, November 10, 2011

Ordina maintains outlook for 2011

Financial results Q3 Ordina N.V.


  • Recurring revenue for Q3 2011 EUR 99.8 million, a 3.9% drop against Q3 2010 (EUR 103.9 million);
  • Recurring EBITDA for Q3 2011 EUR 1.9 million, a 17% drop against Q3 2010 (EUR 2.3 million);
  • Revenue growth from finance market segment of 8.1% compared to Q3 2010. Revenue from industry market segment and public market segment down by 5.5% and 11.1% respectively against Q3 2010;
  • Focus on industry market leads to new projects won at ProRail and Agri Retail;
  • Net debt at end of Q3 2011 at EUR 56.4 million (Q3 2010: EUR 68.2 million);
  • DSO at 51.0 days, a three-day improvement in comparison with Q2 2011 (Q2: 53.9 days).

Recent developments

  • 7 October: announcement of share issue programme consisting of a rights issue of 23.9 million shares offered to existing shareholders and a private placement of 13.2 million shares with Project Holland Fonds (PHF), both at an issue price of EUR 0.93. The rights issue is fully underwritten by PHF. The rights issue and the private placement will take place as soon as possible following approval by the Extraordinary Meeting of Shareholders (EMS), which is scheduled for 1 December. The preparations for the rights issue and the private placement are progressing as planned. ING is Sole Global Coordinator on the rights issue;
  • 10 November: announcement of new EUR 55 million senior facilities for the next five years with ABN AMRO, ING and NIBC (see today’s separate press release).

Outlook for 2011

We maintain our previously announced outlook for the full year 2011 regarding our operating profit (about EUR 16 million in recurring EBITDA) and net debt position (about EUR 50 million).

Stépan Breedveld, Ordina’s CEO

“The economic uncertainty has clearly increased over the summer, which is reflected in our financial performance for the third quarter of the year. We have made significant progress in recent months on our management agenda. Our intensified focus on the industry segment, for instance, has led to two successes with ProRail and AgriRetail. In Belgium and The Netherlands, we started with regional sales activities. The support staff headcount reduction programme is on track and the direct staff headcount mirrors market demand. In order to create a more simple and transparent organizational structure, two management layers have been reduced and a divisional structure has been introduced. Finally, , our strengthened capital structure secures a solid financial foundation, which will allow us to focus fully on our customers.”


(all figures are recurring-based)The economic situation has changedsignificantly over the summer months. Revenue was down by 3.9% overall against Q3 2010. Where the Belgian operations showed growth (8.6%), revenue in the Netherlands fell (-6.2%) compared to Q3 2010. Developments in Europe and the resulting uncertainties in the finance market segment affect ICT expenditure; revenue growth in this market fell by 8.1%. In the public sector, clients are still postponing their ICT investments (11.1% revenue drop against Q3 2010). Economic circumstances in the industry market worsened in the third quarter too; revenue was down 5.5% compared to the same period last year.

The share of revenue from multi-year contracts (31.5%) and from offshoring/nearshoring activities (7.4%) was stable in the last three quarters of the year.

Employee base

We hired 126 new people in the third quarter of the year with  competencies that reflects market demand. The total number of FTEs fell in Q3 2011 from 3,104 at the end of Q2 2011 to 3,071 at the end of Q3 2011, which is mainly attributable to the support staff headcount reduction programme. As a result, the ratio of professional to support staff has continued to improve over the third quarter of the year .

Financial position

Cash flows from operating activities were EUR 0.9 million negative in Q3 2011 resulting from mainly a lower operating income, support staff redundancy payments and costs associated with streamlining the number of professional staff positions. The net debt position was EUR 56.4 million at the end of Q3, a EUR 11.8 million drop on Q3 2010. Net debt amounted to EUR 52.8 million at the end of Q2 2011. With a ratio of net debt to adjusted EBITDA of 3.0 (capped at 3.25) and an interest coverage ratio of 5.2 (floored at 4.0) at the end of Q3 2011, Ordina has metthe covenants agreed with its lenders. Days Sales Outstanding (DSO) stood at 51.0 days, a three-day improvement on Q2 2011 (Q2: 53.9 days).


About Ordina

Ordina is a specialist knowledge provider. Our coherent offering of consulting, ICT and application outsourcing services helps lay the foundation for our clients’ future success. Ordina assists clients in achieving their strategic targets, and resolving social and ethical issues. Our knowledge of the local market and business processes, combined with our inventive approach to ICT solutions, enables clients to boost their competitive ability and their strength. Our professionals, who work in multidisciplinary teams, forge close ties with clients. We provide our services in the Benelux to organisations operating in finance, the public sector, healthcare and industry. Ordina N.V. was incorporated in 1973. Its shares are listed on Amsterdam's Euronext Stock Exchange, where they are included in the Midkap Index.

More information

Ordina N.V.
Pieter Schaffels, Director of Corporate Communications & Investor Relations
T: +31 (0)30 663 7402 / +31 (0)6 13 285 033

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This document contains pronouncements forecasting the future financial performance of Ordina N.V. and outlines specific plans, targets and ambitions based on current insights. Obviously, such forecasts are not without risk; they entail a relative degree of uncertainty since no guarantees exist on future circumstances. There are many factors that could potentially affect the actual performance and forecasts, causing them to deviate from the situation described in this document. Such factors include: general economic trends, the pace of the globalisation of the consulting, ICT and application outsourcing markets, the growing number of projects with bottom-line responsibility, scarcity on the labour market, and future acquisitions and disposals.

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