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Robert Bosch GmbHRobert-Bosch-Platz 1D-70839 Gerlingen-Schillerhöhe
Mailing address:Postfach 10 60 50D-70049 Stuttgart
Telephone + 49 711 8 11- 0Fax + 49 711 8 11- 66 30
www.bosch.de KH
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Annual Report1998
Key Figures
Front-page illustration:We introduced high-pressureinjection systems for direct-injection diesel engines. Shown here is the production of Common Rail injectors in our Bamberg plant.
Bosch Group Worldwide 1998 1997
Sales 50,333 46,851percentage change versus prior year + 7.4 + 13.9
Foreign salesas a percentage of sales 65 65
Research and development expense 3,478 3,257as a percentage of sales 6.9 7.0
Investments in tangible fixed assets 3,773 2,905as a percentage of depreciation 148 125
Number of employeesaverage for the year 188,017 179,719as of January1, 1999/1998 189,537 180,639
Total assets 36,343 34,906
Equity capital 11,869 11,377as a percentage of total assets 33 33
Net income for the year 850 1,659
Unappropriated earnings (Dividends of Robert Bosch GmbH) 80 2,209
Values in million DM
Bosch GroupBusiness Sectors and Divisions
ABS and braking systems
Private networksPublic networks
Broadband networksTerminals
Aerospace engineeringSecurity systems
Bodywork electrics
Mobile communications1
Aftermarket products, after-sales service, test equipment and technology
Lighting technology Engine-management systems – gasoline
Fuel-injection technology – diesel On-board electronics
Semiconductors and control units Starters and alternators
Automotive Equipment
Communications Technology2
Power tools Thermotechnology Household appliances3
Consumer Goods
Automation technology Packaging machinery
Capital Goods
1 Blaupunkt-Werke GmbH (100 % Bosch)2 Bosch Telecom GmbH (100 % Bosch) and product groups3 BSH Bosch und Siemens Hausgeräte GmbH (50 % Bosch) Status as of January 1, 1999
Table of Contents
3
Page
Supervisory Council 4
Management 5
Supervisory Council Report 6
Management Report 8
Automotive Equipment Business Sector 14
Communications Technology Business Sector 22
Consumer Goods Business Sector 26
Capital Goods Business Sector 30
International Business 32
Research and Development 36
Employees of the Bosch Group 38
Financial Statements of the Bosch Group Worldwide 40
Major Companies of the Bosch Group Worldwide 54
Financial Statements of Robert Bosch GmbH 56
Ten Year Statistics Bosch Group Worldwide 58
Board of Management
Hermann SchollChairman
Heiner Gutberletuntil December 31, 1998
Rainer Hahn
Claus Dieter Hoffmannas of July 1, 1998
Robert S. Oswaldas of July 1, 1998
Tilman Todenhöfer
Hubert Zimmereruntil June 30, 1999
Associate Members to theBoard of Management
Werner Andexseruntil November 26, 1998
Siegfried Dais
Hans Hugendubeluntil December 31, 1998
Stephan Rojahn
Gotthard Romberg
Effective July 1, 1999
Board of Management
Hermann SchollChairman
Rainer Hahn
Claus Dieter Hoffmann
Robert S. Oswald
Stephan Rojahn
Gotthard Romberg
Tilman Todenhöfer
Deputy Members of theBoard of Management
Bernd Bohr
Wolfgang Chur
Siegfried Dais
Franz Fehrenbach
Management
5
Dr. phil. Dr. rer. oec. h.c.Marcus Bierich, StuttgartChairmanFormer Chairman of the Board ofManagement of Robert Bosch GmbH
Walter Bauer, KohlbergDeputy ChairmanChairman of the Joint Shop Councilof Robert Bosch GmbH as well as ofthe Combined Shop Council, andChairman of the Shop Council of theReutlingen Plant
Dr. jur. Peter Adolff, Stuttgart, former Member of the Board ofManagement of Allianz Versicherungs-Aktiengesellschaft
Knut Angstenberger, StuttgartDepartment Manager at the FeuerbachPlant, and Chairman of the JointSpeaker Group of Robert Bosch GmbHand of the Group Speaker Committee
Dr. h.c. Bo Erik Berggren, StockholmDeputy Chairman of the Boardof Directors of Investor AB
Dr. Ulrich Cartellieri, FrankfurtMember of the Supervisory Council of Deutsche Bank AG
Dr.-Ing. Wolfgang Eychmüller,Ulm/DonauChairman of the Board of Managementof Wieland-Werke AG
Ruth Fischer-Pusch, StuttgartTrade Unions of the Metal Industry,District Management Baden-Württemberg
Hans-Henning Funk, HildesheimChairman of the Shop Council of the Hildesheim Plant and Member of the Joint Shop Council of Robert Bosch GmbH
Dr. jur. Karl Gutbrod, StuttgartFormer Member of the Board of Management of Robert Bosch GmbHChairman of the Board of Trustees ofRobert Bosch Stiftung GmbH
Gudrun Hamacher, FrankfurtManaging Member of the Board ofDirectors of the Trade Unions of theMetal Industry
Hans-Joachim Jaquet,Mörfelden-WalldorfChairman of the Joint Shop Council ofBosch Telecom GmbH and Chairmanof the Shop Council of Bosch TelecomGmbH at Frankfurt
Dieter Klein, WolfersheimChairman of the Shop Council of theHomburg Plant of Robert Bosch GmbHand Member of the Joint Shop Councilof Robert Bosch GmbHas of April 1, 1999
Olaf Kunz, FrankfurtManaging Director of the Trade Unionsof the Metal Industry, Department forUnion Policy
Prof. Gero Madelung, MunichFormerly Technical University MunichChair of Aviation Technology
Prof. Dr. rer. nat.Hans-Joachim Queisser, StuttgartFormerly Director at the Max-Planck-Institute for Solid-State Research
Urs B. Rinderknecht, EnnetbadenChief Executive of UBS AG
Gerhard Sautter, ErdmannhausenChairman of the Shop Council of theFeuerbach Plant, and Deputy Chairmanof the Joint Shop Council of RobertBosch GmbH and the Combined ShopCouncil
Hans Peter Stihl, RemseckChairman of the Board of Managementof Andreas Stihl AG & Co
Manfred Wenkemann, HomburgChairman of the Shop Council of theHomburg Plant of Robert Bosch GmbHand Member of the Joint Shop Councilof Robert Bosch GmbHuntil March 31, 1999
Hans Wolff, BambergChairman of the Shop Council of the Bamberg Plant and Member of the Joint Shop Council of Robert Bosch GmbH
Supervisory Council
4
In its sessions and using writtenmonthly reports, the SupervisoryCouncil of Robert Bosch GmbH keptitself regularly informed about theprogress of business and the com-pany’s situation. Business develop-ments, financial situation, investmentplans, as well as new technical devel-opments were presented and dis-cussed in detail. Reporting and discus-sion included all important companiesof the Bosch Group.
Schitag Ernst & Young Deutsche Allge-meine Treuhand AG, Stuttgart, auditedthe accounting and financial state-ments of Robert Bosch GmbH and theBosch Group. The auditors in all casesgave their unqualified opinion. TheSupervisory Council concurs with theaudit findings, and recommends thatthe shareholders approve the financialstatements of Robert Bosch GmbH andfollow the proposal of the Board ofManagement for the disposition of netincome.
As of April 21, 1998, Dr. Robert E.Ehret, Jörg A. Henle, and Dr. Wolf-gang Hugo left the Supervisory Coun-cil as new members were elected. TheCouncil thanks these gentlemen fortheir long years of work. As of thesame date, the shareholders electedDr. Ulrich Cartellieri, Urs B. Rinder-knecht, and Hans Peter Stihl to mem-bership of the Council.
Also as of April 21, 1998, the employeerepresentatives Rudolf Baron andDietfried Blanarsch left the Supervi-sory Council. Newly elected wereHans-Joachim Jaquet and ManfredWenkemann. The latter retired as ofMarch 31, 1999 and as a result left theSupervisory Council. Dieter Klein wasappointed as his successor by theStuttgart court per April 1, 1999. TheCouncil expresses its appreciation forthe constructive teamwork of the em-ployee representative members leav-ing the Council.
As of July 1, 1998, the former associatemembers of the Board of Manage-ment Dr. Claus Dieter Hoffmann andRobert S. Oswald became full mem-bers of the Board.
Upon reaching retirement age, Dr.Heiner Gutberlet left the Board ofManagement of Robert Bosch GmbHas of December 31, 1998. He has mean-while been elected to the Board ofTrustees of the Robert Bosch StiftungGmbH. Hans Hugendubel took earlyretirement as of December 31, 1998.Dr. Werner Andexser also left the com-pany. The Council expresses its thanksto these gentlemen for their committedwork.
The Supervisory Council of RobertBosch GmbH, acting on the recom-mendation of the shareholders, at itsmeeting of April 13, 1999, appointedthe former associate members to theBoard of Management Stephan Rojahnand Gotthard Romberg as full mem-bers of the Board of Management, andDr. Siegfried Dais as deputy member,all effective as of July 1, 1999. In addi-tion, the Council, following the recom-mendation of the shareholders, namedDr. Bernd Bohr, previously in charge of development at the ABS and brak-ing systems division, Wolfgang Chur,previously speaker for the manage-ment of the mobile communicationsdivision, and Franz Fehrenbach, previ-ously speaker for the management ofthe diesel fuel-injection technologydivision, to deputy members of theBoard of Management, all effective asof July1, 1999.
Stuttgart, April 1999For the Supervisory CouncilDr. Marcus BierichChairman
Supervisory Council Report
6
Photo at right:State-of-the-art automotive elec-tronics by Bosch: Automatic appli-cation of computer chips to micro-hybrids at the Reutlingen plant
The Communications Technology Busi-ness Sector was able to keep its saleswith 5.0 billion DM at the level of theprevious year. Sales of the public net-works division fell primarily as theresult of the financial crisis in the FarEast, the sluggish release of frequenciesfor the new radio-relay technologies inWestern Europe and delays with majorprojects in the USA. This was compen-sated for by the expansion of themobile-telephone business.
Integration in on-board electronics
In 1998, we continued the further ex-pansion of areas of activity in automo-tive equipment. We took into accountthe increasing importance of conve-nience and information electronics inthe automobile and – as of July 1, 1998– concentrated our activities in bodyelectronics in a new division On-BoardElectronics. We thus created the condi-tions necessary to be able to offer com-plete systems and software for state-of-the-art vehicle electrical system net-works in the future.
We combined the product groups fordisplay systems, locking systems, cen-tral electrics including relays, vehiclesecurity systems and convenience elec-tronics. The On-Board Electronics Division, which will involve itself in-creasingly with integrating compo-nents into modules, also includes Robert Bosch Multimedia-SystemeGmbH & Co KG, Hildesheim, andGKR Gesellschaft zur Fahrzeugklima-regelung mbH, Schwieberdingen near
Stuttgart. GKR develops and sells elec-tronic controls and control elementsfor heating and air-conditioning of au-tomobiles; the company was foundedin 1989 as a joint venture of Bosch and Behr GmbH & Co, Stuttgart. Weacquired our partner’s interest as ofDecember 31, 1998.
Commitment to the developmentof electronic steering systems
Future steering systems require furtherintegration of mechanical, hydraulicand electronic components and there-fore close cooperation between a steer-ing specialist and an expert electronicsmanufacturer. In addition, electroni-cally controlled steering opens the pos-sibility for future integration with vehi-cle dynamics control ESP (ElectronicStability Program) in order to furtherincrease its effectiveness.
We established a 50–50 joint venturewith ZF Friedrichshafen AG, Fried-richshafen, which started operations onJanuary 1, 1999. ZF is contributing itsentire passenger car and commercialvehicle steering activities to ZF Lenk-systeme GmbH, Schwäbisch Gmünd;this company combines the know-howof both partners, and will supply theautomobile industry worldwide withconventional and electric steering sys-tems.
Joint venture for air brakes andlighting technology
Our activities in the areas of air brakesand ABS for commercial vehicles werecontributed to Knorr-Bremse Systemefür Nutzfahrzeuge GmbH, Munich. Wehold a 20 % interest in this company.Other shareholders are Knorr-BremseAG, Munich, and AlliedSignal Inc,Morristown, New Jersey (USA).
In April of 1999 we founded a jointventure with Magneti Marelli SpA,Milan, in which both companies havecombined their worldwide activities inthe area of automotive lighting tech-nology.
Vehicle proving grounds in Boxberg completed
After two years of construction wecommenced operation in June 1998 of the Boxberg (North Württemberg)testing center with its many test tracks.The proving grounds, with an area ofalmost 95 hectares, in which we in-vested about 100 million DM, are ofgreat importance for the developmentand testing of new and visionary prod-ucts in automotive technology.
