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Headquarters Bosal International NV Dellestraat 20 3560 Lummen Belgium Tel: +32 (0)13 - 53 08 00 Fax: +32 (0)13 - 53 14 11 Website: www.bosal.com Email: info.bi@eur.bosal.com Europe Bosal International NV Dellestraat 20 3560 Lummen Belgium Tel: +32 (0)13 - 53 08 00 Fax: +32 (0)13 - 53 14 11 Africa Bosal Afrika (Pty) Ltd Box 1652 Pretoria 0001 Rooibok Avenue Koedoespoort Ind. Sites Republic of South Africa Tel: +27 (0)12 - 391 1000 Fax: +27 (0)12 - 333 7872 .ORTH!MERICA Bosal International North America 1476 Seaver Way Ypsilanti, Mich 48197 U.S.A. Tel: +1 734 - 547 7000 Fax: +1 734 - 547 2988 South America Bosal International South America Rua Ptolomeu 344 Sao Paulo-Sp CEP 04762-040 Brazil Tel: +55 (0)11 - 55 22 99 55 Fax: +55 (0)11 - 56 86 63 69 Asia Bosal International Shanghai Rep. Office A65, 11/F, Shanghai Mart 2299 Yanan Road West Shanghai 200336 P.R. China Tel: +86 - 21 - 6236 7081 Fax: +86 - 21 - 6236 7081 777"/3!,#/- 81-/Ê-9-/-ÊUÊ/ÊUÊ ,9Ê " 6,-" Ê "*" /-ÊUÊ/"7, -Ê Ê/""/-ÊUÊ,""Ê ,,,Ê-9-/-ÊUÊ7 Ê /",© Bosal International 2008 - English version 6 Ê -ÊUÊ7,"1-Ê, ÊUÊ/1-ÊUÊ, 1/1,Ê,,/" 3UPERVISORY"OARD The Board is pleased to report that the Bosal Group has achieved significant positive progress throughout the 2007 financial year, due in part to the continuous growth into new and expanding markets. In Europe for example, Bosal is establishing a strong foundation in the former Eastern Bloc countries. In Hungary, the construction of a new 16,000 m² plant next to the existing Bosal Autoflex plant has been completed. The new plant will produce jacks, wind stops, machined parts and housings for detachable and retractable towbars. In Russia, 244,000 m² of land has been acquired in the new automotive industry supplier park near Kaluga. OEM production of exhausts for Renault/Dacia has already begun in leased premises there, along the lines of a similar project delivered by Bosal Fouman Pars in Iran. In Zaporozhye, Ukraine, the joint venture with ZAZ is exceeding expectations with production output well ahead of plan. The Bosal-Oris joint venture is rapidly increasing production volumes using the global Bosal manufacturing infrastructure. New production sites have been established in Mexico, USA and Hungary. In Europe Bosal Oris has won a significant number of new OEM contracts for their retractable towbar as has the growing roofbars and roofracks operation. Their wind deflector product range has also consolidated its market-leading position world-wide. In 2007 two major new manufacturing sites came into service: Unique customer solutions for heavy duty exhaust systems contributed to the success of the truck, bus and industrial (TBI) division. The cabin manufacturing operation in Denmark had another record year with several exciting new contracts. Plans are being developed to extend its production capacity using Bosal’s global manufacturing footprint. With the successful entry into new and developing markets around the globe and strong performances in established markets, the Bosal Group Board is optimistic and foresees further growth in the various product market combinations that will reinforce Bosal’s market leadership. Dr h.c. Karel Bos (1928) Chairman Karel Bos (1961) CEO In Turkey, the newly built Bosal Mimaysan plant in Pelitli combines in one state of the art facility the operations of two separate plants in Gebze and Kartel and will as a result deliver significant synergies. The transfer of production to the new plant went without a hitch, recognized by the fact that Bosal Mimaysan was voted Best Supplier of 2007 by the Turkish Automotive Industry. Economies of scale were also achieved in the USA where the R&D facilities in Ann Arbor (MI) and the production plant in Warren (MI) were combined into one brand new 17,000 m² facility in Ypsilanti (MI). The new technical center is significantly larger and features improved development facilities to service new and existing OE customers. Facts and figures Bosal Group Chris Dewulf Dr h.c. Karel Bos (1928) 2 BOSAL 2008 Automotive