Core Insights - Bosch Group reported a sales revenue of €90.3 billion for the fiscal year 2024, a decline of 1.4% year-on-year, with an adjusted decline of 0.5% after currency effects [1][4] - The company aims to become one of the top three suppliers in its core markets within the next five years, emphasizing the importance of the Chinese market, which is its largest market outside Germany [1][6] - Bosch's sales in China reached ¥142.7 billion in 2024, reflecting a year-on-year growth of 2.7%, with over ¥60 billion invested in China in 2024 alone [1][9] Financial Performance - The EBIT (Earnings Before Interest and Taxes) for Bosch was €3.1 billion, down from €4.8 billion in 2023, resulting in an EBIT margin of 3.5% [1][4] - Sales in Europe decreased by 4.9%, while sales in the Americas and Asia-Pacific regions grew by 4.8% and 0.7%, respectively [5] - Bosch's intelligent mobility business generated sales of €55.8 billion, while industrial technology sales fell by 13% to €6.4 billion due to adverse market conditions [5] Market Dynamics - Global automotive production is projected to decline from 94 million units in 2023 to 93 million units in 2024, with a 6.7% decrease in the EU and UK [2][4] - The adoption rates of future technologies such as electric mobility and fuel cells are slower than industry expectations, impacting Bosch's core business sectors [4][6] - The competitive landscape in China is described as "overheated," prompting market adjustments and consolidation trends in the automotive sector [6][8] Strategic Focus - Bosch's 2030 strategy aims for an average annual sales growth of at least 6% and a profit margin of at least 7% [6] - The company is investing heavily in future technologies, with nearly €13 billion allocated for forward-looking investments in 2024, including €5.1 billion for capital expenditures and €7.8 billion for R&D [8] - Bosch is focusing on artificial intelligence and software integration in its operations, particularly in the intelligent mobility sector [8][9]

Core Viewpoint - Bosch Group achieved a challenging performance in the 2024 fiscal year, with a sales revenue of €90.3 billion, a year-on-year decrease of 1.4%, and an EBIT margin dropping from 5.3% to 3.5% [4][6]. Group 1: Financial Performance - The automotive sector remains Bosch's largest segment, generating sales of €55.8 billion, maintaining the previous year's level [4]. - The home appliance business grew by 1.6% to €20.3 billion, while energy and building technology fell by 2.7% to €7.5 billion, and machinery and manufacturing saw the largest decline of 13% to €6.4 billion [4]. - In China, Bosch's sales reached ¥142.7 billion, a year-on-year increase of 2.7%, contributing 20% to the overall sales [6]. Group 2: Strategic Focus and Market Position - Bosch's Chairman emphasized the importance of the Chinese market, stating that without entering China, it is difficult to establish a foothold in the automotive supply industry [6]. - The company plans to invest approximately ¥6 billion in China in 2024, with cumulative investments exceeding ¥60 billion over the past decade [6]. - Bosch aims to become one of the top three suppliers in core markets within the next five years [8]. Group 3: Future Outlook and Challenges - Bosch anticipates a 1%-3% natural growth in sales for the 2025 fiscal year, with a significant improvement in EBIT margin expected by 2026 [12]. - The company is implementing structural and personnel adjustments to enhance competitiveness, with a projected reduction in global employee numbers [13]. - Bosch views electric mobility, hydrogen energy, and software-defined vehicles as key growth drivers in the smart mobility sector [15]. Group 4: Technological Development and Innovation - Bosch has supplied over 17 million powertrain components for electric and hybrid vehicles, including 5.5 million electric motors [18]. - The company is focusing on hydrogen internal combustion engines as a significant future technology, despite current market demand challenges [19]. - Bosch is actively developing advanced driver assistance systems (ADAS) and aims to capture a significant share in urban driving assistance [21][24]. Group 5: Impact of Geopolitical Factors - The impact of the U.S.-China trade war on Bosch's operations in China is relatively minor, as most products are locally sourced and produced [26]. - Bosch is increasing R&D investments in China to support local product development and procurement [26]. - The company has established a commercial vehicle group in China, focusing on traditional and emerging technologies [27].