VDM Van Der Moolen Ads

Key Figures � � � � � Euros millions 2nd quarter 2nd quarter 1st quarter 6 months � 2007 � 2006 � 2007 � 2007 � 2006 Revenues 35.2 � 40.5 � 39.6 � 74.8 � 79.5 Operating profit (loss) (5.2 ) (5.3 ) (1.0 ) (6.2 ) 24.0 Profit (loss) for the period (9.3 ) (7.7 ) (4.4 ) (13.7 ) 6.3 Profit (loss) attributable to common equity holders of the Company (9.6 ) (9.4 ) (4.3 ) (13.9 ) 1.7 Guarantee capital 242.9 � 414.7 � 279.5 � 242.9 � 414.7 Per common share data (Euros x 1) � � � � � Profit (loss) (0.21 ) (0.21 ) (0.09 ) (0.30 ) 0.04 Diluted profit (loss) (0.21 ) (0.20 ) (0.09 ) (0.30 ) 0.04 � � � � � � Average US dollar/Euro rate 0.74 � 0.80 � 0.76 � 0.75 � 0.81 Van der Moolen Holding NV (NYSE:VDM) (Amsterdam:VDMN) (liquidity provider and broker in equities, bonds and related instruments in the US and in Europe), today reported its results for the second quarter of 2007. Highlights: Revenues of � 35.2 million in Q2 2007, compared to � 39.6 Q1 2007; Net loss of � 9.6 million attributable to common shareholders in Q2 2007; Substantial growth of profits in Europe; Losses are fully caused by US activities; Loss per common share of � 0.21 in the second quarter of 2007; Cost reduction program US successfully executed. Further cost base reduction to meet target of � 20.0 million annualized cost saving target by end of 2007; Profitability of US operations expected in the second half year of 2007. Richard den Drijver, Chief Executive Officer of Van der Moolen Holding NV commented: �European trading and brokerage activities showed ongoing strong performance in the second quarter of 2007 and an increase of revenues of 70% in the first half year of 2007. Revenues of our US activities showed a further decline and a decrease of revenues of 68% in the first half year of 2007. In the second quarter of 2007 we have taken a series of measures to right size and tailor our US activities to the full implementation of the NYSE hybrid system. With the newly dimensioned US operation we target for profitability in the second half year of 2007�. Operational highlights first half year of 2007 European activities In the first half year of 2007 the European activities of Van der Moolen showed an ongoing growth in revenues and profitability. We experienced favourable market conditions in all our markets in which we are active. In Europe, Van der Moolen has operations in Amsterdam, London, Paris, Cologne and Zug. In Amsterdam the company is acting as a liquidity provider and broker. In London, Cologne and Zug we are active as proprietary trader in equities and derivatives and arbitrageur. In the first half year of 2007 European revenues represented 81.3% of total revenues of Van der Moolen, compared to 48.0% in full year 2006. Ongoing growth in revenues and profitability For the first half year of 2007, revenues of European activities amounted to � 60.8 million compared to an amount of � 35.8 million in the first half year of 2006, an increase of 70%. Of these revenues, brokerage activities contributed revenues of � 10.0 million in the first half year of 2007, compared to an amount of � 7.2 million in the first half year of 2006, an increase of 39%. Strong performance brokerage European brokerage, based in Amsterdam, has experienced a strong half year 2007. Van der Moolen is acting as an execution broker for professional clients and revenues increased by 39% versus 2006. The brokerage activities were benefiting from a strong investing climate, high turnovers and favourable market conditions. Our teams with strong execution skills helped further expand our professional client base. Through the acquisition of Robbins & Henderson and our own brokerage team we also will be able to provide our European client base with strong execution in the US markets. Investments in Online Trader In the first half year of 2007 Online Trader, our electronic trading platform got more traction with professional users. Due to our marketing efforts the number of, mainly, professional clients increased by approximately 40%. Recently we have started to market Online Trader to a broader investing community in the Netherlands and also in the French market. We