BSH is One of the World

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BSH is one of the world¶s foremost manufacturers of home appliances. Building on our market leadership in Germany and Western Europe, we are the number 3 in the globalcompetitive arena. It is our aim to be the benchmark for our sector. We want to present aconvincing case with our quality, design, innovation, consumer benefits and value in use. Our

products are part of everyday life.In order to provide our employees and customers with a clear means of orientation, we have

set out our values and goals in a set of corporate principles that describe the way the companysees itself, and the culture it adopts.

Responsibility

Creating added value for society For BSH, socially responsible action means contributing to better working conditions and

living standards worldwide. The more countries in which a company operates, the greater thediversity of requirements it faces. And observing minimum environmental and social

standards is not only a matter of corporate responsibility, it also safeguards a company¶sreputation. Because the company¶s responsibilities no longer stop at the ³factory gate´, and

BSH has the means to influence and shape matters far beyond these boundaries.

Dealings with others governed by clear rules Stable markets are absolutely essential for a company¶s long-term success. In areas lacking

political equilibrium and social and economic stability, companies seeking success in the

marketplace must themselves help establish such conditions. This means observing and

maintaining minimum environmental and social standards around the world, payingreasonable wages, fostering education and avoiding corruption. By signing up to the UN

Global Compact and the CECED Code of Conduct for the European home appliance sector,BSH has sent out a clear signal on the harmonization of global conditions of production.

The success of these rules of behavior and of BSH¶s own Business Conduct Guidelines

depends crucially on whether, and how positively suppliers buy into them. The code of conduct is therefore an integral element of BSH¶s purchasing strategy, and forms a permanent

part of supplier contracts, as a means of working towards improved local conditions of employment and living standards.

Compliance - one of ourcompany's key principles

With Compliance Management, BSH supports its employees in ensuring that their

actions always comply with the law and statutory provisions.

The BSH Corporate Principles enshrine the tenet that every employee¶s actions must at all



times comply with laws and statutory provisions. Reliability, fairness and integrity in internal

dealings and contacts with business partners and consumers are an integral element of BSH¶scorporate culture. These principles are also incorporated in the Business Conduct Guidelines

which BSH introduced in 2006 as binding provisions for all BSH employees. In order to

ensure their sustainable implementation, 2008 saw the BSH Group introduce a Compliance

Management function, which is intended to support the operational units in their observanceof the law, BSH guidelines and the Business Conduct Guidelines.

BSH is committed to the home appliance

sector¶s code of conduct

All of Europe¶s leading home appliance makers ± brought together under the umbrella of

CECED ± have agreed on a joint code of conduct for the sector in the CSR (Corporate SocialResponsibility) sphere, known as the ³CECED Code of Conduct´. BSH, which played a

leading role in shaping these guidelines, has also signed up to this code. Here, signatoriescommit to fostering fair labor conditions and sustainable social and environmental principles.Child labor, discrimination and corruption are all prohibited not only within BSH, but alsoalong the entire supply chain.

BSH is a member of the UN Global

Compact

BSH signed up to this initiative, the brainchild of UN Secretary General Kofi Annan, as long

ago as 2004. It calls on commercial companies to ensure that globalization benefits all of humankind. The code of conduct takes its cue from the ten principles laid down by the United

Nations in the ³Global Compact´. The focus here is on topics such as the rights of employeesand human rights in general, environmental protection and corruption.

1. Strategy and analysis

1.1 Statement from the most senior decision-maker of the organization "Now more than ever, the responsibility we demonstrate as a company underpins theconfidence of our customers and stakeholders, and is thus essential to our long-termcorporate success. In discharging our responsibility to the environment and to society and byliving our values, we also contribute to global sustainable development. And we are happy to

be measured by this contribution."Dr. Kurt-Ludwig Gutberlet, Chairman and CEO of BSH Bosch und Siemens HausgeräteGmbH

1.2 Description of key impacts, risks and opportunities As the world's third largest manufacturer of home appliances, BSH is aware of the importantrole that it can and must play in climate protection and responsible globalization. In the1990s, BSH pioneered the global move to hydrocarbon technology in refrigeration in order to protect the ozone layer and the climate. Today, too, it leads the way in the development of



energy-efficient, environmentally compatible products. Continuing climate change is drivingthe need to maximize potential energy savings. Home appliances are significant contributorsto the overall energy consumption of households. With its products, BSH is particularly well

placed to contribute to the protection of resources and of the climate.

2. Organizational profile

2.1 Name of the organization BSH Bosch und Siemens Hausgeräte GmbH

2.2 Primary brands, products and services Within a comprehensive brand portfolio, the main brands Bosch and Siemens are Europe'stop-selling names. With its six special brands (Gaggenau, Neff, Thermador, Constructa,Viva, and Ufesa), BSH caters for the individual and diverse wishes of consumers in relationto brand names and products. Five regional brands (Balay, Lynx, Pitsos, Profilo, andColdex) ensure a fine image and high market shares in their respective home markets. The

product range marketed under the various brands encompasses large and small homeappliances ranging from refrigerators, freezers, and dishwashers to home laundry, cooking,and floor care products.

2.3 Business units and corporate structure BSH Bosch und Siemens Hausgeräte GmbH is a corporate group operating worldwide. BSHhas 41 factories in Europe, Asia, and North and Latin America plus a worldwide network of sales and customer service companies in more than 40 countries (as of December 31, 2009).

2.4 Location of the organization's headquarters

Munich, Germany

2.5 Number/names of countries with major operations (or of particular relevance to the

sustainability issues covered in the report) Germany, Belgium, Brazil, China, France, United Kingdom, Greece, Austria, Northern

Europe, Poland, Portugal, Russia, Switzerland, Slovakia, Slovenia, Spain, Turkey and theUSA.

