ICT AUTOMATISERING N.V.
Annual Report 2008
ICTAdvanced Thinking
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1. ProfileICT 4
2.ICTinfigures 8
3. Strategy&Objectives 10
4.InformationonICTshares 12
5.MembersoftheSupervisoryBoardandExecutiveBoard 16 ReportoftheSupervisoryBoard 18
6.CorporateGovernance 20
7.ReportoftheExecutiveBoard 26 Introduction 27 Financialdevelopments 27 Prospects 28 Directors’declaration 28 ICTEmbedded 29 ICTSolutions 32 ICTConsultancy 34 ICTGermany 35 OrganisationandPersonnel 36
8. Financialstatements2008 38 Consolidatedbalancesheeton31December2008 40 Consolidatedprofitandlossaccountfor2008 41 Consolidatedchangesoftheshareholders’equityon31December2008 42 Consolidatedcashflowstatementfor2008 43 Notestotheconsolidatedfinancialstatements 449. Companyfinancialstatements2008 80 Companybalancesheetper31December2008 82 Companyprofitandlossaccountover2008 83 NotestotheCompanybalancesheet 8310.Otherinformation 90 Proposedapproprationofprofit 91 Auditor’sreport 93 Five-yearfinancialsummary 94
Contents
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Chapter 1: Profile ICT
Company Profile ¹)
¹) In case there are interpretation differences between the original Dutch financial statements and the English translation, the Dutch financial statements are prevailed.
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ICT Automatisering N.V. is an ambitious, indepen-dentlyoperatingstock-listedICTcompanywithofficesin the Netherlands, Germany and Poland. Around1,000employeesintheorganisationworkonsociallyrelevant solutions and products, in which the mostrecent technologicaldevelopmentsplayan importantrole. As a result, we are currently one of the largestindependentDutchsoftwaredevelopers.
The ICT Group has four divisions: ICT Embedded(embedded software is softwarewhich formspartofand is built into third party products), ICT Solutions(technicalcomputerisation),ICTConsultancy(advisoryservicesinthefieldofrequirementsengineering,archi-tecture,qualityassurance,configurationmanagementand testing) and ICT Germany (embedded softwareandtechnicalcomputerisation).
The Embedded Division, since company founding in1978, has developed into a prominent player in thefield of embedded software. The Solutions Divisionmaintains its leading position through its specialistknowledgeof automatedprocesses. The ICTConsul-tancy Division too, which consists of ICT NoviQ andImprove Quality Services, with its own specialistknowledgeandexpertise,hasbuiltupasolidreputationincompany-selectedmarkets.ICTGermanyhasshownstronggrowththroughanumberofsuccessfulacqui-sitions and good autonomous growth. In 2008 theICT Group added !Zip, with offices in Neustadt andKarlsruhe.ICTGermanyfocusesontheautomotiveandmanufacturingsectors.SinceOctober2008allactivitiesinGermanyhavebeencarriedoutunderthenameICTSoftwareEngineeringGmbH.
Specialist and specific work
TheICTGroupisaspecialistorganisation,dedicatedtothe technical software development market. To mosteffectivelyservethemarket,thecompanyconcentratesonselectedsectors:
•Communications&MultiMedia•Defence•Healthcare•Logistics•Manufacturing(ICTProcos)•Traffic&Automotive
We now consider ourselves experts in these fields,havingbuiltupimpressiveexperienceandknow-how.Combining market-specific domain knowledge withknowledge of software development in the broadestsense,ICTinselectedmarketsmakesitspresencemuchfelt.Eachmarketisfamiliarwithitsownuniquerequi-rements. ICTworkswith fullydedicatedexperts.Thisenablesustoofferourclientsthebestpossiblesolutionsalreadyinthepreliminarystagesofaproject,insettingup development environments and architectures, inpreliminarystudiesandwithdrawingupspecificationsandduringrealisationandimplementation.Thesehigh-qualityservicescanbeprovidedbothonlocationandattheclient’s,wherebystate-of-the-artdevelopmentsarecarriedoutusingthelatesttechnologies.
Mission Statement
The ICT Group is an organisation that seeks tocontribute towards socially relevant solutions andproducts, in which the most recent technologicaldevelopments play an important role. ICT closelyfollowssuchdevelopmentsandincloseparallelfocusesonsupplyingsoftware-relatedservices
Our core valuesOur core values are central in our dealings with ourclients,employeesandshareholders.•Entrepreneurship•Commitment•Independence•Responsibility•Jointeffort
Profile ICT
ClientsThe software-related services that ICT providesassistcompanyclientstorealiseaddedvalue,inturncreatingacompetitiveadvantagefortheseclients.ICT isnota trendsetter in itschosenmarkets,butdoesbrisklyanticipatedevelopmentsinthemarket.ICTfeelsstronglyaboutaspectssuchaslong-termrelations,respect,andtrust.Wedowhatwepromiseinasoberandpragmaticmanner.
Employees ICTisaperson-orientedcompanyandexistsbythegraceofitsstaff.Weareasocialcompanywithaninformalculturewhereemployeesareencouragedto quickly feel at home. ICT is also a technically-drivenorganisationwherebythedrive,qualityandprofessionalismofitsemployeescreateadistinctiveasset.ICTstimulatesthecareerdevelopmentofitsemployees, and gives them every opportunity todevelopthemselves.Theprimaryresponsibilityherelies with the employee, and ICT facilitates wherepossible.Inordertobesuccessful,theICTemployeemustshowtheyarecapableofworkingandthinkingindependently, and possessing a healthy dose ofhealthydoseof creativity andpro-active initiative.Mutualrespectisanessentialaspectofthework.
ShareholdersWe seek to offer shareholders a good consistentreturnoninvestment.ICTtakestheinterestsofitsinvestors into careful account, and communicatesopenlyandhonestlyoncompanyperformance.Theguiding principle is to carefully manage financialperformanceinallplansandactivities.Weconsiderthisaheavyduty.
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Profile ICT
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Chapter 2: ICT in figures
KEY FIGURES 2008 2007
Results (x € 1,000,000)
Turnover ¹) 97.5 88.3Ofwhich: •ICTEmbedded 27.8 30.8
•ICTSolutions 44.6 46.4•ICTConsultancy 2.3 1.9•ICTGermany 22.8 9.2
Addedvalue(turnoverminusmaterialconsumptionandoutsourcedwork) 87.5 79.4Operatingresult4) 9.3 7.8Pre-taxresult 7.3 8.3Netprofit 5.3 6.1Cashflow(netprofitplusdepreciation) 6.0 6.6
EmployeesNumberof31December(headcount) 1,015 941Averageduringtheyear(inFTE) 972 907
Balancesheetfigures(x€1,000,000)Shareholders’equity 45.3 41.1Totalassets 65.2 60.0
RatiosOperatingresult/revenue¹)4) 10% 9%Netprofit/revenue¹) 5% 7%Netprofit/averageshareholders’equity 12% 15%Shareholders’equity/totalassets 69% 69%
Data per share of € 0.10 nominal (in €)Netprofit²) 0.62 0.74Cashflow(netprofitplusdepreciation)²) 0.71 0.79Shareholders’equity³) 5.17 4.95Dividend³) 0.25 0.58
¹)Revenueconsistsofgeneralrevenuesandotherincome.²)Basedontheaveragenumberofordinarysharesissued.³)Basedontheordinarysharesissuedatyearend.The2008dividendreferstotheproposaltotheGeneralMeetingofShareholders.4)Correctedforextraordinaryexpenses.
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ICT in figures
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Chapter 3: Strategy & Objectives
ICT’s strategy has been designed to further expandthe company’s position in its selected markets withthe objective being to be one of the leading playersin these markets. However, to achieve this, a criticalmass is required. So in addition to autonomousgrowth,specificattentionisbeingpaidtoacquisitionsthat might significantly contribute to realising theobjectives. In detailing the strategy the geographicalcomponentisexplicitlybeingtakenintoconsideration;ontheonehandintheinterestofclients,ontheotherintheinterestofstaff.
For2011, ICThasset itselftheobjectiveofachievinga turnover of € 150 million. Of this turnover, some60%istoberealisedintheNetherlandsand40%inGermany. Given the current economic developmentsthisobjectiveshallbepushedbackintime.Inthelongterm, theexpectationsare thatGermanactivitieswillsurpasstheDutchactivities.Inadditiontothegrowthinturnover,thefocuswillbeonimprovingthemargins.
ICT’sambitionfor2011toachieveanoperatingprofitof between 10% and 12.5% on turnover will alsorequiremoretimegiventhecurrentmarketconditions.Factorsthatwillplayanimportantroleinthisarethedevelopment of the labour market, the economy oftheworldingeneralandthatoftheNetherlandsandGermanyinparticular.
In 2009 the ICT Embedded Division will continue tofocusonaligningworkforcewithmarketrequirements.In 2008 progress was made by raising capacity utili-sation and simultaneously achieving a strong clientbase for activities. For this reason 2009 too will seeinvestigationsundertakenastothepossibilityofusingknowledgegainedintraditionalembeddedmarketstoenternewmarkets.Forthefullrangeoftheactivities
oftheICTEmbeddeddivisionnogrowthisexpectedonbalanceovercomingyears.
ActivitiesoftheICTSolutionsdivisionwillonceagainbeconcentratedintheNetherlands,wherebytheofficenetwork covers the entire Netherlands and acts as aspringboard for expansion. In 2008 ICT Solutions, inline with the strategic principles, further withdrewfromtheinternationalCommunications&MultiMediaactivities.
ICTConsultancy,inanumberofsubareaswithinsystemdevelopment,suchasRequirementsEngineering,Archi-tecture,QualityAssurance,ConfigurationManagementand Testing, offers services with a high added value.Through its focuson the threeaspectsofTechnique,Organisation and Process, ICT differentiates itselfstronglyinitsservices,andfacilitatesothersignificantachievements.
As of October 2008 in the ICT Germany division allactivities have been carried out under the name ICTSoftwareEngineeringGmbH.Withregardtotheobjec-tives, within ICT Germany, to create similar marketbreadthasintheNetherlands,majorstepsweretakenin2008includingtheacquisitionof!Zip.Whilein200795% of activities concerned the Automotive market,this percentagehas nowbeen reduced to75%. Thelong-term strategy for ICT Germany remains growthandexpansionofactivities.Theobjectivetoreach500membersofstaffseemstobenolongerfeasiblebeforeend2010.Duetoprevailingeconomicconditionsthefocusin2009willinthefirstplacebeonhealthyopera-tional management and expansion of activities. Alsoin terms of acquisitions, and again given the currentmarketconditions,carewillbepursuedinformulatingandimplementingpolicy.
Strategy & Objectives
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Chapter �: Information on ICT shares
Shares
•Exchange EuronextAmsterdam•Numberofissuedshares 8,747,544•Coveringtheoptionobligationsofpurchasedshares -•Numberofoutstandingshares 8,747,544
Dividend policy
DuringthetimeICThadastrongcashposition,adividendpolicywaspursuedbasedonaveryhighpay-out.Duetothecompany’sacquisitionpolicyandpay-outofmostprofitsearned,cashpositionshavedeclinedsignificantly.Giventheimportanceofastrongbalancesheet,alsointoday’suncertainconditions,andthepossibilityoffutureacquisitions,thedecisionhasbeenmadetoreturntoadividendpolicybasedona40%pay-out.
Major shareholders
TheICTAutomatiseringN.V.mostrecentstatusconcerninginterests:
•Avivaplc./DeltaLloydLevensverzekeringN.V. 9.78%•QuellhorstA.J.H.,Minderhout 7.36%•OrangeOranjeParticipatiesN.V. 6.91%•DeltaDeelnemingenFondsN.V. 6.11%•DecicoB.V. 6.10%•GeneraliHoldingViennaAG 6.05%•DarlinN.V. 5.50%•NavitasB.V. 5.45%•FidelityLowPricedStockFund 5.10%
The share in 2008 (closing prices in €)
2008 2007 2006 2005Highestshareprice 10.45 16.07 21.66 14.83Lowestshareprice 4.42 10.00 13.65 12.16Sharepriceasof31December 4.71 10.55 14.58 14.83Dividendin% 5.31% 5.50% 4.05% 4.32%Price/earningsratio(endfinancialyear) 7.6 14.3 19.2 16.9
Liquidity providers
Variousbanksactas‘liquidityprovider’fortheICTshare.ICTisoftheopinionthatanincreasingandregulatedtradeinitssharesisimportantforthecompanyanditsshareholders.
Information on ICT shares
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Information on ICT shares
Investor relations
ICT feels strongly about active and open communi-cationwithinvestorsandanalyststoexplainitsstrategy,financial results and current affairs. In 2008 a largenumber of presentations were given to analysts andinstitutionalinvestorsinsupportofabalancedvaluationoftheshareandabroaderspreadofshareholdings.
The website www.ict.nl offers extensive information,includingpressreleasesandfinancialdata. ICTstrivestowardsaclearandtransparentmeansofprofilingitsactivitiesandstrategy.
Internal rules concerninginsider trading
ICThas rulesgoverning the reportingof transactionsin securitiesof ICTAutomatiseringN.V. for itsSuper-visory Board, Executive Board and other appointedpersons, including staff, members of managementandanumberofadvisors.TheCompanySecretaryhasbeenappointed‘complianceofficer’andisresponsibleforsupervisingcompliancetotherulesandregulations,and communication with the Authority for FinancialMarkets.
Financial agenda
27 May 2009Tradingupdatefirstquarter27 May 2009TheGeneralMeetingofShareholders29 May 2009Listingex-dividend26 June 2009Dividendavailableforpayment28 August 2009Publicationof2009half-yearlyfiguresandmeetingofanalysts
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Chapter �: Members of the Supervisory Board and the Executive Board
Supervisory Board
Name: mr.W.deVlugt(1942),chairmanNationality: DutchPrincipalotherpositions: SupervisoryboardchairmanHollandVentureB.V. SupervisoryboardchairmanLinxTelecomB.V. SupervisorydirectorKoopHoldingB.V.Initiallyappointedin: 1997Currenttermuntil: 2009
Name: ir.C.A.G.D’Agnolo(1953)Nationality: DutchPosition: seniorvicepresidentcentral&EasternEuropeatZetesPrincipalotherposition: memberoftheSupervisoryBoardofTwiceBVInitiallyappointedin: 2008Currenttermuntil: 2012
Name: C.Kämper(1940)Nationality: DutchPrincipalotherpositions: SupervisoryboardchairmanFreecomTechnologiesB.V.
SupervisoryboardchairmanCapitolSteelTechnologiesB.V. SupervisorydirectorHollandVentureB.V.
ChairmanoftheAdvisoryCouncilJ.H.TheWitandZonenB.V.Chairmanof theAdvisoryCouncilOverwaterGrondbeleidAdviesbureauandOverwaterRentmeesterskantoorB.V.
Initiallyappointedin: 1992Currenttermuntil: 2011
Name: B.F.KostwinderRA(1963)Nationality: DutchPosition: Responsible for the financial management and operational management at
EvangelischeOmroep(EO)Principalotherposition: memberoftheSupervisoryBoardofEconostoN.V.Initiallyappointedin: 2008Currenttermuntil: 2012
Name: dr.ir.P.Zuidema(1948)Nationality: DutchPrincipleotherpositions: BoardmemberoftheSNNFoundationforAdaptiveIntelligence
MemberoftheSocialCounciloftheImmigrationandNaturalisationServiceInitiallyappointedin: 2006Currenttermuntil: 2010
Executive Board
Name: A.SchotRA(1962)Nationality: DutchPosition: ChairmanoftheExecutiveBoard
Name: Ir.J.Oberg(1967)Nationality: DutchPosition: MemberoftheExecutiveBoard
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Members of the Supervisory Board and the Executive Board
Financial statements 2008
We have the pleasure to present the annual reportdrawnupbytheExecutiveBoardand inconsultationwith the Supervisory Board, and which includes thefinancial statements for the financial year 2008, andall other legally required information concerningICT Automatisering N.V. The financial statements forthe year 2008 have been audited by Ernst & YoungAccountantsLLPandprovidedanauditreport,whichisincludedonpage93ofthisannualreport.The financial statements, the report of the board ofdirectors and the audit report were discussed in thepresenceoftheexternalaccountant.WearepleasedtorecommendthattheGeneralMeetingofShareholdersconfirmsthefinancialstatements2008inaccordancewiththepresenteddocuments.
Dividend proposal and discharge
Assuming that the financial statements 2008 will beconfirmedinaccordancewiththepresenteddocuments,werecommendtheGeneralMeetingofShareholderstoapprovethedividendproposal,asshownonpage91.
Activities of the Supervisory Board and consultation with the Executive BoardIn2008theSupervisoryBoardandtheExecutiveBoardheld seven meetings. Most meetings were attendedby the entire Supervisory Board. The annual meetingwiththeworkscouncilalsotookplace.Followingtheestablished fraud the Supervisory Board met in anemergencysessioninFebruary2009.
Additionally, several informal contacts took placebetween the Supervisory Board and the ExecutiveBoard, and between members of the Supervisory
Board. During these meetings a number of regularsubjects were discussed including budget, financialdevelopments and results, market developments andthegeneralandoperationalstateofcompanyaffairs.In this context attention was paid to internal riskmanagement and risk control systems, this partly inview of the expansion of the company’s activities inGermany.Onvariousoccasions,ideaswereintensivelyexchangedwiththeBoardwithregardtothestrategyto be followed, the more so given the deterioratingmarketconditionsandtheimpactofitonICT.
TheSupervisoryBoardextensivelydiscussedthefinancialreports with the Executive Board. Subjects that werehandled included developments concerning turnover,marginsandoperatingcosts,aswellasresults,balancesheetratios,budgetsandprospects
TheBoardheldtwoGeneralMeetingsofShareholders:the plenary annual General Meeting in May and anExtraordinaryMeetinginOctober.DuringtheExtraor-dinaryGeneralMeetingtheproposedappointmentasof 1 October 2008, of a member of the SupervisoryBoard,Mr.C.A.D.D’Agnolo,wasannounced.
The Supervisory Board supervised the policy pursuedby the Executive Board both during and outside themeeting.
Composition and retirement schedule of the Supervisory Board
In2008, inaccordancewith the retirementschedule,Mr. H.A.D. van den Boogaard retired as supervisorydirector.TheappointingofMr.D’Agnolo,effectiveon1October2008,wasinanticipationofMr.DeVlugt’swithdrawalinMay2009havingreachedthemaximumterm. Subsequent to his withdrawal The SupervisoryBoardshallconsistoffourmembers.
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Report of the Supervisory Board
Report of the Supervisory Board
Themake-upof theSupervisoryBoard is in linewiththe profile drawn up. The Supervisory Board alsobelievesthatthecompositionissuchthatthemembers,independentlyofeachotherandoftheExecutiveBoardoranyotherinterest,canproperlyactinthesenseoftheDutchCorporateGovernanceCode(theCode).AllmembersoftheSupervisoryBoardareindependentinthesenseoftheCode.
PersonalinformationregardingtheindividualmembersoftheSupervisoryBoardandtheretirementschedulecanbefoundonpage17ofthisreport.Theschedulewas not altered during the year under review. In2009thefour-yeartermofMr.W.deVlugt,whowasappointedfor thefirst time in1997,willcometoanend. On the subject of supervisory commissioners’termsofnotice,ICTfollowstheguidelinesoftheDutchCorporateGovernanceCode.AlsoonbehalfoftheExecutiveBoard,wewouldliketotakethisopportunitytothankMr.DeVlugtforhismuchappreciatedcontributionsinthepreviousyears.SincethestockexchangelistingMr.DeVlugthasbeeninvolvedas the supervisorydirectorof ICT.Underhisenthusiastic chairmanshiphecontributed significantlytothecompany’sdevelopments.
Finally,wewouldliketothanktheExecutiveBoardandallICTGroupstafffortheircontributionsanddedicationtotheICTGroup.
Barendrecht,20April2009
Supervisory Boardmr.W.deVlugt,Chairmanir.C.A.G.D’AgnoloC.KämperB.F.KostwinderRAdr.ir.P.Zuidema
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Chapter �: Corporate Governance
Corporate Governance
General
ICT Automatisering N.V. is a public limited company, which has its registered office in Barendrecht, the Netherlands. ICT is what is referred to as two-tier board company and has been listed on Euronext Amsterdam since 1997. ICT’s corporate governance policy is discussed below. ICT’s view on the provisions of the Dutch Corporate Governance Code, hereinafter referred to as the Code, is also set out below. It is also indicated where ICT differs from the Code, and the reasons for any deviation.
Executive Board
Asatwo-tierboardcompany, ICT is requiredtohaveaSupervisoryBoardaswellasanExecutiveBoard.TheExecutiveBoardcurrentlyconsistsoftwodirectorsandtheSupervisoryBoardhasfivemembers.Inaccordancewith the company’s objectives and Dutch law, theExecutiveBoardmanagesthecompanyhavingregardto all company stakeholders. The Executive Board isaccountabletotheSupervisoryBoardandtheGeneralMeetingofShareholdersforthewayinwhichitmanagesthecompany.ThecompanyhasdrawnuprulesfortheExecutiveBoardwhichhavebeenplacedonitswebsiteinaccordancewiththeCode’sprovisions.
Members of the Executive Board are appointed bythe Supervisory Board. Before the Supervisory Boardappointsanewmember,itnotifiestheAnnualGeneralMeetingandtheWorksCouncil.ContrarytotheCode,oneofthepresentboardmembershasbeenappointedfor an indefinite period. This deviation is due to thefact that at the time of member’s appointment theCodehadnotyetenteredintoeffectandthedirector’scontractdidnotmakeanyprovisionfortheCode.TheSupervisoryBoardmaysuspendanddismissdirectors.The remuneration of the directors is decided by theSupervisory Board. ICT closely follows the trends ofthe emoluments of members of the executive board
in similar organisations. The Supervisory Board alsocommissioned a detailed study of salary structureswithin the ICT sector on several occasions. Thesemeasures have resulted in a balanced remunerationstructure.
Supervisory Board
The Supervisory Board monitors the company’smanagement and general affairs. It gives advice tothe Board. In accordance with the provisions of theCode,allofthemembersoftheExecutiveBoardandthe Supervisory Board are independent. The Super-visoryBoardacts intheinterestsofthecompanyandcompaniesassociatedwith it, and in its activitieshasregardtotheinterestsofallthecompanystakeholders.Itisresponsibleforsupervisinginparticular:a.theachievementofcompanyobjectives;b.the strategy and the risks associated with the
company’sactivities;c.thesetupandoperationofinternalriskmanagement
andrelatedcontrolsystems;d.thefinancialreportingprocess;e.compliancewithlegislationandregulations.
TheExecutiveBoardgivestheSupervisoryBoardallofthe information that the Supervisory Board requiresinordertocarryout itsworkanddoessoinatimelymanner.TheSupervisoryBoardisinformedinwritingatleastonceayearoftheprinciplesofpolicy,thegeneralfinancial risks and the company’s management andcontrolsystems.InviewofthenumberofmembersoftheSupervisoryBoard,separatecommitteeshavenotbeen setupand theboardasawhole is responsiblefor the supervisory tasks. The Supervisory Board hasadoptedasetofrulesthatgoverndecisionmakingbyand the functioning of the board, which have beenplacedonthecompany’swebsite.
