In the third quarter of 2020, the Bechtle Group again recorded high growth despite the ongoing COVID- 19 pandemic and the great uncertainty it has caused.
As of 30 September, the order backlog amounted to €854 million (prior year: €689 million). Of this amount, the IT System House & Managed Services segment accounted for €690 million (prior year: €570 million), and the IT E-Commerce segment for €164 million (prior year: €119 million).
Year on year, the revenue went up 7.4 per cent to €1,370.9 million. The organic revenue growth amounted to 6.3 per cent.
GROUP REVENUE
€m
1,597.4
1,353.4
1,239.9
1,260.8
1,276.3
1,355.7
1,310.5 1,370.9
1,070.9
1,049.6
955.4
965.0
803.1
822.2
873.9
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
The IT System House & Managed Services segment increased revenue by 9.7 per cent, thus maintaining the high growth rate of the prior two quarters. In the third quarter, the companies in Austria and Switzerland again posted particularly strong growth of 24.3 per cent, with an organic increase of
19.6 per cent. In the IT E-Commerce segment, the increase amounted to 3.1 per cent. This represents a major improvement over the prior quarter, in which the segment had suffered a decline of 6.6 per cent. In this segment, Germany was the growth driver, with an increase of 23.0 per cent.
Bechtle AG Quarterly Statement as of 30 September 2020
4
REVENUE BY SEGMENTS
€m
0
250
500
750
1,000
1,250
1,500
1,750
2,000
Total
Q3/2019
837.1
439.2
1,276.3
1,370.9
Q3/2020
917.9
453.0
(+ 7.4%)
IT System House & Managed Services
IT E-Commerce
The revenue of the companies abroad increased by 4.8 per cent. This item was still affected by the COVID-19 restrictions, some of which were stricter and longer. The German companies recorded strong growth of 8.9 per cent.
REVENUE - GROUP AND SEGMENTS
€k
Q3/2020
Q3/2019
Change
Group
1,370,856
1,276,305
+7.4%
Domestic
876,538
804,664
+8.9%
Abroad
494,318
471,641
+4.8%
IT System House & Managed Services
917,897
837,069
+9.7%
IT E-Commerce
452,959
439,236
+3.1%
Gross earnings increased 8.3 per cent, and the gross margin went up slightly from 14.9 per cent to 15.0 per cent. While personnel expenses and depreciation and amortisation - which are included in the cost of sales - underwent a disproportionately high increase, the other operating expenses dropped by 19.3 per cent. This was due to savings made as a result of the coronavirus pandemic, especially with regard to travel expenses. At 7.0 per cent, material costs rose slightly less than proportionately, thus also contributing to the positive development of the gross margin.
Costs in the functional areas sales and administration both underwent a below-average increase.
Administrative expenses increased 2.1 per cent, and the corresponding ratio dropped slightly from
per cent to 4.7 per cent. Due to the savings as mentioned above, distribution costs even fell by
per cent, and the expense ratio went down from 5.9 per cent to 5.4 per cent. Other operating income climbed 4.6 per cent to €6.2 million.
Year on year, EBITDA grew 22.4 per cent, and the EBITDA margin went up from 6.2 per cent to 7.1 per cent.
Depreciation and amortisation increased by 13.4 per cent to €24.2 million. As previously, depreciation of property, plant and equipment accounted for the largest share of the depreciation and amortisa- tion, rising from €17.9 million to €20.1 million.
EBIT gained 25.7 per cent to €73.3 million. The margin was 5.4 per cent, compared to 4.6 per cent in the prior year.
The EBT performance was similar, increasing 25.7 per cent to €71.7 million. As a result, the EBT margin improved from 4.5 per cent to 5.2 per cent.
Bechtle AG Quarterly Statement as of 30 September 2020
5
EBT AND EBT MARGIN
€m and %
3.9
4.4
4.8
4.9
3.7
4.5
4.4
5.0
3.6
4.4
4.5
4.9
3.8
4.4
5.2
78.6
68.2
71.7
55.7
57.0
58.1
52.9
51.1
43.6
46.1
45.0
42.2
36.2
35.4
31.5
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
The tax rate declined slightly from 29.5 per cent to 29.2 per cent. Earnings after taxes went up 26.2 per cent to €50.8 million. EPS amounted to €1.21 (prior year: €0.96).
