Van der Moolen Holding (liquidity provider and institutional broker
in equities, bonds and related instruments in Europe and in the US and
electronic markets access provider by Online Trader) today reported its
results for the fourth quarter and the full financial year 2007. Key items 2007
Net loss attributable to common shareholders amounts to €
58.2 million for the fourth quarter of 2007 and €
77.8 million for the full financial year 2007;
€ 71.8 million of the loss attributable to
disposed US specialist activities and European discontinued business;
Net profit for the full year for continuing activities would be €
8.7 million excluding non-recurring items;
US professional brokerage activities strengthened by acquisition
Robbins & Henderson;
Solid performance and growth of continued European activities;
Cooperation GSFS Asset Management marks start in structured products.
Strategy and Outlook 2008
Focus on three business lines: VDM Trading, VDM Institutional
Brokerage and VDM Retail Banking;
Broaden business focus Europe into retail banking segment;
Obtain bank license by formal approval or co-operation.
Richard den Drijver, CEO of Van der Moolen Holding NV commented: "2007 has been a year of fundamental changes
for the company. By selling the US specialist activities, we will focus
on three separate business lines (VDM Trading, VDM Institutional
Brokerage and VDM Retail Banking). Our US business lines are now fully
in line with our European activities. At the same time, we have decided
to broaden our business focus in Europe. By obtaining a bank license,
either through the formal approval process or through co-operation with
an adequately licensed party we will be capable to expand Online Trader
from the current professional level to the retail segment. The
cooperation with GSFS Asset Management offers an entry to the market of
structured products. We have strong positions in the key financial
markets we operate in and we expect to continue to build on the solid
foundation we have created in 2007, and we expect to be profitable in
2008. We strongly believe in the upside potential of new services we
will be entering in 2008 and onwards." Key Figures*
4th quarter 4th quarter
3rd quarter 12 months Euro millions
2007 2006
2007 2007
2006 Revenues
24.2
17.5
28.6
109.9
63.9
Operating profit (loss)
(1.6 )
(4.3
)
0.7
(0.8
)
0.4
Profit (loss) for the period from continuing operations*
(0.9 )
(2.9
)
(0.4
)
(3.1
)
1.7
Profit (loss) for the period from discontinued operations*
(56.2 )
(40.6
)
(4.9
)
(72.7
)
(78.4
)
Profit (loss) attributable to common equity holders of the Company
(58.2 )
(45.1
)
(5.8
)
(77.8
)
(78.7
)
Guarantee capital
118.5
298.6
205.8
118.5
298.6
Per common share data (Euro x 1)
(Dilutive) Profit (loss) from continuing operations per common
share a)*
(0.04 )
(0.09
)
(0.02
)
(0.13
)
(0.02
)
(Diluted) profit (loss) from discontinued operations per common
share a)*
(1.21 )
(0.90
)
(0.11
)
(1.54
)
(1.72
)
(Dilutive) Profit (loss) per common share*
(1.25 )
(0.99
)
(0.13
)
(1.67
)
(1.74
)
Average US dollar/Euro rate
0.69
0.78
0.73
0.73
0.80
*) figures in this press release have not been subject to an audit
by our external auditor
*) figures before accounting of currency translation adjustments for
discontinued operations
We emphasize that the figures included in this press release have not
been subject to an audit by an external auditor.
Operational developments in 2007
Van der Moolen further strengthened its European Business in 2007. The
Company has initiated diversification into other markets and segments
(such as ETF, structured products, security lending and energy trading).
Focusing on high-margin products, we have embarked on a series of
operational measures, such as the termination or disposal of loss making
activities, including VDM Obligaties, the specialist activities in VDM
Specialists LLC and the restructuring of our UK activities by
terminating the day-trading activities.
In our consolidated figures, we have reported Van der Moolen Specialists
USA, VDM Securities Ltd, VDM Gibraltar Ltd and VDM Obligaties B.V. as
discontinued operations.
In addition, we have launched initiatives in 2007 to expand the strength
of the present high margin operations by:
The acquisition of Robbins & Henderson, a New York based institutional
Brokerage firm;
The fueling of the New York brokerage activities with Van der Moolen's
top talent;
The initiative to trade on more markets from our present locations;
Adding more high margin products to our portfolio.
With the termination of our specialist activities in New York, one of
the core benefits of being listed on the New York Stock Exchange
disappeared. Consequently, we have decided to delist from the New York
Stock Exchange and terminate our American Deposit Receipts program,
effectively as from December 27, 2007. The delisting and deregistration
process is expected to result in cost reduction in the future.
