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Annual press conference 2015 Good start to the current year - Bosch improves sales in all business sectors Economic and technological strength for the business of the future

  • Growth targets surpassed in 2014, despite difficult environment
  • Sales growth in all business sectors and regions
  • Sales expected to rise by 3 to 5 percent in 2015
  • Increasing importance of software competence
  • 15,000 software engineers, 3,000 for the internet of things
Stuttgart – The Bosch Group has made a good start to 2015. In the first quarter, sales grew by roughly 13 percent.1 After adjusting for exchange-rate effects, the increase was 5.4 percent. For the current fiscal year, the global supplier of technology and services expects its sales to grow 3 to 5 percent after adjusting for exchange-rate effects. Because these effects are considerable, Bosch expects its nominal sales growth to be higher than this range. Presenting the annual financial statements in Gerlingen, Germany, Dr. Volkmar Denner, the chairman of the Bosch board of management, said: “Our economic and technological strength in our established fields of business allows us to open up new market segments.” Internet-enabled products and internet-based services are one of the focal points of the company's future sales growth. “We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” Denner added. In 2014, Bosch launched many new products and connectivity solutions. They include web-enabled ovens and software solutions for connected heating systems and buildings, as well as for connected industry and connected mobility.

Business developments in 2014: significant progress
In 2014, product innovations again helped Bosch to further improve its market position in many areas. In the past business year, the company increased its sales by a nominal 6.3 percent to 49 billion euros. Adjusted for exchange-rate effects, growth was 7.4 percent. As a result of negative exchange-rate effects to the tune of some 500 million euros, the temporarily strong euro had a considerable impact on the sales figure. This strong development of sales also contributed to an improved result. Earnings before interest and taxes (EBIT) rose to 3 billion euros last year – a year-on-year increase of roughly 10 percent. Bosch thus disclosed an EBIT margin of 6.2 percent in 2014. This is roughly one percentage point better than the value for 2013, adjusted for one-off and extraordinary effects. “Our rigorous work on costs also played a part in this significant improvement in result. In 2014, we were successful despite only moderate global economic growth,” said Dr. Stefan Asenkerschbaumer, the Bosch chief financial officer and deputy chairman of the board of management. Following the complete takeover of BSH Bosch und Siemens Hausgeräte GmbH (now BSH Hausgeräte GmbH), the supplier of technology and services has strengthened its position in the area of smart homes. And with the acquisition of ZF Lenksysteme GmbH (now Robert Bosch Automotive Steering GmbH), Bosch has added to its portfolio in the growth area of automated driving.

Mobility solutions for tomorrow's traffic
For Bosch, automated driving is a significant area of growth. The company is successively launching new driver assistance systems. For example, 2015 will see the start of series production of remote-controlled parking, the traffic jam assist, and an assistance function for evasive maneuvers and turning against oncoming traffic. In the Mobility Solutions business sector, more than 2,000 engineers are working to make the auto pilot for drivers a reality. When it comes to the mobility of the future, Bosch is not only concerned with automation, but also with connectivity and electrification. As of now, the company has received 30 orders relating to electrical powertrains. Each year, Bosch invests nearly 400 million euros in electromobility, not least in further developing battery technology. “We were instrumental in the success story of the diesel. We want to do the same for the electrical powertrain,” Denner said. One key to the market success of electrical powertrains is their suitability for everyday use. For example an app developed by Bosch gives drivers access to a network covering 80 percent of all web-enabled charge spots in Germany. For users, this means that recharging their electric vehicles is easy.

Today, Bosch sees itself as a supplier of mobility solutions that cover more than just the car. In 2014, systems such as gasoline and diesel direct injection were once again extremely successful. Increasingly, they are being joined by software solutions and mobility services. “Connectivity makes completely new solutions possible for the multimodal traffic of the future. And in established areas as well, it will play a significant role in creating customer benefit and conserving resources,” Denner said. Last year, for example, Bosch debuted connected electronic engine management systems for two wheelers. Riders can use their smartphones to read and evaluate vehicle data.