Division Industrial Division 4URNOVERINEMILLION Turnover in 2007: E 158 million )NVESTMENTSINEMILLION 0LANTS $ISTRIBUTION (EADCOUNT Investments in 2007: E 4 million Plants: 5 Karel Bos (1961) Headcount: 869 BOSAL 2008 3 Dr Danie van der Walt (Research & Development Director Bosal International, South Africa) “Our research and development activities are focused on the establishment of new technologies for manufacturing cost-effective products that deliver future customer needs.” Research & development Innovation is a key driver throughout the various R & D organizations within the Bosal Group. The drive for innovation pushes the boundaries in materials, packaging, weight-saving and emission reductions, while cost efficiency remains a major driver for the customer. The exhaust system has developed into a complex product in its own right. It combines several functions such as the control of emissions, temperature management, noise signature management, sound level reduction and vibration isolation. Through the global spread of R & D facilities Bosal is able to bring global programs to their points of use and deliver customer needs for a greater range of products and technologies. Hot high frequency endurance testing of a close coupled catalytic converter assembly. Ir. Rudi Valgaeren (Program Director Bosal International, Belgium) “Our commitment is to develop dedicated competitive technical solutions for different markets in order to further reduce exhaust gas emissions of petrol and diesel engines.” 4 BOSAL 2008 BOSAL 2008 5 Manfred Nowak (Group OE Sales Director) “Global presence has always been a competitive edge for Bosal. We strengthened this advantage by opening new plants in Russia, Iran and Hungary. In the coming years we will continue and intensify our efforts to grow in the emerging markets.” John Miles (President Bosal North America) “During 2007 we successfully moved into our new facilities in Ypsilanti Michigan and Queretaro Mexico. These new facilities are designed to operate with world class efficiencies and quality standards and incorporate lean manufacturing principles.” OE Exhaust systems for passenger cars Bosal is a major worldwide supplier to the auto industry of complete exhaust systems including fabricated insulated manifolds and catalytic converters. Bosal recently developed and started supplying an exhaust system that is more cost effective, lighter and more durable than the previous generation of exhaust systems. 6 BOSAL 2008 BOSAL 2008 7 Rob Sweetnam (Group Commercial Director AM Europe) “We are totally committed to meeting the ever-changing demands of our aftermarket customers throughout Europe by supplying the highest quality exhaust, catalytic converter and towbar products in a professional, cost-effective and efficient manner.” Exhaust systems - Aftermarket By exploiting its OE competencies in the aftermarket, Bosal exhaust systems meet the most stringent standards and guarantee a life expectancy in line with customer needs. The vertical integration of the various business processes ensures specific expertise and know-how of all aspects of the product design, production and distribution processes. Innovative and responsive logistics are being enhanced and supported with e-business solutions resulting in an unrivalled availability to serve the aftermarket customer base. 8 BOSAL 2008 BOSAL 2008 9 Paul Hiel (Managing Director TBI Europe) “Bosal’s expertise and know-how in emission technology is a competitive advantage in the TBI sector.” 9.70e+02 9.49e+02 9.29e+02 9.09e+02 8.88e+02 8.68e+02 8.48e+02 8.28e+02 8.07e+02 7.87e+02 7.67e+02 7.46e+02 7.26e+02 7.06e+02 6.85e+02 6.65e+02 6.45e+02 6.25e+02 6.04e+02 5.84e+02 5.64e+02 High temperature heat exchangers Combined Heat and Power systems (CHP), for both domestic and industrial applications, is a fast growing market. The concept delivers energy savings, better utilization of non-renewable energy resources and emissions reduction. Bosal is developing and manufacturing high temperature components such as pre-heaters for Stirling engines, recuperators for micro turbines and heat exchangers and natural gas reformers for fuel cells. Dr Ir. Jean-Paul Janssens (Advanced Research and Bosal Energy Conversion Director) “Recuperation of heat at high temperatures is a technology that grows in importance every day. Over the years Bosal has invested in the research, development and manufacturing of components for energy systems which has resulted in a variety of product lines. In this way, a unique core competence has been established on which we base our strategic program for energy savings and emission reduction.” 