• Consolidated revenue for 2013 climbs to 10.5 billion euros
  • China (+25%) and USA (+18%) the most important growth regions
  • Acquisition of Polish home appliance manufacturer Zelmer S.A. successfully completed

Munich, May 26, 2014 (bsh) - BSH Bosch und Siemens Hausgeräte GmbH (BSH) today publishes its annual report containing the key financials for 2013. The company increased its revenue by 7.2 percent to around 10.5 billion euros over the course of the year ended, exceeding the previous year's figure in every sales region. EBIT amounted to 509 million euros despite the costs associated with a voluntary safety action for dishwashers. The number of people employed by BSH increased by just under 3,000 to around 50,000.

The key regions for growth in the year ended were China and North America. Revenue in China grew by 25 percent to over 1.5 billion euros. Innovative home appliances tailored to the specific requirements of the region's consumers enabled BSH to capture a disproportionately large slice of the general growth in the Chinese home appliance market and expand its market share. Revenue in the U.S. grew by 18 percent thanks to BSH's successful strategic realignment, which involved measures such as focusing sales activities more closely on premium products.

BSH made gains in Eastern Europe too, most notably in Russia (+5 percent) and Poland (+32 percent). Revenue rose markedly in Turkey in local currency terms, but this gain was eroded by the fall in the value of the Turkish lira. BSH bucked the market trend in Western Europe to boost both revenue and market share. Growth was strongest in the United Kingdom (+11 percent) and Spain (+11 percent), with business in France (+4 percent) also very positive. Revenue in Germany was unchanged from the previous year.

A stronger presence in Central and Eastern Europe

BSH acquired the Polish manufacturer of small home appliance Zelmer S.A. in 2013, completing the transaction in June with the purchase of 100 percent of the shares. This brought more than 1,300 new employees into the BSH Group. The Polish manufacturer will extend the BSH product portfolio and production network. Zelmer will remain an independent brand within the BSH Group with its own production operation. The purchase added 142 million euros to consolidated revenue in 2013.

Robust long-term financial foundation

The favorable conditions prevailing in the capital market encouraged BSH to issue its first euro bond in the year ended. The 500 million euro bond, which has a term of seven years, is intended to lock-in low interest rates for the long term, replace liabilities falling due in the future and expand the Group's financing options. BSH also took up two KfW loans with favorable interest rates amounting in total to 165 million euros in 2013. The funds raised are being funneled chiefly into research and development, in particular, work to improve the energy efficiency of resource-conserving home appliances. Rating agency Standard and Poor's confirmed BSH's long-term "A" rating and short-term "A-1" rating in October last year, judging the outlook to be "stable" on the basis of the Company's high and consistent operating profits and cash flows.

Satisfactory EBIT despite exceptional charges

In August 2013, BSH launched a voluntary worldwide initiative to address a possible safety issue affecting a limited number of dishwashers produced between 1999 and 2005. It was found that these models could potentially overheat, leading, in extremely rare cases, to a possible fire risk. Consumer safety is an absolute priority for BSH as a manufacturer of long-lasting, high-quality home appliances and it has accordingly been actively reaching out to customers through a broad-based publicity campaign since the very start of the initiative. BSH offers the customers affected either a repair free of charge or a special discount on the purchase of a new appliance. The costs and provisions associated with this initiative kept earnings before income and tax (EBIT) in 2013 below the previous year's level at a still satisfactory 509 million euros.

Innovation and regionalization set the tone for the coming years

"BSH has been an outstanding success story up to now, and we plan to continue this success moving forward. We want to continue expanding our position in the global market and grow faster - profitably - than the market as a whole," confirms BSH CEO Dr. Karsten Ottenberg. Achieving this target, he went on to explain, means identifying the challenges faced in the various international markets for home appliances and making full use of the regional opportunities available.

Developing regional expertise will accordingly be one of BSH's main priorities in future, as will innovation, in which the Company intends to begin investing even more heavily. Dialog with consumers is more important than ever in today's online world. Looking ahead, the possibility of dialog between consumers and their home appliances opens up all kinds of potential and BSH will be working to create new functions and services in this very area. The modern consumer expects perfect solutions for the home throughout the entire home appliance life cycle. The Company recently announced a multibrand App for digital home appliance control. The Home Connect App and the first networked appliances from the ranges of the Bosch and Siemens home appliance brands will be presented at IFA 2014.

BSH increased research and development spending by eight million euros to 334 million euros (equivalent to 3.2 percent of revenue) in 2013 and intends to invest an additional sum running into the high hundreds of millions of euros over the next few years in research and development, in the brands and in expanding the Company's presence in the regions. Ottenberg: "Our strategy centers on the factors that have made BSH the strong and distinctive company it is today: globally renowned brands, the experience and expertise of our people and our proven technological know-how".

BSH expects moderate revenue growth in 2014 and a significant improvement in EBIT despite the further investment planned. The opening months of the year have confirmed this expectation.

The Annual Report 2013 can be downloaded as PDF at www.bsh-group.de.

Press photos for downloading are available at press.bsh-group.com.

With sales in 2013 of about 10.5 billion euros and a workforce numbering around 50,000, BSH Bosch und Siemens Hausgeräte GmbH is currently the world's third largest company in the home appliance sector. BSH manufactures its products in 41 factories, and with over 80 companies, has a presence in 47 countries.

For further details go to www.bsh-group.com.

Contact for this press release:

BSH Bosch und Siemens Hausgeräte GmbH
Corporate Communications
Fridolin Weindl
Tel.: +49 (0)89 4590-3391

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