Financial Overview

(in millions Euros)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	5,860	5,402	8.5	-
Operating income	27	73	(63.0)	-
Sales by division
Lighting	1,808	1,586	14.0	1)
Engine Control	957	967	(1.0)	2)
Suspension System	588	583	0.9	3)
Shock Absorbers	408	394	3.6	4)
Electronic Systems	722	623	15.9	5)
Exhaust Systems	696	614	13.4	6)
Plastic Components and Modules	525	499	5.2	7)

Factors
1)
Lighting
-Revenues totaled 1,808 million euro in 2011, an increase of approximately 14% over the prior year. The growth was primarily attributable to strong demand in the German market, in addition to performance in the NAFTA region, Brazil and Russia.

2)
Engine Control
-Revenues for 2011 totaled 957 million euro, substantially unchanged over the prior year, with an increase in volumes for Gasoline Direct Injection applications for the VW Group in Europe, offset by declines in both Brazil and the United States.

3)
Suspension Systems
-Revenues were 588 million euro for 2011, in line with the previous year. The effects of significant growth in the LCV market in Europe and positive performance in Brazil were offset by volumes declines in Italy (FGA with the exception of Alfa Romeo) and Poland (FGA and Ford).

4)
Shock Absorbers
-The business line recorded revenues of 408 million euro for 2011, a 3% increase over the previous year driven primarily by performance in Brazil and the United States.

5)
Electronic Systems
-Revenues totaled 722 million euro for the year, a 16% increase over the prior year attributable, in particular, to market growth in China (instrument clusters) and Europe (telematics and computer bodies), as well as new activity with Fiat/Chrysler (HFM module) and PSA (ATB, eCall and new RT6 radioNav).

6)
Exhaust Systems
-Revenues totaled 696 million euro for 2011, a 13% increase over the previous year, with positive contributions from the LCV markets in Italy and Spain, as well as strong performance in South America and, in the first half, also in Poland.

7)
Plastic Components and Modules
-Revenues for the Plastic Components and Modules business line totaled 525 million euro, substantially in line with the previous year. In both Poland and Italy, a general contraction in passenger car sales was offset by higher volumes for the LCV segment.

Contracts

Lighting
-Major new orders included headlights for Mercedes Benz and BMW, headlights and tail lights for Hyundai/Kia and rear light units for Dodge.

Engine Control
-Major new orders included the 635 Dual Clutch Transmission for Chrysler, a mechatronic transmission for PSA and a drive-by-wire throttle for VW in China.

Suspension Systems
-New orders included supply of the entire suspension system for production of the Fiat Ducato by Chrysler in Mexico, which represents a major opportunity for the business line to expand into the NAFTA market. Other new orders related to Fiat in Serbia, Opel and BMW in Germany, and Peugeot in Brazil.

Shock Absorbers
-In 2011, the business line also began production of shock absorbers in Brazil for various models of Fiat, GM and Renault.

Electronic Systems
-Innovation activities included a new infotainment system for BMW. Major new orders included:
1) for Body Electronics: ECU-LEDs for BMW in Spain, a PCB control unit for Audi, the Fine X for Philips and other OEM customers, the L7 body for Fiat in Slovakia and the Compact United States Wide for Fiat/GAC in China
2) for Instrument Clusters: Fiat Group and Haima in China, the Fiat 500 electric in Mexico, and production for customers in France and Italy
3) for Infotainment and Telematics: Ecotax telematic unit for freeway operators in Italy and the new generation eCall for PSA in China

Exhaust Systems
-Major new orders included a new LCV project for Hyundai in Brazil and development of front tubing for Euro 6 engines.

Plastic Components and Modules
-New order activity included bumpers and interiors for a new Fiat passenger car to be produced in Serbia.

Business Partnership

-The Company and U.S.-based Wind River Systems, Inc. announced a technological collaboration to create GENIVI-compliant in-vehicle infotainment (IVI) system. GENIVI alliance is a non-profit industry association whose mission is to drive the board adoption of an In-Vehicle Infotainment (IVI) open source development platform. The solution will first appear as next-generation entry and mid level IVI systems for BMW Group vehicles. Wind River, a wholly owned subsidiary of Intel Corporation, is a supplier of embedded and mobile software. (From a press release on January 26, 2011)

Awards

-The Company's Automotive Lighting division has received "Special Award Innovation" from Daimler for developing all-LED headlamp with adaptive light functions. The company is supplying the headlamp for new Mercedes-Benz CLS. (From a press release on May 16, 2011)

R&D Expenditures

(in millions Euros)

	FY2011	FY2010	FY2009
Overall	309	292	245

Product Developments

Lighting
-Innovation projects included a new 12-volt Xenon bulb (with integrated electronics), produced in cooperation with Philips, and the Bihalogen Projection Module.

Suspension Systems
-Research and innovation activities focused on high-resistance metal (steel and iron) and alloy solutions (carbon steel) with particular emphasis on lowering CO2 emissions levels for future models.

Shock Absorbers
-Innovation activities focused on regenerative shock absorbers and weight reduction through the use of alternative materials.

Electronic Systems
-In Dec. 2011, the Company announced that it has presented the first open-source platform for IVI (In-Vehicle Infotainment) devices. The platform is equipped with software developed and certified according to GENIVI Alliance compliance specification. GENIVI alliance is a non-profit industry association whose main goal is to guide the widespread adoption of an open-source platform for IVI devices. The platform enables functions such as connectivity to consumer electronics devices, display of Internet contents, wireless connections (WiFi, 3G and Bluetooth), playing of audio/video, and installation and updating of new apps. Mass production is scheduled to start in 2013. (From a press release on December 22, 2011)

Exhaust Systems
-On the innovation front, the business line continued its focus on reductions in CO2 emissions (through lighter systems and exhaust heat recovery solutions) and noise (active noise control systems), in addition to further development of the Selective Catalytic Reduction system for reduction of NOx emissions.

Capital Expenditure

(in millions Euros)

	FY2011	FY2010	FY2009
Overall	487	383	356