Financial overview

(in million USD)

	FY2008	FY2007	Rate of change (%)	Factors
Overall
Sales	1,828.1	2,220.7	(17.7)	-
Operating profit	46.8	188.8	(75.2)	-
Profit before taxation	37.3	170.1	(78.1)	-
Profit after taxation	37.8	138.2	(72.6)	-
Automotive Products Group (APG)
Sales	905.2	1,157	(21.8)	1)

1)
-Sales for APG for the first half of FY2008 declined by 5% over the same period in the previous year when compared on a constant currency basis. Sales in the first half were still strong in Asia and flat in Europe, but in North America sales declined as the downturn in that market started to impact customer demand.

-Sales in the second half of US$322.8 million declined by US$259.6 million, or 45%, from sales of US$582.4 million in the first half. Sales were impacted by currency changes, notably the fall in the value of the Euro against the dollar. Excluding the Euro currency effect of US$28.9 million, sales declined in the second half over the first half by 40%.

-In all regions, sales in the second half were lower than in the first half. European sales reduced by US$195.1 million (53%), Asian sales by US$21.7 million (24%) and Americas sales by US$42.4 million (34%).

Financial Overview by Business Unit
Body Climate
-Global sales of products for body climate applications, including motors for window lifts, power seat adjustment and power lift gates, were US$76.1 million in FY2008, a decrease of US$28.5 million, or 27%, from US$104.6 million in the previous year. The effect of currency exchange rates was negligible.

-Sales in Europe were US$24.2 million in FY2008, a decrease of US$10.0 million, or 29%, from US$34.2 million in the previous year. Excluding currency effects, underlying sales declined by 31%. In Europe, the second half of FY2008 saw significant reductions due to a rapid decline in window lift demand.

-Sales in Asia were US$12.4 million in FY2008, an increase of US$2.7 million or 28% over US$9.7 million in the previous year. The effect of currency exchange rates was negligible. Sales of window lift products in Asia, especially China, Korea and the Middle-East grew primarily as a result of initiatives in the previous year which led to new product launches and improved market penetration in FY2008.

-Sales in the Americas were US$39.5 million in FY2008, a decrease of US$21.2 million, or 35%, from US$60.7 million in the previous year. In North America, sales of seat products declined significantly as a result of the downturn in the pick-up truck and large sports utility vehicle markets. This downturn started in the first half of FY2008 and accelerated during the second half.

Body Instrumentation
-Global sales of products for body instrumentation applications, including motors for mirrors, headlamps, door locks, cinching latches and washer pumps were US$134.1 million in FY2008, a decrease of US$35.0 million, or 21%, from US$169.1 million in the previous year. Excluding currency effects, underlying sales declined by 22%. Sales volume grew in the first half of FY2008 but decreased in the second half primarily due to downturns in the American and European passenger car markets and the resultant supply chain rationalization.

-Sales in Europe were US$81.1 million in FY2008, a decrease of US$26.7 million, or 25%, from US$107.8 million in the previous year. Excluding currency effects, underlying sales declined by 26%.

-Sales in Asia were US$37.0 million in FY2008, a decrease of US$4.3 million, or 10%, from US$41.3 million in the previous year. Excluding currency effects, underlying sales declined by 12%. Asian sales fell due to lower exports by many of its customers and because of the softening of demand in Korea. These impacts more than offset growth in China.

-Sales in the Americas were US$16.0 million in FY2008, a decrease of US$4.0 million, or 20%, from US$20.0 million in the previous year. Sales declined as a result of the general economic slowdown and its effect on vehicle sales.

Powertrain Cooling
-Global sales of products for powertrain cooling applications, mainly comprising cooling fan modules and motors were US$339.6 million in FY2008, a decrease of US$88.4 million, or 21%, from US$428.0 million in the previous year. Excluding currency effects, underlying sales declined by 23%. Sales volume declined slightly in the first half of FY2008 before turning sharply down in the second half.

-Sales in Europe were US$205.2 million in FY2008, a decrease of US$87.4 million, or 30%, from the US$292.6 million the previous year. Excluding currency effects, underlying sales declined by 31%. Sales in Europe declined due to the general economic slowdown and its effect on vehicle sales as well as the reducing demand from a number of end-of-life vehicle platforms and the phasing out of uncompetitive products.

-Sales in Asia were US$77.7 million in FY2008, an increase of US$10.1 million, or 15%, over US$67.6 million in the previous year. Sales in Asia grew as a result of revenues gained from new product launches and increased penetration of after-market sales channels. Sales growth was also helped by the strengthening of the Chinese renminbi against the US dollar. Excluding currency effects, underlying sales increased by 6%.

-Sales in the Americas were US$56.7 million in FY2008, a decrease of US$11.1 million, or 16%, from US$67.8 million in the previous year. These declines were due to the general economic slowdown in North America and some one-off after-market business, which was recorded in the previous year.