Growing significance of software competence
In the connectivity business, there is a new “3S”: sensors, software, and services. Bosch is the globally leading manufacturer of micromechanical sensors, more commonly known as MEMS sensors. This year, it will manufacture 1.6 billion such “sensory organs,” nearly 25 percent more than in the previous year. Moreover, for some years now, the technology company has been expanding its software competence. Today, one in three of the 45,700 associates working in research and development is a software engineer. Three thousand engineers are working on the internet of things alone. “For Bosch, software expertise is a key competence for the future,” Denner said. “Embedded software is already one of our strong points, and we are successively adding to this with IT software know-how.” Only recently, Bosch acquired the connectivity specialist ProSyst, a supplier of gateway software and middleware. In smart homes, ProSyst software acts as an interpreter for the devices of different manufacturers.

Bosch IoT suite: platform for the internet of things
One central software platform for the internet of things is the Bosch IoT suite. It orchestrates communication and data exchange between web-enabled objects such as factory machinery, heating systems, and security cameras. The Bosch IoT suite can also analyze and process the kind of big data generated in areas such as connected manufacturing. Bosch also makes parts of its IoT suite accessible for open-source developers. “Our IoT suite is meant as an invitation to participate. In shaping the connected world, we put our faith in open solutions, since we believe they will drive forward the manufacturer-independent networking of devices and machines,” said Denner, whose responsibilities on the Bosch board of management include research and advance engineering.

A multitude of services on the internet of things
According to Denner, the business potential of the internet of things lies above all in the services that can be derived from connectivity. “Bosch is in equal measure a supplier of technology and services, and both are an advantage for us in the connectivity business.” Even today, Bosch offers a wide range of service solutions for many industries and customers. For example, its Security Systems division offers telematics services such as eCall for 500,000 vehicles in 16 languages. By the end of 2015, Bosch will have facilitated the connectivity of some 100,000 vehicles for the fleet management of leasing and insurance companies. At the Hannover trade fair, Bosch presented its remote service manager. In connected manufacturing, it makes the remote maintenance of machinery possible.

Data security and data protection in the connected world
With growing connectivity, there is also a growing demand for data security and data protection. “The decisive factor for the widespread acceptance of connected solutions will be data protection, and thus people's trust,” Denner said. In this context, the Bosch CEO called for rapid adoption of the EU General Data Protection Regulation. “Both legally and technologically, there is still much to be done to make Europe truly ready for the internet of things.” In the area of data security, the company is already in good shape. Bosch employs more than 100 associates who specialize in secure data transfer. The company operates a center of competence in which it brings together relevant know-how in areas such as cryptographic methods and the management of certificates.

The business year 2014 by region and business sector

Asia Pacific: growth region number one
In Asia Pacific, Bosch grew its sales 17 percent (19 percent after adjusting for exchange-rate effects) in 2014, to 13 billion euros. At just under 27 percent of total sales revenue, the region's share of sales reached a new high. Sales growth was especially strong in China, rising a nominal 27 percent to 6.4 billion euros.

Americas: significant growth in North America, difficult environment in South America
Our business in North America developed very well, growing 8.6 percent to 8.5 billion euros. Adjusted for exchange rates, the increase was as much as 9.3 percent. In South America, weak automotive production and weakness of the Brazilian real had a negative effect on sales developments. At 1.5 billion euros, sales were down by an exchange rate-adjusted 4.4 percent on the previous year. In nominal terms, the drop in sales was 13 percent.

Europe: economic situation remains difficult
Despite an economic situation that remained difficult, Bosch increased its sales in Europe by 2.1 percent to 26 billion euros. Adjusted for exchange-rate effects, growth was 2.5 percent. The region thus accounted for 53 percent of total sales. In Germany as well, sales were up year on year, at 10.8 billion euros.

Mobility Solutions: growth twice as fast as the market
The Mobility Solutions business sector was once again able to accelerate its rate of growth. Sales rose 8.9 percent (9.9 percent after adjusting for exchange-rate effects) to 33.3 billion euros. Bosch thus grew twice as fast as the automotive market. The business sector's EBIT was 2.4 billion euros, and its EBIT margin 7.2 percent. Without one-off and consolidation effects, the year-on-year improvement in operating result is roughly 0.9 percentage points.

Industrial Technology: back on a growth path
In 2014, the Industrial Technology business sector's sales amounted to 6.7 billion euros, a nominal 2 percent below the previous-year level (1 percent after adjusting for exchange-rate effects). This slight drop is due to a weak market, as well as to the divestment of the sector's pneumatics business in early 2014. Excluding this consolidation effect, sales increased by 2.5 percent, and 3.6 percent after adjusting for exchange-rate effects. All in all, Industrial Technology improved its EBIT to 67 million euros.

