Dialogue participants discuss subjects with technological and future relevance
Bosch CEO Denner: “In the race for a connected world, Germany must use its strengths”
Bosch start-up platform encourages entrepreneurship in the company
Berlin – Federal Chancellor Dr. Angela Merkel has appointed the Bosch CEO Dr. Volkmar Denner to the steering committee of the innovation dialogue, in which the federal government consults with the business and academic communities. At its regular meetings, the committee focuses on technological subjects and the effect that political, economic, and social conditions will have on such things as Germany’s future innovative strength. The discussions are attended by the federal chancellor and the ministers for economic affairs, education, and special tasks on the one hand, and representatives of the business and academic communities on the other. The committee is chaired by Prof. Dr. Henning Kagermann, president of Germany’s National Academy of Science and Engineering (Acatech). “The future of German business lies in connectivity, both technologically and organizationally. It is both appropriate and necessary that politics, industry, and academia should work together to strengthen Germany’s status as a seat of innovation,” said Denner, who is both CEO and CTO of the Bosch Group. “In particular, the close networks between business and science are one of Germany’s main strengths in the global competition among knowledge-based societies,” Denner went on.
Germany needs more innovative business models The Bosch CEO is confident that “Germany can lead the world in connectivity. We are in an excellent position to do so.” When it comes to connected manufacturing, Denner stressed that Germany still has a strong industrial base. “Our know-how in manufacturing things, combined with our expertise in IT and automation engineering, gives us a very real advantage in the race for the connected world.” However, Denner does not believe that Germany’s future competitiveness is set in stone. While German industry has always been a technological pioneer, “innovative business models still tend to be the hallmark of Silicon Valley. In the internet age, German companies also have to be innovative in their business models.”
Bosch start-up platform: encouraging entrepreneurship in the company The Bosch CEO sees a need to catch up in two areas above all: first, in technical infrastructure (e.g. poor broadband networks) and, second, in its culture of entrepreneurship, which is still underdeveloped. “The number of start-ups in Germany has fallen constantly over the past ten years. This is clearly not the development we need,” Denner said. Increasingly, therefore, Bosch is encouraging entrepreneurship within the company. Only recently, the company’s own start-up platform went into operation. It provides support to Bosch associates wanting to set up their own company. Denner went on: “Our associates have proved that they are good researchers. Now we want them to be good businesspeople as well.” While associates focus on making their innovations ready for the market, the start-up platform helps them with administrative matters such as management accounting and financing.
Some 800 associates expected to move in by the end of 2014 Project on schedule: Remaining construction and move to be completed by early summer 2015
Bosch CEO Denner: “The new Renningen location will enhance the Bosch Group’s innovative strength”
Campus-like atmosphere promotes creativity and more networking
Renningen – The time has finally come for the first researchers and engineers to move into the Bosch Center for Research and Advance Engineering in Renningen. Almost two and a half years after the groundbreaking ceremony, some 800 associates are set to start working at the new research campus by the end of 2014. The center in Renningen will be the hub of Bosch’s global research network. Until now, corporate research and advance engineering activities have been spread out at locations in Gerlingen, Schwieberdingen, and Waiblingen. With the move of the first 800 out of a total of 1,700 associates, the Bosch location is now officially open for business. By tightening its network of researchers, the global provider of technology and services aims to further enhance its innovative strength. “The new Renningen location will enhance the Bosch Group’s innovative strength. Bosch’s strategic aim is to develop solutions for a connected life. To this end, we are creating an even tighter network of researchers and engineers in Renningen and beyond,” said Dr. Volkmar Denner, the chairman of the Bosch board of management. With its new hub, the research network of the global provider of technology and services will comprise eight locations in six countries from 2015 onward. Bosch is investing some 310 million euros for the new research center, which is located outside of Stuttgart.
