"Our growth is faster than the market's. We should extend our leadership position. We are supported by a dynamic market and united by a common ambition."

This year, we took full advantage of market growth driven by developing countries investing in infrastructure and rolling stock, in response to increasing mobility. Other driving forces include: worldwide urbanisation; modernisation programmes in developed countries; state investments in rail to stimulate the economy; and an overall preference for environmentally friendly forms of transport.

In this favourable context, Faiveley can and must solidify its position as the chosen supplier for rail manufacturers and operators worldwide by offering the market's widest range of products and systems. To take our leadership to the next level, we must be driven by our ambitions. We are already number one for most of our products, and we can become number one wherever we are number two. We are a partner that brings added value and competitive advantages to our customers. We should thus be able to supply electromechanically based equipment with additional electronic added value.

The Faiveley Group is present in 22 countries and operates on the global rail-equipment market. From this privileged position, it provides added value to its customers from its centres of competence and engineering departments.

In making acquisitions over the financial year, we sought to increase our technical added value:

The acquisition of Carbone Lorraine's sintered-materials business is in line with this objective and will allow the Faiveley Group to expand its presence in high-energy brakes.

The acquisition of Ellcon National in the United States provides not only a credible and powerful industrial base in North America, but also entry into the brake-equipment market in the freight segment, where Faiveley was absent.

Technical gains aside, the Group aims to better exploit the organic growth vectors already within reach:

The common aim with MTZ Transmash to create a joint venture in Russia comes in response to demand on the Russian market for rail equipment.

Other areas of growth that will allow the Faiveley group to strengthen its position are Romania, Asian countries where the Group has no presence as yet, and new customers to target.

But there are ways to help the Group progress internally as well. For example innovation, which should be our driving principle, and the daily improvement of our processes and best practices.

High salaries in Western Europe, and the need to achieve good results, have made creative thinking a duty at all levels. Our Moving Forward programme for data pooling worldwide between all units is a major project. It demands deep changes in operations and working methods to optimise team work. It will lead to talent sharing by our teams abroad. Withholding talent and information run counter to the multicultural task that lies before us and guarantees our future.

The Faiveley Group will continue to forge ahead thanks to its strong foundations, sound financial structure and the unflagging support of its shareholders.

We know that we can count on both our shareholders and on all of our Faiveley teams.

Robert Joyeux Chairman,
Management Board of Faiveley