(15/02/2008) VAN DE VELDE : Results 2007

Turnover growth 5.9%, EBITDA growth 8.5% Results prepared in compliance with International Financial Reporting Standards as accepted within the European Union. +-------------------------------+-----------+-----------+------+ | Results In millions of euros |31.12.2007 |31.12.2006 | ±% | +-------------------------------+-----------+-----------+------+ | | IFRS | IFRS | | +-------------------------------+-----------+-----------+------+ | | | | | +-------------------------------+-----------+-----------+------+ |Net turnover | 130.3 | 123.0 | 5.9 | +-------------------------------+-----------+-----------+------+ |Operating Income | 132.2 | 124.2 | 6.4 | +-------------------------------+-----------+-----------+------+ |Operational Cash Flow (EBITDA) | 44.6 | 41.1 | 8.5 | +-------------------------------+-----------+-----------+------+ |Operational Profit (EBIT) | 41.7 | 38.8 | 7.4 | +-------------------------------+-----------+-----------+------+ |Net Financial Result | 2.1 | 4.9 | | +-------------------------------+-----------+-----------+------+ |Current Profit | 43.8 | 43.7 | 0.2 | +-------------------------------+-----------+-----------+------+ |Tax | 13.1 | 12.7 | 3.1 | +-------------------------------+-----------+-----------+------+ |Result after Tax | 30.7 | 31.1 | -1.3 | +-------------------------------+-----------+-----------+------+ |Share in Intimacy Profit | 0.3 | | | +-------------------------------+-----------+-----------+------+ |Group Share in Profit | 31.0 | 31.1 |- 0.3 | +-------------------------------+-----------+-----------+------+ +----------------------------+-----------+-----------+ | In euros per share | 12.2007 | 12.2006 | +----------------------------+-----------+-----------+ |Number of Shares |13,556,710 |13,556,710 | +----------------------------+-----------+-----------+ |Current Result before Taxes | 3.23 | 3.23 | +----------------------------+-----------+-----------+ |Result after Tax | 2.26 | 2.29 | +----------------------------+-----------+-----------+ |Group Share in Profit | 2.29 | 2.29 | +----------------------------+-----------+-----------+ |Closing Price on 30/12 | 37.75 | 39.3 | +----------------------------+-----------+-----------+ +-------------------------------------------+--------+--------+ |Concise balance sheet In millions of euros |12.2007 |12.2006 | +-------------------------------------------+--------+--------+ |Fixed Assets | 44.6 | 48.2 | +-------------------------------------------+--------+--------+ |Liquid Assets | 87.3 | 92.7 | +-------------------------------------------+--------+--------+ |Total Assets | 132.0 | 140.9 | +-------------------------------------------+--------+--------+ | | | | +-------------------------------------------+--------+--------+ |Shareholders' Equity | 118.3 | 126.8 | +-------------------------------------------+--------+--------+ |Provisions and Deferred Taxes | 3.9 | 3.9 | +-------------------------------------------+--------+--------+ |Debts | 9.8 | 10.2 | +-------------------------------------------+--------+--------+ |Total Liabilities | 132.0 | 140.9 | +-------------------------------------------+--------+--------+ Main Developments in 2007 Net turnover Turnover rose by 7.3 million euros from 123.0 million euros at the end of 2006 to 130.3 million euros at the end of 2007, an increase of 5.9%. PrimaDonna again posted the strongest growth (+7.9%) and now accounts for 45% of total turnover. Turnover outside the euro zone grew 21.8%. The euro zone does however continue to be the strongest market, accounting for 76% of total turnover Operational Cash Flow Operational cash flow (EBITDA) was 44.6 million euros (+8.5%), a rise due to a better gross margin and good cost management. The gross margin rose slightly due to an improved write-down of stocks against turnover. Those write-downs had increased sharply in recent years as a consequence of a broader collection and a conscious increase in stock positions. Investments to improve demand forecasting have reversed this trend. Sales costs rose less strongly than turnover. The sales-support services continued to be rolled out in 2007. Extra resources were channelled to the PrimaDonna Styling and Marie Jo Styling programme in particular, which was introduced among more than 400 customers in our core markets. The aim of the programme is to increase the competitiveness of specialist stores by emphasising the effect lingerie has on a woman's body. Lastly, the sales costs of retail activities fell in 2007 due to the closure of two less profitable stores. The rise in operational profit (EBIT) (+7.4%) was slightly lower than the EBITDA growth, as a consequence of the reversal of a provision for a claim filed by a former Italian distributor Net financial result The net financial result fell from 4.9 million euros in 2006 to 2.1 million euros in 2007, chiefly due to the exchange rate profit generated from the bond loan with Guliano Pte Ltd in 2006. This bond loan has now been repaid. The financial result also comprises 0.9 million euros dividend income from the stake in Top Form International. Taxes Tax was 13.1 million euros or 29.9% of pre-tax profit. Last year the effective tax rate without non-recurring items was 29.3%. Investments A total sum of 2.7 million euros were invested in 2007 versus 3.4 million euros in 2006. Much of that sum was invested in improving systems in Belgium. Shareholders' equity Shareholders' equity increased versus 2006 by the consolidated group profit (31.0 million euros) and is mainly negatively impacted by the lower price of the Top Form share. Balance sheet total and fixed assets The balance sheet total was 132 million euros, 9 million euros lower than the preceding year. The fall in fixed assets is a combination of the low valuation of the Top Form stake (-13.4 million euros) and the acquisition of a stake in Intimacy (11.7 million euros). While the Top Form share price has fallen, it has never dropped below the average purchase price paid by Van de Velde (0.6416 HKD per share). The closing price on 31 December 2007 was 0.89 HKD per share. Accordingly, no write-down needs to be recognised in the income statement with respect to the costs of participation. Working capital The strong growth in turnover did not produce a rise in working capital, which fell slightly, chiefly due to the lower stocks. Prospects Turnover growth of 5% is again targeted in 2008. Dividend proposal The Board of Directors proposes to the General Meeting of Shareholders that a dividend be paid over 2007 of 40% of the result after tax. This results in a gross dividend of 0.9 euros per share. After payment of the 25% levy, the net dividend is 0.7 euros per share. Financial calendar - Publication of annual financial report (website) Monday 17 March 2008 - Publication of annual financial report (printed) Friday 28 March 2008 - Ordinary General Meeting of Shareholders Wednesday 30 April 2008 - Interim statement Wednesday 30 April 2008 - Dividend payment Monday 5 May 2008 - H1 turnover Wednesday 9 July 2008 - H1 2008 results Friday 29 August 2008 - Second interim statement Friday 21 November 2008 Financial services Financial services were provided by KBC, ING and Bank Degroof. Report of the Statutory Auditor on the annual information on 31 December 2007 The Statutory Auditor has issued a declaration without reservation with respect to the consolidated annual financial statements and has confirmed that the accounting data in this release contain no significant discrepancies with the consolidated annual financial statements. Van de Velde NV is a leading player in the luxury and fashionable women's lingerie sector. Van de Velde is convinced of a long-term strategy based on expanding and developing brands around the Lingerie Styling concept (fit, style and fashion), especially in Europe and North America. For more information: Van de Velde NV - Lageweg 4 - 9260 Schellebelle - 09/ 365 21 00 www.vandevelde.eu Luc Markey CFO Ignace Van Doorselaere CEO Copyright Hugin [CN#132586]