Bosch today

Robert Bosch GmbHPostfach 10 60 5070049 StuttgartGermanywww.bosch.comBosch today2010 edition

UnternehmensbereichThe Bosch VisionKraftfahrzeugtechnikCreating value – sharing valuesAs a leading technology and services company, we takeadvantage of our global opportunities for a strong andmeaningful development. Our ambition is to enhance thequality of life with solutions that are both innovative andbeneficial. We focus on our core competencies in automotiveand industrial technologies as well as in productsand services for professional and private use.We strive for sustained economic success and a leadingmarket position in all that we do. Entrepreneurial freedomand financial independence allow our actions to beguided by a long-term perspective. In the spirit of ourfounder, we particularly demonstrate social and environmentalresponsibility — wherever we do business.ContentsBosch today4 The Bosch Group at a Glance5 Key Data6 The Business Year 200910 Technology and Innovation14 Automotive Technology20 Industrial Technology24 Consumer Goods andBuilding Technology28 Our Responsibility34 Robert Bosch Stiftung3 | 3Our customers choose us for our innovative strength andefficiency, for our reliability and quality of work. Our organizationalstructures, processes, and leadership toolsare clear and effective, and support the requirements ofour various businesses. We act according to commonprinciples. We are strongly determined to jointly achievethe goals we have agreed upon.As associates worldwide, we feel a special bond in thevalues we live by — day for day. The diversity of our culturesis a source of additional strength. We experienceour tasks as challenging, we are dedicated to our work,and we are proud to be part of Bosch.36 The Bosch Group in Germany38 The Bosch Group in Europeoutside Germany40 The Bosch Group outside Europe42 Milestones in Product History44 Milestones in Company History46 Management47 How to Contact us

The Bosch Group at a GlanceKey DataBosch today 4 | 5Shareholders of Robert Bosch GmbH3 Robert Bosch Stiftung GmbH | 92 % share of equity | No voting rights3 Bosch family | 7 % share of equity | 7 % voting rights3 Robert Bosch Industrietreuhand KG | 93 % voting rights3 Robert Bosch GmbH | 1 % share of equity | No voting rightsThe Bosch Group is a leading global supplier of technology andservices. In the areas of automotive and industrial technology,consumer goods, and building technology, some 275,000 associatesgenerated sales of 38.2 billion euros in fiscal 2009. The BoschGroup comprises Robert Bosch GmbH and its more than 300 subsidiariesand regional companies in over 60 countries. If its salesand service partners are included, then Bosch is represented inroughly 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 allits products and services, Bosch enhances the quality of life byproviding solutions which are both innovative and beneficial.Bosch Group 2008 2009Sales revenue 45,127 38,174percentage change fromprevious year – 2.6 – 15percentage share of sales revenuegenerated outside Germany 74 76Associates 1 281,717 270,687located in Germany 114,360 111,710located outside Germany 167,357 158,977Capital expenditure 3,276 1,892as percentage of sales revenue 7.3 5.0Research and development cost 3,889 3,603as percentage of sales revenue 8.6 9.4Profit before tax 942 – 1,197The company was set up in Stuttgart in 1886 by Robert Bosch(1861–1942) as “Workshop for Precision Mechanics and ElectricalEngineering.” The special ownership structure of Robert BoschGmbH guarantees the entrepreneurial freedom of the Bosch Group,making it possible for the company to plan over the long term andto undertake significant up-front investments in the safeguardingof its future. Ninety-two percent of the share capital of RobertBosch GmbH is held by Robert Bosch Stiftung GmbH, a charitablefoundation. The majority of voting rights are held by Robert BoschIndustrietreuhand KG, an industrial trust. The entrepreneurialownership functions are carried out by the trust. The remainingshares are held by the Bosch family and by Robert Bosch GmbH.Profit after tax 372 – 1,214Currency figures in millions of euros1 As per January 1, 2009 | 20103 www.bosch.com

The Business Year 2009Bosch today6 | 7Two thousand and nine was the most difficult fiscal year theBosch Group has experienced in recent decades. The globaleconomic crisis led to a considerable drop in sales, and theresult for the year disclosed a serious loss. By imposing comprehensivecost-cutting measures, we were able to limit lossand to secure our sound financial position. Despite the crisis,we further strengthened our market position, particularly in theAsian growth markets. At the same time, we made progress inareas of future significance, such as energy efficiency, resourceconservation, and environmental protection.Business in Asia is a stabilizing factorOur broad international base paid dividends – even in theface of the severe economic crisis of 2009. Although ourbusiness activities in every region were affected by thefinancial and economic crisis at the beginning of the year,we subsequently benefited from the dynamic economicactivity that developed in the Asian markets from the middleof the year onward. This applied initially to China, andthen also to India.In 2009, both the regional presence and the diversified structureof the Bosch Group made it possible to compensate forthe severe drop in sales in individual units. This appliesespecially to the Consumer Goods and Building Technologybusiness sector, whose consumer-related areas were muchless badly affected by the crisis than were our other twobusiness sectors. Our sales of consumer goods and buildingtechnology fell by roughly 5 percent to 11.3 billion euros.Bosch produced its 200 millionth brake control system in 2009.We also started production at our first local ABS manufacturing facilityin India in the same year.Severe downturn in Industrial TechnologyThe Automotive Technology business sector was the first tobe particularly hard hit by the economic downturn, with thesharp decline that began in the fall of 2008 continuing intothe first few months of 2009. Business began to pick up againhalfway through the year, however. At 21.7 billion euros,total sales fell 18 percent short of their prior-year level. Thesteepest drop in sales in 2009 was recorded by our IndustrialTechnology business sector. In this business sector, the lowpoint of the downturn was reached only in the third quarterof 2009. For the year as a whole, sales fell by 24 percent to5.1 billion euros.

