Bechtle AG

Quarterly Report • Sep 18, 2024

KEY FIGURES OF THE BECHTLE GROUP AT A GLANCE

		$\begin{gathered} 01.01- \ 30.06 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.06 .2023 \end{gathered}$	Change in \%
Business volume	€k	3,782,505	3,701,596	+2.2
Revenue	€k	2,978,231	3,048,444	$-2.3$
IT System House \& Managed Services	€k	1,851,856	1,915,182¹	$-3.3$
IT E-Commerce	€k	1,126,375	1,133,262 ${ }^{1}$	$-0.6$
EBITDA	€k	234,393	237,463	$-1.3$
IT System House \& Managed Services	€k	148,055	163,800 ${ }^{1}$	$-9.6$
IT E-Commerce	€k	86,338	73,663 ${ }^{1}$	+17.2
EBIT	€k	168,833	177,089	$-4.7$
IT System House \& Managed Services	€k	105,125	122,986 ${ }^{1}$	$-14.5$
IT E-Commerce	€k	63,708	54,103 ${ }^{1}$	+17.8
EBIT margin	\%	5.7	5.8
IT System House \& Managed Services	\%	5.7	$6.4^{1}$
IT E-Commerce	\%	5.7	$4.8^{1}$
EBT	€k	165,794	173,479	$-4.4$
EBT margin	\%	5.6	5.7
Earnings after taxes	€k	118,197	122,862	$-3.8$
Earnings per share	€	0.94	0.98	$-3.8$
Return on equity ${ }^{2}$	\%	14.2	16.8
Cash flow from operating activities	€k	141,172	64,979
Number of employees (as of 30.06)		15,306	14,505	+5.5
IT System House \& Managed Services		11,551	11,180 ${ }^{1}$	$+3.3$
IT E-Commerce		3,755	3,325 ${ }^{1}$	+12.9

				30.06.2024	31.12.2023	Change in \%
Cash and cash equivalents ${ }^{3}$		€k	413,101	465,756	$-11.3$
Working Capital		€k	748,738	800,131	$-6.4$
Equity ratio		\%	47.5	45.8

${ }^{1}$ Prior year adjusted
${ }^{2}$ Annualized
${ }^{3}$ Incl. time deposits and securities

REVIEW BY QUARTER 2024

		1st Quarter $01.01-31.03$	2nd Quarter $01.04-30.06$	3rd Quarter $01.07-30.09$	4th Quarter $01.10-31.12$	2024 FY $01.01-30.06$
Business volume	€k	$1,950,994$	$1,831,511$			$3,782,505$
Revenue	€k	$1,503,415$	$1,474,816$			$2,978,231$
EBITDA	€k	116,642	117,751			234,393
EBIT	€k	84,148	84,685			168,833
EBT	€k	81,957	83,837			165,794
EBT margin	\%	5.5	5.7			5.6
Earnings after taxes	€k	58,503	59,694			118,197

CONSOLIDATED INTERIM MANAGEMENT REPORT

BUSINESS ACTIVITY

With over 100 system houses, Bechtle is close to its customers and, with IT e-commerce companies in 14 countries, is one of the leading IT companies in Europe. Moreover, Bechtle boasts a worldwide network of partners that caters to the needs of customers that operate around the globe. With this combination, Bechtle has a unique business model that combines IT services with the traditional IT trading business. Founded in 1983 and headquartered in Neckarsulm, the company provides its more than 70,000 customers from industry and commerce, the public sector and the financial market with assistance with their digital transformation and offers a comprehensive, vendor-independent range of services relating to IT infrastructure and IT operations.

In the IT System House \& Managed Services segment, the service spectrum ranges from the sale of hardware and software solutions to IT strategy consulting, application solutions, project planning and roll-out, system integration, maintenance and training, as well as the provision of cloud and managed services, IT security services and artificial intelligence. We also offer all "as-a-service" models or the complete operation of customer IT. We have bundled our trading business in IT E-Commerce, the second business segment. In this segment, we offer our customers hardware and standard software as well as accompanying logistics services via the Internet and by telephone.

BUSINESS ENVIRONMENT

I Macroeconomic situation remains tense

I Sentiment stagnating at low level
I IT sector shows a slight upward trend

MACROECONOMY

Economic development in the EU was very subdued in the first half of 2024. According to figures released by the European Commission in May 2024, gross domestic product (GDP) grew by 0.3 per cent across the EU in both the first and second quarters. Development in the EU countries with a Bechtle presence has a narrow bandwidth. In the first quarter, the figures ranged from growth of 0.2 per cent in Germany, France and Austria to growth of 1.1 per cent in Ireland. The second quarter saw similar development. The figures fluctuated between the frontrunner, Hungary, with growth of 0.8 per cent, and the bottom performer, France, with growth of 0.1 per cent.

In contrast to the previous quarter, Germany once again recorded a positive growth rate in the first quarter of 0.2 per cent. However, in the second quarter GDP decreased again by 0.1 per cent.

(7)

The ifo sentiment indicators for the German economy were volatile in the first half of the year. Initially, the values improved from the beginning of the year to April. May was at roughly the same level as April. In June and July, however, both the overall climate and expectations for the coming months deteriorated again.

INDUSTRY

The situation on the PC market remains challenging. After seven quarters of decline, there was a slight increase again in the first two quarters of 2024. According to the market research institute IDC, global sales increased by 3 per cent in the second quarter. According to IDC, three factors are responsible for this growth:
I the high supply of AI-enabled PCs driven by the manufacturers
I the upcoming refresh cycle for hardware purchased in 2020/2021
I low comparative figures from the previous year

The ifo Business Climate Index for IT service providers was at a similarly low level to the general ifo index in the first half of the year. The index fell continuously from January to April. It has risen again somewhat since May, albeit at a low level. In particular, the outlook for the coming months remains gloomy. The Bitkom-ifo Digital Index also indicates a stabilisation of the business climate, albeit at a similarly low level.

OVERALL ASSESSMENT

The first half of 2024 was characterised by a high level of uncertainty due to geopolitical tensions and the macroeconomic challenges. This led to a marked reluctance to invest, particularly on the part of SME customers. Moreover, public sector customers, especially in Germany, showed restrained demand behaviour.

The IT market was unable to escape this environment. It is true that the high relevance of IT in almost all business models of companies and public customers means that not all investments are being postponed. However, the PC market and the traditional client business in particular were weak worldwide. Following investments in home office infrastructures in previous years, customers have greatly extended the product life cycles of their hardware. In addition, regional political crises, in particular the early elections in France and the delayed adoption of the federal budget in Germany, have led to further restraint.

This challenging market environment is reflected in Bechtle's business performance. The business volume increased by 2.2 per cent in the first half of the year, while revenue fell by 2.3 per cent. Our SME customers in particular were very reluctant to modernise their client landscapes. However, public sector clients did not invest at the expected level either.

As Bechtle AG does not publish forecasts for individual quarters, a comparison of actual figures with target figures is not relevant. Nevertheless, we can state that the growth rates for business volume, revenue and earnings in the first six months are below our expectations for 2024 as a whole. We have therefore adjusted our forecast for 2024 as a whole. We now expect business volume, revenue and earnings to remain at the previous year's level. We also want to maintain the margin at around the previous year's level.

EARNINGS POSITION

I Business volume increased by 2.2 per cent in the first half of the year
I Revenue and earnings decline slightly
I EBT margin almost stable at 5.6 per cent in the first half-year

Changed segment allocation. There were changes in segment allocation in the first half of 2024 compared to the previous year:

I As part of the "One Bechtle Austria" project, the activities of the two segments in Austria were merged on 1 January 2024. The former e-commerce company Bechtle direct GmbH is now assigned to the IT System House \& Managed Services segment.
I As part of the "Belgium United" project, the activities of all companies in Belgium were merged. The Brussels location, which was previously allocated to the IT System House \& Managed Services segment, has been allocated to the IT E-Commerce segment since 1 January 2024.
I As part of the reorganisation of regional management responsibilities, the Dutch company PQR, which was acquired in 2022, has no longer been allocated to the IT System House \& Managed Services segment since 1 January 2024, but now to the IT E-Commerce segment.

All prior-year figures in the segment reporting have been adjusted accordingly.

ORDER POSITION

For the sale of IT products and the provision of services, Bechtle concludes both short-term and longterm contractual relationships. The IT E-Commerce segment is almost entirely characterised by the conclusion of transactions that are solely trading transactions with short order and delivery times. In the IT System House \& Managed Services segment, project deals can take from several weeks to one year. Especially in the fields of managed services and cloud computing, most of the framework and operating agreements that Bechtle concludes with customers have terms of several years.

In the first half of 2024, incoming orders totalled $€ 3,803$ million, up 12.5 per cent on the previous year. The IT System House \& Managed Services segment grew by around 9 per cent to $€ 2,393$ million. At $€ 1,410$ million, incoming orders in the IT E-Commerce segment were around 18 per cent higher than in the previous year.

