amounted to 188.3 million euros.

The Annual General Meeting of 17 June 2008 adopted a resolution concerning the payment of a dividend of 0.60 euros per no-par share. This represents an increase of 20 per cent compared to the prior year. The dividend yield thus amounts to 3.1 per cent in relation to the closing price on the day of the Annual General Meeting. According to the supervising analysts, most of whom recommend buying the share, Bechtle continues to be an attractive investment, regardless of any price fluctuations.

OUTLOOK

MACROECONOMIC ENVIRONMENT

For this year, the ifo institute expects only moderate growth for the euro zone economy. Thus, the institute predicts a GDP growth of 1.6 per cent in the euro zone. The increase of the domestic demand is expected to slow down considerably. According to the experts, the foreign trade may even follow a slightly negative trend due to the weaker global economy.

The estimates for the German GDP vary considerably. Despite the difficult economic situation and the rise in inflation, the German Institute for Economic Research (DIW) expects a further pickup in Germany, with a GDP of 2.7 per cent in 2008. The ifo institute expects a value of 2.4 for this year. In a less optimistic vein, the Federal Government projects a GDP increase of only 1.7 per cent for the current year. In contrast, expectations for 2009 are quite consistent: GDP forecasts range from 1.0 per cent to 1.2 per cent. According to the experts, the high inflation will further curb private consumption. In the current year, especially upgrade investments of enterprises are expected to drive growth. As early as 2009, imports are expected to grow significantly and exceed exports.

IT MARKET AND INDUSTRY ENVIRONMENT

Following the positive growth in 2007 and 2008 to date, VDEB, the association of medium-sized IT enterprises, expects the economic environment to become more turbulent for medium-sized IT enterprises by 2009. Moreover, the association holds that the more stringent creditworthiness checks conducted by banks will make things more difficult for small and medium-sized enterprises, whose equity is often limited, especially in the IT industry.

The market researchers of IDC project IT expenditures in Germany to grow by 4.6 per cent per year for the next four years. However, they believe that the dynamism in the IT market will only slow down temporarily, due to the crisis in the financial markets and the global economic slow-down. In the future, the software segment is expected to be the key growth driver. According to the estimates, the market for IT services, which now accounts for 42 per cent of the overall market, will continue to grow. In contrast, the ongoing price slump in the field of hardware will result in a weak performance in this area. On the other hand, growing public investments, which may partly compensate for the restrictive investment behaviour of enterprises, are expected to contribute to higher IT expenditures.

The "Internet of Services" workgroup reached a similar conclusion, stating that medium-sized enterprises and IT services will experience the highest growth within the ITC market up until 2020.

PERFORMANCE OF THE BECHTLE GROUP

The performance of Bechtle AG in the first half of the current fiscal year is in line with the expectations of the management. The special non-operating effect from the prior year amounting to 2.6 million euros could not only be neutralised, but even exceeded. On this basis, the Executive Board affirms the forecast for the entire year 2008, which was published in late March, with revenue of at least 1.5 billion euros and an EBT of about 60 million euros. However, especially against the background of the cyclic business of Bechtle AG, these goals can only be reached if the economic framework parameters do not deteriorate further in the second half of the year. In this connection, the decisive factor is to what the extent identified macroeconomic decline will have an impact on the IT market environment.

Forward-looking statements

This interim financial report contains statements that relate to the future performance of Bechtle AG. Such statements are based on assumptions and estimates. Though the Executive Board is convinced that these predictive statements are realistic, this cannot be guaranteed. The assumptions are subject to risks and uncertainties that may result in consequences that differ substantially from those anticipated.

