Bosch Software Innovations

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  • October 01, 2015
  • Press kit
  • Bosch Software Innovations
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Smart connectivity: Bosch energy and building technology Increasing energy efficiency, comfort, and security

  • Bosch offers energy and building technology with smart connectivity as well as services for industry, businesses, and private households
  • Bosch management board member Hartung: “Our technical systems expertise and understanding of regional markets are decisive success factors.”
  • Building automation eliminates routine tasks and cuts operating costs
  • Top priority for data protection and security
Stuttgart, Germany – Industrial customers and users are increasingly demanding technical solutions that increase comfort, safety and security in factories and apartment blocks while saving energy and cutting costs. They want installation and operation of the technology to be intuitive – and they want it to look good. Bosch’s response to these trends is to offer integrated solutions comprising energy and building technology with smart connectivity as well as services. These cover areas such as heating, hot water, ventilation, air conditioning, protection against intrusion and fires, facility management, power generation, and energy storage. This business is brought together in Bosch’s Energy and Building Technology business sector.

Speaking at a press event in Stuttgart, Dr. Stefan Hartung, the member of the board of management of Robert Bosch GmbH responsible for the Energy and Building Technology business sector, said: “Our wide-ranging technical systems expertise and our understanding of regional markets are decisive success factors. Bosch is well positioned in the market for energy and building technology, in terms of both technology and global footprint. We are strategically expanding our portfolio and our market presence: this is the foundation for further growth.”

Great potential for energy efficiency in industrial plant, machinery, and buildings
Having more than doubled over the last 40 years, worldwide demand for energy is growing faster than ever. According to the International Energy Agency (IEA), energy demand will grow by more than a third by 2040 – accompanied by a 25 percent increase in CO2 emissions. This makes energy efficiency the best place to start to avoid CO2 emissions and meet climate-change targets. The potential for savings is highest in buildings and heating: buildings account for 40 percent of global energy demand, yet electricity accounts for only a small proportion of that energy. In industry, 75 percent of all energy used is in the form of heat. Worldwide, industry could achieve energy and hence cost savings of up to 30 percent by adopting efficient technology.

Connectivity supports automation – increasing comfort and security
As standards of living rise and societies age, particularly in advanced economies, expectations of comfort are growing – and so is the need for security technology such as intrusion and fire protection systems. These developments are driving demand for solutions that automate standard procedures and facilities in buildings and energy systems: such as lighting, heating, air-conditioning, and alarm systems that automatically turn on or off when entering or leaving a building. Users expect the relevant technology to be easy to install and operate, for instance by using a touch screen of the kind they are familiar with from their smart phones and tablets. A prerequisite for building and energy system automation is connectivity between facilities and devices that share information over the internet of things.

“Our connected solutions enable us to make buildings smart and energy systems fit for the future. But connectivity isn’t an end in itself. Users need to see that it really adds value: for example, that it relieves them of the burden of tiresome, time-consuming routine tasks or cuts their operating costs,” Hartung said. “When it comes to connectivity, we are focusing on open standards and open platforms. Our solutions always meet the highest standards of data protection and data security.”

Bosch solutions provide customers with full transparency, allowing them to decide for themselves how their data are used. For example, the company has set up a center of competence that defines uniform standards for the security of connected products.

Bosch to create new division for its thriving services business
Connected solutions pave the way for many new business opportunities, especially for services. In this respect, Bosch has excellent prospects: the company possesses the necessary software know-how and operates its own communication centers, for example for remote monitoring and remote maintenance of buildings, energy systems, and industrial facilities. These also support telematics services, such as the eCall automatic emergency call service, which is available in 16 languages and more than 30 countries for some 1.5 million vehicles. Effective January 1, 2016, Bosch plans to set up a new division, Bosch Global Service Solutions, in order to bring together its range of services more effectively and further expand them.

Business sector further expands its range of products and its market presence
As a foundation for further growth, Bosch is further expanding the range of products and the global market presence of its Energy and Building Technology business sector. In January 2015, for example, the company announced its acquisition of Climatec in the United States. Climatec is recognized in the building industry as an independent provider of services for the integration and automation of essential building systems including power generation, air conditioning, and security. The company offers consulting, planning, installation, and remote maintenance from a single source, and is active across widely differing sectors.

