Financial overview

(in million USD)

	FY2007	FY2006	Rate of change (%)	Factors
Overall
Sales	2,220.7	2,086.6	6.4	-The increase in total sales by US$134 million to US$2.22 billion reflected the combination of the strength of the Euro and other currencies against the US Dollar, strong growth in cooling fan module sales in North America and China, and continued expansion of its trading activities. Partially offsetting this growth was lower sales of micromotors to the power tools market and weaker than expected sales to the computer equipment segment by Parlex, its flexible printed circuits business.
Operating profit	188.8	157.7	19.7	-
Profit before taxation	170.1	135.9	25.2	-
Profit after taxation	138.2	113.0	22.3	-
Automotive Products Group (APG)
Sales	1,157	1,051	10.1	-European-based automotive industry customers contribute more than 60% of APG's sales and consequently the division benefited from the sustained strength of the Euro currency and generally positive economic conditions in the Euro zone during the year. In addition, the North American cooling fan module business continued to grow market share from a relatively small base; while the same product line in mainland China achieved a healthy double-digit sales increase in a rapidly growing automotive market that is now the second largest in the world.

Financial Overview by Business Unit (BU)
Body Climate
-Sales of products for body climate applications, including motors for window lift and power seat adjustment, increased by US$5.2 million, or 5.2%, from US$99.3 million to US$104.5 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$3.4 million. Excluding this effect the underlying sales growth was 1.9%. Sales in Europe and Asia demonstrated some growth. In particular, our window lift products were successfully launched in various Asian markets, and this helped to offset a softening North American market where sales marginally declined. Increasingly, our markets require lighter products with equivalent power and we are developing new products to address this need.

Body Instrumentation
-Sales of products for body instrumentation applications, including motors for mirrors, headlamps, doorlocks, cinching latches and washer pumps, increased by US$10.0 million, or 6.3%, from US$159.1 million to US$169.1 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$6.4 million. Excluding this effect the underlying sales growth was 2.2%. Sales growth was due to growing demand in China and South America following the transplant of some of our customers' production to lower cost regions, and to the introduction of new products such as steering wheel applications, lumbar support and cinching latch motors. Sales increases in Europe were primarily a result of the favourable Euro exchange rate against the US Dollar but, excluding this effect, sales declined as we discontinued some low margin business in this market.

Powertrain Cooling
-Sales of products for powertrain cooling applications, comprising mainly cooling fan modules and motors, increased by US$77.4 million, or 22.1%, from US$351.0 million to US$428.4 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$31.3 million. Excluding this effect the underlying sales growth was 13.1%. Sales growth was particularly strong in North America as a result of the ramp-up of new product launches in the previous year plus higher demand for service and spare parts. In Europe, the favourable Euro exchange rate against the US Dollar benefited sales. In Asia, where sales also benefited from the strengthening Renminbi, we increased sales significantly by winning new business and securing growth with existing customers in a rapidly expanding market.

Powertrain Management
-Sales of products for powertrain management applications, including fuel and air pumps and engine air management systems, declined by US$3.8 million, or 5.3%, from US$70.8 million to US$67.0 million despite the contribution of US$2.4 million from the appreciation of the Euro and other currencies against the US Dollar. Excluding this currency effect the underlying decline in sales was 8.7%. Sales in the Americas declined because of lower sales of fuel pump products in North America, but this decline was partially offset by growth for fuel pump products in South America. In Europe, sales were flat with the favourable Euro exchange rate against the US Dollar compensating for lower unit sales for air pumps. However, a number of new products were launched for engine air management and fuel pump applications which helped drive growth in Asia, particularly in China. With fuel efficiency being a major global thrust, this segment with its innovative products is well positioned for growth in flexifuel markets. Moreover, our new engine air management products are designed to address changing emission norms and environmental concerns.

Chassis Braking
-Sales of products for chassis braking applications, including products for braking systems and transfer case actuation, increased by US$3.9 million, or 10.4%, from US$37.6 million to US$41.5 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$1.0 million. Excluding this effect the underlying sales growth was 7.8%. In North America, although sales of products for truck and sports utility vehicles declined due to a downturn in this market this was more than offset by an up-take in product sales for crossover models. In Europe, we experienced a decline in sales which was only partially offset by increased sales of electric parking brake motors. In this business segment we are focusing on developing solutions in braking applications to address consumer safety concerns.

Actuation Systems
-Sales of actuation systems, including systems for door-lock, mirror, headlamp adjustment and air conditioning applications, increased by US$10.1 million, or 4.2%, from US$240.0 million to US$250.1 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$16.5 million. Excluding this effect, underlying sales declined by 2.7%. Significant market penetration and ramp-up in Asia partly offset a decline in sales in North America where there was a general market downturn for large trucks. In Europe, after adjusting for the favourable Euro exchange rate against the US Dollar, sales grew modestly, in line with the market. New, more efficient actuators have been developed and are now in production, equipping the business for an expansion in our markets.

Switches, Sensors and Solenoid products
-Sales of switches, sensors, and solenoid products increased by US$3.5 million, or 3.7%, from US$92.8 million to US$96.3 million. Of this increase, the appreciation of the Euro and other currencies against the US Dollar contributed US$6.9 million. Excluding this effect, the underlying sales declined by 3.7%. Sales in the Americas grew modestly due to the success of our customers' products. In Europe, after adjusting for the favourable Euro exchange rate against the US Dollar, sales declined due to exiting unprofitable non-core product lines. Asia sales were flat, but new products are being developed for that market and should be introducted in the coming year.

Capital investment

(in million USD)

	FY2007	FY2006	FY2005
Total	99	77	66