Sennheiser 2014 Annual Report Download - page 9

CONSOLIDATED MANAGEMENT REPORT 2014CONSOLIDATED MANAGEMENT REPORT 2014
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5. OUTLOOK, RISKS AND OPPORTUNITIES REPORT
5.1 OUTLOOK
5.1.1 Outlook for the electronics industry in Germany
The Sennheiser Group anticipates continued recovery in the industry for 2015: The Zentralverband Elektrotech-
nik- und Elektronikindustrie (ZVEI), Germany’s central association for the electrical and electronics industry,
forecasts a moderate production growth of 1.5 percent for the current year. In addition, the business climate
within the industry has improved yet again due to the positive assessment of the economic situation in the
beginning of the year. However, the financial markets are currently experiencing a high degree of uncertainty
caused by the weakened euro, which is a result of the ongoing debt crisis in the eurozone as well as the European
Central Bank’s (ECB) expansive monetary policy. The further development of this situation will have a significant
impact not only on the German electronics industry, but on the global economy as a whole.
5.1.2 Outlook for global economic development
According to forecasts, the global economy should perform modestly in 2015. This is due to the merely moderate
growth in developing nations, especially China, as well as a possible recession in the Russian economy, which is
being predicted for a variety of reasons. Sennheiser assumes that the low price of crude oil will somewhat
stimulate demand for consumer goods. Aside from that, the low interest rate policy will promote additional
growth in the capital goods area.
Through its global orientation, the Sennheiser Group is fundamentally in the position to offset limiting effects
in individual global economic crisis regions with positive effects in other markets. The structural expansion of
the Group has already contributed positively here in the past, and will continue to do so in the future. Not only
is there the opportunity to expand existing sales opportunities, but also to tap into new strategic business areas
and markets on a global level.
5.1.3 Outlook for revenue and earnings position
Sennheiser’s increased growth in 2014 can be attributed to optimized structures and the Group’s divisional
organization, among other things. In the future, the Sennheiser Group will continue to focus on its customers
and strategically organize its business processes and internal structures with that focus in mind. A stronger
orientation toward target groups and markets will help the company understand its customers’ wants and needs
even better, enabling it to anticipate future technological developments and application scenarios early on. This
in turn will allow Sennheiser to offer audio solutions even more customized to meet individual needs.
Furthermore, the portfolio was expanded to include products compatible with Microsoft Lync and the CENTURY
premium headset series.
Industry-wide trends influence the development of many Sennheiser products in both the professional and
consumer areas. This ranges from using wireless technologies to multi-connectivity, from system integration
to intelligent audio connections, from providing high definition audio to additional customization solutions for
users. Sennheiser has been drawing on its expertise and experience in developing new audio solutions for the
past 70 years. During this time, the company has launched many innovative and pioneering products, some of
which have had a lasting impact on shaping the industry to this day. Sennheiser will continue to pursue this
objective in the future.
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