RSDB YEAR RESULTS 2006

RSDB CONFIDENT ABOUT FUTURE
• Net result EUR 7.6 million and thereby in line with expectations
• Interest bearing debt reduced to EUR 83,5 million
• Dividend level maintained
• Roto Smeets growth in kilotons paper again 6.5% above market average
• RSDB well placed for leading role in European consolidation
• Restructuring of organisation on schedule

2006 ANNUAL ACCOUNTS
In 2006 RSDB with its continued operations realised a net profit from ordinary activities of EUR 7.6 million, against EUR 14.4 million in 2005 (-47%). Accounting for an unforeseen increase of the budgeted redundancy costs, the net result amounted to EUR 10.4 million. Other important negative factors influencing the result development were pressure on margins and strongly increased costs of energy carriers to the amount of EUR 4.4 million.

Turnover of the continued operating activities amounted to EUR 531.3 million (2005: EUR 534.9 million). Value added amounted to EUR 246.4 million (2005: EUR 252.0 million). The total of personnel costs, depreciation, impairments and other operating costs increased by 4.4 million to EUR 231.3 million (2005: EUR 226.9 million).
The operating result (EBIT) amounts EUR 15.2 million (2005: EUR 25.0 million).
The result from ordinary activities declined strongly, in line with the forecast mentioned in the press release of August 15, including reorganisation / redundancy costs of net EUR 7.0 million.
The negative balance of financial income and expenses improved by EUR 0.4 million to EUR 4.5 million (2005: EUR 4.9 million). The cash flow from operating activities amounted to EUR 27.6 million (2005: EUR 29.3 million). Interest bearing debts declined by EUR 12.3 million to EUR 83.5 million (2005: EUR 95.7 million). The solvency ratio was 41.7% (at year-end 2005: 39.0%).

At an unchanged number of 3,290,275 issued ordinary shares, the profit per share amounted to EUR 2.32 (2005: EUR 4.41). A cash dividend of EUR 1.76 (2005 EUR 1.76) per ordinary share will be proposed to the annual General Meeting of Shareholders, to be held on April 11, 2007.

RESULT DEVELOPMENT
The result development of Print Productions and Marketing Communications was as follows:

x EUR 1 mln	2006			2005
	turnover	net result		turnover	net result
Print Productions	494,574	6,126		495,851	13,565
Marketing Communications	37,972	1,479		40,743	871

The number of employees on the basis of fulltime equivalents declined from 2,633 at year-end 2005 to 2,452 at year-end 2006.

REVIEW 2006
RSDB in 2006 outperformed the market in a challenging year. In the General Meeting of Shareholders of June 2006, it was mentioned that the overcapacity in the large scale webfed printing sector is causing severe price pressure, which situation is set to continue for some years to come.
The Roto Smeets brand again managed to realise, in these difficult conditions, a growth in kilotons of paper of 8%, which was approximately 6.5% above market average. In combination with implemented cost savings actions, however, this growth proved insufficient to deal with the price erosion in the market. This was partly due to an increase of energy costs of € 4.4 million.
The sale of Ten Klei Grafische Nabewerking to Kaspar Group completed the divestment of the PlantijnCasparie companies that was announced in 2004.
The former PlantijnCasparie facilities in Utrecht and Eindhoven performed in 2006 under the banner of the Roto Smeets GrafiServices brand. There was also pressure on prices in the sheetfed printing market, but due to the scale of both facilities Roto Smeets GrafiServices still managed to realise strong results.

Marketing Communications both improved its result and strengthened its position in the market. On the supply side, however, the situation of players both entering and leaving the market remains. Marketing Communications reacts to this by researching into new product / services combinations, but also by continuing to strive for the best possible price / quality control.
After having investigated the possibilities offered by the market the Executive Board, after consultations with the Supervisory Board, has decided to let Marketing Communications grow autonomously. Within Marketing Communications, the Media Partners group on the one hand and 2organize and Leads to Loyals on the other hand are managed separately. Reporting is done to a member of the Executive Board.

RSDB is on course with regard to the internal restructuring. A restructuring with an enormous impact, into which a lot of money is invested and which will require a large effort of the organisation. The implementation will be completed at year-end 2007, as a result of which the full effects of this restructuring will not become visible before 2008.

OUTLOOK
The European Commission has upgraded the growth forecast for 2007 for the Eurozone from 2.1% to 2.4%. Within the Eurozone, the Netherlands’ performance is even better than average. Still, we do not see this growth in our industry sector, or in that of our suppliers, whereby it is a historical fact our industry always moves behind the trend, both going up and going down. This development, however, seems to have turned, partly as a result of the multi-media developments.

The turning of the trend as mentioned above again confirms that RSDB’s strategy of consolidation is the right one. Within its implementation, RSDB, in addition to a reconsideration with regard to some parts, will play a more leading role in the European consolidation process, while it hopes to gain support from all involved parties in doing so, in order to eventually restore the balance of supply and demand in the European markets, thus creating value for all stakeholders.

The market conditions in 2007 for our industry - see also the publications of our international competitors – again force us to trust our own strengths and qualities as an organisation, believe in them and convert them, with our full energy and efforts, in the required decisiveness to again produce growth above the market average development. The expectation is that RSDB, barring unforeseen circumstances, will in 2007 manage to equal the result of 2006 and again will reduce its interest bearing debt.

Hilversum, March 15, 2007

RSDB NV
Executive Board

For further information:
RSDB: J.P. Caris, tel. 035 - 625 86 03

Year results RSDB - 2006 Size: 60 KB

No audit applied.

Annexes:
- Consolidated profit and loss account
- Balance
- Consolidated statement of cash flow

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