ForfurtherinformationonthespecificactivitiesoftheSupervisoryBoard in2008,please read the reportoftheSupervisoryBoard.
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Corporate Governance
Under the new statutory provisions, members ofthe Supervisory Board are appointed by the AnnualGeneral Meeting based upon nominations by theSupervisory Board. The nominations are drawn upby the Supervisory Board once the Annual GeneralMeeting and the Works Council have been notifiedof the vacancy in question and have been given anopportunitytorecommendindividualsfornomination.OnesupervisorydirectorisrecommendedbytheWorksCouncilbaseduponwhatisreferredtoasitsenhancedrightof recommendation.The individualmembersofthe Supervisory Board can only be dismissed by thebusinesschamberoftheAmsterdamCourtofAppeal;andinadditiontheentireSupervisoryBoardresignsintheeventtheAnnualGeneralMeetingceasestoputitsconfidenceintheSupervisoryBoard.
DetailsofthemembersoftheSupervisoryBoardandoftheirprincipalexternalpositionsarelistedonpage17ofthereportoftheSupervisoryBoard.
Notransactionstookplaceduringthepastfinancialyearthatinvolvedexecutivedirectors,supervisorydirectorsormajority shareholders in a conflict of interest. ThenatureofICT’sactivitiesmeansit isunlikelythatsuchtransactionswouldtakeplace.
Anti-takeover measures
In order to safeguard the company and all its stake-holdersagainstahostiletakeover,theAnnualGeneralMeeting has given the company the power to issuepreferencesharestotheStichtingContinuïteitICT.Theobjectofthe‘Stichting’istosafeguardtheinterestsofthecompanyanditsbusinessandallstakeholders. Intheeventofahostiletakeoverattempt,theStichtingcan call in the preference shares from the companyundertheoptionagreemententeredintobetweenthecompanyandtheStichting.TheStichtingmaysubscribeforanumberofpreferencesharesequaltothenumberofordinarysharesofthecompanythatare issued. Intheeventofahostiletakeover,theissuanceofprefe-
rence shareswill enable theExecutiveBoardand theSupervisoryBoardtodecideupontheirpositionrelativetothebidder,considerthebidder’splans,examinealter-natives,andthusfurthersafeguardtheinterestsofthecompanyanditsstakeholders.ThecurrentmembersoftheBoardoftheStichtingareMessrsdrs.M.W.Dekker,Jhr.mr.E.BeelaertsvanBlokland,mr.H.R.Okkensanddrs.P.F.PlaizierRA.TheStichtingisindependent.
Overview of Corporate Governance provisionsICTcomplieswiththeprovisionsoftheDutchCorporateGovernanceCode,apartfromthoselistedbelow.
The Board
Best practice provision II.1.1Anexecutivedirectorshallbeappointedforamaximumperiodoffouryears.Anexecutivedirectormayalsobereappointedforamaximumoffouryears.Thecurrentexecutive director has been appointed contractuallyandundertheArticlesofAssociationforanindefiniteperiod. In view of the fact that this involves existingcontractual relationships, the company will deviatefromthisprovisionuntillegislationandregulationsareamendedaccordingly.
Best practice provision II.2.6Thisrecommendationwillnotbeadoptedbecausetheexistingrulesareregardedasadequate.
Best practice provision II.2.7Theexistingcontractualobligationsarerespected,buttheSupervisoryBoardreservestherighttodeviatefromthisifthisruleprovestobeunreasonableinthecircum-stances.
Supervisory Board
Best practice provision III.3.5 ICT will treat the reference date for this recommen-dation as June 1997, when the company was firstlisted.
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Corporate Governance
Best practice provision III.7.3Thisrecommendationwillnotbeadoptedbecausetheexistingrulesareconsideredtobeadequate.
Shareholders
Best practice provision IV.3.1ICTprovidesanyinformationforshareholdersinpressreleasesandplaceshandoutsonthewebsite.
External auditors
Best practice provision V.2.1ICTisoftheopinionthatthepresenceoftheexternalaccountant at the General Meeting of Shareholdersdoes not add any value. The report issued by theaccountantclearlystatesallrelevantinformation.
Duringtheshareholders’meetingof2004theCorporateGovernancepolicyof ICTwasdiscussed.Thisdidnotresultinanycommentsfromshareholders.
Risk management and internal control
ICT has implemented internal risk managementand risk control systems with a view to minimisingthe company’s operating and financial risks for thecompany and restricting the impact of unexpectedevents on balance sheet ratios and results as far aspossible.ICTconsidersriskmanagementtobeaconti-nuousprocesswherebytheembeddingpolicyincontrolsystemsandproceduresateachlevelwithintheorgani-sationsisessential.ICToperateswithmanualsonhowtoundertakefinancialreportingaswellasinstructionsandproceduresthatarebindingforstaffregardingtheimplementation of financial activities. Nevertheless,although the systems have been structured such asto allow the incorporation of multiple controls, thusalsominimisinganypossibilitiesofconspiracybetweenindividuals,itisstillthecasethatactualimplementation
of activities in accordance with the instructions andproceduresaswellasallotherelementsofthecontrolsystemsremaindependentontheindividualsinvolved.Atseveralcompaniesamemberofstaffhascommittedfraud.Havingfailedtoefficientlyfollowcertainproce-duresandproperlycarryoutinternalcontrols,thisdidnotcometo light inproper time.Theprocedures forthepaymentsystemwithinthecompanyatwhichthefraudwascommitted,wereconsequentlyinvestigatedand tightened up. Within ICT further improvementand intensification of the internal controls remains acontinuous process. ICT believes that, thanks to themeasures taken, the systemof riskmanagementandinternal control measures will be furthermore properandeffective.
Key elements in the system of risk managementand control are the systems for budgeting, projectmanagement and financial reporting, which monitortheprogress and the actual results of the company’soperating activities. ICT also uses a staff evaluationandappraisal system. In viewof thegrowth in2007and 2008 of the organisation in Germany ICT hastaken steps to achieve adequate and effective riskmanagementandriskcontrolsystemsthere. In2008,as part of this effort, the organisational structure ofICTinGermanywasadapted.In2009focuswilllieonharmonisingtheriskmanagementandcontrolsystemsinGermanywiththesystemsthatarecommonintherestoftheICTGroup.
IntheachievementofitsobjectivesICThasidentifiedthefollowingrisks.
Economic trendsGeneral economic conditions affect the commercialsuccessofICT’sclients.Forexample,decisionstoinvestor the size of R&D budgets may be delayed, or theextentoftheinvestmentorbudgetmaybereducedasaresultoflowerprofits.Clearly,thishasaneffectonthedemandforICT’sservices.
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Corporate Governance
Movements of activities to low-cost sitesOngoing globalisation means that multinationals areincreasinglylocatingpartsoftheirproductionfacilitiesoutside Europe. In the wake of this, elements ofsoftwaredevelopmentarealsobeingmovedtotheseregions.
Although this trend has been present since the mid-nineties, recently it appears to have accelerated. ICTis currently not able to assess the degree to whichthis trend will affect its activities and how far it willcontinue. ICT is, of course, closely monitoring thesedevelopments.
Technological developmentsRapidtechnologicalprogress,changingclientrequire-mentsandevolvingsoftwarestandardsareallfeaturesof the software market. ICT’s success hinges on itsabilitytoadapttothesedevelopmentsandtokeeptheknow-howofitsstaffup-to-date.
By closely following the changes affecting its clientsand the market, ICT expects to be able to maintainitsposition.Thesechangesaretakingplaceatarapidpace,whichmeansthecompanyneedstobealert.
Dependence on staff Foritscurrentbusinessoperationsandplannedgrowth,ICT is toa largeextentdependenton theavailabilityof sufficient personnel and in particular on sufficientnumbersofwellqualifiedpersonnel.
The labour market for personnel with relevantknowledge and expertise is tight, and competition isfierce. It is uncertain that ICT will be able to attract,recruitandretainenoughproperlyqualifiedstaff.IfICTisnotsuccessful inthisarea, itcouldhaveanegativeimpactontheachievementofitsobjectives.
Dependence on large clientsA relatively small number of clients account for asubstantial proportion of ICT’s turnover, reflecting
thefactthatlargecompaniestendtooperateinICT’smarkets.Inaddition,ICTneedstooperateatacertainscalewiththeselargercompaniesinordertobuildupagoodrelationshipwiththemandtosecurepreferredsupplierstatus.
The lossofanyof these larger clients forany reasonmaythereforehaveanegativeimpactonICT.Inlightofthis,oneofICT’sprioritiesistobroadenits client base. It is self-evident that in the currentmarketconditions,thispolicyisaquestionofcorporatestamina.
TheaboveoverviewoftheprincipalriskareasforICTisnotexhaustive.Itisalsopossiblethatrisksthathavenotcurrentlybeenidentified,orthatarenotregardedasmaterial,willhaveasignificantlyadverseaffectonICT’sabilitytoachieveitsobjectivesatalaterdate.ICT’sinternalriskmanagementandriskcontrolsystemsaregeared to the timely identification of such risks. Theaboveeconomictrendsmightalsoforacertainperiodof time interfere with the possible development ofotherpreviouslymentionedrisks.Forinstance,duringa recession a tight employment market will have adifferentimpactthaninaboomperiod.
Financial risks and policy
Company policy is naturally geared to effectivelymanaging multiple risks such as interest rate risk,currencyrisk,liquidityriskandcreditrisk.Thefinancialinstruments as included in the balance sheet of ICTAutomatiseringN.V.donotincludespecificcontractualstipulations other than the guarantee given to theRabobank.
ICTAutomatiseringN.V.anditsgroupcompaniesneitherholdnorissueanyfinancialinstrumentsforcommercialpurposes.Consequently, ICTAutomatiseringN.V.anditsgroupcompaniesdonotusecashflowhedging,fairvaluehedgingandcurrencyhedging.
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Corporate Governance
Interest rate riskICTconsidersinterestrateriskstobeminimalbecausethecompanydoesnothaveanyinterest-bearingdebtwhich means there is no sensitivity to obligationsaccruingasaresultofinterestratefluctuations.Interestrevenuefollowstheprogressofdepositinterestrates.
Currency risk ToICTcurrencyrisksareirrelevantbecausethecompanysigns contracts and enters into obligations only ineuros.
Credit riskGiventhesolvencyandthecreditworthinessofmostofICT‘sclientsthebaddebtriskisconsideredaverage.Thecreditriskonliquidassetsisconsideredlowconsideringtheoutstandingliquidassetsatcreditworthybanks.
Liquidity riskICT believes liquidity risks are minimal because thecompany’sliquiditiesconsistmerelyofbankbalances.
Amendment to the articles of association, issuance and purchase of shares
TheGeneralMeetingofShareholdersmayonlydecidetoamend thearticlesofassociationupon theSuper-visoryBoard’sproposal.
FollowingtheSupervisoryBoard’sapproval,theGeneralMeeting of Shareholders will decide to issue shares.TheGeneralMeetingofShareholdersmayappointtheExecutiveBoardforamaximumperiodoffiveyearsasthebodyauthorisedtoissueshares.
TheExecutiveBoard,provided ithasbeenauthorisedby theGeneralMeetingofShareholders,maydecidetoobtainownsharesthroughthecompany;thistakingintoaccount relevantand legalandstatutory stipula-tionsinthismatter.
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Chapter �: Report of the Executive Board
Report of the Executive Board
Introduction
In line with expectations in 2008 ICT saw turnover and net profit increase. Especially in the first six months of 2008 activities developed favourably. German activities contri-buted significantly to improved operating profits. ICT also benefited from the positive effect of measures taken in the Embedded Division; initiatives already taken in 2007. In the second half of the year, especially in the fourth quarter, the economic climate showed deterioration. This evidenced itself most clearly in the temporary company closures of several purchasers in December. These closures interfered directly with capacity utilisation. Bearing these effects in mind, the operational result booked is satisfactory.
Theeconomiccrisishasnowworsened.WhileICT,giventhenegativeprospectsattheendof2008,discontinueda limitednumberof employment contracts, now thecompanyconsidersreorganisationtobenecessary.
Whiletheoutcomeofoperationalactivitieswassatis-factory, in January2009 ICTestablishedthe fact thatduring 2008 an extensive fraud was committed. Thefraud significantly affected net profit. It was a shocktotheentireorganisation.Allproceduresandcontrolmechanisms are being scrutinised and upgraded topreventsuchincidentsinthefuture.
ICT’sstrategyremainsunremittinglygearedtofurtherexpandingpositionsinselectedmarkets.Oneobjectivein this regard is to be one of the leading players inthese markets. And in line with this strategy on 1February2008ICT,followingthedeclarationofintentsignedinNovember2007,thetakeoveroftheGerman!ZipEDV-BeratungGmbHand!ZipAutomationGmbH(!Zip)wascompleted. Inaddition to thisacquisition,thecompanyinterestinLineasAutomotivewasraisedto100%.For2009 ICThasdecided toawait further
market developments before it decides to grow anyfurtherbyacquisition.
Financial developments
In2008turnoverincreasedby10.4%to€97.5million(2007: € 88.3 million). Acquisitions were responsibleforthree-quartersofthisincrease.TheturnoverofICTEmbedded dropped by 9.8% to € 27.8 million. Thiswasmainlycausedby thedecliningnumberofdirectstaff.TheturnoverofICTSolutionsdeclinedby3.7%to€44.6million.Themainreasonwasthelackofsuffi-ciently qualified staff. The turnover of ICT Germanyincreased by a comfortable 146%. Half the turnoverincrease in Germany followed from the expandedinterestinLineasandtheacquisitionof!Zip.Theotherincrease in turnover Germany was autonomous. Theturnover of ICT Consultancy increased from € 1.9millionto€2.3million.
Rates in 2008 showed further rise compared to2007. Personnel expenses in 2008 amounted to€ 57.3 million, an 11% increase compared to 2007.In addition to the average rise in number of staff of7%, this was mainly the result of increased averagewagecostsperemployee.Eventhoughcostincreaseswere still exceeding theacceptable rate increase, thedifferencecontinuedtodecline.
Operating profit in 2008, in line with turnoverdevelopment, increased by 19.3% to € 9.3 millionexcluding the impactof the established fraud (2007:€ 7.8 million). Other operating expenses increasedby 3.6% reaching € 20.2 million. The fact that thisrise, despite the acquisitions made, did not turn outhigher,wastheresultofthereducedcarexpensesandnumber of staff in the Netherlands. The operationalmargin increasedfrom8.8%in2007to9.5%intheyear2008.
Despitethedeclinedexisting liquidassetsbyapproxi-mately26%,thebalanceofinterestincomeandcosts
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Report of the Executive Board
rose. In 2008 the surplus amounted to € 418,000comparedto€340,000in2007.
In2008theeffectivetaxburdenamountedto26.3%comparedto26.6%in2007.
While the operating result increased, net profitdecreasedby13%to€5.3million(2007:€6.1million).Thedecliningnetprofitwascausedbyaburdendueto a fraud committed in 2008. This post-tax burdenamountedto€1.9million.Theinvestigationintothefraudcase isstill in full swing. In2008theprofitpershareamountedto€0.62(2007:€0.74).ICTintendstopayadividendof€0.25pershare.Thismeansthepay-outfor2008willamountto40%.
In 2008 depreciation increased by 56.4% to€746,000.
In 2008 the shareholders’ equity as a percentage ofthebalancesheettotalshowedastabledevelopmentamounting to 69.4% (2007: 68.5%). The share-holders’equityincreasedfrom€41.1to€45.3million.An increaseof€4.2million. Thebalance sheet totalincreased from € 60.0 million to € 65.2 million. Anincreaseof€5.2million.
The number of issued shares showed a change andamountedto8,747,544sharesintotalon31December2008(2007:8,452,927).ICTisnotholdinganysharestocoverassignedrightsofoptions.
Thenetcashflowfromoperatingactivitiesamountedto€6.5million.€8.4millionwasusedforinvestmentactivities and € 1.3 million for finance activities. Thisresultedinanegativenetcashflowof€3.2million.
Prospects
Sincethefourthquarterof2008mostmarketsinwhichICT operates continued to deteriorate. In countrieswhereICTisactive,economicretrenchmentisexpected
in2009.ICTisnotexpectedtosucceedinavoidingthisreality.SoICThasseenreasontoreorganise.Thiswillthustakeplaceinthecourseof2009.Relatedactivitiesareexpectedtocostbetween€3.5and€4.0millionandwillbechargedtothe2009result.Giventheveryuncertain short-term economic developments acrossthe world, prognoses for the year 2009 cannot begivenwithgreatcertainty.
As in previous years, ICT will continue to invest inknowledge development. On the one hand when itcomes to knowledge of staff, on the other hand byhandling new developments together with partnerswherever possible. In an otherwise unchangedenvironment, policy regarding financial instrumentsandcompanyfinancingdonotrequireadjustment.
Directors’ declaration
Under the terms of the articles of association thecontrolling company directors are responsible forpreparingfinancialstatementsandtheannualreportinaccordancewithDutchlawandInternationalFinancialReportingStandards (IFRS).Asprescribed inarticle5-25c of the Financial Supervision Act, the controllingcompany directors, taking into account the above,declarethatinsofarknown(i)thefinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitofICTAutomatiseringN.V.aswellas for thoseof the companies included jointly in theconsolidation; (ii) the annual report gives a true andfairviewof theconditiononthebalancesheetdate,developmentsduringthecompany’sfinancialyearandrelatedcompaniesofwhichdetailshavebeenincludedin the financial statements and (iii) that the annualreportdescribestheessentialrisksICTisfacing.
Themembersofthecontrollingcompanyhaveunder-signed the financial statements to comply with thelegalobligationsbyvirtueofarticle2:101paragraph2oftheDutchCivilCodeandarticle5:25cparagraph2subparagraphcoftheFinancialSupervisionAct.
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Report of the Executive Board
ICT Embedded
Introduction
ICT Embedded focuses on the following markets: Healthcare, Manufacturing, Communications & MultiMedia and Traffic & Automotive. This sector-based approach allows ICT Embedded to provide complicated tailored embedded systems that meet the specific technological requirements of customers in these markets. A contribution is thus made to shortening the time-to-market process, increasing product quality and product reliability and reducing products’ total cost of ownership.
Strategy
The Embedded market in the Netherlands has beenexpanding for several years. The strategy of ICTEmbedded therefore targets not so much turnovergrowthorturnoverconsolidation,butratherthereali-sationofagoodoperatingresult.
Traditionally ICTEmbedded serves anumberof largetechnologicalcustomers.Thelineoffurtherexpandingthecustomerbasiswithmedium-sizedcustomerswhichwas introduceda fewyearsagowillbecontinued in2009.As regardsportfolioamixtureof secondment,projectsandmaintenancewillbepursued.
In the above mentioned markets the focus is on arestrictednumberofspearheadswhichcloselydovetailwithbusinessthemes.•Within the Healthcare market for instance this is
interoperatibilty&connectivityduetoan increasingexchange of information between and amonghospitals and other institutions in the healthcarechain.
•Within the Manufacturing market reduction ofsystemcomplexityandtotalcostofownershiparethe
significantthemes.ICTEmbeddedthereforefocuseson the integral implementation of projects andmaintenance,whichmeanssoftwareandhardware.Severalpartiesareinvolvedinthisregard.
•The Automotive sector focuses on infotainmentsystems(e.g.radio,DVD,navigation).
•Product reliability is a theme that can be found inseveral markets. This is why over recent times ICTEmbeddedfocusedmoreonsoftwarevalidationandsoftware verification – the first partnership in theNetherlandshasbeenconcludedwithVerum.
•ThecompetencesfromtheCommunications&Multi-Media segment are used to support these spear-heads.
Overthecomingtime,thestrategyof ICTEmbeddedshall continue to target a position within the (non-cyclical)TrafficandDefencemarkets.
Course of events
In2008ICTEmbeddedperformedbettercomparedto2007.This improvementwasmainlythankstoresultsbooked in the first six months of 2008. Soon afterthe summer,however, thefirst signsof aneconomiccrisispresented themselves toseveralcustomers.Thisresultedinastronglydecliningnumberofprojectandsecondment requests. Rates also experienced incre-asingpressure.
In2008 turnover amounted to€27.8million (2007:€30.8million)a9.8%decline.Towardstheendoftheyear331employeeswereworkingforthisdivision.The15%staffturnoverin2008waslessthanin2007.Thedecline in turnover and the number of staff is signi-ficantly related to staff’s switch to ICT Solutions B.V.The economic deterioration that presented itself inthesecondhalfof2008isexpectedtocontinueintheyeartocome.AsisthecaseformanycompaniesintheDutch market, ICT Embedded too is expected to liveadifficult 2009.Measures are still taken to tune theorganisationtothechangingmarketconditions.
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Developments per sector
Communications & MultiMediaIn the Communications & MultiMedia sector ICTdevelopssoftwareforcommunicationbetweenpeople,butalsobetweenmachines.
The line that was launched in 2007, which involvedthefurtherincreaseofclients,wascontinuedin2008.ICT’s positions among existing clients, especially theones involved in Telecom and Traffic & Automotive,wassuccessfullyprotectedandintensified.
Nevertheless, turnover declined especially amongclients involved in the semiconductor industry. Thiswas the result of restructuring activities, decliningdevelopmentbudgetsand theeconomic situationonthewhole.Anumberofconnectivity-boxandSIMcardsimulationprojectswerecarriedout(in-houseatICTintheNetherlands).Communications & MultiMedia has invested in theknowledge areas: Java Card, embedded Linux andNFC/RFID.Theseknowledgeareaswerethethreemainspearheadsof2008.In2009ICT,withtheknowledgeareas of this sector, will continue to focus on non-traditionalTelecomclients,payingspecialattentiontocompaniesintheDefenceindustry.
HealthcareIn this sector ICT focuses both on companies thatdevelopmedicalequipmentandonorganisationsthatusemedicalequipment.
The introduction of the Electronic Patients File (EPF)is a current theme and leads to increasing demandforup-to-dateand complete informationonpatients(regional, national, intramural, beyond healthcareinstitutions).Also,thereismuchdemandforinteraliathree-dimensional reconstructions,where ICTholds astrongposition.
In2008thepositionofthediagnosticsectordiminished
slightlyduetothemarketrecession.Expectedexpan-sions in the laboratory, treatment and monitoringsectorsdidnot takeplace. Furthergrowth in specificcompetences in these sectors is a critical factor ofsuccess.
Activities in the field of connectivity (linking medicalequipment topatient registration systems)areelabo-ratedand the samegoes for the clients’basis in themedical equipment building. In addition to OEMthe commercial focus will only be on the sub-sector‘Hospitals’.
ManufacturingICTEmbedded,beingasoftwaredevelopmentpartner,focuses on prominent manufacturers of mechatronicequipment.Toproducethesedevicesmultidisciplinaryteamsofvariousexternalsuppliersareusuallybroughttogether.Themesincludeincreasingsystemcomplexity,costofownershipandmanagementofproductvaria-tions. ICT succeeded in maintaining occupancy atcrucialpositionswithinthesedomains.
Althoughin2008sometraditionalclientsinthissectorand thus within ICT Embedded suffered from theeconomiccrisis,progresswasbookedneverthelessbyfurther strengthening the clients’ basis. In 2008 ICT(in associationwith Prodrive)wonamajor long-termassignmentforaGermancompressormanufacturer.
