Annual Report 2007 Online

8/8/2019 Annual Report 2007 Online

1/80

Ce

ntricAnnualReport20

07

Mmr


2/80


3/80

Aa Rr Mmr 2007


4/80

F ar Crc

In 1992 the oundations o the present-day Centriccompany were laid. It was a historic moment that wedid not want to let pass unmarked. Diving into thearchives uncovered a considerable collection o objects andmemories. Promotional gis, gadgets, sponsorshipmaterials and prizes, each with their own Centric story.Troughout the annual report you can nd out aboutsome o the remarkable items in the collection accumu-lated over Centrics een years o operation.

4

4


5/80

5

5

Aa Rr Mmr 2007


6/80


7/80

11

MAnAge-Ment Re-poRt

32

FinAnCiAlseRviCes

39

AnnuAl AC-

Counts

36engineeR-ing AndConsul-tAnCy seR-viCes

22

iCtseRviCes

74

AddResses7

7


8/80

8

8


9/80

9

9

guts. T rc it

Shortly aer the Sanderink Groep was renamed Centrica red Citron 2CV was used as the gurehead or the rstCentric-wide recruitment campaign. Te 2CV stood ordown-to-earthness and guts, characteristics that typiyCentric employees. During the GUS campaign Centrichanded out countless rubber ducks and miniature 2CVsat trade shows and events. In early 2008 a new Centric-wide recruitment campaign was launched. Tis time itwas not a 2CV that played the central role, but a genuineCentric Cruiser. As sober as a traditional Dutch bike canbe, but with style and a dash o impertinence that also

characterises Centric.


10/80


11/80

11

MAnAge-Ment Re-poRt


12/80

In a year in which Centric B.V. celebrated its 15th

anniversary, this versatile service provider expanded itsoperations emphatically. Continuing avourable econom-

ic conditions and an assertive acquisitions policy have

resulted in Centric being able to present an admirable

set o annual results. urnover in 2007 grew by 25 per cent

to a record high o 789 million euros. Prots increased

rom 39 million euros to 52 million euros. IC services,

engineering and consultacy services, and nancialservices all perormed satisactorily. Te total number o

employees in the Centric organisation as a whole rose rom

7,500 on 31 December 2006 to 8,500 on 31 December 2007.

Tis increase was partly due to independent growth, and

partly through acquisitions.

The organisation has a market reputation as a partner that

delivers on its commitments and can anticipate customer

requirements. Customers value Centric or its straightorward

approach, commitment, high levels o service and quality o

IT solutions. Ater teen years o existence, this outstanding

reputation has helped Centric secure its place amongst the top

ten Dutch IT companies.

Active Acquisitions policy

Acquisitions have always played a signicant role in Centricsexpansion strategy. Emphasis is still placed upon this as the

tightening labour market continues to make independent

growth more dicult. In just three years Centric has taken

over dozens o other businesses. Some takeovers acilitated

entry into new markets, whilst others reinorced Centrics

position in existing markets. The organisation pursued an

active and healthy acquisitions policy in 2007 too, reinorc-ing Centric Holding, Oranjewoud and Finace alike. Much

eort was dedicated to integrating the new subsidiaries in the

Centric organisation.

The takeovers, coupled with independent growth, meant

that in 2007 or the second year running Centric was the

highest ranked Dutch business on Europes 500, the an-

nual listing o the 500 astest growing European companies.Centric came twelth, one place higher than last year.

Europes 500 is compiled annually by the Entrepreneurs or

Growth in conjunction with Microsot and KPMG.

internAtionAl growth

The ICT organisation also continued to strengthen its

international position in 2007 and has oces in

Maam Rr

12

12


13/80

Belgium, Germany, Norway and Switzerland. The ICT

organisation in Belgium was boosted by APEMs

business and Real Sotwares retail operations. In Germany,

at the beginning o 2007, Centric acquired altro consult

and SP Solution (now Centric IT Solutions Germany). The

new acquisitions bolstered Centrics position in Germany

and gave a signicantboost to operations in Switzerland.

The expertise acquired rom these organisations, in

terms o SAP solutions or HR and JD Edwards ERPsolutions, can be used in the Netherlands too. In

Norway, despite shortages in the labour market,

Centrics subsidiary Xtra Personell succeeded in achieving

great results. Centric is considering plans to expand its

Scandinavian activities rom Norway to Sweden.

Centric has also established a strong market position in

the Netherlands in a number o sectors, or example thepublic sector, real estate, supply chain and nancial

services. Whether or not the expertise and sotware

developed or these sectors can also nd international

application is an obvious question worth exploring.

Restrictions continue to be lited, particularly in sectors

within the supply chain, providing Centric with new

opportunities. 2007 included the rst steps towards

introducing suitable applications internationally.

increAsed collAborAtion

Centrics ICT services, divided between the divisions IT

Solutions, Sotware Engineering and Managed ICT

Services, beneted rom the economic growth in 2007.

Operations grew on all ronts, both at home and

internationally. IT Solutions and Sotware Engineering

have operated under a single director since mid-2007.The growing exchange o expertise between the two

divisions generates considerable benets in terms o

synergy and nancial savings. Collaboration with

Managed ICT Services is also continuing to take shape,

in particular in the area o integral projects or hardware

and sotware, and inrastructure management. Closer

cooperation between the three ICT divisions will havesignicant benets in the uture.

2007 also signied an important move with regards to

workplace management. New joint ventures resulted in the

number o managed workplaces increasing to around

100,000 with Centric becoming the second biggest provider

o this service in the Benelux region.

13

13


14/80

vision on softwAre development

Centric is constantly looking or ways to remain cost eec-

tive and innovative in the sotware development market. On

the one hand Centric cannot ignore the tightening labour

market and increasing competition rom low-wage countries.

On the other hand the organisation does not wish to make

any concessions on quality and has to remain alert and

responsive to its customers needs.

One possible solution is to oshore (parts o) thedevelopment process to other regions o the world. Centric

is currently exploring oshoring opportunities in, or

example, St. Petersburg. This primarily concerns long-cycle

development processes, as Centric eels that oshoring is

less suitable or short-cycle processes.

Growing competition rom low-wage countries neverthe-

less has to be considered careully. Centric aims todierentiate itsel in this respect by ocusing on aspects o

sotware development that should preerably happen close

to the source, or example sotware specication, project

management, implementation, testing and administration.

Our aim is to remain an attractive partner or our customers

by demonstrating excellent expertise in these areas.

Centric increasingly collaborates with reputable partners,

in particular when it comes to o-the-shel sotware. In

this respect Centric complemented its product portolio

in 2007 with Dynamics AX (previously known as Axapta),

Microsots primary ERP platorm. Under the name o Centric

Business Solutions, this operation is mainly targeted at ERP

and supply chain management solutions or medium-sized

organisations.

orAnjewoud

The restructuring o Oranjewoud in 2006 proved successul,

with the organisation becoming more eective and dynamic,

and securing increased levels o employee trust. 2007 was

a year o continued growth or an already robust, versatile

organisation, including growth by acquisition. Takeovers

o des Corps, Nexes and InterStep enabled Oranjewoud to

expand its operations in the area o secondment o highereducated technical personnel even urther. This has already

led to outstanding nancial results in 2007. Realisation

activities were reinorced with the acquisition o Van der

Heide Beheer and Boralit (50 percent). The takeover o Edel

Grass (completed in January 2008) supported Oranjewouds

position in the sports sector and gave it better control o

production. Oranjewoud also aims to make more o an14

14


15/80

impression internationally and in that respect acquired

A+D Engels and Belconsulting (both based in Belgium) in

2007. There were also preparations or the takeover o the

American organisation Delta Environmental Consultants Inc.

(completed in January 2008).

finAce

It transpired that the companies added to Finace in 2006

needed time to integrate ully, resulting in 2007 being a year

o reorganisation and process streamlining.

Ater two years o collaboration between Centric and

Finace it was clear that the combination o ICT and nancial

services presented lucrative opportunities. Finace provides

support to the government and top 200 Dutch compa-

nies in the interace between nance/ICT and inormation

security. The act that such services are becoming moreclosely interwoven with Centrics ICT services gives rise to

huge potential.

lAbour mArket

The scarcity o human resources continued to be o concern

in 2007. The IT organisation, engineering and consultancy

services, and nancial services are all experiencing severe

diculty in lling vacancies. Centric aims to retain employ-

ees by giving them interesting and challenging projects and

supporting them intensively in career planning.

From 2008 Centric will have an increased presence in the

labour market. The ICT organisation and Oranjewoud have

both launched comprehensive labour market campaigns.

