Arnaud Lagardère editorial

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The Group has yet again demonstrated its resilience and energy in 2009 despite a difficult economic context.

My fellow directors and I, with the support of all Lagardère Group employees, were able to maintain and consolidate all positions - some of which were even strengthened. Our Books division, Lagardère Publishing, recorded some of its finest ever performances.

Our recurring earnings before interest and tax, excluding Lagardère Active which was hit by the fall in advertising investments, increased beyond the target we had set at the beginning of 2009. We also managed to keep our consolidated net income (excluding EADS) at a respectable level with a decrease of less than 10%.

We ended the year with significantly lower financial debt, reflecting excellent cash management. In real terms, we cut our debt-to-equity ratio by nearly 15 points in 2009.

The improvement in the structure of our balance sheet and the protection of our assets has enabled us to offer a stable dividend.

Such results have not come about by chance. I have always sought to protect our fundamentals, and consequently we were ready to tackle a particularly hostile economic climate. Formative milestones include: the application of a meticulous, dynamic asset management strategy; the diversification of our business models; and the constant adaptation of our organisation.

To move forward in the uncertain economic environment of 2010 - particularly in terms of advertising investment - we will remain focused on these milestones because they will help us further our development. We are ready to seize any opportunities that may arise, especially in the Sport and Books sectors. In the Books sector, penetration of the digital market and the rebalancing of power in favour of publishers, offer bright prospects for growth in the medium term. Our leading positions in the main language segments support this viewpoint.

I know that we will approach these future challenges with the determination, passion and confidence that have defined us from the outset. Our diversity and the talent and professionalism of those who work for our Group are our pride and most treasured assets.

To you, shareholders, I offer my sincere thanks for your trust and support in the Group.

Arnaud Lagardère