Our principal subsidiaries and their core business activity, categorized
by business segment, can be summarized as follows:
Europe
In Europe Van der Moolen has branches in the Netherlands, France,
Germany, Switzerland and the United Kingdom. The European activities
showed a strong operating performance in 2007, significantly exceeding
the performance in 2006. All European markets are mature, screen based
markets. Van der Moolen has a strong position due to its diversified
product portfolio, strong IT and very experienced staff.
Trading securities
Van der Moolen is acting in Amsterdam as an equity trading firm engaged
in proprietary trading and arbitrage on Euronext, OMX, Borsa Italiana,
Xetra, Eurex and the Virt-X/Swiss exchange. The Cologne branch of Van
der Moolen is active in proprietary trading in German and Swiss
equities, derivatives and arbitrage.
Trading derivatives
Under the trading name Curvalue Van der Moolen has leading market making
activities and day trading activities in Amsterdam on Euronext, Euronext
Liffe, CBOT, CME, ICE, Xetra and Eurex. Due to the preferred status
Curvalue is required to quote on almost all option series of the
Euronext Liffe. Furthermore, Curvalue performs arbitrage on the European
exchanges, trading in futures, options and equities and engages in day
trading (proprietary trading) on Eurex and holds small open positions
intraday.
In the UK the activities of Van der Moolen include proprietary
derivatives trading and acting as a market maker in listed options on
Recognized Investment Exchanges with corresponding trading in the
relevant cash market.
The Zug branch of Van der Moolen is acting as a market maker in German
and Swiss equity options and derivatives on the DAX,
Eurostoxx and SMI
indices.
Brokerage
The brokerage activities in Europe involve electronic and voice broking
execution services to customers, mainly targeting institutional
investors and professional traders. The web based application Online
Trader provides clients direct market access to European and US markets.
US Trading
In the US Van der Moolen is acting as a securities market maker under
the name VDM Capital Markets on the CBOE Stock Exchange.
Brokerage
In July 2007, the company ceased its option market making activities
and, as of the end of 2007, it is engaged in business only as an
institutional broker.
R&H Securities is a US based institutional broker with a wide variety of
brokerage services.
Strategy and outlook
Van der Moolen is diversified, both geographically and through the
instruments and markets that we trade in. Our subsidiaries in the
Netherlands, Germany, Switzerland, the United Kingdom, France and the US
actively trade and make markets in all major securities exchanges. The
products that we trade in cover equities and equity related products,
such as options, futures, exchange traded funds, warrants and fixed
income instruments.
The operational developments in 2007 convinced management that the
strategic position required an even more diversified fundament and a
stronger position in the retail segment. In the course of the year we
have decided to put more focus on high margin products and operations.
As a result we have embarked on a series of operational measures:
we have terminated our fixed income desk in Amsterdam
we have significantly reduced the cost base of our US market making
operation in VDMS, and ultimately decided to terminate this activity
we have terminated activities in certain satellite offices
we have restructured our UK activities significantly
Simultaneously, we have investigated various strategies to invest in the
electronic retail trading segment.
Road Map for 2008 and beyond
With a strong professional trading fundament in place for 2008, Van der
Moolen will be excellently positioned to move closer into the retail
segment. We intend to expand our online brokerage activities wider into
the retail segment. With strong electronic banking and trading
capabilities, the electronic retail brokerage markets provide Van der
Moolen with an excellent opportunity to leverage its existing market
presence. As a result Van der Moolen will be offering a compelling
customer proposition, with high quality of service at highly competitive
prices. The strong operational fundament will serve as a basis to
develop such activities initially in a limited number of selected
countries.
In order to develop this activity a banking license will be required. It
is estimated that it will take between 9 and 12 months for Van der
Moolen to obtain access to a bank license, either through the formal
approval process or through co-operation with an adequately licensed
party. At the same time we are exploring investments in back-office
capability and developing our distribution strategy. We anticipate that
this will in be part developed within our organization and in part with
current and new business partners. We are reserving a substantial part
of our free cash flow to invest in the execution of this strategy.
Ambition: to be a leading trading firm in three time zones
Our ambition remains unchanged. We want to be active as a global
securities firm in three time zones serving clients around the world. We
will focus on:
proprietary trading
acting as liquidity provider
institutional brokerage
online internet brokerage
clearing and settlement (possibly other investment services closely
related to the above activities)
Our longer term ambition is to be a leading securities trading firm in
three time zones, which will require establishing a presence in Asia,
when the right opportunity arises.
