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Source: Exact.com
Date: 11th Feb 2010

Exact Reports Increased EBITDA Margin and Cash Flow for FY 2009

Press Release
Exact Reports Increased EBITDA Margin and Cash Flow for FY 2009
DELFT, 11-02-2010

Early preparation for global economic downturn and diligent cost management mitigates impact on profitability
Exact Holding N.V. (Exact) announces its results for FY 2009.

Financial highlights
The global economic crisis impacted revenue across all regions negatively, resulting in a decline of total revenue by 10.9% to € 232.5 million (FY 2008: € 261.0 million). This was caused by a decline in license and service revenue, which was partly offset by an increase in maintenance revenue.
Total operating costs have been reduced by € 24.8 million to € 186.8 million (FY 2008: € 211.6 million), representing a decline of 11.7% and mainly driven by a decrease in personnel expenses.
EBITDA margin increased to 23.4% (FY 2008: 22.3%) as a result of compensating some 85% of the revenue decline by early initiation of cost savings. EBITDA amounted to € 54.3 million (FY 2008: € 58.2 million), representing a decline of 6.6%.
Net income amounted to € 33.6 million (FY 2008: € 36.4 million), representing a decrease of 7.7% as a result of a lower operating income.
Despite the negative economic climate the operating cash flow increased by 5.6% to € 49.8 million (FY 2008: € 47.1 million), representing a profit to cash conversion of 147% (FY 2008: 128%).
The net cash position increased to € 48.9 million as per December 31, 2009 (December 31, 2008: € 44.7 million). The balance sheet remains very strong and virtually debt free.
EPS amounted to € 1.47 (FY 2008: € 1.54), representing a decrease of 4.5%.
A final dividend payout of € 0.81 per share will be proposed in addition to the interim dividend of € 0.66 per share paid on August 7, 2009. This amounts to a total dividend for 2009 of € 1.47 per share, which represents a 100% payout of net income in line with dividend policy.

Strategic and operational highlights
As a result of measures taken in 2008 to align the company’s cost structure to the current economic conditions and ongoing cost prudency programs, operating expenses decreased by 11.7%, mainly driven by a decrease in personnel expenses. The total number of employees excluding acquisitions and divestments was further reduced by 7% in 2009 to approximately 2,200. Associated one-time restructuring costs amounted to € 1.3 million.
New business remained weak throughout the year and the recovery trend in Q3 was not continued in Q4, leading to a decline in license revenue of 26.5% for the full year 2009 and subsequently a decline in service revenue of 24.0%. Sales to existing customers remained robust and accounted for approximately 80% of license revenue.
As a result of stable renewal rates and a CPI based price increase per January 2009, maintenance revenue increased by 3.8% to € 134.5 million (FY 2008: € 129.6 million).
As a strategic investment going forward, Exact, in association with its 25th anniversary, successfully rolled out a new brand identity globally in the fourth quarter of 2009 with associated one-time costs of € 1.4 million.
The demand from larger international companies for Exact’s solutions as an alternative to tier 1 solutions has increased and led to a number of significant contract wins such as DEKRA Claims and Expert Services International N.V..
Exact Online continues to show strong growth. The total number of Exact Online subscriptions grew by more than 40% to 12,500, leading to more than 30,000 administrations being accounted with Exact Online.
Exact announced on December 28, 2009 the appointment of Max Timmer as CFO per January 1, 2010. He will be nominated by the Supervisory Board at the General Meeting of Shareholders on April 22, 2010 for appointment as member of the Board of Managing Directors.
Major contract wins: Robeco, KLM Jetcenter, Gulf Cryo, Bugaboo International B.V., GCH Retail, Sanyo HQ Device Vietnam Co. Ltd., United Standard, United States Postal Services (USPS), AEGON companies, Meridian.

