Bosch today 2017 today

Bosch today

2017 Bosch Group key data

Figures in millions of euros 2016 2015 Sales revenue 73,129 70,607 percentage change from previous year 3.6 44.2 percentage of sales revenue generated outside Germany 80 80 Research and development cost 6,954 6,378 as a percentage of sales revenue 9.5 9.0 Capital expenditure 4,252 4,058 as a percentage of depreciation 141 146 Associates average for the year 383,917 368,833 at December 31 389,281 374,778 Total assets 81,875 77,266 Equity 36,084 34,424 as a percentage of total assets 44 45 EBIT 3,335 4,587 as a percentage of sales revenue 4.6 6.5 Profit after tax 2,374 3,537 Unappropriated earnings (dividend of GmbH) 138 142 47 How to contact us / Five-year summary

Five-year summary of the Bosch Group Roughly 389,000 associates worldwide

Figures in millions of euros Around 440 subsidiaries and 2012 1 2013 2014 2015 2016 regional companies in approximately Sales revenue 44,703 46,068 48,951 70,607 73,129 60 countries percentage of sales revenue generated outside Germany 77 77 78 80 80 Research and development cost 2 4,442 4,543 4,959 6,378 6,954 as a percentage of sales revenue 9.9 9.9 10.1 9.0 9.5 Capital expenditure 2,714 2,539 2,585 4,058 4,252 of which in Germany 988 913 1,098 1,394 1,580 outside Germany 1,726 1,626 1,487 2,664 2,672 as a percentage of sales revenue 6.1 5.5 5.3 5.7 5.8 as a percentage of depreciation 101 126 138 146 141 Bosch Annual average number of associates 73.1 (thousands) 273 280 286 369 384 billion euros sales revenue of which in Germany 109 108 105 131 133 in figures outside Germany 164 172 181 238 251 in 2016 at Dec. 31 273 281 290 375 389

Total assets 52,611 55,725 61,924 77,266 81,875

Equity 26,900 27,686 29,541 34,424 36,084 as a percentage of total assets 51 50 48 45 44 EBIT 2,118 2,751 3,030 4,587 3,335 Profit after tax 2,304 1,251 2,637 3,537 2,374

¹ Adjusted for changes in accounting policies ² Including development work charged directly to customers Roughly 7 billion 3.3 billion euros euros spent on research EBIT in 2016 and development 120 engineering locations worldwide 1 Contents

Bosch in figures

The Bosch Group at a glance 2

Strategy and innovation 4 We are Bosch 4 On the way to becoming an IoT company 6 Agility 8

Business sectors 10 Mobility Solutions 10 Industrial Technology 12 Consumer Goods 14 Energy and Building Technology 16

Highlights of the year 18

The business year 2016 22

Sustainability 26

Robert Bosch Stiftung 28

Bosch as an employer 30

The Bosch Group in Germany 32

The Bosch Group in Europe (outside Germany) 34

The Bosch Group outside Europe 36

Milestones 38

Management 44

How to contact us / publishing details 46

Five-year summary 47 2 3 Bosch today 2017 The Bosch Group at a glance

Bosch Group The Bosch Group business sectors at a glance

Shareholders of Robert Bosch GmbH

SHAREHOLDING VOTING RIGHTS Percentage figures Percentage figures

Robert Bosch GmbH Bosch family MOBILITY INDUSTRIAL 1 7 SOLUTIONS TECHNOLOGY Bosch family Page 10 Page 12 7

Robert Bosch GmbH Industrietreuhand KG 92 93

THE BOSCH GROUP is a leading global supplier of and sales network covers nearly every country in the technology and services. It employs roughly 389,000 world. The basis for the company’s future growth associates worldwide (as of December 31, 2016). is its innovative strength. At 120 locations across The company generated sales of 73.1 billion euros the globe, Bosch employs some 59,000 associates in 2016. Its operations are divided into four business in research and development. sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The company was set up in Stuttgart in 1886 by As a leading IoT company, Bosch offers innovative Robert Bosch (1861–1942) as “Workshop for Pre- solutions for smart homes, smart cities, connected cision Mechanics and Electrical Engineering.” The mobility, and connected manufacturing. It uses its special ownership structure of Robert Bosch GmbH CONSUMER ENERGY AND expertise in sensor technology, software, and services, guarantees the entrepreneurial freedom of the Bosch GOODS BUILDING as well as its own IoT cloud, to offer its customers Group, making it possible for the company to plan Page 14 connected, cross-domain solutions from a single over the long term and to undertake significant up- TECHNOLOGY source. The Bosch Group’s strategic objective is to front investments in the safeguarding of its future. Page 16 create solutions for a connected life. Bosch improves Ninety-two percent of the share capital of Robert quality of life worldwide with products and services Bosch GmbH is held by Robert Bosch Stiftung GmbH, that are innovative and spark enthusiasm. In short, a charitable foundation. The majority of voting rights Bosch creates technology that is “Invented for life.” are held by Robert Bosch Industrietreuhand KG, Other businesses not allocated The Bosch Group comprises Robert Bosch GmbH and an industrial trust. The entrepreneurial ownership to business sectors: its roughly 440 subsidiaries and regional companies functions are carried out by the trust. The remaining Bosch Healthcare Solutions GmbH in some 60 countries. Including sales and service shares are held by the Bosch family and by Robert partners, Bosch’s global manufacturing, engineering, Bosch GmbH. Bosch Software Innovations GmbH Robert Bosch Start-up GmbH Robert Bosch Venture Capital GmbH

4 5 Bosch today 2017 Strategy and innovation

WWW.WEAREBOSCH.COM We are Bosch

In the spirit of Robert Bosch, we aim to secure our company’s future by ensuring its strong and meaningful development and preserving its financial independence.

Invented for life: we want our products to spark enthusiasm, improve quality of life, Our objective – what we want to achieve and help conserve natural resources.

Our motivation – what drives us

Our strategic focal points – what will help us succeed

Focusing on customers | Shaping change | Striving for excellence

Our strengths – what we do well

Bosch culture | Innovation | Outstanding quality | Global presence

Our values – what we build on

Future and Responsibility and Initiative and Openness and Fairness Reliability, credibility, Diversity result focus sustainability determination trust legality 6 7 Bosch today 2017 Strategy and innovation On the way to becoming We operate on all three levels of connectivity: an IoT company intelligent and connected devices, software platforms, and applications and services.

