Sennheiser 2010 Annual Report Download - page 33

64CON SOLI D ATED MANA GEME N T RE P ORT 2010 65
CON SOLI D ATED MANA GEME N T RE P ORT 2010
Sennheiser counteracts the general default risk with not only effective customer management,
but also an overall broadly diversified customer structure. Neither during the global economic
and financial crisis in 2008 and 2009 nor in 2010 did the Group suffer any material defaults.
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 damag-
es 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 with lawyers and authorities to effectively
curb this risk. The implemented measures include crackdowns, seizing of products by customs,
shutting down trade stalls and legal action against parties in breach of industrial property
rights. In 2010, Sennheiser again increased its cooperation with competitors, especially in Asia,
to increase the effectiveness of these measures.
The re-allocation of the majority of UHF frequencies for new digital applications (DVB-H,
wireless broadband Internet, etc.) and the resulting threat to the frequency resources that have
traditionally been used by professional wireless microphone and monitoring systems has
already started. The implementation process is still in its infancy and will take many years in
Germany and across all of Europe. The attempt of large companies to establish cognitive devices
for the transfer of data that use the UHF band poses a further risk to the uninterrupted use of
this frequency range for wireless production tools.
For some years now, Sennheiser has been preparing for the restriction of the UHF spectrum to
provide its customers with disruption-free productions and therefore safe investments in the
future. These measures include the development of cognitive technologies and the lobbying of
the negative impact of these developments to decision-makers in politics and administration.
IV. OUTLOOK FOR FUTURE DEVELOPMENT
In 2011, Sennheiser will be implementing the new organizational structure that it approved in
the past year. Three business divisions are being established to increase the company’s interna-
tional customer focus.
The Consumer Electronics division concentrates on the headphone business as well as audio and
telecommunication products. The Professional Systems division is home to Professional Audio,
Live Sound, Studio and Professional Headsets, and the Installed Sound division is responsible for
fixed audio transmission systems. In addition to these units, four Group divisions were estab-
lished on January 1, 2011. The Executive Management Board (EMB), whose Spokesman is Volker
Bartels, manages these operating units.
The new organizational structure will be largely completed by the end of 2011.
Business Division Consumer Electronics, managed by Peter Callan
Business Division Professional Systems, managed by Dr. Heinrich Esser
Business Division Installed Sound, managed by Dr. Heinrich Esser
Sales Division, managed by Paul Whiting
Supply Chain Division, managed by Dr. Andreas Sennheiser
Corporate Services, managed by Volker Bartels
Strategy and Finance, managed by Daniel Sennheiser
The company expects to further increase its turnover in the coming financial years. The new
organizational structure in particular will generate additional profitability.
Wennebostel, Germany, March 31, 2011
The Executive Management Board
Volker Bartels
President, Manufacturing
Dr. Heinrich Esser
President, Development
Daniel Sennheiser
President, Strategy and Finance