Neckarsulm, 14 August 2008

Bechtle AG

The Executive Board

// CONSOLIDATED INTERIM FINANCIAL STATEMENTS

as of 30 June 2008

Consolidated Income Statement	15
Consolidated Balance Sheet	16
Consolidated Cash Flow Statement	18
Statement of recognised Income and Expense	19

// CONSOLIDATED INCOME STATEMENT

from 1 January to 30 June 2008 (2007)

01.04.– 30.06.2008	01.04.– 30.06.2007	01.01.– 30.06.2008	01.01.– 30.06.2007
344,465	319,582	681,321	631,469
294,067	275,472	581,112	543,384
50,398	44,110	100,209	88,085
22,058	20,064	43,299	39,765
18,796	17,887	37,357	33,568
1,420	2,896	3,029	7,225
10,964	9,055	22,582	21,977
627	251	1,092	668
81	111	154	235
11,510	9,195	23,520	22,410
3,072	3,395	6,352	7,579
8,438	5,800	17,168	14,831
21	13	37	23
8,417	5,787	17,131	14,808
0.3971	0.2730	0.8081	0.6985
21,200	21,200	21,200	21,200

// CONSOLIDATED BALANCE SHEET

as of 30 June 2008 (31 December 2007)

ASSETS	30.06.2008	31.12.2007
NON-CURRENT ASSETS
Goodwill	100,678	99,909
Other intangible assets	18,013	19,214
Property, plant and equipment	20,239	19,563
Investment property	203	203
Other non-current assets	2,214	2,210
Deferred taxes	4,709	4,461
Total non-current assets	146,056	145,560
CURRENT ASSETS
Inventories	55,340	46,817
Trade receivables	178,148	189,312
Securities	852	1,929
Tax receivables	2,871	2,110
Other current assets	8,464	13,395
Cash and cash equivalents	38,091	52,300
Total current assets	283,766	305,863
Total assets	429,822	451,423

EQUITY AND LIABILITIES	30.06.2008	31.12.2007
EQUITY
Issued capital	21,200	21,200
Capital reserve	143,454	143,454
Revenue reserves	117,811	111,457
Equity before minority interest	282,465	276,111
Minority interest on equity	391	354
Total equity	282,856	276,465
NON-CURRENT LIABILITIES
Pension provisions	5,964	5,775
Other provisions	319	227
Financial liabilities	22	3,709
Other non-current liabilities	0	176
Deferred income	3,738	3,769
Deferred taxes	10,197	10,102
Total non-current liabilities	20,240	23,758
CURRENT LIABILITIES
Other provisions	6,339	6,052
Financial liabilities	6,445	6,049
Prepayments received	1,560	4,439
Trade payables	72,876	88,274
Tax payables	4,646	6,055
Other current liabilities	26,466	35,301
Deferred income	8,394	5,030
Total current liabilities	126,726	151,200
Total equity and liabilities	429,822	451,423

// CONSOLIDATED CASH FLOW STATEMENT

from 1 January to 30 June 2008 (2007)

in th. euros

	01.01.–30.06.2008	01.01.–30.06.2007
CASH FLOW FROM OPERATING ACTIVITIES
Earnings before taxes	23,520	22,410
Adjustment for non-cash income/expenses
Interest income	–938	–444
Depreciation and amortisation in intangible assets and property	6,437	6,284
Gains (–)/Losses (+) on disposals of intangible assets and
property, plant and equipment	221	–93
Gain from sale of non-current assets held for sale	0	–1,893
Other non-cash income/expenses	–557	114
Changes in working capital
Changes inventories	–7,993	–4,564
Changes trade receivables	13,369	23,691
Changes trade payables and prepayments received	–19,506	–18,873
Changes other working capital	2,682	–2,859
Cash flow from ordinary operations	17,235	23,773
Income taxes paid	–8,988	–5,714
Net cash from operating activities	8,247	18,059
CASH FLOW FROM INVESTING ACTIVITIES
Cash paid for the acquisition of consolidated entities less cash acquired	–2,904	–6,229
Cash paid for investments in intangible assets and property,
plant and equipment	–5,598	–3,901
Cash received from sale of intangible assets and property,
plant and equipment	130	391
Cash paid for investments in securities and other non-current assets	–43	–155
Cash received from sale of securities and other non-current assets	1,112	502
Cash received from sale of non-current assets held for sale	0	4,476
Interest payments received	826	628
Net cash used in investing activities	–6,477	–4,288
CASH FLOW FROM FINANCING ACTIVITIES
Cash received from finance liablilites	989	0
Cash paid for finance liablilites	–4,682	–4,915
Dividends paid	–12,720	–10,600
Interest paid	–157	–219
Net cash used in investing activities	–16.570	–15,734
Net foreign exchange difference in cash and cash equivalents	591	–532
Changes in cash and cash equivalents	–14,209	–2,495
Cash and cash equivalents at the beginning of the period	52,300	36,710
Cash and cash equivalents at the end of the period	38,091	34,215

