Recent Years

Business Overview

-After difficult times as those prevailing in 2009, when the Company saw orders fall by up to 50 per cent, the Company is expecting global sales to increase by 24 per cent in 2010 to 3.2 billion euros, with strong growth in all product areas. Sales of closure systems and motors are expected to go up by 30 per cent, while door systems and seat adjusters will increase by up to 50 per cent.

-The Company will be expanding the sites in Pune (India) and in Tuscaloosa (USA) because numerous new orders in the coming years will require expansions to its production plants and facilities.

-In 2010, the Company will be investing a total of 200 million euros in land and buildings and in expanding its technological expertise. This represents around 6 per cent of the group's sales revenue.

Contracts

-In 2009, the Company supplies the new Mercedes-Benz E-Class with door systems, seat components, and cooling fan modules. In addition, the T-Model will utilize an electric liftgate from the Company. The spindle drive is already offered as an option for the Mercedes GLK as well as the T-Model of Mercedes' C-Class. (From a press release on April 8, 2009)

-In 2009, the Company announced that it supplies a lightweight door module to Porsche. It will see first-time use in the Panamera. Besides window regulator, loudspeakers, electronics, wiring harness and sealings, window frame, glass, and covers are incorporated into a system unit. Additionally, a power driven sunblind is also integrated into the rear door module. (From a press release in September 2009)

-In 2010, Geely Holding Group bestowed the "Excellent Supplier Award" on Brose Wuhan Automotive Systems Co., Ltd in Hubei Province, China. The facility has been supplying window regulators for Geely's FE-1 and FE-2 since 2009. (From a press release on February 12, 2010)

-In 2010, Shanghai Brose Electric Motors Co., Ltd (SBM) in China equips Citroen's Elysee, C-Quatre, C-Triomphe, C2 and C5 models as well as the Peugeot models 206, 207, 307 and 408 with electric drives. DPCA produces these vehicles at its plants in Wuhan, Hubei Province. (From a press release on February 12, 2010)

-In 2010, SBA supplies Volkswagen's plant in Shanghai with door systems and seat adjusters for Passat, Polo, Touran, Octavia and Tiguan models. SBA is a joint venture between Brose and Shanghai SIIC Transportation Electric Co., Ltd. (STEC). (From a press release on February 12, 2010)

-In 2010, the Company supplies window regulators, seat and headrest adjusters, liftgate latches, drive train actuators, cooling fan modules and HVAC blowers for the new BMW 5 Series. (From a press release on March 26, 2010)

R&D History

Year	Innovation
1928	Manual window regulator
1950	Mechanical door latch
1963	Power window regulator
1979	Power seat Adjuster
1983	Electronic memory system for seat position
1986	Electronically-controlled window regulator with anti-trap technology
1987	First modular system
1991	Door system with wet/dry side separation
1993	Active manual seat height adjuster
1997	System latch
2000	Seat length adjuster with slide-integrated gear
2001	Laser technology for rails and backframes
2002	Door system with integrated door frame
2002	Lumbar support with comfort mat and massage function
2004	Power rear bench
2005	Modular liftgate with integrated drive
2005	System kit for recliners
2006	Door system with highly integrated plastic carrier
2007	Drive units for side doors
2008	Lightweight door system
2008	Rear seat structure
2008	Standardized steering motors
2009	Liftgate with plastic functional carrier Variostop infinite door check
2009	Lightweight seat
2009	Power-related motors from 9 to 25 Watts System for controlling the supply of cooling air - Airgate® Steering wheel adjuster

Product Development

-In 2009, the Company developed a modular-based latch system for side-doors, which can achieve weight savings of approx. one kilogram in a four-door car and roughly 60% less installation space. It requires shorter unlocking times of less than 25 milliseconds, compared to the latches currently available that require 40 milliseconds. (From a press release on January 16, 2009)

Joint Research Project

-In Nov. 2009, the Company has embarked on a joint research project with the Coburg Automotive Technology Transfer Center which belongs to Coburg University of Applied Sciences in Germany. Through this collaboration, the company will profit from the university's expertise in the latest methods of chemical residue analysis. (From a press release on November 5, 2009)

Capital Expenditures

(in million euros)

	FY2010 (Forecast)	FY2009	FY2008	FY2007
Overall	200	146	159	113

Investment outside Germany

<China>
-In 2009, Shanghai Brose Automotive (SBA) opened a new production facility in Shanghai, China, with an investment of around 6 million euros. SBA currently manufactures window regulators, seat systems and door systems for such customers as Shanghai Volkswagen, Changan Ford Motor Company and Shanghai General Motors. With the expansion of its manufacturing capacity at the new facility, the company is now ready for the additional production of complete seat structures and cooler/fan modules. SBA is a joint venture between Brose and Shanghai SIIC Transportation Electric Co., Ltd. (STEC). (From a press release on November 26, 2009)

<Thailand>
-In 2009, Delloyd Ventures Berhad, an automotive components manufacturer in Malaysia and the Company will set up a joint venture to produce window regulators and door systems. The joint venture - Brose Delloyd Automotive Co., Ltd. - will be located in Rayong, Thailand. Brose has a 60 per cent equity holding; the remaining 40 per cent of the capital is held by Delloyd. The new company will start operating early 2010 and the production is poised to kick off in February 2011. There are already initial orders from leading automotive manufacturers whose plants are located in Southeast Asia. (From a press release on December 8, 2009)

<India>
-In 2010, the Company is set to establish a plant in Pune by the late summer of 2010. Initially, the new production facility will produce window regulators. International automotive manufactures have already awarded contracts and series production is scheduled to start in 2011. Production will be extended to other products in the next few years. The goal is to serve both export business and the Indian automotive market from the new factory in Pune. Moreover, the plan is to cover the entire value chain in India, from development to procurement of components right through to final product assembly. (From a press release in January 2010)