2.6 Nature of ownership and legal form BSH Bosch und Siemens Hausgeräte GmbH was founded in 1967 as a joint venture betweenRobert Bosch GmbH, Stuttgart, and Siemens AG, Berlin/Munich.

2.7 Markets served Distribution of sales revenue by region: BSH Group sales: 8.405 billion euros (as atDecember 31, 2009)Germany: 20.9 percentWestern Europe (excluding Germany) and Turkey: 48.2 percentAsia: 11.4 percentLatin America: 1.8 percent

North America: 5.2 percentEastern Europe: 9.9 percentOther: 1.6 percent

2.8 Scale of the reporting organization BSH Bosch und Siemens Hausgeräte GmbH is a corporate group operating worldwide. It



generated revenue of 8.4 billion euros in 2009. The Group had a total global headcount of 39,626 people (13,895 in Germany and 25,731 elsewhere) on December 31, 2009.

2.9 Significant changes regarding size, structure or ownership

y The Brazilian subsidiaries BSH Continental Eletrodomésticos Ltda. and BSH

Continental da AmazôniaLtda., Manaus, were sold to the Mexican-based ExinmexS.A de C.V. as of July 1, 2009.

y As part of an asset deal, BSH Huishoud-elektro B.V., Amsterdam, acquired the homeappliance activities from Siemens Nederland N.V., The Hague, as of January 1,2009.

y Also with effect from January 1, 2009, Willem van Rijn Huishoud-elektro B.V. andGaggenau Nederland B.V., Nieuwegein, were merged with BSH Huishoud-elektroB.V., Amsterdam. BSH Huishoud-elektro B.V. was then renamed BSHHuishoudapparaten B.V.

2.10 Awards received in the reporting period

y future/IÖW's ranking of the sustainability reports of Germany's 150 largestcompanies: The BSH report 2008 ranked eighth overall, best report in the homeappliances sector. [Link: http://www.ranking-nachhaltigkeitsberichte.de/]

y InnovationspreisfürKlima und Umwelt (Climate and Environment Innovation Award ± IKU) from the German Ministry for the Environment (BMU) and the Federation of German Industry (BDI) for the Zeolith® drying system in dishwashers [link:http://www.iku-innovationspreis.de/]

y Germany's Top Employer in 2009y Product awards:

o

Environmental award at the Foire de Paris innovation forum for the heat pump clothes dryer o Two innovation awards for BSH Slovenia: Gold for its hot drinks dispenser

and silver for a hand blender.o BSH appliances emerged as "best in test" or "best buy" in no fewer than 44 of

the 79 different German and European tests in which they featured.y BSH home appliances plant at Nauen named "Factory of the Year"y Supplier of the Year Award 2009 from Euronics International for BSH (for the fourth

time in succession)

Governance, commitments and engagement4. Governance, commitments and engagement

4.1 Governance structure, including responsibility for sustainability issues If the goal of sustainable development for the company is to be achieved, then its targets,guidelines, systems and tools must complement one another and interact perfectly. At BSH,responsibility for this is vested in the Board of Management. While the CorporateDepartment for Environmental Protection and Occupational Health and Safety coordinates



activities worldwide, Management Coordinators ensure compliance with environmentalstandards at the various sites and report to the Corporate Department annually on their activities. In addition, a Coordination Group for Corporate Social Responsibility (CSR) has

been set up and comprises representatives from environmental protection, occupationalhealth and safety, human resources, the legal affairs department, the purchasing function andcorporate communications.

4.2 Independence of the Chairman of the Supervisory Board The Chairman of the Supervisory Board of BSH Bosch und Siemens Hausgeräte GmbHcoordinates the work of the committee. During the year, the BSH Board of Managementsubmits regular verbal and written reports to the Supervisory Board detailing the company'sdevelopment and significant decisions.

4.3 Controlling body and independent members of executive management The Supervisory Board of BSH Bosch und Siemens Hausgeräte GmbH is made up of representatives of the shareholders and the workforce. Looking after the interests of employees are representatives of the senior executives and the trade union (IG Metall).

4.4 Mechanisms for shareholders and employees to provide recommendations to the

Board of Management/Supervisory Board

Shareholder recommendations are not applicable, because BSH is unlisted.BSH conducted an employee survey in 17 countries in 2009. It was the second such surveyin Germany, and the first in the other 16 countries. A total of 18,592 employees took part inthe survey, which corresponds to a participation rate of 82 percent. A monitoring tool has

been developed to allow consistent tracking of the measures introduced following the 2009employee survey. BSH will repeat the employee survey at two-year intervals. SeeResponsibility for the environment and society 2009, p. 19

4.5 Linkage between compensation for executive managers and the organization's

performance with regard to sustainability issues See 4.1

4.6 Processes in place for the governance bodies to ensure that conflicts of interest are

avoided

Annual Report 2009, page 100

4.7 Qualifications and expertise of the governance bodies in relation to sustainability

issues See 4.1.

4.8 Principles, values and codes of conduct

Active responsibility worldwide for the environment, employees and society is enshrined inBSH's business strategy by a set of guidelines. These include our Corporate Principles,environmental policy, corporate guidelines on environmental management, the occupationalhealth and safety policy, the Business Conduct Guidelines and the leadership principles.

4.9 Procedures at the Board of Management/Supervisory Board level for monitoring

environmental, economic and social opportunities and risks Issues addressed by the Supervisory Board included the situation on the global homeappliances markets, the growth in internet trading and conclusions for marketing concepts,



the energy efficiency of home appliances, new operating designs, and the ongoingdevelopment of the company's innovation management. The Supervisory Board soughtinformation from the Board of Management about the company¶s risk managementarrangements. Moreover, the Board of Management reported to the Supervisory Board onthe expansion of the compliance organization, the compliance training conducted, andcurrent compliance issues in 2009, in particular the investigations by the Munich public

prosecutor's office into possible illegal sales promotion practices.