In the segments, the earnings situation was as follows: In the IT System House & Managed Services segment, EBIT increased 24.9 per cent to €50.0 million. On the one hand, there was an increased share of higher-margin services. On the other hand, corona-related cost savings led to a decline in other operating expenses. The EBIT margin went up from 4.8 per cent to 5.5 per cent.
EBIT in the IT E-Commerce segment climbed 27.3 per cent to €23.3 million. Firstly, this item was affected by savings in distribution costs. Secondly, the product mix in the third quarter had a positive effect on the margin. Year on year, the EBIT margin thus underwent a significant increase from 4.2 per cent to 5.1 per cent.
EBIT - GROUP AND SEGMENTS
€k
Q3/2020
Q3/2019
Change
Group
73,342
58,363
+25.7%
IT System House & Managed Services
50,036
40,050
+24.9%
IT E-Commerce
23,306
18,313
+27.3%
Bechtle AG Quarterly Statement as of 30 September 2020
6
ASSETS AND FINANCIAL POSITION
The balance sheet total of the Bechtle Group as of 30 September 2020 stood at €2,504.2 million, 4.6 per cent more than as of 31 December 2019.
On the non-current assets side, goodwill and property, plant and equipment went up by €45.5 million and €26.9 million, respectively, due especially to acquisitions. The increase of €19.2 million in trade receivables reflects the higher number of large projects. The capitalisation ratio climbed from 35.3 per cent to 37.5 per cent.
Under the current assets, inventories increased by €71.3 million due to stock reserved for large projects and other reasons. However, compared to the level as of 30 June 2020, the inventories went down. As of 30 September 2020, trade receivables underwent a significant decline of €147.7 million. In the first nine months of 2020, our average DSO (days sales outstanding) dropped from 42.2 days to
41.2 days year on year. Especially in view of the tense macroeconomic situation, this notable achieve- ment underlines the effectiveness of our receivables management. Owing to a higher number of maintenance agreements and other factors, other assets increased by €35.0 million. As of 30 Sep- tember 2020, cash and cash equivalents went up to €290.9 million. The total liquidity of the Bechtle Group thus amounts to a comfortable €330.9 million.
LIQUIDITY (INCLUDING TIME DEPOSITS AND SECURITIES)
€m
330.9
250.9
272.2
285.1
236.8
174.8
191.6
154.9
140.9
134.1
118.4
104.0
115.7
104.4
83.0
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
The working capital dropped from €647.7 million to €616.1 million as of 30 September 2020. Even though inventories were further built up, this was more than compensated for by a substantial reduction of trade receivables and a lower reduction of the trade payables. In relation to the revenue, the working capital declined from 18.8 per cent as of 30 September 2019 to 15.3 per cent as of the reporting date.
On the equity and liabilities side, non-current liabilities experienced the greatest change. Due to a loan raised to finance acquisitions, financial liabilities went up €49.9 million.
Under the current liabilities, especially the trade payables dropped by €49.2 million in relation to the reporting date. Owing to factors such as the lower liabilities to personnel and VAT tax liabilities, other liabilities declined by €24.4 million.
Bechtle AG Quarterly Statement as of 30 September 2020
7
The equity increased by €80.3 million. Our equity ratio went up from 42.4 per cent as of 31 December 2019 to 43.7 per cent as of the reporting date. The extrapolated return on equity remained at the high prior-year level of 17.6 per cent.
EQUITY RATIO
%
59.0
58.5
58.7
53.9
57.6
56.5
46.7
44.5
43.6
43.0
42.7
42.4
43.0
42.7
43.7
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
In the period from January to September 2020, the cash flow from operating activities totalled €172.1 million (prior year: €38.7 million). This was due especially to the significant reduction of trade receivables, a lower build-up of inventories and a lower reduction of trade payables.
CASH FLOW FROM OPERATING ACTIVITIES
€m
147.2
132.7
98.2
53.3
44.0
33.6
35.0
22.8
16.6
13.9
7.6
−6.3
−6.6
−17.0
−22.1
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
Bechtle AG Quarterly Statement as of 30 September 2020
8
The cash flow from investing activities amounted to −€125.1 million (prior year: −€60.0 million). This was caused especially by the higher outflow for acquisitions as well as the outflow for the purchase of time deposits and securities. The cash flow from financing activities was at −€27.1 million compared to −€71.7 million in the prior year due to the assumption of new financial activities.
