1. ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. ANE Congress May 2005, Barcelona Will western Europe remain a center of the automotive industry? Franz Fehrenbach

2. 2 Motor vehicle production (in m units) ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: Bosch LongTermForecast 12.04* w/o Japan/China NAFTA 16.4 17.6 18.4 0 5 10 15 20 25 200420082014 +1.2 % p.a. Europe West 17.0 17.6 18.1 0 5 10 15 20 25 200420082014 +0.6 % p.a. Europe East 3.9 5.2 5.6 0 5 10 15 20 25 200420082014 +3.7 % p.a. Japan 10.6 10.0 9.7 0 5 10 15 20 25 200420082014 -0.9 % p.a. World 63.8 71.9 77.3 0 20 40 60 80 200420082014 +1.9 % p.a. South America 2.3 2.6 2.9 0 5 10 15 20 25 200420082014 +2.2 % p.a. Asia* 7.6 9.5 10.9 0 5 10 15 20 25 200420082014 +3.7 % p.a. China 5.2 8.4 10.7 0 5 10 15 20 25 200420082014 +7.4% p.a.

3. 3 Value added growth by region ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: Mercer, Fast 2015

4. 4 Western Europe‘s advantages ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.  Good brand and quality reputation  Very good human resources potential  Modern and highly efficient facilities

5. 5 Most productive vehicle plants in Europe ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: House of Commons – Trade and Industry – Written Evidence

6. 6 Flexibility of labor regulation index ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: Institute for Management Development, Switzerland

7. 7 Average Corporate Tax Rates on Profit ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: Institute for Management Development, Switzerland

8. 8 Labor costs Working hours ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. euros per hour hours per year Source: OECD, IW-Köln 27.10 19.90 20.20 4.30 0.50 18.30 18.70 1.00 16.00 16.70 16.90 India China Czech Republic Spain Italy Germany East Japan Great Britain United States France Germany West 1,450 1,670 1,790 1,800 1,920 2,400 2,500 1,500 1,590 1,800 1,430 Germany West France Germany East Italy Great Britain United States Japan Spain Czech Republic India China

9. 9 Challenges to the automotive industry ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.  to adapt to shorter product life cycles  to re-establish first-class quality  to master the trend to low-cost vehicles  to improve the general level of education

10. 10 Pisa rating vs. labor costs ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: Pisa;OECD strong weak

11. 11 Founders of the “Wissensfabrik” ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Dr. Jürgen Hambrecht, BASF AG, Ludwigshafen Franz Fehrenbach, Robert Bosch GmbH, Stuttgart Klaus Fischer, fischer, Waldachtal Dr. Rainer Follmann, Follmann Management Holding, Minden Prof. Josef Gerstner, KSB AG, Frankenthal Dr. Hermut Kormann, Voith AG, Heidenheim Prof. Berthold Leibinger, TRUMPF Gruppe, Ditzingen Prof. Ekkehard Schulz, ThyssenKrupp AG, Düsseldorf Hans Wall, Wall AG, Berlin

12. 12 Focal points of activity: ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 1.Set up 1000 school partnerships to strengthen basic reading, writing and mathematical competencies of 4- to 8-year-old children. 2.Change mindset: away from dejectedness to advocacy of change and entrepreneurship. 3.Establish a network for young entrepreneurs and newly founded companies with mentoring and consultancy by experienced specialists.

13. 13 Types of OEM-supplier relationships ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.  Cultural background: Asian keiretsu model vs. European/American contract-based model  Full-service system supplier with development responsibility vs. component suppllier without design responsibility  Cost- or price-driven contract vs. long-term partnership

14. 14 Rating of OEM-supplier relation quality ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Source: J.D. Power 2004

15. 15 How is Bosch safeguarding its competitive position? ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Cost leadership Innovation leadership BOSCH

16. 16 Cost leadership ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties.  Consistent introduction and enforcement of lean manufacturing and logistics -> Bosch Production System  Optimal mix between traditional sites in western Europe and those in emerging markets  Design for regions

17. 17 ANE Congress May 2005, Barcelona AE-DA/MKT | 2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. An additional safety margin : Predictive Safety System

18. 18 ANE Congress May 2005, Barcelona C/CAT | 3/21/2005 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Our Vision Creating value – sharing values