25.02.2010
Annual results 2009

• Rise in turnover of 5.3%
• Non-recurring restructurings in Hungary and Spain impact the group results
• Healthy growth expectation for 2010
• Proposed dividend increase to €1.65 gross per share

1. Consolidated key figures 2009   

⁽¹⁾ Prepared in accordance with IFRS.
⁽²⁾ Recurring EBITDA is equal to EBITDA plus a non-recurring cost of €2.9 million for the closure in Hungary and the restructuring at Eurocorset.

2. Report of the statutory auditor on the annual information at 31 December 2009

The statutory auditor has issued an unqualified opinion on the consolidated financial statements. The accounting figures in this release are consistent with the figures in the consolidated financial statements.

3. Notes to the consolidated key figures

Turnover growth in 2009

The consolidated turnover of the Van de Velde Group rose by 5.3% to €140.1 million. Sarda was recognised for a full year in 2009, unlike in 2008 when Sarda was only included for the second six months.

On a comparable basis (for traditional Van de Velde brands, excluding Sarda), turnover rose by 3.4%. Both the core and growth markets grew by around 3.4% although the growth markets did suffer from the low exchange rates.

Turnover of the own shops (store-to-store) grew by 10%, even after a very strong 2008. The Marie-Jo Boutique in Dortmund was converted to the new 'Oreia' concept in November 2009.

The turnover of Sarda did less well, falling significantly compared to the previous year. This fall in turnover was mainly experienced in Spain and is connected with general economic developments, the halting of unprofitable sales and other changes.

Higher gross margin

The gross margin (excluding Sarda) is increasing, supporting the fact that Van de Velde is pursuing its “trading-up” strategy (high quality, high service) in tough economic conditions. Lower stock write-downs and constant efforts to optimise production costs also had a positive impact on the gross margin.

Higher recurring ebitda

As stated earlier, 2009 was a transitional year due to a number of important measures and the non-recurring restructuring cost of €2.9 million. The closure of the production plant in Hungary was completed in 2009. Sarda also underwent restructuring, with the centralisation of the logistics services and a number of administrative services from Spain to Belgium.

Recurring EBITDA rose by 1.8% in 2009 compared with 2008 to €44.2 million. This does not include the non-recurring restructuring cost of €2.9 million. Sarda had a negative impact on recurring EBITDA.

Minority stakes and financial charges

As stated in the interim results, the Board of Directors decided to write off the CDOs in full for the sake of prudence.

The results based on the equity method are negative in 2009, mainly due to the Top Form dividend, which is recognised as financial result at Van de Velde. Intimacy made a positive contribution and experienced good growth.

Profit for the period

Profit for the period fell from €28.6 million to €26.6 million and profit per share fell from €2.1 to €2.0.

Cash position

The cash position at the end of 2009 was €40.4 million.

4. Dividend

The Board of Directors will propose to the General Meeting of Shareholders the payment of an increased dividend for the 2009 fiscal year, which amounts to a proposed gross dividend of €1.65 per share (net dividend of €1.2375 per share).

The remaining cash is sufficient to carry out all investments needed to guarantee the competitive position of the company.

5. Prospects for 2010

Based on all known indicators, Van de Velde has confidence for 2010.

• We expect to see growth in turnover of the traditional Van de Velde brands in the first six months of the year in line with the organic growth rhythm of 2009. The initial (early) indicators for the second half point in the same direction.
• The new 'Oreia' store concept was successfully piloted in Germany at the end of 2009 and can now be rolled out further. It will have a relatively limited impact in 2010.
• Intimacy continues to experience good growth despite tough economic conditions in the United States and growth plans remain intact for 2010.
• Necessary cost optimisations were implemented in 2009 and have not curbed growth in any way.  Those costs optimisations will positively drive recurring EBITDA and profit in 2010.
• Sarda experiences a tough first semester but the indicators for the second semester point to growth compared with the second six months of 2009. Sarda found it tougher than expected, but there are clear signs of a turnaround in the second half of 2010.

Wakefulness is called for in a tough market.

6. Financial Calendar   

Van de Velde NV is a leading player in the luxury and fashionable women’s lingerie sector. Van de Velde is convinced of the merits of a long-term strategy based on developing and expanding brands around the Lingerie Styling concept (fit, style and fashion), especially in Europe and North America.

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