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Following the record high in 2015, the Bosch Group expects to maintain its growth momentum this year. Despite the low economic development prospects and unstable regional politics, Bosch is a leading technology and service provider and expects sales growth of 3% to 5% in 2016. Dr. Volkermar Dunner, Chairman of Bosch Group's Board of Directors, said at the group's annual press conference at the Bosch Central Research Institute: "We plan to go hand in hand with innovative products and services. Currently, we are based on our hardware business. With extensive foundation and experience, we are expanding the use of a series of interconnected services.In the future, customers will not only be able to reach Bosch products and services in the car and kitchen.The interconnected services will make Bosch a loyal partner in many aspects of the daily life of customers. â€
FY2015: Performance Recreates Record Highs
Bosch Group Chairman Waldmar Dunner attends the Group's Annual Press Conference
In 2015, Bosch Group's sales reached a record high, reaching 70.6 billion euros. For the acquisition of two former 50-50 joint ventures, Boxi Home Appliances Group and Bosch Steering Systems Co., Ltd., Bosch Group's overall sales increased nearly 22 billion euros, an increase of 44%. Bosch's operating results also showed strong growth momentum. Calculated on the same basis, the Group's sales increased by 10%. Excluding exchange rate factors, sales increased by 3.8%. Except industrial technology business, the other three major business sectors all showed double-digit growth in 2015.
In addition, the overall performance of the Bosch Group in 2015 also increased again. EBIT also hit a new high of 4.6 billion euros, and the EBIT margin was 6.5%. This also means that EBIT before operating business increased by 24% year-on-year to approximately 900 million euros.
Service Business Supplements Future Broad Hardware Business
Bosch’s strategic goals have now gone beyond pure hardware products, but are dedicated to a full range of interconnected service solutions. In the interconnection business, Bosch emphasized three "S", namely sensors, software and services. Dr. Dunner said: "Services are becoming an integral part of our product business. The sales of each hardware product should be equipped with corresponding services. Bosch's extensive business portfolio, and its strength in software and sensors are ours. The development of interconnected services offers unique advantages.†No other company can be as diverse as Bosch in such diverse areas as automobiles and homes, or even entire cities. At present, nearly half of Bosch's electronic product categories have networking capabilities. The Group is planning to gradually expand its service business in its four business segments.
Connected Industry: Save costs and achieve sales of €1 billion
Bosch practices interconnected industry in more than 250 factories around the world
In the connected industry, ie Industry 4.0, Bosch has now taken the lead and has benefited from more than 250 factories around the world. The company also converts its internal experience into a third-party service, one of which is “production performance management†that enables real-time visualization of product data and automatic implementation of maintenance processes. By 2020, Bosch expects that interconnected industrial solutions will help the Group save costs of 1 billion euros, while also creating an additional 1 billion euros in sales.
Smart Home: New smart home products will debut in autumn 2016
Interconnection will also bring us more convenient and comfortable smart home life. At the beginning of this year, Bosch released a new smart home system that provides a series of simple and secure solutions for smart homes. More products of this system will be released in 2016. One of them is the smoke alarm device. In addition to the commonly used functions of the device itself, it can also provide security protection for outdoor vacations. Bosch expects that the scale of the global smart home market will reach 10 billion euros at the earliest in 2017. By 2020, approximately 15% of the world's 230 million households will be equipped with smart home solutions.
Bosch Cloud Platform: an integral part of the service business
One of the core services of Bosch is Bosch's own established and owned cloud platform. This platform provides a technical infrastructure for realizing various types of large-scale interconnect solutions. In 2016, Bosch will have about 50 applications that will operate on this cloud platform and will provide services to other companies since 2017.
Employees: Demand IT and software talent
Bosch Group plans to recruit approximately 14,000 university graduates worldwide
In 2015, Bosch Group's global workforce increased by 17,600 (based on the same basis), bringing the total number to approximately 375,000. This year, the Bosch Group plans to recruit approximately 14,000 university graduates worldwide, with a large demand for software professionals. Currently, nearly half of Bosch's global vacancies are related to software.
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