Continuing organic growth at Nedap

Annual profit 2007 up by 15% to 14.3 million.

Groenlo, 5 February 2008

The profit after tax of the N.V. Nederlandsche Apparatenfabriek Nedap for 2007 was up by 15% to

14.3 million (2006: 12.4 million) and was thus 10% of the turnover (2006: 9%). Turnover increased by 5% to

145.8 million (2006: 138.5 million). The earnings per share reached 2.12 (2006: 1.84). Under the current

dividend policy, the dividend was set at 1.91 (2006 1.65), a cash payment of 90%.

The customer groups Agri, Healthcare, Library Solutions, Locker Management Systems, Retail Support, and Power Supplies have shown excellent increases in turnover during the financial year. These increases more than compensate for the low turnover in the customer groups Education, Specials, and Election Systems.

The customer group Agri (ICT systems for the dairy and pig farming industry) profited from the increase in demand for milking robots. Positive for Retail Support (anti-shoplifting systems, control and information systems to combat stock losses) was the increase in turnover realised in many countries. For the customer group Power Supplies (switch-mode power supplies for lighting, office automation, medical scanning equipment, and autonomous energy systems), the strong growth was mainly due to products for the regulation of lighting.

The young customer groups Healthcare (automation of work of ancillary healthcare professionals), Library Solutions (RFID self-service check-in/checkout systems for libraries), and Locker Management Systems (electronic locks and management systems for lockers) have managed to improve their market position with the introduction of new products.

AVI (Automatic Vehicle Identification) and Security Management (systems for access control, payment, fire and intruder alarms, observation and biometrics) remained static after the excellent growth figures of the previous years.

The customer group Specials is currently in a transition phase, and underperformed as expected. The young group Education (access control in computerised attendance registration of students) is suffering from growing pains.

Fewer election activities in the financial year led to a lower turnover for the customer group Election Systems. In the American State of New York Nedap was put on a list of suppliers from which the counties have to choose their new voting system at the next election.

FINANCIAL

The turnover rose in the financial year by 5.3% to 145.8 million. The added value (turnover plus stock movement minus material costs) stayed at the same level as 2006, namely 63%.

After deduction of slightly higher costs and depreciation, plus the more or less identical capitalised costs, an operating profit remained of 19.9 million. This is equal to 13.6 % of the turnover.

The finance costs rose, partly due to a higher financing requirement during the year and partly due to higher tariffs, by 0.4 million.

The tax liability fell, primarily as a result of the cut in the tax rate in the Netherlands from 29.5% to 26.9%.

The profit after tax was 14.3 million, or 9.8% of the turnover. Of this, 14.2 million was allocated to our shareholders and 0.1 million to the minority interest.

The return on equity, excluding profits, was 33%.

The total investment in intangible assets - capitalised development costs - required 1.5 million and was thus 0.6 million higher than the amortisation.

A total of 8.4 million was invested in tangible fixed assets, 2.4 million more than was amortised. This included an investment of 2.5 million in the new accommodation of Nsecure B.V. in Barendrecht.

The value of the stocks remained the same; as a percentage of turnover, however, it fell from 14.6% at the end of 2006 to 13.8% at year-end 2007.

The solvency position (equity excluding undistributed profit divided by the total assets) rose from 40.7% at year-end 2006 to 41.8% at year-end 2007. This was below the target level of around 45%. This was because the stocks were 3 million higher than deemed necessary. Because this was only a temporary situation, a cash dividend payment was still possible of 90%.

The number of employees at the end of the year was 627. This was 8 more than at the beginning of the financial year.

PERSPECTIVES

The timely recognition of new market opportunities, often involving new technologies, as well as a growing sales force and a continued attention to distinctive capacity, form the basis for healthy organic growth in turnover and profits. Due to the largely project-based character of orders and the enterprising character of the business, this growth may be subject to short-term positive or negative fluctuations. However, the company has shown a healthy growth in turnover and profits over a considerable number of years. The management of Nedap does not currently see any developments that might frustrate the continuation of this long-term growth.

The annual report for 2007 will appear in the second-half of April, and the Annual Meeting of Shareholders will be held on Tuesday, 20 May 2008, in the Amstel InterContinental Hotel in Amsterdam.

For more information:

G.J.M. Ezendam

Controller Nedap N.V.

Tel.: 0544-471120

Website: www.nedap.com


PROFILE NEDAP

Nedap operates according to the following point of view:

challenges improve life

Nedap is characterized by an open, innovative and creative company culture aimed at development and entrepreneurship.

Nedap s long-term policy is aimed at creating a durable added value for clients, employees and  sareholders. The company plans on achieving this by means of an organic increase in turnover and profit, whereby diversification and innovation, based on the expertise available within Nedap, play a key role.

Nedap concentrates on the development and delivery of distinctive and durable

- solutions for the computerization and management of operating processes, whereby recognition of persons, animals and goods as a rule plays an important role (end-user market)

- products whereby power and control electronics play an important role (suppliers market).

In order to continue operating in the manner which makes the company strong, the financial standards applied by Nedap consist of operating profits of at least 10% of the turnover, a 15% 20% return on its own capital, and a solvency level of about 45%, based on autonomous growth.

Nedap was founded in 1929 and has been listed on the Euronext since 1949.

Chiffres : voir en p. 4 du pdf.

 

RAPPORT FINANCIER 2007 (pdf)