The previous year figures have been adjusted, cf. Notes, section II "Adjusted disclosure of comparative information".

// STATEMENT OF RECOGNISED INCOME AND EXPENSE

from 1 January to 30 June 2008 (2007)

	01.01.–30.06.2008	01.01.–30.06.2007
Actuarial profit and loss in pension provisions	–174	137
Deferred taxes	34	–27
Unrealised profit and loss on financial derivatives	–120	0
Deferred taxes	1	0
Unrealised profit and loss on financial derivatives	–33	20
Deferred taxes	9	–6
Changes in difference from foreign currency translation	2,226	–1,850
Income and expense recognised directly in equity	1,943	–1,726
Earnings after taxes	17,168	14,831
Total recognised income and expense after taxes	19,111	13,105
of which share of minorities	37	23
of which share of Bechtle AG shareholders	19,074	13,082

// CONSOLIDATED INTERIM FINANCIAL STATEMENTS as of 30 June 2008

Notes to the Consolidated Interim Financial Statements

I.	General statements	21
II.	Principles of accounting and consolidation	21
III.	Scope of consolidation	22
IV.	Explanatory notes on the balance sheet and income statement	22
V.	Segment reporting	23
VI.	Acquisitions and purchase price allocations	25
	VII. Employee numbers	27
	VIII. Events after the end of the reporting period	27

I. GENERAL STATEMENTS

Bechtle AG, Bechtle Platz 1, 74172 Neckarsulm, as a listed company, is obliged under article 315a of the German Commercial Code (HGB) to prepare its consolidated financial statements on the basis of the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and adopted by the EU. This interim financial report of 30 June 2008 has accordingly been produced in compliance with IFRS.

In accordance with IAS 34, a significantly abridged scope has been selected for the presentation of the present interim financial report, dated 30 June 2008, in comparison with the consolidated financial statements as of the end of the fiscal year. Allowance has also been made for the requirements going beyond IAS 34 under DRS 6 and DRS 16 near-final draft pursuant to article 63 of the Stock Exchange Regulations for the Frankfurt Stock Exchange, and these requirements have been completely met.

II. PRINCIPLES OF ACCOUNTING AND CONSOLIDATION

The same principles of accounting and consolidation have been applied as for the consolidated financial statements at the end of the 2007 fiscal year. For further information, reference is made to the consolidated financial statements up to 31 December 2007, which constituted the basis for this interim financial report. These can be called up via the internet under www.bechtle.com.

Income taxes

Tax expenditure was determined according to IAS 34 in the interim period, based on the effective tax rate expected for the entire fiscal year. Allowance has been made for taxes relating to extraordinary circumstances in the quarter in which they occurred.

The 2008 Corporate Tax Reform Act, which came into effect in Germany on 1 January 2008, reduces the overall tax burden on corporations to just under 29 per cent (prior year: approx. 38 per cent).

Deferred tax assets and liabilities based on the tax rates are used to calculate the deferred taxes in the consolidated financial statements in the period in which an asset was realised or a liability met. The revaluation of long-term deferred tax claims and liabilities was already made in 2007, following the passing of the 2008 corporate tax reform on 6 July 2007 by the upper house of the German parliament.

