Bechtle AG — Interim / Quarterly Report 2008

May 15, 2008

//INTERIM REPORT Q1

Bechtle – Your strong IT Partner. Today and Tomorrow.

// KEY FIGURES OF THE BECHTLE GROUP AT A GLANCE

According to IFRS
		01.01.– 31.03.2008	01.01.– 31.03.2007	Change in %
Revenue information
Revenue	th. euros	336,856	311,887	8.0
EBITDA	th. euros	14,975	16,100	–7.0
EBIT	th. euros	11,618	12,922	–10.1
EBT	th. euros	12,010	13,215	–9.1
Earnings after taxes	th. euros	8,730	9,031	–3.3
Earnings per share	euro	0.4110	0.4255	–3.4
Financial information
Cash Flow from operating activities	th. euros	4,286	12,312	–65.2
Working capital 1)	th. euros	150,949	126,920	18.9
Cash and cash equivalents 2)	th. euros	55,280	49,746	11.1
Operating figures
Cash Flow per share	euro	0.20	0.58	–65.2
Return on equity 3)	%	3.19	3.67	–13.1
Equity ratio	%	66.1	64.3	2.7
Number of employees 4)		4,238	4,007	5.8

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	2nd quarter	3rd quarter	4th quarter	2008 fiscal year
	1 January to 31 March	1 April to 30 June	1 July to 30 September	1 October to 31 December	1 January to 31 March
Revenue	336,856				336,856
EBITDA	14,975				14,975
EBIT	11,618				11,618
EBT	12,010				12,010
Earnings after taxes	8,730				8,730

// SEGMENT REPORTING

IT system house
		01.01.– 31.03.2008	01.01.– 31.03.2007	Change in %
Revenue information
Revenue	th. euros	207,663	193,110	7.5
EBITDA	th. euros	8,177	8,118	0.7
EBIT	th. euros	5,808	5,778	0.5
Number of employees 1)		3,237	3,160	2.4

IT e-commerce
		01.01.– 31.03.2008	01.01.– 31.03.2007	Change in %
Revenue information
Revenue	th. euros	129,193	118,777	8.8
EBITDA	th. euros	6,798	7,982	–14.8
EBIT	th. euros	5,810	7,144	–18.7
Number of employees 1)		1,001	847	18.2

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 30.03.2008 (Xetra)	euros	19.97
Share price performance	%	–26,0
Three-months high (Xetra closing price 02.01.2008)	euros	27.86
Three-months low (Xetra closing price 10.03. / 14.03.2008)	euros	18.35
Trading volume from 01.01 to 31.03.2008 (all German exchanges)	No.	5,948,368
Trading volume from 01.01. to 31.03.2008 (all German exchanges)	euros	126,458,728
March rankings on the German Stock Exchange according to market cap	Ranking	27
March rankings on the German Stock Exchange according to trade volume	Ranking	25
Market capitalisation (free float) as of 31.03.2008	million euros	209.5
Market capitalisation (total) as of 31.03.2008	million euros	423.4
Number of issued shares	No.	21,200,000
Free float	%	49.5
Number of shares entitled to dividend payout	No.	21,200,000
Proposed dividend for the fiscal year 2007	euro	0.60
Segment		Prime Standard
Index		TecDAX
Security identification code		515 870
ISIN		DE 0005158703

// INTERIM REPORT as of 31 March 2008

Bechtle's first quarter results up on previous year

• // Sales increase in the first 3 months by 8.0 per cent to 336.9 million euros
• // EBT adjusted for special effects grows by 12.7 per cent
• // Clear improvement in earnings by IT system house segment
• // IT e-commerce segment invests in further growth
• // Performance in line with expectations, Executive Board affirms annual targets

BUSINESS ACTIVITIES

Bechtle is present in Germany and Switzerland with a network of over 50 system houses, and with trading companies in nine countries it is one of the leading IT e-commerce providers in Europe. This combination forms the basis of the Bechtle business model that is unique in Europe; the combination of system house services with the direct marketing of IT products. The company that was established in 1983 and has its headquarters in Neckarsulm, Baden-Württemberg, offers its more than 56,000 customers, drawn predominantly from medium-sized industrial and commercial companies, the financial markets and the public sector a one-stop shop for IT infrastructure that is independent of manufacturers. 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: Percentage figures stated in the report may not correspond exactly to respective amounts in millions of euros due to rounding up effects. The same applies for sums and differences as compared with individual values.

