Financial Overview

(in million euros)

	FY ended Jan. 2012	FY ended Jan. 2011	Rate of change (%)	Factors
Overall
Sales	592.6	437.2	35.6	1)
EBITDA	101.9	85.0	19.9	-
Sales by Group
Sinter Group	208.5	174.1	19.8	-
Bearing Group	201.1	160.1	25.6	-
Friction Group	125.0	76.0	64.5	-
New Technology Group	57.0	25.5	123.5	-

Factors
1) Overall
-The Company increased its sales by 35.6% to 592.6 million euros. Of the 35.6 percentage points of growth in the 2011-2012 business year, 21.6 percentage points are directly related to organic growth, and 14.9 percentage points reflect acquisitions; at the same time, the effects of foreign currency diminished the gain in sales revenue by 0.9 percentage points.

-All divisions contributed to the Gompany's growth. As to the New Technology Group division, the division recorded highest sales due to the orders in the area of power electronics components as well as special machinery.

-The Company envisions achieving revenues of 750 million euros in the 2015-2016 business year.

Acquisitions

-The Company announced that it is taking a minority share in the sintered components manufacturer, Maxtech Sintered Product Pvt. Ltd. (MSPPL) in Pune, India effective February 1, 2011. MSPPL employs 80 people and produces sintered components for automotive engines and transmissions as well as stainless steel components for exhaust applications. Miba will transfer its powder metal technology to MSPPL and localize production of components currently imported to India from Europe. Miba will also provide sales and engineering support for MSPPL's stainless products, which are used in exhaust systems. (From a press release on February 1, 2011)

Awards

-In April 2011, Schaeffler GmbH distinguished Miba Precision Components (China) with its "Supplier of the Year" award.

-In March, 2011, Sinter Group Division earned the distinction of "Premium Supplier" from Schaeffler GmbH and Continental AG.

R&D Expenditure

(in million euros)

	FY ended Jan. 2012	FY ended Jan. 2011	FY ended Jan. 2010
Overall	31.3	22.6	18.7
% of Sales	5%	5%	6%

R&D Structure

-On a Group-wide level, a total of 218 employees worked in this area; the center of technological activities were located at the Austrian site.

-In 2011, at its Suzhou location in China, the Bearing Group began to build and develop a technology center. With this center, the Bearing Group is responding to the market development in the Far East.

Patents

-In the business year ended March 2012, the findings and deliverables from these development efforts have been protected by 20 new patent applications. Currently, the Company holds 195 valid patents.

R&D Activities

Bearing Group
-In the material area, the division is working on alternative production methods for aluminum-based and bronze-based materials.

-In the area of surface technology, the emphasis was placed on a corrosion-resistant SYNTHEC coating for lead-free bearings used in trucks and high-speed engines.

Sinter Group
-A focal point of Sinter Group in 2011-2012 was the development of low-noise gear drives for use in new three-cylinder and four-cylinder engines with high demands on the acoustic environment. Another focus was on the continued development of synchronization modules for use in new manual and double-clutch transmissions as well as all-wheel drive applications. These developments allows for greater shifting comfort and lower fuel consumption.

Friction Group
-The focal points of the R&D activities of the Friction Group in 2011-2012 were the development of clutch systems for trucks and a carbon friction material.

Capital Expenditure

(in million euros)

	FY ended Jan. 2012	FY ended Jan. 2011	FY ended Jan. 2010
Sinter Group	21.8	14.6	11.2
Bearing Group	13.8	9.0	5.8
Friction Group	5.3	11.8	2.1
New Technologies	1.4	0.8	0.08
Others	5.7	1.2	0.4
Consolidation	(0.9)	(2.8)	(0.1)
Total	47.3	34.6	19.5

Sinter Group
-The focus of investment activities in the Sinter Group during the business year 2011-2012 was on the development of production capacities at all sites.

-In the 2010-2011 business year, the Company invested 21.8 million euros. About half of the investments, in the amount of 10.3 million euros, were transacted at the Vorchdorf site, Austria. The rest of investments went to the most recent companies to join Miba Sinter Group: Miba Sinter USA and Miba Precision Components (China) in Suzhou.

Bearing Group
-In the 2010-2011 business year, the Company invested 13.8 million euros. Of this figure, 8.8 million euros was invested in building out the production capacities at Laakirchen, Austria. The rest of the investments were placed at the sites in China and the USA. At Miba Bearings US, a new production line for the manufacture of bearings for a new generation of high-performance truck engines went into serial production.

Friction Group
-In the 2010-2011 business year, the Company invested 5.3 million euros mainly for building-out of Miba HydraMechanica in Sterling Heights, USA.

New Technology Group
-In the 2010-2011 business year, the Company invested 1.4 million euros. These investments were essentially used for the purchase of technical systems and equipment as well as the expansion of production space at the Styrian sites, Austria.