Consumer Goods: market leader in power tools
Encouraging growth was posted by the Consumer Goods business sector. Its sales grew 5 percent to 4.2 billion euros, or 7 percent after adjusting for exchange-rate effects. Last year, the business sector generated EBIT of some 550 million euros and an EBIT margin of 13.1 percent. Its EBIT included the pro rata after-tax profit of the BSH Bosch und Siemens Hausgeräte GmbH joint venture.

Energy and Building Technology: enhanced competitiveness
In 2014, the Energy and Building Technology business sector increased its sales by 1.7 percent (2.6 percent after adjusting for exchange-rate effects), to 4.6 billion euros. Its EBIT came to some 170 million euros. EBIT margin stood at 3.7 percent.

Headcount: 12,000 new hires this year
In 2015, Bosch plans to take on some 12,000 graduates worldwide, 1,200 of them in Germany alone. Total Bosch headcount grew by some 9,000 in 2014, to 290,000. Following the integration of the former fifty-fifty joint ventures BSH Bosch und Siemens Hausgeräte GmbH and ZF Lenksysteme GmbH, the Bosch Group now employs roughly 360,000 associates (as per April 1, 2015).

1 Sales figure assumes that the consolidated group includes BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH.

Video materials:
How Bosch is already putting Industry 4.0 into practice
Industry 4.0 video material – application examples
Solutions for tomorrow’s mobility –
    from fully-automatic parking to the connected city

The car as part of the internet – what benefits does this offer to drivers?
Does an electric car drive differently? 18 volunteers find out

Bosch key data
Press pictures annual press conference 2015
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Bosch: Connected Living Is Just a 'Click' Away With a focus on Sensors, Software and Services, Bosch innovates a sustainable, connected future

  • Dr. Werner Struth
    Chairman, Robert Bosch LLC and
    Member of the Board of Management, Robert Bosch GmbH

    at the Bosch Press Conference, International Consumer Electronics Show in Las Vegas, Nevada (USA),
    January 5, 2015

Good morning, everyone!

Thank you for choosing Bosch to start your media coverage at CES!
I hope everyone is having a good and productive morning.
As I started my day – perhaps like you – I...

  • Checked my e-mail…
  • Received a text from my daughter…Hi Dad… Hope u r well. Want to go skiing with friends Saturday.
    Short on cash. Loan? Will pay u back. Promise.
    Maybe you'll hit it big in Vegas and write it off?:)
    Good luck on the press conference. <3
  • And as a result, did some online banking…
  • Got an update on one of my family vehicles…
  • Scanned some headline news…
  • Checked my house to make sure that the doors were locked and the heat turned down.
Imagine… I did all of that “living” with just a few clicks on my smartphone. And, I would guess that most of you did something similar… as journalists – for you – being connected is a way of life.
It is amazing how connected living has revolutionized virtually everything we do. And, we are still in the infancy stage of fully understanding the real impact it will have on our lives.

While many people may not know it, Bosch is actively involved in advancing connected, smart, sustainable and secure living. In this regard, Bosch is not only strengthening its software competence, but also forming alliances with strategic partners. Bosch provides these three Ss in its connectivity business:
  • Sensors…
  • Software and…
  • Service.
Ten years ago if I had polled this audience asking how many people had a smartphone – not just a mobile phone – only a few hands would likely have been raised. Today, to get a similar result, I would have to flip the question around and ask how many people don't have a smartphone. A Nielson Survey conducted in the U.S. in 2013 showed that for the first time, the majority of mobile phone users in the U.S. – some 65 percent – owned a smart device.
Living… is transforming our lives. From homes to mobility, we are adding more comfort and convenience. And – if handled correctly – we are engineering in more safety and greater security. Being connected also grants us access to a tremendous amount of information. It allows us to be a member of many, many communities.

Years ago, community meant the street on which you lived… the town where you grew up… or the place you established roots as an adult. Today, community can still mean all of this, but add to that a virtual gathering that can include a group of people around the world with whom you have a common point of view… a problem to solve… or a lifestyle to which you aspire.

For this week at CES, we will become a community… one that we hope continues beyond this event. To help all of us at CES stay connected, the company Flybits – which our subsidiary Robert Bosch Venture Capital has invested in – has developed a show app – Bosch at CES.