Logistical challenge – A move in several steps By the end of 2014, Bosch researchers will have moved into buildings at the eastern end of the site, as well as into the main building. The buildings on the western half of the site will be completed in the first quarter of 2015, at which point associates will be moving in. The move to the new research campus is gradually taking place over a period of about six months, and involves mastering special logistical challenges. Many of the laboratories and research facilities must be carefully dismantled, packed, transported, and rebuilt for operations in Renningen. In total, some 1,800 machines and technical equipment from 270 laboratories are being moved from existing locations to Renningen. By early summer 2015, more than 12,000 boxes will be moved to the new research campus.
Campus with ideal research conditions “For the first time, Bosch is pooling its research and advance engineering activities in the greater Stuttgart region at a single location. This highlights the importance of research at Bosch,” said Dr. Michael Bolle, president of corporate research and advance engineering at Bosch. The new research center is tailored specifically to the needs of researchers. Based on the concept of a university campus, the buildings are generously spread out across a large site. The specially developed office concept offers an attractive work environment that promotes creativity and cooperation. “The interior design of the buildings and the floor plan reflect our innovation process. For each phase of this process, our associates will have ideal working conditions,” Bolle said. Thanks to the close proximity of office spaces to workshops and laboratories, researchers can put their ideas to the test without delay.
A powerhouse of innovation – 20 patents per working day In 2013, Bosch filed a total of 4,964 patents, an average of 20 per working day. This makes the company one of the world’s top ranking in terms of patent applications. Last year, the global provider of technology and services spent 4.5 billion euros on research and development, almost 10 percent of its sales. The company currently employs some 42,700 researchers and engineers. At locations around the world, some 1,300 associates work for the company’s corporate research and advance engineering department.
More information on the new Center for Research and Advance Engineering can be found at www.bosch-renningen.de.
Purchase price of 50 percent stake to total €3 billion in addition to a distribution of €250 million
BSH to become wholly owned subsidiary of Bosch Group
BSH may continue to use Siemens brand over the long term
Completion of transaction expected in first half of calendar year 2015
Stuttgart/Munich - Bosch and Siemens agreed yesterday that Robert Bosch GmbH will acquire Siemens' 50 percent stake in the joint venture BSH Bosch und Siemens Hausgeräte GmbH (BSH). The transaction has been approved by the Board of Management and Supervisory Board of Bosch and the Managing Board and Supervisory Board of Siemens. The purchase price will total €3 billion. In addition, Siemens and Bosch will each receive from BSH an additional distribution of €250 million before the transaction is completed.
The transaction, which still requires regulatory approval, will probably be completed in the first half of calendar year 2015. BSH will then become a wholly owned subsidiary of the Bosch Group. Under the terms of the agreement, BSH will also be allowed to produce and market household appliances under the Siemens brand over the long term.
“BSH has been a successful and profitable company for many years. Strategically and technologically, it is a perfect match for the Bosch Group,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. Like the Bosch Group, BSH pursues a long-term, innovation-oriented strategy, is internationally positioned, and committed to good corporate citizenship.
“The sale of our BSH stake is part of our drive to continue focusing very intensively on our core business. In a constantly strong partnership over the last few decades, Bosch and Siemens have made BSH a successful leader in the area of household appliances. By uniting continuity with new perspectives, I’m convinced that Bosch’s complete acquisition of BSH will offer BSH’s customers, distribution partners and employees a very solid and sustainable structure,” said Siemens CFO Ralf P. Thomas. “The negotiations with Bosch were always constructive and based on a spirit of mutual trust,” he added.
In 1967, Bosch and Siemens combined their activities in the area of household appliances to create the joint venture BSH. Since then, BSH has become Europe’s largest producer of household appliances and a world-leader in its field, with revenue of about €10.5 billion in 2013 and around 50,000 employees worldwide. The BSH product portfolio comprises a wide range of household appliances – including everything from stoves, ovens and extractor hoods to dishwashers, washing machines, clothes dryers and combined refrigerator-freezers to small household devices such as vacuum cleaners, coffee machines, water kettles, clothes irons and hairdryers.