Bosch will use Our expertise covers connectivity the entire IoT Having our own IoT value chain from cloud gives us greater to further develop its sensors to services. speed and flexibility traditional business. as well as enhancing data security.

As one of the world’s leading companies, our goal is to We already connect more than 5 million devices. play a major part in shaping Our goal is to connect around 25 million devices by 2019. the internet of things (IoT).

We are continuing to refine our Bosch IoT Suite to offer microser- We are opening up vices that can be used as completely new flexible modules, and business opening the platform opportunities. up to third parties.

As a globally leading supplier of MEMS For more about our strategy, read the group sensors we have a USP. management report in the 2016 annual report at annual-report.bosch.com 8 9 Bosch today 2017 Strategy and innovation Agility

Times are changing, and with this change comes the need for new forms of collaboration. It’s up to everyone to think and work outside the box. In other words, it’s all about agility. The company’s many initiatives and successful start-ups are a visible sign of its agility. To accompany the publication of our annual report for 2016, Bosch is profiling these activities in an exclusively online magazine.

New worlds How Bosch develops completely new products and services

New perspectives How Bosch improves existing solutions

New connections How Bosch creates networks internally and The stories illustrating Bosch externally strategy are available online at annual-report.bosch.com 10 11 Bosch today 2017 Business sectors

WWW.BOSCH-MOBILITY-SOLUTIONS.COM Mobility Solutions

Gasoline Systems Diesel Systems Chassis Systems Control Electrical Drives Starter Motors and Generators Car Multimedia Automotive Electronics Automotive Aftermarket Automotive Steering

Other businesses: Bosch Engineering GmbH Commercial Vehicles and Offroad Applications eBike Systems ETAS GmbH Two-Wheeler and Powersports Development of sales revenue 2015–2016 Bosch Group

SALES REVENUE – SECTORAL COMPARISON Figures in billions of euros The Mobility Solutions business sector, one It offers its customers integrated mobility solu- of the world’s biggest automotive suppliers, tions that allow cars to interact with other means accounts for 60 percent of total sales. Its main of transportation such as bicycles, trains, and 41.7 43.9 6.6 6.3 17.1 17.6 5.1 5.2 areas of activity are injection technology and buses. Bosch has been responsible for impor- powertrain peripherals for internal-combustion tant automotive innovations, such as electronic engines, diverse solutions for powertrain elec- engine management, the ESP® anti-skid system, trification, steering systems, safety and driver- common-rail diesel technology, and the e-axle, assistance systems, technology for user-friendly the electric axle drive system presented at the infotainment as well as vehicle-to-vehicle and start of 2017. The new drive integrates trans- vehicle-to-infrastructure communication, repair- mission, electric motor, and power electronics shop concepts, and technology and services for in one compact housing, making the powertrain the automotive aftermarket. The sector combines significantly less expensive, more compact, and Mobility Industrial Consumer Energy and the group’s expertise in three mobility domains more efficient. Solutions Technology Goods Building – automation, electrification, and connectivity. Technology 12 13 Bosch today 2017 Business sectors

WWW.BOSCHREXROTH.COM WWW.BOSCHPACKAGING.COM Industrial Technology

Drive and Control Technology 1 Packaging Technology

Other businesses: Bosch Connected Industry

1 AG (100% Bosch-owned)

Development of sales revenue 2015–2016 Bosch Group

SALES REVENUE – REGIONAL COMPARISON Figures in billions of euros

37.3 38.6 14.1 13.7 19.2 20.8

In 2016, the Industrial Technology business sec- mercial vehicles. Drive and Control Technology tor generated roughly 9 percent of total Bosch also offers a comprehensive range of services, is Group sales. The business sector includes the involved in large-scale international projects, and Drive and Control Technology division, a drive is a leading provider in the area of connected man- and control technology specialist which is one ufacturing. The Packaging Technology division is of the leading providers worldwide. Its portfolio one of the world’s leading providers of process includes customized drive, control, and actuator and packaging solutions for the pharmaceuticals, Europe Americas Asia Pacific solutions for factory automation, plant construc- foodstuffs, and confectionery industries, as well (Including other coun- tion and engineering, mobile machinery, and com- as selected segments of the beverages industry. tries; including Africa) 14 15 Bosch today 2017 Business sectors

WWW.BOSCH-PT.COM WWW.BSH-GROUP.COM Consumer Goods

Power Tools BSH Hausgeräte GmbH

Associates Bosch Group 2016, as per Dec. 31, 2016

BY BUSINESS SECTOR

Mobility Industrial Technology Solutions 38,117 226,856 10% The Consumer Goods business sector contribut- GmbH. As one of the leading global manufactur- Consumer Goods 58% ed some 24 percent of total Bosch Group sales in ers of household appliances, it offers the entire 20% 76,131 2016. It includes the Power Tools division, one of range of modern and energy-efficient appliances, the world’s leading suppliers of power tools and which are increasingly also web-enabled. Its 8% power-tool accessories, as well as of measuring product portfolio ranges from washing machines 4% Energy and and gardening tools. One of the division’s focal and tumble dryers through refrigerators and Building Technology points is convenient, high-performance cordless freezers, stoves and ovens, and dishwashers, to 30,293 equipment, and increasingly also web-enabled small appliances such as vacuum cleaners, coffee equipment and services. The Consumer Goods makers, and food processors. Other activities 1 business sector also includes BSH Hausgeräte 1 Corporate functions and research 17,884 16 17 Bosch today 2017 Business sectors

