BSH Hausgeräte GmbH hits a new sales record

Manufacturer of home appliances continues to grow and increases its market share worldwide

Munich, 22 May 2007 (bsh). In 2006 BSH Hausgeräte GmbH succeeded in remaining on its fast-pace growth track and was able to increase its sales figure significantly for the third year in a row. Pre-tax earnings were likewise well up on the previous year’s figure. BSH expanded its’ business faster than the market in virtually all countries in which it is represented. Further, manufacturing capacities were added: its’ 45 factories in 32 manufacturing locations worldwide produced more home appliances than ever before. BSH is the market leader in Germany and Western Europe, is steadily raising its profile in Eastern Europe, and is also acquiring more and more market share in the USA, Latin America and Asia.

For the third year in a row, in 2006 BSH Hausgeräte GmbH set a new sales record, achieving 13% growth and thus almost doubling the growth rate achieved in 2005. The Group’s sales figure for 2006 was € 8.3 billion (2005: € 7.3 billion). Pre-tax profits rose to € 542 million in 2006 (2005: € 500 million).

“2006 was a very good year for BSH“, reported Dr. Kurt-Ludwig Gutberlet, CEO of BSH, at the annual press conference in Munich. “Our continuing success confirms the merits of our global orientation and our growth strategy. We will continue to systematically pursue this course and, through our high-quality products, further consolidate BSH’s reputation as the industry leader in terms of competence and innovation.“

Strong growth outside Germany
Over three quarters of BSH’s sales figure was generated outside Germany (> 78 Prozent). Particularly strong growth in fiscal 2006 was recorded in China (+ 42 percent), Latin America (+ 30 percent) and Australia (+ 16 percent). Business in the USA also expanded further (+ 5 percent) despite the difficult market conditions there. In Eastern Europe aggregate sales increased by 17 percent, with above-average growth rates in Russia, Poland and Ukraine.

BSH’s business benefited from the positive overall economic situation in Western Europe where the company’s sales growth reached almost 10 percent (figure includes the Turkish but excludes the German market). This enabled BSH not only to consolidate but also further enhance its’ ranking as a market leader in Western Europe.

To further advance the company’s strategy of global expansion, production was rolled out last year at a new dishwasher factory in Cerkezköy, Turkey. The small appliances facility in Nanjing, China, expanded its’ product range to include washing machine motors, gas hobs and cooker hoods destined for the Chinese market. In St. Petersburg, Russia, a new cooking appliances factory and a logistics centre are nearing completion. Also, new sales companies were set up in Canada, Malaysia and Ukraine.

BSH is now manufacturing its’ appliances within an integrated global network comprising 45 factories at 32 production locations in 15 countries.

Positive performance on the German home market
Particularly pleasing was the fact that BSH’s home market, Germany, had a positive year in 2006. An upturn in the business cycle, pre-emptive consumption in advance of an imminent increase in VAT and very successful new product lines rewarded BSH on the German market with a welcome increase in sales which amounted to almost 15 percent and took the sales figure to over € 1.8 billion (2005: € 1.6 billion).

“We are particularly pleased that the demand on the German market for cheap appliances has declined and more consumers are buying built-in or high quality free-standing appliances with more features“, reported CEO Gutberlet at the annual press conference.

”When it opened Europe’s most modern production line for washing machines in Nauen, in the German state of Brandenburg, BSH also demonstrated that with state-of-the-art technology and flexible manufacturing processes, it is indeed possible to be successful in producing appliances in Germany for the world market.“

BSH’s positive business performance was also reflected in its’ employment figures. The biggest employer in the domestic appliances industry on its’ home market, BSH employed over 14,200 people in Germany on 31.12 2006, i.e. some 150 more than on the same reference date in 2005. The BSH workforce outside Germany totalled over 23,700.