BUSINESS ENVIRONMENT

OVERALL ECONOMIC ENVIRONMENT

The German economy according to the figures of the Deutsches Institut für Wirtschaftsforschung Berlin (DIW) grew in the first quarter by 0.5 percent compared to the previous quarter. For the ongoing second quarter the DIW business barometer is indicating growth of 0.4 per cent in the economy as a whole. Irrespective of the general instability in the world financial markets the German economy has therefore proved that it is still robust. The number of situations vacant also reflects the continued strength of company order books.

On the other hand some indicators of business sentiment have deteriorated in the first few months. The Ifo Business Climate Index underwent an unexpectedly heavy fall in April to 102.4 points, compared to 104.8 points in March. The index of the Centre for European Economic Research (ZEW), which reflects the view of financial analysts, also fell after briefly peaking in March to its lowest point for many years in April.

There was on the other hand a clear and unexpected rise in the Purchasing Manager Index for the services sector from 51.8 in the previous month points to 54.9 points in April, signalling increased dynamism in the services sector in Germany.

MARKET AND INDUSTRY ENVIRONMENT

The BITKOM industry index for the German ICT market at the end of the first quarter at 40 points was ten points below the value for the first quarter and at its lowest point for two years. The industry association attributes this development to the present uncertainty overhanging in the economy. Nevertheless nearly three quarters of the companies expect an increase in earnings this fiscal year.

According to the Ifo Institute, German IT service providers were satisfied with how their business performed in the first quarter. However the balance value which is used to assess the current situation fell from a peak of 49 points in January back to 45 points in March. The Ifo Business Climate Indicator which is used to assess the overall situation fell slightly compared to the previous month and stood at 35 percentage points in March. The reason for the drop according to the Ifo Institute was reduced companies' expectations for sustained growth.

BUSINESS PERFORMANCE

REVENUE DEVELOPMENT

The Bechtle Group's sales grew in the first three months of 2008 compared to the reference period of the previous year by 8.0 per cent to 336.9 million euros (previous year: 311.9 million euros ). Both segments contributed to this performance with marked increases in their rates of growth.

Sales by the IT system house segment grew by 7.5 per cent to 207.7 million euros (previous year quarter: 193.1 million euros). The domestic system houses increased their contribution by 8.3 per cent, those abroad by 3.7 per cent. The growth in the German market was purely organic, while the growth abroad was primarily due to acquisitions. The growth is due to a sustained readiness to invest by small to medium-sized companies in Germany and successes of the restructuring measures at Bechtle, particularly in the Managed Services and the Public Sector.

Sales by the IT e-commerce segment grew by 8.8 per cent from 118.8 million euros to 129.2 million euros. While domestic sales increased by 3.9 per cent, growth in the European companies contributed 11.2 per cent. The growth was due on the one hand to the expansion and ongoing training of the sales teams and on the other acquisitions and and the establishment of new companies.

As a result, the share of sales generated by the IT system house segment fell slightly from 61.9 per cent to 61.6 per cent. The IT e-commerce segment accordingly increased its contribution to Group sales to 38.4 per cent (previous year period: 38.1 per cent).

Sales per employee rose in the first quarter of 2008 with an average of 3,904 full-time employees. It stood at 86 th. euros, compared to 84 th. euros in the previous year quarter with an average of 3,703 full-time employees. In the segment IT system house the sales per employee with on average 2,983 full-time employees was 70 th. euros (previous year quarter: 66 th. euros with 2,920 full-time employees). In the segment IT e-commerce the sales per employee fell from 152 th. euros to 140 th. euros. The reason for this was the significant increase in the average number of full-time employees from 783 to 921.

At 64.1 per cent (previous year: 64.5 percent), the major share of Bechtle's sales were generated in the domestic market. The 7.4 percent increase in earnings of the German subsidiaries to 216.1 million euros (previous year: 201.2 million euros) was purely organic. Sales generated by foreign companies at 120.8 million euros was 9.1 per cent higher than in the previous year.

	Q1/2008	Q1/2007	Change in quarter
Group	336,856	311,887	+ 8.0%
Domestic	216,084	201,166	+ 7.4%
Abroad	120,772	110,721	+ 9.1%
IT system house	207,663	193,110	+ 7.5%
Domestic	174,685	161,316	+ 8.3%
Abroad	32,978	31,794	+ 3.7%
IT e-commerce	129,193	118,777	+ 8.8%
Domestic	41,399	39,850	+ 3.9%
Abroad	87,794	78,927	+ 11.2%

Sales performance – group and segments in th. euros

EARNINGS PERFORMANCE

The ratio of sales costs to overall sales fell slightly in the first quarter from 85.9 per cent to 85.2 per cent. This was above all due to the rise in the contribution of services and improved productivity of the service employees. Gross profit increased by 13.3 per cent from 44.0 million euros to 49.8 million euros. The gross margin thereby increased compared to the reference period from 14.1 per cent to 14.8 per cent.