The grounds consist of several trackmodules and are enclosed by a three-lane oval, three kilometers long. Theinstallation serves primarily the furtherdevelopment of electronic steering andcontrol systems – from ABS and ESPvia engine management to speed con-trol ACC (Adaptive Cruise Control).
9
ManagementReport
8
Growth of the world economy weakenedin 1998 to approximately 2%. Of deci-sive influence for this was the worsen-ing economic crisis in many countries inEast and Southeast Asia and its spreadto other countries, especially Brazil andRussia. From the middle of 1998, thisalso negatively affected the economiesin the western industrial nations; eco-nomic growth in the USA was still at3.5%, in the European Union 2.8%.
Business at the Bosch Group in 1998was on the whole satisfactory. Targetedsales were exceeded despite setbacks inthe crisis regions; financial results, how-ever, did not meet our expectations.
Stronger sales growth in the first half year
Consolidated sales of the Bosch Groupincreased in 1998 by 7.4 % to 50.3 bil-lion DM. Growth took place primarilyduring the first half of the year. Al-though we experienced a growth rateof 8.9 % in the first six months, growthin the second half of the year fell bynearly half of that.
Sales in Germany in 1998 rose by 9.6 %to 17.8 billion DM. This increase was –in contrast to prior years – significantlygreater than outside Germany; there,sales grew only 6.3 % to 32.5 billionDM. The smaller growth in foreignsales was primarily the result of largesales declines in the crisis regions. How-ever, we did well in our important mar-kets of Western Europe and NorthAmerica with growth rates of 12 % and8.0 % respectively. Foreign sales as aportion of total sales, which was 65 % in1997, remained unchanged.
Strong increase in the automotive equipment area
Our growth resulted primarily fromthe development of the AutomotiveEquipment Business Sector; its salesgrew by 11 % to 31.8 billion DM. Weparticipated in the continuing boom inthe automobile business in WesternEurope, especially in Germany.
Our diesel injection systems businessshowed particularly strong growth.The rising production of diesel-drivenvehicles in Western Europe and therapidly increasing proportion withhigh-pressure direct injection againmade itself felt in this area. In order tosatisfy the brisk demand for the newinjection systems which we introducedin recent years, we were forced to putproduction into high gear earlier thanplanned. That led to instances of strained employment and delivery situations.
After starting mass production of high-pressure distributor pumps in 1996 andof Common Rail Systems CRS in 1997,in 1998 we commenced full productionof the Unit Injector System UIS and of the new electronically controlledradial-piston distributor pump for pas-senger-car diesel engines with directfuel injection in 1998.
In the Capital Goods Business Sector –automation technology and packagingmachinery – sales increased by 3.2 % to2.2 billion DM. Reduced demands forpower tools in the Far East, and ag-gressive price competition in WestEuropean thermotechnology markets,represented the primary reasons forConsumer Goods Business Sector sales increasing by only 2.7 % to 11.3 billionDM.
0 10 20 30 40 50 60
Sales(billion DM)Progress 1994–1998
1994
1995
1996
1997
1998
41.1
34.5
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46.9
35.8
50.3
Breakdown of sales(as a percentage)by business sectors 1998
0 10 20 30 40 50 60 70 80 90 100
10.0
4.3
63.2
22.5
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Automotive Equipment
Communications Technology
Consumer Goods
Capital Goods
Further strengthening of presencein world markets
In Korea we operate in total with sevencompanies at five locations. We pro-duce components for diesel and gaso-line injection, antilock braking sys-tems, electronic controllers and small-power motors. We have acquired theshares previously held by our localpartner and now own 100 % of KoreaAutomotive Motor Corporation.
We established the wholly-owned sub-sidiary Robert Bosch India Limited inBangalore, India. This company offerscomponents for gasoline injection forthe India market and develops soft-ware for use in the Bosch Group andfor others.
In China, we have produced and soldautomotive equipment and consumergoods in several joint ventures since1995. At the end of 1998 we acquiredthe shares of our former partner inGuangdong Shenzhou Gas Appli-ances Co Ltd, which manufacturesgas-fired boilers near Guangdong. Inaddition, we set up a company for thesale of aftermarket automotive equip-ment products in Pudong near Shang-hai.
As of the beginning of 1999 we estab-lished the holding company Bosch(China) Investment Ltd, Peking. Thiscompany will hold the shares in ourjoint ventures and coordinate purchas-ing, sales and customer service inChina.
In the United States we increased ourinterests in Diesel Technology, L.P.,Wyoming, Michigan from 50 % to85 %. This company manufactureshigh-pressure diesel-injection systemsfor heavy-duty commercial vehicles.We also started a significant expansionof our Technical Center in FarmingtonHills near Detroit, Michigan, whichwe founded in 1983. The plan alsocalls for a future concentration ofapplication engineering and sales ofbraking and antilock braking systemsfor the American automobile industryat this location.
In 1998 we founded Robert BoschElectronics Manufacturing Ltd, Hat-van in Hungary and commencedbuilding a plant there for the produc-tion of electronic control units for auto-motive equipment. In Turkey weacquired the shares of our Turkish part-ner with whom we had operated a 50–50 joint venture for the manufac-ture of gas-fired heaters in Manisa nearIzmir.
Product partner at World Exhibition EXPO 2000
We will participate in the World Exhi-bition EXPO 2000 in Hanover as prod-uct partner for traffic telematics andmobile telephones. We also cooperatewith the City of Hanover and its trans-portation departments in future pro-jects: using the new digital radio trans-mission method DAB/DMB we cre-ated a passenger information systemfor mobile reception of timetables andother multi-media information in 144urban trains, as well as a system fordynamic timetable data at bus stops.
Further globalization of purchasing
The entire worldwide purchasing vol-ume of the Bosch Group, includingservices, merchandise and capitalgoods, climbed in 1998 to 26.7 (1997:24.2) billion DM. About 56 % of whatwe buy comes from outside Germany,half of it from America and Asia.
Greater networking intensified thecooperation among our purchasingdepartments domestically and abroad.This allows us to concentrate ourglobal purchasing still more and to uti-lize the most efficient procurementmarkets. In addition, we especiallysupport mid-sized suppliers who arewilling to establish production nearour foreign plants.
Earlier involvement of suppliers in product development
To lower manufacturing costs further,we involve our suppliers in productdevelopment at an earlier stage. Moreand more we set up simultaneous engi-neering teams with suppliers in theearliest phase of the process, allowingthem to contribute their developmentknow-how and ideas for cost reduction.
10
Photo at right:Demand for our injection sys-tems for direct-injection dieselengines grows rapidly. Produc-tion, as here in our main plantin Stuttgart-Feuerbach, requiresthe highest degree of precision.
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Investments in tangible fixed assets(million DM)Progress 1994–1998
1994
1995
1996
1997
1998
1,578
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2,419
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In Germany, we started constructionwork in 1998 on a development facil-ity for ABS in Immenstadt and a labbuilding with clean rooms for the pro-duction of aerospace components inBacknang. We also started many con-struction projects outside Germany(see pages 32 to 35).
The number of employeesincreased worldwide
Increased sales had a positive effecton employment. On annual average,the number of employees worldwideincreased in 1998 by 8,298 to 188,017.This increase results primarily fromstrong growth in automotive equip-ment business. Thus employment inGermany grew for the second year ina row, in 1998 by 3,767 to 94,415; out-side Germany employment rose by4,531 to 93,602.
Two-phase plan for conversion to the euro
With the start of the European Mone-tary Union on January 1, 1999, ourcompany too adopted the single-cur-rency euro, even if, for the time being,only in relation to outsiders. Bids andinvoices can be denominated in euro.In the second phase from the begin-ning of the year 2001 we will also usethe euro internally. Presuming thelegal ramifications have been resolv-ed, we will then also change wage andsalary payments to the euro; until thenwe will only indicate the euro equiva-lent of such payments as additionalinformation.
Still unsatisfactory profitability
The profits of the Bosch Group in 1998were unsatisfactory. They were nega-tively affected by high extra expendi-tures in the start-up of new products,especially in the diesel area, as well asby sales losses in Asia, South Americaand Russia. The trend in results in thecommunications technology area wasalso unsatisfactory.
Outlook for current year
Bosch will further expand its technicalexcellence and its worldwide marketpenetration in 1999. The economicconditions are however worse than ayear ago, as a result of continuingcrises in foreign areas which areimportant to the Group, and becauseof uncertain and less favorable generalconditions in Germany. With this inmind, we expect sales to increase lessthan in the year before.
13
We also started a program whichshould lead to further improvement inthe quality of purchased parts. Toguarantee perfect performance on thepart of our suppliers, we developed a uniform system providing for theagreement on quality goals.
Our rating system to encourage effi-ciency in our suppliers was intensifiedand expanded to include suppliers ofmachinery and equipment, as well asshippers.
Rightsizing worldwide logistics
We combined our more important in-ternational air and sea freight ordersand entrusted efficient logistics suppli-ers with their performance. In Ger-many we now use local transportationfirms almost exclusively for the move-ment of purchased parts.
Preparation for Y2K
To deal with the changeover to the nextmillennium we have introduced theneeded measures in our data process-ing systems in all areas; they will becompleted on time. In addition, wehave begun with extensive support forour suppliers; included is an assess-ment of the Y2K capabilities at ap-proximately 1,500 suppliers by third-party experts.
Measures to improve quality
In order to improve workflows andprocesses, we conducted self-assess-ments of our methods and processes.The basis for this was the model of theEuropean Foundation for QualityManagement, EFQM, of which we area charter member. The emphasis wasplaced on the reorganization of prod-uct and process development and pro-ject management.
Furthermore, we are working inten-sively on quality assurance in softwarefor products and test equipment. Withthe help of a model from CarnegieMellon University, Pittsburgh, Penn-sylvania (USA), we improved our soft-ware development processes.
Extensive projects to reduce complexity
As part of our process of continuousimprovement (CIP) we expanded ourpilot program for the reduction of com-plexity, which we initiated in 1997 withfour projects, to cover all divisions.Many projects work on the simplifica-tion of work flows and products whilemaking them even more responsive tothe needs of our customers. The focusof these activities is on production,variant management and logistics.
Greater expenditures for researchand development
To further strengthen our innovativeforces we invested more in researchand development. The 1998 increasewas 6.8 % to 3.5 billion DM. During
the past ten years R & D expendituresas a percentage of sales rose from5.9 % in 1989 to 6.9 % in 1998.
The focus of our activities is on theelectronic stability program ESP, high-pressure injection systems for gasolineand diesel engines, and navigation sys-tems. To cope with these challenges, weincreased the number of newly hiredengineers and scientists in Germanyin 1998 to 1,588 (1997: 1,036). World-wide, about 15,700 (1997: 14,700) scien-tists, engineers and technicians work to develop new products, systems andmethodology, and to improve the func-tionality and reliability of existing products.
Further increase in investments in tangible fixed assets
We continued our high level of invest-ment activity in 1998. In total, invest-ments in tangible fixed assets in-creased by 30 % to 3.8 billion DM,equivalent to 148 % of depreciation.
More than half, 51 % (1997: 47 %), ofthese investments were made in Ger-many. This was essentially the result ofthe further expansion of productionfacilities for diesel and gasoline injec-tion systems and ESP. Especially largeinvestments took place in Bamberg,Homburg (Saar), Reutlingen, and Stuttgart-Feuerbach.
The portion for machinery and equip-ment was 93 % (1997: 93 %). In landand buildings we invested 274 (1997:205) million DM.
12
Investments in tangible fixed assets(as a percentage)by business sectors 1998
0 10 20 30 40 50 60 70 80 90 100
10.2
1.7
4.2
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Automotive Equipment
Communications Technology
Consumer Goods
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Other
78.1
Investments in tangible fixed assets(as a percentage)by regions 1998
0 10 20 30 40 50 60 70 80 90 100
18.6
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America
Asia, Africa, Australia
Rest of Europe
71.5
4.7
5.2
5.8
Continuing demand for vehicledynamics control ESP
The demand for our electronic vehicledynamics control ESP (Electronic Sta-bility Program), which we introducedin 1995 as a worldwide first, continuesto grow briskly; in 1998 we equippedmore than 400,000 vehicles with thissystem.
By electronically influencing the brak-ing system and the drivetrain, ESP isable to increase the driving stability ofmotor vehicles, thus reducing the riskof traffic accidents. Key component ofthe system is the yaw sensor whichreacts immediately the vehicle startsto swerve out of its track. In 1998 webegan mass production of a secondgeneration using micromechanics.This new technology made the sensorconsiderably smaller and lighter.
In 20 years Bosch has delivered 45 million ABS units
Bosch recognized the importance ofactive driving safety at an early stage,and as a result was able in 1998 to lookback at a remarkable milestone. Aftermany years of development work weintroduced in 1978 the first worldwideproduction-ready ABS for passengercars. Since then we have continuallyexpanded the system’s functionality,reduced its size and weight and low-ered its cost. Further visionary devel-opments in the area of active safetyresulting from the ABS system weretraction control TCS and vehicledynamics control ESP.
