Financial Overview

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	1,175.2	1,127.2	4.3	1)
EBITDA	236.3	215.2	9.8	-
OE Segment
Sales	951.0	906.6	4.9	2)

Factors
1) Overall
-Revenue grew by 4.3 % to reach EUR 1,175.2 million. It's due to strong demand in North America and Asia more than compensated for an poor set of market figures for car sales in Western Europe.

2) OE Segment
-Sales revenue grew by 4.9 % to EUR 951.0 million. This was made possible by a series of new products roll-outs and consistently strong demand from both Asia and North America. Sales were driven by growing customer demand for turbo-charger gaskets, automatic transmission components, shielding parts and lightweight plastic modules. Growth was also driven by new products roll-outs in the field of exhaust gas purification systems.

-E-Mobility division: In 2013, revenue rose by 27.3 % to EUR 8.4 million (In 2012, EUR 6.6 million).
-In November 2013, the Company's cell contact systems of lithium ion batteries launched for BMW's first all-electric vehicles.

Acquisitions

-In July 2013, the Company announced that it has acquired an additional 24.99 % interest in Hug Engineering AG, a Switzerland-based exhaust aftertreatment system manufacturer. The purchase price for the interest just acquired amounts to approximately CHF 5.7 million (EUR 4.6 million). The Company now holds a 93.67 % interest in the Swiss subsidiary. Hug diesel particulate filter systems will be combined with the ElringKlinger CleanCoat coating material for soot reduction and will be used within the commercial vehicle sector.

Acquisition of 100 % ownership

<Korea>
-In February 2013, the Company has announced that it acquired the remaining 50 % interest in its joint venture ElringKlinger Korea Co., Ltd. in Changwon, South Korea, effective from February 1, 2013. In 2012, the Korean joint venture generated sales revenue of approximately EUR 13 million. The joint venture produces cylinder-head and specialty gaskets, heat shields and plastic housing modules. In June 2013, ElringKlinger Korea Co., Ltd. held a groundbreaking ceremony at its new plant site in Gumi, Gyeongsangbuk-do. Over the next five years, the company is going to invest approximately KRW 100 billion in this new factory, which will have production lines to make engine gaskets and cylinder heads. The plant is scheduled to be completed by the end of 2013 and start mass-production in early 2014.

<South Africa>
-On January 1st 2013, the Company acquired the South African subsidiary to 100 % (former shares 51%). The company name has been changed to ElringKlinger South Africa (Pty) Ltd.

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	57.1	57.3	49.9
% of Sales	4.9	5.1	4.8

R&D Structure

-In 2013, the Company pressed forward with the development of new applications for all traditional product groups (metal gaskets, shielding parts and plastic housing modules). In the Exhaust gas purification and E-mobility divisions, completely new concepts and processes were developed; some of them have already resulted in marketable new products.

-As of Dec. 31, 2013, the number of people employed in the Company's R&D-related departments was 498 (2012: 425).

-R&D locations are mainly concentrated to Germany and Switzerland. However, to reflect the increased number of development projects from Asia, the Company has established R&D center in Suzhou, China adding to the one in Changchun, China.

Product Development

Exhaust gas purification system
-Newly developed Hug filter system was accredited by the Californian Air Resources Board (CARB). In California, buses and trucks with a gross vehicle weight rating of more than 6.34 metric tons have to be retrofitted with diesel particulate filters. The Hug's filtering system consists of an oxidation catalyst and diesel particulate filter with ElringKlinger's metal CleanCoat coating. In 2013 alone, 1,500 systems were ordered.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	127.2	114.4	121.6

-In 2013, the investment was mainly done for the establishment or expansion of manufacturing capacity for new series production.

Capital Expenditure by location

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Germany	52.8	66.1
Rest of Europe	28.1	19.4
NAFTA	19.4	8.5
Asia-Pacific	19.5	17.4
South America and others	7.5	2.4
Total	127.3	113.9

• In Sevelen, Switzerland: purchase of land and building for thermal and acoustic shielding components.
• In Suzhou and Changchun, China: purchase of land and a significant expansion of production and additional new machinery and equipment for shielding technology, and elastomer technology.
• In Korea, construction of new plant .
• In Mexico: introduction of production line of plastic housing modules.