Consolidation Principles

The financial statements of Bechtle AG and its subsidiaries included in the consolidated financial statements were prepared using uniform group accounting policies. Capital consolidation has been effected by offsetting the carrying amount of participations against the value of the proportionate share of the equity of the subsidiaries at the time of acquisition. Positive differences are recognised as goodwill in accordance with IFRS 3.51, while under IFRS 3.56 (b) negative differences are recognised in the income statement. The consolidated income statement takes into account the earnings of the acquired companies from the date of acquisition, i.e. from the date the group attains control. Inclusion in the consolidated financial statements ends as soon as the parent company relinquishes control.

All intra-group profits and losses, revenues, expenses, income, receivables and liabilities are eliminated on consolidation. The required tax deferrals have been applied to the consolidation processes.