Financial developments in the fourth quarter of 2007 Revenues
Revenues from continuing activities decreased by 15% compared to the
third quarter of 2007 and increased by 38 % compared to the fourth
quarter of 2006.
The revenues from continuing European activities decreased by 20%
compared to the third quarter of 2007, but increased by 27% compared to
the fourth quarter of 2006. The primary reason for the decrease compared
to the third quarter of 2007 were the less favorable market
circumstances on the markets on which Van der Moolen is active at the
end 2007 compared to the third quarter 2007, when volatility and volumes
peaked.
The revenues from continuing US activities showed an increase of 47%
compared to the third quarter of 2007 and 300% compared to the fourth
quarter of 2006, mainly due to an increase in the revenues of our US
Brokerage activities, due to the full quarter impact of the acquisition
of Robbins & Henderson and the additional brokerage services started up
in the third quarter of 2007.
Operating result
The fourth quarter 2007 net loss of € 58.2
million has been mainly influenced by non-recurring items amounting to €
62.4 million, mainly related to impairment charges of discontinued
operations of € 40.4 million. The remaining €
22.0 million is due to restructuring costs related to our discontinued
operations, severance payments as well as legal fees.
Excluding the non-recurring items the net profit for the fourth quarter
of 2007 would amount to € 4.2 million.
The continuing European activities have contributed an operating margin
(defined as operating profit before other gains and losses (net) and
before amortization of intangible fixed assets and before impairment) of €
0.5 million in the fourth quarter of 2007 compared to an operating
margin of € 6.4 million in the third quarter
of 2007, mainly due to non-recurring items.
The continuing US activities generated an operating margin of €
0.2 million negative in the fourth quarter of 2007 compared to an
operating margin of € 1.2 million negative in
the third quarter of 2007 due to better performance by our US brokerage
and trading activities.
Financial developments in the full year of 2007
The full year 2007 result is impacted by material non-recurring items,
impacting net result by € 68.7 million. The
non-recurring items relate to:
An amount of € 41.3 million related to
impairment of tangibles of which € 0.9
million relates to continuing operations;
Restructuring costs related to discontinued operations of €
17.4 million, mainly consisting of severance payments and legal fees;
An amount of € 10.0 million related to
continuing operations (amongst others legal fees related to the
delisting of our American Depository Shares, and severance expenses).
Excluding the non-recurring items mentioned above, the net loss would
amount to € 9.1 million for the full year
2007.
The loss from continuing operations amounts to €
3.1 million for the year with a minority interest of €
0.9 million, resulting in a net loss from continuing operations of €
2.2 million. Excluding the non-recurring items, the net result related
to the continuing operations would have amounted to €
8.7 million.
Continuing operations
At € 109.9 million, revenues from continuing
operations were in 2007 72% above the € 63.9
million in 2006.
On a geographical basis the revenues from continuing operations can be
summarized as follows:
SEGMENTAL
Van der Moolen Holding N.V. Q4
Q4
%
Q3
%
12 months
12 months
%
Revenue breakdown in millions of Euros
2007
2006
2007
2007
2006
USA
2.8
0.7
300%
1.9
47%
6.5
1.6
306%
Europe
21.4
16.8
27%
26.7
-20%
103.4
62.3
66%
Total revenues
24.2
17.5
38%
28.6
-15%
109.9
63.9
72%
At € 103.4 million, revenues in Europe are
66% higher than in 2006. The continuing high level of revenues in Europe
was fueled by continuing excellent market conditions and the
diversification of financial products.
At € 6.5 million, the reported revenues in
the US are 306% higher than in 2006. In
Dollar terms the increase in
revenues of the US activities was 436% compared to 2006 from $ 2.0
million to $ 8.8 million. The increase is mainly attributable to the
acquisition of Robbins Henderson, which generated $ 3.8 million or €
2.7 million as well as the activities of VDM Capital Market, which
contributed revenues of $ 2.2 million or €
1.6 million in 2007.
Other gains and losses - net
In 2007, other gains and losses amounted to €
0.9 million, mainly attributable to the realized profit on the sale of
the NYSE market shares.
Operating expenses
Operating expenses (impairment charges excluded) were €
35.7 million higher than those recognized in 2006.
In 2007, non-recurring operating expenses related to continuing
operations amounted to € 8.1 million, mainly
related to severance payments and other employee benefit expenses (€
3.0 million), legal and advisory fees (€ 1.7
million) and other restructuring expenses (€
2.0 million).
