CROSSROADS
Annual report 2023

Bosch is a nexus – a place where paths intersect and the most disparate trends
and developments converge. Here, input becomes output, and Bosch output­becomes input for others.
Bosch can draw from its great technological potential as a diversified industrial
group: mobility, capital goods, consumer goods, buildings, and energy. Barely
any other company is so diverse, so networked, and so active in central areasof people’s lives. Bosch rests on many pillars, and they give it its resilience andensure its long-term business success. Not only that: Bosch also combines­expertise from different industries in order to apply technologies across sectoral
domains. A corporate structure such as ours creates a wealth of opportunities,
but also challenges. A company that is so widely diversified and has such a broad
footprint is constantly in the spotlight, and this on many different levels. Con­
sequently, Bosch repeatedly finds itself at forks in the road, at crossroads, andhas to decide which path to take.
And it is to this situation that “Crossroads,” the title of this year’s annual report,
refers – how Bosch determines the company’s future direction in times of fundamental change and uncertainty, how it orients to the growth opportunities ofthe ­future, and how its opens up new fields of business while optimizing existing
ones. “Crossroads” epitomizes our quest to take the right path for Bosch.

Annual report 2023

02

Table of contents
04 The Bosch Group112 Consolidated financial statements

05

Key data

114

06

Bosch at a glance

115 Consolidated statement of comprehensive income

08

Foreword

116 Consolidated statement of financial position

10

Board of management

118 Consolidated statement of changes in equity

14

Supervisory board ­report

119 Consolidated statement of cash flows

16

Supervisory board

121 Notes to the consolidated financial statements

18

Industrial Trust and International Advisory
Committee

211 List of shareholdings of the Bosch Group

19

Business sectors

21

Highlights 2023

246 Additional information

25

Stories

247 List of graphs and tables

28 Robert Bosch Stiftung
35 Group management report
39

Fundamental information about the group52

Prospects for the Bosch Group

83

Report on economic position

100 Outlook
104 Report on opportunities and risks

Consolidated income statement

241 Auditor’s report

250 Ten-year summary of the Bosch Group251 Publishing details

Annual report 2023

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The Bosch Group

Annual report 2023

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Key data

Key data

Annual report 2023

05

in millions of euros
2023

2022

91,596

88,201

3.8

12.0

Research and development cost

7,331

7,224

as a percentage of sales revenue

8.0

8.2

4,503

3,474

4.9

3.9

4,824

3,816

5.3

4.3

Profit after tax

2,640

1,838

Capital expenditure

5,499

4,896

161

141

108,330

100,247

47,89446,727as a percentage of total assets

44

47

Dividend of Robert Bosch GmbH

170

162

429,416

421,338

Sales revenue
percentage change from previous year

EBIT
as a percentage of sales revenue
EBIT from operations
as a percentage of sales revenue

as a percentage of depreciation
Balance-sheet total
EquityHeadcount at 12/31 of the year

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Bosch at a glance
The Bosch Group is a leading global supplier of technology and services. It employs
roughly 429,000 associates worldwide (as of December 31, 2023). The company­generated sales revenue of 91.6 billion euros in 2023. Its operations are divided into
four business sectors: Mobility, Industrial Technology, Consumer Goods, and Energyand ­Building Technology. Universal trends such as automation, electrification, digi­talization, and connectivity, as well as an orientation to sustainability, are increasingly
determining the group’s business operations. In this context, Bosch’s broad footprint
as a global and diversified technology company strengthens its innovativeness and­robustness.
Bosch uses its proven expertise in sensor technology, software, and services to offer
customers cross-domain solutions from a single source. It also applies its expertisein connectivity and artificial intelligence in order to develop and manufacture intelligent,user-friendly, and sustainable products. With technology that is “Invented for life,”
Bosch wants to help improve quality of life and conserve natural resources. With its
more than 400 locations worldwide, the Bosch Group has been carbon neutral overall(scopes 1 and 2) since 2020. As part of this, residual emissions of 581,000 metrictons of CO 2 were offset with carbon credits in 2023. Year on year, this is a decreaseof ­roughly 136,000 metric tons of CO 2 , or 19 percent. 1

1. Scopes 1, 2, and 3 are used in accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting­Standard. For further details about the Bosch Group’s carbon neutrality (scopes 1 and 2), see the section “Strategy andinnovation” (page 57).

Annual report 2023

Bosch at a glance

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The Bosch Group comprises Robert Bosch GmbH and its roughly 470 subsidiary andregional companies in over 60 countries. Including sales and service partners, Bosch’s
global manufacturing, engineering, and sales network covers nearly every country
in the world. Bosch’s innovative strength is key to the company’s further development.
At 136 locations across the globe, Bosch employs some 90,000 associates in researchand development, of which nearly 48,000 are software engineers.
The company was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership­structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the BoschGroup, making it possible for the company to plan over the long term and to undertake significant upfront investments in the safeguarding of its future. Ninety-four percentof the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH,a charitable foundation. The remaining shares are held by Robert Bosch GmbH andby a corporation owned by the Bosch family. The majority of voting rights are held byRobert Bosch Industrietreuhand KG.

Annual report 2023

Bosch at a glance

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Foreword

Foreword

Annual report 2023

08

Ladies and gentlemen,“Crossroads,” the title of this year’s annual report, stands forthe many fundamental decisions Bosch has to make with­respect to its future course. In continuing our strategy, oursights are fixed on our aim, as a leading technology company,of helping shape tomorrow’s world with innovations that are“Invented for life.” In this context, we believe that our techno­
logical diversification – from mobility via industrial technolo­
gy and consumer goods to energy and building technology –puts us at an advantage. As the past has repeatedly taught us,
it contributes to our company’s robustness and thus, in linewith the mission handed down to us by the company founder
Robert Bosch, to its independence. In times of upheaval,
however, this diversification demands a lot from us. For whenthe markets in diverse areas of business are changing in manydifferent ways – whether with respect to electrification, auto­
mation, connectivity, competitive structure, or even politicalenvironment – achieving our aims becomes a tough ask. Andeven if trends are clearly visible, it is frequently difficult to­estimate how quickly they will take hold, not least becauseof snowballing regulations. This makes it more difficult tosteer upfront investments and to make adjustments to our
traditional business. What is required, therefore, is decision
making in the face of considerable uncertainty, coupled withthe willingness to regularly reconsider those decisions and,if necessary, revise them.

DR. STEFAN HARTUNG

Nonetheless, we made further progress toward our goals in
2023, even though our strategic challenges were compound­
ed by the lack of any economic tailwind. We achieved ourbusiness targets, as the published figures show. And in many
fields, we also strengthened our market position through­acquisitions and partnerships, whether in semiconductors,

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Today’s radically changing market calls for a strategy
that is as clear as it is flexible and adaptable. It also
calls for considerable tenacity.

in mobile hydraulics for industrial technology, or as a sys­
tems integrator in building technology. In 2023, moreover, we
did a lot of groundwork to make Mobility, our biggest busi­
ness sector, organizationally fit for fundamentally changing
market requirements and the technological challenges of the
future. In doing so, we firmly believe that we are creating thebasis for a strong position as a future mobility provider.
Not only in 2024, but also in the years that follow, the roadahead will remain a demanding one for us. One core task is tomake new technologies such as electromobility and the fuelcell economically viable. But it is not only these technologies
we have to focus on. We are also working to improve our tra­ditional business – the business in which we are currently­successful and earn our money. This includes systematically
carrying out any reorganization measures that are necessary.
During phases of transformation in particular, there is also aneed for active portfolio management. Yet some of our exten­
sive adjustment measures will only bear fruit in future years.
Our aim is further growth – through innovations, partner­
ships, and also acquisitions. At the very least, we want toroughly maintain our improved level of earnings in 2024, andto significantly surpass it in the years ahead. And throughthe highly efficient use of our capital resources, we want to­secure the financial leeway we need for the inorganic growthof our business fields.

We will tackle the tasks ahead with confidence and re­spect. In doing so, we can rely on a strong team of more than
400,000 associates. We owe them, as well as our business
partners and customers, our thanks. I would also like to thankyou, our readers, for your interest in this year’s annual report.
For us, it has traditionally always been more than a statementof accounts. Beyond our business figures and targets, wewant to provide some insights into the ambitions we have forourselves and our company.
With best regards,

Dr. Stefan Hartung
Chairman of the board of management

Annual report 2023

Foreword

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The Bosch board of management

Standing, from left: Stefan Grosch, Dr. Stefan Hartung,Dr. Markus Forschner, Dr. Frank Meyer
Seated, from left: Dr. Markus Heyn, Dr. Tanja Rueckert,
Dr. Christian Fischer

Annual report 2023

Board of management

Effective March 31, 2023,
Filiz Albrecht stepped
down from the boardof management. Stefan
Grosch joined the boardof management as
director of industrial
relations effective
April 1, 2023.
Dr. Frank Meyer joined
the Bosch board ofmanagement effective
February 1, 2024. He
is responsible for the
Energy and Building
Technology businesssector.

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Board of management
Dr. Stefan Hartung

Dr. Christian Fischer

Dr. Markus Heyn

Chairman of the board of management

Deputy chairman of the boardof management

Mobility business sector
Chairman of the Mobility sector board

Technology, Innovation, and Quality
Functions and services– Communications and Governmental Affairs– Corporate Affairs– Field Quality Board– Human Resources Senior Management
Personnel– Intellectual Property– Quality Management– Research and Advance Engineering– Strategy, Organization, and Business­Development– Technology Development UNTIL SEPTEMBER 30, 2023
– Technology Manufacturing

Business area
– Health Care Solutions

Consumer Goods business sector
Energy and Building Technology­business sector UNTIL JANUARY 31, 2024
Functions and services– Growth Acceleration SINCE FEBRUARY 1, 2024
– Inhouse Consulting SINCE FEBRUARY 1, 2024

Business areas– BSH – Home Appliances– Building Technologies UNTIL JANUARY 31, 2024
– Home Comfort1 UNTIL JANUARY 31, 2024
– Power Tools– Smart Home UNTIL JANUARY 31, 2024

Regions
Africa, Southeast Asia UNTIL JANUARY 31, 2024

RegionChina

Dr. Frank Meyer SINCE FEBRUARY 1, 2024
Energy and Building Technology­business sector SINCE FEBRUARY 1, 2024
Business areas– Building Technologies SINCE FEBRUARY 1, 2024
– Home Comfort SINCE FEBRUARY 1, 2024
– Smart Home SINCE FEBRUARY 1, 2024

1. Known as Thermotechnology until March 31, 2023.

Functions and services– Mobility sector board
Commercial Affairs
Operations
Sales and Customers
Technology– Mobility sector functions
Communications and Governmental Affairs
Human Resources, People, and Culture
Purchasing Direct Materials SINCE DECEMBER 1, 2023
Strategy, Go-to-Market, and Business ­E xcellence– Mobility regional board SINCE JANUARY 1, 2024
Americas
China
India
South and East Asia
– Software Development Services

Business areas 2– BEG Automotive Engineering Solutions– Bosch eBike Systems– Cross-Domain Computing Solutions– Electrified Motion– ETAS– Mobility Aftermarket– Mobility Electronics– Mobility Platform and Services SINCE JULY 1, 2023
– Power Solutions– Two-Wheeler and Powersports– Vehicle Motion

2. Owing to a reorganization of the Mobility business sector,
there has been a new organizational structure of the Boschdivisions since January 1, 2024. This applies especially tothe divisions managed up to now as Automotive Aftermarket,
Automotive Electronics, Automotive Steering, Chassis
Systems Control, Electrical Drives, and Powertrain Solutions.

Annual report 2023

Board of management

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Dr. Markus Forschner

Stefan Grosch SINCE APRIL 1, 2023

Dr. Tanja Rückert

Finance and Performance
Industrial Technology businesssector UNTIL JANUARY 31, 2024

Human Resources, Legal, Compliance,
and Sustainability

Digital Business and Services
Industrial Technology businesssector SINCE FEBRUARY 1, 2024

Functions and services– Finance, Reporting, and Treasury– Global Real Estate– Internal Auditing UNTIL JANUARY 31, 2024
– Performance Controlling, Risk Management,
Mergers and Acquisitions– Performance Management UNTIL FEBRUARY 29, 2024
– Real Estate and Facilities– Supply Chain Management– Tax and Customs Duties UNTIL JANUARY 31, 2024
– Transformation and Performance Consulting

Functions and services– Bosch Management Support– Compliance Management– Human Resources People and Culture– Human Resources Transformation– Internal Auditing SINCE FEBRUARY 1, 2024
– Legal– Sustainability, Environment, Health and Safety– Tax and Customs Duties SINCE FEBRUARY 1, 2024

Regions
India, Southeast Asia SINCE FEBRUARY 1, 2024

UNTIL JANUARY 31, 2024

Business areas– Bosch Manufacturing Solutions3
UNTIL JANUARY 31, 2024

– Drive and Control Technology
UNTIL JANUARY 31, 2024

Regions
Europe 1, Turkey

Filiz Albrecht UNTIL MARCH 31, 2023
Human Resources, Legal, Compliance,
and Sustainability
Functions and services– Bosch Management Support– Compliance Management– Human Resources People and Culture– Human Resources Transformation– Legal– Sustainability, Environment, Health and Safety

RegionIndia

3. Known until April 30, 2023, as ATMO – Manufacturing Tools and Systems.

Functions and services– Bosch Digital– Cyber Security– Global Business Services– Information Technology and Digitalization– Residential IoT Services UNTIL DECEMBER 31, 2023
– Security and Safety Things– Software and Digital Solutions– Software Next

Business areas– Bosch Manufacturing Solutions SINCE FEBRUARY 1, 2024
– Connected Industry– Drive and Control Technology SINCE FEBRUARY 1, 2024
– Bosch Global Service Solutions

Regions
Europe 2, Japan, Korea, North America, Oceania,
South America

Annual report 2023

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Mobility sectorboard

Presidentsof the divisions

Dr. Markus Heyn

2023

2024

Rupert Hoellbacher

Owing to a reorganization of the Mobility
business sector, there is now a new­organizational structure of the Boschdivisions (valid since January 1, 2024).

Chairman

Dr. Uwe Gackstatter
Volker Schilling SINCE NOVEMBER 1, 2023

UNTIL OCTOBER 31, 2023

Automotive Aftermarket

Michael Budde

Commercial Affairs

Automotive Electronics

Klaus Mäder

Dr. Gerta Marliani

Operations

Automotive Steering

Andreas Dempf

Claus Fleischer

Sales and Customers

Bosch eBike Systems

Dr. Mathias Pillin

Henning von Boxberg

Technology

Bosch Global Service Solutions

Thomas Quante
Building Technologies

Dr. Steffen Berns

Chassis Systems Control

Christoph Hartung

Cross-Domain Computing Solutions

Steffen Haack

Drive and Control Technology

Volker Schilling
Electrical Drives

Jan Brockmann
Home Comfort

Henk Becker

UNTIL MAY 31, 2023

Claus Fleischer
Bosch eBike Systems

Henning von Boxberg

Bosch Global Service Solutions

Thomas Quante
Building Technologies

Christoph Hartung

Cross-Domain Computing Solutions

Steffen Haack

Drive and Control Technology

Marco Zehe

Electrified Motion

Jan Brockmann
Home Comfort

Rupert Hoellbacher
Mobility Aftermarket

Michael Budde
Mobility Electronics

Dr. Thomas Pauer
Power Solutions

Thomas Donato SINCE JUNE 1, 2023

Thomas Donato

Power Tools

Power Tools

Dr. Thomas Pauer

Dr. Gerta MarlianiPowertrain Solutions

Vehicle Motion

Annual report 2023

Extended executive management

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Supervisory board ­reportSupervisory board­reportAnnual report 2023

14

Ladies and gentlemen,
The Bosch Group is in the midst of a fundamental transforma­tion, and this in an environment marked by great uncertainty.
The company is faced with the demanding task of making
necessary upfront investments in new technologies and ex­
tending its market position through acquisitions on the one
hand, and of orienting its structures to future challenges andimproving its competitiveness on the other. Moreover, thetransformation has to be carried out in a global economic­environment that is likely to remain weak. The supervisoryboard consults very closely with the board of management
and the company in this balancing act between upfront in­vestments in future growth and strengthening profitability
and capital efficiency. The achievement of the company’sbusiness targets in 2023 was an important step in this direc­
tion. The supervisory board would like to thank the board ofmanagement and associates of the Bosch Group for theirgreat dedication and for this achievement.
The supervisory board once again fulfilled its legal and regu­
latory obligations with great care in 2023. It solicited detailed
information about business developments and the businessprospects for the future. One focal point of reporting was the
far-reaching organizational changes in the Mobility businesssector. A further subject that was looked at in detail was thechanges in the competitive landscape for consumer goods.
The board of management reported regularly on its growthstrategy with respect to potential in existing, adjacent, andPROF. DR. STEFAN ASENKERSCHBAUMER
new fields of business, as well as on necessary adjustment
measures. The supervisory board also obtained information
about the measures taken with respect to compliance, to therisk management system and the findings of risk reporting,­ reasto sustainability reporting, and to the challenges in new aof technology. The main items on its agenda also included­financial and investment planning, as well as the 2024 busi­
ness plan.

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Additional information

The Bosch Group is faced with thedemanding task of achieving a balance
between making considerable upfront
investments in the markets of the
future and strengthening profitability
and capital efficiency.

15

In addition, outside of board meetings, the chairman of thesupervisory board was regularly informed by the chairman of
the board of management about current developments andsignificant events in the company. As scheduled, the super­visory board was reconstituted at the end of March 2023. This
did not lead to any changes. Since then, the employee re­p­resentatives Christian Brunkhorst and Jörg Hofmann haveretired from the board, in mid-2023 and at the end of 2023
respectively. They were succeeded in their roles by Adrian
Hermes and Raphael Menez. The supervisory board would
like to thank the former members for their dedication, and the
new members for agreeing to play an active role. In addition
to the already existing personnel committee, which is re­sponsible for personnel issues on the board of management,
an audit committee was set up at the end of March 2023. It isconcerned with matters relating to areas such as accounting,the audit of the financial statements, and corporate gover­nance systems.
EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft audited
the Robert Bosch GmbH annual financial statements and con­solidated financial statements, as well as the accompanying
management reports, as of and for the year ended Decem­­ber 31, 2023. It furnished all these reports with an unqualified
audit opinion. The audit committee and the supervisoryboard discussed these documents at length and subjected
them to their own examination; all members of both bodies

had access to the auditor’s reports. Moreover, the auditor
met with the audit committee and the supervisory board toreport on the main findings of the audit. The supervisoryboard raised no objections, concurred with the results of theaudit, and approved the Robert Bosch GmbH annual finan­cial statements and the Bosch Group consolidated financial
statements. Following its own review, the supervisory board
endorsed the board of management’s proposal for the appro­
priation of net profit.
Stuttgart, March 2024
For the supervisory board

Prof. Stefan Asenkerschbaumer
Chairman

Annual report 2023

Supervisory board ­report

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Supervisory board
Prof. Stefan Asenkerschbaumer

Christian Brunkhorst UNTIL JUNE 30, 2023

Mario Gutmann

Stuttgart
ChairmanManaging partner of Robert Bosch Industrie­
treuhand KG, formerly deputy chairman of theboard of management of Robert Bosch GmbH

MühltalRepresentative of the chairman of Industrie­
gewerkschaft Metall, Frankfurt am Main

Bamberg
Chairman of the works council of the Bamberg
plant, and member of the central works councilof the Mobility business sector as well as
chairman of the economic committee of the
Mobility business sector

Frank Sell
Gerlingen
Deputy chairman
Deputy chairman of the works council of the
Feuerbach plant, and chairman of the central
works council of the Mobility business sector
as well as deputy chairman of the combined
works council of Robert Bosch GmbH

Nadine Boguslawski
Hattersheim am Main
Chief treasurer of Industriegewerkschaft Metall,Frankfurt am Main

Dr. Christof Bosch
Königsdorf
Spokesperson for the Bosch family

Dr. Arne Fischer
Gemmrigheim
Director of strategic projects, Power Solutions
division, and chairman of the combined executives committee of the Bosch Group in Germany

Prof. Elgar FleischAdrian Hermes SINCE JULY 1, 2023
Hattersheim am Main
Representative of the chairman of Industrie­
gewerkschaft Metall

St. Gallen
Professor of information and technology
management at the University of St. Gallen
and ETH Zürich

Jörg Hofmann UNTIL DECEMBER 31, 2023

Klaus Friedrich

Prof. Michael Kaschke

Würzburg
Chairman of the works council of Bosch Rexroth
AG, Lohr am Main, and chairman of the central
works council of Bosch Rexroth AG and memberof the combined works council of Robert BoschGmbH

Oberkochen
Chairman of the supervisory board of Karlsruhe
Institute of Technology
President of Stifterverband

Frankfurt am Main
President of Industriegewerkschaft Metall

Annual report 2023

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Prof. Renate Köcher

Oliver Simon

HONORARY CHAIRMAN OF THE BOSCH GROUP

Konstanz
Managing director, Allensbach Institutefor ­Public Opinion Research

Dunzweiler
Chairman of the works council of the Homburg
plant, and member of the central works councilof the Mobility business sector

Prof. Hermann Scholl

Martina Koederitz
Stuttgart
Member of the supervisory board

Matthias Georg Madelung
MunichMember of the board of trustees of Robert Bosch
Stiftung GmbH

Kerstin Mai
Hildesheim
Chairwoman of the works council of the Cross-­
Domain Computing Solutions division, Hildes­
heim, and chairwoman of the combined works
council of Robert Bosch GmbH

Dr. Raphael Menez SINCE JANUARY 24, 2024
Stuttgart
Secretary of the regional directorate of theIndustriegewerkschaft Metall trade union,
Baden-Württemberg

Karin Solda
Filderstadt
Chairwoman of the works council at the
Leinfelden-Echterdingen location and of thecentral works council of Robert Bosch Power
Tools GmbHPeter Spuhler
Weiningen
Majority shareholder and president of thesupervisory board of Stadler Rail AG

Dr. Eberhard Veit
Göppingen
Managing partner of Robert Bosch Industrie­
treuhand KG

Prof. Beatrice Weder Di Mauro
BlonayProfessor of international economics at the
Geneva Graduate Institute, president of theCentre for Economic Policy Research (CEPR),
and research professor at INSEAD

Stuttgart

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Industrial Trust and International Advisory Committee
Robert Bosch Industrietreuhand KG

Robert Bosch International
Advisory Committee

GENERAL PARTNERS

LIMITED PARTNERS

Prof. Stefan Asenkerschbaumer

Dr. Christof BoschProf. Stefan Asenkerschbaumer

Stuttgart
Chairman of the shareholders’ meeting

Königsdorf

Stuttgart
Chairman

Dr. Eberhard Veit
Göppingen

Dr. Christian Fischer
Stuttgart

Prof. Elgar FleischSt. Gallen

Prof. Lino Guzzella
Uster

Dr. Stefan Hartung
Ludwigsburg

Prof. Michael Kaschke
Oberkochen

Prof. Renate Köcher
Konstanz

Peter Spuhler
WeiningenSigmar GabrielGoslarDr. Christoph Heusgen
BerlinBaba N. Kalyani
Pune

Pascal Lamy
Paris

Yumiko Murakami
TokyoPaul Ryan
Janesville

Jing Ulrich
Hong Kong

Prof. Igor Yurgens
Moscow

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Business sectors
Industrial Technology

Consumer Goods– Drive and Control Technology 1– Power Tools– BSH Hausgeräte GmbH– Bosch Connected Industry– Robert Bosch Manufacturing­Solutions GmbH

Mobility– Bosch eBike Systems– Cross-Domain Computing Solutions– Electrified Motion– Mobility Aftermarket– Mobility Electronics– Power Solutions– Vehicle Motion– Bosch Engineering GmbH– ETAS GmbH– ITK Engineering GmbH– Mobility Platform and Services– Two-Wheeler and Powersports

Energy and Building
Technology– Building Technologies– Home Comfort– Bosch Global Service Solutions– Robert Bosch Smart Home GmbH

Other activities– Bosch Healthcare Solutions GmbH– grow platform GmbH
– Robert Bosch Venture Capital GmbH

1. Bosch Rexroth AG (100% Bosch-owned).

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Highlights 2023

Highlights 2023

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21

February

Acquisition: Bosch Rexroth
takes over HydraForceWith the acquisition of HydraForce, Bosch
Rexroth is expanding its hydraulics business. With a workforce of 2,100, this U.S.
company develops and manufactures compact hydraulic valves and solutions at six
manufacturing sites in the U.S., Brazil, theU.K., and China. Its activities will be in­tegrated into Bosch Rexroth’s compact­hydraulics business.

January

China: new research
and manufacturing location
Bosch is expanding its global research andmanufacturing network for electrified andautomated driving. In order to better serve
local demand, the company plans to invest
some 950 million euros in a new locationin Suzhou over the next few years.

Stakeholder: Bosch takes stakein garden equipment manufacturer
Bosch agrees to acquire some 12 percentof the share capital of the long-established Swedish company Husqvarna, withthe aim of bolstering the existing battery alliance between the two companies.
Husqvarna includes the Gardena subsidiary and its Flymo brand, both of which arealso partners in the Bosch Power Tools
division’s Power for All Alliance.

March

Egypt: foundation stone
for first BSH factory in Africa
In Cairo, BSH Hausgeräte GmbH lays thefoundation stone for its first factory in­Africa. The company plans to invest some
50 million euros, and to start manufacturing stoves for African and other markets
in the new factory from the end of 2024.
With this factory, BSH plans to create
roughly 1,000 skilled jobs in the region.

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Highlights 2023
June

Semiconductors: Bosch plansto acquire U.S. chipmaker

April

Battery recycling: Europe’s
first fully automated plant
At the Battery Lifecycle Company locationin Magdeburg, Germany, Europe’s first­fully automated plant is being built. Bosch
Rexroth is supplying the necessary technology. In a reliable process, battery modules are chemically deactivated so thatfurther processing can be done without
the risk of electrocution. The residual energy from the modules is used to operate
the recycling plant.

Bosch is expanding its business with silicon carbide chips, and plans to acquireparts of the TSI Semiconductors businessin Roseville, California. With a workforceof 250, the company makes application-­
specific integrated circuits, or ASICs. Overthe next few years, Bosch wants to invest
heavily in the location and to retool its
manufacturing facilities.

New area of business:water-treatment systems

May

Sustainability: basic knowledge
for everyone
To continue the development and manufacture of sustainable products, Bosch has
introduced a worldwide training programfor all associates involved in the productdevelopment process. The focus is on basic knowledge about sustainability along
the value chain, and how associates canplay a part in this. The courses are modular in design, and cover the most impor­tant aspects of Bosch’s sustainability andcircular-economy strategy.

In the future, Bosch will supply water-­treatment technology and offer newly developed systems designed especially forremote areas and offshore locations. With
these special systems, water can be treated anywhere economically and withoutharming the environment, even in the remotest areas. Bosch Manufacturing Solutions has designed these systems to workwithout chemicals. The plan is to bringthese systems to market in 2024.

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AugustPartnership: new wafer fab
TSMC, Bosch, Infineon, and NXP are jointly
investing in the construction of a modern
wafer fab in Dresden, Germany. All told, thejoint venture will invest more than 10 billion euros, and roughly 2,000 jobs are tobe created. Construction work will start in
2024, and 300-millimeter wafers are to be
produced in the wafer fab from the end of
2027. TSMC will hold a 70 percent stake inthe company, with Bosch and the otherpartners holding 10 percent each.

July

Building technology: Boschstrengthens its presence in North
America
The Building Technologies division is growing: the Canadian company Paladin Technologies employs some 1,500 people at
35 locations in Canada and the UnitedStates, and provides security solutions
and services in the integrator business.
With its market presence in Canada andmajor U.S. conurbations, Paladin Technologies is an ideal complement to Bosch’s
integrator business.

Powertrain: green lightfor fuel cell
At its Feuerbach location in Germany,
Bosch has now begun volume productionof its fuel-cell powertrain system. Its pilot
customer is the U.S. company Nikola, with
its fuel cell-electric trucks. Production of
the fuel-cell powertrain system is startingat the same time in Chongqing, China.
Bosch operates along the entire hydrogenvalue chain, developing technology for its
production and application.

Malaysia: new location opened
In southeast Asia as well, Bosch is investing heavily in the semiconductor business.
At its Penang location, the company has
now opened a new testing center for electronic chips. Construction cost roughly
65 million euros. By the middle of the next
decade, Bosch plans to invest a further
285 million euros in the facility, and its
workforce is set to grow to 400.

September

Mobility: Software for video
perception
Video perception of vehicle surroundings
will play an important role in the movefrom assisted to automated driving. In thiscontext, Bosch not only offers a combined
package of hardware and software. Its portfolio now also includes video-perception
software as a standalone product. As a system-on-chip, the Bosch software can also
be used hardware-independently, which
provides more flexibility for automakers.

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Highlights 2023
November

December

Bosch is investing in expanding its development and manufacturing capacity forheat pumps. By 2026, for example, some
100 million euros will be invested in its
Aveiro location. Alongside Eibelshausen inGermany and Tranås in Sweden, Aveiro is amajor location in the company’s European
heat-pump network. By the end of the decade, Bosch will have invested more than
1 billion euros in extending this network.

Bosch is encouraging the use of artificial
intelligence in manufacturing. On this subject, the company is initiating projects inwhich generative AI creates synthetic images. In two pilot plants in Germany, these
artificial images are being used to develop
and optimize solutions for automated optical inspection. Bosch expects that this can
reduce the time between project planningand the ramp-up of AI applications fromthe six to twelve months taken at present
to just a few weeks.

Portugal: Bosch boosts
its heat-pump production

October

Realignment: focus on systems
integration
Bosch is realigning its Building Technologies division: in the future, it is to focus on
its regional integrator business, with solutions and services for building security,
energy efficiency, and building automation.
The company plans to sell most of the
Building Technologies division’s productbusiness. This includes the Video, Accessand Intrusion, and Communication business units, which employ some 4,300 people worldwide.

Manufacturing: Bosch brings
generative AI to the shopfloor

Investment: Bosch wants to workwith AI startup
Robert Bosch Venture Capital GmbH is thelead company in an investment round in
the AI startup Aleph Alpha. All in all, thestartup will receive more than 500 million
dollars from the industrial consortium.
This will make it easier for Aleph Alpha tospeed up the development and commercialization of generative AI for applications
in sectors such as industry, healthcare,­finance, law, government, and security.

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25“Our greatest asset in Roseville is
the workforce, the approximately
250 associates, all of whom are­established semiconductor experts.”
DIRK KRESS
head of global semiconductor operations at Bosch

Raw material for the 21st century
Our modern world would be unthinkable without semiconductors.
They’re already in everything from wearables and smartphones tovehicles, and now the global ramp-up of electromobility is sending
demand skyrocketing. As one of the pioneers of this technology,
Bosch has been producing semiconductors for more than 60 years,
also at its plant in Reutlingen, Germany. Since the end of 2021, thishas also included silicon carbide chips, which enable greater range
and more efficient recharging for electric cars. With the acquisitionof a wafer fab in Roseville, California, Bosch plans to significantly
expand its production of this key technology. There, the first silicon carbide chips are scheduled to roll off the line in 2026 – whichmeans that process engineer Allison Suba has her work cut out forher. To help get her up to speed, she’s partnering with Reutlingen-­based Tobias Huschnitt as part of an innovative, cross-border training scheme. Two associates, one goal: to help power the transformation of mobility.

Read full story

How to make the move to alternative
heating work
Heat pumps are a key technology for achieving the European climate targets in the building sector. This is why Bosch will be investing more than 1 billion euros in its European heat-pump development and manufacturing network by the end of this decade. In
Aveiro, Portugal, new laboratories and production shops are being
built, while in the Netherlands Bosch is bringing new hybrid systems onto the market. In Germany, the company is intensifying its
services business, training heating installers, and working to remedy the lack of professional experts. Step by step, Bosch is expanding its activities in all parts of the heat-pump domain. A journey through Europe shows what is needed for sustainable heating
to become established and for customers to choose heat-pumptechnology that combines ecology with economy.

Read full story“Training not only helps to counterthe shortage of skilled workers,
it also helps us to better meetdemand. With good training, we
increase the quality of our workand are around 20 percent faster
when installing heat pumps.”
ANDREAS HANF
heating engineer

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Hydrogen pioneers united
The mobility of the future is versatile. The key is technologies thatcomplement each other. Bosch is not just pressing ahead withelectromobility, but also wants to establish hydrogen as an important alternative. But as long as there is nowhere to fill up, nobody
will buy a hydrogen vehicle. This is why Bosch Rexroth is helping
companies like Maximator Hydrogen set up a hydrogen infrastructure. The two companies have developed a solution for the compression of hydrogen for filling stations, storage tanks, and pipelines. Bosch Rexroth is focusing on the drive technology for this. In
2024 alone, more than 70 hydrogen filling stations are to be set up,
equipped with Bosch Rexroth and Maximator Hydrogen technology. The retail company Coop is one of their customers, and operates several hydrogen filling stations in Switzerland. In 2016, Coop
opened the first public hydrogen filling station in Switzerland.
What makes these pioneers tick? What hopes do they have in the
new hydrogen-based mobility?

“The special thing about our partnership with Bosch Rexroth is that­everyone here is passionate and hasa pioneering spirit.”
MATHIAS KURRASCEO Maximator Hydrogen

Read full story“For us, Egypt is the gateway to theAfrican markets. With our new plant,
we’re producing to meet tomorrow’s
needs.”
LUIS ALVAREZCEO BSH Egypt

Stoves for Africa
The air smells of cinnamon, mint, and cilantro. Bassent Helmyloves cooking, exploring different international cuisines, andspending time with her family. While Helmy slices vegetables, flips
the meat sizzling in the pan, and checks on the dish in the oven, she
explains the advantages of her new stove: several large cooking
zones, rapid heating, and even distribution of heat to e
­ very cornerof the oven. The Bosch FS90 is designed for preparing many dishes
simultaneously, which makes it the perfect stove for North Africa.
Focus groups from Egypt helped tailor the stove to local requirements. Since market launch in 2020, this use of a 360-­degree UX
approach for product development has proved to be right – morethan 50,000 of these combined ranges have already been sold.
By 2030, BSH Hausgeräte GmbH wants to break the one-­million
barrier. At the end of 2024, the company plans to open a factory in
Egypt – its first in Africa. The aim is stoves from Africa, for Africa.

Read full story

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27“Generative AI is one of the biggest
levers in manufacturing for achieving
more efficiency and higher quality.”
LAURA BEGGEL
data scientist, Bosch Research

Using AI to train AI
Old ways give rise to new departures. Generative artificial intelligence (AI) promises nothing less than that. As a leading company
in the development and application of industrial AI, Bosch is pinning its hopes on this new technology. For example, Bosch has
initiated projects in which synthetic images are created using generative AI to develop solutions for optical inspection or to optimize
existing models. In this way, Bosch aims to fast-forward the process from planning to implementation of AI projects in manufacturing, so that it takes just a few weeks instead of several months. The
software models for generative AI were developed by Bosch researchers, and now the Bosch plants are trialing them. Following a
successful pilot phase, the generative AI approach is to be madeavailable to all Bosch plants. A visit to a Bosch pilot plant in
Hildesheim, Germany.

Read full story

Bosch technology for Westminster
PalaceIt’s one of the world’s most famous buildings, one of England’s
most photographed sights, and is regarded as the seat of British
democracy: the Palace of Westminster. To guarantee the continued
existence, as well as the security, of this more than 900-year-old
complex, it is currently being extensively refurbished and modernized. Bosch technology is giving a helping hand. Over the past six
years, the Bosch subsidiary Protec has put 12,000 fire alarms andan emergency PA system into operation. The project is a sizable
one. The Palace’s main building alone has 1,100 rooms, and a footprint the size of 16 soccer fields. Some 14,000 people work there,
and 7,000 tourists visit each day. A look behind the scenes at the
Palace.

Read full story“It’s a great honor for us to help
­protect and support the Palaceof Westminster with our technology.”
RICHARD HEATON
project manager, Protec

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Since it was established in 1964, Robert Bosch Stiftung GmbH has been
carrying on the company founder’s public welfare endeavors. Throughits ­funding, the foundation works for a fair and sustainable future. It is­not-for-profit, independent, and non-partisan. Its origins go back to the­legacy of ­Robert Bosch. The entrepreneur and philanthropist formulated
a dual ­mission of securing the company’s future and continuing his social
commitment.
The future of medicine –customized treatment
At the Robert Bosch Hospital (RBK), an elderly patient iscomplaining of severe muscular pain. A DNA test showsthat this pain is a side-effect of her cholesterol medication –which goes to show that, when it comes to medication,“one size fits all” doesn’t apply. Depending on genetic
makeup, people react differently to one and the same sub­stance. At the Dr. Margarete Fischer-Bosch Institutefor Clinical Pharmacology (IKP), which celebrated its
50th ­anniversary in 2023 and is part of the Bosch HealthCampus in Stuttgart, scientists are working to improvepharmacotherapy. From DNA analyses, they can tell how
people will react to certain treatments, and quickly­transfer these insights to patient care – a process called“translation” in specialist jargon.
At the RBK , the elderly patient is then treated with adifferent medication, and issued with a digital medication
card. The card contains information about many genetic
variations that alter the way commonly used drugs work.
Up to now, the RBK is the only hospital in Germany where
this medication card is routinely used. Establishing its
use nationwide could improve the healthcare of many

people: an IKP study published in 2023 in collaboration
with international researchers shows that it can reduceside-effects by nearly 30 percent.
The Bosch Health Campus is not just about excellent
research and patient care. It also comprises a training
center and the Robert Bosch Center for Innovative Health(RBIG). The latter aims to develop pioneering concepts
for the German healthcare system. In many places, health­care is deteriorating. Daily routine is marked by longwaiting times, staff shortages, and time pressure. For the
RBIG , the answer is to support and further develop
health centers, which it calls PORT centers. They offer
patients extensive and excellent primary and long-termcare – adapted to local requirements.

Healthcare pioneers
There are 11 such PORT centers in Germany. One of themis in the Neukölln district of Berlin. In a new building in thenorthern part of this district, which has a large migrantcommunity, medical practices, therapists, and counselingoffices have formed a “healthcare collective.” Brochuresprovide information in German, Arabic, and Turkish. A caféand various advice centers make it easier for people to

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reach out to experts. The trained nurse and healthcare
expert Eva Weirich has an important role to play in this col­lective. As its community health nurse, she helps people
find their way around the health system better and to man­age their illnesses. Sometimes she simply builds bridges.
“When advising parents, we often discover that someone
still doesn’t have a pediatrician for their new-born child,or that they haven’t contacted their family doctor for fearof being rejected,” she says. “That’s where we can help.”
Initiatives like this, which give people extensive, high-­
quality neighborhood healthcare, form the building blocks
of a future healthcare system.

The community health nurse Eva Weirich welcomesvisitors to the Berlin-Neukölln Health Collective.

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Tracking down good schools
The German school system also faces structural challenges:
more and more is expected of schools, but teachers arein short supply and job pressure is rising. Nonetheless,many schools manage to provide first-class tuition, and tocreate a stimulating learning environment for their students.
Robert Bosch Stiftung throws a spotlight on these goodschools, makes their teaching concepts known to a wider
audience, and in this way motivates other schools. Together
with Heidehof Stiftung, it has conferred the annual German
School Prize on Germany’s best schools since 2006. A multi­
stage selection process precedes the award. Its coreelement is a visit by educational experts who sit on thejudges panel.
One of them is Hermann Veith, an educational researcher
from Göttingen. In early 2023, together with his fellow
judges, he took a closer look at the Rothenburg elementary
school in Berlin. When their taxi stops at the school ona late afternoon, the principal is already waiting for themat the open door. There are just a few children left wander­
ing along the corridors, packing their belongings together
before heading home. “Before we visit them, many schools
think that strict inspectors are coming to judge their work,”
Veith says. He has been a judge for the award for many
years. It’s important to quickly dispel this suspicion, since
an uninhibited atmosphere is important if the judges areto get an authentic picture of the school. Over the following
two days, Hermann Veith visits lessons, looks at textbooks
and exercises, observes how well the students learn, andtalks with teachers and students. The quality of teachingis central to the judges’ assessment, but the physical sur­roundings and general atmosphere also play a role. The
competition ends with the decision that the school will be
one of the prizewinners. And although the Rothenburg
elementary school doesn’t quite make it to the top in 2023,

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it receives an award worth 30,000 euros and is admitted
to the prizewinner network.

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status as grades in math and German,” Schmitz says,
adding that children have to feel well if they are tolearn well.

Stiftung strengthens its commitment
in Middle East

Passive observer: The panel judge Hermann Veith
takes time to sit in on a class.

The major social challenges and crises of 2023 are also
reflected in the work of the Global Issues funding area.
It was only in 2022 that the Stiftung began supporting
dialogue between the Arab-Palestinian and Jewish­sections of Israeli society. In this context, one of the
projects it supports is the “School of Peace,” situatedhalfway ­between Tel Aviv-Jaffa and Jerusalem. At thisfurther education and community center, people of­Jewish and Muslim faith regularly meet to discuss a vari­
ety of subjects, including the environment and climate
action. The latter is a challenge that affects everyone in
the region. One of them is the 25-year-old Nashwa Alrifahie,
from Lod. She reports that a nearby rubber factory is

Research into school stressTo get a better insight into the situation in schools, Robert
Bosch Stiftung regularly has a representative survey carriedout. Known as the “German school barometer,” its findings
shows that teachers are increasingly observing anxiety,problems with concentration, and restlessness among theirstudents. In 2023, this prompted the Stiftung to start fund­ing a new research project, the “Education and mental
health monitor.” It aims to collect the first-ever data about
the psychosocial care of children and adolescents inGermany. The head of the research project is Professor
Julian Schmitz, a child and youth therapist based in Leipzig.
His hypothesis is that many children and adolescents arestill feeling the psychological after-effects of the Covid-19
pandemic – and that schools are not doing enough about
this. “In schools, well-being has to be given the same

Spring 2023: women of different faiths meet
to exchange views at the “School of Peace”
further education and community center.

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polluting the air, and that the streets are strewn withgarbage. Because she feels that the municipal authorities
are more concerned with the districts in which mainly
Jewish citizens live, Alrifahie has decided to take matters
into her own hands and signed up for an environmental
course. Following the Hamas attack on October 7, 2023,
Robert Bosch Stiftung decided to extend its funding in theregion and to do even more for understanding and peace.
The Russian attack on Ukraine was also on the Stiftung’s
agenda in 2023 – and will remain there for some time. Whileemergency aid was the main focus in 2022, the Stiftungbrought its support more into line with its established fund­ing areas in 2023. At the end of the year, it decided to fundprojects supporting civic society and the recovery of
Ukraine for a further five years. One example is the Vidnova
fellowship program. It supports refugee Ukrainians who arecommitted to helping their native country – also from exile.

A meeting place for refugees
from around the world
Refugees have barely any say in where they can find safety
and what life will be like in their new home. And in interna­
tional refugee policy as well, their standpoint has been given
little attention so far. It is thanks to people like Rez Gardi
that this is slowly changing. A Kurdish New Zealander lawyer,
she has made it her mission to help refugees find a more
powerful political voice – for example, by attending inter­national conferences. At the UN Global Refugee Forum 2023
in Geneva, Gardi spoke out for her demands, and networked
with other refugee leaders in the “R-Space.” Initiated byRobert Bosch Stiftung and other partners, the space wasone of the conference’s official side events. For the first time,
people with first-hand experience of displacement were
offered a place where they could meet refugees from aroundthe world and talk about how to improve their situation.

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Face to face with political representatives
One of the focal points of the Stiftung’s work is democracy
and the question of how people’s enthusiasm for it can be(re)kindled. For many people in Germany, politicians arealien beings. But for roughly 350 people at least, this viewhas changed fundamentally. Selected at random from six
electoral districts as part of the “Hello Bundestag” project,they met their Bundestag representatives and talked withthem for a day about suggestions for improving the relation­
ship between the populace and politicians. One of theparticipants was Martin Lehman from Erfurt. The 32-yearold network engineer was initially skeptical about evenparticipating. But now his interest has been kindled, andhe has joined an electoral district council that emerged
from the project. For him, the difference between thiscouncil and social media is that a constructive exchangeof views is still possible – especially when it comes tocontroversial issues such as climate action, migration, andthe Ukraine war.

Linus Strothmann, the director of the “Hello Bundestag”
project, presents the findings of the first electoral
district meeting.

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Combating populism
Democracies worldwide face the threat of increasingly
polarized societies and populism. This challenge was the
subject of debate for 60 Robert Bosch Academy (RBA)
fellows – internationally acclaimed experts and thought
leaders – at the 2023 Richard von Weizsäcker forum. “Thefuture is one of the biggest resources of democracy andthe idea of a future under threat is one key element inpolitical polarization,” said Ivan Krastev, an RBA fellow
and director of the Bulgarian Center for Liberal Studies.
“The future used to be a project, now it's only a projectionof everything that worries us – with many obstacles andchallenges like the rise of nationalism and climate change.”
The forum included meetings in Berlin and a study trip
to Saxony to acquaint the fellows better with eastern
Germany. Their conclusion: Germany also has to take up
the challenge and strengthen democracy.

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G 01

Total funding 2023
in millions of euros

96.95
35.47
Global Issues

33.25
Health

10.31
Education

17.92
Overall funding

Robert Bosch Academy fellows learn about the historyof German partition on their study trip.

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Group management reportof Robert Bosch GmbHas of December 31, 2023

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39 Fundamental information

about the group

83 Report on economic position84

Key performance indicators

39

The group

85

Macroeconomic and sector-specific environment

40

Organization and competitive ­environment

Business developments

41

Corporate governance

43
44
48
48
49
49

Description of business sectors

Energy and Building Technology business sector

87
87
90
94
97
98
98

Selected companies not allocatedto business sectors

100 Outlook

Mobility business sector
Industrial Technology business sector
Consumer Goods business sector

52 Prospects for the Bosch Group52

Fundamental strategic orientation and objectives

53

Ample opportunities

56
56
61
70
73
77
80

Strategy and innovation
Group-wide topics

Development of sales revenue
Results of operations
Net assets and financial position
Liquidity
Non-financial indicators
Headcount

101 Macroeconomic and sector-specific environment
102 Bosch Group and business sectors
Sales revenue forecast
102
102
Result forecast
103
Expectation for NWC and FCF

Mobility

104 Report on opportunities and risks

Industrial Technology

104 Opportunities

Consumer Goods

104 Risk report
Risk management system
104
105
Overall risk assessment
105
Risk assessment on the basis of the risk management

Energy and Building Technology
Selected companies not allocated to business sectors

system

107
110
110
111

Hedging policy and financial risks
Risks pursuant to the compliance m­ anagement
systemForeign-trade risks
Legal risks

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37

The Bosch Group orients its business areas to the growth opportunities of the future.
This involves the challenge of opening up areas of future importance that require considerable upfront investment, while at the same time adapting the existing business to therequirements of market developments. This has to be done in a global economic environment that is expected to remain weak. Despite these difficult conditions, the BoschGroup is making progress. In nominal terms, Bosch Group sales revenue rose by 3.8 percent in 2023, to 91.6 billion euros. Adjusted for exchange-rate effects, the increase was
8.0 percent, which is within the 6 to 9 percent growth corridor set as a target for 2023.
At 5.3 percent, the EBIT margin from operations shows a significant improvement as forecast and exceeds the previous year’s figure of 4.3 percent. Looked at by business sector,
the picture is mixed. Strong growth in the Mobility, Industrial Technology, and especially
Energy and Building Technology business sectors contrasts with declining sales revenue
in Consumer Goods. As forecast, the main reason for the rise in sales revenue in Industrial
Technology was the impact of the first-time consolidation of newly acquired companies.
All business sectors show a significantly positive result for 2023. Industrial Technology andEnergy and Building Technology performed especially well.
At the same time, many strategic projects continued to be driven forward. Among otherthings, special mention should be made of increasing electrification in many areas inresponse to tougher climate-action requirements, as well as of an even broader inter­national footprint. Acquisitions and partnerships are strengthening both areas of future
importance, such as semiconductors, and established business areas such as mobile
hydraulics and the integrator business in building technology. One major project is thereorganization of the Mobility business sector to even better address future market,­customer, and technology requirements.

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The 2024 fiscal year is also expected to be very challenging: nonetheless, the aim is an­increase in Bosch Group sales revenue in the range of 5 to 7 percent. Moreover, a comprehensive package of measures is intended to lay sound foundations for enduringly greater
profitability. These measures will initially be a burden on result, as some of their effects
will not be felt until after 2025. For this reason, the EBIT margin from operations for2024 is expected to be roughly on the same level as the previous year. At the same time,
we are committed to rigorously pursuing our long-term strategy.

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Fundamental information about the group
The group
The Bosch Group is a global supplier of technology and services. It generates just under half its sales revenue outside
Europe. The group encompasses around 470 fully consolidated subsidiaries and regional companies in more than
60 countries. The parent company is Robert Bosch GmbH,
which is domiciled in Stuttgart, Germany. It started out as“Workshop for Precision Mechanics and Electrical Engineering,” founded in Stuttgart in 1886 by Robert Bosch (1861–1942). Robert Bosch Stiftung GmbH has been the majority
shareholder in Robert Bosch GmbH since 1964.
Despite holding roughly 94 percent of the share capital ofRobert Bosch GmbH, the not-for-profit foundation Robert
Bosch Stiftung GmbH has no influence on the strategic orbusiness orientation of the Bosch Group. A further roughly
5 percent of the share capital is held by the not-for-profit
ERBO II GmbH, established by the founder’s descendants,
and some 1 percent by Robert Bosch GmbH itself. Of the­voting rights, some 93 percent are held by Robert Bosch
Industrie­treuhand KG, which itself holds a capital share of
0.01 percent. The approximately 7 percent of voting rights remaining are held by the founder’s descendants. This ownership structure guarantees the Bosch Group’s entrepreneurial independence.

