Ordina N.V. results first quarter 2015

Turnover declines, limited impact on margin

Nieuwegein, 30 April 2015

Highlights

• Recurring EBITDA down at EUR 4.1 million (Q1 2014: EUR 4.8 million);
• Recurring EBITDA margin drops to 4.7% (Q1 2014: 5.1%);
  Turnover declines by 4.9% to EUR 88.5 million (Q1 2014: EUR 93.6 million);
• Net debt position improved at EUR 7.0 million (Q1 2014: EUR 12.4 million), ratio net debt / adjusted EBITDA stands at 0.7 (maximum leverage ratio: less than or equal to 1.50);
• Ordina nominated for the Computable Awards 2015;
• Clockwork nominated for Dutch Interactive Awards.

Stépan Breedveld, CEO Ordina, about the results
"Turnover at our largest division, T&C, fell in the first quarter, while the other divisions managed to realise (normalised) growth in difficult market conditions. The effect on the margin was limited, as a result of our constant focus on costs and a more selective projects intake.
Our net debt position improved to EUR 7.0 million. 
 
Recent media reports and the debate related to public sector IT projects have led to a delay in decision-making on IT projects in the public and healthcare markets in the Netherlands. A number of large industrial clients are currently in the midst of cost cutting exercises, which is having an impact on the hiring in of IT staff.

Our main priority for the period ahead will be raise productivity. Our salesforce effectiveness programme should result in greater focus and specialisation in our client approach. We are also accelerating our innovation programme by creating increasing our focus in areas that represent value for our clients. Our initiatives on this front are gaining recognition. For instance, we have been nominated for the Computable Awards 2015 and Clockwork, Ordina's digital engagement bureau, has been nominated for the Dutch Interactive Awards."

Outlook
We decline to give a forecast for the coming period.

Turnover

Turnover in the Public Sector and Healthcare segments was down as a result of delays in decision-making following recent media reports and the debate related to government IT projects. Turnover in Financial Services remained relatively stable. The decline in the Industry sector was driven largely by cost cutting at a number of large clients in the energy and telecommunications sectors.