Factors that influenced the comparison with 2006 are:
Exchange, clearing and brokerage fees increased by €
5.3 million compared to 2006. As a percentage of revenues the
exchange, clearing and brokerage fees are 29.5% for 2007 compared to
42.4% for 2006. The development of the exchange, clearing and
brokerage fees as a percentage of the revenues is mainly attributable
to the relative significant impact of the revenues resulting from
continuing operations which have relative low exchange clearing and
brokerage fees in 2007, such as our Specialist Amsterdam Cologne and
Zug branch as well as VDM Derivatives Ltd.
An increase of employee benefit expenses by €
25.1 million compared to 2006. The increase is mainly due to higher
employee variable benefit expenses related to our high performing
European activities as well as non recurring expenses of €
3.0 million.
The general and administrative expenses (excluding impairment
expenses) increased by € 4.5 million
compared 2006. Information and communication expenses increased by €
3.0 million mainly attributable to new activities started up in during
2006 and 2007. Non recurring items amounted to €
5.1 million in 2007.
Operating margin
Operating margin from continuing operations, defined as operating result
excluding the other gains and losses (net), the amortization expense and
the impairment of intangible fixed assets, amounted to €
2.5 million in 2007 compared with € 8.3
million negative in 2006. The operating margin as a percentage of
revenues amounts to 2.3% in 2007 compared to 13.0% negative in 2006.
This increase is mainly caused by the increased trading results
resulting from our continuing operations. In 2007, non-recurring
operating expenses impacted this parameter by 7.4%. Excluding these
non-recurring items, the operating margin would amount to €
10.6 million or 9.7%
Net financing costs
Net financing income amounted to € 1.6
million in 2007, compared to € 6.6 million in
2006. Net financing income was impacted by higher foreign currency
exchange losses amounting to € 2.6 million
for 2007 compared to a foreign exchange gain of €
0.6 million in 2006. Interest income decreased by €
1.2 million compared to 2006.
Income tax
Income tax expense related to continuing operations amounts to €
3.9 million in 2007 against a profit before taxes of €
0.8 million, representing a consolidated effective tax rate of 488%. In
the preceding year the tax expense was € 5.3
million, or 75.7%. The consolidated effective tax rate in 2006 and 2007
includes the impact of the absence of (net) deferred tax asset positions
related to the US activities.
Furthermore, in the second quarter of 2007 the tax line is impacted by
the taxes caused by the decrease of the unrealized gain on the NYSE
Group shares.
Discontinued operations
In our consolidated figures, we have reported Van der Moolen Specialists
USA, VDM Securities Ltd, VDM Gibraltar Ltd and VDM Obligaties B.V. as
discontinued operations.
The net loss from discontinued operations before minority interest
amounts to € 72.7 million in 2007 compared to €
78.4 million in 2006. The loss in 2007 is significantly impacted by
non-recurring items for an amount of € 57.8
million, of which € 40.4 million relates to
impairment charges. Excluding these non-recurring items, the net loss
related to discontinued operations would have amounted to €
14.9 million, mainly attributable to VDM Specialists USA.
The net loss from discontinued operations before minority interest
amounts in 2006 is significantly impacted by a derecognition charge of €
68.6 million related to the US tax position. Excluding this charge, the
net loss for 2006 would have amounted to €
9.8 million.
Minority interest
The minority interest as reported in 2007 is fully related to minority
profit share in Van der Moolen Specialist USA (part of 2007) and Van der
Moolen Capital Markets, in which we have a profit sharing interest of
50%.
Earnings per share
The weighted average number of outstanding shares to calculate basic
earnings per share is 46.680.891 for 2007. Loss per common share from
continuing operations amounts to € 0.13 in
2007, compared to a loss per common share of €
0.02 in 2006. The loss per share from discontinued operations amounts to €
1.54 in 2007, compared to € 1.72 in 2006.
Balance sheet Balance sheet total
On December 31, 2007 our Balance Sheet total was approximately €
1.0 billion, a decrease of 38% compared to the Balance Sheet total as at
December 31, 2006 of approximately € 1.7
billion. This decrease is almost fully attributable due to the decrease
of the recognized gross securities positions and balances with clearing
institutes. The gross securities positions do not reflect the market
risk of the underlying position. From an economic perspective, the
market risk on the security positions of Van der Moolen is limited to
the net position.