Outlook
Exact believes that the effects of the global economic downturn reached their bottom at the end of 2009, but expects that the global economy will only gradually recover in the next 24 months. In anticipation thereof and in line with the expected gradual improvement of the market conditions for business software solutions, we will continue to invest sensibly in key strategic areas driving profitable growth mainly in selected strategic market segments. These are international companies successfully addressed with Exact’s parenting strategy, the professional services sector globally and the low end SMB market in the Netherlands and Belgium with a focus on solutions based on Exact Online. However, our main focus will continue to be EBITDA and cash flow until an improvement of the current economic situation have materialized in structural revenue growth. In light of the continued uncertain economic and business climate, Exact does not provide a specific guidance for 2010

Financial Results
Key financial figures
(in € thousands) FY 2009 FY 2008 Change
License revenue 54,600 74,257 (26.5%)
Maintenance revenue 134,539 129,630 3.8%
Service revenue 43,376 57,086 (24.0%)
Total revenue 232,516 260,973 (10.9%)
Total operating expenses 1) 178,166 202,770 (12.1%)
EBITDA 54,350 58,203 (6.6%)
EBITDA margin (in %) 23.4% 22.3% 1.1 pts
EBIT 45,729 49,373 (7.4%)
EBIT margin (in %) 19.7% 18.9% 0.8 pts
Operating cash flow 49,751 47,127 5.6%
Net income after tax 33,841 36,825 (8.1%)
Net income margin (in %) 14.6% 14.1% 0.5 pts
Diluted EPS2) (in €) 1.47 1.54 (4.5%)
Diluted Cash EPS 2) (in €) 2.18 2.00 9.0%

1)Excluding amortization and depreciation
2)Based on average diluted number of shares outstanding (FY 2009: 22.816 million; FY 2008: 23.618 million)

Rajesh Patel, CEO Exact Holding N.V.:
“Although expected, revenue developments in 2009 have been broadly disappointing, while EBITDA and cash flows, defined as key objectives have been widely achieved. We prepared well and early for the global economic downturn and our execution to align the company’s cost structure to revenue demand have remained diligent. Most of these measures were executed already in 2008, and became effective in 2009. Our large installed customer base enables strong cash flows and cross-selling opportunities as reflected during the year.

Substantially reduced operating expenses in 2009 have allowed us to gradually invest in key strategic areas such as our brand, Exact Online, Longview and our parenting strategy, in anticipation of a gradual improvement in the economy in 2010 and onwards. These clear choices remain the areas in which we will continue to invest in 2010, albeit carefully. As an organization we remain strategically and financially healthy and based on our operational fitness and readiness, I am confident we will see good operational leverage when the economy rebounds.”

Revenue
The global economic downturn negatively impacted revenue across all regions, resulting in a decline of total revenue by 10.9% to € 232.5 million (FY 2008: € 261.0 million), caused by a decline in license and service revenue. Total organic revenue declined by 11.3% to € 230.0 million (FY 2008: € 259.3 million). This excludes a positive foreign exchange rate effect of € 0.5 million and a contribution from the acquisition of Orisoft Technology of € 2.0 million.

License revenue declined by 26.5% to € 54.6 million (FY 2008: € 74.3 million). Organic license revenue declined by 27.1% to € 53.9 million (FY 2008: € 74.0 million).

The license revenue decline has been mainly caused by substantially less new business throughout the year as companies continued to postpone new software investments. In addition new business sales cycles in 2009 were on average twice as long as in pre-crisis times.
With the exception of the Americas region, add-on license sales to existing customers showed less impact and remained robust throughout the year. This is reflected in add-on sales comprising more than 80% of total license revenue, confirming an early shift of focus from new site sales to the existing customer base.
Although the second and third quarter license revenue indicated a stabilization of the downwards trend, this trend did not continue in Q4. Nonetheless, in absolute numbers Q4 was still the strongest quarter of the year.
Maintenance revenue increased by 3.8% to € 134.5 million (FY 2008: € 129.6 million) as a result of both a CPI-based price increase per January 2009 and stable renewal rates despite an increase in bankruptcies. Organic maintenance revenue increased by 3.3% to € 133.8 million (FY 2008: € 129.5 million).