Bosch today8 | 9Clearly negative resultThe decline in sales resulted in a substantial loss. We disclosea negative pre-tax result of 1.2 billion euros for 2009,as compared with a positive result of some 940 million eurosin the previous year. Apart from the fall in sales, the negativeresult was mainly due to the high provisions set up in connectionwith restructuring measures, as well as to substantialimpairment losses. These negative factors were onlypartly offset by our comprehensive cost-cutting measuresand the lower cost of raw materials.Adjusting workforce with a sense of proportionDespite the economic crisis and the resulting slump in sales,our goal for 2009 was to keep our core team together as faras possible, but without shirking any structural changes thatwere necessary. At times, up to 100,000 associates – some65,000 of them in Germany – were affected by reduced workinghours. Together with employee representatives, wedevised a series of solutions – even for countries that did nothave corresponding government-subsidized and collectivelyagreed schemes in place. By the end of the year, thenumber of associates worldwide had fallen by 11,000 – or4 percent – to 271,000. Disregarding the associates whojoined the company as a result of acquisitions, the decreasewas around 14,000 or 5 percent.The Bosch Group is active in the following fields:3 Automotive technology 3 Power tools3 Automation technology 3 Heating technology3 Packaging technology3 Household appliances3 Solar energy3 Security systemsour sales. Therefore, one of our prime objectives in 2009was to maintain our innovative strength. Annual researchand development expenditure was maintained at a highlevel of around 3.6 billion euros. At the end of the year, some33,000 associates were employed in this area. Filing morethan 3,800 patents in 2009, we were able to maintain a veryhigh level of innovation.Sticking to the strategyIn 2009 we adhered to our long-term strategy. We did soeven though our top priority was initially that of securingthe company’s future. So we had to manage the balancingact of doing what was immediately necessary to secure thecompany’s existence and doing what was required in thelong term to develop the Bosch Group further. Our goal wasto keep our options open for the future despite the need togive priority to crisis management. Therefore, we made aconscious decision not to minimize losses in the short term.Maintaining our innovative strengthEnvironmental protection is a major growth market for thefuture. In the years ahead, products that help improve energyefficiency or reduce emissions will be important growthdrivers. Even today, they account for around one-third ofCore elements of our strategy thus remain in place despitethe difficult situation. These include a strong internationalpresence, focused diversification, and a high level of innovativestrength.

Technology and InnovationBosch today 10 | 11Climate change and scarcity of natural resources are the greatchallenges of the future. We are meeting these challenges withinnovations. At all times, our guiding principle is to enhancethe quality of life. We focus on improving energy efficiency in allbusiness fields, on driving forward electrification for both automotiveand industrial applications, on utilizing renewable energies,and on making manufacturing technologies more efficient.New research center plannedThe inventiveness of our associates is the bedrock of ourinnovative strength. We filed 3,870 patent applications in2009, making us one of the most innovative companies inGermany. Some 45 percent of these patents were directedat protecting the environment and conserving resources.We spent some 3.6 billion euros on research and developmentin 2009, equivalent to 9.4 percent of sales revenue.Some 33,000 associates work in this area, more than 1,300of them in our corporate sector Research and AdvanceEngineering.To enable us to maintain our pace of innovation going forward,we are setting up a new center for research andadvance engineering near Stuttgart. There, we will pool ourcompetencies and strengthen interdisciplinary collaboration.Initially, around 1,100 permanent staff will work atthis research center.We are improving materials and processes in order to make microelectromechanical(MEMS) sensors for cars smaller and more robust. This will providethe basis for control processes that further reduce fuel consumption.Economical electric motorOne focal point of our research activity is the future ofelectric vehicle drives. Following initially subdued growthover the next few years, we expect the market share ofelectric vehicles to increase as from 2020. In today’shybrid vehicles, electric drives are still combined withinternal-combustion engines. We are convinced that thiscomparatively complex technical solution is only an interimstep. The key factors of future electric vehicles areenergy efficiency and weight. We therefore examine thefunction of each and every component to find out howmuch energy it consumes, how heavy it is – and whether

Bosch today 12 | 13there is possibly an alternative solution. By far the biggestcost driver is the battery. Together with our Korean partnerSamsung SDI, we are working to cut its weight and its cost,and to vastly increase its performance.Projects in microsystems technologyVia two projects, we are an important partner in the“MicroTEC Südwest” cluster. This was one of five winnersof the German government’s competition to find outstandingtechnology clusters. As a lead company, Bosch is responsiblefor the activities focused on mobility, whose strategicaim is to develop new technologies in microsystems engineeringand materials research. Above all, it is hoped that thiswork will result in robust sensors that can withstand hightemperatures and be used for automotive drives that conserveresources. A further aim is to develop highly sensitivefar-infrared detectors for cost-effective driver assistancesystems.Lasers structure solar cellsWe are working successfully to enhance the market opportunitiesof future technologies. Examples include manufacturingprocesses for organic photovoltaics. In contrast toinorganic photovoltaics, organic photovoltaics does not usesilicon. Instead, solar energy is absorbed and convertedinto electricity by means of thin polymer films depositedon a flexible substrate. The research departments of BASF,Bosch, and Heliatek GmbH, Dresden (in which we hold ashare of 20 percent), are developing thin-film systems likethis. To make functioning solar modules from them, theindividual ultra-thin films have to be scored into strips.We are developing laser processes to be used in the manufacture of solarmodules. Finer structures and enhanced electrical properties increaseefficiency, allowing more sunlight to be converted into electrical energy.In this way, a high-performance array of interconnectedphotovoltaic thin-film cells is produced. Extreme precisionis needed for this manufacturing process. Ultrashort pulselasers are particularly suitable for the structuring operation.They are so precise and dependable that they meet theexacting requirements of large-scale series production.3 www.research.bosch.com

Automotive TechnologyBosch today14 | 15In 2009, the automotive industry experienced its worsteconomic downturn for decades. In 2009, global vehicleproduction fell by 12 percent compared to the previousyear and by 16 percent compared to 2007. The markets inNorth America and Japan plummeted especially sharply.And Europe was also hard hit. In contrast, the Asian marketscontinued to record high rates of growth. With sales fallingsignificantly overall, the sales revenue of our AutomotiveTechnology business sector decreased by 18 percent to21.7 billion euros.Key data 2009Associates 159,420Sales revenue 21,716Capital expenditure 1,165R & D cost 2,862Currency figures in millions of eurosAutomotive Technology is the largest Bosch business sector.It generates some 57 percent of total group sales. The sevenlargest business areas are: injection technology for internalcombustionengines, powertrain peripherals, alternativedrive concepts, systems for active and passive driving safety,assistance and comfort functions, technology for in-car informationand communication, as well as concepts, technology,and service for the automotive aftermarket.Internal-combustion engines still have great potentialIn 2009, we continued to work intensely on the developmentof future vehicle generations. Our aim is to make personalmobility as eco-friendly and resource-conserving as possible.We firmly believe that while the automobiles of the futurewill be powered by electricity, the conventional internalcombustionengine will remain the dominant drive technologyfor the next 20 years. We therefore continue to developour technology for gasoline and diesel engines on the onehand, while at the same time pressing ahead with our workon electric and hybrid vehicles.Our new semiconductor plant in Reutlingen went into operation in March 2010.State-of-the-art processes ensure competitive costs and also allow the companyto start production of power semiconductors. A total of some 600 million euroswill be invested in this project.In the years ahead, reducing the fuel consumption, and thusalso the CO 2 emissions, of the vehicle fleet will mainly be