WWW.BOSCH-ENERGY.COM Energy and Building

Technology Security Systems Thermotechnology Bosch Global Service Solutions

Other businesses: Robert Bosch Smart Home GmbH

Associates Bosch Group 2016, as per Dec. 31, 2016

BY REGION

In 2016, the Energy and Building Technology busi- division, Bosch is a leading manufacturer of ness sector generated roughly 7 percent of total energy-efficient heating products and hot-water Germany Europe Bosch Group sales. Its Security Systems division solutions in Europe. With a view to functions 133,974 (Excluding Germany) 26 % offers innovative products and solutions relating such as remote diagnosis, web-enabled devices 102,680 to video surveillance, intrusion-detection, fire- are becoming increasingly important. Bosch 35 % detection, and voice-alarm systems, access-con- Global Service Solutions is a leading international 11 % trol and building management systems, and provider of business process outsourcing for Americas 42,627 professional audio and conference systems. complex business processes and services. Within 28 % Bosch also operates in selected countries via Bosch, it also provides shared-service functions. the Integrator Business operating unit (installa- Robert Bosch Smart Home GmbH combines the tion business), which offers solutions and serv- company’s smart-home activities, and offers Asia Pacific ices for building security, energy efficiency, and products and services for smart homes from a (Including other countries) building automation. With its Thermotechnology single source. 110,000 18 19 Bosch today 2017 Highlights 2016

Highlights 2016 04 05

April 8 – Stuttgart, Germany May 2 – Lund, Sweden Bridge-builder for Bosch Bosch opens innovation 01 02 incubator in Sweden In his 40 years with Bosch, Tilman Todenhöfer used his diplomatic skills to smooth many The company’s first engineering location in January 6 – Las Vegas, USA February 22 – Reutlingen, Germany paths, building bridges within the company Scandinavia has 50 Bosch experts on board. and for the company. He now steps down When cars help out in the kitchen Vital sensor hubs for wearables from the supervisory board and Robert Bosch Industrietreuhand. CES Consumer Electronics Show: Bosch Bosch Sensortec launches the first generation presents the future of mobility and homes. of sensor-hub products with optimized vital 06 parameter measurement.

June 9 – Lisbon, Portugal 2016 European Inventor Award goes to the father of ESP®

The recognizes the retired Bosch associate Anton van Zanten for his life’s work.

April 9 – Changsha, China German Foreign Minister Steinmeier visits Bosch plant in China January 6 – Las Vegas, USA At the Bosch plant in the central Chinese CES 2016 Innovation Award 03 provincial capital of Changsha, the focus of the visit is on intelligent production. Winner in the “In-Vehicle Audio/Video” cat- egory: a touchscreen with haptic feedback March 9 – Berlin, Germany June 22 – Tel Aviv, Israel developed by Bosch. April 13 – Abstatt, Germany Bosch Connected World Bosch establishes research office Fourth global meeting of Bosch Bosch launches its own cloud for web-based in Tel Aviv services. employee representatives Focus on collaboration with scientific institu- 67 delegates, 37 countries, 17 languages: the tions and start-ups in fields such as machine global meeting of Bosch employee represent- learning, robotics, cybersecurity, connectivity, atives is becoming ever more international. and the internet of things. 20 21 Bosch today 2017 Highlights 2016

07 09 10 November 10 – Waiblingen, Germany Bosch is becoming a part of everyday healthcare July 18 – Stuttgart, Germany September 21 – Walldorf and Stuttgart, October 6 – Stuttgart, Germany Germany Vivatmo me is the first breath analysis device Bosch forms an alliance Sensors and software bring that allows asthmatics a quick and no-fuss against cancer Technology partner for more Robert Bosch’s workbench from way of measuring the severity of airway customer benefit 1887 into the era of connected inflammation. The Robert Bosch Hospital, the Robert Bosch manufacturing Stiftung, and the Bosch Group join forces to Bosch and SAP form a strategic partnership fight cancer, launching a number of related for the internet of things and connected Bosch’s new internet of things gateway makes initiatives. manufacturing. the benefits of connected manufacturing available to factories using older machinery.

September 21 – Hannover, Germany 66th IAA Commercial 08 Vehicles 2016 Bosch presents its solutions and ideas for October 12 – Abstatt and Rülzheim, Germany the connected, automated, and electrified August 3 – Berlin, Germany commercial vehicles of tomorrow. Bosch plans acquisition of ITK Bosch’s first shared mobility Engineering AG platform September 30 – Würzburg, Germany With a workforce of 800, ITK Engineering is An e-scooter sharing service launches in Leadership Award Connected a leading supplier of systems and software Berlin under the new Coup brand. World 2016 development in multiple sectors. 12 Vogel Business Media honors the Bosch CEO Volkmar Denner for his exceptional dedica- December 15 – Stuttgart, Germany tion and achievements in the area of digital 11 connectivity. Cyber Valley: Bosch finances November 7 – Clifton, USA, and Stuttgart, an endowed chair for machine Germany learning

Acquisition of Skyline A first for Germany: Bosch joins forces with Automation partners from the political, industrial, and scientific arenas to create Cyber Valley, which Bosch acquires specialist in building automa- will drive forward research into artificial tion and strengthens its international business intelligence in Baden-Württemberg. with integrated services for non-residential buildings. 22 23 Bosch today 2017 The business year 2016 The business year 2016

Development of sales revenue Development of EBIT Bosch Group 2012–2016 Bosch Group 2012–2016

Figures in millions of euros Figures in millions of euros

44,703 46,068 48,951 70,607 73,129 2,118 2,751 3,030 4,587 3,335

12 13 14 15 16 12 13 14 15 16

In the context of an only moderate pace of growth Performance varied by region and business sec- In many respects, result is affected by upfront 9.5 percent, compared with 9.0 percent in the in the global economy, the Bosch Group grew well tor. In regional terms, the pace of business picked investments relating to the transformation that previous year. in 2016, recording a number of success stories up considerably in Asia Pacific over the course of lies ahead. EBIT (earnings before taxes and in its various business sectors. Despite a slow the year. Growth in Europe was also encouraging. before financial result) from operations totaled There was also considerable expenditure on economic environment and significant negative With regard to the business sectors, Mobility 4.3 billion euros in 2016, while the operating restructuring and adjustment measures. This is exchange-rate effects, the target growth range of Solutions and Consumer Goods recorded the margin was 5.8 percent. Both figures were thus because part of the upfront investments goes 3 to 5 percent for sales was achieved, and even strongest growth. down year on year. into aligning the company’s traditional business exceeded slightly after adjusting for exchange with changing requirements and markets. In rates. Sales increased in 2016 by 3.6 percent Above all, the upfront investments included 2016, Bosch disclosed EBIT of 3.3 billion euros, in nominal terms to 73.1 billion euros, a rise of increased research and development cost and compared with 4.6 billion euros in the previous 5.5 percent allowing for exchange-rate effects. increased depreciation on property, plant, year. The main difference between this figure and and equipment as a result of greater capital EBIT from operations is additional depreciation in expenditure. Research and development cost connection with the complete acquisition of the reached approximately 7 billion euros in 2016, former Automotive Steering and BSH Hausgeräte compared with 6.4 billion euros in the previous GmbH joint ventures in 2015. year. Research and development intensity was 24 25 Bosch today 2017 The business year 2016

