Financial Overview

(in million euros)

	FY2011	FY2010	Rate of change(%)	Factors
Sales	2,473.3	2,180.0	13.5	-
EBIT	141.6	149.2	(5.1)	-

Factors
1)
-The Company improved sales by a total of 13.5 per cent to 2,473.3 million EUR. Two main factors contributed to this result: numerous product launches as well as the good economy in the sectors and regions important to the Company.

Awards

-The Company announced that it has been presented with the Bosch Supplier Award in the Mechanics and Resale Goods category from the Bosch Group. This is the second time that the Company has won the Bosch Supplier Award. (From a press release on July 20, 2011)

Product Development

3-stage water separator
-The Company developed the new 3-stage water separator which separates water droplets from fuel which are just a tenth of the diameter of a human hair. The water separator is part of the fuel system of common rail diesel injection systems. (From a press release on September 2, 2011)

Air/exhaust mixer
-The Company developed the new air/exhaust mixer for diesel engines which contributes to enable vehicles to meet the requirements of the Euro 6 emission standard. The air/exhaust mixer is part of the exhaust gas recirculation (EGR) system and works in the low pressure range. MANN+HUMMEL has started series production of the low pressure air/exhaust mixer for Renault. (From a press release on September 2, 2011)

Electronically controlled thermal management valve
-The Company's new electronically controlled thermal management valve, with a size of just 17.5 centimetres, reduces CO2 emissions by two to three grams per kilometre. The valve independently regulates up to three water cooling circuits depending on the conditions in any combination, such as between the cooling unit, cabin heating and engine. (From a press release on September 2, 2011)

Timing case cover in plastic
-The Company developed a new timing case cover in plastic which is cheaper than metal, is lighter and can be designed with a complex shape. This enables the integration of different functional parts into one system, in this case engine bearing, oil filter and oil cooler. This functional integration reduces the amount of material used and therefore lowers weight. (From a press release on September 2, 2011)

Space-saving acoustic filter
-The Company has developed a space-saving acoustic filter. With the acoustic filer, the cross-section of the intake manifold is adjusted to provide optimum volume of air to the engine at all times. In addition, the new development saves more than 2.5 liters of installation space in the engine compartment which would otherwise have been occupied by the resonators. (From a press release on March 17, 2011)

Capital Expenditure

(in million euros)

	FY2011	FY2010	FY2009
Total (Investments in tangible assets)	109	71	62

Investment in Germany

-The Company announced that it will invest about 7.2 million euros to expand its plant in Sonneberg, Germany to respond to a new order for intake manifolds. The company is extending an existing production hall in Sonneberg by approximately 1,100 square metres and constructing new site facilities over 1,100 square metres. The expansion is scheduled to be completed by the first quarter of 2012. (From a press release on November 18, 2011)

Investment Outside Germany

<USA>
-The Company announced that it will set up a new satellite production facility in Dunlap, Tennessee, the U.S. for OEM parts projected to employ 150 associates by the end of 2013. The company will invest 15 million USD in the new plant.  (From a press release on December 22, 2011)