Bosch today16 | 17achieved by optimizing internal-combustion engines. Gasolineengine efficiency can be increased a further 30 percentby means of downsizing, which is what we call the combinationof a reduced displacement volume with turbochargingand direct injection systems. Our second generation of gasolinedirect injection systems has been in series productionsince 2007, and is used by many automakers worldwide.We expect the market for this technology to triple by 2016.The fifty-fifty joint venture company we founded with MahleGmbH & Co KG, Stuttgart, in 2008 will allow us to keep pacewith the rising demand for turbochargers.By combining improvements in our common-rail injectiontechnology with other engine-related measures, we can alsofurther reduce the fuel consumption of diesel engines by agood 30 percent. In 2009, for example, new solenoid injectorswith a pressure-balanced valve went into production.As these injectors open and close more quickly, the intervalsAt the beginning of 2010, we produced our three millionth CP4 pumpfor common-rail systems. This pump builds up high pressure especially fast.With solutions like this, we can reduce diesel consumption by some30 percent, paving the way for an 85 mpg mid-size car.Bosch manufactures automotive technologyat 125 locations in 28 countries.Divisions3 Gasoline Systems3 Starter Motors and Generators3 Diesel Systems3 Car Multimedia3 Chassis Systems Brakes3 Automotive Electronics3 Chassis Systems Control3 Automotive Aftermarket3 Electrical Drives3 Steering Systems 11 ZF Lenksysteme GmbH (50 % Bosch-owned)between the individual injections are very short, and thismakes for better combustion. We are currently working ona common-rail system for high-performance engines. Thisuses injection pressures of over 2,000 bar and piezo valvesto atomize the diesel fuel even more finely. These systemscan be configured to comply with the Euro 6 emission regulation,which is set to come into effect in 2014.Systems for clean exhaust emissionsWe offer two series-produced systems for treating theexhaust gas of diesel vehicles. The Denoxtronic metering

Bosch today18 | 19system injects urea into the exhaust-gas flow and, in combinationwith an SCR catalyst, reduces nitrogen-oxide emissions.Our second metering system, Departronic, injects diesel fuelinto the exhaust duct, thus facilitating the regeneration ofthe particulate filter.At the beginning of 2010, we joined forces with EberspächerGmbH & Co KG, Esslingen (Germany), and Deutz AG, Cologne(Germany), to establish the joint venture company BoschEmission Systems GmbH & Co KG in Stuttgart. The company,in which we have the industrial leadership, is set to be readyto supply complete exhaust-gas treatment systems for constructionand agricultural machinery and commercial vehiclesfrom the end of 2010.Our hybrid technology goes into series productionAt the end of 2009, some 500 associates were working intensivelyon alternative drive technologies. Since the startof 2010, we have supplied technology for the hybrid versionsof two European vehicle models. Furthermore, ourSB LiMotive joint venture for automotive lithium-ion batteries,which was founded with Samsung SDI in 2008, wasawarded its first contract. From the electric motor and powerelectronics to the battery, we therefore offer automakers allthe components they need for the electrification of the powertrain,whether for hybrid vehicles or for all-electric cars.We achieve further reductions in fuel consumption by developinginnovations for auxiliary powertrain systems. In 2009,for example, we supplied the one millionth starter for startstopsystems, and we foresee strong growth rates for thiscost-effective technology in the years ahead, particularly inEurope. The system can be improved further still in combinationwith our ultra-efficient generators, which went intoseries production at the start of 2010. Even at low enginespeeds, these generators allow the starter battery to be chargedfaster, which means that the start-stop function can be usedmore frequently. In turn, optimized electric motors increasethe efficiency of fan modules or wiper systems.The electric motor for the Bosch hybrid drive develops power in a minimum ofspace, allowing it to be integrated into the powertrain. There, the machine hastwo functions: as a motor, it permits purely electric driving over short distances,while as a generator it feeds braking energy back into the battery.3 www.bosch-kraftfahrzeugtechnik.de

Industrial TechnologyBosch today20 | 21It was only after some delay that capital goods were affectedby the global economic and financial crisis. Due to a healthybacklog of orders, the low point of business activity was notreached until the third quarter of 2009. Annual sales of theIndustrial Technology business sector fell by 24 percent to5.1 billion euros. This was largely due to business developmentsat our subsidiary Bosch Rexroth, and more specificallyits drive and control technology business.Key data 2009Associates 42,266Sales revenue 5,105Capital expenditure 393R & D cost 309Currency figures in millions of eurosOur activities in Industrial Technology include automationtechnology, packaging technology, and photovoltaics.The subsidiary Bosch Rexroth offers all major technologiesfor machine drive, control, and motion applications –hydraulics, electrics, mechanics, and pneumatics. In packagingtechnology, Bosch specializes in machinery andlines for the confectionery, foodstuff, and pharmaceuticalsindustries.At the beginning of the process of assembling large wind-power gearboxes,a 1.2 metric-ton spur-gear stage is placed in the gearbox case. The end productweighs 22 metric tons. Fitted in a 2.5-megawatt wind turbine, it helps toproduce electricity for 1,400 homes.Commitment to wind powerAs a technology leader and systems supplier, Bosch Rexrothdelivers highly-efficient drive and control solutions thatare used in a wide range of industries and areas of activity,from theater stages to tunnel building. Its solutions areeven used to exploit marine energy, which will be an importantsource of energy in the future. Wind turbines area promising market with great potential for growth. Forthis reason, we have expanded our manufacturing capacityfor large wind-power gearboxes in Nuremberg and Beijing.In addition, we have acquired a majority shareholding inIGUS ITS GmbH, headquartered in Dresden. The companydevelops, produces, and sells monitoring systems for windturbine rotor blades.

