Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Sennheiser EN

CONSOLIDATED MANAGEMENT REPORT 2014 Nevertheless, the greatest short-term influence on earnings growth will be the volatility of the euro against the other major world currencies. Therefore, one of the company’s key goals is to prevent excessive cost increases resulting from the euro’s current weakness. Based on the high percentage of revenues in the North American and Asian markets, the Sennheiser Group still anticipates moderate revenue growth compared to the previous year despite the condition of the euro. A variety of new, innovative products and technologies supports this prognosis. Consequently, the company anticipates positive revenue growth in the current fiscal year. 5.2 Risk report 5.2.1 Risk management system The risk management process introduced in 2012 continued to be established in the Group in 2014. Risk ­managers were appointed; risk analyses and workshops were conducted in certain areas of the company at the different production locations. The controlling system, which monitors, manages and supports all business processes within the Group, supports the risk management process. This allows deviations to be quickly identi- fied and effective countermeasures to be implemented. Moreover, the early warning system – in the operational planning area, amongst others – is being optimized in order to identify future opportunities and risks more quickly. Mid- to long-term opportunities and risks are recorded in the strategic planning process. 5.2.2 Risks Although fluctuations in Sennheiser’s most important trading currencies had a significant impact on business development in 2014, these were largely neutralized through counter-developments. The general default risk is counteracted through effective customer management, supported by a global commercial credit insurance policy purchased last year. A globally valid property, liability and transport insurance policy covers the interests of the entire Group, including all affiliated companies. This policy also protects against reciprocal risks within the Sennheiser Group and against consequential damages caused by defaulting suppliers. The risk of defaulting suppliers and other interruption risks were a central concern again in 2014: suitable measures for minimizing risk were implemented. 18

Pages Overview