Service revenue declined by 24.0% to € 43.4 million (FY 2008: € 57.1 million). Significantly lower new business intake since Q4 2008 resulted in a decline of implementation services. Furthermore increased cost prudency of customers had a substantial impact on training revenues. Organic service revenue declined by 24.3% to € 42.3 million (FY 2008: € 55.8 million).

EBITDA and EBIT
An early alignment of the company’s cost structure to the market conditions in 2008 and continued cost and prudency programs, resulted in a reduction of total operating costs of € 24.8 million to € 186.8 million (FY 2008: € 211.6 million), representing a decline of 11.7% mainly driven by a decrease in personnel expenses. These cost savings compensated some 85% of the total revenue decline and mitigated a significant impact of the global economic downturn on profitability. As a result, the EBITDA margin increased to 23.4% (FY 2008: 22.3%) and EBITDA amounted to € 54.3 million (FY 2008: € 58.2 million), representing a decline of 6.6%. EBIT amounted to € 45.7 million (FY 2008: € 49.4 million) representing an EBIT margin of 19.7% (FY 2008: 18.9%).

The organic number of employees was further reduced in 2009 by 7% in addition to the 10% reduction in 2008. This has resulted in a decrease of organic personnel expenses of 13.7% compared to FY 2008. Organic marketing expenses were further reduced by 12.0% as a result of reduced sponsoring and new business marketing activities. Furthermore marketing focus has shifted from new business to existing customers within existing budgets. Ongoing cost prudency programs resulted in a decrease of other operating expenses including revenue related expenses by 9.4% or € 5.1 million.

One-time restructuring costs associated with the reduction of personnel amounted to € 1.3 million and one-time investments in the launch of the new brand identity amounted to € 1.4 million. Excluding these one-time costs totaling € 2.7 million EBITDA amounted to € 57.0 million (FY 2008: € 58.8 million) representing and EBITDA margin of 24.5% (FY 2008: 22.5%).

Corporate costs including research and development (R&D) costs for corporate product lines and Holding costs, excluding depreciation and amortization amounted to € 24.0 million (FY 2008: € 23.3 million). This includes € 1.4 million in personnel costs for employees transferred from regional to corporate level as result of the globalization from operations support functions such as HR.

Interest and Tax
The total financial income and expense decreased by € 1.1 million to € -0.3 million (FY 2008: € 0.8 million). This was mainly the result of significantly lower interest rates on cash deposits. The average tax rate decreased from 26.6% to 25.5%, mainly as a result of further utilization of available tax losses in Germany.
Balance Sheet and Cash Flow

The net cash position increased to € 48.9 million as per December 31, 2009 (December 31, 2008: € 44.7 million) and the balance sheet continued to be very strong and virtually debt free.

Despite the negative economic climate and the negative impact on payment behavior, the continued high focus on cash collection kept the average days sales outstanding almost stable at 63 (FY 2008: 62). The operating cash flow increased by 5.6% to € 49.8 million (FY 2008: € 47.1 million), representing a profit to cash conversion of 147% (FY 2008: 128%). Working capital showed a € 8.8 million improvement, primarily driven by lower trade receivables.

Net Income and EPS
Net income attributable to shareholders amounted to € 33.6 million (FY 2008: € 36.4 million), representing a decrease of 7.7% as a result of a lower operating income. Earnings per share (EPS) decreased by only 4.5% to € 1.47 (FY 2008: € 1.54), as a result of the lower number of average shares outstanding in 2009 compared to 2008. As a result of ongoing strong operating cash flows, cash EPS increased by 9.0% to € 2.18 (FY 2008: € 2.00)

Based on the continued strong cash flow and despite the negative economic climate, a final dividend payout of € 0.81 per share will be proposed at the General Meeting of Shareholders on April 22, 2010, in addition to the interim dividend of € 0.66 per share paid on August 7, 2009. This amounts to a total dividend for 2009 of € 1.47 per share, which is in line with the company’s dividend policy of 100% payout of the net result in any year in which it does not execute a material acquisition.