In the period from January to September, the free cash flow reached an excellent figure of €87.2 million (prior year: −€27.0 million).
EMPLOYEES
As of the reporting date 30 September 2020, the Bechtle Group had a total of 12,055 employees, 809 persons or 7.2 per cent more than on 30 September 2019. Compared to 31 December 2019, the headcount went up by 568. The increase of 4.9 per cent was the result of new recruitment as well as acquisitions.
EMPLOYEES IN THE GROUP
11,768
11,955
12,055
11,487
10,915
11,246
10,005
10,334
9,651
8,627
8,790
8,353
8,199
7,909
7,708
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
In the IT System House & Managed Services segment, the number of employees went up by 737 compared to 30 September 2019, an increase of 8.3 per cent. At 19.2 per cent, the headcount increase in the system houses abroad was significantly higher than in Germany, an effect that was also acquisition-related. In Germany, the number of employees grew by 6.7 per cent. Compared to
Bechtle AG Quarterly Statement as of 30 September 2020
9
30 September 2019, the headcount in the IT E-Commerce segment went up by 72. At 3.5 and 2.8 per cent, respectively, both the companies in Germany and those abroad merely underwent growth regarding the employee figures.
The average headcount in the group in the period from January to September 2020 amounted to 11,876, some 1,153 employees more than in the corresponding prior-year period, an increase of 10.8 per cent.
EMPLOYEES BY SEGMENTS
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Total
Q3/19
8,834
2,412
11,246
11,487
Q4/19
9,097
2,390
12,055
9,571
2,484
Q3/20
(+ 7.2%)
vs. Q3/19
IT System House & Managed Services
IT E-Commerce
As of 30 September 2020, Bechtle had 699 young trainees and students on integrated degree pro- grammes, 15 fewer than in the prior year. At the start of the new training year on 1 September 2020, a total of 216 young people embarked on their career with Bechtle.
FORECAST
The 2020 fiscal year is overshadowed by the numerous effects of the COVID-19 pandemic. Since March - and now again to an increased extent - the macroeconomic framework conditions and their development are subject to great uncertainty. So far, Bechtle has done extremely well despite these difficulties. In the first nine months, the revenue went up 6.9 per cent, and EBT even increased 14.6 per cent. In view of this positive development, we are confident that we will reach our goals for 2020 despite the high uncertainty and the risks that still exist in the supply chain. However, this greatly depends on the further course of the pandemic in the fourth quarter. Due to the seasonality that the business of Bechtle AG is typically subject to, the months of November and December are critical to the success of a fiscal year. Provided that the restrictions due to the coronavirus pandemic are not drastically intensified throughout Europe in the coming weeks, and especially the business landscape does not suffer another total lockdown, we concretise and raise our forecast of March 2020. As previ- ously, we are aiming for significant revenue growth of 5 to 10 per cent. However, against the backdrop of the positive earnings and margin performance in the year to date, we are increasing our forecast with regard to these indicators. We now expect very significant EBT growth (previously: significant). Our original projection in respect of the EBT margin performance was that we intend to keep it at least at the prior-year level. We now expect the EBT margin for 2020 to be above that of the prior year. Apart from this, the forecast as presented on pages 111 to 118 of the Annual Report 2019 has not seen any changes and has not been further concretised.
