Annual financial results 2019

• Business year 2019: UK sales down by 2.6 percent to £3.2 billion in 2019
• Business developments in 2020: recession driven by coronavirus crisis affecting outlook
• Strategic focus 2020: innovative solutions to support green agenda and decarbonisation

Development of business sectors: Challenging market conditions

Whilst challenges in the global automotive sector have undoubtedly impacted sales, there have been some positive developments. Sales with driver assistance products and engineering services for the luxury segment have seen strong growth. Bosch’s Automotive Aftermarket sales achieved double-digit growth due to strong demand for components such as spark plugs, batteries, filters and wiper blades.

On the other hand, the Industrial Technology division saw flat growth. Continued demand for UK infrastructure projects and orders from key UK customers demonstrate the company’s strength in this sector, particularly in mobile hydraulic drives for construction machines. However, the uncertainty around Brexit delayed many future investment decisions.

The Energy and Building Technology business faced sectoral challenges and strong competition in its mainline residential heating business. On the other hand, Worcester Bosch’s commercial industrial business grew by 5 percent.

The Consumer Goods business sector (home appliances and power tools) held up their position in the market with a 0.8 percent growth, despite challenging market conditions. Thanks to a key focus on the online consumer across a number of retail partners, Power Tools online sales achieved double digit growth.

UK strategy for 2020: Green Agenda

The immediate focus is on mitigating the negative impact of the coronavirus pandemic on the Bosch business. Despite the challenges of the current situation, Bosch is maintaining its long-term strategic course. The supplier of technology and services is continuing with its systematic pursuit of ambitious climate goals and is developing the activities required to support an expansion of sustainable mobility.

Bosch UK President, Steffen Hoffmann, has previously highlighted the importance of a technology neutral approach including the continued use of the internal combustion engine as part of the mobility mix. Hydrogen-based, carbon-neutral synthetic fuels are a promising way to fully decarbonise road traffic, not only in new vehicles, but also in the existing fleet, which will be on the road for many more years. Hoffmann calls for a bold move into the hydrogen economy which, in his view, is the only way the UK can become climate-neutral by 2050. “Today’s hydrogen applications need to make it out of field testing and into the real economy,” Hoffmann said. He continued: “Policymakers must support the necessary technologies, enabling us to achieve even more ambitious climate targets.”

Climate action is accelerating structural change in many sectors. “Hydrogen is increasingly important, not only in the automotive industry, but also in building technology, especially in heating. Our subsidiary, Worcester Bosch, has developed hydrogen-ready residential boilers. This is the best option to fully decarbonise heating and we are very well prepared for this,” Hoffmann said.

Bosch Group: Outlook for 2020 and long-term strategic course

In view of the coronavirus pandemic, Bosch anticipates considerable challenges for the global economy in the current business year. To achieve at least a balanced result will take a supreme effort, the board of management of the Bosch Group announced during the recent Annual Press Conference in Germany. “Although other issues are currently in the spotlight, we must not lose sight of the future of our planet,” said Bosch CEO Volkmar Denner. Bosch will reach its global climate action targets for 2020 and make all its 400 locations worldwide climate-neutral. In addition, Bosch set itself the goal to make upstream and downstream activities along the value chain as climate neutral as possible – by 2030, the associated emissions (Scope 3) are expected to fall by 15 percent. Moreover, the company plans to pool the experience from more than 1,000 energy-efficiency projects of its own in a new advisory company, called Bosch Climate Solutions. As hydrogen is becoming increasingly important, Bosch is working with partners on mobile and stationary fuel cells. When it comes to mobility, what is important according to Denner, is a broad technology offensive that not only sets out a battery-electric path to sustainable mobility, but also takes into consideration efficient combustion engines and especially renewable synthetic fuels and fuel cells.

Wherever possible, Bosch wants to contribute to efforts to contain the pandemic, for instance through the newly developed rapid Covid-19 test and the Vivalytic analysis device. Bosch intends to produce more than a million rapid tests in 2020, and to increase this to three million next year. Furthermore, Bosch produces facemasks and disinfectants in some regions, mainly used for the protection of its associates.

Note to editor

• Bosch contributes to the fight-back against the coronavirus pandemic
• In April, Bosch launched the newly developed rapid Covid-19 test and the Vivalytic analysis device
• Globally Bosch has reconfigured manufacturing lines to produce face masks and hand sanitisers.
• In the UK, Worcester Bosch have repurposed their factory floor at Clay Cross to produce metal ventilator casings, as well as using their large scale printing capabilities to produce patterns for scrubs and their 3D printers to produce ‘ear guards’ for NHS workers’ face masks.
• Bosch Rexroth UK are producing social distancing screens as well as supporting ventilator consortiums with the aluminum cut to size for their trollies and the supply of their Operator Guidance Systems.

Rianne Ojeh
Phone: +44 1895 83 8822
Rianne.Ojeh@uk.bosch.com
Twitter: @boschuknewsroom