Intangible assets
Intangible assets, including goodwill, decreased from €
84.9 million at December 31, 2006 to € 43.6
million at December 31, 2007. This decrease is mainly due to the
recognition of an impairment charge of € 39.4
million, mainly related to intangibles attributable to VDM Specialists,
following the disposal of these activities to Lehman Brothers. This
decrease was partly offset by the recognition of goodwill related to the
acquisition of Robbins & Henderson amounting to €
3.4 million and net investments in software of €
3.1 million. The intangibles are furthermore impacted by amortization
charges (€ 4.7 million) and the impact of the
depreciation of the US dollar against the euro.
Available-for-sale assets NYSE Group shares
The balance sheet as at December 31, 2007, reflects the number of NYSE
Group shares owned (150.326 shares) at the quoted bid price of those
shares. In 2007, we have sold 148.797 shares, partly by a transfer of
the minority member part to the respective minority partners. We have
realized an amount of € 0.8 million in 2007
related to this sale, which has been recorded under other gains & losses
in the profit and loss statement.
Non current cash and cash equivalents
The non-current cash and cash equivalents reflects that part of cash and
cash equivalents that is held by VDM Specialist for the purpose of
compliance with the Net Liquid Asset (NLA) requirement set by the New
York Stock Exchange. As a result of the transfer of the activities of
VDM Specialists USA to Lehman Brothers Inc. in December 2007, as at
December 31, 2007, no NLA requirement is applicable anymore.
Cash and cash equivalents
The Group has approximately € 130 million of
free available cash (including the disposition on trading positions and
other assets (December 31, 2006 € 19
million). The increase is mainly due to the relief of the NLA
requirement as a result of the disposal of the activities of VDM
Specialists USA.
Subordinated borrowings
Subordinated borrowing reflects the long term part of the subordinated
borrowings as issued by VDM Specialists USA. As part of the termination
of VDM Specialists activities, we have agreed early repayment of all
outstanding amounts of the subordinated loan holders early February
2008. As a result, the remaining outstanding amount related to the
subordinated borrowing as at December 31, 2007 has been recorded as
short term borrowing under current liabilities in our balance sheet.
Guarantee capital, which consists of total equity plus the non-current
portion of our subordinated indebtedness including financing preferred
capital and capital contributions from minority members, decreased from €
298.6 million as at December 31, 2006 to €
118.5 million as at December 31, 2007.
The decrease is mainly due to:
The recognition of the loss over 2007 of €
77.8 million;
The reduction of capital of minority members (€
13.7 million) and the minority interest as included in equity (€
4.7 million);
Repayment on the subordinated loans and the reclassification of the
remaining outstanding balance as short term borrowing liability (€
64.9 million);
A € 10.4 million repurchase and
cancellation of 251,000 cumulative financing preferred shares A
A € 4.4 million payment of preferred
financing dividend in May 2007
A € 2.1 million decrease in the fair value
reserve related to the sale and revaluation of NYSE shares and
Other items resulting in a decrease of €
2.1 million, mainly related to foreign currency translation
differences recorded in equity.
As a percentage of our Balance Sheet total, guarantee capital declined
from 18% at the end of 2006 to 11% at December 31, 2007.
Held for sale assets and liabilities
Held for sale assets consist of the assets and liabilities related to
our discontinued activities in Gibraltar.
Other current liabilities and accrued
expenses
Other current liabilities and accrued expenses amounted to €
59.0 million as at December 31, 2007, an increase of €
34.2 million compared to December 31, 2006. This increase is due to:
An increase in the bonus accrual of € 13.9
million;
An increase of short term provision and accrued expenses of €
13.3 million, mainly related to provisions for discontinued operations;
An increase in current tax liabilities of €
2.2 million.
Increase accounts payable of € 1.1 million.
Other items of in total € 3.7 million.
Cash flow Cash flow from operating activities
The cash inflow from operating activities amounted to €
266.1 million in 2007. The cash inflow in 2007 is impacted by a cash
inflow of € 103.0 million due to the release
of the NLA related to our VDM Specialist activities in the US as well as
the development of our trading position in 2007 (impact €
152.0 million positive). The cash flow resulting from the net result
adjusted for non cash items amounted to €
11.1 million positive.
Cash flow from investing activities
Cash flow from investing activities amounts to €
0.6 million negative, mainly following cash outflows related to
purchases of intangibles assets (such as investment in software
developments) and property, plant and equipment as well as the cash
outflow as a result of the acquisition of Robbins & Henderson and the
earn out payment on the Curvalue acquisition. The sale of part of the
NYSE shares generated a cash inflow of € 6.8
million in 2007, which partly offsets the cash outflow mentioned above.
