Harman International Industries Inc.
Harman International Industries — Merger or Acquisition (November 2016)
22 slides from Harman International Industries's merger presentation, Nov 14, 2016
Slide 1: Samsung and HARMAN: A Global Connected Technologies Powerhouse
Samsung and HARMAN: A Global Connected Technologies Powerhouse NOVEMBER 14, 2016 HARMAN ©2016 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED 1
Slide 2: Additional Information and Forward-Looking Statements
HARMAN 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 mail or otherwise provide to its stockholders a proxy statement regarding
Slide 3: Samsung and HARMAN: An Ideal Strategic Fit
HARMAN SAMSUNG AND HARMAN: AN IDEAL STRATEGIC FIT SHARED CULTURE OF COLLABORATION, SPEED AND EXECUTION WILL DRIVE SUCCESS Expanded resources to accelerate growth and success Complementary technologies and expertise Independent structure to ensure focus, continuity and speed ©2016 HARMAN INTERNATIONA
Slide 4: Expanded Resources: The World of Samsung Coming to HARMAN
Expanded Resources HARMAN THE WORLD OF SAMSUNG COMING TO HARMAN SAMSUNG SAMSUNG’S 2020 VISION: INSPIRE THE WORLD, CREATE THE FUTURE Global Powerhouse 5th Most Innovative Companies (BCG 2015) 7th Best Global Brand (Interbrand 2015) 11th World’s Most Valuable Brands (Forbes 2015) #13 on Fortune 500 li
Slide 5: Samsung and HARMAN Synergies
HARMAN SAMSUNG AND HARMAN SYNERGIES HEADPHONES WEARABLE MOBILE ON THE GO VIDEO AUDIO DISPLAY LIGHTING AT VENUES CONTROL SERVICE DELIVERY PLATFORM OTA UPDATES SOUND MANAGEMENT IN THE CAR REAR SEAT ENTERTAINMENT BIG DATA ANALYTICS CLOUD AI ADAS HUD, UX/UI DISPLAY SECURITY CONNECTIVITY FUTURE COCKPIT D
Slide 6: Independent Structure
Independent Structure HARMAN STANDALONE SUBSIDIARY; STRONGER SOLUTIONS COMMITMENT TO CONTINUITY FOR HARMAN WORKFORCE, HEADQUARTERS, FACILITIES, BRANDS Connected Car Creates end-to-end connected car powerhouse with scale and partnerships that are essential to winning long-term Lifestyle Audio Uniting
Slide 7: What This Means for Employees
HARMAN WHAT THIS MEANS FOR EMPLOYEES “THIS IS A TESTAMENT TO HARMAN’S TALENTED TEAM AND TRACK RECORD OF SUCCESS.” -DINESH PALIWAL SAMSUNG APPRECIATES HARMAN EMPLOYEES, CAPABILITIES AND ICONIC BRANDS COMPANIES SHARE A CULTURE OF SPEED, INNOVATION AND EXECUTION OPPORTUNITIES FOR PROFESSIONAL GROWTH AS
Slide 8: What Comes Next: Business as Usual
HARMAN WHAT COMES NEXT BUSINESS AS USUAL Transaction expected to close in mid-2017, subject to HARMAN shareholder approval and other customary closing conditions Samsung and HARMAN expect to form integration team in the near future Shared commitment to a smooth transition for employees, customers an
Slide 9: Q&A
Q&A NOVEMBER 14, 2016 HARMAN ©2016 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED 9 4. Investor Presentation, Samsung to Acquire Harman: Accelerating Growth in Automotive Technologies
Slide 10: Samsung to Acquire HARMAN: Accelerating Growth in Automotive Technologies
SAMSUNG | HARMAN SAMSUNG TO ACQUIRE HARMAN Accelerating Growth in Automotive Technologies NOVEMBER 14, 2016
Slide 11: Additional Information and Forward-Looking Statements
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 mail or otherwise provide to its stockholders a proxy statement regarding the pr
Slide 12: Smart Technologies Will Enable the Vehicle of Tomorrow
Smart Technologies Will Enable the Vehicle of Tomorrow The combination of Samsung and HARMAN will empower OEMs to rapidly deploy connected car technologies and services SERVICE DELIVERY PLATFORM OTA UPDATES SOUND MANAGEMENT BIG DATA ANALYTICS REAR SEAT ENTERTAINMENT CLOUD AI ADAS HUD, UX/UI DISPLAY
