Bechtle (BC8) CMD 2024 summary

Current trading and financial outlook

• Mixed performance in 2023, with sluggish SMB demand in Germany and France, but stable trends overall.

• Public sector business showed gradual improvement after a slow start due to delayed German federal budget, with positive trends adjusted for a large prior-year deal.

• New guidance targets 2% revenue growth and 4% earnings growth for the second half of 2023, with expectations of a back-end loaded year.

• Optimism for 2025 driven by the Windows 10 end-of-support replacement cycle and anticipated customer investment.

• Security remains a fast-growing segment, with NIS2 and digitalization as key drivers.

Public sector business strategy and structure

• Public sector business is prioritized for its stable budgets, higher investments during crises, and predictable, sustainable growth, accounting for 40% of total turnover.

• Centralized tender desk and shared service centers support local entities across 14 European countries, ensuring common standards, efficient tender responses, and unified partner engagement.

• Decentralized entities maintain local expertise and customer satisfaction, while centralization improves efficiency in areas like recruitment and legal.

• Expansion outside Germany, notably in the Netherlands, has driven growth, with the Netherlands contributing €760 million in 2023 and serving as a blueprint for other markets.

• 3,000 dedicated salespeople and strong central-local collaboration support public sector growth and customer proximity.

Financial performance and growth

• Public sector accounted for 40% of group sales in 2023, reaching approximately €3.5 billion.

• The Netherlands contributed €760 million in revenue in 2023, with 820 employees across several locations.

• Recent acquisitions in the Netherlands and France are expected to improve efficiency, scale, and cross-entity collaboration.

• Ongoing economic growth and high IT maturity in the Netherlands support a resilient and innovative business model.

• Bechtle aims to be the number one technology partner for public sector clients across Europe, leveraging a strong decentralized network and expert knowledge.