believe that the combination between high speed execution and a low fee structure will make Online Trader an integral part of the professional and semi professional trading community. We will continue our marketing campaign again in the third quarter and new products and markets will be added in the remainder of the year. Termination bond activities In the first half year of 2007 Van der Moolen has decided to terminate the local Amsterdam cash bond activities after concluding that the activities could not be scaled to the desired levels. This is in line with our policy to reconsider activities that fail to reach pre-agreed growth targets. US activities Revenues of the US activities amounted to � 14.0 million in the first half year of 2007 compared to � 43.7 million in the first half year of 2006, a decrease of 68%. In the first half year of 2007 US revenues represented 18.7% of total revenues of Van der Moolen, compared to 52.0% in full year 2006. In the US, Van der Moolen is active as a liquidity provider and a participant in exchanges. Improved participation rate VDM Specialists USA In the first quarter of 2007, VDM Specialists USA participation rate was 3.6% versus NYSE average of 4%. In July 2007 VDM Specialists USA participation rate was 4.6%, an increase of 28%. Year to date, VDM Specialists USA participation rate is even with the NYSE average of 4%. In the first half year of 2007 the market share of the NYSE showed an ongoing decline. The NYSE market share in US markets declined from 75.1% to 64.8% from 31.12.2006 to 30.06.2007. The average trade size decreased from 599 shares to 345 shares. Restructuring US operations In March 2007, we announced that we would re-evaluate our business and organization model in the US following the strong decline in revenues from our specialist activities. Since then we have made significant progress in the restructuring of the US organization. The NYSE hybrid system allows VDM Specialists USA to downsize the staff level from 207 to 100 in the US. The normalised cost base for the second half year of 2007 is expected to be reduced by more than 35% compared to the first half year of 2007, resulting in a normalised expected costs saving of � 8.0 million. The organization structure is optimized. We have used assessment centre techniques to test the trading skills of our floor staff and have improved the trading circumstances by adjusting the software and by hiring new experienced and competitive traders. After the restructuring we expect to realize profitability for the US activities during the second half year of 2007. Increased stake in VDM Specialists USA In the second quarter of 2007, Van der Moolen increased its interest in Van der Moolen Specialists USA from 75% to 92.1%. The remaining minority interest of 7.9% is subject to the option agreement with the remaining minority partners of VDM Specialists USA to acquire the minority interest in Van der Moolen Specialists USA CBSX Designed as a highly cost-effective marketplace, CBSX provides economic incentives to liquidity providers to provide the best markets without sacrificing a level playing field for all market participants. Since the launch in March 2007 the roll out of stocks has been successful. The CBSX trades over 2800 different stocks and ETF's in which VDMS is in 700 of that liquidity provider. The volume of shares traded on the CBSX since the launch in March grew exponentially to a record high in July of over 126 million shares. VDM Capital markets actively make markets on the CBSX through our various trading models where we make use of the liquidity incentive the CBSX is offering to its market participants. The CBSX will continue to further roll out the number of stocks and products in the second half year of 2007. Strategy In August 2006 Van der Moolen disclosed a new strategy which is aimed at creating three sources of income (liquidity provider, brokerage, partnerships with exchanges) in three regions (Europe, US, Asia). Currently in Europe Van der Moolen has two sources of income, as a liquidity provider and broker. In the US we are active as a liquidity provider and participant in exchanges. The acquisition