10 BOSAL 2008 Truck, Bus and Industrial Bosal exploits its leading expertise in the automotive sector to develop and manufacture silencers and diesel exhaust gas after-treatment systems for Trucks, Buses and Industrial applications. TBI exhaust systems are tailor-made to OE specifications in Belgium and the United Kingdom and the customer base extends to manufacturers of stationary equipment, agricultural machinery, off-road and construction machinery. Bosal’s strong market share in this sector is based on lengthy experience and a strong understanding of the unique requirements and operating environments of the wide range of potential applications. BOSAL 2008 11 Jörg Riehle (Managing Director ACS/OEM Division) “It is our mission to improve the value offering to our customers by continuously inventing new products and processes.” AK 41 The ultimate detachable towbar system with a high D-value for heavy duty towing or a lower D-value for daily use. Automotive carrier systems Towbar systems The Bosal Oris joint venture has further strengthened its market leading position in Europe, capitalizing fully on the combined strengths of innovation, world class manufacturing and customer service. Bosal Oris delivers the full AK 11 spectrum of towbars from the most innovative discreet systems to straightforward durable designs. Retractable towbar The ORIS MATIC retractable towbar is a cutting-edge, patented, retractable design that eliminates the need to detach any parts of the unit when not in use. The innovative system has an external operating mechanism located under the bumper, which, like the towbar itself, is entirely hidden from view when not in use. The towbar swivels behind the bumper in approximately two seconds once the mechanism is operated. M11 In close cooperation with automobile manufacturers, Bosal Oris has developed a range of high specification detachable and fixed towbars for OE applications. Retractable towbar M5 12 BOSAL 2008 BOSAL 2008 13 U Preston, United Kingdom U Dublin, Ireland U Lyon, France U Reims, France U Mitry Mory, France U Paris, France U Béthune, France U Lummen, Belgium U Oevel, Belgium Bosal worldwide 2008 U Ypsilanti, MI, USA U Indianapolis, IN, USA U Lavonia, GA, USA U Querétaro, Mexico U Vianen, Netherlands U Made, Netherlands U Randers, Denmark U Sorø, Denmark U Prague, Czech Republic U Zaragoza, Spain U Madrid, Spain U Sagunto, Spain U Hannover, Germany U Viersen, Germany U Markgröningen, Germany U Mannheim, Germany U Sachsen, Germany U Łódz, Poland U Kozuchow, Poland U Zaporozhye, Ukraine U Kaluga, Russia U Moscow, Russia U Novoorsk, Russia U Cegléd, Hungary U Kecskemét, Hungary U Cortubi, Pitesti, Romania U Bursa, Turkey U Pelitli, Turkey U Gebze, Turkey U Kingston, Canada U Acton, MA, USA U Whippany, NJ, USA U Tuyauto, Casablanca, Morocco U Umo, Medellin, Columbia U São Paulo, Brazil U Gravatai, Brazil U Córdoba, Argentina Bosal R&D Bosal Manufacturing Plants Bosal Distribution Bosal Licensing Partners Bosal DongWon Licensing Partner U Teheran, Iran U Andisan, Uzbekistan U Sharda, Nashik, India U Pune, India U Shanghai, China U Yantal, China U Liu Zhoi, China U Haman, Korea U Asan, Korea U Rayong, Thailand U Hanoi, Vietnam U Tokyo, Japan U Bulawayo, Zimbabwe U Pretoria, South Africa U Pretoria, South Africa U Durban, South Africa U Cape Town, South Africa U Port Elizabeth, South Africa Bosal OE Sales & Engineering Office 14 BOSAL 2008 BOSAL 2008 15 T Manufacturing NEurope NBenelux NTurkey NGermany NFrance NGreat Britain NSpain NBB Plant 