The state of the company is strong as shown by our numbers. Our numbers are impressive on our own and a leader among our peers: We are now a $7 billion company with strong EBITDA and EPS. That’s driven by our relentless focus on cost leadership and executional excellence We have reached a record industry backlog of $23 billion representing impressive wins in Infotainment and Car Audio that we’ll talk about later.
Driving theses numbers are a vibrant, diverse workforce of 29,000 professionals , including 13,000 top engineers and software developers from around the world. Our people are introducing incredible innovations that our customers and consumers are equally excited about. We go to market with an incredibly valuable portfolio of brands that no other company can match.
We are an innovation leader. We’ve got 6,100 patents and patents pending in our portfolio. In most cases, our intellectual property goes into our own products and solutions. We also are leveraging our IP through licensing agreements and in some cases selling it. With 56 industry design awards for our Lifestyle products alone, it is clear that HARMAN’s reputation for exceptional performance, and design remains strong as well.
Here’s a look at HARMAN’s milestones
Innovative: 1928 – World’s first talking movie premiers using JBL HD loudspeakers 1958 – Harman / Kardon releases the world’s first stereo receiver 1984 – JBL in Lincoln Town Car premieres as first OEM branded car audio system 2004 – Harman enables first Bluetooth wireless connectivity in the car 2013 - Symphony Teleca develops the first dual sided smartphone for Yota
Award Winning: 2002 – Three JBL engineers receive Academy Awards 2014 – HARMAN wins GRAMMY for Lexicon; its third GRAMMY following wins for JBL and AKG
Legendary Moments: 1969 – JBL powers first of three Woodstock music festivals 1983 – George Lucas selects JBL to develop the first THX licensed theater audio system 1991 – AKG takes to the stars when the "Audimir" space project uses AKG products for room simulation in outer space (space station MIR).
Over the last couple of years, you’ve been hearing us talk more and more about connected technologies – the convergence of the connected car, connected enterprise and connected lifestyle. This evolution was behind our acquisitions of Redbend and Symphony Teleca, recognizing the growing importance of software and services in this world of connectivity and the Internet of Things.
The Connected Car, formerly Infotainment, reflects the broader embedded and integrated connected car experience that OEMs and their drivers want. Much more than infotainment, they want robust and intelligent telematics, safety and security solutions. The hacks we’ve been hearing about underscore the seriousness and importance of cyber security in the car, something we’ve been talking about for several years.
Lifestyle Audio represents our branded audio products for consumers. Our portfolio of brands is incredibly strong and when automakers want to differentiate their cars and carlines, they come to HARMAN.
Professional Solutions is a nuanced change but it’s significant, given our expansion into lighting, video switching and enterprise automation over the last few years. Now we are growing our presence in existing venues where we only had audio before and able to approach venues with whole house integrated solutions. Now structured around the two primary markets we serve, Entertainment and Enterprises, we believe the Professional Solutions division will be in an even better position to grow the business.
Connected Services is our newest division that brings together our cloud, mobility and analytics capabilities to strengthen innovations across our other divisions and enable HARMAN to capitalize on opportunities in new markets that are now part of this connected world. As you can see, the margins are traditionally higher than those we have in our other divisions, and we believe that with HARMAN’s scale, we will see even more significant improvements on this metric. [go to next slide to discuss further]
Our iconic brands set us apart. Our anchor brands – JBL, AKG and Lexicon enjoy prominence in consumer and professional markets. Looking ahead, we’re going to invest in our HARMAN branding within the Connected Car and Connected Services spaces as well, making the new logo that much more important to helping us communicate our value proposition.
Our brands require investments to maintain their value for our customers. We have a multi-year relationship with the NBA and signed a few players as brand ambassadors , including MVP Steph Curry, who has given us great visibility among key influential demographics. Our brand ambassador approach with specific artists also are adding value to our brands and customers. We introduced the world’s first personalized headphones with Quincy Jones who also headlined a major event with BMW at our flagship store in NYC. And our flagships stores around the world – from Shanghai to Seoul to Moscow are proving to be excellent customer experience centers to promote our brands. M
Here’s a look at the artists who have used HARMAN products. From Frank Sinatra to Bruce Springsteen and U2 to Maroon 5.
Did You Know?: Our Studer brand provided the equipment that recorded the Beatles legendary Sgt. Pepper album in 1967. Did You Know?: AKG headphones were used when Michael Jackson recorded his hit song Thriller
Four out of five luxury vehicles feature HARMAN technologies. Found in 25+ million cars on the road today.
BMW: HARMAN’s largest customer globally. The Harman / Kardon branded audio system is available in the full line of BMW vehicles as of model year 2014.
Lincoln: The Lincoln Motor Company announced an exclusive 10 year partnership with Revel brand to provide branded audio systems for its complete lineup of luxury vehicles, beginning with the next-gen Lincoln MKX
Geely Motors: Extended its partnership to bring HARMAN infotainment into its new midsize sedans. The infotainment system will bring more applications into the vehicle by integrating with driver and passenger smartphones.