Financial Overview

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factors
Overall
Net Sales	4,806.2	4,220.4	13.9	1)
Net Profit	181.5	171.4	5.9	-
Automotive Equipment
Sales	4,343.0	3,720.1	16.7	-

Factors
1) Net Sales
-The Company's market share increased in North America, China, and Europe in 2012. Market share was boosted in North America through the Company's acquisition of Ford's fuel system production in the United States, as well as the construction of a new plant in Mexico to supply parts for Volkswagen. In China, the Company's market share increased due to the construction of four new manufacturing plants. A combination of market share gains with current customers as well as contracts with new customers helped improve the Company's market share in Europe. Combined with an increase in worldwide automobile production, the growth of the Company's market share helped boost its net sales in 2012 by 13.9%.

Restructuring

-The Company has launched a restructuring project of its automotive business in Germany. The Company announced its intention of discontinuing the production of bumpers at its Eisenach-Thuringia plant in Germany, which currently has about 200 employees. The measure does not affect the plant's fuel tank/fuel system operations. (From a press release on November 23, 2012)

Business Strategy

-As the Company expects that most growth in the global automobile market will be in the BRICs (Brazil, Russia, India and China), the Company has started to focus its efforts in those regions. Thus, the Company is aiming to obtain 25% of China's bumper market and 12% of its fuel system market by 2016. Another of the Company's objectives is to have 20% of their automotive revenue generated in the BRICs.

Acquisition

-Plastic Omnium Auto Exterior, a division of the Company, acquired exclusive control of its joint venture in Pune, India, after buying out the 40% stake held by local partner Varroc. The Pune plant supplies bumpers to General Motors, Mahindra & Mahindra and Volkswagen. (From a press release on September 18, 2012)

Joint Ventures

-In April 2012, Plastic Omnium Auto Inergy, a division of the Company, signed a joint venture agreement with Detalstroykonstruktsiya (DSK), a leading Russian fuel system company to form DIPO. The Company has a 51% stake in DIPO and has contributed its plant in Stavrovo, while DSK has contributed its Togliatti plant. DIPO will manufacture fuel systems for AvtoVAZ, Ford, Nissan, Renault and General Motors.

-At the end of January 2012, Plastic Omnium Auto Inergy finalized the formation of a joint venture 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.

Contracts

-A division of the Company, Plastic Omnium Auto Exterior, increased its backlog with a contract to supply bumpers for the BMW "X3" and "X4", in addition to the bumpers for the "X5" and "X6" that were already being supplied to the BMW plant in Spartanburg, South Carolina, USA. (From a press release on October 25, 2012)

-Plastic Omnium Auto Inergy has recently won an order to supply the first plastic fuel tanks to Hyundai in India, shortly after being awarded a similar contract by Toyota in Ranipet, close to Chennai. (From a press release on September 18, 2012)

-The Company announced that its new plant in the United Kingdom is delivering tailgates for Jaguar Land Rover. (From a press release on April 19, 2012)

-The Company announced that its new plant in Germany is delivering body components for trucks produced by Mercedes-Benz. (From a press release on April 19, 2012)

-Plastic Omnium Auto Inergy, the Company's fuel systems division, was awarded a contract by Audi to supply most of the selective catalytic reduction (SCR) systems for diesel vehicles, beginning in 2015. The contract calls for 500,000 SCR systems a year, representing an estimated EUR 500 million. Other orders for the system have been received from General Motors and Chrysler. (From a press release on February 2, 2012)

-The Company's plant in Nanjing, China launched series production of bumpers for the Volkswagen "Lavida" and "Santra" and the Skoda "Rapido" in 2012.

Awards

-In December 2012, Toyota presented Plastic Omnium Auto Inergy, the Company's fuel systems division, with a World Quality award for managing projects involving global platforms while complying with high quality standards. In April 2012, Toyota presented a Plastic Omnium Auto Inergy plant in Vellore, India with a Best Quality Supplier Award for the first plastic fuel system ever produced in India.

-In 2012, the Company's Auto Exterior plant in Pune, India, was awarded a Product Development Excellence Award from Mahindra for the design, development and manufacture of the fenders and structural front-end unit for the "XUV 500".

R&D Expenditures

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	243.7	206.2	143.7

R&D Structure

-More than 1,400 engineers and technicians - 6% of the workforce - are employed worldwide in 4 R&D centers and 10 development and engineering facilities that provide local support for carmaker projects in their various markets.

-The Company will inaugurate a new international research and development center in Compiegne, France, for its Inergy Automotive Systems fuel systems division, in the summer of 2014. The new research center's main goal is to focus on the reduction of polluting emissions. The center will be built on the existing Inergy Automotive Systems site in Venette near Compiegne, and will bring together 430 employees divided between Venette and Laval in France, as well as Brussels in Belgium. Approximately 500 people are expected to be employed within two years of the facility's opening. (From a press release on June 28, 2012)

-The Company has a portfolio of 2,585 patents, of which 52 were filed in 2012.

-Σ-Sigmatech, the Company's international R&D center for automobile modules and exterior components near Lyon, was enlarged in 2012 to speed the development of automotive structural parts made with composite materials.

R&D Activities

-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 focusing on three main goals:

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

-By 2020, the Company will develop bumpers, fenders, thermoplastic fuel systems, composite floor and tailback modules, high-performance composite structural components and other solutions that will help to reduce the weight of passenger cars by 25-30% compared with those fitted with steel parts.

Product Development

<Effort to reduce hydrocarbon emissions>
-The Company's 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.

<Hybrid tailgates>
-Since 2012, the Company has developed two hybrid tailgates made from thermoplastics and thermosetting resins, making them lighter than standard tailgates, for the Peugeot "508 SW" and the Range Rover "Evoque".

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	261	228	138

Future Investment

-The Company has allocated a capital expenditure budget of EUR 1.2 billion for the 2013-2016 period. The Company will be focusing on increasing production capacity outside Europe, as well as investing in more environmentally friendly products.

Investment outside France

<United States>
-The Company opened a fuel system plant in Huron, Michigan, where all production from the Milan plant acquired from Ford in June 2011 will gradually be transferred. (From a press release on October 25, 2012)

<Mexico>
-In November 2012, the Company's Plastic Omnium Auto Inergy finished construction of a new plant in Puebla and started manufacturing fuel systems for the Volkswagen Group. The Company's other division, Plastic Omnium Auto Exterior installed a new paint line in its plant in Puebla.

<Russia>
-Plastic Omnium Auto Inergy, a division of the Company, announced plans to construct a new plant in Saint Petersburg, Russia in 2013, to service contracts obtained recently from Nissan, General Motors and Ford. The plant will be built by the 51%-owned joint venture that was created between the Company and DSK, Russia's fuel systems manufacturer. (From a press release on September 18, 2012)

<China>
-In 2012, the Company built six plants in China. Four of the plants were built by the Company's Plastic Omnium Auto Exterior division through its joint venture YFPO with Yanfeng Visteon. These plants were built in Yizheng, Wuhan, Shenzhen, and Shenyang. The other two plants, built by the Company's other division, Plastic Omnium Auto Inergy, in Shenyang and Guangzhou, will supply GM, Toyota and BAIC beginning in 2014.