6 NBNL Plant 8 NBTB Plant 34 NBMT Plant 11 NBMT Plant 12 (SILS) BOM Plant 62 NBOS Plant 63 NBF Plant 17 NBTM Plant 33 NBLR Plant 39 NBUK Plant 21 NBES Plant 47 BIZ Plant 54 Belgium - Oevel - 68,300 m2 The Netherlands - Vianen - 14,500 m2 The Netherlands - Made - 17,669 m2 Turkey - Pelitli - 19,000 m2 Turkey - Bursa - 4,000 m2 Germany - Markgröningen - 16,500 m2 Germany - Sachsen - 21,000 m2 To be extended in 2008. France - Béthune - 36,200 m2 France - Mitry Mory - 4,400 m2 France - Reims - 17,665 m2 Great Britain - Preston - 45,600 m2 Spain - Sagunto - 21,500 m2 Spain - Zaragoza - 8,000 m2 NMiddle East NAfrica NCzech Republic NDenmark NHungary NUkraine NIran NSouth Africa NBCR Plant 45 NBSI Plant 53 NBAF Plant 31 NBTF Plant 57 NBOH Plant 42 NBSH Plant 42A NBAR Plant 28 NBRUS Plant 20 (School plant) NBZAZ Plant 60 NBFP Plant 41 NBA Plant 1 NBA Plant 2 NBA Plant 3 Czech Republic - Prague - 22,800 m2 To be extended in 2008. Denmark - Randers - 20,000 m2 To be extended in 2008. Hungary - Kecskemét - 6,375 m2 Hungary - Cegléd - 2,416 m2 Hungary - Kecskemét - 10,304 m2 Hungary - Kecskemét - 6,265 m2 Russia - Novoorsk - 2,300 m2 Russia - Kaluga - 4,000 m2 Ukraine - Zaporozhye - 4,000 m2 Iran - Teheran - 3,500 m2 South Africa - Pretoria - 45,800 m2 South Africa - Port Elizabeth - 2,000 m2 South Africa - Pretoria - 26,700 m2 NRussia NNorth America NSouth America NZimbabwe NCanada NUnited States NMexico NArgentina NBrazil NBA Plant 9 NBA Plant 10 NBCA Plant 5 NBC Plant 7 NBIMI Plant 65 NBIGA Plant 51 NBMX Plant 25 NBOX Plant 66 NBARG Plant 26 NBDB Plant 50 NBDB Plant 50 NBDB Plant 58 (SILS) South Africa - Pretoria - 18,000 m2 South Africa - Pretoria - 20,000 m2 South Africa - Pretoria - 2,100 m2 Zimbabwe - Bulawayo - 7,500 m2 Canada - Kingston - 19,000 m2 United States - Ypsilanti, Michigan 16,700 m2 United States - Lavonia, Georgia 11,893 m2 Mexico - Querétaro - 6,400 m2 Mexico - Querétaro - 2,000 m2 Argentina - Jesús María, Córdoba 1,400 m2 Brazil - São Paulo - 6,230 m2 Brazil - Sao Paulo - 15,800 m2 Construction of new plant opening in 2008. Brazil - Gravatai - 700 m2 Poland Denmark Ireland Germany United States BP Plant 16 BDK Plant 22 BEI Plant 27 BD Plant 36 BUS Plant 38 Poland - Lódz´ - 1,200 m2 Denmark - Sorø - 5,200 m2 Ireland - Dublin - 2,050 m2 Germany - Viersen - 15,600 m2 United States - Whippany, New Jersey 7,300 m2 Representative offices T Research & development Belgium United States South Africa Turkey T NBA Plant 4 NEurope Russia - Moscow NAsia China - Shanghai, Japan - Tokyo Germany T Distribution The Bosal network 2008 BI Bosal International - Plant 48 Belgium - Lummen - 11,000 m2 BINA Bosal International North America - Plant 65A BA Bosal International South Africa - Plant 1A BMT Bosal International Turkey - Plant 29 BOM Bosal International Germany - Plant 62A United States - Ypsilanti, Michigan 2,000 m2 South Africa - Pretoria - 1,300 m2 Turkey - Gebze - 600 m2 Germany - Markgröningen - 16,500 m2 AK6 The ultimate Bosal detachable system that is almost invisible after removal. The socket plate rotates and is hidden behind the bumper. The towball can be attached and detached quickly and easily. Ecofit The Ecofit is the economical detachable towbar concept. It combines reliability and ease of mounting with excellent value for money. Ecofit is the detachable solution for every motorist. Standard bolt-on The towball is integral with the car and cannot be removed without tools. It uses a tried and tested design of the highest standard. Automotive carrier systems Towbar systems As motorists increasingly seek to maximize the versatility of their cars for practical or leisure activities, so the appeal of towbars is increasing. Bosal provides solutions for all market sub-sectors, including heavy duty pick-ups, family hatchbacks and upmarket luxury SUVs. ORIS MATIC Welded The towball is welded to the subframe and is therefore not removable. The towbar is designed to fit perfectly and fulfils every task flawlessly. The high quality finish ensures the towbar will last throughout a long and demanding lifetime. 