Operational Results in Regions
The results contribution in 2009 on a regional level together with some operational highlights can be found below. Corporate costs including the R&D costs for the corporate product lines and the Holding costs have not been included in the EBITDA of the regions (FY 2009: € 24.0 million, FY 2008: € 23.3 million).

Netherlands
The global economic crisis had a substantial impact on the Netherlands region in 2009. Decreasing investments by companies in new business software and longer decision cycles resulted in a revenue decline. In line with such a difficult economic situation the primary focus continued to be profitability, cash flow and engagement with existing customers and partners. The transformation from a divisional to a functional organization initiated in H2 2008 in combination with continued cost prudency has led to a further increase of the EBITDA margin to a record level of 50.8% (FY 2008: 43.9%).

(in € thousands) FY 2009 Change FY 2009
at constant currencies Change FY 2008
Total revenue 96,246 (10.0%) 96,246 (10.0%) 106,948
EBITDA 48,903 4.0% 48,903 4.0% 47,003
EBITDA margin (in %) 50.8% 6.9 pts. 50.8% 6.9 pts. 43.9%

Corporate costs are not included in EBITDA of the regions.

Financial and operational highlights FY 2009

Total revenue declined by 10.0% to € 96.2 million (FY 2008: € 106.9 million), driven by a decline in license and service revenue.
As a result of the continued weakness in new business intake and a strong focus on existing customers, more than 80% of the license revenue was generated from existing customers.
Maintenance revenue increased by 2.6% as a result of a CPI-based price increase per January 2009 and stable renewal rates despite an increase in bankruptcies.
The transformation from a divisional to a functional organization in 2008 in combination with continued cost prudency has led to a record EBITDA margin in the Netherlands region of 50.8% (FY 2008: 43.9%). As a result, the revenue decline in Exact’s home market could be more than offset by cost savings as a result from organizational optimization. Total EBITDA increased by 4.0% to € 48.9 million (FY 2008: € 47.0 million).
In line with a continued focus on the existing customer base, various customer engagement initiatives were launched and new services like the Exact Business Process Assessment (BPA) were introduced.
Exact Online continues to show strong growth in the Netherlands. The total number of Exact Online subscriptions grew by 40% to more than 11,000, leading to more than 28,000 administrations being accounted with Exact Online with new customers such as KLM Jetcenter, VakantieXpert and Yarden.
Exact Online was enriched with several new functionalities including a unique link to the Rabobank internet banking platform and support for Safari and Firefox browsers. Furthermore the pilot phase for Exact Online Payroll started in Q4.
To further improve Exact’s go-to-market model, a specialization of Exact’s business partners on certain segments or industries has been initiated. In line with this strategy, all sales and consulting activities of Exact Easy Access focusing on warehouse management and logistics have been sold to its business partner Nobel B.V. as per July 1, 2009.
Due to a lack of synergies materializing, All License was sold to a combination of management and private investors.
Kooijman software, acquired in June 2005 and specialized in solutions for the construction sector has been fully integrated into the Dutch operations and rebranded to Exact.
Traditional sponsorship activities have been further reduced and the marketing focus shifted to facilitating entrepreneurship programs like “Week van de Ondernemer”, “Big Improvement Day” and “Breaking Out”.
Important contract wins: Robeco, Brandweer Den Haag, Instituut voor het Midden- en Kleinbedrijf.

EMEA
The economic downturn had a significant impact on all countries within the EMEA region resulting in a revenue decline in license and services. Mature economies like Germany, UK, Spain and France were facing strong GDP declines and double-digit drops in export and investment activity. The whole of Eastern Europe, with the exception of Poland, went into recession and associated severe credit freeze.

Under these circumstances the investment climate for business software substantially worsened compared to prior years. Decision making processes and buying cycles became more complex and were on average twice as long as in pre-crisis times.

Measures to align the cost structure to the current economic conditions already taken in 2008 in combination with continued cost prudency and focus on profitability resulted in an increased EBITDA margin of 25.3% (FY 2008: 23.5%).