4.10 Processes for evaluating the Board of Management's own performance in relation

to sustainability issues See 4.1

4.11 Implementation of the precautionary principle BSH excludes potential risks to a large extent by applying the precautionary principle. Itrelies on rigorous quality management and the continuous improvement of product and

process quality. By signing the United Nations Global Compact in 2004, BSH committeditself to respecting and promoting ten core principles of responsible business practice. These

principles form the basis for the Code of Conduct of the European Committee of DomesticEquipment Manufacturers (CECED). BSH was involved in drafting this code and signed itin 2005. The code is now an integral part of our suppliers' terms and conditions. Last year,BSH formalized this commitment by publishing its own Business Conduct Guidelines,which are binding on all employees worldwide.

4.12 External initiatives subscribed to or endorsed by the organization

y Global Compact www.unglobalcompact.org y "Time to go" initiative of the European Committee of Domestic Equipment

Manufacturersy "Sustainable Energy Europe" campaign of the European Commission

www.sustenergy.org y Energy efficiency workgroup of Germany's Electrical and Electronic Manufacturers'

Association (ZVEI) www.zvei.org y Home Appliance+ initiative www.hausgeräte-plus.de

4.13 Memberships of associations and interest groups

y German Association of Environmental Management (B.A.U.M.) www.baumev.de y European Committee of Domestic Equipment Manufacturers (CECED)

www.ceced.org y Global Compact www.unglobalcompact.org y Germany's Electrical and Electronic Manufacturers' Association (ZVEI

www.zvei.org)

4.14 List of stakeholder groups engaged by the organization Employees, customers, business partners, suppliers, authorities and NGOs (see 4.16).

4.15 Basis for the identification of stakeholders Dialog with politicians, dealers, consumers, suppliers and disposal contractors



4.16 Approaches to stakeholder engagement (type/frequency of dialog)

y In 2009, BSH conducted its first survey of 200 stakeholders around the world, of whom 70 responded. Some 72 percent of respondents rated BSH¶s commitment tothe environment as better than average, 44 percent felt that our contribution to wider society was better than average and 33 percent said we were better than average in

the area of commitment to our employees. Overall, 61 percent of those surveyedstated that our commitment to sustainability was better than average and 33 percentthat it was adequate. The most important concern for the future among thosesurveyed turned out to be the ease of use of home appliances for older people (25

percent). Next came social and ecological standards in the supply chain (13 percent)and good consumer information (11 percent). See Responsibility for the environmentand society 2009, p. 11

y Development of the Protos stove: Deutsche BundesstiftungUmwelt, ConservationInternational, Opportunity International Deutschland, World Bank, USAID,GesellschaftfürtechnischeZusammenarbeit (GTZ), Deutsche Investitions- undEntwicklungsgesellschaft (DEG), International Union for Conservation of Nature(IUCN), DINARI (Indonesia), TERI (India), Gold Standard Foundation

4.17 Position on key concerns of stakeholders

y BSH launched a concerted energy efficiency campaign, the Energy ExcellenceInitiative, in 2008. The initiative aims to make energy efficiency a central guiding

principle internationally at all subsidiaries and to position BSH as a leading provider of energy-efficient products worldwide. BSH¶s active support for the Chinesegovernment¶s project to design and introduce an energy label based on the Europeanmodel is one of the measures being pursued under this particular initiative.

y BSH phased gases that deplete the ozone layer out of its refrigerator manufacturingoperations at the beginning of the 1990s in Europe and a few years later in China.

Home appliances have such a long product life span, however, that we are stillreceiving a large quantity of CFC-containing refrigerators and freezers back for recycling. BSH's contractors have to meet high quality standards for recycling. BSHintroduced a quality assurance system for recycling in Germany in 2008 to verifycompliance with these standards. Every year, an independent expert subjects therecycling facilities to around 100 quality assurance audits. This means that BSH goeswell beyond the minimum requirements imposed by law. Other manufacturers began

joining up to this proven audit system in the middle of 2009. Together with non-governmental organizations, the Zentralverband der Elektroindustrie (GermanElectrical and Electronic Manufacturers' Association ± ZVEI), recyclers'associations, and government authorities, BSH is planning a field trial in 2010 todetermine the volume of recaptured CFCs.



EconomicEconomic: Management approach and performance indicators

Goals and performance BSH pursues a business strategy designed to achieve sustained profitability. Fullconsideration is given within this strategy to the interests of all stakeholders. The company¶scommercial success flows from the rigorous pursuit of its objectives coupled withcontinuous investment in production facilities and innovative product lines. Thanks to theconstant growth of its business BSH has never had to report a loss over the more than 40years since its foundation. In 2009, as in the previous year, the international rating agencyStandard & Poor¶s confirmed BSH's external long-term rating of "A-" with a positive

outlook, making it best in class in the home appliances sector. BSH believes it has animportant role to play in future in helping to combat climate change by producing appliancesthat conserve resources. This commitment promises economic benefits for the company aswell as broader environmental benefits. BSH has once again been named ³best supplier" byits customers.

Principles and guidance

y Corporate Principles y Business Conduct Guidelines

Additional information

y 2009 Annual Report

EC1 Direct economic value generated and distributed The BSH Group generated revenue of 8.405 billion euros in the year under review. Earnings

before interest and taxes (EBIT) amounted to 534 million euros, or 6.4 percent of revenue.The 2009 tax rate for the Group as a whole was 36.6 percent. The Group¶s income taxexpense amounted to 189 million euros, around 75 percent of which can be attributed to



Western Europe and 60 percent thereof to Germany. Outside Germany, 3.7 percent of theincome tax expense was attributable to Great Britain, 13.7 percent to Eastern Europe, 13.8

percent to Turkey and eight percent to Asia. Total personnel costs amounted to 1,739 billioneuros. Consolidated research and development expenses were 267 million euros, 1.5 percentmore than in the previous year. In total, BSH spent around 123,000 euros on cash donationsand donations in kind to projects in Germany in 2009.

