At the end of September 2008 we issued an informational memo to all regarding GravoTech Group which outlined the reorganization underway in several countries in order to adjust the group structure in accordance to the worldwide economic situation and also to streamline and implement synergies of our brands. These reorganizations are now complete and have enabled the Group to experience the following:
Protect operating results and maintain a level above 10% for the year 2009
Reduce the need for working capital and have enough available cash necessary in order to face a strong global economic crisis (including the reduction of inventory amounting to more than 5 million Euros in 6 months)
Continue to accelerate our investments in R&D in order to reduce development time and increase the new products time to market.
Streamline our production and supply chain group with 3 platforms (America - Europe - Asia)
With the streamlined organization implemented in 2008, the group was able to achieve the majority of its plans.
We must now commit ourselves to achieving the following objectives during 2009, which are:
Find organic growth in an economic environment which is very difficult
Accelerate product development, including new technologies, during a time where others might be tempted to not to as a result of the declining economy
Include the full development of Vision Numeric and its products through the sales network of the group
Increase the effectiveness of our marketing tools
Continue to improve overall service levels to customers
Expand "drop shipment" in Europe, which requires investment in a new building on the site of the La Chapelle Saint-Luc (Aube - France) currently under construction (available October 2009)
Continue to develop geographically by creating subsidiaries in new countries (Russia and Korea)
Strengthen partnerships with our suppliers and customers
Making certain strategic acquisitions for the group with the aim of completing a minimum of 2 acquisitions during the year 2009, while retaining the sense of profitability and management of cash, which is our policy.
During this very difficult worldwide economic time, our group relies on its strong fundamentals to continue its development and enhance its range by maintaining R&D expenditure and exploring every opportunity for acquisitions in our « core business ».
Chairman and CEO
Executive Senior Vice-President and
General Manager GravoTech Group