Bosch today22 | 23Packaging technology: large ordersIn 2009, business developments in packaging technologyremained relatively stable. We stepped up our activities inAsia, and our strong market presence helped us win severallarge orders in China. For example, we have won an orderto supply a Chinese drug company with five lines for fillingliquid pharmaceutical products in sterile conditions.Photovoltaics market offers potentialAfter recording strong growth in 2008, the photovoltaicsmarket shrank in 2009. The global economic and financialcrisis, coupled with the discontinuation of incentive programsand tough competition from Chinese suppliers, caused pricesof solar cells and modules to plummet. However, we areconfident that the enormous potential of solar energy forsupplying mankind with energy will take on increasing importance.That is why we are systematically building up ourBosch manufactures industrial technologyat 100 locations in 25 countries.3 Packaging TechnologyDivisions– Packaging machines and lines3 Drive and Control Technology 1– Electric drives and3 Solar Energy 2controls– Solar power stations– Hydraulics– Solar modules– Linear-motion technology– Solar cells– Assembly technology– Wafers– Pneumatics– Silicon recycling1 Bosch Rexroth AG (100% Bosch-owned) 2 Bosch Solar Energy AG (100% Bosch-owned)What looks like a silver rocket is monocrystalline silicon as it comes outof the crystal grower at Bosch Solar Energy in Erfurt, Germany. Slicedinto wafers, it is fabricated with the help of MEMS technology into 6,000solar cells that can produce 24 kilowatts of electricity.Solar Energy division. For example, we acquired a majorityshareholding in aleo solar AG in Prenzlau and Oldenburg,Germany, an established brand manufacturer of solar modules.We also acquired 64 percent of the shares in JohannaSolar Technology GmbH, Brandenburg, Germany, whichmanufactures thin-film solar modules.3 www.boschrexroth.com3 www.boschpackaging.com3 www.bosch-solarenergy.de

Consumer Goods andBuilding TechnologyBosch today24 | 25Our Consumer Goods and Building Technology business sectordid not feel the effects of the economic and financial crisisin 2009 as badly as our other business sectors. Sales of powertools, heating technology, security systems, and householdappliances fell by 4.8 percent to 11.3 billion euros. Despite difficultcircumstances, we were able to strengthen our positionin many areas and increase our market share.Key data 2009Associates 60,464Sales revenue 11,331Capital expenditure 311R & D cost 428Currency figures in millions of eurosIn its Consumer Goods and Building Technology businesssector, Bosch operates in the areas of power tools, heatingsystems, and security systems. The business sector alsoincludes the household appliances of the fifty-fifty jointventure BSH Bosch und Siemens Hausgeräte GmbH.Power toolsThe global market for power tools continued to shrink in2009. This was due to the sustained downturn in the constructionindustry and the weak economic situation in manyconsumer goods markets. Industrial power tools were significantlyhit by the drop in demand. This was largely due tothe real estate crisis in North America. Although the trendtoward DIY had a positive impact on power tools for do-ityourselfers,it was not enough to fully compensate the slump.Our garden tool sales also benefited from the trend towardDIY. We were able to outperform the market as a whole andto extend our position. The accessories segment benefitedabove all from the synergies generated by the acquisitionswe made in 2008.We acquired the large-scale boiler manufacturer Loos in 2009, helping usfurther expand our international business in commercial steam and hotwater boilers.

Bosch today26 | 27Bosch manufactures consumer goods and building technologyat 84 locations in 28 countries.3 Household Appliances 2Divisions– Cooking, dishwashing3 Power Tools– Washing, drying– Power tools for the building trade,– Cooling, freezingindustry, and the DIY sector– Cleaning of floor surfaces– Accessories– Consumer products– Garden tools– Network-compatiblehousehold appliances3 Thermotechnology 1– Heating and hot-water systems3 Security Systems 3– Open-loop and closed-loop control systems – Product business– Building security– Communication centers1 Bosch Thermotechnik GmbH (100% Bosch-owned)3 Bosch Sicherheitssysteme GmbH2 BSH Bosch und Siemens Hausgeräte GmbH(100% Bosch-owned)(50% Bosch-owned)and industry, has further expanded our position in thisglobal growth market.Security systemsBosch is one of the world’s leading suppliers of electronicsecurity and communications systems. The company’s chiefareas of activity are video surveillance, public address, evacuation,and access control. Our security solutions are used atmany diverse locations, such as banks, city centers, industrialcomplexes, retail stores, train stations, and airports. Themarket for security technology declined in 2009. Our productbusiness was especially affected by this. In contrast, a largenumber of major projects ensured that the building technologybusiness remained roughly on a par with the prior year.The communication centers in the service business saw theirsales increase.Heating technologyIn our heating systems business, the negative economicdevelopment was offset by steady orders for replacementsystems. The German market in particular had a stabilizingeffect on our business development. To keep pace with thestrong rise in demand for solar thermal systems, we continuedto expand our manufacturing capacities. For instance,we took a new manufacturing plant into operation at ourlocation in Wettringen, Germany, thereby increasing our productionof high-performance solar collectors from 50,000 to200,000 units a year. Our acquisition of Loos DeutschlandGmbH, Gunzenhausen, Germany, a leading European supplierof highly-efficient steam and hot-water boilers for tradeHousehold appliancesBSH Bosch und Siemens Hausgeräte GmbH – in which Boschand Siemens each hold a 50 percent share – has long played apioneering role in the development and production of innovativeand energy-efficient household appliances. In additionto helping conserve natural resources, these productsalso give the company a unique competitive edge in the faceof tough international competition. BSH is one of the world’stop three household-appliance manufacturers, with morethan 60 companies in over 40 countries.3 www.bosch-pt.com3 www.bosch-thermotechnology.com3 www.boschsecurity.com3 www.bosch-home.de

