Second Quarter FY 2014 Highlights

HARMAN Reports Second Quarter Fiscal Year 2014 Results

- Net sales up 26% to $1.328 billion and non-GAAP EPS up 85% to $1.09
- Non-GAAP operating income up 90% to $108 million and generated $121 million cash from operations
- Raising full year revenue guidance from ~$4.7 billion to ~$5.1 billion and EPS from ~$3.85 to ~$4.16
- Secured $1.1 billion in new automotive awards

STAMFORD, CT, January 30, 2014 – Harman International Industries, Incorporated, the leading global infotainment and audio group (NYSE: HAR), today announced results for the second quarter ended December 31, 2013.

Net sales for the second quarter were $1.328 billion, an increase of 26 percent compared to the same period last year as all three of the Company’s divisions reported increased sales. The strong sales increase was a result of several initiatives in each division in addition to improved economic conditions. Infotainment net sales increased due to the expansion of recent production launches and higher take rates. Lifestyle growth was primarily driven by new product launches, the impact of increased marketing investments in the home and multimedia business, and increased take rates in the car audio business. The Professional division reported strong growth as a result of the expansion of the Company’s product portfolio into lighting as well as increased demand for the Company’s audio products at live entertainment events and in fixed-installation venues.

On a GAAP basis, second quarter operating income was $102 million, compared to $68 million in the same period last year, and earnings per diluted share were $1.03 for the quarter compared to $0.68. Excluding restructuring and non-recurring charges, second quarter non-GAAP operating income was $108 million, compared to $57 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $1.09 for the quarter compared to $0.59 in the same period last year.

Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are extremely pleased that for the second consecutive quarter all three of our divisions reported double-digit top-line growth, which also resulted in double-digit profitability improvement. We are confident that the momentum that we built in the first half of the fiscal year is sustainable and therefore we have increased our fiscal year guidance for revenue and EPS.”

Paliwal added, “We also continue to position HARMAN for long term growth with the introduction of proprietary technology solutions that enable safety, cyber security, and rapid app development for in-car systems. These critical and high demand features can only be provided through embedded infotainment systems. They are essential for leading automakers as evidenced by $2.7 billion in new automotive awards in the first half of the fiscal year. Our technologies were further validated with prestigious CES and Red Star innovation and product design awards, and a third technical GRAMMY® Award which we won this year for our Lexicon brand.”

FY 2014 Key Figures – Total Company

Three Months Ended December 31

Six Months Ended December 31





Increase (Decrease)

Increase

(Decrease)

$ millions (except per share data)

3M

FY14

3M

FY13

Including Currency Changes

Excluding Currency Changes1

6M

FY14

6M

FY13

Including Currency Changes

Excluding Currency Changes1

Net sales

1,328

1,056

26%

23%

2,500

2,054

22%

19%

Gross profit

379

272

40%

38%

701

550

27%

25%

Percent of net sales

28.6%

25.7%

28.0%

26.8%

SG&A & Other

278

203

36%

34%

530

403

32%

29%

Operating income

102

68

49%

47%

171

147

16%

15%

Percent of net sales

7.7%

6.5%

6.8%

7.2%

EBITDA

134

99

36%

34%

235

206

14%

12%

Percent of net sales

10.1%

9.3%

9.4%

10.0%

Net Income

72

47

51%

48%

118

102

16%

13%

Diluted earnings per share

1.03

0.68

51%

48%

1.69

1.47

15%

13%

Restructuring-related costs

6