📋 Tender Overview
In the 2020 business year the Bosch Group achieved a positive result despite the effects of the coronavirus crisis and the decline in automotive production. In fact the supplier of technology and services performed better than initially expected. According to preliminary figures earnings before interest and taxes EBIT amounted to some 1.9 billion euros. This puts the estimated EBIT margin at around 2.5 percent. After adjusting for restructuring expenditure estimated EBIT is approx. 3.3 billion euros a margin of roughly 4.5 percent. Total Bosch Group sales amounted to 71.6 billion euros a year-on-year drop of 4.4 percent after adjusting for exchange-rate effects. Despite the effects of the pandemic we were able to achieve a very positive result. Above all we have the extraordinary commitment of our associates to thank for that said Dr. Volkmar Denner chairman of the board of management of Robert Bosch GmbH at the presentation of the preliminary business figures. The companys broad diversification and global footprint also proved their worth he added. By investing in areas of future importance such as sustainable mobility the internet of things and artificial intelligence we are further expanding our innovation leadership. In particular Bosch believes that AIoT the combination of artificial intelligence AI and the internet of things IoT will create growth opportunities in markets worth billions. We want to become a leading AIoT company Denner said. On the strength of our broad domain knowledge and extensive expertise in electronics and software we have more at our disposal than most of our competitors.Decisive action high free cash flow ensures financial leewayAfter Bosch sales plummeted in wake of the spring lockdown affecting many countries and industries they recovered substantially in the second half of 2020. We are very satisfied with the way business developed overall in 2020 despite the crisis said Prof. Stefan Asenkerschbaumer the CFO and deputy chairman of the board of management. We acted quickly to align our costs and capital expenditure with the decline in sales without neglecting promising new areas of business. As a result Bosch generated free cash flow of around 5 billion euros the highest figure in the companys history thus ensuring the company had sufficient financial leeway in the crisis. With a capex ratio of around 5 percent Bosch was able to save around one billion euros of cash compared with the previous year.Sustainable growth with climate neutrality and electromobilityDespite the crisis Bosch is continuing to focus its strategy on areas of future importance while placing an emphasis on sustainable business practices. The company marked a significant milestone in spring 2020 when undeterred by the pandemic it achieved climate neutrality at its 400 locations worldwide. We kept to our word. According to in-house calculations Bosch became the first globally operating industrial enterprise to achieve climate neutrality in spring 2020 earlier with fewer offsets and more cost effectively than planned Denner said explaining that an independent audit is currently being carried out. He also reaffirmed Boschs next goal which is a 15 percent reduction in CO emissions along the supply chain by 2030.Bosch is passing on its experience in achieving climate neutrality with other companies through the Bosch Climate Solutions operating unit whose customers include Freudenberg Hansgrohe and Koehler Paper Group. Our new advisory service is paving the way for companies to become climate neutral while also opening up new areas for growth Denner said.For that reason one focus for Bosch is new and improved technical solutions for the future of driving. On the road to sustainable mobility he explained the company has already invested 5 billion euros in electrical powertrains. And this year Bosch will spend 700 million euros on developing electrical mobility solutions including fuel cells. This is nearly 40 percent more than last year. In the foreseeable future electromobility will become one of Boschs core businesses. Our goal is to become the market leader in electromobility for battery- and fuel-cell-powered vehicles Denner said. We already have a broader e-mobility portfolio than any other company from e-bikes to trucks. The heavy upfront investments Bosch has made in this area are paying off the companys powertrain electrification business is currently growing twice as fast as the market and is already worth several billion euros Denner explained. Since 2018 Bosch has acquired 90 powertrain electrification projects including 30 last year alone worth 7.5 billion euros. More than 2.5 million vehicles around the world currently feature Bosch electric powertrain components.Structural change calls for smooth transitionAccording to Denner structural change in the industry and the upcoming introduction of the Euro7 regulation put the automotive sector in a challenging transition phase. Electromobility is coming and Bosch has been actively driving forward this shift for years he said. But the upfront investments to finance it have to come from our existing powertrain business. To keep as many associates as possible on board during this transformation he added it is crucial for Bosch and other companies that the transition be smooth. Electric cars are carbon neutral when they run on renewable electricity and the same goes for diesel and gasoline cars provided they run on synthetic fuels. We shouldnt allow the upcoming Euro7 regulation to squander this opportunity to mitigate global warming. Even now modern diesel and gasoline engines no longer have a significant impact on urban air quality. Just because something is socially and economically right it doesnt have to be ecologically wrong