EC2 Risks and opportunities due to climate change

Developing energy-efficient and environmentally friendly household appliances is a keyconcern for BSH. This is how the Group safeguards competitiveness and employment andmakes a significant contribution to preservation of resources and climate protection. BSH isinvolved in the Energy Efficiency Initiative of industry association ZVEI, which aims toraise energy efficiency to the top of the corporate and social agenda, and has launched itsown Group-wide Energy Excellence Initiative.The consumption values of BSH's are often significantly below those specified for class A,the best energy efficiency class. For this reason, BSH has combined these appliances in a

portfolio of super-efficient home appliances with the intention of further expanding sales of these ranges. In 2009 sales of these super-efficient appliances tripled compared with the

previous year. Sales of the BSH's most efficient appliances accounted for 15 percent of thetotal number of units sold in Europe, while in terms of revenue, they accounted to as muchas 18 percent of BSH's total European revenue. The appliances from the super-efficiency

portfolio sold in Europe during 2009 bring a saving of around 1.1 billion kilowatt hours of electricity, calculated over the average useful lives of the appliances. This is equivalent tothe average annual electricity consumption of more than 300,000 private households inGermany. Standards defining how these savings are to be recorded and calculated in thesector have yet to be drawn up, so BSH has submitted both its procedure and the underlyingdata to an external auditor for verification.

EC3 Company social welfare provision and pension obligations

Voluntary social welfare provision depends on regional requirements and localcircumstances. In Germany, for example, BSH has a company pension plan ± thePensionskapital scheme. To date, a total of 42 million euros in company pension paymentshas been paid out to former BSH employees. BSH also offers attractive options for employee-funded retirement pension provision and provides loans to employees, anniversary

bonuses, and special leave.

EC4 Financial assistance and subsidies received from government BSH claimed around 230,000 euros in government subsidies worldwide during the periodunder review.

EC6 Policy, practices, and proportion of spending on locally -based suppliers

BSH spends some 4 billion euros on production materials worldwide every year. Most of these are sourced from Germany and Western Europe, as this is where most of the BSH sitesare located. BSH always seeks to purchase locally in principle, not least in order to avoidcurrency risks and customs duties and keep transport distances to a minimum. Even in Chinaand the Americas, we procure the great majority of our materials from local suppliers. Innew markets and emerging countries in particular, we encourage suppliers to establish a baseon our sites and assist them with undertakings such as the introduction of environmentalmanagement systems.



EC7 Procedures for local hiring and proportion of senior management hired from the

local community Not specified

EC8 Infrastructure investments and services provided primarily for public benefit

BSH turned the plant oil stove idea into a mature and marketable product in order to help

prevent exposure to harmful combustion gases and reduce deforestation in developingcountries. The Protos plant oil stove oil provides users in areas where wood has previously

been the main fuel used in food preparation with a healthier and more environmentallyfriendly alternative. Adoption of the Protos also entails a local production and marketingconcept that will create jobs in the extraction and processing of oil from indigenous plants,in the manufacturing of the stove, and in sales. In 2010, series production of the secondgeneration of stoves will commence in Indonesia.BSH-Katastrophenhilfee.V., the company¶s disaster relief fund with activities around theworld, was founded in 1999. Since then, BSH employees and directors have donated over around 1.05 million euros to help people in areas affected by disasters. Most of its resourcesin 2009 went to assist earthquake victims in the Philippines and to the SahanaNivasachildren¶s home, our long-term aid project for survivors of the 2004 Indian Ocean tsunami.BSH's sites and subsidiaries become involved in numerous local projects too and providesupport in several forms, including product donations for good causes in society.In Germany, BSH has a particular commitment to supporting measures aimed at raisingawareness of climate change and energy efficiency among young people. Activities in thisarea in 2009 included a joint project with the German Institute for Film and Images inResearch and Teaching (FWU).

Environment

Environmental: Management approach and performance indicators

Goals and performance BSH has set itself the goal of becoming the industry benchmark - including in its handling of ecological and social issues within its sphere of influence. In order to capitalize on newopportunities, BSH is concentrating on three action areas:

1. Energy efficiency: To contribute to the efficient use of resources and to climate protection and to set standards for the industry worldwide with energy-efficient and



innovative product and production solutions.2. Product responsibility: To continuously improve environmental protection and health

and safety throughout the product lifecycle in dialog with politicians, retailers,consumers, suppliers and disposal contractors.

3. Know-how transfer: To offer the best possible living and working conditions to people the world over through the transfer of BSH standards and experience in

production, product design, training and professional development.


y Environmental policy y Corporate guidelines on environmental management y Occupational health and safety policy

Responsibilities within the organizationWithin the BSH Board of Management, Prof. Werner Vogt was responsible for environmental protection until June 30, 2009; Winfried Seitz assumed responsibility for thisarea on July 1, 2009. The Corporate Technology, Environmental Protection, andOccupational Health and Safety Department has overall responsibility for environmentalmanagement worldwide; environmental protection managers and health and safety officers,who report to Head Office, are appointed at all sites worldwide to ensure the policy isimplemented. See also 4.1.

Training and awareness

Corporate Technology, Environmental Protection and Health and Safety conducts regular audits at the BSH locations worldwide.