“BSH fits in very well with our guiding strategic principle: Invented for Life,” explained Denner. With its products and services, the household appliance producer wants to leverage intelligent technologies, high levels of comfort and user-friendliness in order to make the lives of people around the world easier and more enjoyable, while conserving natural resources with the help of highly efficient devices.
Technologically, there are also opportunities for intensified cooperation between Bosch and BSH in the future-oriented field of the Internet of Things and Services. “Employing Smart Home concepts, the use of household appliances can be made even more energy-efficient in the future, while user-friendliness will further increase,” said Uwe Raschke, the member of the Board of Management of Robert Bosch GmbH who is responsible for the Consumer Goods business sector to which BSH currently belongs. As an equally owned joint venture, BSH is not currently consolidated. Instead, its net income is included in profit figures on a pro rata basis.
“With Bosch’s acquisition of all the shares of BSH, we’ll have a strong owner in the future – an owner with a long-term orientation and one who will support us in our further strategic development,” emphasized BSH CEO Dr. Karsten Ottenberg. To achieve its goal of doubling revenue by 2025, BSH will increase investments in research and development as well as in its brands. “After more than 45 years of good partnership with Siemens, Bosch offers – through the acquisition – a long-term perspective for BSH employees,” said Raschke.
Contact for journalists:
Robert Bosch GmbH Dr. Ingo Rapold, Phone: +49 711 811-48905Phone: +49 711 811-7639 Email: Ingo.Rapold@bosch.com
About Bosch: The Bosch Group is a leading global supplier of technology and services. In 2013, its roughly 281,000 associates generated sales of 46.1 billion euros. (NB: Due to a change in accounting policies, the 2013 figures can only be compared to a limited extent with the 2012 figures). 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 360 subsidiaries and regional companies in some 50 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2013, the Bosch Group invested some 4.5 billion euros in research and development and applied for some 5,000 patents. This is an average of 20 patents per day. The Bosch Group's products and services are designed to fascinate, and to improve the quality of life by providing solutions which are both innovative and beneficial. In this way, the company offers technology worldwide 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. 92 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
About Siemens: Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 165 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is one of the world’s largest providers of environmental technologies. Around 43 percent of its total revenue stems from green products and solutions. In fiscal 2013, which ended on September 30, 2013, revenue from continuing operations totaled €74.4 billion and income from continuing operations €4.2 billion. At the end of September 2013, Siemens had around 362,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: www.siemens.com.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. These factors include in particular, but are not limited to, the matters described in Item 3: Key information – Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter Risks of our most recent annual report prepared in accordance with the German Commercial Code, and in the chapter Risks and opportunities of our most recent interim report. Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
ZF Lenksysteme: approximately 4.1 billion euros in sales, more than 13,000 associates in eight countries in 2013
Sales of electric steering systems growing
Products for more efficient, automated, and connected vehicles
Stuttgart – Bosch is planning to increase its stake in ZF Lenksysteme GmbH (ZFLS) to 100 percent. On September 15, 2014, Robert Bosch GmbH and ZF Friedrichshafen AG signed an agreement to this effect. Up to now, ZFLS, based in Schwäbisch Gmünd, Germany has been a 50:50 joint venture between Bosch and ZF. Employing more than 13,000 associates in eight countries, ZFLS develops, produces, and sells steering systems for passenger cars and commercial vehicles worldwide. In 2013, it registered sales of approximately 4.1 billion euros. With a total of 20 locations, the company is active in the world’s most important automotive markets. Alongside locations in Europe, the U.S., and China, ZFLS also produces in India, Brazil, and Malaysia. The transaction is subject to approval by the antitrust authorities. It has been agreed that the purchase price will not be disclosed.
“With its complete takeover of ZFLS, Bosch is strengthening its ability to actively shape the future of mobility. The company is a technological leader in the growth area of electric power steering, and precisely this is the core technology for automated driving, for more efficient vehicles, and also for electric cars,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH.