of Robbins & Henderson in July 2007 marked the start of brokerage activities in the US. In Asia Van der Moolen is planning to roll out activities in the first half year of 2008. Financial highlights first half year of 2007 The European activities have generated a net profit of � 3.7 million in the second quarter of 2007 compared to a net profit of � 3.2 million in the first quarter of 2007. US activities have contributed a net loss of � 7.7 million for the second quarter of 2007 compared to a net loss of � 4.8 million in the first quarter of 2007. In the second quarter of 2007 the interest in Van der Moolen Specialists USA has increased from 75% to 92.1% as a result of the takeover of minority interests. In June 2007 Van der Moolen entered into an option agreement with the remaining minority partners of VDM Specialists USA to acquire a total of 15.6% minority interest in Van der Moolen Specialists USA of which 7.9% was remaining as at June 30, 2007. Under the abovementioned option agreement the minority partners have the right to sell their interest in Van der Moolen Specialists USA for an agreed amount of $ 8.3 million in total. The put option is carried at the books of Van der Moolen at fair value and is revalued at reporting date, resulting in a benefit of � 0.1 million in the second quarter 2007. As a result of the takeover and the agreed option agreement, 100% of the result of Van der Moolen Specialists USA is recorded in the profit and loss statement as from April 1, 2007. In addition, as a result of the increase in Van der Moolen interest in Van der Moolen Specialists USA and the option agreement the following accounting treatment is applicable under IFRS: The minority interest is fully allocated to the capital and reserves attributable to the Company's equity holders; and The capital of the minority members is partly recorded as liability at the agreed strike price. In the second quarter of 2007, we have put a strong effort in reshaping our US activities. We have adapted our systems, our organization and our staffing to be more efficient in the NYSE hybrid system. In addition, we have refueled our trading teams and have brought new senior floor staff. The newly shaped organization needs to prove sustainability of Van der Moolen Specialists USA in the hybrid market on the NYSE in the coming months. Revenues At � 35.2 million, our reported total revenues in the second quarter of 2007 were 11% lower than in the first quarter of 2007 and 13% below those earned in the second quarter of 2006. On a geographical basis our revenues can be summarized as follows: Van der Moolen Holding N.V. Q2 Q2 % Q1 % 6 months 6 months % Revenue breakdown in millions of Euros 2007 2006 � 2007 � 2007 2006 � Europe 28.9 19.4 49% 31.9 -9% 60.8 35.8 70% USA 6.3 21.1 -70% 7.7 -18% 14.0 43.7 -68% Total revenues 35.2 40.5 -13% 39.6 -11% 74.8 79.5 -6% At � 28.9 million, the reported revenues in Europe are 9% lower than in the first quarter of 2007 but 49% higher than in the second quarter of 2006. On a six months basis, reported revenues in Europe are 70% higher than in 2006. The sharp growth in Europe was fueled by excellent trading conditions and diversification of financial products. At � 6.3 million, the reported revenues in the US are 18% lower than in the first quarter of 2007 and 70% lower than in the second quarter of 2006. On a six months basis, reported revenues in the US are 68% lower than in the first half year of 2006. The sharp decline in revenues in Van der Moolen Specialists USA compared to 2006 is mainly due to the implementation of NYSE Hybrid, the decline of the NYSE market share and the decline of the specialist participation rate. Other gains and losses - net In the second quarter of 2007 other gains and losses (net) amounts to nil. This is the net amount of the following items: A benefit of � 0.1 million as a result of the revaluation of the option agreement with the remaining minority partners of VDMS to acquire a total of 15.6% minority interest in Van der Moolen Specialists USA (of which 7.9% was remaining as at June 30, 2007). A realized profit of � 0.5 million as a result of the sale of NYSE Group shares. Operating