Monitoring mechanismsIn order to reliably achieve its environmental targets, BSH has instituted management

systems and tools. All environmentally relevant sites have environmental managementsystems to ensure that all statutory obligations and internal guidelines are complied with. Weoperate 28 production sites, 25 of which have now completed certification under both ISO9001 (quality) and ISO 14001 (environmental management) and record their environmental

performance in the form of indicators. Our occupational health and safety managementregulations have been in strict compliance with the international OHSAS 18001 standardsince the beginning of 2009.Product environment analysis (PEA) is a tool used in product development since 1996 tosupport new development or further development of appliances. Environmental performanceindicators ± both product-related and production-related ± provide management with asuitable basis for the successful implementation of ideas.The code of conduct for BSH suppliers, which is based on the UN Global Compact and the

conventions of the International Labor Organization (ILO), has been included in supplycontracts since 2007. We had obtained an undertaking to uphold the code of conduct fromour direct material suppliers in both A and B categories by the end of 2009. These twogroups together account for more than 95 percent of our total purchasing volume, and weexpect all of our A and B suppliers to have an environmental management system in place.We only accept new suppliers if they are prepared to recognize the code of conduct and wecarry out a basic audit that includes social and environmental aspects in every case.




The company suggestions initiative (Top Idea), established in 14 countries in 2009, providesus with valuable hints on how we can optimize our processes.

Environmental performance indicators

EN1 Materials used by weight or volume

In fiscal 2009, BSH used 3,640 metric tons of environmentally relevant process materials(oils, emulsions, solvents, acids, and caustic solutions), 770,756 metric tons of raw materials(metals and plastic pellets), and 15,390 metric tons of auxiliary materials (coatings andenamels).

EN2 Percentage of materials used that are recycled input materials Not specified

Aspect: Energy

EN3 Direct energy consumption by primary energy source Total energy consumption during the year under review was 798 gigawatt hours (GWh),seven percent down on the previous year¶s figure of 859 GWh. The share of electricalenergy in the energy mix rose to 54 percent (previous year: 52 percent). Natural gasconsumption, which relates primarily to building and process heating, fell by more than 18

percent in 2009 and the share of gas in the energy mix accordingly fell by four percent to 32 percent. District heating covers 13 percent of energy requirements, with 21 percent of districtheating energy being derived from biomass. Our specific energy consumption improved bytwo percent year-on-year to 673 kilowatt-hours (kWh) per tonne of product in 2009. This issignificantly better than the target figure for the year of 705 kWh per tonne of product.

EN4 Indirect energy consumption by primary source

Extract from the input-output balance sheet (input flows)





The 2009 carbon footprint amounts to 400,000 metric tons of CO2 (adjusted prior-year value: 403,000 metric tons), a decline of almost 1 percent. Around eleven percent of thistotal comes from direct emissions linked to oil and gas consumption at the BSH factories.Indirect emissions resulting from energy consumption at the production and office sitesaccount for 67 percent of total CO2 emissions. Business travel accounts for around eight

percent, goods distribution logistics and customer service activities for 14 percent. BSH

started ascertaining the factory-specific carbon dioxide emission values for electricity anddistrict heating using data obtained directly from the power generation companies in 2008.Figures for previous years are based on the country-specific data provided by theInternational Energy Agency (IEA).

EN17 Other indirect greenhouse gas emissions caused, for example, by business travel

and commutingThe recording of CO2 emissions resulting from business travel includes emissions caused byflights, business travel by car and rail, and the use of sales and customer service vehicles.The data for this Scope 3 reporting was extrapolated from verified regional reports(Germany and Europe). 25 percent of CO2 emissions are caused by air travel, with 73

percent resulting from business travel by car and two percent from rail journeys. Hire carsand leased cars are used for most business travel undertaken for customer service, sales andother business purposes.



Social: Management approach and performance indicators

Labor pr actices and decent work

Management approach


1. Energy efficiency: To set the standard in the sector with innovative product andmanufacturing solutions that reduce resource consumption and help to combat climatechange.

2. Responsibility for our products: To continuously improve environmental protectionand health and safety throughout the product lifecycle in dialog with politicians,retailers, consumers, suppliers and disposal contractors.

3. Knowledge transfer: To offer the best possible living and working conditions to people the world over through the transfer of BSH standards and experience in production, product design, training and professional development.


y Corporate Principles y

Business Conduct Guidelines y Occupational health and safety policy y BSH leadership principlesy CECED Code of Conduct

Responsibilities within the organization See 4.1.



Training and awareness The BSH leadership principles introduced in 2008 shape interactions with employees at allBSH sites. They provide guidance for managers and practical descriptions of what isconsidered to be good management at BSH. Management is being supported through theintroduction process by a global publicity program that includes intensive workshops inwhich managers and their colleagues discuss how they implement the principles in everyday

practice. Instructors and multipliers are being trained to explain the leadership principles toall employees.Training in relation to the German General Act on Equal Treatment (AGG) is also taking

place.

Monitoring mechanisms

The Business Conduct Guidelines of the BSH Group provide employees throughout thecompany with a clear code of conduct to which they can refer and to which they must adhere.All BSH employees have a duty to comply consistently with these rules. As part of their organizational and supervisory duties, managers take steps to ensure that business isconducted in accordance with these guidelines.The code of conduct for BSH suppliers, which is based on the UN Global Compact and the

conventions of the International Labor Organization (ILO), has been included in supplycontracts since 2007. The code requires all suppliers to act in accordance with BSH¶s own

principles, so they have to respect human rights, for example, avoid child labor, maintaingood working conditions, encourage environmental protection, and prevent corruption.We had obtained an undertaking to uphold the code of conduct from our direct materialsuppliers in both A and B categories by the end of 2009. These two groups together accountfor more than 95 percent of our purchasing volume. We only accept new suppliers if they are

prepared to recognize the code of conduct and we carry out a basic audit that looks at socialand environmental aspects in every case. We expect all of our A and B suppliers to have anenvironmental management system in place.BSH introduced a compliance management organization at the beginning of 2008 to helpfacilitate the consistent implementation of this code ± our Business Conduct Guidelines ± across the Group¶s various departments and sites. This organization comprises the CorporateCompliance Committee, the Office of the Compliance Committee, regional ComplianceOfficers and an external ombudsman to whom any employee of BSH ± and even any third

party for that matter ± can turn, anonymously if necessary, to report infringements.


