· Bosch Group sales in Japan expected to grow by some 3.5 percent in 2007, to 300 billion yen (1.9 billion euros)

Tokyo / Stuttgart – For the automotive supplier Bosch, the global growth of Japanese automakers is good news: "Whatever drives our business forward in Japan is also good for our business worldwide," said Dr. Bernd Bohr, chairman of the Automotive Group, at a press conference at the 2007 Tokyo Motor Show. This year alone, Bosch global sales with the six largest Japanese automakers will increase by more than twelve percent. "This is growth we want to increase still further in the years to come," Bohr said. Bosch expects that Japanese automakers will increase their global production, from today's level of 23 million vehicles to an anticipated 29 million in 2015. According to Bohr: "In all the world's main sales markets, they can turn to Bosch as a partner." In Japan, too, Bosch is currently growing: after adjusting for special effects, sales here are expected to grow by some 3.5 percent in 2007, to 300 billion yen (1.9 billion euros). With automotive technology, Bosch sales in Japan will come to some 260 billion yen (1.65 billion euros). This is an increase of nearly 3 percent.

Bosch Japan: the regional company with the strongest sales in Asia Pacific
In Japan, Bosch employs nearly 7,800 associates, manufactures at 20 plants, and has five engineering centers – making it one of the biggest German employers in the country. In terms of sales, Japan is also the strongest market in Asia Pacific, and a hub for Bosch's Asian business activities. Its Japanese associates are part of a worldwide network of 165,000 associates working in automotive technology. Of these, nearly 23,000 work in research and development, at close to 50 development sites worldwide. "Wherever our Japanese customers are expanding their activities, we are already there," Bohr said. International presence is paying off: in China, for example, Bosch will grow its automotive technology business by some 30 percent in local currency terms in 2007, and in India by 25 percent. For Asia Pacific as a whole, the figure is eleven percent. Worldwide, Bosch is expected to record four percent growth in automotive technology to roughly 28 billion euros (4.4 trillion yen) – which translates into a six percent increase if currency effects are ignored.

Solutions for climate protection and road safety
The main opportunities for growth are to be found in activities to protect the global climate: "For us, these tasks are both a challenge and an opportunity," Bohr said. Above all, these activities are promoting the global spread of economical diesel vehicles, with their low carbon footprint. Diesel's global share of newly registered vehicles is expected to increase from 23 to 28 percent by 2015. "At present, we sell one fifth of our high-pressure diesel systems in Asia and America – we expect this will increase to roughly one-half by 2015," Bohr said. Evidence of this is provided by many development projects all across the world, including projects with Japanese automakers. This is an opportunity for the "clean diesel," not least in view of fuel prices in Japan, which have risen by a good ten percent since the beginning of the year.

The second generation of Bosch gasoline direct injection systems also makes a significant contribution to reduced C0₂ emissions and fuel consumption. This year, the company will sell 900,000 such systems worldwide. In 2010, this figure is likely to have reached the two-million mark. "We are optimizing the combustion engine further, we are also combining it with the electric motor," Bohr said. "We have won orders for hybrid systems for gasoline and diesel engines, and are preparing for the start of production."

One of Bosch's benchmark innovations – Electronic Stability Control or ESC – is also becoming increasingly popular in Japan. While every fifth newly manufactured vehicle here was equipped with ESC in 2006, by 2012 this is expected to be every second vehicle. This will bring the Japanese government closer to its target of halving the number of road deaths in the country by 2013.

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 275,000 associates generated sales of 38.2 billion euros in fiscal 2009. 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 growth. Each year, Bosch spends more than 3.5 billion euros for research and development, and applies for some 3,800 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.

PI5980 - October 23, 2007