The latest version is the ABS 5.7,which went into full production inmid-1998. It was conceived in such afashion, that it can also serve at thesame time as the basic system for ESP.
In total in 1998 we built 9 millionABS. We have thus supplied 45 mil-lion systems since its introduction.
Development of passenger-compartment sensing systems
Using the yaw sensor as a base, wedeveloped a sensor which recognizes athreatened rollover of the vehicle. Thisenables seat-belt tighteners and airbagsto be activated in time. In order tofurther improve the effectiveness of the airbag, we are intensively workingon several systems for passenger-com-partment sensors which allow for theindividual deployment of the airbag asneeded for each passenger.
Reasonably priced components for automatic transmissions
For continuously variable transmis-sions CVT we developed new push-belts with a long useful life and ex-tended torque range. We now expect abroad application to passenger cars inthe lower to middle-class areas. We are working on pushbelts which canhandle even greater torque for luxurycars and light commercial vehicles.
We started full production of a modulewhich combines the electrical andhydraulic functions for the control ofconventional automatic transmissions.
Automotive EquipmentBusiness Sector
14
In 1998 motor vehicle production world-wide fell by 2.3% to 52.7 million units.Western European growth in automobileproduction however continued, rising8.1% in 1998. Production in NorthAmerica on the other hand rose onlyslightly, and in Japan it continued to fall.
Our Automotive Equipment BusinessSector increased worldwide sales by11% to 31.8 billion DM and expandedits international production networkfurther. Mass production of many newlydeveloped products commenced.
Key numbersAutomotive equipment
1998 1997Sales 31.8 28.7 billion DMInvestments 2.9 2.2 billion DMR&D Expense 2.4 2.3 billion DM
Photo at right:The yaw sensor is the key com-ponent of the vehicle dynamicscontrol ESP (Electronic Stabil-ity Program). In 1998, weintroduced a micromechanicalversion to the market. This newtechnology makes the sensor con-siderably smaller and lighter.
new diesel engines with direct injec-tion are quieter than conventionalones and feature a driving experiencewhich resembles that of gasolineengines.
As planned, we started full productionof two new injection systems for pas-senger cars in 1998: an electronically-controlled axial-piston distributorpump which meters fuel with a mag-netic valve, and the Unit Injector Sys-tem UIS which allows injection pres-sures up to 2,000 bar and pre-injectionfor quieter engine operation.
In addition, the strong demand for thehigh-pressure pump VP44, which weintroduced in 1996 and for the Com-mon Rail System CRS which has beenin production since 1997 is further onthe rise. In its second year of produc-tion, we already supplied more than200,000 CRS.
The Unit Injector System UIS and theUnit Pump System UPS, which pro-vide each engine cylinder with its owninjection unit, are developing into thepreferred injection systems for heavycommercial vehicles. They are moreand more replacing the former in-linepumps. Our main plant for theseproducts is our factory in Wyoming,Michigan (USA). Another plant is lo-cated in Homburg (Saar). The numberof new applications going into fullproduction rose further in 1998.
With the wide spectrum of dieselengine systems we offer, it is possibleto supply the optimum injection sys-tem for each type of diesel engine. Weare thus well prepared for the everlower limits of allowed emissions.
Liquid-cooled alternator in full production
As a world-first, our British plant inCardiff commenced full productionfor two automobile manufacturers of aliquid-cooled alternator for passenger-car on-board electrical networks. Thenew type of alternator supplies up to150 amps at 14 volts and is extremelyquiet. The special construction allowsthe elimination of slip rings and car-bon brushes, making for an especiallylong useful life.
In order to lower fuel consumption invehicles further, we are at work onincreasing the efficiency of the provencompact alternator. That will also makesthe use of smaller and lighter alterna-tors possible.
Efficient on-board energy networks
In order to satisfy the rising need forelectrical power in motor vehicles, weare developing high-performance al-ternators and starter-alternators. Com-pared to conventional starter systems,these units are better able to managethe automatic engine shutoffs used as a further fuel-saving measure whenthe vehicle stops (start–stop function).We are also working on totally newon-board network concepts, such as a42 V network which will be requiredfor still broader use of electronic actu-ators in the vehicle.
For electric drives we are developingelectric motors with their respectivecontrol and performance electronics.
17
Photo on next doublepage:The testing center at Boxberg(North-Württemberg), whichopened in June, 1998.
It reduces the space needed for trans-missions and increases their reliabil-ity.
Increasing number of projects forgasoline direct injection
A fundamental change in the injectiontechnology for gasoline engines is tak-ing place. Manifold injection will moreand more be replaced by direct injec-tion. It offers the potential of furtherlowering fuel consumption by up to15 % and thus contributes also to areduction in CO2 emissions.
The number of projects for the devel-opment and use of gasoline directinjection, which we pursue togetherwith car manufacturers all over theworld, is growing rapidly. As suppliersof complete systems, we are workingon all key components such as high-pressure pumps, high-pressure injec-tors, control units, and fuel rails withpressure sensor.
Introduction of the planar Lambda sensor
We were the first manufacturer world-wide when we started production ofthe Lambda sensor in 1976. This sen-sor made the use of closed-loop-con-trolled catalytic converters in vehiclespossible. In 1998 we introduced abasic new development in the form ofa flat and smaller sensor elementmade of multi-layer ceramics. It hasthe advantage of still shorter start andreaction times. In contrast to ourconventional finger-type sensor – ofwhich we have produced more than100 million – the new sensor can beused also in lean mixtures. This isespecially necessary for future gaso-line engines with direct injection, as
they are generally operated with asignificant surplus of air under actualdriving conditions. Through fastercontrol and better diagnosis, this so-called broadband sensor provides theconditions for a further reduction inpollutant emission.
Torque-driven engine control gainsacceptance
After having begun mass productionof the new engine management sys-tem ME7 in 1997, we introduced it toa broad spectrum of markets in 1998.Its electrically-operated throttle valveETC (electronic throttle control) andthe principle – first introduced by us –of coupling the control functions tothe torque of the engine, are beingmore and more generally accepted.The system contributes to significantreductions in pollutant emissions andalso enables self-diagnosis of emis-sion-related components.
Start-up of full production offurther diesel injection systems
Demand for vehicles with dieselengines continues to increase strongly.In Western Europe, diesel-driven pas-senger cars continued to take marketshares from vehicles with gasolineengines. This development was sup-ported by the introduction of high-pressure injection systems for direct-injection diesel engines on a broadscale. These allow closer adherence totighter emission limits and contributeto a further significant reduction infuel consumption. In addition, the
16
Taking measurements of a dieselengine in the Stuttgart-Feuer-bach plant. In this test roominjection components are testedunder actual engine operatingconditions.
Innovative technology for direct-injection diesel engines: injectors of the new high-pres-sure injection systems Unit Injector System UIS (left) and Common Rail System CRS (right)
0 5 10 15 20 25 30 35
Sales of automotive equipment(billion DM)Progress 1994–1998
1994
1995
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1998
20.5
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0 25 50 75 100
Automotive marketPercentage1 of ABS-equipped vehicles as compared to passenger-car productionin selected markets 1997/1998
71
50
59
62
84
Germany
Western Europe
North America
Japan
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19971998
82
1 Due to a detailed survey procedure,the percentage figures cannot becompared with those prior to 1997.
47
73
electronic displays, the driver can beoffered additional information overand above the conventional displaydata. Among the innovations we intro-duced was a combination instrumentwith miniature fluorescent lighting fora luxury car model.
First dynamic navigation system in Europe
The demand for vehicle navigationsystems based on digital street mapsgrows strongly. Our subsidiary Blau-punkt-Werke GmbH in 1998 expandedits product range with the first dynamicnavigation system in Europe. As a unitwhich integrates car radio, navigationassistance and telematic functions, itcalls in up-to-the-minute traffic datafrom specialized servers or uses thetraffic information aired by radio sta-tions on the Traffic Message Channel(TMC). In this way it can reroute thedriver to avoid traffic jams and othertraffic obstacles.
The Blaupunkt Travelpilot, a naviga-tion system marketed under our ownname, was expanded in 1998 with fleetmanagement functions and sold tomanufacturers of commercial vehiclesand buses.
New car radios introduced
During the summer of 1998 we intro-duced a new series of car radio modelswith fresh and colorful designs into theEuropean aftermarket. For use in newautomobiles (original equipment) we developed for the first time a so-called
world-radio. It automatically adapts tocountry-specific reception conditionsand at the same time automaticallyadjusts the optimal sound quality toeach type of automobile.
For many passengers, excellent soundquality is gaining in importance. Tomeet this need, we developed com-plete sound systems which we supplyto car manufacturers for installation innew vehicles.
Blaupunkt marketed the first car radiowith functions for traffic telematicsunder the name Gemini. It can be usedfor calls in case of breakdowns andemergencies and for personal trafficinformation in Germany, and can beexpanded with a function for voice-activation.
Aftermarket business in Europeand North America stronger
We were able to increase our Euro-pean aftermarket business in automo-tive equipment, especially outsideGermany. In Asia, the economic andfinancial crisis hurt our business.
In the North American market wewere able to further improve our posi-tion, especially in wiper blades andspark plugs. Here we began introduc-ing the new surface-gap spark plugwith platinum center electrode andfour ground electrodes.
The worldwide service organizationwith about 10,000 Bosch service cen-ters and 100,000 employees in 130countries supports the further expan-sion of our aftermarket activities.
21
Display systems for the driver’scompartment are continuouslybecoming more efficient, even inlower-priced cars. Electronic dis-plays provide the driver with stillmore data from a combinationinstrument.
These electric motors provide flexibil-ity when integrated in the drivetrainand can be used, for instance, in hybriddrives to support the internal-combus-tion engine.
Lighter motors for wiper equipment
We completed development of a newgeneration of electric motors for wind-shield wipers. They are considerablylighter and include the control elec-tronics. This makes it possible toachieve additional functions to im-prove safety and comfort without tak-ing up more space. On the basis of thispower source we developed a dual-motor wiper arrangement, in whicheach wiper arm is powered separately.The two drives are synchronized elec-tronically. As a result, the connectingrods in the middle of the vehicle,needed for conventional wiper equip-ment, become superfluous. This bringsweight and space benefits.
Simplified control of convenience functions
In 1998 we started full production of apneumatic control unit. In addition tofunctions such as doorlocks and foldingof rear headrests which already were areality, it became possible to concen-trate on further convenience functionssuch as a door-closing servomech-anism or a massage device integratedin the rear seat. The control logic isintegrated with the pump housing toform an assembly.
Brushless drive for engine cooling fan
We developed a brushless direct-cur-rent motor for engine cooling fans tothe point of production. Its distinc-tions are short axial installed length,long useful life, and high degree ofefficiency. It is available with a powerup to 600 watts. The integrated elec-tronics allow for continuous speedcontrol. The cooling output is thusbest adjusted to the operating condi-tion of the vehicle engine.
Locking and security systems for vehicles
We developed vehicle locking andsecurity systems which, in addition tothe locks themselves, also include sen-sor systems and electronics which notonly check access and driver autho-rization, but also perform vehicle sur-veillance. The driver uses a code cardor encoded key tag instead of a key.When he approaches the vehicle, thedoor is automatically unlocked (Pas-sive Entry) and the immobilizer –depending upon the system configura-tion – is automatically cancelled (Pas-sive Go).
Display systems become more efficient
The display system business in 1998was characterized by a considerablerise in production volumes of existingproducts and first full production runsof new models. The functionality of our instruments also increased signifi-cantly. Since lower-priced automobilesare also more and more equipped with
20
We developed the electronic driverinformation system Comand(Cockpit Management and DataSystem). It includes a dynamicnavigation system which changesthe selected route to take trafficconditions into account, and also incorporates a number ofoperator functions.
0 20 40 60 80
Passenger-car marketPercentage of diesel-engine passenger cars in total new-car registrations in selected markets 1997/1998
21.724.4
14.8
40.5
Germany
France
Western Europe
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19971998
41.7
0 5 10 15 20
Automotive marketMotor-vehicle productionin selected markets 1997/1998 (in million units)
11.912.2
11.1
16.516.4
10.0
5.7
Germany
Western Europe
USA
Japan
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19971998
5.0
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23
Change in the market for public networks
Fundamental change has taken placeworldwide in the market conditions forpublic network technology. After com-pletion of the change-over of the tele-phone network of Deutsche TelekomAG to digital technology, demand forEWSD exchange equipment (Elec-tronic Digital Dial System) decreasedconsiderably. In addition, unresolvedregulatory questions led new networkoperators to postpone or even shelvetheir purchasing decisions.