The ICT organisation campaign is targeted mainly at higher

vocational and university level students. The organisation

is marketing itsel as a stable, innovative employer with a

pleasant, inormal business culture, oering young

proessionals extensive opportunities and careers advice.

Oranjewouds campaign emphasises the numerous develop-

ment opportunities available, superb benets, and the

dynamic, challenging and inormal work environment.

15

15


16/80

expectAtions in 2008

It is not yet ully understood i developments in the

United States will have a signicant economic impact on the

Netherlands and the rest o Europe. Whilst economic growth

in 2008 is expected to be lower than in 2007, Centric con-

siders it unlikely that our country is heading or recession this

year. A moderate levelling out o economic growth would

not be unwelcome: indeed it may relieve the overstrained

labour market somewhat.

For 2008 Centric plans to continue to invest in existing

and new markets through independent growth and acqui-

sitions. The organisation will also increase its cross-border

presence. In Belgium the ICT organisation is gaining strength

and becoming a more signicant player in IT services. Recent

acquisitions in Belgium mean that there will be a lot o ocus

in 2008 on how the new divisions are positioned within the

Belgian Centric organisation. Centric also aims to establishitsel urther in 2008 as a reputable organisation in the

German-speaking region (Germany, Switzerland and

Austria). Altro consult and Centric IT Solutions Germany

(ormerly SP Solution) give Centric solid oundations

rom which to do this. The German and Swiss Centric IT

Solutions divisions already collaborate closely. Centric is

also set to expand its operations in Austria. Preparations

were made at the end o 2007 or reinorcing operations

in this region. In December this resulted in the takeover o

InOne, with oces in Germany, England, Romania and

Luxembourg.

In 2008 the Dutch ICT organisation will be ocusing on

enhancing the synergy between the three divisions.

IT Solutions, Sotware Engineering and Managed ICT

Services have more and more overlap and are able to pool

resources and exchange expertise in several areas, especially

development and secondment. Centric companies will also

be presented more requently to the outside world under a

unied image.

Forecasts or Oranjewoud and Finace or the year ahead

are good, despite the overstretched labour market putting

the brakes on growth in these divisions too. Oranjewouds

priorities in 2008 include broadening its secondment opera-

tions and international expansion. Finace will also ocus ongrowth with the aim o remaining a leading partner in the

areas o nance, accounting and inormation security.

A review o the rst teen years would surely conclude

that Centric has become a key market player with a leading

position in the sectors in which it operates. Our strength lies

in our unique culture, pragmatic approach and commitment16

16


17/80

to provide customers with the best solution possible. Pro-

viding we maintain these qualities high on our agenda we

can look orward to a bright and protable uture.

Financial instruments

The Centric Groups oremost nancial instruments are bank

loans, overdrat acilities, nancial leasing agreements, cash

and cash equivalents. The most important objective is raising

nance or Centrics business activities. Additional nancial

xed assets and liabilities also exist such as trade debtors and

creditors that arise out directly o these business activities.

There are no derivatives or nancial instruments employed

or trading purposes.

risks

Interest risk is the oremost risk arising rom these nan-

cial instruments. Interest risk is thereore restricted and not

covered. It is plausible that risks arising rom currency

fuctuation in the uture will be managed using options and

orward exchange transactions, although this has not been

the case to date. This depends on the companys interna-

tional ambitions.

Given that there are scarcely any transactions in oreign

currencies other than that reported, exchange rate risk is

minimal. To reduce credit risk with each counterparty, or in

each market, Centric has implemented a number o policies

and course o actions. These procedures and the spread

across multiple customers reduce Centrics exposure to credit

concentration and market risks. Projects are also invoiced in

relation to their progress.

Available liquidity is kept with AAA credit-rated banking

institutions.

Centric monitors its liquidity risks or und shortages using a

liquidity-planning tool. This tool takes both investment and

operational cash fow maturity into account.

The Centric Group seeks a balance between continuity in

nancing and fexibility by using credit acilities, loans and

shareholders equity.

Gouda, 28 April 2008

Ir. G.P. Sanderink

General Director

17

17


18/80

sr r

Doetinchem-based ootball club De Graaschapsported both Centric and Oranjewoud names onthe shirts throughout the 2007 season. Centric andDe Graaschap were already old acquaintances

prior to 2007. From 1999 to 2004 Centric was alsoemblazoned on the clubs shirts. It is the intrinsicnature o both these parties that led to this long-standingalliance. Te Superboeren (or Super peasants) and theirsupporters are known or their dedication, their straight-orward attitude and their never diminishing aith in agood outcome. Characteristics with which Centric eelsperectly at home.

18

18


19/80

19

19


20/80

20

20

Ac

Centric started out originally as an IC companythat oered total solutions or various sectors. In 2005however, Centric added new services to its existingactivities. Te company has expanded adding two newdivisions that were incorporated into the Centric organi-sation under the names o Finace and Oranjewoud.

Finace ocuses on providing administrative and nan-cial services. Te main emphasis lies on nance, the

combination o nance/IC and inormation security. Inaddition Finace oers secondment and back-oceactivities to the insurance and pension sectors.Oranjewoud provides engineering and consultancyservices. Te main emphasis lies on urban development,mobility, construction, real estte, nature and the landscape,water, environment, saety, and sport and recreation.


21/80

21

21

iCtseRviCes

FinAnCiAlseRviCes

engineeR-ing AndConsul-tAnCy seR-

viCes

22

32

36


22/80

Te IC organisation o Centric (Centric Holding B.V.)

delivered outstanding results in 2007. Market investment

readiness was high due to the fourishing economy. All three

divisions (I Solutions, Soware Engineering and Managed

IC Services) capitalised on this.

Despite the ICT organisation managing to deliver great

results, the tight labour market proved a major actor

throughout the organisation in 2007. It orced Centric to nd

creative ways o recruiting and retaining employees. 2007

saw the start o intensive collaboration with a number o

colleges and universities, including the setting up o joint

research projects, organisation o workshops and establish-

ment o trainee positions. Initial results o the collaboration

are very promising. A widespread recruitment campaign was

organised in the second hal o 2007, and launched at the

start o 2008. Simple recruitment incentives, or example the

third party introduction bonus, seem to be working well.

Employee retention is just as important as recruitment o

new personnel, and to this end Centric is dedicating much

eort to training programmes and careers advice.

internAtionAl collAborAtion

Centric is increasingly considering the possibilities o o-

shoring. Oshoring may be a good option or long-cycle

development processes. Centric does not avour oshoring

or client-specic sotware development and short-cycle

development processes, or example those in local

government. In such cases it is preerable to stay close to the

market.

Exploration o oshoring possibilities has resulted rom

the need or more fexibility in development resources.

Contacts were established and/or pilot programmes launched

in Russia and Romania in 2007. Centric is also currently

engaged in selection talks with companies in India. The

organisation is keen to nd companies that t in culturally

with Centric. This means that they must have a pragmatic

approach and be able to demonstrate expertise in .Net/Java/

Oracle and Progress.

As well as third party joint ventures, Centric is also explor-

ing the possibility o establishing its own oshore acility in

Romania.

Both the Sotware Engineering and IT Solutions divisions

intend to use such activities or sourcing project sta and/

or outsourcing development projects. It is becoming more

iCt src

22

22


23/80

commonplace or development projects in sectors such

as nancial services and central government to be out-

sourced, necessitating increased development resources to

be available. Oshoring activities have to be on target by the

end o 2008.

it solutions

The IT Solutions division is proud to present its review

o an outstanding 2007. Turnover and prot increased

sharply across the board. IT Solutions invested heavily in

innovative products in 2007. There was also growth through

strategic acquisition, underpinning IT Solutions presence

in the Netherlands, Belgium and Germany. All these develop-

ments generated new dynamics.

IT Solutions develops and implements standard solutions

or sector-specic business-critical processes, supplying the

requisite hardware too. IT Solutions is the largest Centric

division and has established a strong oothold, in particular in

the public sector, real estate, healthcare and supply chain.

internAtionAl growth

IT Solutions made some major international steps in 2007.

With the acquisition o altro consults SAP-HR operations

and Centric IT Solutions Germany (ormerly SP Solution)

in January, it ormed a solid base in the German-speaking

region or uture expansion. The strong upward trend in

Belgium continued, due among other things to the acquisi-

tion o Real Sotwares retail operations (now called Centric

Retail Solutions Belgium). IT Solutions is enthusiastic about the

growing collaboration and exchange o expertise between

its Dutch and Belgian oces.

expAnsion of operAtions

IT Solutions perormed particularly well in 2007 in the

our main verticals in which it operates: public sector, real

estate, healthcare and supply chain. IT Solutions has also

established itsel as one o the largest sector-specic

suppliers o sotware to local goverments. Last year the

division again launched several ne applications in the

market, most notably in the eld o electronic services. The

governments decision to develop electronic child records

decentralized presented Centric Healthcare Solutions with a

lot o new orders. Centric Healthcare Solutions also secured23

23


24/80

a rm base in hospitals.

