Financial Overview

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Factors
Sales	3,244.0	3,090.5	5.0	1)
Operating profit	164.5	142.1	15.8	-

Factors
1)
-Sales were up 5.0% for the year ended December 31, 2014. Sales were favorably impacted by an increase in volumes in the North America, Europe and Asia Pacific segments. In addition, the Jyco acquisition, which was completed July 31, 2013, contributed to incremental sales.

Divestitutes

-Cooper-Standard Automotive Inc., a subsidiary of the Company, sold its automotive thermal and emissions product line to Halla Visteon Climate Control Corp. in a cash transaction valued at USD 46million. The transaction was announced by both companies in June 2014. Products sold include exhaust gas recirculation modules (EGRs), electronic coolant pumps and valves, electronic wastegate actuators and electronic throttle bodies. (From a press release on August 1, 2014)

-In the fourth quarter of 2014, the Company completed the sale of its Australian business to allow the Company to focus resources on its four core product groups.

Acquisitions

-The Company announced it has agreed to purchase an additional 47.5 percent of Huayu-Cooper Standard Sealing Systems Co., Ltd., its joint venture with Huayu Automotive Systems Co. Upon completion, the Company will become the 95 percent equity owner of the business, while 5 percent will be retained by the Shanghai Zhaotun Collective Assets Managing Co. This acquisition is anticipated to close in the first quarter of 2015. The 2013 sales of Huayu-Cooper Standard Sealing Systems, on a combined basis, were USD 187 million. Following the closing of this acquisition, the Company will own nine manufacturing facilities and two technical centers in China. (From a press release on September 4, 2014)

-In the fourth quarter of 2014 , the Company acquired the remaining 49% equity interests of Fonds de Modernisation des Equipementiers Automobiles (FMEA) interest in Cooper Standard France, a body sealing, anti-vibration systems and low pressure hoses joint venture, for cash consideration of USD 18.5 million.

-In the fourth quarter of 2014, the Company acquired Cikautxo Borja, S.L.U, a manufacturer of heating and cooling hoses, for cash consideration of USD 3.4 million.

Joint Ventures

<China>
-The Company announced that it is forming a joint venture with Inoac Corporation expanding the reach of the Company's fluid transfer systems products in the Asia Pacific automotive market. Upon closing, expected in the third quarter of 2014, the Company would own 51 percent and Inoac would own 49 percent of the joint venture named Cooper Standard Inoac Pte. Ltd. The focus of the first phase of the joint venture will be based in China with production expected to begin in the third quarter of 2015. Expansion into additional countries is planned to follow. Combined, the two companies currently operate more than 50 plants throughout the Asia Pacific region. Key products for the new joint venture are expected to include low pressure hose and transmission oil cooler lines for radiator, emissions, vacuum brakes, turbo chargers, heater, air conditioning and power steering applications. (From a press release on July 31, 2014)

R&D Expenditures

(in million dollars)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	102.3	103.5	94.2

R&D Structure

-The Company operates 19 design, engineering, and administration facilities throughout the world.

New R&D Center

-The Company opened its new Asia Pacific Technical Center in Shanghai, China. The Company's Asia Pacific headquarters will also relocate from Kunshan, Jiangsu Province, China to the new Shanghai facility. The new Asia Pacific Technical Center and headquarters covers 762 square meters with 55 employees who support the entire region's customer base. The opening of the Asia Pacific Technical Center is another example of the Company's global expansion efforts to support its automotive customers around the world. In June 2014, the Company opened a 19,200 square meter facility in Sremska, Serbia to manufacture sealing systems in the European region. Other recent expansions include sealing production in Aguascalientes, Mexico and fluid transfer and fuel and brake delivery systems in Fairview, Michigan, USA, both in the North American region. (From a press release on July 24, 2014)

Capital Expenditure

(in million dollars)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
North America	68.1	71.6	58.3
Europe	77.0	72.9	41.4
South America	11.8	13.1	17.4
Asia Pacific	21.3	20.3	7.1
Eliminations and other	13.9	5.4	3.9
Total	192.1	183.3	128.1