DELFINGEN Industry — Earnings Release 2010

Sep 15, 2010

September 15th , 2010

Results improved highly:

• Operating profit of € 3.2 M compared to a loss of € 0.5 M on the 1st half-year 2009 • EBITDA of € 5.6 M

In millions of euros	1st H-Y 2010	2nd H-Y 2009	1st H-Y 2009	1st H-Y 2010 vs 1st H-Y 2009
Sales	54.2	43.7	33.7	+61%
Operating profit % of sales	3.2 5.9%	3.1 7.1%	(0.5) -1.6%	na +7.5 pts
Net profit of continued activities % of sales	2.2 4.1%	1.4 3.3%	(1.3) -3.7%	na +7.8 pts
Consolidated net profit % of sales	2.2 4.1%	1.0 2.3%	(1.5) -4.6%	na +8.7 pts

The automotive production went on improving during the 1st half-year 2010 (+35% compared to the 1st halfyear 2009) with a level of activity that remained sustained on the 2nd quarter 2010. Compared to the 1st half-year 2009, the automotive production increased by 67% in North America and by 21% in Europe and Brazil.

Taking benefit from that favorable environment, the Delfingen Industry Group figures are over the market and show a sales increase of 61% compared to the 1st halfyear 2009.

The sustained growth went with the operating result improvement: Delfingen Industry operating profit is + 5.9% of sales. The operating profit of the 1st half-year 2010 is € 3.2 M, progressing significantly compared to 2009:

•€ - 0.5 M on the 1st half-year 2009;

•€ + 3.1 M on the 2nd half-year 2009.

This recovery is the result of:

• efforts in productivity and actions held to reduce the breakeven point;

• the important leverage effect coming from the strong sales growth.

The net profit of continued activities reached € 2.2 M i.e. +4.0% of sales, to be compared with -3.7% on the 1st halfyear 2009, and to 3.3% on the 2nd half-year 2009.

The Group Net Financial Debt decreased by € 3.9 M: it reached € 24.3 M on June 30th, 2010 against € 28.2 M on December 31st, 2009. This decrease is linked to:

• the EBITDA improvement: € +5.6 M

• the integration of the Delfingen Group current account in net worth of € 3.0 M, from the capital increase that happened at the end of June 2010.

In this context of reinforcing the financial structure and of a very sensitive improvement of results, the financial ratios improved strongly:

• "Gearing"(Financial debt on net worth): 76% on the 1st half-year 2010 to be compared to 128% on the 1st half-year 2009.

• Leverage ratio (Financial Indebtedness on EBITDA): 2.4 against over 4.5 on December 31st, 2009.

Delfingen Industry expects, for the second half-year 2010: In North America, an automotive production growth still increasing; in Europe, a production decrease and the increase of its market parts.

In this context, Delfingen Industry still wants to reach its objectives of reducing its financial debt and of an operating margin recovery.

The leading company in electrical wiring protection and fluid transfer solutions 1,000 employees in the world Euronext Paris, C compartment - ISIN code: FR 0000054132 - Mnemonic: DELF Next press release: 3rd quarter sales 2010 - 11/10/2010 Contact: Mrs Dominique Monange - (+33) (0)3 81 90 73 00 - contact@delfingen.com