The Bosch at CES app will keep you connected with all of the Bosch-related activities at CES – including speeches, demos and details of the Bosch exhibit and outdoor experience – as well as information about our many products. Staying connected at work, at home and at events like this is becoming a way of life for all of us.

How does Bosch fit into this fast-changing, connected environment?
The simple answer is this: Bosch monitors mega trends. We examine the world, identify consumer needs and seek to innovate solutions that make peoples' lives better. That means all aspects of their life, including their home and their various modes of transportation.

As many of you know, Bosch is a large, multinational corporation with more than 280,000 associates.
Our products touch four main sectors:

Mobility Solutions…

Industrial Technology…

Consumer Goods and…

Energy and Building Technology.

We will focus on three of the four sectors today.

From oxygen sensors to ovens, you will find Bosch in many places… some of which may surprise you… and hopefully all of which will fascinate you!
We make innovative connections that bring real benefit to our customers.
We say our products are “Invented for life.”

Combining Invented for life with the power inherent in the Internet of Things, is fueling even more innovation in our company and placing more technology at the fingertips of consumers around the world.

Bosch has a laser beam focus on innovation in aspects like technology and services and considers the entire user experience. Being able to successfully innovate depends on hiring and retaining top talent who not only understand existing technology… but also can envision what's next.

We count on individuals who have entrepreneurial thinking and can work as part of an integrated team. They take cutting-edge ideas and bring them to market. We spend a considerable amount of resources to help shape and prepare the workforce of the future. In so doing, society benefits and so do we.

Not many people know the full depth and breadth of the Bosch portfolio. Frankly, that is one of the reasons we come to CES. We want to help others understand our company. When people start to look at our portfolio, they begin to realize our company's vision and know that Invented for life is more than a tagline. It guides our products… our people… and our principles.

We are excited to be here again at this great event.

This year the Bosch team is taking a truly international approach to the show. The booth will have products that have been introduced throughout the world. Today, as we have done in years past, we want to give you an overview of Bosch… and what we are showing at CES… and then we invite you to come to the booth… attend presentations being given by Bosch executives… and participate fully in the various demo events.

Bosch is proud to be the presenting sponsor of the Smart Home Marketplace at the Sands Expo… and the Vehicle Intelligence Marketplace at the North Plaza near the Las Vegas Convention Center. A complete listing of all Bosch activities is in your reporter's notebook.

I will cover many technologies today with the purpose of helping you understand Bosch – but please know there is much more to Bosch than what I will present today.
Now, let's take a look at two areas of our lives on which connected living is having a tremendous influence:
Connected Home… and
Connected Mobility

It is amazing to imagine that the connectivity that we will hear so much about at CES can be attributed to small sensors like this.
All objects around us can be fitted with sensors and assigned their very own web address for exchanging data. Connectivity and sensors are the cornerstones of the Internet of Things. It is what makes connected living happen. Bosch is the world leader in creating micro-electro-mechanical sensors – or MEMS.

We provide sensors for a wide range of automotive and consumer electronics applications. More than 50 percent of the smartphones in the world are equipped with a Bosch sensor. So chances are that you have a Bosch sensor in your smartphone… in your home appliance… or in your vehicle.

Last year at CES, Bosch unveiled a world exclusive in environmental sensor technology – an integrated unit that combines sensors for pressure, humidity, and temperature in a single housing. Continuing the tradition, today Bosch is announcing the next step of environmental sensing – the BME680 Gas Sensor. This is the world's first combo sensor – measuring humidity, pressure, temperature and gas,- in a 3 mm by 3 mm package. This sensor can be used in a myriad of ways… to
  • Monitor and manage air quality in a room by opening and closing windows or managing air flow.
  • It can monitor personal fitness and offer you recommendations to secure your personal well-being.
  • It is key for home automation and environmental monitoring, as well as personal weather forecasts.
Bosch Sensortec is continuously developing innovative sensor solutions for wearables and the Internet of Things.

Achieving a green, sustainable life is important to many people, but often people are not certain where or how to begin. Bosch enables a net-zero energy consumption lifestyle. Bosch's Thermotechnology division and Bosch PowerTec Division are teaming up to make this lifestyle readily attainable. Here's how…

Bosch presents innovative solutions for decentralized energy systems. Smart connectivity can be implemented for electrical and thermal energy using a photovoltaic system combined with the latest in heat pump technology.

