Financial Overview

(in million euros)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	4,220.4	3,249.6	29.9	-Sales were sharply higher in all region, especially in North America and Asia.
Net Profit	171.4	150.7	13.7	-
Automotive Equipment
Sales	3,720.1	2,778.0	33.9	-Sales increased by 33.9%, while worldwide automotive production rose by 3%. -The Division generated 58% of its revenue outside Western Europe. Business was very brisk in North America and Asia, which accounted, respectively. for 27% and 16% of Division revenue.

Acquisition

-Plastic Omnium Auto Exterior (POAE) announced the signature of an agreement for the acquisition of 100% of Plastal Poland, a supplier of plastic components for vehicles. The two plants to be acquired, at Gliwice and Poznan, Poland, have had a turnover of more than 60 million euros in 2010. The plants, which employ 600 associates, essentially supply Fiat, Volkswagen, BMW, Audi and Ford. This acquisition enables POAE to reinforce its industrial footprint in Eastern Europe, which already includes plants in Poland, the Czech Republic and Slovakia, delivering Volkswagen, Audi, Porsche, Skoda, PSA Peugeot Citroen and General Motors. (From a press release on October 12, 2011)

-Inergy Automotive Systems has signed agreements to acquire the plastic fuel system/fuel tank manufacturing assets of Ford Motor Company's Automotive Components Holdings LLC (ACH) affiliate in Milan, Michigan, U.S. The business produces 1.3 million fuel systems annually. The change of ownership will be effective as from 1 June 2011. This acquisition strengthens Inergy Automotive Systems' production base in North America, which already includes plants in Adrian (Michigan), Anderson (South Carolina) and Ramos (Mexico). They mainly supply General Motors, Hyundai, Nissan and Chrysler. A new facility will be constructed in Michigan to which current production at the ACH Milan plant will be transferred with an anticipated completion date during 2013. With this acquisition, Inergy Automotive Systems estimates output of more than 15 million fuel systems in 2012. (From a press release on May 19, 2011)

Joint Ventures

-Inergy Automotive Systems and a Russia-based automotive parts manufacturer Detalstroykonstruktsiya Pf Ooo have signed an agreement to create a joint venture in Russia. The new company will be a producer of plastic fuel systems in the local Russian market and will be 51% owned by Inergy. It will include the manufacturing assets of Inergy, which already has industrial operations in Stavrovo, and those of its Russian partner, in Togliatti. The company will supply fuel systems for AvtoVAZ in Togliatti, Ford in Saint Petersburg and Avtoframos in Moscow, as well as for future Nissan and Renault models to be produced in Russia. (From a press release on October 18, 2011)

-Inergy Automotive Systems has announced the creation of a joint company in China with Beijing Hainachuan Automotive Parts Co Ltd (BHAP), a subsidiary of Beijing Automotive Industry Co (BAIC). The new company will be owned 40% by BHAP and 60% by Plastic Omnium Auto Inergy, which will contribute its Beijing production plant, where fuel systems for Hyundai are already being produced. The company has 12 plants in China for its two automotive businesses – exterior components and composites and fuel systems. (From a press release on July 11, 2011)

Contracts

-The Automotive Exterior Division won supply agreements of composite material components from Jaguar-Land Rover and PSA Peugeot Citroen.
-Inergy Automotive Systems supplied Audi with approximately 36,000 SCR systems. Other orders for the system have been received from GM and Chrysler.

R&D Expenditures

(in million euros)

	FY2011	FY2010	FY2009
Overall	206	144	110

R&D Structure

-More than 1,200 engineers and technicians – 6% of the workforce – are employed worldwide in 2 R&D centers and 12 development and engineering facilities that provide local support for carmaker projects in their various markets.

-In its Automotive Equipment businesses, the Company focuses its research on solutions that reduce carbon dioxide (CO2) and nitrous oxide (NOx) emissions and helps automobile manufacturers to build the clean car of tomorrow by activating three main levers:

• Solutions that make vehicles lighter and more aerodynamic.
• Emissions-control systems.
• Support for new hybrid and electric powertrains.

-To reduce the weight of automotive components, the Company has launched an extensive innovation program to develop high-performance composites to be used in structural parts. In the United Kingdom and Spain, the Company has reinforced its manufacturing resources dedicated to this technology.

-Σ-Sigmatech, the Company's international R&D center for automobile modules and exterior components near Lyon, is being enlarged to speed the development of automotive structural parts made with composite materials.

Product Development

Effort to reduce hydrocarbon emissions
-Auto Inergy Division has stepped up its effort to reduce hydrocarbon emissions - in particular nitrous oxide and carbon dioxide - with its Twin Sheet Blow Molding technology (TSBM) and Selective Catalytic Reduction (SCR) solutions.

• TSBM: This technology helps reduce hydrocarbon emissions by integrating a large number of components into the fuel tank during the blow molding stage instead of welding them once the tank has been manufactured.
• DINOx Premium: The second generation (DINOx Premium) SCR system eliminates 95% of a diesel vehicle's NOx emissions and up to 8% of its CO2 emissions. Optimized in terms of size and performance, the system meets future emissions and fuel consumption standards, including the EURO VI standard scheduled to take effect in Europe beginning in 2014.

Capital Expenditure

(in million euros)

	FY2011	FY2010	FY2009
Overall	228	138	48

Investment outside France

-The Company announced that its automotive division is constructing five new plants, two in China and one each in Brazil, Poland and Morocco. In addition, in 2013 Auto Inergy Division will open a new fuel system/fuel tank R&D center in France. (From a press release on July 21, 2011)

-To support carmakers' increasing use of parts made with composite materials and meet demand for hybrid and all-thermoplastic tailgates, Plastic Omnium has bolstered its production facilities in Spain and the United Kingdom and expanded its international R&D center Σ-Sigmatech in France.

<China>
-Worldwide automobile production is expected to rise by 24% between 2011 and 2015 with emerging markets, where China is the world's largest market, accounting for 70% of that growth. By then, the Company plans to have built 11 new plants in China, for a total of 23 production facilities in the country.

-In 2011, the Company built two new plants. Furthermore, the Company is strengthening its development resources with a new R&D center for Auto Exterior Division, which will be operational in 2013.

<Brazil>
-Auto Inergy Division has begun building a plant in Sorocaba that will supply fuel systems for Toyota.

<Morocco>
-Auto Inergy Division opened Tangiers plant. From its plant, the Division will supply fuel systems to Renault-Dacia for vehicles produced in the carmaker's new Moroccan plant.

<Poland>
-Auto Exterior Division is reinforcing its base in Eastern Europe, which already includes plants in the Czech Republic and Slovakia as well as a new plant in Gliwice, Poland. From its facilities in the region, the Company supplies Volkswagen, Audi, Porsche, Skoda, PSA Peugeot Citroen and GM.