The company suggestions initiative (Top Idea), which provides us with valuable hints on howto optimize our processes, operated in 14 countries in 2009.

LA1 Total workforce by employment type, employment contract and region*)



LA2 Employee turnover by age group, gender and regionLike just about all organizations, BSH has begun to notice the effects of demographic change.The average age of our workforce around the world remained more or less constant at around38.6 years and the average length of service also remained unchanged at around eleven years.

Germany boasts a particularly high figure of 17 years, followed by Austria with 15 years.BSH had 765 apprentices and trainees in 2009 (previous year: 763).The Group had a total global headcount including apprentices of 39,626 people (13,895 inGermany and 25,731 elsewhere) on December 31, 2009, around 1.6 percent fewer than at theend of 2008. The size of the workforce was primarily reduced in the companies in Spain andthe USA. In addition, the sale of the Brazilian subsidiary reduced the Group¶s total headcount

by 1,514. A total of 660 jobs were eliminated around the world. New staff were appointed inChina, Turkey, the Netherlands, Slovenia, and Luxembourg. 35 percent of the workforce isemployed in Germany, 31 percent in Western Europe (excluding Germany but includingTurkey), 20 percent in Asia, four percent in North America, and ten percent in EasternEurope.

LA4 Percentage of employees covered by collective bargaining agreements Not specified

LA5 Minimum notice periods regarding significant operational changes Not specified

LA7 Rates of injury, absenteeism and work-related fatalities Accidents occurring at work and resulting in at least one day¶s absence are recorded in thestatistics. While the average duration of absence ± a broad gauge of the severity of accidents

± has risen compared with the previous year, the number of accidents per million hoursworked ± our preferred indicator for the frequency of accidents ± has fallen significantly.BSH suffered a fatal workplace accident in April 2009 during loading operations involving a

fork lift truck at a finished goods warehouse. Accidents involving external companies have been reported in a separate section within the BSH occupational health and safety statisticssince 2007. This helps to ensure that our service providers give greater consideration tooccupational health and safety and accident prevention.



LA8 Prevention and programs for risk control in relation to serious diseases The average age of our workforce continues to rise, especially in Europe. Mindful of the needto prepare for the consequences of demographic change, we acted three years ago to launchan initiative in which representatives of the factory sites, the corporate departments, customer service, corporate technology and the Works Council collaborate in three working groups togenerate possible solutions to the associated issues. We communicate the activities underway

and their outcomes to all employees under the headline "Shaping the future ± BSH preparesfor demographic change." All activities under the initiative focus primarily on health promotion and enabling employees to carry on working. Concrete examples include our Ergo-Check scheme, under which we assess the design of manufacturing workstations againstergonomic criteria and undertake any necessary improvements.

LA10 Hours of training per year by employee category

Comprehensive training and development programs allow BSH to identify the most suitableemployees for the company. The BSH Academy continues to work for even tighter integration of multimedia training methods and educational concepts to help the Group makeoptimal use of its knowledge, a vital factor in value creation. Employees all over the worldhave access to the Academy¶s training courses via a learning platform maintained in the two

BSH Group languages ± German and English. 11,141 BSH employees around the worldsuccessfully completed web-based compliance training in 2009. Compliance training is nowavailable in eleven languages: German, English, Chinese, French, Greek, Dutch, Polish,Portuguese, Russian, Spanish, and Turkish. The new online training package coveringantitrust law introduced in 2009 is available in ten languages.Total investment in training and development in Germany in 2009 amounted to 17.4 millioneuros.



LA13 Diversity of senior management and the employee structureAbout 28 percent of BSH¶s 39,600 or so employees are female. The average age of BSHemployees around the world remained more or less constant at around 38.6 years. As of December 31, 2009, 194 German expatriates (previous year: 216) were based in 30 differentcountries and 71 inbounds worked at German BSH sites (previous year: 46). In addition,there were 25 cross-country transfers, i.e., transfers between sites outside Germany (previous

year: 19). The inbounds and cross-country transferees came from a total of 15 differentcountries. There are also international, Group-wide personnel pools, which serve to identify,target, and develop suitable management recruits from around the world, for example throughcross-country transfers.We nurture the most promising of our junior staff around the world through our Junior Executive Pool (JEP) and International Executive Pool (IEP). There were 525 junior staff inthe JEP in 2009, half of whom came from BSH companies outside Germany and 27 percentof whom were women. Junior staff earmarked for future international management functionsare assigned to the IEP, where the proportion of female recruits reached 18 percent in 2009.The Senior Executive Program (SEP) launched in 2007 continued to serve selected membersof the senior management group successfully during the year under review. The three-year

program is designed to prepare participants specifically for a key position within the Group.In 2009, female participation in this program stood at ten percent. The Project Leader career

path presents another attractive professional development option for management-level staff at BSH. Employees choosing to follow this program have the opportunity to build up their

project management knowledge and experience systematically to gain Project Manager,Senior Project Manager or Project Director qualifications. BSH prioritizes human resourcedevelopment on the factory floor too and won Turkish HR development organizationPERYÖN¶s "Blue Collar Award" in the Talent Management category in 2009.