Our ResponsibilityBosch today28 | 29In challenging times, expectations directed at management areparticularly high. In such times, it is more crucial than ever tomaintain a balance between business, technological, social, andecological concerns. This also means striking a balance betweensafeguarding the company over the short term and preserving itsbusiness opportunities over the long term. However, in times likethese, corporate responsibility also means facing up to essentialadjustments as well as proactively determining and driving forwardthe changes necessary in the company.LeadershipOur goal is to secure the long-term and successful developmentof our company. Our entrepreneurial freedom andfinancial independence enable us to act beyond the immediatemeasures required to maintain the company, even whenthe going gets tough. It is clear, for example, that the currenteconomic crisis is driving globalization ever faster. And beyondthe short term, issues such as resource conservation,energy efficiency, and environmental protection continue togrow in importance.The key to this independence is our special ownership structure– with a charitable foundation and the Bosch family asshareholders, and with an industrial trust that carries outthe entrepreneurial ownership functions. We enjoy a closerelationship with the descendants of our company founder,who are actively involved in our supervisory council andthe meetings of the shareholders, as well as in the trust. Thisrelationship is an important part of our corporate cultureand strengthens the identity of the Bosch Group.We conducted our third associate survey in 2009. Bosch associates in over50 countries were asked for their views on how to improve the company –voluntarily and anonymously.A frame of reference in difficult timesWith 270,000 associates worldwide, an international companylike the Bosch Group can draw great strength fromshared values and guidelines, particularly in tough times.In order to provide our associates with a frame of reference,we have collected the principles and guidelines which weobserve in our dealings with our partners and each otherand published them in a brochure known as the House ofOrientation. The House of Orientation comprises our Boschvision as our shared image of the future, our BeQIK mission

Bosch today30 | 31as a standard for our everyday action, and our core competenciesfor the ongoing successful development of our company.The Bosch values are a further central element of theHouse of Orientation. In addition to a clear future and resultfocus, we also commit to responsibility, initiative and determination,openness and trust, fairness, and cultural diversity,as well as to reliability, credibility, and legality. We expect allour associates to comply with legal requirements and internalregulations. We have compiled the key principles of ourethics policy in a code of business conduct.AssociatesFollowing the associate surveys of 2005 and 2007, we conductedour third in 2009. We asked some 242,000 associatesto evaluate the quality of management, conditions in theworkplace, the company’s image, and, for the first time,work-life balance. The excellent response rate of 82 percentdemonstrates that even in the current situation this tool isregarded as important.Together with partners from politics and science, we foundeda center for power electronics studies and research in Germany.Up to the year 2020, this alliance will invest over25 million euros in teaching posts and undergraduate placesat the University of Stuttgart and the Reutlingen Universityof Applied Sciences.In order to prepare our specialists and managers for evermore complex challenges in the world’s markets, we promotetheir development with a series of tools and initiatives.We use our competence management program to ascertainA family of six in Canada is demonstrating how to live in comfort for ayear without oil or gas. Bosch supplied the building technology, fromphotovoltaic and solar thermal systems to the electric heat pump for airconditioning. The objective of the project is to generate more electricitythan is consumed in the course of a year.training requirements. To cover these requirements, we haveset up Bosch Training Centers in Brazil, the U.S., Germany,India, China, and Japan. They offer globally standardizedassociate training programs.EnvironmentThe demand for “green” technology of the kind offered byBosch for vehicles, buildings, and industry is rising againsteadily. The combination of tougher environmental regulationsand programs to stimulate the economy is driving

Bosch today32 | 33growth in renewable energies. Eco-friendly, resource-savingproducts now generate over one-third of our sales. Thissegment also accounts for some 45 percent of our researchand development expenditure. Within the company, too, wehelp to protect the environment. Our climate protectionmanagement focuses not only on considering environmentalimpact when developing and manufacturing our products,but also on improving the environmental footprint of all ourlocations.By 2020, we want to have cut carbon dioxide emissions at ourmanufacturing sites by at least 20 percent from their 2007level. Internal targets, ongoing reporting, and a fosteringof associate awareness will help boost energy productivity.For instance, a waste heat recovery system in Reutlingen,Germany, saved around 3,000 metric tons of CO 2 in 2009alone.SocietyWhen the Chinese province of Sichuan was hit by severalearthquakes in 2008, our Chinese associates donated generouslyto help the victims. In September 2009, 17 monthsafter the earthquakes, two new schools opened in theonce-devastated province.Sparking enthusiasm and early interest in engineering andscience is one of our priorities, which explains our involvementin the German youth science competition “Jugendforscht.” We have organized the Baden-Württemberg regionalcompetition since 1985. Bosch apprentices have alsosuccessfully participated in this competition.As a founding member of “acatech,” the German Academyof Engineering and Technology, we also promote the interestsof these disciplines. Our objective here is to strengthenawareness of the importance of future technologies for societyand the economy, and to encourage more young peopleto study science and technology.The children in Heishui County in China are thrilled with their new school. A yearand a half after an earthquake devastated the region, lessons are underway againin well-equipped classrooms. This was made possible by donations from Boschand its associates.3 http://csr.bosch.com3 www.bosch-career.com

Robert Bosch StiftungBosch today34 | 35Since 1964, Bosch’s majority shareholder has been RobertBosch Stiftung GmbH, a charitable foundation. The Stiftungcarries on the charitable and social endeavors of the company’sfounder in contemporary form. It sees itself as a foundationthat pursues its objectives both with programs and institutionsof its own, and by supporting suitable projects and initiativesproposed by others for tackling the tasks faced by society.In line with the values of Robert Bosch, as well as with thewishes he expressed in his will, many of the foundation’sprojects develop and test solutions for social and societalchallenges. These include the integration of migrants, theshaping of demographic change, education, health, agerelatedissues, and the sustainable use of our naturalresources. These projects are funded by the dividends theStiftung receives as a shareholder in Robert Bosch GmbH.Making encounters possibleOn an international level, foundations can also play a part inmaintaining constructive dialogue even in difficult situations,in helping parties see different perspectives in a conflict situation,and in creating understanding for others by enablingencounters, especially among young people. Programs establishedwith these goals in mind include a summit meetingfor European citizens, an exchange program for young executivesin Europe’s government administrations, and meetingsbetween young German and Russian entrepreneurs.Tradition and modernity – The Robert Bosch House, the former residenceof the company founder, today is the seat of the Robert Bosch Stiftung.The Stiftung also has offices in the neighboring Bosch Haus Heidehof, whichserves as a training and conference center for the Bosch Group.Accelerating the pace of reformThe “Deutscher Schulpreis” (German school award) and alarge number of other educational programs run by the Stiftungare designed to help accelerate the pace of reform inGermany’s education system. The Stiftung is focusing increasinglyon the transition from school to training and the workingworld. With regard to ageing and demographic change,the central issue is how preconceptions of age must be changedso that there is greater awareness of the potential of olderpeople.3 www.bosch-stiftung.de

