Assets and Financial Position


Solid funding enables Bechtle to grow even in difficult times

The Bechtle Group has a solid balance-sheet structure and sufficient financial resources to grow organically and respond flexibly to the needs of the market. Especially in difficult economic times, adequate liquidity provides a competitive advantage, also from the customer’s viewpoint. Due to the macroeconomic parameters, particular importance will be attached to corporate cash management in the current year. As of the balance-sheet date 31 December 2008, the company had cash and cash equivalents amounting to 77.3 million euros, marketable securities worth 0.3 million that can be sold at short notice, and unused credit lines amounting to approximately 39.9 million euros, all of which were available for short-term financing. The credit facilities available to the company are far from being exhausted, and the remaining borrowing potential is even higher. In conjunction with the continued positive development of the operating cash flow, Bechtle has adequate resources for attaining its goals and financing future growth.


Given the current development in the financial markets, the company assumes that it will be able to at least keep the financial earnings - a positive balance of interest income and interest payable - until 2010 at the level of the prior years. Smaller acquisitions can be performed from the current cash flow and available liquidity resources. The potential takeover of larger companies would most likely result in some cash outflow, most of which would most probably be financed with debt capital. This, in turn, could affect the current financing structure of Bechtle AG, with the possibility of a negative financial balance.

Over the next two years, the investments needed to realise the growth targets will not involve any major change of the current financing structure. Moreover, Bechtle could resort to the equity financing options according to the adopted Annual General Meeting resolutions. Until June 2009, the Executive Board is authorised to increase the equity capital by issuing up to 10.6 million shares against cash or contributions in kind. The company plans to re-submit the authorisation for the use of the approved capital to the Annual General Meeting 2009.

Provided that no major takeovers take place in the next two years, the balance-sheet structure will not undergo any significant changes.


Investments progressing according to plan

The business of Bechtle AG, which comprises IT product trading and IT services, does not require high investments. Generally, the planned investments in property, plant and equipment and in intangible assets (software) will more or less match the scheduled depreciation and amortisation. These investments will mainly comprise investments in the replacement of the office equipment for the distribution and service companies and expansion investments in new building facilities and extended capacities. Thus, investments will be made to optimise logistics and space concepts at the Bechtle AG headquarters in Neckarsulm, Germany, and at other group locations. Without factoring in possible acquisitions, the volume of investments planned until 2010 for plant, property and equipment and intangible assets will, from the present standpoint, not change significantly compared to prior years. In the current year, the majority of the planned investments involve standard replacements with a budgeted volume of about 12 million euros. Moreover, one-time invest- ments of about 6 million euros are budgeted for building activities in Neckarsulm and Gaildorf, Germany. Due to the solid financial basis, the company will be able to finance the planned investments using its own resources. In principle, unscheduled investments due to acquisitions are also possible.