REPORT OF THE BOARD OF MANAGEMENT   GENERAL Oranje-Nassau Groep B.V. achieved a net profit of € 202 million for 2007 compared to € 145 million in 2006. The higher net profit of the Group compared to 2006 is mainly attributable to the sale of the real estate portfolio. This sale was part of a strategic reorientation of the Group's activities, which are now completely focused on expanding its interests in the energy and private equity sectors. The result from the discontinued real estate activities until the date of sale, and from the sale itself, amounted to a contribution to the net profit of € 55 million. In 2006 the real estate sector's contribution to the net profit was € 8 million. The energy sector's contribution to the net profit totalled € 62 million, which was € 21 million lower than the record contribution of € 83 million in 2006. This decline is mainly attributable to not realising disinvestments on the one hand, and higher exploitation costs and higher depreciation charges on the other. The private equity sector realised a contribution to the net profit of € 85 million compared to € 54 million in 2006. € 43 million of this contribution was a book profit, resulting from an exchange of interests in associates within the Wendel group. Direct and indirect investments made by both sectors amounted to € 733 million, compared to € 116 million in 2006. Although the Brent oil price saw a substantial rise once again, the increase in euros was considerably less, because of the appreciation of the euro against the dollar. Measured in US dollars the average oil price rose 10%; from $ 65.75 per barrel in 2006 to $ 72.45 per barrel in 2007. However, the Brent oil price in euros rose by only 1%; from an average € 52.20 per barrel in 2006 to € 52.90 per barrel in 2007. Due to the higher oil prices and higher production, the sector realised record revenues of € 241 million in 2007. Total investments in the sector amounted to € 28 million. The Buzzard oil field was put into production at the beginning of the financial year. At the end of 2007 an agreement was reached to take over the Gabonese oil and gas assets of the US oil company Devon Energy. Completion of this transaction awaits approval by the Gabonese authorities which is expected in the course of this financial year. Another agreement was reached on the sale of half of the sector's interest in the Janice oil field. The private equity sector realised a total income of € 96 million compared to € 61 million in 2006. Unlike in 2006 there were no new acquisitions in 2007. The Group invested € 705 million in existing interests, partly realised by means of an exchange of the interest in Legron. RESULTS AND FINANCING The total operating profit of the energy and private equity sectors increased from € 227 million in 2006 to € 235 million in 2007. On balance, net financial charges were equal to those in 2006, despite less favourable currency exchange rates, and totalled € 2 million. The Group's cash flow in 2007 and the financial resources at year-end 2006 were more than enough to finance the total investments of € 733 million in 2007. The balance sheet total at year-end 2007 amounted to € 1,124 million as compared to € 1,102 million at year-end 2006. The disclosed net equity, after deduction of distributed dividends, increased from € 745 million to € 815 million at year-end 2007. OUTLOOK Both sectors aim at further profitable growth of their activities and expansion of their interests. For the energy sector we foresee the result in 2008 to be equal at least to that in 2007, provided there are no unforeseen circumstances. We expect the sale and purchase agreement on oil and gas assets reached in 2007 to be completed this year and that oil and gas prices will end up at a comparable level to 2007. Assuming there will be no material disposals, we expect the Group's consolidated profit to be lower for 2008. No major changes are foreseen in the composition of the staff.

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2007
(in thousands of euros)			2007			2006
NON-CURRENT ASSETS
Investment properties			260	117,312
Energy assets			165,308	196,632
Property, plant and equipment			180	863
Investments in associates (equity-method)			815,013	620,794
Investments at fair value through profit or loss			–	1,013
Non-current derivatives			972	1,212
Receivables from associates and fair value investments			3,378	6,047
Other receivables			376	504
Deferred tax assets			6,159			12,667
			991,646			957,044
CURRENT ASSETS
Inventories			2,754	1,503
Accounts receivable			30,053	21,690
Current derivatives			60	692
Cash and cash equivalents			99,435			121,051
				132,302				144,936
TOTAL ASSETS				1,123,948				1,101,980
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT			814,921			745,003
NON-CURRENT LIABILITIES
Deferred tax liability			5,124		22,506
Net pension liability			6,037		8,254
Other provisions			108,739		105,046
Borrowings			–		101,630
Non-current derivatives			29,081		11,864
Other			230			238
				149,211		249,538
CURRENT LIABILITIES
Tax payable			20,100		32,071
Borrowings			78,500		40,227
Current derivatives			23,705		1,988
Other payables and liabilities			32,928			33,153
				155,233		107,439
Liabilities directly associated with assets held for sale				4,583				–
TOTAL EQUITY AND LIABILITIES				1,123,948				1,101,980
CONSOLIDATED PROFIT & LOSS ACCOUNT FOR 2007
(in thousands of euros)			2007		2006
REVENUES
Oil and gas sales			240,912	228,886
Rental income from investment properties			43			46
				240,955		228,932
Cost of oil and gas production				–44,096				–35,191
				196,859				193,741
Share of profit of associates			51,655		44,467
Profit on disposal of associates			43,444		14,002
Profit on other disposals			1,348		20,425
Other income			2,601		5,579
Depreciation on energy assets			–51,050		–41,743
Other depreciation			–306			–298
				47,692				42,432
GROUP INCOME				244,551				236,173
General and administrative expenses				–9,363				–8,703
OPERATING PROFIT				235,188		227,470
Financial income			8,912			9,328
Financial charges			–10,784			–11,703
				–1,872				–2,375
PROFIT BEFORE TAXES				233,316			225,095
Taxes				–85,674				–88,292
NET PROFIT BEFORE INCOME FROM DISCONTINUED OPERATIONS				147,642		136,803
Discontinued operations				54,589				7,967
NET PROFIT				202,231		144,770