Cash flow from financing activities
Cash outflow from financing activities amounted to €
78.0 million. The cash outflow for 2007 mainly relates the repayment on
the subordinated loan (impact € 43.4
million), the repurchase of 251.000 cumulative financing preferred
shares (impact € 10.4 million, interest
payments (impact € 7.9 million), repayments
to minority members and the payment of dividend to financing preferred
shares holders.
Subsequent events Last earn-out Curvalue acquisition
On January 2, 2008, Van der Moolen announced that 1,175,965 common
shares Van der Moolen Holding NV have been issued as part of the
settlement of the earn-out agreement in respect of the Curvalue
acquisition that was completed on January 2, 2006. The amount of the
earn-out payment was based on the profitability of Curvalue in 2006
relative to pre-established profit targets. The issuance of the common
shares Van der Moolen Holding NV has been included in the basic earnings
per share after December 31, 2006.
Sale of Serie B Votings Shares in CBOE
Stock Exchange LLC
On January 3, 2008, VDM Chicago LLC, part of the Van der Moolen Group
has agreed to sell an interest of 0.6% in CBOE Stock Exchange LLC to
Lime Brokerage Holdings LLC. The consideration agreed amounts to €
0.6 million. After this sale, the Van der Moolen Group holds an interest
of 19.4% in CBOE Stock Exchange LLC.
Share buy back
On January 24 2008, Van der Moolen announced the intention to buy back
its common shares up to a maximum of 10%, or 4.6 million shares. On
March 10, 2008, Van der Moolen announced that to date 4,576,125 ordinary
shares were repurchased for a total consideration of 12,860,419 and that
100 % of the repurchase program was completed.
Disclaimer:
This press release contains forward-looking statements within the
meaning of, and which have been made pursuant to, the Private Securities
Litigation Reform Act of 1995. All statements regarding our future
financial condition, results of operations and business strategy, plans
and objectives are forward-looking. Statements containing the words "anticipate,” "believe,” "intend,” "estimate,” "expect,” "hope,” and words
of similar meaning are forward-looking. In particular, the following are
forward-looking in nature: statements with regard to strategy and
management objectives; pending or potential acquisitions; pending or
potential litigation and government investigations, including litigation
and investigations concerning specialist trading in the U.S.; future
revenue sources; the effects of changes or prospective changes in the
regulation or structure of the securities exchanges on which our
subsidiaries operate; and trends in results, performance, achievements
or conditions in the markets in which we operate. These forward-looking
statements involve risks, uncertainties and other factors, some of which
are beyond our control, which may cause our results, performance,
achievements or conditions in the markets in which we operate to differ,
possibly materially, from those expressed or implied in these
forward-looking statements. We describe certain important factors to
consider in connection with these forward-looking statements under "Key
Information – Risk Factors”
and elsewhere in our annual filing with the U.S. Securities and Exchange
Commission on Form 20-F. We caution you not to place undue reliance on
these forward-looking statements, which reflect our management’s
view only as of the date of this Report. We have no obligation to update
these forward-looking statements.
Van der Moolen Holding N.V. Consolidated Profit and Loss Account (IFRS, Unaudited)*
(amounts in millions of Euros, except per share data) Q4
Q4
%
Q3
%
12 months
12 months
%
2007
2006**
2007**
2007
2006**
Revenues 24.2 17.5 38 % 28.6 -15 % 109.9 63.9 72 %
Other gains and losses - net 0.1 0.5
100
%
0.2
-43
%
0.9 21.6
-96
%
