Investors Overview

Letter to Shareholders 2009

Volatile Economy
The downward spiral that the global economy slipped into during 2008 is retreating.  I believe that these disastrous circumstances produced unprecedented global action, and these steps were essential for the financial system to avoid a complete breakdown. But these expansive actions, while necessary, will almost certainly bring on new challenges, including the possibility of inflation.  Nevertheless, while it may take longer than we would like, we are confident the marketplace will ultimately recognize and reflect the tremendous value and formidable strength of the US capital markets.

We have built a foundation that is ready and capable to not only handle this economic storm but actually excel in it.  I think this environment presents perhaps more tremendous opportunities than any other period of our lifetime.  From these depressed levels, stocks along with other platforms of value will almost certainly deliver generous returns in the years ahead.

We should never forget that our country has faced far worse trials in the past; recessions, inflation, deflation, stagflation and a Great Depression, and every time we have overcome them.

When I look into the next several years, I see Diversified Global Holdings continuing to grow and lead the nation with each of its eleven divisions.  I am confident this growth will lead to an even stronger balance sheet and an asset base many times larger than we have today. 

I also see our company continuing as an industry leader, utilizing innovation and technology, and leveraged by a work force and asset base second to none.  It is a very exciting and bright future and the upside for our shareholders is equally exciting.  It’s all just a matter of strategy and execution and we continue to prove our determination and capabilities each and every day.

Our People
Without great people, value cannot be created.  We believe our approach to motivating employees is very different from that of most other companies.  Talk to our employees and I believe you will sense genuine pride and enthusiasm in their voice when they speak about the company.  In addition, our employees understand the enormous value that our divisions and subsidiaries play in future globalization.

You will also find that DGH employees are distinctive in other ways as well.  Their enthusiasm and willingness to learn create vitality and optimism at Diversified Global Holdings, important ingredients of our unique culture.  Moreover, you will find great camaraderie between our younger employees and our veteran employees.  It is the teamwork, mentoring, and collaboration between the experienced professionals and the youthful newcomers that contribute to the energy and can-do attitude of Diversified Global Holdings.

These attributes, along with the addition of a new attractive corporate headquarters, low levels of bureaucracy and a well-crafted and well-executed corporate strategy, have combined to create a corporate culture of success and innovation.

This has prompted extremely positive outside feedback from all who know and work with us.  I hope someday you will visit our headquarters in Orlando.  We would be happy to show you around and expect you would leave feeling the same pride in our company and employees that we do.

Plan to succeed
In 2006, we developed a growth through acquisitions strategy and in 2007, we coordinated our strategy in conjunction with two events; first, the upcoming wave of depressed valuations and second, the bounce back of the US capital markets.  Then in 2008 we implemented this strategy and so far we are pleased to say that our strategies have worked flawlessly.  Success doesn’t happen overnight and it certainly won’t happen without commitment, but most importantly it will not happen without foresight and the ability plan for success.

We have assembled a dedicated and talented group of industry professionals who have repeatedly shown they are a step ahead of our competitors and we have built the industry’s best growth through acquisitions strategy.

Our Drivers for Growth will continue to:
     1. Embrace opportunities in new markets
     2. Refocus customer relationships through technology and innovation
     3. Adopt a principle-based approach to regulatory compliance
     4. Address risk in the context of an enterprise risk management framework
     5. Capture assets in the retirement market

2009 Acquisitions
In the last quarter of 2009, we acquired a total of 7 companies.  This would be a remarkable achievement in any economy, but we believe it was particularly impressive in an economy that steadily worsened in 2008 and throughout the first half of 2009.  We have announced several more possible acquisitions in the first quarter of 2010, and we continue to apply our successful business strategies to maintain our sustainable competitive advantage.

Looking to the Future
Globalization will increasingly change our world. Only a few large firms will be able to grow quickly without embracing new markets across the globe.  Our latest studies show moves into new markets as a top driver of profits over the next three to five years.

How different will the Global Marketplace look in 2010 and beyond?
     1. It will be more global and local.
     2. Technology will be the centerpiece of a customer-focused strategy.
     3. Compliance costs will increase.
     4. ERM will be the standard framework.
     5. Goods and Services will be focused on retirees drawing down assets in the face of uncertainty.

As we look to the future, we must strive to sustain growth in a world of fast-changing threats and opportunities.  We will need to embrace consolidation and seek out opportunities in new markets, tailor cutting-edge technology and innovative practices to deliver a unique customer focused experience, adapt an enterprise-wide approach to risk management, employ leading practices when addressing regulatory compliance and focus on meeting the needs of retirees.  To maintain a competitive advantage we will continue to place emphasis on strategic acquisitions, cross bordering, off-shoring, supply chain opportunities and emerging growth in BRIC countries.  

Best Regards,

Richard Lloyd
Chief Executive Officer