In the upcoming year the further expansion of theclients’ basis will continue to be a major spearhead.Also,ICTseekstosubstantiateitsaddedvalueamongexistingclientsbymeansofspecificpropositions.Traffic & AutomotiveIn 2008 the Automotive market showed strongtechnological development. The economic recessionthis market has been facing mainly interferes withproduction.Byfocussingontheinfotainmentsystemsand, through Rialtosoft, on security-critical systems,in 2008 ICT Embedded succeeded in strengtheningits position in the Automotive market. For clients, in
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Report of the Executive Board
additiontoinfotainment,activitieswerecarriedoutinthefieldofnavigationandautomotive-telecom(OEMspecificcarkits).
Working togetherwith ICTGermanyprovidesadvan-tagesgiventhesubstantialmarketitopensup.In2009thiscooperationwillbefurtherintensified.
Alsoin2009,ICTEmbeddedwithinTraffic&AutomotivewillcontinuetofocusonexpandingtheTrafficsector.
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Report of the Executive Board
ICT Solutions
Introduction
ICT Solutions creates complex technical automation products for the guidance and control of business processes in various market sectors. Within ICT Solutions high-quality technological knowledge is linked to relevant domain and market knowledge. Examples cover a large application area with solutions varying from developing Communication and MultiMedia applications in various domains, computerising logistics processes to developing computerised solutions for material handling.
Strategy
In2008ICTSolutionsconcretisedthestrategicroadmap(2011)inanticipationofthenextmarketshifts:
•Services of ICT Solutions focus on softwareengineering services via projects, secondment andmanagedservices,withfocusbeingaimedatprojectsandmanagedservices.
•ThefocusoftheICTSolutionsofficesisaimedattheregionally accessible markets and clients (meaningthe Netherlands and the border areas of GermanyandBelgium).
•MoreintensivecooperationwithotherICTdivisions,includingICTEmbeddedandICTGermany.ThemainstepinthisregardhasbeenICTexpandingactivitiesintheNorth-Eastregionintermsofprocesscompu-terisationintheManufacturingsector.
Course of events
In2008turnoveramountedto€44.6million,adeclineof3.7%comparedtolastyear(2007:€46.4million).
The number of employees working in this divisionamountedto412atend-2008.Staffturnoverof15%waslowerin2008thanin2007.
Organisationally ICT Procos merged both legally andorganisationallywiththeICTSolutionsdivision,withoutlosingstrength.
Developments per sector
Communications & MultiMediaIn 2008 the Communications & MultiMedia marketcontinued to be a dynamic field. Major internationaltelecomssuppliersfacedmajoreconomicsetback,andtheypartlyshiftedactivitiesfromEurope.In2008ICTSolutions,inlinewiththestrategicpointsofdeparture,withdrew further from this dynamic internationalmarkettofocusonusingcompetencesandtechnologiesin this market in other segments within the Nether-landsandtheborderareasinBelgiumandGermany.Inthiscontextonemaythinkofthefollowing:softwaredevelopmentskills,combinedwithsupplementaryskillsinthefieldoftesting,integration,systemarchitecture,securityandMultiMedia.
DefenceIn2008thefirststepsweremadetowards increasingthismarketinthedirectionofpublicsafetyandsecurity.Ofold times ICT solutionsactivitieshavebeen in theDefence market among a limited number of majorclients.
Also in 2008, Royal Netherlands Army budgets wereto a great extent invested in peace operations andequipmentreplacement;budgetslessdirectlytargetedDutchindustry.In2009thecurrentmarketgrowthfromDefence to Public Safety and Security will continue.Onemaythinkintermsofclientssuchaspolicedepart-mentsandsecurityoperations.
LogisticsServicesoftheLogisticssectorfocusonthreeseparate
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segments:•PortLogistics•MaterialHandling•Warehousing&Distribution.
In 2008 the Logistics sector saw sharper marketingand sharper profiling in various segments. A modestgrowthwasrealisedthroughoutthese.Theshiftfromsecondment-basedservicestoprofessionalservicesandprojectswitha surplusobligationcontinued in2008.In linewithour roadmap for theupcomingyearsweexpectthismovementtocontinuein2009.
In the Port Logistics segment ICT, based on its goodclient relationships and relevant domain knowledge,succeeded in retaining its good position. Also, ICTmanaged towelcomenew clients. Towards year endthemostimportantplayersinthismarketfacedamajorturnover setback. In 2009 the economic recession isexpected to have a growth-delaying effect on goodstranshipmentinthePortofRotterdam.
ToICT,in2008MaterialHandlingprovedtobeastablesegment usually involving sizeable and long-termprojects among clients. For 2009 too ICT expects arelatively stablemarket for this segment. The combi-nation of technical know-how and relevant domainknowledgeisexpectedtoremainscarcealsoin2009.
For ICT, the third segmentwithin the logistics sector,Warehousing&Distribution,showedlimitedgrowthin2008.Thissegmentexperiencedmostpressurein2008.Forthissegmentwehaveadjustedgrowthexpectationsdownwards.Nevertheless,ICTdoesforeseenewpossi-bilities for computerisation projects that result fromcost-saving measures which can be realised by usingICTsolutions.
ManufacturingServices of ICT Solutions within the Manufacturingsegment (with trade name: ICT Procos) focus on
realisingandmanagingprocessandproductioncontrolsystemsandfactorycomputerisationinseveralmarketsectors such as the chemical and metal industry andthefoodandmixedfeedindustry.As for the Manufacturing sector the year 2008 wastwo-faced.UntilAugust the sector experienced largemarketdemandwithmanyspontaneousrequeststhatcouldbarelybeanswered.The technicalemploymentmarket was overstrained as a result of which theintended autonomous growth could not be realised.Assignments were mainly received in the watermarket.
Towardstheendof2008marketuncertaintyincreasedwhile several clients reduced production levels. Nextyear it is unpredictable now significant growth isexpected. In 2009 ICT Procos will focus more onconventionallesscyclicmarketssuchasthefood,waterandenergymarkets.Andmoreattentionwillbepaidtocyclicmarketssuchaschemicals,metalandmachineconstruction.
Traffic & AutomotiveThe commercial activities in this market were carriedout by InTraffic. InTraffic is a 50/50 subsidiary of ICTandengineeringconsultantsMovares.In2008turnoverfailed to increase as was initially expected. ProRailturnoverwasinlinewithexpectationsremainingatthe2007 level. Turnover among other clients was disap-pointing;itwaslowerthanin2007.
For InTraffic,ProRail is still by far the largest client intheTraffic&Transportmarket. Policy for the comingyears will focus primarily on increasing other clients’turnover, such as NS Reizigers and regional and citytransportcompanies.Also,severalcentralandregionalpartsoftheDirectorate-GeneralforPublicWorksandWaterManagement(Rijkswaterstaat),aswellasintheprovinces,willrepresentasignificanttargetgroup.Thefull-servicepackageofserviceswhichInTrafficdeliverstoProRailwillbetranslatedtootherclients’needs.
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Report of the Executive Board
ICT Consultancy
Introduction
ICT Consultancy, under two separate entities known as Improve Quality Services and ICT NoviQ, focuses on activities such as Requi-rements Engineering and Architecture, and Testing and Quality management.
ICT NoviQ develops and provides innovative serviceswith decisive added value for companies developingsoftware and systems. NoviQ provides consultancy,services and training in Configuration Management,Quality Assurance, Requirements Engineering andArchitecture.
ImproveQuality Services (Improve) is a specialist firmfocusing on high-quality and innovative services inthefieldofTestingandQualityManagement.Improveprovides advice, professional training and secondsconsultants. Especially at testing level Improve is aprominent company in the Dutch and internationalmarket. ICT currently has a50% strategic interest inImprove.
Strategy
To distinguish itself on the markets concerned, ICTmustbecapableofprovidingaddedvalueforclients’processes and product development. This involvesactivities such as Requirements Engineering andArchitectureontheonehandandTestingandQualityManagementontheother.ICThasdecidedtofocusontheseactivitiesthroughseparateentities.
Course of events
Last year ImproveQuality Services againmanaged toincreaseturnoverandprofitinadifficultmarket,partlyon thebasisofa risingnumberof staff. In2008 ICT
NoviQpaidcarefulattentiontoincreasingnamerecog-nition.
The2008turnoveramountedto€2.3million (2007:€1.9million), representingan increaseofover20%.Atyear-end2008thedivisioncounted22membersofstaff.
ICT NoviQTo NoviQ 2008 was a dynamic year. The divisionsucceededinincreasingnamerecognitionbyattendingandspeakingduringseminars,workshopsandconfe-rences,publishingonaregularbasis intradejournalsandparticipatinginorganisationsandworkinggroupsinvariousfields.Also,NoviQwelcomedanumberofnew clients. Intensifying cooperation with other ICTdivisions will further strengthen NoviQ’s position in2009.
Improve Quality Services Improve’smainfocusisontheDutchmarketwherethedivision,inadditiontoEmbedded(especiallythemedicalindustry)andSolutions,alsopaysspecialattentiontotheofficecomputerisationmarket,wherebyespeciallythefinancial sectormatters significantly. Improvehasnowbecomeamajor(preferred)supplierofteststafftoanumberofmedium-sizedandlargebanks.IntermsoftesttrainingImproveisapreferredsupplierforseverallargeinternationalcompanies.
Inamarketwheresystemsarebecomingmorecompli-catedandwhereoutsourcing ismoreoftenthecase,structuredtestingbecomesincreasinglyimportant.LastyearImproveonceagainmanagedtoincreaseturnoverandprofitinadifficultmarket,partlyonthebasisofarisingnumberofstaff.
For2009Improve,basedonitsstrongmarketposition,prominent profile, as well as the diversified serviceprovision and market segments, and despite thedifficultmarketconditions,expectstorealiseahealthyturnoverandprofit.
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Report of the Executive Board
ICT Germany
Introduction
The ICT Germany division, under the name ICT Software Engineering GmbH, focuses on the German market. ICT Software Engineering GmbH in Germany specialises in software development services in the fields of embedded software, industrial solutions (computeri-sation) and industrial standard software. Services range from preparing requirements through development followed by project management to commencement of operations on the scene. The engineers and the technicians develop specific software solutions and ensure integration in the system environments. During these processes quality management is actively supported. The company provides solutions in Traffic & Automotive, Manufacturing/Compu-terisation, Aviation and Telecommunications.
Strategy
TostreamlineactivitiesinGermany,in2008ICTstartedoperatingfromaGermanholdingstructure.Thelong-termstrategyforICTGermanyremainsunalteredbeinggrowth and expansion of activities. The objective of500membersofstaffnowappearsunfeasiblebeforeyear-end2010.Duetoeconomicconditionsin2009thedivisionwill inthefirstplacefocusonhealthyopera-tional management and expansion of activities. Alsoin terms of acquisitions, and again given the marketconditions,areservedapproachwillbepursued.Fromallappearancesshouldeconomypickup inGermany,the circumstances regarding themarket for ICT’s keyactivitiesseemunaltered.Insuchcasethetenderandsecondmentmarketwillmakeastrongcome-back.
Course of events
In2008tootheactivitiesofICTGermanycontinuedtoimprove.On theonehandgrowth resulted from theacquisitionof !Zip inNeustadton1 January and theexpansionoftheinterestinLineasAutomotiveto100%latein2008.Ontheotherhandtheyearalsowitnessedstrong autonomous growth (60%). And in terms ofmarketexpansionimportantstepsweremadein2008.Whilebyyear-end2007lessthan95%wasstillgearedtowards Embedded Software Engineering services intheAutomotivemarket, in2008 thepercentagehadgone down to approximately 75%. The other 25%mainly involvedtheManufacturingmarketandmuchmorefocusedonindustrialcomputerisation.
To realise further growth and expansion of activities,2008 saw major efforts invested in the internalorganisation.Managementwas renderedmuchmoreprofessional while the organisation was structuredsuch as to support further growth. As of 1 October2008allactivitiesarecarriedoutunderthenameICTSoftwareEngineeringGmbH.BybeingpartofalargerorganisationassignmentscannowbecarriedoutatahigherlevelallowingICTGermanytoqualifyforlargerprojects.
ICTGermany’s turnover in2008amountedto€22.8million,a146%growth.Byyear-end2008thisdivisioncounted251membersofstaff.
ISSDTheacquisitionof!ZipAutomationGmbHinNeustadtoffered ICT Software Engineering GmbH in Germanyaccess to the field of Industrial Standard SoftwareDevelopment (ISSD). In 2008 many prospects wereidentifiedforthisbusinessandmanynewclientswerewelcomed. Eventually ISSD-related business in 2008increasedbyapproximately30%.
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GiventhecurrenteconomicsituationtheISSDactivitiesare expected to slightly decline in 2009. Nevert-heless, and considering the opportunities that existin theGermanmarket, thebusinesscouldbe furtherexpandedshouldmarketpickup.
Computerisation Theacquisitionof!ZipAutomationGmbHinNeustadtmeantstrongexpansionof industrialcomputerisationactivities within ICT Software Engineering GmbH.Heregrowthmainlysufferedfromlackofexperiencedengineers. Recruiting and training new staff proveda complicated and time-consuming process. Conse-quently,activitiesexpandedonlyslowlyin2008.
For2009weexpectclientstobereserved inthefirstplace, but we expect further expansion once theeconomy picks up again. Recruiting and training therightstaffremainsapointofattention.
We expect to expand markets particularly throughindustrial computerisation. Examples of markets inwhichwemadethefirststepsin2008andinwhichweintendtotakefurthersteps in2009arethechemicalsector,thefoodsector,energyandmanufacturing.
AutomotiveIn the Automotive market ICT Software EngineeringGmbH realised substantial growth at all locations,amountingto50%atsome.In2008theorganisationwas strongly professionalised to welcome over 100employees to serve clients and projects that werecarried out internally. The new organisational struc-tureswillallowustocontinuetogrowintheyearstocome.
In 2008 we succeeded in increasing EmbeddedAutomotivecompetencesespeciallyinthefieldofinfo-tainmentbutalsoelectronicsandmotormanagementsystems.
ICT’s activities are mainly geared towards Researchand thedevelopingofnewcars.Theexistingcrisis iscurrently mainly interfering at the production level.Nevertheless,in2009clientsareprovingreservedwhenit comes to issuingassignments.Weclearlyhave theimpressionthatworkexistsbutthatclientsarebeingcarefulinviewofworlddevelopments.Partlybecauseofthis, thefocus in2009willbe lessongrowthandmoreonhealthyoperationalmanagement.
Given the many long-term relationships with clientsand the good client spread this allows us to remainoptimisticaboutthefutureofthismarket.
Organisation and Personnel
ForICT,motivatedemployeesareacriticallyimportantcondition for the company’s success. That ICT paidcareful attention to this was demonstrated by thefact that in 2008 ICT qualified as a good companywith an encouraging working environment. ICTwas nominated for a national hallmark based onscientific research "the Personal DevelopmentHallmark". ICT is proud of this and will continue toinvest efforts in a stimulating working environment.Following employee satisfaction research conductedlate2006,2008sawafollowingresearchassignmentorganised among staff. The positive aspect herewas that of the four ‘points for improvement’ thatwere spotlighted in 2006, ‘career counselling anddevelopment’, ‘communication’, ‘ organisation’ and‘remuneration’; three received higher marks in 2008thanin2006.‘Organisation’remainedunchanged.The upgrade plans implemented in 2007 and 2008providedthe foundationfor these improvements.Forinstancein2008welaunchedtheTalentDevelopmentProgrammeandcontinuedtheLeadershipDevelopmentInitiative. ICTwillcontinueto invest infurther impro-vements.
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To properly introduce new employees, allowingthem to make their way in ICT, more introductiondayswereheld in2008.On thesemuchappreciateddays the employees were actively introduced toICT’s structure, culture and working methodology.OnesignificantmilestoneforICTwastheharmonisingof theemploymenttermsof formerProcosstaff.Theharmonisation process was voluntary and has nowbeencompletedsuccessfully;80%ofstaffswitchedtoICT’stermsofemployment.In 2008 ICT (for part of the organisation) obtainedthe ISO9001certificatewhichdemonstrated itshighstandardofwork.
Absenteeism and staff turnover
In2008absenteeismremainedat3.2%.
Staffturnoverin2008amountedto15%(2007:18%)
Totalstaffingintheyearunderreviewincreasedfrom941to1,015on31December2008.
Barendrecht,20April2009TheExecutiveBoard
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Chapter �: Financial Statements 200�
Consolidated balance sheet on 31 December 200�
Consolidated profit and loss account for 200�
Consolidated changes of the shareholders’ equity on 31 December 200�
Consolidated cash flow statement for 200�
Notes to the consolidated financial statements
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Financial Statements 200�
Consolidated balance sheet at 31 December 2008
(Before profit appropriation) (x € 1,000) Note 2008 2007
Assets FIXED ASSETS
Tangible fixed assets 6) 2,763 1,897
Intangible fixed assets 7) 24,347 17,835
Financial fixed assets 8) 30 30
Deferred taxes 8) 204 291
27,344 20,053
CURRENT ASSETS
Trade and other receivables 10) 26,863 26,260
Corporate tax 1,805 1,261
Cash and cash equivalents 11) 9,209 12,420
37,877 39,941
Total assets 65,221 59,994
Liabilities
SHAREHOLDERS’ EQUITY *) 12)
Issued capital 875 845
Share premium 8,411 8,476
Issued options 124 124
Deducted profit 30,556 25,591
Profit for the year 5,288 6,081
45,254 41,117
LONG-TERM LIABILITIES
Deferred taxes 29) 234 -
Received in advance 14) 1,000 1,200
1,234 1,200
CURRENT LIABILITIES 15)
Trade creditors 3,388 2,747
Taxes and social insurance premiums 6,419 4,458
Other current liabilities 8,926 10,472
18,733 17,677
Total liabilities 65,221 59,994
*) Total shareholders’ equity and total net profit are attributable to equity holders of the parent.
Consolidated balance sheet at 31 December 2008
(Before profit appropriation) (x € 1,000) Note 2008 2007
Assets FIXED ASSETS
Tangible fixed assets 6) 2,763 1,897
Intangible fixed assets 7) 24,347 17,835
Financial fixed assets 8) 30 30
Deferred taxes 8) 204 291
27,344 20,053
CURRENT ASSETS
Trade and other receivables 10) 26,863 26,260
Corporate tax 1,805 1,261
Cash and cash equivalents 11) 9,209 12,420
37,877 39,941
Total assets 65,221 59,994
Liabilities
SHAREHOLDERS’ EQUITY *) 12)
Issued capital 875 845
Share premium 8,411 8,476
Issued options 124 124
Deducted profit 30,556 25,591
Profit for the year 5,288 6,081
45,254 41,117
LONG-TERM LIABILITIES
Deferred taxes 29) 234 -
Received in advance 14) 1,000 1,200
1,234 1,200
CURRENT LIABILITIES 15)
Trade creditors 3,388 2,747
Taxes and social insurance premiums 6,419 4,458
Other current liabilities 8,926 10,472
18,733 17,677
Total liabilities 65,221 59,994
*) Total shareholders’ equity and total net profit are attributable to equity holders of the parent.
Consolidated balance sheet at 31 December 2008
(Before profit appropriation) (x € 1,000) Note 2008 2007
Assets FIXED ASSETS
Tangible fixed assets 6) 2,763 1,897
Intangible fixed assets 7) 24,347 17,835
Financial fixed assets 8) 30 30
Deferred taxes 8) 204 291
27,344 20,053
CURRENT ASSETS
Trade and other receivables 10) 26,863 26,260
Corporate tax 1,805 1,261
Cash and cash equivalents 11) 9,209 12,420
37,877 39,941
Total assets 65,221 59,994
Liabilities
SHAREHOLDERS’ EQUITY *) 12)
Issued capital 875 845
Share premium 8,411 8,476
Issued options 124 124
Deducted profit 30,556 25,591
Profit for the year 5,288 6,081
45,254 41,117
LONG-TERM LIABILITIES
Deferred taxes 29) 234 -
Received in advance 14) 1,000 1,200
1,234 1,200
CURRENT LIABILITIES 15)
Trade creditors 3,388 2,747
Taxes and social insurance premiums 6,419 4,458
Other current liabilities 8,926 10,472
18,733 17,677
Total liabilities 65,221 59,994
*) Total shareholders’ equity and total net profit are attributable to equity holders of the parent.
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Consolidated profit and loss account for 2008 (x € 1,000) Note 2008 2007
Revenue 19) 96,666 86,194
Other income 20) 824 2,091
97,490 88,285
Raw materials and consumables and work subcontracted
9,961 8,908
Employee costs 21) 57,274 51,592
Depreciation 6) 746 477
Other operating expenses 27) 20,236 19,538
Other extraordinary expenses 27) 2,500 -
22,736 19,538
TOTAL OPERATING EXPENSES 90,717 80,515
Operating profit *) 6,773 7,770
Profit of participating interests 28) 133 171
Interest income and similar income 702 538
Interest charges and similar costs (284) (198)
551 511
PROFIT BEFORE TAXATION 7,324 8,281
Tax burden 29) 1,929 2,200
NET PROFIT **) 5,395 6,081
Minority shareholder’s share of net profit
107
-
Equity holders of the parent’s share of net profit **)
5,288
6,081
Earnings per ordinary share in € 30) € 0.62 € 0.74
Diluted earnings per ordinary share in € 30) € 0.62 € 0.72
*) Note 27) includes an item of € 2,500,000 concerning established fraud. Excluding this fraud the operating profit in 2008 amounted to € 9,273,000 (2007: € 7,770,000).
**) In the financial statements and the report of the board of directors the term net profit is equated with the equity holders
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Consolidated statement of changes in equity at 31 December 2008 2008 (x € 1,000) Issued
capital Share
premium Granted options
Deducted profit *)
Result financial
year
Total
1 January 2008 845 8,476 124 25,591 6,081 41,117
Net profit 2008 - - - - 5,288 5,288
Total income and expenses - - - - 5,288 5,288
Adding net profit 2007 to retained profit - - - 4,965 (4,965) -
Dividend paid 2007 30 (65) - - (1,116) (1,151)
31 December 2008 875 8,411 124 30,556 5,288 45,254
2007 (x € 1,000) Issued
capital Share
premium Granted options
Retained profit *)
Profit for the year
Total
1 January 2007 845 8,476 62 23,067 6,212 38,662
Net profit 2007 - - - - 6,081 6,081
Total income and expenses - - - - 6,081 6,081
Adding net profit 2006 to retained profit - - - 1,318 (1,318) -
Dividend paid 2006 - - - - (4,894) (4,894)
Options exercised 2007 - - - 1,206 - 1,206
Granted options - - 62 - - 62
31 December 2007 845 8,476 124 25,591 6,081 41,117
*) At the end of 2007 the item treasury shares is balanced under retained profit. At the end 2008 there were no treasury
shares.