The increase in distribution costs was relatively low at 7.8 per cent. However, the ratio of distribution costs to sales remained at the previous year level at 6.3 per cent. Administration costs increased as planned by 18.4 per cent to 18.6 million euros (previous year: 15.7 million euros). The ratio of administration costs to sales therefore rose from 5.0 per cent to 5.5 per cent. The reason for this is primarily the recruitment of employees as part of the Group's restructuring programme.

Other operating income fell considerably compared to the previous year quarter, coming in at 1.6 million euros (previous year: 4.3 million euros). In the previous year this item was impacted by one-off positive special effects totalling 2.6 million euros. Discounting these special effects, other operating income was only slightly below the previous year level (previous year quarter adjusted: 1.8 million euros).

At 15.0 million euros, earnings before interest, taxes, depreciation and amortisation (EBITDA) were 7.0 per cent below the previous year's figure. In order to perceive the strength of Bechtle Group's operational performance, the previous year's figure must be corrected for the aforementioned special effect. In operational terms the EBIDTA therefore increased in the period under review by 10.6 per cent to 15.0 million euros (previous year adjusted: 13.5 million euros). The increase in amortisation and depreciation was relatively low at 5.6 per cent from 3.2 million euros to 3.4 million euros. This was scheduled amortisation and depreciation of other intangible assets and property, plant & equipment.

At 11.6 million euros, operational earnings before interest and taxes (EBIT) were 10.1 per cent below the previous year value. The adjusted EBIT was 12.2 per cent higher than the purely operational value for the previous year of 10.4 million euros.

With a positive interest income of 0.4 million euros, the EBT was 9.1 per cent below the previous year of 12.0 million euros. The adjusted earnings before taxes rose by 12.8 per cent (previous year: 10.7 million euros). The EBT margin in the first quarter of 2008 was 3.6 per cent and therefore higher than the adjusted margin of the previous year quarter of 3.4 per cent. The improvement in the operational margin is primarily due to the rise in the contribution of higher-quality services in the IT system house segment.

Income tax payments fell in the first quarter compared to the reference period by 21.6 per cent to 3.3 million euros (previous year: 4.2 million euros). The tax ratio fell from 31.7 per cent to 27.3 per cent. This was largely due to the corporation tax reform in Germany.

In spite of the special effects in the previous year, earnings after taxes only fell by 3.3 per cent due to the lower tax rate and amounted to 8.7 million euros compared to 9.0 million euros in the reference period. On the unchanged basis of 21.2 million shares, the earnings per share (EPS diluted/basic) were 0.41 euros per share compared to 0.43 euros in the previous year.

Considered on a segment by segment basis, the earnings situation is as follows:

The EBIT in the IT system house segment was impacted in the previous year quarter by the aforementioned special effect of 2.6 million euros, which was apportioned fully to this segment. In spite of this the EBIT rose in the first quarter of 2008 compared to the previous year's quarter by 0.5 per cent to 5.8 million euros. Adjusted for the special effect, growth was actually 80.8 per cent. The EBIT margin was 2.8 per cent, compared to the previous year's adjusted figure of 1.7 per cent. This notable improvement is related primarily to the increased productivity of the employees in this segment and an increased contribution of higher-quality services which is also in part a result of the acquisitions.

In the IT e-commerce segment the EBIT fell by 18.7 per cent from 7.1 million euros to 5.8 million euros. The margin was 4.5 per cent, compared to 6.0 per cent in the previous year quarter. This result was due on the one hand to the investment in software licensing and management, a business of the future. On the other hand the earnings were impacted by the recruitment of employees in several national companies. These investments are however necessary to allow Bechtle to continue to grow profitably in future.

EBIT-Performance – Group and segments in th. euros

	Q1/2008	Q1/2007	Change in quarter
Group	11,618	12,922	–10.1%
IT system house	5,808	5,778	+ 0.5%
IT e-commerce	5,810	7,144	–18.7%

ASSET AND CAPITAL STRUCTURE

As of 31 March 2008 the balance sheet total of the Bechtle Group was 437.1 million euros. It was therefore 14.3 million euros or 3.2 per cent below the 451.4 million euros of 31 December 2007.

On the assets side the fall is primarily attributable to the change in current assets. These fell by 4.8 percent from 305.9 million euros to 291.2 million euros. Trade receivables played a significant role here. They fell in the first quarter after the strong final quarter of 2007 due to seasonal factors by 18.5 million euros and were 170.8 million euros (31 December 2007: 189.3 million euros). Inventories showed a reverse trend. After a strong end of year business 2007 and an associated reduction in stocks they increased in the first three months of the business year by 9.6 per cent to 51.3 million euros (31 December 2007: 46.8 million euros). In addition other current assets fell by 13.4 million euros to 10.2 million euros. The reason for this drop was primarily refunds paid by suppliers, which were reported under assets as claims in the annual financial statements.

