Business News

DOCDATA N.V. Announces its 2007 Year-End Results

Thursday 14. February 2008 - - Strategy 'Vision 2010: Gear to Growth' Already Yields Rewards - Revenue Increases With 18% to EUR 70.2 Million - Net Result Realised of EUR 3.4 Million With EUR 0.48 Basic Earnings per Share - Proposal to Distribute a Dividend of EUR 0.25 per Ordinary Share

General

With the announcement of the 2007 year-end results, docdata completes the transition of the Media Group and the e-Solutions Group. After developing in 2005 the strategy ‘Vision 2010: Gear to Growth’, docdata transformed in 2006 and 2007 into an innovative Internet Service Company and changed the organisational structure from a country organisation to a divisional structure. The e-Solutions Group, the engine of the Internet Service strategy, has more than doubled its revenue to EUR 29 million and has thus more than compensated the (ongoing) decrease in ‘offline’ replication within the Media Group. This trend will continue in the coming years.

During the previous two years, the Internet Service Company docdata has added new services, invested in the quality of its services and developed a new Corporate Identity which gives colour to the transition in a recognisable way. For each of the four specialised service concepts: commerce, payments, fulfilment and media, docdata wants to offer the most innovative solutions. Docdata aims to become market leader in specific sectors, across the various services. Furthermore, docdata will expand its services geographically.

During 2007 Industrial Automation Integrators (IAI) B.V. focussed on the development of a route along which IAI can apply its know how in markets which show strong growth. After extensive research, the choice was made to enter the market for solar energy. For 2008 this implies that we will invest in R&D and possibly in companies that possess specific technological knowledge which closely aligns with the current know how of IAI, as well as with the demand in the solar market.

Michiel Alting von Geusau, CEO of DOCDATA N.V.: “I am proud of what has been achieved in the last couple of years and I am convinced that we now have a good basis for further growth in revenue and results.”

Major features of the financial results for the 2007 year-end

DOCDATA N.V. has realised a gross profit of EUR 17.7 million in the second transitional year 2007, compared to EUR 14.1 million in 2006 (+25%). The gross profit margin has clearly increased over the past years, which demonstrates that the new strategy is beginning to yield rewards. In 2007, an operating income before financing result (EBIT) from continued operations has been realised of EUR 3.7 million. The decrease compared to 2006 has predominantly been caused by additional expenses in 2007 to successfully implement the new strategy. In addition, some orders for IAI could not yet be delivered in 2007. The increased profit for the year 2007 has predominantly been caused by the loss from discontinued operation (net of income tax) in 2006, due to the decision in 2006 to terminate the activities of the Media Group in France.

The cash flow statement in the Appendix to the attached enclosure ‘Financial Information’ shows that DOCDATA N.V. has realised net cash from operating activities of EUR 8.3 million in 2007. The cash surplus position has decreased in 2007 with EUR 0.6 million to EUR 3.5 million at 31 December 2007 (31 December 2006: EUR 4.1 million). Of this cash, EUR 8.8 million has been spent in 2007 to finance:

– acquisition of subsidiaries: EUR 2.2 million in total for the acquisition of an (additional) share interest of 40% in Triple Deal B.V., 9.6% in Braywood Holdings Limited and 100% in Contributie Services B.V. (acquired by Triple Deal B.V., resulting in indirect holding for 70% by DOCDATA N.V.);

– investments in property, plant and equipment and intangible assets (EUR 3.2 million);

– distribution of dividend for the year 2006 to the shareholders (EUR 1.4 million);
– own shares bought (EUR 2.0 million).

DOCDATA N.V. has maintained its strong financial positions with a solvency ratio of 52.3% at 31 December 2007 (31 December 2006: 48.8%).

Mission statement

The mission statement of DOCDATA N.V. is “enabling success”; for clients, as well as for our employees, shareholders and suppliers.

– For the Internet Service Company docdata, this means the offering of unique and reliable solutions to our clients which enable them to be successful in their Internet business.

– For IAI, this consists of the offering of unique (production) technologies with an extremely high quality.

– For the DOCDATA N.V. shareholders, this has resulted in dividend distributions of over EUR 1.4 million and share buyback programs for almost EUR 2 million. DOCDATA N.V. wants to continue this trend in 2008.

– For our employees, we offer a positive and challenging working environment with sufficient possibilities for further development and room for own initiatives.

Outlook

After two transitional years, the Internet Service Company docdata will shift in 2008 to a higher gear. The focus for the first six months of 2008 will be to anchor the various acquisitions in the docdata organisation and to optimise the synergies between the various companies. Autonomous profitable growth will be the most important goal.

In 2008, IAI will focus on the realisation of the new route forward, in combination with committed attention for the current markets. We have allocated employees to realise the entry into the production market for solar cells and will build a team to further develop this. Given the strong order portfolio, the profitability in 2008 will remain strong although additional expenses will be required for the implementation of the new route forward.

Dividend

Management of DOCDATA N.V. will propose to the shareholders at this year’s annual General Meeting of Shareholders, in accordance with Article 34 of the Articles of Association of DOCDATA N.V., to decide to distribute to all shareholders of ordinary shares a dividend amount of EUR 0.25 per ordinary share out of the profit for the year 2007. The distribution will be subject to dividend withholding taxes, unless the shareholder can proof that substantial holding exemption can be claimed.

The dividend policy of DOCDATA N.V., adopted by the General Meeting of Shareholders, is aimed at realising a high dividend return, for which a payout ratio of at least 50% is the starting point. The liquidity and solvency required for the execution of the strategy, will also be taken into consideration.

At 31 December 2007, the issued share capital of DOCDATA N.V. consists of 7,308,850 ordinary shares with a nominal value of EUR 0.10 each. DOCDATA N.V. currently holds 439,689 (6.02%) of these issued ordinary shares, which are kept in order to fund the personnel options scheme and to finance future acquisitions. Ordinary shares owned by the Company are not entitled to anydistribution of profit.

When the General Meeting of Shareholders decides to accept this proposal, an amount of EUR 1.7 million will be distributed in May 2008 as dividend out of the profit for the year 2007 on the ordinary shares, which are held by other shareholders than the Company. The General Meeting of Shareholders shall be held on Thursday 15 May 2008 in Waalwijk. The dividend distribution will lead to a limited decrease of the solvency ratio.