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Consolidated cash flow statement for 2008 Under the direct method (x € 1,000) 2008 2007
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from consumers 111,507 99,718
Payments to suppliers and employees (101,408) (90,615)
10,099 9,103
Dividend received 133 171
Interest received 758 585
Interest paid (284) (198)
Income tax paid (4,159) (2,254)
(3,552) (1,696)
Net cash flow from operating activities 6,547 7,407
INVESTING ACTIVITIES
Net addition to tangible fixed assets (1,531) (1,099)
Acquisition of group companies (6,877) (7,318)
Net cash flow from investing activities (8,408) (8,417)
FINANCING ACTIVITIES
Exercised options - 1,206
Dividend paid to third party interests (199) -
Dividend paid (1,151) (4,894)
Net cash flow from financing activities (1,350) (3,688)
Net cash flow (3,211) (4,698)
Cash and cash equivalents at 31 December 9,209 12,420
Cash and cash equivalents at 31 January 12,420 17,118
Increase / (decrease) in cash and cash equivalents (3,211) (4,698)
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Financial Statements 200�
Notes to the consolidated financial statements
1) Corporate information
ICTAutomatiseringN.V.isapubliclimitedcompanyincorporatedandestablishedintheNetherlands.TheaddressofICTAutomatiseringN.V.is:
Kopenhagen92993LLBarendrechtTelephone:0031180646000Fax:0031180646002
TheconsolidatedfinancialstatementsofICTAutomatiseringN.V.Barendrechtfortheyearended31December2008werepreparedbytheExecutiveBoard,andjointlysignedtogetherwiththeSupervisoryBoardon20April2009andpresentedforadoptiontotheGeneralMeetingofShareholdersscheduledon27May2009.
TheICTGroupisanorganisationthatfocusesondevisingadvancedsolutionsforclients.Everydayover1,000staffdeviseanddesigndistinctivecapabilitiesforawiderangeofICTapplications.ThismeansthatICTiscurrentlyoneofthelargest,independentDutchsoftwaredevelopersforclients.TheICTGroupconsistsoftheNetherlandsandGermanydivisions.IntheNetherlandstheICTGroupismadeupoffourdivisions:ICTEmbedded(embeddedsoftware is software that formsan integralpartofotherproducts), ICTSolutions (technical computerisation)andICTConsultancy(consultancywithregardtoarchitecture,configurationmanagementandtesting)andICTGermany(embeddedsoftwareandtechnicalcomputerisation).Thebusinessoperationsof ICTAutomatiseringN.V.arefurtherdetailedinthisannualreport.
Statement of complianceTheconsolidatedfinancialstatementsofICTAutomatiseringN.V.havebeendrawnupinaccordancewiththeInternational Financial Reporting Standards (IFRS) as adopted by the European Union and interpretations asissuedbytheInternationalFinancialReportingInterpretationsCommittee(IFRIC).TheprinciplesofthecompaniesinvolvedintheconsolidationarealsobasedonIFRS.
Changes in accounting policiesThegeneralaccountingprinciplesapplied in thefinancial year2008areconsistentwith thoseapplied in thepreviousyear.Changesandfuturechanges intheexplanatoryrequirementsasaresultofnewand/orrevisedprescribedstandardsandinterpretationshavebeenincorporatedinthe2008financialstatementsasfaraspossiblebuthavenoeffectonaccountingprinciples.ThenewinterpretationsrefertoIFRIC11concerningtheprocessingofoptionschemesingroupsharesandtreasurysharesandIFRIC14concerningtheevaluationofthesurpluslimitationofpensionentitlementsaccountedforasanassetonthebasisofIAS19personnelremuneration.
Changes in estimatesInthefinancialyear2007theestimatedusefuleconomiclifeofcomputerequipmentundertheitemtangible
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Financial Statements 200�
fixedassetswasalteredfromthreetofiveyearsandwasprocessedinthefinancialstatements.Thealterationconcernsextensionoftheusefuleconomiclifefrom3to5years,wherebytheeffectin2007amountstoapproxi-mately€0.3million,whichwillalsoapply infutureperiodsassumingsimilarannual investments. In2008nochangesinestimatesoccurred.
Future alterationsTheIASBregularlypublishesnewreportingstandards,adjustmentstotheexistingstandardsandinterpretations.ThesemustbeacceptedbytheEuropeanUnion.Thefollowingnewstandards,adjustmentstoexistingstandardsandinterpretationsaspublishedbytheIASBandwhicharerelevantforICTAutomatiseringshallapplyasof1January2009.
IFRS 8 Operating segmentsInNovember2006the IASBpublished IFRS8.Atthetimeoftakingeffect IFRS8replaces IAS14SegmentedInformation.ICTAutomatiseringiscurrentlystudyingtheeffectontheconsolidatedfinancialstatements.
IFRSBusinessCombinations–revised.IFRS3appliestoacquisitionsthatoccurinfinancialaccountingcommencingafter1July2009.IFRS3introduceschangesintheprocessingofacquisitionsthateffectsthevalueofgoodwill,theresultsoftheperiodinwhichanacquisitionoccursandfutureresults.ICTAutomatiseringiscurrentlystudyingtheeffectontheconsolidatedfinancialstatements.
IAS 1 Presentation financial statements (revised)ThisrevisedstandardwaspublishedinSeptember2007andwillapplytofinancialyearscommencingonorafter1 January2009.This standarddistinguishes changes in shareholders’ equity relating to transactionswith theownersofthecompanytochangeswhicharenottherebyrelated.Thestatementofchangesoftheshareholders’equityonlycontains informationontransactionswiththeowners,wherebyotherchangesarepresentedasasingleitem.Additionally,thestandardintroducesanoverviewofachievedandnot-achievedresults,inwhichallincomeandexpensesarepresentedintheprofitandlossaccount,andallitemsofthetotalresult.ICTAutoma-tiseringiscurrentlystudyingtheeffectontheconsolidatedfinancialstatements.
IFRS 2 Shared-based payments (revised)InJanuary2008theIASBpublishedanamendmenttoIFRS2containingaclearerdefinitionoftheterm‘vestingcondition’,aswellasregulationsconcerninganallocationcancelled.TheGroupappliesthisamendmentasof1January2009.TheapplicationisnotexpectedtohaveconsequencesfortheGroup’sresultandfinancialpositioninviewofthefactthattheeventswhichthisinterpretationreferstodidnotoccur.
Improvements to the IFRSInMay2008theIASBpublishedvariousamendmentstoitsstandardsprimarilyintendedtoeliminateinconse-quential featuresandclarifyanumberofpotentiallyambiguouspoints.Transitionalprovisionsapply foreachstandard.ICThasassessedtheextenttowhichtheimprovementscouldhaveanimpactontheICTGroup:•IAS31Interests in jointventures: If inaccordancewith IAS39a jointventure is includedatfairvalue,then
theonlyrequirementthatappliesbasedonIAS31isthatinformationmustbeprovidedontheparticipant’sobligationsinthejointventure,includingsummarisedfinancialinformationontheassets,liabilities,incomeand
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Financial Statements 200�
expenses.ThisamendmenthasnoconsequencesfortheGroupbecauseitdoesnotincludeitsjointventuresatfairvalue.
•IAS 36 Impairment of assets: If the cash flows are discounted to estimate the ‘fair value less the cost ofsales’, thenadditional informationconcerningthediscountratemustbeprovided,which isconsistentwiththe information thatmustbeprovided if cashflowsarediscounted to estimate the ‘going-concern value’.Thisamendmenthasno immediateconsequences for theGroup’sconsolidatedfinancial statements,as therealisablevalueofitscashflowgeneratingunitsiscurrentlyestimatedat‘going-concernvalue’.
•OtherimprovementsarenotexpectedtoeffecttheICTGroup’sfinancialreporting.
2) Basis for the financial statements
Basis of consolidationTheconsolidatedfinancialstatementscomprisethefinancialreportingofICTAutomatiseringN.V.andallsubsi-diaries(hereinafterthe‘ICTGroup’)inaccordancewiththemethodoffullconsolidation.SubsidiariesarethosecompaniesinwhichtheICTGrouphasadecisiveinfluenceonpolicy.
Minority interests represent the share inprofitsor lossesand in thenetasset value thatarenotheldby theICTGroup.Theyarepresentedseparatelyintheprofitandlossaccountandintheshareholders’equityintheconsolidatedbalance sheet, next to the equity attributed to theholders of equity instruments of theparentcompany.Acquisitionsofminorityinterestsareaccountedforaccordingtothe‘parententityextension’method,wherebythedifferencebetweenthepaymentandthebookvalueoftheacquiredshareinthenetassetvalueareaccountedforasgoodwill.
Thefinancialinformationofjointventuresisincludedintheconsolidationinaccordancewiththeproportionalconsolidationmethod.AjointventureisdefinedasacompanyinwhichICTAutomatiseringN.V.exercisesjointcontrolbyvirtueofashareholder’sagreement.Theassetsandliabilities,andtheincomeandexpensesofajointventureareincludedintheconsolidationinproportionallytotheinterestheldinthecompany.Profitsandlossesofsubsidiariesareincludedintheconsolidationfromthedateoftheacquisitionorincorpo-ration.ThecompanyprofitandlossaccounthasbeendrawnuponapplicationofsectionBook2Section402oftheDutchCivilCode.
Joint venturesICTAutomatiseringN.V.participatesinvariousjointventures,alsocalled‘jointlycontrolledentities’,meaningaco-operativeagreementhasbeencreatedinwhichoneormorepartiesundertakeaneconomicactivityinwhichtheyexercisejointcontrol.ICTAutomatiseringN.V.,inprocessingthesejointventuresintheconsolidatedbalancesheet,appliesthemethodofproportionalconsolidation.ToapplythismethodconsistentlythefiguresofthejointventurehavebeendrawnupinaccordancewithInternationalFinancialReportingStandards.ThejointventuresoperateonthebasisofthesamefinancialyearasICTAutomatiseringN.V.
IfICTAutomatiseringN.V.bringsassetsintoajointventureordisposesofthem,thentheincorporationofanyprofitorlossfromthetransactionmustreflecttheeconomicreality.ICTAutomatiseringN.V.onlyincludesthatpartofaprofitorlossthatisattributabletotheinterestsoftheotherparticipants.
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Financial Statements 200�
Principles of foreign currency translationTheconsolidatedfinancialstatementsasat31December2008areshownineuros.Assetsandliabilitiesdenomi-natedinforeigncurrenciesaretranslatedintoeurosattheratesofexchangerulingonthebalancesheetdate.Transactionsinforeigncurrenciesaretranslatedattherateofexchangerulingatthedateoftransaction.Exchangegainsandlossesaretakentotheprofitandlossaccount.
Significant judgements and estimatesThekeyassumptionsconcerninguncertaintiesinestimates,asonthebalancesheetdate,thatrepresentasigni-ficantriskofmaterialadjustmenttoassetsandliabilitiesinthenextfinancialyeararediscussedbelow.
Valuation of fixed price projectsDue to the unique character and high degree of uncertainty associated with fixed-price projects, it is notpossibleforICTAutomatiseringN.V.todeterminethefuturecostsandinterimprojectresultsinafullyreliablemanner.Consequently,theresultsoffixedpriceprojectsareaccountedforbyICTAutomatiseringN.V.onprojectcompletion.
Acquisitions and fair value estimatesGoodwillarisingfromtheacquisitionofabusinessisvaluedatcostuponinitialrecognition,thisbeingthediffe-rencebetweenthecostofthebusinessandtheinterestofICTAutomatiseringN.V.inthenetfairvalueoftheidentifiableassets,liabilitiesandconditionalliabilities.Theindividualvaluationoftheidentifiableassets,liabilitiesand conditional liabilities involves estimates (such as for example the expected cash flows and the discountfactor).Thegoodwillisreviewedannuallyorsooner,ifeventsorchangesincircumstancesindicatethatthebookvaluehasundergonepossibleexceptionalimpairment.
Exceptional impairment of goodwillAnexceptionalimpairmentofgoodwillrequiresanestimateofthegoing-concernvalueofthecashflowgeneratingunitstowhichthegoodwillisallotted.Toestablishagoing-concernvalue,ICTAutomatiseringN.V.mustestimatetheexpectedfuturecashflowsofthecashflowgeneratingunitandalsodetermineasuitablediscountfactor,inordertocalculatethepresentvalueofthecashflows.
Valuation of pensionsAtleastonceayearICTAutomatiseringN.V.reviewstheprinciplesforvaluingthepensionplan.Thisrequiresanestimateofactuarial andfinancialprinciples to valuepensionobligationsand the relatedplanassets. ForthevaluationofpensionbenefitliabilitiesICTAutomatiseringN.V.hastoestimatefutureoutgoingcashflows,whichinturndependonestimateswithregardtotheapplieddiscountfactor,expectedpriceandsalaryrisesasaresultofexpectedemployeecareerdevelopment,disabilityrisksandmortalityrates.Estimatesarealsoneededregarding the returnonplan investments. The estimates aremade consistently dependingon economic anddemographicdevelopments.
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Financial Statements 200�
3) Summary of significant accounting policies
Financial instrumentsThe resultsandcashflowsof ICTare influencedbyvarious factorsofvariablecharacter. ICThasnofinancialinstrumentswhichdonotflowfromnormalbusinessactivities.Currentpolicyisnotaimedatapplyingspecialfinancialinstrumentstocoverrisks.AfinancialassetisnolongerincludedinthebalancesheetwhentherightstoreceivecashflowsfromtheassethaveexpiredandtherisksandbenefitsresultingfromtheassetarenolongercarriedbyICTAutomatiseringN.V.Afinancial liability is cancelledwhen theobligationunder the liabilityhasbeendischarged, cancelledorhasexpired.ICTAutomatiseringN.V.hasnoavailable-for-salefinancialassetsorliabilities(withtheexceptionoftheparticipation reportedunderfinancialfixedassets),held-to-maturity investmentsor loansother thandebtors,creditorsandotherreceivablesandpayables.NorhasICTAutomatiseringN.V.acquiredanyfinancialassetsforthepurposeofsellingtheminthenearfuture.Whenfinancialassetsareinitiallyrecognisedtheyaremeasuredatfairvalueplusdirectattributabletransactioncostsandsubsequentlyvaluedatamortisedcost.OneachbalancesheetdateICTAutomatiseringN.V.determineswhetherafinancialassethasundergoneanexceptionalimpairment.
Tangible fixed assetsTangiblefixedassetsarecarriedatcostnetofstraight-linedepreciationbasedontheassetsconcernednottakingintoaccountanyexpectedresidualvalue.Theannualdepreciationratesareasfollows:Computerequipment20%Equipment20%Where applicable, assets are carried at a lower realisable value. The useful lives and valuation methods areassessedand,ifapplicable,adjustedattheendofthefinancialyear.
Financial fixed assetsFinancialfixedassetsthatareavailableforsale,beingaparticipatinginterestinwhichnosignificantinfluenceisexercised,becausethefairvaluecannotbereliablydetermined,arevaluedatcostwhennecessaryallowingforvalueimpairment.
Deferred tax receivablesDeferredtaxreceivablesareincludedinthebalancesheetasalldeductibletemporarydifferencesandonwardfiscallosses,insofarfiscalprofitispossibleintheforeseeablefuturewithwhichthesecanberealised.Deferredtaxreceivablesandtaxliabilitiesarenetprovideditislegallyenforceableandifthedeferredtaxesarerelatedtothesametaxpayerandthesametaxauthority.
Trade and other receivables Tradereceivablesarecarriedatoriginalinvoiceamount,beingthefairvalueoftheserviceandproductprovisionnetanallowanceforuncollectibles.Thisprovisionismadeifthereisobjectiveevidence(suchastheprobabilityof bankruptcy or a debtor who faces financial difficulties) that the ICT Group will not be able to collect alloutstandingamountsaccordingtotheoriginalinvoice.Thebookvalueofthereceivableisthenreducedwithaprovisionfordoubtfuldebt.Receivablesthathaveundergoneanexceptionalimpairmentarenolongerincludedifitisestablishedthattheyareuncollectible.Otherreceivablesarecarriedatcost,beingthefairvalueoftheperfor-manceatthetimeofinvoicing.Subsequentvaluationofalltradeandotherreceivablesismadeatamortizedcost.
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Financial Statements 200�
Otherreceivablesandliabilitiesincludereceivablesandliabilitiesrelatedtothefixed-priceprojects.Thefixed-priceprojectsarecarriedatcostofalldirecthoursspentonprojectsinprogressandthegoodsandservicespurchasedinrelationtotheprojectatbalancesheetdate.Hours investedarecarriedatthedirectandindirectcostsperemployeeperhour.Thedirectcostsarebasedonsalary,socialsecurityexpensesandotherdirectcostsoftheemployeesinvolveddirectlyattributabletotheproject.Thegoodsandservicespurchasedarecarriedatthepricepaid.Amountsalreadyinvoicedonprojectsaredeductedfromthecapitalizedcostsofeachproject.Anylossesaredeductedfromthecapitalizedcostsandtakentotheprofitandlossaccount.Anestimationoftheexpectedprojectcosts isnecessarytoforeseeanyof these losses.Positivenetcontractsare includedundersales tobeinvoicedandnegativenetprojectsareincludedundercurrentliabilities.Theprogressoftheprojectsismeasuredbythehoursspent,amountsinvoicedandinternalmanagementinformation.
Cash and cash equivalentsCashandcashequivalentscomprisecashatbanks.
Treasury sharesEquityinstrumentswhicharereacquired(treasuryshares)aredeductedfromshareholder’sequity.NogainorlossisrecognizedintheprofitorlossaccountonthepurchaseorsaleofICTAutomatiseringN.V.’sequityinstruments.
Long-term and current liabilitiesLong-termandcurrentliabilitiesarecarriedatcost,beingthefairvalueatthetimetheliabilitiesarise.Subsequentvaluationoccursatamortisedcost.
Business acquisitions and goodwillBusinessesareincorporatedbyICTAutomatiseringN.V.onthebasisoftheacquisitionmethod.Theapplicationofthismethodmeans identificationoftheacquiringparty,andontheacquisitiondate,thedeterminationofthecostsofthebusiness,allocatingthecostofthebusinesstoacquiredassets,andadoptedandconditionalliabilities.
On the date of acquisition, ICT Automatisering N.V., as acquiring party, includes the goodwill acquired in abusinessasanassetvaluedatcost,beingtheamountbywhichthecostofthebusinessexceedstheinterestoftheacquiringpartyinthenetfairvalueofidentifiableassets,liabilitiesandconditionalliabilities.ICTAutomatiseringN.V.includesgoodwillinthebalancesheetunderintangiblefixedassets.Initialnegativegoodwillisimmediatelyprocessedintheprofitandlossaccount.
Thegoodwillacquiredinabusinessisnotamortised,butisverifiedannuallyagainstimpairmentormorefrequentlyifeventsorchangesincircumstancesindicatethatthegoodwillhaspossiblysufferedimpairment.Tocheckthis,thegoodwillarisingfromthebusinessfromacquisitiondateisallocatedtothecashflowgeneratingunitwhichisexpectedtobenefitfromsynergywiththebusiness.TheunittowhichgoodwillmaybeallocatedrepresentsthelowestlevelwithintheICTGroupanddoesnotexceedaprimaryorsecondarysegmentoftheICTGroup.Animpairmentisestablishedbyassessingtherealisablevalueofthecashflowgeneratingunitbenefitingfromthegoodwill.Iftherealisablevalueislowerthanthebookvalue,thentheimpairmentisincludedasaloss.Ifabusinessissoldthenthedifferencebetweenthesalespriceandthetotalnetassetvalueandcapitalizedgoodwillisaccountedforintheprofitandlossaccount.
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Financial Statements 200�
PensionsUntil31December2007ICTAutomatiseringN.V.hadtransferredthestaffpensionschemetoStichtingPensioen-fondsICT.In2007ICTAutomatiseringN.V.decidedtodirectlytransferthepensiontotheinsurancecompanyasof1January2008andwithouttheinterferenceofthecompanypensionfund.On1January2008anewpensioncontractwasenteredintowiththeinsurer.Forstaffwhowerealreadyemployedon1January2008andwhofallunderthecompanypensionfund’spensionscheme,thepensionhasbeendirectlytransferredtotheinsurancecompany.ThepensionschemeforthisclosedgroupwillbecontinuedwiththeexceptionofseveraladjustmentsregardingalterationstothePensionAct. In2008allassetsand liabilitiesofStichtingPensioenfonds ICTweretransferredtotheinsurancecompany.StichtingPensioenfondsICThasbeenwoundup.
AccordingtoIFRS,thepensionschemethatappliestotheclosedgroupofstaffthatenteredintotheserviceofICTAutomatiseringN.V.andgroupcompaniesuntil1January2008ischaracterisedasaDefinedBenefitPlan.
Under theDefinedBenefitPlan thegrosspensionobligation is carriedat thepresentvalueof theportionofprojectedpensionsattributabletopastservice,takingintoaccountexpectedfuturesalaryincreasestoretirement.Thediscountrateusedtocalculatethegrossobligationisbasedonthemarketrateofinterestrelatingtothetermoftheobligation.Investmentsarecarriedatfairvalue,takingintoaccountanexpectedreturn.Thenetdefinedbenefitliabilityistheaggregateofthepresentvalueofthegrossobligationandactuarialgainsandlossesnotrecognizedreducedbythefairvalueofplanassetsoutofwhichtheobligationsaretobesettleddirectly.Actuarialgainsandlossesarerecognizedasincomeorexpensewhenthenetcumulativeunrecognizedactuarialgainsandlossesattheendofthepreviousfinancialyearexceed10%ofthehigherofthegrossobligationandthefairvalueofplanassetsatthatdate.Thesegainsandlossesareallocatedtotheexpectedaverageremainingworkinglivesoftheemployeesparticipatingintheplan.AnetinvestmentsurplusisnotrecognizedinthebalancesheetofICTAutomatiseringN.V.Thereisnoentitlementtotheinvestmentsurpluses,noranyobligationifaninvestmentdeficitarises.Inthecaseofaninvestmentsurplus,anyactuariallossesnotaccountedforareallocateddirectlytotheunrecognizedinvestmentsurplus.
Anewpensionschemehasbeenenteredintobasedontheavailablepensioncontributionforstaffwhoenteredemploymentasof1January2008.Withregardtoanumberofparticipating interests inthe ICTGrouptherealreadyarepensionagreementswhich inaccordancewith the IFRSaredeemedaDefinedContributionplan.Throughthesearrangementstheemployerannuallydeterminesafixedagreedamountofpensioncontributiononbehalfof theemployees.Aspensioncosts theavailablecontributionsareprocessed in theprofitand lossaccountafterdeductionofemployercontributionsintheyearconcerned.
4) Accounting policies for the establishment of the result
Revenues Revenuesincludegoodsandservicessuppliedtothirdpartiesintheyearunderreview,netofdiscountsandvalue-addedtaxes.Profitsonfixed-priceprojectsarerecognizeduponcompletionoftheproject.Lossesarerecognizedassoonastheyareforeseen.Otherincomerefertothosenotdirectlyassociatedwithcompanyactivities.Operating expensesExpensesarisingfromthecompany’sbusinessoperationsareaccountedforasoperatingexpenses.
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Financial Statements 200�
DepreciationDepreciationoftangiblefixedassetsiscomputedonbasisofafixedpercentageoftheacquisitionvaluelessanyresidualvaluesbasedonexpectedusefuleconomiclives.
LeasesOperatingleasepaymentsareaccountedforproportionatelyasanexpenseintheprofitandlossaccount.
TaxTaxiscalculatedovertheprofitorlossbeforetaxationbasedonthetaxratesinforce,takingintoaccounttaxrelieffacilities.