Adjusted disclosure of comparative information

The corrections to prior year values made to the consolidated financial statements up to 31 December 2007 resulting from the retroactive adjustment (IAS 8) of deferred tax provisions and currency translations not affecting profit and loss have led to a correspondingly adjusted disclosure of Group equity to 1 January 2007.

The extended breakdown of items in the Group cash flow statement in the consolidated financial statements up to 31 December 2007 have led to a correspondingly adjusted disclosure of comparative information in the period 1 January to 30 June 2008.

III. SCOPE OF CONSOLIDATION

Bechtle AG, Neckarsulm and all its majority owned and controlled subsidiaries are included in the consolidated financial statements. Directly or indirectly, Bechtle AG owns all the shares in all the consolidated companies. Exceptions apply to PSB AG for programming and system consulting, Neckarsulm, and its subsidiaries, in which Bechtle AG holds a 98.3 per cent interest, and to Buyitdirect.com N.V., Hoofddorp, the Netherlands and its subsidiary, in which Bechtle AG holds a 99.8 per cent interest.

The companies below have been included in the consolidated financial statements for the first time in this reporting period:

COMPANY	Head office	Date of initial consolidation	Acquisition/ founding
Comsoft direkt GmbH	Neckarsulm	01.01.2008	Founding
Bechtle Printing Solutions AG	Bremgarten,
	Kanton Aargau,
	Switzerland	01.01.2008	Founding
BadenData GmbH *)	Offenburg	01.04.2008	Acquisition
*) recently renamed as Bechtle GmbH

IV. EXPLANATORY NOTES ON THE BALANCE SHEET AND INCOME STATEMENT

Equity

The trend in consolidated equity is apparent from the statement of changes below.

	Issued	Capital	Revenue reserves		Equity	Minority	Total
	capital	reserves	Accrued profits	Other compre hensive income	without minority interests	interest	equity
Equity as of 1 January 2007	21,200	143,454	90,826	–6,555	248,925	289	249,214
Dividend for 2006			–10,600		–10,600		–10,600
Earnings after taxes			14,808		14,808	23	14,831
Earnings and expenditure directly reported
in equity				–1,726	–1,726		–1,726
Changes in scope of consolidation					0	16	16
Equity as of 30 June 2007	21,200	143,454	95,034	–8,281	251,407	328	251,735
Equity as of 1 January 2008	21,200	143,454	121,123	–9,666	276,111	354	276,465
Dividend for 2007			–12,720		–12,720		–12,720
Earnings after taxes			17,131		17,131	37	17,168
Earnings and expenditure directly reported
in equity				1,943	1,943		1,943
Equity as of 30 June 2008	21,200	143,454	125,534	–7,723	282,465	391	282,856

As already mentioned under point II "Adjusted disclosure of comparative information", equity values to 1 January 2007 have been adjusted against the original publication. The value of aggregate profits as per 1 January 2007 changed by –2,474 thousand euros, falling from 93,300 thousand euros to 90,826 thousand euros. The value of the accumulated revenue-neutral earnings up to 1 January 2007 suffered a correction as a result of the –354 thousand euros adjustment due to exchange translation differences, moving from –6,210 thousand euros to –6,555 thousand euros.

Dividends

At the Annual General Meeting of 17 June 2008, a resolution was passed to distribute a dividend of 0.60 euros for each individual share certificate for the 2007 fiscal year (dividend total: 12,720 thousand euros). Payment of the dividends took place on 18 June 2008.

Earnings per share

The table below shows the calculation of earnings per ordinary share after taxes excluding minority interest.

	01.01.–30.06.2008	01.01.–30.06.2007
Earnings after taxes (th. euros)	17,168	14,831
of which share of minorities (th. euros)	37	23
of which share of Bechtle AG shareholders
(th. euros)	17,131	14,808
Average number of shares (unit)	21,200,000	21,200,000
Earnings per share (euros)	0.8081	0.6985

Under IAS 33, the earnings per share are determined on the basis of the earnings after taxes without minority interest and the average number of shares in circulation in the reporting period. The basic earnings per share are identical with the diluted earnings per share.

