Financial overview

(in million euros)	FY2008	FY2007	Rate of change (%)	Remarks
Sales	3,038	3,022	0.5	-The Company had its turnover increase by 0.5% in 2008; with initial growth during the first half of the year, replaced with a global economic downturn in the latter half of the year. The diversity of its market portfolio managed to weather the effects of the crisis, such as the very promising increase in turnover recorded in the Industry market which has compensated for the slowdown of the end of the year in the automotive industry.

Contracts
<Fluid Transfer Systems>
-The Company continued to develop high-tech heating pipes to transport urea within the framework of the SCR/Adblue system. Orders were taken for Renault in China.

-Within the fuel feed area, the Company delivered hoses to start production on the PL6 platform (BMW), in addition to the GM Delta project. New possibilities open up as its offer now meets the specifications of the main German clients, particularly in terms of permeability for hydrocarbons and resistance to biofuels. The Company plans to increase market share at BMW, Audi and Ford, in addition to targeting fuel tank designers who work with the German market (Kautex Textron and Inergy Automotive).

-Start of mass production for several of the following air intake applications:
>turbo outlet duct for the new Renault Kangoo and Opel Astra,
>exchanger outlet duct for the new Renault Megane and Fiat Mito,
>flow meter outlet duct for various Renault vehicles.

-The Company has been very active in the high pressure markets in 2008:
>introduction of <wrapped> pipes for air conditioning in the Renault Megane 3
>Start of air conditioning and braking circuit production for the Opel Insigna ( in Europe and China)


<Sealing Systems>
-The most important project run by the Precision Sealing Systems Activity involves providing approximately fifteen parts (pistons, O-rings, dynamic seals, housing seals, etc.) to equip the 8HP automatic gearbox for ZF. This gearbox will be assembled on all BMW vehicles (from series 3 to series 7), and Audi vehicles (from A8 to Q7).

-The Company was contracted to provide bearings and encoders on the worldwide GM Delta II platform (Opel Astra in Europe, Chevrolet Cobalt in the United States). The parts will be produced in Segre (France), Ensenada (Mexico) and Suzhou (China).

-The Company was contracted to equip DCT double clutch gearboxes, developed by Volkswagen, on 70 vehicles (the entire Golf 6 range, Passat, Audi A3 and A4).

R&D Expenditure

(in million Euros)	FY2008	FY2007	FY2006
Total	150	150	149

Product Developments
-The Company launched the production of the new <Look> type secured quick connectors, equipped with a mechanical good connection telltale.

-The Company developed IHX exchangers in air conditioning loops to improve their performance and fuel consumption.

-The Company developed bi-material shock absorbing feet in assisted braking and steering loops.

-The Company uses its original technology to develop deformable hollow parts made from insulating foam (Twinsheet). This solution was contracted by BMW for all the air ducts on 4 of their upcoming new series vehicles. Compared to the compact plastic parts, the foam is approximately 80% lighter and improves thermal and sound insulation performance.

(in million Euros)	FY2008	FY2007	FY2006
Total	122	99	137

Overseas Investment
-In Asia, at the end of 2008, a bearing seal and magnetic encoder production cell was set up on the Chinese site in Suzhou. The aim is to equip ABS and ESP systems for local vehicles.