Bechtle AG Quarterly Statement as of 30 September 2020
10
CONSOLIDATED INCOME STATEMENT
€k
01.07-
01.07-
01.01-
01.01-
30.09.2020
30.09.2019
30.09.2020
30.09.2019
Revenue
1,370,856
1,276,305
4,037,046
3,777,057
Cost of sales
1,165,136
1,086,326
3,431,911
3,229,853
Gross profit
205,720
189,979
605,135
547,204
Distribution costs
74,425
74,718
229,662
221,650
Administrative expenses
64,189
62,858
205,719
186,190
Other operating income
6,236
5,960
15,755
22,336
Earnings before interest and taxes
73,342
58,363
185,509
161,700
Financial income
230
249
737
828
Financial expenses
1,899
1,585
5,459
4,787
Earnings before taxes
71,673
57,027
180,787
157,741
Income taxes
20,916
16,810
52,762
46,654
Earnings after taxes
(attributable to shareholders of Bechtle AG)
50,757
40,217
128,025
111,087
Net earnings per share (basic and diluted)
€
1.21
0.96
3.05
2.64
Weighted average shares outstanding
(basic and diluted)
in thousands
42,000
42,000
42,000
42,000
Bechtle AG Quarterly Statement as of 30 September 2020
11
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
€k
01.07-
01.07-
01.01-
01.01-
30.09.2020
30.09.2019
30.09.2020
30.09.2019
Earnings after taxes
50,757
40,217
128,025
111,087
Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gains and losses on pension provisions
192
−214
−1,447
200
Income tax effects
−25
41
290
−38
Items that will be reclassified to profit or loss in subsequent periods
Unrealised gains and losses on financial derivatives
−48
−58
−171
−174
Income tax effects
−3
1
1
2
Currency translation differences of net investments
in foreign operations
2,491
−1,334
4,937
−2,090
Income tax effects
−739
397
−1,466
621
Currency translation differences
−2,609
2,746
580
4,505¹
Other comprehensive income
−741
1,579
2,724
3,026¹
of which income tax effects
−767
439
−1,175
585
Total comprehensive income
50,016
41,796
130,749
114,113¹
(attributable to shareholders of Bechtle AG)
¹ Prior year adjusted
Bechtle AG Quarterly Statement as of 30 September 2020
12
CONSOLIDATED BALANCE SHEET
ASSETS
€k
30.09.2020
31.12.2019
30.09.2019
Non-current assets
Goodwill
443,046
397,592
373,643
Other intangible assets
116,239
119,303
121,435
Property, plant and equipment
307,589
280,685
259,553
Trade receivables
57,351
38,148
29,997
Deferred taxes
7,047
3,914
4,589
Other assets
7,270
6,729
6,469
Total non-current assets
938,542
846,371
795,686
Current assets
Inventories
356,848
285,574
367,995
Trade receivables
714,621
862,323
735,117
Income tax receivables
2,210
2,022
860
Other assets
161,131
126,180
94,603
Time deposits and securities
40,001
0
0
Cash and cash equivalents
290,855
272,197
154,858
Total current assets
1,565,666
1,548,296
1,353,433
Total assets
2,504,208
2,394,667
2,149,119
Bechtle AG Quarterly Statement as of 30 September 2020
13
EQUITY AND LIABILITIES
€k
30.09.2020
31.12.2019
30.09.2019
Equity
Issued capital
42,000
42,000
42,000
Capital reserves
124,228
124,228
124,228
Retained earnings
928,963
848,614
789,089
Total equity
1,095,191
1,014,842
955,317
Non-current liabilities
Pension provisions
32,086
30,702
19,579
Other provisions
10,547
10,081
11,848
Financial liabilities
423,740
373,874
376,923
Trade payables
11,406
13
17
Deferred taxes
37,676
33,180
40,571
Other liabilities
103,021
98,025
82,176
Contract liabilities
21,786
19,353
14,034
Deferred income
3,313
1,481
1,486
Total non-current liabilities
643,575
566,709
546,634
Current liabilities
Other provisions
15,465
12,805
15,286
Financial liabilities
22,582
13,801
13,219
Trade payables
357,566
406,807
312,826
Income tax payables
21,286
19,859
11,460
Other liabilities
207,335
231,776
177,363
Contract liabilities
108,869
105,369
90,171
Deferred income
32,339
22,699
26,843
Total current liabilities
765,442
813,116
647,168
Total equity and liabilities
2,504,208
2,394,667
2,149,119
Bechtle AG Quarterly Statement as of 30 September 2020
14
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
€k
Retained earnings
Total equity
Changes in
(attributable to