The economic crises in important FarEastern countries as well as in Russiaand Brazil led to a decline in demandand the postponement of projects. Theincreasing number of internet usersand the growing use of this mediumcause data traffic to grow much morerapidly than telephone traffic. This re-quires greater transmission capacity ofthe data networks as well as efficientand flexible solutions for access net-works.
Emphasis on transmission andaccess networks
In view of these changes, which alsoopen up new business perspectives, weshifted the emphasis of our activities tothe areas of transmission and accessnetwork technology. To this end, wenot only introduced refinements toexisting products, but also broughtbrand new products to the market.
The access network system for opticaltransmission, known as the BoschAccess Network, which we introduced
in 1997, went into operation in its firstlarge installations in 1998. An expan-sion of this system to broadband appli-cations is under common developmentwith our U.S. subsidiary Bosch Tele-com Inc.
The proceedings to regulate the fre-quency allocation for radio access net-works in Europe which were com-pleted in the second half of 1998increased the demand for our DigitalMultipoint System (DMS). Differentfrequency versions are available whichhave already been installed by severalnew network operators both inside andoutside Germany. Unexpected delaysin the awarding of frequencies to net-work operators in the U.S. led to thepostponement of radio project orders.
Our radio-relay systems for short dis-tances were supplemented with addi-tional versions. In doing so we tookinto account the growing applicationof synchronous technology (SDH) toaccess connections in transmissionnetworks as well.
Business with our network manage-ment system NSÜ Open was contrib-uted to the Bosch Telecom Software-Systeme GmbH & Co. KG, Backnang,which we established in April 1998.This step also enables us to better reachnetworks with outside hard and soft-ware.
Communications TechnologyBusiness Sector
22
The world market for communicationstechnology products and systems grewfurther in 1998, especially in data andmobile communications. Developmentdiffered, however, according to regionsand individual markets. European mar-kets were stagnant. Some of the publicand private fixed network technologymarkets declined.
Sales of the Communications Technol-ogy Business Sector in 1998 stayedeven with the previous year at 5.0 billionDM. This amount includes for the firsttime the sales of Bosch TelecomDanmark A/S (Dancall Telecom A/Sacquired in 1997).
Key numbersCommunications technology
1998 1997Sales 5.0 5.0 billion DMInvestments 220 142 million DMR&D Expense 600 560 million DM
Photo at right:Our call center in Magdeburghas created an important posi-tion for itself in the growingservices market in Germany.
this in Europe more and more im-portant area. In the fall of 1998 westarted production of the GSM 908, amobile telephone with a volume ofonly 99 cubic centimeters and a weightof a mere 99 grams, which also featuresan integrated data communicationsinterface. With this telephone weexpanded our product range into thehigher-priced category.
Increasing demand for security
For several years now the demand foroverall solutions in the application ofsecurity technology to building com-plexes and real estate units has beengrowing. We have adapted to this de-velopment by offering complete sys-tems and operator models which in-clude planning, erection, financing andoperation. We received several largeorders in 1998. For example, we werechosen to equip the main parliamentbuilding and several ministries andparliament annexes in Berlin with se-curity technology.
The basis for our strong position in thisfield is primarily the technical lead inLSN bus technology (Local SecurityNetwork). The miniaturization of LSNtechnology to chip size makes it possi-ble to electronically monitor even thesmallest magnetic contacts. As an inno-vation, we introduced a fire-gas sensorwhich stands out due to its very shortreaction time and high level of freedomfrom false alarms.
Growth in satellite technology levels out
The difficult economic situation in theFar East, South America and Russiaadversely affected the use of earlier
planned satellite services in these areasand delayed the construction of sat-ellite-supported communication net-works. This market weakness affectedour business too, albeit in milder form.In the medium term we continue toexpect a better than average demandfor satellite services for mobile anddata communications.
For our new generation of compactpower supply units for traveling-wavetube amplifiers we received a large ini-tial order from the satellite operatorIntelsat. High-performance optical com-munication channels between satellitesin space will play a decisive role infuture world-encircling satellite net-works. We have intensified our devel-opment to secure our technical posi-tion in this area.
Difficult environment for trafficmanagement technology
Continuing scarce investment funds inpublic budgets for traffic guidance andmanagement infrastructure, togetherwith considerable price erosion as aresult of idle capacity, characterize thesituation in the traffic managementtechnology business. In addition, weforesee that future traffic telematicssystems will be based on GSM net-works instead of conventional trafficguidance technology. Therefore, as ofJanuary 1, 1999, we sold our interest inSignalbau Huber AG, Munich, whichoperated primarily in the traffic-signalfield.
25
Bosch supplies the equipment for state-of-the-art radio-relay systems forthe transmission of sound and pictures.Shown here: antennas on the BerlinTV-tower.
Growth for private network systems
As the West European market for pri-vate communication systems as awhole stagnated, demand in Germanyweakened. In contrast to this develop-ment we were able to expand ourposition further with the ISDN-exchange equipment Integral 3 andIntegral 33. Business with industry-specific solutions for banks and stock-brokers grew further; among otherthings we received the order forequipping the European Central Bankin Frankfurt. We were able to win overTelecom Italia and other resellers inEurope outside Germany for oursmall-scale system Integral 3 Duo.
Integration of voice and data communication
Development was brisk in the rela-tively new market for systems whichsupport the integration of voice anddata communication including infor-mation processing. Demand in thisarea is concentrated in CTI-systems(Computer Telephony Integration), inwhich a telephone call automaticallytriggers a search for customer informa-tion from databases. Complementingdata communication with voice com-munication is also rapidly growing inimportance on the internet. In the CTImarket we offer products for businesscall centers. For special applications wecan deliver complete solutions withour Referenz 2000, which include cus-tomer-specific problem analysis, sys-tems planning and benefit documenta-tion.
Data network business is also growing.Being a systems integrator, we plan andinstall networks of various sizes all theway up to and including wide-rangingcorporate networks using all currentlyavailable technologies.
Increasing use is being made of ser-vices for the setting up and operationof private communication networks.Our new Business Recovery Center isa good example of such services. Itprovides the banks in the Frankfurtarea with a permanently up-to-datebackup for their telecommunicationsand data communications systems incase these break down. Demand forour Ecotarif software, which in aswitching system allows the flexiblechoice of the most economic networksupplier and rates, also shows robustgrowth.
Expansion of mobile telephoneproduction in Denmark
The market for GSM mobile tele-phones keeps growing strongly and ischaracterized by rapid innovation andfalling prices. After the acquisition ofDancall Telecom A/S in the spring of1997, we converted our Danish loca-tion Pandrup to become our center forGSM mobile telephones. In October1998 we started operations there in anew plant. This allowed us to doubleour sales of GSM mobile telephones.
Our new development World 718 re-ceived international acclaim. It is thefirst mobile telephone with which it ispossible to place calls both in the Euro-pean GSM 900 and the American PCS1900 networks. Early investments inthe GSM dual-band technology pro-pelled us to a significant position for
24
In 1998 we introduced the newGSM 908 mobile phone, a productin the higher-priced range. It isespecially small and lightweight. Inaddition, it has an interface fordata communication.
0 2 4 6 8 10
Sales of communications technology products(billion DM)Progress 1994–1998
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– above all drilling, grinding and saw-ing – sell an extensive accessoryassortment. Our program includesmore than 7,000 items and thus takesinto account the regionally verydiverse requirements. In Europe wemanufacture in our German plant inRavensburg and in St. Niklaus (Swit-zerland). In the largest market, theUnited States, we are well-positionedwith our joint venture, VermontAmerican Corporation.
Motor-driven gardening tools areoffered by us in the U.K. under thebrand names Atco and Qualcast and inother European countries under thename Bosch. They are produced inStowmarket, U.K. In North Americawe are represented with the brandGilmour by way of Vermont AmericanCorporation.
International presence in thermo-technology strengthened
Our thermotechnology division con-tinued to increase its sales in 1998.With a technically high-grade andenvironmentally friendly equipmentprogram, it became possible for us toexpand our status as one of the largestsuppliers in the European heatingequipment market. The markets inCentral and Eastern Europe are grow-ing in particular, while competitive
conditions in Western Europe are get-ting tougher. Business development inGermany was thus negatively affectedby weak construction activity andincreased competition from foreigncompetitors.
We expanded our position in theshrinking European market for gas-fired boilers. We consolidated ourposition in wall-mounted gas-fired heaters. An important contributionwas the introduction of a new equip-ment series of water-cooled ribbedburners for which we had completeddevelopment in 1997. In the growingmarket for equipment maximizing useful heat, which use the condensa-tion of steam for the extraction of additional heating energy and so pro-duce favorable utility and emissionvalues, we also strengthened our posi-tion by the introduction of new prod-ucts. As an innovation we started mar-keting a flexible device for heatinginstallers which is available in severalperformance classes and can also beused to heat multi-family buildings.
In 1998 we continued expanding ourinternational presence pointing theway to further growth outside Europe.By establishing our own sales com-pany in Chile we contributed to open-ing the South American market. Theacquisition of the interest of our part-ner in the Turkish joint venture (seepage 10) strengthens our position inthe local market and makes furtherexpansion of our international pro-duction network possible.
27
Expansion of international position in power tools
After strong growth in previous years,the world market for power toolsshrank in 1998. Both quantity andvalue decreased by 6 % to 89 millionunits and 12 billion DM respectively.An important reason was the economiccrisis in Asia, where markets, as a resultof declining construction activity, de-creased by half within the span of ayear. Nevertheless, our power toolsdivision was able to increase its salesfurther and to expand its world marketstanding.
Strong position with Bosch,Dremel and Skil brands
In the market for commercial powertools, the Bosch brand makes us oneof the worldwide most important pro-ducers. With the Skil brand we areabove all popular among craftsmen inNorth America as a supplier of circu-lar saws. For do-it-yourselfers we offera wide spectrum of products under theBosch and Skil brand names. Thisproduct range is attuned to regionalpreferences. In the European marketswe introduced Dremel-brand multi-function tools with extensive acces-sories.
Our growth was again strongly char-acterized by new product introduc-tions. Among these, a fine-cutting sawwhich surpasses all known compass
saws and hacksaws in cutting quality,stands out. This saw is ideally suitedfor clean, splinter and rip-free saw-work, as well as for precise mitercuts.
In the area of measurement technol-ogy we introduced a digital distancemeter using laser technology for dis-tances up to 30 meters.
In Europe we produce power tools inLeinfelden, Murrhardt and Sebnitz inGermany, Solothurn and Derendin-gen in Switzerland and in Breda(Netherlands). Outside Europe wemanufacture in Brazil, Mexico, theU.S., China, India and Malaysia.
Guaranteed repair within five days
In June 1998 we introduced a uniqueservice in the industry: we guaranteerepairs of power tools in Germanywithin five workdays. Should werenege on this promise, the repair ismade free of charge, even if the war-ranty period has expired. Active sup-port of our trade partners is essentialfor this concept to increase customersatisfaction. Already, 1,700 dealersparticipate in the program.
Universal supplier of accessoriesfor power tools
In the accessory market, which with13 billion DM exceeds that of powertools themselves, customers rely moreand more on suppliers who in addi-tion to tools for a variety of purposes
Consumer GoodsBusiness Sector
26
Invigorating demand in 1998 supportedthe economic development in WesternEurope. In contrast, domestic demand inimportant markets such as SoutheastAsia and Latin America fell. Private con-sumption in North America continued togrow.
Sales of our Consumer Goods BusinessSector increased by 2.7% to 11.3 billionDM. This includes 50% of sales by BSHBosch und Siemens Hausgeräte GmbH.
Key numbersConsumer Goods
1998 1997Sales 11.3 11.1 billion DMInvestments 385 379 million DMR&D Expense 294 268 million DM
Despite declining markets, wewere able to expand our world-wide strong position in powertools with innovative newproducts.
0 2 4 6 8 10 12 14
Sales of consumer goods(billion DM)Progress 1994–1998
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9.2
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Innovations involving heatingequipment
Innovations in classic heating systemsare still possible despite the maturestate of the technology. For example,we designed a special burner with highuseful heating values which can beused with improved efficiency evenwhen connected to standard chimneys.With the help of sensors and actuatorsthe introduction of adaptive heaterswhich automatically react to changinggas quality and diverse installationconditions becomes possible.
Worldwide presence in householdappliances strengthened
The BSH Bosch und Siemens Haus-geräte GmbH, Munich, in which bothBosch and Siemens hold a 50 % interestcontinued in 1998 to strengthen itsinternational presence. The company,which manufactures at 30 locations inEurope, North and South America andAsia, acquired household applianceproducer Thermador Corporation,Huntington Beach, California, thusexpanding its position in the NorthAmerican market. Thermador is anestablished supplier of built-in kitchenappliances in the upper price and qual-ity class, primarily ovens, ranges andrange hoods. In addition, BSH ac-quired two producers of small house-hold appliances in Spain and Turkey.
