Throughout the 2006-2007 financial year, our railway business continued to develop around customer satisfaction. The needs and demands of car builders and operators have not stopped growing. We have prepared for this trend by embarking on a quest to improve our industrial performance. The stakes are high: proving that Faiveley is capable of anticipating its customers’ expectations.

Our goal is to bring together our group’s resources and know-how in order to develop the high performance solutions that our customers expect.

The Group certainly has an international dimension, but it must apply a global approach from the moment an order is received right through to the engineering phase, to commissioning, sharing resources globally, making best practices universal, using common guidelines, and mobilizing and circulating expertise.

In this context, and more than ever before, we must establish an effective management structure that will allow us to cost-effectively serve our customers.

In our industry, we face a number of challenges, including pursuing excellence, ensuring that our equipment is as durable as possible, and meeting safety standards.

Our external growth is also a sign of our dynamism. The acquisition of the Espas Group strengthened our electronic product line and brought new life into our research departments.

We are fortifying our presence in the Chinese market to take part in its extremely rapid growth, positioning ourselves to achieve highly ambitious goals.

With growth of 8.9% (excluding ESPAS), 2006-2007 has been a growth year for the Faiveley Group.

An impressive symbol of our performance was Faiveley’s contribution to breaking the world speed record, when the TGV Est reached a speed of 574.8 kilometers per hour using a train equipped with our most sophisticated systems: pantographs, brakes, doors, air conditioning, and on-board electronics. This feat is a tribute to our teams’ determination and the quality of their work.

Our shareholders will understand the reason why they have entrusted us: we create value.