GravoTech Group Informational Note
(Trade Names: Gravograph - Technifor - Pro-Pen - Vision Numeric)
Status at the end of the 1st semester 2009
As previously expressed in our March 2009 informational note, 2009 is a difficult year in
terms of the global economy. The Group’s 2nd quarter 2009 results are similar with the
1st quarter 2009 results. The June 30, 2009 1st semester sales decreased less than
25% compared to June 30, 2008.
Never in the history of the Group have we experienced such a decline. However, the
group has outperformed our global competitors which for some experienced year over
year revenue decreases between 30% and 50%.
Despite the global economy, we continued our restructuring plan initially implemented in
January 2008:
•
The transfer of production from Miribel (Ain - France) to La Chapelle Saint Luc
(Aube - France) was successfully completed in late June 2009,
•
Similarly, the merge of our North American companies: Gravograph-New Hermes,
Inc., Technifor, Inc. and Vision Numeric Inc. was completed on 1 July 2009 and the
US entities were merged into GravoTech, Inc., in Duluth (Georgia - USA).
Going forward, we will continue our geographic international development which will
include Asia, South America and Central and Eastern Europe. For example, in June
2009, we setup a new Korean subsidiary and successfully achieved our first equipment
sale.
The Group is continuously reviewing new strategic alliances and potential acquisitions.
At the end of June, the new building extension in La Chapelle Saint-Luc (Aube - France)
was completed which will enable us to improve the organization and workflow of the
machine assembly area and efficiently store consumable products. This is scheduled to
be completed by the end of August 2009.
In addition, under the three-year plan launched in January 2008, we will be able to take
a final decision regarding the opening of our new office site in Lyon (France) by the end
October 2009. The expected move in date is the Summer of 2010.
Our R & D investment continues at a steady pace, allowing us to launch new products
monthly.
Our forecast for the second half of 2009 shows a slight increase over the 1st half, this
will allow us to prepare our 2010 budget with a little more confidence, and especially
since the major restructuring is now behind us and of course, we continue to have the
full support of our shareholders and bankers.
Our three platforms of sourcing - assembly - distribution of La Chapelle Saint-Luc (Aube
- France), Atlanta (Georgia - USA) and Shanghai (Minhang - China) are now fully
operational, our sales structures in the 23 countries in which we operate via local
companies were also restructured and are now 100% operational. Due to the continued
high investment in R&D and the continued focus on market development, GravoTech
Group is well positioned to benefit from an expected global economic recovery.
Sincerely
GERARD GUYARD
Chairman and CEO
GravoTech Group
GERARD GUERIN
Executive Senior Vice-President and
General Manager GravoTech Group