Over 40 million home appliances manufactured per year and more than 500 patents
In 2006, BSH manufactured over 40 million large and small home appliances in its facilities across the world. The product portfolio not only takes account of regional differences in customer preferences in terms of features, function and design but is also constantly being refined and enhanced by the almost 2,000 employees working in BSH’s global development network. This is borne out by the over 500 initial patent applications filed in 2006, and also by the over 60 top rankings awarded by German and European consumer product testing institutions to appliances belonging to the BSH brands alone.
Its’ over 500 initial patent applications makes BSH the industry leader in this respect.

Saving energy with state-of-the-art home appliances
Speaking of the company’s future prospects at the annual press conference, the CEO of BSH also referred to the considerable potential which home appliances offer in terms of helping achieve the ambitious goals set for saving energy and protecting the climate. “Over the past 15 years we have slashed our appliances’ power consumption – by up to 79 per cent in the case of cooling appliances“, reported CEO Gutberlet.

However, long service lives and unsatisfactory payback periods have conspired to hold the market share of highly efficient A++ appliances in Germany at 4 percent and that of A+ appliances at 30 percent. In addition, 29 million inefficient refrigerators and freezers, still in operation after 10 and more years of service, are unnecessarily consuming electricity in German households every day – until one day a technical failure causes them to be replaced. Only by replacing obsolete appliances with new, energy-saving models will it be possible to make an effective and rapid-impact contribution towards protecting the climate.

Some European countries, such as Spain and Italy, have already introduced government incentive schemes to speed up the uptake of energy-efficient appliances. In Germany, by contrast, the only measure being considered is introducing further regulations on the supply side.

If energy consumption in Europe is to be cut by 20 percent by 2020, further steps need to be taken urgently. “Politicians and industry must act together, now, to create incentives for consumers to replace their obsolete appliances and thereby help achieve the ambitious goals set for energy efficiency“, said CEO Gutberlet. A proposal for a special scheme to subsidize the purchase of highly efficient A++ cooling appliances to the tune of € 150 per appliance was submitted to the relevant policy-making body some time ago by the German Federation of Electrical and Electronic Goods Manufacturers (ZVEI).

Good start to fiscal 2007
BSH’s business has been good during the first few months of 2007, and market performance in most countries has largely been positive. In Germany the market has calmed down considerably since the beginning of the year, and the pressure on both prices and margins remains strong. Referring to the numerous investments made by BSH in the relevant markets, CEO Gutberlet closed the annual press conference by stating: “Everything suggests that BSH will again achieve its ambitious business goals in fiscal 2007. We are expecting sales growth worldwide at the top end of the single-digit range.“

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BSH Hausgeräte GmbH opens new refrigeration appliance plant in St. Petersburg

Munich/St. Petersburg, 21. June 2007
More investments planned

In the presence of St. Petersburg governor Valentia Matvienko, BSH Hausgeräte GmbH today officially opened its new refrigeration appliance plant in which the company will produce roughly 500,000 refrigerator-freezers for the Russian and Eastern European markets. A newly built logistics center is attached to the plant. From here, locally produced BSH appliances will be distributed. The total investment for the facility amounts to roughly € 50 million. During the opening ceremony, BSH CEO Dr. Kurt-Ludwig Gutberlet announced the construction of yet another plant: “For us, the Russian market is one of the fastest-growing in all of Europe. That’s why BSH decided to start soon with the construction of another plant here in St. Petersburg in which we will produce washing machines beginning in 2009.
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Munich, 22. May 2007 BSH Hausgeräte GmbH hits a new sales record
Manufacturer of home appliances continues to grow and increases its market share worldwide

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BSH Hausgeräte GmbH takes part in the international EU/G8-Conference ´Energy Efficiency: Shaping Tomorrow´s World´

BSH, BSH Hausgeräte .
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BSH Hausgeräte GmbH supports Europe-wide campaign

BSH Hausgeräte GmbH is taking part in the Sustainable Energy Europe Campaign established .
Munich, 11. January 2007 BSH supervisory board appoints new Chief Operating Officer/ Chief Technology Officer Prof. E.h. Werner Vogt to succeed Dr. Kugler
In its session of December 2006, the supervisory board of BSH Hausgeräte GmbH appointed Prof. E.h.