ICTAutomatiseringN.V.togetherwithitsgroupcompaniesintheNetherlands,butexcludingRijnmondDistri-butieServicesB.V.,AtemexHoldingB.V.andProcosEngineers&ConsultantsB.V.,formsonesinglefiscalentity.AdditiontothisfiscalunitofthenewlyacquiredparticipatinginterestsProcosEngineers&ConsultantsB.VandAtemexHoldingB.V.,andall subsidiaries fallingunder theseoperations iscurrentlyunderscrutinyby the taxauthorities.Tax iscalculatedas ifthegroupcompanieswereautonomoustaxpayers.ThedifferencesbetweenthetaxthuscomputedandthetaxactuallydueisincludedinICTAutomatiseringN.V.’scompanyfinancialstate-ments.
Share-based payment plansUnderthetermsofashareoptionplanforemployeesandmembersoftheExecutiveBoardandSupervisoryBoard,rightshavebeengranted to the foundationStichtingAdministratiekantoor ICTand the foundationStichtingPersoneelsoptieplanICTtoissuedepositaryreceiptsinexchangeforordinarysharesinICTAutomatiseringN.V.administeredbytheminconnectionwithoptionsexercised.AlloptionsgrantedbyICTAutomatiseringN.V.areconsideredbyIFRSasequity-settledtransactions.
AnoptionrepresentstherighttoadepositaryreceiptfromStichtingAdministratiekantoorICTorStichtingPerso-neelsoptieplan ICT.Atermoffiveyearsfromthedateanoption isgrantedappliestoalloptionschemes.Anoptionisstrictlypersonalandcannotbetransferredortraded.Underalmostalltheoptionschemes,optionslapsewhentheholderleavesthecompany.Optionscanbeexercisedforaperiodoffiveyearsatthestipulatedexerciseprice,whichisthesameasthesharepriceatthetimetheoptionsweregrantedorequalstheaveragesharepriceoveranumberofpreviousyears.Theoptionholderisnotentitledtodisposeofthedepositaryreceiptsobtainedasaresultofexercisingoptionswithinaperiodoftwoorthreeyearsfromthestartofthecorrespondingoptionperiod.Afterthisperiodoftwoorthreeyears,theoptionholderhastheopportunityatleasttwiceayear–orasmanytimesasdeterminedbytheboardsofthefoundations,togiveinstructionstosellthedepositaryreceipts.Inthethird,fourthandfifthyearafterthestartoftherelevantoptionperiod,onethirdofthedepositaryreceiptsmaybesoldeachyear.Thepartswhicharenotsoldaccumulateandmaybesoldinanysubsequentyear.
TheICTAutomatiseringN.V.optionsgrantedarecarriedattheirfairvalueandmeettherequirementsforequity-settled transactions under IFRS norms. Accordingly, the fair value of the option is expensed as an employeebenefitcost,basedontheestimatednumbersofoptionsthatwillaccrueoverthevestingperiod.Theoptions
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Financial Statements 200�
aregrantedtoemployees, including(past)ExecutiveBoardandSupervisoryBoardmembersof ICTAutomati-seringN.V.asremunerationintheformofrightstopurchasedepositaryreceiptsforsharesofICTwhereby,insomecases,employeesmayberequiredtoreachaspecificperformanceinordertoobtainunconditionalrightstodepositaryreceiptsforshares.Thecostsofoptionsgrantedarerecognized,togetherwithacorrespondingincreaseinequity,overtheperiodinwhichtheperformanceconditionsarefulfilled,endingonthedateonwhichtherelevantemployeesobtainthefullrightentitledtothegrant(“vestingdate”).
Thecumulativeexpenseforgrantedoptionsrecognizedateachreportingdateuntilthevestingdatearepartlybasedontheexpectednumberofoptionsthatwillultimatelyvest.Noexpenseisrecognizedforgrantsthatdonotultimatelyvest..Ifvestingdependsonamarketcondition,theyaretreatedasvestedirrespectiveofwhetherthemarketconditionissatisfied,providedthatallotherperformanceconditionsaresatisfied.Ifthetermsofashareoptiongrantedaremodified,atleastanexpenseisrecognizedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognizedforanyincreaseinthefairvalueofthetransactionasaresultofthemodification,asmeasuredatthedateofmodification.
Ifashareoptiongrantediscancelledorsettleditistreatedasifithasvestedatanacceleratedpace,andanyexpensenotyetrecognizedfortherightgrantedisrecognizedimmediately.However,ifanewrightissubstitutedforthecancelledright,anddesignatedasareplacementrightonthedateitisgranted,thecancelledandnewrightsaretreatedasiftheywereamodificationoftheoriginalright,asdescribedinthepreviousparagraph.
Thedilutiveeffectofoutstandingoptionsnot coveredby treasury shares is reflectedas sharedilution in thecomputationofearningspershare.
5) Interests in joint ventures
Joint ventures in InTraffic B.V., Improve Quality Services B.V. and Lineas Automotive GmbH (now named ICT Engineering Nord GmbH)ICTAutomatiseringN.V.hasa50%interestinInTrafficB.V.,ajointlycontrolledentitybyICTAutomatiseringN.V.andMovaresNederlandB.V.setupin2003. InTrafficB.V. isanITconsultantandprojectcontractorprovidingservicesforpublictransportationcompanies,systemsuppliersandgovernmentorganisations.
On1January2006ICTAutomatiseringN.V.acquired40%ofImproveQualityServicesB.V.In2007thisinterestwasraisedfrom40%to50%.Theownershipof ImproveQualityServicesB.V. issharedwiththeother50%shareholder.Consequently,ImproveQualityServicesB.V.isprocessedproportionallyintheconsolidatedfinancialstatements.ImproveQualityServicesB.V.providesadviceinthefieldoftesting.
On1May2007ICTAutomatiseringN.V.acquired60%ofLineasAutomotiveGmbH.Overthecourseof2008this interestwasgradually increasedto100%andasof1July2008LineasAutomotiveGmbHhasbeenfullyincorporated in the consolidatedfinancial statementsof ICTAutomatiseringN.V. as a resultof acquiring fullownership.
Theshareof theassets, liabilities, incomeandexpensesof theabove-mentioned jointly controlledentitiesat
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Financial Statements 200�
31December included in the consolidated financial statements, is as follows, whereby the figures of LineasAutomotiveGmbHareexclusivelyincludedinthe2007figures:
(x € 1,000) 2008 2007
Fixed assets 30 88
Current assets 5,712 4,793
5,742 4,881
Current liabilities (3,224) (2,517)
Shareholders’ equity 2,518 2,364
Revenue 10,452 13,238
Costs 9,118 11,472
Net profit after taxation 1,037 1,278
6) Tangible fixed assets
The following table shows the movement of the tangible fixed assets during 2008:
2008
(x €1,000) Computer
equipment Other fixed
assets Total
2008
Total cost at 1 January 10,200 5,393 15,593
Accumulated depreciation at 1 January (9,117) (4,579) (13,696)
Net book value at 1 January 1,083 814 1,897
Changes in value
Investments 1,449 82 1,531
Disposals (1,470) (28) (1,498)
Acquisitions 63 18 81
Total changes in value 42 72 114
Changes in depreciation
Disposals 1,470 28 1,498
Depreciation (520) (226) (746)
Total changes in depreciation 950 (198) 752
Net book value at 31 December 2,075 688 2,763
Total cost at 31 December 10,242 5,465 15,707
Total depreciation at 31 December (8,167) (4,777) (12,944)
2,075 688 2,763
Thefollowingtableshowsthemovementofthetangiblefixedassetsduring2008:
�3
Financial Statements 200�
2007 (x € 1,000)
Computer equipment
Other fixed assets
Total 2007
Total cost at 1 January 9,132 5,018 14,150
Accumulated depreciation at 1 January (8,558) (4,426) (12,984)
Net book value at 1 January 574 592 1,166
Movements in cost
Additions 765 334 1,099
Disposals (149) (86) (235)
Acquisitions 452 127 579
Total changes in value 1,068 375 1,443
Movements in depreciation
Additions 149 86 235
Depreciation (272) (205) (477)
Acquisitions (436) (34) (470)
Total movements in depreciation (559) (153) (712)
Net book value at 31 December 1,083 814 1,897
Total cost at 31 December 10,200 5,393 15,593
Total depreciation at 31 December (9,117) (4,579) (13,696)
1,083 814 1,897
7) Intangible fixed assets (x € 1,000) 2008 2007
Balance at 1 January 17,835 12,990
Changes in goodwill resulting from earn out - 153
Goodwill from acquisitions (refer to note 9) 5,036 4,692
Goodwill from acquiring a minority interest 1,476 -
Balance at 31 December 24,347 17,835
As of 31 December 2008 ICT Automatisering N.V. increased its interest in Lineas Automotive GmbH from 90% to 100%. The difference between the payment and the book value of the acquired interest in the net asset value is included as goodwill through the acquisition of the minority interest.
2007 (x € 1,000)
Computer equipment
Other fixed assets
Total 2007
Total cost at 1 January 9,132 5,018 14,150
Accumulated depreciation at 1 January (8,558) (4,426) (12,984)
Net book value at 1 January 574 592 1,166
Movements in cost
Additions 765 334 1,099
Disposals (149) (86) (235)
Acquisitions 452 127 579
Total changes in value 1,068 375 1,443
Movements in depreciation
Additions 149 86 235
Depreciation (272) (205) (477)
Acquisitions (436) (34) (470)
Total movements in depreciation (559) (153) (712)
Net book value at 31 December 1,083 814 1,897
Total cost at 31 December 10,200 5,393 15,593
Total depreciation at 31 December (9,117) (4,579) (13,696)
1,083 814 1,897
7) Intangible fixed assets (x € 1,000) 2008 2007
Balance at 1 January 17,835 12,990
Changes in goodwill resulting from earn out - 153
Goodwill from acquisitions (refer to note 9) 5,036 4,692
Goodwill from acquiring a minority interest 1,476 -
Balance at 31 December 24,347 17,835
As of 31 December 2008 ICT Automatisering N.V. increased its interest in Lineas Automotive GmbH from 90% to 100%. The difference between the payment and the book value of the acquired interest in the net asset value is included as goodwill through the acquisition of the minority interest.
��
7) Intangible fixed assets
Financial Statements 200�
(x € 1,000) 2008 2007
ICT Solutions B.V. (formerly Procos Engineers & Consultants B.V.)
7,807
7,807 ICT Software Engineering Südwest GmbH (formerly XCC Software GmbH and !Zip Automation GmbH)
5,262
2,971
ICT Software Engineering Nord GmbH (formerly Lineas Automotive GmbH)
7,610
3,389
Other acquisitions 3,668 3,668
24,347 17,835
In2007animpairmenttestwasconductedongoodwillfallingundertheintangiblefixedassetsbyapplyingthemethodofdiscountedprojectedcashflows.Theinternallydeterminedturnovergrowthpercashflowgeneratingunitisbasedonthe2008budget,andtheestimatedfiguresthereafter.Theaverageturnoverincreaseover8yearsatthecashflowgeneratingunitsconcernedwerebetween8and18%.Accounthasalsobeentakenofan8.2%discountrateaftertaxandresidualvaluecalculatedonEBITinyear9continuingover8years.Innoneofthecaseswastheneedtoimpairthegoodwillestablished.In2008anotherimpairmenttestwasconducted.Theinternallydeterminedturnovergrowthpercashflowgeneratingunitisbasedonthe2009budget,andtheestimatedfiguresthereafter.Theaverageturnoverincreaseovereight(8)yearsatthecashflowgeneratingunitsconcernedwerebetween0and10%.Accounthasalsobeentakenofa7.8%discountrateaftertaxandresidualvaluecalculatedonEBITinyear9continuingover8years.Innoneofthecaseswastheneedtoimpairthegoodwillestablished.Ontheassumptionthatthe2009turnoverandEBITisthesameasin2008andthegrowthfactorintheyears2010and2016islimitedtopercentagesbelow10%wherebythediscountrateishigherthan7.8%,therewillstillbenoneedforanimpairment.
Theparticipatinginterestconcernsa50%interestinStartAutomationLtd.inMalacky,Slovakia,carriedatcostbecauseofthenon-availabilityofthefairvalue.
Thegoodwillconcernsthefollowingcashgeneratingunits:
8) Financial fixed assets and deferred taxes
The movement in the participating interests item is as follows: (x € 1,000) 2008 2007
Balance at 1 January 30 30
Additions - -
Withdrawals - -
Balance at 31 December 30 30
The participating interest concerns a 50% interest in Start Automation Ltd. in Malacky, Slovakia, carried at cost because of the non-availability of the fair value. The movement of deferred taxes item is as follows: (x € 1,000) 2008 2007
Balance at 1 January 291 742
Additions - -
Withdrawals 87 451
Balance at 31 December 204 291
The movement in the participating interests item is as follows: (x € 1,000) 2008 2007
Balance at 1 January 30 30
Additions - -
Withdrawals - -
Balance at 31 December 30 30
The participating interest concerns a 50% interest in Start Automation Ltd. in Malacky, Slovakia, carried at cost because of the non-availability of the fair value. The movement of deferred taxes item is as follows: (x € 1,000) 2008 2007
Balance at 1 January 291 742
Additions - -
Withdrawals 87 451
Balance at 31 December 204 291
ThedeferredtaxationconcernsthelossestobecompensatedinthefutureonparticipatinginterestsinGermany.
��
Financial Statements 200�
(x € 1,000) Fair value Book value
Tangible fixed assets 47 47
Financial fixed assets 31 31
Receivables 571 571
Cash and cash equivalents 267 267
916 916
Current liabilities 513 513
Net asset value 403 403
Goodwill 2,291
Acquisition price 2,694
Acquisition costs: (x € 1,000)
Acquisition price 2,614
Additional costs 80
Total 2,694
The acquisition price was paid in cash and cash equivalents. The cash outflow concerning acquisition shows the following: (x € 1,000)
Fair value of cash and cash equivalents 267
Cash and cash equivalents paid 2,694
Net cash outflow 2008 2,427
9) Acquisitions
2008
!ZipOn 1 February 2008 ICT Automatisering N.V. acquired full ownership of !Zip Automation GmbH, whoseheadquartersareinNeustadt,Germany.!ZipAutomationGmbH.isactiveinthefieldofprocessautomation.
Thefairvalueoftheidentifiableassets, liabilitiesandconditional liabilitiesof!ZipAutomationGmbHandthecorresponding value taken up by !Zip Automation GmbH on the acquisition date (1February 2008) are asfollows:
��
Financial Statements 200�
In2008!ZipAutomationGmbHwas fully integrated in ICTSoftwareEngineeringSüdwestGmbHviaa legalmerger with XCC Software GmbH. From the acquisition date up to and including 31 December 2008 !ZipAutomationGmbHprovidedapositivecontributiontothenetprofitofICTAutomatiseringN.V.andthetotalturnoverofICTSoftwareEngineeringSüdwestGmbHamountedto€11,400,000andthegrossprofitmarginamountedto€2,540,000.Atthetimeoftheacquisitionof!ZipAutomationGmbHhad25employees.Thegoodwilltotheamountof€2,291,000fortheacquisitionof!ZipAutomationGmbHcomprisesthefairvalueoftheexpectedfuturebenefitsofsynergyarisingfromtheacquisition.
LineasOn1January2008ICTAutomatiseringN.V.increaseditsinterestinLineasAutomotiveGmbHfrom60%to80%,on1July2008to90%andon31December2008to100%.LineasAutomotiveGmbHisbasedinStuttgart,Germany.LineasAutomotiveGmbHisaserviceorganisationinthefieldofautomotiveengineering.
Thefairvalueoftheidentifiableassets,liabilitiesandconditionalliabilitiesofLineasAutomotiveGmbHandthecorrespondingvaluestakenupbyLineasAutomotiveGmbHonthedateofacquiringthemajorityownership,on1July2008,isasfollows:
(x € 1,000) Fair value Book value
Tangible fixed assets 83 83
Receivables 1,981 1,981
Cash and cash equivalents 186 186
2,250 2,250
Current liabilities 1,954 1,954
Net asset value 296 296
10% of this amounts to: 30
Goodwill at purchase at 1 July 1,304
Acquisition price 1,334
Costs concerning the acquisition of this interest on 1 July 2008: (x € 1,000)
Acquisition price 1,334
Additional costs -
Total 1,334
Costs associated with acquisition of full interest: (x € 1,000)
Acquisition price 7,708
Additional costs 198
Total 7,906
��
Financial Statements 200�
(x € 1,000) Fair value Book value
Tangible fixed assets 83 83
Receivables 1,981 1,981
Cash and cash equivalents 186 186
2,250 2,250
Current liabilities 1,954 1,954
Net asset value 296 296
10% of this amounts to: 30
Goodwill at purchase at 1 July 1,304
Acquisition price 1,334
Costs concerning the acquisition of this interest on 1 July 2008: (x € 1,000)
Acquisition price 1,334
Additional costs -
Total 1,334
Costs associated with acquisition of full interest: (x € 1,000)
Acquisition price 7,708
Additional costs 198
Total 7,906
The paid goodwill can be specified as follows: (x € 1,000)
Balance at 1 January 2008 3,389
Acquisition of 20% on 1 January 2008 1,441
Acquisition of 10% on 1 July 2008 1,304
Acquisition of 10% on 31 December 2008 1,476
4,221
Total value of goodwill 7,610
The cash outflow regarding the complete acquisition gives the following overview: (x € 1,000)
Fair value of the cash and cash equivalents 186
Cash and cash equivalents paid 7,906
Net cash outflow 7,720
Paid in 2008 less balance of cash and cash equivalents (€ 75) 4,264
Paid in 2007 less balance of cash and cash equivalents (€ 111) 3,456
Net cash outflow 7,720
Fromthedateoftheacquisitionuptoandincluding31December2008LineasAutomotiveprovidedapositivecontributiontothenetprofitofICTAutomatiseringN.V.The2008turnoverattributabletothegroupamountedto€11,600,000andthegrossprofitmargin€3,375,000.
Thegoodwilltotheamountof€7,610,000comprisesthefairvalueoftheexpectedfuturebenefitsofsynergyarisingfromtheacquisition.On1January2008thecompanyemployed100staff.
In2008anearn-outof€185,000waspaidoutfrompreviousyears.
��
Financial Statements 200�
2007
Acquisition of Rialtosoft B.V.On28August2007ICTAutomatiseringN.V.officiallyacquiredthesecond50%ofRialtosoftB.V.,thusbecomingfull owner. On 1January 2007 the company had already acquired the prevailing control and the economicownershipofRialtosoft.TheheadquartersofRialtosoftB.V.areintheNetherlandsinEindhoven.RialtosoftB.V.isaserviceorganisationinthefieldofautomotiveengineering.
Thefairvalueoftheidentifiableassets,liabilitiesandconditionalliabilitiesofProcosEngineers&ConsultantsB.V.andAtemexHoldingB.V.andthecorrespondingvaluestakenupbyProcosEngineers&ConsultantsB.V.andAtemexHoldingB.V.ontheacquisitiondate(1January2007)areasfollows:
(x € 1,000) Fair value Book value
Tangible fixed assets 65 65
Receivables 167 167
Cash and cash equivalents 183 183
415 415
Liabilities 608 608
608 608
Net asset value (193) (193)
Goodwill 885
Acquisition price 692
Total acquisition costs were: (x € 1,000)
Acquisition price 647
Additional costs 45
Total 692
The acquisition price is paid in cash and cash equivalents on the acquisition date available on the balance sheet of ICT Automatisering N.V. The cash outflow concerning the acquisition shows the following: (x € 1,000)
Fair value of the cash and cash equivalents of Rialtosoft B.V. 183 Cash and cash equivalents paid 692
Net cash outflow 2007 509
��
Financial Statements 200�
Fromthedateofacquiringcontroluptoand including31December2007RialtosoftB.V.providedapositivecontributiontothenetprofitofICTAutomatiseringN.V.Turnoveramountedto€2,432,000andthegrossprofitmarginamountedto€639,000.Atthetimeoftheacquisitiontherewere16employees.
Thegoodwilltotheamountof€885,000comprisesthefairvalueofexpectedfuturebenefitsofsynergyarisingfromtheacquisition.
10) Trade and other receivables
Thetradeandotherreceivablesareasfollows:
Ingeneraltradereceivablesarenon-interestbearingandhaveapaymenttermof30-90days.
On31December2008anallowanceforuncollectibletradereceivableswasdeterminedfortradereceivableswithanominalvalueof€19,546(2007:€21,451).
Thecompositionoftheallowanceforuncollectibletradereceivablesisasfollows:
Allreceivablesareindividuallyestimated.
The trade and other receivables are as follows: (x € 1,000) 2008 2007
Trade receivables 19,538 18,995
Revenue to be invoiced 2,255 5,211
Other receivables 3,989 1,043
Prepayments and accrued income 1,081 1,011
26,863 26,260
In general trade receivables are non-interest bearing and have a payment term of 30-90 days. On 31 December 2008 an allowance for uncollectible trade receivables was determined for trade receivables with a nominal value of € 19,546 (2007 € 21,451). The composition of the allowance for uncollectible trade receivables is as follows: (x € 1,000) 2008 2007
Balance at 1 January 2,456 1,379
Provisions 170 1,133
Written off against the provision (2,618) -
Uncollectible trade receivables received - (56)
Balance at 31 December 8 2,456
All receivables are individually estimated.
The analysis of outstanding trade receivables that are not subject to exceptional impairment at 31 December is as
follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired and not subject to
exceptional
impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120
days
2008 19,538 13,538 1,725 2,261 1,394 234 386
2007 18,995 15,223 - 2,040 836 210 686
The analysis of other outstanding receivables not subject to exceptional impairment at 31 December is as follows:
Expired but not subject to exceptional impairment
(x €
1,000) Total
Not expired and
not subject to
exceptional impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120 days
2008 3,989 2,113 - - 1,789 87
The trade and other receivables are as follows: (x € 1,000) 2008 2007
Trade receivables 19,538 18,995
Revenue to be invoiced 2,255 5,211
Other receivables 3,989 1,043
Prepayments and accrued income 1,081 1,011
26,863 26,260
In general trade receivables are non-interest bearing and have a payment term of 30-90 days. On 31 December 2008 an allowance for uncollectible trade receivables was determined for trade receivables with a nominal value of € 19,546 (2007 € 21,451). The composition of the allowance for uncollectible trade receivables is as follows: (x € 1,000) 2008 2007
Balance at 1 January 2,456 1,379
Provisions 170 1,133
Written off against the provision (2,618) -
Uncollectible trade receivables received - (56)
Balance at 31 December 8 2,456
All receivables are individually estimated.
The analysis of outstanding trade receivables that are not subject to exceptional impairment at 31 December is as
follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired and not subject to
exceptional
impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120
days
2008 19,538 13,538 1,725 2,261 1,394 234 386
2007 18,995 15,223 - 2,040 836 210 686
The analysis of other outstanding receivables not subject to exceptional impairment at 31 December is as follows:
Expired but not subject to exceptional impairment
(x €
1,000) Total
Not expired and
not subject to
exceptional impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120 days
2008 3,989 2,113 - - 1,789 87
�0
Financial Statements 200�
Theanalysisofoutstandingtradereceivablesthatarenotsubjecttoexceptionalimpairmentat31Decemberisasfollows:
The analysis of outstanding trade receivables that are not subject to exceptional impairment at 31 December is as
follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired
and not subject to
exceptional
impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120
days
2008 19,538 13,538 1,725 2,261 1,394 234 386
2007 18,995 15,223 - 2,040 836 210 686
The analysis of other outstanding receivables not subject to exceptional impairment at 31 December is as follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired and not
subject to
exceptional impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120 days
2008 3,989 2,113 - - 1,789 87
11) Cash and cash equivalents
Thebalancesincludedinthisitemareatthefreedisposalofgroupcompanies.Thecashandcashequivalentsconsistofbankbalancesbearinginterestinlinewithmarketinterest.