IT Solutions assumed responsibility or part o LogicaCMGs

payroll services in 2007, doubling its share in this commer-

cially interesting market o salary and personnel inormation

administration.

divisionAl innovAtions

In 2007 the majority o the divisions innovations were

launched in the supply chain vertical. IT Solutions succeeded

in integrating all (partial) supply chain solutions within three

overall concepts: LogiWorld, StoreWorld and TradeWorld.

These three architectures are also able to communicate

fawlessly with each other. Initial market response has been

enthusiastic.

A special component o LogiWorld is Roady Fleet Management

Solutions, a complete mobile application or the transport

sector. Roady is the culmination o the joint eorts o three

dierent Centric subsidiaries: Centric TSolve, Centric Sotware

Engineering and Centric Logistic Solutions. It is a ne example

o the cross-divisional collaboration that Centric is striving or.

Another major development in IT Solutions was the launch o

Centric Narrowcasting Solutions. Narrowcasting involves inter-

active communications using digital screens and inormation

kiosks. Centric Narrowcasting Solutions is ocused on the sale

and operation o narrowcasting networks and the provision o

sector-specic content.

Furthermore the Systems & Services cluster and Rijnmond-

South Medical Centre joined orces to develop a smart patient

card. This replaces the traditional punch card and provides the

basis or optimising patient fow through the hospital.

inspirAtionAl orders And pArtnerships

IT Solutions added several inspirational projects to its

portolio in 2007. In the government market many clients

switched to products in the Centric Melodies product line,

launched in 2006. The Real Estate Solutions cluster achieved

growth in the number o construction industry clients.

There is a growing trend amongst such clients to purchase

complete product suites, i.e. payroll applications and docu-

ment management systems in addition to the ERP system

itsel. The number o housing corporation clients remained

stable, with many corporations renewing contracts or

switching to the new product Wocas4all. In the supply

chain sector, new clients in both Belgium and the Nether-

lands purchased the Locus warehouse management system.

IT Solutions was the rst Microsot Dynamics AX partner to24

24


25/80

implement version 2.1 o Microsots Retail Chain Manager

solution in an electronic goods chain.

In September a partnership was ormed with the Swedish

rm IFS, global supplier o component-based business sot-

ware. In November Centric and IFS launched the joint retail

solution end2end retail, a combination o IFS latest ERP

solution and Centrics point-o-sale and warehouse manage-

ment solutions.

Products taken over rom LogicaCMG gave subsidiary XCent

the incentive to set up the XCent service centre or in-house

payroll administration. Several new outsourcing clients have

been acquired and the outlook is good.

priorities in 2008

2008 also promises to be a dynamic year or IT Solutions.

Many o the supply chain applications developed during

2007 will be rolled out on a large scale. Clients in the govern-

ment sector will also be oered innovative applications

in response to changing government policy. IT Solutions

aims to play a signicant role in the introduction o base

administration systems, mid-oces and the development o

open standards.

IT Solutions will continue to pursue its international strategy,

particularly in the German-speaking region and Scandinavia,

with new acquisitions expected in both regions. Subsidiaries

currently engaged in secondment services in Belgium will

collaborate more closely in 2008 and present themselves to

the market under a unied image.

soFtware engineering

The Sotware Engineering division really did eel the eects

o the tightening labour market in 2007. While turnover

and prot increased, growth would have been signicantly

higher had there been a greater intake o personnel. In 2007

Sotware Engineering strove towards continuing proes-

sionalisation and healthy growth.

Sotware Engineering develops, manages and tests

customer-specic bespoke sotware. Development activi-

ties take place on both a secondment and a project basis.

Sotware Engineerings primary ocus is on the nancial

services, travel and central government sectors. Walvis

Sotware, Centric e-Technology and Fintrans, all three o

which are involved in bespoke projects and component

development, merged in 2007 to orm Centric Sotware

Engineering B.V..25

25


26/80

it stAff shortAge

One o Sotware Engineerings principle activities is

the secondment o sotware developers. In order to

satisy the growing demand or IT personnel, Sotware

Engineering used lone sel-employed people in 2007 to

a greater degree. In the main, lone sel-employed people

are highly motivated, expert proessionals. The act that

they are not in permanent employment gives Sotware

Engineering the lexibility it needs.

The shortage o IT personnel has another consequence

insoar as customers that have a master agreement with

Sotware Engineering are making greater use o Key

Perormance Indicators (KPIs) as a means o securing the

supply o adequate personnel. This places an additional

quality requirement on Sotware Engineering.

excellent projects

Sotware Engineering also applied itsel creatively in 2007

to technically advanced and high value products and tech-

nologies. For example, the Electronic Work Permit (EWP)

was developed or a large petrochemical organisation.

This application is or the issue o work permits or

maintenance and contract partners at production sites

worldwide. Centric plans to sell the EWP application to

other organisations. In the nancial services and central

government sectors, Sotware Engineering also secured

new master agreements, bespoke orders and orders in the

eld o applications management, maintenance and hosting.

Qualityhouse released the book V2M2 a Verication and

Validation Maturity Model, improving test practices &

processes. V2M2 is the model or improving proessional

testing o sotware. Qualityhouse developed V2M2 in

conjunction with Eindhoven Technical University and

several large industrial partners, or example Philips, Thales

and Lucent Technologies.

priorities in 2008

Sotware Engineering will ocus on the continuing proes-

sionalisation o its organisation and operations. 2008 will see

investment in sta, the organisation and its products. There

is a growing trend amongst Sotware Engineerings larger

customers to opt or co-sourcing or outsourcing o entire

development processes. By consolidating its position through

secondments, Sotware Engineering will be able to qualiy

more readily or such large projects in 2008.

In the nancial services sector, the emphasis is upon an26

26


27/80

integrated project approach. Centric will be able to meet this

demand by extending commercial collaboration internally.

To this end, expertise in the areas o sotware testing and

development, consultancy and project management will be

combined with in-house concepts and methodologies to

create the Centric Management Approach and Centric

Portolio Management.

Collaboration between IT Solutions and Sotware Engineer-

ing will be taken urther in 2008, even across borders.

In Belgium a centre o expertise will be established or

Oracle solutions or both the Dutch and Belgian markets. The

Belgium-based Oracle bespoke work team will be expanded

or this purpose. The aim is also to collaborate more with

Centric subsidiary Finace. Such collaboration will be aimed

primarily at business consultancy. Both parties will exchange

consultancy requests and meet the demand or co-sourcing

and outsourcing jointly. Finaces existing nancial expertise

may also be used in the development o sotware or the

nancial markets.

managed ict services

Managed ICT Services made a major leap in 2007.

Operations have expanded signicantly in both a qualitative

and quantitative sense. Thanks to this substantial growth,

Managed ICT Services is now one o the leading Dutch

service providers or oce automation and inrastructure

management. The organisation also got top marks last year

or customer satisaction.

Managed ICT Services delivers a range o services or

ensuring the continuous availability and support o (oce)

automation. Such services include setting up and managing

entire ICT inrastructures, supplying ICT proessionals and

training users and ICT specialists.

An advantage is that operations are implemented

regionally under central control. Central control results

in proven concepts and techniques being used to the ull,

thus securing quality o service. Regional ocus means that

customers are able to deal with a responsive supplier and

short lines o communication. Employees also benet rom the

regional nature because o reduced commuting times.

27

27


28/80

breAkthrough

2007 will go down in the history books as the year that

Managed ICT Services made a breakthrough in workplace

management. New joint ventures meant that the number

o workplaces managed on the basis o result commitments

rose to more than 100,000. This act establishes Managed

ICT Services as a serious provider o such services in the

Benelux region. Several contracts covering in excess o 10,000

workplaces prove that the organisation is able to handle even

major outsourcing orders.

entire infrAstructures

2007 also signied a breakthrough or Managed ICT

Services in qualitative terms. Centric redesigned the entire ICT

inrastructure (including inrastructure management) or all

businesses in the TBI construction and engineering group.

The resulting innovative, low-maintenance inrastructure is

based on the latest Microsot technology and gives users

maximum fexibility. This project rearms Managed ICT

Services position as the leader in the construction and

management o complex inrastructures.

internAl priorities

In 2007 Managed ICT Services devoted tremendous

eort to the continuing proessionalisation o its internal

organisation. There is increased central coordination o

supporting sta activities or nance, marketing, human

resource management and internal automation. These

shared services are utilised by various divisional business

units. Such changes appear to have both reduced costs and

increased quality. Improved reporting has acilitated tighter

control o both project and secondment operations.