Research and development cost 1 Research and development cost 1 Bosch Group 2012–2016 Bosch Group 2012–2016

TOTAL EXPENDITURE TOTAL EXPENDITURE Figures in millions of euros As a percentage of sales revenue

4,442 4,543 4,959 6,378 6,954 9.9 9.9 10.1 9.0 9.5

12 13 14 15 16 12 13 14 15 16

1 Including development work charged directly to customers 1 Including development work charged directly to customers

Bosch is energetically tackling the transformation The total number of Bosch Group associates rose Outlook for 2017 required in light of the technological changes by around 14,500 to approximately 389,300 at brought about by the internet of things. It is the end of 2016, compared with 374,800 at the While there are signs that global economic focusing on increasing connectivity in mobility end of 2015. growth will be slightly higher in 2017 than in the and industry, consumer goods, and building and previous year, the political and economic risks energy technology. Its largest business sector, In view of far-reaching technological changes in are considerable. Against this backdrop, the Mobility Solutions, is also facing significant chal- areas such as powertrain technology and with Bosch Group expects sales growth to be on a par lenges arising from the future electrification of the respect to IT expertise, providing associates with the previous year. Yet considerable upfront powertrain. The Bosch Group aims to become a with further training is an important task. Bosch investments relating to the transformation that leading supplier for the internet of things and of invested around 250 million euros in continuing lies ahead will again have to be made in 2017. pioneering mobility solutions. professional development in 2016 alone. Occu- Nonetheless, it is planned to improve result pational training and continuing professional compared with 2016. development have traditionally been regarded as very important at Bosch. Worldwide, over 7,300 young people completed apprenticeship schemes at Bosch in 2016. 26 27 Bosch today 2017 Sustainability

CSR.BOSCH.COM

Progress toward the 30.6% Bosch-wide sustainability reduction in CO2 emissions Sustainability targets in 2016 (relative to value created in-house) over 2007

Target: 35% by 2020 1.5% reduction in waste (relative For the Bosch Group, sustainability means secur- make up one-fifth of Bosch executives, and the to value created in-house) ing the company’s long-term success while at the number of occupational accidents should fall to over 2015 same time protecting the natural resources on 1.7 per million hours worked. which present and future generations depend. Target: 6% by In line with its “Invented for life” ethos, Bosch Bosch reports progress toward these goals to 3.9% 2018 pursues the aim of making renewable energy even the UN Global Compact, the world’s largest reduction in water consumption (relative to more cost effective and mobility even safer and initiative for responsible corporate governance. value created in-house) more efficient. On a more general level, the aim In its annual sustainability report, the company over 2015 is to develop eco-friendly, resource-conserving describes how it adheres to the international Target: products. At Bosch, therefore, ecology is a driver principles relating to human rights, labor stand- 6% by Since 2010 2018 of innovation: last year, for example, more than ards, environmental protection, and the fight 614 50 percent of the research and development against corruption. In addition, Bosch has been environmental and health budget went into products in the “environment concerning itself with the UN’s sustainable devel- and safety audits carried and safety” portfolio, which generated some out at suppliers 40 percent of the company’s sales in 2016. Bosch opment goals (SDGs), which came into force in early 2016. The UN aims to have achieved these Target: sees huge opportunities in the areas of connec- 1,000 by tivity, electrification, and energy efficiency. At the goals by 2030. With their mission of upholding 2020 same time, the company systematically applies human dignity, promoting progress, and keep- sustainability management to counter risks aris- ing the environment intact, these goals are an ing from climate change and resource scarcity. important compass for Bosch. They make it easier to see activities from the perspective For Bosch, endeavors to balance out economic, of their social relevance. The focus is on activ- 2.7 ities for good health and well-being (SDG 3), accidents per million ecological, and social concerns result in four hours worked in 2016 fields of sustainability-related action: environ- sustainable cities and communities (SDG 11), ment, products, associates, and society. Within and climate action (SDG 13). In addition, Bosch’s Target: these fields, the company has set five specific social commitment improves factors such as 1.7 by targets. Relative to its own value creation, Bosch access to quality education (SDG 4) and pro- 2020 wants to reduce its waste volumes and water motes peace and justice (SDG 16). The most consumption by 6 percent by 2018, and to cut recent example of this is the company’s support

its CO2 emissions (from their 2007 level) by for refugees in Europe. 35 percent by 2020. 15.4% In the period between 2010 and 2020, moreover, women executives in 2016 it is planned to carry out a total of 1,000 envi- ronmental and health and safety audits at our Target: 20% by suppliers. By 2020, furthermore, women should 2020 28 29 Bosch today 2017 Robert Bosch Stiftung

Total project grants WWW.BOSCH-STIFTUNG.DE 2016 109.1m 1964–2016 1,486m

Robert Bosch Figures in millions of euros Healthcare 6.7 Stiftung Science 7.2

Society 9.2

The expert commission convened by the Stiftung to reconceptualize refugee policy formulated 99 reform Education 7.9 proposals, which were presented to and discussed with the German federal president at a joint forum.

International relations: Americas and Asia 9.0 A further major Stiftung project is the Deutscher Schulpreis (German school award), which is pre- sented annually to the best schools in Germany.

