Financial Overview

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factors
Overall
Sales	1,319.2	1,158.4	13.9	-
EBIT	62.8	58.5	7.4	-
Engine Systems Division
Sales	792.6	612.9	29.3	1)
EBIT	39.0	24.4	59.8	-
Suspension Component Division
Sales revenues	528.6	547.7	(3.5)	-
EBIT	32.3	44.1	(26.8)	-

Factors
Engine Systems Division
1) Sales
-Overall, the full-year consolidation of the activities of subsidiary Systemes Moteurs S.A.S. (versus five months only in 2011) enabled the division to achieve sales revenues of Euro 792.6 million increased by 29.3% to EUR 792.6 million year-on-year, with significant growth in the North American market, further expansion in the Chinese and Indian markets and basically stable performance in the Latin American market.

-The following projects were implemented during the year:

• expansion of the production capacity of the Bangalore plant (India),
• start up of new plant construction in Wujiang (China)
• and expansion of the production capacity at Prichard (USA).

R&D Expenditure

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	35.9	26.1	20.2

Product Development

FRP Coil Springs
-The Company has launched its new coil springs produced with composite material aimed at Passenger Vehicle (PV) and Light Commercial Vehicle (LCV) suspension applications. The fiberglass reinforced plastic (FRP) Coil Springs are weighing up to 70% less compared with traditional steel coil springs. In a joint development, the FRP spring was adapted to Audi's requirements and will find use in an upcoming model. (From a press release on March 2, 2012)

Capital Expenditure

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall (Purchase of tangible assets)	45.2	36.3	24.3

Investment Outside Italy

<India>
-The Company has launched a new suspension components plant in Chakan, Pune area, India. More specifically, through its 58% controlled subsidiary Allevard IAI (in which the Indian partner Imperial Auto has a 42% interest), the group has inaugurated a plant of 12 thousand square meters for the production of stabilizer bars and torsion bars. The new plant will initially be supplying Tata, Mahindra, Fiat and Piaggio. However in the near future production is scheduled to start in order to supply the Indian plants and those in the Asia-Pacific region of other clients of Sogefi such as General Motors, Renault-Nissan and Ford. At the same time, in the Bangalore area the group has doubled the capacity of its filter system plant which is the result of a joint venture with its local partner (holding 40%) MNR. The group's total investment in India amounts to approximately 10 million euros. The objective of the group’s revenue with the new plants up and running is to reach at least 5% in the next five years. Overall the Sogefi group's production capacity in India consists of three plants: the Pune plant, the Bangalore plant and a third plant producing engine air-cooling systems at Gurgaon, which came with the acquisition of Systemes Moteurs, completed in the second half of 2011. (From a press release on July 4, 2012)