Slide 13: Compelling Strategic Transaction
Compelling Strategic Transaction Accelerates Samsung’s entry into projected $100B+ automotive technology market1 Strong growth opportunities through HARMAN’s leadership as a global Tier 1 supplier to OEMs Combines HARMAN’s leading audio portfolio with Samsung’s consumer technology platform Highly co
Slide 14: The Next Step in Samsung's Long-Term Strategy
The Next Step in Samsung’s Long-Term Strategy Pre-2015 2015 2016 2016-2017 EVALUATE OPPORTUNITY IN AUTOMOTIVE TECHNOLOGIES FORM AUTOMOTIVE ELECTRONICS BUSINESS TEAM MAKE INVESTMENTS IN AUTOMOTIVE TECHNOLOGIES ACQUIRE PREMIER TIER 1 SUPPLIER Samsung’s Strategic Initiatives Establish significant prese
Slide 15: HARMAN Highlights
HARMAN Highlights Market Leader Global Footprint Innovation Leader $7B revenue1 30,000 professionals worldwide 6,300 patents and patents pending EBITDA $866M1 15,000 engineers and R&D professionals 56 design awards in 2015 3 GRAMMY® awards – AKG, JBL, Lexicon $24B auto order backlog2 25+ countries:
Slide 16: HARMAN: Technologies for a Connected Life
HARMAN: Technologies for a Connected Life Connected Car Lifestyle Audio Professional Solutions Connected Services Navigation, Multimedia, Tuner, Connectivity, Telematics, Safety & Cyber Security Solutions Premium Branded Audio Products and Sound Management Software for the Car, Home and On the Go Au
Slide 17: Best-in-Class Complementary Capabilities
Best-in-Class Complementary Capabilities A true convergence of technologies, relationships and brands Samsung Leading #1 in smartphones Connected #1 in consumer electronics Devices Leader in UX, 5G and IoT #1 in display Leading Core #1 in memory Technology #2 in semiconductors $23B in CapEx and $13B
Slide 18: Samsung and HARMAN Growth Opportunities
Samsung and HARMAN Growth Opportunities Complementary technologies create opportunities across the connected ecosystem HEADPHONES WEARABLE MOBILE ON THE GO VIDEO DISPLAY AUDIO LIGHTING CONTROL AT VENUES IN THE CAR SOUND MANAGEMENT BIG DATA ANALYTICS OTA UPDATES REAR SEAT ENTERTAINMENT SERVICE DELIVE
Slide 19: Transaction Summary
Transaction Summary Total consideration of $112 per share in cash, or a total equity value of approximately $8B Transaction - Samsung expects to fund the transaction with cash on hand Terms Delivers significant and immediate value to HARMAN shareholders - 28% premium to HARMAN’s closing stock price
Slide 20: Industry Leader Commentary on Samsung and HARMAN
“ Samsung’s innovation and leadership in technology and connectivity is a natural fit with HARMAN’s strong global customer base, impressive track record of cutting edge technologies and proven management team. This strategic combination will be very compelling to automakers who are demanding end-to-
Slide 21: Compelling Strategic Transaction
Compelling Strategic Transaction Accelerates Samsung’s entry into projected $100B+ automotive technology market1 Strong growth opportunities through HARMAN’s leadership as a global Tier 1 supplier to OEMs Combines HARMAN’s leading audio portfolio with Samsung’s consumer technology platform Highly co
Slide 22: Investor Call Transcript Excerpt
I’m so glad Dinesh brought the software and connected service capabilities into the company. As you know, as the cars become all connected, that’s a requirement. It’s not an option. And we believe the software and connected service can be able to serve their customers much better by leveraging our t
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