V. SEGMENT REPORTING

The same principles apply to the creation of the segment report as to the consolidated financial statements for the fiscal year 2007.

in th. euros

ACCORDING TO SEGMENTS		01.01.–30.06.2008		01.01.–30.06.2007
	IT system house	IT e-commerce	Total Group	IT system house	IT e-commerce	Total Group
External revenue	427,810	253,511	681,321	398,047	233,422	631,469
Depreciation	4,484	1,953	6,437	4,569	1,715	6,284
Operating profit	13,057	9,525	22,582	10,115	11,862	21,977
Interest result			938			433
Earnings before taxes			23,520			22,410
Investments	4,499	1,099	5,598	2,934	967	3,901
Investments by changing
scope of consolidation	267	0	267	4,403	2,613	7,016

in th. euros

	30.06.2008				31.12.2007
	IT system house	IT e-com merce	Not allocated pursuant to IAS 14	Total Group	IT system house	IT e-com merce	Not allocated pursuant to IAS 14	Total Group
Gross assets of segments	251,990	131,324	46,508	429,822	247,718	142,258	61,447	451,423
Liabilities of segments	61,906	41,582	43,478	146,966	70,141	50,086	54,731	174,958

in th. euros

ACCORDING TO REGIONS		01.01.–30.06.2008		01.01.–30.06.2007
	Domestic market	Abroad	Total Group	Domestic market	Abroad	Total Group
External revenue	440,830	240,491	681,321	404,660	226,809	631,469
Investments	4,057	1,541	5,598	2,671	1,230	3,901
Investments by changing
scope of consolidation	267	0	267	1,242	5,774	7,016

	30.06.2008				31.12.2007
	Domestic market	Abroad	Not allocated pursuant to IAS 14	Total Group	Domestic market	Abroad	Not allocated pursuant to IAS 14	Total Group
Gross assets of segments	203,237	180,077	46,508	429,822	201,568	188,408	61,447	451,423
Liabilities of segments	43,636	59,852	43,478	146,966	48,361	71,866	54,731	174,958

VI. ACQUISITIONS AND PURCHASE PRICE ALLOCATIONS

BADENDATA GMBH, OFFENBURG

All shares in BadenData GmbH, Offenburg, had been acquired at the time of acquisition on 1 April 2008,.

The purchase price allocation under IFRS 3.36 ff is still currently being definitively determined. The company acquisition according to the purchase method is therefore recognised on the balance sheet on the basis of provisional values (IFRS 3.62).

In addition to the appointed assets and liabilities accrued from the acquired company, a customer base (150 thousand euros) was newly identified on a provisional basis pursuant to the IFRS 3 in connection with IAS 38. During the course of capitalising the customer base, which is depreciated over five years, deferred tax liabilities were created (44 thousand euros).

With due regard to the total acquired net assets (102 thousand euros), the capital consolidation gave rise to a preliminary difference of 93 thousand euros which is stated as goodwill.

Through the acquisition of BadenData (5 employees), the Bechtle Group has been strengthened in its IT system house segment by having its own location in the economically-attractive Ortenau district. BadenData GmbH has, in the meantime, been renamed Bechtle GmbH.

In balance sheet terms, the acquisition at the time of initial consolidation with provisional values appears as follows:

in th. euros

NON-CURRENT ASSETS
Goodwill	93
Other intangible assets	150
Property, plant and equipment	24
	267
CURRENT ASSETS
Inventories	15
Trade receivables	93
Other current assets	18
Cash and cash equivalents	44
	170
Total assets	437
NON-CURRENT LIABILITIES
Deferred taxes	44
	44
CURRENT LIABILITIES
Trade payables	65
Other current liabilities	27
	92
Total liabilities	136
Total assets
– Total liabilities = Costs of purchase	301

The costs of purchase produced an outflow of cash and cash equivalents at the same amount.

In the year under review, the company is included in the disclosed earnings after taxes of the Bechtle Group with a contribution of –44 thousand euros.

