, August 24, 2010


Ordina aims for further recovery in second half of the year


  • Structural improvement of productivity in the first half of 2010.
  • Stabilisation of fees in the second quarter.
  • Successful execution of the cost reduction programme, as introduced in 2008: in comparison to the provided targets
    for cost reduction (EUR 25 million compared to 2008), we will realize a cost reduction of EUR 5 million over target.


  • Decrease of 20% in recurring revenue to a revenue of EUR 227.2 million (H1 2009: EUR 285.6 million).
    6% decrease in recurring revenue from Q1 to Q2, which was driven by the regular seasonal pattern.
    Recurring EBITA stood at EUR 1.8 million (H1 2009: EUR 17.2 million). Recurring EBITA margin stood at 0.8%(H1 2009: 6.0%).
  • Share of revenue from multi-year contracts increases to 29% (H1 2009: 23%).
  • Increase in share of revenue from off- and nearshoring to 6% (H1 2009: 5%).
  • Net debt stood at EUR 67.1 million (H1 2009: EUR 86.2 million) with ratio of total net debt to adjusted EBITDA standing at 2.6 (H1 2009: 1.8). This is within the 3.5 ceiling. Solvability stood at 47% as per 30 June 2010 (30 June 2009: 37%).
  • Recurring net earnings per share before amortisation due to acquisitions stood at EUR -0.03 for H1 2010 (H1 2009: EUR 0.27).


The market recovery developed further in the second quarter of 2010, after a cautious start of the year. Revenue per
workday was higher in the second quarter of 2010 than in the first quarter of the year. Fees have stabilised in the second
quarter of the year, productivity levels have improved and the number of requests for quotations has increased. This trend
continues to develop in the current quarter. As it remains difficult to predict how the market recovery will develop further
over the remaining part of the year, we do not make any definite pronouncements about expected revenues and EBITA
for the full year 2010. With the sale of our subsidiary the Integer Group, as announced today, we expect to continue
to further accentuate our strategic course. The sale will have a positive effect to the development of our earnings in the
second half of the year.


“Despite the current decrease in revenue, we look towards Ordina’s future with confidence. Our cash position remains undiminished strong and there are chances in the market for our type of services. In the previous six months, the Benelux market continued to be the toughest market in Europe, clearly showing a slower economic recovery than other European countries. The first few months of 2010 were ruled by caution, after which the market was picking up in the second quarter of the year. Therefore, we were able to meet our expectation to achieve higher revenues per business day in the second quarter of the year.


We posted EUR 227.2 million in total revenue for the first six months of 2010. This is representing a 20% decrease in comparison to revenue for the first half of 2009 (EUR 285.6 million from continuing operations). The decrease in revenue was due, in the first quarter of 2010 in particular, to a sense of caution among organisations as a result of uncertainties about the course of the economic crisis, in combination with lower fees in comparison to the first half of 2009.
Fees stabilised in the second quarter of 2010.


The financial sector is showing a growing willingness to invest. While demand for individual capacity was already on the rise in the first quarter of 2010, demand for multi-year contracts and outsourcing services increased from April/May onwards. The public sector is still experiencing uncertainty following the fall of the Dutch Coalition Government, the subsequent general elections and the continuing process of forming a new Coalition Government. The fact that there is a lear need for our services in the public sector is evident from the number of pilot projects that we launched in the public ector in the first half of 2010. We expect these pilot projects to lead to an increase in assignments from the public sector as soon as a new Coalition Government has been formed.

Recruitment activities

In the first half of 2010, we started to recruit new staff again. To prepare for market recovery, we will be pursuing our search for new employees even more actively in the second half of the year. Although our recruitment activities are meant in part to compensate for attrition, they are more importantly to be used for further improvement and fine-tuning of our profile. We are hiring experienced professionals with highly specific skills, boasting in-depth knowledge of particular markets and domains. We harness their knowledge to further expand our specialist profile and take the next step in raising the quality of our services, helping us to offer our clients the best possible support as soon as they start to recover from the economic crisis.”


The net debt position as per 30 June 2010 amounted to EUR 67.1 million (H1 2009: EUR 86.2 million). In comparison to year-end 2009 (EUR 37.7 million), the net debt position increased with at least EUR 29 million. This increase was due in particular to the BPO payment (EUR 9.2 million), the E-Chain earn-out payment (EUR 2.7 million), interest payments (EUR 3.8 million) and operating activities (EUR -12.2 million).
The ratio of net debt to adjusted EBITDA, as formulated in our financing facilities, stood at 2.6 as per 30 June 2010, which is well below the 3.5 ceiling agreed with lenders. The interest coverage ratio stood at 5.3 as at 30 June 2010, staying well above the minimum of 3.5 as agreed with lenders. As to our current insight, we will continue to stay within the covenants as agreed in our terms of understanding with lenders


Mr J.G. (Johan) van der Werf was appointed to the Supervisory Board of Ordina N.V. as a new member and as the proposed Chairman of the Supervisory Board in May 2010. Mr C.J. (Carlo) de Swart will pass on the Chairmanship of the Supervisory Board to Mr Van der Werf at present. Mr De Swart will step down from the Supervisory Board by rotation during Ordina’s upcoming Annual General Meeting of Shareholders. Given the maximum allowable terms of office, he will not be available for reappointment. Until he steps down, Mr De Swart will stay on as an ordinary member of the Supervisory Board of Ordina N.V..