SPEECH: Manfred Wolf, President & General Manager Automotive + Industrial Business

Press conference IAA 2011, September 14, 2011, Frankfurt/Main - The spoken word is valid. -

Future comes as standard

Ladies and gentlemen, I would like to warmly welcome you to MANN+HUMMEL. Those of you who already know us, will be aware that we have 70 years of experience developing and setting the standards for automobile and industrial filtration. I am happy that you are here today to learn what this year's IAA motto "Future comes as standard" means for us, especially in the context of alternative drive concepts.

With these concepts in mind we plan to increase our turnover from last year's amount of 2.18 billion euros to 3.4 billion euros by 2018, partly through organic growth and partly through acquisitions. For more than ten years we have enjoyed average annual growth above 9%. In the first half of 2011 we have grown 20%. And we wish to continue growing.

Products for vehicles with alternative drive systems will help us to grow further and our company will change in the process. 2010 was the best year in the history of MANN+HUMMEL and we achieved 61% of our turnover in Europe, 16% in Asia and 23% in the Americas. In future, this will change. We will grow in all regions, and over proportionally in the BRIC growth regions. We have been active in these regions for many years and in South America for decades. We have production facilities and sales networks which can be further developed and we know the markets. We want to grow in all regions and corresponding to the market saturation more dynamically in Asia and the Americas so that by 2018 half of our turnover will be in Europe and 25% will be respectively in Asia and the Americas. In the growth markets we will strengthen activities locally and adapt to the respective markets.

At the same time our non-automotive division will enjoy over proportional grow. In 2010 the division accounted for approximately 13% of turnover. The automotive series business and automotive aftermarket accounted for 87% of business. By 2018 growth is planned for all segments, whereby each segment will account for a third of turnover. The automotive business will continue to dominate and grow in the long-term at MANN+HUMMEL.

Over 70 years we have built up a wealth of filtration expertise, primarily for the automotive field, which we now plan to "export" to other fields. The worldwide market volume for filtration applications is worth at least 40 billion euros. Only about 23% of this is connected to automotive or automotive-related applications, around 9% is for mechanical engineering and power station construction. These are the areas where we have been active up to now. We are currently developing a further area of the filtration market. The area of water treatment is a relatively new business area in our non‑automotive division.

The filtration market has further potential which we are continually strategically evaluating and assessing. It is certain that further business areas will follow our newest business area of water filtration.

Future comes as standard - how will we organise these areas for our customers and the company? As a family company, respect for people and the environment has always been very important for us. Respect is therefore one of our six core corporate values which are valid for the MANN+HUMMEL group. The principle of ecological sustainability is also valid for our research and development work.

Every year, MANN+HUMMEL invests approximately 4% of sales in research and development, which, according to a study published in April by the IHK, the Stuttgart Chamber of Industry and Commerce, is well above the regional average. According to the study, automotive suppliers in the state of Baden-Württemberg, the home of the motor car, invest 2.6% of their turnover in research and development.

Our R&D agenda includes the reduction of weight and emissions, resource conservation and recycling, new environmentally‑friendly materials and sustainable production processes. With products for conventional and alternative drive systems. Yes - that's right, we will continue to develop for the combustion engine. This technology will continue to play an important role in the field of automobile mobility for many years to come and so it is necessary and sensible to improve processes in the direction of sustainable mobility. Let's look at the situation in a number of markets.

The German government, for example, plans to put 1 million electric cars on German roads by 2020. Even if this figure in reality were to double or treble, the share of electric cars in a total fleet of around 50 million vehicles in Germany would remain relatively low. The situation is similar in other countries. France and Japan each calculate 2 million electric vehicles, and the USA - second largest automobile market in the world - 3 million. China, the largest automotive market in the world, plans to have 11.9 million electric vehicles by 2020. On August 29 this year Ernst & Young presented a study which assumes that European car managers calculate that this type of drive will only take off after 2022. A survey from 2010 indicates that Europeans drive their vehicles an average of 8.6 years. Therefore improving the concept of combustion engines also means helping to protect the environment.

We have a multi-strategy. A further part of our research and development activities is concentrated on products for electric cars and other vehicles with alternative drives. The future has already begun; our series production for vehicles with alternative drives is in full swing. We are manufacturing the air cleaner for the air-cooled rechargeable batteries used in a French electric car and a North-American hybrid. We are also producing battery frames for the Chevrolet Volt and the Opel Ampera, two electric cars for everyday use with an extended range from General Motors.

In Australia we have entered the OEM business with an energy-saving high performance filter for LPI vehicles. Up to now we have served the Australian aftermarket with MANN‑FILTER products and distributed industrial filters downunder.

In addition, we are currently working on more than 10 projects for cars with alternative drive systems. Our filter experts are developing systems to regulate the pressure and air humidity within lithium-ion batteries. This protects the rechargeable batteries. In this case we combine new developments with proven technology - here, for example, air drying boxes for compressed air systems used in trucks. We are also focussed on the air and liquid management for sensitive fuel cell stacks. We are developing solutions which treat the water in the cooling circuit and clean and condition the intake air to protect the fuel cell cathode. In the field of filtration technology this is a standard task for us: to retain dust particles and polluting gases. Here we can use components developed in-house which have already proven themselves millions of times in cars: our cabin air filters!

On the subject of cabin air filters. Whether for an electric car or a vehicle powered by a fuel cell or natural gas, the cabin air filter is a part of the vehicle independent of the drive technology and is a product with growth potential. For example, you can see its strategic importance for MANN+HUMMEL because in 2010 in China we have built a new manufacturing facility at a new location in Jiading/Schanghai and plan to relocate our plant in Gefrees, Germany, the MANN+HUMMEL Innenraumfilter GmbH, to a new site. The new location is currently under construction and the investment for the first building phase will amount to approximately 17 million euros. The second building phase is planned for 2013.

Future comes as standard with MANN+HUMMEL? Of course! Whether for improved conventional or totally new drive systems - we will be involved! And recently we have received the largest single order in the company history of MANN+HUMMEL from a manufacturer in North America for an electric vehicle. The construction of a new plant is in preparation.

You can read all about this information anytime on our new website which went online yesterday - in time for the first IAA press day.

Many thanks for your interest.

Manfred Wolf

President and General Manager, Automotive + Industrial Business

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The new MANN+HUMMEL website is now online in time for the IAA motor show. Please visit us at www.mann-hummel.com .


The MANN+HUMMEL Group is a development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing approx. 13,200 people at 41 locations world-wide, the company achieved turnover of 2.18 billion Euros in 2010. The Group´s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and cylinder head covers made of plastic with many integrated functions for the automotive industry, as well as filter elements for vehicle servicing and repair. For general engineering, process engineering and industrial manufacturing sectors the company´s product range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration, filter systems and complete lines as well as units for conveying, dosing and drying of free flowing plastics. Further information about MANN+HUMMEL can be found under www.mann-hummel.com.