Notes to the company balance sheet and income statement

35. BASIS OF PREPARATION

35.1. Basis of preparation of company financial statements

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.

35.2. Accounting policies

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.

35.3. Financial assets/Investments in associates

Subsidiaries and group companies in which Ordina N.V. exercises control or where 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 2007		18,564	18,564
Changes in 2007
Additions		-	-
Disposals		-	-
Carrying amount at 31 December 2007		18,564	18,564

		Goodwill	Total
Carrying amount at 1 January 2008		18,564	18,564
Changes in 2008
Additions		-	-
Disposals		-	-
Carrying amount at 31 December 2008		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 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

		Investments in group companies	Receivables from group companies	Total
Carrying amount at 1 January 2008		61,039	179,405	240,444
Changes in 2008
Investments/loans advanced		-1,221	7,479	6,258
Actuarial gains and losses		-1,003	-	-1,003
Changes in fair value of cash flow hedges		-1,055	-	-1,055
Share of profit of associates		-117,081	-	-117,081
Carrying amount at 31 December 2008		-59,321	186,884	127,563

38. DEFERRED INCOME TAX ASSETS

Deferred income tax assets can be broken down as follows:

		2008	2007
Intangible assets and property, plant and equipment		1,604	740
Recognised tax losses		11,458	56
At 31 December		13,062	796

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 2008: approximately EUR 44.9 million; year-end 2007: approximately EUR 0.2 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 19.1.

39. OTHER RECEIVABLES

This item can be broken down as follows:

		2008	2007
Prepayments and accrued income		384	157
At 31 December		384	157

40. EQUITY

Movements in equity in 2007 and 2008 were as follows:

		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

		Issued capital	Share premium reserve	Hedging reserve	Statutory reserve	Retained earnings	Profit for the year	Total
At 1 January 2008		4,119	75,744	534	12,336	131,464	30,394	254,591
Prior-year dividend distribution		-	-	-	-	-	-8,250	-8,250
Prior-year retained earnings		-	-	-	-	22,144	-22,144	-
Issue at acquisitions		7	493	-	-	-	-	500
Issue at option exercise		2	154	-	-	-	-	156
Actuarial gains and losses		-	-	-	-	-1,003	-	-1,003
Changes in fair value of cash flow hedges		-	-	-1,055	-	-	-	-1,055
Share-based payment		5	691	-	-	-1,221	-	-525
Profit for the year		-	-	-	-	-	-81,134	-81,134
Transfer to retained earnings		-	-	-	-11,033	11,033	-	-
Transfer to statutory reserves		-	-	-	-	-	-	-
At 31 December 2008		4,133	77,082	-521	1,303	162,417	-81,134	163,280

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

Ordina N.V. did not purchase any treasury shares at year-end 2007 and 2008.

For notes to the movements in outstanding option rights in 2007 and 2008, reference is made to Note 14.2.

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:

		2008	2007
Other payables		22	37
Accruals and deferred income		-	-
At 31 December		22	37

Nieuwegein, the Netherlands, 5 March 2009

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

Supervisory Board
C.J. de Swart, chairman
E.P. de Boer
R.J. van de Kraats

List of subsidiaries/ principal associates