Financial Overview

(in million CHF)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Net Sales	2,053.3	1,940.9	5.8	1)
Net Profit	36.2	29.6	22.3	-

Factors
1) Net Sales
-In 2013, the Company's net sales increased by 5.8% over the previous year to CHF 2,053.3 million. The Company was able to exceed market growth in all regions due the supply of above-average successful vehicle models as well as significant gains in market share.

Restructuring

Sale of subsidiary in Italy
-The Company sold its subsidiary, Autoneum Italy S.p.A., to the German industrial holding company mutares AG. By selling its Italian subsidiary, the Company has reduced the number of production sites in Western Europe by four to a total of 15. Autoneum Italy S.p.A. employs approximately 730 employees, 80 of which at its Italian headquarters in Leini and 650 in its plants in Desio, Pignataro, Santhia and Vicolungo. In 2012, the company generated CHF 132 million (EUR 107 million) in sales. In addition, the Company is considering closing its plant in Dieppe, France and relocating activities to other European Autoneum sites. (From a press release on July 23, 2013)

Joint Ventures

-The Company acquired a 25 percent stake in an existing joint venture from its partner Nittoku. Wuhan Nittoku Autoneum Sound-Proof, the joint venture now operated by Nittoku, Autoneum and their Chinese partner Guangdong TGPM Automotive Industry Group, has maintained a production site in Wuhan, Hubei Province, for supplying Japanese automobile manufacturers since 2011. Due to the demand of automobile manufacturers active in the region, there is an opportunity to supply non-Japanese suppliers with components for acoustic and thermal management in the future. Approximately 200 employees produce dampers, inner dashes, hoodliners, outer dashes, and other insulating products at the Wuhan plant. Due to the high production volumes, an expansion of the 7,500-square-meter production area is planned for 2014. (From a press release on December 12, 2013)

R&D Expenditure

(in million CHF)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	64.4	66.4	58.2

-Research and development expenditures in 2013 and 2012 focused on the development of acoustic solutions, underbody components and carpets for new models and customer specific requests from automobile manufacturers in Europe, America and Asia.

R&D Structure

-List of R&D facilities

Switzerland	Winterthur (HQ)	-Acoustics Center -Center of Excellence
	Sevelen	-Development Center
France	Aubergenville	-Acoustics Center -Development Center
Germany	Rossdorf-Gundernhausen	-Acoustics Center
Poland	Katowice	-Development Center
USA	Farmington Hills, Michigan	-Acoustics Center -Development Center
	Chicago Heights, Illinois	-Development Center
	Tinley Park, Illinois	-Acoustics Center -Development Center
Brazil	Sao Bernardo do Campo	-Acoustics Center -Development Center
China	Shanghai	-Acoustics Center -Development Center
Japan	Kita-ku, Tokyo (Nittoku)	-Acoustics Center
	Shizuoka (Nittoku)	-Acoustics Center

Product Development

Rotating Injection Fiber process
-The Company is able to manufacture felt blanks for bulkhead and floor components in vehicles using its newly defined Rotating Injection Fiber process, which offers significant weight reductions together with improved acoustic performance. The IFP-R2 production system based on the Rotating Injection Fiber process has been newly designed according to the optimized manufacturing procedure and has improved environmental performance. (From a press release on November 5, 2013)

Damping product
-The Company developed AUTYL, a damping product which can be used in numerous body areas and provides a noticeable increase in the acoustic comfort level in vehicles. The new product provides an optimal combination of high damping capacity and light weight and is suitable for a variety of applications, including on the body shell and after painting. Automotive manufacturers are thus given flexibility in choosing when the product is assembled in the vehicle production process. Thanks to its excellent adhesive properties, the damping solution can be applied to flat and shaped, vertical, or horizontal body parts, such as the front wall, the body or the wheel wells. AUTYL is already currently in use by German vehicle manufacturers. (From a press release on August 26, 2013)

Theta-FiberCell material
-The Company developed new Theta-FiberCell technology for engine encapsulation which helps store heat for a relatively long period and reduces CO2 emissions during a cold start. Depending on the customer's requirements, the Company uses Theta-FiberCell for body- or engine-mounted encapsulations. The porous fiber-foam solution absorbs noise and ensures thermal stability. In a test conducted according to the NEDC (New European Driving Cycle) standard, the Company was able to show that the temperature of a middle-class vehicle after twelve hours of being stationary was about 6 degrees Celsius higher with Theta-FiberCell encapsulation than without the insulation. Each increase of 6 degrees Celsius in the oil temperature results 3 less grams of CO2 emitted per kilometer driven. (From a press release on June 24, 2013)

Technical Alliance

-Toyota Boshoku Corporation has developed improved soundproof technology for interior components with the Company and Nihon Tokushu Toryo Co., Ltd. The joint venture started in July 2012. The Company and Nihon Tokushu Toryo combined their expertise to improve the clarity of conversations among passengers in a moving vehicle by 20%. The companies are committed to developing soundproof components that reduce engine and wind noise in the passenger compartment that result from the addition of electric-power assist technologies. (From an article in the Nikkan Jidosha Shimbun on Jun 19, 2013)

Capital Expenditure

(in million CHF)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	80.7	75.3	75.3

-The Company's capital expenditures in 2013 were primarily directed towards capacity expansion in growth markets, new customer programs, and the optimization of production infrastructure.

Investment Outside Switzerland

<Mexico>
-The Company announced that it was working with its Japanese partner Nittoku in the construction of a new UGN facility in Silao to support the expansion initiatives of Japanese customers in Mexico. Production of acoustic and thermal management components in the 60,000 square foot facility was slated to begin towards the end of 2013. The Company already has a facility in Hermosillo, Mexico, which mainly supplies parts to US car manufacturers. (From a press release on April 9, 2013)

<Russia>
-The Company announced that it founded a subsidiary, Autoneum Rus LLC, and a new plant in Ryazan, Russia. The plant produces acoustic and thermal management components for automobile manufacturers in Russia. Series parts production in Ryazan was scheduled to begin in the fall of 2013. Workforce figures at the new plant were estimated to reach 200 employees by 2017. (From a press release on February 19, 2013)