LA14 Average salary by gender and employee category Not specified

Human rights

Management approach

Goals and performance BSH has set itself the goal of becoming the industry benchmark - including in its handling of ecological and social issues within its sphere of influence. Underlying our actions are valuesthat we reaffirmed by signing the United Nations Global Compact in 2004. These values alsoconstitute a permanent element of our supplier contracts.


y Corporate Principles y Business Conduct Guidelines


Training and awareness Not specified

Monitoring mechanisms The Business Conduct Guidelines of the BSH Group provide employees throughout thecompany with a clear code of conduct to which they can refer and to which they must adhere.All BSH employees have a duty to comply consistently with these rules. As part of their organizational and supervisory duties, managers take steps to ensure that business is

conducted in accordance with the guidelines. We expect our supply chain too to demonstrateintegrity and respect for the law. The code of conduct for BSH suppliers, which is based onthe UN Global Compact and the conventions of the International Labor Organization (ILO),has been included in supply contracts since 2007. The code requires all suppliers to act inaccordance with BSH¶s own principles.


Human rights (HR) performance indicators

HR 1 Percentage/number of investment decisions that include human rights clauses or

that have undergone human rights screening Not specified

HR2 Percentage of suppliers that have undergone human rights screening*) The code of conduct for BSH suppliers, which is based on the UN Global Compact and theconventions of the International Labor Organization (ILO), has been included in supplycontracts since 2007. The code requires all suppliers to act in accordance with BSH¶s own

principles, so they have to respect human rights, for example, avoid child labor, maintaingood working conditions, encourage environmental protection, and prevent corruption. We



had obtained an undertaking to uphold the code of conduct from our direct material suppliersin both A and B categories by the end of 2009. These two groups together account for morethan 95 percent of our purchasing volume. We only accept new suppliers if they are preparedto recognize the code of conduct and we carry out a basic audit that looks at social andenvironmental aspects in every case. BSH is committed to dialog and development on a

partnership basis with its suppliers and carries out audits only where necessary.

HR4 Incidents of discrimination and action taken Not specified

HR5 Business activities involving a significant risk

Not specified

HR6 Business activities with a significant risk of child labor, and action taken Not specified

HR7 Business activities with a significant risk of forced or compulsory labor, and action

taken Not specified

S ociety

Management approach


y Energy efficiency: To set the standard in the sector with innovative product andmanufacturing solutions that reduce resource consumption and help to combat climatechange.

y Responsibility for our products: To continuously improve environmental protectionand health and safety throughout the product lifecycle in dialog with politicians,retailers, consumers, suppliers and disposal contractors.

y Knowledge transfer: To offer the best possible living and working conditions to people the world over through the transfer of BSH standards and experience in production, product design, training and professional development.


y Corporate Principlesy Business Conduct Guidelines


Training and awarenessIntegrity and respect for the law have always been core strands of the corporate culture at



BSH. Clear regulations like the Business Conduct Guidelines, which came into force in 2006,and comprehensive employee training are just as central to compliance management as theexhaustive investigation of any purported illegal activity.We launched a wide-ranging internet-based training program in a number of languages in2008 in order to help ensure all employees understand and remember the importance of values and compliance. Available to all, the program is mandatory for senior and middle

management, authorized agents, and customer- and supplier-facing employees. The programcomprises online training on the BSH Business Conduct Guidelines, on antitrust law, on anti-corruption, and, since early 2010, also on labor law.

Monitoring mechanisms BSH introduced a compliance management organization at the beginning of 2008 to helpfacilitate the consistent implementation of this code ± our Business Conduct Guidelines ± across the Group¶s various departments and sites. This organization comprises the CorporateCompliance Committee, the Office of the Compliance Committee, regional ComplianceOfficers and an independent ombudsman to whom any employee of BSH ± and even anythird party for that matter ± can turn, anonymously if necessary, to report infringements.BSH¶s corporate compliance organization investigated 17 cases in fiscal 2009. In six cases it

was found that there had been no material breach of the guidelines. The other cases are either ongoing or have been concluded following the implementation of appropriate measures. Theombudsman received three reports of possible compliance breaches in 2009.


Society performance indicators

SO1 Minimization of negative impacts on communities Not specified

SO2 Percentage/number of business units analyzed for risks related to corruption Not specified

SO3 Percentage of employees trained in anticorruption policies and proceduresIn 2008, BSH launched a comprehensive internet-based compliance training program inseveral languages. Available to all, the program is mandatory for senior and middlemanagement, authorized agents, and customer- and supplier-facing employees. 11,141 BSHemployees around the world successfully completed web-based compliance training in 2009.Compliance training is now available in eleven languages: German, English, Chinese,French, Greek, Dutch, Polish, Portuguese, Russian, Spanish, and Turkish.Compliance is also addressed in face-to-face training events and workshops worldwide andhas been a permanent component of the management training program provided through the

BSH Academy since 2009.

SO4 Action taken in response to incidents of corruption The Board of Management and Corporate Compliance Committee received information about

possible unfair sales promotion activities in Germany in the summer of 2009. BSH isinvestigating the matter as a top priority and is cooperating fully with the public prosecutor¶soffice. Working in conjunction with external attorneys, we are ascertaining the facts of thecase and preparing corresponding legal assessments. Investigations were still ongoing whenthe present report went to press. We have boosted the number of staff in the Compliance



Committee office from two to six to enhance its training capacity and its ability to provideadvice on legal compliance matters.

