Notes to the company balance sheet and income statement

35. Basis of preparation

The company financial statements of Ordina N.V. have been prepared in accordance with the provisions of Part 9, Book 2, of the Netherlands Civil Code. In preparing these financial statements, the company availed itself of the facility offered by Section 362(8), Book 2, of the Netherlands Civil Code to use the same accounting policies (including those for the presentation of financial instruments as equity or liabilities) for the company and the consolidated financial statements.

The company financial statements of Ordina N.V. are presented in euros (EUR). Amounts are in thousands of euros, unless indicated otherwise.

The accounting policies for the company financial statements are the same as for the consolidated financial statements. If no further policies are mentioned, reference is made to the accounting policies for the consolidated financial statements.

35.2.1 Financial assets/Investments in associates

Subsidiaries and group companies in which Ordina N.V. exercises control or in which Ordina N.V. is responsible for central management are accounted for using the equity method. The equity method is a method of accounting whereby the net assets, liabilities and provisions of the group company are measured and profit is calculated based on the accounting policies used in the consolidated financial statements.

In applying the equity method, the company makes allowance for the transitional provisions for the measurement of items and the first-time adoption of the accounting policies applied in the consolidated financial statements (the IFRS 1 adjustments).

36. Intangible assets

This item can be broken down as follows:

	Goodwill	Total
Carrying amount at 1 January 2006	18,564	18,564
Changes in 2006
Additions	-	-
Carrying amount at 31 December 2006	18,564	18,564

	Goodwill	Total
Carrying amount at 1 January 2007	18,564	18,564
Changes in 2007
Additions	-	-
Carrying amount at 31 December 2007	18,564	18,564

37. Financial assets

This item can be broken down as follows:

	Investments in group companies	Receivables from group companies	Total
Carrying amount at 1 January 2006	16,602	96,851	113,453
Changes in 2006
Investments/loans advanced	-	32,979	32,979
Actuarial gains and losses	-1,562	-	-1,562
Changes in fair value of cash flow hedges	218	-	218
Share of profit of associates	20,877	-	20,877
Carrying amount at 31 December 2006	36,135	129,830	165,965

	Investments in group companies	Receivables from group companies	Total
Carrying amount at 1 January 2007	36,135	129,830	165,965
Changes in 2007
Investments/loans advanced	1,221	49,575	50,796
Actuarial gains and losses	1,745	-	1,745
Changes in fair value of cash flow hedges	316	-	316
Share of profit of associates	21,622	-	21,622
Carrying amount at 31 December 2007	61,039	179,405	240,444

38. Deferred income tax assets

Deferred income tax assets can be broken down as follows:

	2007	2006
Intangible assets and property, plant and equipment	740	-
Recognised tax losses	56	1,059
At 31 December	796	1,059

Deferred income tax assets regarding intangible assets and property, plant and equipment relate to the temporary differences in valuation that arose due to the minimal tax depreciation period instituted in 2007. Assets are valued at fixed rates.

Tax losses are recognised if they are expected to be utilised (total at year-end 2007: approximately EUR 0.2 million; year-end 2006: approximately EUR 4.2 million). Measurement is at the fair value that will apply to future financial years. For notes to the scale and measurement of the tax losses of the Ordina Group as a whole, reference is made to Note 20.1.

39. Other receivables

This item can be broken down as follows:

	2007	2006
Prepayments and accrued income	157	1
At 31 December	157	1

40. Equity

Movements in equity in 2006 and 2007 were as follows:

	Issued capital	Share premium reserve	Hedging reserve	Statutory reserve	Retained earnings	Profit for the year	Total
At 1 January 2006	3,728	46,537	-	2,400	71,319	28,963	152,947
Prior-year dividend distribution	-	-	-	-	-	-7,505	-7,505
Prior-year retained earnings	-	-	-	-	21,458	-21,458	-
Issue at acquisitions	134	19,866	-	-	-	-	20,000
Issue at option exercise	29	2,695	-	-	-	-	2,724
Actuarial gains and losses	-	-	-	-	-1,562	-	-1,562
Changes in fair value of cash flow hedges	-	-	218	-	-	-	218
Share-based payment	5	549	-	-	276	-	830
Management participation	3	556	-	-	-	-	559
Profit for the year	-	-	-	-	-	25,828	25,828
Transfer to retained earnings	-	-19,866	-	-	19,866	-	-
Transfer to statutory reserves	-	-	-	6,360	-6,360	-	-
At 31 December 2006	3,899	50,337	218	8,760	104,997	25,828	194,039

	Issued capital	Share premium reserve	Hedging reserve	Statutory reserve	Retained earnings	Profit for the year	Total
At 1 January 2007	3,899	50,337	218	8,760	104,997	25,828	194,039
Prior-year dividend distribution	-	-	-	-	-	-8,210	-8,210
Prior-year retained earnings	-	-	-	-	17,618	-17,618	-
Issue at acquisitions	181	31,836	-	-	-	-	32,017
Issue at option exercise	35	3,551	-	-	-	-	3,586
Actuarial gains and losses	-	-	-	-	1,745	-	1,745
Changes in fair value of cash flow hedges	-	-	316	-	-	-	316
Share-based payment	4	476	-	-	224	-	704
Profit for the year	-	-	-	-	-	30,394	30,394
Transfer to retained earnings	-	-10,456	-	-	10,456	-	-
Transfer to statutory reserves	-	-	-	3,576	-3,576	-	-
At 31 December 2007	4,119	75,744	534	12,336	131,464	30,394	254,591

The statutory reserve relates to the carrying amount of the internally generated intangible assets (Note 2.5.6 and 7).

Ordina N.V. did not purchase treasury shares at year-end 2006 and 2007.

For notes to the movements in outstanding option rights in 2006 and 2007, reference is made to Note 16.2.

For notes to executive compensation, please refer to Note 33.2.2.

41. Other payables, accruals and deferred income

This item can be summarised as follows:

	2007	2006
Other payables	37	335
Accruals and deferred income	-	2
At 31 December	37	337

Nieuwegein, the Netherlands, 3 March 2008

Management Board

R. Kasteel, CEO
J.H. den Hartog, CFO

Supervisory Board

C.J. de Swart, chairman
E.P. de Boer
J.M.L. van Engelen
R.J. van de Kraats

List of subsidiaries