Over the past ten years, the award has given rise to International relations: a movement for educational excellence. Europe and its neighbors 14.2

Since it was established in 1964, Robert Bosch The following institutions also belong Projects by the Berlin liaison office to the Stiftung: to promote international relations 5.7 Stiftung has been carrying on the company • Robert Bosch Hospital founder’s public welfare endeavors. It anticipates • Dr. Margarete Fischer-Bosch Institute for Clinical Projects of the management board 0.3 Projects of the communications department 0.1 emergent social issues and formulates exemplary Pharmacology • Institute for the History of Medicine of Robert solutions. In addition, it develops and carries out Bosch Stiftung Research at institutes 1 and the projects of its own. The Stiftung also supports • Deutsche Schulakademie Robert Bosch Hospital 14.1 third-party projects that fit with its own objec- • UWC Robert Bosch College • Robert Bosch Centrum für Tumorerkrankungen tives. It finances its work from the dividend it • International Alumni Center iac Berlin receives as a shareholder in Robert Bosch GmbH. Dependent foundations within the Stiftung: • Otto und Edith Mühlschlegel Stiftung (aging) Robert Bosch Stiftung is active in the areas of • Hans-Walz-Stiftung (research into complementary healthcare, science, society, education, and medicine) • DVA-Stiftung (Franco-German dialogue) international relations. To be even better pre- • Rochus und Beatrice Mummert Stiftung Capital expenditure for the pared for the major challenges of our time, the (international promotion of young talent) Robert Bosch Hospital 27.1 Stiftung redesigned its strategy in 2016, and now focuses its work on three main issues: “migration, integration, and participation,” “social cohesion in Germany and Europe,” and “viable Welcome to the school of living environments.” the year 2016! These two Robert Bosch College UWC GmbH 1.2 pupils attend the “Auf der Die Deutsche Schulakademie gGmbH 3.1 Süsteresch” elementary school Funding for the Otto und The Stiftung’s work in the area of mass migration in Schüttorf, north Germany. Edith Mühlschlegel Stiftung 1.2 Their school won the German is an example of its focus on major social issues. Dependent foundations 2.1 school award. 1 Dr. Margarete Fischer-Bosch Institute for Clinical Pharmacology, Institute for the History of Medicine of Robert Bosch Stiftung, Robert Bosch Centrum für Tumorerkrankungen 30 31 Bosch today 2017 Bosch as an employer

WWW.BOSCH-CAREER.COM

Balance your life Bosch as an Make your job match your lifestyle. We provide you with individual support.

You know that there is more to life than just work. That’s why we employer actively support you in finding a healthy balance between your private and professional lives. Join us, and let life happen.

Walk the talk Wherever you are – our team spirit is with you.

Robert Bosch founded our company over 130 years ago, and Why work for Bosch? we still live by the values he embodied today. Discover a culture that is based on respect and responsibility, and carry our values Here is why. further.

Make your mark Discover new directions Give your job a meaning. Your way might change – With solutions “Invented for life”. we will stay by your side.

At Bosch, we are committed to developing innovative, beneficial, We welcome change and encourage you to switch between and fascinating products and services. Enhance with us the qua- positions and working fields. Tell us about your goals, and let us lity of life worldwide, and leave a lasting mark on the world. put them into practice.

Shape tomorrow’s world Be yourself The future offers many opportunities. Your diversity makes us special. Be among the first to take advantage of them. Enrich us with your own unique personality.

With regard to global megatrends and new technical capabilities, Everyone is different. We appreciate your individuality and belie- we create solutions for a connected life. And there is much more ve that diversity is an asset for our company. Show us your way potential for us to tap. Create your vision of the future with us, of thinking, and let us drive great innovations together. and witness how your ideas shape tomorrow’s world.

Pay it forward Find your place We love our business and our environment. You know how you can work best. Let’s save them both for future generations. We offer you the conditions needed. At the core of our DNA is social responsibility. That’s why, with One global company, many ways of working: From start-ups to us, you can achieve business success and support social and established corporate structures, we offer a wide range of environmental projects at the same time. working environments. Join in, and find the right place for you. 32 33 Bosch today 2017 The Bosch Group in Germany The Bosch Group in Germany Hamburg

Bremen

Corporate headquarters Ober-Ramstadt, Remshalden, Schopfheim, Nauen near Stuttgart Schweinfurt, Stuttgart, Viersen, Volkach, Berlin Hannover Waiblingen Braunschweig Hildesheim Magdeburg Research and development locations Wettringen Salzgitter Abstatt, Berlin, Bretten, Bühl/Bühlertal, Manufacturing operations – Consumer Goods Crailsheim, Dillingen, Ditzingen, Elchingen, Bad Neustadt, Bretten, Dillingen, Giengen, Willershausen Bochum Erbach, Giengen, Grasbrunn, Hildesheim, Leinfelden, Murrhardt, Nauen, Ravensburg, Essen Göttingen Horb, Leinfelden, Leonberg, Lohr, Lollar, Sebnitz, Traunreut Viersen Ratingen Leipzig Plochingen, Regensburg, Renningen, Düsseldorf Dresden Sebnitz Reutlingen, Schwäbisch Gmünd, Manufacturing operations – Energy and Cologne Breidenbach Eibelshausen Eisenach Ichtershausen Chemnitz Schwieberdingen, Stuttgart, Traunreut, Lollar Building Technology Wetzlar Arnstadt Waiblingen, Wernau Eibelshausen, Gunzenhausen, Lollar, Straubing, Wernau, Wettringen Bad Neustadt Manufacturing locations – Mobility Solutions Frankfurt am Main Ansbach, Arnstadt, Bamberg, Berlin, Sales and service centers Hainburg Schweinfurt Lohr Bietigheim, Blaichach/Immenstadt, Berlin, Bochum, Braunschweig, Cologne, Ober-Ramstadt Augsfeld Bamberg Volkach Breidenbach, Bremen, Bühl/Bühlertal, Ditzingen, Düsseldorf, Essen, Fellbach, Erbach Fürth Eisenach, Göttingen, Hildesheim, Homburg, Frankfurt am Main, Fürth, Garching, Nuremberg Homburg Ketsch Kusterdingen, , Neunkirchen, Grasbrunn, Hainburg, Hamburg, Hannover, Neunkirchen Abstatt Ansbach Crailsheim Nuremberg, Plochingen, Pollenfeld, Ichtershausen, Karlsruhe, Leipzig, Magdeburg, Bretten Bietigheim Gunzenhausen Karlsruhe Reutlingen, Rutesheim, Salzgitter, Schwäbisch Munich, Nuremberg, Pollenfeld, Ratingen, Murrhardt Pollenfeld Regensburg Schwäbisch Gmünd Gmünd, Stuttgart, Waiblingen Stuttgart, Wetzlar, Willershausen Straubing Bühl/Bühlertal Giengen Dillingen Kusterdingen Reutlingen Elchingen Technical sales offices for automotive Bosch Software Innovations GmbH Horb Königsbrunn Garching original equipment Berlin, Immenstaad, Waiblingen Munich Grasbrunn Berlin, Braunschweig, Cologne, Frankfurt am Traunreut

