Business segment Development in 2022: The Automotive and Intelligent Transportation Technology business had the strongest sales performance

“Despite the impact of the chip shortage and the weak economy, Bosch achieved sales growth in all business segments.” Dr. Markus Forschner, Board Member and Chief Financial Officer of the Bosch Group. Among them, automotive and intelligent transportation technology achieved a 17% increase in sales in 2022, reaching 52.6 billion euros, with a growth rate of 12% after adjusting for the impact of exchange rates, once again becoming the highest sales segment. “Although sales growth in this segment was higher than automotive production growth,” Dr. Forschner noted that profit margins were not optimistic, mainly due to increased supply chain costs, as well as the impact of pre-investment in the transformation of the automotive and intelligent transportation technology business. Sales in the Industrial technology business increased 14 per cent to €6.9 billion, or 11 per cent after adjusting for currency effects. Dr. Forschner said that the acquisition of HydraForce and Elmo is an important milestone for Bosch’s industrial technology business segment. “The consumer goods business achieved modest sales growth despite lower consumer purchase intentions for home appliances and power tools,” said Dr. Forschner. Sales in this segment increased 2 percent to 21.5 billion euros, with growth rising to 3 percent after adjusting for currency effects. He also noted that growth in the energy and building technology business reflects the growing demand for energy-efficient home heating and building technologies. Sales in this segment increased 15 percent to 7 billion euros, or 13 percent after adjusting for currency effects.

Fiscal year 2022: Sales increased in all business segments

Regional Business Performance 2022: Strong growth in the second half

“It is encouraging to see that the Bosch Group achieved significant sales growth in all markets, particularly in the second half of 2022.” Dr. Forschner said. Sales in Europe rose 8 per cent to €44.8 billion, or 10 per cent after adjusting for currency effects. “The conflict in Europe has had a more serious impact on the Group’s development in the European market than in other regions.” Dr. Forschner said. Sales in North America increased 25 percent to 14.3 billion euros, or 11 percent after adjusting for currency effects, the second highest sales growth among all Bosch Group regions. Dr. Forschner added that the development of Bosch’s heating and air conditioning business in the region is particularly encouraging. Sales in South America increased by 30% year-on-year to €1.8 billion, or 21% after adjusting for currency effects, outpacing all other regions, with Dr. Forschner noting that “a strong economy is a key factor in the Group’s business growth.” Sales in Asia Pacific rose 12 percent to 27.5 billion euros, or 8 percent after adjusting for currency effects.

Fiscal year 2022: Sales increased in all regions

Bosch maintained growth in China in 2022

Despite the challenges posed by the pandemic, energy and supply chain shortages, Bosch’s sales in China grew thanks to recovering demand in the automotive, energy and building technology markets. According to preliminary data, Bosch Group’s sales in China in 2022 amounted to 132.3 billion yuan (about 18.7 billion euros), an increase of 3.2% year-on-year. Currency-adjusted sales in China accounted for about 21% of group sales. For the Bosch Group, China remains a market full of potential and vitality. Bosch will continue to adhere to the strategy of “localization”, deepen layout investment in key areas such as new energy and autonomous driving, create suitable and innovative products and services tailored for the Chinese market, and actively support the high-quality development of the local automobile and industry.

Employee Development in 2022: Approximately 18,000 employees added worldwide

As of December 31, 2022, the Bosch Group employed approximately 420,300 people worldwide, an increase of approximately 18,400 people, or about 4%, compared to the previous year. The number of employees at the German headquarters increased by 2,600 to 133,400. “About 50 percent of the new hires are in research and development,” Dr. Forschner said. The total number of employees in the R&D field is 84,800, of which 44,000 are software development talents.

Outlook for 2023: Global economic growth loses momentum

Bosch expects the global economy to grow at a slower pace in 2023, or less than 2 percent. “The global business environment is already reflecting the economic burden.” “Rising interest rates are putting pressure on investment, especially construction and personal consumption,” Dr. Forschner said. In Europe, even though interest rates have fallen recently, rising energy costs are complicating the situation. At the same time, the liberalization of China’s epidemic prevention policy is expected to boost economic recovery. Dr. Forschner said that Bosch has already felt the economic slowdown in its key business segments and expects cost pressures to continue in the value chain. Nevertheless, Bosch will still invest a lot of money to support the research and development of future technologies. “As an innovative company, Bosch has to make a lot of upfront investments,” he noted. In 2023, Bosch aims to increase sales and further strengthen profitability. “Bosch is working towards its long-term target margin of at least 7 per cent.” Dr. Forschner added, “In this economic wave, Bosch will continue to make investments and potential acquisitions while safeguarding its profitability and financial strength.”