Financial Overview

(in CHF million)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	1,682.4	1,677.5	0.3	1)
EBITDA	104.2	107.2	(2.8)	-

Factors
1) Overall
-The Company's sales in local currencies rose 15% during the 2011 business year, considerably more than worldwide automobile production, due to the high production volume and substantial new customer orders.

-Sales in local currencies increased strongly in all regions, particularly strong in North America and Asia despite, setbacks due to natural disasters in Japan, USA and Thailand.

Restructuring

-Rieter Holding Ltd. announced a split of the Group by separating the Automotive Systems and Textile Systems divisions into independent listed companies. The name of the new Automotive Systems division will be Autoneum Holding Ltd. Rieter Holding Ltd. will continue the existing business of Rieter's Textile Systems division. (From a press release on April 13, 2011)

Cost management policy

-Due to currency turbulence and the natural disasters in Japan, Thailand, and the USA, the profitability improvement plan was not yet fully implemented. Significant progress was however made in reducing employee and other operating expenses. A strict cost management, an increase in productivity as well as a shift of production capacities to low-cost locations have considerably contributed to these improvements. Nevertheless, the still-high raw-material prices could not be passed on in full to customers. The Company continues to focus intensively on improving productivity through its Operational Excellence initiative at all locations, particularly in Europe.

R&D Expenditure

(in CHF million)

	FY2011	FY2010	FY2009
Overall	58	66	74

-The focus in 2011 was the development of acoustic solutions, underbody components and carpets for new models and customer specific requests from automobile manufactures in Europe, America and Asia.

R&D Structure

-The Company has about 400 R&D employees group-wide.

Switzerland	Winterthur (HQ)	-Acoustics Center -Research and Technology Center
	Sevelen	-Development Center
France	Aubergenville	-Acoustics Center -Development Center
Germany	Rossdorf-Gundernhausen	-Acoustics Center
Italy	Desio	-Acoustics Center for Trucks -Development Center for Truck
	Leini	-Development Center
	Santhia	-Acoustics Center
USA	Fmarmington Hills, Michigan	-Acoustics Center -Development Center
	Chicago Heights, Illinois	-Development Center
Brazil	Sao Bernardo do Campo	-Acoustics Center -Development Center
China	Shanghai	-Acoustics Center -Development Center
Japan	Kita-ku, Tokyo (Nittoku)	-Acoustics Center
	Shizuoka (Nittoku)	-Acoustics Center

 

Product development

Rieter Hybrid Acoustics
-This product offers weight reductions of up to 50% compared with a conventional products for engine bay rear bulkhead insulation.

Triform Pattern
-New pattern with 15-20% less weight compared to conventional embossing patterns.

Capital Expenditure

(in CHF million)

	FY2011	FY2010	FY2009
Overall	75.3	72.4	56.2

Investments Outside Switzerland
<China>
-The Company opened new plant in Shenyang, Liaoning Province, China to supply heat shields and acoustic insulation components. The company is now present in the Chinese market with five production plants and a development center.

<Czech Republic>
-In Bor, Czech Republic, the Company installed production capacities in the first half-year of 2011. Production will start from fall in 2011.

Investments in Switzerland

-In Sevelen, the Company established a production plant for lightweight underfloor systems employing the new Rieter Ultra Silent (RUS) fiber technology.