Editorial and group management report

If we want to set things in motion, change them for the better, whether globally or locally, we have to set goals that motivate, inspire, and create purpose. Goals that benefit the individual and society as a whole.

In this context, “Invented for life” provides the focus for Bosch. It is our passion and our motivation. To achieve it, we develop products and technology, embrace partnerships and acquisitions, continuously improve our competitiveness.

We aim to play a leading role in the growing HVAC market, to enter the electrolysis business for the sake of a climate-friendly power supply, to invest billions in the chips that keep the world turning. And we are stepping up our operations in software solutions and services for more safety, security, and convenience.

In all this, Bosch deliberately preserves its diversification: the biggest automotive supplier, a leading supplier of equipment for manufacturers and tradespeople, the first choice for solutions for buildings and homes. We don’t just want to hold this position, but to extend it: it’s our ambition to be among the three leading companies in all our fields of business, to create an even better regional and economic balance in our operations, and in this way to unlock our full potential as a diversified technology group. We can do even better.

“Ambitions,” the title of this year’s annual report, illustrates our aspiration and determination, even in a difficult economic environment. Ambitions formulated by people, for people. Ambitions for people and the environment. So that technology “Invented for life” can flourish. Technology made by Bosch.

The Bosch Group continued to pursue its ambitious strategy of strengthening its global market position, even though conditions in 2024 slowed business developments and were even tougher than expected. One significant strategic step is the acquisition announced in the heating, ventilation, and air-conditioning technology business, which is intended to significantly expand our global presence and product portfolio in this segment. Global economic growth was again subdued. Above all, the Bosch Group’s core markets failed to provide any stimuli. It was not only global vehicle production that fell. In addition, important technologies in which considerable upfront investments have been made, particularly in the mobility domain, have either yet to take off or are developing differently from region to region, and this is causing additional burdens. The situation was also especially challenging in the mechanical engineering market and the construction industry. Against this backdrop, it was not possible to realize our sales revenue and earnings expectations for 2024, which cannot be satisfactory for us. Sales revenue declined by 1.4 percent to 90.3 billion euros in nominal terms and by 0.5 percent after adjusting for exchange-rate effects. EBIT margin from operations comes to 3.5 percent, compared with 5.3 percent in the previous year. This decline was driven not only by market developments but also by additional structural measures. These measures, taken in light of the difficult business environment over the course of 2024, initially have a negative impact on result. The business sectors were affected to varying degrees. With the exception of Consumer Goods, all business sectors had to cope with declining sales revenue. However, all business sectors disclose a positive result for 2024.

The 2025 fiscal year will also be challenging, partly due to the uncertainties in global trade and economic relations. The aim is to grow Bosch Group sales revenue in the range of at least 1 to 3 percent and to improve the margin from operations. Our forecasts do not yet include the effects of the portfolio changes resulting from the planned acquisition in the heating, ventilation, and air-conditioning business and from the divestment of major parts of the Building Technologies division’s product business. These transactions are expected to be completed in the course of 2025, subject to the necessary regulatory approvals. Extensive measures will also help increase competitiveness in 2025. Some of the planned structural adjustments will not have an impact on result until the 2026 fiscal year. Despite these burdens, we are committed to continuing our ambitious long-term growth strategy.