Harman International Industries Inc.
Harman International Industries — Merger or Acquisition (November 2016)
22 slides from Harman International Industries's merger presentation, Nov 21, 2016
Slide 1: We Are HARMAN: Company Overview
HARMAN International. Confidential. Copyright 2016. 1 DINESH PALIWAL CHAIRMAN & CEO NOVEMBER 21, 2016 WE ARE HARMAN COMPANY OVERVIEW
Slide 2: Additional Information and Forward-Looking Statements
HARMAN International. Confidential. Copyright 2016. 2 ADDITIONAL INFORMATION AND FORWARD-LOOKING STATEMENTS Additional Information and Where to Find It In connection with the proposed transaction, HARMAN will file with the Securities and Exchange Commission (the “SEC”) and mai l or otherwise provide
Slide 3: Additional Information and Forward-Looking Statements
HARMAN International. Confidential. Copyright 2016. 3 ADDITIONAL INFORMATION AND FORWARD-LOOKING STATEMENTS Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements represent HARMAN’s and Samsung’s views as of the date
Slide 4: Innovation Leader, Globally Diverse Market Leader
HARMAN International. Confidential. Copyright 2016. 4 • $7.0 Billion revenues* • EBITDA $866 Million * • $24.1 Billion automotive order backlog ** • 30,000 Professionals worldwide * • 15,000 Engineers ~80% Software • 25+ Countries: Americas, Europe and Asia • 16+ Legendary brands • 6,300 Patents and
Slide 5: Strong Performance Culture
HARMAN International. Confidential. Copyright 2016. 5 $3.4B $6.9B STRONG PERFORMANCE CULTURE REVENUE GROWTH EBITDA EPS FY10 FY16 $0.85 $6.24 TSR FIVE-YEAR 68% AS OF JUNE 30, 2016 FY10 FY16 FY10 FY16 $241M $836M BUILD IT CAGR +13% CAGR +23% CAGR +39%
Slide 6: Industry-Leading Backlog
HARMAN International. Confidential. Copyright 2016. 6 10.8 13.0 16.2 17.5 2.8 3.1 4.3 6.6 CAR AUDIO CONNECTED CAR ($ IN BILLIONS) CAGR +10% 20.5 24.1 16.1 13.6 INDUSTRY-LEADING BACKLOG BUILD IT FY10 FY12 FY14 FY16
Slide 7: Technologies for a Connected Life
HARMAN International. Confidential. Copyright 2016. 7 OWN IT TECHNOLOGIES FOR A CONNECTED LIFE LIFESTYLE AUDIO PROFESSIONAL SOLUTIONS CONNECTED SERVICES Navigation, Multimedia, Connectivity, Telematics, Safety & Security Solutions Premium Branded Audio Products and Sound Management Software for Car,
Slide 8: Capitalize on Iconic Brands
HARMAN International. Confidential. Copyright 2016. 8 CAPITALIZE ON ICONIC BRANDS HARMAN’S COMPETITIVE ADVANTAGE SOURCE: HARMAN BRAND TRACKER – 2013 vs. 2016, SYSOMOS – FY16 VS FY15, : GOOGLE TRENDS – June, 2012 vs. June, 2016 CONNECTED CAR LIFESTYLE AUDIO PROFESSIONAL SOLUTIONS CONNECTED SERVICES
Slide 9: Connected Car Summary Financials
HARMAN International. Confidential. Copyright 2016. 9 CONNECTED CAR SUMMARY FINANCIALS ($mm) 14.3% ~14.5% $3,102 $3,320 FY16 FY17E REVENUE: +7% EBITDA: +9% MARKET SHARE 24% Others OVERVIEW SELECTED CUSTOMERS Connected car systems designed and manufactured for vehicle applications ? Provides intellig
Slide 10: Connected Car: 36+ Global Auto Brands
HARMAN International. Confidential. Copyright 2016. 10 CONNECTED CAR 36+ GLOBAL AUTO BRANDS AND GROWING LONG-TERM CUSTOMERS BRIC CUSTOMERS NEW CUSTOMERS
Slide 11: Lifestyle Audio Summary Financials
HARMAN International. Confidential. Copyright 2016. 11 LIFESTYLE AUDIO SUMMARY FINANCIALS ($mm) 14.9% ~15.1% $2,200 $2,410 FY16 FY17E REVENUE: +10% EBITDA: +11% MARKET SHARE Branded Car Audio Consumer Audio1 40% Others Others OVERVIEW SELECTED CUSTOMERS Car audio systems for vehicle applications Als
Slide 12: Professional Solutions Summary Financials
HARMAN International. Confidential. Copyright 2016. 12 PROFESSIONAL SOLUTIONS SUMMARY FINANCIALS ($mm) POWER BRANDS 12.1% ~13.4% $1,014 $1,045 FY16 FY17E REVENUE: +3% EBITDA: +14% Note: FY 2017 assumes 1.10 EUR/USD OVERVIEW SELECTED EVENTS Extensive range of audio, lighting, control and automation s
Slide 13: Our Audio Brands Give Us Star Power
HARMAN International. Confidential. Copyright 2016. 13 AUDIO LIGHTING CONTROL OUR AUDIO BRANDS GIVE US STAR POWER COMPLETE SYSTEMS PROVIDER UNMATCHED PORTFOLIO • 3 Technical Grammys for JBL, AKG, and Lexicon • Beatles Sgt Pepper was recorded on Studer tape machines • Lexicon reverb used on 80% of al
Slide 14: Audio, Lighting & Control
HARMAN International. Confidential. Copyright 2016. 14 AUDIO, LIGHTING & CONTROL NIGHTCLUB HOTEL CONFERENCE ROOFTOP ROOM SPORTS RESTAURANT ARENA AIRPORT & TRAIN STATION OFFICE HOUSE OF WORSHIP CONCERT IN THE PARK Chances are you’ve seen or heard HARMAN PRO today 11 WORLD CLASS BRANDS CINEMA SHOPPING
Slide 15: In the Most Respected Venues
HARMAN International. Confidential. Copyright 2016. 15 Yankee Stadium Rock in Rio Beijing National Stadium Grand Mosque at Mecca Kennedy Center Super Bowl 50 IN THE MOST RESPECTED VENUES PROFESSIONAL SOLUTIONS From entertainment and sports complexes to government, education and religious venues
Slide 16: Connected Services Summary Financials
HARMAN International. Confidential. Copyright 2016. 16 CONNECTED SERVICES SUMMARY FINANCIALS ($mm) ADDRESSABLE MARKET GROWTH FORECAST1 13.7% ~14.7% $632 $680 FY16 FY17E REVENUE: +8% EBITDA: +16% OVERVIEW SELECTED CUSTOMERS Creates innovative software solutions that integrate design, mobility, cloud
Slide 17: Thank You
HARMAN International. Confidential. Copyright 2016. 17 Thank You
Slide 18: Samsung to Acquire HARMAN
Appendix Samsung Harman SAMSUNG TO ACQUIRE HARMAN Accelerating Growth in Automotive Technologies
Slide 19: Additional Information and Forward-Looking Statements
Additional Information and Forward-Looking Statements
Slide 20: Best-in-Class Complementary Capabilities
Best-in-Class Complementary Capabilities 1
Slide 21: Samsung and Harman Growth Opportunities
Samsung and Harman Growth Opportunities 2
Slide 22: Compelling Strategic Transaction
Compelling Strategic Transaction
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