The order backlog stood at $€ 2,201$ million as of 30 June, slightly above the figure as of 31 December 2023 ( $€ 2,146$ million). Of this, $€ 1,818$ million is attributable to the IT System House \& Managed Services segment and $€ 383$ million to the IT E-Commerce segment.

BUSINESS VOLUME

Business volume totalled $€ 3,782.5$ million in the first six months of 2024, up 2.2 per cent on the same period of the previous year at $€ 3,701.6$ million. In the second quarter, business volume grew slightly by 0.9 per cent.

REVENUE

Revenue fell by 2.3 per cent to $€ 2,978.2$ million in the first half of 2024 (previous year: $€ 3,048.4$ million). The reason for the difference compared to the business volume was the successful development of our software business, which we are only allowed to recognise in the amount of the margin in revenue in accordance with IFRS 15. In the second quarter, the decline in revenue was also 2.3 per cent. Organic growth was -5.0 per cent in the first half of the year and -4.8 per cent in the second quarter. We continue to see a very pronounced reluctance to invest, particularly among our SME customers. However, business with public-sector clients also failed to achieve the expected growth rates.

GROUP REVENUE

From a regional perspective, the international companies recorded growth of 2.9 per cent in the first half of the year, due to acquisitions, compared to a domestic decline of 5.7 per cent. In purely organic terms, development was closer at -4.0 per cent internationally and -5.7 per cent in Germany.

In the IT System House \& Managed Services segment, revenue fell by 3.3 per cent in the first half of the year. At -3.4 per cent, organic growth was almost identical. While revenue in Germany declined by 4.8 per cent, Bechtle realised international growth of 6.0 per cent.

REVENUE BY SEGMENTS

0	500	1,000	1,500	2,000	2,500	3,000	3,500	4,000	Total
H1/2023			1,915.21		1,133.31				3,048.4
H1/2024			1,851.9		1,126.4				2,978.2
									1-2.3\%
	IT System House \& Managed Services		IT E-Commerce						${ }^{1}$ Figure adjusted

Revenue in the IT E-Commerce segment totalled $€ 1,126.4$ million in the first six months, down 0.6 per cent on the previous year's figure of $€ 1,133.3$ million. While we were still able to show growth of 2.0 per cent internationally because of acquisitions, the companies in Germany were more strongly affected by the economic restraint, particularly among SME customers. Revenue fell in Germany by 12.4 per cent.

REVENUE - GROUP AND SEGMENTS

	H1/2024	H1/2023	Change	G2/2024	G2/2023	Change
Group	2,978,231	3,048,444	$-2.3 \%$	1,474,816	1,509,945	$-2.3 \%$
Germany	1,750,669	1,855,547	$-5.7 \%$	879,427	923,974	$-4.8 \%$
International	1,227,562	1,192,897	$+2.9 \%$	595,389	585,971	$+1.6 \%$
IT System House \& Managed Services	1,851,856	1,915,182¹	$-3.3 \%$	919,518	946,492¹	$-2.8 \%$
IT E-Commerce	1,126,375	1,133,262¹	$-0.6 \%$	555,298	563,453¹	$-1.4 \%$

[^0]
[^0]: ${ }^{1}$ Figure adjusted

Revenue per employee in the group fell from $€ 239$ thousand to $€ 219$ thousand in the first half of the year with an average of 13,617 full-time equivalents (FTE, excluding absentees and trainees). In the IT System House \& Managed Services segment, revenue per employee shrank to $€ 181$ thousand, compared to $€ 195$ thousand in the previous year. In the IT E-Commerce segment, revenue per employee fell from $€ 383$ thousand to $€ 331$ thousand.

EARNINGS

Gross profit developed positively in the first half of the year and was up 2.7 per cent on the previous year at $€ 551.0$ million. Gross margin increased from 17.6 per cent to 18.5 per cent. This is due to the fact that the cost of sales, which fell by 3.4 per cent, developed at a slower rate than revenue. The 5.5 per cent decline in the cost of materials had a significant impact here. The trend in the second quarter was comparable. Because of a 5.0 per cent decrease in the cost of materials, gross earnings rose by 1.3 per cent and the gross margin increased from 17.9 per cent to 18.5 per cent. This development is also due partly to the reversal of provisions and impairments in the second quarter totalling $€ 7$ million. These had been built as risk provisions in previous quarters. Their reversal had a reducing effect on the cost of materials.

GROSS MARGIN

Distribution costs and administrative expenses rose disproportionately to revenue in the first half of the year. Distribution costs increased by 3.9 per cent to $€ 216.7$ million. The ratio rose from 6.8 per cent to 7.3 per cent. This was due to personnel expenses and depreciation and amortisation. Administrative expenses rose by 8.6 per cent and totalled $€ 190.9$ million. The administrative expense ratio rose accordingly from 5.8 per cent to 6.4 per cent. This was due to the rise in personnel expenses and an increase in other operating expenses. Other operating income increased to $€ 25.4$ million, up 1.6 per cent on the previous year ( $€ 25.0$ million). As announced by Bechtle, other operating income declined in the second quarter and, at $€ 12.8$ million, was $€ 0.6$ million lower than in the previous year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 1.3 per cent to $€ 234.4$ million. The EBITDA margin increased slightly from 7.8 per cent to 7.9 per cent in the reporting period. In the second quarter, the EBITDA margin fell from 8.4 per cent to 8.0 per cent.

Depreciation and amortisation rose by 8.6 per cent to $€ 65.6$ million, due partly to acquisitions. Depreciation of property, plant and equipment, which totalled $€ 55.3$ million in the first half of the year, continues to account for the largest share of this.

Earnings before interest and taxes (EBIT) fell by 4.7 per cent to $€ 168.8$ million. At 5.7 per cent, the margin was roughly on a par with the previous year ( 5.8 per cent).

The group therefore generated earnings before taxes (EBT) of $€ 165.8$ million in the first half of 2024, 4.4 per cent below the previous year's figure ( $€ 173.5$ million). The EBT margin was 5.6 per cent, compared to 5.7 per cent in the previous year. In the second quarter, the EBT margin was 5.7 per cent, compared to 6.2 per cent in the previous year.

EBT AND EBT MARGIN
€m and \%

Tax expenses fell by 6.0 per cent to $€ 47.6$ million in the reporting period. The tax rate was therefore 28.7 per cent, compared to 29.2 per cent in the previous year.

Earnings after taxes fell by 3.8 per cent to $€ 118.2$ million. On the basis of 126 million shares, earnings per share (EPS) totalled $€ 0.94$ (previous year: $€ 0.98$ ). In the second quarter, EPS totalled $€ 0.48$ (previous year: $€ 0.53$ ).

EPS
0	0.20	0.40	0.60	0.80	1.00	1.20	1.40	1.60	1.80
H1/2023
H1/2024

In the segment analysis, the earnings situation is as follows:

In the IT System House \& Managed Services segment, EBIT in the first half of 2024 fell by 14.5 per cent from the very high level of the previous year to $€ 105.1$ million (previous year $€ 123.0$ million). The positive development of gross profit in this segment was not sufficient to compensate for the higher costs. The EBIT margin was 5.7 per cent, compared to 6.4 per cent in the previous year.

The IT E-Commerce segment showed a pleasing EBIT trend in the first six months. It totalled $€ 63.7$ million, an increase of 17.8 per cent compared to the previous year ( $€ 54.1$ million). Despite a slight decline in revenue, the development of gross profit was strong enough to compensate for the costs. The margin was 5.7 per cent, compared to 4.8 per cent in the previous year.

EBIT - GROUP AND SEGMENTS

	H1/2024	H1/2023	Change	G2/2024	G2/2023	Change
Group	168,833	177,089	$-4.7 \%$	84,685	96,122	$-11.9 \%$
IT System House \& Managed Services	105,125	$122,986^{1}$	$-14.5 \%$	50,816	$65,222^{1}$	$-22.1 \%$
IT E-Commerce	63,708	$54,103^{1}$	$+17.8 \%$	33,869	$30,900^{1}$	$+9.6 \%$

${ }^{1}$ Figure adjusted

ASSETS AND FINANCIAL POSITION

# Healthy balance sheet reflects Bechtle's financial power
# Equity ratio increased to 47.5 per cent
# Cash flow still developing very positively

The balance sheet total of the Bechtle Group as at 30 June 2024 was $€ 3,746.1$ million, which is slightly below the figure as at 31 December 2023 ( $€ 3,803.2$ million).

DEVELOPMENT OF THE ASSETS

Non-current assets increased from $€ 1,427.3$ million to $€ 1,473.5$ million. Goodwill in particular increased by $€ 61.5$ million due to acquisitions. Property, plant and equipment also increased by $€ 20.0$ million. The capitalisation ratio increased from 37.5 per cent to 39.3 per cent.

Current assets fell by $€ 103.3$ million to $€ 2,272.6$ million. Inventories fell by $€ 19.3$ million or 4.4 per cent compared to the end of 2023. Trade receivables fell even more sharply, by $€ 88.7$ million or 7.7 per cent. The average days sales outstanding (DSO) of our receivables fell in the first six months of 2024 compared to the same period of the previous year, from 41.8 days to 39.8 days. Cash and cash equivalents fell by $€ 42.7$ million to $€ 393.1$ million, due partly to the dividend payment and the purchase price payment for acquisitions. At $€ 413.1$ million, total liquidity (cash and cash equivalents including time deposits and securities) remains at a comfortable level.