G 02

Shareholders of Robert Bosch GmbH
Shareholding1%
Robert Bosch GmbH

5%
ERBO II GmbH /Bosch family

94%
Robert Bosch
Stiftung GmbH

G 03

Shareholders of Robert Bosch GmbH
Voting rights
7%
Bosch family

93%
Robert Bosch
Industrietreuhand KG

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Organization and competitive­environment
With a workforce of more than 429,400 associates worldwide at year-end 2023, the Bosch Group is divided into fourbusiness sectors: Mobility, Industrial Technology, Consumer
Goods, and Energy and Building Technology. Reporting issegmented in the same way. The group’s business activities
are shaped by universal trends such as increasing electrifi­
cation, growing automation, digitalization, and connectivity,
the ever greater importance of sustainability (especially climate action), and intense global competition. Nonetheless,the business sectors’ markets and competitive environments
vary, in some cases considerably.
In the case of the Mobility business sector (formerly Mobility
Solutions), the Bosch Group has long competed mainly witha small number of major automotive suppliers. Its chief customers have been globally operating automakers and major
regional producers. However, this market is changing due
to increasing electrification, automation, connectivity, andmulti­modal mobility, as well as to the greater significance ofsoftware in vehicles. The integration of electronics and software into vehicles, as well as growing complexity, are having
an impact on vehicle architectures. Our customers’ purchasing behavior with regard to hardware and software varies­depending on whether they pursue a strategy of in-houseproduction or external procurement. In the software field,
moreover, the combination and integration of functions thatwere previously separate is becoming increasingly important.

In the future, there will be an even stronger focus on extra-­vehicular services that rely on software in the car or in thecloud. This will make it possible to update software throughout the lifecycle of the software-defined vehicle and to scale
applications in other markets. It will also enable shorter time-­
to-market, end-to-end architectures, and hardware-agnostic
software and services. As a result, new business models will
also arise. The complexity involved in operating systems forvehicles means that many automakers are seeking support
from software providers – providers that do not operate
solely in the automotive segment.
These trends make the market attractive for additional providers, also from industries such as consumer electronics,
semiconductors, and the services and internet sector, as
well as for providers of mobility platforms. In addition, automakers are looking to increase the value they generate themselves in the promising areas of electronics, software, andelectromobility. Other important factors influencing ourbusiness are the far-reaching technological changes in theshift from combustion technology to electrification, which
are also changing the market and competitive landscape. As
a result of the trends toward electromobility and the software-defined vehicle, for example, Chinese automakers
have gained a strong market position. At the same time, they
are increasingly making inroads into global markets, which islikely to further intensify competition. Despite the significant
rise in automotive production in 2023, we expect further­developments to be on the subdued side. The significant decline in the proportion of diesel-powered passenger cars in
the key European and Indian markets, as well as the regionally very varied statutory standards for combustion engines,
present further challenges.

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Within Industrial Technology, the Drive and Control Technology division supplies hydraulics and factory automation
components and systems in fairly fragmented markets withmany competitors and customers. The nature of these competitors and customers is changing as a result of trends suchas mobile machinery electrification, of the inroads being
made by digital solutions, of further market consolidation inareas such as hydraulics, and of increased price pressure
due to the growing significance of Asian suppliers.
In the Consumer Goods business sector, Power Tools and
BSH Hausgeräte GmbH are focusing on responding to thechanging needs and wishes of consumers and trading partners in their markets and offering them appropriate products
and solutions. Both divisions compete with global and regional providers. The extraordinary boom in the consumer
goods segment due to the Covid-19 pandemic came to an
end in mid-2022. This boom had also triggered extensive
pull-forward effects. Even before the pandemic, there wasevidence of a global shift from traditional brick-and-mortar
retail to online commerce. This trend was reinforced by the
pandemic, even though traditional retail is currently regaining ground. A fundamental market shift can also be observedin the home appliances sector as a result of market consolidation. The competitive pressure from Asian, in particular
Chinese, suppliers has increased overall, and takeovers
have led to shifts in the competitive environment. In view ofthis, competition is intensifying in the consumer goods segments, and thus also cost pressure.

In Energy and Building Technology, the Building Technologies
and Home Comfort (formerly Thermotechnology) divisions
compete with a small number of international suppliers andmany regional ones. We are currently seeing trends toward
consolidation, especially in the heating and air-conditioning
market. Moreover, the different domains that make up energy
and building technology are converging. One market projected to grow over the long term, especially in Europe, isheat pumps as a replacement for and supplement to the­fossil fuel-based technologies used up to now. And while
Bosch expects the heat-pump market in Europe to stagnatein the years ahead, also due to uncertainties regarding government subsidies, this market trend will be reinforced overthe long term by higher carbon pricing. The Bosch Global
Service Solutions division offers its services in a market featuring both major international rivals and more minor local
providers.

Corporate governance
The members of the board of management of Robert BoschGmbH define the strategy for the entire company and leadthe company as a whole. In the 2023 fiscal year, the board ofmanagement comprised six members. Stefan Grosch took
over from Filiz Albrecht as director of industrial relations andboard of management member on April 1, 2023. Frank Meyer
was appointed as the seventh member of the board of management, effective February 1, 2024. He is mainly assuming
responsibility for Building Technologies and Home Comfort
in the Energy and Building Technology business sector.

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The Robert Bosch GmbH supervisory board appoints, monitors, and advises the board of management. In making appointments to the supervisory board, Robert Bosch GmbHis subject to the German “Mitbestimmungsgesetz” (Codetermination Act). In view of the company’s size, the supervisoryboard has 20 members. Ten members are appointed by theshareholders with voting rights; the other ten members
are elected by the employee representatives. Robert Bosch
Industrie­treuhand KG acts as a shareholder. In line with themission handed down in the will of the company’s founder,
Robert Bosch, it is responsible for safeguarding the company’s long-term existence and in particular its financial in­dependence. The latter is intended to guarantee that thecompany remains entrepreneurially independent and able toact at all times.
Under German law, the supervisory board of a company subject to codetermination must set targets for the proportionof women in management positions. In December 2021, thesupervisory board of Robert Bosch GmbH set such targets
for Robert Bosch GmbH. These targets, which are to be metby the end of 2025, are 30.0 percent on the supervisoryboard and 16.67 percent on the board of management ofRobert Bosch GmbH. As of December 31, 2023, six of the
20 members of the supervisory board of Robert BoschGmbH were women. Women thus account for 30.0 percent.
As of December 31, 2023, there was one woman on the boardof management of Robert Bosch GmbH in the person of
Tanja Rueckert, resulting in a 16.67 percent proportion of
women among the board of management’s six members.
Following the enlargement to seven management board
members effected February 1, 2024, the aim is to reattainthe target for the proportion of women.

In December 2021, the board of management of Robert
Bosch GmbH adopted specific targets for the proportion of
women on the two management levels below the board ofmanagement. These targets apply to Robert Bosch GmbHin Germany. They are 10.0 percent for the proportion of
women on the first management level and 17.0 percent on
the second management level. The deadline for achieving
both targets was set as December 31, 2025. At the end of2023, the proportion had reached 10.4 percent on the firstmanagement level (previous year: 9.7 percent) and 15.4 percent on the second management level (previous year:
14.6 percent).
In addition, subsidiaries in Germany that are subject to statutory codetermination set their own targets for the proportion of women on their respective supervisory boards, management bodies, and first two management levels, as well asa deadline for achieving them. Globally, the share of women
executives across all management levels within the grouprose to 20.0 percent in 2023 (previous year: 19.2 percent). We
intend to continue to increase this percentage. At present,
our aim is 25.0 percent, which we intend to reach by 2030.

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Description of business sectors
G 04

Business sectors and divisions of the Bosch Group
Mobility1

Industrial Technology

Consumer Goods

Energy and Building Technology

Bosch eBike Systems

Drive and Control Technology2

Power Tools

Building Technologies

BSH Hausgeräte GmbH

Home Comfort3

Electrified Motion
Mobility Aftermarket

Bosch Global Service Solutions

Mobility Electronics
Power Solutions
Vehicle Motion
Cross-Domain Computing
Solutions
1. Since Jan. 1, 2024. See graph G05
for structural changes.

2. Bosch Rexroth AG (100% Boschowned).

3. Since Apr. 1, 2023. Formerly Thermotechnology.

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Mobility business sector
G 05

Mobility: realignment
Structure up to Dec. 31, 2023
Powertrain Solutions
Electrical Drives
Automotive Aftermarket
Electrical Drives

Automotive Electronics

Powertrain Solutions
Electrical Drives
Automotive Steering
Chassis Systems Control
Cross-Domain Computing Solutions
Powertrain Solutions
ETAS GmbH
Automotive Aftermarket

Structure after Jan. 1, 2024

Unchanged

Electrified Motion

Bosch eBike Systems

Mobility Aftermarket

Bosch Engineering Group1

Mobility Electronics

Two-Wheeler & P owersports

Power Solutions
Other units
Vehicle Motion

Cross-Domain Computing Solutions

ETAS GmbH

1. Including Bosch Engineering GmbH, Commercial Vehicles and Off-Road, and ITK Engineering GmbH.

Mobility Engineering Solutions

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As a supplier of original automotive equipment, Bosch is engaged in a wide range of activities. To adapt to the changed
market and customer environment, an organizational realignment took effect at the beginning of 2024. Given the­significance of this realignment, we are already presenting
the divisions as defined in the new structure, and will consistently use the name Mobility, and not Mobility Solutions, as
the name of this business sector, even if our statements­relate to 2023. For electromobility, a new Electrified Motion
division has been established. The Electrical Drives division
was dissolved at the beginning of 2024, and its activities reallocated to several divisions. Going forward, Power Solutions
will focus on combustion technology, the hydrogen economy(fuel cells, electrolysis), and thermal systems. The braking
control systems and steering systems units have been combined in the Vehicle Motion division. The spare parts business has been renamed from Automotive Aftermarket to­Mobility Aftermarket and the business with semiconductors
and sensors from Automotive Electronics to Mobility Electronics. The Cross-Domain Computing Solutions division remains responsible for driver assistance systems and automated driving, and has taken over the vehicle control unit
business from Powertrain Solutions. Our subsidiary ETAS
has assumed certain areas of responsibility from Automotive
Aftermarket. The Bosch eBike Systems division and the
Bosch Engineering Group remain unchanged. The other units
are Two-Wheeler and Powersports as well as the Mobility
Engineering Solutions service area, which is globally responsible for process, method, and tool development.
Bosch eBike Systems
Bosch eBike Systems offers a comprehensive portfolio forpedelec manufacturers. This includes a modular system
portfolio featuring various products such as drive units, bat-teries, and displays, as well as connected solutions featuring apps and cloud services. The various e-bike ABS appli­
cations can be integrated into the modular system. For
manufacturers, specialist dealers, and consumers, the division also offers special services such as a hotline, diagnostics, and spare parts.
Electrified Motion
In the shape of Electrified Motion, a division has been created specifically for electromobility. To achieve this, theelectrification activities belonging to the former Powertrain
Solutions division and the comfort actuators and electrical
power drive business from the former Electrical Drives division were combined. Electrified Motion offers solutions forbattery-electric powertrains for passenger cars and commercial vehicles, including off-highway vehicles. Its products
range from electric motors, power electronics, and transmission technology to complete e-axles in which an electricmotor, power electronics, and transmission are combinedin a compact unit. In addition, the division offers electro­
mechanical components and systems such as drives fore-bikes and e-scooters and for vehicle stabilization applications such as steering and brakes. The product portfolio also
covers a wide range of motors and drive systems for con­venience features such as window lifters, seat adjustment
mechanisms, and sunroofs.
Mobility Aftermarket
The sale of spare parts, either made in-house at Bosch orsourced externally, forms the basis of the business of Mobility Aftermarket, formerly known as Automotive Aftermarket.
Besides its solutions for vehicles with combustion engines,
Mobility Aftermarket develops portfolios and business models for electrification and automated driving. In the course of

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the reorganization, Mobility Aftermarket has taken over theoriginal equipment business for wiper systems, including
wiper blades, from the former Electrical Drives division andhas combined these activities with its existing aftermarket
business. Mobility Aftermarket provides testing and workshop technology as well as a range of spare parts for vehicles – from new and remanufactured exchange parts to repair solutions. Its portfolio also includes vehicle-servicing
training, technical updates, and services such as workshop
management systems, in combination with regional marketplaces and digital catalogues. In addition, Mobility Aftermarket is responsible for the concept behind the independent
Bosch Car Service and AutoCrew workshop franchises.
Mobility Electronics
In its role as an internal supplier, Mobility Electronics (formerly Automotive Electronics) continues to encompass thedevelopment, commercialization, and manufacture of ECUs
(electronic control units). It also develops and manufactures
semiconductor components for internal and external customers. The semiconductors are developed and marketed
for automotive applications and for specific requirementsof the consumer goods industry. Its semiconductors for
auto­
motive applications range from application-specificintegrated circuits to power semiconductors and MEMS­
(micro­electromechanical systems) sensors. In consumer
electronics, Bosch Sensortec GmbH, based in Kusterdingen,Germany, supplies MEMS sensors for a diverse range of­applications.
Power Solutions
The Power Solutions division (formerly Powertrain Solutions) brings together combustion technology, the thermal
systems business from the former Electrical Drives division,and components and systems for the hydrogen economy –fuel-cell technologies both for electric powertrains and forstationary applications in the field of electrolysis, plus othertechnologies for a decentralized power supply (solid-oxide
fuel cells or SOFC). The portfolio also includes software andservices.
Power Solutions operates in the markets for passenger cars,
light and heavy commercial vehicles, off-highway vehicles,
and stationary applications. The division’s combustion-­engine business comprises combustion components withsolutions and systems based on diesel, gasoline, naturalgas, ethanol, hydrogen, and synthetic fuels, as well as the48-volt battery. It also comprises engine management systems and all software and services related to the com­bustion
engine, fuel-supply modules, fuel injectors and pumps, ignition systems, exhaust-gas treatment systems, and sensors.
In its hydrogen activities, Bosch offers fuel-cell systems formobility (polymer electrolyte membranes, or PEM) in thecommercial-vehicle sector. These systems include both in­dividual components – such as electric air compressors, hydrogen injectors, tank valves, control units, and sensors –and stacks, all the way up to complete power modules. For
hydrogen engines and tank systems, components such ashydrogen injectors and tank valves are available. The product portfolio also includes electrolysis based on PEM technology.
In thermal systems, the core business is an extensive port­
folio of components and systems for thermal management –such as pumps, electric blowers, and refrigerant compressors for cooling and refrigerant circuits – in vehicles featuring
powertrains of all kinds.

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Vehicle Motion
The new Vehicle Motion division merges the previous Automotive Steering and Chassis Systems Control divisions andoffers customers a combination of steering, braking, and­occupant safety systems, as well as the respective sensors.
The future aim is for integrated solutions to interact with therelevant actuators in the vehicle (steering, brakes, powertrain, and chassis) and in this way increase safety, agility,
convenience and driving enjoyment, and energy efficiency.
For example, the division offers vacuum-based and vacuum-­
independent electromechanical brake boosters that can be
combined with braking control systems (ABS, ESP ®). Combined systems (integrated power brakes) bring together
brake boosters and braking control systems. Integrated
power brakes and by-wire actuators also come under theheading of new braking systems. Among other things, thesesystems are intended to support the major mobility trends ofelectrified and automated driving and new by-wire architectures. The portfolio also includes electric power steeringsystems for passenger cars as well as electro-hydraulic andhydraulic steering systems for heavy commercial vehicles.
The occupant protection systems encompass airbag control
units and the associated crash sensor technology. Vehicle
dynamics sensors include the sensors that provide vehicle-­
related signals as input to active safety systems.
Cross-Domain Computing Solutions
Cross-Domain Computing Solutions is responsible for thebusiness areas of driver assistance systems and automateddriving, including parking systems and related services (advanced driver assistance systems, or ADAS). Its core task is
to develop application-specific vehicle software as well as
vehicle computers, control units, and sensors. As part of thiswork, the division develops and implements solutions forelectric/electronic (E/E) vehicle architectures, driver assistance systems, and automated driving, as well as cockpit
solutions, software, and services. Furthermore, the business of cross-domain vehicle control units (but not engine
control units) has been transferred from Powertrain Solutions to Cross-Domain Computing Solutions.
Other businesses
The subsidiary Bosch Engineering GmbH, based in Abstatt,
Germany, develops a wide range of customized solutions
based on tried and tested technology used in volume production – not only for sports cars, but also for railcars andother non-automotive mobile applications. Bosch’s motor
racing activities are also based at Bosch Engineering. Bosch
Engineering manages the Commercial Vehicles and OffRoad unit, which is responsible for systems development,
product management, and sales for the commercial andoff-highway vehicle segments. ITK Engineering GmbH,
based in Rülzheim, Germany, complements Bosch Engineering’s services. It offers customized and bespoke systemsand software-development services under its own brand,with engineering operations separate from Bosch.
The ETAS portfolio includes basic vehicle software, middleware, development tools, cybersecurity solutions, and endto-end engineering and consulting services for bringing thesoftware-defined vehicle to fruition. With its product solutions and services, ETAS enables automakers and suppliers
to develop, operate, and secure one-of-a-kind vehicle software. In addition, parts of the former Automotive Aftermarket division’s diagnostics business for automakers have been
integrated into ETAS.

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For two-wheelers, three-wheelers, and powersports vehicles, the Two-Wheeler and Powersports business unit offers assistance systems such as ABS (antilock braking system) and MSC (motorcycle stability control), radar-based
assistance systems such as adaptive cruise control, powertrain technology, display instruments, and connectivity solutions. The unit can draw on the products and resources ofthe Mobility business sector.

the necessary environment for applications with full con­nectivity. The division combines hydraulic, mechanical, andelectrical solutions for mobile and industrial applications,electrical drive and control technology, and linear motion
and assembly technology, including software solutions.
Other businesses
Bosch Manufacturing Solutions, a provider of manufacturing equipment and automation solutions, develops models
for customized and intelligent assembly and testing. These
include the related manufacturing processes and technologies as well as digital and intelligent solutions and services
along the entire product lifecycle. The Bosch Connected
Industry business unit develops software solutions for internal and external customers with a focus on Industry 4.0.

With the establishment of Bosch Mobility, the Mobility­Engineering Solutions service area, headquartered in Bengaluru, India, has been made an integral part of the businesssector. It will assume responsibility for process, method,
and tool development in software engineering. Its range oftasks is divided between work as an internal service providerof software engineering for Mobility’s divisions and as an­external provider of software and service products.

Consumer Goods business sector

Industrial Technology business sector

The Consumer Goods business sector comprises the Power
Tools and BSH Hausgeräte divisions.

The Industrial Technology business sector comprises the
Drive and Control Technology division, with its other activities including the Bosch Manufacturing Solutions unit, which
focuses on manufacturing equipment and automation solutions, and the Bosch Connected Industry business unit.
Drive and Control Technology
Our subsidiary Bosch Rexroth AG , based in Lohr am Main,
Germany, specializes in drive and control technologies for
movement in machines and systems of any type and size. It
has global application expertise in the market segments ofmobile machinery, plant construction and engineering, andfactory automation. With intelligent components, customized systems solutions, and services, Bosch Rexroth creates

Power Tools
Robert Bosch Power Tools GmbH, based in Leinfelden-­Echterdingen, Germany, is a supplier of power tools, garden
tools, power-tool accessories, and measuring technology.
The division’s extensive product range is aimed at both professional use in trade and industry and the DIY market. Its
range of accessories above all includes abrasive systems,
drill bits, and saw blades, which are sold globally under the
Bosch brand and regionally and segment-specifically underbrands such as Diablo, sia abrasives, and Freud. Precisionrotary tools for DIY applications are also sold under the
Dremel brand.

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BSH Hausgeräte GmbHThe home-appliance manufacturer BSH Hausgeräte GmbH,
based in Munich, Germany, has a product portfolio that
ranges from washing machines and tumble dryers, throughrefrigerators and freezers, ovens, cooktops, extractor hoods,
and dishwashers, to small appliances such as vacuum­cleaners, automatic coffee makers, and food processors.
The home-appliance specialist sells its products under the
global Bosch, Siemens (under license), Gaggenau, and Neffbrands. In addition, brands such as Balay in Spain, Profilo in
Turkey, and Thermador in the U.S. serve their local markets.
In addition, there are the Home Connect brand for the BSH
ecosystem in the connected kitchen and various service
brands, including BlueMovement.

Home Comfort
The Home Comfort division offers its customers a wide rangeof solutions for heating, cooling, well-being, and process
heat. Its portfolio includes electric heat pumps and hybrid
heat-pump solutions, condensing boilers, air-conditioning
systems, ventilation equipment, air purifiers, solar thermal
systems, and combined heat and power generation. In addition, the division is active in the business of constructing
plant for commercial and industrial steam and hot-water
generation, heating, and air conditioning. Home Comfort
markets its solutions under international and regional brands
such as Bosch, Buderus, IVT, Vulcano, and Worcester. It operates within a partner network of installers, architects,
planners, and wholesalers.

Energy and Building Technology businesssectorBosch Global Service Solutions
The Bosch Global Service Solutions division provides technology-based services primarily for customers in the automotive, building, logistics, and pharmaceuticals industries,
as well as communications technology. For example, it o
­ ffers
services such as emergency-call and monitoring services.

The Energy and Building Technology business sector comprises the Building Technologies, Home Comfort (formerly
Thermotechnology), and Bosch Global Service Solutions­divisions.
Building Technologies
The Building Technologies division has two areas of business: its global product business for security and communications solutions, and its regional systems integration business. The latter offers solutions and customized services forbuilding security, energy efficiency, and building automationin selected countries. Both units focus on commercial buildings and infrastructure projects. The product portfolio­encompasses video-surveillance, intrusion-detection, fire-­
detection, and voice-alarm systems, as well as access-­
control and professional audio and conference systems.

Selected companies not allocatedto business sectors
The subsidiary Bosch Healthcare Solutions GmbH, basedin Waiblingen, Germany, operates in the medical technology
sector, supplying sensors, software, and services. Its product range includes equipment and software solutions for­decentralized laboratory diagnostics and the diagnosis ofrespiratory conditions.
The subsidiary grow platform GmbH, located in Ludwigsburg, Germany, offers a platform within the Bosch Group for

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developing and implementing new business models and incubating in-house startups, supporting them with businessknow-how in areas such as strategy, organization, controlling,
human resources, infrastructure, marketing, and methods.
Through Robert Bosch Venture Capital GmbH, based in
Gerlingen, Germany, we invest worldwide in technologies
with future potential, such as the internet of things, artificial
intelligence, and advanced computer architectures. The com­pany provides capital for startups and industry-specific venture capital funds in Europe, the U.S., Israel, and China. Its“Open Bosch” program also fosters Bosch’s collaboration
with third-party startups.

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Prospects for the Bosch Group
Fundamental strategic orientationand objectives
For a broadly diversified technology company like the BoschGroup, considerable opportunities are emerging from universal trends such as electrification, electronification, automation, digitalization, and sustainability, as well as from thefurther expansion of its international footprint. We havetherefore aligned our overall strategy with these circumstances. The starting point for our goals and strategies is theobjective of securing the company’s future as enshrined in
the will of the company’s founder Robert Bosch – in otherwords, ensuring the company’s strong development and­securing its financial independence. Our long-term ambition
is to continue offering products that are “Invented for life” –products that fascinate, that improve quality of life, and that
help conserve natural resources. In this respect, “products”
are not only physical products and services, but also thesoftware-based solutions and services that go with them.
Against this backdrop, we aim to position the Bosch Group
as a leading technology company. We want this aspiration
to be reflected in our financial targets as well. With regard
to sales revenue, our aim is average annual growth of 6 to
8 ­percent b­ etween now and 2030, given normal inflation
rates of 2 to 3 percent. In this context, we take our lead fromthe ­European Central Bank’s medium-term inflation target of
2 percent. A further strategic goal is to achieve stronger

growth in emerging markets outside China, such as India,
ASEAN, and Africa, but also in North America, where – interms of the market available to us – we have not yet exhausted our ­market potential. In Europe, we want to develop
our markets further. We intend to grow by innovating and by
opening up new markets, but also by acquiring companies
and entering into partnerships. In our existing businesses,
we aim to achieve an overall EBIT margin from operations ofat least 7 to 7.5 percent; the expansion of high-margin areasof business, both adjacent and new, is intended to further
increase this margin, and thus also the free cash flow-tosales revenue ratio, in the future.
As a rule, we stand by our broad diversification. However, wewant to step up our efforts to improve our EBIT margin andour company’s competitiveness overall. Focal points here,
apart from portfolio management, cost efficiency, and restructuring, are increasing the productivity of research anddevelopment, strengthening our regional business, and promoting conditions that promote strong performance in allunits and on every level of the hierarchy. The Lead, Work,Win #LikeABosch initiative aims to encourage the entrepreneurial attitude that this requires. Among other things, thisinvolves a stronger focus on earnings and free cash flow andthe measures relating to them, as well as the question of
how executives can be better empowered and talent moredeliberately cultivated.

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Ample opportunities
For the Bosch Group, there are considerable growth opportunities in both existing and adjacent and new areas of business. Our strategy is oriented to this. The fundamental condition for entering new fields of business is that the activities
be compatible with our skills and expertise. Specifically,
these are preparing for and implementing high-quality volume production, broad domain and industry knowledge, as
well as technological expertise, also in complex and intelligent systems such as electronic and electromechanical systems with embedded software. Future developments willcontinue to be driven by the trends of digitalization, con­nectivity, electrification and electronification, sustainability,­automation, and emerging markets, which we associate with
our “Invented for life” ethos.
Electrification is of particular importance for Mobility, ourbiggest business sector. Emissions standards aimed at complying with climate targets and improving urban air quality
are reinforcing the trend toward electromobility, along withcustomers’ desire for driving enjoyment. In our Industrial
Technology business sector, the new solutions arising fromthe increasing convergence of electrical and hydraulic systems are presenting us with opportunities. In building technology, especially in heating and air-conditioning, the use ofheat pumps and renewables is growing strongly in importance, and this is leading to market opportunities.

In addition to its significance for the Industrial Technology
and Energy and Building Technology business sectors, automation especially affects the Mobility business sector withrespect to partially and highly automated driving. Here, we
expect strong market growth, mainly in partially automateddriving. Where industrial technology is concerned, ample
opportunities are arising from the increasing flexibility andconnectivity of manufacturing operations. This offers new
ways of enhancing product quality and productivity, adding
functionality, and saving energy. It also opens up potential
for services such as remote predictive maintenance. In theConsumer Goods and Energy and Building Technology business sectors as well, connectivity and increasingly smart
products are creating additional potential for growth as a­result of new services for areas such as maintenance.
In view of our expertise in many product segments and our
know-how in software and sensor technology, we see huge
potential for the development of Bosch’s business operations over the long term, also attuned to differing customer
needs in different regions. We are also relying on our proficiency in the areas of connectivity and artificial intelligence,
which we view as fundamental for the design of intelligent
and user-friendly products, services, and processes. In general, we believe that sustainably manufactured products­offer prospects for future market success. We want to further expand our presence in sales and manufacturing operations in the emerging markets of Asia, South America, central and eastern Europe, and Africa, which are home to muchof the world’s population. In these regions, there is frequently a demand for affordable products – ones that meetthe requirements of the local market with regard to people’s
lifestyles, robustness, and repairability.

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Current examples of opportunities in existing areas of business include the expansion of our position in the North
American market through the integration of the North American hydraulics manufacturer HydraForce Inc. in Lincolnshire,
Illinois, USA (HydraForce), acquired in 2023, and the expansion of the integrator business in Building Technologies
through the acquisition of Paladin Technologies Inc. in Vancouver, British Columbia, Canada, and of PalAmerican Technologies Inc. in Tumwater, Washington, USA . The opening ofa new test center for chips and sensors in Penang, Malaysia,
is an example of our activities in emerging markets. Growthareas in the Mobility business sector include components
and systems for electromobility and the driver assistancesystems on offer. Further growth areas include semiconductors and the hydrogen economy, whether in fuel cells or electrolysis. Partnerships play a critical role in many areas, suchas the partnership that has been announced in the field of
medical technology.
When putting our strategy into practice, we continue to build
on our high level of innovativeness – also in relation to our
research and development expenditure – on quality, on
our broad diversification and global presence, and on the
Bosch culture. Our actions are based on the Bosch values:(1) ­Future and result focus, (2) Responsibility and sus­
tainability, (3) Initiative and determination, (4) Openness
and trust, (5) Fairness, (6) Reliability, credibility, legality,(7) D­ iversity, equity, inclusion.

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Strategy and innovation
Group-wide topics
Digitalization strategy
By digitalizing our products, we are adding to their qualities
in order to enhance customer benefit in the “Invented for life”
spirit. Through connectivity, we also want to generate additional software and service sales revenue and increase theefficiency of our processes. By “connected solutions,” wemean various combinations of hardware and software, as
well as services. The discrete board of management responsibility accorded to digitalization underscores the importance we attach to this subject. We have developed an overarching digitalization strategy for the Bosch Group as awhole. It is intended to provide a common framework for thewide range of existing activities and a guiding principle for
future ones. For this purpose, we have defined basic metrics
such as recurring sales revenue and sales revenue from software and services as a basis for greater transparency andclear objectives in the future. These metrics are being gradually expanded at the division level in order to reflect the divisions’ diversity and thus their digitalization strategies.
Essentially, the overarching digitalization strategy for the entire Bosch Group focuses on five key areas: fascinating withcustomer-centric solutions, unlocking business potential
through software and services, creating additional value by
setting up digital ecosystems with partners, making Boschfaster and more efficient, and developing our associates andempowering digital talent. One key element for implement-

ing our strategy is harnessing the power of artificial intelligence with respect to connected, internal processes such as
development, production, logistics, and administration, as
well as for the expansion of third-party business with digitalsolutions. For this purpose, we have formed strategic partnerships and launched a comprehensive program to support
and coordinate the divisions’ ongoing initiatives for the use ofgenerative AI (a form of artificial intelligence that generates
its own content). We have also set up training programs
to broaden in-house knowledge about the opportunities
and requirements of digital business. Extensive training­programs, especially in the form of in-house online training
courses, serve to expand managers’ and specialists’ skills.
In a diversified company like the Bosch Group, it is the divisions that are responsible for adapting and implementing
the fundamental strategic orientation in digitalization. In
2023, the focus was on developing the appropriate divisional
strategies. Among other things, the divisions developed theirown targets and defined the metrics that apply to them. A
large number of programs are currently underway to flesh
out and integrate the overall strategy into the business areas’
activities. Areas of interest include strengthening software
platforms for software-defined vehicles in the Mobility business sector and, in Industrial Technology, building an ecosystem centered on ctrlX control software. For the divisions,digitalization is also a means of improving efficiency andprofitability – whether through high-margin sales revenue
from digital solutions or through the cost savings that result
from the digitalization of business processes.

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One example is the use of artificial intelligence in the shapeof chatbots for call center services. Another example is in
the field of quality assurance in manufacturing, where synthetic images are created using generative AI to develop
solutions for optical inspection or to optimize existing models. To be able to offer best-in-class technologies, we also
enter into partnerships with technology providers, such as
the startup Aleph Alpha in the field of generative AI. We also
invested in the startup via our subsidiary Robert Bosch­Venture Capital.
With respect to artificial intelligence, AskBosch, our inhouse language system based on generative AI, has been
available to our associates in many countries since 2023. The
underlying technology is also used by the Cross-Domain
Computing Solutions division to analyze large data sets forimage recognition even more accurately and efficiently, andto enrich them with contextual knowledge based on the situation. This in turn is a basic prerequisite for developing highly
automated driving and many ADAS technologies. Further
digital initiatives at Bosch include the wide-scale introduction of S/4HANA to consolidate and modernize the systemlandscape of the business management software.
Sustainability
For Bosch, sustainability is the balance between the economic, ecological, and social elements of our business activities as part of responsible corporate governance. The highest specialist body for sustainability at Bosch is the corporate
sustainability board, which is headed up by the chairman of
the board of management of Robert Bosch GmbH and the
management board member responsible for sustainability.

The board’s main task is to define the Bosch Group’s sustainability goals and strategy.
Bosch’s overall objective for sustainability covers six strategic themes: climate action, water, circular economy, diversity, human rights, and health. In the programs based onthem, we are increasingly going beyond our direct sphere of
influence to include supply chains and use of products sold.
We want to become a leading player in climate action. With
its more than 400 locations worldwide, the Bosch Group has
been carbon neutral overall since 2020 – both in scope 1(­direct emissions) and scope 2 (indirect emissions from­procured power). We achieve carbon neutrality by applying
four levers: increasing energy efficiency, generating our own
energy from renewable sources (new clean power), purchasing electricity from renewable sources (green electricity),and – as a last resort – offsetting the remaining CO₂ emissions. In 2023, residual emissions of roughly 581,000 tons of
CO₂ were offset through carbon credits. The terms “Scope 1,
2, 3” (scope 3: upstream and downstream emissions in thevalue chain) are used in accordance with the Greenhouse
Gas Protocol Corporate Accounting and Reporting Standard.
Our goal is to continuously improve the above-mentioned
mix of measures so as to further reduce our impact on the
climate. In the 2023 fiscal year, one of the ways we improved
the mix of measures was by further expanding renewable
power generation at our locations. In addition, we are sourcing green electricity for our locations in more and more countries. Since 2023, these countries have included Japan,­Malaysia, Singapore, and South Korea.

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We want to shape climate action beyond our immediate
sphere of influence (scopes 1 and 2) and systematically­reduce upstream and downstream emissions (scope 3) as
well. By 2030, we want to decrease these emissions by
15 percent in absolute terms compared to 2018, the baseline
year. This target was set independently of 2030 sales revenue. In other words, the quantity to be reduced will increasein line with the company’s future growth. Upstream emissions in the Bosch value chain relate mainly to purchased
goods and services as well as logistics, while downstream
emissions arise mostly from the use of our products. Bosch’s
climate targets were reviewed and endorsed by the Science
Based Targets initiative (SBTi) for the 1.5-degree pathway.
When it comes to the circular economy, we also want tomake our products more sustainable across their entire lifecycle – from procurement and manufacturing, through use,
return, and remanufacturing, to recycling and reuse. We
therefore strive to either create loops within Bosch or toclose them outside the company using established recycling
processes. By doing so, we aim to reduce the amount of material used in our products, as well as their carbon footprint,
and in this way help achieve our scope 3 target. One exampleof this is the use of recycled plastics in power tools andhome appliances.
Bosch takes its lead from the United Nations Guiding Principles on Business and Human Rights. It also implements therequirements of the Act on Corporate Due Diligence Obligations in Supply Chains (“Lieferkettensorgfaltspflichtengesetz”), which came into effect in 2023. For example, we have
set up a risk management system to ensure that our human-­rights and environmental due diligence obligations are upheld. This applies both to our own actions and those of our
suppliers.

Bosch also places great importance on occupational safety.
We see preventing accidents and ensuring workplace safetyas part of our responsibility. By 2025, we want to reduce thenumber of workplace accidents to 1.45 per 1 million hours
worked.
Robustness
The Covid-19 pandemic, chip shortages, and the war in
Ukraine with its concomitant energy shortages have demonstrated the effectiveness of our crisis organization, but havealso underscored the importance of robustness. China wasstill feeling the impact of the Covid-19 pandemic at the startof 2023, as the government lockdowns there lasted almost
until the end of 2022. The chip shortages were largely overcome in the course of 2023. The Coordination Team Ukraine
project was dissolved at the end of May 2023 and its taskstransferred back to the line organization. This team had beenfounded at the start of July 2022 as a successor to the
Ukraine crisis team. Bosch’s activities in Russia have essentially come to a standstill; the process for divesting the­Russian plants, which served various business areas, waslargely completed in the course of 2023.
Despite the generally tense energy situation in Germany andother European countries in the winter of 2022–2023, there
were no restrictions on the supply of natural gas at Bosch.
This was partly because we significantly exceeded our self-­
imposed target of using 15 percent less natural gas at our
European locations, saving a total of some 20 percent during
the heating period. The mild weather played a role here as
well. As a precautionary measure, we have also increased
our crude oil stocks to safeguard our delivery capability.

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On a general level, we are working to increase our robustness by broadening our international footprint. Our strategy
is to achieve an even better regional balance, also by improving our market penetration in countries where we have further growth potential. In particular, this means strengthening our activities in the Americas, especially the U.S., butalso in countries such as India or regions such as ASEAN and
Africa. We also analyze the structure of our supply sources
with regard to the growing number of trade barriers and review the extent to which these sources are exposed to protectionist conditions and risks.

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Mobility
New organizational structure takes effectOur vision is to shape a new era of mobility – mobility that issustainable, safe, and exciting. We aim to maintain our roleas the go-to partner for automotive systems and the associated hardware and software, and to become a leading provider of technology for the mobility lifecycle business. Until
now, Bosch has primarily been a supplier of systems andcomponents. However, customers are increasingly demanding a separation of hardware and software, with many hardware components likely to have less potential to offer a USP
in the future. We expect that the driving experience and customer benefits will be increasingly defined by software; atthe same time, the proportion of electronics will rise. In thiscontext, it can be assumed that different customer requirements and regulations in the regions will lead to different
demands on Bosch as a supplier. Our strategy is based on
our expertise relating to the interaction between softwareand hardware, as well as to vehicle-specific subjects suchas powertrain technology, vehicle dynamics, and safety. It isalso based on our generally high level of electronics expertise. We also want to ramp up our activities in software andservices, even if our focus will continue to be on hardware.
It is important to have an organization that provides the best
possible responses to market and technological developments. Customer needs are changing ever more quickly, andwe want to serve those needs even faster, with customized
technologies and solutions from a single source. This is why
one of our strategic focal points is the realignment of the­Mobility (formerly Mobility Solutions) business sector as anintegrated business sector with its own management teamand P&L responsibility across the Mobility business areas.
The new structure took effect at the start of 2024. Many of its

divisions were assigned to horizontal and vertical domains inorder to strengthen collaboration in areas such as electrification, vehicle dynamics, driver assistance systems, vehicle
computers, and software. The new structure is described indetail in the section headed “Fundamental information
about the group.”
The strategy should also be viewed in the context of market
developments. Global vehicle production is still well off its
2017 peak of some 98 million units, although in 2023 it returned to its 2019 level (i.e., before the Covid-19 pandemic)of around 93 million units. The chip shortages have now
largely been overcome. In the years ahead, however, we­expect only slow growth in global vehicle production. We
continue to base our planning on the assumption that production will not return to its 2017 level before the final yearsof this decade. Nonetheless, we believe that factors such as
the rising share of connected software and electronics components in vehicle systems offer our company considerable
growth opportunities.
At the same time, we need to provide fundamental answers
to geopolitical developments, changes in the competitive
landscape, growing regionalization, digitalization, and stricter
sustainability requirements, also in the area of mobility.
Other important trends are battery-electric powertrains, inwhich Chinese manufacturers and suppliers are alreadyplaying a major and growing role, and fuel cells. Hydrogenengines also offer new possibilities, and the significanceof software and data will continue to grow as well. For future
vehicle software architectures, we must adapt to the dif­ferent approaches taken by manufacturers and position­ourselves flexibly. In several domains, we expect to see atrend toward vehicle platforms with centralized electrical/

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electronic architectures. This will likely mean that the number of electronic components and semiconductors in vehicles will continue to rise. Assisted driving will move evenmore toward partially and then fully autonomous driving. In
addition, competition will change due to new market players
in industries such as semiconductors and the internet andservice sector, including mobile platform providers. We also
aim to become a provider of solutions for software components and software platforms that are then used to enable
functions in the vehicle. For this purpose, we are significantly
expanding the activities of our subsidiary ETAS.

with strengthening productivity and efficiency in research,development, and product management. There are alsoplans to make greater use of generative AI in software development, such as by generating synthetic training data for­automated driving. We expect generative AI to become increasingly important throughout the entire value creation
process. Mobility’s strategy also includes an overarching,long-term investment strategy for the business sector that is
linked to financial targets. Mobility aims to significantly increase its competitiveness in order to achieve enduringly
profitable growth.

Our goals are to achieve over 6 percent average annual sales
revenue growth in the Mobility business sector from 2023 to2030 and to continue to gradually improve EBIT margin fromoperations despite continuing high levels of upfront investment. Our growth target assumes inflation rates of between
2 and 3 percent. In this context, we take our lead from theEuropean Central Bank’s medium-term inflation target of
2 percent. We expect growth opportunities particularly inbattery-­electric vehicles and fuel cells, vehicle dynamics,
driver assistance systems, vehicle computers, software andservices, semiconductors, and sensors. But our activities in
eBike Systems, Two-Wheeler and Powersports, Commercial
Vehicles and Off-Road, Mobility Aftermarket, and Bosch­Engineering also offer considerable prospects for growth.

Regarding the future viability of the Mobility locations in Germany, we have concluded a far-reaching agreement with therelevant employee representatives. One of its key components is a collective agreement for almost 80,000 associatesin Germany. This agreement also sets out a process for thedevelopment of long-term objectives for the German Mobility locations that are bound by collective agreements. The
agreement also relates to the reorganization of the Mobility
business sector as of January 1, 2024. The adjustments thathave been announced since 2023 include phasing out the
production of combustion-engine components at the Munich
location. Further adjustments will likely be necessary, particularly at our European locations, due to the phaseout of
combustion technology. To safeguard the competitivenessof the powertrain business, we must also adjust headcountin the areas of development, sales, and administration at the
Feuerbach and Schwieberdingen locations in Germany. In
the field of automated driving, we also decided in 2023 not toinvest any further resources in the hardware development oflidar sensors, given the technological complexity and delaysin the market launch. The existing engineering capacity is
to be allocated to other sensor technologies such as radar.

Achieving these targets also requires that we strengthen ourcompetitiveness through cost efficiency and by systematically aligning our portfolio with future changes in the market and competitive landscape. Among other things, ourfar-reaching measures concern purchasing activities andmanufacturing processes, as well as the global production
network, administration, and sales. They are also concerned

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The Cross-Domain Computing Solutions division is alsoplanning to improve the setup of its locations, particularly in
the greater Stuttgart area. Measures here include a comprehensive cost-cutting and performance program, which will
focus on efficiency in research and development along withadministration and sales.
We are working on the competitiveness of the Mobility business sector’s location structure outside Germany as well.
This applies to locations belonging to different divisions inFrance. In the powertrain systems business, we are also
adapting our activities relating to push belts for CVT (continuously variable transmission) at our factories in Ho Chi Minh
City, Vietnam, and Tilburg, the Netherlands. And in the­mechanical steering segment, which is becoming much lessimportant, we have announced the closure of a plant in Pe­nang, Malaysia.
Outlook for powertrain technology
Future powertrain technology will be impacted to a large­degree by emissions regulations. Besides CO 2 regulations,these include the new European Euro7/ VII emissions standard, which we expect to come into force by summer 2024.
Following the agreement reached by the European institutions in December 2023, it still has to be approved by the EU
member states in the European Council and by the European
Parliament. However, the technical regulations based on
this will take more time. The new regulations are expected toapply to type approval for passenger cars and light commercial vehicles from the start of 2027 and for heavy commercial
vehicles starting in mid-2028; in each case, they will apply to
new vehicle registrations after a period of one year.

As a company, we are committed to the very ambitious Parisclimate targets. In this spirit, we continue to pursue all technology paths and offer our customers a broad portfolio. We
want to make any necessary structural changes as sociallyacceptable as possible. In the transformation in powertraintechnology, we are committed to harmonizing the interestsof ecology, business, and society. For this reason, our work
focuses on improving our existing technology as well as on
new technologies. The aim here is to reduce emissions fromcombustion engines, with regard to both the engine itself
and exhaust-gas treatment. We also want to contribute to
low-carbon mobility through a variety of developments, including components and systems for electric vehicles thatrun on green electricity.
In the transitional phase and in numerous applications(­especially in heavy-duty and long-haul traffic), the modern
combustion engine will continue to play an important role. It
will also feature as part of hybrid configurations. Bosch’s
aim is to remain a long-term partner for systems and components through efficiency in capital expenditure and engineering work and to systematically exploit the opportunities
that present themselves in existing areas of business. Nonetheless, we expect sales revenue in the combustion-engine
business to decline from the middle of the decade onward,
and in addition to adjustments there will be regional shifts,
especially in Europe. Low-carbon and completely carbon-­neutral fuels – such as renewable synthetic fuels – can help
the existing global vehicle fleet play a role in achieving climate targets. Moreover, alternative fuels can complement
electromobility where purely battery-electric powertrain
solutions still face economic or physical challenges, such as

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in heavy trucks. In addition, low-carbon and carbon-neutral
fuels can be used in countries in which the take-up of electromobility is slower as a result of the lack of recharging
infrastructure. We also supply components for vehicles­
powered by natural gas and bioethanol in countries such as
Brazil.
In addition to purely battery-electric powertrains, manyauto­makers are equipping their combustion engines with­hybrid solutions such as 48-volt technology. Both combustion engines and 48-volt batteries fall within the purview
of the newly formed Power Solutions division. The 48-volt­technology in particular helps manufacturers reduce com­bustion-­engine consumption and to make these engines
more en­vironmentally friendly. One of the variants of 48volt tech­nology that Bosch offers in Europe is a battery withintegrated power electronics. In this context, the very tightsupply situation last year has improved significantly and is
expected to normalize as further lines go into operation.
The growth market for electromobility
In the electric passenger-car and commercial-vehicle segments, nearly all automakers have now announced ambitious sales and fleet-share targets. By 2030, we expect thatsignificantly more than one-half of all new passenger cars
will be electrified, as either battery-electric or hybrid models. For 2024, however, our assumption is that market de­velopments will vary from region to region. While growth inChina will remain largely constant, we expect to see a reluctance to buy among consumers in Europe, and especially inGermany, due to the expiration of the green bonus scheme.
Considerable variations between products and delays in vehicle launches can be observed in the European and American markets. They mean a higher planning risk for suppliers
and manufacturers.

To resolve these difficulties presented by electromobility,
Bosch has established a discrete Electrified Motion division.
We offer a wide range of solutions in the field of electric driving, from e-axles to electric motors and power electronics,
and are therefore present in all relevant markets. This requires heavy upfront investment in development and production. In addition, there are the aforementioned challenges in the market. For this reason, a systematic focus on
greater cost cuts and more standardization is needed to­remain successful. These efforts are already paying off in
China.
Our innovations in electromobility include new powertrain
solutions, based on 800-volt technology, that shorten battery-charging times. These solutions went into production in
2023. The Bosch Car Service network is also extending its
servicing and repair portfolio for electric and hybrid vehicles. One further new development is a connected energy
and thermal management system that predictively (i.e.,based on forecasts) gets the battery up to the right temperature when it needs charging. This cuts the time taken to recharge. Another new feature efficiently distributes electricaland thermal energy between the battery, the powertrain,
and the air-conditioning system during driving. And with aview to recharging security, we are working with the startup
Fetch AI to develop a digital passport for the electric car –independent of centralized data platforms.
Fuel cells: a promising technology
Electrical machines and inverters can not only be used inbattery-powered vehicles. They are also fundamentally­suitable for vehicles powered by fuel cells. For the fuel-cell
power­train as well, we offer a comprehensive portfolio ranging from individual components to the stack (a combinationof fuel cells that are connected with each other electrically)

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and entire fuel-cell systems. The ramp-up of fuel-cell technology depends heavily on the expansion of hydrogen infrastructure, and also depends on government policy. In thiscontext, our activities relating to PEM fuel cells are initially
focusing on the commercial vehicle sector.
We started production of our fuel-cell power module at the
Feuerbach location in 2023. For fuel cells as well, we rely ona manufacturing network. In Germany, our Bamberg plant
supplies the fuel-cell stacks and our Homburg plant supplies system components. In 2023, we also further ramped
up manufacturing of the fuel-cell power module at our plantin Chongqing, China. The necessary components are supplied by our plant in Wuxi, China. In addition, we are establishing manufacturing capacity close to customers at our­location in Anderson, South Carolina, USA . Together withthe start of production of our fuel-cell power modules, a recycling plan also kicked off. With this, we aim to repurchasestacks when their useful life expires in order to recover the
precious platinum that is used as a catalyst. For this purpose, we have concluded an agreement with the mobility
provider Hylane GmbH in Cologne, Germany. This startup
rents out hydrogen commercial vehicles, some of themequipped with Bosch fuel-cell powertrains.
In commercial vehicles, however, hydrogen can be used not
only in fuel cells, but also in hydrogen engines. For these engines, we are working on both port- and direct-injection components and systems, as well as the necessary control units.
This solution is particularly suitable for heavy commercial
vehicles operating for lengthy periods with especially heavyloads, such as construction and agricultural vehicles. The
currently available engine and powertrain technologies already provide a good basis for hydrogen engines. Much of
the existing technology used for development and manufacturing can be repurposed. In addition, a hydrogen engine ismade of steel and aluminum, which reduces dependencies
on critical raw materials such as cobalt and their supply
chains. We have already won a number of small-scale­projects.
In addition, we are looking into PEM electrolysis and investing in the development of the associated components. Electrolysis uses electricity to split water into hydrogen and­oxygen, thereby producing hydrogen. We started building
prototypes for the electrolysis process at the beginning of
2023. We are also working on technologies in the field of stationary power generation based on solid-oxide fuel cells(SOFC).
Vehicle dynamics as a growth area
The latest generation of the ESP ® braking control systemshows how hardware and software engineering are becoming separated on the one hand, yet are also cross-pollinating.
The key innovation here is a new control concept: this software can intervene not only in the braking system but also in
the electric powertrain and electric steering system. As aresult, it can take preemptive action in critical situations.
This allows the vehicle’s driving stability and agility to be­enhanced.
The new control system can be integrated into both a central
vehicle computer and the ESP ® control unit or other braking
control systems, and is also available as a discrete software
package. It will be part of a future vehicle management­system – a software system solution that coordinates all­aspects of vehicle motion by centrally controlling the brakes,
steering, and powertrain. From 2024 onward, we expect­additional synergy effects to arise from the integration ofbraking and steering systems under the roof of the new­Vehicle ­Motion division.

