Annual Report 2017
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Annual report BOSCH IN FIGURES 2017 78.1 Some 440 subsidiaries and regional companies in 60 countries billion euros billion EBITeuros in 2017 7. 3expenditure on research 125 and development engineering locations worldwide BOSCH 4.9 IN FIGURES 78.1billion euros sales revenue in 2017 Roughly 402,000 associates worldwide The Bosch Group The Bosch Group is a leading global supplier of technology and services. It employs roughly 402,000 associates worldwide (as of December 31, 2017). The company generated sales of 78.1 billion euros in 2017. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected manu- facturing. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to create solutions for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. The basis for the company’s future growth is its innovative strength. At 125 locations across the globe, Bosch employs roughly 64,500 associates in research and development. The company was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special owner- ship structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH. Additional information is available online at www.bosch.com, www.iot.bosch.com, www.bosch-presse.de, www.twitter.com/BoschPresse. Bosch Group key data Figures in millions of euros 2017 2016 1 Sales revenue 78,066 73,129 percentage change from previous year 6.8 3.6 percentage of sales revenue generated outside Germany 80 80 Research and development cost 7,264 6,911 as a percentage of sales revenue 9.3 9.5 Capital expenditure on property, plant, and equipment 4,345 4,252 as a percentage of depreciation 140 141 Associates average for the year 402,619 383,917 at December 31 402,166 389,281 Balance-sheet total 81,870 81,875 Equity 37,552 36,084 as a percentage of balance-sheet total 46 44 EBIT 4,916 3,594 as a percentage of sales revenue 6.3 4.9 Profit after tax 3,274 2,374 Unappropriated earnings (dividend of Robert Bosch GmbH) 241 138 1 Values following adjustment as a result of change in accounting method Business sectors of the Bosch Group MOBILITY SOLUTIONS Powertrain Solutions 1 Chassis Systems Control Electrical Drives Starter Motors and Generators 2 Car Multimedia INDUSTRIAL Automotive Electronics TECHNOLOGY Automotive Aftermarket Automotive Steering Drive and Control Technology 4 Connected Mobility Solutions 3 Packaging Technology 5 Other businesses: Other businesses: Bosch Engineering GmbH Bosch Connected Industry Commercial Vehicles and Offroad Applications eBike Systems ETAS GmbH Two-Wheeler and Powersports CONSUMER GOODS Power Tools 6 BSH Hausgeräte GmbH ENERGY AND BUILDING TECHNOLOGY Building Technologies 7 Thermotechnology Bosch Global Service Solutions Other businesses: Robert Bosch Smart Home GmbH Other businesses not allocated to business sectors: Bosch Healthcare Solutions GmbH Bosch Software Innovations GmbH Robert Bosch Start-up GmbH Robert Bosch Venture Capital GmbH ¹ Created on Jan. 1, 2018, by merging Gasoline Systems ⁴ Bosch Rexroth AG (100% Bosch-owned) and Diesel Systems divisions ⁵ Robert Bosch Packaging Technology GmbH ² Sold Dec. 31, 2017 ⁶ Robert Bosch Power Tools GmbH ³ New division from Jan. 1, 2018 ⁷ Until Feb. 28, 2018, Security Systems CONTENTS 2 Foreword 4 Board of management 8 10 Supervisory board 12 report Supervisory board, industrial Highlights 2017 trust, and international advisory committee 16 Robert Bosch Stiftung 18 Transformation 20Group management report of the Bosch Group 58 Consolidated financial statements of the Bosch Group 149 Auditor’s report 152 List of graphs 153 and tables Publishing details 154 Ten-year summary of the Bosch Group 2 Bosch annual report 2017 FOREWORD 3 Foreword At the same time, it is our task to further improve our company’s profitability, despite the heavy upfront investments required for this transformation. We made significant progress here in 2017. We not only took advantage of the generally buoyant global economy to boost our sales, but also considerably improved our margin. After all, strong profitability is the basis for shaping the transforma- tion in our markets, and for making the upfront investments that are needed for this. As in the past, this also means we have to adjust our portfolio. At the end of 2017, we completed the sale of our starter motors and generators business. In its new set-up, it has better prospects for Dear readers, the future. We need to sharpen our focus to make the best use of our resources. Nonetheless, we still regard the broad diversification The transformation of the Bosch Group can be felt throughout the of our products and business areas as a huge advantage. A strong, company. This is also in evidence in our annual report and the digital increasingly connected product base and greater cross-divisional magazine that accompanies it. The chief drivers of this transforma- collaboration will present us with excellent opportunities for offer- tion, which is fundamentally changing our markets and our com- ing attractive services and solutions in many areas of life, true to our petitive environment, are electrification and the internet of things. “Invented for life” ethos. In this context, one of our tasks is to ensure We are systematically adapting to this development and, in 2017, that our structures are competitive over the long term. For us, open introduced a wide range of measures in response to it. By bringing dialogue with our workforce and their representatives is central to our Gasoline Systems and Diesel Systems divisions, as well as the this task, since it will allow us to develop creative solutions together. electromobility unit, together under one roof in our new Powertrain On top of this, we are encouraging the acquisition of additional Solutions division, we are reorganizing ourselves. This will allow us expertise. For a company like Bosch, lifelong learning for everyone to serve our customers with the optimum combination of technolo- will be even more crucial for success in the future. gies. After all, even with electrification increasing, efficient gasoline and diesel engines will continue to play a significant role for a long Our roughly 400,000 associates worldwide give their all to take time to come. We have also entered into an important partnership the Bosch Group forward. On behalf of the board of management, for automated driving. I would like to thank them for this dedication. At the same time, I would like to thank the employee representatives for their construc- As a further element of our IoT strategy, we set up the Bosch Center tive views on confronting the challenges posed by the transformation for Artificial Intelligence in 2017. The connectivity of objects and the process, the shareholders and supervisory board for their support, novel business models arising from it concern all our activities, from and our business partners for the trust they have placed in us. automated driving, to Industry 4.0, to digitally connected and smart building and energy technology, including smart homes. In the years With best regards, since 2008, we have built up comprehensive software expertise for the internet of things, and are thus in a sound position. In new units such as Connected Mobility Solutions and Bosch Connected Industry, we are pooling and expanding a number of IoT activities. This is also the goal behind closer, cross-divisional collaboration within the Energy and Building Technology business sector, and the creation of Dr. Volkmar Denner “digital units” for the consumer goods business with power tools and Chairman of the board of management household appliances. 4 Bosch annual report 2017 BOARD OF MANAGEMENT Christoph Kübel Dr. Markus Heyn Peter Tyroller Dr. Volkmar Denner 5 Board of management Dr. Dirk Hoheisel Dr. Rolf Bulander Dr. Stefan Hartung Uwe Raschke Prof. Stefan Asenkerschbaumer 6 Bosch annual report 2017 BOARD OF MANAGEMENT Dr. Dirk Hoheisel Corporate responsibility • Mobility Solutions systems integration Divisions • Chassis Systems Control • Car Multimedia • Automotive Electronics • Automotive Steering Dr. Markus Heyn Corporate responsibilities Christoph Kübel • Mobility Solutions sales • Marketing and sales Corporate responsibilities • Human resources and