(in € thousands) FY 2009 Change FY 2009
at constant currencies Change FY 2008
Total revenue 56,959 (15.2%) 58,372 (13.1%) 67,193
EBITDA 14,430 (8.4%) 14,845 (5.8%) 15,758
EBITDA margin (in %) 25.3% 1.8 pts 25.4% 1.9 pts 23.5%

Corporate costs are not included in EBITDA of the regions.

Financial and operational highlights FY 2009

Total revenue at constant currencies declined by 13.1% to € 58.4 million (FY 2008: € 67.2 million) driven by a decline of license and service revenue.
Exact’s parenting strategy focusing on international companies remains the main license revenue driver with an increased revenue contribution from existing international customers. Especially the demand from larger international companies for Exact’s solutions as an alternative to tier 1 solutions has increased and led to a number of significant contract wins such as DEKRA Claims and Expert Services International N.V.
Maintenance revenue at constant currencies increased by 6.0% as a result of a CPI based price increase per January 2009 and stable renewal rates despite an increase in bankruptcies.
Measures taken in 2008 in combination with continued cost prudency have resulted in an increased EBITDA margin at constant currencies of 25.4% (FY 2008: 23.5%). Cost savings could largely offset the revenue decline leading to an EBITDA at constant currencies of € 14.8 million (FY 2008: € 15.8 million), representing a decline of 5.8%.
In line with a continued focus on the existing customer base, various customer engagement initiatives were launched and new services like the Exact Business Process Assessment (BPA) and additional support offerings were introduced.
The Middle East sub-region was realigned to enable further expansion and market initiatives have commenced in Saudi Arabia and Qatar.
In Belgium Exact Online continues to show strong growth. The total number of Exact Online subscriptions grew by more than 45% to approximately 1,400, leading to approximately 3,000 administrations being accounted with Exact Online.
Important contract wins: Bugaboo International B.V., Gulf Cryo, Mechel OAO, Colegio Oficial de Medicos de Navarra (MEDENA), Turkapital Holding (a Kuwait Finance House KSC sub)

Americas (excluding Longview)
As the region where the global economic crisis began, the Americas was most impacted by the economic downturn. New software investments continued to decline, particularly at the beginning of the year, along with a substantially weakened intake of add-on business from the existing customer base. There was a slight recovery in the second half. Although substantial cost savings as a result of early actions in 2008 and additional measures in H1 were more than offset by a substantial revenue decline, the EBITDA margin at constant currencies increased to 21.7% (FY 2008: 21.6%).

(in € thousands) FY 2009 Change FY 2009
at constant currencies Change FY 2008
Total revenue 52,107 (13.3%) 50,734 (15.6%) 60,095
EBITDA 10,809 (16.8%) 11,002 (15.3%) 12,992
EBITDA margin (in %) 20.7% (0.9 pts.) 21.7% 0.1 pts. 21.6%

Corporate costs are not included in EBITDA of the regions.

Financial and operational highlights FY 2009

Total revenue declined by 13.3% to € 52.1 million (FY 2008: € 60.1 million). Total revenue at constant currencies declined by 15.6% to € 50.7 million (FY 2008: € 60.1 million) driven by a decline in license and service revenue.
Despite the negative impact from a substantial decline in license revenue, maintenance revenue at constant currencies remained stable.
Early actions in 2008 and additional measures in H1 2009 to align the cost structure to the economic conditions resulted in substantial costs savings, which could largely compensate the revenue decline. As a result the EBITDA margin at constant currencies increased to 21.7% (FY 2008: 21.6%).
EBITDA at constant currencies amounted to € 11.0 million (FY 2008: € 13.0 million), representing a decline of 15.3%.
New product roadmaps introduced late 2008 with a strong focus on the corporate product lines Exact Globe and Exact Synergy were well received by existing customers and positively influenced renewal rates.
In line with a continued focus on the customer base, existing customer engagement initiatives were built out with a special focus on the 42 user groups in North America.
New services like the Exact Business Process Assessment (BPA) were successfully introduced, partly compensating the decline in service revenue as a result of significantly lower new logo sales.
Important contract wins: The Quigley Corporation, Formacoat LLC, United Standard, NAVAIR, USPS, Day Tool & Manufacturing, Inc.

