Mann+Hummel GmbH Business Report FY2007

Business Highlights

Financial overview

(in millions of EUR) FY2007 FY2006 Rate of change(%) Factors
Sales 1,750 1,596 9.6%


EBIT 92 74 24.3% -
Automotive OEM Division
Sales 815 751 8.8% See below


-There was a 7.0% increase in sales in Europe, compared with the previous year, to 625 million EUR. In North and South America, sales amounted to 167 million EUR (+12.8 %) and in Asia to 23 million EUR (+35.3%), thus recording above average growth in both regions.
-The extremely good economic situation in Europe provided the driving force for the positive trend in the OEM sector in 2007. As far as international business is concerned, high growth rates were achieved through expanding its global activities in the air intake and filtration area. In the USA and Brazil, for example, serial production commenced for the first styling air cleaner. Air cleaners are also being produced at its site in the Czech Republic after completing the plant extension and increasing vertical integration last year. Production of air intake systems started at the Company's plants in China and Korea.
-Another factor which contributed to this sales growth was increasing business with Japanese customers, supported by the start of serial production of various products. The Company has, for example, commenced production of an air filter system with integrated broadband silencer in the dirty air duct which meets the most demanding acoustic requirements.
-The positive trend could also be attributed to the use of new materials and production processes. Specifically, the world窶冱 first intake plenum with a concealed weld seam in the styling area has been produced. As far as materials are concerned, the Company has promoted greater use of recycled plastics. This has made it possible for the Company to start environmentally
friendly production of water reservoirs, as well as a cylinder head cover, made from recycled material.

-In July 2007, the Company began to supply the air filter systems for the Nissan Qashqai. The system consists of a dirty air duct, cassette air filter and clean air duct. As well as an adapter for a push-in air flow meter, elaborate measures to improve acoustics have been integrated into the system by the Company.

-In August 2007, the Company started supplying the cabin filter for the Peugeot 207. Depending on the optional equipment in the vehicle, particle or activated carbon filters are installed. The filter elements are produced at the Marklkofen plant, with the plastic moulded housing added at the factory in Louverne, France. From there, they are transported to the PSA production sites in Poissy, France, Madrid and Trnava, the newest PSA factory in Slovakia.

-In September 2007, the Company designed a dual-flow air filter system for the BMW X5 consisting of dirty air ducts, an air cleaner with elements, styling cover and clean air duct for the 4.8 litre V8 gasoline engine. With the 3.0 litre R6 in-line 6-cylinder version, air cleaners with dirty and clean air ducts are supplied. The air filter systems for the Sports Activity Vehicle (SAV) which, combine excellent acoustic performance with low pressure loss, are being produced in South Bend, Indiana, USA.

-In October 2007, the Company received orders for intake manifolds from Maruti Suzuki India Ltd. Delivery will start in 2009 with expected annual production volume of 120,000 units. This is the first new orders for automotive parts from Suzuki that the Group won after establishment of its joint venture established in 2004 in India with Wako Filter Technology Co., Ltd. (Japan).

-In November 2007, the Company began to produce revised air filter for the Dacia Logan family car. This air filter containing an oval filter element helps to meet Euro 4 exhaust gas emissions legislation. The plant in Laval (France) has been in charge of development and production design, and then its production started to be transferred gradually from France to Okrisky in the Czech Republic. Ramp-up of production will then take place gradually to an annual volume of around 300,000. In addition, the Company's factory in Brazil is manufacturing the air filter and the intake manifold for the flex-fuel variant of the Dacia Logan (flex-fuel: ethanol, bio-ethanol or methanol-petrol mixture).


-In December 2007, the Company announced takeover of interior filter maker helsa-automotive GmbH & Co KG with head office in Gefrees from companies led by Schoeller Metternich Beteiligungen (SMB). The cartel authorities approved the takeover. Christian Uhlik, the former CEO of helsa-automotive, will continue to manage the company as a wholly-owned subsidiary. In Germany and the Czech Republic helsa-automotive employs 350 staff and in 2006 had a turnover of about 50 million euros. The Company aims to strengthen its international competitiveness and further expands its worldwide market position in interior filters.

New Company

-In the middle of 2007 the Company founded a 100% subsidiary in Moscow. In addition, it has established a production facility in Saratow which will be managed by the Russian company. the Company has founded the production facility in Saratow to satisfy demands from Russian engine, vehicle and machine producers for locally manufactured products and to generate new regional business. In October 2007, production of fuel prefilters for Russian vehicle manufacturers will start at the Saratow facility.


R&D Structure
-Around 2,800 patents are registered worldwide as of end FY2006.
-The Company announced that MANN+HUMMEL WAKO Co., Ltd., an oil and air filter supplier jointly established by MANN+HUMMEL GMBH of German and Wako Filter Technology Co., Ltd. of Japan, will start strengthening its development structure. The joint company will systematically entrust some development works to its shareholders' designing divisions in order to develop competitive products that meet the needs mainly of Japanese auto manufacturers. Increased development capabilities will allow the company to better respond to the customers' increased new orders for intake air systems and expand the supplier's sales. Enhancement of development capability is essential for winning new orders. The companies, therefore, will strengthen cooperation within the group to develop competitive products.

Product Development
-At IAA 2007, the Company presented its latest systems to manage the supply of air and liquids for the engine. They are including a plenum chamber for the 8-cylinder engines of the new BMW M3 sports car, the air filter system for the Nissan Qashqai and the plastic oil pan which will go into series production at the beginning of 2009.ments.

Investment Activities

Capital Expenditure

(in million euro) FY2007 FY2006 FY2005
Total 73 67 75

-In the Czech Republic, the Company extended its production facilities in Nova Ves which was established in 1993. Around 750 employees produce liquid filters for the automotive industry, air filters for the automotive and mechanical engineering industries, as well as filter elements for the aftermarket, both under its own brand and private label. In the Czech Republic, the Company produces approximately 20 million filters per annum.

-In May 2007, the Company strengthened its existing firm links with Middle Eastern countries through a new sales office in Dubai. From Dubai, the company is supporting and advising local customers for the complete range of its products in the automotive and industrial aftermarket sectors.