LIGUIDITY (INCL. TIME DEPOSITS AND SECURITIES)

Working capital fell by 6.4 per cent compared to the end of the year and stood at $€ 748.7$ million as at 30 June 2024. The reasons for this positive development were declines in inventories and trade receivables. In relation to business volume, working capital fell from 25.8 per cent in the same period of the previous year to 19.8 per cent as at 30 June 2024.

DEVELOPMENT OF THE EQUITY AND LIABILITIES

Non-current liabilities amounted to $€ 799.1$ million as at 30 June 2024 and were therefore $€ 14.2$ million higher than on 31 December 2023. This is due, above all, to the increase in lease liabilities within other liabilities.

Current liabilities fell by $€ 108.7$ million to $€ 1,167.0$ million. Trade payables fell by $€ 53.2$ million following the sharp reduction at the beginning of the year. Other liabilities also fell by $€ 58.7$ million, due mainly to lower liabilities to employees and lower VAT liabilities.

Equity increased from $€ 1,742.6$ million to $€ 1,780.0$ million as at 30 June 2024. Our equity ratio increased from 45.8 per cent at the end of 2023 to 47.5 per cent as at the reporting date.

The annualised return on equity fell from 16.8 per cent to 14.2 per cent.

RETURN ON EQUITY
0	2.5	5.0	7.5	10.0	12.5	15.0	17.5	20.0
H1/2023							16.8
H1/2024					14.2

BALANCE SHEET KPI OF THE BECHTLE GROUP

			30.06.2024	31.12.2023
Balance sheet total			€m	3,746.1
Cash and cash equivalents incl. cash and securities investments			€m	413.1
Equity			€m	1,780.0
Equity ratio			\%	47.5
Net debt			€m	133.0
Debt ratio			\%	110.5
Working capital			€m	748.7

DEVELOPMENT OF THE CASH FLOW

Operating cash flow developed very positively in the first half of 2024 and totalled $€ 141.2$ million, compared to $€ 65.0$ million in the same period of the previous year. Three factors in particular were decisive here:
I at $€ 67.1$ million, the cash outflow from the reduction in trade payables was around $€ 100$ million lower than in the previous year ( $€ 167.2$ million), and
I we were able to reduce trade receivables thanks to, above all, optimised receivables management, which led to a cash inflow of $€ 115.8$ million (compared to $€ 171.3$ million in the previous year), and I inventories were further reduced, resulting in a cash inflow of $€ 23.4$ million (previous year: $€ 51.1$ million).

In the second quarter, operating cash flow totalled $€ 95.8$ million, compared to $€ 85.2$ million in the previous year. There was a slight cash outflow from the increase in trade receivables. However, this was only due to the reporting date and was offset by a cash inflow from the increase in trade payables.

CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from investing activities totalled -€49.8 million in the first half of 2024, compared to -€104.1 million in the previous year. In particular, payments for acquisitions were slightly lower than in the previous year.

Cash flow from financing activities totalled -€134.1 million, compared to -€24.2 million in the same period of the previous year. In the previous year, proceeds from the assumption of financial liabilities had a significant impact here.

Free cash flow was positive in the first half of the year. It improved from -€65.8 million to +€72.8 million between January and June 2024 compared to the same period in the previous year.

PEOPLE AT BECHTLE

|| Organic growth in personnel very restrained

|| Training and further education as well as diversity remain important goals

As of 30 June 2024, the Bechtle Group employed a total of 15,306 people, including 694 trainees. Compared to 30 June 2023, the number of employees has thus increased by 801 people, representing an increase of 5.5 per cent. A significant part of the increase is attributable to the acquisitions made in both segments. A total of 565 new colleagues joined Bechtle in this way. Excluding acquisitions, the increase in headcount in the first half of the year was a moderate 1.6 per cent.

Compared to 31 March 2024, the total increase in employees was only 61 people, or 0.4 per cent. Excluding acquisitions, the number of employees actually fell by 0.4 per cent. Given the current economic environment, the reason for this is the conscious decision to thoroughly check whether vacant positions need to be filled promptly.

EMPLOYEES IN THE GROUP

In the IT System House \& Managed Services segment, the number of employees increased by 3.3 per cent compared to the previous year. Growth was generally evenly distributed between the German and international companies. At 12.9 per cent, the number of employees in the IT E-Commerce segment grew significantly faster. The international companies recorded particularly strong growth of 15.0 per cent, which is attributable exclusively to acquisitions.

As of 30 June 2024, 4,619 people worked in our international companies, which is around 30 per cent of the workforce.

EMPLOYEES BY REGIONS

0	2,000	4,000	6,000	8,000	10,000	12,000	14,000	16,000	Total
H1/2023							4,191		14,505
H1/2024					10,687		4,619		15,306
H1/2024									$(+0.5 \%)$

$\square$ Germany $\quad$ ains Abroad

Converted to full-time equivalents (FTE), an average of 14,728 employees worked for Bechtle from January to June 2024 (previous year: 13,852), representing an increase of 876 people or 6.3 per cent.

At $€ 585.0$ million, personnel and social expenses in the period from January to June 2024 were 9.2 per cent higher than in the same period of the previous year ( $€ 535.7$ million). The expense ratio rose from 17.6 per cent to 19.6 per cent. Personnel and social expenses per capita (FTE, excluding absentees) totalled $€ 40.7$ thousand in the first half of the year with an average of 14,366 employees (previous year: 13,497 thousand), compared to $€ 39.7$ thousand in the previous year.

PERSONNEL AND SOCIAL EXPENSES

0	100	200	300	400	500	600
H1/2023						535.7
H1/2024						585.0

The areas of training and development remain the focus of our HR work. In the first half of 2024, Bechtle was represented at numerous recruitment events in various regions to attract young people for vocational training or a dual study programme. With "Karriere Kick", we are using a new trade fair format to draw students' attention to us as a company and to our industry with innovative, target group-specific formats. University partnerships, Girls' Days and internships for school pupils at many locations offer young people the opportunity to get to know the company. As a member of the "Kreative Köpfe" association, we support pupils with an inventive spirit.

As of 30 June 2024, 694 young people were undergoing training or dual studies at Bechtle. That is 9 more than at the same time last year.

With the wide range of programmes offered by our academy and the Learning Campus learning platform, we have a broad range of target group-specific training opportunities for both newcomers and professionals. A total of 4,692 people took part in face-to-face events via the Learning Campus in the first half of 2024, while the e-learning courses were used over 48,000 times. As part of the further development of the Bechtle Learning Campus, we have designed "learning worlds" that provide a structured overview of qualification and further development opportunities for selected target groups or topics. The first learning worlds are aimed at our large IT security community and our colleagues in sales, among others.

A total of 53 participants successfully completed our JUMP Leader programme, which prepares participants for their first management responsibilities by teaching them leadership skills. At the same time, a further 59 participants started the next round of the programme. In addition to JUMP Leader, we also completed the first round of the new JUMP Expert programme in the first half of the year with a total of 44 participants. With JUMP Expert, we prepare employees for important expert functions at Bechtle, allowing us to offer career prospects for specialist and project careers in addition to management careers.

Diversity is another key factor for the future viability of our company. We have bundled the measures taken in recent years to promote diversity and appointed a central Diversity Officer as of 1 March 2024. In doing so, we want to build on what already exists and develop a new diversity strategy.

In June, Bechtle was once again awarded the prestigious title of "Top Employer 2024" by the Top Employers Institute. This makes our company one of the leading employers in Germany. The award emphasises our commitment to offering all Bechtle employees not only interesting tasks, but also a state-of-the-art working environment and the best opportunities for further development.

RESEARCH AND DEVELOPMENT

As a pure service and trading company, Bechtle previously only provided development services for software solutions and applications for its own purposes and as part of individual customer projects. In the field of application solutions, we not only design, develop and implement software on behalf of customers, but also cover special industry requirements where required. Since the reporting period, Bechtle has also been active in the area of research for the first time. By acquiring a stake in PLANET AI, we have expanded our portfolio to include AI solutions in the area of intelligent document analysis. This acquisition means that more than 40 research and development specialists now complement our workforce. The volume of research and development services in the reporting period was insignificant in relation to the revenue of the group as a whole.

OPPORTUNITIES AND RISKS

The strategy and corporate management of the Bechtle Group are designed for the long term, and the opportunities and risks for the coming months are basically identical to the information published in the Annual Report 2023. However, uncertainty particularly among SME customers, and the associated pronounced reluctance to invest, are lasting longer than expected at the start of the year. Accordingly, the forecasts made by the EU Commission at the beginning of the year for the development of the German and European economies have been revised downwards. The industry association bitkom has also reduced its forecast for the German IT market, as has the French association numeum for the market in France. The burdens on Bechtle AG's business may continue as the economic distortions persist in the long term. Overall, the risk situation is not expected to improve noticeably over the course of 2024.

