Looking back at 2010, we can be filled with pride and elation. As time passed our hard work paid off. Bosch associates all around the world can be proud of the company's achievements in 2010.

Bosch Group sales revenue grew by 24 percent to 47.3 billion euros. This is the highest level of annual sales in the company's 125-year history. In 2010, Bosch also increased its research and development spending by 6 percent to roughly 3.8 billion euros. Nearly half of this R&D expenditure was invested in new products and services that conserve resources and protect the environment. Besides the global economic recovery and the steep rise in global automotive production, the steady growth in Asia – and in particular in China – drove this upswing at Bosch.

The Chinese economy achieved a strong 10 percent GDP growth in 2010. The country further improved its global economic and financial position as the world's second largest economy and largest automotive market. In addition, China strengthened its investments and increased its domestic demand.

Against this favorable market backdrop, Bosch China continued its double-digit growth and generated a total sales revenue of 37.3 billion yuan, a strong 36 percent year-on-year increase. This made China the company's third most significant market after Germany and the United States. The company invested 2.7 billion yuan in China in 2010. Some 26,200 associates are employed at 50 legal entities in this country, the largest workforce outside Germany.

In addition to its strong business performance, Bosch experienced many highlights in China in 2010. The company participated in the World Expo 2010 in Shanghai, exhibiting localized technologies and solutions in line with the Expo theme of "sustainable urbanization." The Expo gave Bosch the opportunity to show to a large audience its innovative products, which are "Invented for life." Bosch also continued to strengthen its corporate social responsibility initiatives in China. In January 2011, Bosch China was named a "China Environmental Friendly Enterprise" by the All-China Environment Federation (ACEF) and eleven Bosch subsidiaries in China were presented with the "China Environmental Friendly Unit" award also by the ACEF. 2011 will see us launch our Bosch China Charity Center, whose goal will be to focus and integrate our charitable initiatives even better than before.

2011 will be a very special year for us, since the Bosch Group is celebrating a double anniversary: the 150th anniversary of its founder's birth and its own 125th anniversary. The year 2011 will thus be one of celebrations for each Bosch associate, as well as for our trusted partners and friends. In addition, we will be moving into our new Bosch China headquarters in Shanghai. I am confident that both milestones will give a new sense of belonging to Bosch associates and further strengthen Bosch's presence in China.

I would like to take this opportunity to thank our partners for their long-term support and understanding, as well as to thank all Bosch associates for the dedication they show every day. With such support, I am confident that we have a solid foundation to meet the challenges ahead of us and shape a successful future for Bosch in China.