INSERT COMPANY LOGO HERE. Product Leadership Award

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1 INSERT COMPANY LOGO HERE North Global American High-End SSL Car Certificate Audio Product Leadership Award

2 Product Leadership Award High-End Car Audio Global, 2014 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s 360-Degree Perspective, which serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2014 Global Product Leadership Award for High-End Car Audio to Harman International Industries, Incorporated (HARMAN). Key Industry Challenges In an economically challenged environment, every company is looking at adopting strategies to sustain and improve their current standing in the market. This is intensifying competition amongst the companies in the automotive space. Frost & Sullivan's research shows that automotive OEMs are looking to integrate innovative elements/technologies in their offerings, such as high-end car speakers in the audio systems of their vehicles, so as to differentiate themselves from their competition, sustain their position and attain a competitive edge. From the perspective of end users, sound quality is always an important factor that drives purchasing decisions. Speakers form an integral part of an audio system, and end users demand high-end quality sound that is clear and free of distortion. In this context, Frost & Sullivan's analysis indicates that automotive OEMs need to offer high-performance, innovative products without compromising on the quality/clarity of the sonic capabilities to enable the customers to enjoy differentiation and stay ahead of competition. Key Benchmarking Criteria for Product Leadership Award For the Product Leadership Award, the following criteria were used to benchmark Harman International s performance against key competitors: Product Features/Functionality Innovative Element of the Product Product Acceptance in the Marketplace Provides Customer Value Enhancements Product Quality 2014 Frost & Sullivan 1 We Accelerate Growth

3 Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 1. Chart 1: Performance-Based Ratings for Decision Support Matri x This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Chart 2: Frost & Sullivan s 10-Step Process for Identifying Award Recipients 2014 Frost & Sullivan 2 We Accelerate Growth

4 Features/Functionality Innovative Element of the Product Product Acceptance in the Marketplace Provides Customer Value Enhancements Product Quality Weighted Rating BEST PRACTICES RESEARCH Best Practice Award Analysis for Harman International The Decision Support Matrix, shown in Chart 3, illustrates the relative importance of each criterion for the Product Leadership of the Year Award and the ratings for each company under evaluation. To protect the interests of the award recipient s competitors, we have chosen to refer to them as Competitor 1 and Competitor 2. Chart 3: Decision Support Matrix for Product Leadership Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Relative Weight (%) 20% 20% 20% 20% 20% 100% Harman International Competitor Competitor Criterion 1: Product Features/Functionality In Frost & Sullivan's opinion, Harman s unquestionable proficiency in delivering state-of-theart car audio, as well as infotainment solutions, can be largely attributed to its over 60 years of experience and unbeatable success in the automotive space. Harman International has established an equally strong footprint in the professional and consumer electronics markets, as well, being represented by highly reputable brands, namely JBL, Harman Kardon, Lexicon, Infinity, Mark Levinson, and Revel, which enjoy extremely high recognition among car manufacturers across the globe for the top-class performance and quality of experience that they offer. The company s constant drive to intensively research and develop new innovative solutions with attractive high-end features has been the key factor behind the benchmark that it has set in the industry. Tracing back the history of HARMAN s inception of its operations to the 1940s, it can be seen that the company has extended its existing line of products to meet the in-vehicle (pertaining to especially cars) modern-day demands of its customers (mainly manufacturers of luxury vehicles) aiming at the delivery of an improved in-vehicle audio experience for the end users. When referring to car audio systems in particular, Harman International is represented by its flagship brands, like JBL, Harman Kardon, and Infinity, which successfully fulfill the needs of the world-leading automotive OEMs and deliver unparalleled quality of sound to customers all over the world Frost & Sullivan 3 We Accelerate Growth