16 BOSAL 2008 Flange ball This towbar is suitable for heavyduty towing and is therefore ideal for commercial and off-road vehicles. The design is compatible with two- and fourhole fixings (height adjustable) depending on the vehicle type. The retractable towbar that eliminates the need to detach any parts of the unit and is invisible when not in use. BOSAL 2008 17 Vilson Codato (Managing Director South America) “We are determined to support our OEM customers around the globe by providing effective services and innovative solutions to meet their specific needs in their global markets.” Jacks and toolkits Bosal has held global market leadership in the OE supply of jacks and toolkits for many years. Jacks are produced in a wide variety of designs, sizes and lifting capacities, and include scissor and cantilever types. Complete solutions are delivered to customer assembly lines in the form of toolkits of which the jack forms an integral part. Wind deflector Bosal Oris manufactures a highly successful range of wind deflectors for convertible cars. These OEM products, called WINDSTOP, reduce the air turbulence and noise level for occupants when driving with the hood down. As a result, wind deflectors are becoming an automatic choice for buyers of these cars as they improve driver and passenger comfort and extend the ‘hood down’ driving season. 18 BOSAL 2008 BOSAL 2008 19 Roofbar Roofrack Roof carrier systems Kinematics Bosal designs and produces roofbars for delivery to production lines of OEMs for factory fitment. The roofbars are designed to enhance the styling cues of the specific models. Bosal engineers the roofbars to ensure that durability, practicality and safety are incorporated into the designs in addition to their aesthetic appeal. Bosal also produces a wide OE range of roofracks for commercial vehicles. Bosal Oris designs and produces a range of OE accessories for SUV’s like side rails with and without steps, running boards, grillguards and bullbars for non European applications. Kinematics is a successful OE product line especially for convertible cars with hardtop. Running board Bullbar for non European applications 20 BOSAL 2008 Side rails with steps BOSAL 2008 21 Carsten Fruergaard (Managing Director BSI) “Our global customer base requires customized cab solutions which we can deliver with our dedicated design capability.” Vehicle cabs Bosal Sekura, headquartered in Denmark, designs and produces vehicle cabs. These are supplied to leading manufacturers of agricultural and industrial vehicles throughout the world. In order to keep up with market demand the production capacity of Bosal Sekura Industries will be increased. The construction of a brand new 15,000 m2 production plant is planned to be ready before the end of this year. Further more the Bosal Global manufacturing footprint will be fully exploited with the employment of Bosal UK and Bosal Industry Georgia in the USA. Warehouse racking Bosal’s Netherlands-based warehouse racking division develops tailored solutions to complex storage problems. Initially supplying to the automotive industry, it has extended its customer base to the wider general warehousing and logistics sectors. 22 BOSAL 2008 BOSAL 2008 23 Luc Vints (Managing Director Tube Europe) “We will further differentiate ourselves in the competitive market of welded precision tubes through our manufacturing knowledge and technical capabilities. We create extra value for our customers through our logistics solutions and by offering semi-finished tube products.” Tubes and precision tubing Bosal has a global footprint in the delivery of tubes and tubular products, with manufacturing facilities in Belgium, South Africa and the United Kingdom. The products range from round, oval, square and perforated to complex profiles and vary from low carbon steel in hot rolled, cold reduced to coated steel aluminized and galvanized to stainless steel ferritic and austenitic. Bosal’s production facilities incorporate the latest hi-tech computer-controlled tube mills which process more than 120,000 tons of steel per year. Agricultural irrigation Pierre Hough (Managing Director South Africa) Based in South Africa, “Bosal’s House of Irrigation” supplies a diverse customer base around the world. It produces aboveground sprinkler irrigation equipment and also manufactures a wide range of “quick coupling” irrigation pipes in either galvanized lightweight steel or aluminum. 