HARMAN presentation September 2010

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1 HARMAN presentation September 2010

2 Our Mission HARMAN designs, manufactures and delivers a wide range of premium audio and infotainment solutions for the automotive, consumer and professional markets. 2

3 Key Facts $3.2 Billion LTM* revenues 11,000 employees worldwide 30+ locations across the Americas, Europe and Asia 15 legendary brands A global network of distributors, retailers, installers and channel partners Publicly traded on the New York Stock Exchange. Symbol HAR * LTM Last Twelve Months, ending March 31,

4 Business Overview Core Businesses LTM Revenues ~ $3.2 B* 11,000 Employees Automotive Infotainment Automotive Audio Professional Audio Global Leader Global Leader Global Leader Consumer Audio Selective Play Navigation, Multimedia, Telematics/Connectivity for a premium driving experience $1,769M Branded audio for high quality automotive sound installed by OEMs $575M Audio and networking for recording/ broadcast, sports and entertainment Audio, video, storage and multimedia products for the home and on the go Automotive Division $2,344M Professional Division $505M Consumer Division $362M * LTM Last Twelve Months, ending March 31,

5 Diverse, High-Profile Customer Base Automotive Consumer All trademarks shown are the property of their respective owners. No endorsement is intended or implied. 5

6 Business Overview: Automotive Infotainment Premium High, Mid and Entry Head Units Telematics and Connectivity Units Rear-Seat Entertainment Branded Audio Branded Premium Sound Systems GreenEdge Energy Efficiency Active Sound Management for Hybrid and Electric Vehicles Audio Entry Sound Systems More than $10 billion in awarded future business 6

7 Success Stories: Automotive Successful launch of 13 major audio and infotainment platforms, the largest project backlog in our industry HARMAN-supplied Audi infotainment system awarded Product of the Year by Germany s Connect Magazine HARMAN-equipped BMW 7 Series named world s most technologically advanced new vehicle by analysts isuppli HARMAN-equipped Hyundai Genesis Sedan named 2009 Car of the Year at the Detroit Auto Show HARMAN selected as Top Ten supplier to Daimler/Mercedes-Benz Full-line BMW MINI / harman kardon partnership announced to more than 30,000 enthusiasts at MINI United Festival 2009 Launched infotainment system for new Ferrari California Exclusive partnership with Lotus Engineering to develop Active Noise Management applications for traditional and electric cars Launched HARMAN GreenEdge energy-efficient audio and infotainment solutions for leading automakers 7

8 Business Overview: Consumer Home Systems Branded Audio Mobile Aftermarket Multimedia Products Personal Audio 8

9 Success Stories: Consumer harman kardon HKTS 15 ranked No. 1 by Consumer Reports in 5.1- channel system category New partnership established with fashion leader Roxy for co-branded personal audio products Mark Levinson 53 amplifier earns Stereo Sound Grand Prix Award from Japan s leading audiophile magazine AKG consumer products premiere in the US and form new retail partnership at Airport Wireless stores Expanded partnerships with Apple for ipod and iphone accessories Dedicated shopping portal expanded for HARMAN products with leading online retailer Amazon.com European Imaging and Sound Association (EISA) selects the harman kardon HKTS 60 as Multi-channel Loudspeaker System of the Year HARMAN channel partners opened the largest multimedia retail outlets in Dubai and India, anchored by our products 9

10 Business Overview: Professional Cinema Exhibitors of motion picture films, screening rooms, and mastering facilities. Typically Direct. Recording/Broadcast Recording studios, Onsite Broadcast trucks, and large broadcast networks. Specialized Dealers / System Designers. Portable PA Small-scale sound reinforcement. Retail Dealers. Audiophile/Home Theater Ultra High Performance Audio/ Video systems for hobbyists, highend home theaters and luxury buyers. Install Installed sound reinforcement. Consultant Specified / Contractor Installed. Musician Primarily guitar players and vocalist. Retail Dealers. Touring Professional live sound reinforcement. Rental Companies. 10