The company strengthened its positionin the area of motors for water-systemsequipment. It acquired a plant for
motors and pumps in Michalovce, Slovakia, and a center for control andsensor-engineering systems in Regens-burg from Siemens AG.
Domestic and foreign sales continued to grow
The BSH Group continued its growthin 1998 and increased its worldwidesales by 7.2 % to 10.3 billion DM. Aquarter of this growth is attributable tothe initial consolidation of new com-panies.
The sales increase was primarilyachieved in foreign business, whichshowed a dynamic development inthe early months of the year, only tobe negatively affected in the furthercourse of the year by the economicslowdown in important sales markets.Total sales of BSH outside Germanygrew by 10 %. Western European andNorth American growth rates wereespecially high. The share of salesmade abroad rose from 62 % to 64 %.
Sales in Germany grew by 2 %. Onceagain, BSH outperformed the other-wise stagnant industry as a whole in theGerman market. Financial results werelower than the prior year.
29
Production of gas-fired heaterswith Bosch Heatronic electroniccontrols. They provide foroptimal management, simpleoperation and fast, trouble-freeservice.
28
Photo at left:In 1998 Bosch introduced afine-cut saw for commercialuse as a world innovation.
Our new, easily programmable robotcontrollers and control fields based onthis industrial PC expanded our prod-uct line in the area of industrial con-trol technology. The range of productsis complemented by a stored programcontrol (SPC) which can also be runas a software program on the PC.
We expanded our training center atErbach (Hessen) further. For school-ing and training we developed inter-net-capable learning software. A newintroduction in 1998 was our school-ing system for apprentices in thenewly established apprentice coursein mechatronics.
Worldwide renown as supplier of packaging machinery
As one of the largest producers of pack-aging machinery worldwide, we sup-ply customers in the food, confec-tionery, pharmaceutical and chemo-technical industries. In Europe, asidefrom three German plants, we alsooperate a factory in the Netherlands,and one in the Czech Republic. Inaddition we produce in the UnitedStates, Brazil, India and Japan.
Sales and order inflow of our Packag-ing Machinery division increased at astronger pace than the world marketas a whole. We thus continued in 1998to expand our international position.About 85 % of sales took place outsideGermany.
The product program for the food andconfectionery industries was enlargedin the mid-range performance area.For the packaging of bulk materialssuch as pasta or sugar we introducedmodular packing equipment withservo drives and industrial-PC con-trols. The machine distinguishes itselfby rapid adaptation to new formats and by low maintenance and repaircosts.
The market responded favorably tothe first version of a new series ofpouch-filling machines equipped withelectronically controlled highly-dy-namic servo drives and newly-devel-oped control technology. It is wellsuited for diverse packaging materialsand types and sizes of pouches.
Together with a well-known producerof packaging materials we developedpouch-filling machines which operateaseptically. In one hour, a single ma-chine can fill and close 4,000 liters oflong-life milk in one-liter pouchesmade from tearproof, environmen-tally friendly foil.
In the area of sterile filling and pack-aging of liquid pharmaceuticals weagain made progress. With largeorders for filling and sealing machineswhose product handling element isdesigned as an encapsulated sterilechamber (insulator technology), wewere able to gain acceptance for thistechnology in the West European andJapanese pharmaceutical industries.
31
Growth in automation technologyequipment
In the area of automation technologywe were able to compensate for ebbingexport demand with increasing domes-tic business. In particular the Germanmechanical-engineering industry pro-vided stimuli. Our Automation Tech-nology division continued to increaseorder inflow and sales. A row of prod-uct innovations contributed thereto.
We complemented our range ofpumps for automotive hydraulics witha version which is considerably qui-eter than earlier models. In addition,we took up full production of a gener-ation of electrohydraulic directionalcontrol valves for agricultural andmaterials-handling technology, whichrepresents another step in their devel-opment. It is well-suited for connec-tion to the CAN bus for data commu-nication which is coming into in-creased use in vehicles.
In the area of industrial hydraulics wedeveloped a digital controller for ra-dial-piston pumps. It is also equippedwith an interface to the CAN bus,which has recently also come into usein industrial hydraulics. As a furtherinnovation, we introduced propor-tional valves with CAN bus interfacewhich are also suitable for integrationinto safety circuits.
Our valve-mount system for pneumat-ics was complemented by decentral-ized controllers with stored programs,
and by compact assemblies with grea-ter performance. We expanded ourcompact-cylinder module by addingfurther applications.
At the Homburg (Saar) location wecommenced operation of a warehousefor the distribution of pneumaticproducts. By rapid access to individualitems and fast disposition, we are ableto further increase our flexibility inreacting to customer wishes.
In the area of mechanical base ele-ments and manual work systems weimproved our market position. Manynew products and program supple-ments such as elements for equippingclean rooms contributed to this im-provement.
We made significant progress in tight-ening technology for assembly work.Our tightening system 300 can now beoperated via PC. In addition it isequipped with an interface to a databus.
More efficient robots introduced
With the Turboscara SR6 and SR8 weintroduced a completely new genera-tion of swivel-arm robots. They distin-guish themselves by extra high oper-ating speed, long useful life and opencontrol technology. Part of the prod-uct offering is a PC which is especiallyadapted to industrial requirementsand which enables better visualizationand data communication, for instancein servicing.
Capital GoodsBusiness Sector
30
Against the backdrop of economicresurgence in Western Europe, the willingness to invest increased in 1998.However, demand for capital goodsweakened in the second half of the year,particularly in the German mechanical-engineering industry. Sales of ourCapital Goods Business Sector con-tinued to rise in 1998 by 3.2% to 2.2 billion DM.
Key numbersCapital Goods
1998 1997Sales 2.2 2.1 billion DMInvestments 65 41 million DMR&D Expense 143 133 million DM
We developed and in 1998 intro-duced a completely new generationof our proven robot series Turbo-scara. These swivel-arm robots areparticularly robust and efficient.
Our Brazilian productionfacility supplies the country’sfoodstuff industry with pouch-filling machinery.
0 0.5 1.0 1.5 2.0 2.5
Sales of capital goods(billion DM)Progress 1994–1998
1994
1995
1996
1997
1998
2.0
2.0
2.1
2.2
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In Western Europe, our most impor-tant market, growth in 1998 strength-ened in most countries. Here and there,as in the U.K., the economy weakenedin the course of the year. In Central andEastern Europe, economic develop-ments were irregular. Our Europeansales in total continued to grow to 37.0(1997: 33.4) billion DM.
Centennial of our first foreign venture in the U.K.
Our foreign activities can look backon a long tradition, which we cele-brated in 1998 with an anniversary.Our first step onto world markets tookplace in 1898, 100 years ago. RobertBosch, the founder of the company,that year set up a representation in theU.K.
With sales of 2.8 billion DM, the U.K.today is our third-largest foreign mar-ket after the United States and France.Our work force in the U.K. runs toapproximately 3,830 persons. Theymanufacture automotive alternators,gas-fired boilers and motor-drivengardening tools and sell Bosch Groupproducts.
Our Cardiff plant was again expanded.In 1998 we started here with full pro-duction of a liquid-cooled alternator(see page 17).
Strong growth in France and Spain
France is our largest European marketoutside Germany. There we manufac-ture products for automotive equip-ment, private communications tech-nology, thermotechnology and auto-mation technology.
We were able to increase our Frenchsales in 1998 by 16 %. The businesswith the country’s car manufacturersgrew disproportionally more. Contri-butions to this trend were increasingdemand for diesel vehicles and thegrowth in equipping new vehicles withABS. Because of the strong demand forcomponents of diesel injection equip-ment, our plants at Vénissieux andRodez were working at full capacity. InRodez we started the expansion of thediesel production. Here we will investabout 175 million DM by the year 2000in the production of the Unit InjectorSystem UIS.
In Spain we manufacture products forautomotive equipment and for auto-mation technology. The strong growthin Spanish car production led to anincrease in our sales of almost 20 %.
International Business
32
Expansion of our business worldwidecontinued again in 1998. This was espe-cially the case in the automotive equip-ment business in East European, LatinAmerican and Asian countries. In theseregions we also offer automobile manu-facturers application engineering, aswell as systems and components forautomotive equipment from local pro-duction. We continued expanding theinternational integration of our manufac-turing in 1998. At several locations webroadened our production program.
In total the Bosch Group has sub-sidiaries and associated companies in48 countries. More than 185 manufac-turing sites, of which 142 are outsideGermany, testify to the internationalcommitment of the company. Worldwide,Bosch participates in 37 joint ventures.
Key numbersInternational business
1998 1997Sales 32.5 30.7 billion DMInvestments 1,843 1,529 million DMR&D Expense 946 827 million DM
Photo at right:In China we established togetherwith national partners over thepast few years several plants forthe manufacture of automotiveequipment and consumer goods.In order to secure uniformquality standards worldwide an international exchange ofemployees is essential.
weakened domestic demand consider-ably. The country’s automobile pro-duction dropped precipitously. InArgentina we started production ofLambda sensors for the South Ameri-can market.
Weakness in Southeast Asia
After years of strong economicgrowth, there was a sharp economiccollapse in the countries of East andSoutheast Asia. The Japanese econ-omy is in the longest recession sincethe second world war. Although theeconomy in Korea showed signs ofstabilizing by year-end, the restructur-ing of industry made only slow pro-gress. In many ASEAN countries, thepolitical unrest in Indonesia added tothe weakening of the economic devel-opment. Private and public demanddiminished strongly, vehicle produc-tion decreased considerably. Our salesin this region fell by 46 %. In the middle and long term, however, wecontinue to see good business oppor-tunities.
Expansion of Japanese application-engineering center
In Japan we have started the expan-sion of our application-engineeringcenter in Yokohama. As part of a cap-ital increase at the beginning of April1999 we increased our shareholdingin Zexel Corp, Tokyo, to 50.04 %. Wecontinued to strengthen our position
in the Korean market. We acquiredthe shares of our partner in a jointventure (see also page 10).
In the Chinese market we have beenactive since 1995 in several produc-tion joint ventures for automotiveequipment and consumer goods. Dur-ing the second half of 1996 produc-tion was started at United AutomotiveElectronic Systems Co Ltd, Shanghai.This company meanwhile produces allimportant components for the enginemanagement of gasoline engines. In1998, the company took up operationof an application-engineering center.In Pudong, near Shanghai, we estab-lished a company to sell aftermarketproducts for automotive equipment.
Strong growth in Australia
The Australian economy is growing ata rapid pace. This favorable economicdevelopment led to a further increasein vehicle production and new auto-mobile registrations. In the Claytonplant we started production of EV6gasoline injection valves. In addition,we began with the expansion of pro-duction for autobody electronics andantilock braking systems.
In Bursa, Turkey, we acquired anotherparcel of land for the erection of a sec-ond plant to accommodate the expan-sion of our production of automotiveequipment.
Expansion of activities in Centraland Eastern Europe
In the Central and East Europeancountries, in which we had establishedour own sales companies during thepast seven years, business develop-ment varied. In the countries withadvanced economic reforms, stronggrowth continued in Poland and Hun-gary, but in the Czech Republic grossdomestic product decreased. The eco-nomic and financial crisis in Russiaalso increasingly poses problems for itsneighbors, Belorussia and the Ukraine.
The strong growth of our business inCentral and Eastern Europe slowed.However, we see again middle andlong-term growth chances in thesecountries. That is why we have in-creased our activities in some parts ofthis region. In the Bosch SaratovGmbH, Saratov, joint venture whichwe established with Russian partners in1996, we commenced production ofcontrol units for gasoline injection andignition.
Continued progress in North America
Strong economic growth in NorthAmerica continued. The United States,with sales of 6.8 billion DM, constitutethe largest market of the Bosch Groupoutside Germany. We manufacture at20 locations primarily braking equip-ment, gasoline injection equipmentand power tools. In Anderson, SouthCarolina, we began production ofminiature assemblies of electronic au-tomotive equipment. In Charleston,South Carolina, we started operation ofa fourth assembly line for gasolineinjection valves of the EV6 type in viewof the strong demand for this productin North America. In Palo Alto, Cali-fornia, and in Pittsburgh, Pennsyl-vania, we began setting up branchesfor our research and development.
In Mexico, we started with the produc-tion of headlamps at our Juarez site. Atour Toluca plant, we expanded thefacilities for production of electrome-chanical products for automotive ap-plications.
Our business in South America wasnegatively influenced by the economiccrisis in Brazil. The measures taken bythe Brazilian government to reduce thelarge budget deficit were ineffectual.The attempt to stabilize the currencyexchange rate with high interest rates
34 35
In all regions of the world, ourinternationally integrated manu-facturing is supported by a grow-ing network of application engi-neering centers in which we refinethe development of products andadapt them to the needs of vehiclemanufacturers.
