Quality of life Bosch today 2015 Bosch today 2015 We are Bosch Our objective – what we want to achieve 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 Our values – what we build on Future and Responsibility and Initiative and result focus sustainability determination www.wearebosch.com Global presence Openness Fairness Reliability, Diversity and trust credibility, legality 4 Bosch today 2015 The Bosch Group at a glance Shareholders of Robert Bosch GmbH Shareholding Robert Bosch GmbH 1 Bosch family 7 Robert Bosch Stiftung GmbH 92 Voting rights Bosch family 7 Robert Bosch Industrietreuhand KG 93 5 The Bosch Group is a leading global supplier of technology and ser- vices. The company employs roughly 360,000 associates worldwide (as per April 1, 2015), and generated sales of 49 billion euros in 2014.* Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including its sales and service partners, Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2014, Bosch applied for some 4,600 patents worldwide. The Bosch Group’s strategic objective is to create solutions for a connected world. 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 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. * The sales figure disclosed for 2014 does not include the former joint ventures BSH Bosch und Siemens Hausgeräte GmbH (now BSH Hausge- räte GmbH) and ZF Lenksysteme GmbH (now Robert Bosch Automotive Steering GmbH), which have since been taken over completely. 6 Bosch today 2015 Contents “We are Bosch” mission statement 2 The Bosch Group at a glance 4 Innovations 7 Business sectors Mobility Solutions 10 Industrial Technology 12 Consumer Goods 14 Energy and Building Technology 16 The business year 2014 18 Sustainability 24 Robert Bosch Stiftung 26 Bosch as an employer 28 The Bosch Group in Germany 30 The Bosch Group in Europe (outside Germany) 32 The Bosch Group outside Europe 34 Milestones 36 Management 42 How to contact us 43 7 2014: Growth through innovation The figures speak for themselves: in 2014, the Bosch Group filed 4,593 patent applications and hired a further 3,000 research and development associates, who work at 94 engineering sites worldwide. The main drivers of this success story are dedicated engineers whose tremendous creativity and unconventional ideas give rise to novel solutions, and whose work carries forward the company’s long tradition of innovation. In 2014, Bosch spent some five billion euros on research and development in order to further enhance the company’s innovative strength. One strategic focus of these R&D activities is the development of solutions for the internet of things – in other words, connect- ing objects and sensors over the internet with software. For some years, Bosch has been preparing itself systematically for the connected world, not least by expanding its own software competence, which it then combines with the industry expertise of its divisions. Moreover, Bosch is the leading supplier of MEMS sensors, which are a key technology for the internet of things. Even now, the company is helping to connect vehicles with the internet, providing apps that make central heating controls accessible, and involving its own suppliers online in the supply chain for the production of diesel injectors. And thanks to Bosch technology, even electric ovens and other household appliances are already connected to the internet. Bosch is taking mobility forward thanks to its expertise relating not only to connectivity, but also to automation and electrifica- tion. Its aim is to use this know-how as a basis for developing the eco-friendly and resource-conserving mobility solutions of the future. Even now, more than half the company’s total R&D budget goes into the development of products that protect the environment and conserve resources. 8 Bosch today 2015 The Renningen location just outside Stuttgart is the new nerve center of the international Bosch research network. Together with their colleagues around the world, its roughly 1,200 associates explore new materials, methods, and technologies, and develop innovative systems, components, and manufacturing processes. Their permanent mandate is to think ahead to find the best solu- tion for customers, and to provide services and products tailored to the company’s diverse customers and markets. development and engineering locations worldwide 1 associates in 45,700 research and 94 development 2 1 Includes all locations with 50 or more associates as per December 31, 2014 2 As per December 31, 2014 9 additional associates 3,000 in research and development Bosch billion euros invested around in research and development in 2014 – around 10 percent of sales revenue development and 5 engineering locations worldwide 1 first-filed patents in 4,593 2014 (roughly 18 per working day) 10 Bosch today 2015 Mobility Solutions The Mobility Solutions business sector, one of the world’s lead- ing automotive suppliers, accounts for roughly 68 percent of total sales. The sector combines the group’s expertise in three mobility domains – automation, electrification, and connectiv- ity – and offers its customers integrated mobility solutions. Its main areas of activity are injection technology and powertrain peripherals for internal-combustion engines, diverse solutions for powertrain electrification, safety and driver-assistance systems, technology for user-friendly infotainment as well as car-to-car and car-to-x communication, repair-shop concepts, and tech- nology and services for the automotive aftermarket. Bosch has been responsible for important automotive innovations, such as electronic engine management, the ESP® anti-skid system, and common-rail diesel technology. 11 Mobility Solutions Sales structure by business sector Bosch Group 2014 Percentage figures Industrial Technology Mobility 14 Solutions 68 Consumer Goods 9 Energy and Building Technology 9 Total: 49 billion euros Mobility Solutions (formerly Automotive Technology) Gasoline Systems Diesel Systems Chassis Systems Control Electrical Drives * Robert Bosch Automotive Starter Motors and Generators Steering GmbH (formerly ZF Car Multimedia Lenksysteme GmbH, or Steering Systems division; included in Automotive Electronics the 2014 financial statements Automotive Aftermarket at equity; completely acquired Automotive Steering * Jan. 30, 2015) www.bosch-mobility-solutions.com 12 Bosch today 2015 Industrial Technology In the fiscal year 2014, the Industrial Technology business sector generated roughly 14 percent of total Bosch Group sales. The sector includes the Drive and Control Technology division, which is a one-stop supplier of innovative components, customized systems solutions, and services for hydraulics, electrical drives and controls, gear technology, linear-motion technology, and assembly technology. The Packaging Technology division provides integrated manufacturing and packaging solutions, above all for the pharmaceuticals, foodstuffs, and confectionery industries. 13 Sales structure by region Bosch Group 2014 Percentage figures Americas 20 Europe 53 Asia Pacific 1 27 Total: 49 billion euros 1 Including other countries Industrial Technology Drive and Control Technology * Packaging Technology * Bosch Rexroth AG (100% Bosch-owned) www.boschrexroth.com www.boschpackaging.com 14 Bosch today 2015 Consumer Goods The Consumer Goods business sector contributed some 9 percent of total Bosch Group sales in 2014. It includes the Power Tools division, the globally leading supplier of power tools and power-tool accessories, as well as of measuring and gardening tools. The Consumer Goods business sector also includes the Household Appliances division, which offers the entire range of modern household appliances, such as stoves, ovens, dishwashers, washing machines, refrigerators and freezers, vacuum cleaners, and fully automatic coffee makers. 15 Consumer Goods Associates by business sector Bosch Group 2014, as per Dec. 31, 2014 Mobility Industrial Technology Solutions 41,372 (14%) 190,438 (66%) Consumer Goods 17,120 (6%) Energy and Building Technology 26,087 (9%) Total: 290,183 Other 1 1 Corporate functions and research 15,166 (5%) Consumer Goods Household Appliances * Power Tools * BSH Hausgeräte GmbH (formerly BSH Bosch und Siemens Hausgeräte