Risks

The management believes that the risks described below could have a detrimental effect on the company’s earnings, assets and financial position, its reputation and its valuation on the capital market. Nevertheless, this list does not include all risks the Bechtle Group might be exposed to. Risks that are not yet known or risks that are currently considered to be of little significance could also impair the company’s performance.

As in the previous year, the 2025 reporting period was characterised by challenging macroeconomic framework conditions accompanied by major geopolitical uncertainties. In this business environment, some risks have materialised, and new risk scenarios have also emerged. At Bechtle, not all 14 national markets were equally affected. In Germany and France in particular, SMEs remained very cautious. Bechtle was again very successful in other countries in 2025. In this respect, we can state that some of the macroeconomic risks at Bechtle have materialised only partially or in mitigated form. In this Risk Report, we only describe the direct risks concerning the Bechtle Group that still exist at the time of reporting.

Risk assessment

Identified risks are assessed on the basis of their estimated probability of occurrence and the loss amount expected upon occurrence in relation to the earnings, assets and financial position of the Bechtle Group and then categorised in a matrix as “very high”, “high”, “medium” or “low”. The corresponding classification of risks is as follows: A1 (very high risk), A (high risk), B (medium risk) and C (low risk). On this basis, we can initiate suitable risk management measures. The definitions used for measurement are described below. The Bechtle Group has grown continuously in recent years. As a result, the previously defined value limits for the amount of damage no longer matched the size of the Group. In order to keep the focus on material risks, the value limits were increased in the reporting period as shown below.

The following table provides an overview of all A1 and A risks and shows their development in the 2025 fiscal year.

Below, we describe particularly those risks that are classified as high and very high risks according to the risk matrix based on the gross measurement. In individual cases, however, lower-classified risks may also be included in this report.

Business-model-specific risks

Sector economy

Among other things, our customers’ willingness to invest depends on the macroeconomic development in the individual national markets, especially in Europe, but also around the globe. The trust that companies have in positive economic development is also an important factor. The Bechtle Group generates around 56 per cent of its business volume in Germany and around 44 per cent in other European markets. Against this backdrop, the development of the European economy as a whole and of the German economy in particular has a key impact on our company’s growth. Weaker or even decreasing economic activity can pose risks for the earnings, assets and financial position of the Bechtle Group.

In the reporting period, the macroeconomic environment continued to be influenced by the global crises as well as their direct and indirect effects. The political framework conditions, trade disputes and armed conflicts, together with the associated uncertainties, had a considerable negative impact on the macroeconomy. After two years of recession, the German economy nevertheless grew slightly again. The IT market developed more positively in this business environment and recorded growth of 5.2 per cent. IT is now an essential factor in value creation for all companies and public-sector clients. It is therefore generally more difficult to cut IT expenditure or postpone investments. However, in times of very high uncertainty, such as in the reporting period, such trends are also recognisable, particularly in the SME-dominated industrial sector. We will continue to closely monitor both the effects of the global crises and the uncertainties affecting society as a whole. The long-term continuation of the current situation could lead to a deterioration of the overall macroeconomic situation, which would also affect the IT market and thus Bechtle. In the medium and long term, however, we assume that investments in IT will be difficult to postpone and that the IT market should therefore continue to show a degree of resilience compared to the macroeconomy. Demand from government in particular should also be a stabilising factor here.

In the short term, we assess the probability of occurrence of sector economy risks to be medium. This could have significant adverse effects. We consider this risk to be high.

The corporate growth of the Bechtle Group is also influenced by macroeconomic development.

Trade conflict

The risk of a trade conflict with EU punitive tariffs on products from US tech companies – resulting in price increases and a decline in demand – initially appeared to be contained by the agreement with the European Union. Due to the fundamentally high level of uncertainty with regard to transatlantic economic policy, this risk is nevertheless considered to be high, with a medium probability of occurrence and a potentially high loss amount.

Bonuses – OEMs

The IT industry has always been characterised by constant change. This applies to technological development, but also to the positioning and orientation of key players and OEMs on the IT market. At present, as-a-service models and cloud solutions in particular are causing manufacturers to change their strategic priorities and shift bonuses for partners such as Bechtle to other areas. Conversely, previously successful market segments could then become less attractive and less profitable. There is also the risk of losing customers in the long term due to the direct connection between the manufacturer and customers.

Furthermore, manufacturers’ specific platform strategies cannot always be combined with automated workflows on our part. In addition, significant price increases by manufacturers, as can currently be observed in the storage market in particular, represent a high risk due to rising costs. These cannot always be passed on to customers, especially in the case of long-term contracts. If they are, rising prices can inhibit demand. There is also a risk that supply bottlenecks may occur for critical components due to currently limited production capacities and the sharp rise in demand, particularly in connection with AI data centres.

