, March 3, 2009

Annual results 2008 of Ordina N.V.: Two-sided year

Termination of BPO activities and one-off costs result in strong loss over 2008.

Revenue growth from profitable Consulting, ICT and Application Outsourcing activities


  • Revenue for 2008 at EUR 696.5 million. Compared to 2007 this marks an increase of approximately 5% (2007: EUR 665.4 million).
  • Revenue from Consulting, ICT and Application Outsourcing activities totals EUR 653.5 million (2007: EUR 628.6 million). Excluding revenue from Technical Automation activities (EUR 20.8 million in 2008) - sold in 2008 - this revenue provides the profitable foundation for the business in 2009 and forward.
  • Revenue share deriving from multi-year contracts excluding multi-year BPO activities up to 17% in 2008 from 13% in 2007.
  • Recurring EBITA margin on Consulting, ICT and Application Outsourcing in line with last-issued forecast at 7.4% (2007: 10.6%).
  • Recurring EBITA margin, including BPO, is 5.2% (2007: 9.3%), excluding non-recurring costs and provisions related to the announced reorganisation in December 2008, the impairment losses, the transaction loss on the announced sale of all shares in Ordina BPO B.V. and the realised profit on the sale of the Technical Automation activities in 2008.
  • Ordina reports a net loss for 2008 of EUR 81.1 million, including mentioned non-recurring items of EUR 113.8 million.
  • No dividend benefit for 2008 as result of the fact that Ordina reports a net loss for 2008.
  • Net debt position at EUR 85.1 million ultimo 2008. This is 1.6 times recurring EBITDA and in line with policy guidance.



  • Economic developments are highly volatile, making it difficult to predict the market.
  • Nevertheless, demand for large projects and multi-year Application Outsourcing contracts that are anchored in clear business cases with relatively fast return on investment is still robust over the first months of 2009.
  • Ordina is well-positioned with its Consulting, ICT and Application Outsourcing activities. This is also confirmed by the recent announcements of multi-year contracts with the Erasmus Medical Centre, Postkantoren B.V. (post offices), the Netherlands Chamber of Commerce and KPN.
  • The measures that were announced in December 2008 to counter the deteriorating market conditions will start to bear fruit, leading to a reduction in cost level with approximately EUR 15 million in 2009.
  • Ordina has appointed Chris Jansen (formerly of Logica) and Bart de Jong (formerly of USG People Nederland) as Managing Director and Director of Finance respectively of Ordina Netherlands.
  • Ordina is full confidence that it has taken the right measures to counter the economically challenging period thanks to the excellent positioning of its Consulting, ICT and Application Outsourcing activities, its strong presence in the public sector, the sale of its loss-making BPO activities, the programme for improvement of profitability, the previously announced reorganisation and the appointment of a new Board of Ordina Netherlands.



"2008 was a two-faced year for Ordina. On one side our expectations regarding Business Process Outsourcing did not come through. The higher than initially planned investments, the withdrawal of an important client resulting in insufficient scalability and a strong deteriorating market condition, have led to our decision to no longer continue these activities at Ordina. Last week we announced that the BPO activities will be sold coming April 1 to Centric. A large impairment of done investments and a negative transaction result on the discontinuation to Centric cause a strong net loss over 2008.

On the other side we again saw a strong growth in our key markets, both in the Netherlands as in Belgium. Especially the start of the year was outstanding by winning a few large, prestigious projects. Over the course of the second quarter, some pressure began to develop on our margins of a number of large new projects. As result the operating margin for the first half of the year remained below our earlier expressed expectations. Ordina announced a margin improvement programme and reorganisation in the second half of 2008. This way we want to achieve structural cost savings that will lead to the improvement of our profitability.

Due to the sell of all stocks of Ordina BPO B.V. by April 1, 2009, Ordina can now focus fully on a sound and profitable future for our Consulting, ICT and Application Outsourcing activities. Ordina is well-equipped to deal with today's challenging market conditions, as result of the successful execution of the programme for improvement of profitability and the reorganisation, and our proven strategic market position."