Financial Overview

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factors
Overall
Sales	3,809.0	3,701.5	2.9	-Strong sales of premium cars in China and USA. -Favorable impact of takeover in all shares of Daekyeung (Currently LEONI Wiring Systems Korea).
EBIT	235.8	237.1	(0.5)	-
Wiring Systems Division
Sales	2,206.4	2,023.8	9.0	-Higher sales volumes of wiring systems and cable harnesses for passenger cars and commercial vehicles. -Gains with electromechanical components for vehicles with electric drive.
EBIT	134.5	146.2	(8.0)	-
Wire & Cable Solutions Division
Sales	1,602.6	1,677.7	(4.5)	-Unfavorable impact of the macroeconomic and sector-specific conditions; and the lower price of copper.
EBIT	101.3	90.9	11.4	-

Contracts

-The Company announced that it has been appointed as "Core Supplier" by PSA Peugeot Citroen. The Company has been delivering harnesses and wiring systems to Peugeot and Citroen vehicles since 1975. Today, around 8.000 employees are developing and producing the products in several sites in France, Romania, Russia, Morocco and Tunisia, which are shipped to PSA Peugeot Citroen locations in France, Spain, Austria, Russia and Slovakia. Currently, the Company is supplying wiring systems to ten passenger car models and standard harnesses for engines and batteries to the Group. The equipment of the Peugeot "207", "307", "C5", "C4" and the new "208", as well as new premium cars Citroen "DS4" and "DS5" are among the projects for the European market. The Company has been nominated to supply components for the Brazilian market starting in 2013. The harnesses will be produced in the recently extended facility in Itu and shipped to the PSA Peugeot Citroen plant in Porto Real. As for China, the Company will develop and produce harnesses in its plant in Shanghai for PSA new Joint Venture with Chang'an (CAPSA). Finally, the new Peugeot "408" will be equipped with complete wiring systems by the Company, produced in Naberezhnye Chelny, Russia. (From a press release on June 5, 2012)

Wiring Systems Division
<Green technology>
-The Company received an order for cable harnesses for the range of low-emission engines of a European volume manufacturer that are conform to the new Euro 6 standard.

<Business Unit Electromobility>
-The Business Unit secured crucial development and series production contracts including high-voltage battery cable harnessed and wiring systems for a small car as well as high-voltage wiring systems for all the platforms of sports car models by a major German automotive group.

-The Business Unit received the contracts of charging cables for a new electric vehicle from a German premium car manufacturer.

<Business Unit Components>
-The Business Unit succeeded in obtaining a new contract with a German premium car manufacturer. This covers the supply of distributor boxes for the next small car generation.

Acquisitions

-In May 2012, the Company set up its Business Unit Connectivity with the aim of targeted expansion of its business to include plug and connector systems in the low and high voltage segments. For this reason, the Company took over a team of specialists as well as some of the assets of FCT electronic GmbH, based in Munich, Germany.

-In Jan. 2012, the Company made Daekyeung T&G Co., Ltd., which manufactures wiring systems based in South Korea, a wholly-owned subsidiary and merged it into LEONI Wiring Systems Korea Inc. Daekyeung, which was fully consolidated for the first time in 2012, generated sales of 120.5 million euros in the year under report. The South Korean wiring systems specialist manufactures at four facilities in China as overseas plants and supplies both local and foreign car manufactures that have bases in the area.

Plant Closure

Wiring Systems Division
-In 2012, a plant in Tunisia was closed and wiring systems production in this region was concentrated down from four to three locations. In addition, the Company prepared to close a facility in Poland.

Awards

-Major awards in 2012 are as follows:

Division / Facility	Awarding Company	Awards
Wiring Systems Division / Facilities in France, Morocco, Romania, Russia and Tunisia	PSA Peugeot Citroen	Core Supplier
Wiring Systems Division / Trencin facility, Slovakia	GM	GM Supplier Quality Excellence Award
Wire & Cable Solutions Division / LEONI Cable S.A. de C.V., Mexico	Yazaki	Green Supplier of the Year

Outlook for FY ending Dec. 31, 2013 (Estimated by the Company)

Overall
-The Company expects its consolidated sales in 2013 to be 3,700 million euros and its EBIT to be 170 million euros.

-To take the globalisation of its business further forward, the Company is setting up not only sales offices, but increasingly also production facilities in key markets. The focal area of growth will be the BRIC countries including South Korea. The target is to increase sales in these countries to about 1 billion euros by 2016.