For more than 40 years we have helda strong position in India in dieselinjection equipment. In 1998 we alsobegan application engineering ofcomponents for gasoline injection.
USA 15,030Brazil 11,430India 10,950France 10,080Spain 7,180Mexico 4,560U.K. 3,830Portugal 3,710Malaysia 3,190Switzerland 2,210
Employees and production outside GermanyCountry Employees Automotive Communications Consumer Capital
equipment technology goods goods
Breakdown of sales(as a percentage)by regions 1998
0 10 20 30 40 50 60 70 80 90 100
20.2
4.9
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Countries of the European Union
America
Asia, Africa, Australia
Rest of Europe6.2
68.7
Cutting made environmentally friendly
Cutting in metalworking uses consid-erable amounts of cooling lubricants.This is unavoidable with conventionaltools, but leads to substantial expensein the handling, storing and disposalof these materials.
In a broadly conceived, publicly sup-ported project we were able to makeconsiderable progress with dry ma-chining using wear-resistant coatedcutting materials. This method notonly allows greater cutting perfor-mance compared to wet machining, italso contributes substantially to protec-tion of the environment since it elimi-nates the use of machining oils andemulsifying concentrates. We startedthe first pilot applications of this newprocess.
Reception concept for DAB and FM radio
The broadcasting system of the futureis called DAB (Digital Audio Broad-casting). It will replace the currentfrequency-modulated ultrashort wavebroadcasting (FM). At first, however,both systems will exist simultaneously.That is why we developed a receptionconcept which combines for the firsttime both DAB and FM functions.
In order to achieve this, we funda-mentally reworked our concept forDAB reception, which we had already
marketed. We improved the DABfunctionality and reduced the powerinput of the electronics to one-tenth.All functions, from analog and digitalconversion, channel and audio encod-ing, up to the processors and storagewere integrated on a single eightysquare millimeter chip.
This high degree of integration permitsthe manufacture of very compact re-ceivers for combined DAB/FM broad-casts for use in car radios and home andportable radio sets.
New electronics architecture for motor vehicles
Well-equipped motor vehicles containmany functions of body and informa-tion electronics, such as central powerlocks, power windows, climate con-trols, navigation aids and telephones.For future generations of vehicles, wehave developed a new electronic sys-tems architecture and demonstrated itin a test vehicle.
Its core is a central computer platformfor the various functions of the bodyand information electronics. The plat-form is open for the installation of avariety of services such as routesearches with traffic-jam avoidance orradio and television reception. It isadaptable with regard to computingpower and storage capacity.
37
Indispensable for our productdevelopment are computer simula-tions. In this way, for instance,insight into flow behavior andtemperature dispersion of anexhaust-gas recirculation valve ismade possible.
New structuring technology for silicon sensors
We developed a new high-frequencyetching method for exact manufactureof micromechanical structures in sili-con and an under-etching technologyto produce flexible silicon structures.These key technologies form the basisfor new space-saving and economicallypriced yaw sensors. These innovativesensors can be used not only in ESP,but also for detecting the danger ofvehicle roll-over, and for vehicle navi-gation aids.
Rapid start-up assists for diesel engines
The warm-up behavior of glow plugsin their role as start-assist devicesdetermines the time needed for start-ing diesel engines. In order to shortenthe starting time further, we devel-oped glow plugs which reach ignitiontemperature so fast that the preheatingphase can be omitted.
This plug is made of new types ofceramic composites which can beheated to more than 1,000 degreescentigrade in less than two seconds.Even at these high temperatures thematerials have a long useful life.
Mechatronics in the motor vehicle
The functions in motor vehicles whichat one time were mechanical orhydraulic, such as steering or braking,will be replaced in the future by so-called “By Wire” systems, in which theconnections are replaced by sensorsand electrically controlled actuators. In this way, active safety can be in-creased by improved electronic inte-gration of vehicle systems. The dis-placement of mechanical and hydrau-lic components is especially favorablein vehicle design.
As part of a European project we testedthe basic concepts of this system. Theyhave in common the fact that they rec-ognize and correct errors in order tofoster safety. More than ever, it isimportant that the communicationbetween various components be reli-able. This is especially the case for theexchange of information between sen-sors which register the driver’s wishesand the power actuators.
For such systems we tested TTP/C(Time Triggered Protocol for Class CApplications). For safety reasons, ittransmits redundant, so to speak dou-ble, signals based on time and not oncause. Using a prototype steering sys-tem we were able to prove the suit-ability of the protocol for a “Steer-By-Wire” system.
Research and Development
36
Innovative products and processes char-acterize the Bosch Group as the capa-ble supplier of top-notch technology inlarge quantities. We are continuouslyexpanding this position.
Bosch is intensively working onvideosensorics for motor vehicles.One important use is the TrafficSignal Assistant, which by means ofvisual or audible signals drawsattention to traffic regulations, suchas speed limits.
1 Approximately 11% thereof is spentfor corporate research and advancedengineering; the rest for researchand development in the businessdivisions and foreign subsidiaries forproduct development.
0 1,000 2,000 3,000 4,000
Total expenditures for research and development1
(million DM)Progress 1994–1998
1994
1995
1996
1997
1998
2,255
2,474
3,257
3,478
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39
European works council established
On October 27, 1998, the so-calledEuropa Committee was organized,functioning as the European workscouncil of the company. This body atpresent consists of 26 employee repre-sentatives from 14 countries. It willmeet annually with representatives ofmanagement.
Reform of company pension plan
We reformed the company pensionplan for Bosch Group employees inGermany as of January 1, 1999. In fullagreement with the employee repre-sentatives we transferred the approxi-mately 70 different pension plans into asingle uniform model. The contribu-tion-oriented modular system whichwas developed for this purpose guaran-tees a better method of calculation andalso offers the employees considerablymore transparency. As a basic pension,the company provides contributionsfor the establishment of individual pen-sion capital accounts. In a further pen-sion provision, employees are giventhe opportunity to expand on the basicplan by making additional voluntarycontributions.
With this reform we proved the com-pany’s ability to innovate, also in thecase of an instrument which is impor-tant from a socio-political and person-nel-policy viewpoint.
Labor contract to provide for part-time work for seniors
As of August 1, 1998, the Bosch parentcompany agreed to provide part-timework for its senior employees on the
basis of mandatory legal and contrac-tual labor regulations. The arrange-ment allows employees over 55 a grad-ual retirement. At the same time it givesyoung people a chance to start a career.This agreement contributes to a bal-anced age and qualification structure ofthe workforce. We entered into about400 individual employee retirement-work-time agreements.
Innovation and creativity
In order to strengthen the innovativeforces in the Bosch Group, a creativityprogram for the leadership cadre wasstarted. We thus support our employ-ees in developing new approaches tosolutions outside the traditional waysof thinking.
Expression of appreciation to our employees
Our employees continued to face con-siderable challenges in 1998. Greatdemand for our products and servicesand the start of full production of newproducts led to strained employmentsituations at many locations. Onlywith a high degree of readiness to per-form and flexibility of our employeeswas it possible to meet customerneeds. We want to thank all employ-ees for their commitment. We alsowant to express our appreciation tothe labor representatives who in thetrue spirit of cooperation supportedthe measures needed to secure thecompetitiveness of the company. Thisapplies especially to the flexible oper-ational work-time arrangements at theplants.
Labor costs continued to increase
The greater workforce and the con-tractually mandated raises in wagesand salaries led to a further increase inlabor costs. They rose worldwide by8.5 % to approximately 15.6 (1997:14.4) billion DM, in Germany by9.5 % to approximately 10.1 billionDM. In the Bosch Group, the costsper employee rose by 3.7 %.
Employee benefit costs in Germanyrose to 4.8 (1997: 4.6) billion DM; foreach 100 DM pay for work performed,there were 91 DM additional manda-tory, contractual and other social con-tributions.
International deployment of employees
Our worldwide activities lend impor-tance to cooperation across borders inall areas of business. That is why weincreasingly support the exchange ofemployees within the Bosch Group onthe basis of our guidelines for interna-tional personnel policies. Every em-ployee is encouraged to be open toother cultures and to learn from them.
The number of internationally activeemployees in the Bosch Group contin-ued to grow in 1998. At the end of theyear we employed approximately1,200 (end of 1997: 1,100) outside theirhome country. Most of these camefrom Germany and nearly one-thirdfrom other countries.
Information provided on the internet
Due to increasing competition for qual-ified junior employees, we venturedinto new directions. We redesigned our personnel wanted advertisements and focused them better on differentgroups of applicants. We expanded theinformation provided on the internetby current references to recruiting pro-grams, training opportunities and openpositions.
In order to increasingly attract engi-neers in mechanical engineering andelectronics, as well as scientists for ourdevelopment departments, we demon-strated the development, productionand sale of our automotive equipmentproducts to about 800 graduates ofinstitutes of technology and universi-ties during a two-day special seminar atour new testing center in Boxberg. Wesubsequently took on about 10 % of theparticipants as employees.
More apprentices hired in Germany
During 1998, the Bosch Group in Ger-many enrolled 1,115 young people incourses preparing them for technical orcommercial careers, or 6 % more thanthe year before. Thus, on January 1,1999, there were 3,538 ( January 1,1998: 3,355) apprentices in training.As in prior years, in many plants wetrained more apprentices than weneeded ourselves, again making a com-munity contribution. We hired 93 % ofthe apprentices after they completedtheir training.
Employeesof the Bosch Group
38
On January 1, 1999, the Bosch Groupemployed a workforce of 189,537,8,898 more than a year earlier. Employ-ment in Germany rose by 3,831 to95,357, of which 3.7% were appren-tices. Employment outside Germanyrose by 5,067 to 94,180.
Bosch was one of the first Germancompanies to offer an apprentice-ship in mechatronics. In this newcareer, which unites the knowl-edge and skill to deal withmechanics and electronics, 44young people in 1998 startedtheir apprenticeship courses with us.
Love of music is the incentive for many employees to participate in theBosch music groups. Choir and orches-tra have a good reputation even among professionals. A traditionalevent is the Quempas singing in theStuttgarter Stiftskirche prior to Christmas.