Main, Munich, Waiblingen Associates in Germany: Schopfheim Ravensburg 133,974 Blaichach/Immenstadt Immenstaad Manufacturing operations – Industrial Schwieberdingen Technology Ditzingen Fellbach/ Rutesheim Waiblingen (as of December 31, 2016) Gerlingen Augsfeld, Chemnitz, Crailsheim, Dresden, Leonberg Remshalden Elchingen, Erbach, Fellbach, Homburg, Horb, This list includes locations Stuttgart with 100 or more associates, including the locations Renningen Plochingen Ketsch, Königsbrunn, Lohr, Nuremberg, Leinfelden of non-consolidated subsidiaries. Wernau 34 35 Bosch today 2017 The Bosch Group in Europe (outside Germany)

Poland 5,140 associates Sweden 1,496 associates Manufacture of automotive technology and Manufacture of industrial technology and heating The Bosch Group household appliances; engineering; sales; systems; sales; locations: Mellansel, Stockholm, locations: Łódź, Rzeszów, Warsaw, Wrocław Tranås

Portugal 3,967 associates Switzerland 3,240 associates in Europe (outside Manufacture of automotive technology, heating Manufacture of industrial technology and power systems, and security systems; engineering; tools; engineering; sales; locations: Beringen, communications services; sales; locations: Buttikon, Frauenfeld, Geroldswil, Solothurn, St. Aveiro, Braga, Lisbon, Ovar Niklaus Germany) Romania 4,816 associates Turkey 16,670 associates Manufacture of automotive technology Manufacture of automotive technology, industrial and industrial technology; engineering; technology, and heating systems; communications services; sales; locations: Blaj, engineering; sales; locations: Bursa, Çerkezköy, Austria 3,619 associates Marignier, Mondeville, Moulins, Paris, Rodez, Bucharest, Cluj, Timişoara İstanbul, Manisa Manufacture of automotive technology and Saint-Ouen, St-Thégonnec, Vendôme, Vénissieux industrial technology; engineering; sales; Russian Federation 3,742 associates Ukraine 369 associates locations: Hallein, Linz, Pasching, St. Michael ob Greece 530 associates Manufacture of automotive technology, Manufacture of automotive technology; sales; Bleiburg, Ternitz, Vienna Manufacture of household appliances; sales; household appliances, and power tools; locations: Kiev, Krakovets location: Athens (Koropi) communications services; sales; locations: Belgium 1,644 associates Engels, Kazan, Khimki, Moscow, Samara, St. United Kingdom 5,290 associates Manufacture of automotive technology; sales; Hungary 14,316 associates Petersburg Manufacture of automotive technology, industrial locations: Aartselaar, , Tienen Manufacture of automotive technology, industrial technology, power tools, and heating systems; technology, and power tools; engineering; sales; Serbia 1,039 associates communications services; sales; locations: Bulgaria 153 associates locations: , Eger, Hatvan, Maklár, Manufacture of automotive technology; sales; Alfreton, Cirencester, Clay Cross, Denham, Sales; engineering; location: Sofia Miskolc locations: Belgrade, Pećinci Glenrothes, Greetland, Liverpool, Milton Keynes, St. Neots, Stockport, Stowmarket, Worcester Czech Republic 8,513 associates Italy 5,900 associates Slovakia 1,096 associates Manufacture of automotive technology, industrial Manufacture of automotive technology, industrial Manufacture of automotive technology and technology, and heating systems; engineering; technology, and power tools; engineering; sales; household appliances; engineering; sales; sales; locations: Albrechtice, Brno, České locations: Bari, Cernusco, Cinisello Balsamo, locations: Bernolákova; Michalovce Budějovice, Jihlava, Mikulov, Prague Correggio, Fagagna, Milan, Modugno, Nonantola, Offanengo, Pavullo nel Frignano, Turin, Udine, Slovenia 1,377 associates Denmark 715 associates Vezzano Manufacture of industrial technology and Manufacture of automotive technology; sales; household appliances; engineering; sales; locations: Ballerup, Esbjerg Netherlands 3,837 associates locations: Nazarje, Škofja Loka Manufacture of automotive technology, Finland 220 associates industrial technology, heating systems, and Spain 8,896 associates Sales; location: Vantaa security systems; engineering; sales; locations: Manufacture of automotive technology, household (as of December 31, 2016) Amsterdam, Boxtel, Breda, Deventer, Eindhoven, appliances, and industrial technology; engineering; This list includes countries and locations with 100 or more associates, including the locations of non- France 7,651 associates Hoevelaken, Schiedam, Tilburg, Weert communications services; sales; locations: consolidated subsidiaries. Manufacture of automotive technology, industrial Aranjuez, Barcelona, Castellet, Esquíroz, La Cartuja, Lliçà d‘Amunt, Madrid, Montañana, San Sebastián, Further companies operate in Belarus, Croatia, technology, and heating systems; engineering; Norway 208 associates Estonia, Georgia, Ireland, Latvia, Lithuania, and communications services; sales; locations: Sales; location: Ski Santander, Treto, Vigo, Vitoria, Zaragoza Luxembourg. Drancy, Freyming, La Ferté-Bernard, Lipsheim, 36 37 Bosch today 2017 The Bosch Group outside Europe The Bosch Group

