Robert Bosch Stiftung Gmbh, a Charitable Foundation
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ANNUAL REPORT Bosch in figures Roughly 389,000 associates worldwide Around 440 subsidiaries and regional companies in approximately 60 countries 73.1 billion euros sales revenue in 2016 Roughly 7 billion 3.3 billion euros euros spent on research EBIT in 2016 and development 120 engineering locations worldwide 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 Robert Bosch GmbH) 138 142 THE BOSCH GROUP is a leading global supplier of technology and services. It employs roughly 389,000 associates worldwide (as of December 31, 2016). The company generated sales of 73.1 billion euros in 2016. 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 manufacturing. It uses its ex- pertise 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 some 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 120 locations across the globe, Bosch employs some 59,000 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 ownership 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. Bosch Group business sectors MOBILITY INDUSTRIAL SOLUTIONS TECHNOLOGY Gasoline Systems Drive and Control Technology 1 Diesel Systems Packaging Technology Chassis Systems Control Electrical Drives Other businesses: Starter Motors and Generators Bosch Connected Industry 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 CONSUMER ENERGY AND GOODS BUILDING Power Tools TECHNOLOGY BSH Hausgeräte GmbH Security Systems 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 1 Bosch Rexroth AG (100 % Bosch-owned) Robert Bosch Venture Capital GmbH Foreword Highlights 2016 Auditor’s report 2 12 155 Board of management Robert Bosch Stiftung List of graphs 4 16 and tables 156 Supervisory board report Agility 8 18 Publishing details 157 Supervisory board, industrial trust, Group management report and international advisory committee of the Bosch Group Ten-year summary 10 20 of the Bosch Group 158 Consolidated financial statements of the Bosch Group 66 Contents Annual report 2016 The magazine accompanying the annual report, entitled “Agility – New Connections · New Perspectives · New Worlds” is available online at annual-report.bosch.com 2 Bosch annual report 2016 Foreword 3 Foreword Dear readers, The Bosch Group is embarking on a process of profound transfor- For Bosch, financial independence is very important. It paves mation. The internet of things and its accompanying increase in the way to putting our own stamp on the transformation in our connectivity, together with the automation and electrification of markets, and to making the upfront investments that are needed vehicles, will revolutionize markets and the competitive environ- for this. For this reason, we will work intensively on this transfor- ment. This will mean considerable opportunities and challenges. mation, as well as on increasing efficiency and productivity, and At the same time, the post-war global order is in flux. We are faced will constantly re-examine where we have to focus our efforts. with seismic shifts – in the Americas and Europe as much as in Over the course of what is now our 130-year history, we have Asia. Against this backdrop, we have two decisive tasks. The first repeatedly opened up new areas of business and parted company is to increase our company’s profitability, despite only moderate with old ones. Moreover, times of change also call for new forms global economic growth and considerable global uncertainty. Our of collaboration. When faced with change, large companies have second task is to use this as a basis for successfully shaping the to be flexible and inventive. This calls for creativity on the part of transformation of the Bosch Group. As a company, we are devot- all concerned, as well as intensive collaboration across divisional ing a lot of energy to these undertakings. boundaries. Many things have already changed at Bosch. Its many initiatives and successful start-ups are a visible sign of the com- With its great innovative strength, broad product portfolio, and pany’s agility. To accompany the publication of our annual report, global presence, Bosch is in an excellent position for the journey we profile these activities in an exclusively online magazine. ahead: in a global economy that grew only moderately, we reached our growth targets in 2016 and were successful in many areas. We in the company are working with great determination to seize However, we are having to make heavy upfront investments, thus opportunities and overcome challenges. In 2016, our 389,000 as- systematically preparing the Bosch Group for the challenges of sociates worldwide gave their all to take the Bosch Group forward. the future. This includes our activities in the fields of automated On behalf of the board of management, I would like to thank them driving, electromobility, and connected manufacturing. And since for their hard work. At the same time, I would like to thank the em- artificial intelligence and software are very important for these ployee representatives for their constructive contributions to the fields, we are extending our expertise there. Merging our power- transformation that lies ahead, the shareholders and supervisory train technology activities to form one strong Powertrain Solutions board for their support, and our business partners for the trust division is an important move in preparing for the upheavals relat- they have placed in us. ing to the internal-combustion engine. This area is currently feeling the negative effects not only of the debate about city driving bans, With best regards, but also of the diesel engine manipulation affair. On this subject, at the end of 2016 the company reached a settlement with the vehicle owners affected in the United States. We are also continu- ing to cooperate fully with the investigating authorities in Germany Dr. Volkmar Denner and other countries. Chairman of the board of management 4 Bosch annual report 2016 Board of management Dr. Stefan Hartung Dr. Volkmar Denner Dr. Markus Heyn Dr. Rolf Bulander Prof. Stefan Asenkerschbaumer 5 Board of management Geschäftsführung Dr. Dirk Hoheisel Uwe Raschke Peter Tyroller Christoph Kübel Dr. Werner Struth 6 Bosch annual report 2016 Board of management Dr. Volkmar Denner Prof. Stefan Asenkerschbaumer Christoph Kübel Chairman Deputy chairman Corporate responsibilities Corporate responsibilities Corporate responsibilities • Human resources and social welfare, • Corporate strategy • Finance and financial tatementss including senior executives • Corporate communications • Controlling, planning, mergers and acquisitions • External affairs, governmental and • Research and advance engineering • Internal accounting and organization political relations • Technology coordination and engineering • Purchasing and logistics • Legal services methods • Information technology • Taxes • Real estate and facilities • In-house consultancy • Compliance management • Internal auditing Subsidiaries • Intellectual property • Bosch Healthcare Solutions GmbH • Insurance • Bosch Software Innovations GmbH • Environmental protection 2 • Healthcare Telemedicine 1 • Robert Bosch Venture Capital