Getronics FY 2006 results. Total revenue was €2,627 million in 2006 (2005: €2,525 million)
03/03/2007
Today's release of Getronics' unaudited full-year 2006 results follows its pre-release on 27 February 2007 that included its key figures, highlights, CEO comments and an outlook statement. This release contains the Company's Operating and Financial Review.

Amsterdam, 01 March 2007

Financial highlights

* Total revenue generated by the Company was €2,627 million in 2006 (2005: €2,525 million) excluding revenue from discontinued operations France and Italy;

* Getronics' total organic revenue growth on a comparable basis* is 0.8% in 2006;

* Service revenue increased by 7% tot €2,280 million. Organic service revenue growth on a comparable basis was 2.3% in 2006;

* Service revenue as a percentage of total revenue increased to 86.8% in 2006 compared to 84.0% in the previous year;

* EBITAE from continuing operations was €117 million (2005: €143 million), resulting in an EBITAE margin of 4.5% (2005: 5.7%), and included €38 million of employee benefit plan related gains, including €15 million in curtailment gains of which €6 million resulted from aligning long-term benefit plans in the Netherlands as part of the integration of PinkRoccade;

* The operating result was €23 million (2005: €99 million), including €65 million impairment of goodwill, €21 million acquisition integration expenses, and €16 million amortisation of acquired intangible assets;

* Net result from continuing operations amounted to €-54 million (2005: €60 million) including €63 million of net financial expenses and €14 million in income tax expense;

* Net result from total operations amounted to €-145 million, including €91 million loss from discontinued operations;

* Earnings per ordinary share from continuing operations was €-0.44 (2005: €0.54);

* Operating cash flow from continuing operations amounted to €51 million (2005: €-5 million); and

* Net borrowings amounted to €285 million (2005: €157 million).

* Service revenue on a comparable basis: comparable service revenue for 2005 and 2006 as if Getronics and PinkRoccade were combined as of 1 January 2005, instead of 14 March 2005.

Main achievements 2006

* With Future-Ready Workspace launched in the second half of 2006, Getronics is leading the way in enabling workforce productivity and plays well into clients' demand for controlled change as the move to Microsoft Vista, Office and Exchange is expected to result in a wave of technology refresh and application re-platforming and packaging;

* Major international contracts were signed with Barclays and ING in addition to many significant local wins;

* Getronics has expanded client business in all of its major service areas, focusing on Workspace Management, Application Integration & Management, and Consulting & Transformation Services;

* The Company is further optimising its delivery and sourcing activities for its workspace management services and exploring more best-shore opportunities in its other service areas such as Application Services;

* The Breakout Programme has been initiated throughout Getronics' traditional managed services operation and has already resulted in improvement in North America. The implementation of the Breakout Programme for Europe and Rest of World is ongoing;

* During the year, the Company completed its divestment programme that was announced early 2006, which included Italy, France, and most of its operations in Eastern Europe (Austria, Czech Republic, Slovakia and Poland);

* Getronics raised a significant amount of cash in 2006 by divesting HR Services and KZA in the Netherlands;

* As part of Getronics' focused strategy, the Company also continued its efforts to create stronger businesses outside its key countries by merging or selling significant parts of the Getronics activities to well established local players. The creation of a strategic partnership in France with APX Synstar was an example of this; and

* In December 2006, the Company launched a €95 million Senior Unsecured Convertible Bond due 2014, and launched a successful Tender Offer for the 2008 Bonds, significantly improving the maturity profile of the Company's balance sheet and reducing the Company's cost of capital.