B S H H O M E A P P L I A N C E S L T D

Bosch Siemens Home Appliances Ltd

A Global success story

How UK logistics continues to support the business growth

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Siemens AG

BSH Bosch und Siemens Hausgeräte GmbH

Robert Bosch GmbH

50% 50%

1967: Foundation of BSHG

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1967: Foundation of BSHG

Joint Venture 50/50 Bosch-Siemens Hausgeräte GmbH

Optimize synergies: Home appliances portfolios of Bosch and Siemens

Maintain position as the top German home appliances manufacturer

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Companies 7Employees14.000Sales0.5 billion EUR

3 factories in Germany13 factoriesin Germany, Greece, Spain

Companies 41Employees23.000Sales3.3 billion EUR

Corporate Development

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BSH – Third-Largest Manufacturer of Home Appliances WorldwideNumber 1 in Germany and Europe

Number of brands: 14

Number of employees: ~ 38,000 worldwide*

Sales in 2006> 8.3 billion EUR*

Number of companies:~ 70 in 43 countries

A global sales and customer service network

Number of factories:45 in Europe, the U.S.A., Latin America and Asia**40 Millions of produced home appliances*

* 2006 ** 2007

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1967 Product Portfolio

2007 Product Portfolio

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LogisticsLogistics in 1967 in 1967 ……. . FromFrom smallsmall beginningsbeginnings

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BSH BSH LogisticsLogistics CoverageCoverage 20072007

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294

324352

384

437 428439

475

200

250

300

350

400

450

500

£m

2000 2001 2002 2003 2004 2005 2006 2007

UK Salesin £m

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Major developments in UK logistics 2000 - 2007

Transport Planning Software

National Platform Network

Warehouse Management System

Logistics Management System

New build Warehouse

Contractual Partnerships

Continuous Development

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Introduced Paragon Planning software

Reduced contractors from 15 to 5

Developed In house Booking system

Integrated our SAP with Transport Planning

Changed operating hours to fit with the planning cycle

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Selected four contractors to create a National Network

Introduced a Postcode Delivery Matrix for the first time

Massive reduction in lead time, 10 days – 3 days

Frequency of delivery increased to 2/3 times per week

Operation moves to 24hr working for the first time

Reliable, consistent service begins

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Introduced SAP Warehouse Management system

Brought control and discipline

RF Scanning integral

New Warehouse layout

Accuracy greatly improved

Training paramount

Must achieve buy in from everyone

Nearly killed all involved …. Particularly me !

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Business agrees to invest in Warehousing

Developer and site chosen that fit best

Inbound requirements played a big part

Early selection allowed design changes

Proactive developer was key to success

Appointed Consultants to assist with Project

Did not change our business processes

Very successful go live

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Consolidated Transport operations with one Partner

Major player in the Industry to support our business

A long courting period .. But getting to know each other now

Expertise and assets to offer

Competitive pricing

Long term gain sharing

Building an infrastructure for the future

Confident that our marriage will last

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*

Environmental Impact During the Product Lifecycle

*depending on product

and usage4 – 9% *

Production

((Consumption of raw materials,

energy and water)

< 0,5%

Distribution

(energy consumption

and harmful emissions)

< 0,5%

Disposal

(energy consumption)

Raw materials

Non-ferrous metals,

steel, plastic

glass, others

Usage (consumption of water,

energy and chemicals)

90 – 95%

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Potential Savings, Energy and Water Consumption

Dishwashersper wash cycle12 place settings

1.74

kWh

1990 2007 1990 2007

1.05

kWh

28.1

Lit.12,0

Lit.

– 40%

– 57%

Washing machinesper kg of laundryBoil wash/colors 60°

1990 2007 1990 2007

– 37%

– 67%

0.27

kWh 0.17

kWh

21.2

Lit.

7.0

Lit.

Electric cookersEnergy consumption as per EN 50304

1990 2007

– 31%

1.10

kWh 0.76

kWh

1990 20072007 1990 20071990

– 79%– 75%

– 61%

0.53

kWh0.11

kWh

0.76

kWh0.19

kWh

0.57

kWh 0.22

kWh

Refrigerators and freezersper 100 L in 24 h

1) 2) 3)

1) Refrigerator 2) Freezer 3) Fridge-freezerSource: BSH; As of 1st quarter 2007

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BSH Corporate Department for

Environmental Protection set up

Milestones in BSHs Commitment to the Environment and Society

BSH participates in the “Energy

Efficiency” initiative of the German

Electrical and Electronic Manufacturers’

Association (ZVEI)

Approval of a binding environmental policy

throughout the group, establishment of an

environmental management system

Pioneering role in discontinuing use

of CFCs/HFCs in Europe

First BSH Environmental Report

Production of the country’s first

CFC-/HFC-free refrigerators in China

First BSH factory validated according to

the new EU Eco-audit and Management

Scheme (EMAS)

Approval of globally valid occupational health

and safety guidelines

BSH signs up to the UN’s Global Compact

Code of Conduct of the European Committee

of Domestic Equipment Manufacturers CECED

signed

Introduction of the plant oil stove

in the Philippines

Introduction of the BSH Business

Conduct Guidelines

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Awards Recognizing Commitment to the Environment

The Bundesverband der

Deutschen Industrie e.V. (BDI),

Germany’s industry federation,

awards its environmental

innovation prize to Product

Environment Analysis

The BSH/Environmental Report

is ranked as the best German

publication

in its sector by Capital magazine

The cooling appliances factory

in Chuzhou (China) is elevated

to the ranks of “Environmental

High Tech Enterprises”

by the China Environment

Science Association

Dr. Robert Kugler, as a member

of the Management-Board, is voted

Eco Manager of the Year 2002

by the environmental

foundation of WWF Germany

(World Wide Fund for Nature)

and by the German business magazine

Capital

An environmental prize is awarded

to BSH Continental

Eletrodomésticos Ltda., São Paulo

(Brazil) by the Federação

das Indústrias de São Paulo

(FIESP) for its implementation of

Agenda 21

U.S. Environmental Protection

Agency (EPA) honors BSH with

Enviromental Award

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Awards Recognizing Commitment to the Environment

Federation of German Industries (BDI)

2003/2004 Award for the Environment

for the project “Consistent

implementation

of innovative technology

and environmental standards in

manufacturing cooling appliances

in China”

Environmental prizes

awarded by the Federação das

Indústrias de São Paulo (FIESP)

for the project

“Aqua Viva” and the project

“Environmentally friendly

refrigeration appliance”

Dr. Kurt-Ludwig Gutberlet

receives the B.A.U.M

international special

prize 2006 for years of

exemplary commitment

to the enviroment

2003/2004 “Environmental

and Corporate Responsibility”

report awarded first place in

its sector in Capital magazine’s rankings of

150 sustainability

reports

National Prize of the

Spanish Ministry of the

Environment “Premio

Nacional Empresa y

Medio Ambiente 2003”

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“For us, developing energy-efficient and environmentally friendly home

appliances is an issue of central importance. In doing so, we not only

secure our competitiveness and safeguard the jobs of our employees,

but also make a telling contribution to conserving resources and

protecting the environment.”

Dr. Kurt-Ludwig Gutberlet

Chairman of the BSH Board of Management

Environmental protection – integrated into all

areas