• Security Systems division: new opportunities, promising developments
• Opening training centers for car care professionals in Kiev and Moscow and developing the automotive parts market.
• Construction of Bosch office building in Moscow
• Working under difficult business conditions

Bosch has accounted for its operations in Russia, Ukraine, Belarus and Kazakhstan for the 2008 fiscal year. Consolidated revenue for these territories increased 24% and totaled 846 million euros.

Sales volume, including that of non-consolidated activitities, was 913 million euros. Consolidated 2008 turnover in Russia amounts to 708 million euros, which is 16% more than the same figure from the previous year (non-consolidated turnover figure is 753 million euros).

The same data for Ukraine is 93 and 98.5 million euros respectively. Non-consolidated turnover in Kazakhstan was 8.6 million euros.

The largest growth was observed in Belarus at 44 million euros in consolidated turnover against the 8 million in 2007: more than 80% growth rate. In Russia, Ukraine, Belorussia and Kazakhstan personnel headcount growth in 2008 is observed. In particular in Russia the number of associates increased from 1928 people in 2007 to 2270. In Ukraine – two times growth (309 people in comparison with 150 in 2007).

“The current market situation, especially in the construction and automotive markets, has certainly not failed to affect Bosch’s business, including its operations in Russia, Ukraine, Belarus and Kazakhstan,” noted Rene Schlegel.

“Cost optimization combined with our solid base will allow us to maintain a reasonable degree of stability especially towards our customers, employees and key suppliers.

In the last three years, the Russian market and its neighboring markets have demonstrated doubledigit growth every year and we expect these growth rates in the sector to reach a similar level as soon as the world economy recovers.

Investments in large scale international level infrastructure and sports projects such as the Olympic Games in Sochi and the APEC Forum in Vladivostok, will have a positive effect in such areas as security, safety and communications.

Good opportunities for Bosch Security Systems
In the shorter term we see great opportunities for security systems market within the implementation of major infrastructure projects as part of preparation for the Olympic Games 2014 in Sochi, the European Football Championship in Ukraine in 2012, the Universiade in Kazan and the Asian Winter Games in Kazakhstan in 2011.

These projects will need extensive infrastructure build up projects and associated construction activity to be implemented within very limited timeframes, e.g. in the hotel and transport sector. 

Bosch Security Systems is one of the leading security, safety and communications market players. Bosch Security Systems is a major market player in Russia, and, taking into account its partners, it is present in all major cities.

Bosch Security Systems solutions have been used in projects of such customers as the Bolshoi Theater, “Evropeiskiy” Trade Center in Moscow, Social Awareness Project in Saint Petersburg.

In the next several years Bosch Security Systems will further expand its presence in Russia.
 
Bosch has extensive experience at its disposal in the development and integration of complex security systems for companies and institutions of varying scales. Installation of such systems gives the company the opportunity to implement its state-of-the-art developments in this field. 

The associated developments with the above mentioned events will also be favorable for the development of our power tool, heating and warm water business in Kazakhstan, Ukraine, and Russia.

Increasing demand for energy-efficient technology
Bosch is very optimistic regarding the special emphasis the Russian government puts on deploying energy efficient solutions. The company is the world leader in geothermic devices and a major player in both thermal solar technology and photovoltaics. 

Bosch Rexroth is a key supplier for wind energy manufacturers. In 2008 the division’s turnover growth was 20% and Bosch Rexroth strongly improved its position as the single supplier of steering and control solutions to such key customers as Saint Petersburg metro, Alcoa and Krasnoje Sormowo (hydraulic for the tanker “Araz River”).

Top objectives for 2009 include launching of innovative products on the Russian market, production startup of Avtokrans 25-tons crane with the first load sensing (LS) system in Russia based on Rexroth components and turbine regulator system for “Gazprom”.

Bosch is planning to further develop production at its Power Tools Division. In 2008 the division successfully introduced jigsaw GST75, hammer drill GSB16 and GWS 22 corner grinder.

In 2009 Made in Russia product line will be largely expanded to include new products and further technological improvements at key business areas of the plant. 

Extended product range at Bosch Saratov
OAO Robert Bosch Saratov, Russia’s largest manufacturer of spark plugs, intends to establish production of common rail and diesel injector systems, and also plans to start manufacturing new types of industrial spark plugs for European and American IAM, industrial spark plugs based on Russian engines manufacturing for IAM,OEM in Russia, longthread spark plugs (for new Ford, Mazda and Nissan engines), fuel return lines for common rail systems and highvoltage harnesses for electronic ignition systems.

Strong performance with heating systems
Buderus Heating Equipment performed strongly in 2008 – sales volume increased 48%. New products were released – condensing and conventional boilers, solar systems, HAWA. Eight new branches opened – in Irkutsk, Izhevsk, Perm, Omsk, Saratov, Sochi, Smolensk and Stavropol.

In 2009, the division plans to market new heat pumps, air conditioners, condensing boilers and HAWA, as well as improve its rankings by increasing market share.

Plans for the development of the automotive technology division remain unchanged. In 2008 Bosch launched its safety program in Russia that included a set of activities aimed at prevention of traffic accidents and increasing traffic safety in the Russian Federation.

AS part of this program, Bosch actively cooperates with Russian car makers to equip Russian automobiles with ABS, which is now available as an option in such models as Lada Kalina, Lada Priora, UAZ Patriot, and which is included in the general packages for Gazelle and Sobol vans.

Bosch opens two new training centers for car care professionals – one in Moscow and one in Kiev. The Ukrainian training center opened on March 10 and the one in Moscow will open on June 5. Each of them will train approximately 2000 mechanics and car electricians every year.

In 2009, OOO Robert Bosch will maintain its commitment towards the construction of a new facility in Moscow.

The complex will include office space, warehouses, training and service centers, as well as a parking lot. It will house almost all of Bosch subsidiaries. Investment in construction will be approximately 150 million euros. The total area of the complex will be 94,000 square meters. Construction is slated to start in 2010.

About Bosch

Bosch Group – Minimal data:
Sales revenue: 45.1 billion euros
Number of associates: 280,000

Bosch Group – Optional data:
Sales revenue percentage change from previous year: – 2.6

Automotive Technology: 26.5 billion euros in sales
Industrial Technology: 6.7 billion euros in sales
Consumer Goods and Building Technology: 11.9 billion euros in sales
Research and development cost: 3.9 billion euros
as a percentage of sales revenue: 8.6
Patent applications: over 3,800
Number of apprentices: 6,000
Subsidiary and regional companies: 300

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros, or eight percent of its sales revenue, for research and development, and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future.Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH. Additional information can be accessed at www.bosch.com.

March 25, 2009