SO5 Public policy positions and participation in public policy development and

lobbyingHome appliances are significant contributors to the overall energy consumption of

households. With its products, BSH is particularly well placed to contribute to the protectionof resources and of the climate. This is why, as members of various associations and in our dialog with politicians and society generally, we are advocating rapid, decisive action. Thisincludes the activities of the European Committee of Domestic Equipment Manufacturers(CECED) and our involvement in the European Commission's Sustainable Energy Europeinitiative.BSH is involved in the sector trade association ZVEI¶s Energy Efficiency Initiative, whichaims to raise energy efficiency to the top of the corporate and social agenda, and haslaunched its own Group-wide Energy Excellence Initiative to make consumers andemployees even more aware of energy efficiency. BSH CEO Dr. Kurt-Ludwig Gutberlet,who has taken an especially close personal interest in this matter, continues to call for consumers to be given better and more transparent information. One of the proposals mooted

is for the EU energy label system to be redesigned to reflect the technical progress of products more accurately and give consumers a completely reliable way to identify the mostefficient model.To ensure high quality standards for recycling throughout Europe, BSH has worked with therelevant trade associations, in its capacity as a member of more than 20 national take-back systems, to draft and encourage the adoption in practice of voluntary industry standards for the collection, transport, storage, handling, and processing of refrigerators and freezers.

SO8 Fines/sanctions for non-compliance with laws and regulations None

Training and continuing education leadingto qualifications

Skilled employees are an essential prerequisite for speeding up processes within the company,

controlling them in a reliable manner and enjoying success in the competitive arena. Via its in-house

BSH Academy, the group offers candidates at all levels a wealth of training opportunities, whether

for managers, junior recruits or skilled personnel. The range of topics covered was expanded by 16

percent during 2006.

During the same period, the proportion of computer-based training in the overall program rose to

more than 50 percent.

QuickLinks

junior company

Awards RecognizingCommitment to the Environment



2010 BSH receives the Innovation Prize for Climate and the Environment

2009 In the sustainability report ranking of the 150 largest German companies, BSH occupies 8th

place overall and 1st place in the home appliance sector.

The washing machine plant in Nauen is named Factory of the Year in a cross-sector

competition, in recognition of its outstanding resource efficiency

2008 BSH has received the first German Sustainability Award and is Germanys most sustainable

company for 2008.

For its dishwasher with the innovative zeolite drying system BSH receives the BavarianEnergy AwardThe Neff factory in Bretten receives the Environmental Prize for Businesses 2008 from the

state of Baden-Württemberg

2006 Dr. Kurt-Ludwig Gutberlet receives the B.A.U.M international special prize 2006 for years of

exemplary commitment to the enviroment

2005 2003/2004 Environmental and Corporate Responsibility report awarded first place in its

sector in Capital magazines rankings of 150 sustainability reports

2004 Federation of German Industries (BDI) 2003/2004 Award for the Environment for the project

Consistent implementation of innovative technology and environmental standards in

manufacturing cooling appliances

in China

Environmental prizes awarded by the Federação das Indústrias de São Paulo (FIESP) for the

project Aqua Viva and the project Environmentally friendly refrigeration appliance

2003 National Prize of the Spanish Ministry of the Environment PremioNacionalEmpresa y

MedioAmbiente 2003

2002 Dr. Robert Kugler, as a member of the Management-Board, is voted Eco Manager of the Year

2002 by the environmental foundation of WWF Germany (World Wide Fund for Nature) and

by Capital

An environmental prize is awarded to BSH Continental Eletrodomésticos Ltda., São Paulo

(Brazil) by the Federação das Indústrias de São Paulo (FIESP) for its implementation of Agenda

21

2000 The BSH/Environmental Report is ranked as the best German publication in its sector by

German business magazineCapital

The cooling appliances factory in Chuzhou (China) is elevated to the ranks of Environmental

High Tech Enterprises by the China Environment Science Association



1997 The Bundesverband der DeutschenIndustriee.V. (BDI), Germanys industry federation, awards

its environmental innovation prize to Product Environment Analysis

1993 U.S. Environmental Protection Agency (EPA) honors BSH with Enviromental Award

Award-winning qualityBSH is uncompromising when it comes to quality ± and that goes for every area, taking in not just products, butprocesses and management too. It is BSH¶s aspiration to offer its dealers and consumers the best possible quality, in

every area and at all times.

Quality is not something that happens overnight. It requires a long, sustained effort. Proof that BSH has understood this

message from the outset is provided by the many awards it has received for the quality of its products and services over

the years. It is also confirmed by customer satisfaction surveys conducted by independent institutes. German consumer

research organization GfK found, for instance, that BSH is ranked No. 1 for customer service. Customer satisfaction is

without doubt the most important accolade a manufacturer can receive. But not the only one.

Last year, for instance, BSH picked up the ³German Logistics Prize´ from the country¶s logistics association. The award

went to BSH for its successful introduction of a ³Total Customer Logistics" initiative which puts the focus of customer

service logistics wholly on customer satisfaction. In recent years this concept has not only reduced costs in spare parts

logistics but at the same time achieved enhanced customer satisfaction.

In the creative, artistic sphere too, the quality of BSH products has attracted attention and numerous awards. Home

appliances must after all convince consumers with their design. Take, for instance, the induction wok from Gaggenau,

which has been singled out as one of the top 100 design classics of the third millennium. BSH carried off 32 awards in

the Household/Living category in the 2006 ³iF design awards´, picking up eight of the coveted ³red dot´ awards.

BSH also scores highly as an exemplary employer, and the magazine ³karriere´, in conjunction with Corporate

Research Foundation, ranked BSH a prestigious fourth among Germany¶s top employers. The ratings were based on

criteria such as opportunities for advancement, employee satisfaction and market position. In the categories of

employment and promotion opportunities, sustainability/business development, compensation and benefits and working

time models, BSH scored the maximum number of points.

Countless national prizes have also been won in countries where BSH operates subsidiaries. Such accolades are a

cause for justified pride, serving as clear vindication of the company¶s approach.

Documents

BSH is One of the World