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Software-defined vehicles
Software-defined vehicles require a new, centralized software and E/E architecture. Today, 30 to 50 individual control
units are installed even in compact-class vehicles, and premium vehicles may feature more than 100. In the future, itwill be possible to significantly reduce the number of control
units by using powerful computers for the various vehicle­domains, such as cockpit and connectivity functions. At the
beginning of 2024, we presented an innovation at the Consumer Electronics Show in Las Vegas, Nevada, USA , in which
infotainment and driver-assistance functions are combinedin a software-intensive central computer and a powerful system-on-chip. In the future, the new software and E/E architectures will make it possible to update and continuously
optimize software over the vehicle’s lifecycle, within the limits set by the hardware.
This goes hand in hand with a growing separation of hardware and software. We are developing a uniform softwareand E/E architecture for the entire vehicle. We are also increasingly offering hardware-agnostic software that runs on
chips made by different manufacturers. Among other things,
this applies to the video-based perception of the vehicle’s
surroundings, which serves as the basis for assisted and­automated driving and parking. At the same time, we arealso working on hardware-only camera heads. We want our
subsidiary ETAS to play a growing role in bringing the software-defined vehicle to fruition, and to offer basic vehicle
software, middleware, engineering tools, cybersecurity solutions, and end-to-end engineering and consulting services,
both on the external market and within the Mobility businesssector.

Driver assistance and automated driving
We are systematically improving our driver assistance systems for SAE levels 0 (such as lane-departure warning systems) to 2 (such as lane-keeping support systems and automatic cruise control) and also working on automated driving
functions that significantly relieve drivers on freeways and incongested traffic. In addition, we are developing automateddriving in stages in line with SAE Levels 3 and 4. By 2030, we
expect the number of vehicles equipped with SAE Level 2
or Level 2 hands-free systems to at least double.
We use partnerships to augment our engineering proficiency,such as the engineering alliance with the Volkswagen Groupsubsidiary Cariad. The aim of this partnership is to make­automated driving suitable for volume production. More specifically, these functions are Level 2 hands-free systems forurban, extra-urban, and freeway driving, as well as a systemthat assumes all driving functions on the freeway (SAE Level3). In addition, an automated parking and charging service
for electric vehicles is being tested in pilot projects such as
an experimental Bosch parking garage in Ludwigsburg andthe Cariad staff parking garage in Ingolstadt (both in Germany). In these garages, vehicles move driverlessly to thecharging station and then back to their parking space. Building on our experience, we are also working on systems solutions for driverless maneuvering in automotive plants.

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A focal point of growth: semiconductors
In 2023 as well, we made a number of decisions that aim
to further significantly expand our capacity and our market ­position in the semiconductor segment. In addition, oursemiconductor business invested a total of some 630 million euros in 2023 in the corresponding production facilities
and infrastructure. This includes the expansion of the cleanroom space in Reutlingen, Germany, which will give us moremanufacturing capacity for processing 200-millimeter wafers. The further expansion of the Reutlingen location will
primarily serve the growing demand for MEMS in the automotive and consumer sectors, as well as for silicon carbide
power semiconductors, which play a key role in electro­
mobility. In addition, it is planned to further expand thesemiconductor location in Dresden, Germany, where we
manufacture application-specific integrated circuits (ASICs)
as well as power semiconductors, and where we also aim tostart manufacturing MEMS on 300-millimeter wafers overthe medium term. Over the next few years, Bosch plans toinvest some 3 billion euros in the development and manufacture of microelectronics and systems based on them, bothas part of its own investment plan and under the auspicesof the European IPCEI ME (“Important Project of Common­European Interest on Microelectronics”) funding program.
We also opened a new test center for chips and sensors in
2023 at our location in Penang, Malaysia, and plan to expand
the site further.
With regard to silicon carbide semiconductors, we completed the acquisition of TSI Semiconductors LLC ’s manu-

facturing site in Roseville, California, USA . We have also
­applied for funding under the U.S. CHIPS Act to convert thesite to the manufacture of silicon carbide power semiconductors on 200-millimeter wafers. In Germany, moreover,
we have founded the European Semiconductor Manufacturing C­ ompany (ESMC) GmbH in Dresden together with TSMC,
Infineon, and NXP. A 300-millimeter wafer fab for semiconductor production is to be built in order to meet the future
capacity requirements of the rapidly growing automotive andindustrial sectors. As the operator of the factory, TSMC
holds a 70 percent stake in the company; Bosch, Infineon,and NXP each hold 10 percent. Total investment is expected
to run to some 10 billion euros. The project is planned within
the framework of the European Chips Act.
Expansion and growth in additional areas
Following the boom during the Covid-19 pandemic, the e-bikemarket is in a consolidation phase. Fundamentally, however,
we expect the market to continue to grow due to changes inmobility in many regions and to changes in leisure behavior.
The focal point of our activities is our core European market.
There is additional growth potential in North America and incertain countries in Asia Pacific, where we are already represented by our own sales organizations. In addition, we arecontinuously expanding our range of drives, batteries, control units, and digital solutions for e-cyclists, as well as services for specialist bicycle dealers. For example, displays
can be personalized, riding modes can be set individually via
new app features, and theft protection can be extended witha digital e-bike pass.

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The Two-Wheeler and Powersports unit intends to continue
growing its safety systems with its motorcycle ABS and­motorcycle stability control system, also for high-volume
smaller motorcycle classes, as well as its advanced rider­assistance system (radar-based solutions). In addition, innovation fields such as software, connectivity, and electrification are becoming increasingly important in the motorcycle
market as well. In the future, Bosch will make it possible toactivate additional vehicle functions using an online update.
In addition, a new electrical powertrain system debuted thatdelivers 6 kilowatts of power. The focus up to now has beenon 3-kilowatt units. The new system is ideal for two-wheelers such as large scooters and classic motorcycles in urban
environments and on cross-country trips. With engine control units, injectors, and other developments, we want tomake the operation of combustion engines for two-wheelers
and powersports vehicles more efficient.
We also see opportunities for growth in the use our systems
and components in other mobility markets. Through ourBosch Engineering unit, we also offer our radar and ultrasonic sensors for assistance systems and the automation ofagricultural machinery. In 2024, we plan to premiere a radar
sensor that allows height measurement while driving on uneven terrain, so that the height of a device above the groundcan be set precisely. We also see opportunities for electrification in agriculture, as this can open up certain advantages
for small to medium-sized machines such as high efficiency,
low maintenance costs due to less fuel and fewer filters, andthe use of locally produced electricity. Through Bosch Engineering, we offer motors for farm loaders, vineyard tractors,
and farm tractors, among others. Another field is electrification solutions for boat drive systems. We combine our own
components such as the electric motor, inverter, and trans-mission on a single platform, supplemented by other components such as the high-voltage battery, charger, and cableharnesses.
We are also debuting additional services. The target grouphere is mobility and logistics service providers. These services include solutions that provide uninterrupted information about the vehicle’s condition and its lifecycle, and are
therefore an aid for fleet customers and workshops. We also
bring service providers and fleet customers together via our
L.OS platform.

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Industrial Technology
Drive and Control Technology
In our Drive and Control Technology division (Bosch Rexroth), we are continuing to expand our activities as a provider
of mobile and industrial hydraulics and of factory automation and connected manufacturing. The main elements ofthese efforts are the further development of the existing
portfolio, innovations in software-based products and services, and the broadening of our international presence
through the expansion of our sales and manufacturing network. The division is also strengthening its competitivenessthrough partnerships and acquisitions.
The markets for the division’s two portfolio segments, hydraulics and factory automation, differ fundamentally. In thehydraulics segment, Bosch Rexroth has a strong position ina market that will grow moderately over the long term. In factory automation, by contrast, Drive and Control Technology
is a niche provider in a large and rapidly growing market. In
both segments, we want to grow faster than our respective
markets. Cost competitiveness, a strong product portfolio,
and a broad regional footprint are important factors here. In
this context, we are strengthening our portfolio throughpartnerships and acquisitions.
In the area of innovation, Bosch Rexroth is focusing on newtechnologies such as the electrification of mobile hydraulics,
where our eLION platform offers solutions for the electrification of mobile machinery. We are also using software functions as a way of further improving connected solutions forindustrial hydraulics. In the future, digital twins of all products are to be made available on an online portal. Energy-­
efficiency improvements will also continue to play an important role. For example, a new series of large hydraulicmotors is significantly lighter than the previous generation,
which saves resources and reduces emissions during use. In

factory automation, the pinpointed control of systems canhelp make operations more energy efficient. In the 2023 fiscal year, further important partners could be won over for
Bosch Rexroth’s ctrlX OS operating system with digital services. More than 90 partner companies are now part of the
ctrlX world.
Innovation centers bring the diversity of the Drive and Control Technology portfolio to life for customers. In addition to
the existing center in Ulm, Germany, new innovation centers
opened in the 2023 fiscal year in Warsaw, Poland, Budapest,
Hungary, and Lohr, Germany. One strategic focal point apartfrom innovation is international footprint. The local-­for-­local
strategy (local value creation and supplier base) and improvements to competitiveness require additional investments and the optimization of structures. In this context, adecision was made in 2023 to merge several locations in the
Stuttgart region as well as in Brazil and North America. The
aim is to increase the share of value created in China andNorth America. In Europe, the newly opened plant in B
­ rnik,Slovenia, and its expansion that has already been announced, as well as the expanded sites in Blaj, Romania, andBursa, Turkey, will improve our regional footprint. At its location in Lohr, Germany, Bosch Rexroth has invested in a newlogistics center and commissioned new energy-efficient systems and optimized processes in its foundry.
To expand market position in China, a strong local presence
and an adapted product portfolio are crucial. To this end, thedivision has set up joint ventures with regional partners todevelop and offer products for hydraulics, off-highway electrification, and automation. In September 2023, a joint venture agreement was signed with Zhuhai Enpower ElectricCo. based in Zhuhai, China. It aims to develop and sell
off-highway electrification products and applications. The establishment of the new company is still subject to a
­ pproval

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by various bodies, including the antitrust authorities. The
aim is that the joint venture will add to the electrified productportfolio in hydraulics, in order to offer technically complementary and competitively priced solutions for the Chinese
market. To strengthen its automation business in China, joint
venture agreements were signed with Zhejiang Hechuan
Technology, based in Quzhou, China, in November 2023.
Here too, official approvals are still pending.

Other businesses
The Bosch Manufacturing Solutions unit also grew significantly in 2023 – both within the Bosch network and withthird-party customers. Above all, this growth is being generated in the areas of strategic future importance for electromobility. In its business with third-party customers, the main
focus is on assembly and testing systems for the growth markets of batteries, fuel cells, and electrical powertrains.

The ramp-up of the plant in Querétaro, Mexico, opened in
mid-2023, is intended to support the division’s growth plansin North America with local and competitive production andprocurement. The Fountain Inn location in South Carolina,
USA , is being developed in parallel. Planning work for the
new location in Charlotte, North Carolina, USA , is continuing. One significant step toward shoring up the hydraulics
business, especially in North America, was the completionof the acquisition of HydraForce, Inc. in Lincolnshire, Illinois,
USA , in February 2023. In the ongoing integration process,one particular focus is being placed on cultural and organizational integration within the Compact Hydraulics business unit.

The Bosch Connected Industry business unit is responsible for business with connected industry-related software
solutions for in-house and third-party customers. The product range has three main focal points: development software
for mechanical engineers, software for the digital factory,
and software for structuring and describing data. In the 2023
fiscal year, Bosch Connected Industry won an order to equipa battery-cell production facility for a major customer.

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Consumer Goods
Power Tools
Bosch Power Tools operates in an environment that is bothvolatile and highly competitive. Following the extraordinary
boom during the Covid-19 pandemic, the division now faces
a persistently weak consumer climate and a weak construction and real estate sector. With product innovations andmodifications as well as novel services, Power Tools continues to pursue a strategy of growth across its segments. The
division is also systematically opening up new business­areas. This means that its global structures have to be geared
to growth potential and that further improvements on thecost side to be consistently implemented in order tostrengthen competitiveness. This also includes structural
measures, such as those in the corporate, development,
and administrative units at the Leinfelden location near
Stuttgart.
To be globally competitive, Power Tools will also undergoreorganization in 2024. To respond to changing market andcustomer requirements and leverage synergy effects acrossthe entire value chain, it will combine the DIY and professional parts of the power tools segment into a single unit. In
addition, the outdoor and garden tools businesses will bestrengthened by merging them into one business unit. Investments will also be made in important growth areas such as
the accessories business and the expansion of the division’s
North America business.
In the future, the Power Tools portfolio will be based evenmore strongly on local requirements and use-related needs,
such as professional tools for emerging markets. This will besupported by a new regional structure with a sales structure
to match. The aim is to provide solutions for markets withsimilar requirements in an optimally coordinated global
product portfolio. As before, one focal point here will be thefurther expansion of the cordless device range and the twocross-manufacturer battery platforms in the 18-volt class:the “AmpShare” alliance for commercial applications andthe “Power for All Alliance” for products for the home. In addition, it is expected that technical developments in the fieldof battery technologies will provide a boost to efficiency,such as a nearly 70 percent longer battery life for professional appliances. In 2023, Bosch acquired some 12 percentof the share capital of the Swedish company Husqvarna AB.
In acquiring this stake, Bosch aims to strengthen the battery
alliance between the two companies. Husqvarna also includes the Gardena subsidiary and its Flymo brand, both ofwhich are also partners in the Power for All Alliance.
In the future, the division intends to focus particularly on the
North American market, which on its own accounts for morethan 40 percent of the worldwide power tool market. By tailoring its product portfolio more closely to the needs of theNorth American market and expanding its marketing activities and sales structures, Power Tools aims to address existing target groups even more effectively and expand into new
segments. In addition, Power Tools is systematically moving
into adjacent business areas such as handheld power tools
for DIY applications and for trade and industry. Another­example of a new segment that is set to drive growth in theaccessories business is industrial, robot-assisted grinding.
In this segment, Bosch acquired a stake in FerRobotics Compliant Robot Technology GmbH, Linz, Austria, a provider inthe field of contact-sensitive automation, at the beginning of
2024. Power Tools is also continuing to drive forward the digitalization of its sales and marketing processes. In this context, online commerce is an important strategic focus. This is
why the division is expanding not only its strategic allianceswith multichannel and online retailers, but also the scope of
information and interaction available online.

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As part of the sustainability strategy in the power tools business, the World Wide Fund for Nature (WWF) Germany has
been giving Power Tools the benefit of its expertise since
March 2023, in an intensive sparring and consulting programon subjects such as the further development of its climate-­
action and packaging strategy. As a further element of thiscollaboration, which is set to run for at least five years, associates will receive training to raise their awareness and support the sustainable transformation of the company. The­division strives to save raw materials, conserve resources,and design its products to optimize their recyclability. The
measures Power Tools is developing in this context include
the greater use of recycled materials in packaging and power
tools. One current example is the re-release of the entire
range of measuring technology for DIY: the product housings, accessories, and their packaging are largely made fromrecycled materials.
BSH Hausgeräte
Demand for household appliances has cooled noticeably
following record sales revenue during the Covid-19 pandemic. In addition to pull-forward effects, key reasons include weakness in real estate markets due to higher interest
rates and high inflation rates. In Europe, this is having a particularly negative impact on the kitchen installation business. Moreover, competition is intensifying, particularly
from Asian competitors. In addition, we are having to absorb
major exchange-rate burdens in countries such as China
and Turkey. Sustainability, environmental awareness, andhealthy eating remain important for consumers. In addition,
they are looking for more convenience through digital solutions and features. Innovation will therefore continue to playa significant role in the future.

The company’s new 2030 growth and value-creation strategy defines its response to the significantly changed market
conditions and sets ambitious growth targets. BSH aims toconsolidate and expand its position in the home applianceindustry worldwide. To grow faster than the market and enable the necessary investments, it has to significantly reducecomplexity and costs. For this purpose, BSH is adapting its
global organization – particularly in indirect areas – to changing conditions.
At the same time, BSH intends to consistently exploit its
growth opportunities, to continue to strengthen its brandportfolio through innovations, and to further improve quality
and resource efficiency. In the cooling appliances segment,
for example, its new Green Collection uses a higher proportion of environmentally friendly materials and has either “A”
or “B” energy-efficiency ratings. The CO 2 emissions attributable to the production materials, mainly steel, are roughly
one-third lower than for models made of conventional­materials. The next generation of dishwashers has an evenstrong­er focus on energy efficiency, CO 2 reduction, and­connectivity. BSH is also expanding its range of washing­machines in energy-efficiency class A.
Another focus of innovation at BSH is smart kitchen appliances, all of which are part of the Home Connect ecosystem.
The new ovens use image recognition to identify around40 different dishes, suggest the best cooking method, andoptimize baking and roasting with the help of artificial intelligence. Repair and update options for connected devices will
also play a greater role in the future. Guaranteed spare parts
availability of up to 15 years will help here, as will the possibility of remote maintenance for connected devices.

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Home Connect has been connecting the appliances of various brands since 2014. In this app, household appliances
can be connected so that they can be controlled via smartphone, tablet, smartwatch, Amazon Alexa, or Google Home.
This lets consumers control their appliances remotely, receive status updates, and get use-based recommendations
and tips. A network of more than 50 partners in various fields
offers additional functions ranging from recipes to energy
management. Home Connect is currently available in over
60 countries and 30 languages.
At the same time, BSH Hausgeräte is strengthening the­robustness of its supply chains and focusing on local production. In 2022, construction work began on a new factoryin Monterrey, Mexico. Pilot production of refrigerators for
the North American market started there in October 2023.
BSH Hausgeräte is also investing in Asia Pacific and Africa.
Work to expand the capacity of its washing machine factoryin Chennai, India, was completed in 2023. In addition, construction work began on a stove factory in Egypt to improveaccess to the African market and open up good growth prospects for the business there.

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Energy and Building Technology
Building Technologies
The Building Technologies division aims to offer systems,
solutions, and services that improve the safety and securityof people, buildings, and material assets, and also enhance
convenience and energy efficiency. In October 2023, the decision was made to comprehensively realign the division: in
the future, it is to focus on its regional integrator business,with solutions and services for building security, energy efficiency, and building automation. Most of the Building Technologies division’s product business is to be carved out as anindependent unit and sold. This includes the Video, Accessand Intrusion, and Communication business units. The product business with fire-alarm systems, by contrast, is to becontinued. Because of its importance for systems integration, it is to be merged with the integrator business and continued.
The division’s strategic focus is on further developing andstrengthening its integrator business, with the aim of becoming a leading systems integration provider in selected markets and of seizing the good growth opportunities there. A
further intention here is to strengthen the services business,with an attractive share of recurring sales revenue and thus
greater independence of cyclical fluctuations. All in all, theproduct business has developed well and is strongly positioned in several focus segments. However, we have decided
to look for a buyer who will take over all three business units,
and who will further strengthen the business and give it asecure future.

In the regional systems integration business, Building Technologies offers connected and integrated solutions for security, convenience, and efficiency in commercial buildings –meaning it is positioned as a cross-domain, software- andproduct-independent provider. We want to expand this business. Its activities focus on the markets in Europe and North
America, where we are expecting annual market growth of
4 to 5 percent, but they also extend to Singapore. Acquisitions are also part of our growth strategy. In the 2023 fiscal
year, we acquired Paladin Technologies Inc., Vancouver, British Columbia, Canada, and PalAmerican Technologies Inc.,
Tumwater, Washington, USA , a provider of security solutions
and system integration services. We also acquired the activities of West Coast Fire & Integration Inc., Yorba Linda, California, USA , which specializes in fire protection.
In building management in particular, connectivity is playing
an increasingly important role. Due to changing customer
needs and against the backdrop of the increasing scope ofdigitalization options, we are developing new connected services. The aim here is to manage processes in buildings more
efficiently. This includes a service suite for digital building
management that connects and integrates all service solutions on one cloud platform. An energy manager makes it
possible to visualize, analyze, and evaluate the efficiency ofa building’s energy supply, distribution, and consumption.
The potential savings identified and specific actions derived
allow CO 2 emissions and energy costs to be deliberately reduced and resources to be conserved. A further service forfire alarm systems supports fault detection and the performance of predictive maintenance.

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The product business with fire-alarm systems, which will bepart of the systems integration business in the future, is operating in a growing market environment, with growth rates
of around 4 percent. Its most recent solutions include a
new version of its video-based fire-detection system. AI algorithms based on deep learning ensure a more accurate distinction to be made between real fires and false alarms,­especially in challenging environments such as semi-openstorage areas or outdoor areas where disruptive factors suchas wind, moisture, or dust make detection difficult.

tems, the electricity for heat pumps is increasingly being
generated from sustainable sources. In addition, the heatpumps can not only heat, but also cool if necessary.

Home Comfort
The Home Comfort division aligns its goals and strategy withthe growing sustainability requirements in the building sector. Its claim is “Make. Home. Comfort. Green.” Formerly
Thermotechnology, the division was renamed Home Comfort at the beginning of April 2023. The new name is intended
to underline the product portfolio’s shift toward sustainable
heating and air-conditioning technology as well as other products for comfort and well-being in the home, with greater connectivity also playing a role.

To further expand our heat-pump business, we are investingin our European development and manufacturing network.
For example, we are planning a new manufacturing site forheat pumps in Dobromierz, Poland. In Aveiro, Portugal, we
are investing in new laboratories, two factory buildings, andadditional heat-pump production lines. We are also bolstering our existing locations in Europe: At our Eibelshausen location in Germany, for example, early 2023 saw the start ofproduction of the indoor units for an especially quiet andeco-friendly heat pump that runs on the natural refrigerant
R290 (propane). This heat pump was developed jointly byteams from Wernau (Germany) and Aveiro, and is produced
in a manufacturing network involving Aveiro, Eibelshausen,
and Tranås, Sweden. The devices were designed in a user
experience approach involving specialists from the heating
trade. Development focused on design, functionality, andquieter operation.

Electrification and renewable energy are becoming considerably more important. There is great potential for sustainability in heat pumps and hybrid heat-pump systems comprising a heat pump and a condensing boiler based on
fossil-fuel technologies. While heat pumps are used in newbuildings and in existing buildings that have been insulated,hybrid heat pumps are an alternative when modernizing energy consumption in poorly insulated structures. In such sys-

In our Home Comfort division as well, we are pursuing a systematic digitalization strategy. We had sold more than a million connectable devices by the end of 2023. A Bosch energy
manager makes it possible to link up the heat pumps andphotovoltaic systems in the home. It controls the heat pumpaccording to the photovoltaic power available, thus increasing the amount of locally produced electricity used for heating, cooling, and hot-water generation.

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The division is also relying on its extensive network of partners to develop the heat-pump business, helping heatingcompanies build up expertise in these new technologies andoffering additional services. For partner companies, therefore, it has launched a certification program for heat pumps
and split air-conditioning units in online and classroom formats. Moreover, a foundation service is intended to offer
heating professionals the option of ordering a snug-fitting
foundation for the outdoor units of air-source heat pumps
from the Bosch Partner Portal, thus outsourcing this noncore activity. The service is currently in a pilot phase. In collaboration with Power Tools, Home Comfort offers trade-­
specific software that provides support with planning,
quoting, and invoicing, and helps them with appointment
coordination and timesheets.
Demand for air-to-air heat pumps for air conditioning is growing in Europe as well, especially for residential buildings. In
all European markets, Home Comfort offers a diversified
portfolio for all types of residential units, as well as for thecommercial sector. This business is to be systematically expanded in Europe. The same goes for North America, where
the focus will be on residential buildings. Home Comfort isalso increasingly targeting the North American market forheat pumps. At the beginning of 2024, at the Consumer Electronics Show in Las Vegas, Nevada, USA , it presented an airto-air heat pump developed specifically for the North American market, which is particularly suitable for use in colder
climate zones such as Canada and the northern UnitedStates. This heat pump still provides full heating power
down to minus 15 degrees Celsius. It meets the requirements set by the U.S. Department of Energy as part of the
Residential Cold Climate Heat Pump Technology Challenge,
and it is now set to move from laboratory to field testing.

The transformation associated with the increasing electrification of heating technology also requires structural measures. For this reason, adjustments are being made to the
product portfolio for fossil fuel-based heating technology. In
the future, the business unit concerned will focus in particular on hybrid solutions and sustainable fuels such as hydrogen, biomethane, and synthetic fuels for residential andcommercial buildings. Today’s broad portfolio for combustion-based products is being aligned with the changing requirements of the market, technology, and demand. This willallow administrative tasks to be reduced, as well as the costof supporting and further developing components in product development. The planned portfolio measures will also
alter the setup relating to fossil-fuel technologies at our research and development locations. Moreover, internal processes are to be simplified and duplicated tasks at locations
reduced. This will also lead to personnel adjustments.
Moreover, collaboration with the Stuttgart-based Robert
Bosch Smart Home GmbH, which offers web-enabled products for the home, was intensified in 2023. Important topics
include the addition of a floor-heating thermostat and a universal multibutton switch to the product range. In addition,
the changeover to “matter,” the upcoming manufacturer-­
independent smart home connection standard, is a key­issue. The market launch of products that are compatible
with this standard is planned for 2024.
Bosch Global Service Solutions
The Bosch Global Service Solutions division focuses on­services for customers in the areas of mobility (such as theeCall emergency call service and breakdown assistance),
monitoring (such as cold-chain monitoring and emergency
services for elevators), customer experience (such as cus-

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tomer support), and business services (such as IT service
desks). In addition to customers in the automotive industry(manufacturers and fleet operators) and the logistics andbuildings business, Global Service Solutions offers its solutions within the Bosch Group. Global Service Solutions
focuses on sophisticated technology-based services and­has significantly expanded its share of this business in recent years.
Consistent management of its portfolio of services serves tosecure profitability. In addition to acquiring new customers(in sectors such as pharmaceuticals, healthcare, and life sciences) and expanding the portfolio with existing customers,
innovations through new services are also important for
growth. One example of this is the Child Presence Detection
service – a system that uses an emergency call and alarmsystem to protect children from serious harm in overheatedcars. Another innovation is the e-Charging Booking and Payment solution, which has seen Bosch Secure Truck Parking(booking platform for truck parking spaces) open the firstpublic heavy-duty charging station in Eindhoven, the Netherlands, together with its cooperation partner TRAVIS.

Selected companies not allocatedto business sectors
We see the medical technology sector as an area of potential
strategic importance for Bosch. Our subsidiary Bosch
Health­care Solutions GmbH, based in Waiblingen, Germany, is continuously expanding its medical technology
portfolio. The company has signed an agreement with­Randox Laboratories Ltd., based in Crumlin, United Kingdom, and Kearneysville, West Virginia, USA . In addition to
the joint development of tests, the strategic partnershipalso focuses on strengthening Bosch Healthcare Solutions
through access to the global distribution network of Randox
Laboratories Ltd.
In addition, the unit’s product range is constantly evolving.
Besides various SARS -CoV-2 tests, the analyzer for near-­patient rapid PCR testing now offers further tests to detect
other infections. These include tests for hospital pathogens,
mycoplasma, and sexually transmitted diseases. A numberof other tests are in development; their launch is planned for2024. Bosch Healthcare Solutions also offers a high-precision measurement device for determining the biomarker
FeNO in exhaled breath. This biomarker is used in the diagnosis and treatment monitoring of asthma, one of the mostcommon chronic respiratory diseases.
Since 2013, grow platform GmbH, based in Ludwigsburg,
Germany, has provided a platform within Bosch for developing and implementing new business models. It is part of a
global in-house innovation network in which new businessmodels are evaluated and pursued in startup teams. For example, the core product of the startup Bosch Software Flowenables software release processes to be fully automated.
The Bosch Cognitive Services business operates in the fieldof artificial intelligence, more specifically in the area of visualobject recognition; it was integrated into the Mobility business sector in January 2024. One thing it does is help identify the required spare parts when those parts themselves
have no connectivity. The tasks of grow include considering
different development opportunities for startups that do notprove enough of a strategic fit with the Bosch divisions, suchas involving external investors or operating them as new, discrete units.

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Through Robert Bosch Venture Capital GmbH, based in
Gerlingen, Germany, we invest in external technology startups around the world. This gives us early access to innovative technologies, including potentially disruptive ones. Investments by the company, which operates in the market as
Bosch Ventures, focus on projects involving artificial intelligence, digitalization, mobility solutions, and future computer technologies. In the 2023 reporting year, Bosch Ventures invested in startups in fields including generative AI,
quantum computing, robotics, energy-efficient chip cooling,
AI -based logistics management, and antenna technologies.

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Report on economic position
In a difficult business environment, the Bosch Group achieved its targets for sales­revenue and result in 2023. Although it increased nominal sales revenue by only 3.8 percent to 91.6 billion euros, the exchange rate-adjusted growth rate of 8.0 percent
is w­ ithin the 6 to 9 percent target corridor set out in the forecast for 2023. Amongthe business sectors, the picture is mixed. The Mobility (formerly Mobility Solutions),
Industrial Technology, and Energy and Building Technology business sectors posted
especially strong exchange rate-adjusted growth. Adjusted for exchange-rate effects,
therefore, all three sectors reached or exceeded their forecast level. In this context,
Industrial Technology’s growth is the result of the first-time consolidation of newly­acquired companies. Contrary to our expectations, sales revenue in the Consumer
Goods business sector declined. The main reason for this was the weak consumer
goods market.
With an EBIT margin from operations of 5.3 percent, we achieved our target of signifi­
cantly increasing margin from the previous year’s figure of 4.3 percent. In addition to
distribution cost and administrative expenses as well as research and development cost
growing more slowly than sales revenue, changes in provisions played a role here.
Once again in 2023, we also incurred considerable research and development expenditure in the pursuit of work on projects of future importance. At 2.2 billion euros, free
cash flow developed positively. Significantly improved EBIT and NWC contributed tothis. All business sectors reported a significantly positive EBIT from operations. EBIT
margin was highest in Industrial Technology and in Energy and Building Technology.
The Mobility business sector was able to significantly increase its EBIT margin fromoperations year on year. Consumer Goods discloses an EBIT margin from operations
on a par with the previous year. With the exception of Consumer Goods, therefore,
all business sectors achieved their forecast EBIT margin from operations.

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G 06

G 07

Development of sales revenue

Development of EBIT

Bosch Group 2019–2023

Bosch Group 2019–2023

in millions of euros

in millions of euros

77,721

71,49478,74888,201

91,596

4,503
3,474
2,903

2,815
1,657

2019

2020

2021

2022

2023

Key performance indicators
For an unlisted company such as the Bosch Group, profitability and efficient use of capital resources are crucial for
financing future growth. Accordingly, we use the key performance indicators EBIT margin (earnings before financial result and taxes as a percentage of sales revenue; essentiallycorresponds to the EBIT margin from operations disclosed
in the group management report), net working capital (NWC)
as a percentage of sales revenue (as an internal performanceindicator), and sales revenue growth. Starting in 2024, we
will use free cash flow (FCF) instead of NWC as a performance indicator at the Bosch Group level, particularly forcapital efficiency in the context of our incentive program.
This is more comprehensive than NWC, and also takes factors such as capex development into account. We will continue to use NWC at the business-sector and division level.

2019

2020

2021

2022

2023

Unlike EBIT as per income statement, the calculation of EBIT
from operations disregards the earnings impact of higher­depreciation and amortization from the remeasurement ofassets at the former Automotive Steering division and BSH
Hausgeräte following the complete acquisition of these former joint ventures in 2015. NWC is calculated from inventories, trade receivables, and contract assets, in each casebefore valuation allowances, plus capitalized deferred consideration to customers, minus trade payables and contract
liabilities. An average value is calculated on the basis of themonthly actual values. NWC is measured as a percentage ofsales revenue. The objective of NWC controlling is to keep
the amount of capital tied up over the short term as low as
possible. Free cash flow is determined essentially from thedevelopment of EBIT, NWC, and investments in property,
plant, and equipment and intangible assets.

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The main basis for monitoring this is our internal reporting,which takes its lead from the International Financial Reporting Standards (IFRSs). A monthly business report, whichcontains an up-to-date overview of the operating units’ performance indicators, serves as the central reporting tool. It
provides a year-on-year comparison and a plan-versus-actual
comparison of selected performance indicators. The reportis based on the business plan, which is embedded into
longer-­term strategic corporate planning. The planning
method used is strongly geared toward targets and measures, and the focus is on developing and carrying out­measures designed to achieve the planning targets.
The competitor-oriented benchmark values are used to define targets for the relevant performance indicators. They
form the basis for the Bosch performance bonus – the shortterm variable portion of specialists’ and executives’ remuneration, from section-manager level to the board of management. In 2023, unlike in previous years, the bonus wasdetermined on the basis of EBIT margin (weighted at 50 percent), year-on-year organic sales revenue growth (weighted
at 10 percent), and average NWC as a percentage of sales
revenue (weighted at 40 percent). The greater weighting
given to NWC in the control system underlined the importance of financial resources. This change from the previous
year was an interim step toward making sales revenue, EBIT,
and FCF the performance indicators relevant for the incentives program in the 2024 fiscal year. As in 2023, 10 percentof the bonus will be based on organic sales revenue performance. The EBIT margin from operations will be weighted at
60 percent and FCF at 30 percent. The same percentages
apply at the business-sector and divisional level, where wewill continue to use the respective NWC. The Bosch performance bonus is complemented by VALUE, a variable bonus

program for long-term corporate success at senior executive
and board of management level. It is calculated from the­average Bosch performance bonus factor of the preceding
three years.

Macroeconomic and sector-specificenvironment
Global economic growth slowed further in 2023 compared
to 2022, but exceeded our expectations. Negative factors
such as high prices, higher interest rates, and geopoliticaltensions had an above-average impact on the consumer
goods market and mechanical engineering, as well as regionally, especially in Europe. The year 2023 was also characterized by marked changes in exchange rates, in particular theunexpectedly strong devaluation of the Chinese renminbi.
Global economic output rose 2.7 percent in 2023, significantly exceeding the forecast growth of around 1¾ percent.
Nonetheless, momentum remained weak compared to previous years. All regions performed better than expected, especially North America and Europe. We had already pointed out
considerable uncertainties for both regions in our forecast
last year. The data for economic output is taken from Feri AG
and the International Monetary Fund.
Economic output in the Americas rose 2.3 percent comparedto our forecast of ½ percent. The main reasons for this were
the stable labor market in the United States, rising real
wages despite high inflation figures, and robust investment activity. The economy in Asia Pacific performed slightly­better than forecast. Economic output rose 4.2 percent,compared to our forecast of 4 percent. This was due toAnnual report 2023

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strong 7.9 percent growth in India. In China, however, economic momentum was somewhat weaker than expected,
with growth of 5.2 percent. Compared to the other major
economic regions, the European economy grew the weakest
at 0.9 percent. However, due to more favorable developments in southern European countries such as Spain and in
non-EU countries in eastern Europe, the ¼ percent decline ineconomic output that we had expected did not materialize.

driven in particular by the increase in China. China is also thebiggest market for all-electric vehicles and hybrid vehicles,
followed by Europe. The share of newly registered diesel­vehicles in the European Union and the United Kingdom fellto around 17 percent, down from roughly 19 percent the previous year. In the likewise important Indian market, the proportion of newly registered diesel vehicles fell to some
18 percent, down from roughly 19 percent the previous year.

Global automotive production (including heavy commercial
vehicles) increased, especially in the second half of 2023. Ataround 93 million vehicles, global production in 2023 exceeded the previous year’s figure by 10.6 percent. It wastherefore slightly above the level in 2019, the year before theCovid-19 pandemic. Regionally, the picture is a mixed one. In
China, production rose 11.6 percent year on year, exceedingits 2019 level by 17.1 percent. Although production in the­European Union and the United Kingdom rose 13.2 percent in
2023, it remains 14 percent below its 2019 level. Productionin North America increased 9.5 percent despite the extensive strikes in the automotive industry there; this is still
3.3 percent below the 2019 level. The sources of the data for
global automotive production for our internal forecast process are the third-party forecasts of S&P Global Mobility andBosch in-house marketing analyses in the regions and at
headquarters.

On average across 2023, global production in the machinery
sector, another important market segment for the BoschGroup, attained largely the same high level as the previous
year. However, the significant decline in incoming orders
since the end of 2021 led to a marked slowdown in production over the course of 2023. This applies in particular to theadvanced economies, which fell short of the previous year’slevel, also in terms of the annual mean. In China, momentum
was comparatively strong in 2023, but remained significantly
below the growth rates before the Covid-19 pandemic.

Among newly registered passenger cars, the changes in
powertrain technology continued. The global share of newly
registered all-electric vehicles rose to roughly 14 percent in
2023, up from 12 percent the previous year. Hybrid vehicles
accounted for approximately 17 percent, up from roughly
13 percent. The increase in all-electric vehicles was again

In 2023, the construction sector, which influences developments in the Consumer Goods and Energy and Building
Technology business sectors, once again lost momentum incountries important for us. This is shown by the trend in construction investment. In China, for example, this again fell
noticeably due to financing problems at construction companies and considerable vacancy levels. In Europe, high­energy prices and interest rates put the brakes on investment. In contrast, an increase was recorded in the UnitedStates. The weakness in construction activity is also likely tohave affected demand for home appliances, where the­extraordinary boom experienced during the height of theCovid-19 pandemic had already come to an end in mid-2022.

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Business developments
Development of sales revenue
Bosch Group sales revenue
In the Bosch Group, we generated sales revenue of 91.6 billion euros in 2023, compared with 88.2 billion euros in theprevious year. Year on year, sales revenue rose a nominal
3.8 percent, or 8.0 percent after adjusting for exchange-rate
effects. Adjusted for exchange-rate effects, we therefore
achieved the growth corridor of 6 to 9 percent forecast for2023. Price increases played a role here as well. In contrast
to 2022, effects from changes in the consolidated group in
the 2023 fiscal year came to 850 million euros net; deconsolidation played a subordinate role here.
The newly consolidated companies relate in particular to theIndustrial Technology business sector and its acquisitionof HydraForce and Elmo Motion Control Ltd., based in Petah
Tikva, Israel (Elmo Motion Control), which were included in
the income statement for the first time. The negative impact
of exchange-rate effects on sales revenue amounts to some
3.7 billion euros in total. These were primarily due to the­euro’s movements against the Chinese renminbi, the U.S.
dollar, the Turkish lira, the Japanese yen, and the Argen­tinian peso. When determining the exchange rate-adjusted­development of sales revenue for Turkey and Argentina, reference was made for the first time to inflation-adjusted sales
revenue in order to eliminate the extraordinary effects fromthese hyperinflationary economies. Exchange-rate effects
affected all business sectors, but hit Mobility and Consumer
Goods disproportionately hard.

G 08

Development of sales revenue, 2022–2023
Bosch Group sales revenue by region
in billions of euros
Total 2023

91.6

Total 2022

88.2

44.3 46.8
27.7 27.9
16.2 16.9

2022

2023

Europe2022

2023

Americas

2022

2023

Asia Pacific1

1. Including other countries and Africa.

G 09

Sales revenue structure, 2023
Bosch Group sales revenue by region

30.4%
Asia Pacific1

91.6

billion euros

18.5%
Americas
1. Including other countries and Africa.

51.1%
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Sales revenue by region
Regionally, the picture is mixed. Europe and North America
showed the strongest growth, both nominally and adjusted
for exchange-rate effects. In Europe, sales revenue increased
5.5 percent in nominal terms, and 7.9 percent after adjustingfor exchange-rate effects. The negative exchange-rate effects
are primarily attributable to the Turkish lira. Sales revenue inGermany increased 7.2 percent. In North America, sales revenue rose 6.2 percent in nominal terms and 8.0 percent after
adjusting for exchange-rate effects. In South America, however, sales revenue were nominally 6.2 percent lower thanthe pre­vious year; adjusted for exchange-rate effects, theyrose 1.8 percent. The decisive factor here is the weak performance of the Argentinian peso. In Asia Pacific (including
other countries and Africa), sales revenue rose by just 0.6 percent in nominal terms; adjusted for exchange-rate ­effects,
however, they rose 8.6 percent. In particular, this r­ eflects thedepreciation of the Chinese renminbi. Moreover, sales revenue in China developed more slowly than in pre­vious years. In
contrast, we recorded growth in Japan and India.
From a regional perspective, the share of sales revenue generated in Europe rose to 51.1 percent, up from 50.3 percent
in the previous year. The corresponding figures for the­Americas were 18.5 and 18.3 percent respectively. Accordingly, the share from Asia Pacific (including other countries
and Africa) fell to 30.4 percent, down from 31.4 percent in
the previous year.
Sales revenue by business sector
Our business sectors also varied in their development in
2023. We recorded strong sales revenue growth in Mobility
and in ­Energy and Building Technology. The increase in­Industrial Technology is due to the first-time consolidation
G 10

Development of sales revenue, 2022–2023
Bosch Group sales revenue by business sector

Total 2023

91.6

in billions of euros

Total 2022

88.2

52.6

56.2

21.7 20.3
7.0 7.7

6.9 7.4
2022

2023

Mobility
1. Including other activities.

2022

2023

Industrial Technology

2022

2023

Consumer Goods

2022
1

2023

Energy and Building
Technology

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of HydraForce and Elmo Motion Control. Sales revenue in­Consumer Goods, by contrast, fell significantly.
In the Mobility business sector, sales revenue rose nominallyby 6.9 percent to 56.2 billion euros; adjusted for exchange-­
rate effects, the increase amounted to 10.9 percent. We had
expected sales revenue growth of up to 12 percent here. The
considerable exchange-rate effects are offset by increases
in volume and improvements in the product mix as well as
price increases. The supply shortages for semiconductors
were largely resolved over the course of 2023. This means
we are benefiting from increased global automotive production as well as from good demand for many of our products.
In particular, we were able to increase sales revenue in vehicle dynamics control systems (formerly Chassis Systems
Control division, now Vehicle Motion), Cross-Domain Computing Solutions, and Bosch Engineering. The e-bike business felt the effects of the weakness in the consumer goods
markets.
At 7.4 billion euros, sales revenue in the Industrial Technology business sector, including the first-time consolidationof HydraForce and Elmo Motion Control, were nominally
6.8 percent up on the previous year, or 10.2 percent after adjusting for exchange-rate effects. Adjusted for exchange-rate
effects at least, that means we slightly surpassed our forecast of an increase in sales revenue of up to 10 percent. Without the first-time consolidations of the two above-mentioned
companies, nominal sales revenue declined 0.9 percent year
on year, or 2.3 percent after adjusting for exchange-rate­effects. The business sector felt the effects of the increasing
slowdown in the m­ echanical engineering sector.
The Consumer Goods business sector felt the effect of the
weak demand for consumer goods, whether power tools orhome appliances. As a result, business was even slower

G 11

Sales revenue structure, 2023
Bosch Group sales revenue by business sector

8.4%
Energy and
Building
Technology

8.1%
Industrial Technology

91.6

22.2%
ConsumerGoods1billion euros

61.3%
Mobility

1. Including other activities.

than expected. In our forecast, we had assumed sales revenue growth of up to 3 percent. At 19.9 billion euros (excluding other activities), sales revenue were down overall by anominal 6.6 percent year on year; due to the considerable
exchange-rate effects caused by the devaluation of the Turkish lira and the Chinese renminbi, the exchange rate-adjusted decline was only 1.2 percent.
The Energy and Building Technology business sector sharply
increased its sales revenue in 2023. Sales revenue rose
10.5 percent to 7.7 billion euros. Adjusted for exchange-rate
effects, the increase was 13.2 percent, which exceeds ourforecast of 8 percent. Here we benefited from heavy demandfor energy-efficient and renewable heating technology inthe Home Comfort division. Equally, the Bosch Global Service Solutions division achieved encouraging sales revenue
growth. Sales revenue also grew in Building Technologies,
albeit by a significantly smaller amount.

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T 01

Most important items of the income statementin millions of euros
2023

2022

Sales revenue

91,596

88,201

Cost of sales– 62,976–59,742

Gross profit

28,62028,459Distribution cost and administrative expenses–18,233–17,812

Research and development cost

–7,331–7,224

Other operating income and expenses

1,441

52

Result from companies included at equity

6–1

Earnings before financial result and taxes (EBIT)

4,503

3,474

Financial result

–527

–561

Profit before tax

3,976

2,913

Income tax expenses–1,336–1,075

Profit after tax

2,640

1,838

The differences in our business sectors’ fortunes mean that
our sales revenue structure has changed. The share of sales
revenue attributable to the Mobility business sector roseto 61.3 percent, up from 59.6 percent the previous year. The
share of Industrial Technology is now 8.1%, compared with
7.9 percent in the previous year. The Consumer Goods business sector (including other activities) accounts for 22.2 percent, after 24.6 percent the previous year. The share contributed by the Energy and Building Technology business sector
was 8.4 percent, following 7.9 percent in the previous year.

Results of operations
Bosch Group result
In the Bosch Group, we report an improved EBIT of 4.5 billion euros in 2023, compared with 3.5 billion euros the previous year. The application of IAS 29 led to a burden on resultof roughly 280 million euros. In addition, the largely phasedout Russia business also had a negative effect. EBIT fromoperations increased to 4.8 billion euros from the previous-­year figure of 3.8 billion euros. The EBIT margin from operations improved to 5.3 percent, compared with the previous
year’s figure of 4.3 percent. This means that we will achieve
our forecast of a significant increase in EBIT margin from­operations.
Administrative and distribution cost and research and development cost rose at a slower rate than sales revenue. In addition, restructuring cost was lower than in the previous
year. There were also significantly positive effects in otheroperating income and expenses. A number of items played arole here, including gains from the reversal of provisions andlower expenses for the setup of provisions. One burdening

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G 12

G 13

Research and development cost

Research and development cost

Total expenditure, Bosch Group, 2019–2023

Total expenditure, Bosch Group, 2019–2023

in millions of euros

as a percentage of sales revenue

6,079

5,890

6,110

2019

2020

2021

7,224

7,331

2022

2023

factor is the higher cost of materials and personnel expenses. These have an effect on cost of sales, and result in alower gross margin.
As in previous years, the calculation of EBIT from operations,unlike EBIT as per the income statement, disregards theearnings impact of higher depreciation and amortizationfrom the remeasurement of assets at the former Automotive
Steering division and BSH Hausgeräte following the complete acquisition of these former joint ventures in 2015.
These effects came to around 320 million euros in 2023, andwere thus slightly lower than the previous year’s figure ofroughly 340 million euros.
The factors mentioned are reflected in various income-statement items. In 2023, cost of sales rose 5.4 percent to 63.0 billion euros. It thus rose faster than sales revenue, which grew
3.8 percent. As a result, gross margin fell slightly to 31.2 per-

7.8

2019

8.2

2020

7.8

2021

8.2

8.0

2022

2023

cent, from the previous year’s level of 32.3 percent. At some
3.4 billion euros, depreciation of property, plant, and equipment was roughly 50 million euros lower than the previous
year’s level of approximately 3.5 billion euros. Distribution
cost and administrative expenses rose year on year by 2.4 percent to 18.2 billion euros.
Owing to considerable upfront investments, research anddevelopment cost came to 7.3 billion euros in 2023, compared with 7.2 billion euros the previous year; this means­research and development intensity, at 8.0 percent, fell fromthe previous year’s figure of 8.2 percent.
The Mobility business sector again accounted for the largest
share of research and development cost in 2023, at 72 percent (previous year 73 percent). The main focus of these upfront investments continues to be electrification, fuel cells,
and driver assistance systems – also with a view to auto-

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mated driving – as well as automotive electronics, semi­
conductors, and sensors. The percentage attributable to theIndustrial Technology business sector rose to 7 percent,from 6 percent in the previous year. The percentage attributable to the Consumer Goods business sector fell to 15 percent, from 16 percent in the previous year. At 6 percent, theshare of Energy and Building Technology is slightly above thelevel of the previous year.

i­ntensity of upfront investments in areas of future importance, and the impact of production startups. On a business-sector level, EBIT margin developed encouragingly inIndustrial Technology and Energy and Building Technology.
But also the Mobility business sector was able to significantly increase its EBIT margin year on year. With the exception of Consumer Goods, all business sectors managed toreach their forecast EBIT margin from operations.

On balance, we disclose a negative financial result of 527 million euros in 2023, which is an improvement from the previous year’s negative balance of 561 million euros. Higher­income from securities, mainly investment funds, is a major
factor here. Running counter to this, there was a fall in interest result and in the balance resulting from currency effects,
including foreign currency derivatives. Against this backdrop, profit before tax came to 4.0 billion euros, comparedwith 2.9 billion euros in the previous year. Pre-tax profit rose
to 4.3 percent, up from 3.3 percent in the previous year. The
result after tax amounts to 2.6 billion euros, compared with
1.8 billion euros the previous year.

In the Mobility business sector, we disclose EBIT of 2.4 billion euros for 2023, compared with EBIT of 1.7 billion euros in
the previous year. EBIT from operations comes to 2.5 billion euros, compared with the previous year’s figure of
1.8 billion euros. This results in an EBIT margin from operations of 4.4 percent, compared with 3.4 percent the previous
year. The increase is therefore in the lower half of our forecast corridor for a significant improvement in margin. Restructuring cost fell significantly year on year. The pressure
on result remains very high. The main reasons for this are theheavy upfront investments in projects of future importance,
production startups, and the increased cost of primary­products.

