a a Robert Bosch GmbH Annual Report Robert-Bosch-Platz 1 D-70839 Gerlingen-Schillerhöhe 1999 Mailing address: Postfach 1060 50 D-70049 Stuttgart Telephone + 49 711 811-0 Fax + 49 711 811-66 30 www.bosch.com KH/DLD 1 987 782 126 Bosch Group Business Sectors and Divisions Key Figures Automotive Equipment1 (million DM) ABS and braking systems Engine-management systems – Bodywork electrics gasoline Bosch Group Worldwide 1999 1998 Fuel-injection technology – diesel Body electronics Mobile communications2 Sales 54,579 50,333 percentage change from prior year + 8.4 + 7.4 Semiconductors and control units Starters and alternators Aftermarket products, after-sales service, test equipment and technology Foreign sales 66 as a percentage of sales 65 Consumer Goods Research and development expense 3,757 3,478 as a percentage of sales 6.9 6.9 Power tools Thermotechnology Household appliances3 Investments in tangible fixed assets 3,806 3,773 128 as a percentage of depreciation 148 Communications Technology4 Number of employees average for the year 194,335 188,017 Broadband networks Aerospace engineering Security systems as of January 1, 2000/1999 194,889 189,537 Total assets 40,743 36,343 Capital Goods Equity capital 12,998 11,869 as a percentage of total assets 32 33 Automation technology Packaging machinery Net income for the year 900 850 Front-page illustration: In 1999, we introduced a gasoline direct-injection Unappropriated earnings system. It is used on stratified- (Dividends of Robert Bosch GmbH) 80 80 charge engines. This requires an injector with an extremely accurate spray pattern. The benefits of direct injection, 1 Including ZF Lenksysteme GmbH (50% Bosch) especially substantial savings 2 Blaupunkt-Werke GmbH (100% Bosch) 3 BSH Bosch und Siemens Hausgeräte GmbH (50% Bosch) in fuel consumption, are thus 4 Bosch Telecom GmbH (100% Bosch) and product groups Status as of May 1, 2000 maximized. Table of Contents Page Supervisory Council 4 Board of Management 5 Supervisory Council Report 6 Management Report 8 Automotive Equipment Business Sector 16 Consumer Goods Business Sector 24 Communications Technology Business Sector 30 Capital Goods Business Sector 32 International Business 34 Research and Development 38 Employees of the Bosch Group 40 Financial Statements of the Bosch Group Worldwide 42 Major Companies of the Bosch Group Worldwide 58 Financial Statements of Robert Bosch GmbH 60 Ten Year Statistics Bosch Group Worldwide 62 3 Supervisory Council Until April 11, 2000 Board of Management Dr. phil. Dr. rer. oec. h.c. Ruth Fischer-Pusch, Stuttgart Olaf Kunz, Frankfurt Until June 30, 1999 Effective July 1, 1999 Marcus Bierich, Stuttgart Trade Unions of the Metal Industry, Managing Director of the Trade Unions Chairman District Management of the Metal Industry, Department for Board of Management Board of Management Former Chairman of the Board of Baden-Württemberg Union Policy Management of Robert Bosch GmbH Hermann Scholl Hermann Scholl Hans-Henning Funk, Hildesheim Prof. Gero Madelung, Munich Chairman Chairman Walter Bauer, Kohlberg Chairman of the Shop Council of Formerly Technical University Munich Deputy Chairman the Hildesheim Plant and Member Chair of Aviation Technology Rainer Hahn Tilman Todenhöfer Chairman of the Joint Shop Council of the Joint Shop Council of Deputy Chairman of Robert Bosch GmbH as well as of Robert Bosch GmbH Prof. Dr. rer. nat. Claus Dieter Hoffmann the Combined Shop Council, and Hans-Joachim Queisser, Stuttgart Rainer Hahn Chairman of the Shop Council of the Dr. jur. Karl Gutbrod, Stuttgart Formerly Director at the Max-Planck- Robert S. Oswald Reutlingen Plant Former Member of the Board of Institute for Solid-State Research Claus Dieter Hoffmann Management of Robert Bosch GmbH, Tilman Todenhöfer Dr. jur. Peter Adolff, Stuttgart, Chairman of the Board of Trustees of Urs B. Rinderknecht, Ennetbaden Robert S. Oswald former Member of the Board of Robert Bosch Stiftung GmbH Chief Executive of UBS AG Hubert Zimmerer Management of Allianz Versicherungs- Stephan Rojahn Aktiengesellschaft Gudrun Hamacher, Frankfurt Gerhard Sautter, Erdmannhausen Former Managing Member of the Chairman of the Shop Council of the Associate Members of the Gotthard Romberg Knut Angstenberger, Stuttgart Board of Directors of the Trade Unions Feuerbach Plant, and Deputy Chairman Board of Management Department Manager in the Diesel of the Metal Industry of the Joint Shop Council of Robert Fuel-Injection Technology Division, and Bosch GmbH and the Combined Shop Siegfried Dais Deputy Members of the Chairman of the Joint Speaker Group Hans-Joachim Jaquet, Council Board of Management of Robert Bosch GmbH and of the Mörfelden-Walldorf Stephan Rojahn Group Speaker Committee Chairman of the Joint Shop Council of Hans Peter Stihl, Remseck