Financial Overview

(in million euros)

	FY2009	FY2008	Rate of change (%)	Factors
Overall
Sales	825.8	1,060.7	(22.1)	1)
Car Application Segment
Sales	530.4	650.9	(18.5)	-
Commercial and Light Commercial Vehicle Applications Segment
Sales	112.9	179.7	(37.2)	-

Factors
1)
-The Company's market of operation - the automotive market - was one of the hardest hit in 2009 by the global financial and economic crisis; the strong drop in sales seen in the final months of 2008 continued during 2009, albeit at a slower pace. The net sales reported in 2009 by the Company, which saw a significant decline in orders and turnover during the year, amounted to 825.8 million euro, down by 22.1% compared to 2008, but increasing sharply compared to the first half of the year, when the Company's sales fell by 28.8%.

Acquisition

-The Company through its fully owned subsidiary Brembo do Brasil Ltda, has purchased a business relating to the production and sale of flywheels for the automotive industry from the Brazilian company Sawem Industrial Ltda. The amount of the transaction is approximately Brl 8.2 Mio. (about EUR 2.8 Mio.). The 2008 turnover of the purchased business is about Brl 15 Mio. (about EUR 5 Mio.). 2008 net sales is estimated in about Brl 120 Mio. (about EUR 40 Mio.). (From a press release on Jan. 9, 2009)

-The Company will acquire a remaining 24% stake in Brembo Rassini S.A. de C.V. from Sanluis Rassini for 1.8 million USD, making the entity its wholly-owned subsidiary. The joint venture company in Mexico, which will be renamed Brembo Mexico Puebla S.A. de C.V., produces brake discs. The transaction will be completed by the end of Aug. 2009. (From a press release on July 30, 2009)

Joint Ventures

-The Company and German-based SGL Group officially signed a 50-50 joint venture agreement. The joint venture, Brembo SGL Carbon Ceramic Brakes, will become operational effective June 1, 2009. For this purpose, the current subsidiaries Brembo Carbon Ceramic Brake Systems SpA and SGL Brakes GmbH will combine their activities. The new company will engage in the development and production of carbon ceramic brake discs and systems for the passenger car and commercial vehicle manufacturers. The entity will be headquartered in Milan, Italy, and expects sales of approximately 70 million euros in 2009. (From a press release on May 28, 2009)

-The Company and Donghua Automotive Industrial Co., a member of the SAIC Group, agreed to establish a new manufacturing facility for brake systems in Nanjing, China. The new factory, which is scheduled to become operational in early 2010, will manufacture brake calipers and discs for use in passenger cars and commercial vehicles. The Company and Donghua agreed to purchase foundry plants and equipments at a price of 8.5 million euros. For this project, the Company has formed a new fully owned subsidiary, Brembo Foundry Nanjing Co. Ltd., with share capital of 100 million RMB (10 million euros). Between 2011 and 2014, the Company will further invest about 20 million euros in the foundry. In the same period, Brembo Nanjing Brake System, 70 percent owned by the Company and 30 percent by Donghua, will invest additional 20 million euros to expand its production capacity. The joint venture is forecast to achieve 22 million euros in revenue in 2009. With these investments, the Company expects to triple the volume of brake discs and calipers it produces in China by 2013. (From a press release on Dec. 1, 2009)

R&D Activities

-In the discs area these activities are assigned to the Disc Technology Unit, which reports to the Brake Disc Division, and is currently managing several strategic projects. The primary objective of the projects is to reduce brake disc weight and corrosion, as well as the dust produced by them by researching new types of cast iron and surface treatments. The projects also aim to improve brake disc comfort by studying the factors that influence their acoustic behaviour, with a focus on finding new alloys capable of reducing or eliminating the "whistling" sound.

-In the systems area, development work on the mechatronic projects involving electric parking brake systems continued according to plan. The projects relate to electromechanical braking systems with an electric button control managed by a control unit that converts the driver's request into a braking force applied to the brakes. Projects in this sector are being implemented with the collaboration of "non-traditional" development partners.

-The majority of investments in property, plant and equipment were made in Italy by Parent Company and involved plant, machinery and equipment (13,390 thousand euro).

-Other investments in property, plant and equipment were made by subsidiaries Brembo Spolka Zo.o. and Brembo Poland Spolka Zo.o., for 4,920 thousand euro and 4,544 thousand euro, respectively. Investments by Brembo Spolka Zo.o. mainly went to equipment purchases for a new platform.