the file.

Transcription

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GROUP PROFILE
A GROUP FOUNDED 150 YEARS AGO WHICH GREW TO BE WORLD MARKET LEADER IN
SMALL HOUSEHOLD APPLIANCES WITH:
• Operations in more than 120 countries and a new opening into the Chinese market.
• A rich product offer targeted by segment and driven by powerful brands.
• An exceptional innovation dynamic that creates differentiation and growth.
• A vast sales network adapted to the economic realities of each market.
Groupe SEB
les 4 M, chemin du Petit Bois
BP 172
69134 Écully Cedex France
www.groupeseb.com
actifin 01 56 88 11 11 - Photos: Philippe Schuller - Jean-Michel Turpin / Coté Cour, Patrick Forestier, William Gottlieb / Corbis - Getty Images - Digitalphoto.pl - DR - Translation: anglodoc.com.
WORLD RANKING
N°1 in cookware, pressure cookers, irons and steam systems, electric kettles, steam cookers,
food-preparation equipment, toasters, electric fryers and informal meal appliances.
N°2 in table-top ovens, electric barbecues and grills, waffle makers and sandwich makers.
N°3 in filter and espresso coffee makers.
SOCIAL COMMITMENT
• Signatory of the UN Global Compact* since the end of 2003.
• Signatory of the CECED* Code of Conduct since August 2005.
• Signatory of the Diversity Charter* since October 2005.
• Creation of the Groupe SEB Corporate Foundation in 2007.
SALES
corporate and sustainable development report
€2,870 million +8.2%
OPERATING MARGIN
NET INCOME
€301 million +14.7%
€143 million +64.2%
FINANCIAL DEBT
€658 million
CAPITAL EXPENDITURE
2007
EMPLOYEES
* see Glossary
80% of equity
€92 million
13,048
worldwide
at 31/12/07
Figures excluding Supor
GROUP PROFILE
Groupe SEB
BP 172
www.groupeseb.com
WORLD RANKING
SOCIAL COMMITMENT
SALES
€2,870 million +8.2%
OPERATING MARGIN
NET INCOME
€301 million +14.7%
€143 million +64.2%
FINANCIAL DEBT
€658 million
CAPITAL EXPENDITURE
2007
EMPLOYEES
* see Glossary
80% of equity
€92 million
13,048
worldwide
at 31/12/07
A unique set of brands
AIRBAKE
ACKNOWLEDGMENTS
ALL-CLAD
ARNO
CALOR
This document was produced by the Financial Communications department in cooperation with the
Sustainable Development department. It is the fruit of the efforts of many members of Groupe SEB
staff and stakeholders whom we would like to thank for their contribution.
CLOCK
KRUPS
LAGOSTINA
MIRRO
We would also like to thank in particular:
MOULINEX
PANEX
PENEDO
• The Group Executive Committee and Group General Management teams.
REGAL
ROCHEDO
• Other members of staff who helped to prepare this report by providing information, graphic
ROWENTA
material or documentation, responding to questions or reporting on their experience.
SEB
SUPOR
• Stakeholders and those interviewed:
SAMURAI
TEFAL
T-FAL
WEAREVER
professional
authentic
italian
elegant
precise
perfectionist
Group core business areas
COOKWARE
Frying pans, saucepans, casseroles,
• Mathilde Dufour, analyst with EthiFinance.
• André Malsch, Chairman of the CREER Network.
• Kathryn Taylor, a user of the Tefal Quick Cup hot water dispenser.
• Philippe Neveux, head of consumer goods stock flows, Carrefour France.
• Dominique Mignon, Director of Development, Eco-Systèmes.
• Laurent Pauze, Sales Director (electronics, photo, video and audio) Carrefour.
• Dominique Emery, Mayor of Fresnay-sur-Sarthe, France.
• Pierig Vezin, Managing Director of Wethica.
• Nicole Dorkeld, a former Groupe SEB employee taken over by PSP.
bakeware, oven dishes, pressure cookers...
ELECTRIC COOKING
Deep fryers, table-top ovens,
barbecues, informal meal appliances, breadmakers,
toasters, steam cookers...
FOOD AND BEVERAGE PREPARATION
espresso coffee makers, electric kettles...
Steam irons and steam systems, semi-
automatic washing machines...
HOME CARE Vacuum cleaners, fans, portable heaters and
intelligent
refined
ingenious
generous
simple
quick
air-conditioners...
This report is printed on recyclable chlorine-free paper which complies with the ISO 14001
international environment standard.
Haircare equipment, depilators,
bathroom scales, babycare products...
LINEN CARE
French text: Françoise Lafragette
Design and production: ACTIFIN.
English translation: anglodoc.com
Food processors,
blenders, small food-preparation equipment, filter and
PERSONAL CARE
• External support:
The printer of this report is environmentally certified by:
AIRBAKE
ACKNOWLEDGMENTS
ALL-CLAD
ARNO
CALOR
CLOCK
KRUPS
LAGOSTINA
MIRRO
MOULINEX
PANEX
PENEDO
REGAL
ROCHEDO
ROWENTA
SEB
SUPOR
SAMURAI
TEFAL
T-FAL
WEAREVER
professional
authentic
italian
elegant
precise
perfectionist
COOKWARE
ELECTRIC COOKING
intelligent
refined
ingenious
generous
simple
quick
air-conditioners...
LINEN CARE
Food processors,
PERSONAL CARE
ENTERPRISE
INNOVATION
TEAM SPIRIT
PROFESSIONALISM
1
150 years of better living
and shared values
150 years: for Groupe SEB, a chronicle of founding values
that are still very much alive today and will live on into the future:
• enterprise
• innovation
• team spirit
• professionalism
distinctive hallmarks of our corporate culture.
These values, bridging the past and the future, inspired the great moments in the Group’s
history and still shape its destiny today. Our new logo reflects this continuity and embodies
the dynamism and modernity of Groupe SEB.
A corporate mission
This milestone anniversary and the
launch of our new logo are a good
time to reassert the Group’s strong
corporate identity and its mission to
make everyday life easier and more
agreeable for people all around the
world:
• by creating products and services
that contribute to better living
• by anticipating the hopes and
desires of consumers.
That is what motivates all the
Group’s efforts which are firmly
focused on the long term.
Enterprising drive
Constantly forging ahead, growing and penetrating new continents: that’s what enterprising drive means for Groupe SEB.
Be it by conquering territories, forming fruitful alliances or
acquiring other companies, the Group has built itself with
method and daring enterprise over the years. In the last four
decades of its history it carried off ten successful takeovers that
gained it new product domains and leading brands. Its global
expansion has seen it grow from strength to strength in international markets and increase its proximity to consumers at local
level. With this balanced blend of ambition, foresight, resolve
and tenacity, the Group has become a global benchmark in
Small Household Appliances.
150 years...
The early 80’s saw the Group
make its first market overtures
in Japan. It set up a local
joint-venture company of which
it quickly took full control.
Its business at that time was
based on two fast-growth
product families: pressure
cookers and nonstick cookware.
Another rendezvous with history in 2001: the Group’s partial
takeover of long-time rival, Moulinex. This offered ready
potential for upscaling and reinforced positions in food
preparation. The Group carried off the deal.
In 2007-2008, a new adventure unfolded for Groupe SEB –
this time in China – presenting a huge challenge and a
far-reaching strategic opportunity. The prize: our acquisition
of Supor, a front-rank operator in our industry which today
gives us access to China’s vast and rapidly expanding market.
Innovation culture
Innovation is a distinctive trait of Groupe SEB. It presided at its birth and remains
deeply ingrained in its corporate culture. Its vocation is to improve the quality of daily life
for consumers around the world. Synonymous with modernity, attractive design and
convenience, innovation boosts efficiency, keeps abreast of changing attitudes and sets
the pace with new concepts. Inventiveness is also put to work in the Group’s production
processes to build up our technical expertise and make our industrial base more
competitive. Our creation of added value and our command of the latest technologies
together form a powerful source of growth. This ability to be always a step ahead of its
rivals is what makes and will continue to make all the difference for Groupe SEB.
6
150 years...
In the 1950’s, Seb revolutionized the kitchen by inventing the legendary ‘cocotte
minute’ – the first no-weld stamped aluminium pressure cooker with a security
lid. What is more, it was 40% cheaper than rival products and much safer.
The Group can in fact boast hundreds of innovations.
Here are some of the most outstanding:
1917 The Calor electric iron.
1956 The first Tefal nonstick frying pan.
1961 The Moulinex Marie food processor and the Krups “Kaffee Automat”.
1967 The first Seb odourless fryer.
1978 The Tefal raclette grill.
1985 Tefal bathroom scales with patented “Sensitive Computer” technology.
1994 The Rowenta compact Dymbo vacuum cleaner.
2004 The quick-fill Calor/Tefal Aquaspeed steam iron.
Today more than ever, the Group can lay
claim to the title of pioneer with its truly
advanced technologies: the Actifry, with its
convection and stirring system can make
tasty French fries with just a spoonful of oil;
the Silence Force with its acoustic
insulation box is six-times quieter than any
other vacuum cleaner, and just as powerful.
7
Team spirit
Groupe SEB, being
a family-based company, has forged a corporate culture that gives pride
of place to respect for the individual, sharing and social
cohesion – values that guide our management practices.
The integration of new companies, the multi-cultural
nature of global expansion, and the use of Group-wide
projects and multidisciplinary teams have engendered
an organization that fosters transparency and unity in the
service of common goals.
150 years...
To associate its employees with the
company’s trading results, Seb
signed profit-sharing agreements
as far back as 1968, making it
a pioneer in labour relations
practices in France.
The acquisition of Arno in 1998 generated substantial
synergy on an international scale.
This led the Group to launch an entry-level iron for
the world market with simultaneous start-up of
production at three of the Group’s factories –
in France, Mexico and Brazil – and with pooled
sourcing of raw materials and components.
