Bosch Corporation Business report FY2007

Business Highlights

Financial overview
(in million JPY) FY2007 FY2006 Rate of Change
Sales 343,406 338,875 1.3

- Sales increased, thanks to larger sales at the automotive segment.

Ordinary income 28,263 33,187 (14.8)
Fuel-injection devices for diesel engines
Sales 145,483 139,777 4.1 - Sales at the division fell year-on-year due to weaker sales of conventional products.
Sales in Thailand, however, almost doubled from those of the previous year.
Brake systems for passenger vehicles
Sales 83,947 85,067 (1.3) - Sales at the division decreased slightly year-on-year due to a decline in sales of ABSs and other brake products destined for export.
Automotive electronics and powertrain
Sales 64,689 61,608 5.0 - Sales at the division increased year-on-year, thanks to strong sales of fuel injection systems for gasoline engines; and airbag control units.
Other automotive products
Sales 49,286 52,422 (6.0) - Sales at the division fell year-on-year mainly due to slow sales at its automotive aftermarket business.


R&D Expenditure
(in millions JPY) FY2007 FY2006 FY2005 FY2004
Fuel-injection devices for diesel engines 2,507 1,552 1,637 1,804
Brake systems for passenger vehicles 1,041 998 1,516 1,535
Automotive electronics and powertrain 362 438 286 396
Total 3,910 2,989 3,440 3,736

<R&D by Business Division>
Fuel-injection devices for diesel engines

- The Company is making progress on activities enabling it to bring in high-performance Piezo-type injectors from Europe to use. It also worked on developing high-pressure common-rail systems that comply with tighter emission standards coming into effect.
- R&D was also focused on Diesel Particulate Filters (DPF) and Selective Catalyst Reduction (SCR) for NOx. These are important technologies for controlling emissions from diesel-powered vehicles. It started supplying the SCR DXTRONIC-1, a urea-SCR (selective catalytic reduction) technology, and conducted development of injection equipment for alternative fuels such as Dimethyl Ether.

Brake systems for passenger vehicles
1) Chassis system control division
- The Company is engaged in developing active safety systems for next-generation applications such as ABS, Traction Control Systems (TSCs), and Electric Stability Programs (ESPs) that are more compact and lighter in weight, but which cost less to manufacture per unit.
- Modular and scalable ABS and TCS units combined with ESPs are intended to streamline installation.
- By increasing the functions of and extending the life cycle of electronic stability control systems, the Company developed high value-added products such as hill-start assist systems; cruise control systems, which support deceleration, i.e., slowing from medium and high speeds down to low speeds; emergency brake assist systems; and brake disc wiping systems that come into use during wet driving conditions.
- In order to enhance driving safety, comfort, and brake-system functions, the Company developed VMM (Vehicle Motion Management) systems based on ESC technology.
- The Company is developing Vehicle Dynamic Management (VDM) systems, which are systems that integrate the control features of other active systems such steering and damper systems.
- The Company is developing Driver Assistance (DA) Systems and Combinated Active and Passive Safety (CAPS) systems that incorporate sensor technology used in radars, ultrasonic sensors, and video cameras; as well as developing passive technology such as that used in airbags and seatbelts.
- The Company is developing regenerative brakes for hybrid cars and ABSs for motorcycles

2) Actuation Division
- The Company is now in the process of developing master cylinders, which will offer improved brake feel. Mass production of these new cylinders is expected to begin in 2009.
- The Company is developing specialized actuation technology to support regenerative brake systems used in hybrid vehicles marketed in Japan.

Technical Contracts (Dec, 2007)
Company name Items Contracts Contract term
Robert Bosch GmbH
- In-line/distributor type fuel injection pumps for diesel engines
- Fuel injection electronic control units
Granting license to use patents;
Provision of technical information
- High-pressure distributor type fuel injection pumps 1996.04.01-2008.12.31
- Common rail fuel injection pump systems for diesel engines 1999.07.20-2008.12.31
- Second generation common rail fuel injection pump systems for diesel engines 2001.09.01-2008.12.31
- ABSs, ESCs, brake boosters, and disc brakes 2003.01.01-2008.12.31
- Next generation ABSs and ESCs 2004.01.13-2012.12.31
- Electronic control units for airbags and seatbelt tensioners 1987.11.12-2009.06.30
- Control units for transmission hydraulic control equipment and electronic control devices 2000.09.07-2009.06.30
- Electric control units for common rail fuel injection pump systems used in diesel engines 2006.01.01-2015.12.31
Robert Bosch Corporation
- Vacuum boosters and cartridge master cylinders Granting license to use patents;
Provision of technical information (cross-license)
Robert Bosch GmbH
(Germany) and Robert Bosch LLC.
- Vacuum boosters and cartridge master cylinders 2005.05.16-2009.12.31
- Automotive disc brakes 2006.01.01-2012.12.31

Investment Activities

Capital Investment
in million JPY FY2007 FY2006 FY2005 FY2004
Capital Investment 7,869 10,049 9,675 11,478

Fuel-injection devices for diesel engines

Investment focus was on enhancing manufacturing equipment for common rail systems at the Higashi Matsuyama Plant No. 1. Total amount of capital spending reached 3,024 million yen in FY2007.

Brake systems for passenger vehicles
The Company invested mainly to rationalize and upgrade production facilities at the Musashi plant. Investments at the sector totaled 3,331 million yen in FY2007.

Automotive electronics and powertrain
The focus of investments was manufacturing facilities for new products, streamlining operations, and improving quality, mainly at the Tomioka plant. Capital spending at the segment totaled 1,343 million yen in in FY2007.

New equipment installation
Plant City Segment Equipment to be installed Estimated amount of investment (million yen) Period of the project
From To
Higashi Matsuyama Plant No. 1 Higashi Matsuyama City,
Saitama Prefecture
Fuel-injection devices for diesel engines Equipment to manufacture new fuel injection devices 4,690 January 2007 December 2010
Tochigi Plant Nasu Shiobara City, Tochigi Prefecture
Brake systems for passenger vehicles
Equipment to manufacture ABSs and ESCs 5,170 January 2007 January 2010