Ad-hoc | 12 August 2005 07:29

Bechtle AG still views forecast as achievable after restrained first half

Ad hoc announcement §15 WpHG Interim Results Bechtle AG still views forecast as achievable after restrained first half Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Revenues after six months up 7.7 per cent – First half of the year determined by acquisitions and the development of an additional sales structure – Pre-tax earnings 5.9 per cent below the previous year’s results Neckarsulm, 12/08/2005 – Due to acquisitions, Bechtle AG increased revenues in the first half of the year by 7.7 per cent to 529.8 million Euros (previous year: 492.1 million Euros). Positive market stimuli, however, still appeared few and far between. Organic turnover growth amounted to 1.3 per cent. On the income side, the IT reseller and service provider achieved pre-tax earnings (EBT) of 13.1 million Euros, just short of the prior year level of 13.9 million Euros (previous year’s results adjusted for changeover effects in accordance with IFRS). This can be attributed in particular to integration expenses resulting from acquisitions, costs incurred in creating a complementing sector-focussed distribution structure. After the first 6 months of the year Bechtle achieved earnings per share of 0.40 Euros, compared to 0.44 Euros in the same period last year. This is due to a group period net income of 8.4 million Euros, 9.6 per cent short of the adjusted figure for the corresponding period of last year of 9.3 million Euros. Owing to a low base level from the first half of the year, the Executive Board considers the aimed for performance targets for the year as a whole to be ambitious, but nevertheless achievable. A noticeable increase in demand for IT services is required. In 2005 revenue should amount to 1.3 billion Euros accordingly (plus 19.5 per cent), and pre-tax figures to at least 42 million Euros (plus 11 per cent). Telephone conferences for analysts and journalists today: 8:30 am (CET) for analysts and 10:30 am (CET) for journalists. Contact number for both: +49 (0)69 589 990 507, Discussion partner: Ralf Klenk, CEO, Stefan Sagowski, CFO. Contact: Bechtle AG, Sabine Emich, Investor Relations, Telephone: +49 (0) 7132/981-4115, Fax: +49 (0) 7132/981-4116, sabine.emich@bechtle.com Bechtle AG Bechtle Platz 1 74172 Neckarsulm Deutschland ISIN: DE0005158703 (TecDAX) WKN: 515870 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 12.08.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Segment development In the system house segment revenues for the period from January to June amounted to 361.3 million Euros. The increase of 10.6 per cent can be primarily attributed to initial consolidation effects. The organic proportion of the growth adds up to 1.0 per cent. Operating results (EBIT) decreased in the first half of the year from 5.9 million Euros to 3.4 million Euros. This decline from the prior year period is largely due to integration expenses and the expansion of the sales structure, next to increased marginal pressure. With the acquisition of three system houses and one new foundation, the first half of the year saw the establishment of 13 new locations in Germany and Switzerland and the arrival of around 400 additional employees in the system house segment. Revenues of the IT e-commerce segment increased 1.8 per cent to 168.5 million Euros in the first half of the year, all organically generated. Profitability of the division as a whole improved considerably in spite of continuing pressure on prices: EBIT climbed 19.8 per cent, amounting to 9.7 million Euros, compared to 8.1 million Euros in the prior year period. Particularly worthy of attention here are the continued optimisation of process efficiency and the resulting cost reductions. Asset structure Liquid funds, including current asset securities, amounted to 41.9 million Euros at the end of the first half of the year (31st December 2004: 65.8 million Euros). The main causes of the decline are the financing of acquisitions from their own resources, June’s dividend payout and loan repayments. Combined with a free credit line of 45.9 million Euros, Bechtle has liquidity reserves of 87.8 million Euros in total. The equity ratio increased from 56.4 per cent to 60.2 per due to the lower balance sheet total. Employees The number of employees belonging to the Bechtle Group increased in the first half of 2005 by 401 to a total of 3,579 people. This 12.6 per cent rise is largely due to the acquisitions undertaken during the period. Measures Bechtle is expanding and strengthening its operations in both of its sements: in the system house segment this has been through the expansion of its regional presence and a sector-oriented sales strategy that is focussed on customer groups with specific requirements such as the public sector. In addition, the acquisition of PP 2000 AG and the agreement with IBM to take over its Deskside Support Services division represent the first successes in cultivating the Managed Services area as a further core competency. In pursuing this aim, Bechtle is particularly looking to profit from the trend towards IT outsourcing. In the e-commerce division, the company is consistently following a dual brand strategy. The largest individual project is the development of a scaleable IT trading platform intending to widen the business activities of the ARP Group from the D-A-CH region (Germany, Austria, Switzerland) to additional European countries. Forecast The Bechtle Executive Board is predicting a considerable upturn in demand in IT services during the second half of the year. This is typical of the sector and should have the effect of contributing disproportionately to the whole year results what is expected especially for the fourth quarter. “Our targets for the whole year are without question ambitious but continue to be realistic”, says Ralf Klenk, Chairman of the Executive Board. This year’s acquisitions initially cause start-up costs, but on the other hand secure markets shares and improve the competitive position of the Group. Bechtle is continuing to adhere to the strategy of aligning its planning to medium- and long-term effects, while focusing to a lesser extent on short-term results. Mid year report available at www.bechtle.com Bechtle AG Overview – Mid-year and 2nd Quarter 2005/2004 Thousand Euros 1st half 1st half Q2/ Q2/ 2005 2004 2005 2004 Turnover 529,813 492,103 275,065 243,724 System House 361,328 326,674 189,491 165,765 E- commerce 168,485 165,429 85,574 77,959 EBITDA 18,728 19,818 8,176 8,912 EBIT 13,093 14,024 4,990 6,069 System House 3,386 5,918 999 3,045 E- commerce 9,707 8,106 3,991 3,024 EBT 13,124 13,940 5,029 6,029 Profit 8,383 9,276 3,297 4,503 EPS (Euros) 0.40 0.44 0.16 0.21 Equity Ratio (%) 60.2 56.4 / / No. of Employees 3,579 3,178 3,579 3,178 (1) The accounting standards in accordance with IFRS applied since 1st January 2005 led to retroactive adjustments of previous information for 2004. The adjusted figures are displayed here. (2) Average Nr. of shares 1st half/2004: 20,903,297, all remaining: 21,200,000 (3) Equity ratio and number of employees 2004 as of December, 31 End of message (c)DGAP 120729 Aug 05