Dear shareholders,

 

As in years past, we will endeavor to present a faithful and complete representation summarizing the activity of the Group over the year. To be perfectly honest in this letter of introduction, let me start by saying that we will clearly remember this year as one of the most challenging in the long history of the Group.

 

Indeed, the group faced a crisis in financing that mobilized all of our forces during the core months of the year.

This crisis impacted the group due to the downturn in our financial results in combination with the Eider acquisition in June of 2008 which increased our cash requirements. This crisis then met with the severity of the banking crisis of September 2008, coincidentally at the same time as our own year-end closing of the accounts, which could have cost us dearly.

 

We implemented a number of fast and efficient measures, which in particular included:

-          An intensification of corrective measures in terms of operating margins, expenditure and working capital needs,

-          A bank negotiation initiative for all of our loans during a very tense period in dealing with the banks, as well as for the banks themselves. 

-          The sell off of assets, namely three trademarks in South Korea. 

-          And finally, an increase in equity through a successful capital increase of ten million euros, with the symbolic and prestigious addition of the Caisse des Dépôts to our capital shareholders.

 

All of these operations were made possible by our in-house teams who, for the large majority, were extremely efficient, and by our board of directors, who fully adopted all strategic decisions.

 

Group fundamentals have now been successfully repositioned with a strengthening of organization and objectives. All of the Group teams, in all of the divisions and internationally are mobilized to validate this turnaround and to make a comeback in growth.

 

Coming through a crisis generally makes us stronger. I believe this is true in our case, as we will aspire to prove to you in the coming months and years.

 

 

Philippe Joffard-Lafuma