expenses Total operating expenses in the second quarter were � 0.4 million higher than in the first quarter of 2007 and � 3.9 million lower than in the second quarter of 2006. Factors that significantly impacted the comparison with the first quarter of 2007 and the second quarter of 2006 are: Employee benefit expenses decreased by � 3.2 million or 16% compared to the first quarter of 2007 and increased by � 5.4 million or 48% compared to the second quarter of 2006. Severance payment expenses amounted to � 2.2 million in the second quarter of 2007, against an amount of � 2.0 million in the first quarter of 2007. The decrease compared to the first quarter of 2007 is mainly due to the results of the net reduction in work force in the US. Furthermore, variable employee compensation and benefit expenses amounted to � 7.2 million in the second quarter of 2007 compared to an amount of � 8.6 million in the first quarter 2007, a decrease of � 1.4 million. The decrease of the variable employee compensation and benefit expenses compared to the first quarter of 2007 is mainly due to the relative contribution of the different bonus arrangements in place throughout the Group and is mainly related to lower variable employee benefits expenses related to the activities in Europe in the second quarter of 2007. Other general and administrative expenses increased by � 3.8 million compared to the first quarter 2007 and decreased by � 10.0 million compared to the second quarter 2006. The increase compared to the first quarter of 2007 is mainly attributable to a one off benefit of � 0.6 million related to the favorable settlement of accrued legal fees related to the US activities in the first quarter of 2007 as well as additional costs related to our annual reporting (� 0.4 million), costs related to the professional fees at Group level (� 0.6 million), additional insurance costs (� 0.4 million) and accrued legal expenses (� 0.5 million). In addition, business started up in the last year had higher general and administrative expenses for an amount of � 0.5 million in the second quarter of 2007 compared to the first quarter of 2007. Compared to the second quarter of 2006, the decrease is caused by the recording of an impairment of charge of � 10.0 million and the recording of settlement expenses amounting to � 4.1 million in the second quarter of 2006. Total general and administrative expenses increased by � 4.1 million, mainly due to the factors indicated in the comparison with the first quarter of 2007. Operating profit Excluding the other gains and losses (net), the amortization expense and the impairment of fixed assets, operating loss amounted to � 4.5 million in the second quarter of 2007 compared to an operating profit of � 0.1 million in the first quarter of 2007 and � 6.6 million in the second quarter of 2006. The operating margin calculated on this basis was (negative) 12.8% in the second quarter of 2007, compared to 0.3% and 16.3% in the first quarter of 2007 and second quarter of 2006, respectively. The decrease in the operating margin is mainly due to the impact of lower profitability in the US and higher expenses at Group level. Net financing costs Net financing costs amounted to � 1.3 million in the second quarter of 2007, compared to � 2.2 million in the first quarter of 2007 and � 0.9 million in the second quarter of 2006. The net financing costs for the second quarter of 2007 are impacted by the repayment of the remaining part of the 7.11% $ 40 million subordinated borrowing in March 2007 for which, as a consequence, no interest expenses are recognised related to this borrowing in the second quarter of 2007. Furthermore, interest income increased by � 0.2 million compared to the first quarter 2007. For the first quarter of 2007 the functional currency of Van der Moolen Holding NV has been the US dollar. As a result of increased European trading and decreased US trading results, Van der Moolen has reassessed its functional currency in the second quarter of 2007 and changed from US dollar to Euro as from April 1, 2007. The foreign currency result amounted to � 0.2 million charge for the second quarter of 2007, compared