Service Solutions

Add to my press materials
  • April 29, 2015
  • Press kit
  • Service Solutions
  • Images: 17
  • Videos: 5

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
Back to overview
More
Add to my press materials
  • April 29, 2015
  • Press releases
  • Service Solutions
  • Images: 17
  • Videos: 5

International expansion Bosch opens new Service Center in China Introduction of eCall service in the Chinese market

  • New location in Shanghai to support automotive industry
  • Growing customer demand for mobility services in China
  • Bosch eCall (emergency call) service for first time at Auto Shanghai 2015
Frankfurt/Main, Germany and Shanghai, China – Bosch will establish a new service center in Shanghai, China, end of April 2015. With this, the business unit Bosch Service Solutions, a leading supplier of Business Process Outsourcing and innovative business models, expands its global network and offers mobility services to automotive customers in China. The new service center will be located in the Waigaoqiao Pilot Free Trade Area. Operations will start in the second half of 2015. “China is a strategic growth market for us. The new location in Shanghai will provide us a good operational basis to establish our business in China and effectively support our customers,” says Robert Mulatz, Senior Vice President of Bosch Service Solutions. “We will offer our emergency service Bosch eCall and demonstrate it for the first time in China. At the Auto Shanghai 2015, visitors of the show have the chance to see a demonstration of the solution, that can contribute to save lives in case of an accident,” continues Robert Mulatz.

Mobility services for automotive industry
By opening a new service center in Shanghai, Bosch Service Solutions is responding to the growing customer demand in the Chinese market for mobility services that increase safety and convenience for drivers and passengers. The new location in Shanghai will initially offer Bosch's eCall service. If the system detects that the vehicle has been involved in an accident, this information is sent to a Bosch service center which is manned around the clock. The center's multilingual associates contact the driver for example in English and alert the police as well as emergency services if necessary in Chinese. This works even if the driver is unconscious. Other mobility services such as fleet services are in the planning phase. “Innovative mobility concepts are gaining more importance,” says Mulatz. “Having successfully introduced new mobility service solutions in Europe, we now aim to support our automotive customers with these solutions in China.”

Expansion of international presence
The setup of the new location in Shanghai will increase Bosch Service Solutions' international footprint. Today, some 5,000 associates at 23 locations worldwide provide services in more than 30 languages, offering comprehensive solutions for mobility services, infrastructure and building services, customer interaction services and business support services. Since 2012 the business unit, which is headquartered in Frankfurt/Main, Germany, has been present in China with a service center in Chengdu handling back-office tasks for the Bosch Group.
More
Add to my press materials
  • April 20, 2015
  • Press releases
  • Service Solutions

Bosch Service Solutions: Bosch to realign services Focus on the handling of business processes

  • Bosch Service Solutions aims at becoming the world´s leading provider of business process outsourcing
  • Strong growth with service solutions for automotive and buildings
  • Expansion of international business activities
Frankfurt/Main – Bosch Communication Center, one of the leading providers of business services, is realigning its business and, from September 1, 2014, will be offering its services under the name of Bosch Service Solutions. The main focus of its business activities is the handling of business processes – business process outsourcing. By way of innovative service solutions and new business models developed together with its customers, Bosch Service Solutions is aiming for strong international expansion as well as becoming the world's leading provider of business process outsourcing (BPO). The company is represented at 26 locations in 15 countries, with two new business locations in the USA and the Philippines this year. Additional locations in North America and Asia are planned for the years to come.
Financial experts at the International Data Corporation (IDC) estimate the global market for BPO services will be approx. US $ 210 billion by 2017, with an annual growth of 5.7 percent.

“With our focus on business process outsourcing, we are concentrating on the world's fastest growing market segment among business services,” explains Robert Mulatz, senior vice president of Bosch Service Solutions. “We provide holistic service solutions with IT and consulting expertise in more than 30 languages, in addition to our contact center services. This, together with our many years of experience, means we can offer our customers a unique range of solutions.”

Strong growth through service solutions for automotive and buildings
The range on offer from Bosch Service Solutions focuses on solutions for automotive and buildings as well as customer interaction services. In these areas, the company is able to combine its technical expertise with that of an experienced operator of contact centers. In the field of automotive, for example, the company's eCall automated emergency call system for Mercedes Benz is available in 27 European countries and in ten languages. Another example from this area are pre-bookable, video-monitored truck parking spaces at service stations. Within the field of building services, Bosch Service Solutions offers cloud-based video surveillance with an optional connection to the control center that intervenes in pre-defined circumstances. Finally, examples in the area of customer interaction services are the monitoring and evaluation of social media platforms to effectively support companies' marketing and sales activities.

Bosch Service Solutions is a business unit of Bosch Security Systems and is headquartered in Frankfurt/Main, Germany. For more information visit www.boschservicesolutions.com.
More
Add to my press materials
  • September 01, 2014
  • Press releases
  • Service Solutions
  • Images: 1