Capital
Accrued
equity outside
shareholders of
Issued capital
reserves
profits
profit or loss
Total
Bechtle AG)
Equity as of 1 January 2019
42,000
124,228
711,583
5,393
716,976
883,204
Distribution of profits for 2018
−42,000
−42,000
−42,000
Earnings after taxes
111,087
111,087
111,087
Other comprehensive income
3,0261
3,0261
3,0261
Total comprehensive income
0
0
111,087
3,026¹
114,113¹
114,113¹
Equity as of 30 September 2019
42,000
124,228
780,670
8,419
789,089
955,317
Equity as of 1 January 2020
42,000
124,228
840,067
8,547
848,614
1,014,842
Distribution of profits for 2019
−50,400
−50,400
−50,400
Earnings after taxes
128,025
128,025
128,025
Other comprehensive income
2,724
2,724
2,724
Total comprehensive income
0
0
128,025
2,724
130,749
130,749
Equity as of 30 September 2020
42,000
124,228
917,692
11,271
928,963
1,095,191
¹ Prior year adjusted
Bechtle AG Quarterly Statement as of 30 September 2020
15
CONSOLIDATED CASH FLOW STATEMENT
€k
01.07-
01.07-
01.01-
01.01-
30.09.2020
30.09.2019
30.09.2020
30.09.2019
Operating activities
Earnings before taxes
71,673
57,027
180,787
157,741
Adjustment for non-cash expenses and income
Financial earnings
1,669
1,336
4,722
3,959
Depreciation and amortisation of intangible assets and property, plant
and equipment
24,205
21,339
72,102
59,573
Gains and losses on disposal of intangible assets and property, plant
and equipment
−846
−8
−831
−38
Other non-cash expenses and income
2,808
4,710
10,922
6,323
Changes in net assets
Changes in inventories
33,266
−6,583
−71,924
−85,850
Changes in trade receivables
26,330
38,761
124,738
28,194
Changes in trade payables
12,760
−37,710
−39,367
−63,471
Changes in deferred income
−9,107
−3,038
−401
526
Changes in other net assets
−11,818
−7,784
−54,200
−18,521
Income taxes paid
−18,209
−14,777
−54,490
−49,691
Cash flow from operating activities
132,731
53,273
172,058
38,745
Investing activity
Cash paid for acquisitions less cash acquired
−5,514
−4,784
−55,298
−23,697
Cash paid for investments in intangible assets and property, plant and equipment
−12,365
−4,626
−39,018
−44,714
Cash received from the sale of intangible assets and property, plant and equipment
5,144
1,813
9,467
2,654
Cash paid for acquisitions of time deposits and securities
0
0
−40,001
0
Cash received from the sale of time deposits and securities, and from redemptions
of non-current assets
0
0
0
5,542
Interest payments received
−713
340
−267
659
Cash flow from investing activities
−13,448
−7,257
−125,117
−59,556
Financing activities
Cash paid for the repayment of financial liabilities
−3,182
−3,321
−9,698
−9,922
Cash received from the assumption of financial liabilities
−6,815
5
68,345
5,917
Dividend paid
0
0
−50,400
−42,000
Interest paid
−619
−622
−877
−2,147
Outflow for the repayment of finance leases
−12,872
−6,914
−34,435
−23,498
Cash flow from financing activities
−23,488
−10,852
−27,065
−71,650
Exchange-rate-related changes in cash and cash equivalents
−1,774
1,316
−1,218
1,940
Changes in cash and cash equivalents
94,021
36,480
18,658
−90,521
Cash and cash equivalents at beginning of the period
196,834
118,378
272,197
245,379
Cash and cash equivalents at the end of the period
290,855
154,858
290,855
154,858
Bechtle AG Quarterly Statement as of 30 September 2020
16
FINANCIAL CALENDAR
Q U A R T E R LY S TAT E M E N T 3 R D Q U A R T E R 2 0 2 0 ( 3 0 S E P T E M B E R )
Wednesday, 11 November 2020
A N N U A L R E P O R T 2 0 2 0
Friday, 19 March 2021
A C C O U N T S P R E S S C O N F E R E N C E
Friday, 19 March 2021
A N A LY S T S ' C O N F E R E N C E
Friday, 19 March 2021
Q U A R T E R LY S TAT E M E N T 1 S T Q U A R T E R 2 0 2 1 ( 3 1 M A R C H )
Tuesday, 11 May 2021
A N N U A L G E N E R A L M E E T I N G
Tuesday, 15 June 2021
H A L F -Y E A R F I N A N C I A L R E P O R T 2 0 2 1 ( 3 0 J U N E )
Thursday, 12 August 2021
Q U A R T E R LY S TAT E M E N T 3 R D Q U A R T E R 2 0 2 1 ( 3 0 S E P T E M B E R )
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