5 HARMAN innovations in speaker design include the proprietary Ceramic Metal Matrix Diaphragm (CMMD ) technology. Working in collaboration with metallurgy specialists, HARMAN engineers identified a special combination of materials that are now used in the construction of the cones of its woofers, midranges, and tweeters. The CMMD technology eliminates unwanted resonances to deliver clear, undistorted sound. HARMAN s product offerings to the OEM also feature highly efficient sound transducers with ultra-light ALumaprene membranes. The design consumes less energy than its competitive alternative, and combines current demands for greater sustainability with unparalleled surround sound quality. Similarly, Dual Voice Coil (DVC) subwoofers are another HARMAN audio innovation that offers a powerful yet compact design. HARMAN regularly assesses its materials and construction, and only the most advanced materials are chosen to perfectly match the target frequency range of its loudspeaker components: for example, CMMD for tweeters, Kevlar for midranges, Black Kevlar for midwoofers and Rohacell for woofers. More recently, HARMAN has introduced a suite of technologies that deliver improved overall audio performance and higher Sound Pressure Levels (SPL) while radically reducing the amount of electrical energy needed to power the system. GreenEdge (TM) systems expertly combine low input power, low weight, high output transducer efficiency, together with the high efficiency amplifiers and other energy-efficient system components, to contribute to a low-energy requirement. GreenEdge amplifiers outperform traditional amplifier efficiency by up to 55 percent representing a net efficiency of more than 90 percent in many cases. The acoustic transparency and dynamic response have been significantly improved at the same time in comparison with conventional systems. This results in less fuel consumption and reduced pollutant emissions from vehicles. Frost & Sullivan's research reveals that by leveraging HARMAN s deep R&D expertise while designing in-car audio systems, automotive OEMs find themselves best positioned to deliver utmost satisfaction to the end users through the clarity and the rich quality of sound that resonates from those speakers. Criterion 2: Innovative Element of the Product Harman s in-car automotive expertise extends across both the OEM and Aftermarket segments. In the aftermarket, Harman has developed some unique technologies. Based on the proprietary Plus One (carbon-injected) woofer cone technology, the speakers feature an enlarged cone area that helps radiate increased amounts of air. This is in clear contrast to the competing solutions available in the market. Consequently, this leads to improved bass efficiency, as the sound that resonates is loud enough to counter the road noises, without compromising the sound quality. Frost & Sullivan's competitive analysis confirms that in comparison to the tweeters present in the competing traditional speakers, the edgedriven tweeters available in the Harman International car speakers significantly improve the clarity aspect of the sound that resonates even in a low volume. Additionally, the use of the company s proprietary Injected Carbon Glass Matrix frames makes the speakers 2014 Frost & Sullivan 4 We Accelerate Growth

6 light in weight, while adding the attribute of durability to their designs, as these speakers can counter any extreme condition within the car and be mounted on uneven, in-car speaker locations without inconvenience. Beyond physical features and construction of the transducer components, the superior signal processing capabilities of Harman International s OEM car speakers manifest innovation in a true sense. HARMAN s multi-channel DSP amplifiers offer impressive power while maintaining distortion-free and high-performance playback. Other HARMAN innovations include surround sound technologies that make in-car listening experience similar to a concert hall experience. HARMAN introduced the first sound processing algorithm to the automotive market in the 1990 s, called Logic 7, borrowing from its experience in creating audiophile-grade home theater products. It was followed by QuantumLogic surround technology in Developed entirely by HARMAN s audio experts, QuantumLogic technology transforms any stereo or multi-channel audio source into a 7.1 channel surround sound experience, and set a new benchmark in audio signal processing excellence. In 2013, HARMAN introduced QuantumLogic 3D, which offers a surround sound experience that extends the boundaries of the vehicle's cabin to include the spatial sense of height. Audio streams are directed to each of the system speakers by a proprietary algorithm called Aesthetic Engine. The brain behind QuantumLogic, the Aesthetic Engine scientifically combines the individual signal streams and patented spatial filter bank technology with psycho-acoustic modeling for transparent digital processing and perfect acoustic reconstruction. In addition to in-car acoustics, HARMAN s line of HALOsonic technologies represent a breakthrough in Active Noise Control that enhance the in-cabin audible environment as well as improve pedestrian safety. Road noise cancellation (RNC) and engine order cancellation (EOC) actively control refinement levels and minimize undesirable low frequency noises, thereby cancelling unwanted noise inside the car caused by engine vibrations or the road surface. HALOsonic internal electronic sound synthesis creates internal sounds independent of exterior noise levels to improve the in-cabin experience. In contrast, external electronic sound synthesis (EESS) was developed in response to the issue of pedestrian safety around electric and hybrid vehicles which can be difficult to hear at lower speeds due to quiet drive mechanisms. HARMAN's HALOsonic ESS solution generates a synthesized sound, dependent on speed and direction, and projects it from an exterior mounted speaker, giving an early identifiable warning to pedestrians that the car is approaching. HARMAN has successfully sold and is about to deploy this technology onboard vehicles for a global automaker this year. Criterion 3: Product Acceptance in the Marketplace The high-end, built-in sonic capabilities of Harman International s speakers for cars, in particular, have always drawn the attention of the world s largest OEMs, especially from the luxury vehicle segment. Harman International s car audio offerings enjoy high recognition among automakers not just in Europe (where it records the strongest presence) but also across the globe. Its customers include Mercedes-Benz, Lexus, Chrysler, Toyota, Opel, Ferrari, Porsche, and BMW, among others. In fact, this acts as a word-of-mouth marketing for the smaller auto manufacturers that perceive JBL, Harman Kardon, Infinity, Mark 2014 Frost & Sullivan 5 We Accelerate Growth

