Financial Overview

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factors
Overall
Revenue	2,826.5	2,590.5	9.1	1)
EBITDA	140.4	182.4	(23.0)	-
Exhaust Technology
Revenue	2,396.2	2,141.6	11.9	2)
Climate Control Systems
Revenue	430.4	448.8	(4.1)	3)

Factor
1) Overall
-In 2012, the Company's revenue increased by 9.1% year-on-year. The Exhaust Technology division made the most important contribution to this rise.

2) Exhaust Technology
-In 2012, the revenue grew by 11.9% year-on-year. The largest share in this came from the commercial vehicles segment in the U.S.
-In the passenger vehicle segment, the positive development of business is mainly attributable to the fact that German premium manufacturers, the Company's core customers, were less strongly impacted on by the debt crisis in Europe.
-Products meeting the requirement of EPA2010 (Emission standard for commercial vehicles in North America) contributed to the revenue in 2012. Further in 2013, revenue from products developed for Euro 6 (Emission standard for vehicles in Europe) is expected.

3) Climate Control Systems
-Climate Control Systems division reduced revenue by 4.1% year-on-year. Unit sales of fuel operated vehicle heaters were significantly down.
-On the other hand, revenue of electrical heaters made significant increase, especially in North America and Central America, and revenue increased by 58.2% year-on-year. Main products of electric heaters are PTC auxiliary heaters and heaters for battery-powered vehicles.

-Revenue for bus air-conditioning systems was significantly down year-on-year. As a material portion of revenue is generated in southern Europe, the debt crisis impacted on business development.

-As for Automotive electronics, significant rise in revenue was achieved in the Automotive Controls segment year-on-year. Main products, the On-board power supply stabilization systems, are employed in start-stop systems to prevent a rapid drop in voltage when the engine is restarted. These systems are called from several German car manufacturers.

Contracts

-The Company announced that its subsidiary Eberspaecher Suetrak will equip 270 buses and 150 vans with air conditioners for Saudi Aramco, a national oil company of Saudi Arabia. The AC 644 system will be used in the buses and the AC 413 system will be used in the minibuses. (From a press release on March 15, 2012)

-The Company announced that a PTC heater from its subsidiary, Eberspaecher catem, is featured on Rinspeed's concept car "Dock+Go". The concept vehicle will be presented at the Geneva Motor Show 2012. (From a press release on February 17, 2012)

-The Company announced that it developed the lightweight exhaust system for the Opel "Ampera" 1.4-liter gasoline engine. Eberspaecher catem also provides the "Ampera" with its PTC coolant heater. (From a press release on January 30, 2012)

New Factories

<China>
-Jiading factory (Shanghai) was set up in the second half of 2011. At the beginning of 2012, the Company decided to build up lines for Chinese emission standard for commercial vehicles comparable to Euro 4. Commissioning is scheduled from mid-2013, the start of series production is planned for the end of 2013.

<Russia>
-In 2012, production of passenger vehicle exhaust systems has been ramped up at Tolyatti plant in Russia.

<Europe>
-In 2012, in the new plant in Wilsdruff, series production of the first exhaust systems complying with Euro 6 standard for a German car makers is being launched.

<U.S.A.>
-In 2012, series production of exhaust system for a US car manufacturer started at the Belvidere (Illinois, USA) location.

R&D Expenditure

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Total	134.0	120.1	97.7
% of Revenue	4.7	4.6	5.1

-Research and development expense in 2012 rose by 11.6% year-on-year. In addition to internal expenditure, this figure includes all third-party services for design, CAE (computer-aided engineering), testing and samples.

R&D Facilities

-The Company holds 11 research and development facilities;

• Esslingen, Germany
• Unna, Germany
• Neunkirchen, Germany
• Schwaebisch Gmuend, Germany
• Herxheim, Germany
• Renningen, Germany
• Paris, France
• Gothenburg, Sweden
• Novi, USA
• Pune, India
• Shanghai, China     *Established in 2012.

Joint Development

-The Company has agreed with Robert Bosch GmbH and Deutz AG to restructure their collaboration in the area of diesel exhaust-gas treatment. To this end, the Company and Deutz plan to sell all their shares in Bosch Emission Systems GmbH & Co. KG (BESG) to Bosch. The Company will continue to supply components to BESG, in addition, the Company and Bosch intend to collaborate closely on joint development projects in the area of exhaust-gas treatment technology. Since setting up in 2010, BESG has offered a modular system for treating the diesel exhaust gas of vehicles ranging from construction and agricultural machinery to trucks and buses. Approximately 180 associates work for BESG at three locations in Germany. (From a press release on October 12, 2012)

R&D Activities

Exhaust Technology
-Commercial vehicle solutions for the Euro 6 and Tier 4 emission standards
-Active muffler system to reduce noise generated by exhaust-gas
-Heat recovery system to recover excess heat from the exhaust-system branch, and to convert it into electrical or mechanical energy
-Lightweight construction with custom-designed material or new system designs, which achieves up to 40% weight advantage

Climate Control Systems
-EasyStart Call to start operation of pre-heater using a smart phone
-Refining a diesel-fueled solid oxide fuel cell for commercial vehicles
-Electrical heater for electric vehicles
-Refining bus air-conditioning system
-Start current control (Power network stabilization)
-Electro chromatic auto-glazing, which switches the glass roof of a car to transparent or dark, to control the room temperature

Product Development

Bus air-conditioning system
-The Company announced that its air-conditioning subsidiary Eberspaecher Suetrak developed a new bus air-conditioning system, the AC 136 G4 Central Air, and will present the system at IAA Commercial Vehicles 2012 in Hanover, Germany. Normally, the air-conditioning system delivers cold air via air outlets at the bus windows. However, especially in the summer, the windows are the warmest areas. The new system supplies the cold air via the middle of the vehicle and extracts it via the windows. Alongside this, Eberspaecher Suetrak is presenting the AC 188 air conditioning system in combination with a weight-optimized flat tube condenser as well as its AC 353 G4 in the new narrow version for buses with small roof radii. (From a press release on July 3, 2012)

Capital Expenditure

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Total	114.1	109.5	33.9