Malaysia 3,020 associates United States 18,493 associates outside Europe Manufacture of automotive technology and Manufacture of automotive technology, power tools; engineering; sales; locations: industrial technology, power tools, household Penang, Petaling Jaya appliances, heating systems, and security systems; engineering; sales; locations: Mexico 14,288 associates 75 locations, including Albion/IN, Anderson/ Manufacture of automotive technology and SC, Bethlehem/PA, Broadview/IL, Charleston/ Argentina 246 associates Colombia 100 associates power tools; engineering; sales; locations: SC, Charlotte/NC, Fairport/NY, Farmington Sales; location: Buenos Aires Sales; location: Bogotá Aguascalientes, Guadalajara, Hermosillo, Hills/MI, Florence/KY, Fort Lauderdale/ Juárez, Lerma, Mexicali, Mexico City, San Luis FL, Fountain Inn/SC, Irvine/CA, Kentwood/ Australia 1,276 associates Costa Rica 200 associates Potosí, Toluca MI, La Follette/TN, Mount Prospect/IL, New Manufacture of automotive technology and Communications services; location: Heredia Bern/NC, New Richmond/WI, Owatonna/ power tools; engineering; sales; locations: Morocco 131 associates MI, Phoenix/AZ, Palo Alto/CA, Plymouth/MI, Clayton, Melbourne, Sydney India 32,977 associates Sales; location: Casablanca Warren/MI Manufacture of automotive technology, Brazil 8,507 associates industrial technology, power tools, and Peru 718 associates Manufacture of Vietnam 3,028 associates Manufacture of automotive technology, household appliances; software development; household appliances; sales; location: Callao Manufacture of automotive technology and industrial technology, heating systems, engineering; communications services; sales; creation of software; engineering, sales; security systems, and power tools; locations: Ahmedabad, Bengaluru, Bidadi, Philippines 530 associates location: Ho Chi Minh City engineering; communications services; Bommanahalli, Chakan, Chennai, Coimbatore, Communications services; sales; location: sales; locations: Alphaville, Aratú, Atibaia- Gangaikondan, Hyderabad, Jaipur, Manila SB, Campinas, Curitiba, Itupeva, Joinville, Koramangala, Naganathapura, Nalagarh, Pomerode, São Paulo Nashik, Pune, Verna Singapore 919 associates Sales; location: Singapore Canada 601 associates Indonesia 222 associates Sales; locations: Mississauga, Welland Manufacture of automotive technology; sales; South Africa 1,331 associates location: Jakarta Manufacture of automotive technology; sales; Chile 166 associates locations: Brits, Kempton Park, Midrand Sales; location: Santiago de Chile Japan 6,866 associates Manufacture of automotive technology and Taiwan 869 associates China 59,563 associates industrial technology; engineering; sales; Manufacture of automotive technology; Manufacture of automotive technology, locations: Higashi-Matsuyama, Izumozaki, engineering; sales; locations: Pingzhen, Taipei industrial technology, power tools, household Misato, Musashi, Odawara, Osaka, Ota, appliances, heating systems, and security Shibuya, Shiki, Takasaki, Tochigi, Tsuchiura, Thailand 1,509 associates systems; engineering; communications Yokohama, Yorii Manufacture of automotive technology and (as of December 31, 2016) This list includes countries and locations with 100 services; sales; locations: Beijing, Changchun, industrial technology; sales; locations: Amata or more associates, including the locations of non- Changsha, Chengdu, Chuzhou, Dongguan, Korea 2,490 associates City, Bangkok, Chonburi, Rayong consolidated subsidiaries. Guangzhou, Hangzhou, Hong Kong, Jinan, Manufacture of automotive technology; Further companies operate in Liuzhou, Nanjing, Ningbo, Qingdao, Shanghai, engineering; sales; locations: Busan, Deagu, United Arab Emirates Bangladesh, Botswana, Cambodia, Ecuador, Egypt, Ghana, Iran, Israel, Kazakhstan, Kenya, Mozambique, Shenzhen, Suzhou, Wuhan, Wuhu, Wujin, Daejeon, Sejong, Yongin 128 associates Namibia, New Zealand, Nigeria, Panama, Sri Lanka, Wuxi, Xi‘an, Yantai, Zhuhai, Zibo Sales; location: Dubai Tunisia, Uruguay, Venezuela, and Zambia.

38 39 Bosch today 2017 Milestones

1913 Milestones At the main plant in Stuttgart, establishment of an apprentice training department with a dedicated workshop

Market launch of the Bosch automotive in company history lighting system 1861

Robert Bosch is born in Albeck near Ulm on 1918 September 23 Gottlob Honold designs the new Bosch logo – the “armature in a circle” 1886 Establishment of the company: opening 1921 of the Workshop for Precision Mechanics The first Bosch Service repair and Electrical Engineering in Stuttgart on shop is opened in Hamburg November 15

1897 1927 Start of production of Bosch injection pumps First successful installation of the Bosch low- and nozzles for diesel engines voltage magneto ignition device in a motor vehicle

1898 1928 Market launch of the Forfex hair trimmer, the First Bosch sales office outside first Bosch power tool Germany opens in the United Kingdom 1932 1902 First power drill and Delivery of the first Bosch hammer high-voltage magneto ignition system with Bosch spark plugs 1932

Acquisition of heating systems business of 1905 Junkers & Co. GmbH in Dessau

First Bosch manufacturing site outside Market launch of the first mass-produced car Germany opens in Paris radio in Europe

1912 1933

Start of production in Bosch’s first U.S. plant, Launch of the Bosch refrigerator in Springfield, MA 40 41 Bosch today 2017 Milestones

1940

Opening of the Robert Bosch Hospital 1978 Start of production of ABS, 1942 the electronically controlled antilock

Robert Bosch dies in Stuttgart on March 12 braking system

1951

Start of production of gasoline injection systems for passenger cars 1979

1963 Start of production of the electronic engine management system Acquisition of Erich Wetzel Verpackungsmaschinen GmbH, entry into packaging technology 1986

1964 Start of production of the TCS traction control system The not-for-profit organization Vermögens- verwaltung Bosch (from 1969 Robert Bosch Stiftung GmbH) acquires a majority stake in Robert Bosch GmbH 1989

Launch of TravelPilot IDS, the first independent 1967 vehicle navigation system in Europe