UnternehmensbereichThe Bosch Group in GermanyBosch today37 36 | 37KraftfahrzeugtechnikCorporate HeadquartersGerlingen near StuttgartResearch and DevelopmentLocationsAbstatt, Bamberg, Bühl/Bühlertal,Crailsheim, Elchingen, Erbach,Erfurt, Gerlingen, Giengen,Grasbrunn, Hannover, Hildesheim,Horb, Leinfelden, Leonberg, Lohr,Lollar, Plochingen, Reutlingen,Schwäbisch Gmünd, Schweinfurt,Schwieberdingen, Stuttgart,Traunreut, Waiblingen, WernauManufacturing Locations –Automotive TechnologyAnsbach, Bamberg, Berlin,Bietigheim, Blaichach/Immenstadt,Breidenbach, Bremen, Bühl/Bühlertal,Eisenach, Göttingen, Herne,Hildesheim, Homburg, Munich,Nuremberg, Plochingen, Reutlingen,Rutesheim, Salzgitter, SchwäbischGmünd, Stuttgart, Tamm, WaiblingenTechnical Sales Offices forAutomotive Original EquipmentBerlin, Braunschweig, Cologne,Frankfurt am Main, Munich, StuttgartManufacturing Locations –Industrial TechnologyArnstadt, Augsfeld, Brandenburga.d. Havel, Chemnitz, Crailsheim,Elchingen, Erbach, Erfurt, Fellbach,Hannover, Homburg, Horb, Ketsch,Lohr, Nuremberg, Oberramstadt,Prenzlau, Remshalden, Schweinfurt,Stuttgart, Viersen, Volkach,Waiblingen, WittenManufacturing Locations –Consumer Goods and BuildingTechnologyBad Neustadt, Berlin, Bretten,Dillingen, Eibelshausen, Giengen,Gunzenhausen, Leinfelden, Lollar,Murrhardt, Nauen, Neukirchen,Ravensburg, Regensburg, Sebnitz,Straubing, Traunreut, Wernau,WettringenSales and Service CentersBerlin, Bochum, Cologne, Ditzingen,Düsseldorf, Essen, Fellbach,Frankfurt am Main, Fürth, Hamburg,Hannover, Karlsruhe, Leipzig,Magdeburg, Munich, Nuremberg,Oldenburg, Ratingen, Rodgau,Stuttgart, Weimar, Wetzlar,WillershausenTotal number of associates inGermany as per 1. Januar 2010:111,700This list includes locations with100 or more associatesViersenCologneHomburgEssenBochumHerneRatingenDüsseldorfWittenBühl/BühlertalTammOldenburgSchwieberdingenWettringenBremenBreidenbachEibelshausenLollarWetzlarHannoverHildesheimFrankfurt am MainRodgauLohrOberramstadtKetschBrettenKarlsruheHorbDitzingen Fellbach/WaiblingenRutesheim GerlingenStuttgartLeonbergRemshaldenPlochingenLeinfeldenWernauErbachHamburgBraunschweigSalzgitterWillershausenErfurtWeimarEisenach ArnstadtBad NeustadtSchweinfurtAugsfeld BambergVolkachFürthNurembergAbstattBietigheimAnsbachCrailsheimMurrhardtGunzenhausenReutlingenRavensburgGöttingenSchwäbisch GmündGiengenDillingenElchingenMunichBlaichach/ImmenstadtMagdeburgNauenLeipzigNeukirchenGrasbrunnTraunreutRegensburgBerlinBrandenburg a.d. HavelChemnitzStraubingPrenzlauSebnitz

The Bosch Group in Europeoutside GermanyBosch today39 38 | 39Austria 2,520 associatesManufacture of automotive technologyand industrial technology; development;sales; locations: Hallein,Linz, Pasching, Ternitz, ViennaBelgium 1,980 associatesManufacture of automotive technology;sales; locations: Brussels,TienenCzech Republic 7,210 associatesManufacture of automotive technologyand heating systems; development;sales; locations: Albrechtice,Brno, České Budějovice, Jihlava,Krnov, PragueDenmark 810 associatesManufacture of automotive andindustrial technology; sales; locations:Ballerup, Esbjerg, SandvedFinland 210 associatesSales; location: VantaaFrance 8,880 associatesManufacture of automotive technology,industrial technology, heatingsystems, and household appliances;development; sales; locations:Angers, Beauvais, Bonneville, Chelles,Drancy, Lipsheim, Mondeville, Moulins,Rodez, Saint-Ouen, St.-Thégonnec,Tremblay, Vendôme, VénissieuxGreece 560 associatesManufacture of household appliances;sales; location: AthensHungary 5,960 associatesManufacture of automotive technology,industrial technology, andpower tools; development; sales;locations: Budapest, Eger, Hatvan,MiskolcItaly 5,620 associatesManufacture of automotive technology,industrial technology, andpower tools; development; sales;locations: Bari, Brembate, Cernusco,Correggio, Milan, Modena, Modugno,Nonantolo, Offanengo, Pavullo,Reggio Emillia, Turin, Udine, VezzanoNetherlands 3,790 associatesManufacture of automotive technology,industrial technology, powertools, heating systems, and securitysystems; development; sales;locations: Amsterdam, Boxtel, Breda,Buinen, Deventer, Eindhoven,Hoevelaken, Nimwegen, Schiedam,Tilburg, WeertNorway 220 associatesSales; location: SkiPoland 2,060 associatesManufacture of automotive technologyand household appliances; sales;locations: Lodz, Warsaw, WroclawPortugal 3,240 associatesManufacture of automotive technology,heating systems, and securitysystems; sales; locations: Abrantes,Aveiro, Braga, Lisbon, OvarRomania 950 associatesManufacture of indsutrial technologyand security systems; sales; locations:Blaj, Bucharest, TimişoaraRussian Federation2,130 associatesManufacture of automotive technology,power tools, and householdappliances; sales; locations: Engels,Moscow, St. PetersburgSlovakia 690 associatesManufacture of automotive technologyand household appliances; sales;locations: Bernolakova, MichalovceSlovenia 740 associatesManufacture of industrial technologyand household appliances; sales;locations: Nazarje, Skofia LokaSpain 6,940 associatesManufacture of automotive technology,industrial technology, andhousehold appliances; sales; locations:Aranjuez, Barcelona, Buelna,Castellet, Esquiroz, La Cartuja, Lliça,Madrid, Montañana, San Sebastian,Santander, Treto, Vigo, Vitoria,ZaragozaSweden 1,750 associatesManufacture of industrial technologyand heating systems; sales; locations:Kista, Mellansel, Stockholm, Tranås,VagnhäradSwitzerland 3,310 associatesManufacture of industrial technologyand power tools; development; sales;locations: Beringen, Buttikon,Ecublens, Frauenfeld, Geroldswil,Solothurn, St. NiklausTurkey 8,230 associatesManufacture of automotive technology,heating systems, and householdappliances; development; sales;locations: Bursa, Cerkezköy,Istanbul, ManisaUkraine 310 associatesManufacture of automotive technology;sales; locations: Kiev, KrakovetsUnited Kingdom 4,770 associatesManufacture of automotive technology,industrial technology, powertools, and heating systems; sales;locations: Cardiff, Cirencester,Clay Cross, Denham, Glenrothes,Greetland, Milton Keynes, St. Neots,Stowmarket, WorcesterAs per: January 1, 2010This list includes countries and locationswith 100 or more associates, as well aslocations of non-consolidated subsidiaries.Further companies operate in Belarus,Bulgaria, Croatia, Estonia, Ireland, Latvia,Lithuania, Luxembourg, Malta, and Serbia.