Exchange, clearing and brokerage fees/trading licenses
(6.5
)
(7.7
)
-16
%
(7.9
)
-17
%
(32.4
)
(27.1
)
20
%
Employee benefit expense
(11.2
)
(8.3
)
35
%
(13.4
)
-17
%
(48.8
)
(23.7
)
106
%
Depreciation and amortization expenses
(0.9
)
(1.0
)
-4
%
(1.2
)
-25
%
(4.9
)
(4.1
)
19
%
Impairment charges
(0.9
)
-
-
(0.9
)
(10.1
)
-91
%
General and administrative expenses
(6.4
)
(5.3
)
22
%
(5.6
)
16
%
(24.6
)
(20.1
)
22
%
Total operating expenses (25.9 ) (22.3 ) 16 % (28.1 ) -8 % (111.6 ) (85.1 ) 31 %
Operating profit (loss) (1.6 ) (4.3 ) -63 % 0.7 -314 % (0.8 ) 0.4 -315 %
Net financing costs
(0.1
)
0.7
-114
%
(0.6
)
-84
%
1.6
6.6
-75
%
Profit (loss) before income tax from continuing operations* (1.7 ) (3.6 ) -53 % 0.1 -1681 % 0.8 7.0 -89 %
Income tax benefit / (expense)
0.8
0.7
21
%
(0.5
)
-258
%
(3.9
)
(5.3
)
-26
%
Profit (loss) for the period from continuing operations* (0.9 ) (2.9 ) -67 % (0.4 ) 126 % (3.1 ) 1.7 -283 %
Loss from discontinued operations before income tax
(57.3
)
2.0
-2962
%
(4.8
)
1098
%
(74.0
)
(9.1
)
717
%
Income tax benefit / (expense)
1.1
(42.6
)
-103
%
(0.1
)
-901
%
1.3
(69.3
)
-102
%
Profit (loss) for the period from discontinued operations* (56.2 ) (40.6 ) 39 % (4.9 ) 1042 % (72.7 ) (78.4 ) -7 %
Profit/(loss) for the year* (57.1 ) (43.5 ) 31 % (5.3 ) 968 % (75.8 ) (76.7 )
-1
%
Profit attributable to minority interest
0.2
0.6
-63
%
(0.4
)
-156
%
(1.8
)
(1.0
)
78
%
Preferred financing dividend
0.9
1.0
-10
%
0.9
0
%
3.7
3.0
23
%
Profit (loss) attributable to common equity holders of the
Company* (58.2 )
(45.1 )
29 % (5.8 )
896 % (77.8 )
(78.7 )
-1 %
Average number of common shares outstanding 46,680,891 45,504,926 3 % 46,680,891 0 % 46,680,891 45,352,290 3 % Diluted average number of common shares outstanding a) 46,680,891 46,680,891 0 % 46,680,891 0 % 46,680,891 46,528,255 0 %
Per common share data:
(Dilutive) Profit (loss) from continuing operations per common
share a)* (0.04 ) (0.09 ) -49 % (0.02 ) 118 % (0.13 ) (0.02 ) 477 % (Diluted) profit (loss) from discontinued operations per common
share a)* (1.21 ) (0.90 ) 34 % (0.11 ) 1056 % (1.54 ) (1.72 ) -11 % (Dilutive) Profit (loss) per common share* (1.25 )
(0.99 )
26 % (0.13 )
896 % (1.67 )
(1.74 )
-5 %
a) The diluted EPS for previous quarterly and year end was changed
to correct for the antidilutive impact of contingent issuable shares.
*) figures before accounting of currency translation adjustments for
discontinued operations
**) figures adjusted for the discontinued operations
Van der Moolen Holding N.V. Q4
Q4
%
Q3
%
12 months
12 months
%
Revenue breakdown in millions of Euros
2007
2006**
2007**
2007
2006**
Trading US
0.8
0.7
14 %
0.4
100 % 3.9
1.6
144 %
Brokerage US
2.0 - 100 %
1.5
100 % 2.6 - 100 %
Trading Securities Europe
6.8
3.1
119 %
7.0
-3 % 27.5
13.9
98 %
Trading Derivatives Europe
12.2
9.7
26 %
15.3
-20 % 59.1
33.4
77 %
Brokerage Europe
2.4
4.0
-40 %
4.4
-45 % 16.8
15.0
12 %
Total revenues
24.2
17.5
38 %
28.6
-15 % 109.9
63.9
72 %
Van der Moolen Holding N.V. Q4
Q4
%
Q3
%
12 months
12 months
%
Operating margin (Operating profit before other gains and losses
(net), before amortization and impairment of intangible fixed
assets), breakdown in millions of Euros
2007
2006**
2007**
2007
2006**
Trading US
(0.3 )
(0.1
)
200 %
(1.3
)
-77 % (4.7 )
(1.3
)
246 %
Brokerage US
0.1
-
0 %
0.1
0 % 0.2
-
0 %
Trading Securities Europe
0.8
(0.8
)
-200 %
2.3
-65 % 6.4
2.6
146 %
Trading Derivatives Europe
0.6
1.0
-40 %
4.0
-85 % 14.3
6.3
127 %
Brokerage Europe
(0.9 )
(1.0
)
-10 %
0.1
-1000 % (0.9 )
(1.4
)
-36 %
Unallocated and Holding
(0.8 )
(3.2
)
-75 %
(3.8
)
-79 % (12.8 )
(14.5
)
-12 %
Total operating profit before other gains and losses (net), before
amortization and impairment of intangible fixed assets
(0.5 )
(4.1
)
-88 %
1.4
-136 % 2.5
(8.3
)
-130 %
**Q3 2007, Q4 and full year 2006 figures are adjusted for
comparative figure purposes due to discontinued operations