The takeover o IT service provider APEM reinorced

the market position in Belgium, while operations in the

eld o sotware asset management were given a more

proessional touch by the takeover o Lindeberg IT Solutions.

The latter organisation hanles sotware registration,

packaging, distribution and streaming.

customer sAtisfAction

Centric is a people-based organisation working in partner-

ship with other people. It is thereore essential that customers

are satised with our service. We are proud o the act that

Centric excelled once again as one o the best suppliers o28

28


29/80

oce automation services in the external and independent

market survey Outsourcing Perormance 2007, carried out

by Giarte and Morgan Chambers. Most notably, Managed

ICT Services scored top marks or customer satisaction. A

major indicator o customer satisaction is the act that the

rate o contract renewals has remained high or the past

several years. Our crystal clear calculation methodology is

one o the things that customers value greatly. It gives them

a ull breakdown and understanding o costs and terms

and conditions beore and during the term o the contract.

Customers also greatly value the solution-oriented approach,

something that is characteristic o Managed ICT Services.

outlook for 2008

The outlook or 2008 is positive. Unrest and shits amongst

the competition tend to work in avour o a sound organisa-

tion such as Managed ICT Services. What we see is that our

organisation is becoming involved in major initiatives more

requently, providing new opportunities or securing long-

term contracts. The path ahead is clear or uture growth,

both in Belgium and the Netherlands, with the overall goal o

establishing ourselves as a strong Benelux organisation.

As the labour market again requires much attention, 2008

will witness additional ocus in recruiting new and retaining

existing employees. The core objectives or 2008 remain:

to achieve growth across the board in oce automation,

to remain the best perorming organisation and to maintain

or improve existing levels o customer satisaction.

29

29


30/80

30

30

dc makr

Te Finace Decision Maker was produced or the

Finance ransormation conerence, which Finacehelped organise in late 2007. Tis gadget was handedout to a large number o decision makers rom the eldo Finance visiting the conerence. Tis item struck atthe core o Finaces services, What do you base yourdecisions on? Good results can only be achieved i youare in control o your companys operating processes.Finace supports its customers by helping them to be incontrol.


31/80

31

31

Aa Rr Mmr 2007


32/80

wo important goals or Finace in 2007 were the contin-

uing proessionalisation o its internal organisation and

the broadening and deepening o operations. Following a

dynamic year, Finace reported at the start o 2008 that both

goals had been achieved.

Finace has been part o the Centric organisation since 2005.

Its range o services include secondment, consultancy and

business process outsourcing in the areas o nance, HR,

insurance and inormation security. In the event o

insucient in-house ICT knowledge, Finace can draw on

Centrics own experience and expertise.

eight lAbels

In 2007 much eort was put into strengthening the internal

organisation and making it more fexible and more market

oriented. The various operations were incorporated under

eight labels: Finace Financial Services (support or nancial

business processes), Adntage (employment services or

nancial personnel), Capital H (HR support and payroll

administration), Risk Executives (employment services or

insurance and pension proessionals), Consultancy (assis-

tance with business operations issues), Finace Service

Centre (shared services or nance, HR and ICT), Lxy (business

process outsourcing) and Comris (inormation security).

This extensive range o services enables Finace, together

with Centric, to provide ull support to its clients internal

operations.

finAce culture

Finace is a culture-driven organisation. Finace employees have

character and are pragmatic and committed. They know how

to identiy problem areas and initiate change. This combina-

tion o executive and consultancy capabilities is what sets

Finace apart rom the competition.

Despite the tight labour market, Finaces headcount

increased in 2007 by some 11 per cent to 781. The percent-

age o sta with a university education has also increased

year on year.

opportunities for growth

Finace is constantly on the lookout or market trends that

provide opportunities. An example o this is the rapidly

spreading trend amongst organisations to optimise and

outsource HR activities (in addition to ICT and nance).

Faca src

32

32


33/80

Capital H managed to benet rom this trend in 2007.

There is a continuing and considerable demand or sector

specialists: people who not only understand nance or HR,

but who are also amiliar with the clients own business.

Finace has anticipated this by establishing our sector groups:

Government/Non-prot, ICT/Telecom, Trade & Industry and

Financials. Each group has its own sector-specic expertise

enabling clients to be provided with a more personalised

service.

some projects

Finace carried out work or 143 clients in 2007. Projects were

undertaken or clients such as KPN, Unilever, the Ministry

o Transport & Public Works, MeesPierson, Fortis Corporate

Insurance, Amsterdam Local Authority and Rotterdam Local

Authority.

A good example o a project is the international audit carried

out by Finace or British Telecom. The audit was conducted

by several Finace business units who were also able to use

this project or training purposes. The global audit or BT is a

good example o a client-Finace partnership.

priorities in 2008

Finace anticipates urther growth in 2008. The main oppor-

tunity or growth exists in the Financials and Government/

Non-prot sectors. Increased synergy between the dierent

business units will result in a wider range o services being

on oer to clients. Employee satisaction remains a policy

priority, as will opportunities or continued career develop-

ment. Finace will strive continuously to increase added value,

or both its employees and its clients.

33

33


34/80

34

34


35/80

35

35

prc aa

Tree years ago Oranjewoud distributed shoppingtrolley tokens in response to huge a demand or suchitems. Tey are the perect giveaway and are snappedup in no time at trade shows and other events. In themeantime Oranjewoud has handed out over threethousand tokens. Funny detail: tokens sent in the rst batch were too small or Dutch shopping trolleys! A manuacturers error. Oranjewoud now sends outthese tokens to anatical collectors.


36/80

Oranjewoud N.V. was able to capitalise on the avourable

economic climate in 2007. Growth objectives were reached,

in some cases ar exceeded, through independent growth and

acquisition. Organisational changes generated consider-

able cost savings too. All these eorts combined to result in

a substantial increase in turnover and prot.

Oranjewoud is one o the largest engineering and consul-

tancy rms in the Netherlands, operating across a broad

spectrum o inrastructure, urban development, nature

and landscape, the environment, saety, real estate and

sport. Operations also include realisation and secondment

operations. Oranjewoud has oces in the Netherlands,

Belgium, France and the United States.

engineering And consultAncy services

tAkeovers

Oranjewoud added businesses to its existing portolio

in all three core segments (engineering and consultancy,

secondment and contracting). The engineering and con-

sultancy services took over A+D Engels, Belconsulting

and sister company Belcoplan, all based in Belgium. These

organisations provide engineering and consultancy services

in relation to inrastructure and the environment. The take-

overs allowed Soresma, Oranjewouds Belgian subsidiary,

to reinorce its geographical ootprint in Flanders. Oranje-

woud also acquired a 25 per cent stake in Groenland Beheer,

involved in rural development. Over time Oranjewoud will

gain complete ownership o Groenland Beheer.

internAtionAl Ambitions

Oranjewoud has been a member o the global environmen-

tal alliance Inogen or several years. Inogen aims to provide

international customers with high value services. As a

member o Inogen, Oranjewoud established good working

relationships with the American Delta consultancy rm. The

process o intensiying collaboration culminated with the

complete takeover o Delta Environment Consultants Inc.

in January 2008. Its extensive network was an important

argument or the takeover o Delta. This simplies Oranje-

wouds endeavour o establishing a market presence in a

range o countries throughout the world.

er a Cac src

36

36


37/80

reAlisAtion And secondment

Oranjewouds realisation activities were transerred to

Oranjewoud Realisatie Holding in 2007. To assist in the

growth o realisation activities, a 50 per cent stake was

acquired in 2007 in Boralit, a company ocusing on

underground inrastructure. On 1 January 2008 Oranjewoud

Realisatie and Ten Cate jointly took over Edel Grass, a

leading supplier o articial grass systems. On 1 January 2008

Van der Heide, a technical installation company specialising

in lightning and cathodic protection systems, also joined the

ranks. Oranjewoud Realisatie perormed solidly in 2007, with

prot exceeding expectations. The business groups Sport

and Techniek Noord perormed particularly well.

Oranjewouds secondment branch, in which TecQ and

Interstep were already active, was strengthened last

year with the acquisition o Nexes Services (electrical

engineering) and des Corps (secondments or the (petro)

chemical industry, etc.). Des Corps is being integrated within

existing secondment operations, whilst Nexes Services is due

or integration at a later date.