The Bosch Group outside EuropeBosch today41 40 | 41Australia 2,250 associatesManufacture of automotive technology,industrial technology, andpower tools; development; sales;locations: Clayton, Melbourne,Rowville, SydneyBrazil 10,510 associatesManufacture of automotive technology,industrial technology, powertools, and household appliances;development; sales; locations:Aratú, Atibaia, Belo Horizonte,Campinas, Curitiba, Pomerode,São PauloCanada 570 associatesManufacture of indsutrial technologyand security systems; sales;locations: Mississauga, WellandChina 23,650 associatesManufacture of automotive technology,industrial technology, powertools, heating systems, securitysystems, and household appliances;development; sales; locations:Beijing, Changsha, Chuzhou, Dalian,Dongguan City, Gaomi City,Guangzhou, Hangzhou, Hong Kong,Nanjing, Ningbo, Shanghai,Shenzhen, Suzhou, Wu Jin, Wuxi,Xian, ZhuhaiIndia 19,400 associatesManufacture of automotive technology,industrial technology, andpower tools; development; sales;creation of software; locations:Ahmedabad, Bangalore,Bommanahalli, Chakan, Chennai,Coimbatore, Jaipur, Jalgaon,Koramangala, Naganathapura,Nashik, TumkurJapan 7,750 associatesManufacture of automotive technologyand industrial technology;development; sales; locations:Funabashi, Higashi-Matsuyama,Misato, Musashi, Odawara City,Ota-City, Oura, Takasaki, Tochigi,Tokyo, Tomioka, Tsuchiura,Yokohama, YoriiKorea 2,010 associatesManufacture of automotive technologyand industrial technology;sales; locations: Buyong, Daejoen,Gunpo-Si, YonginMalaysia 2,010 associatesManufacture of automotive technologyand power tools; development;sales; locations: Penang, PetalingJaya, Shah AlamMexico 6,850 associatesManufacture of automotive technologyand power tools; development;sales; locations: Aguascalientes,Juarez, Mexicali, México DF, Saltillo,San Luis Potosí, TolucaPeru 120 associatesManufacture of householdappliances; sales; location: CallaoSingapore 520 associatesSales; location: SingaporeSouth Africa 700 associatesManufacture of automotive technology;sales; locations: Brits, MidrandTaiwan 170 associatesManufacture of industrial technology;sales; location: TaipeiThailand 740 associatesManufacture of automotive technology;sales; locations: Amata City,Bangkok, RayongUSA 14,000 associatesManufacture of automotivetechnology, industrial technology,power tools, security systems,and household appliances; development;sales; around 90 locations,including Anderson/SC,Bethlehem/PA, Broadview/IL,Burnsville/MN, Charleston/SC,Farmington Hills/MI, Fayetteville/NC,Fountain Inn/SC, Knoxville/TN,Lincolnton/NC, Mount Prospect/IL,New Bern/NC, Plymouth/MI,South Bend/IN, St. Joseph/MIVenezuela 120 associatesSales; location: CaracasVietnam 120 associatesSales; location: Ho Chi Minh CityAs per: January 1, 2010This list includes countries and locationswith 100 or more associates, as well as locationsof non-consolidated subsidiaries.Further companies operate in Argentina,Chile, Colombia, Indonesia, Israel, Kazakhstan,New Zealand, the Philippines, and theUnited Arab Emirates.

Milestones in Product HistoryBosch today43 42 | 431887Construction of the first Boschlow-voltage magneto for stationaryinternal-combustion engines1897First installation of an ignitiondevice in a motor vehicle1902Delivery of the first spark plugsand the first high-voltage magnetoignition system1927Series production of Bosch fuelinjectionpumps for diesel engines1928First Bosch power tool1933Bosch refrigerator marks the startof household appliance manufacture1951Rollout of gasoline injectionpumps for vehicle engines1957Production of car transistor radios1958The first Bosch washing machinesare manufactured1964The Bosch dishwasher is launched1967Bosch Jetronic injection system goesinto series production1974Introduction of the ARI trafficinformation system1976Production of lambda sensorsDevelopment of the world’s firstswivel-arm industrial robot1978Market launch of ABS, the world’sfirst series-produced antilockbraking system1979Series production of Bosch Motronic(digital system to control gasolineinjection and ignition)1986Series production of traction controlsystem (TCS)Market launch of electronic dieselcontrol (EDC)1989Market launch of the Travelpilotnavigation system1995Market launch of vehicle navigationsystems with voice guidance todestination1996Series production of the VP44high-pressure diesel injection pump1997Series production of thecommon-rail high-pressurediesel direct injection system2000Series production of adaptivecruise control (ACC)Series production of the DI Motronicgasoline direct injection system2002First series application of electronicbattery management (EBM)Introduction of the Wallscanner(instrument to locate invisibleinstallations in walls)2003Series production of thethird-generation common-railsystem, with piezo inline injectorsMarket launch of the Ixo,the first power tool with lithium-ionrechargeable battery2004Series production of theDenoxtronic fuel-metering systemfor exhaust-gas treatment incommercial vehicles2005Deutscher Zukunftspreis 2005(together with Siemens) for thedevelopment of piezo-injectiontechnologySeries production of theactive night vision system forpassenger cars2006Development of a gasolinedirect injection system withpiezo elements2007Introduction of the start-stopsystem2008Series production of the parkingassistant200950 million common-rail systemssince 1997First diesel passenger-car on themarket equipped with Denoxtronic,the Bosch exhaust-gas treatmentsystem2010Rollout of the predictiveemergency braking systemIntroduction of the electronicstability program (ESP®)

