Financial Overview

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Sales	3,917.9	3,809.0	2.9	-Strong car sales in North America and Asia more than compensated for the weaker business on the European motor vehicle market.
EBIT	163.1	237.9	(31.4)	-
Wiring Systems Division
Sales	2,321.0	2,206.4	5.2	-The sales increase was based on the substantial demand from export-heavyweight customers in the German automotive industry and a further increase in demand for wiring systems from the foreign manufacturers in China.
EBIT	116.1	136.4	(14.9)	-
Wire & Cable Solutions Division
Sales	1,596.9	1,602.6	(0.4)	-The heavy demand for automotive cables compensated for the declining demand in its industrial businesses, which are very much focused on the European market with its currently weak economy. Unexpectedly good automotive business in China and the United States led to considerable sales growth in these markets.
EBIT	47.1	101.3	(53.5)	-

Contracts

-In February 2013, the Company announced that it has obtained an additional order by Ssangyong Motor Company of South Korea. The supplier will deliver cable harnesses for a new car entering the market in 2015. Leoni's South Korean branch, headquartered in Busan, has been awarded to develop, produce and deliver several types of cable harnesses for one of Ssangyong's new cars. It is a compact SUV and has already been showcased as a concept car at the Geneva motor show 2012. The manufacturer plans to produce it in Korea for the local market as well as for Europe and other regions in the world. Leoni estimates that the total lifetime turnover for the project will sum up to approximately 75 million euros. Leoni's South Korean entity has been established out of the former local wiring harness manufacturer Daekyeung, fully taken over at the beginning of 2012. (From a press release on February 27, 2013)

-In November 2013, the Company started pre-production of wiring systems for Mercedes' new C-class and thereby strengthens its position on the American passenger car market. The Company also supply for the vehicle model in China.

Plant restructuring in Morocco

-In 2013, the Company closed the Bouznika plant in Morocco and set up a production capacity in Berrechid.

IAA 2013

-At the 2013 IAA Frankfurt Motor Show, the Company displayed a collection of innovative solutions, including as aluminum wires and alternative conductors, pre-formed wiring elements, tool-optimized harness architectures, a tailored harness with sensor technology as well as power distribution units and other electro-mechanical components. Customers can save up to 20% weight of a vehicle's wiring system by using these innovative technologies.

Awards

-Major awards in 2013 are as follows:

Division	Awarding Company	Awards
Wiring Systems Division	GM	Supplier Quality Excellence Award
Wiring Systems Division	Molex (Mexico)	Best Local Supplier
Wiring Systems Division	Benz Beijing Automotive	Supplier Award
Wire & Cable Solutions Division	HEW-KABEL	Rohstofflieferant des Jahres

Outlook for FY ending Dec. 31, 2014 (Estimated by the Company)

Overall
-The Company expects its consolidated sales in 2014 to be 4,100 million euros and its EBIT to be 200 million euros. The Company expect to see the largest gains in the BRIC countries including South Korea as well as in the United States.

Wiring Systems Division
-The Wiring Systems Division is likely to increase its external sales to approximately 2.4 billion euros. The Company expects the business to continue to shift in the direction of Asia and North America in 2014.

Wire & Cable Solutions Division
-The Wire & Cable Solutions Division is expected to generate external sales of approximately 1.7 billion euros in 2014 with the NAFTA area and the BRIC countries once more likely to see the strongest gains.

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Total	106.1	93.6	84.1

R&D Employees

	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Total	1,347	1,329	1,042

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.

-The Division's head office department in Kitzingen also does basic research and provides project-related support.

Wire & Cable Solutions Division
-Wire & Cable Solutions Division operates development centers mainly in Germany and Switzerland.

-In addition, there is the division's Research & Development department, which coordinates the work and runs innovation and application-oriented development projects.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Wiring Systems Division	100.2	98.7	76.3
Wire & Cable Solutions Division	57.1	49.5	53.7
Other	11.1	6.0	7.4
Total	168.4	154.2	137.4

Investment Outside Germany

Wiring Systems Division
<China>
-In October 2013, the Company has inaugurated its fourth wiring systems production in China. The plant in Langfang, Hebei Province will supply passenger cars of Beijing Benz Automotive Co Ltd (BBAC) and its Chinese partner BAIC. Leoni will invest a total of EUR 30 million in buildings and equipment of the new production site. It has been built in nine months and is currently in the ramp-up phase for the Mercedes C class project. Later, Leoni will also produce wiring systems for the models GLA and GLK. The plant in Langfang has a production area of around 20,000 square meters and will give work to at least 2,500 employees once operating at full capacity. Within four years, Leoni will double its local wiring systems turnover to EUR 400 million. (From a press release on October 28, 2013)

Wire & Cable Solutions Division
<India>
-In May 2013, the Company announced that it opened its new Indian plant near Pune, from where it will deliver customers from different industries with cables and cable systems. The new plant is Leoni's second production site in India. Until the end of the year, Leoni plans to make an investment of around 11 million euros for the facilities and the equipment and to have about 140 employees. The new plant has a production area of around 15,000 square meters and has already started the manufacturing of standard cables for the automotive industry at the beginning of the year. At a later date, the new plant shall also produce automotive special cables. (From a press release on May 6, 2013).

Outlook of Capital Expenditure for FY ending Dec. 31, 2014

-The Company expects to spend about 200 million euros as capital expenditure in 2014.

-The Wiring Systems Division and the Wire & Cable Solutions Division will likely spend about 120 million euros and 70 million euros of the total amount, respectively.

-Germany will account for about 28.3%, Eastern Europe for 26.3%, Asia for 19.4%, North Africa for 9.3%, the Americas for 9.8% and other European countries for 6.9% in 2014.