SHARE

I Share price performance with high volatility
I Dividend of $€ 0.70$ resolved

Despite ongoing geopolitical and economic uncertainties, the capital market performed well in the first half of 2024. The DAX climbed by 8.9 per cent and even reached a new high in May. The MDAX and the TecDAX were unable to keep pace with the DAX, closing down 7.2 per cent and 0.3 per cent, respectively, as of 28 June 2024.

THE BECHTLE SHARE - PERFORMANCE FROM JANUARY TO JULY 2024

The performance of the Bechtle share was characterised by high volatility in the first half of 2024. A slight upswing at the beginning of the year was followed by strong price fluctuations that continued until the end of the reporting period. Our share reached its highest value of $€ 50.25$ at the beginning of April. In the further course of the year, continuous slight price reductions led to a closing price of $€ 43.94$ on 28 June. Overall, the Bechtle share lost 3.2 per cent in the reporting period.

Market capitalisation stood at $€ 5,536.4$ million as of 28 June, slightly above the previous year's level. This development had a positive impact on the stock market ranking. The company was ranked 54th in the MDAX (previous year: 60th place) and 8th in the TecDAX (previous year: 11th place).

TRADING DATA OF THE BECHTLE SHARE

		H1/2024	H1/2023	H1/2022	H1/2021	H1/2020
Closing price at the end of the half-year	€	43.94	36.32	39.01	52.22	52.33
Performance (ytd)	\%	$-3.2$	$+9.9$	$-38.0$	$-12.2$	$+25.4$
High (closing price)	€	50.25	43.99	63.12	60.83	52.83
Low (closing price)	€	43.31	32.68	36.29	49.85	28.35
Market capitalisation - total ${ }^{1}$	$€ \mathrm{~m}$	5,536.4	4,576.3	4,915.3	6,579.3	6,594.0
Avg. turnover/trading day ${ }^{2}$	shares	166,858	188,820	272,801	84,534	156,811
Avg. turnover/trading day ${ }^{2}$	€	7,816,585	7,357,518	12,675,626	13,789,353	20,172,898

The Annual General Meeting of Bechtle AG took place on 11 June 2024 at the Harmonie Concert and Congress Centre in Heilbronn. We are delighted that we were able to welcome over 500 shareholders and around 100 other guests to the event. Registered shareholders also had the opportunity to follow the Annual General Meeting live via an online portal and exercise their voting rights there. All items on the agenda were approved with the required majorities, including the election of Stephanie Holdt, who replaces Elke Reichart on the Supervisory Board.

The Annual General Meeting also approved the dividend of $€ 0.70$ per share proposed by the Executive Board and Supervisory Board for the 2023 fiscal year. The payout per share thus increased by $€ 0.05$ or 7.7 per cent compared to the previous year. This is the 18th increase in the regular dividend and the 14th in a row. Bechtle AG's shareholder-friendly dividend policy, which has been geared towards continuity since the IPO in 2000, is thus continuing this year. Based on the half-year closing price, the dividend yield is 1.6 per cent. According to a study (Dividend Study Germany 2024, Röhl Capital GmbH), Bechtle AG is one of the companies with the highest average dividend growth over ten years.

DIVIDEND

		2024	2023	2022	2021	2020
Dividend	€	0.70	0.65	0.55	0.45	0.40
Dividend payout ratio	$\%$	33.2	32.6	29.9	29.4	29.6
Dividend yield ${ }^{1}$	$\%$	1.6	1.8	1.4	0.9	0.8

[^0]
[^0]: ${ }^{1}$ As of 30 June

FORECAST

# Basic conditions remain tense

Ereats after the reporting period, see Notes, page 45

@ Growth expectations for the IT market reduced

# Bechtle adjusts forecast for 2024

MACROECONOMY

According to the European Commission's forecast from May 2024, economic development in the EU will remain at a low level in the coming months. Growth is expected to be 0.3 per cent in both the third and fourth quarters, which is in line with the figures for the first two quarters. The growth expectations for the EU countries in which Bechtle is present are very similar. In the third quarter, they range from 0.2 per cent for Germany and France to 0.8 per cent for Hungary. In the fourth quarter, they range from 0.2 per cent for Germany to 0.9 per cent for Hungary. In 2024, GDP is expected to grow by 1.0 per cent across the EU. GDP in the EU is expected to grow faster again next year at 1.6 per cent.

Economic growth in Germany is also expected to remain at a low level in the second half of the year. Growth rates of 0.2 per cent are expected for each of the remaining two quarters. GDP is forecast to grow by 0.1 per cent in 2024 and 1.0 per cent in 2025.

INDUSTRY

Expectations for the German IT market have also deteriorated. According to the latest figures from the industry association bitkom from July 2024, we can expect growth of 5.4 per cent in the current year. The forecast at the beginning of the year was 6.3 per cent. The strongest growth of 9.8 per cent is expected in the software segment. Sales of services are expected to increase by 4.5 per cent. The forecast for the hardware market is 2.8 per cent. The French industry association numeum has lowered its forecast for the French market from 5.8 per cent to 5.0 per cent

DEVELOPMENT OF THE BECHTLE GROUP

The first half of 2024 was characterised by difficult basic conditions and a high level of uncertainty regarding future macroeconomic developments. This has had an impact on the investment behaviour of our SME and public customers in particular. Projects to replace outdated traditional IT infrastructures, such as PCs and monitors, have been put on hold, and existing framework agreements are not being utilised to the usual extent. The second quarter did not bring the hoped-for initial improvements. The end of the quarter in particular fell short of expectations. In this environment, Bechtle AG was unable to match the successes of the previous 15 years in the first half of the year, particularly in terms of revenue and earnings. The Executive Board continues to expect an upturn in the second half of the year. However, the shortfall compared to the forecast published in March has become too big after the first six months, and the development required to achieve these targets is too ambitious, which in turn means that the expectations for the second half of the year are too high. The Executive Board has therefore decided to adjust the forecast for the current fiscal year. Bechtle AG informed the public about this amendment in an ad hoc announcement on 18 July 2024. The Executive Board now expects business volume, revenue, EBT and EBT margin to remain at the previous year's level. The Executive Board reiterates its positive and optimistic outlook for Bechtle AG in the medium and long term.

Neckarsulm, 9 August 2024

Bechtle AG
The Executive Board

CONSOLIDATED INCOME STATEMENT

	$\begin{gathered} 01.06- \ 30.06 .2024 \end{gathered}$	$\begin{gathered} 01.06- \ 30.06 .2023 \end{gathered}$	$\begin{gathered} 01.01- \ 30.06 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.06 .2023 \end{gathered}$
Revenue	1,474,816	1,509,945	2,978,231	3,048,444
Cost of sales	1,201,310	1,239,884	2,427,245	2,512,117
Gross profit	273,506	270,061	550,986	536,327
Distribution costs	108,960	107,728	216,682	208,509
Administrative expenses	92,625	79,584	190,871	175,721
Other operating income	12,764	13,373	25,400	24,992
Earnings before interest and taxes	84,685	96,122	168,833	177,089
Financial income	5,161	1,379	9,105	2,532
Financial expenses	5,619	3,716	11,030	6,142
Share of result of investments accounted for using the equity method	-390	0	$-1,114$	0
Earnings before taxes	83,837	93,785	165,794	173,479
Income taxes	24,143	27,832	47,597	50,617
Earnings after taxes (attributable to shareholders of Bechtle AG)	59,694	65,953	118,197	122,862
Net earnings per share (basic)	in $€$	0.48	0.53	0.94	0.98
Weighted average shares outstanding (basic)	in thousands	126,000	126,000	126,000	126,000

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

				Ex
	$\begin{gathered} 01.04- \ 30.04 .2024 \end{gathered}$	$\begin{gathered} 01.04- \ 30.04 .2023 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2023 \end{gathered}$
Earnings after taxes	59,694	65,953	118,197	122,862
Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gains and losses on pension provisions	110	385	253	148
Income tax effects	$-23$	$-80$	$-52$	$-31$
Items that will be reclassified to profit or loss in subsequent periods
Unrealised gains and losses on financial derivatives	381	148	303	$-30$
Income tax effects	$-132$	$-60$	$-125$	$-10$
Hedging of net investments in foreign operations	$-3,047$	$-5,486$	10,330	$-3,081$
Income tax effects	931	1,656	$-3,156$	930
Currency translation differences	3,845	5,588	$-5,078$	4,190
Other comprehensive income	2,065	2,151	2,475	2,116
of which income tax effects	776	1,516	$-3,333$	889
Total comprehensive income (attributable to shareholders of Bechtle AG)	61,759	68,104	120,672	124,978

See
further comments
in the Notes,
in particular IV. and V.
page 31ff and page 35 f