12) Shareholders’ equity
Issued capitalThecompany’sauthorisedsharecapitalamountsto€3,750,000dividedinto18,700,000ordinarysharesand18,800,000cumulativepreferencesharesallof€0.10nominaleach.Thenumberofordinarysharesissuedandfullypaidupat31December2007amountedto8,747,544(2007:8,452,927).Overthecourseof2008anextra294,617shareswereissuedinconnectionwiththepaymentofstockdividend.
Stichting Continuïteit ICT and preference sharesStichtingContinuïteitICTwasformedin1997.TheobjectofStichtingContinuïteitICTistopromotetheinterestsofICTAutomatiseringN.V.anditsassociatedcompaniesinsuchawaythattheinterestsofICTAutomatiseringN.V.anditsassociatedcompaniesandallconcernedwiththemaresafeguardedasfaraspossibleandthatinflu-enceswhichcouldadverselyaffecttheindependenceand/orthecontinuityand/ortheidentityofICTAutomati-seringN.V.anditsassociatedcompanies,andwhichcouldbeinconflictwiththoseinterests,areavertedtothemaximumextent.
TheboardoftheStichtingContinuïteitICTconsistsoffourmembers,allofwhomareindependent.
The analysis of outstanding trade receivables that are not subject to exceptional impairment at 31 December is as
follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired
and not subject to
exceptional
impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120
days
2008 19,538 13,538 1,725 2,261 1,394 234 386
2007 18,995 15,223 - 2,040 836 210 686
The analysis of other outstanding receivables not subject to exceptional impairment at 31 December is as follows:
Expired but not subject to exceptional impairment
(x € 1,000) Total
Not expired and not
subject to
exceptional impairment < 30 days 30–60 days 60-90 days 90-120 days
> 120 days
2008 3,989 2,113 - - 1,789 87
The analysis of other outstanding receivables not subject to exceptional impairment at 31 December is asfollows:
�1
Financial Statements 200�
2008 2007
Balance at 1 January 139,094 257,788
Issued as stock dividend (2007: treasury shares issued under the terms of the options exercised)
(139,094) (118,694)
Balance at 31 December - 139,094
In 2008 and 2007 no purchases took place.
In2008and2007nopurchasestookplace.
Retained profitTheretainedprofitcomprisestheprofitsnotpaidoutasdividendinpreviousyears.ItisproposedtotheGeneralMeeting of Shareholders on 27 May 2009 to declare a cash dividend of €0.25 (2007: €0.58) per share ofnominal€0.10.Theproposeddividendfortheyear2008amountedto€2,187,000(2007:€4,827,000).
13) Pensions
ICTAutomatiseringN.V.hasinsuredtheretirementpension,disabilityandsurvivingdependants’pensionplansformostofheremployeeswithStichtingPensioenfondsICT.Theretirementpensionisbasedonaccruedpensionbenefits.Theretirementpensioniscalculatedonthebasisof70%ofthelastearnedsalary,dependingonthenumberofyearsofservice,untiltheageof65.Thedisabilityandsurvivingdependants’pensionplansareinsuredwiththepensionreinsurancecompany.
In2007ICTAutomatiseringN.V.decidedtoplacethepensiondirectlywithaninsurancecompanyasof1January2008,withoutintercessionofthecompanypensionfund.On1January2008anewpensioncontractwassignedwiththeinsurancecompany.Thepensionofthoseemployeeswhowereworkingforthecompanyon1January2008andfellunderthepensionschemeofthecompanypensionfundwasdirectlyplacedwithaninsurancecompany.ThepensionschemeforthisclosedgroupwillbecontinuedwiththeexceptionofsomeadjustmentsdueasaresultofalterationstothePensionAct.Anewpensionschemebasedonthedefinedcontributionwillbeconcludedforemployeeswhojoinedthecompanyasof1January2008.
ThepreferencesharesinthecapitalofICTAutomatiseringN.V.representdefenceagainsthostiletake-overbids.Nopreferenceshareshadbeenissuedasoftheendofthereportingyear.StichtingContinuïteitICThasenteredintoanoptionagreementwithICTAutomatiseringN.V.AccordingtothisoptionagreementStichtingContinuïteitICThastherighttorequireICTAutomatiseringN.V.toissuepreferencesharestoitatthesamemaximumnominalvalue.Preferencesharesmayonlybeissuedundertheoptionagreementforthepurposeofservingaforemen-tionedobjectofStichtingContinuïteitICT.
Treasury sharesTomeettheobligationsarisingfromoptionsgranted,treasurysharesareheld.
Themovementofthetreasurysharesheldisasfollows:
�2
Financial Statements 200�
Asummaryof thebreakdownof the costof thepensionplan, aswell as thefinancinganddefinedbenefitobligationsunderIFRSisshowninthefollowingtable.
2008 2007
PENSION COSTS
Pension costs in the year of service 1,451 1,769
Interests cost on pension obligation 1,224 1,002
Expected return on assets (1,621) (1,295)
Additional risk premiums and costs 99 107
Pension costs related to the past - 621
Change in the year in the net investment surplus 1,424 (899)
Actuarial loss (gain) (614) 833
Employee contributions to the defined benefit (896) (1,000)
1,067 1,138
Pension costs of defined contribution plans 483 521
Employee contributions to defined contribution plans (153) (143)
Pension costs 1,397 1,516
Actual revenues of the plan assets - % - 0.5%
2008 2007
SPECIFICATION OF THE BENEFIT ASSET/(LIABILITY):
Gross value of pension obligation on 31 December 23,362 22,106
Fair value of the plan assets on 31 December 28,798 26,118
Net investment surplus 5,436 4,012
Adjustment to the investment surplus (5,436) (4,012)
Liability/(asset) recognised in the balance sheet - -
2008 2007
MOVEMENT IN THE PRESENT VALUE OF THE PENSION OBLIGATION
Value of the pension obligation on 1 January 22,106 22,287
Interest costs 1,224 1,002
Pension costs in the year of service 1,451 1,769
Actuarial (gain) loss (1,390) (3,546)
Benefits paid (29) (27)
Pension costs related to the past - 621
Value of the pension obligation on 31 December 23,362 22,106
2008 2007
CHANGE IN THE FAIR VALUE OF THE PLAN ASSETS
Fair value of the plan assets on 1 January 26,118 27,198
Expected return 1,621 1,295
Employer contributions 1,864 2,031
Actuarial (loss) gain on assets (776) (4,379)
Benefits paid (29) (27)
Fair value of plan assets on 31 December 28,798 26,118
�3
Financial Statements 200�
Thepensioncostsrelatedtothepastcovertheprocessingfromthemoderatedefinedbenefitsystemtodefinedbenefit system by the end of 2007 as a result of legislative changes and past-related future changes of thesurvivingdependants’pensionandtheorphan’spension.
ThecontributiontoICTAutomatiseringN.V.’spensionplandependsonthefinancingagreementbetweenICTAutomatiseringN.V.andthepensionfund.Accordingtotheagreement,ICTAutomatiseringN.V.’sannualcontri-butiontothefundwasidenticaltotheannualpensioncontributionschargedbytheinsurancecompanytothefund.Sinceon1 January2008anewpensioncontractwassignedwith the insurancecompany, thefinanceagreementbetweenICTAutomatiseringN.V.andthefundhasbeenterminated.ThecontributiontothepensionschemeofICTAutomatiseringN.V.ispaidtotheinsurancecompanydirectly.Uptoandincluding2007theassetsinthepensionfundwereinvestedinfullintheinsurer’sownfunds.Investmentsaremadeinbusinessandfixedinterestvaluesto20%and80%respectivelyatabandwidthof5%.
Thefollowingoverviewisofthepastfiveyears:The following overview is of the past five years:
2008 2007 2006 2005 2004
Gross value of pension obligation at 31 December 23,362 22,106 22,287 24,280 18,295
Fair value of plan assets at 31 December 28,798 26,118 27,198 25,189 21,782
Net investment surplus 5,436 4,012 4,911 909 3,487
Actuarial gain (loss) on the Gross value of pension obligation 1,390
3,546
3,897
(4,060)
(2,825)
Actuarial (loss) gain on the fair value of the plan assets (776) (4,379) (1,045) 235 1,402 Actuarial gain (loss) 614 (833) 2,852 (3,825) (1,423)
Part of the actuarial revenue on the gross value of the pension obligation in 2008 (worth € 1,571,000) can be attributed to changes in actuarial assumptions (2007: € 4,384,000) and for the remaining part from experience differences. The following actuarial assumptions used in determining pension benefit obligations at 31 December are as follows:
Valuation Valuation
(x € 1,000) in 2008 in 2007
Discount rate used 5.7% 5.2%
Salary increase percentage used 1.7%-5% 1.7%-5%
Expected rate of return on assets 4.26% 5.8%
Mortality table GBM/V 2000-2005 M -1, V -2
GBM/V 1990-1995 M -1, V -1
Partoftheactuarialrevenueonthegrossvalueofthepensionobligationin2008(worth€1,571,000)canbeattributedtochangesinactuarialassumptions(2007:€4,384,000)andfortheremainingpartfromexperiencedifferences.
The following actuarial assumptions used in determining pension benefit obligations at 31 December are asfollows:
The following overview is of the past five years:
2008 2007 2006 2005 2004
Gross value of pension obligation at 31 December 23,362 22,106 22,287 24,280 18,295
Fair value of plan assets at 31 December 28,798 26,118 27,198 25,189 21,782
Net investment surplus 5,436 4,012 4,911 909 3,487
Actuarial gain (loss) on the Gross value of pension obligation 1,390
3,546
3,897
(4,060)
(2,825)
Actuarial (loss) gain on the fair value of the plan assets (776) (4,379) (1,045) 235 1,402 Actuarial gain (loss) 614 (833) 2,852 (3,825) (1,423)
Part of the actuarial revenue on the gross value of the pension obligation in 2008 (worth € 1,571,000) can be attributed to changes in actuarial assumptions (2007: € 4,384,000) and for the remaining part from experience differences. The following actuarial assumptions used in determining pension benefit obligations at 31 December are as follows:
Valuation Valuation
(x € 1,000) in 2008 in 2007
Discount rate used 5.7% 5.2%
Salary increase percentage used 1.7%-5% 1.7%-5%
Expected rate of return on assets 4.26% 5.8%
Mortality table GBM/V 2000-2005 M -1, V -2
GBM/V 1990-1995 M -1, V -1
Theexpectedrateofreturnonassetsin2007isbasedonthelong-termexpectationsforthestrategicinvestmentmixduringtheyearunderreviewandin2008ongovernmentbonds.
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Financial Statements 200�
Assumptionsrelatingtofuturesalaryincreasesarebasedonconsistentestimatesmadedependingonagelevelsandirrespectiveofpriceinflation.Thetermsandconditionsofthepensionplandonotincludeanycommitmentsmadeinrelationtopriceinflation.
The contribution in 2009 shall be similar to the gross contribution in 2008, prior to deducting the personalcontributionof€2.0million.
14) Received in advanceThisconcernsareceivedpaymentarisingfromalongtermrentalcontract,fortheannualamountof€200,000tothecreditoftherentincludedintheprofitandlossaccount.Theshorttermpartofthepaymentisincludedundercurrentliabilities(seenote15).Anamountof€800,000hasatermof1through5years,theremainingpart(€200,000)hasatermlongerthan5years.
15) Current liabilities
Tradeandotherliabilitiesarenotinterestbearingandhaveapaymenttermupto45daysandareusuallypaidentirelywithinthepaymentperiod.Tradecreditorsat31December2008and31December2007are0to45daysandarethuswithintheagreedpaymentperiod.
Theothercurrentliabilitiesarebrokendownasfollows:The other current liabilities are broken down as follows: (x € 1,000) Note 2008 2007
Pension premiums payable 13) 971 1,360
Other liabilities 6,856 6,991
Accruals and deferred income 1,099 2,121
8,926 10,472
The other liabilities relate to accrued expenses payable to suppliers and employees. Accruals and deferred income also includes the short-term part of the received payment, arising from a long-term rental contract. Theotherliabilitiesrelatetoaccruedexpensespayabletosuppliersandemployees.Accrualsanddeferredincomealsoincludestheshort-termpartofthereceivedpayment,arisingfromalong-termrentalcontract.
16) Commitments not disclosed in the balance sheet
Credit facilityCreditinstitutionshavegrantedacreditfacilityofupto€2.5million(2007€2.5million)comprisingguaranteesforthebenefitsofclients.Forinvestmentandfinancingactivitiesacreditfacilityhasbeengrantedupto€10million.Thebankhasnotbeengivenanyfinancialguaranteesforthis.
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Financial Statements 200�
GuaranteesAtbalancesheetdate,guaranteesoutstandingamountedto€1.1million(2007:€0.9million).Theseguaranteeswereprovidedinconnectionwithcurrentrentalcommitmentsandclients.
Rental commitmentsThis item relates to liabilities on the rental commitments for offices. The rental commitments are long-terminnature,withamaximumof10years.Totalrentalcommitmentsamounttosome€3.2million(2008:€3.0million)ofwhich€0.8million(2008:€0.8million)withatermoflessthanoneyearandtheremainingamountbetweenoneandfiveyears.
Lease commitmentsThisitemrelatestoliabilitiesonoperatingleasesforcarsforemployees,eachleasehavingatermofuptofouryears.Thetotalleasecommitmentsamounttoaround€32.0million(2008:€31.0million)ofwhichsome€8.0million(2008:€7.8million)hasatermoflessthan1yearandtheremainingamountwithatermbetween1and5years.
Legal proceedingsThecompanyisinvolvedinanumberoflegalproceedingsinconnectionwiththegroup’sbusinessactivities.IntheopinionoftheExecutiveBoard,thesewillhavenomaterialeffectonthefinancialpositionofthegroup.
Fiscal unityICT Embedded B.V., ICT Solutions B.V., RDS Holding B.V., ICT NoviQ B.V., and Atemex Holding B.V. and allsubsidiesfallingundertheseoperationsarepartofthesinglefiscalentityofICTAutomatiseringN.V.forcorporatetaxpurposes.Earn out arrangements and future acquisitionsWithregardtooneoftheacquisitionsthereisanearnoutarrangementregardingacquiredshares.Withregardtoanumberofpartiallyacquiredinterestsdiscussionsareheldaboutextendingcontrolinthefuture.Resultingfinancialobligationsarebasedonthefutureresultsoftheseinterests.
17) Financial instruments
GeneralICTAutomatiseringN.V.hasfinancialinstrumentsonlyinthefollowingcategories:•Loansandreceivablesconsistingofon-balancesheettradeandotherreceivablesatestimatedcost;•Financialfixedassetsheldforsalebeingthecostoftheparticipatinginterestcarriedatcost;•Other financial liabilities consisting of current liabilities on balance sheet accounts at estimated amortised
cost.
a) PolicyThecompany’spolicyseekstocontrolallrisksassociatedwithinterestrates,currency,liquidityandcredit.Thefinancial instruments as included in thebalance sheet of ICTAutomatiseringN.V. are not subject to specificcontractualprovisions,apartfromtheguaranteesandcreditfacilitiesprovidedbyRabobank.NeitherICTAutomati-seringN.V.noranyofitsgroupcompaniesholdderivativesfortradingpurposesnordotheyissuethem.Conse
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Financial Statements 200�
quently,neitherICTAutomatiseringN.V.noritsgroupcompaniesmakeuseofcashflow,fairvalueorcurrencyhedges.
b) Fair valueFinancialinstrumentsinthebalancesheetconcerntradereceivablesandotherreceivables,cashandcashequiva-lentsandothercurrentliabilities.Thefairvalueofthesefinancialinstrumentsalsoapproximatesthebookvaluewithrespecttotheshortthroughputoftheseitems.
c) Interest rate risksICTassessestheinterestrateriskstowhichit isexposedasminimalbecausethecompanydoesnothaveanyinterest-bearingdebtandisthusnotsensitivetorisksoffluctuationsofinterestrates.Interestrevenuefollowsthedevelopmentofinterestondeposits.
d) Currency risks ICTisnotaffectedbycurrencyrisksbecauseallcontractsandobligationsaredominatedexclusivelyineuros.
e) Credit risksICTassessesthecreditriskstowhichitisexposedaslowbecauseofthegoodreputationandthecreditworthinessofmostofitsclients.Thecreditriskonliquidassetsisconsideredlowduetothefacttheseassetsaredepositedwithcreditworthybanks.
f) Liquidity riskICTassessestheliquidityriskstowhichitisexposedasminimalbecausetheliquiditiesareallbankbalances.
Theriskofliabilitiesnotbeingpayablefromcashandcashequivalentsisconsiderednilbecausethecurrentassetsaremorethantwiceashighasshorttermcurrentliabilities.
Financing policyAsregardsthefinancingpolicythemaintargetistoretainahealthybalancesheetratiointermsofsolvencyandliquidity.Foranyfutureacquisitionstheintentionisthatthisbepaidfrominternalsources.Tocompen-sateforliquidityfluctuationsacurrentaccountcreditfacilityhasbeenconcludedwithacreditinstitution.
18) Related parties
ICTAutomatiseringN.V. is a company incorporatedandestablished in theNetherlands. The followinggroupcompaniesareincludedintheconsolidation.
Group companies:ICTEmbeddedB.V. Barendrecht 100%ICTSolutionsB.V. Barendrecht 100%ICTNoviQB.V. Barendrecht 100%ICTSoftwareEngineeringGmbH(Duitsland) Böblingen 100%ICTSoftwareEngineeringSüdwestGmbH(Duitsland) Karlsruhe 100%
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Financial Statements 200�
X € 1,000 2008 2007
Sales to related parties 2,659 2,710 Purchases from related parties - - Payables from related parties 1,769 136 Payables to related parties 1,008 -
ICTSoftwareEngineeringSüdostGmbH(Duitsland) Nürnberg 100%ICTSoftwareEngineeringNordGmbH(Duitsland) Wolfsburg 100%AtemexHoldingB.V. Gorinchem 100%AtemexB.V. Gorinchem 100%RDSHoldingB.V. Rotterdam 100%RijnmondDistributieServicesB.V. Rotterdam 100%RialtosoftB.V. Eindhoven 100%
Joint-venture companies:ImproveQualityServicesB.V. Valkenswaard 50%InTrafficB.V. Utrecht 50%
Other participating interests:Theotherparticipatinginterestincludesa50%interestinStartAutomationLtd.atMalackyandisrecordedunderthefinancialfixedassets.
Theotherparticipatinginterestisnotconsolidatedbutisincludedasfor-salefinancialassetatthebalancesheetdateof31December2008,because ICTcannotexerciseanysignificant influenceonpolicy.Betweenthe ICTGroupandtheotherparticipating interestnotransactions, receivablesor liabilitiesexistotherthanapossibledividendreceivedintheyearunderreview.
Other related partiesStichtingAdministratiekantoorICTStichtingPensioenfondsICT(inliquidation)StichtingPersoneelsoptieplanICT
Theseotherrelatedpartiesarenotincludedintheconsolidationastheyareindependentfoundations.
Thetransactionswithabovementionedointventurecompanies,basedon50%andin2007on60%,duringtheyearunderreviewcanbebrokendownasfollows:
Thetransactionsrelatemainlytotheoutsourcingofpersonnel.Thetransactionsaretakeplaceatratesinlinewiththemarket.Theliabilitiesfromrelatedpartiesincludetradecreditorsrelatedtothesetransactions.Fortheremunerationofthekeyemployeesofthegroupwerefertonotes22,23and24.
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Financial Statements 200�
19) Revenues
ICT’sprimarygeographicalmarket is theNetherlandsandGermany.Within theNetherlandsare thebusinesssegmentsEmbedded,SolutionsandConsultancy.ThedetailsofICTAutomatiseringN.V.areprorata,allocatedoverthesegmentsEmbeddedandSolutions.
ICTEmbeddedfocusesonmakingtechnologicaldevelopmentsavailabletoitsclients.ICTEmbeddedundertakessoftwaredevelopmenttogetherwithclients,wherebytheyincreasetheefficiencyofthedevelopmentprocessandthequalityofthecomplexembeddedsystemsonbehalfofclients.ICTSolutionsdevelopscomplextechnicalcomputersolutionsformanagingandcontrollingoperatingprocesses.ICTConsultancydevelopsandprovidesinnovativeserviceswithdecisiveaddedvalueforcompaniesthatdevelopsystemsandoffersconsultancy,servicesand training in the field of Architecture, Configuration Management, Quality Assurance and RequirementsEngineering.
SegmentationThecompositionoftherevenuesandotherincome,grossmargin,bookvaluesofassets,investments,liabilitiesandaveragenumberofemployeesinthevariousdivisions,isasfollows:
NETHERLANDS 2008 2007 Movement(X€1.000) Turnover 78.943 82.910 (4,8)%Grossprofitmargin¹) 24,546 25,463 (3.6)%Totalnetbookvalueofassets 54,109 52,438 3.2%Additionstotangiblefixedassets 501 926 (45.9)%Liabilities²) 14,945 11,769 27.0%Depreciation 522 393 32.8%Averagenumberofworkers 771 833 (7.4)% GERMANY 2008 2007 Movement(X€1.000)Turnover 22,749 9,335 143.7%Grossprofitmargin¹) 5,709 2,322 145.9%Totalnetbookvalueofassets 11,112 7,556 47.1%Additionstotangiblefixedassets 1,030 173 495.4%Liabilities²) 3,788 5,908 (36.9)%Depreciation 224 84 166.7%Averagenumberofworkers 201 74 171.6%
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Financial Statements 200�
ELIMINATION 2008 2007 Movement(X€1,000) Turnover (4,202) (3,960) (6.1)%Grossprofitmargin¹) 0 0 %Totalnetbookvalueofassets 0 0 %Additionstotangiblefixedassets 0 0 %Liabilities²) 0 0 %Depreciation 0 0 %Averagenumberofworkers 0 0 %
ICT TOTAL 2008 2007 Movement(X€1,000) Turnover 97,490 88,285 10.4%Grossprofitmargin¹) 30,255 27,785 8.9%Totalnetbookvalueofassets 65,221 59,994 8.7%Additionstotangiblefixedassets 1,531 1,099 39.3%Liabilities²) 18,733 17,677 6.0%Depreciation 746 477 56.4%Averagenumberofworkers 972 907 7.2% ThesecondarysegmentationwithintheNetherlandsisasfollows:
Embedded 2008 2007 Movement
(X€1,000) Turnover 30,388 33,594 (9.5)%Grossprofitmargin¹) 9,670 10,627 (9.0)%Totalnetbookvalueofassets 23,267 22,360 4.1%Additionstotangiblefixedassets 272 342 (20.5)%Liabilities²) 6,912 5,330 29.7%Depreciation 265 207 28.0%Averagenumberofworkers 342 401 (14.7)%
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Financial Statements 200�
Solutions 2008 2007 Movement
(X€1,000) Turnover 46,113 46,846(1.6)%Grossprofitmargin¹) 14,150 14,1460.0%Totalnetbookvalueofassets 30,825 29,6793.9%Additionstotangiblefixedassets 226 582(61.2)%Liabilities²) 7,692 6,06626.8%Depreciation 254 18338.8%Averagenumberofworkers 407 409(0.5)%
Consultancy 2008 2007 Movement
(X€1,000) Turnover 2,442 2,470 (1.1)%Grossprofitmargin¹) 726 689 5.4%Totalnetbookvalueofassets 17 400 (95.8)%Additionstotangiblefixedassets 3 2 50.0%Liabilities²) 341 373 (8.6)%Depreciation 3 3 0.0%Averagenumberofworkers 22 23 (4.3)%
¹)Asegment’scontributionconsistsofrevenueandotherincomelessmaterialsused,subcontractedworkandemployeecosts.²)Asegment’sliabilityconsistsofcurrentliabilitieslesscorporateincometaxliabilities.
