Sennheiser 2012 Annual Report Download - page 34

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CONSOLIDATED MANAGEMENT REPORT 2012
CONSOLIDATED MANAGEMENT REPORT 2012
HUMAN RESOURCES
Against the backdrop of a rapidly changing future employment market, a specific strategy for human resources
at the Sennheiser Group was created in 2012. The most important areas of action for Sennheiser were identified
on the basis of research on the topic of “the future of work,” and the required projects were established. Aspects
of globalization were considered, along with the lack of specialist staff and the demographic changes affecting
society.
The satisfaction of Sennheiser Group employees was investigated on the basis of a survey for the first time in
2012. The analysis revealed above-average positive values for the so-called Employee Engagement Factor and
pointed to further potential in the use of this high commitment. The results were considered by employees and
managers in follow-up workshops in the various organizational units, allowing suitable measures to be
developed.
In the future the survey will be carried out as part of an annually rotating 360 degree management feedback
process. This will allow us to assess the effectiveness and sustainability of the measures taken over time.
The annual average staff level at the Sennheiser Group increased by 6.7% to 2,329 in 2012, including 76 trainees
(previous year: 75). At the end of the year, the number of employees at the Sennheiser Group was 2,465 (previous
year: 2,248). An average of 53% of all employees were working for companies in Germany and 47% for companies
abroad.
EMPLOYEES
Change from previous year, in %
2,500
2,000
1,500
1,000
500
0
2008 2009 2010 2011 2012
2,117
2,132
+0.7 % 2,117
–0.7 %
2,183
+3.1 %
2,329
+6.7 %
1,226
Germany
53 %
1,103
Abroad
47 %
[ Development ]
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RISK MANAGEMENT
In 2012 Sennheiser introduced a central risk management function. It was supported by the established
controlling system, which monitors, manages, and supports all business processes within the Group. This allows
deviations to be quickly identified and effective counteracting measures to be put in place. The Group-wide
divisional reorganization continued in Controlling. The transparency of structures and processes was increased
as a result. This went hand in hand with the development of strategic and operational planning and reporting
tools – which will continue to be developed in the future – for analyzing and assessing medium- and long-term
opportunities and risks.
In the financial year under review, Sennheiser continued its growth trend from the previous year. But the future
growth of the Group will still depend on economic changes around the world. In order to disperse risks, the
Sennheiser Group will continue to focus on different business areas. Increased investment in brand development,
particularly in North America and Asia, as well as in Europe, will help to reduce the company’s dependence on
the general economic climate.
Liquid resources, inasmuch as they are not required by subsidiaries for daily business, are concentrated in the
parent company on the basis of a cash pooling program. Cash and cash equivalents are deposited with several
banks and are mainly denominated in euros. Fluctuations in Sennheiser’s most important trading currencies
had a significant impact on business developments in 2012. The high percentage of turnover generated in
US dollars again created currency risks in 2012. These were successfully offset by concluding an increasing
number of purchases in the US dollar zone, a strategy that the company has been continuously employing for
years. We counteract general default risk with effective customer management. A broadly diversified customer
structure also helps us in this respect.
The globally valid property, liability and transport insurance policy covers the interests of the entire Group,
including all affiliated companies. A Group-wide insurance policy is also in place to protect against reciprocal
risks within the Sennheiser Group and against consequential damages caused by defaulting suppliers.
The brand and product piracy risk has become a permanent threat for renowned manufacturers in the wake of
globalization. Sennheiser cooperates internationally with lawyers and authorities to effectively curb this risk.
The implemented measures include raids, the seizure of products by customs, shutting down trade fair stalls,
and closing down websites and other online offerings. We take legal action against parties that are in breach
of industrial property rights. In 2012, we continued to carry out raids in cooperation with other companies,
primarily in Asia. An interdisciplinary task force with the aim of increasing product security was also founded.
The result was a product security concept which will allow customers to authenticate genuine Sennheiser
products online in the future.
Political decisions threaten the use of the UHF frequency range in its present form.