Manila / June 2008 – Robert Bosch Inc. (Philippines), local flagship company of Robert Bosch GmbH in Germany, announced its 20-percent growth in 2007 due mainly to the country’s booming car industry and countrywide infrastructure development, according to Managing Director Franz Roland Odenthal during the company’s annual press conference at the German Club in Makati last 12 June 2008.

“These positive developments and the strong performance of the Philippine Peso keeps Robert Bosch Inc. within the horizon of its projected long-term growth strategy,” said Odenthal. The company’s local business lines in the automotive and power tools technology are both leaders in their respective product segments.

With the country’s growing need for mobility, Bosch foresees a growing demand for its automotive aftermarket products. The company currently leads in product segments sparkplugs, car diagnostics, wiping systems and comfort electronics (car horns and relays) and is currently the country’s largest supplier of automotive technology parts in the local aftermarket.

Rapid infrastructure growth also provided a favorable business climate for the company’s building technology portfolio, particularly its power tools product line. Bosch currently leads in the country’s largest power tool segment and comprises one of the most comprehensive product lines that efficiently mobilize the country’s modernization projects.

Environmental protection

“Reduction of CO2 emissions and energy conservation are priorities of Bosch innovations,” said Odenthal citing new legislation to reduce vehicle emissions presently discussed in Europe to 120 mg. of carbon dioxide per kilometer. Locally, Bosch diagnostic emission testers and gasoline / diesel systems technology help motorists comply with the country’s Clean Air standards.

In 2007, the mother company’s R&D investments peaked at €3.6 billion, 40 percent of which relates directly to energy conservation and environmental protection. This translates into more than 3,200 new patent registrations in the previous year, averaging 14 new patents per working day.

Bosch currently ranks number one in the German Patent and Trademark Office, the European Patent Office and the World Intellectual Property Organization. Significant Bosch innovations in renewable energy include the development of core components for multi-megawatt wind turbines.

Recently, the company acquired Ersol Solar Energy AG, Germany’s 3rd largest solar technology company, underlining its firm commitment to clean energy technology.

Business performance: growth in Asia

On the global front, the Bosch Group generated sales of €46.3 billion, a 6-percent increase from 2006. This, despite the devaluation of the US Dollar and the Japanese Yen.

The company’s performance strengthens its global position as the largest supplier of automotive technology, growing by 4.5 percent to €28.4 billion. It also broadens its sectoral presence in Industrial Technology as well as in Consumer Goods and Building Technology, growing by 9.4-percent and 6.5-percent, respectively.

Automation technology under the company’s Industrial Technology sector benefited from a steady demand for capital goods. The broad scope of Bosch operations and competence in this field led to a full-year sales of €6.0 billion.

The strong performance of its Consumer Goods and Building Technology sector, on the other hand, was led by product divisions Power Tools, Home Appliances and Security Systems. Last year, the sector achieved €11.7 billion in sales.

Some 75 percent of the Bosch Group’s total revenue was generated outside Germany, with Asia Pacific retaining its position as the company’s main growth driver. Bosch Asia Pacific sales in 2007 grew by 11.7 percent to €7.6 billion, followed by Europe which grew by 6.2 percent to €30.3 billion.

By 2015, Bosch aims to triple Asia Pacific sales. This will be coupled by investments of some €1.9 billion between now (2008) and 2010.

Strong domestic markets

“Bosch is targeting between 15-20 percent growth in the Philippines this year,” said Odenthal. “The company draws its confidence from positive economic signals across Asia.” Considerable domestic markets exist for its business lines, including Bosch Rexroth drives and automation technology, packaging technology and security systems that are locally represented by agencies.

Robert Bosch Inc. strengthens its B2B strategy and continues to increase its numeric distribution in the current year. The introduction of new innovations will also provide more consumer benefits for end users as well as business and livelihood opportunities on the B2B level.

Odenthal also cited the country’s need to improve its physical, legal and educational infrastructure that translates to investor incentives and the development of skilled professionals.

“I believe that the achievement of these will greatly improve domestic and bilateral trade, which will ultimately translate into economic and social benefits for the country,” he concluded.