to � 0.3 million charge in the first quarter of 2007. Income tax Income tax expense in the second quarter of 2007 was � 2.8 million, representing a consolidated effective tax rate of 47%, against a � 1.2 million charge, or 57% negative, in the preceding quarter and a charge of � 1.5 million, or 22% negative, in the second quarter of 2006. The consolidated effective tax rate in the current quarter includes the impact of the absence of a (net) deferred tax asset positions related to our US activities. Furthermore, the tax line in the second quarter of 2007 is impacted by the tax impact caused by the decrease of the unrealized gain on the NYSE Group shares. Minority interest In the second quarter of 2007, Van der Moolen increased its interest in Van der Moolen Specialists USA from 75% to 92.1%. The remaining minority interest of 7.9% is subject to the option agreement with the remaining minority partners to acquire the minority interest in Van der Moolen Specialists USA. EPS The weighted average number of outstanding shares to calculate basic earnings per share is 46.680.891 for the second quarter of 2007 and the first half year of 2007. Loss per common share amounts to 0.21 in the second quarter of 2007, compared to a loss of � 0.09 in the first quarter 2007 and a loss of � 0.21 in the second quarter of 2006. Balance sheet total On June 30, 2007 our Balance Sheet total was � 2.1 billion compared to a balance sheet total of � 1.7 billion at year end 2006. Intangible assets Intangible assets, including goodwill, decreased from � 84.9 million at December 31, 2006 to � 82.9 million at June 30, 2007. This decrease mainly reflects the amortization of intangible fixed assets in the first half year of 2007 and the impact of the devaluation of the US currency against the Euro. For the first half year of 2007, management has assessed that there are no indications that the carrying amount of our intangibles may not be recoverable. Guarantee capital 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 to � 242.9 million at June 30, 2007. This decrease is mainly caused by: a decrease of � 9.6 million, mainly related to the repayment of subordinated borrowings (March 2007); the loss attributable to the first six months of 2007 of � 13.9 million; a � 10.4 million repurchase and cancellation of 251,000 cumulative financing preferred shares A of Van der Moolen Holding NV; a � 4.4 million payment of preferred financing dividend (May 2007); a � 13.7 million reduction in the capital accounts of minority members; a � 2.7 million decrease in fair value reserve related to the sale of NYSE shares; other items resulting in a net decrease of � 1.0 million. Cash and cash equivalents The Group has approximately � 15 million of freely-available cash (including disposition on security positions and other assets) (December 31, 2006: � 19 million). Further, it has � 15 million available in short-term committed credit lines of which � 5 million is currently drawn. Non-current cash and cash equivalents The non-current cash and cash equivalents reflect that part of cash and cash equivalents held by VDM Specialists USA for purposes of compliance with the Net Liquid Asset ("NLA") requirement set by the New York Stock Exchange. The total NLA requirement amounts to $ 122 million (or � 90 million) at June 30, 2007. Available for sale assets At June 30, 2007 we own 216,302 NY shares in the NYSE Group. Unrealized gains and losses on the NYSE Group shares are recorded in the fair value reserve in equity. Cash flow from operating activities Cash flow from operating activities amounted to � 76.2 million negative in the first half year of 2007, mainly due to a cash outflow of � 93.4 million due to the development of our trading position in the first half year of 2007, which is partly offset by a � 12.0 million release from the non-current cash and cash equivalents. Cash flow from investing activities Cash flow from investing activities amounted to � 1.8 million, mainly related to the proceeds from the sale of available for sale assets of � 4.7 million, partly offset by investments in software and tangible fixed assets. Cash flow from financing activities