Ordina maintains profitability (EBITDA) levels

9 mei 2012 Ordina N.V. results for the first quarter of 2012 Nieuwegein, 9 May 2012 Highlights: ·         Recurring revenue EUR 103.3 million, a drop of 7.9% compared with EUR 112.1 million reported for Q1 2011; ·         Recurring EBITDA of EUR 4.0 million, compared with EUR 4.1 million in Q1 2011. ·         Impact of cost cutting measures in 2011 now visible: EBITDA/turnover ratio at 3.9%, up from 3.6% in Q1 2011. ·         New orders from COA, EUROPOL and HALT, plus successful completion of a project at Ministry of Economic Affairs, Agriculture and Innovation. Ordina also won the European Software Award with an open source project for Amsterdam city council. Stépan Breedveld, CEO Ordina on the results "Despite the uncertain market conditions due to the economic situation in Europe, we managed to maintain a stable operational profitability in the first quarter of 2012. This was largely thanks to one extra working day and the impact of the cost-cutting measures we implemented in 2011. The market trend that started in the second half of 2011 continued in the first quarter of this year and has led to caution among both companies and institutions regarding IT spending and outsourcing. Despite this, we managed to win a number of notable contacts, including some from our existing clients COA, Europol and Halt. We are sticking firmly to our strategy and the course we have mapped out for ourselves. This gives us a clear agenda for 2012, with a strong focus on strengthening our portfolio and profile, while improving the effectiveness of our operations through measures such as adjusting capacity to meet market demand" Markets The revenue trend that started in the second half of 2011 continued in the first quarter of 2012. The euro crisis is making financial service providers cautious about starting new projects and they are focusing primarily on projects with a short earn-back period. In the government market, we are seeing further postponements of renewal and improvement projects. Revenue dropped by 7.9% compared with Q1 2011. Our focus on a number of segments in Industry has not yet been translated into growth in the industry market. The revenue in this market (EUR 28.8 million) fell by 13.0% in Q1 2012 compared with the EUR 33.1 million booked in Q1 2011. In our Public market revenue fell 7.2% to EUR 41.0 million in Q1 2012, from EUR 44.2 million in Q1 2011. The revenue in the financial market fell by 3.7% to EUR 33.5 million in Q1 2012, from EUR 34.8 million in Q1 2011. Turnover per market (in EUR millons)   | Q1 2011 | Q1 2012 | Difference | --------------------+---------+---------+------------+ Financial services | 34.8 | 33.5 | -3.7% | --------------------+---------+---------+------------+ Public | 44.2 | 41.0 | -7.2% | --------------------+---------+---------+------------+ Industry | 33.1 | 28.8 | -13.0% | --------------------+---------+---------+------------+ Total | 112.1 | 103.3 | -7.9% | --------------------+---------+---------+------------+ Despite the continuing unfavourable market conditions, Ordina still managed to win a number of orders and framework contracts in the first quarter of this year. These include a three-year ICT framework contract with the Dutch central council for asylum seekers (Centraal Orgaan opvang Asielzoekers), a framework contract with EUROPOL and a four-year contract for the maintenance of HALT's client monitoring system. Revenue from long-term contracts rose to 34%in Q1 2012 from 30% in Q1 2011. Divisions Total revenue of the Dutch operations fell by 9.1% to EUR 84.7 million in Q1 2012, from EUR 93.2 million in Q1 2011. The revenue at the Professional Services & Projects division fell by 7.9% to EUR 73.1 million in Q1 2012, compared with EUR 79.4 million in Q1 2011. This division delivers ICT services (outsourcing, projects, secondment), management and outsourcing. Revenue from the Consulting division fell by 18.6% to EUR 9.2 million in Q1 2012 from EUR 11.3 million in Q1 2011. The falling demand in the government market was the major driver of this drop. Revenue from the Business Solutions division fell by 6.8% to EUR 6.8 million in Q1 2012, compared with EUR 7.3 million Q1 2011. Business Solutions delivers solution in four areas: Business Intelligence, digital customer interaction, rule-based business systems in the government market, plus wealth accumulation and mortgages in the financial services market. Our revenue from the Belgian/Luxembourg division fell slightly in Q1 2012 to EUR 18.7 million, a drop of 3.6% from the EUR 19.4 million booked in Q1 2011. Turnover per division (in EUR millions)   | Q1 2011 | Q1 2012 | Difference | -----------------------------------+---------+---------+------------+ Professional Services & Projects |   |   |   | | 79.4 | 73.1 | -7.9% | -----------------------------------+---------+---------+------------+ Consulting | 11.3 | 9.2 | -18.6% | -----------------------------------+---------+---------+------------+ Business Solutions | 7.3 | 6.8 | -6.8% | -----------------------------------+---------+---------+------------+ Belgium/Luxembourg | 19.4 | 18.7 | -3.6% | -----------------------------------+---------+---------+------------+ Intra-company services | -5.3 | -4.5 |   | -----------------------------------+---------+---------+------------+ Total | 112.1 | 103.3 | -7.9% | -----------------------------------+---------+---------+------------+ Employees Ordina had 2,980 FTEs at the end of the first quarter. This was a reduction of 168 FTEs compared with the end of first quarter of 2011. The number of employees stood at 3,008 FTEs at the start of 2012. Financial results Lower market demand led to a 7.9% drop in recurring turnover. Recurring EBITDA as a percentage of turnover came in at 3.9% in Q1 2012, slightly higher than the 3.6% seen in Q1 2011. The loss of gross margin (due to lower turnover) was offset by the positive impact of the extra working day in the first quarter compared with the year earlier period and lower indirect costs. The lower costs were clearly due to the cost-cutting measures taken in 2011. Ordina's net debt position at the end of Q1 2012 amounted to EUR 23.0 million, compared with EUR 12.4 million at the end Q1 2011. This increase was largely due to the negative mutation in the working capital, in line with the seasonal pattern. The total net debt/EBITDA ratio came in at 1.4 (should be lower than 2.5), while the Interest Coverage Ratio was 4.3 (and should be higher 2.5). In Q1 2011, the net debt/EBITDA ratio was 2.7 and the Interest Coverage Ratio 6.1. The Days Sales Outstanding (DSO) amounted to 54 days, an improvement of three days compared with Q1 2011, when this was 57 days. Outlook 2012 The general economic outlook and how our markets will develop remain uncertain. This is being felt on the Dutch market, where we have been confronted with the fall of the Dutch cabinet, but also increasingly on the Belgian market. This makes it difficult to predict revenue and profit for the period ahead. We will therefore not be giving an outlook. # # # ABOUT ORDINA Ordina implements strategy in business processes and ICT systems. We develop and produce solutions for a sustainable digital world. We believe cooperation with our clients, partners and suppliers produces the best results. We have specialist divisions for consulting, solutions and ICT, providing services across the Benelux region. We also provide (reproducible) solutions and expertise for organisations in the financial services sector, the public sector, healthcare and a number of specific segments in the industry market. Ordina N.V. was founded in 1973 and its shares are listed on the NYSE Euronext Amsterdam as part of the Small Cap index. In 2011, Ordina booked turnover of more than EUR 426 million, with a staff of more than 3,000. For more information: Ordina N.V. Pieter Schaffels, Director Corporate Communications & Investor Relations Tel: +31(0)30 663 7402 Pieter.Schaffels@ordina.nl www.ordina.nl   9-5-2012 Press Release Ordina N.V. - Q1 results: http://hugin.info/130778/R/1610174/511693.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Ordina via Thomson Reuters ONE [HUG#1610174]