Sennheiser 2015 Annual Report Download - page 38

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36
POSITION OF THE SENNHEISER GROUP
Net earnings position
The Sennheiser Group’s net earnings declined by €20.3 million
year on year to €30.3 million before taxes in 2015. Material
and personnel costs, which grew slightly disproportionately
to turnover growth, negatively impacted the net earnings
position. The interest rate change effect alone weighed down
the valuation of pension obligations by €8.2 million. Global
marketing campaigns supported the consistent market presence
and led to an increase in other operating expenses.
Investments
Investments in fixed assets of the Sennheiser Group amounted
to €14.7 million and related largely to the implementation of
the strategy to expand the product portfolio.
The group’s investments in property, plant and equipment came
to €12.8 million in fiscal year 2015.
Net asset position
At €431.8 million, total assets of the Sennheiser Group as of
December 31, 2015, were €21.8 million, or 5.3 percent, higher
compared to December 31, 2014. While receivables and other
assets increased moderately and proportionately compared to
turnover growth, by €4.3 million, inventories were reduced by
€12.4 million thanks to efficient inventory management. These
developments are correspondingly reflected in the increase in
cash and cash equivalents.
Due to the ongoing decline in interest rates, pension provisions
reported a €10.8 million increase to €90.6 million. The decline in
other provisions by €2.0 million was largely due to the reduced
profitability. The increase in trade payables by €8.2 million to
€54.8 million results from purchases for business activities in
the fourth quarter of 2015.
MANAGEMENT REPORT OF THE SENNHEISER GROUP
ECONOMIC REPORT