Establishment of Bosch-Siemens Haus- 1991 geräte GmbH (known after 1998 as BSH Bosch und Siemens Hausgeräte GmbH and Start of production of Motronic with controller since 2015 as BSH Hausgeräte GmbH) area network (CAN)

1967 1995

Start of production of the electroni- Start of large-scale production of MEMS cally controlled gasoline injection system sensors (micro-electro-mechanical systems)

Start of production of ESP®, the world’s first electronic stability program 1976

Production of lambda sensors for three-way catalytic converters begins 1997

Start of production of the common-rail high-pressure diesel injection system 42 43 Bosch today 2017 Milestones

2012

Bosch sets up a joint venture with the 1999 Chinese manufacturer Polaris, thus entering the e-scooter market ZF Lenksysteme GmbH joint venture (since 2015: Robert Bosch Automotive Steering GmbH) set up with ZF Friedrichshafen AG 2013

Start of production of MSC motorcycle stability control 2000

Production of the DI Motronic gasoline direct 2014 injection system Lithium Energy and Power GmbH & Co. KG joint venture set up to develop high-perfor- mance rechargeable batteries for electric 2001 vehicles

Industrial leadership of Mannesmann Rexroth AG, and its merger with the Automation Technology division to form Bosch Rexroth AG

2003

Acquisition of Buderus AG, Wetzlar, Germany

2003 2015 Bosch opens new research campus in Launch of the Ixo cordless Renningen, Germany drill/driver with lithium-ion 2015 rechargeable battery Complete takeover of the former joint ventures BSH Hausgeräte GmbH (formerly BSH Bosch und Siemens Hausgeräte GmbH) and Robert 2005 2010 Bosch Automotive Steering GmbH (formerly ZF Lenksysteme GmbH or the Steering Systems Start of production of the Night Vision driver Full parallel hybrid powertrain for passenger division) assistance system cars goes into production

Start of production of the predictive 2016 emergency braking system 2008 Bosch launches its own cloud for web-based services Establishment of the Bosch Mahle Turbo Systems GmbH & Co. KG joint venture for exhaust-gas 2011 turbochargers Start of production of drive components for 2016 Acquisition of Innovations Software Technology e-bikes in Mondeville, France GmbH in Immenstaad, Germany (from January 1, 2011: Bosch Software Innovations GmbH) A Bosch e-scooter sharing service launches in Berlin under the Coup brand 44 45 Bosch today 2017 Management

Dr. Stefan Hartung Dr. Volkmar Denner Dr. Dirk Hoheisel Uwe Raschke Peter Tyroller

Dr. Markus Heyn Dr. Rolf Bulander Prof. Stefan Asenkerschbaumer Christoph Kübel Dr. Werner Struth

Board of management Supervisory board

Dr. Volkmar Denner Peter Tyroller Dr. Markus Heyn Christiane Benner 2 Dieter Klein Chairman Chairman Nadine Boguslawski 3 Prof. Renate Köcher 1 Dr. Werner Struth Uwe Raschke Dr. Christof Bosch Prof. Olaf Kübler 6 Prof. Stefan Asenkerschbaumer Alfred Löckle Christian Brunkhorst Matthias Georg Madelung Deputy chairman Dr. Rolf Bulander Dr. Stefan Hartung Deputy chairman Prof. Elgar Fleisch 4 Kerstin Mai Klaus Friedrich Dr. Wolfgang Malchow Christoph Kübel Dr. Dirk Hoheisel 2 Until December 31, 2016 Hartwig Geisel Urs B. Rinderknecht 3 From January 1, 2017 Mario Gutmann 5 Tilman Todenhöfer 6 4 From April 9, 2016 Jörg Hofmann Dr. Richard Vogt 5 From July 1, 2016 6 Until April 8, 2016 Prof. Lars G. Josefsson Prof. Beatrice Weder di Mauro 1 Until March 31, 2017 7 Until June 30, 2016 Prof. Michael Kaschke 4 Hans Wolff 7 46 Bosch today 2017

How to contact us

For press inquiries, contact Corporate Communications, Brand Management, and Sustainability. Bosch Media Service: bosch-press.com

For information on career opportunities in the Bosch Group, contact Human Resources Management at bosch-career.com

Companies wishing to become suppliers to Bosch should contact Corporate Sector Purchasing and Logistics at purchasing.bosch.com

For an online version of the annual report, go to: annual-report.bosch.com

A pdf version of the annual report and Bosch today is available at: bosch.com/boschtoday

The Bosch Group’s corporate headquarters can be contacted at the following address and telephone numbers:

Robert Bosch GmbH Postfach 10 60 50 70049 Stuttgart

Phone +49 711 811- 0 [email protected] www.bosch.com

Printed in Germany

Print compensated Id-No. 1763652 www.bvdm-online.de 47 How to contact us / Five-year summary

Five-year summary of the Bosch Group

Figures in millions of euros 2012 1 2013 2014 2015 2016 Sales revenue 44,703 46,068 48,951 70,607 73,129 percentage of sales revenue generated outside Germany 77 77 78 80 80 Research and development cost 2 4,442 4,543 4,959 6,378 6,954 as a percentage of sales revenue 9.9 9.9 10.1 9.0 9.5 Capital expenditure 2,714 2,539 2,585 4,058 4,252 of which in Germany 988 913 1,098 1,394 1,580 outside Germany 1,726 1,626 1,487 2,664 2,672 as a percentage of sales revenue 6.1 5.5 5.3 5.7 5.8 as a percentage of depreciation 101 126 138 146 141 Annual average number of associates (thousands) 273 280 286 369 384 of which in Germany 109 108 105 131 133 outside Germany 164 172 181 238 251 at Dec. 31 273 281 290 375 389

Total assets 52,611 55,725 61,924 77,266 81,875

Equity 26,900 27,686 29,541 34,424 36,084 as a percentage of total assets 51 50 48 45 44 EBIT 2,118 2,751 3,030 4,587 3,335 Profit after tax 2,304 1,251 2,637 3,537 2,374

¹ Adjusted for changes in accounting policies ² Including development work charged directly to customers www.bosch.com Germany 70049 Stuttgart Postfach 106050 Bosch GmbH Robert

Bosch today 2017