Financial Overview

(in million euros)

	FY2010	FY2009	Rate of change (%)	Factors
Overall
Sales	6,104	4,558	33.9	-
Automotive division
Sales	4,793	3,605	33.0	1)

Factors
1)
-The Automotive division generated revenue of 4,793 million euro for 2010, outperforming the previous record year, 2007, by 21 million euro. This represents an increase of 1,194 million euro, or 33 %, from the year before.

Chassis Systems Product Group
-It still remains the largest product group, and increased its revenue 21 %, with the component business growing 23 % and the module business growing 21 %. Further contributions here came from the new module plants in Kaluga, Russia, and Fuzhou, China. By contrast, the module plants in Germany and Spain saw their revenue decrease as a consequence of one customer’s changeover to having its clients provide their own materials.

Structures Product Group
-This group increased its revenue 33 % from the year before. More customer calls for products, a positive effect from exchange rates, and the newly acquired pressing plant in Puebla, Mexico, contributed to this increase.

Engine and Exhaust Systems Product Group
-This group saw the largest percentage of growth in revenue, with a 65 % increase. Most of this increase is attributable to the revival of markets in North America and Europe.
 
Benteler Aluminium Systems
-The Automotive Structures unit acquired from Norsk Hydro ASA as of December 31, 2009, was integrated into Benteler Automotive as Benteler Aluminium Systems during the year. This unit produces aluminum components for the automotive industry, and likewise contributed toward the division’s revenue growth, with 258 million euro.

Acquisitions
-The acquisition of Norsk Hydro's Automotive Structures business to the Company has been finalized. Its largest operation is located in Raufoss, Norway, but the business also has activities in China, Czech Republic, Denmark, France, Germany, South Korea, Sweden and the United States. The unit's 1,200 employees are now part of Benteler. (From a press release on January 4, 2010)

Awards
-Ford announced that it is adding 13 new companies to its Aligned Business Framework (ABF), bringing the total to 90 members. The new ABF suppliers are: Akebono; Automotive Lighting; Benteler; Brembo; Federal Mogul; Gentex; GKN; Hayes Lemmerz; Key Safety Systems; Michelin; Ronal GmbH; Samvardhana Motherson Reflectec; Takata. Ford created ABF in 2005 to strengthen its collaboration with key suppliers. (From a Ford press release on April 23, 2010)

R&D Expenditure

(in million euros)

	FY2010	FY2009	FY2008
Overall	109.5	97.7	123.3

-The Company has about 1,000 employees in research and development, at 25 locations in 12 countries. Research and development expenditures in 2010 totaled 109.5 million euro, 12 % more than for the previous year.

Product Development

Waste Heat Recovery
-Using waste heat makes an important contribution toward efficiently reducing a car’s fuel consumption and CO2 emissions. In this connection, the German FederalMinistry of Education and Research is supporting two major projects by Benteler Automotive in thermoelectric recovery, for a total of 6.7 million euro. Other cooperating partners include BMW AG, the Fraunhofer Gesellschaft, and the University of Paderborn. In parallel, Benteler Automotive expanded its waste heat recovery portfolio by developing heat exchangers for thermodynamic processes.The division achieved a significant breakthrough in mechatronics with semi-active chassis systems. The first prototypes are under development.

Engine Downsizing Technology
-Significant development advances were achieved in 2010. Several advance development projects have already been put into action with clients. Based on Benteler’s core competence in producing sheet-steel manifolds, the concept of a sheet-metal, integrated manifold-turbocharger module (a “maniturbo”) was developed and implemented in a first series production project. The maniturbo has significant advantages over the cast-metal solutions that still dominate the market. The combination of sheet-steel manifolds with an integrated sheet-steel turbocharger housing offers advantages over cast turbochargers in terms of weight and heat management. The first series application is in the new Ford 2.0 L Ecoboost engine, which began selling in 2010.

Exhaust Gas Recirculation
-The introduction of the Euro 6 standard in 2014 will raise the requirements for the efficiency of exhaust gas recirculation systems. The portfolio was significantly expanded with the development of a new generation of plate coolers, which offer higher cooling efficiency and more robust resistance to dirt.

Capital Expenditure

(in million euros)

	FY2010	FY2009	FY2008
Overall	247	171	208
Automotive division	209	128	133

-Out of the total, 209 million euro, or 83 %, went for production facilities and equipment in the Automotive division. Important single projects included axle projects for BMW in Germany, Ford in the United States, and Chrysler in Canada. There were major investments to establish new plants in South Africa, Russia, and India during 2010.