24 BOSAL 2008 “By optimizing every stage of our integrated value chain, we continue to increase our competitiveness in the local market as well as reinforcing our strong position as an export company.” BOSAL 2008 25 Michel Geerts (Group Human Resources Director) “Bosal remains committed to investing in its employees and in managing the group according to strong core family values.” The Board of Directors from left to right: Dirk Dessers (COO), Bosal do Brazil’s new Karel Bos (1961, CEO), 15,800 m2 plant is under Joop van Boesschoten (CFO). construction and will be ready in 2008. Forecast The global automotive industry continues to demonstrate significant improvement, with the emergence of new markets and new brands as well as the ever-increasing focus on reducing carbon emissions and the introduction of sustainable technologies. In the Ukraine it is planned to build on the scale. An additional focus in the years production of exhaust systems by starting ahead will be on heat recuperators for to manufacture tubes, consistent with the automotive applications. Group’s policy of vertical integration. The after-treatment of exhaust gasses To maximize the world-wide opportunities the 22,500 m² plant by almost 50% Recognizing the increasing diversity for commercial vehicles and heavy duty for Bosal’s extensive range of products, (10,600 m²) within the next 12 months. of vehicle models, production of wind industrial applications is yet another major deflector systems and towbars will be area of investment for the coming year started up in the USA. in terms of product development and the Bosal Group Board is planning further expansion into new and developing This global building program is all part of markets. In addition the Bosal Group will a major three-year investment plan which continue to invest in those markets where started in 2007 with the acquisition of Turning to environmental issues, Bosal it is already established. more than 750,000 m² of land in the USA, continues to invest in the development Finally, recognizing that it is the people that Russia, Hungary, Brazil and Turkey. of high-temperature heat exchangers in make the business, Bosal continues to low-emissions technology applications invest in tailor-made education programs In 2008 the building of a brand new durability testing. manufacturing facility will be started in Bosal Sekura Industries, the successful such as combined heat and power (CHP) to facilitate promotion from within the Kaluga, Russia. Bosal has acquired a vehicle cabin manufacturing operation systems. For high efficiency technology organization. Throughout a committed total of 244,000 m² of land. based in Denmark, recently won a applications Bosal is developing fuel workforce, Bosal remains a united family number of significant new contracts. reformers for high temperature fuel cells with shared values and goals. Another manufacturing facility under To meet demand, production capacity to generate electricity on a megawatt construction is a 15,800 m² plant in will be further increased by exploiting Itupeva, Brazil. The new facility will allow the current Bosal global manufacturing the Group to expand its market-leading footprint, specifically the production range of jacks and toolkits with new facilities of Bosal UK and Bosal product lines. Industries Georgia. To accommodate Bosal Sekura Industries 100,000 m2 With production at Bosal Czech Republic land has been bought in Denmark. The already running near capacity, increasing construction of a new 15,000 m2 plant market demand and the addition of new will be completed before the end of OEM contracts will be met by extending this year. Bosal’s global management team: one aim, one goal! 26 BOSAL 2008 BOSAL 2008 27