(16/02/2007) VAN DE VELDE : Results 2006

Van de Velde NV Press Release 16|02|2007 Consolidated Results for 2006 Results prepared in compliance with International Financial Reporting Standards as accepted within the European Union.

Results In millions of euros	31|12|2006	31|12|2005	+/- %
	IFRS	IFRS
Net turnover	123.0	111.9	9.9
Operating Income	124.2	112.8	10.1
Operational Cash Flow (EBITDA)	41.1	38.1	7.9
Operational Profit (EBIT)	38.8	35.7	8.7
Net Financial Result	4.9	1.0
Current Profit	43.7	36.7	19.1
Tax	12.7	10.5	20.9
Result after Tax	31.1	26.2	18.7
Profit from the Guliano/Top Form Restructuring		16.2
Group Share	31.1	42.4

In euros per share	12|2006	12|2005
Number of Shares (1)	13,556,710	13,556,710
Current Result before Taxes	3.23	2.71
Result after Tax	2.29	1.93
Group Share in Profit	2.29	3.13
Closing Price on 30/12	39.3	30.8

(1) To improve comparability with 2005, the number of shares after the split is stated rather than the 2,711,342 shares prior to the split; all key figures per share are converted to the new number of shares.

Concise balance sheet In millions of euros	12|2006	12|2005
Fixed Assets	48.2	58.3
Liquid Assets	92.8	83.6
Total Assets	141.0	141.9
Shareholders' Equity	126.8	128.4
Provisions and Deferred Taxes	3.5	4.1
Debts	10.7	9.4
Total Liabilities	141.0	141.9

Main Developments in 2006 Net turnover Turnover rose by 11.1 million euros from 111.9 million euros at the end of 2005 to 123.0 million euros at the end of 2006, an increase of 9.9%. Turnover in terms of volume rose by 7.5%. In terms of brand turnover, PrimaDonna again posted the strongest growth (+12.1%). In terms of market turnover, growth was strongest outside the euro zone (+17.4%). The euro zone does however continue to be the strongest market, accounting for 79% of total turnover. Operational Cash Flow The gross margin fell slightly as a consequence of the higher write-down on stocks and rising stitching costs. The higher write-down ensues from the corporate strategy to take slightly greater risks in terms of production quantities, which makes possible more deliveries and higher turnover, but also increases the risk of write-downs. An additional factor in the second half of the year was lower store sales as a consequence of the warm winter. Follow-up orders were thus lower than projected. The increased sales costs were the result of earlier initiatives that continued throughout 2006. The sales teams were strengthened on a number of markets in the second half of 2005 for instance. Additionally, in 2006 Van de Velde opened its own sales offices to support further growth, which produced non-recurring costs. Thirdly, the sales support services rolled out in 2005 were scaled up on the base markets (Belgium, the Netherlands, France and Germany) in 2006. Lastly, the expansion of the number of O&O stores in the second half of 2005 also produced additional sales costs in 2006 as a whole. Marketing costs were stable compared with the previous year. Logistical costs rose faster than turnover, because growth is concentrated more in countries where transport costs are higher. Fixed costs at the main office fell. The increase in EBIT (+8,7%) was positively influenced to some degree by the withdrawal of a provision (E0.4 million) for a dispute with a former Italian distributor. Net financial result The net financial results rose from 1 million euros in 2005 to 4.9 million euros in 2006, chiefly due to the exchange rate profit generated from the bond loan with Guliano Pte Ltd. Interest income increased by 0.2 million euros to 1.2 million euros. Financial charges were limited to 0.2 million euros. The financial result also comprises 1.0 million euros dividend income from the stake in Top Form International (1.7 million euros in 2005). Tax Tax was 12.7 million euros or 29.0% of pre-tax profit. The effective interest rate without non-recurring items was 29.3% in 2006. Investments A total sum of 3.4 million euros were invested in 2006 versus 3.6 million euros in 2005. Much of that sum was invested in improving systems in Belgium. Investments in Tunisia were related to the new facility, which went on stream in April 2006. This will double production capacity in Tunisia in due course. Shareholders' equity Shareholders' equity increased versus 2005 due to the consolidated group profit (31.1 million euros) and fell due to the conversion differences and the paid dividend in 2006 of 7.6 million euros and 18.2 million euros respectively. The lower price of the Top Form share on the closing day also reduced shareholders' equity by 6.9 million euros. Balance sheet total and fixed assets The balance sheet total of 141.0 million euros is similar to the 2005 figure. The fall in fixed assets by 10.1 million euros is clarified in full by the low valuation of the Top Form stake at actual value of 27.2 million euros versus 37.4 million euros in 2005. Working capital The strong growth in turnover did not produce a rise in working capital, which fell, chiefly due to a higher tax debt at the end of the financial year. Prospects A slight growth in turnover is expected in the first half of 2007 compared with the first six months of 2006. The slowdown in turnover was especially situated in the base markets, where storekeeper purchasing behaviour was influenced by lower retail sales in autumn 2006. The expansion in the growth markets continued a-pace however. Dividend proposal The Board of Directors proposes to the General Meeting of Shareholders that a dividend be paid over 2006 that is twice the historical payment percentage, i.e. 80% rather than 40%. This results in a gross dividend of 1.8 euros per share. After payment of the 25% levy, the net dividend is 1.35 euros per share. After approval by the General Meeting of Shareholders this dividend will be paid out as of 2 May 2007 at branches of KBC, ING and Bank Degroof, subject to submission of coupon number 1. Financial calendar - General Meeting of Shareholders Wednesday 25 April 2007 - Dividend payment Wednesday 2 May 2007 ► Announcement of first six-month turnover 2007 Friday 6 July 2007 ► Announcement of first six-month results 2007 Friday 31 August 2007 Financial services Financial services were provided by KBC, ING and Bank Degroof. After the share split of 6 June 2006, old shares can still be exchanged for five new shares at Bank Degroof. Report of the Statutory Auditor on the annual information on 31 December 2006 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 market leader in the luxury and fashionable women's lingerie sector in the Benelux and a top three player on most other EU country markets. In the United States and Southeast Asia Van de Velde NV adopts a policy of controlled presence. For more information: Van de Velde NV - Lageweg 4 - 9260 Schellebelle - 09/ 365 21 00 www.vandevelde.eu Luc Markey CFOLuc.Markey@mariejo.com Copyright Companynews [CN#115759]