At 28.4 percent, our in-house key performance indicatorof average NWC as a percentage of Bosch Group sales revenue, although slightly lower than the previous year’s com­parable figure of 28.8 percent, did not fall as sharply as­expected. This average figure is impacted by the fact that
improvements in absolute NWC relate above all to the second half of the year. The year-on-year comparison is basedon the comparable internal figure for the previous year.
Result situation by business sector
The result situation also varies by business sector, even if
they all disclose a significantly positive result in relation toboth EBIT and EBIT from operations. The main factors are
the varying degrees of sales revenue growth, the varying

Despite the weak market and the negative impact of the­integration of HydraForce and Elmo Motion Control, the­Industrial Technology business sector achieved a result of
672 million euros, meaning it was roughly able to maintainthe previous year’s level (683 million euros). That is equivalent to an EBIT margin of 9.1 percent (previous year 9.8 percent), and significantly exceeds our forecast margin of 8 percent. The business sector also benefited from intensive
work on cost and structures, including the work done in previous years.
EBIT in the Consumer Goods business sector amounted
to 683 million euros (previous year: 753 million euros). At

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G 14

EBIT by business sector
Bosch Group, 2022–2023
in millions of euros

2,380
1,688
683 672753 683

419

694

74
–69

2022

2023

Mobility

2022

2023

Industrial Technology

2022

2023

Consumer Goods

896 million euros, EBIT from operations was also less thanthe previous year’s 970 million euros. This means that the
EBIT margin from operations is on a par with the previous
year at 4.5 percent. We were therefore unable to achieve theforecast slight improvement in margin. This was above all
due to the sharp drop in demand. The business sector was
once again burdened by the winding down of most of its­Russia business. Furthermore, there are burdens from currency effects as described by IAS 29. The Energy and Building Technology business sector sharply increased its EBIT to694 million euros, compared with 419 million euros the previous year. Margin came to 9.0 percent, compared with
6.0 percent in 2022. That means we exceeded our forecast ofa significant improvement in result. The Home Comfort division performed particularly well.
The main reason for the slight overall decrease in the BoschGroup’s average NWC as a percentage of sales revenue was

2022

2023

Energy and Building
Technology

2022

2023

Other

the development in the Mobility business sector. As expected, NWC improved significantly to 27.6 percent, compared to the previous year’s figure of 28.8 percent. The otherthree business sectors were unable to achieve their forecast,even though considerable progress was made in the second
half of the year and the absolute value of NWC at the end of
the year was in some cases significantly lower than in theprevious year.
In the Industrial Technology business sector, average NWC
rose to 33.8 percent, compared to the previous year’s figureof 32.3 percent. In the Consumer Goods business sector, average NWC rose to 29.6 percent, compared with 29.1 percent
the previous year. In Energy and Building Technology, average
NWC increased to 21.5 percent, compared to 20.6 percent
the previous year.

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G 15

Balance-sheet structure
Bosch Group, 2022–2023
in millions of euros and as a percentage of balance-sheet total

100,247

51,71347.7%

47,013
46.9%

2022

154

Balance-sheet total

Current assets

56,46352.1%

53,11953.0%
115

108,330

Non-current assets

2023

Disclosed separately
pursuant to IFRS 51

ASSETS

100,247

108,330

Balance-sheet total

29,241
29.2%

31,61929.2%

24,21524.2%
64

28,67326.5%
144

Non-current assets

46,72746.6%

47,89444.2%

Equity2022

Current assets

Disclosed separately
pursuant to IFRS 52

2023

EQUITY AND LIABILITIES

1. Assets held for sale.
2. Liabilities directly associated with assets held for sale.

Net assets and financial position
Equity ratio and financial statement
The Bosch Group balance-sheet total as of the December 31,
2023, reporting date stood at 108.3 billion euros, exceeding
the previous year’s level of 100.2 billion euros. Compared tothe previous year, the equity ratio fell 2.4 percentage points
to 44.2 percent. The main reasons for the increase in the balance-sheet total are the higher liquidity as per the statementof financial position and higher property, plant, and equipment on the assets side as well as the higher non-current­financial liabilities on the liabilities side.
On the assets side, our liquidity as reported in the statementof financial position rose to 26.7 billion euros as of the reporting date, compared with the previous year’s 21.1 billion

euros. Apart from cash and cash equivalents, liquidity as per
the statement of financial position includes marketable securities and bank balances with a term of more than 90 days.
This was mainly due to borrowing on the financial markets
and a positive free cash flow.
The liabilities side saw changes mainly due to the issue of euro
bonds and U.S. private placements in U.S. dollars. The­fi­nan­cing structure is sound. The net financial position (defined as balance-sheet liquidity minus financial liabilities
and provisions for pensions and similar obligations) is­significantly positive. At 5.3 billion euros, it is virtually unchanged from its previous-­year level. Due to the applicationof IFRS 5, assets held for sale and the liabilities associatedwith them are disclosed separately.

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With a long-term rating of A (with a “stable” outlook) from thecredit rating agencies Standard & Poor’s and Fitch, Robert
Bosch GmbH has good ratings. The financial liabilities of
the Bosch Group include schuldschein loans and registeredbonds with a nominal value of 3.2 billion euros and bearing
interest between 1.028 percent and 4.893 percent. There arealso bonds with a nominal value of 6.5 billion euros andbearing interest between 1.75 percent and 4.375 percent,and U.S. private placements with a nominal value of 1.2 billion U.S. dollars and bearing interest between 6.19 percent
and 6.42 percent. The average interest rate for the bonds,
schuldschein loans, and registered bonds has risen to
3.358 percent from the previous year’s rate of 2.353 percent.
The average interest rate for the U.S. private placements is6.313 percent. The average residual term to maturity of theschuldschein loans and registered bonds is 5.00 years,­compared with 5.27 years the previous year. The bonds’ average residual term to maturity is 9.59 years, compared with
5.96 years the previous year. The average residual term tomaturity of the U.S. private placements is 8.38 years.
There is a syndicated credit line with an ESG component totaling 5 billion euros, the term of which was extended by one
year to 2026. In addition, there are bilateral U.S. loan facilities with a volume of 950 million U.S. dollars. These facilities
have not been used. In 2023, new bonds totaling 4.5 billion
euros were issued, as were U.S. private placements totaling
1.2 billion U.S. dollars. Furthermore, we repaid 500 million
euros of a schuldschein loan. In the reporting year, we issued
up to 650 million U.S. dollars under our revolving 2.0 billion
U.S. dollar commercial paper program. In addition, we tookout a syndicated loan facility in the U.S. totaling 1.2 billion
U.S. dollars. The loan was repaid early from the proceeds of
the U.S. private placement.

Capital expenditure
In 2023, as a result of many projects of future importance,
capital expenditure on property, plant, and equipment rose
to 5.5 billion euros from 4.9 billion euros the previous year.
The capex ratio is 6.0 percent of sales revenue, comparedwith 5.6 percent in the previous year. Capital expenditurethus reached 161 percent of depreciation, compared with
141 percent in the previous year. As of the reporting date,­existing investment commitments resulting from orders already placed total 1.5 billion euros, following a previous-year
figure of 1.3 billion euros. Thanks to our comfortable liquidity
position, we have ample financial resources at our disposal.
We invested 620 million euros in intangible a­ ssets, compared with 647 million euros the previous year. These relate
in almost equal parts to acquired software and capitalized
development projects in the Mobility business sector.
By business sector, the lion’s share of capital expenditure –3.8 billion euros, following 3.3 billion euros the previous
year – once again went to Mobility. Among other things, thefocus is on increasing investment in the areas of future importance: electromobility, fuel cells, and power electronics.
In addition, there are investments in growth areas such as
braking control systems, semiconductors and sensors, anddriver assistance systems, as well as in our long-establishedbusiness activities. Capital expenditure in Industrial Technology rose to 410 million euros, compared with 316 million euros the previous year. The focus of investment at
Bosch Rexroth was on the construction of a new mobile-­
hydraulics plant in Querétaro, Mexico, the equipping of the
new plant in Brnik, Slovenia, and logistics buildings in Lohr,
Germany.

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G 16

G 17

Capital expenditure

Capital expenditure

Bosch Group, 2019–2023

Bosch Group, 2019–2023

in millions of euros

as a percentage of sales revenue

4,989

4,896
3,312

2019

2020

5,499

6.4
4.6

3,949

2021

2022

2023

In the Consumer Goods business sector, capital expenditure
was 839 million euros, compared with 845 million euros in
the previous year. Major projects at BSH Hausgeräte are newfactories: one in Monterrey, Mexico, for refrigerators andone in Madinat al-Aschir min Ramadan, near Cairo, Egypt,
for stoves to support growth in emerging markets. Further
investments relate to the location in Dillingen, Germany,
where dishwashers are made. In addition, factories inNazarje, Slovenia, and La Cartuja, Spain, were rebuilt following flooding in summer 2023. Capital expenditure in Power
Tools focused on the expansion of manufacturing in the Accessories business unit at locations in the U.S., Italy, and Poland, as well as on battery production in Miskolc, Hungary.
In Energy and Building Technology, capital expenditure cameto approximately 180 million euros, compared with 123 million euros the previous year. In Home Comfort, the focus wason expanding the heat-pump business with construction of a

2019

2020

5.0

2021

5.6

2022

6.0

2023

new plant in Dobromierz, Poland, and the extension of ourexisting factory and of warehouse space in Tranås, Sweden.
In addition, there are other investments that are not allocated to the business sectors, such as the reorganization of
the Paris location in France and the renovation of groupheadquarters in Gerlingen, Germany.
From a regional viewpoint, we invested 3.5 billion euros in
our European locations, compared with 3.1 billion euros theprevious year. Germany accounted for 2.1 billion euros of
this, compared with 1.6 billion euros the previous year. We
invested 1.3 billion euros in Asia Pacific, as in the previous
year, and 767 million euros in the Americas, compared with
519 million euros in the previous year.

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T 02

Bosch Group, statement of cash flows
in millions of euros

Liquidity at the beginning of the year (Jan. 1)

2023

2022

6,459

6,196

Cash flow from operating activities

8,430

1,859

Cash flow from investing activities–11,211–2,336

Cash flow from financing activities

3,961

701

Other

–196

39

Liquidity at the end of the year (Dec. 31)

7,443

6,459

Liquidity
The Bosch Group is financially strong. Liquidity at year-end
as per the consolidated statement of cash flows (cash andcash equivalents) stood at 7.4 billion euros, compared with
6.5 billion euros the previous year. Cash flow from operating
activities rose to 8.4 billion euros or 9.2 percent of sales revenue in 2023; the previous-year figure was 2.1 percent. The
main ­reasons for the improvement are higher EBIT and thesig­nificantly reduced commitments in current assets, in particular as a result of inventory reduction and the increase inliabilities.
Cash flows from investing activities amounted to 11.2 billion
euros, compared to the previous-year figure of 2.3 billion­euros. The main reasons for the sharp increase are the outflows from investments – higher than in the previous year – incurrent securities and bank deposits with terms of morethan 90 days in order to favorably invest the present highlevel of liquidity. Investing activities also increased, mainly
due to higher participating interests, in particular the acquisition of HydraForce, Paladin Technologies, PalAmerican
Technologies, and TSI Semiconductors, and capital expenditure on property, plant, and equipment.

Cash flows from financing activities, including repayments oflease liabilities, disclosed an inflow of 4.0 billion euros in2023, as opposed to an inflow of just 0.7 billion euros theprevious year. The main financing measures in 2023 were theissue of bonds totaling 4.5 billion euros and the U.S. private
placements of 1.2 billion U.S. dollars.
For 2023, we disclose a positive free cash flow of 2.2 billion
euros, compared with the negative sum of 4.0 billion euros in
the previous year. Free cash flow is calculated as the sum of
cash flows from operating activities, cash flows from investing activities (without participating interests and other financial investments), and the repayment of lease liabilities. The
main reasons for the significant improvement in free cash
flow were the significant improvements in EBIT and NWC.
This was offset by a further increase in capital expenditure.

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Non-financial indicators

Headcount

CO 2 emissions
Once again in 2023, the Bosch Group with its more than 400
locations worldwide was carbon neutral overall (scopes 1
and 2). In 2023, residual emissions of roughly 581,000 tonsof CO 2 were offset through carbon credits to achieve this.
Compared with the previous year’s level, this is a decrease ofsome 136,000 metric tons of CO 2, or 19 percent. Above all,this decrease was achieved by further switching from gray togreen electricity. The calculation of emissions is based on
the standards of the International Energy Agency (IEA , Emission Factors 2022) and the Intergovernmental Panel on­Climate Change (IPCC).

The total number of Bosch Group associates rose to 429,416
at the end of 2023, compared with 421,338 at the end of2022. Headcount thus increased at a slower rate than sales
revenue. The number of Bosch associates thus increased by
8,078. Changes in the consolidated group primarily affected
the I­ndustrial Technology business sector, due to acquiring
1,824 associates at HydraForce. The acquisition of Paladin
Technologies and PalAmerican added 1,577 associates tothe Energy and Building Technology business sector and theacquisition of TSI Semiconductors added 220 associates tothe Mobility business sector.

In total, the Bosch Group’s locations consumed 7,537 gigawatt-hours (GWh) of energy in 2023 (previous year: 7,696
GWh). Bosch requires energy primarily in the form of power
for manufacturing plant and machinery, and in the form of
thermal energy to heat and air-condition buildings and to operate facilities such as foundry furnaces.
Occupational safety
The accident rate was around 1.49 accidents per million
hours worked. Unfortunately, there were two fatal accidents
in 2023 in which workers employed by third-party companies
lost their lives. The total number of workplace accidents in
2023 was 1,073, compared with 1,153 in 2022.

G 18

Bosch Group headcount, 2023
by business sector
as of Dec. 31, 2023

36,402 (8%)
Energy and
Building
Technology
40,799 (10%)
Otheractivities1

35,735 (8%)
Industrial Technology

429,416

79,376 (19%)
Consumer Goods

1. Corporate functions and research.

237,104 (55%)
Mobility

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The workforce in the Mobility business sector rose to 237,104,
compared with 233,077 at the end of 2022. The number ofassociates in the Industrial Technology business sector increased to 35,735, compared with 34,143 at the end of 2022.
In the Consumer Goods business sector, the number of associates fell to 79,376, compared with 83,006 at the end of2022. The number of associates in the Energy and Building
Technology business sector rose to 36,402, compared with
34,437 at the end of the previous year. A total of 40,799 associates are employed in other activities, compared with
36,675 in the previous year.
The number of associates in research and development
across all units worldwide grew again by 4,541 to stand at
90,084 at the end of the year. The expansion of the global
research and development network affects almost all regions, and Asia Pacific (including other countries and Africa)
most strongly. Regions outside Germany account for 63 percent of associates in research and development, with Asia
Pacific accounting for 42 percent. The number of associates
worldwide in the corporate sector for research and advanceengineering (“Other activities”) at year-end was 1,627, compared with the previous-year figure of 1,536.
Headcount increased in all regions, but at different rates. As
a result, the percentage distribution of Bosch Group asso­
ciates by region has changed marginally, with the absolute
number of associates rising in all regions.

G 19

Bosch Group headcount, 2023
by region
as of Dec. 31, 2023

53,587 (13%)
Americas134,188 (31%)
Germany
121,129 (28%)
Asia Pacific2

429,416

120,512 (28%)
Europe1

1. Excluding Germany.
2. Including other countries and Africa.

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OutlookThe 2024 fiscal year is likely to be challenging as well. High prices will continue to ­dampen
demand for consumer goods. In addition, the significant increases in bank rates in 2022
and 2023 are likely to continue to brake economic momentum. On top of this, there is
uncertainty as a result of geopolitical tension, also in the Middle East. The war in Ukraine
also continues. Important elections will also be held in a number of countries. Depending on their outcome, the geopolitical landscape may change. Nonetheless, we aim togrow sales revenue by between 5 and 7 percent. Additional burdens resulting from thefar-­reaching changes in diverse business fields and the adjustment measures connectedto them, combined with considerable upfront investments in areas of future importance,
mean that we assume an EBIT margin from operations roughly on a par with 2023. We also
aim to achieve an FCF-to-sales revenue ratio of at least 1 percent. Our reorganization
measures in particular will not produce their full effect until 2025. In addition, we will
work intensively to reduce our costs in order to strengthen competitiveness. Moreover,
we will drive forward the implementation of our growth ­strategy. For this purpose, we want
to strengthen our portfolio through acquisitions and partnerships.

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G 20

Economic growth by region, 2020–20241, 2
Real GDP, percentage change on previous year

6.3

6.4
3.0

2.7

2.9

2.3

6.6

6.0

3.5

2.4
0.9

2.3

0.9

4.2

3.5

1.8

–0.7
–2.8

–3.2
–5.5

2020

2021

2022

World

2023

2024

2020

2021

2022

2023

2024

Europe

2020

2021

2022

2023

Americas

2024

2020

2021

2022

2023

2024

Asia Pacific3

1. Some previous-year figures changed from the 2022 annual report following an audit.
2. Forecast figures for 2024.
3. Including other countries.

Macroeconomic and sector-specificenvironment
Our plans are based on the assumption that global economic
growth will remain weak in 2024 as well. For 2024, we forecast that global GDP will grow by between 2 and 2½ percent.
For Europe, we expect developments to be weak. We see theprospects in the Americas as slightly more favorable. However, the consequences of the more restrictive monetary
policy in the United States will likely dampen growth forthe time being. Asia is once again expected to disclose thestrong­est growth. However, we expect that China will growat a slower pace than in the previous year. The weak real-­
estate market is likely to brake developments there. The various geopolitical tensions are a further reason for the lowkey outlook for the global economy. Moreover, the conflicts
in the Middle East are again making global supply chains
vulnerable, especially shipping routes. There is a risk of delayed d­ eliveries and rising logistics costs, which will thenmake themselves felt in prices. Rising wages in North America and Europe may lead to further price increases.
Our assumption for 2024 is that the global inflation rate will
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cent in 2023 and 7.9 percent in 2022. However, this meansthat we still expect inflation to be higher than the averageover the past decade. We therefore expect central banks to
be cautious and unlikely to loosen the monetary-policy reinsto any major extent. The persistence of comparatively highinterest rates is likely to hold back consumption and construction investment in 2024 as well.
For the Americas, we expect that GDP will rise by 1½ to 2 percent year on year in 2024. On the basis of current data, ourforecast for Europe is a just under 1 percent rise in economic
output. In this context, we expect the European Union to
grow by ¾ percent year on year. For Germany, we currently
expect stagnation. Growth rates in Asia Pacific (including
other countries) will likely weaken year on year, to 3½ percent. Here, we expect growth in China to slow to 4 percent.
As their point of reference, our forecasts are based on thedata sources of Feri AG and the International Monetary Fund,as well as on our own assessments.
For the automotive sector, our most important market, we so
far expect to see a similar level of production in 2024 as in
2023 (including heavy trucks), at around 93 million vehicles.
Our forecast process is based on the third-party forecasts of
S&P Global Mobility and Bosch in-house marketing analyses
in the regions and at headquarters.

Bosch Group and business sectors
Sales revenue forecast
In 2024, we expect that Bosch Group sales revenue will rise
within a range of 5 to 7 percent. As in previous years, we do
not disclose exchange-rate effects separately in our forecast. At between 7 and 9 percent, we expect the strongest
growth in our Mobility business sector. By contrast, we expect to see slight growth of up to 1 percent in the Industrial
Technology business sector. In the Consumer Goods business sector, our planning foresees growth of between 3 and5 percent, following the decline of previous years. The forecast moderate growth of between 2 and 4 percent in Energy
and Building Technology is the result of subdued expectations in Home Comfort, as the European heating market is
expected to significantly lose momentum.

Result forecast
Given the difficult economic environment and considerable
upfront investments and adjustment measures, the BoschGroup’s EBIT margin from operations is expected to beroughly on a par with 2023. In both the Mobility and Consumer Goods business sectors, we expect a significant improvement in EBIT margin from operations. In the Industrial
Technology business sector, the EBIT margin is likely to besignificantly lower than in the previous year, and in the­Energy and Building Technology business sector considerably so. The forecast for the Energy and Building Technology
business sector does not take the Building Technologies­division’s planned divestment of its product business into
account.

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Expectation for NWC and FCF
For the Bosch Group, we expect an FCF-to-sales revenue­ratio of at least 1 percent. For all business sectors, we expect average NWC to fall significantly from previous-year­levels. For NWC, the year-on-year comparisons are basedon the comparable internal figure for the previous year.

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Report on opportunities and risks
Opportunities
On the whole, we see good growth opportunities for the
Bosch Group. For us as a supplier of technology, additionalsales opportunities are opening up through changes in markets and technology – especially as a result of electrification,
electronification, automation, and digitalization. There is also
the growing economic and social focus on sustainability, andthe growth potential of emerging regions such as ASEAN and
Africa. For the sake of greater clarity, the “Outlook for the
Bosch Group” section describes in detail the opportunities
and specific strategies we derive from them for the company
as a whole and the business sectors.

Risk report
Risk management system
In the Bosch Group, risk management encompasses the entire company, including all essential operations, functional
areas, divisions, and business sectors. It is thus a core responsibility for all managers on every level of the BoschGroup. As far as possible, risks are identified and managed
where they arise: in other words, above all in the divisions
and their regional subsidiaries. The latter organizational
units are also primarily responsible for introducing measures to reduce or control risks.
While the corporate departments for compliance, risk management, and internal control system exercise a governancefunction for their respective systems, specialist departments such as the legal services and tax departments support, govern, and monitor directives and focal points. Inter-

nal auditing also helps assess the appropriateness andeffectiveness of these tasks, and where necessary submits
proposals for the introduction of appropriate improvements
to the board of management and the heads of the specialist
departments.
The Bosch Group risk management system takes its leadfrom the ISO 31000, COSO III (ERM), and IDW PS 340 standards. It includes the systematic recording and follow-up of
relevant risks and, where necessary, the identification andfollow-up of measures to deal with those risks. In this context, the corporate coordinating office for the risk management system is responsible for continuously improving thesystem.
A corporate risk management directive sets out principles
and responsibilities. It was revised in 2023. Reporting to thesupervisory board’s newly established audit committee has
also been made a fixed component of this directive. In addition, it now features a “disruption radar” for the early detection of risks that lie outside the planning period. “Disruption”
refers to groundbreaking developments that profoundlychange customer expectations and markets through new
functions, technological innovations, and new businessmodels, and in this way may significantly affect the BoschGroup’s business. These disruptions are clustered according to the PESTEL model (political, economic, social, technological, environmental, legal) and classified in threephases: “identify and observe,” “evaluate and test,” and “implement initiatives.” In addition, a cross-functional risk committee is tasked with identifying significant risk areas acrossthe operating units and pinpointing potentially disruptive
technological and strategic risks.

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Overall risk assessment
We are not currently aware of any risks, beyond those listed
in this report, which could materially affect the net assets,financial position, and results of operations of the BoschGroup in 2024. From a current perspective, there are no risk
exposures that could jeopardize the Bosch Group’s continued existence as a going concern.

Risk assessment on the basis of the risk
management system
Fundamental remarks
Risk assessment on the basis of the risk management system considers a time horizon up to 2027. The risk situation
has not changed in principle, even though there have been
methodological changes in the way risks are classified. The
number of reported risks (at year-end 2023) has fallen further compared with previous years. The financial risk (“monetary risk”) is calculated from a risk matrix of probability ofoccurrence and potential loss. It thus gives an indication of
how high any likely losses are. This risk has fallen 31 percent
year on year. While the likelihood of occurrence has remained the same, the potential loss has dropped significantly.
Here, the potential scale of loss is based on a three-point
estimate for the worst-case, realistic, and best-case scenarios, in a ratio of 1:4:1. Risk reporting uses the residual method.
Risks with a probability of occurrence of at least 50 percent
are still considered in our annual or interim sales revenue
and income forecasts as a matter of principle. The assessment is based on our current planning.

As a supplement to the procedure followed in previous
years, we have formed a number of thematic focal points under which individual risks are clustered. These focal points
take their lead from the size of the aggregate financial risk.
Seven of these thematic focal points involve a financial risk inexcess of 700 million euros.
The most significant focal point is changes in the market andcompetitive environment. As a result of greater volatility, it is
becoming increasingly challenging to work existing markets,
as well as to access new ones, and this is making the competitive situation as a whole tougher. Another focal point
is macroeconomic developments, from which risks arise
such as exchange-rate fluctuations, persistent inflation, andchanges in interest rates. These are described in the section“Hedging policy and financial risks.” One further risk cluster
concerns the Bosch Group’s global supply chains. Above all,the individual risks include the limited availability of electronic components (especially semiconductors), despite theimprovements in the past fiscal year, the insolvency of critical suppliers, and loss events such as natural disasters at
critical suppliers’ or at our own locations, including the possibility of far-reaching production stoppages. In the “projects
and customers” thematic area, we consider the risks relating
to individual customers as well as delays in fundamental
technological developments. There is also the thematic focal
point of risks arising from legislation and regulations. Thesemay lead to restrictions on competition or increased costs
as a result of additional measures. This cluster also includes
risks in the area of data protection. Geo­political risks are afurther category. This includes risks such as U.S.-Chinese

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G 21

Risk matrix of potential loss
X > 75

Probabilityof occurrence(percentage
figures)

50 < X ≤ 75
20 < X ≤ 50
5 < X ≤ 20X≤5X≤55 < X ≤ 25

25 < X ≤ 50

50 < X ≤ 100

100 < X ≤ 250

250 < X

Potential loss (in millions of euros)trade, the war in Ukraine, and the conflict in the Middle East.
Cybersecurity remains one of the seven most important risk
categories. It includes risks with respect to core IT processes
and connected products, and the danger of business processes being interrupted.
The 250-million-euro threshold for individual financial risks
was exceeded by the risks of interrupted business processes
in the cybersecurity category and the availability of electronic components, particularly semiconductors.
With respect to the thematic focal points and major individual risks, we are keeping a close watch on developments andare designing scenario-based measures. As concerns thechanges in the market and competitive environment, we areusing our growth strategy to strengthen our position in existing areas, to open up new areas of business, and to extend
our global market footprint. On the subject of global supply
chains, we are analyzing the structure of our procurement

sources and monitoring the development of critical suppliers; this applies in greater measure to electronic components. Our response to risks relating to projects and cus­
tomers is the close monitoring of milestones and greater
consideration of superordinate levels. To reduce the risks
arising from legislation and regulations, we closely monitor
political developments in order to be able to adapt tochanged framework conditions at an early stage. With respect to geopolitical risks, it is part of our strategy to balance our business internationally, and to grow more strongly
in markets that have so far been under-represented.
We take comprehensive measures with respect to the biggest individual risk – interruption of business processes as aresult of cyberattacks. Bosch’s company-wide cybersecurity
organization identifies and evaluates potential risks in connection with cyberthreats and develops appropriate measures to minimize them. Through regular security audits andchecks, weaknesses are identified and remedied in order to

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minimize the risk of security breaches. Here, the cybersecurity organization works closely with the various company departments in order to ensure that security considerations areintegrated right from the start of the development process.
In addition, we collaborate with third-party partners and­authorities in order to exchange information about current
threats and to adopt best practices.

Hedging policy and financial risks

Risks by business sector
Of the business sectors, Mobility has the highest financial
risk. The biggest risk here is the availability of electronic
components, especially semiconductors. We take extensive
measures to keep any impact on customers to a minimum –for example, by including extra procurement sources. The
Consumer Goods business sector is currently faced above
all with risks resulting from changes in its competitive en­
vironment. The measures it takes include strengthening
competitiveness by improving cost efficiency and revising
its product strategy.

Hedging policy principles and financial derivatives
The business operations of the Bosch Group are impacted inparticular by fluctuations in exchange and interest rates andadditionally, on the procurement side, by commodity pricerisks. Business policy aims to limit these risks by means ofhedging. Hedging transactions are managed at corporate
level. Internal regulations and guidelines set down a mandatory framework and define the responsibilities related to­investment and hedging transactions. According to theseregulations, derivatives may only be used in connection withbusiness operations, financial investments, or financing
transactions; speculative transactions are not allowed.
Trader limits are an important component of the guidelines.
Hedges are generally concluded via banks with good credit
ratings from leading agencies and taking into account current risk assessments in financial markets. The creditworthiness of the Bosch Group’s banking partners is closely monitored, and the risk mitigated by counterparty limits.

In proportion to their share of sales revenue, the financial
risk of the Industrial Technology and Energy and Building
Technology business sectors is lower than in the rest of
the Bosch Group. In Industrial Technology, one material risk
concerns the impact of the bankruptcy of critical suppliers.
To minimize this risk, the situation at critical suppliers ismonitored closely, in addition to adjustments to procurement strategy. In Energy and Building Technology, the highest risks result from uncertain regulatory policies for theheating market in the United Kingdom and Germany. Our
strategy here is to supply technologies that are appropriate
to the market and that satisfy requirements.

To reduce the credit risk of the bank, fixed-term deposits arein some cases also entered into as secured deposits in triparty repo transactions. In such cases, the bank provides
predefined securities as collateral. The transaction settlement, as well as the management and valuation of the securities, are managed by a clearing center. The decision-making
bodies are committees for commodities, foreign currencies,
and investments that meet at regular intervals. There is afunctional segregation of trading, settlement, and control
functions. Key tasks of the control function above all include
determining risks and continuously checking compliancewith instructions and guidelines.

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Each month, the risk of financial investments is calculatedusing the value-at-risk concept. Risks relating to financial investments are assessed through ad hoc studies of asset-­
allocation strategy, and limited by diversifying investment.
In foreign-exchange and investment committee meetings,
the board of management member responsible is informed
monthly about risk analyses and the results of investments
and hedges.
Currency risks
Currency risks from cash flows in business operations are
mitigated by the central management of invoicing and purchasing currencies. The currency risk is determined on thebasis of the worldwide consolidated cash flows in the respective currencies. Based on annual forecasts, estimatedinflows and outflows in the various currencies for the reporting period are aggregated in a foreign exchange balanceplan. The resulting net position is then used for the central
management of currency exposures. The biggest net currency positions of the planned cash flow are in Chinese renminbi, U.S. dollar, British pound, and Mexican peso.
Hedging largely takes the form of forward exchange contracts; currency options and currency swaps are used to alesser extent. These transactions, which are only enteredinto with banks, are subject to minimum requirements withrespect to nature and scope. The risk attaching to material
foreign currency items from operations is determined using
the cash-flow-at-risk concept. These risk analyses and thehedge result are determined monthly and also presented tothe management board member responsible in the foreign-­
exchange and investment committee meetings.

A sensitivity analysis in the notes to the financial statementsshows the effect of a 10 percent change in the euro exchange
rate on the profit before tax. The analysis includes the major
currencies. In the case of the Chinese renminbi, the Hungarian forint, the Japanese yen, and the Mexican peso, the effect of such a change on profit before tax would in each caserun into a low eight-figure sum. These effects with respect to
the Czech crown and British pound would be a mid-rangeeight-figure sum. The U.S. dollar would be the only currency
where the effect would be in the high eight-figure range. For
the most part, the effects on earnings shown here result
both from foreign-currency positions relating to operations
and from loans within the Bosch Group if, by way of an exception, the loan was granted in a currency other than the local
currency of the borrower – for example, because it can be
repaid from expected cash flows in this currency. The currency risk presented in financial reporting deviates from thepurely economic currency risk, as the latter is determinedsolely on the basis of the planned cash flow from operating
activities.
Interest-rate risks
Risks from changes in interest rates on investments and borrowings are limited by select use of derivative financial instruments. These are mainly interest rate swaps and interest
rate futures. In a sensitivity analysis, the assets and liabilities subject to floating interest rates, fixed-rate securities,
pension and money-market funds, and interest derivatives
were considered. The effect of a 100-basis-point change inthe market interest rate (based on the interest rate on thereporting date) on the profit before tax would be a mid-rangeeight-figure sum.

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Other price risks
Derivatives are used to limit the risks of fluctuating commodity prices. The analysis of the commodity-price risk took into
account commodity-price derivatives measured as of the reporting date. The effect on the profit before tax of a change
in the forward-rate level of 10 percent (starting from forward
rate on the reporting date) would be a mid-range eight-figuresum. As of the reporting date, the Bosch Group is not awarethat it is exposed to any significant other price risks.
Share-price risks
The Bosch Group holds stock as a part of its financial investments used to cover non-current pension obligations. It also
holds investments in quoted companies. The analysis of theshare-price takes into account share portfolios, quoted investments, equity funds, and share derivatives. In the 2023
financial statements, these had a carrying amount of 5,028
million euros. A change in the share price of 10 percent (taking the share price on the reporting date as the baseline)
would have an effect on the financial instruments recognizedin equity of roughly 380 million euros. For the profit before
tax, the effect would be 130 million euros. To reduce shareprice risks, a broadly diversified investment strategy is pursued across various regions and sectors.

Credit risks
The credit risk from customer receivables is recorded andmonitored on an ongoing basis. Responsibilities and duties
relating to credit risks are governed by an internal directive.
This mainly concerns the stipulation of payment terms, fixingof credit limits, release of deliveries, and receivables monitoring.
The credit risk for trade receivables is reduced by processing
invoices with the corresponding credit notes in a single work
step; the net amount is reported in the statement of financial
position. This procedure is only performed if there is a legal
right to offset and the customer intends to settle the receivable on a net basis or to settle the receivable by offsetting
against the corresponding liability. Moreover, trade receivables are partly secured by retention of title. For some tradereceivables, collateral has been additionally provided in theform of guarantees, property liens, and mortgages. Due tothe measures that have been taken, we do not see any material credit risk.
Liquidity risks
Changes in financial assets and liabilities are monitored on
an ongoing basis. Internal directives regulate the duties andresponsibilities of liquidity management and planning. The
liquidity risk is reduced by processing invoices for trade­payables with the corresponding credit notes received in a­single work step. This procedure is only performed if there isa legal right to offset and there is an intention to settle theliability based on the net amount or to settle the liability byoffsetting against the corresponding receivable. Moreover,collateral is provided in the form of guarantees.

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Thanks to our comfortable liquidity position, presented
above in the section on net assets and financial position, we
have ample financial resources at our disposal. We therefore
evaluate the liquidity risk as low.

Risks pursuant to the compliance­management system
In 2023, we did not register any unusual corruption-relatedrisks within the organization. As before, the general corruption-related risks concern the handling of special payments
to our customers and business partners whose risk profile ishigh. Also as before, there are even more and even tighter
national and international laws and official requirementswith respect to effective compliance, data protection, andinformation security management systems. They relate above
all to current technological developments such as artificial
intelligence. The focus on data privacy, whistleblower protection, and more stringent prosecution of companies andnatural persons remains.
The corporate compliance organization was further modified in 2023. For example, we have reorganized our internal
investigation processes in Germany. We are also continuing
to systematically digitalize our core compliance processes.
To minimize risk, we have further extended our checks. In
data privacy and information security, we have above alladapted our regulations and processes to new local require-ments, such as the implementation of new data laws in
China. We have also started to implement a revised training
model in order to address subjects such as cybersecurity
and artificial intelligence. We have continued to implement
the European and local directives relating to whistleblower
systems and protection, including the setup of new in-housereporting offices. In addition, the company-wide sensitization campaign has been continued. It aims to increase awareness and use of the whistleblower system and to reinforce
trust in internal investigations. Moreover, we have extended
our training program and revised our training courses.

Foreign-trade risks
Geopolitical developments such as the war in Ukraine andthe tense trade relations between the U.S. and China areleading internationally to new and tighter rules that restrict
global free trade. They include export controls and sanctions regulations in many countries. These are backed up by
sanctions of their own and past or future violations may leadto penalties, claims for damages, and damage to reputation.
The challenges here are the abruptness with which new
sanctions and the related tools are imposed, the extensionof restrictions to include various business processes, andthe steadily increasing general risk of evasion resulting fromsanctions. With respect to the resulting economic, legal, andreputational risks, Bosch is continuously developing its
export-­control organization.

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Additional information

111

Legal risks
With respect to emissions from diesel vehicles, various automakers are being investigated by German and non-German
authorities. In occasional cases, these investigations also
concern Bosch in its capacity as a supplier of engine control
units. With respect to the events concerning various automakers’ diesel vehicle emissions, Bosch is still a defendantin class and individual civil-law actions in a few countries. In
2023, Bosch was able to successfully conclude many proceedings relating to diesel emissions, including several
class actions against Bosch in the United States and theNetherlands. In none of the proceedings concluded does
Bosch acknowledge the validity of the claims brought forward, nor does it concede any liability. The proceedings andactions still pending, as well as possible further ones, stillpose risks. Taken together, however, we now regard them as
more minor than previously. In all these proceedings, Boschis asserting its rights.

Bosch is also engaged in compensation discussions withcustomers in respect of potential civil-law risks associatedwith closed antitrust proceedings. Investigations by the antitrust authorities against Bosch are continuing in certain
countries. The French antitrust authority has completed its
investigations of BSH Hausgeräte in France for a possible­violation of antitrust law and has notified BSH France of theallegations made as part of the ongoing proceedings. As partof a settlement, the authorities and BSH have agreed on thescope of a possible fine. The final decision is expected in thefirst half of 2024.
On the basis of the facts relating to antitrust law and engine
control units that were available when the financial statements were prepared and that the board of management has
assessed, the board of management believes that sufficient
precautions have been taken in the form of provisions for­legal risks. For the various legal risks outlined above, provisions throughout the group amount to 386 million euros.
From the 2023 fiscal year, the board of management is notaware of any further legal risks that could, from a present
perspective, materially impair the company’s net assets,­financial position, or results of operations.

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Additional information

112

Consolidated financial statementsof Robert Bosch GmbHas of December 31, 2023

Annual report 2023

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Additional information

113

114 Consolidated income statement
115 Consolidated statementof comprehensive income

116 Consolidated statementof financial position

118 Consolidated statementof changes in equity

119 Consolidated statementof cash flows

121 Notes to the consolidated financial

statements

121 Principles and methods
121
1 — General information
121
2 — Changes in financial reporting123
3 — Currency translation
124
4 — Accounting policies
124
5 — Assumptions and estimates
126
6 — Consolidation
136 Notes to the income statement
136
7 — Sales revenue
137
8 — Functional costs
138
9 — Other operating income
139
10 — Other operating expenses
139
11 — Financial result
141
12 — Income taxes
146
13 — Personnel expenses and headcount146 Notes to the statement of ­financial position146
14 — Cash and cash equivalents
146
15 — Trade receivables
147
16 — Other current and non-current financial assets
148
17 — Contract assets
148
18 — Other current and non-current assets
149
19 — Inventories
150
20 — Property, plant, and equipment
153
21 — Intangible assets
159
22 — Trade payables
160
23 — Other current and non-current financial liabilities
161
24 — Contract liabilities
162
25 — Other liabilities, other provisions, and ­contingent
liabilities

165
176

26 — Provisions for pensions and similar obligations
27 — Equity

177 Other notes
177
28 — Statement of cash flows
179
29 — Segment reporting184
30 — Additional disclosures on financial instruments
194
31 — Capital and risk management
205
32 — Leases
208
33 — Related party disclosures210
34 — Remuneration of members of the boardof ­management and supervisory board

210

35 — Auditor’s fees

Annual report 2023

Table of contents

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Additional information

114

Consolidated income statement
for the period from January 1 to December 31, 2023
T 03
in millions of euros
Note

2023

2022

Sales revenue

7

91,596

88,201

Cost of sales8– 62,976–59,742

28,62028,459Gross profit
Distribution and administrative cost8

–18,233–17,812

Research and development cost

8

–7,331–7,224

Other operating income

9

3,470

2,634

Other operating expenses

10–2,029–2,582

Result from entities included at equity

6

6

–1

4,503

3,474

Earnings before financial result and taxes (EBIT)
Financial income

11

3,980

3,829

Financial expenses

11–4,507–4,390Financial result

–527

–561

Profit before tax

3,976

2,913

–1,336–1,075

2,640

1,838

Income taxes
Profit after taxof which attributable to non-controlling interestsof which attributable to shareholders of the parent company

12

539

538

2,101

1,300

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115

Consolidated statement of comprehensive income
for the period from January 1 to December 31, 2023
T 04
in millions of euros

Profit after tax
Change in debt instruments, measured at fair value
reclassified to profit or loss
Currency translation of subsidiaries outside the euro zone
reclassified to profit or loss

2023

2022

2,640

1,838

384

–483

189

169

–919

23

26

–289

–535

–460

37

–985

Remeasurement of pension provisions

–237

2,040

Items that will not be reclassified to profit or loss

–200

1,055

Items that may be reclassified to profit or loss
Change in equity instruments, measured at fair value

Other comprehensive income after tax

–735

595

Comprehensive income

1,905

2,433

of which attributable to non-controlling interestsof which attributable to shareholders of the parent company

396

478

1,509

1,955

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116

Consolidated statement of financial position
for the year ended December 31, 2023
T 05

Assetsin millions of euros
Note

12/31/2023

12/31/2022

Cash and cash equivalents

14

7,443

6,459

Trade receivables

15

17,081

16,528Other financial assets

16

7,822

3,803

Contract assets

17

1,176

1,006

379

267

Other assets

18

2,628

2,422

Inventories

19

15,184

16,52851,71347,013Current assets

Income tax receivables

Non-current assets
Financial assets

16

14,53814,021

Contract assets

17

695

567

205

255

Income tax receivables
Property, plant, and equipment

20

24,61623,014Right-of-use assets

32

2,276

2,068

Intangible assets

21

11,055

10,254

Investments measured at equity

6

53

66

Other assets

18

1,008

871

Deferred taxes

12

2,017

2,003

56,463

53,119Assets held for sale
Total assets

6

154

115

108,330

100,247

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Consolidated statement of financial position

117

T 05

Equity and liabilities
in millions of euros
Note

12/31/2023

12/31/2022

Trade payables

22

12,205

10,761

Lease liabilities

32

553

532

Other financial liabilities

23

2,772

2,210

Contract liabilities

24

1,820

1,644

Current liabilities

Income tax liabilities

12

675

738

Other liabilities

25

8,418

8,506

Other provisions

25

5,176

4,850

31,61929,241

Non-current liabilities
Financial liabilities

23

10,3995,457

Lease liabilities

32

1,798

1,635

Contract liabilities

24

836

806

Other liabilities

25

51

45

Pension provisions

26

9,666

9,384

Other provisions

25

5,324

6,316

Deferred taxes

12

599

572

28,67324,215

Liabilities directly associated with assets held for sale

6

144

64

Equity

27
1,200

1,200

Issued capital
Capital reserve

4,557

4,557

Retained earnings

39,77638,483Equity attributable to shareholders of the parent company

45,53344,240Non-controlling interests
Total equity and liabilities

2,361

2,487

47,89446,727

108,330

100,247

Annual report 2023

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118

Consolidated statement of changes in equity
T 06
in millions of euros
Note 27

Retained earnings
Other comprehensive income

1/1/2022

IssuedcapitalCapitalreserve

EarnedprofitTreasury
stock

1,200

4,557

40,056– 62

Profit after tax

Currency
Financialtranslation instruments–1,067

2,247

Group
equityPensions

Total–4,500–3,32042,431

2,367

44,798

1,300

538

1,838

– 60

595

1,300

Other comprehensive income
after tax

Equitynon-­controllinginterests

Equityparentcompany

84–1,470

2,041

655

655

84

–1,4702,041

655

Comprehensive income

1,300

1,955

478

2,433

Dividends

–143

–143

–367

–510

–1

–1

Changes in ownershipinterests in subsidiaries
Other changes
12/31/2022

380
1,200

4,557

Profit after tax

41,592

– 62

–983

–403

21

–382

–2

9

7

374

–2,438–3,04744,2402,487

46,727

2,101

539

2,640

2,101

Other comprehensive income
after tax
Comprehensive income

2,101

Dividends

–162

–772

418

–238

–592

–592

–143

–735

–772

418

–238

–592

1,509

396

1,905

0

–162

–542

–704

Changes in ownershipinterests in subsidiaries

0

Other changes
12/31/2023

–1

111
1,200

4,557

43,642–165– 62–1,755627–2,676

0

–165

–54

20

–34

–3,80445,5332,361

47,894

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119

Consolidated statement of cash flows
T 07
in millions of euros

2023

20222

Earnings before financial result and taxes (EBIT)

4,503

3,474

Depreciation and amortization1

4,961

5,045

Gains/losses on disposal of non-current assets

–125

17

Result from investments measured at equity–61

Note 28

Other expenses and income, not cash effective

11

180

1,050

–2,715

Change in receivables and other assets–855–2,561

Change in liabilities

1,326

1,256

Change in pension provisions and other provisions–1,215–1,532

Interest paid

–411

–240

Interest and dividends received

701

507

Change in inventories

Other financial expenses and income, cash effective

4

–224

Income taxes paid

–1,514–1,349Cash flows from operating activities (A)

8,430

1,859

Acquisition of subsidiaries, net of cash acquired–1,426–1,152

Disposal of subsidiaries, net of cash disposed of

14

–21

Additions to non-current assets– 6,596–5,985

Disposal of non-current assets

506

743

Change in securities and time deposits (term of more than 90 days)–3,7094,079

Cash flows from investing activities (B)–11,211–2,336

1. After offsetting write-ups of EUR 63 million (previous year: EUR 2 million).
2. Some of the previous year’s figures within cash-flows from operating activities have been restated; for further details see note 2 in the notes to the consolidated financial statements.
CONTINUED NEXT PAGE

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Consolidated statement of cash flows

120

T 07
in millions of euros

Note 28

Acquisition of non-controlling interests
Borrowing
Repayment of financial liabilities

2023

20222

–1

–1

7,141

2,042

–1,887–240

Repayment of lease liabilities

–588

–590

Dividends paid

–704

–510

Cash flows from financing activities (C)

3,961

701

Change in liquidity (A+B+C)

1,180

224

Liquidity at the beginning of the period (January 1)

6,459

6,196

Exchange rate-related change in liquidity

–208

23

Change in liquidity due to changes in the consolidated group10

17

Change in liquidity held for sale

2

–1

7,443

6,459

Liquidity at the end of the period (December 31)
2. Some of the previous year’s figures within cash-flows from operating activities have been restated; for further details see note 2 in the notes to the consolidated financial statements.

Annual report 2023

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121

Notes to the consolidated financial statements
Principles and methods
1 — General information
Robert Bosch Gesellschaft mit beschränkter Haftung(­Stuttgart Local Court, HRB 14000; referred to in the follow­
ing as Robert Bosch GmbH) is headquartered in Stuttgart,
Germany. Its business address is Robert-Bosch-Platz 1,­
70839 Gerlingen, Germany. The shareholders of Robert
Bosch GmbH are Robert Bosch Stiftung Gesellschaft mit
beschränkter Haftung, Stuttgart (93.99 percent of theshares), ERBO II Gesellschaft mit beschränkter Haftung,
Stuttgart (5.36 percent of the shares), and Robert Bosch
Industrie­treuhand KG, Stuttgart (0.01 percent of the shares),which performs the entrepreneurial ownership functions.
Robert Bosch GmbH holds treasury stock equivalent to0.64 percent of capital. For further information on the BoschGroup’s business activities, please refer to the group man­agement report.
The consolidated financial statements of Robert BoschGmbH as of December 31, 2023, have been prepared inaccordance with the International Financial Reporting­­Standards (IFRSs) as adopted by the EU at the end of the re­porting period in accordance with Regulation (EC) No. 1606/
2002 of the European Parliament and of the Council on theapplication of international accounting standards. In addi­tion, the provisions of Sec. 315e (3) HGB [Handelsgesetzbuch: German Commercial Code] have been observed. The
previous-­year figures have been determined using the same
principles.
To enhance the clarity and transparency of the consolidated
financial statements, individual line items of the consoli­

dated income statement and the consolidated statement offinancial position have been combined. These items are ex­plained separately in the notes to the consolidated financial
statements. The income statement has been prepared using
the function of expense method.
The group currency is the euro (EUR). Unless otherwise
stated, all figures are in millions of euros (EUR million).
The consolidated financial statements prepared as of De­
cember 31, 2023, were authorized for publication by theboard of management on March 6, 2024. The consolidated
financial statements and group management report will be
filed with the Company Register [Unternehmensregister] andpublished there.

2 — Changes in financial reporting
Accounting standards applied for the first timein the fiscal year 2023
The following new or revised standards became effective forthe first time in the reporting year:– IFRS 17 Insurance Contracts (including the amendmentsfrom June 2020 and December 2021),– Amendments to IAS 1 Presentation of Financial Statements(Disclosure of Accounting Policies),– Amendments to IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors (Definition of Accounting
Estimates),– Amendments to IAS 12 Income Taxes (Deferred Tax
related to Assets and Liabilities arising from a Single
Transaction),

Annual report 2023

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Additional information

122– Amendments to IAS 12 Income Taxes (International Tax
Reform – Pillar Two Model Rules).

The Bosch Group has not adopted the above amendments
early.

The above amendments are not expected to have any ma­
terial effects on the consolidated financial statements of­Robert Bosch GmbH. Disclosures on possible effects fromthe implementation of the OECD Pillar Two Model Rules arepresented in note 12 “Income taxes.”

First-time adoption of the above amendments is not ex­pected to have any material effects on the consolidated
finan­cial statements of Robert Bosch GmbH.

Accounting standards not adopted early
The EU endorsed amendments to the following accounting
standards in the reporting year:– IAS 1 Presentation of Financial Statements (Classificationof Liabilities as Current or Non-current and Non-current
Liabilities with Covenants) and– IFRS 16 Leases (Lease Liability in a Sale and Leaseback).
The IASB also published amendments to the following stan­dards in the reporting year:– IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures (Supplier Finance Arrangements),
which will become effective for fiscal years beginningon or after January 1, 2024, and– IAS 21 The Effects of Changes in Foreign Exchange Rates(Lack of Exchangeability), which will become effective
for fiscal years beginning on or after January 1, 2025.
These changes have yet to be endorsed by the EU.

Correction of the previous year’s figures
In the fiscal year, the allocation of individual items undercash flows from operating activities was changed in the con­solidated statement of cash flows. This relates in particular
to the presentation of changes in inventories from customer
development projects. Changes that were previously re­ported in the item “other expenses and income, not cash­effective” are reported consistently with other changes ininventories in the items “change in inventories,” “change inreceivables and other assets,” and “change in liabilities”
from the reporting year onward.
In order to ensure the comparability of the previous year’s
figures, the following restatements were made in the previ­
ous year’s figures in accordance with IAS 8.42: The line item
“other expenses and income, not cash effective” was in­creased by EUR 313 million, while the line item “change ininventories” was reduced by EUR 459 million. The line item
“change in receivables and other assets” was reduced by
EUR 223 million, and the line item “change in liabilities” wasincreased by EUR 369 million.

