Financial Overview

(in million EUR)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	3,701.5	2,955.7	25.2	-
EBIT	237.1	130.7	81.4	-
Wiring Systems Division
Sales	2,023.8	1,634.2	23.9	1)
EBIT	146.2	74.3	96.8	-
Wire & Cable Division
Sales	1,677.7	1,321.5	27.0	2)
EBIT	90.9	56.3	61.5	-

Factors
Wiring Systems Division
1)
-Sales of the Wiring Systems Division in FY2011 increased 24% year-on-year. The Company generated the largest gains in the BRIC countries China and Russia.

-FY2011 sales in China were up 59% year-on-year to 165.2 million euro .

-FY2011 sales in Russia were up more than 100% year-on-year to 38.7 million euro.

-Business in the United States also rose substantially. Here the Company benefited from the dynamic growth in the commercial vehicles sector as well as the mounting significance of the German premium manufactures which we supply.

2)
Wire & Cable Division
-Sales of the Wire & Cable Division in FY2011 increased 27% year-on-year. Performance was especially good in business involving cables and special cables for the automotive industry, which made strong gains in Europe as well as the Americas and Asia thanks to the Company's international footprint.

Acquisitions

-The Company will acquire the remaining 50 percent of the South Korean wiring systems manufacturer Daekyeung T&G Co., Ltd. ahead of schedule effective 1 January 2012. Daekyeung is based in Busan, South Korea, employs in total about 3,500 people and manufactures at three facilities in China. In addition to Penglai and Weihai, Shangdong province, the latest plant is located in Jining, Shangdong province. Since the beginning of this year, the plant has been producing above all for General Motors' Global Compact Platform. The plan is to expand the development centre in Ansan, South Korea which already belongs fully to Leoni. Daekyeung is likely to generate sales of between 130 and 140 million euros in the 2012 financial year. The Company acquired the initial 50 percent of Daekyeung in June 2008. The two companies signed an agreement to cooperate on development of cable harnesses one year before that. To date, the principal customers of Leoni harnesses and wiring systems in the country include General Motors, SsangYong and Volvo. (From a press release on September 5, 2011)

Contracts

Wiring Systems Division
<Passenger vehicle>
-The Company started supplying for the new Mercedes "B-Class", BMW "1 Series", Citroen "DS5", Nissan "X-Train", Chevrolet "Malibu", as well as Opel's Astra Touring and Zafira models.

-The Company supplies  power distributor boxes and fuse components for the Chevrolet "Volt" electric car.

-The Italian maker Fiat ordered cable harnesses for a new generation of Fiat and Chrysler engines.

-The Company obtained the contract for a platform-transcending engine range with the latest emissions technology of the French manufacturer PSA.

-The Company shall be equipping a completely new compact platform with wiring systems for a German premium manufacturer.

<Commercial vehicle>
-European manufacturer has ordered cable harnesses for various engines of a new truck range that will be used worldwide.

-The order from the European commercial vehicle industry involved engine cable harnesses for especially low polluting trucks that meet the Euro-6 and EPA 10 (USA) emission standards and will be launched in 2013.

-The Company significantly expanded its business with a leading German truck manufacturer with an order for engine cables harnesses for a new model.

-The Company will start producing high voltage (HV) wiring systems to the mia electric's microbus mia in the second quarter of 2011. The Germany based car manufacturer is building the vehicle at its production sites in Cerizay, France. mia electric aims at having 5,000 mias on German and French roads from the start of production in June until the end of the year 2011. The company is currently equipping the hybrid cars Chevrolet "Tahoe" and Cadillac "Escalade", and the fuel cell version of Mercedes "B class". Recently, Leoni also won the project to supply high-current components for the new electric-driven Chevrolet Volt.  (From a press release on March 23, 2011)

Outlook for FY2012

Overall
-The Company expects to increase its consolidated sales to between 3.8- and 4.0 billion euro and to generate EBIT of 230- to 280 million euro in 2012. Its South Korean subsidiary Daekyeung will contribute about 130 million euro of the total sales.

Wiring Systems Division
-The Wiring Systems Division is likely to increase its sales further to between 2.2- and 2.3 billion euro and to generate EBIT of 140- to 165 million in 2012. In addition to the consolidation of Daekyeung, numerous new products for the international motor vehicle industry will contribute to positive business performance.

-The Company expects Asia to again show the most dynamic growth. Here the Company will further strengthen our customer relationships above all in the Indian and South Korean markets.

Wire & Cable Division
-The Wire & Cable Division is likely to continue the good business performance this year with sales of between 1.6- and 1.7 billion euro and EBIT of 90- to 115 million euro.

R&D Expenditure

(in million EUR)

	FY2011	FY2010	FY2009
Overall	84.1	75.9	71.1

R&D Employees

(As of Dec. 31, 2011)

	FY2011	FY2010	FY2009
Overall	1,042	1,116	1,008

R&D Facilities

Wiring Systems Division
-Wiring Systems Division operates development centers in China, Germany, France, the United Kingdom, South Korea and the United States.

Wire & Cable Division
-Wiring Systems Division operates development centers mainly in Germany.

Product Development

-The Company developed a round aluminium busbar to connect the battery in cars. The aluminium busbar weighs only 40 to 60 percent as much as the common copper cable. The Company is currently working on the prototypes for the first mass-production contract involving a European manufacturer. The vehicle will probably be launched in 2013. (From a press release on August 2, 2011)

-In 2011, the Company's two divisions worked jointly on developing alternative conductor materials that can, while maintaining the same resilience, be much thinner than conventional copper cables: copper alloys like copper-magnesium, copper-silver and copper-tin make it possible to reduce cross sections from 0.35 square millimeter to 0.22 square millimeter and down to 0.13 square millimeter.

Capital Expenditure

(in million EUR)

	FY2011	FY2010	FY2009
Wiring Systems Division	76.3	57.5	41.6
Wire & Cable Solutions Division	53.7	43.4	37.1
Company's Total Capital Expenditure	137.4	103.1	81.8

Wiring Systems Division
-The Company announced that it opened a new production facility in Jining, Shandong Province, China. The plant will produce wiring systems for the Chinese car market. The overall amount invested totals about 23 million euros. The new facility has more than 25,000 square metres of production area and will employ about 1,600 people when series production commences. The number of employees is to rise to 3,000 in the medium term. The Company obtained several contracts for various model ranges. Three projects, above all for General Motors, will ramp up in Jining until the end of this year. The Wiring Systems Division alone currently has 12 capital investment projects, involving for instance plans for two new facilities in Egypt as well as one each in the Ukraine and Russia. Furthermore, there will be additional production halls in Brazil, Mexico, Morocco, Tunisia and Serbia among other places. After the expansion is completed, the Wiring Systems Division's network will comprise more than 30 production facilities. (From a press release on November 4, 2011)

-The Company opened its first wiring systems manufacturing facility near Pune in India in December 2010. The facility commenced supply of diesel engine harnesses to Tata Cummins Ltd. Tata Cummins is a joint venture between India-based Tata Motors Limited and U.S.-based Cummins Engine Company The facility area is currently around 1,300 square meters with the potential to expand to more than 6,000 square meters. The number of employees is expected to reach around 240 employees by the end of 2011. (From a press release on January 12, 2011)

Wire & Cable Division
-The capital investment was directed at expanding capacity for high-margin products. One new line in both China and Mexico was set up for production of special automotive cables.