Sennheiser 2012 Annual Report Download - page 32

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CONSOLIDATED MANAGEMENT REPORT 2012
CONSOLIDATED MANAGEMENT REPORT 2012
INTEGRATED SYSTEMS DIVISION
The Integrated Systems Division closed 2012 with turnover of €90.7 million. This corresponds to growth of
21% year on year. The division recorded significant turnover growth in wireless microphones and
infor mation systems.
One of the focal points in the year under review was reviewing and finalizing the strategy for the new division.
The division now has a clear strategic path mapped out by the company’s strategy and Sennheiser’s values.
At the start of the year, the ADN system, our digital conference solution, was further expanded. The Sennheiser
Easy Control application makes it possible to control and monitor the ADN discussion system from a remote
location, especially in conjunction with our evolution wireless G3 300 and 500 series as well as the 2000 series
transmitters and receivers. For example, the app can be used to monitor the battery’s state of charge, to control
the equalizer or to assign names to the various devices. The ADN conference solution can be used to start
recordings, to set the conference mode and to provide direct access to up to 15 discussion units so that the
administrator can designate the chairperson’s unit or open microphones so that participants may speak.
At mid-year, we unveiled the world’s first AVB microphone at Infocomm in Las Vegas. The prototype received
the “Best of Show” award. We firmly believe that AVB will play an important role in the AV industry in the future.
In the second half of the year, the development of LSP 500 PRO, an innovative, wireless PA system, was driven
forward. Thanks to its excellent scalability, the PA system is perfect for events of any size. The system allows
users to play music via a cable interface or Bluetooth and enables the use of wired and wireless microphones.
Up to 20 such systems can be connected to each other via wireless link and controlled using a multifaceted app,
which also functions as a mixer, among other features.
PROFESSIONAL SYSTEMS DIVISION
The Professional Systems Division generated turnover of €205.1 million in 2012. This corresponds to 10.0%
growth year on year. The regions America, Asia and Australia contributed a disproportionately large share to
this growth.
The new XS Wireless entry-level radio microphone was unveiled at the Prolight+Sound trade fair in Frankfurt.
XS Wireless replaces the previous Freeport models. Sales of this new product family have performed very well.
For the aviation market, we unveiled the new S1 Passive headset. This high value-for-money headset followed
on the heels of the S1 Digital flagship model. The new model is based on the S1 platform and is designed for
private pilots and student pilots who value both excellent noise attenuation and optimum comfort.
CONSUMER ELECTRONICS DIVISION
The Consumer Electronics Division generated turnover of €288.6 million in the year under review. This corre-
sponds to a increase of 7% over 2011.
At the same time, competitive pressure increased against the backdrop of economic turbulence. Never before
have the barriers to entering the mass market for headphones been so low. New competitors are coming from
the fashion and automotive industries as well as other branches of consumer electronics. The result is a highly
fragmented market that is today subject to greater fluctuations than ever before. In light of these developments,
we have consciously decided to slow down our planned portfolio optimization. Radical changes were not realistic
on account of the economic situation in certain markets. However, we intend to focus on these plans again as
soon as the external circumstances permit us to do so.
The premium segment continues to be at the heart of our strategy. Increased competition in Europe requires
new commitment in this market to secure market share.
Sennheiser was very successful in Asia this year as well. We intend to increase this growth further. The diversity
and variety of the Asian market requires a differentiated approach.
Wide-ranging experience, strategic expertise and technical know-how are the three advantages we intend to
leverage to set the Sennheiser brand apart from the competition. This strategy is particularly relevant in a
difficult economic environment, as the industry clearly recognizes our technical know-how.
For instance, the European Imaging and Sound Association (EISA), comprising 50 trade publications, named our
Irish-made HD 700 headphones “European Hi-Fi Headphone 2012-2013.” The product also received the TEC award
at NAMM 2013.
Our IE 800 ear canal phones received the “Best of Innovations” award at the 2013 Consumer Electronics Show
(CES) in Las Vegas. According to the independent panel of industrial designers, engineers and media representa-
tives, the German-made ear canal phones “are at the top of their class, possessing the most innovations per
cubic millimeter.”
The response to our new MOMENTUM headphones has been excellent. MOMENTUM is our answer to the growing
popularity of lifestyle headphones. The high-quality circumaural headphones combine earcups and a headband
made of brown leather with a minimalistic stainless steel earcup slider. MOMENTUM was unveiled at IFA in 2012.
Building on this success story, we presented MOMENTUM Black at CES 2013, which was met with praise from
industry and media representatives.