Secondment oces reported strong results.

engineering And consultAncy services

performAnce

All engineering and consultancy services divisions achieved

better results in 2007 compared to 2006, and also exceeded

2007 budget provisions. The prot increase in the Spatial

planning & Mobility division was largely attributable to the

Real Estate business group, which suspended operations in

the area o General Contracting and since 2007 has been

concentrating exclusively on engineering and consultancy.

The Soil Advice and Environmental Management busi-

ness groups showed particularly strong results in the

Environment & Saety division. A growing number o

international oil and chemical concerns are outsourcing

environmental consultancy services globally. Oranjewouds

takeover o Delta puts it in a better position to ollow these

global trends.

Operations in Belgium and France grew in Belgium as a

consequence o the takeover o A+D Engels, Belconsulting

and Belcoplan, whilst in France things were a little more

static. 2007 results were strong: at a combined level, opera-

tions in these countries were more protable than had been

expected.

37

37


38/80

employees

Employees are Oranjewouds most important asset; without

employees there is no success and no growth. Employee

trust and pride rose sharply last year in connection with the

spectacular results. The organisation is beneting rom the

resulting energy and drive.

The total Oranjewoud headcount increased rom 1,853 at

the close o 2006 to 2,219 at the end o 2007. Growth was

almost entirely due to takeovers, mainly in the secondment

branch.

outlook for 2008

Oranjewoud will continue to prot rom economic con-

ditions in 2008. The extent to which this actually happens

depends on the availability o qualied personnel. To this

end, Oranjewoud will be promoting itsel as a desirable

employer in a large scale labour market campaign in 2008.

Oranjewoud also has major international ambitions, with

opportunities in Scandinavia, the United Kingdom, France,

Germany and Spain. There are also extremely promising

project opportunities in China, Kuwait and Russia. Oranje-

wouds increasing international presence will reinorce its

image as a reputable employer. In addition to ullling its

ambitions or urther growth, Oranjewoud will also be

ocusing on the successul integration o those businesses

already taken over.

38

38


39/80

39

AnnuAl AC-

Counts


40/80

44Key FiguRes

40

40

45

46

47

48

54

ConsolidAted bAlAnCe sheet

ConsolidAted pRoFit And loss ACCount

ConsolidAted CAsh Flow stAteMent

ACCounting poliCies FoR the ConsolidA-

tion, vAluAtion And deteRMinAtion oFpRoFit (loss)

notes to the ConsolidAted bAlAnCe

sheet


41/80

41

41

62

65

66

66

69

70

notes to the ConsolidAted pRoFit And

loss ACCount

stAtutoRy bAlAnCe sheet

stAtutoRy pRoFit And loss ACCount

notes to the stAtutoRy bAlAnCe sheetAnd pRoFit And loss ACCount

suppleMentARy inFoRMAtion

AuditoRs RepoRt


42/80

42

42

Ja przC rz

In late 2006 Gerard Sanderink received the JanPieterszoon Coen Prize on behal o Centric. Tispublic prize is presented annually by Ernst & Young to thebest-perorming IC company in the Netherlands inthe areas o quality and service. Te result is based on

the ndings o the annual rends in IC survey heldamong directors, managers and proessionals. As a signo this honour and our pride you can nd plaques inevery oce location with a reerence to the prize.


43/80

43

43

K r


44/80

K r

44

44

(in thousands of euros) 2007 2006 2005 2004 2003

profit (loss)

Net turnover 788,933 631,047 353,295 274,284 234,946

Net prot (ater tax) 51,942 39,098 23,007 15,718 13,738

Cash fow* 71,176 51,056 28,845 20,642 18,367

cApitAl

Total equity 102,783 68,988 36,288 61,744 49,123

Total assets 319,396 251,366 185,568 129,875 112,103

Shareholders equity/

Total assets 29% 25% 19% 47% 43%

employees

Average number 7,436 6,552 5,350 2,972 2,572

* Cash ow: net proft including depreciation and amortization o fxed assets

Ca aac


45/80

Ca aac (After AppropriAtion of profit)

45

45

(in thousands of euros) 31-12-2007 31-12-2006

Assets

Fixed assets

Intangible xed assets 53,647 31,283

Tangible xed assets 23,314 20,146

Financial xed assets 6,822 5,654

83,783 57,083

Current assets

Inventories 24,357 18,129

Trade and other receivables 193,511 161,086

Stocks and shares 0 0

Cash and cash equivalents 17,745 15,068

235,613 194,283

319,396 251,366

liAbilities

Shareholders equity 94,191 63,937

Minority interest in group capital 8,592 5,051

Total equity 102,783 68,988

Provisions 15,118 19,883

Long-term liabilities 9,218 8,957

Current liabilities 192,277 153,538

319,396 251,366

Ca r a acc


46/80

Ca r a acc

46

46

(in thousands of euros) 2007 2006

Net turnover 788,933 631,047

Deerred production 0 0

Total operating returns 788,933 631,047

Cost o hardware and sotware 130,815 35,296

Subcontracted work and other external charges 216,218 249,053

Wages and salaries 305,998 240,445

Social security contributions 42,726 43,627

Depreciation and ammortization

o xed assets 19,234 11,958

Total operating expenses 714,991 580,379

Operating prot (loss) 73,942 50,668

Financial income 8,277 3,926

Financial expenses 8,522 4,341

Financial income and expenses -245 -415

Prot (loss) on ordinary

activities beore tax 73,697 50,253

Income tax 19,368 9,767

Share in prot (loss) o participating interests -33 0

Prot (loss) on ordinary

activities ater tax 54,296 40,486

Minority interest in group prot (loss) -2,354 -1,388

Prot (loss) ater tax 51,942 39,098

Ca ca f am


47/80

Ca ca f am

47

47

(by the indirect method,

in thousands of euros) 2007 2006

cAsh flow from operAting Activities

Prot (loss) ater tax 51,942 39,098

Minority interest 3,541 3,431

Adjustments or:

Depreciation 19,234 11,958

Movements in:

Inventories -6,228 -11,557

Trade and other receivables -32,425 -32,357

Provisions -4,765 -4,114


-4,679 -16,510

70,038 37,977

cAsh flow from investing Activities

Balance o additions to and disposals o:

Intangible xed assets -32,977 -32,795

Tangible xed assets -11,789 -8,853

Financial xed assets -22,856 -9,130

-67,622 -50,778

cAsh flow from finAncing Activities

Movements in:

Long-term liabilities 261 5,694

net cAsh flow

(movement in cAsh And cAsh equivAlents) 2,677 -7,107

Acc c r ca


48/80

pension schemes

Pension schemes conorm to Dutch Guidelines or Annual

Reporting (RJ 271) Employee Benets and qualiy as dened

contribution schemes.

As a result o various mergers in previous years there are

a ew employees with non-standard schemes in which

the pensionable salary is xed at the level o the end o

December 2002.

From that date no account has thereore been taken o

uture career developments, salary changes and annual

indexation. For these reasons there is a very limited risk or

the employer and there is no obligation or this evident

in the Annual Account.

As a result o acquisitions throughout 2007 there are still

limited instances o dened pension schemes.

Due to changes in Oranjewoud N.V. pension schemes these

have been designated as dened contribution schemes

eective 01 January 2007.

Pension schemes are based on a premium that is a xed

percentage o pensionable earnings. Employer premium

contributions are recognised in the prot and loss account.

Accounting policies for the consolidAtion

In the consolidated annual accounts o Centric B.V. all

companies in which Centric B.V. has a majority control

are consolidated. The results o companies taken over are

recognised in the consolidated prot and loss account rom

the time o acquisition.

Unless otherwise specied, all amounts are given in

thousands o euros.

The ollowing companies are ully recognised in the

consolidated annual accounts.

Centric Holding B.V., Gouda 100%

Oranjewoud N.V. , Gouda 89,45%

Finace B.V., Amstelveen 100%

A ull list o the consolidated group companies has been led

with the Rotterdam Chamber o Commerce.

Acc c r ca,aa a rma r

48

48


49/80

Accounting policies for the vAluAtion of Assets

And liAbilities

Unless stated otherwise, assets and liabilities are recognised

at nominal value.

Intangible fxed assets

Goodwill

Goodwill, paid when acquiring companies, is the amount

by which on the initial incorporation the cost price o

an entity exceeds the net market value o the identiable

assets. The goodwill concerned is deducted directly rom the

shareholders equity.

I, when acquiring an entity, separate identiable intangi-

ble assets are observed, these are deerred and depreciated

over the relevant depreciation period. A depreciation period

varying rom eight to twelve years applies to the value o

customer portolios, depending on the type and anticipated

churn-rate. A depreciation period o six months to one year

applies to an order portolios value.

