Outlook for the current year

In keeping with the Industrial Plan presented on February 11, 2009, the year 2009 is expected to be a difficult year for the market, both in the Industrial segment (Original Equipment -35% in mature markets, -15% in emerging markets, Replacements -10% in mature markets and -5% in emerging markets) and in the Consumer segment (Original Equipment -20% in mature markets, -15% in emerging markets, Replacements -3% in mature markets and in line with the prior year in emerging markets), where the Replacements market should report a less negative trend on account of the gradual market destocking, the fall in the price of diesel and the forecast of a good winter season.

If the above market forecasts are correct, the efficiency resulting from restructuring measures, the positive channel mix and concentration on green products (Cinturato P7 and Snowcontrol II) in the Consumer and core markets of the Industrial segments, and the reduced costs of raw materials should result in slightly better profitability than in 2008, with a more difficult start in the first half of the year (particularly the first quarter) and a recovery in the second half of the year.