This solution allows users to consume the lion's share of the electricity they themselves generate from solar power in their own homes – which dramatically reduces their electricity costs – while also powering the heat pump so it can extract heat from air, water, or the ground and convert it into energy that can be used for heat or hot water.

The Bosch system features an energy management system that knows when the heat pump requires electricity and – provided there has been enough sunshine – answers that need with solar power.

At the heart of the smart control system is the e.Control, which is connected to the household's electric meter. It monitors power flows within the home, giving priority to home appliances currently in operation. Integrating Bosch Hybrid storage into this energy system boosts the degree to which a household can make use of self-generated electricity from the photovoltaic system. Even when the sky is overcast or after the sun sets, the storage system continues to provide the heat pump with a reliable supply of electricity.

We're also presenting a WiFi-enabled Remote Room Controller with a touch screen and a corresponding app that allows users to control their heating systems via their smartphone.

From wherever they are – by using the free app – homeowners can take complete control of their heating and hot water. The app also provides valuable information on gas consumption.

As Bosch develops these various green, sustainable technologies, we also seek to collaborate to develop standards that will benefit the end consumer. For example, to further advance smart home technologies…
  • Bosch...
  • ABB and...
  • Cisco…
plan to establish an international joint venture that will develop and operate an open software platform for smart homes. The companies also intend to establish a partner alliance that will be open to all manufacturers, developers and suppliers of products and services in the area of smart homes. The joint venture is subject to approval by antitrust authorities.

Now, let's take a closer look inside the home… to the kitchen, which is likely the most utilized area in the house. Last fall in Europe, Bosch presented its first networked home appliances that can be controlled with an app.

Called Home Connect, this app acts as a control center for the family of Bosch-related brand appliances that have a WirelessLan communication module configured for the app. Consumers can use this app – which is built on an open platform – via their smartphone or tablet .And even if they are not at home, consumers can control appliances like the oven, the dishwasher or the refrigerator.

With Home Connect, users can take advantage of intelligent functionality… schedule appliances to match their daily routine; view refrigerator contents when not at home; obtain operating alerts, troubleshooting and remote diagnostics information; as well as monitor water and energy consumption.

Security Systems are becoming increasingly important in our globalized world; not only for companies and the public sector, but also for private users.

Bosch Security Systems is working around the globe to keep individual homes and large commercial venues safe and secure. For example, in Singapore, the Star shopping mall with more than 100 shops and restaurants is an architectural stand-out. It also features a comprehensive security solution created by Bosch. Security for this multifunctional building includes systems for video surveillance, public address and access control. The entire security system is managed through Bosch's Building Integration System.

Bosch Security Systems already offers customers a broad portfolio of IP products. Our connected devices are becoming more and more intelligent. As a leading manufacturer of video systems, we are already very far advanced in this product field.

The B-Series Control Panels are a family of flexible control panels that include two models that meet the needs of a wide variety of facility configurations. The series is ideal for retail stores, banks, office buildings, government locations, schools and many other commercial and residential applications.

IP camera integration with the control panels allows users to verify if alarms indicate a true risk through video snapshots sent via e-mail or through live camera access from a smartphone. Text messages also notify users of events – in a variety of languages – and the Remote Security Control App for iOS and Android devices provides convenient monitoring and operating tools.

Later this month, Bosch will launch the Z-Wave Home Control Gateway. It will allow integrators to connect B-Series Control Panels from Bosch with Z-Wave devices – including lighting controls, door locks, temperature sensors, IP cameras and more – to provide their customers with home automation and remote monitoring capabilities.

For example, users can leave home and select “Away” on a smartphone app to automatically lock the doors, arm the security system, turn off interior lights and adjust the thermostat. Home control becomes effortless.

As we build smart, green, sustainable homes, Bosch Power Tools is playing a key role in providing professional contractors with high-quality, long-lasting, energy-efficient tools. Knowing that time is money for the professional, Bosch recently introduced the Power Ready Wireless Charging System. This system means that cordless tools will now always be ready to use.

Bosch is the world's first supplier to enable the advantages of inductive energy transfer to be used with cordless tools. With the launch of its Power Ready Wireless Charging System, Bosch is opening up a new dimension in charging technology and providing new ways to make working with cordless tools efficient, cost saving and time saving.

The benefits are many. Professional trades people are mobile. Previously, they needed to build time in to recharge their power tool batteries.
Now batteries no longer need to be removed, and the tool can simply be parked in the charger – battery and all – in between tasks. We have changed downtime into productive charging time.

