Bechtle Held Up Well in 2009

Bechtle AG / Final Results/Dividend

19.03.2010 10:30

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Bechtle Held Up Well in 2009

  - Slight revenue decline to 1.38 billion euros (-3.6 per cent): domestic
    service business and public sector have stabilising effect

  - Solid financial basis: 64.3 per cent equity ratio and 95.0-million-euro
    liquidity reserve are record values

  - Attractive return: dividend proposal 0.60 euros

  - Outlook: positive order development in the first weeks creates
    optimistic mood for 2010

Neckarsulm, 19 March 2010 - In 2009, Bechtle AG did well despite the
difficult setting. In the most severe crisis after World War II, the IT
service and trading enterprise generated total revenues of 1,379.3 million
euros (prior year: 1,431.5 million euros). The 2009 EBT exceeded general
market expectations, totalling 43.7 million euros (prior year: 61.5 million
euros). At 3.2 per cent, the EBT margin remains at a level that is
outstanding compared to the industry average (prior year: 4.3 per cent).
The earnings per share amounted to 1.64 euros, compared to 2.14 euros in
the prior year. In view of the group's excellent liquidity position, the
Executive Board and the Supervisory Board will propose the distribution of
a dividend of 0.60 euros per share at the Annual General Meeting to be held
in June 2010.

'Thanks to the strong closing quarter, the fiscal year turned out better
than expected. With a revenue loss of only 3.6 per cent, the Bechtle Group
has done exceedingly well compared to the general market development in the
industry. In terms of our earnings, we were able to reduce the gap to the
prior year from quarter to quarter,' says Dr. Thomas Olemotz, Spokesman of
the Executive Board of Bechtle AG.

IT System House & Managed Services Segment Reports Positive Business
Performance in Germany

In the IT system house & managed services segment, Bechtle generated
revenues of 920.0 million euros in 2009, only 0.8 per cent less than in the
prior year (927.5 million euros). Especially the business of the domestic
system houses and the development in the public sector division had a
stabilising effect. The IT system house & managed services revenue in
Germany even increased slightly from 778.7 million euros to 779.3 million
euros. The business with public-sector clients surged by 32.8 per cent to
290.6 million euros (prior year: 218.8 million euros). This means a share
of 21.1 per cent in the total revenue (prior year: 15.3 per cent).

In 2009, the EBIT in the IT system house & managed services segment dropped
by 33.0 per cent to 25.8 million euros (prior year: 38.4 million euros).
Accordingly, the EBIT margin declined from 4.1 per cent to 2.8 per cent.
This was mainly due to the weak revenue performance in comparison with the
costs and the increase in personnel expenses.

Sights Set on Further International Growth in the IT E-Commerce Segment

In the IT e-commerce segment, revenue totalled 459.4 in 2009, 8.8 per cent
less year-on-year (prior year: 503.9 million euros). In the reporting
period, the price pressure continued especially in the field of hardware
products, resulting in an average price slump of about 12 per cent. Despite
the considerable increase in the quantity sold in some product groups, this
price slump could not be fully compensated. In the fiscal year 2009, the
revenues of the foreign companies amounted to 317.1 million euros (prior
year: 343.8 million euros). The domestic trading companies accounted for
142.3 million euros of the revenue (prior year: 160.2 million euros).

In the reporting period, the EBIT in the IT e-commerce segment receded from
21.8 million euros to 16.9 million euros. Though the necessary headcount
reduction resulted in cost savings, this only compensated part of the
revenue decline. In 2009, investments were made in the two new national
markets Ireland and Portugal; moreover, preparations were made for the
market entry of Bechtle direkt in Poland and of Comsoft direct in Belgium.
Thus, the EBIT margin in the trading segment fell from 4.3 per cent to 3.7
per cent.

