Montupet S.A. Business Report FY ended Dec. 2014

Financial Overview

(in million EUR)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013 *	Rate of Change (%)	Factors
Overall
Sales	451.8	420.7	7.4	-
Operating Income	57.6	43.4	30.0	-Operating income was boosted by the combined effect of an increasingly favourable geographical production mix and improvements in productivity across all sites.

* 2013 figures, as published, have been restated accordingly to IAS 8 (Correction of Prior Period Accounting Errors).

Contracts

-The Company announced the signature of two major contracts with Daimler. These contracts concern the design and production of cylinder heads which will be produced at the Group's Bulgarian site. Already working for Audi, BMW and Porsche, these contracts confirm the Company's growing presence as supplier to Germany's car manufacturers who will account for 20% of the Group's turnover within the next five years. (From a press release on January 7, 2014)

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	8.3	12.0	11.1

Product Development

-At GM, while the cylinder heads of the SGE (Small Gasoline Engine) family are in the startup and ramp-up stages, the Company is also positioned on the CSS (Cylinder Set Strategy) family that will succeed it as well as an intermediate family and proposes a process adapted to these new architectures.

-A significant technical assistance effort has been made for the Indian joint venture's factory in Urse (India) aimed particularly at improving the quality of cylinder heads for Ford and Mahindra on the Indian market. The development of a cylinder head for Ford has been completed and its transfer to the JV's new plant in Dewas (India) is being prepared.

Outlook

-The budget for the Technical Department in 2015 amounts to EUR 13 million.

Capital Expenditure

-Tangible investments increased to EUR 47.7 million in 2014.

ments initiated in 2013)

-New production capacities to start up new products:

In Torreon (Mexico), for the start of the General Motors SGE cylinder heads
In Belfast (United Kingdom), for the startup of the new Panther cylinder head

-The redevelopment, conversion and production capacity increase to start up the following:

In Ruse (Bulgaria), the new Volvo VED4 cylinder head with in addition an extension to the building
In Chateauroux (France), the new Renault R9 cylinder head reference and the new Porsche structure part
In Laigneville (France), the new BMW N63 and Ford Puma T6 cylinder heads
In Zaragoza (Spain), the new Renault K9 EGR valve and new IHI and Daimler turbochargers

-Automation and robotisation of production capacity in historic plants:

Châteauroux and Laigneville for cylinder heads
Zaragoza for the master cylinders

-The generalization and increase in capacity of chip recycling equipment for production at the Laigneville, Châteauroux and Ruse sites.
-New low consumption equipment (furnaces, compressors) in Châteauroux, Laigneville and Ruse and an improved suction system in Ruse

Outlook

-In 2015, the Company's investments are focusing on preparing for the significant growth in manufacturing expected in 2015 and 2016, mainly in Mexico and Bulgaria.

Data

Number of Employees

	Dec. 2014	Dec. 2013	Dec. 2012
France	909	926	961
Belgium	2	3	3
Bulgaria	804	718	647
Spain	552	567	557
United Kingdom	544	512	475
Mexico	475	404	389
Canada	3	2	2
Total	3,289	3,132	3,034