4 MSA 2011 ANNUAL REPORT MSA launched several new products in 2011, including,  from left to right, the Workman Twin Leg Personal Fall Limiter, the Altair® 5X series of portable multi-gas detectors  with XCell® Sensor technology, and the SUPREMA® Touch  controller for fixed gas detection systems. As an expansion of MSA’s flagship  V-Gard® hard hat, MSA debuted a  selection of V-Gard accessories in  2011, including face shields and  visors, developed in response to  customer needs. – The PrimaX IR, a lower price point infrared fixed gas  detection system designed especially for cost-conscious,  but performance-demanding emerging markets;  – The SUPREMA® Touch controller for fixed gas detection  systems, built on a priority basis to successfully meet  changing standards in China; t Other product launches in a very busy year include: t The  Pittsburgh Post-Gazette  named MSA a “Top Workplace”  in 2011, and our own internal metrics, measured around  the world, identified a similar culture of improving  employee engagement and satisfaction. For example, a survey sent to all MSA associates in 14 languages showed  a 10 percent increase in favorable employee engagement  levels since the last time we conducted the survey, a level  higher than global manufacturing industry norms. t MSA’s product innovation, the lifeblood of our company,  was especially successful in 2011, with patent applications  increasing 230 percent compared to our base year of 2009.  Chief among these successes was the Altair® 5X series of  portable multi-gas detectors with XCell® Sensors – our  2011 Product of the Year. Building even further on last  year’s breakthrough launch of the Altair 4X unit, the new  Altair 5X Detector has increased sales by 48 percent over  the previous generation Altair 5, while delivering greatly  improved gross margins. t Our largest North America distribution partner, Airgas,  recognized MSA as their top-performing “Supplier of the  Year” for excellence in customer support.  t We successfully upgraded our SAP system to the state-of- the-art ECC 6.0 platform. ECC 6.0 positions IT to support  our increasing globalization and even further integration  of our supply chains. t We raised our dividend to more than $1 per share annually,  the highest level in our history, providing our shareholders  with a return of more than 3.1 percent as of the end of  the year. t We successfully divested our ballistic vest business, giving  us greater resources and ability to further focus upon our  Core Product areas. – An expansion of our flagship V-Gard® head protection  line to include a selection of accessories such as winter  liners, face shields and visors, and the industry’s first  “Debris Control” feature, developed in response to  customer needs. – Our Workman Twin Leg Personal Fall Limiter, an  innovation that provides continuous fall protection as  workers at heights move from place to place; and t Another key element of our Corporate Strategy drives us to  Achieve Operational Excellence, and that means optimizing  operations and lowering costs at every possibility. In 2011,  our success in this area was significant. We eliminated  some 18,000 part numbers and reduced our inventories by  more than $3 million. We likewise made meaningful strides  in delivery performance in product lines and geographies  around the world. And our e ff orts to optimize our global  sourcing are on track to provide additional ongoing  benefits, including greater security of supply.