Dear Shareholders,

2009 confirmed the relevance of our strategic decisions

The Demos group has achieved very strong growth since its IPO in 2006. 2009 was a year of consolidation and confirmation of the group's ability to maintain its position as a global player in professional training, and a year in which the group's international leadership was reinforced.

We have used several fundamental strategic levers to strengthen the growth of our business, with an emphasis on diversifying by geographic areas and business line up that has enabled us to maintain sales levels in a more difficult climate. This trend has been driven mainly by deploying our presence and product offering at international level, continuously expanding our product range (creation of a range of "off-the-shelf" distance training programs within our e-learning department, integration of dedicated web tools) and developing outsourcing & associated services. We have achieved this while maintaining significant positions in the traditional training markets, such as catalogue products and tailored training programs.

A strengthened company well positioned to rebound

Despite difficulties in certain markets like Spain, which are still weighing on our results and where we have optimised our cost structure, we have managed to adapt our strategy locally and to capitalise on our diversification. Consolidated sales have remained stable, with an increasing share now coming from outside France (currently 40%). The group achieved a strong performance in the United States via its subsidiary, Hemsley Fraser, which more than doubled its sales in 2009. We were able to deploy our offering to major international clients, notably via our UK and US subsidiaries, and to confirm our position with international bodies such as the European Commission.

The efficiency of Demos's management and the solidity of its economic model are reflected in its resilient sales and positive EBIT. The company is continuing to prepare for new economic challenges and developments in its market. To this end, Demos boasts a large number of structural and technological assets with which to steer its development, supported by a rich and unique offering of products and services and the quality of its experts and project managers, essential resources for strengthening market share and winning major new international accounts.
 

I am convinced that the group's resilience and financial strength are key advantages that will enable it to face the future with dynamism and confidence.
 

In 2010, the Demos group will consolidate its strategy, while taking care to control its cost structure in order to maintain profitability. With the funds raised last July (14.5 million euros), Demos enjoys significant headroom and reinforced financial resources, which will enable it to support this strategy, pursue its international deployment and ensure its longevity.

I will conclude this message by extending my thanks to the men and women who support our development and contribute each day to the growth of Demos: employees, experts, clients, partners and shareholders.

Jean Wemaëre
CEO