Van der Moolen Holding N.V. Consolidated Balance Sheet (IFRS, unaudited)
(amounts in millions of Euros)
December 31, 2007
December 31, 2006 Assets
Non-current assets
Intangible assets
43.6
84.9
Property, plant and equipment
3.6
6.1
Financial fixed assets
15.4
14.9
Available-for-sale financial assets
9.0
24.2
Cash and cash-equivalents
-
103.0
71.6 233.1 Current assets
Securities owned
600.5
1,077.8
Due from clearing organizations and professional parties
75.0
223.0
Held for sale assets
9.0
-
Current assets and prepaid expenses
19.2
18.2
Cash and cash-equivalents
265.6
114.9
969.3
1,433.9 Total assets
1,040.9
1,667.0
Equity and liabilities Capital and reserves attributable to the Company's equity holders 118.5 215.3
Minority interest
-
4.7
Total equity 118.5 220.0 Non-current liabilities
Capital of minority members
-
13.7
Subordinated borrowings
-
64.9
Other non-current liabilities
7.4
8.4
7.4 87.0 Current liabilities
Securities sold, not yet purchased
632.8
967.7
Due to clearing organizations and professional parties
76.0
212.3
Due to customers
4.7
3.9
Short-term borrowings
49.4
38.9
Bank overdrafts
84.1
112.4
Held for sale liabilities
9.0
-
Other current liabilities and accrued expenses
59.0
24.8
915.0
1,360.0 Total equity and liabilities
1,040.9
1,667.0
Guarantee capital
118.5
298.6
Van der Moolen Holding N.V. Consolidated statement of cash flow (IFRS, unaudited)
Consolidated statement of cash flow
(Amounts in millions of Euros) 12 months 12 months
2007 2006 Cash flow from operating activities 266.1 52.2
Cash flow from investing activities (0.6 ) 2.5
Cash flow from financing activities (78.0 ) (52.7 )
Currency exchange differences on cash and cash-equivalents, net of
bank overdrafts
(8.5
)
(1.1
)
Change in cash and cash-equivalents, net of amounts of bank
overdrafts 179.0 0.9
Cash and cash-equivalents, net of amounts of bank overdrafts at
January 1
2.5
1.6
Cash and cash-equivalents, net of amounts of bank overdrafts at
December 31
181.5
2.5
Van der Moolen Holding N.V. Movement schedule of shareholders'equity (IFRS, unaudited)
Movement in shareholders'equity
(Amounts in millions of Euros)
12 months
12 months
2007
2006
Shareholders' equity at January 1 215.3 221.2
Adjustment prior year
-
(0.4
)
Preferred financing shares
(10.4
)
51.4
Issued common shares and issuable shares (Curvalue acquisition), net
of shares held in treasury
-
44.0
Dividend preferred financing shares
(4.4
)
-
Cash dividend
-
(2.3
)
Currency exchange differences
(10.2
)
(22.8
)
Profit (loss) attributable to common equity holders of the Company
(77.8
)
(78.7
)
Contribution to dividend reserve financing preferred shareholders
3.5
4.0
Reallocation of minority share interest
4.6
-
Fair value change on available-for-sale financial assets
(2.1
)
(1.6
)
Share option expense
-
0.5
(96.8
)
(5.9
)
Shareholders' equity at December 31
118.5
215.3
Basis of presentation
This interim report for the twelve months ended 31 December 2007 is
prepared in accordance with IAS 34 – Interim
Financial Reporting. It does not include all of the information required
for full annual financial statements, and should be read in conjunction
with the consolidated financial statements of Van der Moolen Holding NV
for the year ended 31 December 2006 as included in the Annual Report
2006. Van der Moolen’s 2006 consolidated
financial statements are prepared in accordance with International
Financial Reporting Standards (‘IFRS’)
as adopted by the European Union (‘EU’).
In preparing this financial report, the same accounting principles and
methods of computation are applied as in the consolidated financial
statements for the year ended 31 December 2006. This financial report is
unaudited.
Explanatory notes
Explanatory notes to the financial data reported are included in the
front part of this interim report. To avoid duplication of data this
information is not repeated.