0 40,000 80,000 120,000 160,000 200,000 240,000
Number of employees(annual averages)Trend 1994–1998
1994
1995
1996
1997
1998
172,359
158,372
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188,017
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156,464
Appendix December 31,1998 December 31,1997million DM million DM
Fixed assets (6)
Intangible fixed assets 1,657 1,872Tangible fixed assets 9,975 8,861Financial investments 1,071 1,280
12,703 12,013
Current assets
Leased products 449 492Inventories (7) 5,989 5,639Accounts receivable and other assets (8)
Accounts receivable 7,968 7,522Other receivables and assets 2,106 1,876
Marketable securities 5,822 5,828Liquid assets 1,260 1,484
23,594 22,841
Deferred expenses 46 52
36,343 34,906
Appendix December 31, 1998 December 31, 1997million DM million DM
Equity capital (9)
Capital stock 1,800 1,500Capital surplus 4,630 2,895Earned surplus 4,797 4,228Unappropriated earnings 80 2,209Minority interests 562 545
11,869 11,377
Accruals with valuation reserve portion (10) 67 55
Accruals
Accruals for pensions and similar obligations 6,917 6,227Other accruals (11) 9,315 9,596
16,232 15,823
Liabilities (12)
Liabilities with banks 1,979 1,713Accounts payable 3,557 3,419Other liabilities 2,575 2,476
8,111 7,608
Deferred income 64 43
36,343 34,906
Financial Statements of the Bosch Group WorldwideConsolidated Balance Sheet as of December 31,1998
Assets Liabilities
40 41
Appendix 1998 1997million DM million DM
Sales (15) 50,333 46,851Changes in finished goods and work-in-progress
inventories and other capitalized costs (16) 551 653Total operating performance 50,884 47,504
Other operating income (17) 2,753 3,349
Costs of materials (18) –23,697 –21,835Personnel costs (19) –15,575 –14,359Depreciation of intangible and tangible fixed assets –3,265 –2,927Other operating expenses (17) –9,366 –8,926
Income (– loss) from investments (20) 22 –70Amortization of financial investments and securities included
with current assets –262 –186Interest income, net of expenses (21) 306 245Income from ordinary business activities 1,800 2,795
Taxes on income (22) –950 –1,136
Net income for the year 850 1,659
Including profit and loss of minority shareholders (23) 66 105
Financial Statements of the Bosch Group WorldwideConsolidated Statement of Incomefor the period from January1to December 31,1998
1998 1997million DM million DM
Net income for the year 850 1,659Depreciation of fixed assets 3,570 3,351Increase in long-term accruals and accruals with valuation reserve portion 484 209Cash flow 4,904 5,219Increase in inventories and leased products –307 –802Increase in receivables –670 –872Decrease in short-term accruals –63 –129Increase in liabilities 258 612Additions to funds from business activities (1) 4,122 4,028
Additions to fixed assets –4,488 –4,076Retirements of fixed assets 242 126Application of funds to investment activities (2) –4,246 –3,950
Dividends 1997/1996 –2,209 –68Increase in capital stock 300Increase in capital surplus 1,735Increase in liabilities with banks 266 91Other changes in balance-sheet items –198 –208Change in funds from financial activities (3) –106 –185
Change in liquidity (1) + (2) + (3) –230 –107
Liquidity at the beginning of the year 7,312 7,582Reclassifications of financial investments –163Liquidity at the end of the year 7,082 7,312
Financial Statements of the Bosch Group WorldwideCapital Flow Statement
42 43
Cost of acquisition or manufactureJan.1,1998 Changes in the Additions Transfers Retirements Dec.31, 1998 Depreciation Net book Net book Depreciation
consolidated cumulative value as of value as of current yeargroup to Dec.31, 1998 Dec.31, 1998 Dec.31, 1997
million DM million DM million DM million DM million DM million DM million DM million DM million DM million DMIntangible fixed assets
Concessions, patents, trademarks and similar rights and assets as well as licenses to such rights and assets 638 2 244 1 158 727 525 202 371 379
Goodwill 2,375 336 3 51 2,663 1,209 1,454 1,500 339Advance payments 1 2 –1 2 1 1 1 1
3,014 338 249 209 3,392 1,735 1,657 1,872 719
Tangible fixed assets
Land, leasehold rights and buildings,including buildings on land owned by others 5,932 87 169 54 89 6,153 3,364 2,789 2,771 216
Production equipment and machinery 12,104 190 1,977 454 605 14,120 9,678 4,442 3,581 1,547Other equipment, fixtures and furniture 8,844 39 939 163 739 9,246 7,340 1,906 1,634 781Advance payments and construction in progress 862 1 688 –671 30 850 12 838 875 2
27,742 317 3,773 1,463 30,369 20,394 9,975 8,861 2,546
Financial investments
Investments in affiliated companies 543 –276 232 74 2 571 453 118 321 204Loans to affiliated companies 78 70 148 5 143 89 4Investments in associated companies 1,105 –23 58 –10 62 1,068 509 559 636 64Other financial investments 373 85 –64 4 390 225 165 153 33Other loans 80 21 14 87 1 86 81
2,179 –299 466 82 2,264 1,193 1,071 1,280 305
Total fixed assets 32,935 356 4,488 1,754 36,025 23,322 12,703 12,013 3,570
Financial Statements of the Bosch Group Worldwide1998 Development of Fixed Assets
44 45
Financial Statements of the Bosch Group WorldwideBalance Sheet Structure 1994–1998
Assets
Total assets
Fixed assets
Inventories, leased products
Receivables
Marketable securities, liquid assets
12,70335%
36,343
12,01334%
34,906
10,78433%
32,273
6,95724%
28,504
6,65024%
27,373
5,17318%
6,79024%
9,58434%
5,32917%
8,57827%
7,58223%
6,13118%
9,45027%
7,31221%
6,43818%
10,12028%
7,08219%
4,97118%
6,78025%
8,97233%
Liabilities
Total liabilities and equity
Equity capital
Long-term liabilities
Current liabilities
11,86933%
36,343
11,37733%
34,906
9,52730%
32,273
9,03832%
28,504
8,56331%
27,373
1994 1995 1996 1997 1998
1994 1995 1996 1997 1998
11,38542%
7,42527%
11,38840%
8,07828%
12,92840%
9,81830%
13,14937%
10,38030%
13,87038%
10,60429%
46
Values in million DM
46
Financial Statements of the Bosch Group WorldwideAppendix 1998
(1) General remarks The consolidated statements of the Bosch Group Worldwide conform to theregulations of the Commercial Code.In order to ensure better understanding of these financial statements, we com-bined a number of individual balance sheet and statement of income items intokey groupings. These items are stated separately in this Appendix. Requiredcomments for individual items are also contained in this Appendix. The con-solidated statement of income follows the format of the total cost method.
(2) Consolidated group The consolidated statements include Robert Bosch GmbH and 23 domestic aswell as 109 foreign subsidiaries. For the first time, we consolidated the follow-ing newly-established companies:– Bosch Telecom Sicherheitstechnik-Montage und -Service GmbH, Weimar– Bosch Telecom Software-Systeme GmbH & Co KG, Backnangas well as the following previously treated as affiliated companies:– Bosch Telecom Danmark A/S, Pandrup (Denmark)– Bosch Ukl/ady Hamulcowe Sp. z. oo., Twardogóra (Poland)– Diesel Technology Company, L.P., Wyoming, Michigan (USA).Several businesses were integrated into other companies in the consolidatedgroup by way of legal restructuring. These were primarily, MotoMeter GmbH,Leonberg; Robert Bosch Máquinas de Embalagem Ltda, Osasco (Brazil); BoschBraking Systems Corporation, South Bend, Indiana (USA); Robert Bosch FluidPower Corporation, Racine, Wisconsin (USA); and Weldun International, Inc,Bridgman, Michigan (USA).The consolidated statements of BSH Bosch und Siemens Hausgeräte GmbHwere included pro rata pursuant to Section 310 of the Commercial Code.In accordance with Section 296, Paragraph 2 of the Commercial Code, com-panies lacking operations or having insignificant business volume, were notincluded with the consolidated financial statements.The equity valuation of specific interests in associated companies was appliedin accordance with the book-value method. This valuation pertained to threedomestic and seven foreign companies.
47
The financial statements of Bosch Group Worldwide include the individualstatements of our subsidiaries which conform to uniform principles of classifi-cation and valuation.We adhered to the valuation at lower of cost or market and imparity of gain orloss recognition. Financial statements of foreign associated companies were not modified tocomply with the uniform accounting principles of the consolidated group.Intangible assets including goodwill resulting from first-time consolidations aswell as tangible and financial assets were valued at acquisition cost or cost ofmanufacture subject to depreciation. We applied straight-line as well as accelerated depreciation methods. Items ofminor value were fully depreciated during the year of acquisition. We appliedspecial depreciation allowances according to tax regulations in all countries.Interest-free and low-interest loans were adjusted to reflect present values byapplication of a uniform discount rate domestically, and prevailing rates inforeign countries.
(3) Principles of classificationand valuation
(4) Currency translation Accounts receivable and accounts payable stated in foreign currencies weretranslated to DM equivalents at the less favorable of the exchange rate at thedate of origin, or at the balance-sheet date. For the translation to DM of the financial statements in foreign currencies andthe related profits and losses, we applied, in principle, average exchange ratesat the balance-sheet date. Transactions pertaining to fixed assets were translatedat average annual DM equivalents. Resulting differences were included withbeginning balances of cost of acquisition or manufacture as well as in cumula-tive depreciation. Tangible fixed assets of our subsidiaries in Brazil were valued at their originalcarried-forward DM equivalents of cost of acquisition or manufacture. Depre-ciation was based on historic values.Income and expenses were translated at average exchange rates. Differencesresulting from the application of average exchange rates versus year-endexchange rates were included with other operating expenses.
(5) Consolidation principles For capital consolidation of companies or for newly acquired capital shares, weapplied the book-value method at the date of acquisition or at the date of first-time consolidation. As far as possible, we allocated amounts subject to capital-ization to the respective assets. Remaining amounts were included with good-will. Negative goodwill resulting from capital consolidation was included withearned surplus. Receivables and payables, sales, expenses, and income, as well as results withinthe consolidated group were eliminated.
(6) Fixed assets Extraordinary depreciation amounting to 384 million DM pertained mostly togoodwill and to financial investments. In accordance with tax regulations, we deducted an extra 41 million DMdirectly from the acquisition costs of tangible fixed assets. The depreciation wastaken pursuant to Section 6b of the Income Tax Law, Section 4 of the Devel-opment Area Law, and pursuant to local tax laws at our foreign subsidiaries.The development of fixed assets is presented on pages 44 and 45 of this report.
(7) Inventories Included with the stated value of inventories, in the amount of 5,989 millionDM, are our advance payments of 45 million DM (1997: 41 million DM). Onthe other hand, advance payments received in the amount of 201 million DM(1997: 302 million DM) were deducted.
(8) Accounts receivableand other assets
Million DM 1998 1997Accounts receivable 7,968 7,522
including maturities of more than one year 17 30Other receivables and assetsReceivables from affiliated companies 269 247
including maturities of more than one year 15Receivables from companies in which
interests are held 112 95including maturities of more than one year 9
Other assets 1,725 1,534including maturities of more than one year 182 166
2,106 1,876
Receivables and other assets 10,074 9,398
48 49
Additions to interests in associated companies include shares purchased as wellas capital contributions and prorated profits. Retirements include proratedlosses, dividends paid and shares sold.We valued inventories at the lower of average purchase or manufacturing cost ormarket. Manufacturing costs include direct costs and reasonable overhead.At domestic companies, the Lifo valuation method was used in principle. We usedthis method also at foreign subsidiaries when accepted by the taxing authorities.We provided for risks inherent in warehousing and distribution through appropri-ate deductions. Additional write-downs were taken in cases of unfavorable returns. Accounts receivable and other current assets were stated at face values lesswrite-downs for individual risks and for general credit risks. Interest-free orlow-interest receivables with maturities of more than one year were discounted.We valued marketable securities included in current assets at the lower of acqui-sition cost or market.Special write-downs of marketable securities of 7 million DM were taken onaccount of expected price fluctuations.In determining the size of accruals we provided for all identifiable risks. Pension accruals and similar liabilities were determined by the application ofactuarial principles and were discounted to reflect present values. For domesticcompanies, we used a 6 % discount rate in accordance with the 1998 guidelinetables, while foreign subsidiaries used discount rates prevailing in their respec-tive countries.In determining the amounts accrued for pending transactions with expectedlosses, we basically took account of prices and costs expected at the time thesetransactions would close.Liabilities were stated at the amounts owed.
Profits from sales to the consolidated group by associated companies were noteliminated since they were insignificant.Deferred tax assets resulting from consolidation measures in the amount of 81million DM were included with other assets.
The subscribed capital stock of 1,800 million DM and the capital surplus of4,630 million DM correspond to the respective balance-sheet items of RobertBosch GmbH. Capital stock and capital surplus at Robert Bosch GmbH wereincreased in 1998 by 300 million and 1,735 million DM respectively by appli-cation of the “pay-out-and-reinvest” method.
(9) Equity capital
Million DM 1998 1997Earned surplus of Robert Bosch GmbH 670 150Other earned surplus 4,127 4,078
4,797 4,228
Unappropriated earnings of the consolidated group are identical to those ofRobert Bosch GmbH.
Revenue surplus accounts consist of the following:
(10) Accruals withvaluation reserve portion
Accruals with valuation reserve portion were formed pursuant to Section 6b ofthe Income Tax Law, Section R 34 of the Income Tax Regulations, Section 12of the Reorganization Tax Law and Section 1 of the DDR Investment Law. Ourforeign subsidiaries followed local regulations with respect to such items.
(11) Other accruals Million DM 1998 1997Accrued taxes 296 410Other accruals 9,019 9,186
9,315 9,596
(12) Liabilities Including Includingmaturities maturitiesup to one up to one
Million DM 1998 year 1997 yearLiabilities with banks 1,979 564 1,713 548
Accounts payable 3,557 3,557 3,419 3,418
Other liabilitiesLiabilities from acceptances
and drafts 216 216 190 190Liabilities with affiliated companies 45 45 53 53Liabilities with companies in which
interests are held 114 114 154 154Other liabilities 2,200 1,885 2,079 1,752
2,575 2,260 2,476 2,149
Total liabilities 8,111 6,381 7,608 6,115
Of the liabilities with banks, 58 million DM were secured by mortgages andanother 49 million DM by other liens. Of other liabilities, 9 million DM weresecured by mortgages.Other liabilities contain tax liabilities in the amount of 465 million DM (1997:515 million DM) and liabilities pertaining to social obligations in the amount of352 million DM (1997: 373 million DM). Liabilities with shareholders in theamount of 8 million DM pertain to Robert Bosch Stiftung GmbH. Liabilities with maturities of more than 5 years amounting to 1,179 million DMincluded 1,159 million DM of liabilities with banks and 20 million DM of otherliabilities.
(13) Contingent liabilities Million DMContingent liabilities from the issuance or transfer of notes 180
including affiliated companies 20Contingent liabilities from guarantees 250
including affiliated companies 20Contingent liabilities from warranties 87
including affiliated companies 6Contingent liabilities from collateral given for third-party liabilities 15
including mortgages 7
As a partner in two foreign private companies, we are jointly and severally liablein accordance with legal requirements.
(14) Other financial obligations Other financial obligations of significance for an opinion on the financialcondition of the company did not exist.