Goodwill paid upon the takeover o activities is deerred and

depreciated by the straight-line method over a period o ten

years. As a result o legal restrictions in Norway goodwill

resulting rom takeover o activities is depreciated over a

period o ve years.

Intangible xed assets relating to the deerral o sotware

packages developed in-house are depreciated during the

period in which the sale o the packages concerned is

expected to occur.

Patents

Patents are carried at acquisition price net cumulative

depreciation and any impairment losses. Patents are

depreciated by the straight-line method over a period o

ve years.

49

49


50/80

Tangible fxed assets

Tangible xed assets are valued at purchase price less

depreciation using the straight-line method based on

the expected service lie and any cumulative exceptional

downward value adjustments.

In the year investments are made depreciation is propor-

tional to time. Depreciation percentages are as ollows:

Buildings/Land 4% / 0%

Furniture and xtures 20%

Computer hardware 33 1/3%

Computer sotware 33 1/3%

A tangible xed asset is no longer included on the balance

sheet i it has been disposed or i there are no economical

benets rom its use or disposal expected. Any prot or

loss resulting rom the deletion o the asset is recognised in

the prot and loss account o the year in which the asset is

removed rom the balance sheet. The residual value, the

useul lie and the evaluation methods are assessed and, i

necessary, adjusted at the end o the nancial year.

Financial fxed assets

Financial xed assets include those group companies

(subsidiaries) carried at net asset value as well as any

loans carried at nominal value net o a provision or non-

recoverable debts.

Participations where the company has no signicant infu-

ence over nancial or business policy are carried at

acquisition price or realisable value (i.e. the present value o

a company or the disposal value, whichever is higher). The

dividend is recognised as prot rom participation in the

prot and loss account.

Deerred tax assets are calculated at the nominal value

rate that will most likely be applicable at the time o the

settlement. Tax assets are recognised i it can be reasonably

expected that they can be set o against taxes payable in the

coming years.

Deerred tax assets and liabilities within the same scal

unit are balanced wherever realisation runs simultaneously.

Insoar as an asset bear relations to an estimated maturity

o more than one year said asset is recognised as a nancial

xed asset.50

50


51/80

Inventories

Trading stock is carried at historic trade price net o a

provision or obsolescence. Assets in progress are carried on

the basis o incurred direct costs and an attributed share o

the indirect costs, less any provisions deemed necessary.

The costs incurred on projects that are in the quotation stage

on the balance sheet date are deerred, assuming an average

historic chance o success.

Prot and loss on projects is taken into account on a pro

rata basis with respect to project progress (percentage

completion method).

Trade and other receivables

Trade and other receivables are recognised at nominal value

net o a provision or non-recoverable debts.

For reasons o prudence, trade and other receivables in

respect o ESF subsidies have been valued at nil.

Provisions

Provisions are recognised at nominal value with the

exception o the provision or pensions and the provision

or jubilee payments. In as ar as there is a dened pension

scheme a provision or pensions is included in the

balance sheet as the balance o the cash value o the assigned

pension entitlements or the elapsed pensionable

service minus the market value o the unds investments.

Pension provisions also include the cash value o past-service

commitments. The provision or jubilee payments is based on

actuarial uture payments, discounted, taking into account

risks o employment termination and death.

A provision or deerred tax liabilities is created at the

current tax rate. I losses can be set o against tax, this

will be taken into account when calculating the deerred

taxation. Deerred tax assets will only be taken into account

i it may be reasonably assumed that they can be set o.

51

51


52/80

Currency conversion

A transaction in oreign currencies is valued at the initial

processing at the exchange rate upon the transaction date.Assets and liabilities or oreign currencies are converted at

the exchange rate on the balance sheet date. Income and

expenditure or oreign currencies are converted at the

nancial years average exchange rate. Dierences in this

respect are incorporated directly into the exchange

dierences reserve.

Accounting policies for determining

profit (loss)

Net turnover

Net turnover is recognised in the period in which the basic

underlying service was rendered, or the delivery was made.

Costs

Costs are determined subject to the aorementioned

accounting policies or valuation and allocated to the

nancial year to which they relate. Prots are recognised in

the year in which the goods were delivered or the services

rendered. Losses are taken into account in the year in which

they are oreseeable. Prot and loss on projects is taken into

account on a pro rata basis with respect to work progress

(percentage completion method).

Depreciation

Depreciation occurs on a time apportionment basis

according to the estimated service lie. Depreciation on

purchases made in the nancial year occurs in proportion to

time.

Income rom group companies

Income rom group companies is recognised according to

valuation at net asset value.

Extraordinary income and expenditure

Extraordinary income and expenditure include any incomes

and expenses not stemming rom ordinary activities.

Income tax

Income tax is calculated on the basis o the recognised

result, taking into account any items eligible or tax

exemption and costs not, or not entirely, deductible. Income

tax is proportionately allocated to the prot (loss) on ordinary

activities and extraordinary results.52

52


53/80

Accounting policies for the cAsh flow stAtement

The cash fow statement is drawn up using the indirect

method. Amounts received and paid relating to interestand prots taxes are included in cash fow rom operational

activities.

Sums or acquiring new group companies, when paid with

cash and cash equivalents, are included in cash fow rom

investing activities. On acquisition, cash and cash equivalents

available in new group companies are incorporated into cashfow rom investing activities.

53

53

n ca aac


54/80

(in thousands o euros)

mergers And Acquisitions

On 1 January 2007 Oranjewoud took over the assets andliabilities o A+D Engels. Prots and losses have been

consolidated with Centric B.V. annual accounts eective as

o the takeover date.

On 16 January 2007 Centric took over part o Real Sotwares

activities in Belgium. Prots and losses have been consolidated

with Centric B.V. annual accounts eective as o the takeoverdate.

On 25 January 2007 Centric took over part o Cable1s activi-

ties. Prots and losses have been consolidated with Centric B.V.

annual accounts eective as o the takeover date.

On 31 January 2007 Centric took over shares in the German

companies SP Solution GmbH and altro consult Deutschland

GmbH. Prots and losses have been consolidated with Centric

B.V. annual accounts eective as o the takeover date.

On 5 March 2007 Finace took over all shares in Fiditem B.V..

Prots and losses have been consolidated with Centric B.V.


On 27 April 2007 Oranjewoud took over all shares in Nexes

Services B.V.. Prots and losses have been consolidated withCentric B.V. annual accounts eective as o the takeover date.

On 16 May 2007 Oranjewoud took over 25% o Groenland

Beheer B.V. shares. Prots and losses have been consolidated on

a pro rata basis with Centric B.V. annual accounts eective as o

the takeover date.

On 7 June 2007 Oranjewoud took over all shares in Dhons B.V..

Prots and losses have been consolidated with Centric B.V.


On 3 July 2007 Centric took a 30% stake in the company

Centric Narrowcasting Solutions B.V.. This stake has been

consolidated with Centric B.V. annual accounts eective as o

the takeover date.

On 18 July 2007 Centric took over part o the Belgium company

APEMs activities. Prots and losses have been consolidated

with Centric B.V. annual accounts eective as o the takeover

date.54

54


55/80

On 25 July 2007 Oranjewoud took over 50% o Boralit B.V.

shares. Prots and losses have been consolidated on a pro

rata basis with Centric B.V. annual accounts eective as o the

takeover date.

On 28 August 2007 a legal merger took place between

Centric Healthcare Solutions B.V. (acquiring company) and

the companies Prevalent Inormatiesystemen B.V., Dataswiss

Solutions o the Benelux B.V. and Prevalent Business

Solutions B.V.. Figures were merged as o 1 January 2007.

On 28 August 2007 a legal merger took place between Centric

Sotware Engineering B.V. (acquiring company) and the compa-

nies Walvis Sotware B.V. and Fintrans B.V.. Figures were merged

as o 1 January 2007.


Hannover Milieu- en Veiligheidstechniek B.V. (acquiring com-pany) and the companies Oranjewoud Inragroep B.V., Bosmas

Uitvoeringsmaatschappij B.V. and BVN Raadgevend Ingenieurs-

bureau B.V.. Figures were merged as o 1 January 2007.


Centric Managed ICT Services B.V. (acquiring company) and the

companies Netwatch Holding B.V., Centric Managed ICT

Services Utrecht B.V. and Centric Managed ICT Services Emmen

B.V.. Figures were merged as o 1 January 2007.

On 1 October 2007 Centric took over part o Logica CMG

Nederlands activities. Prots and losses have been consolidated

with Centric B.V. annual accounts eective as o the takeover

date.

On 31 October 2007 a legal merger took place between

Ingenieursbureau Oranjewoud II B.V. (acquiring company)and the companies Multihouse Ventures B.V., Multihouse

Applicaties B.V., EQ International B.V., KSI Licences B.V., KSI

International Nederland B.V., KSI Financiering B.V. and KSI

Projectbureau B.V.. Figures were merged as o 1 January 2007.