CONSOLIDATED BALANCE SHEET

ASSETS

	30.04.2024	31.12.2023	30.04.2023
Non-current assets
Goodwill	793,810	732,330	634,058
Other intangible assets	126,498	117,468	108,022
Property, plant and equipment	461,848	441,825	427,130
Investments in joint ventures	0	32,497	0
Trade receivables	63,301	67,551	68,492
Deferred taxes	10,147	10,638	9,401
Other assets	17,932	25,006	25,984
Total non-current assets	1,473,536	1,427,315	1,273,087
Current assets
Inventories	420,529	439,805	562,690
Trade receivables	1,068,857	1,157,573	1,050,216
Income tax receivables	20,322	21,604	17,286
Other assets	349,744	291,136	264,123
Time deposits and securities	20,022	30,000	35,526
Cash and cash equivalents	393,079	435,756	166,436
Total current assets	2,272,553	2,375,874	2,096,277
Total assets	3,746,089	3,803,189	3,369,364

	30.04.2024	31.12.2023	30.04.2023
Equity
Issued capital	126,000	126,000	126,000
Capital reserves	66,913	66,913	40,228
Retained earnings	1,582,171	1,549,699	1,415,169
Equity (attributable to shareholder of Bechtle AG)	1,775,084	1,742,612	1,581,397
Non-controlling interests	4,911	0	0
Total equity	1,779,995	1,742,612	1,581,397
Non-current liabilities
Pension provisions	18,053	17,282	8,819
Other provisions	11,720	10,883	10,818
Financial liabilities	526,259	524,116	257,257
Trade payables	1,257	516	402
Deferred taxes	48,940	38,997	33,438
Other liabilities	150,558	138,435	142,168
Contract liabilities	42,236	54,533	56,066
Deferred income	97	114	113
Total non-current liabilities	799,120	784,876	509,081
Current liabilities
Other provisions	14,538	19,020	22,530
Financial liabilities	19,890	16,398	209,913
Trade payables	576,049	629,206	544,557
Income tax payables	10,442	24,968	12,699
Other liabilities	297,554	356,209	298,442
Contract liabilities	240,825	226,074	185,751
Deferred income	7,676	3,826	4,994
Total current liabilities	1,166,974	1,275,701	1,278,886
Total equity and liabilities	3,746,089	3,803,189	3,369,364

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Issued capital	Capital reserves	Retained earnings			Total equity (attributable to shareholders of Bechtle AG)	Non- control- ting interests	Total equity
			Accrued profits	Changes in equity outside profit or loss	Total
Equity as of 1 January 2023	126,000	40,228	1,338,778	33,313	1,372,091	1,538,319	0	1,538,319
Distribution of profits for 2022			$-81,900$		$-81,900$	$-81,900$		$-81,900$
Earnings after taxes			122,862		122,862	122,862		122,862
Other comprehensive income				2,116	2,116	2,116		2,116
Total comprehensive income	0	0	122,862	2,116	124,978	124,978	0	124,978
Equity as of 30 June 2023	126,000	40,228	1,379,740	35,429	1,415,169	1,581,397	0	1,581,397
Equity as of 1 January 2024	126,000	66,913	1,522,390	27,309	1,549,699	1,742,612	0	1,742,612
Distribution of profits for 2023			$-88,200$		$-88,200$	$-88,200$		$-88,200$
Earnings after taxes			118,197		118,197	118,197		118,197
Other comprehensive income				2,475	2,475	2,475		2,475
Total comprehensive income	0	0	118,197	2,475	120,672	120,672	0	120,672
Changes in scope of consolidation						0	4,911	4,911
Equity as of 30 June 2024	126,000	66,913	1,552,387	29,784	1,582,171	1,775,084	4,911	1,779,995

CONSOLIDATED CASH FLOW STATEMENT

				Cs
	$\begin{gathered} 01.04- \ 30.06 .2024 \end{gathered}$	$\begin{gathered} 01.04- \ 30.06 .2023 \end{gathered}$	$\begin{gathered} 01.01- \ 30.06 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.06 .2023 \end{gathered}$
Operating activities
Earnings before taxes	83,837	93,785	165,796	173,479
Adjustment for non-cash expenses and income
Financial earnings	458	2,337	1,925	3,610
Depreciation and amortisation of intangible assets and property, plant and equipment	33,066	30,215	65,560	60,374
Gains and losses on disposal of intangible assets and property, plant and equipment	227	$-113$	212	$-293$
Other non-cash expenses and income	$-8,755$	$-6,209$	$-8,200$	$-10,753$
Changes in net assets
Changes in inventories	33,726	95,095	23,443	51,068
Changes in trade receivables	$-27,562$	$-14,044$	115,818	171,272
Changes in trade payables	14,081	$-37,119$	$-67,130$	$-167,221$
Changes in deferred income	$-21,539$	$-17,847$	3,673	$-1,667$
Changes in other net assets	7,012	$-19,459$	$-107,141$	$-150,421$
Income taxes paid	$-18,709$	$-41,428$	$-52,782$	$-64,469$
Cash flow from operating activities	95,842	85,213	141,172	64,979
Investing activity
Cash paid for acquisitions less cash acquired	$-34,855$	$-31,219$	$-36,524$	$-90,006$
Cash paid for investments in intangible assets and property, plant and equipment	$-22,760$	$-29,878$	$-41,497$	$-46,242$
Cash received from the sale of intangible assets and property, plant and equipment	7,483	1,195	9,673	5,518
Cash paid for acquisitions of time deposits and securities	0	0	$-60,000$	0
Cash received from the sale of time deposits and securities, and from redemptions of non-current assets	70,048	0	70,048	25,000
Interest payments received	4,957	1,073	8,550	1,626
Cash flow from investing activities	24,873	$-58,829$	$-49,750$	$-104,104$
Financing activities
Cash paid for the repayment of financial liabilities	$-2,778$	$-3,103$	$-5,611$	$-66,997$
Cash received from the assumption of financial liabilities	$-951$	49,240	2,503	161,689
Dividends paid	$-88,200$	$-81,900$	$-88,200$	$-81,900$
Interest paid	$-5,187$	$-2,530$	$-7,531$	$-5,019$
Outflow for the repayment of finance leases	$-17,935$	$-15,003$	$-35,248$	$-31,962$
Cash flow from financing activities	$-115,051$	$-53,296$	$-134,087$	$-24,189$
Exchange-rate-related changes in cash and cash equivalents	196	1,268	$-12$	160
Changes in cash and cash equivalents	5,860	$-25,644$	$-42,677$	$-63,154$
Cash and cash equivalents at beginning of the period	387,219	192,080	435,756	229,590
Cash and cash equivalents at the end of the period	393,079	166,436	393,079	166,436

See further comments in the Notes, in particular VI, page 36 f

NOTES

I. GENERAL DISCLOSURES

As a listed company, Bechtle AG, Bechtle Platz 1, 74172 Neckarsulm, Germany, prepares its consolidated financial statements in accordance with Section 315e of the German Commercial Code (HGB) on the basis of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB), as applicable in the EU. Accordingly, this interim financial report as of 30 June 2024 was also prepared in accordance with IFRS.

In accordance with IAS 34, the scope of reporting in this interim financial report as of 30 June 2024 has been significantly reduced compared to the consolidated financial statements at the end of the fiscal year.

Our business activities are subject to certain seasonal fluctuations over the course of the year. In the past, revenue and earnings contributions tended to be lowest in the first quarter and highest in the fourth quarter, characterised by traditionally very strong year-end business. The interim results can therefore only be used to a limited extent as an indicator for the results of the fiscal year as a whole.

II. KEY PRINCIPLES OF ACCOUNTING AND CONSOLIDATION

For existing and unchanged IFRS, the key principles of accounting and consolidation applied in the preparation of the condensed interim consolidated financial statements are the same as those applied in the preparation of the consolidated financial statements for the 2023 fiscal year.

In accordance with IAS 34, the tax expense in the interim period is calculated on the basis of the effective tax rate expected for the fiscal year as a whole. Taxes relating to extraordinary items are recognised in the quarter in which the underlying item occurs.

Due to Russia's ongoing war of aggression on Ukraine and the conflict that has again flared up in the Middle East, estimates and discretionary decisions are subject to increased uncertainty. The actual amounts can differ from the estimates and discretionary decisions. Any available information about the prospective economic development was taken into consideration in the update of the estimates and discretionary decisions.

The carrying amounts of the goodwill and of the brands presented under other intangible assets (except for Inmac WStore) are reviewed for impairment by means of annual impairment tests on the basis of the value in use. Based on the assumptions made and sensitivity analyses as of 31 December 2023, as well as the business development in the first half of 2024, there are no indications of a need for impairment. The next annual impairment test in accordance with IAS 36 will be carried out on the basis of the information available as of 30 September 2024.

III. SCOPE OF CONSOLIDATION

The scope of consolidation comprises Bechtle AG in Neckarsulm and all subsidiaries in which it holds a controlling interest. Bechtle AG directly or indirectly holds all interests and voting rights in all consolidated companies (except for PLANET Al GmbH). PLANET Al GmbH, which was accounted for as a joint venture using the equity method in 2023, was included in the scope of consolidation for the first time as of 30 June 2024. Bechtle holds 51 per cent of the interests and voting rights in this company.