Liquid funds including securities were slightly up at the closing date of 31 March 2008 from 54.2 million euros to 55.2 million euros.

Bechtle had global credit lines as of 31 March 2008 of 46.1 million euros including bank guarantees of 0.9 million euros. On the balance sheet date, 1.8 million euros of this amount had been activated through bank guarantees, leaving open credit lines of 44.3 million euros. As of 31 March 2008 the liquidity reserves of the Bechtle Group were 98.2 million euros.

At 145.9 million euros, non-current assets reached as of 31 March 2008 the level of the fiscal year 2007 (31 December 2007: 145.6 million euros). The overall ratio of non-current assets to the balance sheet total is 66.6 per cent (31 December 2007: 67.8 per cent). The investment ratio (ratio of non-current assets to the balance sheet total) increased accordingly from 32.2 per cent to 33.4 per cent.

On the liabilities side of the balance sheet, the non-current liabilities on the reporting day rose slightly from 23.8 million euros to 24.2 million euros. The greatest factor here was the growth in pensions provisions at around 0.3 million euros.

The changes in current liabilities were mainly due to seasonal factors. Trade payables fell as of 31 March 2008 from 88.3 million euros to 69.2 million euros. Other current liabilities fell from 35.3 million euros to 26.2 million euros. The reasons for this are the commission claims of employees reported as liabilities in the annual financial statements and purchase price liabilities relating to acquisitions which were paid or settled in the first quarter. In total current liabilities as of 31 March 2008 were 124.1 million euros (at 31 December 2007: 151.2 million euros).

As of 31 March 2008 equity rose from 276.5 million euros to 288.8 million euros. The equity ratio therefore rose to 66.1 per cent (31 December 2007: 61.2 per cent). The return on equity was based on the first three months at 3.2 per cent with 13.1 per cent below the level of the previous year. The overall rate of return on capital is 2.0 per cent compared to 2.2 per cent as of 31 March 2007.

As a result of the increase in equity and in conjunction with the reported reduction in liabilities on the balance sheet date the Group's debt ratio (ratio of borrowed capital to equity) improved on the balance sheet date to 0.51 (31 December 2007: 0.63).

The equity to non-current assets ratio increased in the first three months due to the increase in equity from 189.9 per cent to 197.9 per cent.

The cash flow from operating activities fell compared to the first three months of the previous year by 8.0 million euros and was 4.3 million euros (previous year: 12.3 million euros). The reduction is closing-date related and is primarily the result of a lower reduction in trade receivables accompanied by a greater reduction in trade payables as well as higher estimated tax outlays due to the better than expected Group earnings for the last fiscal year.

At 3.7 million euros, the outflow of funds for investment purposes in the first three months was slightly below the level of the previous year of 4.4 million euros. The negative cash flow from financial activities fell from minus 0.4 million euros to minus 0.1 million euros. This phenomenon was also closing-date related.

EMPLOYEES

The number of those employed by the Bechtle Group fell as of 31 March 2008 compared to the end of 2007 by twelve to 4,238 employees (31 December 2007: 4,250). On the balance sheet there were 3,018 employees in Germany (31 December 2007: 3,036 employees). The number of employees abroad increased by six to 1,220.

There were in total 3,237 employees in the IT system house segment on the balance sheet date, 66 less than on 31 December 2007. The drop in the personnel figures in the system house segment is primarily due to the termination of temporary employment contracts from the previous quarters. This concerns in particular employment for projects which were to be finished in the fiscal year 2007. There were 1,001 employees in the IT e-commerce segment at the end of the first quarter of the fiscal year 2008, 54 more than on 31 December 2007.

Personnel expenses in the first three months of 2008 amounted to 53.5 million euros (previous year: 49.9 million euros). The rise of 7.1 per cent was relatively lower than the rise in revenues. The personnel expenses ratio correspondingly fell from 16.0 per cent to 15.9 per cent.

OPPORTUNITIES AND RISKS REPORT

In the fiscal year 2008 to date there have been no major changes in the opportunities and risks and that were explored in detail in the annual report 2007 (page 74 to 84).

NOTEWORTHY EVENTS AFTER THE REPORTING PERIOD

On 1 April 2008 Bechtle acquired all of the shares in badendata GmbH, Offenburg (5 employees). With this acquisition the Bechtle Group has reinforced its position with an additional system house in the district of Ortenau, an economically thriving locality.