For Groupe SEB, encouraging pluralism and harnessing the
strengths that derive from diversity are a springboard for
progress. The Group signed the Diversity Charter in 2005.
Professionalism
Groupe SEB’s rich fund of knowhow has been built around major advances in
technology, full command of its production processes and a consistent industrial
strategy. But this knowhow has been turned into success by the individual and collective
talents of our employees.
The Group is as pragmatic in its deployment of core skills and key technologies – assets
that guarantee its future – as it is determined in its constant quest for excellence.
To achieve its goals it relies on the personal commitment and collective efficiency of its
staff, while exploiting synergy potential, paying close attention to local feed-back and
rewarding results.
150 years...
When Seb acquired Tefal it
knew that constant selfappraisal is a key to progress. So, it reviewed its
client relations and decided
to adopt the Tefal strategy of
focusing on targeted markets
and working through exclusive retailers.
Improving quality means taking notice of feed-back, openly
discussing problems and finding effective solutions.
Aiming for excellence by training professionals and developing
skills. The Groupe SEB Academy has provided training for 8,000
employees in the last five years.
2007, a new logo
Our new logo’s graphic design traces a path between Groupe SEB and the red silhouette
of a house. This evokes the perennial nature of our corporate mission and our
long-standing dedication to the home.
It symbolically projects the Group’s uniqueness and differentiation
and embodies its corporate values:
• The vertical band adds distinction to the simplicity of the ‘S’ form,
giving it thrust, continuity and orientation to the future.
• The house – the home – is a symbol of proximity, its arrow-head shape indicating
growth and development.
• The human and corporate aspects are evoked by the use of warm energetic red
combined with sober and reliable grey.
150 years...
The Group has grown and changed considerably since
it used the original SEB crest of la Société
d'Emboutissage de Bourgogne. Its last banner,
created in 1975, was a perfect illustration of its
determination to expand internationally. On the
occasion of the Group’s 150th anniversary, we wanted
to project its new dimension, energy and potential.
This new, modern and dynamic logo clearly reflects the
Group’s firm orientation to the future.
12
CONTENTS
INTERVIEW WITH THE CHAIRMAN
GROUP NEWS
FACTS AND FIGURES
02
06
08
FINANCIAL RESULTS 2007
08
STOCKMARKET OVERVIEW
12
BEING ATTENTIVE TO SHAREHOLDERS
14
SOCIAL PERFORMANCE REVIEW
16
ENVIRONMENT REVIEW
18
INNOVATING TODAY FOR A BETTER LIFE TOMORROW
20
MANAGEMENT BODIES, CORPORATE GOVERNANCE
22
GROUPE SEB STRATEGY
26
INDUSTRY TRENDS
28
IMAGINING THE FUTURE
30
BRANDS FOR EVERYONE
32
BETTER LIVING ALL AROUND THE WORLD
40
LIVING THE FUTURE
48
CONSTANT PROGRESS
50
CARING FOR INDIVIDUALS
58
GROUPE SEB commitment...
Shareholders: a maximum spread of information 15
Commitments: a Foundation to promote social integration 20
Brands for everyone: “Being first in quality too” 34
Better service for the consumer 35 Eco-design: planning the full product lifecycle 36
Distributors: strengthened partnerships 38 “Recycling and recovery system takes off” 39
Better living all around the world: Promoting social integration 42
“Young people learning to live again” 43 Burundi project backed by 7,000 SEB
employees 44 Brazil: social integration via training 45 Colombia: handicapped youths
walk again 45 A corporate citizen seeking solutions with others 46
Constant progress: Eco-production: factories respecting the environment 51
“Groupe SEB did not let us down” 52
Suppliers: clear rules for compliance 54 “We cross-check a whole range of factors” 56
Reducing the ecological impact of freight transport 57
Caring for individuals: Proud to work for Groupe SEB 59
“I chose to continue working” 60 “High standards in safety” 61 “Listening carefully” 63
1
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007
Interview with the Chairman
Thierry de La Tour d’Artaise
HOW DID GROUPE SEB
A decidedly good year for Groupe SEB, 2007 was marked
DO IN 2007?
by excellent trading, completion of our industrial reorganization in France and our strategic acquisition of a
controlling stake in Supor in China. We thus met and even
exceeded the objectives we had set out to achieve.
In terms of trading performance, the Group saw 8.6%
organic growth in sales across all product families and in
almost all markets. This reflects revived demand in
Western Europe and our continued rapid advance in
emerging countries, while it vindicates the Group’s
economic model based on innovation and enhancing the
product mix.
“Supor...an exciting
new venture and
a huge opportunity.”
Robust growth was the main spur behind a rise of almost
15% in our operating margin, to €301 million. Operating
profit (less burdened than in 2006 by provisions for
restructuring) grew 55%, while net income climbed 64%
2
to €143 million. Our financial structure – after acquisition
of a 52.74% stake in Supor – remains solid, with a gearing
ratio of 76% which allows the Group a comfortable margin
of financial manoeuvre.
HOW DID YOU TACKLE FRENCH INDUSTRIAL
The industrial restructuring plan launched in France in
RESTRUCTURING?
2006 is now completed, and I am glad to say that the
Group carried it through entirely in line with our ethical
values and commitments. Every employee was offered
an individual solution and we managed to ensure the
reindustrialization of the affected sites. Today, our French
manufacturing base is built around centres of expertise
with a strong orientation to production for export. Their
continual optimization is a guarantee of our long-term
competitive capacity and future growth.
YOU ARE NOW THE MAJORITY SHAREHOLDER
Yes, very pleased indeed. To ensure our long-term devel-
OF SUPOR IN CHINA.
opment, we seek to grow where growth potential is strong-
NO DOUBT, YOU ARE PLEASED...
est – particularly in emerging countries. We are already
well established in the markets of Central Europe, Russia,
Turkey and Brazil, for example, but the Group’s presence
is still limited in China. Our gaining control of Supor is an
exciting new venture and a huge opportunity. It opens up
vast horizons and will help us to break new ground both
geographically and in terms of technology. With Supor –
China’s market leader in cookware and number 2 in small
electric cooking appliances – Groupe SEB is today paving
the way for its expansion in China and throughout
Southeast Asia.
RESTRUCTURING, INVESTMENT IN CHINA,
Underlying the principle of sustainable development is the
MAKING THE GROUP MORE COMPETITIVE...
sustainability of the company. Without successful
ARE THESE AIMS CONSISTENT WITH
performance, there can be no sustainable development.
SUSTAINABLE DEVELOPMENT?
My responsibility as head of the company is to make sure
that the Group is sufficiently competitive to guarantee its
future, while respecting an overall balance of interests.
In this regard, the immediate demands of growth and
profitability are closely interwoven with a responsible
3
long-term approach to all the stakeholders in our
enterprise. In social terms, the solutions we sought for
our employees and the local job market during our industrial restructuring in France testify to our pro-active
stance in this area. In terms of corporate citizenship, the
creation of the Groupe SEB Corporate Foundation in
March 2007 to promote social integration will help us to
better coordinate our sponsorship of community projects.
Finally, to safeguard the environment we incorporate ecodesign criteria in our product development and continue
to extend ISO 14001 certification of our factories.
GROUPE SEB MARKED ITS 150TH YEAR IN 2007.
Since its foundation, the Société d’Emboutissage de
WHAT ARE THE SECRETS OF THIS LONGEVITY?
Bourgogne, which became Groupe SEB in 1973, has been
a pioneering innovator. Today, we carry on the tradition of
intellectual curiosity, agility of mind and creativity that
marked our beginnings. The Group’s history is built on
inventive spirit and proximity, and our ambition has
always been and still is to make constant progress. By
combining a resolute product dynamic with new concepts,
practical improvements and a multitude of little extras to
make life easier and more agreeable, Groupe SEB has
become a major catalyst of modernity. Thanks to a stable
family shareholder base, we have pursued a long-term
strategy, firmly holding course through the ups and
downs of an ever-changing business climate.
YOU HAVE ADOPTED A NEW LOGO.
Longevity does not mean we have not changed. Thirty-two
WHAT DOES THIS MEAN FOR THE GROUP?
years after creating our last logo as a standard – bearer
for our international expansion, a fresh boost has been
given to the Group’s identity today. Our new logo reflects
our perennial commitment to modernity and leadership –
qualities clearly perceived by the public, according to
market studies. With this new banner, one can see that
the Group is resolutely focused on the future.
4
WHAT IS THE OUTLOOK
Last year was a remarkable year. Despite uncertainties
FOR GROUPE SEB IN 2008?
surrounding raw materials prices and exchange rates,
and fears of a slowdown in consumer demand, I am confident in our ability to generate organic growth in 2008
through our presence in emerging markets, and by geographically extending the success of last year’s top performing products with strong marketing and advertising
support. Beyond actual sales figures, we are also aiming
in 2008 for a further improvement in the operating margin
and continued lowering of debt for constant structure.
With these goals and the task of integrating Supor, 2008
promises to be a busy year.
5
Destination China
On 21 December 2007, Groupe SEB announced the success
of its partial public offer launched a month earlier for
a controlling stake in Supor, China’s domestic market leader
in cookware and number 2 in small electric cooking
appliances. With a 52.74% majority share in the capital of this
front-rank company, Groupe SEB is now well equipped to
exploit the enormous business potential of this vast market.
This key strategic step will alter the profile of Groupe SEB in
2008.
SUPOR, A MAJOR ALLY
World’s 3 rd economic power.
1.3 billion Chinese.
A 41% urban population.
Founded in 1989 by the Su family, Supor has become a benchmark
standard in cookware and small electric cooking appliances in the
Chinese market, with strong positions in rice cookers – a highly
symbolic product in that country – as well as in electric pressure
cookers and induction cooking hobs. With a competitive and adaptable industrial base comprising four modern factories, Supor
employs 6,600 people, of which 80% in production. Moreover,
the start-up of a new plant in Vietnam in mid-2008 will give it an
essential tool to penetrate the markets of Southeast Asia which
cover a population of more than 600 million. Supor also began
taking steps in recent years to obtain certification in quality,
environment and labour rights.