APAC
The APAC region, which was affected last in the economic downturn, was as well substantially impacted by the global crisis as expected across all countries. Driven by the acquisition of Orisoft Technology, a key Asian HRM software company based in Malaysia, total revenue increased by 16.1%. Despite this revenue growth, EBITDA decreased primarily as a result of increased bad debt provisions.

(in € thousands) FY 2009 Change FY 2009
at constant currencies Change FY 2008
Total revenue 10,432 16.1% 10,234 13.9% 8,986
EBITDA 1,281 (14.8%) 1,278 (15.0%) 1,503
EBITDA margin (in %) 12.3% (4.4 pts.) 12.5% (4.2 pts.) 16.7%

Corporate costs are not included in EBITDA of the regions.

Financial and operational highlights FY 2009

Total revenue increased by 16.1% to € 10.4 million (FY 2008: € 9.0 million) driven by the acquisition of Orisoft Technology. Total revenue at constant currencies increased by 13.9% to € 10.2 million (FY 2008: € 9.0 million).
On February 27, 2009 Exact completed the acquisition of Orisoft Technology. Integration activities went according to plan and cross-selling opportunities were realized according to management expectations. In addition Orisoft closed its largest deal in history with leading fast food chain KFC Holdings (Malaysia) Bhd.
Orisoft contributed € 2.0 million to total revenue. Excluding this acquisition revenue declined by 8.8% to € 8.2 million at constant currencies (FY 2008: € 9.0 million).
Organic maintenance revenue increased by 4.4% as a result of license revenue growth in 2008, a CPI-based price increase per January 2009 and stable renewal rates despite an increase of bankruptcies.
Exact’s parenting strategy focusing on international companies remains the main license revenue driver with an increased revenue contribution from existing international customers.
Important contract wins: Bugaboo (Xiamen) Industrial Co. Ltd., GCH Retail, Sanyo HQ Device Vietnam Co. Ltd.

Longview Solutions
Mainly operating in North America, Longview Solutions was strongly impacted by the challenging economic conditions in that region. The traditional CPM market faced a significant slow-down as large multinationals were addressing the impacts of the economic downturn. This led to multiple postponements in high value sales cycles, which impacted license and associated service revenue. Over the last year, Longview has increasingly focused on its tax solution, resulting in a significant increase in demand. Longview tax solutions are typically of a lower average sales price compared to CPM orders and are sold as term license.

(in € thousands) FY 2009 Change FY 2009
at constant currencies Change FY 2008
Total revenue 16,772 (5.5%) 16,436 (7.4%) 17,751
EBITDA 2,910 (30.9%) 2,576 (38.8%) 4,210
EBITDA margin (in %) 17.3% (6.4 pts.) 15.7% (8.0 pts.) 23.7%

Corporate costs are not included in EBITDA of the regions.

Financial and operational highlights FY 2009

Total revenue declined by 5.5% to € 16.8 million (FY 2008: € 17.8 million). Total revenue at constant currencies declined by 7.4% to € 16.4 million (FY 2008: € 17.8 million) driven by a decline in license and service revenue.
License revenue during H2 significantly increased compared to H1 as result of the completion of several large orders in backlog.
Although expenses were tightly managed, EBITDA declined to € 2.9 million (FY 2008: € 4.2 million), representing an EBITDA margin of 17.3% (FY 2008: 23.7%). This is mainly the result of continued investments in Khalix 7, the new version of Longview Solutions’ CPM suite.
Pilot activities around Khalix 7 were successfully completed in H1 and the product was successfully launched in H2.
A number of Longview customers also extended their CPM footprint in the first half of the year, implementing additional business processes, preparing for IFRS readiness (Canada) and deploying Longview’s advanced dashboard reporting capabilities.
Major contract wins: AEGON companies, GrafTech, Gaz Metro, Meridian, Pfizer, TUI Travel PLC.