Also on display is the new Dremel 3D Idea Builder. It is the first 3D printer for everyone. It's easy to use and comes with a suite of design tools and support. As the only UL Certified 3D printer on the market, it is the ideal choice for home use.
With the launch of the Dremel 3D Idea Builder, Dremel is bringing a new era of creativity and inspiration to a community of makers seeking to bring an endless array of ideas to life. It is perfect for prototyping.

Knowing the strength of our individual products, it only makes sense that we would bundle them to make sustainable, smart and secure homes and communities – more accessible. And that is just what several of our divisions are doing. In fact, three such communities are scheduled to launch in 2015 in the U.S. The end result will be that some 17,000 homes in Washington state, Texas and Colorado – will utilize a suite of smart, sustainable Bosch technologies from several divisions.

Finding unique and entrepreneurial ways to foster innovation is what Robert Bosch Venture Capital does best. It searches out some of the best and brightest entrepreneurial start-ups – or established companies – that need an infusion of capital to take them to the next level.

Here is an example:
Today, cable/telephone/internet providers are looking beyond their current four areas of focus, which are: telephone, cable TV, internet access and cell phone services – and are entering into a fifth area by offering smart home services like home security.

Bosch Security Systems and GreenPeak Technologies, a leading smart home radio frequency communications semiconductor company, have joined forces to serve operators with services like Home Security and Home Care.

Offering a complete end-to-end solution of home security – integrating GreenPeak RF technology with Bosch sensors and security services – enables the partners to offer a scalable system that ranges from delivering only a sensor to a complete cloud-based home security service solution. This partnership enables operators to deliver a cost-efficient, end-to-end service, with a shorter time to market.

Smart home services like remote control of doors, thermostats and lighting, all centrally monitored and controlled by the set-to-box/gateway, are very enticing for cable and service operators.

We've talked about connected home and keeping you safe. Now I'd like to talk about Connected Mobility and how Bosch keeps you safe and secure on the road.

Focusing on
  • electrification…
  • automation - albeit with a new twist - and...
  • connectivity…
Bosch's mobility sector has developed a comprehensive portfolio of technologies to meet drivers' increasing needs for cleaner, safer, more efficient, and more comfortable driving experiences.

Besides improving the conventional powertrain, electrification will play an increasingly important role in the future of mobility. Our portfolio of electric solutions encompasses a broad spectrum from eBikes and e-scooters, through mild and plug-in hybrids, all the way to fully electric powertrains.

Also for electric vehicles, Bosch and BMW announced a DC fast charger last year. Smaller and more affordable than other available fast chargers, this DC fast charger can charge a BMW i3 battery to 80 percent... in just 30 minutes. It's also compatible with some other electric vehicles.

And at the other end of the electromobility spectrum is the eBike, for which Bosch produces drive systems. With eBikes, electrical energy supports muscle power during pedaling. Bosch has become the market leader for eBike drive systems in Europe. We are excited to see them launch in the U.S.

Be sure to check out the eBike at the Vehicle Intelligence Marketplace where you can experience Bosch's performance drive system.

At the Bosch booth, we will exhibit a new technology for eBike that will soon be introduced. Nyon is Bosch's first all-in-one eBike cycle computer with an integrated navigation and fitness function. Equipped with comprehensive basic functions, Nyon can be adapted to the needs of the rider with a smartphone app and online portal. Its housing is waterproof and rugged, so it can be used in the rain and off-road. Twelve bike manufacturers will offer the Nyon in Europe for the 2015 model year.

The second area of focus for Bosch's mobility sector is automation. For us, that translates into our vision for an injury-free, and, ultimately, accident-free future. That is one reason that Bosch invests in developing automated driving functions.

Bosch develops a variety of sensors that enable automated driving. For example, ultrasonic sensors and near-range cameras enable automated parking… radar sensors and mono and stereo-video cameras enable driver assistance systems.

Here at CES, Bosch will showcase one of its advanced safety and driver assistance systems: traffic jam assist.

By coupling radar and video technology, traffic jam assist controls longitudinal and lateral movements of the vehicle in congested traffic, returning control to the driver if necessary to change lanes or if obstacles are detected.

The third area of focus for Bosch's mobility sector is connectivity.

Bosch is making cars an active part of the internet – and bringing drivers a range of benefits. By networking vehicles, Bosch is improving the comfort, safety and efficiency of tomorrow's mobility.