VII. EMPLOYEE NUMBERS

The employee numbers break down as follows:

	30.06.2008	31.12.2007	01.01.– 30.06.2008	01.01.– 30.06.2007
Full-time employees	3,949	3,921	3,918	3,740
Trainees	225	257	241	227
Employees on maternity leave or on
military/civilian service	75	72	71	62
Auxiliaries	110	114	112	111
Total	4,359	4,364	4,342	4,140

VIII. EVENTS AFTER THE END OF THE REPORTING PERIOD

Per purchase agreement dated 10 July 2008, the acquisition of the totality of the shares of Madras Computer Vertriebsgesellschaft mbH, Vienna, Austria was agreed. Execution of the purchase agreement is contingent on the approbation of the competition authorities. The time of acquisition and the allocation of the purchase price pursuant to IFRS 3 are currently being determined. With the acquisition of Madras (12 employees), the Bechtle Group has established a first beachhead in the IT system house segment in Austria, and represents a continuation of its strategy to achieve geographical coverage in the region comprising Germany, Austria and Switzerland.

No other events of particular significance occurred during the reporting period.

Neckarsulm, 14 August 2008

Bechtle AG

The Executive Board

// RESPONSIBILITY STATEMENT BY THE EXECUTIVE BOARD

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

Neckarsulm, 14 August 2008

Bechtle AG

The Executive Board

Ralf Klenk Dr. Thomas Olemotz

// AUDITING INFORMATION

The present interim financial report was neither audited according to article 317 of the HGB nor revised by the auditor.

// FINANCIAL CALENDAR

• // COMMERZBANK GERMAN TECHNOLOGY & TELECOMS CONFERENCE 26 August 2008, Frankfurt am Main
• // INTERIM REPORT 3rd QUARTER 2008 (1 July to 30 September) 14 November 2008 Conference Call with analysts, investors and media
• // ANNUAL REPORT 2008 27 March 2009
• // ACCOUNTS PRESS CONFERENCE 27 March 2009, Stuttgart
• // DVFA ANALYSTS' CONFERENCE 27 March 2009, Frankfurt am Main
• // INTERIM REPORT 1st QUARTER 2009 (1 January to 31 March) 14 May 2009 Conference Call with analysts, investors and media
• // ANNUAL GENERAL MEETING 16 June 2009, 10.00 a.m. Harmonie Concert and Congress Centre, Heilbronn
• // DIVIDEND PAYMENT FOR THE FISCAL YEAR 2008 as of 17 June 2009 (subject to approval by the Annual General Meeting)
• // INTERIM REPORT 2nd QUARTER 2009 (1 April to 30 June) 11 August 2009 Conference Call with analysts, investors and media
• // INTERIM REPORT 3rd QUARTER 2009 (1 July to 30 September)

11 November 2009 Conference Call with analysts, investors and media

PUBLISHED BY Bechtle AG, Neckarsulm

// INVESTOR RELATIONS

Bechtle AG Bechtle Platz 1 74172 Neckarsulm

Thomas Fritsche Phone +49 (0) 71 32/9 81-41 21 Fax +49 (0) 71 32/9 81-41 16 thomas.fritsche@bechtle.com

Martin Link Phone +49 (0) 71 32/9 81-41 49 Fax +49 (0) 71 32/9 81-41 16 martin.link@bechtle.com

Ute Thamm Phone +49 (0) 79 71/95 02-24 Fax +49 (0) 79 71/95 02-923 ute.thamm@bechtle.com

The Interim Report Q2/2008 was published on 14 August 2008. It is available in German and English. Both versions can be downloaded at www.bechtle.com/qb. On request, we would be pleased to send you further copies of the printed German version free of charge.

Bechtle AG Bechtle Platz 1 74172 Neckarsulm

Phone +49 (0 71 32) /9 81-0 Fax +49 (0 71 32) /9 81-80 00 ir@bechtle.com www.bechtle.com