Exact. And it all comes together.
We started serving the entrepreneurial world with information technology in 1984. We have grown from a student start-up to a global solution provider and our entrepreneurial roots constantly remind us that adding value for our customers is what we are here for. With approximately 2,200 employees in 40 countries, we serve over 100,000 local and international companies in more than 125 countries and provide our business software solutions in more than 40 languages. We have been listed on the NYSE Euronext Amsterdam since June 1999 and our revenues amounted to € 232.5 million in 2009.

Serving entrepreneurial businesses is at the heart of what we do. We understand their mindsets, how they collaborate within their business community and the structure they need to achieve results. With this knowledge we provide software solutions that support every business activity and give real-time insight into the entire business. This gives our customers the freedom to successfully address challenges and opportunities, creating value for their customers and ultimately for themselves.

For further information about Exact visit www.exact.com.

For more information
Investor Relations
Jeroen Bruins Slot
Exact Holding N.V.
T +31 (0)15 7501408
M +31 (0)6 2666 3660
E ir@exact.com
W www.exact.com

Media Relations
Leoni Janssen
Edelman
T +31 20 3010980
M +31 6 24 60 3632
E leoni.janssen@edelman.com

Exact Holding N.V.
Poortweg 6
2612 PA DELFT
Zuid-Holland
Netherlands

T +31 15 2613714
F +31 15 2625461
W www.exact.com

UNAUDITED CONSOLIDATED FINANCIAL INFORMATION UNDER IFRS
UNAUDITED CONSOLIDATED FINANCIAL INFORMATION UNDER IFRS
Basis of preparation and accounting policies
Basis of preparation
The consolidated balance sheet, statement of income, cash flow statement and statement of changes in equity included in this press release do not include all the information and disclosures that will be included in the 2009 IFRS annual accounts.

Accounting policies
The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended December 31, 2009. The figures in this press release are based on IFRS standards and are unaudited.

Interim Financial Information
Consolidated balance sheet (unaudited) December 31, 2009 December 31, 2008
(in thousands of €)
ASSETS
Non-current assets
Intangible fixed assets 111,243 115,783
Property, plant and equipment 13,889 14,887
Deferred income tax assets 5,088 4,754
Long term receivables 2,250 0
Derivative financial instruments 0 266
Total non-current assets 132,470 135,690

Current assets
Non-current assets held for sale 327 327
Inventory 314 414
Trade receivables 42,005 49,799
Otherreceivables and prepaid expenses 6,220 7,587
Short-term investments 13,628 25,834
Cash and cash equivalents 35,287 18,910
Total current assets 97,781 102,871

Total assets 230,251 238,561

Consolidated balance sheet (unaudited) December 31, 2009 December 31, 2008
(in thousands of €)
EQUITY

Share capital 488 488
Capital surplus 64,758 64,750
Cumulative translation adjustment (4,791) (4,513)
Cash flow hedge reserve (1,629) (2,036)
Retained earnings 44,295 42,789
Net income 33,622 36,446
Shareholders’ equity 136,743 137,924
Minority interest 1,819 1,459
Total equity 138,562 139,383

LIABILITIES
Non-current liabilities
Earnout provisions and related liabilities 1,185 4,907
Provision for other liabilities and charges 1,752 1,958
Long-term loans 0 635
Deferred tax liabilities 6,150 5,870
Derivative financial instruments 172 1,087
Total non-current liabilities 9,259 14,457

Current liabilities
Deferred revenue 61,668 63,174
Accounts payable and other liabilities 3,823 5,328
Corporate income tax 1,338 297
Other taxes and social securities 6,313 5,940
Accrued liabilities 9,288 9,982
Total current liabilities 82,430 84,721

Total liabilities 91,689 99,178

Total equity and liabilities 230,251 238,561

Consolidated statement of income (unaudited)
(in thousands of €) 2009 2008

Licenses 54,600 74,257
Maintenance 134,539 129,630
Services 43,376 57,086
Total revenue 232,516 260,973

