Financial overview

(in million USD)

	FY2008	FY2007	Rate of change(%)	Factors
Overall
Sales	7,167	6,449	10.4	-
EBITDA	416	257	61.9	-
Net Income	(101)	(219)	-	-
Commercial Vehicle Systems (CVS)
Sales	4,819	4,205	14.6	-Production volumes in North America for Class 8 trucks decreased 22%. -Continuing sales strength in Europe throughout FY2008 reflects strong heavy- and medium-duty truck volumes in region. -South America volumes increased by 24%. -Sales in China and other Asia Pacific areas increased 33%. -The acquisitions of Mascot and Trucktechnic in FY2008 increased sales by 31 million USD.
EBITDA	355	221	60.6	-
Light Vehicle Systems (LVS)
Sales	2,348	2,244	4.6	-Excluding the impact of foreign currency translation, sales decreased 86 million USD or 4% compared to the prior year. -Sales in North America decreased primarily due to lower sales in its suspension systems and modules business. -The closure of its door module facility in Belgium in FY2007 unfavorably impacted sales by 36 million USD. -Strong sales volumes in the Asia Pacific and South American regions partially offset the lower volumes in North America.
EBITDA	61	36	69.4	-

* EBITDA : Earnings Before Interest, Tax, Depreciation, and Amortization


Contracts
-Light Vehicle Systems (LVS) business group has been awarded a multi-year contract to supply Hyundai North America with a plastic door module and accompanying latch product for the new Hyundai Sonata. Production is scheduled to begin in March 2010. This product will be manufactured in North America with an initial annual volume projected to be approximately 700,000 units each. (From a press release on Jan. 24, 2008)

-Body Systems business unit within the Light Vehicle Systems (LVS) business group has been awarded new business to supply over four million window regulator motors annually to Hyundai Motor Company worldwide. The agreement will supply Hyundai's future models with its New Generation Motor II from January 2010 through January 2017. The New Generation Motor II will be produced in the Company's facilities located in China, India, France, and the United States for delivery to Hyundai manufacturing facilities located in Korea, Europe, China, India, and the United States. (From a press release on Nov. 6, 2007)


Acquisition
-In Dec. 2007, CVS business acquired Mascot, which remanufactures transmissions, drive axles, steering gears and drivelines in North America.

-In Jul. 2008, CVS business acquired Trucktechnic, a supplier of remanufactured brakes, components and testing equipment primarily to European markets.


Plant Opening
<Romania>
-The Company announced the start of production at a new Light Vehicle Systems (LVS) facility in Salonta, Romania. This new plant will supply window regulators, cables, latches and actuators directly to Dacia, the largest vehicle manufacturer in Romania and part of the Renault Nissan group. Its Romania facility represents the sixth operation to be established in this region. (From a press release on Jan. 31, 2008)

<Mexico>
-The Company has started up a new commercial axle manufacturing plant in Cienega de Flores, Mexico. The plant supplies front axles to Volvo and Mack (Volvo), Peterbilt and Kenworth (PACCAR , Freightliner (Daimler), and General Motors. (From a press release on Sep 2, 2008)


Business Restructuring
-The Company announced that its board of directors has approved a plan to spin off its Light Vehicle Systems (LVS) business, with the Commercial Vehicle Systems (CVS) business remaining with the Company. The company expects to complete the spinoff within the next 12 months. (From a press release on May 6, 2008)

R&D Facilities

Name	Location
Technical Center	Detroit, Michigan, USA
Engineering Center	USA, Brazil, China, France, Germany, India and UK

R&D Expenditure

(in million USD)

	FY2008	FY2007	FY2006
Amount	136	124	114

R&D Development
-Meritor WABCO Vehicle Control Systems introduced OnGuard(TM), a new technology designed to further improve commercial vehicle safety. OnGuard is a forward-looking, radar-based adaptive cruise control system with active braking for commercial vehicles in North America. (From a press release on Feb. 1, 2008)

Investments outside USA
<Mexico>
-The Company has constructed a new USD 30 million component manufacturing facility in Cienega de Flores in northern Mexico. Initially, the plant will produce bevel gearing and front non-drive steer axle assemblies for U.S. and Canadian truck OEM assembly plants. The components also will support other U.S.-based its assembly sites. (From a press release on Aug 26, 2008)