20) Other income
Otherincomein2008and2007consistofsubsidyincomeandotherincomenotdirectlyattributabletoopera-tingexpenses.
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Financial Statements 200�
21) Employee costs
Employeecostscanbebrokendownasfollows:
22) Outstanding options held by members of the Supervisory Board, Executive Board and employees
2008
Employee costs can be broken down as follows: (x € 1,000) Note 2008 2007
Salaries 49,197 44,476
Social security charges 6,680 5,538
Pension expenses 13) 1,397 1,516
Costs of issued option obligations - 62
57,274 51,592
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets. *)Theoptionsof16December2004and2January2008weregrantedsubjecttotheachievementoftargets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
2008
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Max remaining execution time (in years)
Executive Board Option tranches dated
10-sep-04 10.05 40,000 0 0 0 40,000 0.7
12-jan-06 12.00 40,000 0 0 0 40,000 2.0
12-jan-06 15.00 20,000 0 0 0 20,000 2.0
23-may-07 15.20 20,000 0 0 0 20,000 3.4
13-march-08 9.20 0 40,000 0 0 40,000 4.2
120,000 40,000 0 0 160,000
Exercise price in euros
Outstanding options at 31-12-2007
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding options at 31-12-2008
Employees’ options Option tranches dated
8-dec-03 11.40 25,699 0 25,699 0 0
16-dec-04 11.25 *) 25,000 0 14,000 0 11,000 1.0
2-jan-08 10.55 *) 0 25,000 0 0 25,000 4.0
50,699 25,000 39,699 0 36,000
Total options 170,699 65,000 39,699 0 196,000
*) The options of 16 December 2004 and 2 January 2008 were granted subject to the achievement of targets.
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Financial Statements 200�
In2008optionswereissuedtothemembersoftheExecutiveBoardofICTAutomatiseringN.V.Thisconcerned20,000optionsperboardmemberwithanexercisepriceof€9.20,beingtheopeningpriceoftheshareon14March2008.Theseoptionswereawardedconditionalupontheoptionholderremaininginemploymentforthecomingthreeyears.Theoptionsarequalifiedasequity-settledandarethereforespreadovertheyears2008,2009and2010andincludedasexpenseintheprofitandlossaccountunderemployeecharges.
2007
In2007optionswere issuedtoamemberof theExecutiveBoardof ICTAutomatiseringN.V.Thisconcerned20,000optionswithanexercisepriceof€15.20,beingtheclosingpriceoftheshareon23May2007.Theseoptionswereawardedconditionalupontheholderremaininginemploymentforthecomingthreeyears.Theoptions are qualified as equity-settled and are spread over the years 2007, 2008 and 2009 and included asexpenseintheprofitandlossaccountonthepersonnelcosts.Thefairvalueoftheoptionsonthedatethattheywereawarded isestimatedwiththehelpofabinominalevaluationmodelwherebytheconditionssubject towhichtheoptionsareawardedaretakenintoaccount.
2007
Options for the benefit of: Exercise price in euros
Outstanding in options at 31/12/06
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding in options at 31/12/07
Maximum remaining execution
time (in years)
Executive Board:
Option tranches dated:
17 December 2001 11.33 40,000 - - 40,000 -
10 September 2004 10.05 40,000 - - - 40,000 1.7
12 January 2006 12.00 40,000 - - - 40,000 3.0
12 January 2006 15.00 20,000 - - - 20,000 3.0
23 May 2007 15.20 - 20,000 - - 20,000 4.6
140,000 20,000 - 40,000 120,000
Supervisory Board:
Option tranches dated:
17 December 2001 11.33 18,000 - - 18,000 -
18,000 - - 18,000 -
Employees’ options:
Option tranches dated:
17 December 2001 11.33 22,364 - - 22,364 -
9 December 2002 7.10 38,629 - 5,599 33,030 -
8 December 2003 11.40 35,499 - 4,500 5,300 25,699 0.9
16 December 2004 *) 11.25 25,000 - - - 25,000 2.0
121,492 - 10,099 60,694 50,699
Total options 279,492 20,000 10,099 118,694 170,699
2007
Options for the benefit of: Exercise price in euros
Outstanding in options at 31/12/06
New granted options
Lapsed, unexercised options
Exercised options 2008
Outstanding in options at 31/12/07
Maximum remaining execution
time (in years)
Executive Board:
Option tranches dated:
17 December 2001 11.33 40,000 - - 40,000 -
10 September 2004 10.05 40,000 - - - 40,000 1.7
12 January 2006 12.00 40,000 - - - 40,000 3.0
12 January 2006 15.00 20,000 - - - 20,000 3.0
23 May 2007 15.20 - 20,000 - - 20,000 4.6
140,000 20,000 - 40,000 120,000
Supervisory Board:
Option tranches dated:
17 December 2001 11.33 18,000 - - 18,000 -
18,000 - - 18,000 -
Employees’ options:
Option tranches dated:
17 December 2001 11.33 22,364 - - 22,364 -
9 December 2002 7.10 38,629 - 5,599 33,030 -
8 December 2003 11.40 35,499 - 4,500 5,300 25,699 0.9
16 December 2004 *) 11.25 25,000 - - - 25,000 2.0
121,492 - 10,099 60,694 50,699
Total options 279,492 20,000 10,099 118,694 170,699
�3
Financial Statements 200�
23) Remuneration of members of the Supervisory Board and Executive Board
AsofJuly2008remunerationforeachsupervisorydirector,aslaiddownintheshareholders’meetingof21May2008,shallamountto€25,000fortheentireyear.Thetotalremunerationin2008thusamountedto€106,000(2007:€80,000).
Thetotalremunerationofthemembersin2008amountedto€784,500(2007:€639,500)andcanbebrokendownasfollows:
1)Mr.Schot’sremunerationin2007wasadjustedinarrears.2)ForMr.Obergtheamountsin2007areincludedproratafromemploymentdatebeing1September2007.
Thebonusdependsonprofitincreasepersharecomparedtothepreviousyearandamountstoatleast25%andnomorethan50%oftheregularsalary.
Regular salary Bonus Pension costs Value options Total
2008
A. Schot 390,500 98,000 21,000 10,000 519,500
J. Oberg 180,000 39,000 36,000 10,000 265,000
Total 570,500 137,000 57,000 20,000 784,500
2007
A. Schot1) 390,500 98,000 21,000 62,000 571,500
J. Oberg2) 60,000 6,000 2,000 - 68,000
Total 450,500 104,000 23,000 62,000 639,500
1) Mr. Schot’s remuneration in 2007 was adjusted in arrears. 2) For Mr. Oberg the amounts in 2007 are included pro rata from employment date being 1 September 2007.
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Financial Statements 200�
24) Shares held by (former) members of the Supervisory Board and the Executive Board
At31December2007,ICTsharesheldbythe(former)SupervisoryBoardandtheExecutiveBoardcanbebrokendownasfollows:
Number held at 31.12.2008
Number held at 31.12.2007
Executive directors
A. Schot 10,207 9,549
J. Oberg - -
10,207 9,549
(Former) supervisory directors
W. de Vlugt 3,206 3,000
H.A.D. van den Boogaard1) - 310
C. Kämper - -
P. Zuidema - -
B.F. Kostwinder - -
C.A.G. D’Agnolo - -
3,206 3,310
1) On 23 May 2008 Mr. H.A.D. van den Boogaard stepped down as supervisory director of the company.
1)On23May2008Mr.H.A.D.vandenBoogaardsteppeddownassupervisorydirectorofthecompany.
25) Outstanding options held by (former) members of the Supervisory Board and Executive Board
2008
At31December2007thenumberofoutstandingoptionsheldby(former)memebersoftheSupervisoryBoardandtheExecutiveBoardcanbebrokendownasfollows:2008 Outstanding
options at 31.12.2007
Lapsed, unexercised
options
Exercised options
Granted in 2008
Outstanding options at
31.12.2008 Executive directors
A. Schot 120,000 - - 20,000 140,000
J. Oberg – - - 20,000 20,000
120,000 - - 40,000 160,000
Supervisory directors and former supervisory directors The members of the Supervisory Board have no options as of 31 December 2008. 2007 Outstanding
options at 31.12.2006
Lapsed, unexercised
options
Exercised options
Granted in 2007
Outstanding options at
31.12.2007 Executive directors
A. Schot 140,000 - 40,000 20,000 120,000
J. Oberg - - - - -
140,000 - 40,000 20,000 120,000
(Former) supervisory directors
W. de Vlugt 6,000 - 6,000 - -
H.A.D. van den Boogaard 6,000 - 6,000 - -
C. Kämper 6,000 - 6,000 - -
P. Zuidema - - - - -
18,000 - 18,000 - -
2008 Outstanding
options at 31.12.2007
Lapsed, unexercised
options
Exercised options
Granted in 2008
Outstanding options at
31.12.2008 Executive directors
A. Schot 120,000 - - 20,000 140,000
J. Oberg – - - 20,000 20,000
120,000 - - 40,000 160,000
Supervisory directors and former supervisory directors The members of the Supervisory Board have no options as of 31 December 2008. 2007 Outstanding
options at 31.12.2006
Lapsed, unexercised
options
Exercised options
Granted in 2007
Outstanding options at
31.12.2007 Executive directors
A. Schot 140,000 - 40,000 20,000 120,000
J. Oberg - - - - -
140,000 - 40,000 20,000 120,000
(Former) supervisory directors
W. de Vlugt 6,000 - 6,000 - -
H.A.D. van den Boogaard 6,000 - 6,000 - -
C. Kämper 6,000 - 6,000 - -
P. Zuidema - - - - -
18,000 - 18,000 - -
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Financial Statements 200�
2007
The item other operating expenses can be broken down as follows: (x € 1,000) 2008 2007
Automotive expenses 7,510 7,830 Premises 4,160 3,724 Other costs 11,066 7,984
22,736 19,538
Otherexpensesin2008includeasumof€170,000(2007:€1.1million)forthewrite-downonaccountsrecei-vable.Theotherexpensesin2008alsoincludeanamountof€2.5millioninconnectionwithfraudcommittedbyanemployeeofICTAutomatiseringN.V.
28) Received dividend of participating interests and interest
This concerns thedividend received in2008during thefirst sixmonths from ICTSoftwareEngineeringNordGmbH,Germanyand in2007thedividendreceivedfromStartAutomation inMalacky,Slovakia.The interestcomprisespaidandreceivedbankinterest.
Supervisor directors and former supervisory directorsThemembersoftheSupervisoryBoardhavenooptionsasof31December2008.
2008 Outstanding
options at 31.12.2007
Lapsed, unexercised
options
Exercised options
Granted in 2008
Outstanding options at
31.12.2008 Executive directors
A. Schot 120,000 - - 20,000 140,000
J. Oberg – - - 20,000 20,000
120,000 - - 40,000 160,000
Supervisory directors and former supervisory directors The members of the Supervisory Board have no options as of 31 December 2008. 2007 Outstanding
options at 31.12.2006
Lapsed, unexercised
options
Exercised options
Granted in 2007
Outstanding options at
31.12.2007 Executive directors
A. Schot 140,000 - 40,000 20,000 120,000
J. Oberg - - - - -
140,000 - 40,000 20,000 120,000
(Former) supervisory directors
W. de Vlugt 6,000 - 6,000 - -
H.A.D. van den Boogaard 6,000 - 6,000 - -
C. Kämper 6,000 - 6,000 - -
P. Zuidema - - - - -
18,000 - 18,000 - -
The item other operating expenses can be broken down as follows: (x € 1,000) 2008 2007
Automotive expenses 7,510 7,830 Premises 4,160 3,724 Other costs 11,066 7,984
22,736 19,538
2008 Outstanding
options at 31.12.2007
Lapsed, unexercised
options
Exercised options
Granted in 2008
Outstanding options at
31.12.2008 Executive directors
A. Schot 120,000 - - 20,000 140,000
J. Oberg – - - 20,000 20,000
120,000 - - 40,000 160,000
Supervisory directors and former supervisory directors The members of the Supervisory Board have no options as of 31 December 2008. 2007 Outstanding
options at 31.12.2006
Lapsed, unexercised
options
Exercised options
Granted in 2007
Outstanding options at
31.12.2007 Executive directors
A. Schot 140,000 - 40,000 20,000 120,000
J. Oberg - - - - -
140,000 - 40,000 20,000 120,000
(Former) supervisory directors
W. de Vlugt 6,000 - 6,000 - -
H.A.D. van den Boogaard 6,000 - 6,000 - -
C. Kämper 6,000 - 6,000 - -
P. Zuidema - - - - -
18,000 - 18,000 - -
26) Loans to members of the Supervisory Board and the Executive Board
Atthebalancesheetdatetherewerenoreceivablestotheexecutivedirectororthesupervisorydirectors.
27) Other operating expenses
Theitemotheroperatingexpensescanbebrokendownasfollows:
��
Financial Statements 200�
29) Tax
Thetaxburdencanbebrokendownasfollows:
The tax burden can be broken down as follows: (x € 1,000) 2008 2007
Result before taxation 7,324 8,281
Specification of the tax amount:
Profit tax based on prevailing rate, in the Netherlands 25.5% (2007: 25.5%)
1,867
2,112
Effect of tax against a lower rate on the first tax brackets and the effect of non-deductible costs
(6) (17)
Effect of rate differences in foreign regimes 101 149
Effect of taxes pursuant to participation exemption (33)
(44)
Taxes 1,929 2,200
Effective tax burden 26.3% 26.6%
For German compensation loss a deferred tax receivable has been included of € 204,000 (2007: € 291,000). The deferred tax receivable has been included because profit is expected in the future to make use of losses over the years to come. Reconciliation between profit tax and tax burden in the profit and loss account is as follows:
2008 2007
Current profit tax 1,782 1,749
Movement in deferred taxes 147 451
1,929 2,200
The development of passive tax deferrals can be broken down as follows: (x € 1,000) In the consolidated balance sheet In the consolidated profit and loss
account
2008 2007 2008 2007
Deferred tax 234 - (234) -
234 - (234) -
The passive tax deferrals concern the difference in valuation for commercial and tax purposes of the work in Germany. The passive tax deferrals are short term.
ForGermancompensationlossadeferredtaxreceivablehasbeenincludedof€204,000(2007:€291,000).Thedeferredtaxreceivablehasbeenincludedbecauseprofitisexpectedinthefuturetomakeuseoflossesovertheyearstocome.
Reconciliationbetweenprofittaxandtaxburdenintheprofitandlossaccountisasfollows:
The tax burden can be broken down as follows: (x € 1,000) 2008 2007
Result before taxation 7,324 8,281
Specification of the tax amount:
Profit tax based on prevailing rate, in the Netherlands 25.5% (2007: 25.5%)
1,867
2,112
Effect of tax against a lower rate on the first tax brackets and the effect of non-deductible costs
(6) (17)
Effect of rate differences in foreign regimes 101 149
Effect of taxes pursuant to participation exemption (33)
(44)
Taxes 1,929 2,200
Effective tax burden 26.3% 26.6%
For German compensation loss a deferred tax receivable has been included of € 204,000 (2007: € 291,000). The deferred tax receivable has been included because profit is expected in the future to make use of losses over the years to come. Reconciliation between profit tax and tax burden in the profit and loss account is as follows:
2008 2007
Current profit tax 1,782 1,749
Movement in deferred taxes 147 451
1,929 2,200
The development of passive tax deferrals can be broken down as follows: (x € 1,000) In the consolidated balance sheet In the consolidated profit and loss
account
2008 2007 2008 2007
Deferred tax 234 - (234) -
234 - (234) -
The passive tax deferrals concern the difference in valuation for commercial and tax purposes of the work in Germany. The passive tax deferrals are short term.
��
The tax burden can be broken down as follows: (x € 1,000) 2008 2007
Result before taxation 7,324 8,281
Specification of the tax amount:
Profit tax based on prevailing rate, in the Netherlands 25.5% (2007: 25.5%)
1,867
2,112
Effect of tax against a lower rate on the first tax brackets and the effect of non-deductible costs
(6) (17)
Effect of rate differences in foreign regimes 101 149
Effect of taxes pursuant to participation exemption (33)
(44)
Taxes 1,929 2,200
Effective tax burden 26.3% 26.6%
For German compensation loss a deferred tax receivable has been included of € 204,000 (2007: € 291,000). The deferred tax receivable has been included because profit is expected in the future to make use of losses over the years to come. Reconciliation between profit tax and tax burden in the profit and loss account is as follows:
2008 2007
Current profit tax 1,782 1,749
Movement in deferred taxes 147 451
1,929 2,200
The development of passive tax deferrals can be broken down as follows: (x € 1,000) In the consolidated balance sheet In the consolidated profit and loss
account
2008 2007 2008 2007
Deferred tax 234 - (234) -
234 - (234) -
The passive tax deferrals concern the difference in valuation for commercial and tax purposes of the work in Germany. The passive tax deferrals are short term.
Financial Statements 200�
��
Thedevelopmentofpassivetaxdeferralscanbebrokendownasfollows:
De passieve belastinglatentie heeft betrekking op het verschil in commerciële en fiscale waardering van hetonderhandenwerkinDuitsland.Depassievebelastinglatentieiskortlopend.
30) Profit per share
Thefollowingtablereflectstheincomeandsharedatausedinthebasicanddilutedearningspersharecompu-tations:
2008 2007 •Weightedaveragenumberofoutstandingordinaryshares 8,548,760 8,273,433 •Effectofdilutionduetograntedsharesbyvirtueofoutstandingrightsnotcoveredbytreasuryshares - 1,300
•Weightedaveragenumberofoutstandingordinarysharesforcalculatingtheeffectofdilution 8,548,760 8,413,827 •Netprofitattributabletoshareholders €5,288,000 €6,081,000 2008 2007 •Earningsperordinarysharein€ €0.62 €0.74 •Earningsperordinarysharein€takingintoaccounttheeffectofdilution €0.62 €0.72 Thedilutionin2007iscausedbyuncoveredoutstandingoptions(werefertonotes12and22).In2008therewasnodilutioncausedbyoutstandingoptionsasalloptionsareoutofthemoney.
Financial Statements 200�
31) Auditor’s costs
In2008thegroupaccountant’sfeeforauditingthefinancialstatementsamountedtoapproximately€125,000(2007:€125,000). In2008thecostsofaudit-relatedworksuchasdeclarativepronouncementsamountedtoapproximately€10,000(2007:€10,000).
Notes to the consolidated cash flow statement
General policiesThe cash flow statement was drawn up using the direct method. Receipts and expenses related to interest,receiveddividendandcorporateincometaxareincludedinthecashflowsfromoperatingactivities.Paiddividendsareincludedinthecashflowsfromfinancingactivities.
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Chapter �: Company financial statements 200�
�0
Company balance sheet per 31 December 200�
Company profit and loss account over 200�
Notes to the Company balance sheet
�1
Company financial statements 200�
Company balance sheet at 31 December 2008 (Before profit appropriation) (x € 1,000) 2008 2007
Note
Assets
FIXED ASSETS
Tangible fixed assets 2) 1,133 1,015
Intangible fixed assets 3) 19,085 14,864
Financial fixed assets 4) 25,314 19,297
45,532 35,176
CURRENT ASSETS
Receivables 5) 8,141 9,636
Cash and cash equivalents 2 351
8,143 9,987
53,675 45,163
Liabilities
SHAREHOLDERS’ EQUITY 6)
Issued capital 875 845
Share premium 8,411 8,476
Other reserves 30,680 25,715
Profit for the financial year 5,288 6,081
45,254 41,117
LONG-TERM LIABILITIES 9) 1,000 1,200
CURRENT LIABILITIES 10) 7,421 2,846
53,675 45,163
Company balance sheet at 31 December 2008 (Before profit appropriation) (x € 1,000) 2008 2007
Note
Assets
FIXED ASSETS
Tangible fixed assets 2) 1,133 1,015
Intangible fixed assets 3) 19,085 14,864
Financial fixed assets 4) 25,314 19,297
45,532 35,176
CURRENT ASSETS
Receivables 5) 8,141 9,636
Cash and cash equivalents 2 351
8,143 9,987
53,675 45,163
Liabilities
SHAREHOLDERS’ EQUITY 6)
Issued capital 875 845
Share premium 8,411 8,476
Other reserves 30,680 25,715
Profit for the financial year 5,288 6,081
45,254 41,117
LONG-TERM LIABILITIES 9) 1,000 1,200
CURRENT LIABILITIES 10) 7,421 2,846
53,675 45,163
Companybalancesheetat31December2008(Beforeprofitappropriation)
�2
Company profit and loss account for 2008 (x € 1,000) 2008 2007
Profit of participation interests after taxation 5,049 3,793
Other profit after taxation 239 2,288
Net profit 5,288 6,081
Notes to the company balance sheet
1) General
ThecompanyfinancialstatementsofICTAutomatiseringN.V.havebeenpreparedinaccordancewiththefinancialreportingrequirementsgenerallyacceptedintheNetherlandsandthelegalstipulationsconcerningthefinancialstatements as referred to in Part 9 Book 2 of the Dutch Civil Code upon the application of the accountingprinciplesandasappliedintheconsolidatedfinancialstatements.Investmentsingroupcompaniesarecarriedatnetassetvalueupontheapplicationoftheaccountingprinciplesalsousedintheconsolidatedfinancialstate-ments.Non-consolidatedparticipatinginterestsatwhichnosubstantialeffectisexercisedarecarriedatcostlessthenecessarydepreciation.
FortheinformationongroupcompaniesofICTAutomatiseringN.V.pleaserefertonote18oftheconsolidatedfinancialstatements.
Financial fixed assetsFinancialfixedassetsthatareavailableforsale,beingaparticipationinwhichnosignificantinfluenceisexercised,becausethefairvaluecannotbereliablydetermined,arevaluedatacquisitionpriceafterdeductingpossiblevalueimpairments.