Annual report 2023

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Additional information

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123

3 — Currency translation
In the separate financial statements of the group companies,
monetary assets and liabilities denominated in currencies
other than the euro are measured at the closing rate, regard­
less of whether they are hedged or not. Exchange-rate gains
and losses from revaluations are recorded in profit or loss.
Financial statements prepared in foreign currency are trans­
lated into euros in accordance with IAS 21 The Effects of
Changes in Foreign Exchange Rates. Assets and liabilities aretranslated at the closing rate, while equity is translated athistorical rates. The line items of the income statement aretranslated into euros at the annual average exchange rates.
Any resulting exchange-rate differences are recorded di­
rectly in equity as a separate line item until the disposal of
the subsidiaries.
For the most important non-euro currencies of the BoschGroup, the following exchange rates apply:
T 08

Closing rate

Australia

Average rate

EUR 1 =

12/31/2023

12/31/2022

2023

2022

AUD

1.63

1.57

1.63

1.52

Brazil

BRL

5.36

5.64

5.40

5.44

Canada

CAD

1.46

1.44

1.46

1.37

China

CNY

7.85

7.36

7.66

7.08

Czech Republic

CZK

24.72

24.12

24.00

24.56

Hungary

HUF

382.80400.87381.76391.37

India

INR

91.90

88.17

89.33

82.72

Japan

JPY

156.33140.66151.90137.99Korea

KRW

1,433.66

1,344.09

1,413.29

1,357.94

Mexico

MXN

18.72

20.86

19.19

21.20

Poland

PLN

4.34

4.68

4.54

4.69

Romania

RON

4.98

4.95

4.95

4.93

Switzerland

CHF

0.93

0.98

0.97

1.00

Turkey

TRY

32.65

19.96

32.65

19.96

United Kingdom

GBP

0.87

0.89

0.87

0.85

United States

USD

1.11

1.07

1.08

1.05

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124

The financial statements of consolidated entities in hyperin­
flationary economies are prepared in accordance with IAS 29
Financial Reporting in Hyperinflationary Economies. In the re­porting year, this concerns the subsidiaries in Argentina andTurkey. To identify economies as hyperinflationary, refer­ence is made to the pronouncements issued by the Center
for Audit Quality’s International Practices Task Force (IPTF).
In accordance with IAS 29, non-monetary assets and liabili­ties, equity, and all line items of the income statement andstatement of comprehensive income are indexed to the re­spective country’s general price index. In Turkey, the con­sumer price index issued by the Turkish Statistical Institute
TURKSTAT is used. On December 31, 2023, this stood at
1,859.38 (previous year: 1,128.45). Argentina uses the con­sumer price index set by the FACPCE, which stood at
3,533.19 on December 31, 2023 (previous year: 1,134.59).
Monetary items of the statement of financial position are notrestated. The gain or loss on the net monetary position isrecognized in the financial result under expenses or income
from exchange-rate fluctuations.

4 — Accounting policies
The accounting policies used in the preparation of the con­solidated financial statements of Robert Bosch GmbH are
presented in the notes to the individual line items of the­income statement and the statement of financial position.
The accounting policies applicable to financial instruments
are presented together in note 30 “Additional disclosures on
finan­cial instruments.”
In general, the accounting policies applied are unchanged
from the previous year, with the exceptions outlined innote 2.

5 — Assumptions and estimates
The preparation of consolidated financial statements in ac­
cordance with IFRSs requires that assumptions and esti­mates be made for some line items. These assumptions andestimates have an effect on the amount and presentation of
the assets and liabilities, income and expenses, and on thecontingent liabilities disclosed in the reporting period. Un­
certainty involved in these assumptions and estimates could
result in actual outcomes that require a restatement to thecarrying amount of assets or liabilities concerned in future
periods. Assumptions and estimates mainly concern the­following:
The determination of loss allowances on receivables andcontract assets is based on estimates and assumptions withrespect to the credit standing of individual customers. The
measurement of inventories requires assumptions and esti­mates to be made, including for determining the net realiz­able value. The discounted future cash flows used as a basis
for testing goodwill, other intangible assets, and property,
plant, and equipment for impairment are based on esti­mates. Assumptions are also made in the determination of
the discount rates and growth rates used. Determining leaseterms requires assumptions and estimates with respect tothe likelihood of options to terminate or extend the lease be­ing exercised. The recognition of deferred tax assets is prem­
ised on their future recoverability being probable. Conse­
quently, assumptions have to be made regarding futuretaxable income and the expected timing of the reversal of
temporary differences. Further assumptions are required todetermine the useful lives of items subject to wear and tearwithin property, plant, and equipment, as well as of intangi­
ble assets. The determination of carrying amounts of invest­
ments also involves making assumptions and estimates. Pro­
visions for pensions and similar obligations are measured
using actuarial methods. This requires various assumptions,

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125

including with respect to life expectancy, salary trends, thepension growth rate, and the discount factor. The recogni­tion and measurement of other provisions is based on esti­mates of amounts and the probability of future events. To theextent possible, such estimates are based on past experi­ence, and are regularly reviewed and adjusted as necessary.
Assumptions and estimates are involved to a high degree inmeasuring provisions for legal risks and for possible com­pensation claims by customers. Uncertainties exist in partic­
ular with regard to the production volumes affected, theamount of claims, and the course of negotiations.
Macroeconomic trends in the reporting year, such as the de­velopment of inflation and rising interest rates, were appro­
priately taken into account in impairment testing of goodwill
and other non-current assets, but also when calculating pro­visions. In the reporting year, there were no effects on therecognition and measurement of assets and only immaterial
effects on the measurement of provisions.
With respect to the consideration of climate-related mattersin the preparation of the consolidated financial statements,
the relevant legislation is continuously monitored. The ef­
fects of legal requirements relating to internal-combustion
engines, as well as structural changes such as the transition
to electromobility and increasing electrification in many
fields, must be assessed in terms of their impact on financial
reporting. The assumptions on which the measurement ofassets and liabilities is based, in particular when testing
assets for impairment, must take the above-mentioned­­matters into account. This applies both to the underlying
term planning and to the valuation parameters
medium-­­used, in particular the growth rate. The useful lives applied
to non-current assets must also be regularly reviewed, par­ticularly in light of the effects of changes in legal require­ments. In the reporting year, climate-related matters andother structural changes had no effects on the recognition
and measurement of assets and liabilities.
As in the previous year, the credit risk for receivables fromentities domiciled in Russia, Belarus, and Ukraine was reas­
sessed on account of the continuing war in Ukraine and thesanctions and trade restrictions imposed as a result. This
reassessment led to write-downs that were immaterial inscope. Further effects have arisen with regard to the plannedsale of further subsidiaries based in Russia. Related disclo­sures are provided in note 6 “Consolidation.”

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Additional information

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126

6 — Consolidation
Basis of consolidation
Besides Robert Bosch GmbH, the consolidated financial
statements include all subsidiaries over which Robert BoschGmbH has control pursuant to the criteria set out in IFRS 10
Consolidated Financial Statements. These entities are in­cluded in the consolidated financial statements from thedate on which the Bosch Group obtains control. Conversely,
subsidiaries are no longer fully consolidated when control ofthe entity is lost.
The capital of the entities consolidated in the reporting year
for the first time is accounted for pursuant to IFRS 3 Business
Combinations, using the acquisition method of accounting.
The acquisition-date cost of the investment is offset against
the proportionate share of revalued equity. As a matter ofprinciple, assets, liabilities, and contingent liabilities arecarried at fair value. Remaining debit differences are ac­counted for as goodwill. Negative goodwill is recognized in
profit or loss after reassessment. Any difference resulting
from the purchase and disposal of non-controlling interests
without loss of control is offset against equity.
All intercompany profits and losses, sales revenue, ex­penses, and other income, as well as receivables and liabili­ties or provisions, are eliminated. In the case of consolida­tion measures with an effect on profit or loss, income tax
effects are considered and deferred taxes recognized.
Consolidated group
Besides Robert Bosch GmbH, the consolidated group com­prises a further 468 (previous year: 468) fully consolidated
entities. The group developed as follows:
T 09

Included in consolidation at January 1, 2022

Germany

OutsideGermany

Total

81

360

441

Additions/formations in fiscal year 2022

3

40

43

Disposals/mergers in fiscal year 2022

–6

–9

–15

Included in consolidation at December 31, 2022

78

391

469

Additions/formations in fiscal year 2023

3

20

23

Disposals/mergers in fiscal year 2023

–4

–19

–23

Included in consolidation at December 31, 2023

77

392

469

The consolidated group includes four special funds, as wellas other investments.

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

127

In fiscal year 2023, the following companies were consoli­
dated for the first time:– Action Electric Ltd., Vancouver, BC, Canada,– Automobility Services and Solutions Private Limited,
Bengaluru, India,– Bosch Electrical Drives SK s.r.o., Bratislava, Slovakia,– Bosch Global Business Services S.R.L., Timişoara,
Romania,– Bosch Global Software Technologies Ltd., Tokyo, Japan,– Bosch Mobility Platform & Solutions GmbH, Gerlingen,Germany,– Bosch Mobility Platform & Solutions LLC, Wilmington,
DE, United States,– BSH Home Appliances (Vietnam) Co. Ltd., Ho Chi Minh
City, Vietnam,– eesy-ic GmbH, Erlangen, Germany,– ELPRO Corporation, Tokyo, Japan,– ETAS Ltd., York, United Kingdom,– HydraForce, Inc., Lincolnshire, IL, United States,– HydraForce China LLC, Lincolnshire, IL, United States,– HydraForce Hydraulics, Ltd., Birmingham, United
Kingdom,– HydraForce Hydraulics, Ltda., Taboao da Serra, Brazil,– HydraForce Hydraulics Systems (Changzhou) Co., Ltd.,
Changzhou, China,– MoTeC (Europe) Limited, Oxford, United Kingdom,– Paladin Technologies Inc., Vancouver, BC, Canada,– Paladin Technologies (USA) Inc., Dover, DE, UnitedStates,– PalAmerican Technologies Inc., Tumwater, WA , UnitedStates,– Robert Bosch Semiconductor LLC, Wilmington, DE,
United States,– Service Maintenance Installation, Inc., Burnsville, MN,
United States,– susteco solutions GmbH, Berlin, Germany.
Due to changes to the consolidated group, sales revenue in­creased by EUR 850 million in the reporting year and total
assets as of December 31, 2023, by EUR 1,516 million.

Annual report 2023

Notes to the consolidated financial statements

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Additional information

Consolidated financial statements

128

Condensed financial information on fully consolidated
subsidiaries with material non-controlling interests
T 10
in millions of euros
Bosch Powertrain
Systems Co., Ltd.,
Wuxi, China

Current assets

United Automotive
Electronic Systems Co., Ltd.,
Shanghai, China

2023

2022

2023

2022

1,679

2,117

2,846

2,436

Non-current assets

419

475

1,506

1,555

Current liabilities

1,063

1,195

2,032

1,667

3

7

236

252

Sales revenue

1,829

1,972

4,780

4,313

Profit after tax

366

426

520

476

Comprehensive income

286

397

374

431

Cash flows from operating activities

312

406

563

582

Cash flows from investing activities

–50

–73

–219

–353

Cash flows from financing activities

–262

–333

–398

–210

Share of capital attributable to non-controlling interests

34.0%

34.0%

49.0%

49.0%

Profit/loss after tax attributable to non-controlling interests

124

145

255

233

Equity attributable to non-controlling interests

351

473

1,021

1,015

Dividends paid to non-controlling interests

218

108

184

159

Non-current liabilities

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

129

T 11
in millions of euros
Bosch HUAYU Steering
Systems Group,
Shanghai, China

Current assets

Bosch Ltd.,Bengaluru, India

2023

2022

2023

2022

1,192

1,204

1,108

1,032

Non-current assets

595

627

922

951

Current liabilities

1,051

1,058

540

558

52

1

50

40

Sales revenue

1,866

1,836

1,834

1,695

Profit after tax

208

209

177

176

Comprehensive income

161

195

129

114

Cash flows from operating activities

275

144

187

211

Non-current liabilities

Cash flows from investing activities

–93

–110

–8

–49

Cash flows from financing activities

–121

–168

–214

–96

Share of capital attributable to non-controlling interests

49.0%

49.0%

29.5%

29.5%

Profit/loss after tax attributable to non-controlling interests

102

102

52

52

Equity attributable to non-controlling interests

335

378

425

409

Dividends paid to non-controlling interests

85

69

47

22

The condensed financial information of the respective enti­
ties corresponds to the figures before consolidation entries.
Joint ventures and joint operations
The accounting for joint arrangements in accordance withIFRS 11 Joint Arrangements is based on whether they areclassified as a joint operation or a joint venture, which in turndepends on the contractually agreed rights and obligationsof the parties to the arrangement. With regard to joint opera­
tions, the Bosch Group recognizes, in relation to its interest,
its rights to the assets, liabilities, expenses, and revenue inthe related line items in the consolidated financial state­ments. Investments in joint ventures within the meaning of
IFRS 11 are accounted for using the equity method in accor­
dance with IAS 28 Investments in Associates and Joint Ventures. The carrying amount of these interests is subsequently
measured in accordance with the change in equity of thejointly controlled entity attributable to the Bosch Group,
less any impairment, where appropriate.

Annual report 2023

Notes to the consolidated financial statements

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Consolidated financial statements

Additional information

130

The following joint ventures are subject to joint control in ac­
cordance with IFRS 11 and were recognized in the consoli­
dated financial statements as of December 31, 2023, using
the equity method in accordance with IAS 28:– Bosch BASF Smart Farming GmbH, Cologne, Germany(50 percent),– BS Systems GmbH & Co. KG, Zusmarshausen, Germany(50 percent),– MAGURA Bosch Parts & Services GmbH & Co. KG,
Bad Urach, Germany (50 percent),– North America Fuel Systems Remanufacturing LLC,
Kentwood, MI, United States (50 percent).
The share of capital indicated corresponds to the share of
voting rights. The carrying amounts of the investments in thelatter three entities were determined on the basis of themost recent available financial statements as of December
31, 2022.
Condensed financial information on individually
immaterial joint ventures
T 12
in millions of euros
2023

2022

Carrying amount of the investments

33

27

Group share of profit after tax

100Group share of other comprehensive
income after tax–1

Group share of comprehensive income

90

The carrying amount of the investments in the above-­mentioned individually immaterial joint ventures corre­
sponds to the proportionate share in these entities’ equity.

Since 2022, a cooperation arrangement has been in place
between Robert Bosch GmbH and the Volkswagen group­entity CARIAD SE, Wolfsburg, Germany, for the develop­
ment of a software platform for partially and highly auto­mated driving. The principal place of business of the joint
operation is Ingolstadt, Germany. The development costs
incurred are shared equally between the parties. Each party
is granted rights to use and market the jointly developed­results; the results of the development efforts are not mar­keted jointly.
Associated entities
Pursuant to IAS 28, investments are also included in the con­solidated financial statements using the equity method if
significant influence can be exercised.
The following associated entities are accounted for using theequity method in accordance with IAS 28 as of December 31,
2023:– ads-tec Energy plc, Dublin, Ireland (20.7 percent),– plc2 Design GmbH, Endingen am Kaiserstuhl, Germany(25 percent).
To determine the carrying amount of ads-tec Energy plc,
the most recent available financial statements as of Decem­
ber 31, 2022, were used.

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

131

Condensed financial information on individually
immaterial associated entities
T 13
in millions of euros
2023

2022

Carrying amount of the investments

20

39Group share of profit after tax–4–1

Group share of other comprehensive
income after tax

0Group share of comprehensive income–4–1

Business combinations
Business combinations in the reporting year
On February 3, 2023, 100 percent of the shares in Hydra­
Force Inc., Lincolnshire, IL , United States, including its
13 subsidiaries, were acquired. The acquisition of Hydra­
Force is intended to strengthen the Drive and Control Tech­
nology division’s presence (Industrial Technology businesssector) in North America and expand its global hydraulics
business. The purchase price for the shares came to
EUR 979 million and was settled by transferring cash. Allo­cated to the Industrial Technology business sector, the­acquired entities are included in Robert Bosch GmbH’s con­solidated financial statements as of February 3, 2023. The
transaction resulted in goodwill of EUR 452 million, which isdeductible for tax purposes. The goodwill is allocated to the
Drive and Control Technology division and represents partof the synergy potential and the value of the workforce. From
the date of first-time consolidation, HydraForce contributed
EUR 453 million to the group’s sales revenue and a loss of
EUR 4 million to the group’s profit after tax.

On August 31, 2023, parts of the business of TSI Semi­
conductors LLC, Roseville, CA , United States, were ac­quired. The acquisition is intended to strengthen the semi­
conductor business by building up manufacturing capacity
in North America. The purchase price came to EUR 130 mil­lion and was settled by transferring cash. The acquired busi­
ness is allocated to the Mobility Solutions business sector
and was included in the consolidated financial statements ofRobert Bosch GmbH as of September 1, 2023. The businesscombination led to the recognition of goodwill of EUR 32 mil­lion, which is deductible for tax purposes. The goodwill isallocated to the Automotive Electronics division and rep­resents part of the expected synergies and the value of theworkforce. From the date of initial consolidation, sales reve­nue of EUR 6 million was generated and negative earnings
after tax of EUR 25 million were incurred.
Effective August 31, 2023, 100 percent of the shares in­Paladin Technologies Inc., Vancouver, BC, Canada, and Pal­
American Technologies Inc., Tumwater, WA , United States,
were acquired. The acquisition also included a subsidiary in
Canada and two subsidiaries in the United States. The acqui­sition of Paladin Technologies, a leading provider of security
solutions and services in the field of systems integration, isintended to expand the building services business in North
America. Due to the complexity of the transaction, the final
determination of the purchase price and the measurement of
the acquired assets and liabilities had not yet been com­pleted at the time the consolidated financial statements
were released for publication. The provisional purchaseprice for the shares came to EUR 338 million and was mainly
settled by transferring cash. The purchase price includes
contingent consideration that will fall due over the next
three years. Allocated to the Energy and Building Technol­ogy business sector, the acquired entities are included inRobert Bosch GmbH’s consolidated financial statements as

Annual report 2023

Notes to the consolidated financial statements

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Additional information

Consolidated financial statements

132

of September 1, 2023. The acquisition gave rise to provisional
goodwill of EUR 205 million, which is not deductible for tax
purposes and mainly represents part of the synergy poten­
tial and the value of the workforce. The goodwill is allocatedto the Building Technologies division. From the date of­first-time consolidation, Paladin Technologies contributed

EUR 130 million to the group’s sales revenue and a loss of
EUR 4 million to the group’s profit after tax.

The fair values acquired in the above business combinations
are presented in the following table:
T 14

in millions of euros

HydraForce

Current assets

225

PaladinTechnologies
TSI Semi-­(provisional
conductors
figures)

8

140

Total
of fair values373

of which cash

28

1

29

of which trade receivables

79

2

93

174

Non-current assets

980

129

328

1,437

Property, plant, and equipment

109

97

22

228

Intangible assets

859

32

294

1,185

452

32

205

689

12

24

4

73

199

3

57

164

of which goodwill
Other assets including deferred taxes

12

Current liabilities

122

Non-current liabilities

104

Provisions
Liabilities including deferred taxes

3
104

3
57

161

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

133

The gross amount of trade receivables acquired amounted to
EUR 178 million. Of this amount, EUR 4 million is expected to
be uncollectible.
The following individually immaterial acquisitions were also
closed in the reporting year:– On February 28, 2023, 100 percent of the shares ineesy-IC GmbH, Erlangen, Germany, were acquired.
The entity designs microchips that can also process
analog signals, and is assigned to the Mobility Solutions
business sector.
– On September 8, 2023, the business operations ofWest Coast Fire & Integration, Inc., Yorba Linda, CA ,United States, were acquired. The entity specializes
in fire protection, security, and voice/data solutions
for buildings. Assigned to the Energy and Building
Technology business sector, the acquisition is intended
to further expand the systems integration business inNorth America.
The total purchase price amounted to EUR 33 million, andgoodwill totaling EUR 29 million was recognized. On aggre­
gate, as of the acquisition date the above individually imma­
terial business combinations contributed EUR 9 million to
the group’s sales revenue and generated a profit after tax of
EUR 1 million.

Assuming that the business combinations had already takenplace as of January 1, 2023, the Bosch Group’s sales revenue
would have amounted to EUR 92,518 million and its profit­after tax to EUR 2,551 million.
Business combinations recognized provisionallyin the previous year
On November 30, 2022, the group acquired 100 percent of
the shares in Elmo Motion Control Ltd., Petah Tikva, Israel,including its nine subsidiaries. The entity was included in the
consolidated financial statements of Robert Bosch GmbHfor the first time as of December 31, 2022, and is allocatedto the Industrial Technology business sector. The final pur­chase price came to EUR 665 million and was settled bytransferring cash. Elmo Motion Control Ltd. develops andmanufactures high-end electric servo drives and motion con­trollers for industrial automation. The acquisition is intended
to strengthen the Drive and Control Technology division’s
factory automation business.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

134

Measurement of the acquired entity’s assets and liabilities
and the purchase price allocation had not been completed
by the date on which the consolidated financial statements
for the previous year were released for publication. The final
amounts of the acquired assets and liabilities as of the dateof first-time inclusion in the consolidated financial state­ments are presented in the table below:
T 15
in millions of euros
Elmo Motion
Control Ltd.

Current assets

63

of which cash

19of which trade receivables

14

Non-current assets

667

Financial assets

5

Property, plant, and equipment

4

Intangible assetsof which goodwill

658
503

Current liabilities

56

Non-current liabilities

9

Provisions

1

Liabilities including deferred taxes

8

The goodwill arising from the acquisition of EUR 503 million
is assigned to the Drive and Control Technology division andis not tax deductible. It represents part of the expected syn­ergy potential and the value of the workforce.
In relation to the provisional carrying amounts recognized in
the previous year, only immaterial adjustments were made.

Non-current assets held for sale and disposal groups
Non-current assets and disposal groups are classified asheld for sale if their carrying amount will be recovered princi­
pally through a sale transaction. The corresponding assets
and disposal groups are available for immediate sale andthe sale is highly probable. In accordance with IFRS 5 Non-­current Assets Held for Sale and Discontinued Operations,they are measured at the lower of carrying amount or fairvalue less costs to sell, unless another standard prescribes
a different measurement method. Any impairment loss in­excess of the balance of non-current assets is recognized byrecording current provisions.
As of December 31, 2023, the following operations meetthe criteria for classification as a disposal group within themeaning of IFRS 5:
The planned divestment of the passenger car brake discbusiness, allocated to the Mobility Solutions business sec­
tor, had already been announced in the 2021 fiscal year. The
reason for this decision is that brake disc production within
the Bosch Group has hardly any synergies with existing busi­
ness areas. The aim of the sale is to better utilize the poten­
tial of the business. The sale concerns shares held in theentities Buderus Guss GmbH, Breidenbach, and Robert
Bosch Lollar Guss GmbH, Lollar, both in Germany. Contrary
to the original intention, the transaction was not completed
in the reporting year as the selling negotiations were delayed
beyond the end of the reporting year. The contracts for thesale of both entities were signed on February 2, 2024, andthe transaction is expected to be completed in the second
quarter of 2024.
In the reporting year, the decision was made to sell the shares
held in the Russian subsidiaries OOO Bosch Thermotechnik,
Moscow, and OOO BSH Bytowije Pribory, St. ­Petersburg.

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

135

OOO Bosch Thermotechnik is active in the sale of heating
appliances; the entity is assigned to the Energy and Building
Technology business sector. OOO BSH Bytowije Pribory,
which is part of the Consumer Goods business sector, sells
household appliances and provides the associated cus­
tomer service. The divestments are expected to be com­pleted in the third and first quarters of 2024 respectively.
The reason for the planned divestments is to be seen in the
sanctions regime, and the resulting inability or only limited
ability to continue manufacturing operations.

Also in the reporting year, the sale of the manufacturing­activities belonging to Robert Bosch (France) S.A.S, SaintOuen, France, relating to electronic and mechatronic com­ponents for the automotive and consumer goods sectors
was announced in order to secure the long-term prospectsof these activities. The activities are assigned to the Mobility
Solutions business sector and the transaction is scheduled
for completion in the fourth quarter of 2024.
As part of the classification of the above operations as a dis­posal group, an expense of EUR 125 million was recognizedin sundry other operating expenses in the reporting year. Of
that amount, EUR 52 million is attributable to the impair­ment of non-current assets and EUR 73 million to the recog­
nition of current sundry other provisions.

As of December 31, 2023, the main groups of assets held forsale and the directly associated liabilities are as follows:
T 16
in millions of euros
2023

Cash and cash equivalents

20

Trade receivables

30

Inventories

71

Property, plant, and equipment and intangible
assets23

Other financial and non-financial assets

10

Assets held for sale154

Trade payables

32

Pension provisions

30

Other provisions

35

Other financial and non-financial liabilities

47

Liabilities directly associated with assets
held for sale

144

The accumulated decrease in equity through other compre­
hensive income related to disposal groups amounts to
EUR 13 million. Of this amount, EUR 5 million relates to therevaluation reserve from pensions and EUR 8 million to cur­rency translation differences.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

136

Divestments completed in the reporting year
On May 10, 2023, the sale of the Russian subsidiaries OOOBosch Power Tools (Consumer Goods business sector, pro­duction of power tools for professional applications), OOO
Robert Bosch Saratov (Mobility Solutions business sector,
production of components for motor vehicles), and Bosch
Heating Systems LLC (Energy and Building Technology busi­
ness sector, production of boilers), all located in Engels,
was completed. The sale of OOO Robert Bosch Samara(­Mobility Solutions business sector, production of compo­
nents for motor vehicles), Samara, Russia, was closed onJune 21, 2023. The divestments were made because thesanctions regime limited the aforementioned entities’ ability
to continue manufacturing operations.
In total, current assets of EUR 56 million (including cash of
EUR 21 million) and non-current ­assets of EUR 5 million were
sold, and current liabilities of EUR 16 million transferred.
The loss of EUR 27 million resulting from the trans­actions
was recorded in other operating expenses. An amount of
EUR 22 million was reclassified from the currency trans­
lation reserve. The purchase prices totaling EUR 40 million
were settled by transferring cash.

Notes to the income statement
7 — Sales revenue
In accordance with IFRS 15 Revenue from Contracts with
­Customers, sales revenue is recognized when the customer
obtains control of the goods or services and is thus able todirect the use of, and obtain substantially all the remaining
benefits from, the goods or services. This is based on theassumption that there is a contract that creates enforceable
rights and obligations; in addition, it must be probable thatthe Bosch Group will collect the consideration for the goods
and services transferred. Revenue is recognized at theamount of the transaction price, i.e. the amount of consider­ation that the Bosch Group is expected to collect in exchange
for the transfer of goods and services arranged. IFRS 15 sets
forth a consistent, five-step model for determining theamount of revenue to be reported, which is generally appli­
cable for all customer contracts.
In the sale of goods, control is typically transferred to thecustomer on delivery. Invoicing usually takes place at thesame time. Revenue from services is mostly recognized oncethe service has been rendered in its entirety and invoiced. In
the case of development work, milestone payments or down­
stream separate remuneration are also agreed. When in­
voicing the sale of goods, services, and development work,country- and industry-specific payment terms are granted;
these averaged 46 days, as in the previous year. For cus­
tomer-specific products that are allocable to the Mobility­Solutions business sector and do not create an asset with an­alternative use for the group, revenue is recognized overtime; the same applies to plant engineering contracts in the­Industrial Technology business sector and the Energy and
Building Technology business sector. Revenue is recognizedaccording to the percentage of completion, which can be­determined using input or output methods. Output methods

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

137

recognize revenue on the basis of the value to the customerof the goods or services transferred relative to the remain­ing goods or services promised under the contract. Input­methods recognize revenue on the basis of costs incurred
relative to the estimated total costs. Depending on theunder­lying business model, the Bosch Group uses input­methods as well as output methods in determining the per­centage of completion.

Sales revenue recognized over time amounts to
EUR 55,581 million (previous year: EUR 44,484 million) in
the Mobility Solutions business sector, EUR 0 million (previ­
ous year: EUR 35 million) in the Industrial Technology busi­
ness sector, and EUR 944 million (previous year: EUR 743 mil­lion) in the Energy and Building Technology business sector.
The previous year’s figure for the Energy and Building Tech­
nology business sector has been restated.

Sales revenue comes to EUR 91,596 million (previous year:
EUR 88,201 million). Of this amount, EUR 56,182 million (pre­vious year: EUR 52,573 million) is attributable to the Mobility
Solutions business sector, EUR 7,418 million (previous year:
EUR 6,946 million) to the Industrial Technology businesssector, EUR 19,943 million (previous year: EUR 21,342 mil­lion) to the Consumer Goods business sector, EUR 7,693 mil­lion (previous year: EUR 6,964 million) to the Energy and
Building Technology business sector, and EUR 360 million(previous year: EUR 376 million) to other activities.

A breakdown of sales revenue by region is provided in note 29“Segment reporting.”

Sales revenue includes an amount of EUR 1,542 million (pre­vious year: EUR 1,287 million) that had been included in thebalance of current contract liabilities at the beginning of thereporting year.
In relation to performance obligations not satisfied in full orin part as of the reporting date, an amount of EUR 118 million(previous year: EUR 118 million) is expected to be realized as
sales revenue within the next two years and an amount of
EUR 29 million (previous year: EUR 24 million) thereafter.
These amounts relate to long-term construction contracts.

8 — Functional costs
Cost of sales contains the cost of internally manufactured
goods sold and the cost price of resold merchandise. The
cost of internally manufactured goods sold contains materi­als and production cost that can be allocated directly, theallocable parts of indirect production overheads, including
depreciation of production equipment and amortization ofother intangible assets, and write-downs of inventories. Costof sales also includes development work charged directly tocustomers and amortization of capitalized development
work.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

138

The distribution and administrative cost breaks down as
follows:
T 17

9 — Other operating income
T 19
in millions of euros

in millions of euros

2023

2022

13,374

Income from exchange-ratefluctuations

934

1,172

4,824

4,438

Income from derivatives

281

441

18,233

17,812

Income from the reversal of loss
allowances on trade receivables
and other financial assets

105

58

Income from the disposalof non-current assets

271

99

9

8

2023

2022

Distribution cost

13,409Administrative cost

The distribution cost includes personnel and non-personnel
costs, depreciation charged in the distribution function, cus­
tomer service, logistics, market research, sales promotion,
shipping, advertising, and warranty costs.
Research and development cost contains both researchcost and development cost that cannot be capitalized.
T 18
in millions of euros
2023

2022

Total research and development cost

7,564

7,483

Development cost capitalized
in the reporting period

–234

–271

1

12

7,331

7,224

Impairment losses on capitalized
development cost

Cost of materials amounted to EUR 43,839 million in thereporting year (previous year: EUR 42,145 million).

Income from rent and leases
Income from the reversal of provisions

958

216

Sundry other operating income

912

640

3,470

2,634

The income from exchange-rate fluctuations is offset by ex­penses that are disclosed in other operating expenses.
Income from derivatives includes income from foreign ex­change and commodity derivatives allocated to operating
activities.
Income from the reversal of provisions mainly concerns thesundry other provisions.
Government grants are recognized pursuant to IAS 20­ ccounting for Government Grants and Disclosure of GovernA
ment Assistance only if it is sufficiently certain that the assis­
tance will be granted and the conditions attached to the as­sistance are satisfied. Grants related to income are presented
as part of profit or loss in the period in which the related ex­penses are incurred. They are offset against the respective

Annual report 2023

Notes to the consolidated financial statements

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Consolidated financial statements

Additional information

139

expenses. If there are no such expenses, the grants are dis­closed in sundry other operating income. In the reporting
year, grants related to income totaled EUR 395 million (pre­vious year: EUR 207 million).

10 — Other operating expenses

11 — Financial result
T 21
in millions of euros

Interest and similar income
T 20

Interest and similar expenses
Interest resultin millions of euros

2023

2022

762

482

–1,188

–404

–426

78

Profit/loss from investments–1

58

Income from securities

518

141

1,245

Expenses from securities

–279

–802

161

400

Loss allowances on trade receivables
and other financial assets

Income from exchange-ratefluctuations

1,670

1,819

128

129

Expenses from the disposalof non-current assets

Expenses from exchange-rate­fluctuations–1,694–1,130157

108

Income from derivatives

1,019

1,321

Expenses from derivatives–1,305–2,002

2023

2022

1,045

Expenses from derivatives

Expenses from exchange-rate­fluctuations

Other taxes

30

19

Expenses from the recognitionof ­provisions

89

302

Sundry other operating expenses

419

379

2,029

2,582

“Expenses from derivatives” includes expenses from foreignexchange and commodity derivatives allocated to operating
activities.

Other income

11

8

Other expenses

–40

–52

Other financial result

–101

– 639

Financial result, total

–527

–561

of which financial income

3,980

3,829

of which financial expenses–4,507–4,390The line item “interest and similar income” contains divi­
dend income from shares of EUR 73 million (previous year:
EUR 73 million) and income from investment funds of
EUR 26 million (previous year: EUR 30 million). The line item
“interest and similar expenses” does not include any nega­tive interest income in the reporting year (previous year
EUR 7 million).

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

140

The profit/loss from investments comprises dividend in­come as well as changes in the fair value of investments
measured at fair value through profit or loss.

The line items “income from derivatives” and “expenses fromderivatives” contain transactions to hedge financial assets,
mainly from foreign-currency derivatives.

Income and expenses from securities include the changes in
the fair value of securities measured at fair value throughprofit or loss, gains and losses on the disposal of securities
measured at fair value through other comprehensive income,as well as impairment losses and income from the reversalof impairment losses on such securities.

Interest income and expenses are attributable to financial
instruments not measured at fair value through profit or loss
as follows:

T 22
in millions of euros

2023
Interest
income2022
Interest
expenses

Interest
incomeInterest
expenses7

Financial assets measured at amortized cost (AC)

324

135

Financial assets measured at fair value through other comprehensive
income (FVOCI wR)

202

167

Financial liabilities measured at amortized cost (AC)

426
526

426

176
302

183

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

141

12 — Income taxes

Deferred taxes break down as follows:

Income tax obligations comprise certain and uncertain in­come tax liabilities.
In accordance with IAS 12 Income Taxes, deferred tax assets
and liabilities are recorded for temporary differences be­
tween the tax carrying amounts and the carrying amounts inthe consolidated statement of financial position unless theyarise from the initial recognition of an asset or liability in atransaction that is not a business combination and that, atthe time of the transaction, affected neither the profit before
tax nor the taxable income. Deferred tax assets arising fromtax losses and tax credits are recognized only if it is suffi­
ciently certain that they can be utilized. The deferred tax
item equals the estimated tax expense or relief in later peri­ods. The tax rate applicable at the time of realization is taken
as a basis. If it is uncertain whether recognized deferred tax
assets can be realized, they are adjusted accordingly.
Income tax expenses are classified according to their origin
as follows:
T 23
in millions of euros

Current taxes
Deferred taxes

2023

2022

1,401

1,478

– 65

–403

1,336

1,075

Current taxes contain tax income not related to the reporting
period totaling EUR 11 million (previous year: tax expensesof EUR 32 million).

T 24
in millions of euros

Temporary differences
Tax losses and tax credits

2023

2022

–80

–394

15

–9

– 65

–403

Deferred taxes are calculated on the basis of the tax rates
that apply or are expected to apply given the current legisla­tion in the individual countries at the expected time of reali­zation. The corporate income tax rate for German companies
is 15 percent. Taking into account the solidarity surcharge of
5.5 percent and the trade tax levied on profits recorded inGermany, the total tax rate is 30 percent (previous year:
30 percent). The tax rates outside Germany range between
6 percent and 35 percent (previous year: between 9 percent
and 35 percent).

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

142

As of December 31, the deferred tax assets and liabilities
presented in the statement of financial position are attribut­
able to the following items:
T 25
in millions of euros
2023

2022

AssetsLiabilities

AssetsLiabilities

1,143

738

1,160

680

Securities and investments

119

107

22

67

Property, plant, and equipment

250

747

229

673

203

1,019

Receivables, other assets, and inventories

Right-of-use assets
Intangible assets
Other asset items
Liabilities
Lease liabilities
Provisions
Other liabilities
Tax losses and tax credits

462
293

919

424

420

63

270

71

1,119

152

1,194

132

491

446

1,068

95

1,164

90

7

373

10

276

164

165

Total

5,074

3,656

4,863

3,432

Netting–3,057–3,057–2,860–2,860

2,017

599

2,003

572

Of the reported deferred tax assets, EUR 88 million (previ­
ous year: EUR 120 million) relates to entities that incurred
losses in the reporting year or in the previous year. It is as­
sumed that sufficient taxable income or taxable temporary
differences will be available in subsequent years to permit
the deferred tax assets to be realized.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

143

No deferred tax assets were recognized in the statement offinancial position for the items presented in the table below,
as it is not probable that sufficient taxable profit will be avail­able in the future:

The tax losses for which no deferred taxes were recognizedexpire as follows:
T 27
in millions of euros

T 26
in millions of euros
2023

2022

Temporary differences

2,715

3,078

Tax losses

11,846

10,745

Tax credits

3

3

14,564

13,826The utilization of tax losses and tax credits for which no de­ferred tax assets have been recognized to date resulted in a
reduction of the current tax expense in the reporting year of
EUR 4 million (previous year: EUR 7 million).

2023

2022

Within one year

46

37

Later than one year
and no later than two years

6264

Later than two years
and no later than three years

58

68

Later than three years
Without expiry date

191

440

11,48910,136

11,846

10,745

Deferred tax liabilities are recognized on temporary differ­ences relating to investments in subsidiaries if these are ex­pected to reverse in the following year due to planned divi­
dend distributions. No further deferred tax liabilities wererecognized on temporary differences in this connection as it
is not probable that the temporary differences will reversein the foreseeable future. As of the reporting date, retained
profits of subsidiaries amount to EUR 8,051 million (previ­
ous year: EUR 8,244 million). If these profits are distributed,
this could lead to an income tax or withholding tax expenseat Robert Bosch GmbH or at the level of intermediate hold­ing entities.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

144

Deferred taxes recognized in other comprehensive income in
the fiscal year are presented in the following table:
T 28
in millions of euros

The basis for the expected income tax expense is the Ger­man tax rate of 30 percent (previous year: 30 percent). The
difference between expected and disclosed income tax­expense is attributable to the following factors:
T 29

2023

2022

Change in equity instruments–5

20

Change in debt instruments–342

Remeasurement of pension provisions

–3

–27
35

–11

Deferred tax income of EUR 0 million (previous year:
EUR 73 mil­lion) is attributable to the change in debt instru­
ments measured at fair value through other comprehensive
income, which was reclassified to profit or loss in the report­
ing year.

in millions of euros
2023

2022

Profit before tax

3,976

2,913

Expected income tax expense

1,193

874

Variances due to tax rate

–274

–178

Non-deductible expenses

182

320

–308

–438

Recognition/measurementof deferred tax assets

407

194

Withholding taxes

238

216

Zero-rated income

Tax effects not related
to the reporting year

23

81

Other differences

–125

6

Income tax expense disclosed

1,336

1,075

Effective tax rate

34%

37%

“Variances due to tax rate” includes effects resulting fromchanged tax rates. In the reporting year, these resulted in de­ferred tax income of EUR 4 million (previous year: EUR 2 mil­lion).
“Other differences” mainly includes effects from tax credits,effects from temporary differences in connection with sharesin subsidiaries, and effects from changes in permanent dif­ferences.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

145

International Tax Reform – Pillar Two Model Rules
In Germany, the country of domicile of Robert Bosch GmbHas the ultimate parent company of the Bosch Group, the act
on ensuring a global minimum level of taxation for corpo­
rate groups (Mindeststeuergesetz: German Minimum Tax
Act) came into force on December 28, 2023. This is based on
the OECD’s model rules on global minimum taxation (Pillar
Two). The provisions of the law will become effective for fis­cal years beginning after December 30, 2023. In addition,
laws were passed in some other countries in 2023 to intro­
duce a qualified domestic minimum tax. For the BoschGroup, the relevant German and foreign regulations are to be
applied for the first time for the 2024 fiscal year. As a result,the Bosch Group was not subject to any tax expense fromglobal minimum taxation in the reporting year.

Due to the high complexity of the regulations and the lateentry into force of the German Minimum Tax Act, the projectto implement the corresponding requirements in the BoschGroup had not yet been completed at the time the consoli­
dated financial statements were released for publication.
The quantitative effects of first-time application of the provi­sions of the German Minimum Tax Act can therefore not yet
be reliably estimated. However, simulations based on avail­able data, including from the previous year, have shown thata top-up tax is likely to be incurred in a few cases only,
and that potential payments for the top-up tax are unlikely
to be significant. Nevertheless, as the simulations carriedout were not able to take into account all the adjustments­required by law, it cannot be ruled out that the actual amountof top-up tax may be higher than currently assumed.

In accordance with the regulations on global minimum taxa­
tion, a corporate group must pay a top-up tax for those coun­tries in which its operating units/entities based there achieve
an aggregate effective tax rate of less than 15 percent calcu­
lated in accordance with the regulations of the German Min­
imum Tax Act. The levying of a top-up tax is intended to en­sure that the minimum tax rate of 15 percent is reached ineach country.

With regard to the recognition of deferred taxes, use is madeof the exemption in IAS 12, which does not require deferredtaxes to be recognized in connection with the global mini­
mum taxation rules.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

146

Notes to the statementof ­financial position

13 — Personnel expenses and headcountDisclosures on personnel expenses
Personnel expenses break down as follows:

14 — Cash and cash equivalents
T 30

in millions of euros

T 32
in millions of euros

2023

2022

Remuneration

21,98020,297

Bank balances (term up to 90 days)

Social security costs

3,821

3,547

Cash

Post-employment benefit costs

1,020

978

26,821

24,822

2022

7,443

6,459

0

0

7,443

6,459

Disclosures on restricted cash and cash equivalents are pro­vided in note 28 “Statement of cash flows.”

Headcount
T 31

Annualaverage2023

Annualaverage2022

EU countries

221,376

217,499

Rest of Europe

33,536

33,666

Americas53,60647,540Asia, Africa, Australia

2023

120,849

115,106

429,367

413,81115 — Trade receivables
The accounting policies applicable to trade receivables are
explained in note 30 “Additional disclosures on financial in­struments.”
In the reporting year, trade receivables came to
EUR 17,081 million (previous year: EUR 16,528 million). Trade
receivables due in more than one year amounted to
EUR 14 million (previous year: EUR 0 million).
Information about loss allowances on trade receivables iscontained in the credit risk section of note 31 “Capital andrisk management.”

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

147

16 — Other current and non-current financial
assetsT 33
in millions of euros
2023

Securities

up to 1 year

up to 1 year

more than
1 year

3,859

11,991

2,365

11,602

Investments
Bank balances (term of more than 90 days)2022
more than
1 year

2,123

2,003

3,301

65

636

83

Loan receivables

104

14

95

14

Derivatives

132

41

285

33

Receivables from finance leases

37

146

36

147

Sundry other financial assets

389

158

386

139

7,822

14,5383,803

14,021The securities classified as current assets are listed securi­ties with a residual term of less than one year as well as­securities which are intended for sale within a year.

obligations to members of the workforce and bank guaran­
tees. Fund units equivalent to at least the value of the claims
were pledged as collateral.

Non-current securities consist of interest-bearing and othersecurities, investment funds, and shares. In the reporting
year, shares and investments in corporations with a fair valueof EUR 1,423 million (previous year: EUR 1,256 million) were
sold. Related to this, an amount of EUR 165 million (previous
year: EUR 398 million) was reclassified from the reserve from­financial instruments to earned profit. Disposals of invest­
ments in corporations are carried out based on business-­
policy decisions.

The bank balances are partly invested as secured deposits in
tri-party repo transactions. As of the reporting date, the se­cured deposits have a carrying amount of EUR 1,100 million(previous year: EUR 0 million). The bank provides collateralof the same amount in the form of securities.

The pledged securities have a carrying amount of
EUR 1,609 million (previous year: EUR 1,366 million). The
pledged securities satisfy the legal requirement to secure

Disclosures on loss allowances on loan receivables, sundry
other financial assets, and finance lease receivables are con­tained in the section on credit risks in note 31 “Capital andrisk management.”
Note 32 “Leases” contains additional disclosures on receiv­
ables from finance leases.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

148

17 — Contract assets
In accordance with IFRS 15, any performance surpluses
at contract level are presented as a contract asset. The asset
constitutes the Bosch Group’s right to consideration in­exchange for goods or services it has transferred to the­customer.

The contract assets from revenue recognition over time pre­sent the excess of the Bosch Group’s performance, pre­sented as sales revenue, over consideration already received
from the customer. At the point in time when control is trans­ferred to the customer, contract assets from development
work have to be disclosed for all separate consideration to
be subsequently reimbursed by the customer for separately
commissioned research and development work.
T 34

in millions of euros
2023
up to 1 year2022
more than
1 yearup to 1 year

more than
1 yearFrom revenue recognition over time

676

41

562

9

From development work

500

654

444

558

1,176

695

1,006

567

18 — Other current and non-current assets
T 35
in millions of euros
2023

Prepaid expenses
Receivables from tax authorities (without income tax receivables)
Deferred consideration to customers
Sundry other assets

2022

up to 1 year

more than
1 yearup to 1 year

more than
1 year

279

101

257

81

1,788

64

1,718

62

108

331

112

432

453

512

335

296

2,628

1,008

2,422

871

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

149

19 — Inventories
Inventories include raw materials, consumables, and sup­plies; work in process, finished goods, and merchandise;and prepayments. Inventories are stated at purchase cost or
cost of conversion using the average cost method, or at net
realizable value if lower. In addition to direct cost, cost of
conversion includes an allocable portion of materials andproduction overheads as well as production-related depre­
ciation that can be directly allocated to the production­process. Appropriate allowance is made for risks of slow-­moving goods or obsolescence associated with holding andselling inventories.
In the Mobility Solutions business sector, development cost
incurred for research and development work separately
commissioned and separately charged is recognized as workin process under inventories until the date when control istransferred (revenue recognition at a point in time), and not
as research and development cost through profit or loss.
This development work in process is generally measured on
the same basis as all other work in process, except thatno allowances for slow-moving goods or obsolescence areapplied.

Inventories break down as follows:
T 36
in millions of euros
2023

2022

Raw materials, consumables,and ­supplies

5,879

6,390

Work in process

3,377

3,635

Finished goods and merchandise

5,842

6,378

86

125

15,184

16,528Prepayments

In the reporting year, the change in impairment losses of
EUR 31 million was recognized as an expense in profit orloss (previous year: EUR 140 million). No inventories were
pledged as collateral.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

150

20 — Property, plant, and equipment
Property, plant, and equipment are measured at cost lessdepreciation and, if necessary, impairment losses. Depreci­
ation is charged on a straight-line basis over the economic
useful life.
Depreciation is based on the following ranges of useful lives:
T 37

Useful life

Buildings

10–50 years

Plant and equipment

8–11 years

Other equipment, fixtures, and furniture

3–25 years

In accordance with IAS 36 Impairment of Assets, impairment
losses are recorded on property, plant, and equipment if
their recoverable amount has fallen below their carrying
amount. Impairment losses are reversed if the reasons forthe impairment loss from previous years no longer apply.
­Repair costs are recognized in the income statement.

In accordance with IAS 23 Borrowing Costs, borrowing
costs are capitalized if they are directly attributable to theacquisition, construction, or production of a qualifying­asset. All other borrowing costs are expensed in the period
in which they are incurred. Write-downs on capitalized bor­
rowing costs are reported in cost of sales. In the reporting
year, borrowing costs of EUR 15 million (previous year:
EUR 9 million) were capitalized. The underlying borrowing
rate is 3.0 percent (previous year: 2.0 percent).
Government grants are recognized pursuant to IAS 20 only
if it is sufficiently certain that the assistance will be granted
and the conditions attached to the assistance are satisfied.
Grants related to assets are deducted in order to calculate
the carrying amount of the asset.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

151

in millions of euros

Gross values 12/31/2021
Transitional effects from IAS 29
Gross values 1/1/2022
Changes in consolidated group

Plant andequipment

Otherequipment,
fixtures, andfurniture,leasedproducts

Prepayments
and assets
under construction

Total

35

28,37813,142

2,673

56,729

181

1

810

70

20

1,082

12,68236

29,18813,212

2,693

57,811

35

63

–1

189
4,896

Land,
buildings
belongingto operating
assetsInvestment
property

12,50192

Additions

319

2

961

921

2,693

Reclassifications

426

–1

1,215

397

–2,037

Disposals

–143

–9

–1,235–770–40–2,197

Exchange-rate differences

45

1

324

39

5

414

Assets held for sale

–18

–54

–20

–7

–99

Gross values 12/31/2022

13,40329

30,434

13,842

3,306

61,014

Depreciation 12/31/2021

5,332

15

19,865

10,08330

35,325

Transitional effects from IAS 29
Depreciation 1/1/2022
Changes in consolidated group
Additions
Reclassifications

88

1

656

51

–4

792

5,420

16

20,521

10,134

26

36,117

8

29

51

384

1,914

1,170

6

8

–51

44

–1

–1,024–728–8Disposals–83

Write-ups–1

Exchange-rate differences

15

Assets held for sale

–18

–6

88

–1
1

3,474
–1,849
–2

229

26

–54

–20

–7

–99

271

Depreciation 12/31/2022

5,733

11

21,563

10,67716

38,000Carrying amounts 12/31/2022

7,670

18

8,871

3,165

3,290

23,014

CONTINUED NEXT PAGE

Annual report 2023

T 38

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

152

T 38
in millions of euros

Gross values 1/1/2023
Changes in consolidated groupLand,
buildings
belongingto operating
assetsInvestment
property

13,40329

86

Plant andequipment

Otherequipment,
fixtures, andfurniture,leasedproducts

Prepayments
and assets
under construction

Total

30,434

13,842

3,306

61,014

167

37

14

304
5,499

Additions

213

1,193

854

3,239

Reclassifications

184

8

1,419

497

–2,108

Disposals

–134

–1

–1,316–704–48–2,203

Exchange-rate differences

–198

–545

–199

–51

–993

Assets held for sale

–89

– 65

–27

–1

–182

Gross values 12/31/2023

13,46536

31,287

14,3004,351

63,439Depreciation 1/1/2023

5,733

11

21,563

10,67716

38,000Changes in consolidated group

10

66

25

4

105

Additions

368

1,886

1,158

9

3,421

Reclassifications

–10

13

–5

–2

4

Disposals–91–1,097– 667

Write-ups

–39

–19

–4

–1,855

Exchange-rate differences

–90

–365

–169

Assets held for sale

– 68

– 65

–27

–1

–161

–1

– 63
– 624

Depreciation 12/31/2023

5,813

15

21,982

10,98825

38,823Carrying amounts 12/31/2023

7,652

21

9,305

3,312

4,326

24,616

Annual report 2023

CONTINUED FROM PAGE 151

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

153

The depreciation charge for the reporting year contains thefollowing impairment losses:– Land and buildings: EUR 3 million (previous year:
EUR 23 million),– Plant and equipment: EUR 1 million (previous year:
EUR 19 million),– Other equipment, furniture, and fixtures, assets underconstruction: EUR 2 million (previous year: EUR 17 mil­lion).
The corresponding expenses are recognized in functionalcosts.
Purchase commitments for items of property, plant, andequipment amounted to EUR 1,489 million (previous year:
EUR 1,325 million); there were no restrictions on title in­either the reporting year or the previous year. Government
grants for assets of EUR 58 million (previous year: EUR 25 mil­lion) were deducted from the additions in the reporting year.
Investment property comprises rented land and buildings
which were measured at depreciated cost in accordancewith IAS 40 Investment Property. Measured at fair value, theportfolio comes to EUR 29 million (previous year: EUR 24 mil­lion). The fair values were calculated at corporate headquar­ters by the competent specialist department. The residential
property in Germany and Asia allocated to level 3 of the fairvalue hierarchy pursuant to IFRS 13 Fair Value Measurement
is measured using the discounted earnings or comparative
method based on the ImmoWertV [Verordnung über die
Grund­sätze für die Ermittlung der Verkehrswerte von Grundstücken: Ordinance on principles to assess the market valueof land] and taking the current fabric and market values of
the individual properties into account. Rental income frominvestment property came to EUR 5 million (previous year:
EUR 3 million), maintenance expenses totaled EUR 2 million(previous year: EUR 2 million).