6
GROUP NEWS
In terms of marketing, Supor enjoys a strong brand image which
has won “China’s Famous Brand” award three times since 2002.
The company’s extensive coverage of Chinese territory is assured
by a vast distribution network of 300 agent-wholesalers and 20,000
retail outlets throughout 30 provinces. In 2007, its sales amounted
to €280 million, up 38% on the previous year.
EXCELLENT PROSPECTS
Supor - Hangzhou production site
The acquisition of Supor is a unique opportunity for both parties.
It gives Groupe SEB access to the Chinese market with a
well-established leading brand which will help it to expand its limited current offer in this vast country. It brings Groupe SEB new
technologies and specialist products such as rice cookers, electric
pressure cookers and induction hobs, which will also add to its
knowhow.
For Supor, its integration into Groupe SEB gives it major scope for
fresh growth. The Group’s international network will open new
doors for it in the emerging markets of Southeast Asia and in the
entry-level segments of mature markets. Meanwhile, technology
transfers and higher production volumes to supply the Group’s
needs should accelerate Supor’s growth and make it more
competitive.
Supor – Rice cooker
XIANZE SU, MANAGING DIRECTOR OF SUPOR
“We backed Groupe SEB’s partial public share offer and we are happy with the
outcome as it gives Supor an excellent opportunity for strategic cooperation
and strong backing for its business development in China and Southeast Asia.
An integration committee has set to work mobilizing staff teams around action plans
to pool efforts and share best practices in a spirit of fruitful cooperation. This process,
which involves mixed teams of Groupe SEB and Supor managers working to a concrete
agenda, is vital to our successful integration. We appreciate this interlocking multicultural approach because it is
constructive, efficient and enriching for all concerned. Our entry into Groupe SEB is also a big opportunity for
Supor employees, as it opens up new career prospects in a major international group.”
7
Financial results 2007
INCREASE IN SALES
2,870
€ millions
in %
2,652
2,463
SALES BREAKDOWN BY ZONE
640
595
591
22%
29%
718
677
692
402
352
390
246
274
25%
10%
France
14%
Other EU countries*
204
North America
639
729
836
2005
2006
2007
South America
Central Europe, the CIS countries,
Asia and other territories
Strong growth in 2007 sales: 8.2%
* Former 15-member bloc
• revived business in European markets;
• contrasted trading in North America, and steady sales in South America;
• confirmed dynamism of Central Europe, the CIS countries and Asia (+16.7% for constant parity and structure).
TRADING RESULTS/SALES (%)
RETURN ON EQUITY
Operating margin
sharply up by 14.7%,
thanks to increased
sales volume,
higher sale prices
and upgraded ranges.
A strong balance
sheet with
shareholders’ equity
up by €46 million.
Record high return
on equity.
Operating profit climbed
by 55.2% and net
income by 64.1%.
5.0
4.1
3.3
816
8.3
7.4
17.5
5.8
10.6
862
801
9.9
14.8
10.9
10.5
Shareholders’ equity at
31/12 (€ millions)
Net income
Net income (n)
/shareholders’ equity
(n-1) as %
Operating profit
Operating margin
2005
2006
2007
8
2005
2006
2007
FACTS AND FIGURES
NET FINANCIAL DEBT
AND GEARING
CASH FLOW AND CAPITAL
EXPENDITURE
€ millions
Increased cash
flow and capital
expenditure
focused mainly on
new products.
99
283
92
Debt was up due to
the Supor acquisition,
but down by €83 million
for constant structure,
reflecting rigorous
financial management.
85
290
301
658
0.8
423
Net debt at 31/12
(€ millions)
Capital
expenditure
422
0.5
0.5
Debt-to-equity ratio
(gearing)
Cash flow
2005
2006
2007
2005
The figures given above do not include Supor.
9
2006
2007
REVENUE BREAKDOWN
SUPPLIERS €1,935.1 MILLION
of which 2,404 direct industrial
suppliers, (including a panel*
of 455 suppliers representing 80%
of purchases).
CLIENTS €2,869.6 MILLION
• European Union* 47%
• North America 14%
• South America 10%
• Central Europe, the CIS countries,
Asia and other territories 29%
* Former 15 member bloc
STATE AND LOCAL AUTHORITIES €108.9 MILLION
Corporation tax: €60.9 million
Local taxes: €48.0 million
GROUPE SEB
SHAREHOLDERS €43.0 MILLION
paid in 2007 in respect of the 2006 trading
year.
RESERVED FUNDS €209.3 MILLION
• Refinancing investments: €88.3 million
• Change in provisions linked to
business risks: €21.2 million
• Transferred to reserves : €99.8 million
EMPLOYEES €538.3 MILLION
paid to 13,048 employees.
• 71% in gross pay
• 29% in social charges
• bonus and profit-sharing (€33.3 million)
to be paid in 2008
BANKS AND BONDHOLDERS €34.9 MILLION
Mainly financial expenses relating to interest on bank
loans
10
* The increase in the approved supplier panel
compared with 2006 is due to the integration
of All-Clad, Panex and Lagostina, and to the
development of sourcing.
FACTS AND FIGURES
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED RESULTS
€ millions
31/12/2007
Revenue
Operating expenses
OPERATING MARGIN
Discretionary and non-discretionary profit-sharing
RECURRING OPERATING PROFIT
Other operating income and expense
OPERATING PROFIT
Finance costs
Other financial income and expense
Share of profits (losses) of associates
PROFIT BEFORE TAX
Income tax
PROFIT FOR THE PERIOD
Minority interests
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT COMPANY
31/12/2006
restated
2,651.7
(2,389.3)
262.4
(25.8)
236.6
(83.6)
153.0
(25.6)
(4.9)
(1.0)
121.5
(34.4)
87.1
(0.1)
87.0
2,869.6
(2,568.5)
301.1
(33.3)
267.8
(30.4)
237.4
(32.3)
(2.6)
1.2
203.7
(60.9)
142.8
(0.0)
142.8
CONSOLIDATED BALANCE SHEET
ASSETS
€ millions
NON-CURRENT ASSETS
Inventories
Trade receivables
Current tax assets and other receivables
Cash. cash equivalents and derivative instruments
CURRENT ASSETS
TOTAL ASSETS
31/12/2007
31/12/2006
restated
807.9
517.1
646.4
95.9
56.6
1,316.0
2,123.9
31/12/2005
restated
848.9
449.8
630.3
85.6
53.5
1,219.2
2,068.1
31/12/2007
31/12/2006
restated
31/12/2005
restated
862.4
862.4
65.9
161.6
227.5
333.4
289.6
729.3
1,352.3
2,442.2
815.9
815.9
80.2
187.1
267.3
342.7
301.3
396.7
1,040.7
2,123.9
799.5
1.2
800.7
104.3
229.3
333.6
303.7
263.7
366.4
933.8
2,068.1
1,083.6
528.2
627.2
65.1
138.1
1,358.6
2,442.2
EQUITY AND LIABILITIES
€ millions
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
MINORITY INTERESTS
EQUITY
Long-term borrowings
Provisions and other non-current liabilities
NON-CURRENT LIABILITIES
Trade payables
Other provisions and current liabilities
Short-term borrowings
CURRENT LIABILITIES
TOTAL EQUITY AND LIABILITIES
11
31/12/2005
restated
2,462.9
(2,200.7)
262.2
(29.3)
232.9
(50.1)
182.8
(17.6)
(7.6)
(1.1)
156.5
(54.6)
101.9
(0.1)
101.8
Stockmarket overview
BREAKDOWN OF CAPITAL
5.1
BREAKDOWN OF VOTING RIGHTS
(%)
4.8
5.9
10.1
14.1
42.5
59.2
17.6
23.8
4.7
3.6
3.6
5.0
TOTAL SHARES: 16,960,186
TOTAL VOTING RIGHTS: 23,945,752
Founder group
French institutional investors
FFP
Foreign investors
Employees
Individual shareholders
DILUTED NET INCOME AND DIVIDEND PER SHARE
Treasury stock
(in euros)
2.80
2.55
2.40
2.40
8.67
8.02
6.21
Net dividend*
5.34
Net income per share
2004
2005
* Excluding the dividend supplement.
12
2006
2007
(%)
FACTS AND FIGURES
SEB SHARE PERFORMANCE
Volumes
€
60,000
150
50,000
40,000
120
30,000
20,000
90
SEB
CAC 40 (adjusted)
02/08
01/08
12/07
11/07
10/07
09/07
08/07
07/07
06/07
05/07
04/07
03/07
02/07
60
01/07
10,000
0
Average volume of shares traded
STOCKMARKET CAPITALIZATION AT 31/12/07: €2,103 MILLION
The SEB share performed well on the stockmarket in 2007, out-pacing the market index throughout the year.
It maintained an average rate of €129.28, reaching a 10-year high of €144.45 on 22 May. The Group’s excellent trading
and strong news interest – particularly its imminent acquisition in China, completed at the end of December – largely
explain this good performance. The capital rotation rate of nearly 64% substantially exceeded the average of recent
years, reflecting keen investor interest in the share during 2007. At the end of the year and at the beginning of 2008
agitation in world financial markets pushed down prices of otherwise high-performing mid-range stocks, which also
affected the SEB share. Substantial profit-taking during this period led to a sharp drop in the share price. However, after
dipping below the €100 mark, the share began to recover at the end of January following publication of the 2007
financial results.
13
Being attentive to shareholders
A listed company since 1975, Groupe SEB strives to cultivate
and build up the loyalty of its shareholder base while
pursuing an active policy of dialogue and information aimed
at existing and potential shareholders.