Company financial statements 200�
�3
Company financial statements 200�
2) Tangible fixed assets
2008
Thefollowingoverviewshowsmovementsintheassetsincludedunderthisbalanceitemduring2008:
The following overview shows movements in the assets included under this balance item during 2008: (x € 1,000) Computer Other fixed assets Total
equipment
Total cost at 1 January 2,315 1,315 3,630
Accumulated depreciation at 1 January (1,557) (1,058) (2,615)
Net book value at 1 January 758 257 1,015
Movements in cost
Additions 371 79 450
Disposals (30) - (30)
Total movements in cost 341 79 420
Movements in depreciation
Disposals 30 - 30
Depreciation (244) (88) (332)
Total movements in depreciation (214) (88) (302)
Net book value at 31 December 885 248 1,133
Total cost at 31 December 2,656 1,394 4,050
Total depreciation at 31 December (1,771) (1,146) (2,917)
885 248 1,133
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Company financial statements 200�
20072007:
(x € 1,000) Computer Other fixed assets Total
equipment
Total cost at 1 January 1,888 1,250 3,138
Total depreciation at 1 January (1,390) (982) (2,372)
Net book value at 1 January 498 268 766
Movement in cost
Additions 427 65 492
Disposals (1) - (1)
Total movements in cost 426 65 491
Movements in depreciation
Disposals 1 - 1
Depreciation (167) (76) (243)
Total movements in depreciation (166) (76) (242)
Net book value at 31 December 758 257 1,015
Total cost at 31 December 2,315 1,315 3,630
Total depreciation at 31 December (1,557) (1,058) (2,615)
758 257 1,015
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Company financial statements 200�
3) Intangible fixed assets
Thegoodwillconcernsthefollowingcashgeneratingunits:
Thecomparativefigureson2007havebeenadjustedtocomplywiththepresentationofthefiguresinaccor-dancewiththeyearunderreview.
4) Financial fixed assets
Thefinancialfixedassetsconsistentirelyofparticipatinginterestsingroupcompanies,joint-venturecompaniesandthe50%participatinginterestinStartAutomationLtd.inMalacky,Slovakia.
Movementinthenetassetvalueisasfollows:
The goodwill concerns the following cash generating units: (x € 1,000) 2008 2007
ICT Solutions B.V. (formerly Procos Engineers & Consultants B.V.)
7,807
7,807 ICT Software Engineering Nord GmbH (formerly Lineas Automotive GmbH)
7,610
3,389
Other acquisitions 3,668 3,668
19,085 14,864
Movement in the net asset value is as follows: (x € 1,000) 2008 2007
Balance on 1 January 19,297 17,232
Additions and capital contributions 4,871 3
Transfer within a group - 37
Share of profit of participating interests 5,049 3,793
Dividend received (3,903) (1,768)
Balance on 31 December 25,314 19,297
The goodwill concerns the following cash generating units: (x € 1,000) 2008 2007
ICT Solutions B.V. (formerly Procos Engineers & Consultants B.V.)
7,807
7,807 ICT Software Engineering Nord GmbH (formerly Lineas Automotive GmbH)
7,610
3,389
Other acquisitions 3,668 3,668
19,085 14,864
Movement in the net asset value is as follows: (x € 1,000) 2008 2007
Balance on 1 January 19,297 17,232
Additions and capital contributions 4,871 3
Transfer within a group - 37
Share of profit of participating interests 5,049 3,793
Dividend received (3,903) (1,768)
Balance on 31 December 25,314 19,297
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Company financial statements 200�
5) Receivables
Thecompositionofthereceivablesisasfollows:
Otherreceivablesatend-2007includegovernmentsubsidiesforanamountof€0.6million.Attheendof2008therewerenofurtheritemsforgovernmentsubsidiesinthereceivablesbalance.
Theprepaymentsandaccruedincomemainlyrelatetoprepaymentsmadetosuppliers.Allitemsfallduewithinoneyear.
6) Shareholders’ equity
Issued capitalTheauthorisedsharecapitalamountsto€3,750,000dividedinto18,700,000ordinarysharesof€0.10nominalvalueeachand18,800,000cumulativepreferencesharesof€0.10nominalvalueeach.
Thenumberofsharesissuedandpaidupat31December2008amountedto8,747,544(2007:8,452,927).
For the movement schedule of issued capital, share premium, other reserves and profit for the year pleaserefertothespecificationoftheconsolidatedstatementsofchangeinshareholders’equityfortheyearsended31December2008and31December2007.Forinformationontreasurysharespleasereferto12intheconso-lidatedfinancialstatements.
7) Options
Foraspecificationofoptionspleaserefertonote22intheconsolidatedfinancialstatements.
8) Pension
Foraspecificationofpensionspleaserefernote13oftheconsolidatedfinancialstatements.
The composition of the receivables is as follows: (x € 1,000) 2008 2007
Trade receivables 24 34
Group companies 5,548 6,582
Other receivables 1,782 2,092
Prepayments and accrued income 787 928
Balance at 31 December 8,141 9,636
��
Company financial statements 200�
9) Received in advance
Thisconcernsapaymentreceivedarisingfromalong-termcontractfortheannualamountof€200,000andchargedintheprofitandlossaccounttocreditrentalcharges.
10) Current liabilities
Thecurrentliabilitiescanbebrokendownasfollows:
11) Tax
ICT Embedded B.V., ICT Solutions B.V., RDS Holding B.V., ICT NoviQ B.V., and Atemex Holding B.V. and allsubsidiariesfallingundertheseoperationsarepartofthefiscalentityICTAutomatiseringN.V.forcorporatetaxpurposesat31December2008.
12) Commitments not disclosed on the balance sheet
Exceptfortheguaranteesandleasecommitmentspleaserefertotheapplicablenotesforthisitemintheconso-lidatedfinancialstatements(note16).
AtbalancesheetdatetheguaranteesoutstandingfortheICTGroupamountedto€542,000(2007:€470,000).Theseguaranteeswereprovidedinaccordancewithcurrentrentalcommitments.
The liabilitiesrelatedtotheoperating leasesforcarsforemployeeseachhaveatermoffouryears.Thetotalexpensesarisingfromleasecommitmentsamounttoaround€1.2million,around€0.3millionofwhichwithatermoflessthanoneyearandtheremainingamountwithatermofbetweenoneandfiveyears.
The current liabilities can be broken down as follows: (x € 1,000) 2008 2007
Trade payables 437 398
Group companies 173 110
Taxes and social security contributions 184 174
Pension related liabilities 859 1,194
Bank 3,396 0
Other liabilities 2,066 589
Accruals and deferred income 306 381
7,421 2,846
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Company financial statements 200�
13) Employees
TheaveragenumberofstaffemployedbytheICTAutomatiseringN.V.anditsgroupcompaniesin2007,infulltimeequivalentswas972(2007:907).
14) Remuneration of the Executive Board and the Supervisory Board
FortheremunerationoftheExecutiveBoardandtheSupervisoryBoardpleaserefertonote23oftheconsoli-datedfinancialstatements.
Barendrecht,20April2009
Executive Board Supervisory BoardA.SchotRA(Chairman) mr.W.deVlugt(Chairman)ir.J.Oberg C.Kämper dr.ir.P.Zuidema B.F.KostwinderRA ir.C.A.G.D’Agnolo
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�0
Chapter 10: Other information
Other information
Provision in the articles of association concerning the appropriation of profit
ThesalientpointsofArticle37oftheArticlesofAssociationprovisionconcerningtheappropriationofprofitareasfollows:
PursuanttolawICTAutomatiseringN.V.mayonlydistributedividendstotheextentthatitsshareholders’equityexceedstheamountofpaid-upandcalled-upsharecapitalplusthereservesrequiredtobemaintainedbylawandtheArticleofAssociation.Ifpreferenceshareshavebeenissued,thedividendshallfirstbedistributedonthepreferencesharesfromprofitavailable fordistribution.Thepreferencedividendshallbeapercentageof theamountpaiduponthepreferencesharesconcerned,equaltotheaveragemonthlyEURIBORrate,weightedbythenumberofdaysitwasinforce,duringthefinancialyeartowhichthedividendrelates,plustwopercent.Ifinagivenyearthepreferencedividendisnotpaidinfullorinpart,nodividendsshallbedistributedinsubsequentyearsuntiltheshortfallhasbeenmadegood.Followingdistributionof thepreferencedividend, theExecutiveBoardshall, subject to theapprovaloftheSupervisoryBoard,addasmuchasitdeemsnecessarytoreserves,uptoamaximumof60%oftheprofitfortheyear,subjecttotheapprovaloftheAnnualGeneralMeeting.AnyprofitnotsoaddedtoreservesisatthefreedisposaloftheAnnualGeneralMeetingtobereservedinpartorinfull,orpayableinpartorinfulltoholdersofordinarysharesinproportiontothenumberofordinarysharesheld.TheAnnualGeneralMeetingmay,ontheproposaloftheExecutiveBoardandsubjecttotheapprovaloftheSupervisoryBoard,resolvethatthedividendonordinarysharesbepaidinfullorinpartintheformofordinaryshares.TheExecutiveBoardcandeclareinterimdividends,subjecttotheapprovaloftheSupervisoryBoard.
Proposed appropriation of profit
ItwillbeproposedtotheAnnualGeneralMeetingon27May2009thatadividendbedeclaredof€0.25pershareof€0.10nominaleach,payableincash.Stichting Continuïteit ICT (ICT Continuity Foundation)TheBoardoftheStichtingContinuïteit ICTconsistsoffourmemberswhoare independent.The independentmembersareMr.drs.M.W.Dekker,Mr.Jhr.mr.E.BeelaertsvanBlokland,Mr.mr.H.R.OkkensandMr.drs.P.F.PlaizierRA.Mr.C.Kämper,inhiscapacityofSupervisoryBoardmemberofICTAutomatiseringN.V.,isanadvisorymemberoftheBoardoftheStichtingContinuïteitICT.
(x € 1,000) 2008
Dividend 2,187
Addition to reserves 3,101
5,288
�1
Other information
Statement of IndependenceTheBoardofStichtingContinuïteitICTandtheExecutiveBoardofICTAutomatiseringN.V.jointlydeclarethatthemembersoftheBoardofStichtingContinuïteitICTsatisfytheindependencerequirementsapplyingtothem.
Relevant events occurring after balance sheet dateOn19February2009ICTAutomatiseringN.V.announcedthatduetopooreconomicconditionstheorganisationwillbeforcedtoundergoareorganisationintheNetherlandsoverthecomingperiod.Thismeansapproximately70 jobs will be lost. The related reorganisation costs are expected to amount to between € 3.5 and € 4.0million.
ThemajorityofthejobcutswilloccurintheEmbeddeddivision.ItismainlyherethatICT’sclientsaresufferingfromtheeconomicdownturn.However,jobswillalsobelostintheotherdivisionsaswellassupportservices.Althoughthejoblosseswillpartlyberealisedthroughnaturalwastage,notfillingvacanciesandnotextendingtemporarycontracts,aconsiderablepartofthelosseswillhavetobeachievedbyforcedredundancy.
Thenon-recurringcostsrelatingtotheabove-mentionedmeasureswillbechargedtothe2009results.
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Other information
AUDITOR’S REPORT
To: the Shareholders, the Supervisory Board and theExecutiveBoardofICTAutomatiseringN.V.
Auditor’s reportReport on the financial statementsWe have audited the accompanying financial state-ments2008of ICTAutomatiseringN.V.,Barendrecht,whichcomprisetheconsolidatedandcompanybalancesheet as at December 31, 2008, the profit and lossaccount,statementofchangesinequityandcashflowstatementfortheyearthenendedandasummaryofsignificant accounting policies and other explanatorynotes.
Management’s responsibility Managementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewith International Financial Reporting Standards asadoptedbytheEuropeanUnionandwithPart9ofBook2 of the Netherlands Civil Code, and for the prepa-rationofthemanagementboardreportinaccordancewithPart9ofBook2of theNetherlandsCivilCode.This responsibility includes: designing, implementingandmaintaininginternalcontrolrelevanttotheprepa-rationandfairpresentationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherdueto fraud or error; selecting and applying appropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.
Auditor’s responsibilityOur responsibility is to express an opinion on thefinancialstatementsbasedonouraudit.Weconductedour audit in accordance with Dutch law. This lawrequires that we comply with ethical requirementsandplanandperformtheaudit toobtainreasonableassurance whether the financial statements are freefrommaterialmisstatement.An audit involves performing procedures to obtainaudit evidence about the amounts and disclosuresin the financial statements. The procedures selecteddepend on the auditor’s judgment, including the
assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmaking those risk assessments, the auditor considersinternalcontrolrelevanttotheentity’spreparationandfair presentation of the financial statements in ordertodesignauditproceduresthatareappropriateinthecircumstances,butnot for thepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropri-atenessofaccountingpoliciesusedand the reasona-blenessofaccountingestimatesmadebymanagement,as well as evaluating the overall presentation of thefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
OpinionInouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionofICTAutomatiseringN.V.asatDecember31,2008,andofitsresultanditscashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheNetherlandsCivilCode.
Report on other legal and regulatory requirementsPursuant to the legal requirement under 2:393 sub5part fof theNetherlandsCivilCode,we report, totheextentofourcompetence,thatthemanagementboardreportisconsistentwiththefinancialstatementsas required by 2:391 sub 4 of the Netherlands CivilCode.
Rotterdam,April20,2009
Ernst&YoungAccountantsLLP
w.g.A.A.HeijRA
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Other information
Five-year financial summaryFive-year financial summary 2008 2007 2006 2005 2004
Results (x € 1,000)
Revenue 3) 97,490 88,285 80,663 69,112 64,958
Operating profit 6,773 7,770 8,026 9,703 6,697
Net profit 5) 5,288 6,081 6,212 7,243 5,253
Depreciation on tangible fixed assets 746 477 698 763 1,014
Cash flow (net profit plus depreciation) 5) 6,034 6,558 6,910 8,006 6,267
Dividend 2,187 4,827 4,835 5,290 4,461
Balance sheet (x € 1,000)
Tangible fixed assets 2,763 1,897 1,166 1,191 1,618
Intangible fixed assets 24,347 17,835 12,990 - -
Financial fixed assets 234 321 772 30 30
Current assets 37,877 39,941 42,429 51,539 45,836
Provisions 234 - - - -
Long-term liabilities 4) 1,000 1,200 1,400 1,600 -
Current liabilities 4) 18,733 17,677 17,295 12,067 11,147
Shareholders’ equity 45,254 41,117 38,662 39,093 36,337
Total assets 65,221 59,994 57,357 52,760 47,484
Employees
Average number of employees (FTEs) 972 907 820 728 763
Net revenue 3) per employee (x € 1,000)
100 97 98 95 85
Operating profit per employee (x € 1,000)
7 9 10 13 9
Ratios
Operating profit/revenue 3) 0.07 0.09 0.10 0.14 0.10
Net profit/revenue 3) 5) 0.05 0.07 0.08 0.10 0.08
Net profit/average shareholders’ equity 5) 0.12 0.15 0.16 0.19 0.15
Current assets/current liabilities 4) 2.02 2.26 2.45 4.27 4.11
Group equity/total assets 0.69 0.69 0.67 0.74 0.77
Per share of € 0.10 (nominal value each in euros)
Net profit 1) 5) 0.62 0.74 0.76 0.88 0.64
Cash flow (net profit plus depreciation) 1) 5) 0.71 0.79 0.84 0.97 0.76
Dividend 2) 0.25 0.58 0.59 0.64 0.54
Shareholders’ equity 2) 5.17 4.95 4.72 4.73 4.40
Number of ordinary shares at year end 8,747,544 8,313,833 8,195,139 8,265,444 8,260,481
Average number of ordinary shares outstanding during the year 8,548,760
8,273,433
8,198,077
8,262,962
8,260,481
1) Based on the average number of ordinary shares. 2) Based on the number of ordinary shares at year end. 3) Revenue comprises revenue other income. 4) The comparative figures for 2005 are adjusted as a result of reclassification 5) In the other data the term net profit is equated to the share of net profit of holders of equity instruments of the parent
company
Five-year financial summary 2008 2007 2006 2005 2004
Results (x € 1,000)
Revenue 3) 97,490 88,285 80,663 69,112 64,958
Operating profit 6,773 7,770 8,026 9,703 6,697
Net profit 5) 5,288 6,081 6,212 7,243 5,253
Depreciation on tangible fixed assets 746 477 698 763 1,014
Cash flow (net profit plus depreciation) 5) 6,034 6,558 6,910 8,006 6,267
Dividend 2,187 4,827 4,835 5,290 4,461
Balance sheet (x € 1,000)
Tangible fixed assets 2,763 1,897 1,166 1,191 1,618
Intangible fixed assets 24,347 17,835 12,990 - -
Financial fixed assets 234 321 772 30 30
Current assets 37,877 39,941 42,429 51,539 45,836
Provisions 234 - - - -
Long-term liabilities 4) 1,000 1,200 1,400 1,600 -
Current liabilities 4) 18,733 17,677 17,295 12,067 11,147
Shareholders’ equity 45,254 41,117 38,662 39,093 36,337
Total assets 65,221 59,994 57,357 52,760 47,484
Employees
Average number of employees (FTEs) 972 907 820 728 763
Net revenue 3) per employee (x € 1,000)
100 97 98 95 85
Operating profit per employee (x € 1,000)
7 9 10 13 9
Ratios
Operating profit/revenue 3) 0.07 0.09 0.10 0.14 0.10
Net profit/revenue 3) 5) 0.05 0.07 0.08 0.10 0.08
Net profit/average shareholders’ equity 5) 0.12 0.15 0.16 0.19 0.15
Current assets/current liabilities 4) 2.02 2.26 2.45 4.27 4.11
Group equity/total assets 0.69 0.69 0.67 0.74 0.77
Per share of € 0.10 (nominal value each in euros)
Net profit 1) 5) 0.62 0.74 0.76 0.88 0.64
Cash flow (net profit plus depreciation) 1) 5) 0.71 0.79 0.84 0.97 0.76
Dividend 2) 0.25 0.58 0.59 0.64 0.54
Shareholders’ equity 2) 5.17 4.95 4.72 4.73 4.40
Number of ordinary shares at year end 8,747,544 8,313,833 8,195,139 8,265,444 8,260,481
Average number of ordinary shares outstanding during the year 8,548,760
8,273,433
8,198,077
8,262,962
8,260,481
1) Based on the average number of ordinary shares. 2) Based on the number of ordinary shares at year end. 3) Revenue comprises revenue other income. 4) The comparative figures for 2005 are adjusted as a result of reclassification 5) In the other data the term net profit is equated to the share of net profit of holders of equity instruments of the parent
company
Five-year financial summary 2008 2007 2006 2005 2004
Results (x € 1,000)
Revenue 3) 97,490 88,285 80,663 69,112 64,958
Operating profit 6,773 7,770 8,026 9,703 6,697
Net profit 5) 5,288 6,081 6,212 7,243 5,253
Depreciation on tangible fixed assets 746 477 698 763 1,014
Cash flow (net profit plus depreciation) 5) 6,034 6,558 6,910 8,006 6,267
Dividend 2,187 4,827 4,835 5,290 4,461
Balance sheet (x € 1,000)
Tangible fixed assets 2,763 1,897 1,166 1,191 1,618
Intangible fixed assets 24,347 17,835 12,990 - -
Financial fixed assets 234 321 772 30 30
Current assets 37,877 39,941 42,429 51,539 45,836
Provisions 234 - - - -
Long-term liabilities 4) 1,000 1,200 1,400 1,600 -
Current liabilities 4) 18,733 17,677 17,295 12,067 11,147
Shareholders’ equity 45,254 41,117 38,662 39,093 36,337
Total assets 65,221 59,994 57,357 52,760 47,484
Employees
Average number of employees (FTEs) 972 907 820 728 763
Net revenue 3) per employee (x € 1,000)
100 97 98 95 85
Operating profit per employee (x € 1,000)
7 9 10 13 9
Ratios
Operating profit/revenue 3) 0.07 0.09 0.10 0.14 0.10
Net profit/revenue 3) 5) 0.05 0.07 0.08 0.10 0.08
Net profit/average shareholders’ equity 5) 0.12 0.15 0.16 0.19 0.15
Current assets/current liabilities 4) 2.02 2.26 2.45 4.27 4.11
Group equity/total assets 0.69 0.69 0.67 0.74 0.77
Per share of € 0.10 (nominal value each in euros)
Net profit 1) 5) 0.62 0.74 0.76 0.88 0.64
Cash flow (net profit plus depreciation) 1) 5) 0.71 0.79 0.84 0.97 0.76
Dividend 2) 0.25 0.58 0.59 0.64 0.54
Shareholders’ equity 2) 5.17 4.95 4.72 4.73 4.40
Number of ordinary shares at year end 8,747,544 8,313,833 8,195,139 8,265,444 8,260,481
Average number of ordinary shares outstanding during the year 8,548,760
8,273,433
8,198,077
8,262,962
8,260,481
1) Based on the average number of ordinary shares. 2) Based on the number of ordinary shares at year end. 3) Revenue comprises revenue other income. 4) The comparative figures for 2005 are adjusted as a result of reclassification 5) In the other data the term net profit is equated to the share of net profit of holders of equity instruments of the parent
company
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OFFICES
NETHERLANDS
ICT Automatisering N.V.
Kopenhagen9,2993LLBarendrecht
ICT Embedded B.V.
■ Kopenhagen9,2993LLBarendrecht
■ Munsterstraat7,7418EVDeventer
■ Kadijk7,9747ATGroningen
■ ScienceParkEindhoven5006,5692EASon
ICT Solutions B.V.
■ Kopenhagen9,2993LLBarendrecht
■ Voltastraat4,4622RPBergenopZoom
■ Munsterstraat7,7418EVDeventer
■ KleineLandtong15,4201HLGorinchem
■ Kadijk7,9747ATGroningen
■ Energieplein8,2031TCHaarlem
■ Horsterweg18g,6199ACMaastrichtAirport
■ ScienceParkEindhoven5006,5692EASon
ICT NoviQ B.V.
■ ScienceParkEindhoven5006,5692EASon
Rijnmond Distributie Services B.V.
■ Seattleweg15,3195NDRotterdam
InTraffic B.V.
■ Iepenhoeve11,3438MRNieuwegein
Rialtosoft B.V.
■ Luchthavenweg81-unit220,5657EAEindhoven
Improve Quality Services B.V.
■ LaanvanDiepenvoorde1,5582LAWaalre
■ Iepenhoeve13,3438MRNieuwegein
GERMANY
ICT Software Engineering GmbH
■ Hanns-Klemm-Straße5,71034Böblingen(Stuttgart)
ICT Software Engineering Nord GmbH
■ Theodor-Heuss-Straße2,38122Braunschweig
■ Schachtweg1,38440Wolfsburg
ICT Software Engineering SüdWest GmbH
■ Bahnhofplatz8,76137Karlsruhe
■ Lindenstraße11,67433Neustadt
■ Hanns-Klemm-Straße5,71034Böblingen(Stuttgart)
ICT Software Engineering SüdOst GmbH
■ FürtherStraße212,GebäudeB1.2,90429Nürnberg
■ St.MichaelStraße3,90429Ingolstadt
■ MoosacherStraße56a,80809München
POLAND
ICT Poland
■ ul.Chmielna26,80-748Gdansk
CONTACT DETAILS
Kopenhagen 9, 2993 LL Barendrecht
Postbus 121, 2990 AC Barendrecht
Tel: 0180-646000
Fax: 0180-646001
Info: www.ict.nl,www.werkenbijict.nl
E-mail: [email protected]
ICT Advanced Thinking
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Jaarverslag 2008
ICTAdvanced Thinking