Milestones in Company HistoryBosch today44 45 | 451861Robert Bosch born in Albecknear Ulm1886At the age of 25, Robert Boschopens his “Workshop forPrecision Mechanics and ElectricalEngineering” in Stuttgart1898First sales office outside Germanyopens in the U.K.1912First manufacturing site inthe U.S. opens1913Foundation of an independentapprentice training department, withan industrial apprentices’ workshop1919Establishment of the in-housenewspaper “Bosch-Zünder”1921Establishment of an after-salesorganization: the first Bosch Servicestations start work1932Acquisition of the naturalgas-fired appliance manufacturerJunkers & Co GmbH1933Acquisition of Ideal-Werke fürdrahtlose Telephonie AG(later Blaupunkt GmbH, now RobertBosch Car Multimedia GmbH)1942Robert Bosch dies, aged 801967Bosch-Siemens Hausgeräte GmbHjoint venture set up(known since 1998 as BSH Boschund Siemens Hausgeräte GmbH)1995Five joint ventures set up in China1996Acquisition of the brake operationsof AlliedSignal Inc in the U.S. andEurope1998Opening of a test center and testtrack in Boxberg, Germany1999Steering systems joint venture set upwith ZF Friedrichshafen AGAcquisition of a majority stakein the Japanese Zexel Corporation(known since 2000 as BoschAutomotive Systems Corporation)2001Acquisition of Detection SystemsInc, Fairport, NY (USA)Industrial leadership of MannesmannRexroth AG, and its merger withthe Automation Technology divisionto form Bosch Rexroth AG2002Acquisition of the subsidiaryCommunication, Security, & Imagingfrom Philips BV, Eindhoven, Netherlands(Bosch Security Systems BVsince 2003)Establishment of a company pensionscheme for Bosch associates2003Acquisition of Buderus AG, Wetzlar,Germany2004Opening of our engineering centerin Abstatt, GermanyAcquisition of Sigpack, the Swisspackaging machinery manufacturer2005Acquisition of the Swedish companyIVT Industrier AB, TranåsAcquisition of majority holding inOil Control Group SpA, Milan, ItalyBosch-Zünder published worldwidein eight languages2006Acquisition, together withMann+Hummel, Ludwigsburg,Germany, of the Purolator filtersbusiness from ArvinMeritor Inc,Detroit, MI (USA)Acquisition of Telex CommunicationsHoldings Inc, Minneapolis, MN (USA)2007Acquisition of the electrical heat pumpmanufacturer FHP ManufacturingCompany, Fort Lauderdale, FL (USA)Assumption of industrial leadershipof Pacifica Group Ltd, Melbourne,AustraliaAcquisition of Pharmatec GmbH,Dresden, Germany2008Acquisition of majority shareholdingsin the photovoltaics manufacturerersol Solar Energy AG, Erfurt, Germany(now Bosch Solar Energy AG) andthe abrasives systems manufacturersia Abrasives Holding AG, Frauenfeld,SwitzerlandJoint venture for exhaust-gas turbochargerswith Mahle GmbH, StuttgartJoint venture with Samsung SDI todevelop and manufacture lithium-ionbatteries for vehicles2009Acquisition of majority shareholdingsin the German companies aleo solar AG(Prenzlau and Oldenburg) andJohanna Solar Technology GmbH,BrandenburgAcquisition of Freud SpA, Milan, Italy2010New manufacturing facility foreight-inch wafers goes into operationin Reutlingen, Germany

Management How to Contact UsBosch today 46 | 47Board of ManagementFranz FehrenbachChairmanDr. Siegfried DaisDeputy ChairmanDr. Bernd BohrDr. Rudolf ColmDr. Volkmar DennerGerhard KümmelDr. Wolfgang MalchowPeter MarksUwe RaschkePeter TyrollerSupervisory CouncilProf. Dr.-Ing. Hermann SchollChairmanAlfred LöckleDeputy ChairmanDr. forest. Christof BoschChristian BrunkhorstHartwig GeiselHans-Peter GrätherDr.-Ing. Rainer HahnJörg HofmannProf. Lars G. JosefssonDieter KleinProf. Dr. Hermut KormannProf. Dr. Olaf KüblerMatthias Georg MadelungDaniel MüllerDr. Hans-Friedrich von PloetzWolfgang RiesUrs B. RinderknechtWolf Jürgen RöderTilman TodenhöferHans WolffFor information on the Bosch Groupproduct line, contact CorporateMarketing and Sales (C/SM)For articles and lectures by BoschGroup associates, contact theInformation Center (C/CTI1)For answers to journalists’questions, contact CorporateCommunications (C/CC) or go towww.bosch-press.comFor information on careeropportunities in the Bosch Group,contact Human ResourcesManagement (C/HM) or go towww.bosch-career.comFor information on educationalpolicy and change management,contact Human Resources andOrganizational Development withCIP Coordination (C/HD)Companies wishing to becomesuppliers to Bosch should contactCorporate Sector Purchasingand Logistics (CP) or go tohttp://purchasing.bosch.comCorporate Headquarters of theBosch Group can be contactedat the following address andnumbers:Robert Bosch GmbHPostfach 10 60 5070049 StuttgartGermanyPhone +49 711 811- 0Fax +49 711 811 - 66 30www.bosch.comWood and paper productsbearing the PEFC logooriginate from responsiblymanaged forests.For more information visitwww.pefc.org