CTS Corporation Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (Loss) ($ in millions) As Reported for 2013 Continuing Operations excluding EMS divestiture Discontinued Operations: Full Year 2012 2011 2010 2009 19.6 8.1 11.4 6.4 5.1 2.0 13.5 11.3 17.7 (15.0) Charges (credits) to reported net earnings (loss): Restructuring, restructuring-related, and asset impairment charges Goodwill impairment Gain on sale-leaseback Additional legal costs Transaction Costs Additional CEO search, legal costs and acquisition* 6.2 - 2.1 - 4.1 - 3.1 - 1.1 - 11.8 4.1 4.5 (10.3) 1.5 2.5 2.6 0.3 - 1.0 - 2.1 2.4 - Total adjustments to reported net earnings from continuing operations Total adjustments, tax affected from continuing operations (B) 6.2 5.1 2.1 1.8 4.1 3.3 3.1 2.4 1.1 0.9 15.9 12.0 (1.8) (1.4) 3.0 2.1 1.0 0.7 4.5 3.8 Impact of tax repatriation (C) Impact of UK deferred tax asset write-off (D) Impact of tax asset write-off related to restructuring (E) Impact of reversal of tax reserves (F) 0.4 - - 0.4 - (0.2) - 0.6 - 10.5 1.0 - - - - 9.1 2.5 Nine Months Net earnings / (loss) from continuing operations (A) 2014 First Half Q3 Q2 Q1 2013 Adjusted net earnings / (loss) from continuing operations (A+B+C+D+E+F) $ 25.1 $ 9.9 $ 15.2 $ 8.5 $ 6.6 $ 25.5 $ 12.1 $ 13.4 Total Sales from continuing operations $ 303.6 $ 100.0 $ 203.7 $ 103.0 $ 100.7 $ 409.5 $ 304.5 $ 279.9 Adjusted net earnings / (loss) as a percentage of total sales from continuing operations 8.3% 9.9% 7.4% 8.3% As Historically Reported prior to 2013 Discontinued Operations: 6.6% 6.2% 4.0% Charges (credits) to reported net earnings (loss): Restructuring, restructuring-related, and asset impairment charges Goodwill impairment Gain on sale-leaseback Additional legal costs Transaction Costs Additional CEO search, legal costs and acquisition* 18.3 $ 282.9 4.8% $ 0.4 $ 213.2 6.5% 0.2% Q3 2013 First Half Q1 Q4 Nine Months 2012 Q3 First Half Q2 Q1 Q4 2011 Q3 Q2 Q1 Q4 2010 Q3 Q2 Q1 Q4 2009 Q3 (0.9) 6.8 (7.8) (11.3) 3.6 8.8 11.5 5.9 5.6 3.3 2.3 5.9 5.9 4.1 5.1 4.8 6.9 5.9 4.4 4.1 4.5 (7.0) 10.0 1.1 8.9 8.1 0.8 - 3.8 (10.3) - 4.7 - 0.9 - 3.8 - 3.8 - - 2.4 - - 0.7 0.3 - 1.7 - - - - - - - Nine Months Net earnings / (loss) (A) $ Q2 Q2 2012 Full Year 2011 2010 (35.6) 20.3 21.0 22.0 (34.1) 2.2 33.2 - 8.5 (10.3) - 3.1 0.3 1.7 - 2.2 33.2 - Q1 2009 0.6 2.3 0.6 0.8 1.5 0.8 0.7 2.7 1.2 0.3 - - - - - - - - - - - - - - - 4.0 - - Total adjustments to reported net earnings Total adjustments, tax affected (B) 12.9 8.7 2.4 1.3 10.4 7.3 8.9 6.3 1.5 1.1 (3.7) (2.6) 5.9 4.2 1.2 0.8 3.8 2.8 3.8 2.8 - 2.4 1.8 - 1.0 0.7 - 1.7 1.1 - - - - - - 35.4 34.5 2.2 1.6 3.5 2.5 1.7 1.1 Impact of tax repatriation (C) Impact of UK deferred tax asset write-off (D) Impact of tax treaty (E) Impact of reversal of tax reserves (F) 10.8 1.0 - 10.8 1.0 10.8 1.0 - - - - - - - - - - - - - - - - - 9.1 - - - - 9.1 - - - - - - - - - - - - - - - 2.5 - - - - - - 2.5 Adjusted net earnings / (loss) (A+B+C+D+E+F) $ 19.5 $ 8.1 $ 11.3 Total Sales $ 460.6 $ 159.6 $ 301.1 Adjusted net earnings / (loss) as a percentage of total sales. *The 2012 quarterly expenses do not add to the full year or nine months amounts because the expenses in Q1 and Q2 were not material and therefore, not discussed. 4.2% 5.1% 3.8% $ 6.7 $ 151.6 4.4% $ 4.6 $ 149.5 3.1% $ 6.3 $ 15.7 $ 138.3 $ 438.6 4.5% 3.6% $ 6.7 $ 137.4 4.9% $ 8.4 $ 301.3 2.8% $ 6.1 $ 154.3 4.0% $ 2.3 $ 147.0 1.6% $ 7.7 $ 144.0 5.3% $ 5.9 $ 146.1 4.0% $ 4.8 $ 146.9 3.3% $ 5.1 $ 151.5 3.4% $ 5.9 $ 145.0 4.1% $ 6.9 $ 139.4 4.9% $ 5.9 $ 138.9 4.2% $ 4.4 $ 129.4 3.4% $ 6.6 $ 133.9 4.9% $ 4.5 $ 126.6 3.6% $ 2.1 $ 120.4 1.7% $ (1.1) $ 118.1 -0.9% 35.4 34.5 $ 22.0 $ 23.4 $ 23.1 $ 12.0 $ 576.9 $ 588.5 $ 552.6 $ 499.0 3.8% 4.0% 4.2% 2.4%