All of this could also have an impact on Bechtle’s business and its profitability. We assess the probability of occurrence as medium and anticipate significant effects should this risk materialise. This is therefore a high risk.

Management risks

Bechtle Group transformation

A market that is changing dynamically and a host of internal IT projects aimed at positioning the company for the future are creating additional tasks in many areas of the group. This could potentially lead to a slowdown in the implementation speed of necessary operational or strategic adjustments.

There could be a risk that Bechtle will not succeed in efficiently aligning its portfolio and service provision with new business segments. This could lead to a profitability risk, especially if this adjust­ment were to involve a high level of procedural work. With its customer proximity, Bechtle is very close to the needs and thus also the future demand of its customers. In this respect, we can normally implement such adjustment processes with sufficient lead time in parallel to day-to-day business.

Speed also plays a major role in adjusting the portfolio and adapting the business model. Despite the proximity to customers, there is a risk that the portfolio will no longer reflect demand, at least in part. A slower pace of implementation could also lead to a certain backlog, which could then likewise have an inhibiting effect on day-to-day business.

We consider the occurrence of this risk to be highly probable, but the loss amount to be medium. Nevertheless, this is a high risk.

Operational risks

Profitability in some areas

Due to the challenging economic framework conditions and weakened demand, there is a risk that profitability will decline more sharply in individual sub-segments of the Bechtle Group. It is not always possible to compensate for such effects through efficiency gains. In the reporting period, it once again became clear that the pressure on earnings increases if the volume of business does not grow sufficiently. It is often difficult to initiate countermeasures successfully in the short term. This risk is considered to be high. Its occurrence is probable, and its impact would be high.

Gross profit

Regardless of the current framework conditions, there is also a risk that costs will rise and profitability will suffer as a result. In addition to personnel expenses, other costs such as vehicle fleet and energy also play a role here. Changes in manufacturers’ business models could also make a significant contribution. The probability of occurrence of such risks is assessed as medium and the impact would be high, making it a high risk.

Productivity

Due to its high cost base, it is essential for Bechtle to provide its services in a particularly efficient and productive manner. This applies to both sales and services. We are continuously working on making processes leaner and more efficient. There are currently several projects in which artificial intelligence is being used to increase efficiency in internal sales, as well as in the provision and range of services. Nevertheless, there is always a risk that improvements in efficiency will be late to take effect or will not bring the expected success, meaning that productivity ultimately suffers. This is all the more true if a number of major strategic projects are being launched at the same time, as this could initially have a negative impact on operational performance processes. We counteract this with close project control, which includes careful project planning and stringent project management. Nevertheless, we consider such risks to be high. Although the probability of occurrence is only medium, the impact would be considerable.

IT risks

The use of IT is unavoidable in any company. Due to the advanced digitalisation, all material business processes at Bechtle are closely linked to IT systems and applications. The use of IT involves various risks in areas such as shop systems, order processing, ERP, controlling and financial accounting, as well as collaboration and telephony applications. For example, a smooth process ranging from the enquiry and order placement to the delivery and invoicing could face an availability risk if the operability of the required IT systems and applications were to be endangered. Potential causes include the malfunction of infrastructure components, energy or telecommunications outages, disruptions or faults at partners or software providers, and operating errors.

We are continuously working to create the conditions within internal IT to ensure that such risks inherent in the operation of IT are minimised. In particular, this includes ongoing investments to make sure platforms are reliable and up to date.

Cybercrime – Group

A material risk lies in the increase in cybercrime. The overall situation in the cyber environment remains highly critical and also includes a very high risk of Bechtle becoming the target of external attacks. It is very difficult to estimate the probability and extent of the resulting losses. Attackers could exploit potential vulnerabilities of software products used. The intrusion of unauthorised parties into the IT system could result in a confidentiality risk, or the systems could no longer operate smoothly after an attack. Furthermore, there is a risk of falling victim to a ransom attack.

To be prepared for potential emergency scenarios, the company’s existing crisis plans need to be updated continually, and new ones need to be created for new scenarios. For this purpose, Bechtle has appointed an interdisciplinary work group. Nevertheless, a new scenario could occur before a corresponding emergency plan can be drawn up.

Despite advanced protective mechanisms and security standards, we consider the occurrence of IT security risks to be highly probable. This could have significant negative impacts. The risks are considered to be very high.