On 2 November 2007 Centric took over all shares in Lindeberg

IT Solutions B.V.. Prots and losses have been consolidated withCentric B.V. annual accounts eective as o the takeover date.

On 19 December 2007 Centric took over all shares in the

German company InOne Holding GmbH.

55

55


56/80

intAngible fixed Assets

Intangible xed assets relate to goodwill paid upon takeover o activities, deerral o sotware packages developed in-house,

as well as the identiable value o customer portolios, Oranjewoud N.V.s order portolio and patents, as identied by results

o the Purchase Price Allocation perormed.

Goodwill Sotware Other Total

Balance at 31-12-2006 33 1,530 29,720 31,283

Paid goodwill /investments 22,445 -1,136 11,668 32,977

Depreciation 2,262 201 8,150 10,613

Balance at 31-12-2007 20,216 193 33,238 53,647

Accumulated depreciation 6,176 204 11,259 17,639

tAngible fixed Assets

Buildings Machines & Other xed

& land equipment operating assets Total

Balance at 31-12-2006 6,316 9,052 4,778 20,146

Investments or takeover 2,986 7,166 2,927 13.079

Disposal o assets 116 770 404 1290

Depreciation 791 5,399 2,431 8,621

Balance at 31-12-2007 8,395 10,049 4,870 23,314

Accumulated depreciation 5,356 44,298 19,591 69,24556

56

finAnciAl fixed Assets


57/80

This item is compiled as ollows: 2007 2006

Deerred tax assets 981 1,329Loans receivable 4,558 4,186

Minority participating interests 1,283 139

6,822 5,654

Deerred tax assets

dierences between commercial

and scal annual accounts 97 633

Tax losses carried orward 884 696981 1,329

At the end o 2007 tax losses were carried orward to the value o 4.7 million euros (2006: 27.7 million euros).

Tax losses o 2.3 million euros were carried orward or a Belgian subsidiary company.

Loans receivable

Balance o loans at 31-12-2006 4,186Expansions 484

Repayments 112

Balance o loans at 31-12-2007 4,558

This concerns loans issued to directors and to a participation at an average interest o 6% or which no repayment schedule

and no security have been agreed.

Minority participating interests

Balance o minority participating interests at 31-12-2006 139

Investments/expansions 1,154

Disposal o assets 10

Balance o minority participating interests at 31-12-2007 1,28357

57

P ti i ti d t il t k t k


58/80

Participation details stake stake

31-12-2007 31-12-2006

I.V.C. v.o.. 50,0% 50,0%

Integraal Verkeerssystemen v.o.. 50,0% 50,0%

Combinatie Nelis Inra - Oranjewoud v.o.. 50,0% 50,0%

Exploitatie maatschappij De Hardenberg B.V. 45,0% 45,0%

EESV Oranjewoud-Spiekermann-APcon 40,0% 40,0%

SV Engineering B.V. 40,0% 40,0%

Stercon B.V. 40,0% 40,0%Ecosystem Saxonia GmbH 27,5% 27,5%

Groenland Beheer B.V. 25,0% -

Hengelder 2 B.V. 14,3% 14,3%

Wehlse Broek B.V. 12,2% 12,2%

Midex Groep B.V. 33,3% 33,3%

Centric Narrowcasting Solutions B.V. 30,0% 30,0%

InOne Europe AG 52,0% -

inventories 2007 2006

Trading stock 6,436 8,775

Work in progress 17,921 9,354

24,357 18,129

trAde And other receivAbles 2007 2006Trade debtors 152,854 127,068

Accrued assets and other debtors 40,657 34,018

193,511 161,086

Trade debtors in Norway are subject to a right o lien with DNB Nor Bank ASA to a value o NOK 22.2 million

(2.8 million euros).58

58

shAreholders equity

For a clarication o shareholders equity please reer to the Centric B V group balance sheet as o 31 December 2007


59/80

For a clarication o shareholders equity, please reer to the Centric B.V. group balance sheet as o 31 December 2007.

minority interest in group equityBalance at 31-12-2006 5,051

Movements:

Expansion through acquisitions 1,187

Share o third parties in group result 2,354

3,541Balance at 31-12-2007 8,592

provisions Deerred

Jubilee payments Pension tax assets Other Total

Balance at 31-12-2006 3,117 9,314 2,238 5,214 19,883

Allocation 563 252 6,481 2,030 9,326Withdrawal 73 0 1,547 3,586 5,206

Release 0 8,885 0 0 8,885

Balance at 31-12-2007 3,607 681 7,172 3,658 15,118

Provision or jubilee payments can be considered to be long-term. Release o pension schemes is a result o the conversion o

Oranjewoud N.V. pension schemes to dened contribution schemes.

Deerred tax liabilities

Balance at 31-12-2006 2,238

Reduction in deerred tax assets 6,481

Reduction in deerred tax debt 1,547

Balance at 31-12-2007 (debt) 7,17259

59

Reduction o deerred tax assets relates principally to deductions made rom Oranjewouds taxable prots or 2007 Reduction


60/80

Reduction o deerred tax assets relates principally to deductions made rom Oranjewoud s taxable prots or 2007. Reduction

o deerred tax debts relates principally to a reduction in valuation dierences or Oranjewouds work in progress.

Other provisions are mainly short-term provisions or ongoing reorganisations and provisions or project risks as well as

provisions or current procedures.

long-term liAbilities 2007 2006

Balance at 1 January 8,957 3,263

Loans (nancial year) 4,902 8,957Repayments 4,641 3,263

Balance at 31 December 9,218 8,957

The loans item relates to three loans: a bank loan rom Centric Norway A.S. (approximately 5.6 million) at an interest rate or

3 months NIBOR plus an interest surcharge o 1.1% or a duration o ve years. The security is all the shares in Xtra Personell

A.S. and or which Centric Holding B.V. has guaranteed an amount o 20 million Norwegian Krones. The remaining two loans

concern a mortgage loan to Oranje C.V. (approx. 2.2 million) at an interest rate o 5.35% until 2018 and a 0.7 million loanat an interest rate o 7.5% and a term until 1 May 2010. Surety has been issued by Dhons B.V. concerning the 0.7 millionloan. The remaining duration o the loans is longer than ve years at an amount o 1.4 million. That part o long-term debts

(1.1 million) expiring within a year have been incorporated into net current liabilities.

current liAbilities 2007 2006

Trade creditors 47,018 29,748Repayment obligations 1,132 210

Pension obligations 1,203 0

Taxes and social security premiums 37,117 32,594

Other liabilities and accruals 105,807 90,986

192,277 153,538

60

60

contingent liAbilities not stAted in the bAlAnce sheet

Contingent liabilities not stated in the balance sheet are uture liabilities in respect o the rent payable or oce premises and


61/80

Contingent liabilities not stated in the balance sheet are uture liabilities in respect o the rent payable or oce premises and

remaining lease instalments amounting to a total o 127.5 million euros. These total liabilities are payable as ollows:

2007 2006

Withinoneyear 36.6 35.7

Afteroneyearbutwithinveyears 67.3 73.5

Afterveyears 23.6 43.2

Total 127.5 152.4

Centric B.V. and its participations have issued bank guarantees totalling approximately 9.1 million euros (2006: 8.7 million

euros).

Centric Holding B.V. has guaranteed DNB NOR in Oslo an amount o NOK 20 million to meet the liabilities o Centric Norway

A.S. with regard to an agreed loan.

Exchange rate risks are covered by currency option contracts insoar as these present a risk.

Dutch group companies with the exception o Oranjewoud N.V. together orm a scal unit or corporation tax and are

thereore liable as a whole or the tax debt o the scal unit.

The companies bank accounts are included in the interest and balance compensation o Centric Holding B.V. and Oranjewoud

N.V. or which several liability has been agreed.

In 2003 Centric B.V. granted employees options o 2,880 shares at a nominal value o one euro. The exercise price is 1,177.05euro per option and the exercise period is seven years. This will be nanced in due time by issuing new shares. The exercise

price is based on a weighted average o the intrinsic value at any time and the capitalized value over the last two years.

61

61

n ca r a acc


62/80

net turnover 2007 2006

Licences 19,999 15,858

Maintenance 88,091 73,737Services 387,406 301,814

Trade 62,694 56,980

Engineering activities 228,529 181,674

Other 2,214 984

788,933 631,047

Turnover in the Netherlands 612,119 524,326Turnover in EU 119,626 61,892

Other 57,188 44,829

788,933 631,047

sociAl security contributions 2007 2006

Pension premiums 1,836 9,839

Other social security premiums 40,890 33,78842,726 43,627

2007 pension premiums have been written down to a release o 8.8 million euros in relation to the transition in 2007 to a

modied pension scheme at Oranjewoud N.V..