21 — Intangible assets
Acquired and internally generated intangible assets are rec­ognized pursuant to IAS 38 Intangible Assets if a future eco­nomic benefit will flow to the entity from the use of the asset
and the cost of the asset can be reliably determined. Theseassets are generally carried at cost and amortized using thestraight-line method over their economic useful life. The use­
ful life of acquired and internally generated intangible assets
is generally four years. The useful life of intangible assets
recognized in the context of business combinations is gener­
ally between ten and twenty years, in exceptional cases up
to fifty years.
Goodwill is tested annually for impairment. Intangible as­
sets subject to wear and tear are only tested for impairment
if there is an indication that they may be impaired. Impair­ment losses are recorded in accordance with IAS 36 if therecoverable amount of the asset concerned has fallen below
its carrying amount. Impairment losses are reversed if thereasons for the impairment loss from previous years nolong­er apply.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

154

in millions of euros

Gross values 12/31/2021
Transitional effects from IAS 29

Acquiredintangible
assets(without
goodwill)

9,039

Acquired
goodwillInternallygeneratedintangible
assets

Total

5,834

1,693

16,566

1,693

16,569

2

1

9,041

5,835

Changes in consolidated group

368

900

29

1,297

Additions

328

319

647

Disposals

–76

–295

–371

Exchange-rate differences

23

24

1

48

Gross values 12/31/2022

9,684

6,759

1,747

18,190

Amortization 12/31/2021

5,595

808

1,013

7,416

Gross values 1/1/2022

3

Assets held for saleTransitional effects from IAS 29
Amortization 1/1/2022
Changes in consolidated group

1
5,596

1
808

11

1,013

7,417

17

28

Additions

717

233

950

Disposals

–171

–293

–464

Exchange-rate differences

5

–1

1

5

Amortization 12/31/2022

6,158

807

971

7,936

Carrying amounts 12/31/2022

3,526

5,952

776

10,254

Assets held for sale

CONTINUED NEXT PAGE

Annual report 2023

T 39

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

155

T 39
in millions of euros
Acquiredintangible
assets(without
goodwill)

Acquired
goodwillInternallygeneratedintangible
assets

Total

9,684

6,759

1,747

18,190Changes in consolidated group

501

721

5

1,227

Additions

335

0

285

620

Disposals

–138

–3

–401

–542

Exchange-rate differences

–138

–54

1

–191

Gross values 1/1/2023

Assets held for sale00Gross values 12/31/2023

10,244

7,423

1,637

19,304

Amortization 1/1/2023

6,158

807

971

7,936

1

8

Changes in consolidated group7

Additions

710

239

949

Disposals

–144

–401

–545

Exchange-rate differences

–99

1

–99

–1

Assets held for sale
Amortization 12/31/2023

6,632

806

811

8,249

Carrying amounts 12/31/2023

3,612

6,617

826

11,055

Amortization of internally generated and acquired intangible
assets is recognized in functional costs.

The amortization charge for the reporting year contains thefollowing impairment losses:– Acquired intangible assets (without goodwill):
EUR 0 million (previous year: EUR 1 million),– Internally generated intangible assets: EUR 1 million(previous year: EUR 12 million).

Annual report 2023

CONTINUED FROM PAGE 154

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

156

The impairment losses recognized on internally generated
intangible assets relate to capitalized development projects
and are attributable to the Energy and Building Technology
business sector. They are recognized in research and devel­
opment cost. The impairment losses were charged because
an economic benefit was no longer expected.
Goodwill from business combinations represents the differ­ence between the purchase price on the one hand and the
proportionate share of equity at acquisition-date fair valueon the other. Goodwill is allocated to the divisions (cash-­generating units) that are expected to benefit from the syner­gies of the business combination and is subjected to an an­
nual impairment test. In accordance with the requirementsof IAS 36, an impairment loss is recorded when the recover­able amount is below the carrying amount of the net assets
of a cash-generating unit (including the goodwill allocated toit). An asset’s recoverable amount is the higher of its fairvalue less costs of disposal and its value in use. The recover­able amount for all cash-generating units is determinedbased on fair value less costs to sell, which is derived fromthe future cash flows. Fair value is largely determined by thepresent value of the perpetual annuity, which in turn is in­fluenced above all by the applicable discount rate and thegrowth rate assumed. This is based in particular on a riskfree interest rate, a market-risk premium, as well as businesssector-specific beta factors and leverage ratios. Fair valueless costs to sell is assigned to level 3 of the fair value hierar­
chy in accordance with IFRS 13. The cash flows are deter­
mined by reference to business plans with a planning periodof five years and based on the medium-term planning ap­
proved by management. Planning reflects expectations con­cerning ­future market shares, growth in the respective mar­kets, technological change, and the profitability of products
and services. It is based on past experience and the group’s
internal assessments as well as market studies, if available.

This is used to derive the factors relevant for determiningf­ uture cash flows, such as EBIT, change in net working capi­tal, and planned capital expenditure. Cash flows after thedetailed planning period are determined by reference toan expected long-term growth rate. In the Mobility Solutions
business sector, the expected far-reaching technologicalchange from combustion technology to electrification andthe associated change in the market and competitive land­
scape are important factors influencing the business. While
it is assumed that sales revenue in the combustion engine
business will decline from the middle of the decade, it isalso assumed that more than half of all new passenger cars
will be electrified by 2030, and that this will generate cor­
responding sales revenue. Electrification and the use of re­newable energy will also become considerably more import­
ant in the Energy and Building Technology business sector.
Despite the expected technological changes, the effects ofwhich are taken into account in medium-term planning, there
were no significant changes to the planning assumptions in
the reporting year, meaning that the growth rate in particularremained unchanged compared with the previous year.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

157

The parameters used in impairment testing are presented in
the following table:
T 40
Percentage figures
Mobility
Solutions

Industrial
Technology

Consumer
Goods

Energy and Building
Technology

2023

2022

2023

2022

2023

2022

2023

2022

Growth rate

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

After-tax discount rate

10.7

10.2

10.4

10.0

9.6

9.2

10.0

9.2

A risk-free interest rate of 2.8 percent (previous year: 2.0 per­cent) and a market-risk premium of 6.5 percent (previous
year: 6.5 percent) are assumed. The standard tax rate used is
30 percent (previous year: 30 percent).
In both the reporting year and the previous year, the annual
impairment test did not give rise to any need to recognize an
impairment loss on goodwill.
The sensitivity analysis of the cash-generating units to which
goodwill is allocated considered the following assumed
changes: an increase in the after-tax discount rate of 0.5 per­centage points, a reduction in the growth rate of 0.5 percent­age points, and a reduction in EBIT of 5 percent. An increasein the discount rate would have led to an impairment loss of
EUR 49 million in the Building Technologies division (Energy
and Building Technology business sector). A 0.5 percentage-­point reduction in growth rate would have resulted in an im­
pairment loss of EUR 4 million. A decrease in EBIT would
have resulted in an impairment loss of EUR 40 million. The
goodwill recognized in the Building Technologies divisionin 2021 and 2023 related to its integrator business.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

158

Goodwill of EUR 6,617 million (previous year: EUR 5,952 mil­lion) is attributable to the divisions (cash-generating units)
as follows:
T 41
in millions of euros
Division

Reportable segment

2023

2022

Powertrain Solutions

Mobility Solutions

384

400

Automotive Aftermarket

Mobility Solutions

358

371

Cross-Domain Computing Solutions

Mobility Solutions

126

123

Automotive Electronics

Mobility Solutions

122

75

Drive and Control Technology

Industrial Technology

2,504

2,074

Power Tools

Consumer Goods

431

428

BSH Hausgeräte GmbH

Consumer Goods

548

548

Building Technologies

Energy and Building Technology

883

673

Home Comfort (formerly Thermotechnology)

Energy and Building Technology

993

997

Bosch Global Service Solutions

Energy and Building Technology

145

137

123

126

6,617

5,952

Other

The changes in goodwill are attributable to business com­binations and currency effects. Further information about
entities acquired is contained in the section on businesscombinations in note 6 “Consolidation.”

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

159

22 — Trade payables
T 42
in millions of euros

Trade payables
Notes payable

2023

2022

12,19010,72915

32

12,205

10,761The Bosch Group has concluded reverse factoring agree­ments for a share of the trade payables amounting to
EUR 647 million (previous year: EUR 522 million). Under
these programs, suppliers can assign their receivables from
Bosch Group companies to the commercial bank offering the
program in return for a discount and thus receive the dis­counted invoice amount early. The companies of the BoschGroup settle the invoice amount with the bank on the origi­
nally agreed due date. Due to the connection with the oper­
ating business, it was decided not to reclassify the cor­
responding liabilities to financial liabilities.
Trade payables due in more than one year came to EUR 56 mil­lion (previous year: EUR 0 million).
Further disclosures on trade payables are contained in thesection on liquidity risks in note 31 “Capital and risk manage­
ment.”

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

160

23 — Other current and non-current financial
liabilities
T 43
in millions of euros
2023

Bonds

2022

up to 1 year

more than
1 year749

6,797

Schuldschein loans, registered bonds

up to 1 year

more than
1 year

1,992

3,199

500

3,198

118

328

75

Liabilities to banks

194

Commercial papers

588

Loans

76

Derivatives

304

30

182

6

Sundry other financial liabilities

861

222

770

137

2,772

10,399

2,210

5,457

The line item “bonds” contains bonds with a nominal value of
EUR 6.5 billion and bearing interest between 1.75 percent
and 4.375 percent as well as U.S. private placements witha nominal value of USD 1.2 billion and bearing interest­bet­ween 6.19 percent and 6.42 percent. The bonds’ average
residual term to maturity is 9.59 years, compared with
5.96 years the previous year. The average residual term tomaturity of the U.S. private placements is 8.38 years.
The financial liabilities of the Bosch Group additionally in­clude schuldschein loans and registered bonds with a nomi­
nal value of EUR 3,203 million and bearing interest between
1.028 percent and 4.893 percent. The average residual term
to maturity of the schuldschein loans and registered bonds
is 5.00 years, compared with 5.27 years the previous year.

328
33

102

49

The average interest rate for the bonds, schuldschein loans,and registered bonds has risen to 3.358 percent from theprevious year’s rate of 2.353 percent. The average interest
rate for the U.S. private placements is 6.313 percent.
Sundry other financial liabilities also include financial liabil­ities to members of the workforce.
Further disclosures on other financial liabilities are con­tained in the section on liquidity risks in note 31 “Capital andrisk management.”

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

24 — Contract liabilities

Annual report 2023

161

In accordance with IFRS 15, existing performance obliga­
tions to customers at contract level for which consideration
has been or will be received must be recognized as contract
liabilities.
Contract liabilities break down as follows:
T 44
in millions of euros
2023

From revenue recognition over time
From development work
From other items

Contract liabilities from development work include advancepayments from customers for separately contracted re­search and development work. Contract liabilities fromother items mainly include advance payments from cus­
tomers for deliveries of goods and other outstanding per­formance obligations.

2022

up to 1 year

more than
1 yearup to 1 year

more than
1 year

70

60

35

53

1,132

453

1,050

419

618

323

559

334

1,820

836

1,644

806

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

162

25 — Other liabilities, other provisions,and contingent liabilities
Other liabilities
T 45
in millions of euros
2023
up to 1 year2022
more than
1 yearup to 1 year

Accruals in the personnel area

3,143

3,190

Accruals in the sales and marketing area

2,654

2,809

Other accruals

1,280

1,244

927

824

Tax liabilities (without income taxes)

more than
1 yearDeferred income

66

19

73

17

Sundry other liabilities

348

32

366

28

8,418

51

8,506

45

The accruals in the personnel area mainly relate to vacationand salary entitlements as well as accrued special pay­ments, while those in the sales and marketing area mainlypertain to bonus and commission payments.

Other provisions
Pursuant to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets, other provisions are recognized if there is acurrent obligation from a past event which will probably leadto an outflow of resources embodying economic benefits inthe future. In addition, it must be possible to reliably esti­
mate the amount of this outflow. Other provisions are mea­
sured at full cost. Provisions due in more than one year arestated at their discounted settlement amount if the effect ismaterial. Discounting is based on a current pre-tax market
interest rate with matching maturities. Individual provisions
in the personnel area are recognized and measured in ac­
cordance with IAS 19 Employee Benefits.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

163

A breakdown of other provisions is presented in the follow­
ing table:
T 46
in millions of euros
2023

Tax provisions (without income taxes)
Provisions in the personnel area

2022

up to 1 year

more than
1 yearup to 1 year

more than
1 year

22

21

31

22

990

2,658

1,008

2,720

Provisions in the sales and marketing area

2,281

1,555

2,178

1,452

Sundry other provisions

1,883

1,090

1,633

2,122

5,176

5,324

4,850

6,316

Provisions in the personnel area relate to obligations frompersonnel adjustment measures, long-service bonuses,
early phased retirement, and from other special benefits.
Provisions in the sales and marketing area mainly take ac­count of losses from delivery and warranty obligations, in­cluding risks from recall, exchange, and product liability

cases. Sundry other provisions are recognized, among otherthings, for risks from purchase commitments, environmental
protection obligations, litigation risks, and legal risks.
Other provisions developed as follows:
T 47

in millions of euros

1/1/2023

Changes in
consolidatedgroup

Amountsused

Amounts
reversed

Amounts
added

Other
changes

12/31/2023

53

1

–11

–9

10

–1

43

Provisions in the personnel
area

3,728

0

–756

–337

1,039

–26

3,648

Provisions in the sales
and marketing area

3,630

6

–1,250

–522

2,038

– 66

3,836

Sundry other provisions

3,755

14

–433

–1,091

724

4

2,973

11,16621–2,450–1,9593,811–89

10,500

Tax provisions(without income taxes)

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

164

Additions include an amount of EUR 254 million relating to
the reversal of the discount (previous year: EUR 21 million).
Other changes include effects from currency translation andreclassification to liabilities directly associated with assets
held for sale.
With respect to emissions from diesel vehicles, various auto­makers are being investigated by German and non-German
authorities. In occasional cases, these investigations also
concern Bosch in its capacity as a supplier of engine control
units. With respect to the events concerning various auto­makers’ diesel vehicle emissions, Bosch is still a defendantin class and individual civil-law actions in a few countries.
In 2023, Bosch was able to successfully conclude many­proceedings relating to diesel emissions, including several
class actions against Bosch in the United States and theNetherlands. In none of the proceedings concluded does
Bosch acknowledge the validity of the claims brought for­ward, nor does it concede any liability. The proceedings andactions still pending, as well as possible further ones, stillpose risks. Taken together, however, we now regard them as
more minor than previously. In all these proceedings, Boschis asserting its rights.
Bosch is also engaged in compensation discussions withcustomers in respect of potential civil-law claims associatedwith closed antitrust proceedings. Investigations by the anti­
trust authorities against Bosch are continuing in certain
countries. The French antitrust authority has completed its
investigations of BSH Hausgeräte in France for a possible­violation of antitrust law and has notified BSH France of theallegations made as part of the ongoing proceedings. As partof a settlement, the authority and BSH have reached anagreement on the scope of a possible fine. The final decision
is expected in the first half of 2024.

On the basis of the facts relating to antitrust law and engine
control units that were available when the consolidated­financial statements were prepared and that the board ofmanagement has assessed, the board of management be­lieves that sufficient precautions have been taken in the formof provisions for legal risks. For the various legal risks out­
lined above, provisions throughout the group amount to
EUR 386 million (previous year: EUR 505 million).
The increased demand from the automotive industry and thehigh demand for semiconductors from the consumer elec­
tronics, IT, and communications sectors have in recent years
caused bottlenecks in the global supply of semiconductors,
which were exacerbated by disruptions of production at­certain semiconductor manufacturers. The semiconductor
bottlenecks were largely overcome in the course of the re­porting year. The commercial risk still existing as of the­reporting date was assessed taking into account the relevant
assumptions and estimates and has been reflected in the
consolidated financial statements. The same applies tothe commercial risk from further delivery obligations that
may lead to compensation claims by customers. Applying
IAS 37.92, no further disclosures are made.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

165

Contingent liabilities
No provisions were recognized for the following contingent
liabilities, as it is more likely than not that they will not occur:
T 48
in millions of euros
2023

2022

Contingent liabilities from guarantees

26

130

Contingent liabilities to tax authorities

48

20

Other contingent liabilities

14

22

88

172

26 — Provisions for pensions and similar
obligations
Pursuant to IAS 19 Employee Benefits, pension provisions arerecognized using the projected unit credit method, taking­estimated future increases in pensions and salaries into
­account, among other things. The expense from unwinding
the discount on pension provisions is reported in the finan­cial result under interest expenses.
The workforce of the companies included in the consoli­
dated financial statements have certain rights in connection
with the company pension scheme, depending on the con­ditions existing in the various countries. The benefit obliga­
tions include both currently claimed benefits and future ben­efit obligations of active associates or associates that haveleft the company.
The group’s post-employment benefits include both defined
contribution plans and defined benefit plans. In the case ofdefined contribution plans, the company pays contributions
to state or private pension or insurance funds, either basedon legal or contractual provisions or on a voluntary basis.
The payment of these contributions does not give rise to any

further payment obligations for the company. The defined
benefit plans are funded or unfunded pension systems, aswell as systems financed by insurance premiums.
Plan assets are invested based on the underlying defined
benefits granted. Asset-liability studies are performed re­g­ularly for this purpose. The funding status is an important
controlling variable in this context. Bosch continuously mon­itors it with the involvement of external experts. The invest­
ment strategy is derived from the corresponding governanceguidelines. External asset managers are tasked with invest­
ing the assets.
The major defined benefit plans and post-employment med­
ical-care plans operated by the Bosch Group are described
below. These plans are subject to actuarial risks such as lon­
gevity risks, interest fluctuation risks, and capital market
risks.
Germany
The company pension scheme (“Bosch pension plan”), intro­
duced on January 1, 2006, is a defined contribution planwith salary-based contributions for accumulating retirement
benefits. The Bosch pension plan is partly funded via an­external pension fund, Bosch Pensionsfonds AG. The valueof the assets of Bosch Pensionsfonds AG is offset against thepension obligation calculated using the projected unit credit
method.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

166

During the vesting period, employer and employee contribu­
tions are added to the assets of Bosch Pensionsfonds AG
up to the tax-allowed ceiling in accordance with Sec. 3 No. 63
EStG [Einkommensteuergesetz: German Income Tax Act].
Contributions that exceed the tax-allowed ceiling are allo­cated to the unfunded obligation. Irrespective of whether
contributions are allocated to Bosch Pensionsfonds AG or to
direct commitments, the amount of the total entitlement de­velops in line with the performance of the Bosch pension
fund. Entitlements to retirement benefits from commitments
predating the introduction of the Bosch pension plan weretransferred to the Bosch pension plan. For a constantly de­creasing number of associates in the vesting period, a transi­
tional arrangement guarantees a fixed rate of return on thedefined benefit obligation.
On reaching retirement, or in the event of death, the earned
benefits are paid out in the form of a lump-sum payment, ininstallments, or as a lifelong annuity, depending on the ben­eficiary’s choice. For benefits triggered from January 1, 2016,
onward, a fund-based retirement pension payment is madethrough Bosch Pensionsfonds AG . Owing to the low like­lihood of claims being made against Bosch, the Bosch pen­sion plan is treated as a defined contribution plan from the
beginning of the pension phase.
Japan
The majority of the pension obligations are corporate pen­sion plans (CPPs) in the form of funded career average­pension plans. The benefits are based on salary-dependent­contributions that are subject to interest. The rate of return
depends on the structure of the pension plan.

There are also pension obligations from unfunded retire­
ment allowance plans, the benefits of which are based on
years of service and final salary.
All benefits are paid out as lump-sum payments on termina­
tion, death, or reaching retirement age. In some CPPs, asso­
ciates can draw pension payments after a certain period ofservice.
Switzerland
Bosch has a funded pension plan. The Bosch pension plan isorganized as a foundation. All the demographic and financial
risks are borne by the foundation and regularly assessed by
the foundation’s board of trustees. In the case of a deficit,
adjustments can be made such as a change in the pension
factors or an increase in future contributions.
Pension plans are governed by the BVG [Bundesgesetz überdie berufliche Alters-, Hinterlassenen- und Invalidenvorsorge:
Swiss Pension Fund Law]. All benefits are defined by law,and the BVG stipulates the minimum benefits to be paid. The
Bosch pension plan meets all legal requirements.
Both employer and employees make contributions to the
Bosch pension plan. The benefits are paid out either as alump sum or a lifelong annuity.
United Kingdom
Bosch finances a closed final-salary-based defined benefit
plan. The pension obligation is funded via a trust association
which is legally independent of Bosch, and which is oper­
ated in accordance with the law. The trustees are required tocomply with the legal requirements. There is a restructuring
plan that is expected to be completed in 2024.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

167

The benefits earned are paid out on reaching retirement age,or in the event of occupational disability or death.
United States
Bosch operates the Bosch pension plan as well as othersmaller defined benefit and funded pension plans. These
were merged into one plan, the Bosch pension plan, at theend of the reporting year; at the same time, the termina­tion of the Bosch pension plan was resolved and the cor­
responding process initiated. The termination is subject toapproval by the U.S. Pension Benefit Guaranty Corporation.
The termination process is expected to take between 18 and24 months.
This does not affect unfunded pension plans that provide
benefits for certain members of management or for mem­bers of the Bosch pension plan whose income lies above thestatutory contribution assessment basis. The benefits de­pend on age, years of service, and salary, and are paid out onreaching retirement age or in the event of death. The pension
plans are closed to new entrants.
In addition, Bosch finances unfunded plans for post-employ­ment medical care. The level of benefits and the contribu­
tions for pensioners vary depending on location, age, andyears of service. The benefits include healthcare benefits
and life assurance contributions for pensioners and theirspouses. The plans are also closed to new entrants.
Actuarial calculations and estimates are made for all defined
benefit plans. Besides assumptions about life expectancy,
and taking index-linked developments into account, the cal­culations are based on the following parameters, which varyfrom one country to another depending on local economic
circumstances:

T 49
Percentage figures
GermanyJapan

Switzerland

United Kingdom

United States

Total

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

3.6

4.1

1.3

1.1

1.4

2.1

4.5

4.8

4.7

4.9

3.7

4.2

Projected salaries

3.0

3.0

2.9

2.9

1.9

1.9

3.0

3.1

3.5

3.5

3.1

3.1

Projected pensions

2.2

2.6

n.a.

n.a.

0.0

0.0

2.8

2.9

n.a.

n.a.

2.0

2.4

Discount factor

n.a. Not applicable

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

168

To determine the discount factor in the euro zone, reference
was made to corporate bonds rated AA by at least one lead­ing rating agency as of the reporting date.

The pension trend (projected pensions) for inflation-linked
pension payments is based on the development of coun­try-specific, recognized indices.

Projected salaries are future salary increases estimated on
the basis of the economic situation and inflation, among
other factors.

The pension plans are measured using the current mortality
tables as of December 31 of the fiscal year concerned. As of
December 31, 2023, the following mortality tables are used:
T 50

Germany

Heubeck 2018G mortality tablesJapan

2020 MHLW Standard Table

Switzerland

BVG 2020 with CMI_2016 improvement factors, LTR of 1.5 percent

United Kingdom

116 percent for males, 108 percent for females of S3PXA tables with 2019 CMI projections
and 1.5 percent long-term improvement

United StatesPri-2012, projected by MP2021; aggregate for some plans, collar adjustments for others

As of December 31, 2022, the following mortality tables wereused in the key countries:
T 51

Germany

Heubeck 2018G mortality tablesJapan

2020 MHLW Standard Table

Switzerland

BVG 2020 with CMI_2016 improvement factors, LTR of 1.5 percent

United Kingdom

116 percent for males, 108 percent for females of S3PXA tables with 2019 CMI projections
and 1.5 percent long-term improvement

United StatesPri-2012, projected by MP2021; aggregate for some plans, collar adjustments for others

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

169

For the key regions, the present value of the defined benefit
obligation can be reconciled to the provision as follows:
T 52
in millions of euros
Present
value of theobligationPlanassets

14,565–5,523

0

0

9,042

165

–237

2

96

26

Switzerland

918–1,11127

169

3

United Kingdom

233

–289

56

0

0

United States

1,500–1,415

106

0

191

645

–249

7

1

404

18,026–8,824

198

266

9,666

13,579–4,825

0

0

8,754

Other Unrecognizedassetsasset

Provision

12/31/2023
Germany
Japan

Other
12/31/2022
Germany
Japan

188

–247

4

83

28

Switzerland

810–1,00226

168

2

United Kingdom

222

–272

50

0

0

United States

1,551–1,443

85

–1

192

631

–237

12

2

408

16,981–8,026

177

252

9,384

Other

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

170

The development of the net liability of the defined benefit
obligation is presented in the following table:
T 53
in millions of euros

1/1/2023

Present
value of theobligationPlanassets

16,981–8,026

Other Unrecognizedassets
asset

177

252

Provision

9,384

Pension cost charged to profit or loss
Current service cost
Past service cost

694

694

0

0

Gains/losses from plan settlements not related
to past service cost

–1

Net interest income/expense

693

Other

–1
–322

0

5

1,386

–317

5

376

5

1,074

5

Remeasurement
Return on plan assets (excluding amounts included
in net interest)
Gains/losses arising from changes in demographic
assumptions

–365

–365

1

1

Gains/losses arising from changes in financial­assumptions

374

374

Experience gains/losses

269

269

Other adjustments
644

0

8

8

–365

8

287

CONTINUED NEXT PAGE

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

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Additional information

Consolidated financial statements

Notes to the consolidated financial statements

171

T 53
in millions of euros
Present
value of theobligationPlanassetsOther Unrecognizedassetsasset

Provision

Contributions
Employer

–448

–448
0

Beneficiaries

17

–17

17

–465

–448

Benefits paid1

–941

341

– 600

Special events (plan settlement)

0

0

0

Transfers000Currency translation
Changes in consolidated group

–56

10

4

–2

Changes in other assets
Disposal groups
12/31/2023

1

–45
2

21

21

–9

0

0

0

–9

18,026–8,824

198

266

9,666

1. Including EUR 97 million for transfer payments to Bosch Pensionsfonds at the beginning of the pension phase for payment of a fund-based retirement pension.

Annual report 2023

CONTINUED FROM PAGE 170

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Additional information

Consolidated financial statements

Notes to the consolidated financial statements

172

in millions of euros

1/1/2022

Present
value of theobligationPlanassets

20,089–8,893

Other Unrecognizedassets
asset

294

173

Provision

11,663Pension cost charged to profit or loss
Current service cost

678

678

Past service cost

00Gains/losses from plan settlements not related
to past service cost

–1

–1

Net interest income/expense

252

Other

–128

0

5

929

–123

1

125

1

807

5

Remeasurement
Return on plan assets (excluding amounts included
in net interest)
Gains/losses arising from changes in demographic
assumptions
Gains/losses arising from changes in financial­assumptions
Experience gains/losses

1,255

1,255

3

3

–3,350–3,350– 66– 66

Other adjustments–3,413

1,255

80

80

80

–2,078CONTINUED NEXT PAGE

Annual report 2023

T 54

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Additional information

Consolidated financial statements

Notes to the consolidated financial statements

173

T 54
in millions of euros
Present
value of theobligationPlanassetsOther Unrecognizedassetsasset

Provision

Contributions
Employer

–421

–421
0

Beneficiaries

16

–16

16

–437

–421

Benefits paid1

–830

326

–504

Special events (plan settlement)

0

0

0

Transfers

40

–10

30

Currency translation

119

–129

Changes in consolidated group

31

–15

Changes in other assets
12/31/2022

–2

–12
16

–117
16,981–8,026

177

–117
252

9,384

1. Including EUR 69 million for transfer payments to Bosch Pensionsfonds at the beginning of the pension phase for payment of a fund-based retirement pension.

Annual report 2023

CONTINUED FROM PAGE 172

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Additional information

Consolidated financial statements

174

The plan assets comprise the following components:
T 55
Percentage figures
GermanyJapan

Switzerland

United Kingdom

United States

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Cash and cash equivalents

2

4

0

0

1

3

5

1

2

0

Equity instruments

50

52

30

29

27

26

0

24

0

10

of which Europe

63

62

10

10

43

42

0

27

0

14

of which North America

17

18

39

38

38

36

0

59

0

68

of which Asia Pacific

12

11

51

52

6

5

0

14

0

9

of which emerging markets

7

8

0

0

12

13

0

0

0

9

of which other

1

1

0

0

1

4

0

0

0

0

Debt instruments

44

41

65

66

28

29

92

72

98

90

of which government bonds

26

35

75

75

21

21

46

94

28

42

of which corporate bonds

73

64

22

22

77

55

54

6

71

56

of which other debt instruments

1

1

3

3

2

24

0

0

1

2

Property

3

3

0

0

34

37

0

0

0

0

of which owner-occupied

85

97

0

0

0

0

0

0

0

0

of which non-owner-occupied

15

3

0

0

100

100

0

0

0

0

Insurance

0

0

5

5

0

0

3

3

0

0

Other

1

0

0

0

10

5

0

0

0

0

Quoted prices in an active market are available for equity in­struments. For the other classes of assets, there are in mostcases no quoted prices in an active market. The “other” line
item mainly contains investments in infrastructure facilities.

Duration and estimated maturities of the pension
obligation
The weighted duration of the pension obligation as of De­
cember 31, 2023, is 10.4 years (previous year: 10.6 years).

Annual report 2023

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175

Estimated maturities of the undiscounted estimatedpension payments
T 56
in millions of euros
2023

2022

Less than one year

923

874

Between one and two years

970

929

Between two and three years

1,046

998

2,939

2,801

The estimated contributions to plan assets in fiscal year
2024 amount to EUR 473 million (previous year: EUR 439 mil­lion).
The estimated benefits to be paid directly in fiscal year 2024
amount to EUR 575 million (previous year: EUR 539 million).

Sensitivity of the defined benefit obligation in relation to actuarial parameters
T 57
Percentage figures
GermanyJapan

Switzerland

United Kingdom

United States

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Increase of 0.25 percentage points

–1.2

–1.2

–1.8

–1.9

–2.7

–2.5

–3.2

–3.2

–2.4

–2.5

Decrease of 0.25 percentage points

1.2

1.3

1.9

1.9

2.9

2.7

3.3

3.3

2.5

2.6

Increase of 0.25 percentage points

n.a.

n.a.

0.8

0.8

0.2

0.2

0.2

0.2

0.0

0.0

Decrease of 0.25 percentage points

n.a.

n.a.

– 0.7

– 0.7

– 0.2

– 0.2

– 0.2

– 0.2

0.0

0.0

Discount factor

Projected salaries

Projected pensions
Increase of 0.25 percentage points

0.6

0.6

n.a.

n.a.

2.6

2.6

1.9

1.9

n.a.

n.a.

Decrease of 0.25 percentage points

– 0.6

– 0.6

n.a.

n.a.

–2.5

–2.5

–1.7

–1.7

n.a.

n.a.

1.9

1.9

n.a.

n.a.

3.1

3.1

4.9

4.9

3.1

3.1

Life expectancy
Increase by one year
n.a. Not applicable

The sensitivity analyses of the defined benefit obligation forthe main actuarial assumptions are based on the same meth­ods as those used for the post-employment benefit obliga­

tions presented in the consolidated statement of financial
position (projected unit credit method). In each case, one
assumption was changed and the other assumptions wereAnnual report 2023

Notes to the consolidated financial statements

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Consolidated financial statements

Additional information

176

left unchanged. This means that possible correlation effects
were not considered.
Defined contribution plans
Defined contribution plans mainly include employee con­tributions to statutory pension schemes and employer con­tributions for the company’s defined contribution plans.
E xpenses for defined contribution plans amounted to­
EUR 1,718 million (previous year: EUR 1,642 million).

27 — Equity
The issued capital of EUR 1,200 million and capital reserveof EUR 4,557 million correspond with the items of the state­ment of financial position disclosed by Robert Bosch GmbH.
The issued capital is divided between the shareholders as
follows:
Shareholders of Robert Bosch GmbH
T 58
Percentage figures
Share­
holding

Robert Bosch Stiftung GmbH

93.99

Robert Bosch Industrietreuhand KG

0.01

ERBO II GmbH

5.36

Robert Bosch Familientreuhand KG

0.00

Robert Bosch GmbH (treasury stock)

0.64

Votingrights

93.17
6.83

Retained earnings contain undistributed profits generated in
the past by the entities included in the consolidated finan­cial statements, as well as accumulated other comprehen­sive income. The amount recognized outside profit or loss in
the reporting year under financial instruments increases therevaluation reserve from equity instruments by EUR 34 mil­lion (previous year: decrease of EUR 987 million) and the re­valuation reserve from debt instruments by EUR 384 million(previous year: decrease of EUR 483 million). As in the previ­
ous year, the other changes reported in the consolidated
statement of changes in equity in the reporting year mainlycomprise effects from the disposal of equity instruments.
Retained earnings also include treasury stock of EUR 62 mil­lion (previous year: EUR 62 million).
The board of management proposes to distribute a dividendof EUR 170 million.
Non-controlling interests
The non-controlling interests in the equity of the consoli­
dated subsidiaries mainly comprise the non-controlling­interests in United Automotive Electronic Systems Co., Ltd.,
Shanghai, Bosch Powertrain Systems Co., Ltd., Wuxi, BoschHUAYU Steering Systems Group, Shanghai, all China, andBosch Ltd., Bengaluru, India. Condensed financial informa­tion on the above entities is included in note 6 “Consolida­tion.”

Annual report 2023

Notes to the consolidated financial statements

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Consolidated financial statements

Additional information

177

Other notes
28 — Statement of cash flows
The statement of cash flows presents cash inflows and­outflows from operating activities, investing activities, andfinan­cing activities.
Cash flows are derived indirectly, starting from EBIT. EBIT
is earnings before the financial result and before tax. Cashflows from operating activities are adjusted for non-cash­expenses and income (mainly depreciation and amortizationof non-current assets) and take into account changes inworking capital as well as cash-effective financial expenses,­financial income, and taxes.
Investing activities mainly comprise additions to non-current
assets including leased products, the acquisition and dis­posal of subsidiaries, and changes in securities and time
­deposits with a term to maturity of more than 90 days. Within
the changes in securities and time deposits, cash inflows
and outflows are netted, as these are essentially revolving
asset reallocations. In the reporting year, the investment offinancial liabilities taken out as time deposits with a term of
more than 90 days and in money market funds in particular
led to a cash outflow from investing activities.
Financing activities combine the cash inflows and outflows
from borrowing and repayment of financial liabilities, fromthe repayment of lease liabilities, and from dividends.
Changes in items of the statement of financial position con­tained in the statement of cash flows cannot be directly de­
rived from the statement of financial position, as they havebeen adjusted for exchange-rate effects and changes in the
consolidated group.

Interest and dividends received contains interest received of
EUR 677 million (previous year: EUR 464 million) and income
received from equity investments of EUR 24 million (previ­
ous year: EUR 43 million).
The liquidity reported in the statement of cash flows in­cludes cash and cash equivalents of EUR 7,443 million (pre­vious year: EUR 6,459 million). In the reporting year, cash
and cash equivalents of EUR 103 million (previous year:
EUR 201 million) were subject to restrictions, including
EUR 86 mil­lion (previous year: EUR 185 million) in Russia andin Ukraine as a result of restrictions on capital movementsin the two countries.
Changes in liabilities from financing activities during the­reporting year and the previous year are presented in the­following table:

Annual report 2023

Notes to the consolidated financial statements

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Additional information

Consolidated financial statements

Notes to the consolidated financial statements

178

in millions of euros

Cash-effective changes

1/1/2023

Borrowing

Bonds

1,992

5,576

Schuldschein loans,registered bonds

3,698

Other financial liabilities
Lease liabilities

732

Changes in
consolidated
group

Exchangerate-relatedchangesOtherchanges

12/31/2023

–24

2

7,546

–500
1,565

2,167
8,589

Repayment

Non-cash changes

7,141

1

3,199

–1,387

88

–27

–71

900

–588

32

–27

767

2,351

–2,475

120

–78

699

13,996T 60
in millions of euros
Cash-effective changes

1/1/2022

Borrowing

Bonds

2,011

Schuldschein loans,registered bonds

2,225

1,497

367

545

Other financial liabilities
Lease liabilities

2,066
6,669

2,042

The other changes in lease liabilities mainly comprise the­effects of new or amended lease agreements.

Non-cash changes
Changes in
consolidated
group

Exchangerate-relatedchangesOtherchanges

12/31/2022

–21

2

1,992

–25

1

3,698

Repayment

10

4

732

–590

–194
–5

–3

699

2,167

–830

–5

7

706

8,589

Annual report 2023

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Additional information

179

29 — Segment reporting
Disclosures on operating segments
T 61
in millions of euros
Mobility
Solutions

External sales revenue
Intersegment sales revenue

Industrial
Technology

Consumer
Goods

2023

2022

2023

2022

2023

2022

56,17152,477

7,467

6,944

19,943

21,342

205

193

806

664

468

507

Total sales revenue

56,37652,670

8,273

7,608

20,411

21,849EBIT from operations

2,518

1,813

679

686

896

970

10

–1

3,408

3,411

297

224

1,023

995

6

70

766

710

of which: result from entities included at equity
Amortization and depreciation of intangible assets,right-of-use assets, and property, plant, and equipment
Impairment losses on intangible assets, right-of-use assets,
and property, plant, and equipment
Non-cash expenses (without depreciation and amortization)

18
3,089

2,506

225

255

Non-cash income

1,725

988

80

104

275

151

Additions to property, plant, and equipment

3,799

3,270

410

316

839

845

Net working capital

15,567

15,125

2,795

2,522

6,040

6,310

CONTINUED NEXT PAGE

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Notes to the consolidated financial statements

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Consolidated financial statements

Additional information

Notes to the consolidated financial statements

180

T 61
in millions of euros
Energy and Building
Technology

External sales revenue
Intersegment sales revenue

Other

Consolidation

2023

2022

2023

2022

7,563

6,952

335

353

2023

2022

489

440

201

153

–2,169–1,957

Total sales revenue

8,052

7,392

536

506

–2,169–1,957

EBIT from operations

696

422

76

– 69

of which: result from entities
included at equity
Amortization and depreciation of
intangible assets, right-of-use assets,
and property, plant, and equipment–491,47988,06891,47988,068

4,865

3,822

6

–1

5,007

4,937

8

96

229

Impairment losses on intangible
assets, right-of-use assets, andproperty, plant, and equipment28Non-cash expenses (without­depreciation and amortization)

381

278

53

50

4,514

3,799

Non-cash income

134

87

36

36

2,250

1,366

Net working capital

78

2022

216

Additions to property, plant,
and equipment

63

Group
2023

180

123

271

342

5,499

4,896

1,730

1,502

–196

–152

25,93625,307

Based on the internal management and reporting structure,
the Bosch Group is divided into four business sectors. These
are the reportable segments and result from the combina­
tion of divisions in accordance with the criteria set forth in
IFRS 8 Operating Segments. Business operations within thebusiness sectors are the responsibility of the divisions.

The Mobility Solutions business sector mainly comprises
the following areas of business: powertrain products andsolutions, systems for active and passive driving safety,­assistance and convenience functions, technology for user-­friendly infotainment as well as vehicle-to-vehicle andvehicle-­to-­infrastructure communication, concepts, technol­ogy, and services for the automotive aftermarket, steeringsystems for passenger cars and commercial vehicles, con­nected mobility services, and a wide-ranging portfolio fore-bikes.

Annual report 2023

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Additional information

181

The Industrial Technology business sector combines the­following activities:– Automation technology (technologies for drives,­controls, and motion)– Industry 4.0 software activities and projects
The operations of the Consumer Goods business sector
comprise the production and distribution of:– Power tools (tools for professionals, industry, and DIY,
accessories, garden tools, as well as industrial tools
and measuring equipment)– Household appliances (appliances for cooking, dish­washing, laundry, drying, cooling, freezing, floor care,etc.)
The Energy and Building Technology business sector com­prises the following activities:– Security systems (video surveillance, public address
systems, evacuation systems, and access control)– Services to increase energy efficiency in non-residentialbuildings– Thermotechnology (heating and hot-water boilers
including open- and closed-loop control systems andproducts and services to increase comfort in the home)– Service solutions (business solutions for internaland external customers, shared services for the BoschGroup)

Operating segments which are not reportable are combined
and presented in the category “Other.” This mainly relates tofinancial, holding, and other service companies as well as
operations that are not allocated to a business sector.
The divisions allocated to a business sector are aggregatedinto a single reportable segment, as they have similar eco­nomic characteristics. Above all, the economic performanceof all the divisions aggregated in one segment depends to asimilar extent on the same core markets (automotive produc­tion, capital goods, consumer goods, and energy and build­ing technology).
Line items allocable to financing activities are not included
in segment reporting as they are not part of the reported
earnings.
The main controlling variables reported to the board of man­agement are sales revenue growth, EBIT from operations as
a percentage of sales revenue (EBIT adjusted for negative
effects on earnings from purchase price allocations in thefiscal year 2015), and net working capital as a percentage ofsales revenue as an indicator of the capital that is generally
tied up in the short term. EBIT is earnings before the finan­cial result and before tax. Net working capital is an averageof inventories, trade receivables, and contract assets, ineach case before valuation allowances, plus capitalized­deferred consideration to customers, less trade payables
and contract liabilities.
Transfer prices between the operating segments are deter­
mined at arm’s length.

Annual report 2023

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Consolidated financial statements

Additional information

182

The main items included in non-cash expenses are bad debt
allowances, additions to provisions, as well as losses on thedisposal of items of property, plant, and equipment, and of
intangible assets.
The main items included in non-cash income are income
from the reversal of provisions.

Reconciliation statements
T 62
in millions of euros
2023

2022

93,11289,519536

506–2,169–1,957

117

133

91,596

88,201

4,789

3,891

EBIT from operations of “Other”

76

– 69

Adjustments from purchase priceallocations

–321

–342

Differences in the consolidated group

–41

–6

Sales revenue
Sales revenue of reportable segments
Sales revenue of “Other”
Consolidation
Differences in the consolidated group
Group sales revenue
Earnings
EBIT from operations of reportablesegments

Financial income

3,980

3,829

Financial expenses–4,507–4,390

Profit before tax

3,976

2,913

Net working capital of reportablesegments

26,13225,459

Net working capital of “Other”

–196

–152

Reconciliation of average values
to carrying amounts as of 12/31–3,848–976

Valuation allowances on segment assets–2,308–2,313

Group net working capital

19,78022,018

Net working capital

Annual report 2023

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Additional information

Consolidated financial statements

183

Disclosures by key countries
T 63
in millions of euros
Sales revenue by registeredoffice of the customer

EuropeNon-current assets1

2023

2022

2023

2022

46,76944,33423,902

22,590of which Germany

18,854

17,58914,447

13,596of which United Kingdom

3,868

3,563

740

719

of which France

3,087

3,050

397

409

of which Italy

2,643

2,596

567

566

Americasof which United States
Asia

16,952

16,167

5,756

4,179

12,402

12,077

4,448

3,501

26,622

26,369

8,103

8,388

of which China

17,201

17,580

5,243

5,476

of which Japan

2,789

2,461

565

466

Other regions

1,253

1,331

186

179

91,596

88,20137,94735,336

1. Non-current assets consist of intangible assets, right-of-use assets, and property, plant, and equipment.

The customer structure of the Bosch Group in the reporting
year and in the previous year does not reveal any concentra­tion on individual customers.

Annual report 2023

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Additional information

184

30 — Additional disclosures on financial
instruments
In accordance with IAS 32 Financial Instruments: Presentation, a financial instrument is any contract that gives rise toa financial asset of one entity and to a financial liability or
equity instrument of another entity.
Financial assets and financial liabilities are recognized in thestatement of financial position when the Bosch Group be­comes party to the contractual provisions of the financial­instrument. For regular way purchases or sales, however,the settlement date is the relevant date for initial recognition
and for derecognition from the statement of financial posi­tion. On initial recognition, financial assets and financial­liabilities are measured at fair value and classified in accor­
dance with IFRS 9 Financial Instruments. Unless subsequent
measurement is at fair value through profit or loss, directly
attributable transaction costs are taken into account on initialrecognition. The fair-value option pursuant to IFRS 9 is not ex­
ercised. Hedge accounting is not used in the Bosch Group.
On initial recognition, financial assets are classified either as
at amortized cost (AC), at fair value through profit or loss
(FVPL), or at fair value through other comprehensive income(FVOCI). The classification depends on the business model
underlying the financial assets as well as the contractual
cash flow characteristics of the asset. Classification is deter­
mined by– whether the financial asset is held within a businessmodel whose objective is to hold financial assets inorder to collect contractual cash flows (“hold” businessmodel), whether the objective is achieved by bothcollecting contractual cash flows and selling financial
assets (“hold and sell” business model), or solely
by selling financial assets (“sell” business model), and– whether the contractual cash flows are “solely payments
of principal and interest” (SPPI).
The business model is determined on the basis of the BoschGroup’s corporate management. For this purpose, the finan­cial instruments are grouped together by their underlying
business model. The contractual cash flow characteristics
are reviewed at the level of the individual financial instru­
ment.
Financial assets whose cash flows are solely payments ofprincipal and interest on the principal amount outstanding
and held within the “hold” business model are measured atamortized cost (AC). These are trade receivables, cash andcash equivalents, bank balances, loan receivables, and­sundry other financial assets. These assets are subsequently
measured using the effective interest method; impairment
gains and losses, or gains or losses from the derecognitionof assets, are recognized in profit or loss.
If the group also intends to collect cash flows from selling
financial assets (“hold and sell” business model), the finan­cial assets are measured at fair value through other com­prehensive income (with recycling, FVOCI wR). Gains andlosses are recorded in other comprehensive income in thiscase. Cumulative changes in fair value are reclassified to
profit or loss when the instruments are sold. Impairment
losses are likewise reclassified from other comprehensive
income to profit or loss. Interest income is recognized in
profit or loss using the effective interest method. Most of the
Bosch Group’s interest-bearing securities are measured inthis category.

Annual report 2023

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Additional information

185

Financial assets that do not satisfy the cash flow criterion
owing to there not being solely payments of principal and in­terest on the principal amount outstanding are measured atfair value through profit or loss (FVPL). Changes in fair value
and income from these assets are recognized immediately in
profit or loss. This category mainly comprises interests inpartnerships, shares in investment funds, certain interest-­
bearing securities, and derivatives with a positive fair value
which are mainly used to limit currency, interest, and com­modity risks in accordance with internal risk management.
The group may, at initial recognition, irrevocably designate
equity instruments that are not held for trading as measured
at fair value through other comprehensive income (no re­cycling, FVOCI nR) rather than as measured at fair value
through profit or loss. In that case, all changes in value arerecognized in other comprehensive income. Cumulativechanges in value are not reclassified to profit or loss evenwhen the financial asset is sold. Dividend income, however,is recognized in profit or loss. As this measurement method
appropriately presents the net assets and results of opera­
tions, the Bosch Group has decided to apply this option toinvestments in corporations and to shares reported under
securities.

With regard to financial assets (not including equity instru­
ments) that are not measured at fair value through profit orloss, IFRS 9 requires loss allowances to be recognized forany expected credit losses. The extent to which expected
losses are recognized is determined based on three stages
that differ in terms of the extent to which the credit risk on
financial assets has significantly increased since initial rec­ognition. Stage 1 includes all financial assets whose credit
risk has not increased significantly and whose outstanding
payments are up to 30 days past due. For such assets, credit
losses are recognized in relation to the probability of a de­fault occurring over the next 12 months. If the borrower’s
credit risk has increased significantly, the financial instru­
ment is allocated to stage 2, and loss allowances are recog­
nized at an amount equal to the expected losses over the
lifetime of the financial asset. A significant increase in credit
risk is assumed when either agreed payments are more than
30 days past due or information is available about a deterio­ration in the borrower’s financial situation. If there is addi­
tional evidence that the financial asset is credit-impaired, it
is allocated to stage 3. Such evidence includes payments
more than 90 days past due, observable data about signifi­
cant financial difficulty of the borrower, a high probability
that the borrower will enter bankruptcy, and significant
changes in the issuer’s technological, economic, regulatory,or market environment.

