, March 4, 2008

Annual results Ordina N.V.: revenue up by 27%, EBITA by 30%

Financial highlights for 2007

  • Revenue on our core portfolio for 2007 up 27% on 2006, rising to EUR 665.4 million. Organic revenue growth of 14%.
  • Share of revenue from multi-year contracts up to 18% in 2007 from 15% in 2006.
  • EBITA rising to EUR 62.1 million, a 30% increase on 2006. Compared with the recurring EBITA of 2006 up 44%.
  • Operating margin on Consulting, IT and Application Outsourcing up from 9.3% in 2006 to 10.6% in 2007.
  • Operating loss from BPO services EUR 4.6 million, including a provision of more than EUR 1 million.
  • Revenue up 83%.
  • Net profit for the year up 18%, rising to EUR 30.4 million.
  • Dividend proposal in line with dividend policy: EUR 0.20 per share in cash (2006: EUR 0.20 in cash).
  • Net earnings per share before amortisation of intangible assets due to acquisitions up 34%, rising to EUR 1.15 in 2007.
  • Net debt position EUR 61.4 million at year-end 2007, i.e. 0.8 times EBITDA.
  • 5.702 employees (FTEs) at year-end 2007, a 14% increase on year-end 2006.

Outlook for 2008

  • Ordina was off to a very good start in 2008, among other things by the (provisional) winning of two highly prestigious projects at Dutch Immigration and Naturalization Service and the Ministry of Agriculture.
  • In the first two months of 2008, the market was driven by a persistently sound investment climate.
  • Demand for our services is currently not affected by the credit crisis.
  • We plan to sell the Technical Automation (embedded and industrial IT) unit to allow us to further fine-tune our strategic profile.
  • Where BPO is concerned, the year 2008 will be characterised by the transformation of our existing clients to the new standardised platform. We estimate that these transformations will take longer than initially expected. Realistically, we still expect to incur losses on our BPO services in 2008; the turnaround to profitability is planned for 2009. Market expectations for BPO services remain undiminished well.
  • Assuming that the investment climate will continue to be positive, Ordina expects to post an increase in revenue for 2008 of at least 10%, while at the same time, slightly improving the operating margin and bolstering the share of revenue from multi-year contracts.
  • We are still looking to make targeted acquisitions in the Netherlands and Belgium to accelerate our growth ambitions.

Ronald Kasteel, Ordina’s CEO, talks about the annual results 2007

“We have delivered an excellent performance, with revenue rising by 27% and EBITA by no less than 44%, especially if we consider that underlying these growth figures we realized an increase in the share of revenue from multi-year contracts to 18%. We achieved above-average growth in our key markets: Finance and Public. All in all, we did not only achieve a solid financial performance, but we also clearly made progress at a strategic level last year. The market obviously appreciates our proposition as a provider of specialist services. Our clients increasingly choose Ordina as their preferred supplier. In many instances, this choice is based on the fact that we are able to combine our in-depth understanding of their business and high-level knowledge of state-of-the-art technology into workable solutions. 2008 is set to become another interesting year for us. At BPO, we are fully focused on the transformation of existing clients to the new platform and we plan to sell our Technical Automation unit. We intend to apply the proceeds from the sale of this division towards potential acquisitions in the Netherlands and Belgium. It should come as no surprise that we are looking with interest to the announced sale of specific Getronics divisions by KPN.”