Price Performance Q1/2008

THE SHARE

Write-offs of billions in the financial sector which have been caused by the property crisis in the USA and numerous reports of reduced forecasts for growth in the first quarter have resulted in mass selling of shares. However the situation in capital markets had become somewhat calmer by the end of the quarter.

The TecDAX closed at the end of the quarter on 31 March at 776.39 points, some 20.4 per cent below the opening value on the year's first day of trading. Some 26.0 per cent was knocked off the Bechtle share price in the first three months of 2008. After opening the year at 27.00 euros on 2 January, the stock was worth 19.97 euros on 31 March. The share peaked on the year's first day of trading, on 2 January, at 27.86 euros. The lowest price for the quarter was recorded on the 10 and 14 March at 18.35 euros.

The liquidity of Bechtle shares significantly increased in the first quarter of 2008 compared to the level of the previous quarter. From January to March, on each day of trading an average of 95,941 shares changed hands (Q1 2007: 52,397). This corresponds to an average transaction volume of 2,039,657 euros per day's trading. In total, 5.9 million Bechtle shares worth 126.5 million euros were traded in the quarter. The market capitalisation on 31 March in absolute terms was 423.4 million euros.

Bechtle has made continuity a cornerstone of its dividend policy. For the fiscal year 2007 the Executive and Supervisory Boards will propose before the Annual General Meeting of 17 June 2008 an increase in the dividend to 0.60 euros per share. Based on the closing share price at the end of the quarter this would mean for shareholders a dividend yield of 3.0 per cent.

OUTLOOK

OVERALL ECONOMIC ENVIRONMENT

The crisis in the financial markets will according to the International Monetary Fund (IMF) also affect the Euro zone. The most recent indicators may point to a slowing down of economic activity during the course of 2008, there is no general presentiment of an economic slump or even a recession. High oil prices and increasing risks would however have a growing impact on investment and growth in consumption. The International Monetary Fund has therefore corrected its forecast downwards and is expecting an increase in Gross Domestic Product (GDP) in the Euro zone of only 1.4 per cent this year. For 2009 the IMG estimates growth of 1.2 per cent. The European Central Bank has predicted GDP growth of 1.7 per cent this year and 1.8 per cent next year.

In spite of the crisis in the financial market the German economy remains sound according to economic research institutes. The IMF is expecting a high growth in exports in the first half of 2008, which will then be slowed down by a fall in worldwide demand and continued weak domestic demand and the upward revaluation of the Euro. The International Monetary Fund is forecasting growth of 1.4 per cent for Germany in 2008 and 1.0 per cent next year. The German government is assuming there will be a slow-down in economic growth and is expecting GDP growth of 1.7 per cent this year and 1.2 per cent next year. Against the background of a worsened global economic environment and the high exchange rate of the Euro, the willingness of companies to invest will fall according to the EU Commission, but will nonetheless remain a key factor for growth.

IT SECTOR

The IT sector is expecting generally weaker growth than last year. The industry association BITKOM is forecasting a growth in sales of 4.3 per cent for the European IT industry this year. Within this segment IT services (5.7 per cent ) and software (5.2 per cent) in particular will undergo above-average growth. In IT services, the outsourcing market will show the highest increase at 7.4 per cent.

For the coming year BITKOM is expecting growth across Europe of 4.4 per cent. According to forecasts, IT budgets in Europe will grow by 3.7 per cent. The market researchers of IDC are estimating annual growth of 4.8 per cent for the European IT services market up to 2012.

For the whole IT market in Germany, BITKOM is anticipating an increase of 4.6 per cent in 2008. Growth of 4.4 per cent is expected for 2009. The main drivers of growth in 2008 are set to be above all software with 5.3 per cent and services with 6.6 per cent.

Leading IT experts are also expecting strong growth in the German IT service market in the next twelve months according to a study by Gartner. The increase in demand in Germany for IT services will thus be greater this year than the European average. The analysts at IDC are also assuming that Germany will not be exposed to the crisis of the USA in the whole extent. The market for outsourcing will be completely spared from recessionary effects. According to forecasts by the market researchers of the Experton Group the German outsourcing market will grow by 8.0 per cent.

PERFORMANCE OF THE BECHTLE GROUP

The performance of Bechtle AG in the first quarter was in line with the expectations of management. Against this background the Executive Board is maintaining its forecast for the year as a whole, which was published at the end of March, with revenues of at least 1.5 thousand million euros and an EBT of approximately 60 million euros. However, a sustained healthy economic environment in Europe continues to be an essential prerequisite for the achievement of these targets.