ZFLS already generates some 60 percent of its total revenue with modern, fuel-efficient electric power steering systems. One reason for the success of efficient steering systems is their potential to reduce consumption: for instance, a mid-size vehicle with a two liter engine can see fuel savings of up to 0.8 liters per hundred kilometers. This also reduces emissions by up to 20 grams of CO2 per kilometer. In addition, electric power steering in cars is an essential component for many assistance systems. For example, lane-keeping assistants rely on it to automatically keep the car on course. During start-stop coasting, which involves the engine shutting off while coasting, electric support ensures that steering behavior remains the same.
Continuous growth “Since 1999, ZFLS has experienced strong growth, and has also developed very successfully as a result of the excellent collaboration between ZF and Bosch. I would like to sincerely thank all ZFLS associates for their hard work and dedication over the years,” said Dr. Stefan Sommer, the CEO of ZF Friedrichshafen AG. “In order to continue to be able to meet the demands of an ever more dynamic business environment, Bosch and ZF have decided to change the ownership structure of ZFLS.”
The success of ZFLS does not depend only on the number of innovations the company has brought to market. “It also depends on the associates – their attention to quality, their unfailing commitment, and their identification with the products are crucial success factors for ZF Lenksysteme,” said Wolf-Henning Scheider, member of the board of management of Robert Bosch GmbH and spokesperson for the Automotive Group. “With Bosch as our parent company, we have a reliable partner on our side, with which we can continue to successfully pursue technological innovation and economic growth,” said Dr. Marcus Parche, deputy chairman of the ZFLS board of management.
Innovation-driven company In total, around 1,400 ZFLS associates, or more than one in ten, work in engineering. In 2013, the company spent roughly 238 million euros on research and development. Since its establishment, ZFLS has filed around 750 patents. A main focus of R&D activities is the networking of components into complete systems via specific software. For example, ZFLS made a solution ready for series production using components produced by its parent companies, which allows a car hooked up to a trailer to be maneuvered from the curbside with a smartphone.
A compact, locally-engineered, particularly cost-effective electric power steering system for Asian markets shows that the company not only offers solutions for the premium segment. This means that even customers who drive more affordable compact cars can benefit from the increased efficiency offered by ZFLS products.
Positioned to meet a broad spectrum of market demands “ZFLS’s innovative strength and international presence – particularly in Asia and North America – enable it to benefit from growth in stronger economies,” said Scheider. “ZFLS is especially characterized by its proximity to customers. Whether as a supplier of individual components or provider of complete systems, ZFLS is a respected partner for automakers and also locates operations close to its customers wherever in the world they do business.” As part of its internationalization strategy, ZFLS has recently been focusing its investments on North America and Asia.
Contact person for press inquiries: Robert Bosch GmbH Udo Rügheimer, Phone +49 711 811-6283 René Ziegler, Phone +49 711 811-7639
The Bosch Group is a leading global supplier of technology and services. In 2013, its roughly 281,000 associates generated sales of 46.1 billion euros. (NB: Due to a change in accounting policies, the 2013 figures can only be compared to a limited extent with the 2012 figures). Its operations are divided into four business sectors: Automotive Technology, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 360 subsidiaries and regional companies in some 50 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2013, the Bosch Group invested some 4.5 billion euros in research and development and applied for some 5,000 patents. This is an average of 20 patents per day. The Bosch Group’s products and services are designed to fascinate, and to improve the quality of life by providing solutions which are both innovative and beneficial. In this way, the company offers technology worldwide 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.
ZF is a worldwide leading technology company in driveline and chassis technology with 122 production companies in 26 countries. In 2013, the Group achieved a sales figure of EUR 16.8 billon with approximately 72 600 employees. In order to continue to be successful with innovative products, ZF annually invests about five percent of its sales (2013: EUR 836 million) in research and development. ZF is one of the ten largest automotive suppliers worldwide.
For further press information and photos please visit: www.zf.com.