GROUPE SEB PLEASED TO MEET YOU
Direct contact being the best way to ensure a good understanding
of the company’s day-to-day operations, we try to engage in
regular dialogue with our shareholders – beyond the customary
Annual General Meeting. In 2007, for example, meetings in France
were arranged in Lyons, Lille, Marseilles and Nantes for a total
of 1,200 shareholders. To give a better picture of the Group’s
industrial context, we also organized a factory visit for some
30 members of an investor club to our Mayenne plant which manufactures food and beverage preparation equipment. In parallel, we
maintain close links with financial analysts (including some 20
regulars) who follow the progress of the SEB share. In this way we
help them to better understand the Group and its trading context
and ensure that they are fully informed. We also maintain direct
and regular contact with institutional investors (over 200 contacts
during 2007).
14
FACTS AND FIGURES
Our mail order catalogue has taken on a new
look.
New design, new name – “Home & Cook” –
with reduced prices for nominal shareholders. And, for owners of bearer shares,
twice-a-year special offers on selected
products.
GROUPE SEB AT YOUR SERVICE
Groupe SEB provides a set of dedicated services for its shareholders: the SEB Shareholder Relations Department which handles
all queries and information about the SEB share, and the SEB
Share Service which manages nominal shares held in the SEB
share register. This includes free handling of share purchase
or sale orders, management of related personal information, notification of the Annual General Meeting and dividend payments.
Nominal shareholders also have access to a secure Internet link to
follow up their share account in real time.
DIVIDEND GROWTH
The dividend policy of Groupe SEB is based on the long term and
aims to give you a fair return on the capital you entrust to us.
The principle is to increase the dividend when trading results permit, and to hold it level if circumstances require. This year, the
Board of Directors is proposing to the Annual General Meeting of
13 May 2008 to pay a dividend of €2.80 in respect of the 2007
trading year, an increase of almost 10%.
A dividend supplement equivalent to 10% of the dividend is also
paid for all shares which have been held in the nominal register for
more than two consecutive years.
A MAXIMUM SPREAD OF INFORMATION
Groupe SEB undertakes to provide clear and comprehensive information to all those who
are interested in the Group. For this purpose it has developed a whole array of effective
communication tools accessible to all:
• paper-based publications throughout the year which offer an excellent source of
information and are available on demand from the Financial Communications Department.
These include the Annual Corporate and Sustainable Development Report, the Annual
Financial Report and Reference Document, the quarterly Letter to Shareholders, and the
Shareholder Guide;
• our website, www.groupeseb.com gives real-time acces to the latest news on the Group and
the full corpus of financial and other information, while a special Shareholder and Investor
section invites users to download our publications;
• constantly updated information relays such as the press, official announcements and the
financial community, are used to pass on our information to their target audiences.
15
Social performance review
ACCIDENT FREQUENCY*
ACCIDENT SEVERITY**
0.43
12.28
10.41
0.33
9.31
2005
2006
0.32
World data
* Accident frequency:
number of work accidents
with absence, per million
hours worked.
World data
** Accident severity: number
of working days lost because
of accidents, per 1,000 hours
worked.
2005 : world data adjusted on
the basis of the Group’s
structure in 2006 and 2007.
2005 : world data adjusted on
the basis of the Group’s
structure in 2006 and 2007.
2005
2007
2006
2007
Accident frequency dropped for all sites (an overall reduction of 10% worldwide compared with 2006), and there was a
slight reduction in the severity of accidents.
WOMEN IN MANAGEMENT
Women accounted for
28.9% of managers
worldwide in 2007,
being a 10% increase
since 2002 when the
rate was 20.1%.
28.9
27.2
25.4
As percentage
of managers worldwide.
2005
2006
2007
16
For more information
see our website:
www.groupeseb-devdurable.com
FACTS AND FIGURES
EMPLOYEES, BY GEOGRAPHIC ZONE
At 31 December 2007,
a total of 13,048
employees, of which 48%
outside France.
Between 2006 and 2007
staffing in Central
Europe,
the CIS countries and
Asia rose by 14%.
EMPLOYEES, BY CATEGORY
Increase in the proportion
of office workers and
managers in 2007.
Together, they accounted
for 59% of total staff.
12.2
12.8
13.4
43.9
44.7
45.6
43.9
42.5
41.0
2005
2006
2007
13%
18%
52%
Worldwide
France
Worldwide
Managers
6%
11%
Other EU countries
Office workers
North America
Manual workers
South America
Central Europe, CIS countries and Asia
TRAINING BUDGET
Training effort maintained,
with a budget increased to
2.30% of the total payroll.
2.30
2.27
Mayenne – Laboratory
2.02
Worldwide
As percentage of total
payroll.
2005
2006
2007
In 2008, Groupe SEB will introduce a reporting system
to reinforce its sustainable development drive.
The figures given above do not include Supor.
17
Environment review
CONSUMPTION OF RESOURCES, PER FINISHED PRODUCT
litres 12.50
Gradual reduction in total use
of water and gas per finished
product manufactured.
Electricity consumption stable.
12 –
10 –
kWh
11.49
2.01
1.78
1.96
1.78
11.42
1.85
–2
1.80
8–
Water consumption, in litres per finished product
6–
Gas consumption, in kWh per finished product
–1
Electricity consumption, in kWh per finished product
4–
2–
World data (excluding All-Clad, Panex and Lagostina).
Data for 2006 and 2005 adjusted on the basis of the Group structure
in 2007 (excluding factories closed in 2007).
2005
PROPORTION OF ORDINARY
INDUSTRIAL WASTE RECYCLED
A continued increase in
recycling of ordinary
industrial waste (see
glossary): this reached
79% in 2007.
79%
76%
71%
World data (excluding All-Clad,
Panex and Lagostina).
Data for 2006 and 2005 adjusted
on the basis of the Group
structure in 2007 (excluding
factories closed in 2007).
2005
2006
2007
18
–0
0–
2006
2007
FACTS AND FIGURES
ECOLOGICAL IMPACT CHART
1. Finished manufactured products
(excluding sourced products)
TOTAL = 153,103 TONNES
M
2. Special industrial waste (SIW)
1,122 t
3. Ordinary industrial waste (OIW)
12,010 t
4. Process sludge
6,063 t
5. Atmospheric emissions (natural gas)
32,948 t
M
1. Direct raw materials for manufactured finished products (excluding sourced products)
152,341 t
PROCESSING
M
TOTAL = 1,114,035 TONNES
6. Wastewater to treatment plants
7. Discharge in water
1,062,654 t
0.44 t
8. Disposal in soil
0t
2. Indirect raw materials
for processes, buildings and employees
TOTAL INPUT = 1,267,138 TONNES
TOTAL OUTPUT = 1,267,138 TONNES
INPUT
OUTPUT
1. Finished electrical products, 70% recyclable and recoverable (WEEE* standard) and cookware products more
than 80% recyclable.
Input 1:
Motors
Metals
Plastics
Packaging
Sub-assemblies
and other
TOTAL
5,383 t
70,785 t
38,700 t
28,000 t
2. SIW: 100% treated in compliance with current standards.
3. OIW: 79% recycled or recovered (9,534 t).
10,235 t
153,103 t
4. 100% disposed of in approved landfills.
Input 2:
Gas
Fuel
Air (02)
Water
Other
11,387 t
78 t
23,962 t
1,062,654 t
15,954 t
TOTAL
1,114,035 t
5. CO2: 32,905 t
NOx & N20: 42.8 t
SOx: 0.31 t
6. Of which 482,341 t in the Group’s own wastewater treatment facilities and 580,313 t in municipal water treatment
plants.
7. Authorized annual maximum of 0.44 tonnes of metal in
the water of treatment facilities.
The data given above do not include All-Clad, Panex, Lagostina and Supor.
8. No discharge into soil, thanks to the Group’s mastery of
production processes.
* See Glossary.
19
Innovating today
for a better life tomorrow
Groupe SEB’s approach to sustainable development, fully in harmony with its corporate values, includes
working together with national and international partners concerned with these issues. The Group has
supported the UN Global Compact Initiative since 2003 and Europe’s CECED* Code of Conduct since 2005 when
it also became a signatory of the Diversity Charter in France.
MANAGING SUSTAINABLE DEVELOPMENT
The Groupe SEB Sustainable Development department coordinates,
motivates and manages a Group-wide participative effort in this
area. This effort is supported by a steering committee comprising
representatives of the main areas of Group activity. Since the end of
2007 sustainable development principles have been formally
integrated into the Group’s 14 main corporate functions.
The Group’s internal control unit has drawn up a list of monitoring
criteria based on the Global Compact, which it takes into account in
its internal audits. In 2007 it conducted its first review of sustainable
development indicators to ensure the reliability of reporting.
* European Committee of Domestic Equipment Manufacturers.
A FOUNDATION TO PROMOTE SOCIAL INTEGRATION
Groupe SEB has a long tradition of corporate sponsorship, notably in support of initiatives
to combat social exclusion. To coordinate its efforts in this area, it created the Groupe SEB
Corporate Foundation in June 2007. This body has a budget of €3 million over five years,
and it takes action in three main areas:
• return to employment;
• social integration via improved living conditions;
• social integration via access to education and training.
The Foundation is overseen by a six-member Supervisory Board (including
two outside experts) and projects are selected by an Operations Committee of
11 members (including employees and labour delegates). Group employees
also help to identify projects and participate in the Foundation’s work.
20
FACTS AND FIGURES
INFORMATION AND EXCHANGE TOOLS
The Group uses a full array of media to heighten staff awareness
and stimulate debate on sustainable development: its intranet
forum, the in-house newsletter Globe News, a sustainable
development brochure, a dedicated Internet website
(www.groupeseb-devdurable.com), the company’s Annual Report
in paper-based and electronic versions, and an e-mail contact
address ([email protected]).
