Sennheiser 2014 Annual Report Download - page 5

CONSOLIDATED MANAGEMENT REPORT 2014CONSOLIDATED MANAGEMENT REPORT 2014
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2. ECONOMIC REP ORT
2.1 OVERALL BUSINESS DEVELOPMENTS AND DEVELOPMENT OF THE INDUSTRY
2.1.1 Overall business development
Global economic growth continued to decline in fiscal year 2014. The primary reason for this is the economic
slump and ongoing weak demand, especially in the eurozone. This situation was further exacerbated by the
conflict in Ukraine. Global financial markets were impacted throughout the year by significant fluctuation in key
currencies. Toward the end of the year, the weak euro in particular led to a curtailment in investment
expenditures.
In the second half of 2014, economic forecasts brightened slightly due to declining crude oil prices and the
associated declining consumer prices.
2.1.2 Development of the industry
The German electronics industry started to recover in mid-2013. Since this trend continued in 2014, the
Sennheiser Group expects business performance to be positive in the future.
Sales volumes in the industry came to €172 billion in the previous fiscal year, marking the first time since 2011
in which they exceeded the previous year’s level. However, they were unable to reach the record level of €178
billion from 2011. The reason for the growth in industry revenue is due largely to the increased number of
exports, the majority of which are going to countries outside the eurozone. The positive revenue growth is also
reflected in moderate increases in production volumes.
MANAGEMENT REPORT
OF THE
SENNHEISER GROUP
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1. P RINCIPLE S
1.1 PRELIMINARY REMARKS
Besides Sennheiser electronic GmbH & Co. KG, the Sennheiser Group consists of eight subsidiaries within Germany
and 21 subsidiaries abroad, including the new subsidiary for Australia and New Zealand founded last year as
well as the joint venture Sennheiser Communications A/S based in Copenhagen, Denmark.
Sennheiser Streaming Technologies GmbH was launched in 2014, expanding the company’s core business with
a center of excellence for developing innovative streaming solutions.
Sennheiser built the Innovation Campus at its headquarters in Wedemark, establishing the audio industry’s
largest modern center for innovation. The facility complex offers around 7,000 m² of space for multi-team
projects working on developing and marketing cutting-edge audio solutions – optimal conditions for developing
even more customer-centric innovations. This is evident not only architecturally, but also in a new way of
working. Trailblazing ideas emerge in multi-discipline, international project teams which bring pioneering audio
solutions every step of the way to our customers.
The Group’s production sites are located in Wennebostel (Germany), Tullamore (Ireland) and Albuquerque (USA).
While Wennebostel chiefly manufactures wireless and wired microphones and microphone capsules, monitoring
systems, high-end headsets and amplifiers, and audio tour systems, the Sennheiser facility in Tullamore manu-
factures headsets and headset transducers as well as speakers. The plant in Albuquerque concentrates on
headphones as well as wireless microphones and monitoring systems. Some functions of product management,
marketing, procurement – as well as part of development for the consumer electronics area – are located in
Singapore.
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