Neckarsulm, 15 May 2008

Bechtle AG

The Executive Board

Forward-looking statements

This interim financial report contains statements that relate to future developments at Bechtle AG. Such statements are based on assumptions and estimates. Although the Executive Board is confident that these statements with predictive character are realistic, no guarantees can be offered. The assumptions are subject to risks and uncertainties that could mean that the results actually achieved significantly diverge from those anticipated.

// CONSOLIDATED INTERIM FINANCIAL STATEMENTS

as of 31 March 2008

Consolidated Income Statement	13
Consolidated Balance Sheet	14
Consolidated Cash Flow Statement	16
Statement of recognised Income and Expense	17

// CONSOLIDATED INCOME STATEMENT

from 1 January to 31 March 2008 (2007)

in th. Euros

	01.01.–31.03.2008	01.01.–31.03.2007
Revenue	336,856	311,887
Cost of sales	287,045	267,912
Gross profit	49,811	43,975
Distribution cost	21,241	19,701
Administrative cost	18,561	15,681
Other operating income	1,609	4,329
Operating profit	11,618	12,922
Interest income	465	417
Interest cost	73	124
Earnings before taxes	12,010	13,215
Income taxes	3,280	4,184
Earnings after taxes	8,730	9,031
of which minority interests	–16	–10
of which shareholders of Bechtle AG	8,714	9,021
Net earnings per share (basic and diluted) in Euro	0.4110	0.4255
Weighted average shares outstanding (basic and diluted) in thousand	21.200	21.200

// CONSOLIDATED BALANCE SHEET

as of 31 March 2008 (31 December 2007)

in th. Euros

ASSETS	31.03.2008	31.12.2007
NON-CURRENT ASSETS
Goodwill	101,061	99,909
Other intangible assets	18,686	19,214
Property, plant and equipment	19,372	19,563
Investment property	203	203
Other non-current assets	2,141	2,210
Deferred taxes	4,467	4,461
Total non-current assets	145,930	145,560
CURRENT ASSETS
Inventories	51,316	46,817
Trade receivables	170,809	189,312
Securities	1,333	1,929
Tax receivables	3,603	2,110
Other current assets	10,181	13,395
Cash and cash equivalents	53,947	52,300
Total current assets	291,189	305,863
Total assets	437,119	451,423

in th. Euros

EQUITY AND LIABILITIES	31.03.2008	31.12.2007
EQUITY
Issued capital	21,200	21,200
Capital reserve	143,454	143,454
Revenue reserves	123,790	111,457
Equity before minority interest	288,444	276,111
Minority interest on equity	370	354
Total equity	288,814	276,465
NON-CURRENT LIABILITIES
Pension provisions	6,073	5,775
Other provisions	239	227
Financial liabilities	3,884	3,709
Other non-current liabilities	0	176
Deferred income	3,748	3,769
Deferred taxes	10,260	10,102
Total non-current liabilities	24,204	23,758
CURRENT LIABILITIES
Other provisions	5,586	6,052
Financial liabilities	6,366	6,049
Prepayments received	2,160	4,439
Trade payables	69,242	88,274
Tax payables	5,598	6,055
Other current liabilities	26,174	35,301
Deferred income	8,975	5,030
Total current liabilities	124,101	151,200
Total equity and liabilities	437,119	451,423

// CONSOLIDATED CASH FLOW STATEMENT

from 1 January to 31 March 2008 (2007)

in th. Euros

	01.01.–31.03.2008	01.01.–31.03.2007
CASH FLOW FROM OPERATING ACTIVITIES
Earnings before taxes	12,010	13,215
Adjustment for non-cash income/expenses
Interest income	–392	–293
Depreciation and amortisation in intangible assets and property	3,357	3,178
Gains (–)/Losses (+) on disposals of intangible assets and
property, plant and equipment	384	–21
Gain from sale of non-current assets held for sale	0	–1,915
Other non-cash income/expenses	–261	–86
Changes in working capital
Changes inventories	–3,679	–4,806
Changes trade receivables	21,558	27,070
Changes trade payables and prepayments received	–22,398	–17,687
Changes other working capital	–995	–3,330
Cash flow from ordinary operations	9,584	15,325
Income taxes paid	–5,298	–3,013
Net cash from operating activities	4,286	12,312
CASH FLOW FROM INVESTING ACTIVITIES
Cash paid for the acquisition of consolidated entities less cash acquired	–2,647	97
Cash paid for investments in intangible assets and property,
plant and equipment	–2,269	–1,935
Cash received from sale of intangible assets and property,
plant and equipment	81	172
Cash paid for investments in securities and other non-current assets	0	–3,021
Cash received from sale of securities and other non-current assets	737	11
Interest payments received	355	300
Net cash used in investing activities	–3,743	–4,376
CASH FLOW FROM FINANCING ACTIVITIES
Cash received from finance liablilites	4	0
Cash paid for finance liablilites	–28	–293
Interest paid	–34	–132
Net cash used for financing activities	–58	–425
Net foreign exchange difference in cash and cash equivalents Changes in cash and cash equivalents	1,162 1,647	–191 7,320
Cash and cash equivalents at the beginning of the period	52,300	36,710
Cash and cash equivalents at the end of the period	53,947	44,030