MAIN ACHIEVEMENTS IN 2007
Working objectives
Main achievements in 2007
Improvement of health
& safety at work
• Worldwide reduction of 10% in accident frequency (AF) and
gravity (AG). (In 2007: AF = 9.3; AG = 0.32).
• Creation of a Group Health & Safety department.
Promotion of diversity
France: diversity training and awareness.
Support for employees affected
by industrial reorganization
France: solutions found for most employees
affected by the three factory closures.
Corporate sponsorship:
to promote social integration
• Creation of the Groupe SEB Corporate Foundation.
• New projects in France and abroad.
Involvement of Groupe SEB suppliers
in its sustainable development effort
Environment:
• 29% of the supplier panel certified ISO 14001.
• 99% of suppliers signed the eco-statement.
• 34 follow-up inspections.
Social:
• Labour rights statement
Labour rights statement signed by all suppliers in Asia
and 50% of suppliers in Latin America.
• 44 new internal and external social audits.
Satisfying customers / Ensuring best
possible service for our client distributors
• Creation of a Group After-Sales Service department.
• France: 90% service satisfaction rate maintained.
Reducing the impact of the Group’s
products on the environment (eco-design)
• Potential recycling rate for new products
maintained at 70% of their weight.
• Power used in stand-by mode:
< 2 Watts for 87% of new products.
Respect for the environment
by Group factories (eco-production)
• 89% of industrial and logistics sites* certified ISO 14001.
• First biodiversity impact study (pilot site in France).
* Including trial-test sites and head office.
The full sustainable development action plan is available on our website, www.groupeseb-devdurable.com.
21
Management bodies,
Corporate governance
GROUP EXECUTIVE COMMITTEE
Thierry de La Tour d’Artaise,
Jacques Alexandre,
Chairman and Chief Executive Officer
of SEB SA since 2000. Aged 53.
A graduate of the Ecole Supérieure de
Commerce de Paris, he joined Calor in
1994 and became its Chairman, and in
1999 was appointed Deputy Chairman
of SEB SA. He is a Board member of
Club Méditerranée SA, Plastic Omnium
and Legrand and permanent representative of Sofinaction on the Board of
Lyonnaise de Banque. Board member
of Supor since January 2008.
Executive Vice-President, Strategy and
Strategic Business Areas since 2000.
Aged 60. A graduate of the Institut
d'Études Politiques de Paris and
qualified in marketing, he joined
Rowenta 22 years ago. He became
Managing Director of SA Seb, then
Director for the American Continent.
Board member of Supor since January
2008.
Jean-Pierre Lac,
Harry Touret,
Frédéric Verwaerde,
Executive Vice-President, Finance,
since 2002. Aged 57. A graduate
of the École des Hautes Etudes
Commerciales, he worked in various
countries for Rhône Poulenc, Philips
and Aventis Cropscience of which he
was Finance Director. Board member
of Supor since January 2008.
Executive Vice-President, Human
Resources, since 2002. Aged 52.
Post-graduate diplomas in
management science and human
resources. He joined the Group after
working for Rhône Poulenc and
Agro/Aventis Cropscience as Human
Resources Director.
Executive Vice-President, Continental
Structures, since 2006. Aged 52.
A graduate of Audencia, Nantes, he
entered the Group in 1995 as Director
of Products and Export. Appointed
Director for Mercosur markets in 1998,
he was given charge of Cookware
activities in 2000, and of Western
European markets in 2005. Board
member of Supor since January 2008.
22
Rémi Descosse,
Executive Vice-President, Industrial
Operations since 1999. Aged 58.
Graduate of the Institut National des
Sciences Appliquées. After a career
with Merlin-Gerin/Schneider,
he entered the Group in 1994 as
Managing Director of Tefal, and
was appointed Director of Food
Preparation business in 1998.
GROUP MANAGEMENT BOARD
In addition to the members of the Group Executive Committee,
the Group Management Board comprises:
Determined
international expansion
The product at the
heart of our strategy
Innovation,
a growth driver
Cyril Buxtorf
Marcio Cuñha
Volker Lixfeld
Patrick Llobregat
Marc Navarre
President, West and South Europe
President, South America
President, North and Central Europe
President, Asia and other territories
President, North America
Philippe Crevoisier
Jean-Pierre Lefèvre
Christian Ringuet
François Sydorowicz
President, Electric cooking
President, Linen and Personal care,
Home care
President, Cookware
President, Food and beverage preparation
Luc Dohan
Chief Science and Technology Officer
In addition to the five Continental Structures and the Strategic
Business Areas (SBAs), Group-wide corporate functions handle
day-to-day operations and apply best practices to ensure
maximum efficiency and performance. These structures include
Human Resources, Finance and Legal Affairs, Strategy,
Manufacturing, Technology, Brands, IT Systems, Sustainable
Development, Purchasing and Quality.
23
BOARD OF DIRECTORS
The Board of Directors represents all the shareholders and acts in the sole interests of the company. A collective body, it
decides on Group strategy, organization, budgets and acquisitions. In 2007, the Board of Directors met on six occasions with
88% attendance.
THIERRY DE LA TOUR D’ARTAISE
Member of the Founder group. Aged 53.
Chairman and Chief Executive Officer of SEB SA.
Shares held: 14,821 (of which 55 bare-owner shares).
SOCIÉTÉ FONCIÈRE, FINANCIÈRE
TRISTAN BOITEUX
ET DE PARTICIPATIONS - FFP
Member of the Founder group, member
of FÉDÉRACTIVE. Aged 45.
Shares held: 33,558 (of which 30,553
bare-owner shares).
A holding company listed on the Paris stock exchange
and majority-held by the Peugeot family group,
represented by Christian Peugeot, aged 54.
Shares held by FFP: 857,337.
DAMARYS BRAIDA
JACQUES GAIRARD
Member of the Founder group,
member of VENELLE INVESTISSEMENT. Aged 40.
Shares held: 56,583
(of which 53,766 bare-owner shares).
Member of the Founder group, member of VENELLE
INVESTISSEMENT. Aged 68. Chairman and Chief Executive
Officer of Groupe SEB from 1990 to 2000.
Shares held: 56,550.
PASCAL CASTRES SAINT MARTIN
PHILIPPE LENAIN
Independent Director. Aged 72.
Shares held: 385.
Shares held: 550.
NORBERT DENTRESSANGLE
ANTOINE LESCURE
Shares held: 1,650.
Member of the Founder group, member of FÉDÉRACTIVE.
Aged 36.
Shares held: 75,992 (of which 75,982 bare-owner shares).
PHILIPPE DESMARESCAUX
FRÉDÉRIC LESCURE
Shares held: 1,782.
Member of the Founder group, member of FÉDÉRACTIVE.
Aged 47.
Shares held: 21,954 (of which 19,726 bare-owner shares).
FÉDÉRACTIVE
VENELLE INVESTISSEMENT
Shareholder investment company created in 2005,
represented by its Chairman, Pascal Girardot, aged 52,
member of the Founder group.
Number of shares held by FÉDÉRACTIVE: 3,252,509
(of which 3,252,508 usufruct shares).
A family holding company formed in 1997, represented by
Olivier Roclore, aged 53, member of the Founder Group.
Shares held: 2,219,997
(of which 2,219,996 usufruct shares).
HUBERT FÈVRE
JÉRÔME WITTLIN
Member of the Founder group, member
of FÉDÉRACTIVE. Aged 43.
Shares held: 180,323
(of which 167,023 bare-owner shares).
Member of the Founder group, member of VENELLE
INVESTISSEMENT. Aged 48.
Shares held: 2,046
(of which 110 bare-owner shares).
24
ROLE OF THE BOARD COMMITTEES
Pascal Castres Saint Martin, chairman
Norbert Dentressangle
and Jérôme Wittlin.
4 meetings, 83% attendance.
Pascal Girardot, chairman
Philippe Desmarescaux
and Philippe Lenain
3 meetings,
full attendance.
The Audit Committee informs the Board on the identification,
evaluation and handling of the main financial risks to which
the Group may be exposed. It verifies the conformity of financial
reporting methods and makes proposals on the appointment of
statutory auditors.
The Nominations and Remuneration Committee reports on its
work to the Board of Directors and makes recommendations on the
composition of the Board, on the terms of office of directors, and
on the Group's organization and structures. It gives guidance
on policy for the remuneration of executives, as well as on the
introduction of share subscription and purchase option schemes.
The Board of Directors, in accordance with the recommendations
of the Bouton and Vienot reports, organized for the fifth successive
year a discussion on the functioning of the Board under the
responsibility of the Nominations and Remuneration Committee.
The Board considered that most of the improvements suggested by
previous reviews had been implemented with a beneficial effect on
the functioning of the Board.
Moreover, the Board of Directors has applied a Directors’ Charter
and Internal Rules since 2003. Combined in a single document,
these texts ensure that Board members have a clear understanding of their role, rights and duties, the functioning and objectives of
the Board of Directors and director remuneration policy.
“A WELL-BALANCED BOARD OF DIRECTORS”
Mathilde Dufour, analyst with EthiFinance, a corporate social responsibility (CSR)
research agency.
“Examination of the make-up of the Board of Directors of Groupe SEB shows it to be
well balanced in relation to the structure of its shareholder base. The presence of an
extra independent director would be a ‘plus’, but the Board does already have four
independents out of its 15 members which is quite good for a company where more than 40% of the capital is held
by the founding family group. The fact that the Audit Committee is chaired by one of these independent directors
is also a positive point in terms of good governance. Another good sign is the Board’s annual self-evaluation of its
functioning and the steps taken as a result of this. With regard to areas for improvement, we think the Group
could strengthen internal procedures for monitoring conformity with the ethical standards to which it adheres,
including the principles of the Global Compact and the Code of Conduct of the European Committee of Domestic
Equipment Manufacturers.”
25
STRATEGY
LIVING THE FUTURE
Armed with a clear grasp of current market trends and how they influence consumer behaviour, Groupe SEB
deploys a long-term strategy built around four chief priorities which are vital to its development: product
leadership, geographic leadership, competitive performance and client service.