11 Success Stories: Professional 100 new HARMAN Professional products introduced in the past year, leveraging powerful HiQnet architecture Equipped key venues at the Beijing Olympics, Shanghai World Expo 2010, and FIFA 2010 World Cup in South Africa Provided new audio systems for New York Yankees, New York Mets and Baltimore Orioles stadiums Cinemark Theaters roll out HARMAN s next-generation ScreenArray system featuring JBL speakers and Crown amplifiers Official Sound Partner to the GRAMMY Awards and Museum HARMAN systems inform and entertain more than two million people at the historic 2009 US Presidential Inauguration New HARMAN Pro systems take the stage at Kennedy Center Supported leading artists and events including Bruce Springsteen, Billy Joel, Neil Diamond, Vienna State Opera, O2 World Arena, Club Nokia, Rock and Roll Hall of Fame 11

12 Consumer Brand Profile: AKG Product Range Wired Headphones Wireless Headphones Personal Earphones Noise-Cancellation Headphones Microphones Wireless Instrument Systems Automotive OEM Headphones Markets Served Consumer and Enthusiasts Portable and Tour Sound Automotive OEM Conference Room Recording and Broadcast DJ Market 12

13 Consumer Brand Profile: AKG Product Range Wired Headphones Wireless Headphones Personal Earphones Noise-Cancellation Headphones Microphones Wireless Instrument Systems Automotive OEM Headphones Markets Served Consumer and Enthusiasts Portable and Tour Sound Automotive OEM Conference Room Recording and Broadcast DJ Market 13

14 Consumer Brand Profile: JBL Product Range Home Loudspeakers Home Theater Systems Headphones Portable and Personal Powered Loudspeakers Car Audio Loudspeakers and Electronics Professional Loudspeakers and Electronics Markets Served Consumer and Enthusiasts Automotive OEM and Aftermarket Cinema and Installed Sound Portable and Tour Sound Recording and Broadcast 14

15 Consumer Brand Profile: JBL Product Range Home Loudspeakers Home Theater Systems Headphones Portable and Personal Powered Loudspeakers Car Audio Loudspeakers and Electronics Professional Loudspeakers and Electronics Markets Served Consumer and Enthusiasts Automotive OEM and Aftermarket Cinema and Installed Sound Portable and Tour Sound Recording and Broadcast 15

16 Consumer Brand Profile: harman kardon Product Range A/V and Stereo Receivers Blu-ray Disc, DVD & CD players Digital Media Centers Home Theater Systems Docking Stations for ipod Multiroom Products Portable and Personal Powered Loudspeakers Portable Navigation Devices Premium Automotive Speakers Markets Served Consumer and Enthusiasts Automotive OEM and Aftermarket Automotive OEM Infotainment Custom Installation 16

17 Consumer Brand Profile: harman kardon Product Range A/V and Stereo Receivers Blu-ray Disc, DVD & CD players Digital Media Centers Home Theater Systems Docking Stations for ipod Multiroom Products Portable and Personal Powered Loudspeakers Portable Navigation Devices Premium Automotive Speakers Markets Served Consumer and Enthusiasts Automotive OEM and Aftermarket Automotive OEM Infotainment Custom Installation 17

18 Global Brand Positioning harman kardon - Target Audience The harman kardon brand targets consumers who desire elegance in design and simplicity in user experience. Features are in the background and intuitive (e.g. signal processing is automatic and designed for flat-screen home-theater in a box applications). 18

19 Global Brand Positioning harman kardon - Brand strengths relative to other attributes Carefully designed audio performance Distinguished sound design Indulgence in audio 19

20 Global Brand Positioning harman kardon - Brand strengths relative to other brands A brand for the privileged Offers indulgence in audio For those who have a passion for music and sound James Bond would buy this brand An indulgent brand 20

21 Global Brand Positioning harman kardon Design direction To indulge each owner with a carefully designed entertainment experience. 21

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