Press

• New product development in automotive sector
• Increased market share for consumer goods and utilities equipment
• Optimism reflects confident view of Russia’s further development

Despite a challenging year in 2009, the Bosch Group in Russia continues its investment in the region and expects growth to resume in 2010.

Bosch invested 16 million euros in Russia and the CIS in 2009, a 14 percent increase compared to 13 million invested in 2008.

Despite difficulties, the company has continued to implement vital projects and is confident that this is fully justified given Russia's further market potential.

Bosch’s consolidated revenue in Russia in fiscal year 2009 was 489 million euros, 31 percent less than in the record 2008 business year. This reduced revenue is the result of the global economic situation and its local consequences, especially within the Russian automotive and construction sectors.

In order to maintain financial stability, Bosch implemented a series of measures to reduce costs at all levels, and help keep personnel levels.

Bosch companies in Russia employ 2,131 associates, as of January 1, 2010, which is 6 percent fewer personnel than one year before.

A reduction of working hours has substantially compensated for the under-utilization of capacities caused by a drop in sales.

Major layoffs were avoided. The company’s policy of "operational flexibility” on financial issues was favorably received by its client base.

“We were able to retain more than 90% of our clients,” said Rene Schlegel, Bosch Group representative Russia, Ukraine, Belarus and Kazakhstan.

“This is a very good result, since such crisis-tested relations are the basis for restoring sales when business starts to recover. It was crucial for us to maintain available goods for the general public at client’s retail outlets.”

Automotive equipment: moving towards stability
More than 50 percent drop in demand on the Russian car market led to a sharp reduction in the supply of auto parts to assembly lines.

Nevertheless, Bosch’s strategy to grow its automotive footprint in Russia remains unchanged. 2009 marked the start of two new projects supplying anti-lock brake systems (ABS) to Russian automakers for cars.

Mass production of cars with these systems is slated to start in late 2010 or early 2011.

In the past year, Bosch’s program to increase road safety in Russia and the public’s knowledge of active safety system advantages has further developed. Accordingly, Bosch produced the specialized websites www.bosch-abs.ru and www.bosch-esperience.ru, as well as a simulator of ABS and electronic stability program ESP® safety systems that enables end-users to familiarize themselves with the advantages of these systems.

Despite the collapse in the freight-vehicle market, Bosch kept its market share. The company started mass production of parts – a vacuum servo module and the main brake cylinder with an expansion tank - for the Gazelle Business car.

In 2009, launch of mass production of cars equipped with a new Common Rail system and manufacture in Russia of Common Rail components was postponed due to delays in the introduction of Euro 4 emission standards.

In 2009, OAO Robert Bosch Saratov released a new line of EZ-Yttrium spark plugs in the Saratov Region, which are manufactured at the plant in Engels.

In 2010, the company plans to manufacture and supply Russia and other countries with more than 100 new types of spark plugs.

OAO Robert Bosch Saratov also plans to manufacture a new generation of gauges for mass air flow as well as fuel return lines for Russian and European automakers.

The increasing sophistication of automotive technologies and systems demands that professional personnel are trained to service and repair them. In 2009, a new Bosch Training Center opened in Kiev, where about 2,000 auto service professionals will be trained per year.

Consumer goods and utilities equipment: market share increase Despite a significant reduction in the size of the Russian power tools market in 2009, Bosch made considerable progress.

The company increased its market share thanks to its Bosch Systems Specialist (BSS) dealer network. Bosch also successfully introduced new product lines on the market, including grinding materials and measuring tools.

Despite an almost 40 percent drop in demand for heating equipment in the Russian market, Buderus Heating Equipment managed to avoid considerable revenue reduction and increased its market share.

With the 2009 integration of LOOS, the leading European manufacturer of high-quality steam and hot-water industrial boilers, the company was able to considerably strengthen its rankings in the industrial segment of steam and hot-water industrial boilers with a capacity of 0.5 to 38 MW for manufacturing and industrial purposes.

Unchanged view of Russia’s significance for Bosch’s global business
Bosch estimates the prospects for further development in Russia with some optimism.

“Growth in our region will resume, but it will not reach 2008 levels soon,” Rene Schlegel said. “We expect that in 2011, our business as a whole will return to the level of 2007, and in 2013-2014, will again be on the level of 2008.

Growth rates for each division are naturally different. In business fields where we have a market share of less than 20 percent, there is more growth potential than in areas where we already occupy a large share of the market.”

For additional information, contact:
Julia Golubtsova, OOO Robert Bosch 
Tel.:  +7 495 937-04-02   
Fax: +7 495 935-71-99   
e-mail: julia.golubtsova@ru.bosch.com 

May 11, 2010