Real Software was established in 1986. In 2002, a group turnover of €179.6 m was generated, with an operating profit (EBIT) of €14 m, representing an EBIT margin of 7.8%. The Real Software Group currently has 1,547 employees. Since 2002, the group's organisation has been based around four divisions: Banking & Insurance, Industry (formerly Manufacturing & Maintenance), Business & Government and Retail. It offers a comprehensive range of software services, from the development and implementation of inhouse products, tailor-made projects and outsourcing through to advice, implementation and sales of products produced by other companies such as SAP, JD Edwards, Oracle, Microsoft Navision and Microsoft Axapta. The company exports Belgian technology to a number of countries, including Luxembourg, the Netherlands, France, Germany and Switzerland. Its customer portfolio includes companies such as Du Pont de Nemours, Carrefour, Johnson & Johnson, Merck Sharp & Dohme, Biogen, Renault, the Paris Metro, TF1, EDF - Electricité de France, SNCF, PTT Post, NedCar, Philips, Bandag, Goodyear, KBC Bank and Fortis Bank.

HIGHLIGHTS
Real Software closes year with €2.3m net profit.
Net profit improves by €12.6m to a positive result of €2.3m compared with 20052.
Turnaround of operations successful resulting in further improvement of Recurring
Operating Result1 to 4.4% of Turnover on continued Operations.
€60m of shareholder debt converted into equity resulting in €10.5m positive equity after reported net profit in 2006.
Debt will be further reduced by €6.0m to €15.7m, based on reported 2006 results, from proceeds of divestiture of non-strategic Retail division in January 2007.
Results for year end 2006
in m € 2006 2005 ² Variance
31/dec 31/dec
Turnover continued operations 90,7 99,8 -9,1
Recurring operating result continued oper. (1) 4,0 0,9 3,1
as % Turnover 4,4% 1,0% 3,4%
Operating result continued operations 6,6 -2,3 8,9
Net profit (loss) for the year 2,3 -10,3 12,6
Net Operating cash flow -2,4 1,5 -3,9
Equity 10,5 -53,4 63,9
Debt 21,7 73,6 -51,9
• Turnover continued operations
Group turnover in 2006 was €90.7m, a decrease of 9.2% compared to 20052 reflecting
continued rationalization of the business that took place in 2005 and through 2006. Turnover in
the Products segment is 3.9% below last year, which is considerably better than the 10.9%
decline experienced in the first half, despite the rationalization of the product portfolio that has
taken place last year. Services are 10.9% below last year, in line with decline reported in first
half, reflecting rationalization that has taken place and difficulties to recruit services
professionals in the first half of 2006.