INDUSTRY TRENDS 28 – IMAGINING THE FUTURE 30 – LIVING THE FUTURE 48
Lifestyle trends
and small household appliances
Lifestyles around the world are changing in response to new
developments in thinking, science and technology. These
sociocultural trends shape the behaviour of consumers
whose basic needs, hopes and desires motivate their decision
to buy.
EASIER AND MORE ATTRACTIVE LIVING
80,000 visitors a year
to Brazil’s Casa Gourmet,
a meeting-place
for customers.
Groupe SEB responds to consumer demands for a better and more
attractive daily life by offering them new functional features and
thought-out design. In the kitchen, which has become a real living
area in today’s home, our Group has played a big role in simplifying
tasks. For some two hours spent in the kitchen by a typical French
housewife in the 1950’s, today this need hardly be more than twenty
minutes. Groupe SEB has created ranges designed for rapid
results, ease of use and direct service: multi-function food processors, instant hot-water dispensers, pod coffee makers that serve
coffee by the cup, blenders and juice extractors that pour straight
into a glass. Cooking meals is still rewarding with our convivial
appliances that make having dinner-guests a pleasure – simplicity
itself, with a touch of originality and imagination.
28
STRATEGY – INDUSTRY TRENDS
GLOBAL REACH, LOCAL TOUCH
While the Internet has revolutionized ways of life and accelerated the convergence of cultures, there is also a growing
sense of local identity. Which is why the Group adapts to specific regional culinary practices. For example, our product
response to the popularity of liquid or semi-liquid preparations around the world was two-fold: an upright hand-mixer
for Europe and a blender for other continents. Similarly, our kettles for making tea (the world’s most popular beverage)
are designed to match local market usage – small-sized for Japan, a keep-hot function for other Asian countries.
The multi-cultural dimension of food is also taken into account by the Group’s offer of appliances such as the tajine, wok
or plancha for cooking specialty ethnic dishes.
A NEW ERA OF HEALTHY EATING
Healthy eating is a central concern in Western societies today, and
Groupe SEB is investing heavily in this sector in which it aims to play a
leading role. The challenge of preparing food which is both tasty and
nutritious is taken up by our Nutritious and Delicious line which
includes a minimal-oil fryer, a steam cooker and a steam oven for
natural, healthy cooking. This dietary trend coincides with a renewed
interest in the home-made, a demand met by our jam-makers and
breadmakers which are easy to use and give a perfect result. For people who expect professional standards at home, there are espresso
and cappuccino coffee machines...and our home beer-tapping system.
CORPORATE ETHICS: A PRIORITY
Tefal – Delicious & Nutritious
Growing public awareness about social and environmental issues
has made consumers more demanding in their choice of brand.
Concern for human rights and the future of our planet is also an
aspect of our corporate social responsibility. We therefore make
every effort to limit the ecological footprint of our activities
(reducing the power consumption of our factories and products,
designing products that can be recycled) while helping to improve
life for everyone through our commitment to ethical business and
sponsorship of social projects.
Tefal – Vitadélice steam oven
CONSUMER CRITERIA
FOR BRAND CHOICE
• confidence in the product (76%);
• importance of product quality control (74%);
• concern for the environment (83%);
• respect for certain social values (71%).
(CSA survey for La Poste).
29
STRATEGY
STRATEGY – IMAGINING THE FUTURE
The essential task of projection into the future is not easy in
the context of interacting consumer segments where change
is neither simultaneous nor uniform by market or by product
family. For Groupe SEB, this means deploying universal and
differentiated brands, products and services that offer a tangible response to the needs and desires of today’s consumers
and to their hopes for the future. It also means exploring,
conquering and expanding new territorial and technological
New Krups Precision
filter coffee maker
by designer Dahlström
for the North American market.
frontiers. This strategy is a guarantee of lasting growth.
THE ART OF BETTER LIVING
71% of sales
in international markets.
31
Brands for everyone
Over 50% of our sales
are products that were
launched in the last two years.
Deploying a powerful portfolio of 20 well-known brands is
both a strategic advantage and a challenge. For Groupe SEB,
its brands are highly valuable assets, and their differentiation
is the key to their successful deployment. The Group’s
strategy of positioning brands to match different buying
habits and segments takes account of consumer tastes and
the demands of retailers. Six main platforms of worldwide or
multi-regional brands define their respective brand missions
and value themes, while local brands slot into this overall
strategy.
Our premium brands occupy the high-end segment. All-Clad,
a prestigious label, conjures up the kitchens of top chefs.
Lagostina is aimed at people who associate elegance with
perfect results. Krups is for the demanding connoisseur, a
fast-growing segment in mature markets. Mid-range and
entry-level products are covered by our generalist brands.
Rowenta highlights aesthetic design and technical
performance. Tefal is the champion of ingenuity, while the
light-hearted youthful stance of Moulinex appeals to
consumers seeking freedom from domestic tasks.
Tefal - Toast’n Eggs
32
A MULTIPLE, TARGETED OFFER
Market segmentation and the variety of retail channels mean that the
Group‘s offer must have many facets. Its products cover a whole
spectrum of consumer needs, from first-time users in emerging
markets to the more sophisticated aspirations and desires expressed
in mature markets. It meets the needs of both mass-market distributors and selective retailers who want exclusive offers. Our multibrand strategy is the cornerstone of our market approach. It also
involves rapid development of Group-wide thematic ranges.
This highly focused offer, composed of products from the Group’s
different activities, notably cooking and food preparation, has three
main characteristics:
Moulinex – Accessimo
2007: some 210 new
products launched.
• functional features such as ease of use and ingenuity, as with
the Moulinex Accessimo and Tefal’s Simply Invents;
• a distinctive design theme for each brand assortment, as with
the Dahlström-designed Krups Précision set, or Tefal’s Reveal
created by Smart Design;
• brand concepts reflecting modern trends, as with Tefal’s
Nutritious & Delicious line conceived for tasty and healthy cooking,
the Moulinex Direct Serve for rapidity and convenience, and the
Krups Prep Expert which highlights precision technology.
These Group-wide ranges are created for all market segments and
all consumer tastes.
THE DYNAMISM OF INNOVATION
Rowenta – hair-styling appliance
A multi-specialist operator present in every segment, Groupe SEB
applies a product strategy based on broadening ranges and rapid
renewal of its offer. To do this, it uses innovation which is a key
growth lever and a competitive advantage for the Group, faced as it
is with a retail industry constantly demanding novelty to stimulate
stock turnover on store shelves.
The Group regained the initiative in an entry-level segment flooded
by Asian imports, first with its launch of Principio from Moulinex,
followed by the Tefal Simply Invents range, and then Accessimo in
2008. The Group created added value for these ranges with clever
extras such as pincers to hold hot toast, a rotating dial control for
the fryer basket, and retractable power cables.
MOULINEX DIRECT SERVE
This mid-range blender/juicer with mixing bowl is a perfect illustration of
Moulinex brand values. It is simple, quick and easy to use and the ready result
is served directly into a glass. The Direct Serve was given a big welcome by
French consumers.
33
In middle ranges where the Group is firmly established, we
stimulate market demand by regularly updating the product offer
with new concepts which are of real use to the consumer:
• Easy storage, cleverly built into our Ingenio, Compact and Cocoon
cookware ranges of stackable pots and pans has now been applied
to other products such as Body Up bathroom scales which can be
stored upright, and the Store In food processor with drawers to tidy
away accessories.
Calor – Pro Express anti-scaling iron
• Efficiency and ease of use are very important, especially for the
most tedious domestic chores. These qualities are well served in
the latest Rowenta and Tefal steam generating systems, thanks to
their advanced ergonomic and technical features (anti-wrinkle and
anti-scaling functions).
• Local relevance is another parameter taken into account by the
Group. The breadmaking machine, for example, can bake a
baguette, a panetone or a borodinski loaf. Haircare appliances such
as hair dryers, straighteners and blow-brushes are designed for
every kind of hair.
Moulinex – Home Bread
“BEING FIRST IN QUALITY TOO”
Alain Marlier, Quality Control Manager, Groupe SEB, since June 2007.
“The prime objective of Groupe SEB is to satisfy the customer with quality products. After
several years of continuous improvement, the rise in the Group’s quality indicators stalled in
2006, when there was a high rate of returns for certain products. So, in 2007, we introduced a
plan with high quality targets to redress
the situation. This plan is based on
25 criteria for progress covering all the Group’s processes,
ranging from R&D to marketing, purchasing and manufacturing.
The development of highly innovative technology products,
for example, will be subjected to stringent quality control.
An extensive quality training programme will be set in motion
in 2008, initially in France, and then internationally. It will
cover some 800 people from all levels of the company. It is
encouraging to note that the rate of returns dropped in 2007.
Our task now is to make sure that this trend continues.”
34
The standards of excellence, superior results and professional finish
associated with our top-range brands, Krups, Lagostina and
All-Clad, require the input of advanced technologies. All-Clad, our
specialist in bonded metal utensils, has for example developed
a new five-layer bonding process for induction cooking. This new
technology which guarantees perfect flatness and optimum heat
distribution is taking on fast in the American market.
CUTTING-EDGE TECHNOLOGY
Rowenta – Silence Force
The Group’s intense R&D efforts continue to generate new
technologies and cutting-edge innovations which lead to the great
commercial success stories that drive our growth. For the Silence
Force vacuum cleaner, we invented and patented a ‘silence box’
process to cut down on noise without reducing performance –
resulting in a machine six-times quieter than a classic cleaner and
just as powerful. Our expertise in nutritional cooking products
helped us to meet the challenge of making tasty chips with almost
no oil. The result of this technical prowess: the Actifry, with its
mixing paddle and hot-air convection system. These new
products show the close attention we pay to the wellbeing and health
of consumers. Eco-design is yet another area of study in which
the Group invests to make real progress in the protection of the
individual and the environment.