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

186

The simplified approach to impairment is used for trade­receivables, contract assets, and lease receivables. Accord­
ingly, a loss allowance is always recognized at the lifetime
expected credit losses irrespective of any changes in thecredit risk since initial recognition of the financial asset. Asa practical expedient, a loss allowance table is used in the
Bosch Group for receivables that are not credit-impaired,
which determines the expected losses over the remaining
term as a flat-rate percentage in relation to the number ofdays past due. Historical probabilities of default are used asa basis, supplemented by forward-looking parameters of rel­evance for the credit risk. If there is any information available
about financial difficulty of the borrower, the assets are ana­lyzed individually and a loss allowance for credit-impaired
receivables is recognized. According to internal group guide­lines, the carrying amounts of receivables are generally ad­justed via a loss allowance account. Loss allowances are notrecognized if receivables are collateralized or credit insur­
ance exists.
Financial liabilities are generally subsequently measured atamortized cost using the effective interest method. In the
Bosch Group, this applies to trade payables, bonds, schuld­
schein loans, registered bonds, liabilities to banks, commer­
cial papers, loan liabilities, and other financial liabilities.
The main exception to this rule concerns financial liabilities
held for trading, which are measured at fair value throughprofit or loss. In the Bosch Group, these are derivatives witha negative fair value.

When determining the fair value of financial assets and finan­cial liabilities, the input factors of the valuation techniques
pursuant to IFRS 13 are categorized as follows:– Level 1: Quoted prices (unadjusted) in active markets
for identical assets or liabilities that the accounting
entity can access at the measurement date
– Level 2: Inputs other than quoted prices included
within level 1 that are observable for the asset or
liability, either directly or indirectly– Level 3: Inputs that are not based on observable market
data
The fair value of current financial assets and liabilities is­assumed to correspond to their carrying amount.
Financial assets are derecognized when the rights to cash
flows have expired, e.g. after completion of bankruptcy pro­ceedings or after a court ruling. They are also derecognizedwhen the Bosch Group transfers substantially all risks andrewards from a financial asset. Financial liabilities are
derecognized when the obligations specified in the contract
have been discharged or canceled, or when they have ex­
pired.
Financial assets and financial liabilities are offset and pre­sented as a net amount in the statement of financial position
when there is a legal right to offset and the group either­intends to settle on a net basis, or when the asset and the­liability are to be settled at the same time.

Annual report 2023

Notes to the consolidated financial statements

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

187

Net gain/loss by category
The table below presents the net gains and losses from­financial instruments recognized in the income statement,
classified by the categories defined in IFRS 9:
T 64
in millions of euros
2023

2022

Financial assets measured at amortizedcost (AC)

382

540

Financial assets measured at fair value
through other comprehensive income(FVOCI wR)

–79

172

Financial assets and financial liabilities
measured at fair value through profit
or loss (FVPL)

285

–922

Equity instruments measured at fairvalue through other comprehensive
income (FVOCI nR)

95

108

–478

–325

Financial liabilities measured
at ­amortized cost (AC)The net gain/loss from equity instruments measured at fairvalue through other comprehensive income includes divi­
dend income. In all other categories, foreign-currency gains
and losses as well as interest income and expenses are dis­closed. The net gain/loss from financial assets and financial
liabilities measured at fair value through profit or loss addi­
tionally includes the result from changes in the fair values ofinvestments, securities, and derivatives. Moreover, the net
gain/loss from financial assets measured at amortized cost
discloses the gains/losses from the measurement of receiv­
ables and loans. The gain/loss from financial assets mea­
sured at fair value through other comprehensive income in­cludes the gains/losses from the release of the reserve fromfinancial instruments in equity.

The dividend income of EUR 95 million (previous year:
EUR 108 million) reported in net gains/losses from invest­
ments in equity instruments includes dividend income
amounting to EUR 8 million (previous year: EUR 4 million)
from equity instruments derecognized in the reporting year.
The measurement gains and losses from securities and in­vestments recognized in other comprehensive income arepresented in the statement of comprehensive income.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

188

Carrying amounts and fair values by category
T 65

Assetsin millions of euros
2023

2022

Category
pursuant
to IFRS 9

Carrying
amountCash and cash equivalents

AC

7,443

6,459

Trade receivables

AC

17,081

16,528

7,822

3,803

Current other financial assets
Securities
Bank balances
Loan receivables

FVPL

3,606

3,606

FVOCI wR

253

253

AC

3,301

AC

104

FVPL

132

Receivables from finance leases

n.a.

37

Sundry other financial assets

AC

Derivatives

Non-current financial assets
Securities

Investments

Bank balances
Loan receivables

Fair value

Carrying
amountFair value

2,003

2,003

362

362

636
95
132

285

285

36

389

386

14,53814,021FVOCI nR

2,808

2,808

2,821

2,821

FVOCI wR

4,529

4,529

4,521

4,521

FVPL

4,654

4,654

4,260

4,260

FVPL

145

145

164

164

FVOCI nR

1,848

1,848

1,701

1,701

n.a.

130

AC

65

65

138
83

83

AC

14

14

14

14

FVPL

41

41

33

33

Receivables from finance leases

n.a.

146

146

147

147

Other financial assets

AC

158

158

139

139

Derivatives

AC
FVPL
FVOCI wR
FVOCI nR
n.a.

At amortized cost
At fair value through profit or loss
At fair value through other comprehensive income, with recycling
At fair value through other comprehensive income, no recycling
Not applicable
CONTINUED NEXT PAGE

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

189

T 65

Equity and liabilities
in millions of euros
2023

Trade payables

2022

Category
pursuant
to IFRS 9

Carrying
amountAC

12,205

10,761

2,772

2,210

Current other financial liabilities

Fair value

Carrying
amountBonds

AC

Schuldschein loans, registered bonds

AC

Liabilities to banks

AC

194

328

Commercial papers

AC

588

328

Loans

AC

76

102

FVPL

304

AC

861

Derivatives
Sundry other financial liabilities
Non-current financial liabilities

Fair value

749
500

304

182

182

770

10,399

5,457

Bonds

AC

6,797

7,291

1,992

1,916

Schuldschein loans, registered bonds

AC

3,199

3,124

3,198

3,014

Liabilities to banks

AC

118

118

75

75

Loans

AC

33

33

49

49

Derivatives
Other financial liabilitiesAC
FVPL
FVOCI wR
FVOCI nR
n.a.

At amortized cost
At fair value through profit or loss
At fair value through other comprehensive income, with recycling
At fair value through other comprehensive income, no recycling
Not applicable

FVPL

30

30

6

6

AC

222

222

137

136

Annual report 2023

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

190

The carrying amounts of the financial assets and liabilities,classified by IFRS 9 measurement categories, are as follows:
T 66
in millions of euros
2023

2022

Financial assets measured at amortizedcost (AC)28,55524,340Financial assets measured at fair value
through other comprehensive income(FVOCI wR)

4,782

4,883

Equity instruments measured at fairvalue through other comprehensive
income (FVOCI nR)

4,656

4,522

Financial assets measured at fair value
through profit or loss (FVPL)

8,578

6,745

334

188

25,042

18,240Financial liabilities measured at fairvalue through profit or loss (FVPL)
Financial liabilities measured atamortized cost (AC)Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

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Additional information

Consolidated financial statements

191

The tables presented below show the fair values of financial
assets and financial liabilities measured at fair value deter­
mined by using the fair value hierarchy in accordance withIFRS 13:
T 67
in millions of euros
2023
Category
pursuant
to IFRS 9

Level 11

Level 22

Level 33

Total

FVPL

42

7,656

562

8,260

FVOCI wR

157

4,625

4,782

FVOCI nR

2,806

2

2,808

Financial assets
Securities

Investments
Derivatives

FVPL

145

145

876

1,848

FVOCI nR

972

FVPL

8

165

173

FVPL

5

329

334

Financial liabilities
Derivatives

1. Fair value is measured on the basis of quoted, unadjusted market prices in active markets.
2. Fair value is measured on the basis of market data such as share prices, exchange rates, or interest curves using market-based valuation techniques.
3. Fair value is measured on the basis of unobservable market data.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

192

in millions of euros
2022
Category
pursuant
to IFRS 9

Level 11

Level 22

Level 33

462

Total

Financial assets
Securities

Investments
Derivatives

FVPL

251

5,550

FVOCI wR

53

4,830

FVOCI nR

2,808

13

FVPL

6,263
4,883
2,821

164

164

987

1,701

FVOCI nR

714

FVPL

19

299

318

FVPL

15

173

188

Financial liabilities
Derivatives

1. Fair value is measured on the basis of quoted, unadjusted market prices in active markets.
2. Fair value is measured on the basis of market data such as share prices, exchange rates, or interest curves using market-based valuation techniques.
3. Fair value is measured on the basis of unobservable market data.

Investments measured at fair value through other compre­
hensive income include the equity investments in Ceres Power
Holdings plc (fair value of EUR 71 million; previous year:
EUR 134 million), in Husqvarna AB (EUR 518 million; previ­
ous year: EUR 182 million), in Nikola Corporation (EUR 6 mil­lion; previous year: EUR 14 million), in Powercell Sweden AB(EUR 24 million; previous year: EUR 63 million), and in Weifu
High Technology Group Co., Ltd. (EUR 250 million; previous
year: EUR 321 million).
The fair value of financial assets and liabilities measured atamortized cost is determined on the basis of observable
market data such as share prices, exchange rates, and inter­est curves (level 2).

At the end of the fiscal year, items are reviewed to determine
whether they need to be reclassified between individual­levels of the fair-value hierarchy. There were no reclassifica­
tions in the reporting year. In the previous year, a small­volume of securities measured at fair value through othercomprehensive income were reclassified from level 1 tolevel 2, as they were no longer measured at their stock mar­ket price. A small volume of securities were reclassified fromlevel 2 to level 1, as measurement at stock market price waspossible as of the previous year. The table presenting thechanges in financial assets allocated to level 3 includes­reclassifications relating to this level.

Annual report 2023

T 68

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Additional information

Consolidated financial statements

193

Equity investments measured at fair value through profit orloss and those measured at fair value through other compre­
hensive income are allocated to level 3. Various methods areused to determine the fair values, mainly based on price in­formation from third parties and financing rounds carriedout in the reporting year; the discounted cash flow method is
also applied. In addition, in certain cases, cost is used as thebest estimate of fair value.

Units in a closed fund are also allocated to level 3 (reported
under securities). The fair value of the fund units is notified
by the asset management firm; it is measured based on thefund’s net asset value. The fair value is dependent onchanges in the market value of the respective investments
within the fund.
Changes during the reporting year and the previous year infinancial assets allocated to level 3 are presented in the ta­
bles below:
T 69

in millions of euros

1/1/2023

Additions

Disposals

Reclassi­
fications

Investments
FVOCI nR

987

82

–16

–11

Investments
FVPL

164

9

–1

Securities FVPL

462

67

Changes
recognizedin othercomprehensive income–159

Changes
recognized in
profit or loss

–25

Other
changes

12/31/2023

–7

876

–2

145

33

562

T 70
in millions of euros

1/1/2022

Additions

Disposals

Investments
FVOCI nR

857

203

–43

Investments
FVPL

151

11

–6

Securities FVPL

271

154

Reclassi­
fications

Changes
recognizedin othercomprehensive income

Changes
recognized in
profit or loss

–8
16
37

Other
changes

12/31/2022

–22

987

–8

164
462

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

194

Changes recognized in profit or loss are presented in thefinan­cial result, while changes recognized in other compre­
hensive income are reported in the gains/losses on financial
instruments.
Due to the IPO of an entity, the Bosch Group’s corresponding
equity investment in the entity was reclassified from level 3
to level 1. There were no reclassifications in the previous
year. Neither in the reporting year nor in the previous year
were there any reclassifications of securities allocated tolevel 3.

31 — Capital and risk management
Capital management
The Bosch Group’s goal is to achieve sustainable growththrough innovation while maintaining its financial indepen­
dence. To achieve this goal, it is necessary to maintain a highinternal financing ability, along with unrestricted access tocapital markets, which is ensured by a solid A rating at a min­imum. Capital structure and other financial performance in­dicators, such as free cash flow, are tracked as part of finan­cial planning. As of December 31, 2023, the Bosch Group’s
equity ratio as a percentage of total assets was 44 percent(previous year: 47 percent). Depending on market circum­
stances, the volume required, and the preferred currency,
the Bosch Group generally raises debt capital on capital
markets in the form of bonds, schuldschein loans, registeredbonds, and commercial paper programs. Bilateral and syn­dicated loan facilities with banks are also in place.

Hedging policy and financial derivatives
The business operations of the Bosch Group are impacted
in particular by fluctuations in exchange and interest rates
and additionally, on the procurement side, by commodity
price risks. Business policy aims to limit these risks bymeans of hedging. Hedging transactions are managed at cor­porate level.
Internal regulations and guidelines set down a binding
framework and define the responsibilities relating to invest­
ment and hedging transactions. According to these regula­tions, derivatives may only be used in connection withbusiness operations, financial investments, or financing­
transactions; speculative transactions are not allowed.
Trader limits are an important component of the guidelines.
Hedges are generally concluded via banks with good credit
ratings from leading agencies and taking into account cur­rent risk assessments in financial markets. The creditworthi­
ness of the Bosch Group’s banking partners is closely moni­
tored, and the risk mitigated by counterparty limits.
To reduce the credit risk of the bank, fixed-term deposits arein some cases also entered into as secured deposits in triparty repo transactions. In such cases, the bank provides
predefined securities as collateral. The transaction settle­
ment, as well as the management and valuation of the secu­
rities, are managed by a clearing center. Further information
is provided in note 16 “Other current and non-current finan­cial assets.”

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

195

The decision-making bodies are committees for commodi­
ties, foreign currencies, and investments that meet at regu­
lar intervals. There is a functional segregation of trading,settlement, and control functions, with the latter primarily
charged with continuously monitoring compliance with in­structions and guidelines.
Each month, the risk of financial investments is calculatedusing the value-at-risk concept. Risks relating to financial­assets are monitored using ad hoc asset allocation studies
and limited by diversifying investment. In foreign-exchange
and investment committee meetings, the member of theboard of management responsible is informed monthly
about risk analyses and the results of investments andhedges.
Currency risks
Currency risks from cash flows in business operations are
mitigated by the central management of invoicing and pur­chasing currencies. The currency risk is determined on thebasis of the worldwide consolidated cash flows in the re­spective currencies. Based on annual forecasts, estimatedinflows and outflows in the various currencies for the report­
ing period are aggregated in a foreign exchange balanceplan. The resulting net position is then used for the central
management of currency exposures.

The biggest net currency positions of the planned cash flows
are in CNY, USD, GBP, and MXN.
Hedging largely takes the form of forward exchange con­tracts; currency options and currency swaps are used to alesser extent. These transactions, which are only enteredinto with banks, are subject to minimum requirements withrespect to nature and scope.
The risk attaching to material foreign currency items from­ perations is determined using the cash-flow-at-risk con­ocept. These risk analyses and the hedge result are deter­
mined monthly and also presented to the member of theboard of management responsible in the foreign-exchange
and investment committee meetings.
To present the currency risks for the most important foreign
currencies of the Bosch Group in accordance with IFRS 7­Financial Instruments: Disclosures, all monetary assets andmonetary liabilities denominated in foreign currency for all
consolidated companies were analyzed as of the reporting
date and sensitivity analyses carried out for the respective
currency pairs, in terms of the net risk.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

196

A change in the EUR of 10 percent (taking the closing rate as
the baseline) against the foreign currencies listed in the ta­
ble would have the following effects on the profit before tax:
T 71
in millions of euros
10% increasein EUR

10% decreasein EUR

2023

2022

2023

2022

AUD

2

0

–2

0

BRL

–4

–6

4

6

CAD

9

5

–9

–5

CHF

2

2

–2

–2

CNY

27

–23

–27

23

CZK

–54

–16

54

16

GBP

39

33

–39

–33

HUF

–22

–24

22

24

INR

–7

–12

7

12

JPY

–33

–22

33

22

KRW

–2

2

2

–2

MXN

–26

–9

26

9

PLN

–19

–5

19

5

TRY

–15

–1

15

1

USD

–89

– 69

89

69

A change in the USD of 10 percent (taking the closing rate as
the baseline) against the foreign currencies listed in the ta­
ble would have the following effects on the profit before tax:

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

Notes to the consolidated financial statements

197

in millions of euros
10% increase
in USDCNY

For the most part, the effects on the reported profit or loss
result from foreign currency positions relating to operations
as well as from loans within the Bosch Group if, by way of an
exception, the loan was granted in a currency other than thelocal currency of the borrower – for example, because it canbe repaid from expected cash flows in this currency. The cur­rency risk presented in financial reporting deviates from thepurely economic currency risk, as the latter is determined on
the basis of forecast cash flows from operations.

10% decrease
in USD

2023

2022

2023

2022

–19

–8

19

8

Interest-rate risks
Risks from changes in interest rates on investments and bor­
rowings are limited by select use of derivative financial in­struments. These are mainly interest rate swaps and interest
rate futures.
An analysis of the interest-rate risk was carried out in accor­
dance with IFRS 7. The sensitivity analysis considered assets
and liabilities subject to floating interest rates, fixed-rate­securities, pension and money market funds, as well as in­terest derivatives.
A change in the market interest rate by 100 basis points (tak­ing the interest rate on the reporting date as the baseline)
would have the following effect on the gains/losses on fi­
nancial instruments recognized in equity and the profit be­fore tax:
T 73

in millions of euros
Increasein market interest levelby 100 basis points

Decreasein market interest levelby 100 basis points

2023

2022

2023

2022

Reserve from financial instruments

–223

–220

223

220

Profit before tax

– 60

–8

60

8

Annual report 2023

T 72

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

198

Share-price risks
The Bosch Group holds stock as part of its financial invest­
ments used to cover non-current pension obligations. It also
holds investments in publicly quoted companies. The analy­
sis of the share-price risk in accordance with IFRS 7 took
into account share portfolios, quoted investments, equity
funds, and share derivatives with a total carrying amountof EUR 5,028 million (previous year: EUR 4,854 million).

A change in the share price of 10 percent (taking the shareprice on the reporting date as the baseline) would have thefollowing effect on the gains/losses on financial instruments
recognized in equity and the profit before tax:

T 74
in millions of euros
10% increasein share price

10% decreasein share price

2023

2022

2023

2022

Reserve from financial instruments

378

353

–378

–353

Profit before tax

130

132

–130

–132

To reduce share-price risks, a broadly diversified investment
strategy is pursued across various regions and sectors.

Other price risks
Derivatives are used to limit the risks of fluctuating commod­
ity prices. The analysis of the commodity-price risk in accor­
dance with IFRS 7 took into account commodity derivatives
measured as of the reporting date.
A change in the forward-rate level of 10 percent (taking theforward rate on the reporting date as the baseline) would
have the following effect on the profit before tax:
T 75

in millions of euros
10% increasein forward rates

Profit before tax

10% decreasein forward rates

2023

2022

2023

2022

62

39

– 62

–39

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

199

As of the reporting date, the Bosch Group is not aware that it
is exposed to any further significant other price risks as de­fined by IFRS 7.

ables are partly secured by retention of title. For some tradereceivables, collateral has been additionally provided in theform of guarantees, property liens, and mortgages.

The Bosch Group holds several physical power purchaseagreements (PPAs) with terms of up to 16 years, under whichelectricity is purchased at a fixed price for its own use, as
well as the associated green electricity certificates. The
physical PPAs are therefore subject to the own-use excep­
tion and are for the most part not accounted for as deriva­
tives in accordance with IFRS 9. The physical PPAs containadditional clauses to an insignificant extent. In these cases,
the PPA is accounted for as a derivative in accordance withIFRS 9.

The table below shows the remaining credit risk for trade­receivables:

Credit risks
The maximum credit risk for each category of financial instru­
ments is the carrying amount of the financial assets recog­
nized in the statement of financial position.
The credit risk from customer receivables is recorded andmonitored on an ongoing basis. Responsibilities and duties
relating to credit risks are governed by an internal directive.
This mainly concerns the stipulation of payment terms, fix­ing of credit limits, release of deliveries, and receivables
monitoring.
The credit risk for trade receivables is reduced by processing
invoices with the corresponding credit notes in a single work
step; the net amount is reported in the statement of financial
position. This procedure is only performed if there is a legal
right to offset and the customer intends to settle the receiv­
able on a net basis or to settle the receivable by offsetting
against the corresponding liability. Moreover, trade receiv­

T 76
in millions of euros
2023

2022

17,865

17,410–784–882

Trade receivables (carrying amount)

17,081

16,528Financial guarantee contracts(­received)–2,203–2,039Remaining credit risk

14,87814,489Trade receivables (before offsettingof credit notes)
Offsetting of credit notes

The following table presents the development of loss allow­
ances on trade receivables (credit-impaired and not credit-­
impaired) as well as on loan receivables and sundry otherfinancial assets (according to the three-stage approach toimpairment) for the reporting year and the previous year:

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

Notes to the consolidated financial statements

200

in millions of euros

Trade receivables

1/1/2022

Loan receivables andsundry other financial assets
Stage 1

Stage 2 / 3

250

6

108

Changes in consolidated group

0

0

0

Amounts added

79

1

9

Amounts utilized

–20

0

0

Amounts reversed

–13

–2

–5

Exchange-rate differences

–6

0

0

12/31/2022

290

5

112

Changes in consolidated group

–4

0

0

Amounts added

94

1

13

Amounts utilized

–25

0

0

Amounts reversed

–76

–2

–1

Exchange-rate differences

–19

0

0

12/31/2023

260

4

124

As of December 31 of the reporting year, loss allowanceson contract assets amount to EUR 11 million (previous year:
EUR 16 million) and loss allowances on finance lease receiv­
ables amount to EUR 2 million (previous year: EUR 2 million).
The following table shows the gross carrying amounts oftrade receivables:

T 78
in millions of euros

Trade receivablesof which not exposed to default riskof which credit-impairedof which not credit-impaired
not due

2023

2022

17,341

16,818

5,520

5,123

317

293

11,504

11,402

10,411

10,096

up to 30 days past due

668

812

31–90 days past due

214

271

91–180 days past due

98

105

more than 180 days past due

113

118

Annual report 2023

T 77

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

201

The development of loss allowances on securities measured
at fair value through other comprehensive income is pre­sented in the following table:
T 79

The credit risk for derivatives with a positive fair value that do
not currently satisfy the set-off criteria of IAS 32 (offsetting
only enforceable in the case of insolvency of the contracting
party) is presented in the following table:
T 80

in millions of euros
in millions of euros

Stage 1

Stage 2 / 3

1/1/2022

13

30

Changes in consolidated group00

Derivatives with a positive fair value

57

Amounts not offset in the statementof financial position

Additions

9

Amounts utilized0

Amounts reversed

–17

–31

Reclassifications

7–7

Exchange-rate differences

00

12/31/2022

1249

Changes in consolidated group00

Additions

1140

Amounts utilized00

Amounts reversed

–14

–46

Reclassifications

2–2

Exchange-rate differences

00

12/31/2023

1141

Derivative transactions are entered into in accordance witheither the German master agreement for financial forward
transactions or the ISDA (International Swaps and Deriva­
tives Association). These do not satisfy the set-off criteria
of IAS 32 as netting is only enforceable in the case of in­solvency.

2023

2022

173

318

Derivatives

–106

–82

Cash collateral received

–54

–77

13

159

Remaining credit risk

Liquidity risks
Changes in financial assets and liabilities are monitored
on an ongoing basis. Internal directives regulate the duties
and responsibilities of liquidity management and planning.
The company has liquidity reserves in the form of highly
liquid assets totaling EUR 11,302 million (previous year:­
EUR 8,824 million). There is a syndicated credit line with an
ESG component totaling EUR 5 billion, the term of which
was extended by one year to 2026. Furthermore, there arebilateral U.S. loan facilities with a volume of USD 950 mil­lion. These facilities have not been drawn. In 2023, newbonds totaling EUR 4.5 billion were issued, as were U.S. pri­vate placements totaling USD 1.2 billion. Furthermore, we
repaid EUR 500 million of a schuldschein loan. In the report­
ing year, we issued up to USD 650 million under our revolv­
ing USD 2.0 billion commercial paper program. In addition,
we took out a syndicated loan facility in the U.S. totaling
USD 1.2 billion. The loan was repaid early from the proceedsof the U.S. private placements.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

202

The liquidity risk is reduced by processing invoices for trade
payables with the corresponding credit notes received in asingle work step. This procedure is only performed if there isa legal right to offset and there is an intention to settle theliability on a net basis or to settle the liability by offsetting
against the corresponding receivable. Moreover, collateralis provided in the form of guarantees.
The table below shows the remaining liquidity risk for trade
payables:T 81

The liquidity risk for derivatives that do not currently satisfy
the set-off criteria of IAS 32 (offsetting only enforceable inthe case of insolvency) is presented in the following table:
T 82
in millions of euros

Derivatives with a negative fair value

Trade payables (carrying amount)
Financial guarantee contracts (issued)
Remaining liquidity risk

334

188

–106

–82

228

105

Amounts not offset in the statementof financial position
Derivatives
Remaining liquidity risk

Offsetting of credit notes

2022

Cash collateral provided

in millions of euros

Trade payables (before offsettingof credit notes)

2023

2023

2022

12,98911,643–784–882

12,205

10,761–6–8

12,19910,753–1

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

203

The undiscounted cash outflows of the non-derivative andderivative financial liabilities are presented in the tables­below:
T 83
in millions of euros
Carrying
amountUndiscounted cash flows
2025

2026

2027

2028

2029
et seq.

2023

2024

Trade payables

12,205

12,149

Bonds

7,546

1,045

282

282

1,032

1,005

7,100

Schuldschein loans, registered bonds

3,199

100

651

877

713

40

1,348

92

26

0

0

3

536

397

307

212

670

Non-derivative financial liabilities

Liabilities to banks

312

198

Commercial papers

588

588

2,351

632

Lease liabilities
Loans

64

109

77

16

8

4

3

5

1,083

863

25

64

24

1

110

Cash outflows

10,375

604

48

37

Cash inflows

10,114

596

47

37

43

7

1

1

2

11

Other financial liabilities
Derivatives
Gross settlement

Net settlement
Cash outflows

269

65

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

Notes to the consolidated financial statements

204

in millions of euros
Carrying
amountUndiscounted cash flows
2024

2025

2026

2027

2028
et seq.

48

798

35

35

35

1,387

2022

2023

Trade payables

10,761

10,761

Bonds

1,992

Schuldschein loans, registered bonds

Non-derivative financial liabilities

3,698

581

78

629

863

698

1,370

Liabilities to banks

403

337

1

73

0

0

4

Commercial papers

328

328

Lease liabilities

2,167

583

482

342

260

206

599

Loans

151

102

27

8

8

4

6

Other financial liabilities

907

771

31

10

1

1

94

5,271

22

10

5,127

21

10

38

3

2

Derivatives
Gross settlement

145

Cash outflows
Cash inflows
Net settlement

43

Cash outflows

The undiscounted cash outflows contain interest and prin­cipal payments. All on-call financial liabilities are allocatedto the earliest possible period. Variable interest payments
were calculated using the most recent interest rate deter­
mined before the respective reporting date.

Annual report 2023

T 84

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Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

205

32 — Leases
Contracts that convey the right to control the use of an iden­
tifiable asset for a period of time in exchange for consider­ation are accounted for as leases in accordance with IFRS 16.
Bosch as lessee
The lessee generally recognizes leases based on the right-ofuse approach. With certain exceptions, this requires recog­
nizing right-of-use assets and liabilities for the payment obli­
gations under the lease in the statement of financial position.
These accounting requirements are not applied to shortterm leases and leases of low-value assets; lease payments
under such leases are recognized in functional costs on astraight-line basis over the lease term. In addition, the re­quirements of IFRS 16 are not applied to leases of intangible
assets.

Lease liabilities are measured at the present value of thelease payments over the lease term. Lease payments include
fixed payments for lease components and non-lease compo­
nents as well as variable lease payments based on an index
or an interest rate. The payments are generally discounted
using the incremental borrowing rate for the appropriate cur­rency and lease term. In determining the lease term, termi­
nation and extension options are considered if it is reason­
ably certain that they will be exercised.
At the commencement date, right-of-use assets are recog­
nized at the amount of the lease liability, plus initial direct
costs and less any lease incentives received. Right-of-use
assets are typically depreciated over the lease term, with­depreciation recognized in functional costs.
As lessees, entities of the Bosch Group have entered into
leases mainly for land and buildings and, to a lesser extent,
vehicles, plant and equipment, and other equipment, fix­tures, and furniture.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Additional information

Consolidated financial statements

206

The right-of-use assets recognized in the statement of finan­cial position and the corresponding depreciation charge areas follows:
T 85
in millions of euros
2023

Land and building
Plant, fixtures, and furniture
VehiclesIn the previous year, depreciation includes impairment losses
of EUR 24 million relating to right-of-use assets of the BSH
Hausgeräte division’s Russian subsidiary (Consumer Goods
business sector). The impairment losses were recognized on
account of the applicable sanctions and the associatedchanges in the economic and legal environment.
Additions to right-of-use assets came to EUR 882 million
in the reporting year (previous year: EUR 856 million).

2022

Carrying
amountDepreciation

Carrying
amountDepreciation

1,821

436

1,696

435

186

60

162

40

269

149

210

134

2,276

645

2,068

609

The following amounts were additionally recognized in theincome statement:
T 86
in millions of euros
2023

2022

Interest expenses relating to leaseliabilities

89

59

Expenses relating to short-term leases

175

132

Expenses relating to leases of low-value
assets

87

86

Expenses for variable lease payments

25

26

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

207

Cash outflows from leases totaled EUR 964 million in the­reporting year (previous year: EUR 893 million). The maturity
analysis of future lease payments is contained in the section
on liquidity risks in note 31 “Capital and risk management.”
Bosch as lessor
Lessors are required to classify a lease as either a financelease or an operating lease.
Finance leases transfer substantially all the risks and re­wards incidental to ownership to the lessee. For such leases,a receivable is recognized at the amount of the net invest­
ment in the lease and disclosed under financial assets.
The receivables from finance lease agreements mainly stemfrom products leased by the Building Technologies division.
As a rule, the agreed lease term is ten years. The receivables
are due as follows:

T 87
in millions of euros
2023

2022

due no later than one year

42

42

due later than one year
and no later than two years

36

36

due later than two years
and no later than three years

3030

due later than three years
and no later than four years

26

26

Gross investment in finance leases,
not discounted

due later than four years
and no later than five years

2221

due later than five years

46

49

202

204

due no later than one year

37

36

due later than one year
and no later than two years

33

32

due later than two years
and no later than three years

2727

due later than three years
and no later than four years

2423

due later than four years
and no later than five years

20

20

Present value of outstanding minimum
lease payments

due later than five years
Unearned finance income

44

46

185

184

17

20

In relation to finance leases, finance income in the reporting
year came to EUR 6 million (previous year: EUR 6 million)
and losses on disposal amounted to EUR 3 million (previous
year: EUR 4 million). There were no unguaranteed residual
values.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

208

Under operating leases, the lessor retains substantially all
the risks and rewards incidental to ownership. The assets
concerned are recognized in property, plant, and equipment
and, unless recognized as sales revenue, the lease payments
received are recorded in other operating income.
The outstanding undiscounted minimum lease paymentsfrom operating lease agreements with entities of the BoschGroup as lessors stem mainly from activities of the Building
Technologies and BSH Hausgeräte GmbH divisions. They are
due as follows in the reporting year:
T 88
in millions of euros
2023

2022

Within one year

51

41

Later than one year
and no later than two years

95

Later than two years
and no later than three years

33

Later than three years
and no later than four years22

Later than four years
and no later than five years

2

1

Later than five years

2

2

69

54

In the reporting year, income from operating leases cameto EUR 57 million (previous year: EUR 51 million).

33 — Related party disclosures
As shareholder, Robert Bosch Industrietreuhand KG exer­
cises the majority of voting rights at Robert Bosch GmbH. In
addition, Robert Bosch Industrietreuhand KG is responsible
for the internal audit of the Bosch Group. The related costs
incurred of EUR 21 million (previous year: EUR 20 million)
were borne by Robert Bosch GmbH. As in the previous year,
there were only immaterial other transactions and outstand­ing balances as of the reporting date.
A part of the pension obligations and funds has been out­
sourced to Bosch Pensionsfonds AG . Robert Bosch GmbHis the sole shareholder of Bosch Pensionsfonds AG . In the­fiscal year, contributions were made to the plan assets ofBosch Pensionsfonds AG to finance pension obligations. For
further details, see note 26 “Provisions for pensions and­similar obligations.”
Robert Bosch Stiftung GmbH, Stuttgart, is the lessee of sev­
eral properties belonging to Robert Bosch GmbH, Stuttgart.
As of the reporting date, Robert Bosch GmbH has a liabilityof EUR 47 million (previous year: EUR 33 million) to Robert
Bosch Stiftung GmbH.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

209

Business transactions with related entities
Related entities of the Bosch Group include the joint ven­tures, associated entities, and the entities in which non-­controlling interests are held (investees) as well as entities
not consolidated on materiality grounds. Transactions withthese entities are presented in the following table:
T 89

in millions of euros
Goods andservices soldGoods andservices purchased

Receivables

Liabilities

2023

2022

2023

2022

2023

2022

2023

2022

Joint ventures

83

84

24

1

10

10

19

23

Associated entities and investees

55

116

20

76

25

8

102

60

The following business relationships existed with entities notconsolidated on materiality grounds in the reporting year:– Goods and services sold: EUR 113 million– Goods and services purchased: EUR 207 million– Receivables: EUR 209 million– Liabilities: EUR 86 million
All transactions with related parties were at arm’s length.

Total remuneration of key management personnel
The key management personnel are the general partners ofRobert Bosch Industrietreuhand KG and any limited part­ners who are concurrently members of the board of manage­
ment of Robert Bosch GmbH, as well as the members of thesupervisory board and the members of the board of manage­
ment of Robert Bosch GmbH.

Annual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

210

Total remuneration of key management personnel breaks
down as follows:
T 90
in millions of euros
2023

2022

Short-term benefits

24

24

Post-employment benefits

13

37

Other long-term benefits

6

6

Termination benefits

20

34 — Remuneration of members of the boardof management and supervisory board
The total remuneration of the members of the board of man­agement comes to EUR 27 million in fiscal year 2023 (pre­vious year: EUR 25 million), and that of the former membersof the board of management and their dependants to
EUR 22 million (previous year: EUR 26 million). An amount of
EUR 275 million (previous year: EUR 274 million) has been
accrued for pension obligations to former members of theboard of management and their surviving dependants.
The remuneration of the members of the supervisory board
comes to approximately EUR 2 million.

For obligations from pensions and deferred compensation,
provisions totaling EUR 77 million (previous year: EUR 59 mil­lion) have been recognized.

35 — Auditor’s fees

Share-based payments are not made.

The fees of the group auditor for audit and advisory services
in Germany amount to:

Beyond this, the companies of the Bosch Group have notconducted any reportable transactions with key manage­
ment personnel.

T 91
in millions of euros
2023

2022

Audit services

8

7

Other assurance services

10

Tax advisory services

1

1

Other services

6

7

Fees forAnnual report 2023

Notes to the consolidated financial statements

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

List of shareholdings of the Bosch Group

List of shareholdings of the Bosch Group

Annual report 2023

211

as of December 31, 2023

A. Subsidiaries
1. Fully consolidated entities

Percentage shareof capital

Region/country

Company nameRegistered office

Germany

AJNS New Media GmbH

Berlin100.0

AS Abwicklung Dritte Produktion GmbH i.L.

Stuttgart

100.0

AS Abwicklung und Solar-Service GmbH

Stuttgart

100.0 1AS Guss Beteiligungsgesellschaft mbH

Stuttgart

100.0

Bosch Access Systems GmbH

Aachen100.0 1

Bosch Automotive Service Solutions GmbH

Pollenfeld-Preith100.0 1

Bosch Building Automation GmbHVerl

100.0 1

Bosch Charging Solutions GmbH

Stuttgart

100.0 1

Bosch Energy and Building Solutions GmbH

Ditzingen100.0 1

Bosch Engineering GmbH

Abstatt100.0 1

Bosch Global Software Technologies GmbH

Stuttgart

100.0 1

Bosch Healthcare Solutions GmbH

Waiblingen

100.0 1

Bosch Hilfe GmbH

Stuttgart

100.0

Bosch Industriekessel GmbH

Gunzenhausen

100.0 1

Bosch KWK Systeme GmbH

Lollar100.0 1

Bosch Mobility Platform & Solutions GmbH

Gerlingen100.0 1

Bosch Pensionsgesellschaft mbH

Stuttgart

100.0 1

Bosch Rexroth AG

Stuttgart

100.0 1, 2

Bosch Rexroth Vermögensverwaltung GmbH i.L.

Lohr am Main

100.0 1

Bosch Sensortec GmbH

Kusterdingen

100.0 1

Bosch Service Solutions GmbH

Stuttgart

100.0 1

Bosch Service Solutions Leipzig GmbH

Leipzig

100.0 1

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

212
Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch Service Solutions Magdeburg GmbH

Magdeburg

100.0 1

Bosch Sicherheitssysteme Engineering GmbH

Nuremberg

100.0 1

Bosch Sicherheitssysteme GmbH

Stuttgart

100.0 1, 2

Bosch Sicherheitssysteme Montage und Service GmbHAmt Wachsenburg

100.0 1

Bosch Solar Services GmbH

Arnstadt

100.0 1, 2

Bosch Solar Thin Film GmbH

Arnstadt

100.0 1

Bosch Solarthermie GmbH

Wettringen

100.0 1

Bosch Technology Licensing Administration GmbH

Gerlingen100.0 1

Bosch Telecom Holding GmbH

Stuttgart

100.0 1, 2

Bosch Thermotechnik GmbH

Wetzlar100.0 1, 2

Bosch Wohnungsverwaltungsgesellschaft mbH & Co. KG

Stuttgart

100.0 3

Bosch.IO GmbH

Berlin100.0 1

BSH Hausgeräte GmbH

Munich100.0 1, 2

BSH Hausgeräte Service GmbH

Munich100.0 1

BSH Hausgeräte Service Nauen GmbH

Nauen

100.0 1

BSH Hausgerätewerk Nauen GmbH

Nauen

100.0 1

BSH Vermögensverwaltungs-GmbH

Munich100.0 1

Buderus Guss GmbH

Breidenbach

100.0 1

COBI.Bike GmbH

Frankfurt am Main

100.0 1

Constructa-Neff Vertriebs-GmbH

Munich100.0

DAA GmbH

Hamburg

100.0 1eesy-ic GmbH

Erlangen

100.0

ELPRO Messtechnik GmbH

Schorndorf

100.0 1ETAS GmbH

Stuttgart

100.0 1, 2

EVI Audio GmbH

Straubing

100.0 1

Gaggenau Hausgeräte GmbH

Munich100.0 1grow platform GmbH

Stuttgart

100.0 1

Holger Christiansen Deutschland GmbHWilnsdorf

100.0 1

Hörburger GmbH

Waltenhofen

100.0 1

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

213
Region/country

Percentage shareof capitalCompany nameRegistered office

ITK Engineering GmbH

Rülzheim

100.0

ITK Holding GmbH

Rülzheim

100.0 1

Moehwald GmbH

Homburg

100.0 1

Neff GmbH

Munich100.0 1

Pollux Solar-Service GmbH

Arnstadt

100.0

Residential IoT Services GmbH

Stuttgart

100.0 1

Robert Bosch Automotive Steering GmbH

Schwäbisch Gmünd

100.0 1, 2

Robert Bosch Elektronik GmbHSalzgitter

100.0 1

Robert Bosch Fahrzeugelektrik Eisenach GmbH

Eisenach100.0 1

Robert Bosch Hausgeräte GmbH

Munich100.0 1

Robert Bosch Lollar Guss GmbH

Lollar100.0 1

Robert Bosch Manufacturing Solutions GmbH

Stuttgart

100.0 1, 2

Robert Bosch Power Tools GmbH

Leinfelden-Echterdingen

100.0 1

Robert Bosch Risk and Insurance Management GmbH

Stuttgart

100.0 1

Robert Bosch Sechste Vermögensverwaltungsgesellschaft mbH

Gerlingen100.0 1

Robert Bosch Semiconductor Manufacturing Dresden GmbH

Dresden100.0 1

Robert Bosch Smart Home GmbH

Stuttgart

100.0 1

Robert Bosch Steering Columns GmbH

Stuttgart

100.0 1

Robert Bosch Venture Capital GmbH

Gerlingen100.0 1

Robert Bosch Wohnungsgesellschaft mbH

Stuttgart

100.0 1

Security and Safety Things GmbH

Munich100.0

SEG Hausgeräte GmbH

Munich100.0 1susteco solutions GmbH

Berlin100.0

WeWash GmbH

Munich100.0 1WOGE Service- und Regiebetrieb GmbH

Stuttgart

100.0 1

1. These companies make use of the exemption provided for in Sec. 264 (3) HGB.
2. These companies make use of the exemption provided for in Sec. 291 (2) HGB.
3. This company makes use of the exemption provided for in Sec. 264b HGB.

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

214
Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch General Aviation Technology GmbH

Vienna100.0

Bosch Industriekessel Austria GmbH

Bischofshofen

100.0

Bosch Rexroth GmbH

Pasching

100.0

BSH Finance and Holding GmbH

Vienna100.0

BSH Hausgeräte Gesellschaft mbH

Vienna100.0

Robert Bosch AG

Vienna100.0

Robert Bosch Holding Austria GmbH

Vienna100.0

Bosch Rexroth N.V.

Anderlecht

100.0

Bosch Thermotechnology N.V. / S.A.

Mechelen

100.0

BSH Home Appliances S.A.

Brussels

100.0

Robert Bosch Produktie N.V.

Tienen100.0

Robert Bosch S.A.

Anderlecht

100.0

sia Abrasives Belgium N.V. / S.A.

Mollem100.0

The KOBI Company B.V.

Leuven100.0

Bosch Digital EOOD

Sofia

100.0

BSH Domakinski Uredi Bulgaria EOOD

Sofia

100.0

Croatia

BSH kućanski uređaji d.o.o.

Zagreb100.0

Czech RepublicBosch Powertrain s.r.o.

Jihlava

100.0

Bosch Rexroth spol.s.r.o.

Brno

100.0

Bosch Thermotechnika s.r.o.

Prague100.0

BSH domácí spotřebiče s.r.o.

Prague100.0

Robert Bosch odbytova s.r.o.

Prague100.0

Robert Bosch, spol.s.r.o.

České Budějovice

100.0

EuropeAustria

Belgium

Bulgaria

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

215
Percentage shareof capital

Region/country

Company nameRegistered officeDenmark

Bosch Rexroth A/S

Hvidovre

100.0

BSH Hvidevarer A/SBallerup

100.0

ELPRO NORDIC ApSRoskilde

100.0

Holger Christiansen A/S

Esbjerg

100.0

Kassow Robots ApS

Copenhagen

100.0

Robert Bosch A/SBallerup

100.0

Bosch Rexroth Oy

Vantaa100.0

BSH Kodinkoneet Oy

Helsinki

100.0

Robert Bosch Oy

Vantaa100.0

Bosch Automotive Service Solutions S.A.S.

Saint-Ouen

100.0

Bosch Rexroth DSI S.A.S.

Vénissieux

100.0

Bosch Rexroth S.A.S.

Vénissieux

100.0

Bosch Security Systems France S.A.S.

Drancy100.0

BSH Electroménager S.A.S.

Saint-Ouen

100.0

e.l.m. leblanc S.A.S.

Drancy100.0

ETAS S.A.S.

Saint-Ouen

100.0

Gaggenau Industrie S.A.S.

Lipsheim

100.0

Holger Christiansen France S.A.S.

Olivet100.0

Robert Bosch (France) S.A.S.

Saint-Ouen

100.0

Robert Bosch Automotive Steering Marignier S.A.S.

Marignier

100.0

Robert Bosch Automotive Steering Vendôme S.A.S.

Vendôme

100.0

BSH Ikiakes Syskeves A.B.E.

Athens100.0

Robert Bosch S.A.

Koropi (Athens)

100.0

Automotive Steering Column Kft.

Eger

100.0

Bosch Rexroth Kft.

Budapest

100.0

FinlandFranceGreeceHungary

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

216
Region/country

Percentage shareof capitalCompany nameRegistered office

BSH Háztartási Készülék Kereskedelmi Kft.

Budapest

100.0

ELPRO Systems Kft.

Budapest

100.0

Robert Bosch Automotive Steering Kft.

Maklár

100.0

Robert Bosch Elektronika Gyártó Kft.

Hatvan100.0

Robert Bosch Energy and Body Systems Kft.

Miskolc

100.0

Robert Bosch Kft.

Budapest

100.0

Robert Bosch Power Tool Elektromos Szerszámgyártó Kft.

Miskolc

100.0

IrelandRobert Bosch Ireland Ltd.

Dublin

100.0

Italy

ARESI S.p.A.

Brembate

100.0

Bosch Automotive Service Solutions S.r.l.

Parma

100.0

Bosch Rexroth Oil Control S.p.A.

Milan

100.0

Bosch Rexroth S.p.A.

Cernusco

100.0

Bosch Security Systems S.p.A.

Milan

100.0

BSH Elettrodomestici S.p.A.

Milan

100.0

Centro Studi Componenti per Veicoli S.p.A.

Modugno (Bari)

100.0

EDiM S.p.A.

Villasanta

100.0

Freud S.p.A.

Milan

100.0

Holger Christiansen Italia S.r.l.

San Lazzaro di Savena

100.0

ROBERT BOSCH S.p.A. Società Unipersonale

Milan

100.0

Tecnologie Diesel S.p.A. Società Unipersonale

Modugno (Bari)

100.0

BSH Home Appliances LLP

Almaty100.0

TOO Robert Bosch

Almaty100.0

Robert Bosch SIA

Riga

100.0

Kazakhstan

LatviaAnnual report 2023

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Additional information

217
Region/country

Company nameRegistered office

Percentage shareof capital

Luxembourg

BSH électroménagers S.A.

Senningerberg

100.0

Ferroknepper Buderus S.A.

Esch-sur-Alzette

100.0

Bosch Energy and Building Solutions B.V.

Nieuwegein

100.0

Bosch Power Tools B.V.

Breda

100.0

Bosch Rexroth B.V.

Boxtel100.0

Bosch Security Systems B.V.

Eindhoven

100.0

Bosch Thermotechniek B.V.

Deventer

100.0

Bosch Transmission Technology B.V.

Tilburg

100.0

BSH Huishoudapparaten B.V.

Amsterdam

100.0

Digicontrol Benelux B.V.

Apeldoorn

100.0

ELPRO Benelux B.V.

s’-Hertogenbosch

100.0

Hacousto Holland B.V.

Berkel en Rodenrijs

100.0

ItoM Services B.V.

Eindhoven

100.0

Nefit Vastgoed B.V.

Deventer

100.0

Robert Bosch Asset Managing C.V.

Boxtel100.0

Robert Bosch B.V.

Boxtel100.0

Robert Bosch Finance Nederland B.V.

Boxtel100.0

Robert Bosch Holding Nederland B.V.

Boxtel100.0

Robert Bosch Investment Nederland B.V.

Boxtel100.0

Bosch Rexroth AS

Ski

100.0

BSH Husholdningsapparater AS

Oslo

100.0

Robert Bosch AS

Trollåsen

100.0

Bosch Rexroth Sp. z o.o.

Warsaw

100.0

BSH Sprzet Gospodarstwa Domowego Sp. z o.o.

Warsaw

100.0

ROBERT BOSCH Sp. z o.o.

Warsaw

100.0

SIA Abrasives Polska Sp. z o.o.

Goleniów

100.0

Netherlands

NorwayPolandAnnual report 2023

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Additional information

218
Percentage shareof capital

Region/country

Company nameRegistered office

Portugal

Bosch Car Multimedia Portugal, S.A.

Braga

100.0

Bosch Security Systems, S.A.

Ovar

100.0

Bosch Termotecnologia S.A.

Lisbon100.0

BSHP Electrodomésticos, S.U., Lda.

Carnaxide

100.0

Robert Bosch, S.A.

Lisbon100.0

Bosch Automotive S.R.L.

Blaj

100.0

Bosch Global Business Services S.R.L.

Timişoara

100.0

Bosch Rexroth Sales S.R.L.

Blaj

100.0

Bosch Service Solutions S.R.L.

Timişoara

100.0

BSH Electrocasnice S.R.L.

Bucharest

100.0

ROBERT BOSCH S.R.L.

Bucharest

100.0

S.C. Hörburger s.r.l.

Sibiu

100.0

OOO “Construction & investments”

Khimki

100.0

OOO Bosch Rexroth

Moscow

100.0

OOO Bosch Thermotechnik

Moscow

100.0

OOO BSH Bytowije Pribory

St. Petersburg

100.0

OOO Robert Bosch

Moscow

100.0

BSH Kućni Aparati d.o.o. Beograd

Belgrade

100.0

Robert Bosch d.o.o. Beograd

Belgrade

100.0

Bosch Electrical Drives SK s.r.o.

Bratislava

100.0

BSH Drives and Pumps s.r.o.

Michalovce

100.0

Robert Bosch spol.s.r.o.

Bratislava

100.0

Robert Bosch Production Slovakia, s.r.o.

Bernolákovo

100.0

Romania

Russian Federation

SerbiaSlovakia

Annual report 2023

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Consolidated financial statements

Additional information

219
Percentage shareof capital

Region/country

Company nameRegistered office

Slovenia

Bosch Rexroth d.o.o.

Brnik – Aerodrom

100.0

BSH Hišni Aparati d.o.o. Nazarje

Nazarje

100.0

Bosch Rexroth, S.L.U.

Madrid100.0

Bosch Service Solutions, S.A.U.

Madrid100.0

BOSCH SISTEMAS DE FRENADO, S.L.U.

Madrid

100.0

BSH Electrodomésticos España, S.A.

Zaragoza

100.0

ROBERT BOSCH ESPAÑA FÁBRICA ARANJUEZ S.A.U.

Aranjuez

100.0

ROBERT BOSCH ESPAÑA FÁBRICA CASTELLET S.A.U.