7 Levinson, and Lexicon as reliable brands. Automotive manufacturers, such as Kia Motors Corporation (Kia) and Hyundai, adopt Infinity s in-car offerings (audio) during the design of each car model in the factory. Frost & Sullivan firmly believes that this clearly reflects the trust that these car manufacturers have in HARMAN s products. Currently, Harman International s car audio offerings have presence in cars exceeding 20 million. To reach out to customers on a wider scale in entry segment vehicles, Harman International has also gained new automotive audio customers in the emerging markets with local OEMs such as Geely and Chang an Motors of China, and Tata Motors of India. Criterion 4: Provides Customer Value Enhancements Harman International is driven by a strong commitment to deliver utmost satisfaction to its customers (mainly the manufacturers of luxury cars) in the automotive domain and enable them to continue to enjoy an edge of superiority in the market. Harman International clearly understands the crucial role that product differentiation plays in such a competitive market scenario, when every single company is striving to reach the top position. This has led the company to include customization as a core element of its customer-oriented approach. The company offers tailor-made offerings for its high-end customers that include Ferrari. In developing the JBL Professional audio systems for Ferrari, HARMAN automotive acoustic specialists spent years creating the system that is custom tuned to meet the unique environmental characteristics of each world-class sports car. The JBL Professional system for the Ferrari California drives nine speakers with a 400-Watt DSP amplifier; the Ferrari 458 includes four different types of speakers (11 in all), driven by a 640-Watt amplifier; while the Ferrari FF features a total of 15 speakers and a 1280-watt Class-D highperformance amplifier. Similarly, HARMAN s audio systems are uniquely modified for each car model for automakers such as Kia (Kia s Cadenza model features an Infinity Discrete Logic 7 Surround Sound System with 12 speakers; the Soul model features Infinity Premium Sound System with 10 speakers), and Hyundai (for instance: Hyundai s Genesis Coupe model features Infinity Premium Sound System with 10 speakers; the Sonata model features Infinity Premium Sound System with 11 speakers). For all the audio systems it designs, HARMAN uses its proprietary AuraVox technology to conduct its final sound tuning which ultimately perfects the system performance. Frost & Sullivan's ongoing analysis of the Automotive market confirms that Harman International continuously delivers best-in-class products, customized according to a customer s specification and requirements suiting its car model, and consequently, offer enhanced value in the process. To ensure that its customized offerings match its customers specifications for each of their different car models, Harman International s engineers work closely with its customers, right from the stage of planning and design to product delivery. This leads to the delivery of befitting solutions to customers from the beginning. Frost & Sullivan finds that this practice speeds up customers production cycles, demonstrating customers high efficiency levels, and also optimizes customers production costs. As almost every solution it offers is unique in its own way, its customers roll out differentiated offerings in the process. The sound 2014 Frost & Sullivan 6 We Accelerate Growth

8 specialists also continuously carry out checks to test the sonic capabilities of Harman International s car audio products to ensure that its customers have a high quality of experience even while travelling by car. Thus, customers that purchase Harman International s car audio offerings (car speakers, in particular) enjoy the best value for their money. Harman International offers customer support services to ensure that its customers reap the utmost benefits from its products. It offers customers information about how to rightly install/use its products through guides, warranties, and technical assistance. If customers have any queries, they can reach out to customer support executives either by phone or via . Criterion 5: Product Quality Harman s portfolio of customers in the automotive space highlights the degree of reliability of its products. Harman s audio products must meet the rigorous demands of automotivegrade performance, safety, and longevity. HARMAN s commitment to deliver a world-class sonic experience to the end users is demonstrated in the feature-rich lines of offerings under its highly recognized brands. HARMAN also adheres to the ISO and TS certification. In addition, Crown Audio, one of its successful professional audio product brands, has been accredited with the ISO 9001:2008 certification. Conclusion Frost & Sullivan's independent analysis of the Automotive market clearly shows that with its feature-rich in-car audio offerings, Harman International stands above the competition. Represented by brands like JBL, Harman Kardon, Infinity, Mark Levinson, Lexicon, and Revel which are well known in the market for innovation excellence and rich technical competencies, HARMAN has successfully reached out to millions of end users (car owners) that value a pleasing sonic experience in their in-car environments. Characterized by the leading-edge product lines that feature superior sonic capabilities, along with enhanced customer value, Harman International emerges as the worthy recipient of the 2014 Global Frost & Sullivan Product Leadership Award for High-end Speakers in Cars Frost & Sullivan 7 We Accelerate Growth

9 Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 4: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 8 We Accelerate Growth