BETTER SERVICE FOR THE CONSUMER
A GUARANTEED RESPONSE
What if a customer has a query or an issue with a Groupe SEB product? Our national
consumer service (contact details marked on packaging) is an important source of
customer information and feed-back. This service is particularly developed in France
where it is run by a team of some 20 customer advisors based at our Consumer
Welcome Center. An independent survey in 2007 rated this centre ahead of the Group’s main rivals for quality
of service. The Group plans to extend the French model and harmonize all its customer welcome services, first
in Europe, and then throughout the world.
AFTER-SALES SERVICING
The Group also undertook a complete review of its after-sales servicing network in 2007 to improve the rate
of customer satisfaction in terms of the time taken, the cost and the quality of repairs. The system is overseen by
a new After-Sales Service department created early this year, which shows the Group’s determination to aim for
high performance in this area.
35
PARTNERSHIPS BOOST SALES
Jamie Oliver – Cookware partnership
The Group has for several years adopted a pro-active
partnership policy by forming alliances with famous
mass-market names. The resulting pooled knowhow
opens up new business horizons in areas such as
pod-filter coffee makers. Krups took such an opportunity and became the leading partner of Nespresso
and Nescafé. Thus, in 2007 several European
countries saw our Nespresso models successfully
joined by the Dolce Gusto to meet consumer demand
for different types of coffee such as cappuccino, latte
macchiato, caffe lungo or chococino. Meanwhile, the
BeerTender home beer-tapping system launched in
partnership with Heineken continued to win over
new markets. The Group has also had the benefit of
Lesaffre’s expertise in baking yeast to expand the
range of recipes for its breadmaking machines. Other
partnerships to stimulate our sales involve top chefs
such as Jamie Oliver and Emeril Lagasse, or the
famous Elite label for our beauty appliances offer.
ECO-DESIGN: PLANNING THE FULL PRODUCT LIFECYCLE
MAKING PRODUCTS RECYCLABLE
Right from the design stage of a product, the Group strives to limit its impact on the
environment: lower energy consumption, less raw materials to make it, easy
recycling when the product reaches end of use. All our design units apply the
Group’s eco-design guidelines drawn up in 2003. The Group maintained its rate of recycling potential at an average of
70% of product weight, for new products launched last year.
AN INDUSTRY EFFORT
Carrying its eco-design effort further, the Group helped to form the CREER network
in 2007. As its chairman, André Malsch, Sustainable Development Director for
Steelcase International, says: “CREER brings together companies and scientific
teams with a view to pooling resources in applied research on eco-design and
recycling potential. Its members are committed to ecology as a vector of progress. Three research projects have been
launched with funding from, for example, the French Environment and Energy Management Agency. Its work is
focused on constraints and opportunities in the use of recyclable materials, on analysis of existing recyclability
evaluation methods, and on building an eco-design technology and regulatory database.”
36
THE DESIGN AND ADVERTISING MESSAGE
Moulinex – Direct Serve
The design of each product should highlight the benefit to the user
while expressing the values of the brand. These values are made
tangible through functional features, choice of materials, colours
and design lines. By using a common theme, the design creates
coherence across complete product assortments from entry-level
to top-range. This gives unity and shared identity to Group-wide
ranges. The strength of Groupe SEB in this area lies in its ability
to combine the talents of in-house designers and external design
studios specialized by brand. We also collaborate with designers
from other regions of the world to make us more aware of local
reaction to design.
In a similar vein, advertising campaigns promote the various brand
platform themes and make it possible to develop international
concepts that can be used in different markets. Thus, Moulinex
adopted a world market stance in 2007, spotlighting its flagship
values of simplicity and ease of use with breezy and cheerful TV
spots highlighting these values with a new slogan, “Life gets
easier.” Consistent with our policy of dynamic innovation, the
Group’s advertising budget was increased by 23% last year.
Krups – BeerTender
USING LESS POWER
Groupe SEB strives to reduce the amount of power used by its electrical household appliances as this accounts
for a large part of their impact on the environment – even when they are in stand-by mode. In 2007, stand-by
power consumption was 2W or less for 87% of the Group’s new products. The ultimate aim is to bring this down
to 1W for all new products sold worldwide.
ECONOMICAL AND PRACTICAL
Launched in 2006, Tefal’s Quick & Hot instant hot-water dispenser
(called Quick Cup in England) heats exactly the amount of water
you want: even a cup at a time. It saves about 65% of energy
compared with a classic electric kettle. For Kathryn Taylor, a Quick
Cup user in Britain, “the big advantage is
that it’s quick: I make myself a cup of tea in
just seconds, which is great when I’m in a
hurry. The fact that the Quick Cup economizes water and energy is a real ‘plus’ for the
environment too.”
37
A STRONGER RETAIL PRESENCE
Our goal is to make sure that each brand profile is appropriate to
the retail channel. The product should be available at the point of
sale where the shopper expects to find it. With this in mind, our
retailing strategy has a triple focus:
• Generalist, aiming to increase our stock listing with certain
household appliance and mass-retailing outlets that favour broad
consumer choice. This is the vocation of our mid-range brands
Moulinex, Tefal and Rowenta.
Kuwait – Home & Cook High Street
• Selective, aimed at penetrating up-market channels with
exclusive product assortments and an adapted
sales approach, using our premium quality brands,
Krups, Lagostina and All-Clad.
• Alternative, geared to establishing positions
in alternative channels such as tele-sales,
the Internet or the Group’s own retail outlets.
This more recent development, which concerns all
our brands, complements the traditional retail
network approach and is making solid headway in
a number of countries.
DISTRIBUTION: CLOSER PARTNERSHIPS
What do retailers expect of Groupe SEB? They expect quality
products, on-time delivery, but also working-partner relations.
“For example” explains Philippe Neveux, head of consumer goods
stock flows and supplies for Carrefour in France, “we work with
Groupe SEB on improving sales forecasts and logistics flows.
The environment is another topic we will soon examine together
to find effective logistics solutions that are both economical and
ecological.”
Last year’s service rate (on-schedule dispatch and delivery) was
maintained at around 90% in France. This was 97% for clients who
opted for the Joint Supply Management (JSM) system. Under the JSM system, Groupe SEB manages stock
replenishment for the distributor’s warehouses. A growing number of clients also use the EDI (Electronic Data
Interchange) system to simplify and accelerate transactions with the Group and reduce their cost.
38
The Group has already opened more than 250 of its own retail
outlets around the world under the trading banners, Home & Cook
Factory Outlets, Home & Cook High Street, and Villa Gourmet.
These store formats range from stock clearance via city-centre
stores in emerging countries (where retailing is still little
organized) to selective neighbourhood shops that combine service,
advice and product presentation in mature markets.
All-Clad – Demonstration
Turkey – Promotional campaign
“RECYCLING AND RECOVERY SYSTEM TAKES OFF”
Dominique Mignon, Director of Development, Eco-Systèmes
“Eco-Systèmes operations continued to build up throughout 2007, collecting
110,000 tonnes of electrical and electronic end-of-use appliances in France, which is about
70% of the total national collection. Approved by the public authorities in 2006,
Eco-Systèmes brings together most of France’s distributors and manufacturers of
electrical and electronic appliances. Groupe SEB is a founder member and holds the
chairmanship. Collected from retailers, municipal sorting depots and Emmaüs community bases, most end-of-use
products are then sent to specialist processing centres. The rest is given to social solidarity organizations for re-use.
The initial results of inspecting 11 processing centres in 2007 showed that recycling and re-use targets fixed by
European regulations had been reached. In 2008, we plan to double the volume collected to 220,000 tonnes, and thus
exceed the collection target of 4 kg per inhabitant per year set by the European Union. Our efforts so far have been
focused on building up the network. Eco-Systèmes will shortly be turning its attention to making consumers more aware
that they should bring their old products to approved collection points. We are still a long way from clearing the
backlog of old appliances built up in kitchen cupboards!”
39
Better living all around the world
Groupe SEB has built strong market positions all around the
world by combining its determined drive for global expansion
with a policy of proximity to the customer and respect for
individuals. Pursuing a long-term business plan, it continues
to ally consolidation in mature markets with rapid expansion
in high-growth developing economies.
STRONGHOLD POSITIONS
MAINTAINED IN MATURE MARKETS
In mature markets with their high level of equipment, demand is
driven not only by product replacement. Shoppers are also drawn
by the new concepts derived from our marketing partnerships and
by upgraded ranges. Faced with an attractive added-value offer,
consumers have become reticent about cheap products and
are turning back to brands that guarantee quality. Specialist
department stores with personal customer service are growing
in popularity. Adapting to this trend, the Group has developed
assortments of products that offer a real ‘plus’ which is immediately obvious and triggers the decision to buy.
40
FRENCH SALES REGAIN GROUND
Sales rose by 7% in France last year in a buoyant market where
popular innovations were backed by strong advertising and lively
point-of-sale promotion. The success of the Actifry gave an added
boost to our fryer sales.
Similarly, the ultra-quiet 12 factories.
Silence
Force
vacuum
3 logistics platforms.
cleaner attracted a great
deal of attention. Products such as the BeerTender or the Dolce
Gusto, stemming from our marketing partnerships, shaped new
consumer tastes and were a big commercial success.
Tefal – Thermospot
REVIVED DEMAND IN WESTERN EUROPE
Markets were well oriented in terms of both volume sales and
pricing, with the exception of Britain where demand was very
subdued and the retail industry faced unprecedented problems,
though innovative products such as the Actifry and Quick Cup were
well received.
Trading was up in all other countries where the Group scored good
performances in beverage and food-preparation, cookware
(particularly Jamie Oliver ranges), electric fryers, haircare and
linen care products – all this despite growing competitive pressure.