Castellet

100.0

ROBERT BOSCH ESPAÑA FÁBRICA MADRID S.A.U.

Madrid100.0

ROBERT BOSCH ESPAÑA, S.L.U.

Madrid100.0

Bosch Rexroth AB

Stockholm

100.0

Bosch Thermoteknik ABTranås100.0

BSH Home Appliances AB

Stockholm

100.0

Robert Bosch AB

Kista

100.0

Bosch Rexroth Schweiz AG

Buttikon

100.0

BSH Hausgeräte AG

Geroldswil

100.0

Bosch Thermotechnik AG

Pratteln

100.0

ELPRO-BUCHS AG

Buchs

100.0

Elpro Group AG

Buchs

100.0

Robert Bosch AG

Zuchwil

100.0

Robert Bosch Internationale Beteiligungen AG

Oberdorf

100.0

Scintilla AG

Zuchwil

100.0

sia Abrasives Industries AG

Frauenfeld

100.0

Bosch Fren Sistemleri Sanayi ve Ticaret A.S.

Bursa

84.5

Bosch Rexroth Otomasyon Sanayi ve Ticaret A.S.

Bursa

100.0

Spain

SwedenSwitzerland

TurkeyAnnual report 2023

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Additional information

220
Region/country

UkraineUnited Kingdom

Percentage shareof capitalCompany nameRegistered office

Bosch Sanayi ve Ticaret A.S.

Bursa

100.0

Bosch Termoteknik Isitma ve Klima Sanayi Ticaret A.S.

Manisa100.0

BSH Ev Aletleri Sanayi ve Ticaret A.S.

Istanbul

100.0

MBT Trade T.B.O.

Kyiv

100.0

SC “Robert Bosch Production Ukraine”

Krakovets

100.0

Robert Bosch Ltd.

Kyiv

100.0

TOV BSH Pobutova Technika

Kyiv

100.0

Zelmer Ukraine T.B.O.

Kyiv

100.0

Bosch Automotive Service Solutions Ltd.

Brixworth

100.0

Bosch Lawn and Garden Ltd.

Stowmarket

100.0

Bosch Rexroth Ltd.

St. Neots

100.0

Bosch Service Solutions Ltd.

Denham100.0

Bosch Thermotechnology Ltd.

Worcester

100.0

BSH Home Appliances Ltd.

Milton Keynes

100.0

ELPRO UK Ltd.

Worthing

100.0

ETAS Ltd.

York

100.0

Five AI Limited

Cambridge

100.0

Gas Alarm Systems Limited

Nelson100.0

HydraForce Hydraulics, Ltd.

Birmingham

100.0

Lynteck Limited

Nelson100.0

MoTeC (Europe) Limited

Oxford100.0

Protec Camerfield Limited

Nelson100.0

Protec Fire and Security Group Limited

Nelson100.0

Protec Fire Detection Plc

Nelson100.0

Protec Fire Detection (Export) Limited

Nelson100.0

Robert Bosch Investment Ltd.

Worcester

100.0

Robert Bosch Ltd.

Denham100.0

Annual report 2023

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Additional information

221
Region/country

Region/country

Percentage shareof capitalCompany nameRegistered office

Robert Bosch UK Holdings Limited

Denham

100.0

sia Abrafoam Ltd.

Alfreton

100.0

sia Abrasives (G.B.) Ltd.

Greetland

100.0

sia Abrasives Holding Ltd.

Greetland

100.0

sia Fibral Ltd.

Greetland

100.0

Worcester Group Ltd.

Worcester

100.0

Company nameRegistered office

Bosch Rexroth S.A.I.C.

Buenos Aires

100.0

Robert Bosch Argentina Industrial S.A.

Buenos Aires

100.0

Bosch Rexroth Ltda.

Itatiba

100.0

Bosch Soluções Integradas Brasil Ltda.

Campinas

100.0

Bosch Telecom Ltda.

São Paulo

100.0

HydraForce Hydraulics, Ltda.

Taboao da Serra

100.0

Robert Bosch Direçáo Automotiva Ltda.

Sorocaba

100.0

Robert Bosch Ltda.

Campinas

100.0

Action Electric Ltd.

Vancouver, BC

100.0

Bosch Rexroth Canada Corporation

Welland, ON

100.0

BSH Home Appliances Ltd./ Électroménagers BSH Ltée

Mississauga, ON

100.0

Freud Canada Inc.

Mississauga, ON

100.0

Paladin Technologies Inc.

Vancouver, BC

100.0

ROBERT BOSCH INC.

Mississauga, ON

100.0

Percentage shareof capital

Americas
Argentina

BrazilCanadaAnnual report 2023

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Consolidated financial statements

Additional information

222
Percentage shareof capital

Region/country

Company nameRegistered office

Chile

Bosch Rexroth Chile S.p.A.

Santiago de Chile

100.0

Robert Bosch S.A.

Santiago de Chile

100.0

BSH Electrodomesticos S.A.S.

Bogotá

100.0

Robert Bosch Ltda.

Bogotá

100.0

Costa Rica

Robert Bosch Service Solutions – Costa Rica Sociedad Anonima

Heredia

100.0

MexicoBosch Rexroth, S.A. de C.V.

Mexico City

100.0

BSH Home Appliances S.A. de C.V.

Mexico City

100.0

Frenados Mexicanos, S.A. de C.V.

Aguascalientes

100.0

Robert Bosch México Sistemas Automotrices, S.A. de C.V.

San Luis Potosí

100.0

Robert Bosch México Sistemas de Frenos, S. de R.L. de C.V.

Juárez100.0

Robert Bosch México Sistemas de Seguridad, S.A. de C.V.

Hermosillo

100.0

Robert Bosch México, S.A. de C.V.

Mexico City

100.0

Robert Bosch Sistemas Automotrices, S.A. de C.V.

Juárez100.0

Robert Bosch Tool de México, S.A. de C.V.

Mexicali

100.0

Robert Bosch, S. de R.L. de C.V.

Toluca100.0

SPLT México, S.A. de C.V.

Mexico City

100.0

PanamaRobert Bosch Panama Colón, S.A.

Panama City

100.0

Peru

BSH Electrodomésticos S.A.C.

Callao/Lima

100.0

Robert Bosch S.A.C.

Lima

100.0

Automotive Steering Column LLC

Florence, KY

100.0

Bosch Automotive Service Solutions LLC

Wilmington, DE

100.0

Bosch Automotive Workshop Services LLC

Wilmington, DE

100.0

Bosch Aviation Technology LLC

Novi, MI

100.0

Colombia

United States

Annual report 2023

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Additional information

223
Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch Brake Components LLC

Oakbrook Terrace, IL

100.0

Bosch grow platform LLC

Wilmington, DE

100.0

Bosch Mobility Platform & Solutions LLC

Wilmington, DE

100.0

Bosch Rexroth Corporation

Lehigh Valley, PA

100.0

Bosch Security Systems LLC

Burnsville, MN

100.0

Bosch Thermotechnology Corp.

Londonderry, NH

100.0

BSH Home Appliances Corporation

Irvine, CA

100.0

Climatec, LLC

Phoenix, AZ

100.0

Elmo Motion Control Inc.

Nashua, NH

100.0

ELPRO Services, Inc.

Marietta, OH

100.0

ETAS Inc.

Wilmington, DE

100.0

FHP Manufacturing Company

Fort Lauderdale, FL

Freud America Inc.

High Point, NC

100.0

HydraForce, Inc.

Lincolnshire, IL

100.0

HydraForce China LLC

Lincolnshire, IL

100.0

Nimbus Holdings LLC

Wilmington, DE

100.0

Paladin Technologies (USA) Inc.

Dover, DE

100.0

PalAmerican Technologies Inc.

Tumwater, WA

100.0

Robert Bosch Automotive Steering LLC

Florence, KY

100.0

Robert Bosch Finance LLC

Mt. Prospect, IL

100.0

ROBERT BOSCH FUEL SYSTEMS LLC

Kentwood, MI

100.0

Robert Bosch LLC

Farmington Hills, MI

100.0

Robert Bosch North America Corporation

Oakbrook Terrace, IL

100.0

Robert Bosch Semiconductor LLC

Wilmington, DE

100.0

Robert Bosch Tool Corporation

Mt. Prospect, IL

100.0

Service Maintenance Installation, Inc.

Burnsville, MN

100.0

sia Abrasives, Inc. USA

Raleigh, NC

100.0

57.0

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

224
Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch Automotive Service Solutions Pty. Ltd.

Clayton

100.0

Bosch Rexroth Pty. Ltd.

Kings Park

100.0

Bosch Security Systems Pty. Ltd.

Sydney100.0

BSH Home Appliances Pty. Ltd.

Heatherton

100.0

MoTeC PTY LTD

Croydon South

100.0

MoTeC Holdings PTY LTD

Docklands

100.0

Protec Fire Detection Pty Ltd

Sydney100.0

Robert Bosch (Australia) Pty. Ltd.

Clayton

100.0

sia Abrasives Australia Pty. Ltd.

Rowville

100.0

Botswana

Bosch Rexroth Botswana (Pty) Ltd.

Gaborone

100.0

China

Bosch (Chengdu) Information Technology Service Co., Ltd.

Chengdu

100.0

Bosch (China) Investment Ltd.

Shanghai

100.0

Bosch (Donghai) Automotive Test & Technology Center Co., Ltd.

Donghai

100.0

Bosch (Hulunbeier) Automotive Test and Technology Centre Co., Ltd.

Yakeshi

100.0

Bosch (Ningbo) e-scooter Motor Co., Ltd.

Ningbo100.0

Bosch (Shanghai) Digital Technology Ltd.

Shanghai

100.0

Bosch (Shanghai) Investment Consulting Co., Ltd.

Shanghai

100.0

Bosch (Shanghai) Security Systems Ltd.

Shanghai

100.0

Bosch (Shanghai) Smart Life Technology Ltd.

Shanghai

100.0

Bosch (Shanghai) Venture Capital Investment Co., Ltd.

Shanghai

100.0

Bosch (Zhuhai) Security Systems Co., Ltd.

Zhuhai

100.0

Bosch Automotive Aftermarket (China) Co., Ltd.

Nanjing

100.0

Bosch Automotive Components (Changchun) Co., Ltd.

Changchun

55.0

Bosch Automotive Products (Changsha) Co., Ltd.

Changsha

100.0

Bosch Automotive Products (Chengdu) Co., Ltd.

Chengdu

100.0

Asia Pacific (including
other countries)
Australia

Annual report 2023

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Additional information

225
Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch Automotive Products (Suzhou) Co., Ltd.

Suzhou100.0

Bosch Automotive Service Solutions (Suzhou) Co., Ltd.

Suzhou100.0

Bosch Automotive Steering (Jinan) Co., Ltd.

Jinan

100.0

Bosch Automotive Systems (Wuxi) Co., Ltd.

Wuxi

100.0

Bosch Automotive Technical Service (Beijing) Co., Ltd.

Beijing

100.0

Bosch Connected Mobility Solutions Ltd.

Wuxi

100.0

Bosch Electronics Trading (Suzhou) Co., Ltd.

Suzhou100.0

Bosch HUAYU Steering Systems (Nanjing) Co., Ltd.

Nanjing

100.0

Bosch HUAYU Steering Systems (Wuhan) Co., Ltd.

Wuhan

100.0

Bosch HUAYU Steering Systems (Yantai) Co., Ltd.

Yantai

100.0

Bosch HUAYU Steering Systems Co., Ltd.

Shanghai

51.0

Bosch Hydrogen Powertrain Systems (Chongqing) Co., Ltd.

Chongqing

60.0

Bosch Innovation and Software Development (Wuxi) Co., Ltd.

Wuxi

100.0

Bosch Laser Equipment (Dongguan) Limited

Dongguan

100.0

Bosch Power Tools (Chengdu) Co., Ltd.

Chengdu

100.0

Bosch Power Tools (China) Co., Ltd.

Hangzhou

100.0

Bosch Powertrain Systems Co., Ltd.

Wuxi

66.0

Bosch Rexroth (Beijing) Hydraulic Co., Ltd.

Beijing

100.0

Bosch Rexroth (Changzhou) Co., Ltd.

Changzhou

100.0

Bosch Rexroth (China) Ltd.

Hong Kong

100.0

Bosch Rexroth (Xi’an) Electric Drives and Controls Co., Ltd.

Xi’an

100.0

Bosch Security Systems Ltd.

Hong Kong

100.0

Bosch Thermotechnology (Beijing) Co., Ltd.

Beijing

100.0

Bosch Thermotechnology (Shanghai) Co., Ltd.

Shanghai

100.0

Bosch Thermotechnology (Wuhan) Co., Ltd.

Wuhan

100.0

Bosch Trading (Shanghai) Co., Ltd.

Shanghai

100.0

BSH Electrical Appliances (Jiangsu) Co., Ltd.

Nanjing

100.0

BSH Home Appliances (China) Co., Ltd.

Nanjing

100.0

BSH Home Appliances Co., Ltd.

Chuzhou

100.0Annual report 2023

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226
Region/country

Percentage shareof capitalCompany nameRegistered office

BSH Home Appliances Holding (China) Co., Ltd.

Nanjing

100.0

BSH Home Appliances Ltd.

Hong Kong

100.0

BSH Home Appliances Service Jiangsu Co., Ltd.

Nanjing

100.0

BSW Household Appliances Co., Ltd.

Wuxi

100.0

ETAS Automotive Technology (Shanghai) Co., Ltd.

Shanghai

100.0

Gaggenau Home Appliances (Shanghai) Co., Ltd.

Shanghai

100.0

Guangzhou sia Abrasives Company Ltd.

Guangzhou

100.0

HydraForce Hydraulics Systems (Changzhou) Co., Ltd.

Guangzhou

100.0

Le-AutomatiX (Shanghai) Co., Ltd.

Shanghai

100.0

Le-HydrauliX (Suzhou) Co., Ltd.

Suzhou100.0

Le-HydrauliX BoWei (Shanghai) Co., Ltd.

Shanghai

50.0

Robert Bosch Company Ltd.

Hong Kong

100.0

Shanghai Bosch Rexroth Hydraulics & Automation Ltd.

Shanghai

100.0

Taixiang Vehicle Replace Parts (Shenzhen) Co., Ltd.

Shenzhen

100.0

United Automotive Electronic Systems (Chongqing) Co., Ltd.

Chongqing

65.0

United Automotive Electronic Systems (Liuzhou) Co., Ltd.

Liuzhou

100.0

United Automotive Electronic Systems Co., Ltd.

Shanghai

51.0

BSH Home Appliances Holding LLP

New Cairo

100.0

BSH Home Appliances LLC

New Cairo

100.0

Ghana

Bosch Rexroth Ghana Ltd.

Accra

100.0

India

Automobility Services and Solutions Private Limited

Bengaluru

100.0

Bosch Automotive Electronics India Private Ltd.

Bengaluru

100.0

Bosch Chassis Systems India Private Ltd.

Pune

100.0

Bosch Global Software Technologies Private Limited

Bengaluru

100.0

Bosch Ltd.

Bengaluru

70.5

Bosch Rexroth (India) Private Limited

Ahmedabad

100.0

Egypt

Annual report 2023

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Additional information

227
Region/country

Indonesia

Israel

Japan

Korea

Percentage shareof capitalCompany nameRegistered office

BSH Household Appliances Manufacturing Private Limited

Mumbai100.0

ETAS Automotive India Private Ltd.

Bengaluru

100.0

Robert Bosch Automotive Steering Private Limited

Pune

100.0

Robert Bosch India Manufacturing and Technology Private Limited

Bengaluru

100.0

PT. Robert Bosch

Jakarta

100.0

PT BSH Home Appliances

Jakarta

100.0

BSH Home Appliances Ltd.

Herzliya

100.0

Elmo Motion Control Ltd.

Petah Tikva

100.0

Bosch Corporation

Tokyo

100.0

Bosch Engineering K.K.

Yokohama

100.0

Bosch Global Software Technologies Ltd.

Tokyo

100.0

Bosch Rexroth Corporation

Tsuchiura-shi

99.9

Bosch Security Systems Ltd.

Tokyo

100.0

ELPRO Corporation

Tokyo

100.0

ETAS K.K.

Yokohama

100.0

FA Niigata Co., Ltd.

Niigata

100.0

Fuji Aitac Co., Ltd.

Saitama

100.0

Gunma Seiki Co., Ltd.

Gunma

100.0

Nippon Injector Corporation

Odawara50.0

Bosch Electrical Drives Co., Ltd.

Sejong

100.0

Bosch Rexroth Korea Ltd.

Busan

100.0

ETAS Korea Co., Ltd.

Seoul

100.0

KB Wiper Systems Co., Ltd.

Daegu

100.0

Robert Bosch Korea Limited Company

Daejeon

100.0

Annual report 2023

List of shareholdings of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

228
Percentage shareof capital

Region/country

Company nameRegistered office

Malaysia

Bosch Power Tools Engineering Sdn. Bhd.

Penang

100.0

Bosch Rexroth Sdn. Bhd.

Kuala Lumpur

100.0

BSH Home Appliances Sdn. Bhd.

Kuala Lumpur

100.0

Robert Bosch (Malaysia) Sdn. Bhd.

Penang100.0

Robert Bosch Power Tools Sdn. Bhd.

Penang100.0

Robert Bosch Automotive Steering Sdn. Bhd.

Penang100.0

Robert Bosch Sdn. Bhd.

Kuala Lumpur

100.0

Robert Bosch Semiconductor Manufacturing Penang Sdn. Bhd.

George Town Pulau Pinang

100.0

BSH Electroménagers (SA)Casablanca

100.0

Robert Bosch Morocco S.A.R.L.-A.U.

Casablanca

100.0

Bosch Rexroth Mozambique Lda.

Maputo100.0

Bosch Rexroth Matola Lda.

Matola100.0

Namibia

Bosch Rexroth Namibia (Pty.) Ltd.

Walvis Bay

100.0

New Zealand

BSH Home Appliances Ltd.

Auckland

100.0

Philippines

Bosch Service Solutions, Inc.

Manila100.0

Robert Bosch Inc.

Manila100.0

AquaEasy Pte. Ltd.

Singapore

100.0

Bosch Rexroth Pte. Ltd.

Singapore

100.0

BSH Home Appliances Pte. Ltd.

Singapore

100.0

ELPRO Pte. Ltd.

Singapore

100.0

Robert Bosch (South East Asia) Pte. Ltd.

Singapore

100.0

Robert Bosch Security Solutions Pte. Ltd.

Singapore

100.0

MoroccoMozambiqueSingapore

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Percentage shareof capital

Region/country

Company nameRegistered officeSouth Africa

Bosch Rexroth South Africa (RF) (Pty) Ltd.

Johannesburg

100.0

BSH Home Appliances (Pty.) Ltd.

Johannesburg

100.0

Corgam Property Investments Pty. Ltd.

Kempton Park

100.0

Hydraulic and Automation Warehouse Pty. Ltd.

Kempton Park

100.0

Hytec Engineering Pty. Ltd.

Kempton Park

100.0

Hytec Fluid Technology Pty. Ltd.

Kempton Park

100.0

Bosch Rexroth Africa Development (RF) (Pty.) Ltd.

Kempton Park

100.0

Hytec South Africa (RF) (Pty) Ltd.

Kempton Park

75.0

Robert Bosch (Pty.) Ltd.

Midrand100.0

Tectra Automation Pty. Ltd.

Kempton Park

100.0

Bosch Rexroth Co. Ltd.

Taipei City

100.0

BSH Home Appliances Private Limited

Taipei City

100.0

Robert Bosch Taiwan Co., Ltd.

Taipei City

100.0

Bosch Automotive Thailand Co. Ltd.

Rayong87.9

BSH Home Appliances Ltd.

Bangkok

100.0

Robert Bosch Automotive Technologies (Thailand) Co., Ltd.

Rayong100.0

Robert Bosch Ltd.

Bangkok

100.0

BSH Home Appliances FZE

Dubai

100.0

BSH Home Appliances General Trading LLC

Dubai

100.0

Robert Bosch Middle East FZE

Dubai

100.0

Bosch Vietnam Co., Ltd.

Dong Nai Province

100.0

Bosch Global Software Technologies Co. Ltd.

Ho Chi Minh City

100.0

BSH Home Appliances (Vietnam) Co. Ltd.

Ho Chi Minh City

100.0

Bosch Rexroth Zambia Ltd.

Kitwe

100.0

TaiwanThailand

United Arab Emirates

Vietnam

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2. Non-consolidated entities

Percentage shareof capital

Region/country

Company nameRegistered office

Germany

Advanced Driver Information Technology GmbH

Hildesheim

100.0

AIG Planungs- und Ingenieurgesellschaft mbH

Stuttgart

100.0

Bosch Climate Solutions GmbH

Stuttgart

100.0

Bosch Management Support GmbH

Leonberg

100.0

Bosch Pensionsfonds AG

Stuttgart

100.0

BSH Altersfürsorge GmbH

Munich100.0

Circular Economy Solutions GmbH

Göttingen

100.0

eAx solutions GmbH

Stuttgart

100.0

ECP Energiecontracting GmbH

Heidelberg

81.0

Elmo Motion Control GmbH

Viernheim

100.0

for you Insurance Services GmbH

Gerlingen

100.0

GFI – Gesellschaft für Infrastrukturdienste mbH

Reutlingen

100.0Home Connect GmbH

Munich100.0

HydraForce Hydraulics GmbH

Zweibrücken

100.0

Joos MSR GmbH

Spraitbach

51.0

Kassow Robots GmbH

Ulm

100.0

Koller + Schwemmer GmbH

Nuremberg

100.0

Mobility Media GmbH

Gerlingen

100.0

Prüfzentrum Boxberg GmbH

Boxberg

100.0Service- und Betriebsgesellschaft Heidehof mbH

Stuttgart

100.0

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Region/country

Percentage shareof capitalCompany nameRegistered office

Austria

ITK Engineering GmbH

Premstätten

100.0

Belarus

Robert Bosch OOO

Minsk

100.0

Bulgaria

Robert Bosch EOOD

Sofia

100.0

Croatia

Robert Bosch d.o.o.

Zagreb100.0

Czech Republic

KR Soft s.r.o.

Prague100.0

Estonia

Robert Bosch OÜ

Tallinn

100.0

Georgia

Robert Bosch Ltd.

Tblisi

100.0

GreeceBosch Rexroth S.A.

Athens

100.0

Italy

Elmo Italy S.R.L.

Milan

100.0

Lithuania

UAB Robert Bosch

Vilnius100.0

Netherlands

Semiconductor Ideas To The Market (ItoM) B.V.

Eindhoven

100.0

ItoM Enschede B.V.

Enschede

100.0

PolandElmo Motion Control Poland Sp. z o.o.

Warsaw

100.0

Romania

Bosch Servicii Termotehnica S.R.L.

Bucharest

100.0

BSH Electrocasnice Manufacturing S.R.L.

Bucharest

100.0

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Percentage shareof capital

Region/country

Company nameRegistered office

Slovenia

BSH Hišni aparati I.D. INVALIDSKA DRUŽBA d.o.o.

Nazarje

100.0

Robert Bosch d.o.o.

Ljubljana

100.0

Bosch Automotive Service Solutions S.A.U.

Madrid100.0

BOSCH HOME COMFORT GROUP SERVICE ESPANA, S.L.

Madrid100.0

ITK Systems Engineering, S.L.U.

Barcelona

100.0

Switzerland

Elmo Motion Control AG

Biel

100.0

United Kingdom

Bosch Automotive Training Limited

Motherwell

100.0

Camerfield Limited

Nelson100.0

Face Macanda Limited

Nelson100.0

Firepro Systems Limited

Nelson100.0

HydraForce Ltd.

Birmingham

100.0

LAGTA Group Training Limited

Motherwell

100.0

XL Fire Detection Systems Ltd.

Nelson

100.0

Spain

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Region/country

Percentage shareof capitalCompany nameRegistered office

Bosch Management Support Ltda.

Campinas

100.0

Metapar Usinagem Ltda.

Curitiba

100.0

Robert Bosch Centro de Comunicação Limitada

Joinville

100.0

sia Abrasivos Industriais Ltda.

São José dos Pinhais

100.0

CanadaETAS Embedded Systems Canada Inc.

Waterloo, ON

100.0

Ecuador

Robert Bosch Sociedad Anónima – Ecuabosch

Guayaquil

100.0

MexicoBosch Management Services México, S.C.

Mexico City

100.0

Paraguay

Robert Bosch Sociedad Anonima

Asunción

100.0

Peru

Bosch Rexroth S.A.C.

Lima

100.0

United States

Bosch Management Services Corporation

Wilmington, DE

100.0

Bosch Solar Energy Corp.

Detroit, MI

100.0

HydraForce India LLC

Lincolnshire, IL

100.0

HydraForce Japan LLC

Lincolnshire, IL

100.0

HydraForce Korea LLC

Lincolnshire, IL

100.0

HydraForce Sweden LLC

Lincolnshire, IL

100.0

ITK Engineering, LLC

Farmington Hills, MI

100.0

Uruguay

Robert Bosch Uruguay S.A.

Montevideo

100.0

Venezuela

Robert Bosch S.A.

Caracas100.0

AmericasBrazilAnnual report 2023

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Region/country

Percentage shareof capitalCompany nameRegistered office

AngolaRobert Bosch, Limitada

Luanda100.0

Australia

Pacifica Group Pty. Ltd.

Melbourne

100.0

Bangladesh

Robert Bosch (Bangladesh) Ltd.

Dhaka

100.0

Cambodia

Robert Bosch (Cambodia) Co., Ltd.

Phnom Penh

100.0

China

Elmo Motion Control Technology (Shanghai) Co., Ltd.

Shanghai

100.0

Freud International Trading (Shanghai) Co., Ltd.

Shanghai

100.0

ITK Engineering Technology (Wu Xi) Co., Ltd.

Wuxi

100.0

KB Wiper Systems (JiangYin) Co., Ltd.

Jiangyin

100.0

Shanghai Boyuan Jiacheng Venture Investment Partnership

Shanghai

99.0

Bosch Rexroth Egypt LLC

Cairo

100.0

RBEG LLC

Cairo

100.0

Robert Bosch Holding-Egypt LLC

Cairo

100.0

Robert Bosch Ltd.

Cairo

100.0

Ghana

Robert Bosch Ghana Ltd.

Accra

100.0

India

KB Wiper Systems India Private Ltd.

Oragadam

100.0

MIVIN Engineering Technologies Private Ltd.

Bengaluru

100.0

Newtech Filter India Private Limited

Nalagarh

100.0

Precision Seals Manufacturing Ltd.

Chakan100.0

Asia Pacific (including
other countries)

Egypt

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Percentage shareof capital

Region/country

Company nameRegistered office

Indonesia

PT Aquaeasy Technology Indonesia

Jakarta

100.0

PT Bosch Rexroth

Jakarta

100.0

PT KB Wiper Systems Indonesia

Cikarang

100.0

PT Robert Bosch Automotive

Jakarta

100.0

Iran

Bosch Tejarat Pars

Tehran100.0

IsraelRobert Bosch Technologies Israel Ltd.

Tel Aviv

100.0

Japan

Bosch Service Solutions Corporation

Tokyo

100.0

ITK Engineering Japan, Inc.

Tokyo

100.0

Kanto Seiatsu Kogyo Co., Ltd.

Honjo

92.9

Kenya

Robert Bosch East Africa Ltd.

Nairobi

100.0

Korea

Elmo Motion Control APAC Ltd.

Hwaseong

100.0

Laos

Robert Bosch (Lao) Sole Co., Ltd.

Vientiane Capital

100.0

Malaysia

Robert Bosch (Penang) Sdn. Bhd.

Penang100.0

MoroccoBosch Rexroth Morocco S.A.R.L.

Casablanca

100.0

New Zealand

Bosch Rexroth Ltd.

Auckland100.0

Robert Bosch Ltd.

Auckland100.0

Robert Bosch Limited

Lagos

100.0

Nigeria

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Company name

Saudi Arabia

BSH Home Appliances Saudi Arabia LLC

Jeddah51.0

Robert Bosch Saudi Arabia Ltd.

Riyadh100.0

Elmo Motion Control (Singapore) PTE Ltd.

Singapore

100.0

WhatsEGG Pte. Ltd.

Singapore

78.6

South Africa

Hägglunds Drives South Africa (Pty.) Ltd.

Fourways

100.0

Sri Lanka

Robert Bosch Lanka (Pvt.) Ltd.

Colombo

100.0

ThailandFMP Distribution Ltd.

Bangkok

50.1

FMP Group (Thailand) Ltd.

Rayong50.7

Pacific BBA (Thailand) Ltd.

Bangkok

100.0

WhatsEgg (Thailand) Co. Ltd.

Bangkok

70.0

Robert Bosch Tunisie S.A.R.L.

Tunis

100.0

Singapore

Tunisia

Registered office

Percentage shareof capital

Region/country

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B. Joint ventures and associated entities
1. Entities measured using the equity method

Percentage shareof capital

Region/country

Company nameRegistered office

Germany

Bosch BASF Smart Farming GmbH

Cologne50.0

BS Systems GmbH & Co. KG

Zusmarshausen

50.0

MAGURA Bosch Parts & Services GmbH & Co. KG

Bad Urach50.0

plc2 Design GmbHEndingen am Kaiserstuhl

25.0

Company nameRegistered office

Irelandads-tec Energy plc

DublinRegion/country

Company nameRegistered office

North America Fuel Systems Remanufacturing LLC

Kentwood, MI

Region/country

Percentage shareof capital

Europe20.7

Percentage shareof capital

Americas
United States

50.0

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2. Entities not measured using the equity method on materiality grounds

Percentage shareof capital

Region/country

Company nameRegistered office

Germany

Alltrucks GmbH & Co. KG

Munich33.3

Blauhut & Partner Informationssysteme GmbH

Egling42.9

European Center for Information and Communication Technologies – EICT GmbH

Berlin20.0

Aranea Battery Solutions GmbH

Stuttgart

50.0

MAGURA Bosch Parts & Services Verwaltungs-GmbH

Bad Urach

50.0

Siliconally GmbH

Dresden

38.8

SupplyOn AG

Hallbergmoos

42.1

Company nameRegistered office

Hungary

Kazántrade Kft.

Budapest

30.0

Italy

BARI SERVIZI INDUSTRIALI Società consortile a r.l.

Modugno50.0

Oleodinamica Gambini S.r.l.

Modena20.0

Euroradiators Holding B.V.

Boxtel49.0

Nederlandse Veiligheidsdienst Groep Meldkamer B.V.

Goes

20.0

Tradeplace B.V.

Amsterdam

20.0

PolandLoos Centrum Sp.z o.o.

Warsaw

26.0

United Kingdom

Megasets Ltd.

London25.1

Region/country

Percentage shareof capital

EuropeNetherlands

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Region/country

Percentage shareof capitalCompany nameRegistered officeBrazilPEÇA AI.COM S.A.

São Paulo

20.0

MexicoPartsTech S.A. de C.V.

Guadalajara

49.0

United States

Shop-Ware Inc.

San Francisco, CA

21.0

Region/country

Company nameRegistered office

FMP Group (Australia) Pty. Ltd.

Ballarat

49.0

The Yield Technology Solution Pty. Ltd.

Hobart

28.7

China

HEFEI M&B Air Conditioning Equipment Co., Ltd.

Heifei

40.0

India

AMP Solar Infrastructure Private Limited

New Delhi

26.0

Autozilla Solutions Pvt. Ltd.

Hyderabad

26.0

Hinduja Renewables One Pvt. Ltd.

Mumbai26.0

Prebo Automotive Pte. Ltd.

Pune

40.0

Simyog Technology Pvt. Ltd.

Bengaluru

24.7

Electra Industries Ltd.

Rishon LeZion

40.0

Americas

Percentage shareof capital

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other countries)
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C. Other investments

Region/country

Percentage shareof capitalCompany nameRegistered office

Austria

RobArt GmbH

Linz

24.8

Netherlands

Intrinsic ID B.V.

Eindhoven

28.2

United Kingdom

Sunlight.io Ltd.

Cambridge

27.0

Region/country

Company nameRegistered office

China

Boyuan (Shanghai) Investment Management Co., Ltd.

Shanghai

50.0

IsraelAllegro Artificial Intelligence Ltd.

Ramat Gan

20.4

EuropePercentage shareof capital

Asia Pacific (including
other countries)

Stuttgart, March 6, 2024
Robert Bosch Gesellschaft mit beschränkter Haftung
The board of management
Dr. Stefan Hartung
Dr. Christian Fischer
Dr. Markus Forschner
Stefan Grosch
Dr. Markus Heyn
Dr. Frank Meyer
Dr. Tanja Rückert

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Auditor’s report
Independent auditor’s report

In our opinion, on the basis of the knowledge obtained in theaudit,To Robert Bosch Gesellschaft mit beschränkter Haftung

Opinions
We have audited the consolidated financial statements ofRobert Bosch Gesellschaft mit beschränkter Haftung, Stutt­
gart and its subsidiaries (the Group), which comprise theconsolidated income statement and consolidated statementof comprehensive income for the fiscal year from January 1
to December 31, 2023, the consolidated statement of finan­cial position as at December 31, 2023, the consolidated
statement of changes in equity and the consolidated state­ment of cash flows for the fiscal year from January 1 to De­
cember 31, 2023, and notes to the consolidated financial
statements, including a summary of significant accounting
policies. In addition, we have audited the group manage­
ment report of Robert Bosch Gesellschaft mit beschränkter
Haftung for the fiscal year from January 1 to December 31,
2023. In accordance with the German legal requirements,
we have not audited the content of the statement on corpo­
rate governance pursuant to Sec. 289f (4) HGB [“Handels­gesetzbuch”: German Commercial Code] included in the“Corporate governance report” section of the group manage­
ment report (disclosure on female representation on execu­
tive boards).

― the accompanying consolidated financial statementscomply, in all material respects, with the IFRSs as
adopted by the EU, and the additional requirements ofGerman commercial law pursuant to Sec. 315e (1) HGB
and, in compliance with these requirements, give atrue and fair view of the assets, liabilities and financial
position of the Group as at December 31, 2023, and of its
financial performance for the fiscal year from January 1
to December 31, 2023, and― the accompanying group management report as a wholeprovides an appropriate view of the Group’s position.
In all material respects, this group management report
is consistent with the consolidated financial statements,
complies with German legal requirements and appro­
priately presents the opportunities and risks of future
development. We do not express an opinion on thecontent of the statement on corporate governancereferred to above.
Pursuant to Sec. 322 (3) Sentence 1 HGB, we declare that
our audit has not led to any reservations relating to the legal
compliance of the consolidated financial statements and of
the group management report.

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Basis for the opinions
We conducted our audit of the consolidated financial state­ments and of the group management report in accordancewith Sec. 317 HGB and in compliance with German Generally
Accepted Standards for Financial Statement Audits promul­
gated by the Institut der Wirtschaftsprüfer [Institute of Pub­
lic Auditors in Germany] (IDW ). Our responsibilities underthose requirements and principles are further describedin the “Auditor’s responsibilities for the audit of the consoli­
dated financial statements and of the group management
report” section of our auditor’s report. We are independentof the group entities in accordance with the requirements ofGerman commercial and professional law, and we have ful­
filled our other German professional responsibilities in ac­
cordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate toprovide a basis for our opinions on the consolidated financial
statements and on the group management report.

Other information
The supervisory board is responsible for the supervisoryboard report. The executive directors are responsible for theother information. The other information comprises the cor­porate governance statement mentioned above pursuant toSec. 289f (4) HGB (disclosures on the quota for women on
executive boards). Furthermore, the other information com­prises additional parts to be included in the annual report,of which we obtained a version prior to issuing this audi­
tor’s report, in particular the sections: “Foreword”, “Boardof management”, “Supervisory board report”, “Supervisoryboard”, ”Industrial Trust and International Advisory Commit­tee”, “Business sectors”, “Highlights 2023”, “Stories 2023”
and “Robert Bosch Stiftung”, but not the consolidated finan­cial statements, not the group management report disclo­sures whose content is audited and not our auditor’s report
thereon.

Our opinions on the consolidated financial statements andon the group management report do not cover the other in­formation, and consequently we do not express an opinion
or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read theother information and, in so doing, to consider whether theother information― is materially inconsistent with the consolidated financial
statements, with the group management report or
our knowledge obtained in the audit, or― otherwise appears to be materially misstated.

Responsibilities of the executive directors
and the supervisory board for the consolidated financial statements and the groupmanagement report
The executive directors are responsible for the preparationof the consolidated financial statements that comply, in allmaterial respects, with IFRSs as adopted by the EU and the
additional requirements of German commercial law pursu­
ant to Sec. 315e (1) HGB, and that the consolidated financial
statements, in compliance with these requirements, give atrue and fair view of the assets, liabilities, financial position
and financial performance of the Group. In addition, the ex­ecutive directors are responsible for such internal control
as they have determined necessary to enable the prepara­tion of consolidated financial statements that are free from­material misstatement, whether due to fraud (i.e., fraudulent
finan­cial reporting and misappropriation of assets) or error.

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In preparing the consolidated financial statements, the exec­
utive directors are responsible for assessing the Group’s abil­
ity to continue as a going concern. They also have the respon­
sibility for disclosing, as applicable, matters related to going
concern. In addition, they are responsible for financial report­
ing based on the going concern basis of accounting unlessthere is an intention to liquidate the Group or to cease oper­
ations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the
preparation of the group management report that, as awhole, provides an appropriate view of the Group’s position
and is, in all material respects, consistent with the consoli­
dated financial statements, complies with German legal re­quirements, and appropriately presents the opportunities
and risks of future development. In addition, the executive
directors are responsible for such arrangements and mea­sures (systems) as they have considered necessary to en­able the preparation of a group management report that is inaccordance with the applicable German legal requirements,
and to be able to provide sufficient appropriate evidence forthe assertions in the group management report.
The supervisory board is responsible for overseeing theGroup’s financial reporting process for the preparation of
the consolidated financial statements and of the group man­agement report.

Auditor’s responsibilities for the auditof the consolidated financial statements
and of the group management report
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or
error, and whether the group management report as a wholeprovides an appropriate view of the Group’s position and, inall material respects, is consistent with the consolidated
finan­cial statements and the knowledge obtained in the­audit, complies with the German legal requirements and­appropriately presents the opportunities and risks of future
development, as well as to issue an auditor’s report that­includes our opinions on the consolidated financial state­ments and on the group management report.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with
Sec. 317 HGB and in compliance with German Generally­Accepted Standards for Financial Statement Audits promul­
gated by the Institut der Wirtschaftsprüfer (IDW) will always
detect a material misstatement. Misstatements can arise
from fraud or error and are considered material if, individu­
ally or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on thebasis of these consolidated financial statements and thisgroup management report.

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We exercise professional judgment and maintain professional
skepticism throughout the audit. We also:― Identify and assess the risks of material misstatementof the consolidated financial statements and of thegroup management report, whether due to fraud or
error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinions. The
risk of not detecting a material misstatement resulting
from fraud is higher than the risk of not detecting amaterial misstatement resulting from error, as fraud may
involve collusion, forgery, intentional omissions, mis­representations, or the override of internal control.
― Obtain an understanding of internal control relevant tothe audit of the consolidated financial statements andof arrangements and measures (systems) relevant to theaudit of the group management report in order to design
audit procedures that are appropriate in the circum­
stances, but not for the purpose of expressing an opinion
on the effectiveness of these systems.
― Evaluate the appropriateness of accounting policies
used by the executive directors and the reasonablenessof estimates made by the executive directors and related
disclosures.

― Conclude on the appropriateness of the executive
directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or condi­
tions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in the auditor’s report to the related
disclosures in the consolidated financial statements andin the group management report or, if such disclosures
are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to
be able to continue as a going concern.
― Evaluate the overall presentation, structure and content
of the consolidated financial statements, including
the disclosures, and whether the consolidated financial
statements present the underlying transactions andevents in a manner that the consolidated financial state­ments give a true and fair view of the assets, liabilities,
financial position and financial performance of theGroup in compliance with IFRSs as adopted by the EU
and the additional requirements of German commercial
law pursuant to Sec. 315e (1) HGB.

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245― Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or businessactivities within the Group to express opinions on the
consolidated financial statements and on the groupmanagement report. We are responsible for the direc­
tion, supervision and performance of the group audit.
We remain solely responsible for our audit opinions.
― Evaluate the consistency of the group management
report with the consolidated financial statements,
its conformity with [German] law, and the view of theGroup’s position it provides.
― Perform audit procedures on the prospective informa­tion presented by the executive directors in the groupmanagement report. On the basis of sufficient appro­
priate audit evidence we evaluate, in particular, the­significant assumptions used by the executive directors
as a basis for the prospective information, and evaluate
the proper derivation of the prospective informationfrom these assumptions. We do not express a separate
opinion on the prospective information and on theassumptions used as a basis. There is a substantial
unavoidable risk that future events will differ materiallyfrom the prospective information.

We communicate with those charged with governance re­garding, among other matters, the planned scope and timingof the audit and significant audit findings, including any­significant deficiencies in internal control that we identify
during our audit.
Stuttgart, March 6, 2024
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft

Somes
Wirtschaftsprüferin[German Public Auditor]

BürkleWirtschaftsprüfer[German Public Auditor]

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Additional information

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List of graphs and tables
List of graphs
No.

Name

Page

No.

Name

G 01

Funding 2023

33

G 16

G 02

Shareholders of Robert Bosch GmbH –Shareholding

Capital expenditure – Bosch Group,
2019–2023 (in millions of euros)

96

39

G 17

G 03

Shareholders of Robert Bosch GmbH –­Voting rights

39

Capital expenditure – Bosch Group,
2019–2023 (as a percentage of sales
revenue)

96

Business sectors and divisionsof the Bosch Group

G 18

43

Bosch Group headcount, 2023, year-end
figure – by ­business sector

98

G 05

Mobility: realignment

44

G 19

G 06

Development of sales revenue – Bosch Group2019–2023

Bosch Group headcount, 2023, year-end
figure – by region

99

G 20

G 07

Development of EBIT – Bosch Group 2019–2023

Economic growth by region, 2020–2024 –Real GDP, percentage change on previous year

101

84

G 21

Risk matrix of potential loss

106

G 08

Development of sales revenue, 2022–2023 –Bosch Group sales revenue by region

87

G 09

Structure of sales revenue, 2023 –Bosch Group sales revenue by region

87

G 10

Development of sales revenue, 2022–2023 –Bosch Group sales revenue by business sector

88

G 11

Structure of sales revenue, 2023 –Bosch Group sales revenue by business sector

89

G 12

Research and development cost –­Total cost, Bosch Group, 2019–2023(in millions of euros)

G 04

G 13

84

91

Research and development cost –­Total cost, Bosch Group, 2019–2023(as a percentage of sales revenue)

91

G 14

EBIT by business sector – Bosch Group,2022–2023

93

G 15

Balance-sheet structure – Bosch Group,2022–2023

94

Page

List of tables
No.

Name

Page

T 01

Most important items of the income statement

90

T 02

Bosch Group, statement of cash flows

97

T 03

Consolidated income statement

114

T 04

Consolidated statement of comprehensive
income115

T 05

Consolidated statement of financial position

116

T 06

Consolidated statement of changes in equity

118

T 07

Consolidated statement of cash flows

119

T 08

Exchange rates

123

Annual report 2023

List of graphs and tables

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

248

List of tables
No.

Name

Page

No.

Name

Page

T 09

Development of the consolidated group

126

T 28

Deferred taxes recognized directly in equity

144

T 10

Condensed financial information on fully
consolidated subsidiaries with material
non-controlling interests (I)T 29­

Difference between expected and disclosed
income tax expense

144

T 30

Personnel expenses

146

T 31

Headcount

146

T 32

Cash and cash equivalents

146

T 33

Other current and non-current financial
assets147

T 34

Contract assets

148

T 35

Other current and non-current assets

148

T 36

Inventories

149

T 37

Useful lives of property, plant, and equipment

150

128

T 11

Condensed financial information on fully
consolidated subsidiaries with material
non-controlling interests (II)T 12

Condensed financial information
on individually immaterial joint ventures

T 13

Condensed financial information
on individually immaterial associated entities

131

T 14

Business combinations: fair values

132

T 15

Business combinations: financial information
on business combinations in the previous year

134

T 16

Main groups of assets held for saleand ­related liabilities

T 38

Development of property, plant, and equipment

151

135

T 39

Development of intangible assets

154

T 17

Distribution and administrative cost

138

T 40

Parameters used in impairment testing

157

T 18

Research and development cost

138

T 41

Goodwill by division

158

T 19

Other operating income

138

T 42

Trade payables

159

T 20

Other operating expenses

139

T 43

T 21

Financial income

139

Other current and non-current financial
liabilities

160

T 22

Interest income and expense attributable
to financial instruments

T 44

Contract liabilities

161

140

T 45

Other liabilities

162

T 23

Income tax expense

141

T 46

Other provisions

163

T 24

Breakdown of deferred taxes

141

T 47

Development of provisions

163

T 25

Allocation of deferred tax assets and liabilities
to items in the statement of financial position

142

T 48

Contingent liabilities

165

T 26

Items for which no deferred taxes
were recognized

T 49

Parameters for actuarial calculations

167

143

T 50

T 27

Expiry dates of unused tax losses forwhich no deferred taxes were recognizedMortality tables used in the key countries –current year

168

143

129
130

Annual report 2023

List of graphs and tables

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

249

List of tables
No.

Name

T 51

Mortality tables used in the key countries –previous year

Page

No.

Name

Page

T 71

Currency risks, EUR

196

T 52

Reconciliation of present value of the defined
benefit obligation to the provision

T 72

Currency risks, USD

197

T 73

Interest-rate risks

169

197

T 53

Development of the net liability of thedefined benefit obligation – reporting year

170

T 74

Share-price risks

198

T 54

Development of the net liability of thedefined benefit obligation – previous year

T 75

Other price risks

198

T 76

Credit risk for trade receivables

172

199

T 55

Components of plan assets

174

T 77

Loss allowances on trade receivables, loan
receivables, and sundry other financial assets

200

T 56

Estimated maturities of the undiscounted
estimated pension payments

175

T 78

Gross carrying amounts of trade receivables

200

T 79

Loss allowances on securities

T 57

Sensitivity of the pension provision

175

201

T 58

Shareholders of Robert Bosch GmbH

176

T 80

Credit risk for derivatives

201

T 81

Liquidity risk for trade receivables

202

T 59

Changes in liabilities from financing
activities – reporting year

178

T 82

Liquidity risk for derivatives

202

T 60

Changes in liabilities from financing
activities – previous year

178

T 83

Undiscounted cash flows of non-derivative andderivative financial liabilities – reporting year

203

T 61

Business sector data

179

T 84

Undiscounted cash flows of non-derivative andderivative financial liabilities – previous year

T 62

Reconciliation statements

182

204

T 85

Right-of-use assets and amortization

206

T 63

Disclosures by important country

183

T 64

Net profit/loss by category

187

T 86

Leases: amounts recognized in the income
statement

206

T 65

Carrying amounts and fair values by category

188

T 87

Due dates of receivables from finance leases

207

T 66

Composition of the derivative financial
instruments

190

T 88

Outstanding minimum lease paymentsfrom operating leases

208

T 67

Derivation of fair values – reporting year

T 68

Derivation of fair values – previous year

191

T 89

Related party disclosures

209

192

T 90

Total remuneration of managementin key positions

T 69

Changes in financial assets allocated to level 3of the fair value hierarchy – reporting year

193

210

T 91

Auditor’s fees

210

T 70

Changes in financial assets allocated to level 3of the fair value hierarchy – previous year

193

T 92

Ten-year summary of the Bosch Group

250

168

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List of graphs and tables

The Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

250

Ten-year summary of the Bosch GroupT 92
in millions of euros

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sales revenue

48,95170,607

73,12978,06678,46577,721

71,49478,74888,201

91,596

Research and development cost1

4,959

6,378

6,911

7,264

5,963

6,079

5,890

6,110

7,224

7,331

as a percentage of sales revenue
EBIT
as a percentage of sales revenue
Profit after tax
as a percentage of sales revenue
Capital expenditures
as a percentage of sales revenue
as a percentage of depreciation
Depreciation of property, plant, and equipment

10.1

9.0

9.5

9.3

7.6

7.8

8.2

7.8

8.2

8.0

3,030

4,587

3,335

4,916

5,502

2,903

1,657

2,815

3,474

4,503

6.2

6.5

4.6

6.3

7.0

3.7

2.3

3.6

3.9

4.9

2,637

3,537

2,374

3,274

3,574

2,060

749

2,499

1,838

2,640

5.4

5.0

3.2

4.2

4.6

2.7

1.0

3.2

2.1

2.9

2,585

4,058

4,252

4,345

4,946

4,989

3,312

3,949

4,896

5,499

5.3

5.7

5.8

5.6

6.3

6.4

4.6

5.0

5.6

6.0

138

146

141

140

159

146

101

116

141

161

1,868

2,788

3,022

3,095

3,103

3,421

3,282

3,393

3,474

3,421

Total assets

61,924

77,26681,87581,87083,65487,861

91,36997,723

100,247

108,330

Equity29,541

34,42436,08437,552

39,176

41,07940,16644,30446,72747,894

48

45

44

46

47

47

44

45

47

44

as a percentage of total assets
Dividend of Robert Bosch GmbH

102

142

138

241

242

119

67

143

162

170

Headcount as of December 31 of the year

290,183

374,778

389,281402,166

409,881398,150

395,034

402,614421,338

429,416

Personnel expenses

15,32520,36921,05622,26622,21923,824

22,48323,76624,822

26,821

1. Up to 2017: including development work charged directly to customers.

Annual report 2023

Ten-year summary of the Bosch GroupThe Bosch Group

Robert Bosch StiftungGroup management report

Consolidated financial statements

Additional information

251

Publishing details
Published byRobert Bosch GmbH
Communications andGovernmental Affairs
Postfach 10 60 50
70049 Stuttgart
Germany
Phone +49 711 811-0
contact@bosch.com

Executive vice-president
Prof. Christof Ehrhart

Idea and coordination
Dennis Christmann

Idea, design, and lithography
hw.design GmbH, Munich

Annual report 2023

Publishing details