Cybercrime – customer data

We pay particular attention to the protection of customer data. Here too, there is a risk of the security of this data being compromised by technical defects, software errors or organisational mistakes. This could result in claims for damages, penalties and reputational damage for the Bechtle Group. The latest cases of attacks by groups from abroad on IT infrastructures show that it is now less about encryption and more about the exfiltration of data. Since Bechtle has access to customers or offers services in this context, customer data could be jeopardised by such attacks. Here, we estimate the probability of occurrence as medium, but the impact could be high; this risk is therefore also assessed as high.

Dependency of internal IT

In Bechtle’s internal IT, there is a risk of a degree of dependency on a few manufacturers. This could have a negative impact on price negotiations. But there is also a technological risk here, for example if a manufacturer’s system fails.

Bechtle works very closely with all major well-known manufacturers. Nevertheless, there is an element of concentration. We consider the risk to be very high. Its occurrence is probable, and the impact would be high.

Financial risks

Risk management

Currency, interest rate and liquidity risks are actively managed at Bechtle on the basis of group-wide guidelines. In this context, the specific requirements for the organisational separation of the operations and auditing of the functional divisions are observed.

Derivative financial instruments are used exclusively for the purpose of hedging operational underlying transactions and mission-critical financial transactions in the form of currency futures, currency options and currency and interest swaps.

The financial risk management is characterised by clear allocation of responsibilities, central rules for the fundamental limitation of financial risks, purposeful alignment of the employed instruments to the requirements of the business activity and separate monitoring by a centrally controlled treasury.

Receivables

The solvency of our business customers plays an important role in the examination of the future risk situation. Bechtle could be exposed to bad-debt losses if customers can no longer meet their payment obligations in due time or in full due to inadequate financial means or unfavourable economic developments. However, this risk is manageable, as detailed monitoring of customer relationships, including ongoing credit checks, and proactive receivables management both centrally and locally help counteract this risk. These measures also replace the conclusion of trade credit insurance.

Potential risks in connection with the investment of cash equivalents are limited by exclusively executing investments with banks with an excellent rating and within the scope of defined limits. Payment transactions, too, are largely handled via banks with a top rating.

Interest

Financial assets and liabilities with maturities of more than one year generally involve an interest rate risk. The interest rate risks of the Bechtle Group are centrally analysed, and the resulting measures are actively managed by the central finance department. The procedure is regularly subjected to an audit determined by the management.

Foreign currencies

Currency risks are incurred in particular in areas where receivables, liabilities, cash and planned transactions exist or will accrue in currencies other than the local currency of the parent company. Except for Switzerland, the United Kingdom, Poland, the Czech Republic and Hungary, transactions take place mainly in euro countries and in euros. The foreign currency risk of the Bechtle Group is mainly in US dollars, in order to utilise price advantages when purchasing goods. Since the 2018 fiscal year, the hedging of net assets held by international subsidiaries in foreign currencies has comprised all non-euro countries. To avoid currency risk in other currencies, foreign exchange transactions are carried out when goods are purchased or customers have requested to make payments in foreign currencies. In the case of one-time amounts with terms to maturity that are usually short, these economic hedges are not accounted for as hedges. For projects that run over a longer period and generally have several associated hedges, the hedge accounting regulations of IFRS 9 are applied. Open currency transactions and the respective receivables and liabilities are analysed on a monthly basis and tested for effectiveness. Despite the high effectiveness of these ongoing measures, we estimate that currency risks are not unlikely to materialise and would expect some adverse effects. The risk is a medium risk.

Liquidity

In order to ensure unrestricted solvency, the Bechtle Group must have sufficient liquidity available at all times. The liquidity situation is managed and monitored by the treasury. The current financial position of our company at the end of 2025 – with cash and cash equivalents and time deposits and securities totalling €452.0 million (previous year: €716.2 million ) and a positive cash flow from operating activities of €289.8 million (previous year: €558.2 million ) – is very solid and extremely comfortable. The probability of occurrence of a liquidity risk is limited.

The treasury department of the Bechtle Group ensures the liquidity supply for the group divisions and subsidiaries by means of cash pooling or inter-company loans. Furthermore, it controls the interest rate risk and is responsible for the assessment, analysis and monitoring of positions subject to market risks. The materialisation of liquidity risks is considered to be improbable. Moderate detrimental effects on our earnings, assets and financial position cannot be fully excluded. The risk is classified as a low risk.

Surrounding Risks

Insurances

Bechtle endeavours to cover risks that cannot be avoided largely by taking out insurance. However, it has become almost impossible to find an insurer offering reasonable conditions for IT risks in particular. Alternative insurance models are being examined, but are difficult or impossible to implement due to regulation and complexity. Accordingly, there is a danger that Bechtle could be unable to duly insure material risks. We consider this risk to be high due to its nature. The probability of occurrence is medium, and we consider the potential impact to be significant.