Sogefi S.p.A. Business Report FY2011

Business Highlights

Financial Overview

(in million euros)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	1,158.4	924.7	25.3	-
EBITDA	108.3	86.7	24.9	-
Engine Systems Division
Sales	611.5	465.1	31.5	1)
EBITDA	47.0	39.2	19.9	2)
Suspension Components and Precision Spring Division
Sales revenues	547.7	461.6	18.7	-
EBITDA	68.3	52.1	31.1	-

Factors
Engine Systems Division
1)
-The revenues of the division amounted to 611.5 million euros, including the 135.7 million euros reported by Systemes Moteurs S.A.S. during the last five months as part of the consolidation. On like-for-like basis, revenues were 475.9 million euros, reflecting weak demand on the European independent aftermarket, whereas the original equipment and original equipment spares sectors grew on all key markets (+4.2% Europe, +5.8% Mercosur, +45.8% USA, +183.9% China, +22.2% India).

2)
-EBITDA and EBIT were affected by the costs incurred in connection with the reorganisation of the Welsh plant in Llantrisant (10.3 million euros).

Acquisitions

-In Jun. 2011, the Company has signed an agreement to buy the French automotive components group Mark IV Systemes Moteurs from its American holding company Mark IV, LLC. Mark IV Systemes Moteurs is a producer of air intake and engine cooling systems with revenues of around 270 million euro in 2010 and some 1,200 employees. The group has seven production plants (three of which are in France while the others are in Canada, Mexico, Romania and India), two research and development centres (in France and U.S.) and is currently building a new production site in China. The deal was concluded on the basis of an enterprise value of the Mark IV Systemes Moteurs group of approximately 150 million euro. The finalization of the agreement is expected in the third quarter of 2011. (From a press release on June 21, 2011)

-In July 2011, the Company announced that it has completed the acquisition of the French automotive components group Mark IV Systemes Moteurs from the American holding company Mark IV LLC. Mark IV Systemes Moteurs is a producer of air intake and engine cooling systems. (From a press release on July 29, 2011)