Financial Overview

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Net Sales	757.9	667.9	13.5	1)
Operating Income	129.9	106.9	21.5	-
Automotive Segment
Sales	267.2	206.2	29.6	2)

Factors
1) Net Sales
-In the fiscal year ending December 2013, the Company's net sales increased 13.5% over its 2012 figures to USD 757.9 million. The increase in sales was due to a positive USD 66.0 million impact from business acquisitions, along with growth in the Company's Electronic and Automotive segments, which was slightly offset by lower sales in the Electrical segment.

2) Automotive Segment Sales
-Sales in the Company's Automotive business segment rose by 29.6% compared to 2012 to USD 267.2 million. Business acquisitions in 2013 contributed to this growth by adding USD 41.9 million in sales. Other contributing factors to the increase in sales included growth in passenger vehicle fuses, growth in commercial vehicle products, and favorable currency effects.

Acquisitions

-The Company completed the acquisition of Hamlin, Inc. from Key Safety Systems for USD 144.4 million. Hamlin provides sensor technology to the automotive, electronics, and industrial markets with its primary facilities in the US, UK, China, and Mexico. In 2012, Hamlin's sales were approximately USD 76 million. (From a press release on May 31, 2013)

Outlook

-The Company expects its sales in the first quarter of 2014 to be between USD 195 million and 205 million, a 17% growth compared to the first quarter of 2013. The Company also expects moderate growth in its Automotive segment in 2014.

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	24.4	21.2	19.4

R&D Facilities

-The Company has research and development facilities in the US, Canada, Mexico, Germany, China, the Philippines and Taiwan.

Product Development

Transient Voltage Suppression (TVS) Diode
-The Company introduced its TPSMA6L Series of Transient Voltage Suppression (TVS) Diodes. This new series, which is AEC-Q101 qualified, can provide secondary transient voltage protection from transients induced by load dump and other transient voltage events for automotive electronic control units, sensors, entertainment systems, and other applications. The SMA device's low profile DO-221AC package is less than 1.1 millimeters high, but offers the same peak pulse power dissipation (PPPM) rating (600W) as standard SMB devices. (From a press release on January 24, 2013)

Capital Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Total	35.0	22.5	17.6

-The Company expects to spend between USD 35 million and 40 million for capital expenditures in 2014, primarily to support volume increases and new product introductions.