The following companies were included in the scope of consolidation for the first time in this reporting period:

Company	Headquarters	Date of acquisition/ Initial consolidation	Acquisition/ Founding
PLANET Al GmbH	Raben Steinfeld, Germany	2 October 2023/ 30 June 2024	Acquisition
iDoo Tech S.L.	Zaragoza, Spain	22 February 2024	Acquisition
Magnetic Media Network S.p.A.	Trezzo sull' Adda, Italy	28 June 2024	Acquisition

IV. NOTES TO THE INCOME STATEMENT AND THE STATEMENT OF COMPREHENSIVE INCOME

REVENUE

Revenue in the amount of $€ 2,978,231$ thousand (prior year: $€ 3,048,444$ thousand) includes the considerations charged to customers for goods and services less rebates and discounts.

The following table shows the breakdown of the revenue:

	01.01-30.06.2024			01.01-30.06.2023
	IT System House \& Managed Services	E-Commerce	Group	IT System House \& Managed Services	E-Commerce	Group
IT trading revenue	1,238,409	1,025,086	2,263,495	1,338,9081	1,076,7631	2,415,671
IT service revenue	613,447	101,289	714,736	576,2741	56,4991	632,773
Total revenue	1,851,856	1,126,375	2,978,231	1,915,1821	1,133,2621	3,048,444

${ }^{1}$ Prior-year figure adjusted

In this context, the IT E-Commerce business segment mainly generates IT trading revenue that is recognised on a point-in-time basis. The revenue in the IT System House \& Managed Services business segment consists of IT trading revenue that is also recognised on a point-in-time basis and partly of IT service revenue that is recognised either on a point-in-time basis or over time.

As a matter of principle and irrespective of the industry, all customers are commercial end customers and public-sector clients. In the past six months, the product groups that achieved the highest revenue were mobile computing, IT services, peripherals and network components. With these product groups, Bechtle generated about 59 per cent of the total revenue (prior year: 59 per cent).

The following table shows the breakdown of the revenue by public-sector clients and commercial end customers:

	01.01-30.06.2024			01.01-30.06.2023
	IT System House \& Managed Services	E-Commerce	Group	IT System House \& Managed Services	E-Commerce	Group
Public-sector clients	720,742	441,764	1,162,507	779,8621	394,7151	1,174,577
Commercial buyers	1,131,114	684,611	1,815,724	1,135,3201	738,5471	1,873,867
Total revenue	1,851,856	1,126,375	2,978,231	1,915,1821	1,133,2621	3,048,444

A breakdown of the revenue by business segments and regions is presented in the segment information. See page 39 f

EXPENSE STRUCTURE

	Cost of sales		Distribution costs		Administrative expenses
	$\begin{gathered} 01.01- \ 30.04 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2023 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2023 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2024 \end{gathered}$	$\begin{gathered} 01.01- \ 30.04 .2023 \end{gathered}$
Material costs	2,077,097	2,198,667	0	0	0	0
Personnel and social expenses	290,126	259,696	172,008	165,307	122,877	110,659
Depreciation/amortisation	30,416	26,504	15,314	13,425	19,830	20,445
Other operating expenses	29,606	27,250	29,360	29,777	48,164	44,617
Total expenses	2,427,245	2,512,117	216,682	208,509	190,871	175,721

The decline in the cost of materials compared to the same period of the prior year is due mainly to the lower volume of business. Personnel and social expenses increased due to the higher number of employees. Other operating expenses are higher than in the same period of the prior year, due especially to increased costs for software licences.

OTHER OPERATING INCOME

The majority of other operating income is attributable to marketing subsidies and other compensation from suppliers. This totalled $€ 19,267$ thousand in the first half of 2024 (prior year: $€ 21,081$ thousand).

FINANCIAL INCOME AND FINANCIAL EXPENSES

Financial income includes income from call money, time deposits and financial receivables.

Financial expenses primarily include interest expenses for loans and lease liabilities.

EARNINGS PER SHARE

The table below shows the calculation of the earnings after taxes per share that are due to the shareholders of Bechtle AG:

		$\begin{gathered} 01,01- \ 30,06,2024 \end{gathered}$	$\begin{gathered} 01,01- \ 30,06,2023 \end{gathered}$
Earnings after taxes	€k	118,197	122,862
Average number of outstanding shares		126,000,000	126,000,000
Basic earnings per share	€	0.94	0.98

According to IAS 33, the earnings per share are determined on the basis of the earnings after taxes (attributable to shareholders of Bechtle AG) and the average number of shares in circulation in the year. Treasury shares would reduce the number of outstanding shares accordingly.

So far, the convertible bond issued in the prior year has not affected the earnings per share, as the exercise price for the conversion in the reporting period was above the average price of the shares of Bechtle AG. Therefore, the diluted earnings per share corresponded to the basic earnings per share.

OTHER COMPREHENSIVE INCOME

Other comprehensive income is mainly characterised by the EUR/CHF exchange rate development. In contrast to the previous year, the Swiss franc appreciated against the euro in the first half of 2024.

The exact composition of the other comprehensive income to be recognised directly in equity with regard to its change and its cumulative status is shown in section V. "Notes to the Balance Sheet and the Statement of Changes in Equity".

V. NOTES TO THE BALANCE SHEET AND TO THE STATEMENT OF CHANGES IN EQUITY

ASSETS

Goodwill and other intangible assets increased as a result of the acquisitions made in the first half of the year. These investments and the increased dividend payment compared to the 2023 fiscal year led to a decrease in cash and cash equivalents. Other current assets as of 30 June 2024 include contract assets in the amount of $€ 111,801$ thousand [31 December 2023: $€ 100,777$ thousand].

EQUITY

Issued capital

As of 30 June 2024, the company's share capital is divided into 126,000,000 fully paid-up, issued ordinary shares with a notional par value of $€ 1.00$, unchanged from 31 December 2023. Each share has one vote.

Retained earnings

At the Annual General Meeting on 11 June 2024, a resolution was passed to distribute a dividend of $€ 0.70$ per dividend-bearing share for the 2023 fiscal year. The dividend was paid out on 14 June 2024.

In terms of its cumulative balance as of the balance sheet date and its change during the reporting period, the other comprehensive income that is to be recognised directly in equity is composed as follows:

	30.04.2024			31.12.2023
	Before taxes	Income tax effects	After taxes	Before taxes	Income tax effects	After taxes
Actuarial gains and losses on pension provisions	8,209	$-2,180$	6,029	7,956	$-2,128$	5,828
Unrealised gains and losses on securities	629	$-49$	580	326	76	402
Currency translation differences of net investments in foreign operations	$-45,987$	13,971	$-32,016$	$-56,317$	17,127	$-39,190$
Currency translation differences	55,191	0	55,191	60,269	0	60,269
Other comprehensive income	18,042	11,742	29,784	12,234	15,075	27,309

	01.01-30.06.2024			01.01-30.06.2023
	Before taxes	Income tax effects	After taxes	Before taxes	Income tax effects	After taxes
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gains and losses on pension provisions	253	$-52$	201	148	$-31$	117
Items that will be reclassified to profit or loss in subsequent periods
Unrealised gains and losses on hedges	303	$-125$	178	$-30$	$-10$	$-40$
Gains and losses that arose in the current period	415	$-125$	290	82	$-10$	72
Reclassifications to profit and loss	$-112$	0	$-112$	$-112$	0	$-112$
Currency translation differences of net investments in foreign operations	10,330	$-3,156$	7,174	$-3,081$	930	$-2,151$
Gains and losses that arose in the current period	10,330	$-3,156$	7,174	$-3,081$	930	$-2,151$
Reclassifications to profit and loss	0	0	0	0	0	0
Currency translation differences	$-5,078$	0	$-5,078$	4,190	0	4,190
Other comprehensive income	5,808	$-3,333$	2,475	1,227	889	2,116

LIABILITIES

The decline in current trade payables and other liabilities is due mainly to the usual seasonal fluctuations over the course of the year with a strong final quarter in terms of sales.

VI. EXPLANATORY NOTES ON THE CASH FLOW STATEMENT

The year-on-year increase in cash flow from operating activities is due to the lower reduction in trade payables, on the one hand, and the lower change in other net assets, on the other. The lower reduction in trade receivables and inventories led to a lower cash inflow than in the same period of the prior year.

In the area of investing activities, higher payments for acquisitions and for intangible assets and property, plant and equipment in particular were recorded in the prior year.

The cash flow from financing activities in the reporting period is due mainly to the dividend payment of $€ 88,200$ thousand for the 2023 fiscal year. The total dividend for the 2022 fiscal year, which was paid out in the prior year, amounted to $€ 81,900$ thousand. In the prior year, the financial liabilities taken on had a positive effect on cash flow from financing activity, which were not met by any corresponding inflows in the reporting period.