Powertrain Management
-Global sales of products for powertrain management applications, including fuel and air pumps and engine air management systems, were US$58.4 million, a decrease of US$8.6 million in FY2008, or 13%, from US$67.0 million in the previous year. Excluding currency effects, underlying sales declined by 14%.

-Sales in Europe were US$29.4 million in FY2008, a decrease of US$4.0 million, or 12%, from US$33.4 million in the previous year. Excluding currency effects, underlying sales declined by 13%. Sales declined as a result of supply chain rationalization as customers de-stocked, which more than offset increased revenues achieved through the launch of new products.

-Sales in Asia were US$11.2 million in FY2008, a decrease of US$2.6 million, or 19%, from US$13.8 million in the previous year. Excluding currency effects, underlying sales declined by 22%. Sales declined in Asia overall as growth in China was more than offset by sharp reductions in Japan and Korea as those markets contracted.

-Sales in the Americas were US$17.8 million in FY2008, a decrease of US$2.0 million, or 10%, from US$19.8 million in the previous year. The benefit of new product introductions was more than offset by North America sales declines in FY2008, especially in the second half, as the passenger car market declined. In contrast, sales in South America grew significantly over the previous year due to some customers migrating from higher cost North American locations to South American locations.

Chassis Braking
-Global sales of products for chassis braking applications, including products for braking systems and transmission actuation, were US$21.6 million in FY2008, a decrease of US$19.9 million, or 48%, from US$41.5 million in the previous year.

-Sales in Europe were US$6.7 million in FY2008, a decrease of US$1.6 million, or 19%, from US$8.3 million in the previous year. Excluding currency effects, underlying sales declined by 20%. Sales were impacted by the general economic slowdown in the second half of the year.

-Sales in Asia were US$2.2 million in FY2008, a decrease of US$2.9 million, or 57%, from US$5.1 million in the previous year. The impact of changes in currency exchange rates in the year was negligible. Sales in Asia declined throughout the year as the phase out of uncompetitive products was completed.

-Sales in the Americas were US12.7 million in FY2008, a decrease of US$15.4 million, or 55%, from US$28.1 million in the previous year. As with body climate products, North American sales of these products were heavily impacted by the decline in demand for heavy trucks and large sports utility vehicles which started in the first half of FY2008 and then accelerated in the second half.

Actuation Systems
-Global sales of actuation systems were US$202.9 million in FY2008, a decrease of US$47.2 million, or 19%, from US$250.1 million in the previous year. Excluding currency effects, underlying sales declined by 20%.

-Sales in Europe were US$144.5 million in FY2008, a decrease of US$25.3 million, or 15%, from US$169.8 million in the previous year. Excluding currency effects, underlying sales declined by 17%. Even with increased market penetration of stepper actuators in the first half of FY2008, full year sales declined due to the downturn of automotive sales. Sales were also reduced by changes in product mix as customers replaced older actuators with newer, lower priced products. This sales decline was also impacted by its strong presence in the mid-premium & luxury car market segments which have been disproportionately affected by the economic slowdown.

-Sales in Asia were US$7.1 million in FY2008, a decrease of US$0.6 million, or 8%, from US$7.7 million in the previous year. Excluding currency effects, underlying sales declined by 10%.

-Sales in the Americas were US$51.3 million in FY2008, a decrease of US$21.3 million, or 29%, from US$72.6 million in the previous year. Sales decreased due to the overall market downturn and weakness in the heavy truck segment.

Switches, Sensors and Solenoid products
-Global sales of switches, sensors, and solenoids were US$72.4 million in FY2008, a decrease of US$23.9 million, or 25%, from US$96.3 million in the previous year. Excluding currency effects, underlying sales declined by 26%.

-Sales in Europe were US$46.2 million in FY2008, a decrease of US$16.8 million, or 27%, from US$63.0 million in the previous year. Excluding currency effects, underlying sales declined by 28%. In addition to the market led declines, revenues also reduced due to the exit of non-core product lines.

-Sales in Asia were US$12.3 million in FY2008, an increase of US$1.0 million, or 9%, over US$11.3 million in the previous year. Excluding currency effects, underlying sales increased by 8%. Sales in Asia were robust and increased, partly due to the successful launch of new subsystems in the previous year.

-Sales in the Americas were US$13.9 million in FY2008, a decrease of US$8.1 million, or 37%, from US$22.0 million in the previous year. Sales in North America declined throughout the year due to the weakness of the heavy truck and large sports utility vehicle segments, though a number of new solenoid projects were launched towards the end of FY2008.

Capital investment

(in million USD)

	FY2008	FY2007	FY2006
Asia	44.9	69.9	54.2
America	4.6	6.4	3.8
Europe	16.5	22.5	18.7
Total	66.1	98.8	76.7