Recent Years

Financial Overview

-Revenues for FY ended December 2013 was EUR 2,486 million, and it's increased by 2.0% year-on-year.
　Revenues by 3 core business segments are;

• Sunroof & Components (Sliding and panorama roofs): 69%
• Thermo & Comfort (Heating and air-conditioning systems): 20%
• Convertibles (Convertible roofs): 11%

-In FY ended December 2013, the Company sold more than 10 million sliding and panorama roofs for the first time.

-EBIT margin for FY ended December 2013 was EUR 126 million, which is 5.1% of the revenues, and it's almost the same level as previous fiscal year.

-In FY ended December 2014, the Company expects sales growth of 4.0% year-on-year.

Contracts

-In December 2013, the Company announced that it is producing a polycarbonate (PC) panel at its plant in Schierling, Germany for supply to China. The PC panel is used at the Guangzhou plant to make the panorama roof for the Volkswagen "Golf 7". The roofs are then shipped to FAW-VW in Foshan and assembled in cars for the Chinese market.

-In October 2013, the Company announced that It will supply Its Electric High-Voltage Heater (HVH) to Volvo, starting in 2015. This is the Company's solution to the challenge of heating the interior of hybrid and electric vehicles whose engines do not produce enough waste heat to warm up the interior.

-In September 2013, Webasto-Edscha, the convertible business unit of the Company, developed and manufactures soft tops for the Jaguar "F-Type" two-seater sports car. The car's soft-top can be opened fully automatically within 12 seconds at speeds of up to 50 km/h. With the roof either open or closed the two-seater offers a boot volume of 196 liters. The convertible roof system for the "F-Type" Jaguar, which has been available on the market since May 2013, was developed at the headquarters of Webasto-Edscha in Hengersberg. The soft-tops are assembled in Coventry, Great Britain.

-In March 2013, Webasto-Edscha, the convertible business unit of the Company, develops and produces the soft top for the VW "Beetle Convertible", which will be on the European market starting spring 2013. The hood can be easily opened within 9.5 seconds by pressing a button while driving at a speed of up to 50 km/h. Unlike the previous model, which was equipped with a hydraulic drive, the movement of the soft top in the "Beetle Convertible" is controlled by an electric drive, which fits compactly into the roof system. Compared with traditional hydraulic drives, this results in a weight saving of more than 20%.

Acquisitions

-In October 2013, the Company announced that the Turkish subsidiary, Webasto SPM, has signed an asset purchase agreement with Gaspa Otomotiv Sogutma - the partner for Webasto Diavia cooling products in Turkey. The Company expects this purchase to become effective within the next months. As a result of this acquisition, customers will benefit from a broad product portfolio of heating and cooling solutions from one single source. The main markets are mini- & midi bus, off-highway and special vehicles.

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	191	175	182
Gross in % of sales	7.7	7.2	7.9

R&D Facilities

-In July 2013, the Company celebrated its topping out ceremony for the new administration and development building in Hengersberg, Germany. In an effort to make the development of convertible roofs even more efficient, the automotive supplier will be moving into a new building very close to the existing site. As a result, Development, Prototype Construction and Testing will be brought together under one roof. Around 350 employees are slated to move into the new building upon construction completion at the end of 2013.

New Products

Heating systems for EVs, HVs, and PHVs
-In July 2013, Webasto Thermo & Comfort Japan Co., Ltd., a Japan unit of Germany-based Webasto SE, announced that it's going to sell heating systems for EVs, HVs, and PHVs in Japan. It will present to Japanese automakers a highly efficient heating system developed by Webasto Thermo & Comfort SE in Germany, planning to start delivery in 2016-2017. Because heaters of electrified vehicles are powered by the vehicle's battery system, switching to a more efficient heating device leads to an extended EV range. The Company's high-voltage heater (HVH) supporting voltage between 250V and 450V contains a thin (less than 1 millimeter) film element to heat the water in the system. Mass production of the HVH is scheduled to begin in Germany in 2015 for delivery to European automakers. In Japan, the Company is looking to introduce the HVH not only to manufacturers of electric passenger vehicles, but also to bus and truck manufacturers that are likely to be releasing new electric models. Additionally, it will promote its use on gasoline engine vehicles as well, underlining its fuel saving attributes. The Group is mulling the possibility of designing products for the Japanese customers locally in Japan.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	155	136	81
Net in % of sales	6.2	5.6	3.5

Investments in Germany

-In December 2013, the Company announced that It has invested EUR 45 million (approximately USD 61 million) to expand its technology leadership in polycarbonate components. A new production hall (about 4,500 square meters/48,438 square feet) was built at the Schierling site. As a result, these plant extensions assure a production capacity of one million components annually. Besides fixed roof elements for the Smart, the Company also produces panels in Schierling for various car manufacturers. These low-weight panels surround the front and sides of sliding and panorama roofs. The Company makes the components for roof systems exclusively at the Plastics Competence Center in Schierling.

Investments Outside Germany

<China>
-In November 2013, the Company announced that its new plant to produce panorama roofs and sunroofs was inaugurated at its Chongqing location in China. With an area encompassing close to 16,000 square meters (approximately 172,200 square feet), the newly constructed site represents a total investment of EUR 6.4 million (more than USD 8.7 million). Medium-term planning calls for Chongqing to be the site of annual production of up to 700,000 roofs by 2016. By 2014, two additional plants in Wuhan (Hubei Province) and Shenyang (Liaoning Province) will be opened, totaling ten sunroof plants in China.