Bernd Bohr Bosch Telecom GmbH and Chairman Chairman of the Board of Management Gotthard Romberg Dr. h.c. Bo Erik Berggren, Stockholm, of the Shop Council of Bosch Telecom of Andreas Stihl AG & Co Wolfgang Chur former Chairman of the Board of GmbH at Frankfurt Directors and Chief Executive Officer until March 31, 2000 Manfred Wenkemann, Homburg Siegfried Dais of STORA Kopparbergs Bergslags AB Chairman of the Shop Council of the Dieter Klein, Wolfersheim Homburg Plant of Robert Bosch GmbH Franz Fehrenbach Dr. jur. Ulrich Cartellieri, Frankfurt Chairman of the Shop Council of the and Member of the Joint Shop Council Member of the Supervisory Homburg Plant of Robert Bosch GmbH of Robert Bosch GmbH Council of Deutsche Bank AG and Member of the Joint Shop Council until March 31, 1999 of Robert Bosch GmbH Dr.-Ing. Wolfgang Eychmüller, as of April 1, 1999 Hans Wolff, Bamberg Ulm/Donau Chairman of the Shop Council Chairman of the Supervisory Council Dieter Krause, Hildesheim of the Bamberg Plant and of Wieland-Werke AG Chairman of the Shop Council Member of the Joint Shop Council of Blaupunkt-Werke GmbH, Hildesheim of Robert Bosch GmbH as of April 3, 2000 4 5 Our customers are very demanding when it comes to the quality and reliability of our products. We utilize the highest-precision testing methods as shown here in Supervisory laser-measurement of disc brakes. Council Report In its sessions, and using written with the audit findings, and recom- Board of Management Stephan monthly reports, the Supervisory mends that the shareholders approve Rojahn and Gotthard Romberg as full Council of Robert Bosch GmbH kept the financial statements of Robert members of the Board of Manage- itself regularly informed about the Bosch GmbH and follow the proposal ment, and Dr. Siegfried Dais as progress of business and the com- of the Board of Management for the deputy member, all effective as of pany’s situation. Business develop- disposition of net income. July 1, 1999. In addition, the Council, ments, financial situation, investment following the recommendation of the plans, as well as new technical devel- As of March 31, 1999, Manfred shareholders, named Dr. Bernhard opments were presented and dis- Wenkemann retired and as a result Bohr, previously in charge of devel- cussed in detail. Reporting and dis- left the Supervisory Council. Dieter opment at the ABS and braking sys- cussion included all important com- Klein was appointed as his successor tems division, Wolfgang Chur, previ- panies of the Bosch Group. Written by the Stuttgart court effective ously speaker for the management of monthly reports brought the Supervi- April 1, 1999. The Council expresses the mobile communications division, sory Council up to date on current its appreciation to Manfred Wenke- and Franz Fehrenbach, previously business developments. Special mann for his constructive teamwork. speaker for the management of the events were covered in newsletters. diesel fuel-injection technology divi- As of June 30, 1999, Hubert Zim- sion, as deputy members of the Board Ernst & Young Deutsche Allgemeine merer, a member of the Board of of Management, all effective as of Treuhand AG, Stuttgart, audited the Management, retired. The Supervi- July 1, 1999. accounting and financial statements of sory Council expresses its thanks to Robert Bosch GmbH and the consoli- him for his many successful years of Stuttgart, April 2000 dated financial statements of the work in the company. For the Supervisory Council Bosch Group. The auditors in all Dr. Marcus Bierich cases gave their unqualified opinion. Tilman Todenhöfer was elected Chairman The Supervisory Council concurs Deputy Chairman of the Board of Management effective July 1, 1999. At its meeting on April 13, 1999, the Supervisory Council of Robert Bosch GmbH, acting on the recommenda- tion of the shareholders, appointed the former associate members of the 6 7 Sales (billion DM) Progress 1995–1999 54.6 1999 50.3 1998 Management Report 46.9 1997 41.1 1996 35.8 1995 10_________________________________________________ 20_________________________________________________ 30_________________________________________________ 40_________________________________________________ 50_________________________________________________ 60_________________________________________________ 70 The year 1999 was generally posi- Business upswing during the increased 12% and 16% respectively. Nearly all our areas of activity con- The sales to third parties by the Capi- Still unsatisfactory tive for the Bosch Group. Growth second half of the year The higher North American sales in tributed to the growth in automotive tal Goods Business Sector – automa- profitability exceeded our expectations and was Consolidated sales of the Bosch DM were influenced