Wiring Systems Division
-In 2013 the Wiring Systems Division is operating in an environment characterised by moderate growth and fierce competition, and is likely to generate external sales of about 2.1 billion euros.

-The total amount of business will continue to shift in the direction of the emerging markets in the BRIC countries as well as in the NAFTA area. Among other places, the focus will be on targeted development of the Indian market.

Wire & Cable Solutions Division
-The Wire & Cable Solutions Division is expected to generate external sales in 2013 of about 1.6 billion euros. Particularly its business involving special automotive cables in China and USA is likely to pick up. In addition, the new facility in India, which will commence production in March 2013, will also make an initial contribution to sales.

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Total	93.6	84.1	75.9

R&D Employees

	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Total	1,329	1,042	1,116

R&D Facilities

Wiring Systems Division
-Wiring Systems Division operates development centers in China, Germany, France, the United Kingdom, South Korea and the United States.

-The Division's head office department in Kitzingen also does basic research and provides project-related support.

-The Company expanded its know-how in the segment comprising plugs and connector systems for its new Business Unit Connectivity by taking over the development operations of FCT electronics GmbH.

Wire & Cable Solutions Division
-Wire & Cable Solutions Division operates development centers mainly in Germany and Switzerland.

-In addition there is the division's Research & Development department, which coordinates the work and runs innovation and application-oriented development projects.

Product Development

High-voltage power distributor
-Together with Continental AG, the Company developed a high-voltage power distributor for vehicles with electric drive in 2012. This distributor box can be set up flexibly and application-specifically, thereby shortening development times and reducing system costs. It is currently being tested in a prototype vehicle and is ready for deployment in series production.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Wiring Systems Division	98.7	76.3	57.5
Wire & Cable Solutions Division	49.5	53.7	43.4
Other	6.0	7.4	2.2
Total	154.2	137.4	103.1

-The Company announced that it more than doubled its capital expenditure in the first quarter of 2012 to 55.1 million euros (previous year: 21.9 million euros) based on the major demand from the BRIC countries. Acquisitions and investments accounted for 25.3 million euros (previous year: 2.3 million euros), most of which was spent on purchasing the other half of the South Korean joint venture Daekyeung. Spending on property, plant and equipment as well as intangible assets rose by more than 51 percent to 29.7 million euros (previous year: 19.6 million euros). Among other projects, the Company set up or expanded wiring systems facilities in Brazil, Russia, Eastern Europe and North Africa. Furthermore, the Company boosted its capacity for production of automotive cables in China, Mexico and Slovakia as well as for production of infrastructure cables in Mexico. (From a press release on May 15, 2012)

Investment Outside Germany

Wiring Systems Division
<Romania>
-In 2012, the Company commissioned its first automated line for the production of dashboard cable harnesses at its facility in Bistrita, Romania. The Company thereby reached a milestone in rationalising what was until then mostly manual production of wiring systems.

<Brazil>
-The Division expanded the facility in Brazil, which previously produced only cables harnesses for commercial vehicles, to include a line for producing wiring systems for passenger cars.

<Russia>
-The Company set up a new, larger production facility in the Russian automotive region of Nizhny Nobgorod near Moscow and relocated its existing operations to it.

Wire & Cable Solutions Division
-The Division set up its own facility in north of the industrial metropolis Pune, one of India's three major automotive clusters. The plant went into operation at the end of 2012. Initially Pune plant will product automotive cables for the car industry. Later in 2013, production will be expanded to include cables for large petrochemical plants, railway engineering as well as the solar industry.

-The Division also strenghened its presence in the NAFTA area. At its facility in Mexico, the Company set up a line to produce special automotive cables.

Outlook of Capital Expenditure for FY ending Dec. 31, 2013

-The Company expects to spend about 190 million euros as capital expenditure in 2013.

-The Wiring Systems Division will account for about 113 million euros of the total amount. The Company is preparing its production facilities in Asia, the NAFTA area, North Africa and Eastern Europe. Also strategic focuses are as follows:

• The expansion of its facility in Zavolzhye, Russia
• The setting up of an additional plant in China
• The extension of automated dashboard cable harnesses production in Romania
• The updating of the center of expertise in Kitzingen, Germany

-The Wire & Cable Solutions Division will spend about 64 million euros in 2013.