Bosch: The Course is Set for Growth

Good start into the year 2004

STUTTGART, April 22 -- The Bosch Group today reported a strong start in 2004 with sales for the group increasing by five percent in the first quarter. The Bosch Group generated sales growth in 2003 despite the difficult economic environment. Compared to 2002, sales increased by almost four percent to 36.4 billion euro ($41.2 billion) and income before taxes grew from 1.4 ($1.6) to 1.8 billion euro ($2 billion). Spending on research and development reached 7.3 percent of sales.

The Automotive Technology business sector made a decisive contribution to the improved result. Investment in new products, which in past years have had a negative impact on results, is now starting to pay off. Franz Fehrenbach, Chairman of the Board of Management, summed it up as follows: "By and large, we have every reason to be satisfied."

Fehrenbach also believes the chances for solid growth during the next few years are good. He is convinced the best prospects are in Asia and the Americas. More than half of the global increase in automotive production through the year 2014 will be generated in Asia. In this context, the Chinese market will be playing a special role.

The workforce in 2003 was relatively stable without effects of consolidation and acquisitions. At the beginning of 2004, the Bosch Group employed 232,000 people worldwide; 109,000 in Germany and 123,000 outside Germany. Bosch is increasing its activities in the Industrial Technology and the Consumer Goods and Building Technology sectors. Last year, the company acquired majority of shares of the Buderus AG in Wetzlar (Germany) to become number one in thermotechnology in Europe.

  Bosch Group Worldwide At-a-glance
  (in millions)

                                                  2003               2002
  Sales                                       36,357 euro        34,977 euro
                                               ($41,116)          ($39,555)

      Foreign share as percentage of sales         71%                72%

  Revenue from ordinary business activities    1,832 euro         1,418 euro
                                                ($2,071)           ($1,603)
  Net income for the year                      1,100 euro           650 euro
                                                ($1,244)             ($735)
  Spending on research and development         2,650 euro         2,487 euro
                                                ($2,997)           ($2,813)
      as percentage of sales                       7.3%               7.1%

  Investments in fixed assets                  2,028 euro         2,006 euro
                                                ($2,293)           ($2,269)
  Workforce
      average number in 2003                    229,439            225,897
      on 01.01.2004/2003                        231,600            224,341