The previous year figures have been adjusted, cf. Notes, section II "Restatement of previous year values"

// STATEMENT OF RECOGNISED INCOME AND EXPENSE

from 1 January to 31 March 2008 (2007)

in th. Euros

	01.01.–31.03.2008	01.01.–31.03.2007
Actuarial profit and loss in pension provisions	–302	50
Deferred taxes	60	–10
Unrealised profit and loss on financial derivatives	–33	0
Deferred taxes	1	0
Unrealised profit and loss on financial derivatives	–27	–15
Deferred taxes	7	6
Changes in difference from foreign currency translation	3,913	–672
Income and expense recognised directly in equity	3,619	–641
Earnings after taxes	8,730	9,031
Total recognised income and expense after taxes	12,349	8,390
Of which minority interests	16	10
Of which shareholders of Bechtle AG	12,333	8,380

A further explanation of equity is available in the Notes, section IV.

// CONSOLIDATED INTERIM FINANCIAL STATEMENTS as of 31 March 2008

Notes to the Consolidated Interim Financial Statements

I.	General statements	19
II.	Principles of accounting and consolidation	19
III.	Scope of consolidation	20
IV.	Explanatory notes on the balance sheet and income statement	21
V.	Segment reporting	22
VI.	Employee numbers	24
	VII. Events after the end of the reporting period	24

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 31 March 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 31 March 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, these requirements having been completely fulfilled.

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

II. PRINCIPLES OF ACCOUNTING AND CONSOLIDATION

The same accounting and consolidation principles have been applied as for the consolidated financial statements for the fiscal year 2007. For more information we refer to the consolidated financial statements of 31 December 2007, which forms the basis of this interim financial report. These can be retrieved via the internet under www.bechtle.com.

Income taxes

Tax expense 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 force in Germany on 1 January 2008, reduces the overall tax burden on corporations to just under 29 per cent (previous 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 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 previous year values made to the consolidated financial statements 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 to 31 December 2007 have led to a correspondingly adjusted disclosure of comparative information in the period 1 January to 31 March 2007.

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 für Programmierung und Systemberatung, 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,
	Canton Aargau,
	Switzerland	01.01.2008	Founding

IV. EXPLANATORY NOTES ON THE BALANCE SHEET AND INCOME STATEMENT

Equity

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

in th. euros

	Issued	Capital		Revenue reserves	Equity	Minority	Total
	capital	reserves	Accrued profits	Cumulated earnings recognised directly in equity	without minority interests	interest	equity
Equity as per 1 January 2007	21,200	143,454	90,826	–6,555	248,925	289	249,214
Earnings after taxes			9,021		9,021	10	9,031
Earnings and expenditure directly reported
in equity				–641	–641		–641
Equity as of 31 March 2007	21,200	143,454	99,847	–7,196	257,305	299	257,604
Equity as of 1 January 2008	21,200	143,454	121,123	–9,666	276,111	354	276,465
Earnings after taxes			8,714		8,714	16	8,730
Earnings and expenditure directly reported
in equity				3,619	3,619		3,619
Equity as of 31 March 2008	21,200	143,454	129,837	–6,047	288,444	370	288,814

As already mentioned under II "Adjusted disclosure of comparative information", equity values to 1 January 2007 have been adjusted against the original publication. The value of accumulated profits as of 1 January 2007 changed by –2,474 thousand euros, from 93,300 thousand euros to 90,826 thousand euros. Due to exchange translation differences, the value of the accumulated result not affecting profit and loss to 1 January 2007 was corrected by –345 thousand euros, from –6,210 thousand euros to –6,555 thousand euros.

Dividends

The Executive and Supervisory Boards of Bechtle AG will propose the Annual General Meeting of 17 June 2008 that a dividend of 0.60 euros be paid out on every ordinary share entitled to dividend (dividend total: 12,720 thousand euros).

Dividends may only be paid from the Company's retained earnings and revenue reserves as shown in Bechtle AG's German financial statements. These amounts differ from the sum of equity capital shown in the consolidated financial statements according to IFRS. Future dividends will be proposed jointly by the Company's Executive and Supervisory Boards and approved by the Annual General Meeting. Determining factors are in particular the Company's profitability, financial situation, capital requirements, business prospects and general economic conditions. Because the Company's strategy is geared towards internal and external growth, investments financed as far as possible by internal means will become necessary.