62

62


63/80

employees

The average number o employees expressed as ull-time equivalents (FTEs).

2007 2006

Managing directors 55 60

Sales & Marketing 580 521

General Management 366 500

Production 6,435 5,471

Total 7,436 6,552

depreciAtion 2007 2006

Depreciation o intangible xed assets 10,613 4,326

Depreciation o tangible xed assets 8,621 7,632

19,234 11,958

63

63


64/80

tAxes 2007 2006

Immediate company tax liability

Company tax liability or 2007 results 16,800 16,322

Deerred corporation tax liability

Valuation o compensatory losses 0 -4,824

Realisation o compensatory losses 5,356 209

Tax rate adjustment 0 -873

Temporary valuation dierences -2,788 -1,067

Corporation tax liability presented in prot and loss account 19,368 9,767

Reconciliation o nominal and eective tax rate

2007 % 2006 %

Prot (loss) beore tax 73,697 50,253

Nominal company tax liability 18,793 25.5% 14,875 29.6%Eect o valuing compensatory losses 0 (4,824) -9.6%

Eect o adjusting tax rate 0 (873) -1.7%

Eect o oreign subsidiaries 575 0.8% 589 1.1%

19,368 26.3% 9,767 19.4%

64

64

sar aac (After AppropriAtion of profit)


65/80

(in thousAnds of euros) 31-12-2007 31-12-2006

AssetsFixed assets

Financial xed assets 136,412 99,413

136,412 99,413

Current assets

Trade and other receivables 1,087 68

Cash and cash equivalents 16,568 16,85617,655 16,924

154,067 116,337

liAbilities

Shareholders equity

Issued capital 90 90

Share premium reserve 26,465 26,465Other reserves 67,636 37,382

94,191 63,937


154,067 116,337

65

65

sar r a acc


66/80

(in thousAnds of euros) 2007 2006

Prot (loss) o group companies ater tax 51,189 38,897

Other income and expense ater tax 753 201

51,942 39,098

n ar aac a ra acc

generAl

The accounting policies or the valuation and determination o prot (loss) or the group accounts are the same as the

principles specied or the consolidated annual accounts.

Consolidated group companies are recognised at net asset value. The prot (loss) on group companies is the same as the prot

(loss) or the appropriate companies in that nancial year.

The group prot and loss account has been compiled in compliance with Article 402 o the Dutch Civil Code Book 2.

66

66


67/80

finAnciAl fixed Assets

Participations

Balance at 31-12-2006 99,413

Prot (loss) on participations 51,189

Amortization o goodwill -14,014

Foreign exchange dierences -154

Other movements -2236,999

Balance at 31-12-2007 136,412

trAde And other receivAbles 2007 2006

Group companies 0 0

Other receivables 1,087 68

1,087 68

shAreholders equity

Issued Share Other Prot (loss) or Total

capital premium reserve reserves nancial year

Balance at 31-12-2006 90 26,465 37,382 0 63,937

Amortization o goodwill -21,512 -21,512Foreign exchange dierences -154 -154

Participation correction -22 -22

Prot (loss) 51,942 51,942

From prot distribution o nancial year 2007 51,942 -51,942 0

Balance at 31-12-2007 90 26,465 67,636 0 94,19167

67


68/80

The authorised share capital amounts to 90,000 divided into 900 ordinary shares o 100 each. 900 shares have been

placed and paid up.

The ull amount is distributable to the share premium reserve.

The amortization resulting rom oreign exchange dierences relates to the translation dierences or the Norwegian

company o 154.000.

current liAbilities 2007 2006

Liabilities to group companies(participation underwriting price) 59,028 52,316

Other liabilities 848 84

59,876 52,400

profit (loss) from group compAnies 2007 2006

Share in prot (loss) o group companies 51,189 38,897

Gouda, 28 April 2008

Ir. G.P. Sanderink

General Director68

68

smar rma


69/80

profit AppropriAtion

Statutory provisions in respect o proft appropriationArticle 22 o the Articles o Association states: It is the

prerogative o the Annual General Meeting o Shareholders

to appropriate the prot.

Proft or 2007

In anticipation o the Annual General Meeting o Share-

holders, the prot or 2007 has been added to the otherreserves.

Remuneration o the managing directors

The salary o the individual managers has not been reported

on the grounds o article 383 subsection 1 Dutch Civil Code

Book 2.

events After the bAlAnce sheet dAte

(subsequent events)

The ollowing companies were taken over ater the balance

sheet date:

OranjewoudRealisatieHoldingB.V.tookoverallsharesin

Van der Heide B.V. (Kollum, NL) as o 01 January 2008.

OranjewoudN.V.tookoverallsharesinDeltaConsultantsInc. (USA) as o 10 January 2008.

OranjewoudRealisatieHoldingB.V.tookoverallsharesin

Edel Grass B.V. (Genemuiden, NL) together with Ten Cate

N.V. as o 01 January 2008.

69

69

To: the directors and shareholders o Centric B.V.

Ar rr


70/80

report on the finAnciAl stAtements

We have audited the accompanying nancial statements

2007 o Centric B.V., Gouda, which comprise the consoli-

dated and company balance sheet as at December 31, 2007,

the consolidated and company prot and loss account or the

year then ended and the notes.

Managements responsibility

Management is responsible or the preparation and air

presentation o the nancial statements and or thepreparation o the management board report, both in

accordance with Part 9 o Book 2 o the Netherlands Civil

Code. This responsibility includes: designing, implementing

and maintaining internal control relevant to the preparation

and air presentation o the nancial statements that are

ree rom material misstatement, whether due to raud or

error; selecting and applying appropriate accountingpolicies; and making accounting estimates that are

reasonable in the circumstances.

Auditors responsibility

Our responsibility is to express an opinion on the nancial

statements based on our audit. We conducted our audit

in accordance with Dutch law. This law requires that we

comply with ethical requirements and plan and perorm the

audit to obtain reasonable assurance whether the nancial

statements are ree rom material misstatement.

An audit involves perorming procedures to obtain

audit evidence about the amounts and disclosures in the

nancial statements. The procedures selected depend on

the auditors judgment, including the assessment o the risks

o material misstatement o the nancial statements,whether due to raud or error. In making those risk

assessments, the auditor considers internal control relevant

to the entitys preparation and air presentation o the

nancial statements in order to design audit procedures

that are appropriate in the circumstances, but not or the

purpose o expressing an opinion on the eectiveness o

the entitys internal control. An audit also includes evaluatingthe appropriateness o accounting policies used and the

reasonableness o accounting estimates made by

management, as well as evaluating the overall presentation

o the nancial statements.

70

70


71/80

We believe that the audit evidence we have obtained is

sucient and appropriate to provide a basis or our audit

opinion.

Opinion

In our opinion, the nancial statements give a true and

air view o the nancial position o Centric B.V. as at

December 31, 2007, and o its result or the year then ended in

accordance with Part 9 o Book 2 o the Netherlands Civil

Code.

report on other legAl And regulAtory

requirements

Pursuant to the legal requirement under 2:393 sub 5

part e o the Netherlands Civil Code, we report, to the extent

o our competence, that the management board report is

consistent with the nancial statements as required by

2:391 sub 4 o the Netherlands Civil Code.

s-Hertogenbosch, April 28, 2008

or Ernst & Young Accountants

signed by A.J.M. van der Sanden

71

71


72/80

br m

In the days that the artist was very trendy and his artwas a hype Herman Brood painted a computer mouseor Centric. Whoever applied or a job at Centric in thelate 90s was given a Brood Mouse to take home withhim. Several thousands o these collectors items were produced and have since been traded or considerablesums o money on eBay and Marktplaats.nl.

72

72


73/80

73

73

Crc Mmr


74/80

74

74

During the GUTS recruitment campaign Centric handed out countless rubber ducks andminiature 2CVs at trade shows and events.

Bright umbrella or dull, rainy days.

In the 90s Centric used the CIOBtiekto inorm its local authority client base. It was the predecessor

to the current Magazine voor de Overheid[Magazine or Government].

Finace handed out large numbers o the decision makergadget to real decision makers rom the

eld o Finance visiting a conerence.

In late 2006 Centric was awarded the Jan Pieterszoon Coen Prize in the orm o a painting. This

public prize is presented annually by Ernst & Young to the best-perorming ICT compan

Annual Report 2007 Online

Documents

Transcript of Annual Report 2007 Online