 Solid Balance-Sheet Structure and Significantly Improved Free Cash Flow

Despite the balance sheet extension, the equity ratio improved from 62.8
per cent to 64.3 per cent as of 31 December 2009. As of the reporting date,
cash and cash equivalents including capital investments and securities had
increased from 77.6 million euros to 95.0 million euros. Together with
unused credit lines of 34.7 million euros, Bechtle AG has a comfortable
liquidity reserve of 129.7 million euros as of 31 December 2009 (prior
year: 117.5 million euros).

Despite the lower earnings, the operating cash flow still remained at a
high level of 46.7 million euros (prior year: 49.9 million euros). The free
cash flow increased by 19.5 per cent to 33.8 million euros (prior year:
28.3 million euros).

Attractive Dividend

Irrespective of the decrease in earnings, the dividend of 0.60 euros per
share proposed by the management for the fiscal year 2009 corresponds to
the prior-year level. Thus, the dividend payout ratio amounts to approx. 40
per cent, reflecting the reliability of Bechtle's dividend policy and the
excellent liquidity.

Number of Employees Down Slightly

As of 31 December 2009, the Bechtle Group had 4,354 employees, compared to
4,405 at the end of 2008. The decrease, which mainly took place in the IT
e-commerce segment, was necessary because of the poor capacity utilisation
in this segment. In the reporting period, personnel expenses increased by
2.7 million euros to 220.4 million euros. The personnel expense ratio thus
climbed from 15.2 per cent to 16.0 per cent.

Optimistic Outlook for 2010

In view of the improved economic situation and the strength of Bechtle AG,
the Executive Board is confident that both business segments will grow this
year and the company's performance will again be above the industry
average. The expansion in Europe is expected to contribute to this growth
in the IT e-commerce segment. Thus, the group will launch its business
operations in Poland with a new trading company in the first half of the
year and plans to enter the Czech market in the second half of the year.
The growth of the group is also supported by the concentration on
fast-growing business fields in the IT system house & managed services
segment and expansion of the activities in the public sector division,
especially since the demand in this customer segment is expected to remain
stable in the current year due to the funds from the economic stimulus
package 2. Furthermore, acquisitions will remain an integral element of the
growth strategy. 'We are satisfied with the incoming order volume since the
beginning of the year, and believe there are good chances for a tangible
rise in demand in the second half of the year. Moreover, Bechtle AG's
adequate funding provides enough freedom for future organic growth and
acquisitions,' explains Dr. Thomas Olemotz.


                                                 2009       2008   Change
Revenue                           th. Euros  1,379,307  1,431,462  -3.6%
Domestic                          th. Euros   921,578    938,868   -1.8%
Abroad                            th. Euros   457,729    492,594   -7.1%
IT system house & managed
services                          th. Euros   919,956    927,530   -0.8%
IT e-commerce                     th. Euros   459,351    503,932   -8.8%
EBIT                              th. Euros    42,712     60,229   -29.1%
IT system house & managed
services                          th. Euros    25,768     38,444   -33.0%
IT e-commerce                     th. Euros    16,944     21,785   -22.2%
EBT                               th. Euros    43,662     61,533   -29.0%
EBT margin                        per cent        3.2        4.3
Earnings after taxes              th. euros    34,258     45,428   -24.6%
Earnings per share                   euros       1.64       2.14   -23.4%
Operating cash flow               th. euros    46,665     49,941   -6.6%
Free cash flow                    th. euros    33,772     28,252   +19.5%
Cash and cash equivalents*        th. euros    94,977     77,300   +22.4%
Equity ratio                      per cent       64.3       62.8
Number of employees as of 31
December                                        4,354      4,405   -1.2%




* Including capital investments and securities


19.03.2010 Ad hoc announcement, Financial News and Media Release
distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Bechtle AG
              Bechtle Platz 1
              74172 Neckarsulm
              Deutschland
Phone:        +49 (0)71 32/ 9 81-0
Fax:          +49 (0)7132/ 9 81 - 8000
E-mail:       ir@bechtle.com
Internet:     www.bechtle.com
ISIN:         DE0005158703
WKN:          515870
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart
 
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