(15) Breakdown of sales Million DM 1998 % 1997 %Sales by business sectorsAutomotive equipment 31,797 63.2 28,736 61.3Communications technology 5,014 10.0 4,964 10.6Consumer goods 11,357 22.5 11,054 23.6Capital goods 2,165 4.3 2,097 4.5
50,333 100.0 46,851 100.0
Sales by regionsCountries of the European Union 34,589 68.7 31,109 66.4Rest of Europe 2,449 4.9 2,241 4.8America 10,183 20.2 9,791 20.9Asia, Africa, Australia 3,112 6.2 3,710 7.9
50,333 100.0 46,851 100.0
50 51
(16) Changes in finished goods andwork-in-progress inventoriesand other capitalized costs
Million DM 1998 1997Change in finished goods and
work-in-progress inventories 184 334Other capitalized costs 367 319
551 653
(17) Other operatingexpenses and income
Expenses resulting from additions to accruals with valuation reserve portion inthe amount of 20 million DM are included in other operating expenses. Incomefrom the reversal of accruals with valuation reserve portion in the amount of 7 million DM are included in other operating income.
(18) Costs of materials Million DM 1998 1997Cost of raw materials, supplies and merchandise 21,940 20,350Purchased services 1,757 1,485
23,697 21,835
(19) Personnel costs Million DM 1998 1997Wages and salaries 12,125 11,279Social security, pension plans, and support payments 3,450 3,080
of which pension plans 1,141 87715,575 14,359
1998 Including 1997 IncludingTotal BSH Total BSH
(prorated) (prorated)Countries of the
European Union 127,568 11,778 121,690 11,360Rest of Europe 9,369 2,574 8,076 2,563America 32,082 2,598 30,702 2,218Asia, Africa, Australia 18,998 33 19,251 17
188,017 16,983 179,719 16,158
Average numbers of employees during the year, by region:
(20) Income (– loss)from investments
Million DM 1998 1997Income from investments 23 22
including affiliated companies 10 6Result from associated companies –1 –92
22 –70
(21) Interest income,net of expenses
Million DM 1998 1997Interest from loans included
with financial investments 10 9including affiliated companies 8 6
Other interest and similar income 584 515including affiliated companies 6 6
Interest and similar expenses – 288 – 279including affiliated companies – 1 – 2
306 245
(22) Tax expenses Million DM 1998 1997Taxes on income 950 1,136Other taxes 226 288
1,176 1,424
(23) Profit and loss ofminority shareholders
Million DM 1998 1997Profits 84 111Losses –18 –6
66 105
(24) Compensation of themembers of the Board ofManagement and of theSupervisory Council
During 1998, the aggregate compensation of the members of the Board ofManagement of Robert Bosch GmbH amounted to 8 million DM. Formermembers of the Board of Management and their dependents received 9 millionDM, and the members of the Supervisory Council one million DM.Accruals at Robert Bosch GmbH for pension liabilities for former members ofthe Board of Management and their dependents amounted to 95 million DM.The members of the Supervisory Council and the Board of Management ofRobert Bosch GmbH are listed on pages 4 and 5.
Other taxes are included in other operating expenses. The impact of tax allowances on the profit for the fiscal year as well as in formeryears, and the size of future burdens from the resulting valuations are ofsecondary significance.
(25) Shareholdings of Bosch Group Worldwide
A listing of the shareholdings of the consolidated Bosch Group will be depos-ited with the commercial registry of the Stuttgart Court.
Stuttgart, March 9, 1999 Robert Bosch GmbHThe Board of Management
Auditor’s opinion The accounting and the consolidated financial statements of Robert BoschGmbH as of December 31, 1998, which we have audited in accordance withprofessional standards, comply with legal provisions. With due regard to gen-erally accepted accounting principles the consolidated financial statements givea true and fair view of the company’s assets, liabilities, financial position andprofit and loss. The management report to the consolidated financial statementsis consistent with the contents thereof.
Stuttgart, March 9, 1999 Schitag Ernst & YoungDeutsche Allgemeine Treuhand AGWirtschaftsprüfungsgesellschaft
Dörner Dr. PfitzerWirtschaftsprüfer Wirtschaftsprüfer
52 53
Name Location Equity Equity Sales 2 ProfitCapital Capital 2 or loss 2
% owned1 million DM million DM million DMGermanyBlaupunkt-Werke GmbH Hildesheim 100 183 1,561 PLT 3
BSH Bosch und Siemens Hausgeräte GmbH4 Munich 50 1,193 10,283 17Bosch Telecom GmbH Stuttgart 100 539 4,180 PLT 3
Bosch Telecom Leipzig GmbH Leipzig 100 44 203 PLT 3
BT Magnet-Technologie GmbH Herne 50 52 142 11Hawera Probst GmbH Ravensburg 100 40 121 9Robert Bosch Fahrzeugelektrik Eisenach GmbH Eisenach 100 76 737 13VB Autobatterie GmbH Hanover 35 97 407 – 2
Foreign CountriesEuropeNV Robert Bosch SA Anderlecht/Belgium 100 44 344 4Robert Bosch Produktie NV Tienen/Belgium 100 111 428 34Robert Bosch A/S Ballerup/Denmark 100 50 200 11Bosch Telecom Danmark A/S Pandrup/Denmark 100 24 483 19Robert Bosch (France) SA4 Saint-Ouen (Paris)/France 100 629 3,305 33Robert Bosch Ltd Denham/U.K. 100 209 1,118 57Worcester Group plc4 Worcester/U.K. 100 59 350 18Robert Bosch SpA4 Milan/Italy 100 96 649 –23Robert Bosch Sistemi Frenanti SpA Crema/Italy 100 76 395 –24Robert Bosch BV Hoofddorp/Netherlands 100 42 222 15Van Doorne’s Transmissie BV Tilburg/Netherlands 100 25 66 1Robert Bosch A/S Trollaasen (Oslo)/Norway 100 23 108 2Robert Bosch AG Vienna/Austria 100 110 604 24Blaupunkt Auto-Rádio Portugal Lda Braga/Portugal 100 54 450 8Vulcano Termo-Domésticos SA Aveiro/Portugal 100 126 276 28Robert Bosch AB Kista (Stockholm)/Sweden 100 15 151 5Robert Bosch Internationale Beteiligungen AG Zurich/Switzerland 90 708 73Robert Bosch AG Zurich/Switzerland 100 25 239 5Scintilla AG Solothurn/Switzerland 85 543 1,093 62Robert Bosch España SA4 Madrid/Spain 100 387 2,200 18Robert Bosch spol. s r.o. Ceské Budejovice/Czech Republic 100 63 224 12Bosch Diesel spol. s r.o. Jihlava/Czech Republic 100 39 162 16Bosch Sanayi ve Ticaret AS Bursa/Turkey 100 111 317 47
Major Companies of the Bosch Group Worldwide(as of December 31,1998)
Name Location Equity Equity Sales 2 ProfitCapital Capital 2 or loss 2
% owned1 million DM million DM million DMAmericaRobert Bosch Ltda4 Campinas/Brazil 100 500 1,821 37Robert Bosch SA de CV Toluca/Mexico 100 144 583 –17Robert Bosch Corporation4 Broadview (Chicago)/USA 100 1,700 6,353 –22S-B Power Tool Company4 Chicago/USA 100 338 1,376 113Vermont American Corporation4 Louisville/USA 50 327 733 30
Asia, AustraliaMotor Industries Co Ltd Bangalore/India 51 162 554 28Bosch KK Yokohama/Japan 100 114 536 1Nippon ABS Ltd Yokosuka-shi/Japan 50 224 518 11Nippon Injector Corporation Odawara-shi/Japan 35 62 157 5Zexel Corporation Shibuya-ku (Tokyo)/Japan 32 1,195 3,241 25Doowon Precision Industry Co Ltd Seoul/Korea 20 22 153 –12KEFICO Corporation Kunpo-Si/Korea 25 79 148 1Robert Bosch (Malaysia) Sdn Bhd Penang/Malaysia 100 37 170 11Robert Bosch (South East Asia) Pte Ltd Singapore/Singapore 100 37 197 2Robert Bosch (Australia) Pty Ltd4 Clayton (Melbourne)/Australia 100 116 631 12
1 Shares held directly and indirectlyby Robert Bosch GmbH
2 Translation of foreign currenciespertaining to equity capital and profitand loss stated at averageexchange rates at the balance-sheet date;sales stated at averageexchange rates of the year
3 Profit and loss transfer agreement (PLT)4 Represents a consolidated sub-group
54 55
Financial Statements of Robert Bosch GmbHBalance Sheet as of December 31, 1998
56
Financial Statements of Robert Bosch GmbHStatement of Incomefor the period from January1 to December 31,1998
1998 1997million DM million DM
Sales 26,473 23,174Changes in finished goods and work-in-progress inventories
and other capitalized costs 209 185Total operating performance 26,682 23,359
Other operating income 1,841 2,278
Costs of materials –15,737 –13,215Personnel costs –6,351 –5,800Depreciation of intangible and tangible fixed assets –1,249 –871Other operating expenses –4,432 –3,978
Income from investments 300 398Amortization of financial investments and securities included
with current assets –316 –363Interest income, net of expenses 374 280Income from ordinary business activities 1,112 2,088
Taxes on income – 512 –679
Net income for the year 600 1,409
Removals from surplus accounts 800
Additions to surplus accounts –520
Unappropriated earnings 80 2,209
Assets
57
December 31,1998 December 31,1997million DM million DM
Fixed assetsIntangible fixed assets – –Tangible fixed assets 3,112 2,497Financial investments 4,076 4,233
7,188 6,730
Current assetsInventories 2,035 1,890Accounts receivable and other assets
Accounts receivable 2,999 2,547Other receivables and assets 2,635 2,189
Marketable securities 4,786 5,072Liquid assets 318 659
12 ,773 12,357
Deferred expenses 8 7
19,969 19,094
Liabilities
Equity capitalCapital stock 1,800 1,500Capital surplus 4,630 2,895Earned surplus 670 150Unappropriated earnings 80 2,209
7 ,180 6,754
Accruals with valuation reserve portion 16 1
AccrualsAccruals for pensions and similar obligations 4,333 4,100Other accruals 5,296 5,472
9,629 9,572
LiabilitiesLiabilities with banks 4 7Accounts payable 994 849Other liabilities 2,146 1,911
3,144 2,767
Deferred income
19,969 19,094
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Sales 30,588 31,824 33,600 34,432 32,469 34,478 35,844 41,146 46,851 50,333Foreign share as a percentage of sales 52 51 48 47 49 54 56 61 65 65
Research and development expense 1,803 2,042 2,144 2,302 2,215 2,255 2,474 2,887 3,257 3,478as a percentage of sales 5.9 6.4 6.4 6.7 6.8 6.5 6.9 7.0 7.0 6.9
Investments in tangible fixed assets 2,064 2,790 2,273 2,038 1,552 1,578 2,056 2,419 2,905 3,773including domestic 1,259 1,708 1,464 1,347 990 960 1,255 1,270 1,376 1,930including foreign 805 1,082 809 691 562 618 801 1,149 1,529 1,843as a percentage of sales 6.7 8.8 6.8 5.9 4.8 4.6 5.7 5.9 6.2 7.5as a percentage of depreciation 128 162 126 103 85 90 117 117 125 148
Depreciation on tangible fixed assets 1,607 1,725 1,799 1,976 1,836 1,747 1,757 2,059 2,321 2,546
Employees – annual average –(000 omitted) 175 180 181 177 165 156 158 172 180 188including domestic 117 118 117 113 104 95 92 91 91 94including foreign 58 62 64 64 61 61 66 81 89 94as of January 1 of following year 178 181 177 170 157 154 157 176 181 190
Personnel costs 10,202 10,718 11,403 11,838 11,692 11,439 11,476 13,017 14,359 15,575
Total assets 22,205 23,544 24,247 24,452 25,447 27,373 28,504 32,273 34,906 36,343Fixed assets 6,064 7,147 7,467 7,769 7,003 6,650 6,957 10,784 12,013 12,703
as a percentage of total assets 27 30 31 32 27 24 24 33 34 35Equity capital 6,668 7,050 7,471 7,859 8,304 8,563 9,038 9,527 11,377 11,869
as a percentage of total assets 30 30 31 32 33 31 32 30 33 33Cash flow 3,433 3,104 3,267 3,501 3,717 3,765 3,245 3,539 5,219 4,904
as a percentage of sales 11.2 9.8 9.7 10.2 11.4 10.9 9.1 8.6 11.1 9.7Net income for the year 626 560 540 512 426 512 550 500 1,659 850Unappropriated earnings
(Dividends of Robert Bosch GmbH) 43 43 43 60 60 60 68 68 2,209 80
Values in million DM
Ten Year Statistics Bosch Group Worldwide
58