Cash flow from financing activities amounted to � 42.0 million negative, mainly caused by the repurchase and cancellation of 251,000 cumulative financing preferred shares A of Van der Moolen Holding NV, the repayment of subordinated debt in March 2007, interest payments and repayment to minority members and the payment of dividend on the financing preferred shares. Subsequent events Europe Closing VDM Obligaties activities In the first half year of 2007 Van der Moolen has decided to terminate the European bond activities in VDM Obligaties as from August 1, 2007 after concluding that the activities could not be scaled to the desired levels. VDM Obligaties made market in Dutch and selected French, Italian and Belgian fixed income instrument traded in Euronext. Its primary activity was to provide liquidity in these bonds to banks and brokers in order to fill retail order flow. The revenues of these activities, mainly being commissions and partly from gains on principal transactions, amounted to � 1.3 million for the full year 2006 and � 0.5 million for the first six months of 2007. US Acquisition of Robbins & Henderson On July 26, 2007, Van der Moolen announced the acquisition of Robbins & Henderson, a US based institutional broker. Gross revenues for 2006 amounted to $ 6.4 million. The acquisition is subject to regulatory consent. The acquisition price is based on the earnings of Robbins & Henderson for the years 2006, 2007 and 2008. The acquisition price amounts to $ 2 million based on the 2006 earnings and, in addition, the net profit for the year multiplied by factor 4.5 for 2007 and 4 for 2008. The results of Robbins and Henderson will be included in the VDM figures as of third quarter earnings. Sale of NYSE shares In July 2007, Van der Moolen has sold, in addition to the sale of 82,822 NYSE Group shares in the second quarter, 40,826 Group NYSE shares, resulting in a sale of in total 123,648 in 2007 at an average price of $ 74.36. The remaining number of shares Van der Moolen owns to date is 175,476. Repayment subordinated borrowings At August 3, 2007 we have repaid an amount of $ 35 million related to the subordinated borrowings, in conformity with the contractual repayment schedule. Supervisory Board On August 14, 2007 Prof.dr. R.G.C. van den Brink has resigned as member (Chairman) of the Supervisory Board of Van der Moolen Holding N.V. for personal reasons. The Supervisory Board and the Executive Board of Van der Moolen thank Prof.dr. Van den Brink for his knowledgeable advice and service over many years. The vacancy in the Supervisory Board will be filled in, in accordance with applicable rules, as soon as possible. His colleague, drs. M. Arentsen RA will take over the position as Chairman of the Supervisory Board�for the time being. 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) Q2 Q2 % Q1 % 6 months 6 months % � 2007 � 2006 � � 2007 � � 2007 � 2006 � � � � Revenues 35.2 40.5 -13 % 39.6 -11 % 74.8 79.5 -6 % � Other gains and losses - net 0.6 (0.9 ) -167 % - 0.6 21.1 -97 % � Exchange, clearing and brokerage fees/trading licenses (12.1 ) (11.7 ) 3 % (12.4 ) -2 % (24.5 ) (22.2 ) 10 % Employee benefit expense (16.7 ) (11.3 ) 48 % (19.9 ) -16 % (36.6 ) (23.9 ) 53 % Depreciation and amortization expenses (1.8 ) (1.5 ) 20 % (1.7 ) 6 % (3.5 ) (3.1 ) 13 % General and administrative expenses (10.4 ) (20.4 ) -49 % (6.6 ) 58 % (17.0 ) (27.4 ) -38 % � Total operating expenses (41.0 ) (44.9 ) -9 % (40.6 ) 1 % (81.6 ) (76.6 ) 7 % � Operating profit (loss) (5.2 ) (5.3 ) -2 % (1.0 ) 420 % (6.2 ) 24.0 -126 % � Net financing costs (1.3 ) (0.9 ) (2.2 ) (3.5 ) (4.7 ) -26 % � Profit (loss) before income tax (6.5 ) (6.2 ) 5 % (3.2 ) 103 % (9.7 ) 19.3 -150 % Income tax benefit/ (expense) (2.8 ) (1.5 ) (1.2 ) (4.0 ) (13.0 ) -69 % Profit (loss) for the period (9.3 ) (7.7 ) 21 % (4.4 ) 111 % (13.7 ) 6.3 -317 % � Profit attributable to minority interest (0.6 ) 0.7 (1.1 ) (1.7 ) 3.6 -147 % Preferred financing dividend 0.9 1.0 1.0 1.9 1.0 90 % Profit (loss) attributable to common equity holders of the Company � (9.6 ) (9.4 ) 2 % (4.3 ) 123 % (13.9 ) 1.7 � -918 % � � � � � � � � � � Average number of common shares outstanding 