At the same time, Bosch is bringing the fascination of the digital world onto the streets of the physical world. In this, the company is pursuing three strategic objectives.
  • First, Bosch is making the internet an intuitive in-car experience.
  • Second, Bosch is connecting cars to the internet and creating driver assistance functions with added value.
  • And finally, Bosch is networking cars with traffic infrastructure.
In the future, we will see completely new functions emerge. For instance, in-car augmented reality will connect the virtual world with the physical world. Think of a soccer game on TV… augmented reality is what allows viewers to see the offside line blended in as if it were part of the field. The windshield will become the vehicle's main display area, bringing all vehicle information as well as data on the surroundings into the driver's field of vision. Connected mobility makes driving safer and offers greater comfort and convenience.

Bosch provides high-quality infotainment and navigation systems for connected content and services. As the world becomes increasingly more connected, consumers want their vehicle to be an extension of their lifestyle. Bosch's mySPIN smartphone integration creates a device-to-vehicle link that provides users with the opportunity to continue using certain apps – both Apple and Android – through the vehicle's central display. The apps are optimized for in-vehicle use, thus minimizing distraction.

The instrument cluster is another area where Bosch is making a technology leap and adding versatility to the vehicle. Our display-based instrument cluster, which was recently introduced in the BMW i8 and Audi TT, provides maximum flexibility for processing and displaying content with great clarity.

And that's one of the keys to success for driver assistance and multimedia systems – the clarity with which they display information and their subsequent ease of use.

This is where human machine interface plays an important role. The driver must be able to understand and operate the systems intuitively, using, for example, natural voice input and head-up displays.

You'll see one of Bosch's head-up displays at our booth. In this combiner display, not only is information – like speed, navigation and warnings – presented directly in the driver's field of vision, the image generated is combined with the scenery outside the vehicle so that the two images appear to merge with each other about two meters in front of the vehicle.

Instead of projecting the information on the windshield, it is projected onto a plastic screen that becomes literally invisible to the driver.
But connectivity is more than the interplay of different vehicle systems. It is also the connection of the vehicle to the cloud. As you can see, we are networking vehicles and supporting a large number of vehicle-relevant apps. However, in doing so, we must ensure that the high standard of security in the automotive electronics is maintained.

Using dual architectures, we create a strict separation between functions that are relevant for driving, such as driver assistance, and ones that are not, such as infotainment. In the future, a hardware security module will also safeguard the communication in each control unit.
At the booth, ESCRYPT will highlight software updates over the air. Secure over-the-air updates allow new business fields for automakers and Tier 1 suppliers. This new technology is fast and secure and guarantees the highest level of functional safety.

In addition to the Bosch technology on the vehicles you drive, Bosch is also working behind the scenes. In addition to the connected vehicle, we are also working on the connected repair shop.

Digital communication and data networking are playing an increasingly important role in repair shops. The repair shop of the future will be able to continuously monitor the status of customers' vehicles and recommend a repair in advance. In addition, parts can be ordered and employees' work time can be better organized. Once a customer arrives for a service appointment, Bosch's flex inspect component automatically reads the fault memory and checks the battery, the tire inflation pressure and the chassis geometry.

To further assist automotive technicians, Bosch is developing augmented reality applications that provide computer-assisted information for technicians. At Bosch, we are developing applications that use augmented reality to show the technician three-dimensional work instructions, required tools and even training videos. As soon as the camera of a tablet scans a motor component, the contextual information is superimposed onto the physical object – exactly where it is needed. This eliminates time-consuming consultation of service manuals.
Augmented reality facilitates the repair process, improves the quality of the work and minimizes the effort.

So, ladies and gentlemen, I hope that you share Bosch's excitement for the tremendous possibilities before us… as we continue to merge our Invented for life product portfolio with the fast-evolving Internet of Things. Integrating the physical and virtual worlds promises to enrich our lives, provide tremendous amounts of important information and allow us access to many communities, large and small.

Whether we realize it or not, our lives are being revolutionized by technology. The lifestyle to which we aspire is only a few clicks away.

Speaking of that, my daughter aspires to hit the ski slopes, so this is how I responded to her earlier text: “Check's in the “mail.” :) Dad”. For those of you who have teenagers, perhaps you can relate.

Thank you, ladies and gentlemen, for your attention.
Now, let's open the floor to your questions…

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  • January 05, 2015
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