VII. LEASES

Trade receivables include lease receivables totalling $€ 82,435$ thousand as at the reporting date (31 December 2023: €84,197 thousand). The undiscounted lease payments that are due on a yearly basis are as follows:

		€b
	$\mathbf{3 0 , 0 4 , 2 0 2 4}$	31,12,2023
Due within one year	36,151	36,807
Due between 1 and 2 years	24,976	26,263
Due between 2 and 3 years	15,307	17,453
Due between 3 and 4 years	10,037	6,803
Due between 4 and 5 years	1,131	2,032
Minimum lease payments	$\mathbf{8 7 , 6 0 2}$	$\mathbf{8 9 , 3 5 8}$

The interest share of the lease payments corresponds to the not-yet-realised financial income.

VIII. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial assets and liabilities (financial instruments) are summarised in classes in accordance with IFRS 7. The allocation of the financial instruments contained in the individual balance sheet items in this interim financial report is analogous to the allocation in the 2023 Annual Report.

In accordance with IFRS 13, the measurement techniques are categorised into the following three levels, depending on the key parameters on which the measurement is based:
Level 1: Measurement at prices (not adjusted) quoted on active markets for identical assets and liabilities
Level 2: Measurement of the asset or liability takes place either directly or indirectly on the basis of observable input data, which do not represent quoted prices as stated in Level 1
Level 3: Measurement is based on models using input parameters not observable on the market.

The following table shows the carrying amounts and fair value of the financial instruments for the classes of financial instruments in accordance with IFRS 7 as well as their measurement level in accordance with IFRS 13 and measurement category in accordance with IFRS 9.

Class pursuant to IFRS 7	Measurement category IFRS 9	30.06.2024		31.12.2023		Level
		Carrying amount	Fair value	Carrying amount	Fair value
Assets
Non-current trade receivables	AC	14,671	13,350	17,645	16,275	3
Current trade receivables	AC	1,035,052	1,035,052	1,123,282	1,123,282
Non-current lease receivables	n/a	48,630	44,015	49,906	45,695	3
Current lease receivables	n/a	33,805	33,805	34,291	34,291
Time deposits
Fixed-term deposits	AC	20,022	20,022	30,000	30,000
Other financial assets	AC	226,496	226,496	211,565	211,565
Financial derivatives
Derivatives accounted for as hedges	n/a	200	200	39	39
Derivatives not accounted for as hedges	FVTPL	15,535	15,535	3,050	3,050
Cash and cash equivalents	AC	393,079	393,079	435,756	435,756
Equity and liabilities
Convertible bond	AC	273,389	273,389	271,511	271,511
Loans		272,760	265,040	269,004	260,404	3
Non-current trade payables	AC	1,257	1,175	516	492	3
Current trade payables	AC	576,049	576,049	629,206	629,206
Non-current lease liabilities	n/a	145,087	128,655	136,336	123,715	3
Current lease liabilities	n/a	56,164	56,164	57,190	57,190
Other financial liabilities	AC	166,238	166,238	198,351	198,351
Liabilities resulting from acquisitions	FVTPL	8,674	8,674	5,257	5,257
Financial derivatives
Derivatives accounted for as hedges	n/a	35	35	37	37
Derivatives not accounted for as hedges	FVTPL	4,128	4,128	4,478	4,478
Thereof aggregated according to measurement category pursuant to IFRS 9	AC	2,979,013	2,969,890	3,186,836	3,176,842
	FVTPL	28,337	28,337	12,785	12,785

Abbreviations used for the measurement categories of IFRS 9:
AC = Amortised cost
FVTPL = Fair value through profit or loss

During the reporting period, there were no reclassifications between measurements at fair value of Level 1 and Level 2 and no reclassifications to or from measurements at fair value of Level 3.

The liabilities resulting from acquisitions are conditional, additional purchase price payments (earnouts) for acquisitions made. No significant changes were made to the calculation methodology and sensitivities during the reporting period.

The development of liabilities from acquisitions is as follows:

The €9 thousand recognised as an expense in the financial earnings is attributable in full to payments due in the future and recognised as of 30 June 2024.

IX. SEGMENT INFORMATION

The same principles apply to the preparation of segment information as in the consolidated financial statements for the 2023 fiscal year.

Segment information
on employees,
see page 44

Based on segments	01.01-30.06.2024					01.01-30.06.2023
	IT System House \& Managed Services	IT E-Commerce	Total group before PwA ${ }^{1}$	Reconciliation PwA	Total group after PwA	IT System House \& Managed Services	IT E-Commerce	Total group before PwA	Reconciliation PwA	Total group after PwA
Total segment business volume	2,362,415	1,462,982				2,357,5702	1,378,3752
less intersegment business volume	$-40,589$	$-2,303$				$-31,7992$	$-2,5502$
Business volume (gross revenue)	2,321,826	1,460,679	3,782,505	$-804,274$	2,978,231	2,325,7712	1,375,8252	3,701,596	$-653,152$	3,048,444
Depreciation/amortisation	$-40,333$	$-14,963$	$-55,296$		$-55,296$	$-37,195^{2}$	$-13,092^{2}$	$-50,287$		$-50,287$
Segment earnings	107,722	71,375	179,097		179,097	126,6052	60,5712	187,176		187,176
Depreciation/amortisation from acquisitions	$-2,597$	$-7,667$	$-10,264$		$-10,264$	$-3,619^{2}$	$-6,668^{2}$	$-10,087$		$-10,087$
Earnings before financial earnings and taxes	105,125	63,708	168,833		168,833	122,9862	54,1032	177,089		177,089
Financial earnings			$-1,925$		$-1,925$			$-3,610$		$-3,610$
Share of result of investments accounted for using the equity method			$-1,114$		$-1,114$			0		0
Earnings before taxes			165,794		165,794			173,479		173,479
Income taxes			$-47,597$		$-47,597$			$-50,617$		$-50,617$
Earnings after taxes			118,197		118,197			122,862		122,862
Investments	54,646	34,313	88,959		88,959	98,3052	24,6592	122,964		122,964
Investments through acquisitions	41,130	43,240	84,370		84,370	90,0762	3,1042	93,180		93,180

[^0]
[^0]: ${ }^{1}$ Principal versus agent accounting (PwA)
${ }^{2}$ Prior-year figure adjusted

In the IT E-Commerce segment, trading revenues are mainly realised at a point in time, as Bechtle's performance obligation is fulfilled by transferring the goods to the customer. Trading revenue in the IT System House \& Managed Services business segment is also recognised at a point in time if it relates to the delivery of goods. Furthermore, combinations of goods delivery and services can be provided, which are essentially realised by means of customer acceptance. Only IT service revenues may be recognised over time. The share of pure service sales in this segment is 33 per cent (prior year: 30 per cent).

	01.01-30.04.2024			01.01-30.04.2023
By regions	Domestic	Abroad	Group as a whole	Domestic	Abroad	Group as a whole
Revenue	1,750,669	1,227,562	2,978,231	1,855,547	1,192,897	3,048,444
Investments	52,751	36,208	88,959	102,472	20,492	122,964
Investments through acquisitions	41,130	43,240	84,370	0	93,180	93,180

The total segment assets are not part of internal reporting, so this information is not included in the interim financial report.

X. ACQUISITIONS AND PURCHASE PRICE ALLOCATIONS

The following table shows the companies acquired in the reporting period:

Company	Headquarters	Acquisition date	Acquisition
PLANET Al GmbH	Raben Steinfeld, Germany	2 October 2023	Acquisition
iDoo Tech S.L.	Zaragoza, Spain	22 February 2024	Acquisition
Magnetic Media Network S.p.A.	Trezzo sull' Adda, Italy	28 June 2024	Acquisition

All company acquisitions were recognised using the purchase method and are still to be regarded as provisional with regard to the identification and measurement of newly identified assets.

The following table presents the fair value of the assets and liabilities as of the date of initial consolidation as they appear in the balance sheet:

	PLANET AI	iDoo	Magnetic Media Network	Total
Non-current assets
Goodwill	27,151	1,414	36,113	64,678
Other intangible assets	12,765	240	1,753	14,758
Property, plant and equipment	1,214	0	3,720	4,934
Other assets	44	4	0	48
Total non-current assets	41,174	1,658	41,586	84,418
Current assets
Inventories	0	50	2,153	2,203
Trade receivables	1,151	824	19,025	21,000
Other assets	249	59	4,103	4,411
Cash and cash equivalents	133	0	10,106	10,239
Total current assets	1,533	933	35,387	37,853
Total assets	42,707	2,591	76,973	122,271
Non-current liabilities
Deferred taxes	3,088	60	460	3,608
Other liabilities	0	0	2,169	2,169
Total non-current liabilities	3,088	60	2,629	5,777
Current liabilities
Financial liabilities	0	0	6,574	6,574
Trade payables	804	535	14,243	15,582
Income tax payables	40	10	1,991	2,041
Other provisions and liabilities	1,603	131	5,596	7,330
Deferred income	0	0	848	848
Total current liabilities	2,447	676	29,252	32,375
Total liabilities	5,535	736	31,881	38,152
Total assets - Total liabilities - Minority shares	4,911	0	0	4,911
= consideration	32,261	1,855	45,092	79,208

On 2 October of the prior reporting period, 51 per cent of the interests in PLANET AI GmbH, Raben Steinfeld, were purchased. The company was initially included in the consolidated financial statements as a joint venture using the equity method, since both the parties involved held the rights in the net assets and decisions on important activities required the parties' unanimous approval. The joint venture was based on the agreement between the partners (Bechtle AG and the company's continued management and founding team) to combine application-oriented AI research with the sales competencies of the largest German IT system house. The shares in PLANET AI GmbH, Raben Steinfeld, were fully consolidated as of 30 June 2024. The previously valid agreement between the management and founding team of the company and Bechtle AG was amended to the effect that Bechtle AG, with its 51 per cent of the shares, can also exercise the associated voting rights. This led to control, which required full inclusion in the consolidated financial statements.