46,680,891 45,453,298 3 % 46,680,891 0 % 46,680,891 45,197,124 3 % Diluted average number of common shares outstanding a) 46,680,891 45,894,242 2 % 46,680,891 0 % 46,680,891 45,638,068 2 % Per common share data: Profit (loss) per common share (0.21 ) (0.21 ) -1 % (0.09 ) 123 % (0.30 ) 0.04 -892 % Diluted profit (loss) per common share (0.21 ) (0.20 ) 0 % (0.09 ) 123 % (0.30 ) 0.04 � -892 % Van der Moolen Holding N.V. Q2 2007 Q2 2006 % Q1 2007 % 6 months 2007 6 months 2006 % Revenue breakdown in millions of Euros US Operations 6.3 21.1 -70% 7.7 -18% 14.0 43.7 -68% European Trading 16.6 9.2 80% 20.7 -20% 37.3 17.1 118% PMM/CMM Principal Trading 7.2 6.4 13% 6.3 14% 13.5 11.5 17% Brokerage activities 5.1 3.8 34% 4.9 4% 10.0 7.2 39% Total revenues 35.2 40.5 -13% 39.6 -11% 74.8 79.5 -6% � � � � � � � � � Van der Moolen Holding N.V. Q2 2007 Q2 2006 % Q1 2007 % 6 months 2007 6 months 2006 % Operating profit before other gains and losses (net), before amortization of intangible fixed assets and before impairment, breakdown in millions of Euros � US Operations (5.2) 8.3 -163% (2.5) 108% (7.7) 17.4 -144% European Trading 3.9 2.5 56% 5.0 -22% 8.9 4.5 98% PMM/CMM Principal Trading 1.7 1.7 0% 1.6 6% 3.3 2.5 32% Brokerage activities (0.3) (0.2) 50% (0.4) -25% (0.7) (0.5) 40% Unallocated and Holding (4.6) (5.7) -19% (3.6) 28% (8.2) (9.0) -9% Total operating profit before other gains and losses (net), before amortization of intangible fixed assets and before impairment � (4.5) 6.6 -168% 0.1 -4600% (4.4) 14.9 -130% Van der Moolen Holding N.V. Consolidated Balance Sheet (IFRS, unaudited) (amounts in millions of Euros) � � � June 30, 2007 � December 31, 2006 Assets Non-current assets Intangible assets 82.9 84.9 Property, plant and equipment 5.4 6.1 Financial fixed assets 16.0 14.9 Available-for-sale financial assets 14.1 24.2 Cash and cash-equivalents 90.2 103.0 � � 208.6 233.1 Current assets Securities owned 1,451.0 1,077.8 Due from clearing organizations and professional parties 321.2 223.0 Current assets and prepaid expenses 19.7 18.2 Cash and cash-equivalents 102.7 114.9 � � � � � � 1,894.6 � 1,433.9 Total assets � � � 2,103.2 � 1,667.0 � Equity and liabilities Capital and reserves attributable to the Company's equity holders 187.6 215.3 Minority interest - 4.7 � � Total equity 187.6 220.0 Non-current liabilities Capital of minority members - 13.7 Subordinated borrowings 55.3 64.9 Other non-current liabilities 10.4 8.4 � � 65.7 87.0 Current liabilities Securities sold, not yet purchased 1,157.4 967.7 Due to clearing organizations and professional parties 385.9 212.3 Due to customers 18.3 3.9 Short-term borrowings 29.6 38.9 Bank overdrafts 217.7 112.4 Other current liabilities and accrued expenses 41.0 24.8 � � � � � � 1,849.9 � 1,360.0 Total equity and liabilities � � � 2,103.2 � 1,667.0 � � � � � � � Guarantee capital � � � 242.9 � 298.6 Van der Moolen Holding N.V. Movement schedule of shareholders' equity (IFRS, unaudited) � Movement in shareholders' equity � � � � (Amounts in millions of euros) 6 months 6 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 - 42.1 Dividend preferred financing shares (4.4) - Cash dividend - (2.3) Currency exchange differences (2.9) (17.7) Profit (loss) attributable to common equity holders of the Company (13.9) 2.1 Contribution to dividend reserve financing preferred shareholders 1.9 2.1 Sale of treasury shares - 0.7 Share option contribution 0.1 - Reallocation of minority partner interest 4.6 - Fair value change on available-for-sale financial assets (2.7) � (4.9) � (27.7) 73.1 Shareholders' equity at June 30 � 187.6 � 294.3 � � Consolidated statement of cash flow (IFRS, unaudited) � Consolidated statement of cash flow � � � � (Amounts in millions of Euros) 6 months 6 months � 2007 � 2006 � Cash flow from operating activities (76.2) 5.1 � Cash flow from investing activities 1.8 20.8 � Cash flow from financing activities (42.0) (24.6) � Currency exchange differences on cash and cash-equivalents, net of bank overdrafts (1.1) 0.8 � Change in cash and cash-equivalents, net of amounts of bank overdrafts (117.5) 2.1 � 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 June 30, 2007 � (115.0) � 3.7