Press Conference on the Financial Statements of the MANN+HUMMEL Group for the year 2011. Ludwigsburg, 10th May 2011

Alfred Weber President & CEO   Only the spoken version is valid.

MANN+HUMMEL group sales 2011 increased by 13.5 percent to 2.47 billion euros: (from left) Manfred Wolf, President & General Manager Automotive + Industrial Business; Alfred Weber, President & CEO; Frank B. Jehle, Deputy CEO & CFO

Ladies and Gentlemen, good morning and welcome to the Press Conference on the Financial Statements of MANN+HUMMEL.

2011 was a very special year for MANN+HUMMEL: the 6th of January 2011 was the occasion of our 70th anniversary. And we celebrated this – here in Ludwigsburg, and at 50 other locations around the world. During the next 10 minutes I would like to report on some highlights from our jubilee year.
I would like to offer you all a warm welcome here in Ludwigsburg and also to those following our press conference online – welcome!

This virtual, international community reflects our internationality – the MANN+HUMMEL Group is a diverse team from over 70 nations. And we have one vision, a common goal: market leadership in filtration through
•    motivated employees
•    excellent products
•    exceptional results

At the end of 2011 a workforce of 14,338 motivated men and women were on track towards achieving these goals.

In 2011 the MANN+HUMMEL Group increased its turnover by over 13% to almost 2.5 billion euros and recorded a satisfactory result before interest and taxes (EBIT) to the amount of 142 million euros.

In 2011 we produced and delivered nearly half a billion filter elements. That is approximately 15 filters per second. In the 10 minutes I will speak to you here, a further 10,000 new filters will leave our production facilities around the world.

2011 was a good year and for this I would like to thank our customers and suppliers. Customers appreciate our products – because the quality and price are right – and, of course, our delivery performance. BOSCH, for example, presented us with their "Supplier of the Year" award. In the OEM business, the PSA group – the manufacturer of Peugeot and Citroën cars – also presented us with their supplier award for innovation, technology and emission reductions.

In 2011, we have made important decisions to provide sustainable support for the future growth of MANN+HUMMEL. We have created additional research, production and warehouse capacity with infrastructure projects in Germany, Asia and North and South America. In 2011 our investments in new buildings and production lines reached a record level of 109 million euros.

•    Never before has MANN+HUMMEL invested more,
•    Never before sold more products and
•    never before has the company employed so many.

2011 was a good year. Our employees in the administration and production were fully committed and worked very hard, with the production partly working in three shifts and seven days a week.

MANN+HUMMEL is a strong brand with a strong team. Our people are proud to work here and are happy to have a long term association with the company.

In return we have made considerable investments in 2011: we have implemented our company strategy on a broad basis and communicated this to all our employees. To communicate with and motivate employees in all countries and at all levels involves a great effort. We have communicated a common vision, values and strategy to more than 50 company locations.

Employees want to clearly understand the strategic orientation of their company. When they understand how their efforts contribute to the success of the company, a motivation turbo is activated. That's when people achieve their best possible performance – just as the MANN+HUMMEL team did in 2011.

To all our employees I would like to say a big thank you for the success we achieved together in 2011.

After my speech, my colleague Frank Jehle will give you more detailed information on the figures. Regarding the result I would just like to say: we are satisfied with the EBIT result, even though it is slightly below the level of the previous year.

How will we stay on course for the future? Well, first and foremost we will continue to invest – in buildings and production lines and especially in our employees.

Starting with company apprenticeships right up to specialised management training – qualifications and further training are a top priority for us. In 2011 we increased our expenditure in this area by over 40% compared to the previous year. In 2012 we plan to increase spending by almost 70% (compared to 2011).

At the same time, we have continued to invest in qualified employees and have taken on 60 new colleagues in the area of research and development. At the end of 2011 there were more than 800 R&D employees working on new ideas and preparing innovative products for market launch around the world. Approximately 3,000 patents and utility models worldwide represent our innovative power, and also benefit the environment.

MANN+HUMMEL is also involved in alternative drive systems. We combine new developments with proven technology. Our plastics expertise helps us meet the requirements of our customers with regard to modern, light designs and the reduction of CO2 emissions.

We are producing air filters for air-cooled batteries used in a French electric car and a North American hybrid. We are developing systems which regulate the pressure and air moisture within the lithium-ion battery and protect the accumulator.

MANN+HUMMEL is able to doubly equip hybrid vehicles. On the one hand they have fully-functioning combustion engines which require our filters and air intakes. On the other hand they have batteries for which we also produce products. We produce the battery frames for the Chevrolet Volt and the Opel Ampera, two electric cars from General Motors designed for everyday use with an extended driving radius.

We are working on more than ten definite projects for cars with alternative drive systems and are also diversifying into other areas of filtration.

For example water: we transfer our expertise of the simulation of the flow geometry of fuels and oil over to water. Our plastics expertise also helps us with water filtration. Last year we entered the water business in high volume markets such as China, Korea, the Philippines and Europe. In January 2012, the company Fluid Brasil, a Brazilian expert on water filtration, became a member of our group. New activities in the water segment are planned and further acquisitions are not excluded.

This is how we will proceed: diversify and transfer and extend existing know-how to new requirements in new filtration areas.

Wherever there is manufacturing and consumption and wherever industry is located, MANN+HUMMEL is there as well. We are the global market leader for filtration solutions for compressors serving well-known international companies and also large Chinese manufacturers.

We are often also there where you wouldn't expect us to be. All of here most likely have MANN+HUMMEL in your wallet or purse. Our EDM filters are used when the edge design is produced on euro and eurocent coins. We are the market leader for EDM filters and are even the only global player.

The year 2012 has started well for us, although the European market has either stagnated or is depressed. Our strong presence in the American and Asian growth markets will enable further growth in turnover, even though the growth rate will lie below that of 2011. On the other hand I see good opportunities to improve our result. In this process the record investments made in 2011 will offer us sustainable support.

Ladies and gentlemen, at the start I mentioned our 70th birthday. 70 does not mean we are old: our company is solid and dynamic and our employees are highly qualified and creative. Those such as MANN+HUMMEL who successfully combine tradition and modernity are ready for the future and need not fear the current crisis scenarios.

Thank you!

Alfred Weber
President + CEO, MANN+HUMMEL

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The MANN+HUMMEL Group is a leading global expert for filtration solutions and development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing 14,338 people at more than 50 locations worldwide, the company achieved a turnover of about 2.5 billion euros in 2011. 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, and membrane filters for water filtration and filter systems. Further information about MANN+HUMMEL can be found under www.mann-hummel.com.