Earnings per share

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

	01.01.–31.03.2008	01.01.–31.03.2007
Earnings after taxes (th. euros)	8,730	9,031
of which share of minorities (th. euros)	16	10
of which share of Bechtle AG shareholders
(th. euros)	8,714	9,021
Average number of shares (unit)	21,200,000	21,200,000
Earnings per share (euros)	0.4110	0.4255

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 various types of balance sheet data are broken down by business areas and regions. The arrangement is determined by the requirements of internal reporting (management approach). The segmenting is designed to bring transparency to the profitability and prospects of success as well as the opportunities and risks of the Group's various business sectors.

In the meaning of segment reporting under IAS 14, the Group is active in two areas, the IT system house and IT e-commerce segments. The segments differ in their areas of activity and employ different approaches for trading in IT products. No major transactions are conducted between the segments. The key performance indicator of both segments is the earnings before interest and taxes. Interest payments are not included as the segments are basically financed by holding companies that operate across segment boundaries and the external interest cost/income are largely accrued/generated by them.

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.–31.03.2008		01.01.–31.03.2007
	IT system house	IT e-commerce	Total Group	IT system house	IT e-commerce	Total Group
External sales	207,663	129,193	336,856	193,110	118,777	311,887
Depreciation	2,369	988	3,357	2,340	838	3,178
Operating profit	5,808	5,810	11,618	5,778	7,144	12,922
Net interest income			392			293
Earnings before taxes			12,010			13,215
Investments	1,702	566	2,268	1,442	493	1,935
Investments by changes to
consolidated companies	0	0	0	1,242	0	1,242

in th. euros

	31.03.2008				31.12.2007
	IT system house	IT e-com merce	Not allocated according to IAS 14	Total Group	IT system house	IT e-com merce	Not allocated according to IAS 14	Total Group
Gross assets of segments	243,160	133,198	60,761	437,119	247,718	142,258	61,447	451,423
Debts of segments	58,303	42,864	47,138	148,305	70,141	50,086	54,731	174,958

in th. euros

ACCORDING TO REGIONS		01.01.–31.03.2008		01.01.–31.03.2007
	Domestic market	Abroad	Total Group	Domestic market	Abroad	Total Group
External sales	216,084	120,772	336,856	201,166	110,721	311,887
Investments	1,384	884	2,268	1,342	593	1,935
Investments by changes to
consolidated companies	0	0	0	1,242	0	1,242

in th. euros

	31.03.2008				31.12.2007
	Domestic market	Abroad	Not allocated according to IAS 14	Total Group	Domestic market	Abroad	Not allocated according to IAS 14	Total Group
Gross assets of segments	188,319	188,039	60,761	437,119	201,568	188,408	61,447	451,423
Debts of segments	37,612	63,555	47,138	148,305	48,361	71,866	54,731	174,958

VI. EMPLOYEE NUMBERS

The employee numbers break down as follows:

	31.03.2008	31.12.2007	01.01.– 31.03.2008	01.01.– 31.03.2007
Full-time employees	3,929	3,921	3,904	3,703
Trainees	239	257	248	227
Employees on maternity leave or on
military/civil national service	70	72	71	60
Temporary employees	113	114	115	104
Total	4,351	4,364	4,338	4,094

VII. EVENTS AFTER THE END OF THE REPORTING PERIOD

At the time of acquisition on 1 April 2008, all shares in badendata GmbH, Offenburg, were acquired. The purchase price allocation under IFRS 3 is still currently being determined. Through the acquisition of badendata (5 employees), the Bechtle Group has been strengthened by its own system house location in the economically attractive Ortenau district.

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

Neckarsulm, 15 May 2008

Bechtle AG

The Executive Board

// FINANCIAL CALENDAR

// ANNUAL GENERAL MEETING

17 June 2008, 10.00 a.m. Harmonie Concert and Congress Centre, Heilbronn

• // DIVIDEND PAYMENT FOR THE FISCAL YEAR 2007 as of 18 June 2008 (subject to approval by the Annual General Meeting)
• // INTERIM REPORT AS OF 30 JUNE / 2nd QUARTER 2008 14 August 2008 Conference Call with analysts, investors and media
• // INTERIM REPORT AS OF 30 SEPTEMBER / 3rd QUARTER 2008 14 November 2008 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 Q1/2008 was published on 15 May 2008. It is available in German and English. Both versions can be downloaded at www.bechtle.com. 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