In addition to the assets and liabilities already recognised from the acquired company, whose carrying amounts corresponded to their fair values, technology in the amount of $€ 12,765$ thousand was newly recognised as identifiable assets and measured at its fair value on the acquisition date.

Deferred tax liabilities ( $€ 3,088$ thousand) were recognised in the course of capitalising the newly identified assets.

Taking into account the total acquired net assets of $€ 10,021$ thousand, the capital consolidation resulted in a provisional difference in the amount of $€ 27,151$ thousand, which is reported as goodwill. This goodwill is not recognised for tax purposes. The goodwill is based mainly on synergies in the field of revenue which result from the expansion of the portfolio and new potential in the field of contracts for managed services. The company has 43 employees.

As the company was already acquired in the fourth quarter of the previous reporting period, the firsttime full consolidation of the company as of 30 June 2024 did not lead to any further outflow of cash and cash equivalents in 2024. The cash outflow in the amount of the consideration of $€ 32,261$ thousand already took place in 2023.

The receivables taken over were not subject to any major impairments.

With the acquisition of the Apple reseller iDoo Tech S.L., Zaragoza, Bechtle is focussing on the B2B distribution of Apple products, including consulting, training and support. The plan is to handle Bechtle's entire Apple business in Spain via iDoo Tech. The objective is to gain Apple Authorised Enterprise Reseller status in order to be able to offer an even more extensive service and solution portfolio in the field of IT E-Commerce apart from the sale of products to business customers. The company has seven employees.

In addition to the assets and liabilities already recognised from the acquired companies, whose carrying amounts corresponded to their fair values, customer relationships in the amount of $€ 240$ thousand were newly recognised as identifiable assets and measured at their fair value on the acquisition date.

Deferred tax liabilities ( $€ 60$ thousand) were recognised in the course of capitalising the newly identified assets.

Under consideration of the acquired total net assets in the amount of $€ 441$ thousand, in total the capital consolidation resulted in a provisional difference in the amount of $€ 1,414$ thousand, which is reported as goodwill. This goodwill is not recognised for tax purposes. The goodwill is based mainly on synergies in the field of revenue which result from the expansion of the portfolio and new potential in the field of contracts for managed services.

The consideration for the company acquired in the first half of 2024 ( $€ 1,855$ thousand), taking into account the acquired cash and cash equivalents, led to an outflow of cash and cash equivalents totalling $€ 448$ thousand. The purchase agreement for iDoo Tech S.L. includes a conditional purchase price payment of $€ 1,407$ thousand.

The receivables taken over were not subject to any major impairments.

With the acquisition of the Apple reseller Magnetic Media Network S.p.A., Trezzo sull' Adda, Bechtle is further expanding its European partnership with Apple. The aim is to strengthen the market position in Italy by acquiring the company, which has been established since 1989. The company currently has 79 employees.

In addition to the assets and liabilities already recognised from the acquired companies, whose carrying amounts corresponded to their fair values, customer relationships in the amount of $€ 1,702$ thousand were newly recognised as identifiable assets and measured at their fair value on the acquisition date.

Deferred tax liabilities ( $€ 460$ thousand) were recognised in the course of capitalising the newly identified assets.

Under consideration of the acquired total net assets in the amount of $€ 8,979$ thousand, in total the capital consolidation resulted in a provisional difference in the amount of $€ 36,113$ thousand, which is reported as goodwill. This goodwill is not recognised for tax purposes. The goodwill is based mainly on synergies in the field of revenue which result from the expansion of the portfolio and new potential in the field of contracts for managed services.

The consideration for the company acquired in the first half of 2024 ( $€ 45,092$ thousand), taking into account the acquired cash and cash equivalents, led to an outflow of cash and cash equivalents totalling $€ 32,986$ thousand. The purchase agreement for Magnetic Media Network S.p.A. includes a conditional purchase price payment of $€ 2,000$ thousand.

The receivables taken over were not subject to any major impairments.

Since the acquisition, the companies have realised a total of $€ 2,389$ thousand in revenue (thereof PLANET AI $€ 0$ thousand, iDoo $€ 2,389$ thousand, Magnetic Media Network $€ 0$ thousand), and $€ 34$ thousand in earnings after taxes (thereof PLANET AI $€ 0$ thousand, iDoo $€ 34$ thousand, Magnetic Media Network $€ 0$ thousand). If the date of acquisition of the new acquisitions had been at the beginning of the reporting period, the revenue of the Bechtle Group for the reporting period would have totalled $€ 3,029,412$ thousand (thereof PLANET AI $€ 963$ thousand, iDoo $€ 3,192$ thousand, Magnetic Media Network $€ 49,415$ thousand, ), the earnings after taxes would have been $€ 118,906$ thousand (thereof PLANET AI $€-1,134$ thousand, iDoo $€ 54$ thousand, Magnetic Media Network $€ 1,823$ thousand).

XI. PEOPLE AT BECHTLE

The number of employees (excluding temporary staff and trainees) is as follows:

	30.06.2024	31.12.2023	01.01 - 30.06.2024	01.01 - 30.06.2023
Full and part-time staff without absentees	14,203	13,935	14,097	13,249
Absent employees	409	382	389	$382^{1}$
Total	14,612	14,317	14,486	13,631

${ }^{1}$ Prior-year figure adjusted

The number of full-time and part-time employees listed above as of the balance sheet date includes 126 (31 December 2023: 123), and the average number of full-time and part-time employees includes 121 (prior year: 127), managing directors or members of the Executive Board of subsidiaries.

The employee numbers (without temporary staff and trainees) break down by segments and regions as follows:

	30.06.2024	31.12.2023	01.01 - 30.06.2024	01.01 - 30.06.2023
IT System House \& Managed Services	10,976	10,8521	10,898	10,5061
Domestic	9,274	9,153	9,204	$8,862^{1}$
Abroad	1,702	$1,699^{1}$	1,694	$1,644^{1}$
IT E-Commerce	3,636	$3,465^{1}$	3,588	$3,125^{1}$
Domestic	834	726	836	$781^{1}$
Abroad	2,802	$2,739^{1}$	2,752	$2,344^{1}$
Total	14,612	14,317	14,486	13,631

${ }^{1}$ Prior-year figure adjusted

The number of employees (excluding employees who are absent, temporary staff and trainees) can be broken down by function as follows:

	30.06.2024	31.12.2023	01.01 - 30.06.2024	01.01 - 30.06.2023
Services	7,361	$6,950^{1}$	7,295	$6,633^{1}$
Sales	3,995	$4,047^{1}$	3,991	$3,857^{1}$
Administration	2,847	$2,938^{1}$	2,811	$2,759^{1}$
Total	14,203	13,935	14,097	13,249

[^0]
[^0]: ${ }^{1}$ Prior-year figure adjusted

XII. SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

No noteworthy events occurred at Bechtle after the end of the reporting period.

Neckarsulm, 9 August 2023

Bechtle AG
The Executive Board

Dr. Thomas Olemotz

Konstantin Ebert

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, 8 August 2024

Bechtle AG

The Executive Board

Dr. Thomas Olemotz

Michael Guschlbauer

Ante sannily
Antje Leminsky

AUDITING INFORMATION

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

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 believes that these forward-looking 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.

Bechtle's financial accounting and reporting policies comply with the International Financial Reporting Standards (IFRS) as endorsed by the EU. Due to rounding differences, percentages stated in the report may differ slightly from the corresponding amounts in € million. Similarly, totals may differ from the individual values.

FINANCIAL CALENDAR

INTERIM REPORT 2024 (30 JUNE)
Friday, 9 August 2024
QUARTERLY STATEMENT 3RD QUARTER 2024 (30 SEPTEMBER)
Friday, 8 November 2024

See bechtle.com/de-en/financial-calendar for further dates and changes.

Publisher/Contact

Bechtle AG
Bechtle Platz 1
74172 Neckarsulm
Germany

Investor Relations

Martin Link
Phone +49 7132 981-4149
martin.link@bechtle.com

Frank Geißler
Phone +49 (0) 7132 981-4688
frank.geissler@bechtle.com

Julia Hofmann
Phone +49 7132 981-4153
julia.hofmann@bechtle.com

The Interim Report H1/2024 was published on 9 August 2024.

Bechtle AG
Bechtle Platz 1, 74172 Neckarsulm
Germany
Phone +49 (0) 7132981-0
ir@bechtle.com
bechtle.com