Bosch has founded a joint venture with the Chinese technology company Midea to produce variable refrigerant flow (VRF) systems. These systems employ variable flows of refrigerant to provide commercial buildings with heating and air conditioning. In the future, Bosch will be able to offer industrial customers worldwide a complete range of systems including heating, ventilation, and air conditioning. Start of production is planned for January 2016.

In April 2015, Bosch acquired the connectivity specialist ProSyst, a supplier of gateway software and middleware. In connected – or smart – homes, ProSyst’s software acts as an interpreter for the devices of different manufacturers.

Unrivalled industrial and software know-how for connectivity solutions
Bosch’s activities in widely differing areas of business give the company a unique selling point in cross-domain connectivity: No other company compares when it comes to connecting energy, building, and industrial technology with mobility solutions and consumer goods. Moreover, for some years now, Bosch has been expanding its software competence. Today, one in three of the company’s 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. What is more, Bosch is the only company that is active on all three levels of connectivity: sensor technology, software, and services.

Connected solutions for industrial buildings and the smart home
Bosch offers comprehensive connected solutions for buildings, such as the BIS building integration system, which greatly simplifies and standardizes the central monitoring and control of security and fire protection equipment. Bosch also offers EffiLink, a system platform for services such as the remote monitoring and remote maintenance of building installations. This solution makes it possible to quickly resolve up to 60 percent of faults with no need for a technician on site.

Bosch puts its expertise in connecting industrial buildings to good use in solutions for the smart home. The company is putting in place the technical foundations for this and successively launching its first products. April saw the start-up of mozaiq operations, a Bosch joint venture with ABB and Cisco. Its goal is to establish an open software platform for the smart home – and to ensure it is also open for the developments of suppliers from widely differing sectors. At the IFA trade fair in September, Bosch presented not just ovens and dishwashers, but also refrigerators, washing machines, dryers, and fully automatic coffee machines that can be controlled using a smartphone.

Connected solutions for efficient energy systems
Bosch offers a wide range of connected solutions and services for smart, decentralized power generation, conversion, and storage, as well as software solutions for smart control of power grids. Last spring, the company presented a new generation of connected boilers for residential buildings; installing and operating these boilers is intuitive. Their pioneering design is just as impressive on the inside, offering easy access to all the components – which makes them much easier, quicker, and cheaper to fit and service. Having sold more than 100,000 connected products, Bosch is the leading supplier of smart heating solutions that greatly increase convenience, energy efficiency, operating safety, and service quality. The new “HomeCom” portal provides installation companies with detailed information about their customers’ connected heating systems, including faults and predictions of what might have caused them. End users receive full and clear information about their central heating, along with consumption data and tailored energy efficiency tips.

To optimize the use of solar power in the home, Bosch offers a smart, connected energy system comprising an inverter, a heat pump, and a smart control unit. Any surplus electricity can be used to operate a heat pump. This takes heat from the ambient air, water, or the ground and converts it into power for heating or hot water. A data card enables the contactless installation of the Bosch inverter, making it easy to quickly get the solar energy system up and running. With the monitoring tools, users can call up and view the system’s performance online at any time.

Bosch also offers control for large systems with the new Master Energy Control (MEC System) product family. This enables industrial customers to integrate boilers, combined heat and power plants, and storage into an efficient energy system and control it using an intuitive interface such as a tablet or smartphone. Direct communication between system components, such as CHP plants and steam boilers, increases system efficiency and extends system lifetime, meaning operators save energy, cut costs, and reduce CO2 emissions. Meanwhile, the intuitive user interface allows them to view and evaluate system status quickly and effectively. With the MEC Remote optional remote connection, users can safely access their systems from anywhere.

For manufacturing companies, energy efficiency and reductions in energy costs are becoming an increasingly significant competitive factor, as well as an important consideration when choosing a location. In the field of energy services, Bosch recently began offering an integrated, connected energy efficiency solution that enables industrial customers to achieve energy savings of up to 30 percent.

Bosch develops turnkey storage solutions for power utilities and commercial customers. One example is Second Life Batteries, a Bosch project with BMW and Vattenfall. In Hamburg, used batteries from electric vehicles are being joined together to form a large power storage system. It can provide energy within seconds, and helps stabilize the grid.

Energy storage Braderup
Combined heat and power plant

Contact person for press inquiries:
Christian Hoenicke, phone +49 711 811-6285

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  • October 01, 2015
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  • April 29, 2015
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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

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Bosch key data
Press pictures annual press conference 2015
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