Revenue-related costs 16,656 18,700
Employee benefit expenses 117,757 135,698
Other operating expenses 32,122 35,158
Marketing and sales 11,632 13,214
Total operating expenses before depreciation and amortization 178,166 202,770

EBITDA* 54,350 58,203
Depreciation and amortization expense 8,621 8,830
Operating income (EBIT) 45,729 49,373

Finance income
Interest income and other financial income 1,348 2,905
Interest expenses and other financial expenses (1,659) (2,113)
Total finance income (311) 792

Income before taxes 45,417 50,165
Income tax expense (11,576) (13,340)
Net income after taxes 33,841 36,825

Attributable to:
Equity holders of Exact 33,622 36,446
Minority interest 219 379

* EBITDA = Earnings before interest, tax, amortization and depreciation

2009 2008
Average number of shares outstanding (in thousands) 22,816 23,618
Average number of shares outstanding diluted (in thousands) 22,816 23,618
Earnings per share (in €) 1.47 1.54
Diluted earnings per share (in €) 1.47 1.54

Consolidated Cash FlowStatement (unaudited)
2009 2008
(in thousands of €)
Net income 33,841 36,825
Amortization of intangibles and depreciation of property, plant and equipment 8,621 8,830
Other non-cash items 151 466
Increase/decrease in non current liabilities, excluding earnouts 55 (344)
Increase/decrease in deferred income tax assets (420) 1,690
Increase/decrease in deferred revenue (1,268) 3,616
Increase/decrease in current assets and current liabilities, (excluding income tax) 7,741 (1,347)
Increase/decrease in income taxes payable 1,030 (2,609)
Cash flow provided by operations 49,751 47,127

Cash flow used in investing activities
Acquisition of group companies, net of cash acquired (2,121) (863)
Proceeds from disinvestments in group companies 3,925 86
Capital expenditures on intangible assets (4,258) (2,785)
Capital expenditures on property, plant and equipment (4,418) (2,868)
Proceeds from disposal of property, plant and equipment 256 605
Earnout payments (4,249) (3,569)
Cash flow used in investing activities (10,865) (9,394)

Cash flow used in financing activities
Dividend paid (34,906) (36,529)
Repurchase of shares 0 (25,052)
Repayment long-term loans (35) (744)
Cash flow used in financing activities (34,941) (62,325)

Net increase / (decrease) in cash, cash equivalents 3,945 (24,592)
Opening balance cash and cash equivalents 44,744 69,031
Exchange rate differences 226 305
Closing balance cash and cash equivalents 48,915 44,744

Cash and cash equivalents include the following for the purpose of the cash flow statement:
December 31,2009 December 31,2008
Cash and cash equivalents 35,287 18,910
Short-term investments 13,628 25,834
48,915 44,744

Consolidated statement of changes in equity (unaudited)
(in thousands of €) Share capital Capital surplus Cash flow hedge reserve Cumulative translation adjustment Retained earnings Share-holders equity Minority interest Total equity

Balances as at January 1, 2008 488 64,750 (2,036) (4,513) 79,235 137,924 1,459 139,383
Settlement of earnout (48) (48) (48)
Cash flow hedges 407 407 407
Currency translation adjustment (278) (278) (278)
Total income and expense for the period recognized directly in equity 0 (48) 407 (278) 0 81 0 81
Net income 33,622 33,622 219 33,841
Total income and expense for the period 0 (48) 407 (278) 33,622 33,703 219 33,922
Dividend related to 2008 (19,847) (19,847) (19,847)
Interim dividend 2009 (15,059) (15,059) (15,059)
Movement minority interest related to acquisitions 0 141 141
Long-term incentive plan 56 (34) 22 22
Balances as at December 31, 2008 488 64,758 (1,629) (4,791) 77,917 136,743 1,819 138,562

Currency table (key exchange rates)
Average 2009 Average 2008
EUR / USD 1.39 1.47
EUR / GBP 0.89 0.79
EUR / MYR 4.92 4.90
EUR / PLN 4.35 3.53