Germany reaped the benefits of revived demand and upgraded
ranges. The Group has always resisted involvement in the
price-wars waged in this market by retailers, abetted by our
competitors. This strategy has paid off as our business is now
reporting renewed growth and profitability.
Lagostina – Domina
In Scandinavia economic
2 factories in Germany and
indicators
are
also
17 marketing companies.
positive and the retail
1 logistics platform.
industry is taking full
advantage
of
this.
Our centralized organization gives us a global view of the market,
so that the Group can adapt its offer and maintain a steady pace
of growth.
Jamie Oliver – Cast iron range
41
Italy.
NORTH AMERICA STANDING FIRM
Trading in the North American market was contrasted. In Canada,
business was brisk in a competitive context where Tefal, Rowenta
and Krups performed well alongside top American labels and
retailer brands. The presence of our Canadian marketing
subsidiary works in the Group’s favour as it ensures close and solid
client relations and a strong pricing position.
In Mexico, the lifting of customs barriers against Asian imports
radically changed the business climate. Mexican industry is badly
affected by growing competition in entry-level products. However,
the Group achieved sturdy growth by concentrating on specialist
distribution in the up-market sector.
All-Clad – Bridal promotion
1 factory in the United States.
1 logistics platform.
Business was more uneven in the United States where consumer
demand is cramped by the tense economic climate. Mid-range
products are under pressure from aggressive entry-level pricing
and the continued shift to top-range products – which helped
All-Clad cookware sales. Rowenta held its positions in linen care
products and is opening the US market for steam generating
systems. Krups, on the other hand, has still not made up
for ground lost awaiting the arrival of its new ranges this year.
Meanwhile, the Group is working on a gradual up-market reorientation of T-Fal cookware, with Mirro WearEver aimed at entry-level.
SUPPORTING SOCIAL INTEGRATION
Support for social integration projects is at the heart of Groupe SEB’s corporate sponsorship effort, particularly
through its newly-created Groupe SEB Corporate Foundation. Many of the Group’s employees do voluntary work
for its sponsored projects. In France, for example, some 50 employees participate in the work of Lyon’s Habitat
et Humanisme which assists people in difficulty to find accommodation while helping them to return to a normal life.
In its efforts to support the jobless, the Foundation sponsors
several initiatives in France, such as the Envie network which
helps people at risk to return to the employment market via a
workshop which repairs electrical household appliances. It is also
a partner with the Second Chance Foundation which supports
people in difficulty who are really motivated to get back to work,
by helping them to set up or take over a small business or to
undertake training.
42
LAURENT PAUZE, DIRECTOR, General Sales Management of Groupe Carrefour Consumer Electronic
Goods Division
“The Carrefour Group has an ongoing relationship with Groupe SEB which is based on
mutual confidence and understanding of our respective strategies. We speak the same
language – profitable growth, international expansion, customer satisfaction – and we
jointly define projects with ambitious goals. Groupe SEB knows that the quality of front-line
merchandising depends on up-stream coordination, well-planned product launches,
mounting clear workable projects, and optimizing the logistics chain. This kind of
unrestricted cooperation is indispensable to the development of our respective activities.”
SOLID BUSINESS IN OTHER TERRITORIES
The Group maintained very satisfactory growth in Japan despite the
strong depreciation of the yen which led to substantial price rises.
Korea, after a difficult 2006, began to recover and regain positions
in cookware. Trading was positive in Australia and New Zealand
where the Group continues to win market share.
Lagostina – Korean product launch
“YOUNG PEOPLE LEARNING TO LIVE AGAIN”
Claude Lannoy, Groupe SEB marketing team, Courbevoie, France.
“Affiliated to France’s SOS Villages d’Enfants, the Ateliers de La Garenne association helps about
60 young people in difficulty, sometimes homeless, to return to a normal life. The association provides
them with training in life and social skills and job orientation in special workshops or on employers’
premises.
The objective is to rebuild their confidence and
self-esteem which will help them to return to a normal
social life and employment. Groupe SEB Foundation support covers
mainly cooking, dressmaking and housekeeping workshops where
the youths are encouraged to develop basic autonomy in day-to-day
life. As a volunteer worker for the Foundation, I participated in a
cooking workshop in 2007: the young people were delighted and
touched by my visit as it made them realize that behind Groupe
SEB’s commitment there are people who are really interested in
them.”
43
RAPID PROGRESS
IN EMERGING MARKETS
Groupe SEB has long been aware of the growth potential of
emerging countries. While gaining prominence in these markets
with its strong brand portfolio, a broad product offer and efficient
commercial and logistics structures, the Group has also taken up
the social and corporate challenges of its development in these
territories.
EASTERN EUROPEAN DYNAMISM
Eastern Europe offers high potential for growth as purchasing
power rises in the region. Changing consumer lifestyles and
modernization have led to the rapid spread of retailing and Western
consumer standards.
Czech Republic – Point of sale
2 factories in Russia
and the Middle East.
The strong reputation of its brands and the Group’s policy of
proximity to the customer are paying dividends in these markets.
Sales are growing steadily in Poland, Slovenia, Bulgaria, the Czech
Republic and Slovakia, and business prospects are good.
We reinforced our presence in this zone last year by creating a new
subsidiary in Latvia.
BURUNDI PROJECT BACKED BY 7,000 SEB EMPLOYEES
A wave of solidarity spread throughout Groupe SEB on the occasion of its 150th anniversary when it set up its
corporate sponsorship Foundation. Employees were invited to help a UNESCO schooling initiative for 2,000
ex-street children in Burundi by sending in a personal photograph for use in a collective work. For each photo
sent in, the Group’s Foundation undertook to donate €2
to the project. The result: more than 7,000 photos were
received from employees around the world. The Group
decided to contribute €15,000 to the project and its
Foundation matched this to make a total donation of
€30,000 to UNESCO. As a sign of their genuine interest
in the project, staff members sent in more than
400 messages with their photos which were sent on to
the Burundian children via the UNESCO representative
in that country.
44
CIS countries continue their rapid expansion, particularly Russia’s
regions where some 100 urban centres are growing at a rate
comparable to the major cities. This is amplified by the spread of
retail chains. Being long established in Russia, the Group has an
effective local structure and is ahead of its rivals who are still not
well organized in this market.
MIDDLE EAST CONTRASTS
Russia – Demonstration
The shifting economic and political situation in the Middle East is
reflected for the Group in contrasting patterns of business. After a
slow start to the year due to national elections, Turkey, which is a
large market, saw sales recover
strongly to record a good year.
Trading remained stable in the
other countries of the region.
The prospect of creating an
economic community in the Gulf
states should work in favour of our
business.
Turkey – Lissima
BRAZIL: SOCIAL INTEGRATION VIA TRAINING
Convinced that education and training are decisive in the combat against social exclusion,
Groupe SEB’s Brazilian subsidiary Arno is very active in this area with the involvement of
more than 70 staff volunteers. The “Grandad’s Bakery” initiative, for example, runs
baking courses for poor elderly people to help them make ends meet by baking
and selling bread or pastries. This project was followed up in September 2007 by a
partnership arrangement with the São Paulo municipal authority. Over four months, almost 50 people took
part in the eight-hour training course run by a qualified Arno employee. At the beginning of 2008, there was a
waiting-list of more than 100 candidates.
COLOMBIA: HANDICAPPED YOUTHS WALK AGAIN
The Por el Derecho a Caminar (‘right-to-walk’) foundation in Colombia aids deprived young amputees to walk
again by obtaining prostheses for them at low cost or free of charge. It also provides medical and social support
to help them find employment. Our Colombian subsidiary, a partner in the project, recently hired five such
people through Por el Derecho a Caminar. Represented in France by the Equilibre association, this humanitarian
initiative has been given a grant by the Groupe SEB Foundation.
45
1 factory in China.
ASIA PROVES ITS POTENTIAL
The smaller countries of Asia continue to expand thanks notably to
the development of their distribution infrastructures. Today, we are
building up our presence and brand reputation in these territories
which are relatively new for the Group. In Malaysia, for example, we
broadened our offer to include irons and blenders, while consolidating positions in cookware. In Thailand, despite a slowdown in
consumer spending, the Group made progress in steam irons.
In Taiwan, we have increased our share of the cookware market.
Finally, China is a fast-growing market and an essential element
in the Group’s international expansion strategy. Our acquisition
of a controlling stake in Supor puts us in a front-rank position to
participate in the economic expansion of this country.
SOUTH AMERICAN MARKET STILL BUOYANT
Our South American operations reported an excellent year’s
trading. Economic indicators for this continent are generally
upbeat, even if the higher value of the Brazilian real continues to be
a drawback.
Supor – Wok
Brazil is seeing the emergence of a better-off middle class with
higher spending power which is turning to specialist retailers and,
increasingly, to hypermarkets. Arno continued to expand its sales
in food-preparation equipment where we are gaining market share,
as well as in fans, washing machines and coffee makers, while
A CORPORATE CITIZEN
SEEKING SOLUTIONS WITH OTHERS
As a signatory of the Global Compact, Groupe SEB attended the
UN Global Compact Leaders Summit held in Geneva in July 2007.
Along with 1,000 other business leaders from around the world,
it took part in discussions on corporate social responsibility
(CSR) practices.
Groupe SEB is a member of the IMS (‘Institut du Mécénat et de la
Solidarité’), an association which supports business enterprises
in carrying out their corporate social responsibility.
The Group participates in initiatives that seek to promote awareness of sustainable development among students
in leading national institutes and universities, notably in France through the Dialogues Equation forum.
It is also a partner in an educational pilot project on diversity run by the Paris Institute of Political Science.
Under this scheme, some 100 high-school students from a deprived Paris suburb travelled to China in 2007 to
get a first-hand idea of globalization. While they were there, the young people were taken on a visit to the SSEAC
factory, a subsidiary of Groupe SEB in China.
46
Panex is consolidating its position in cookware thanks to the
introduction of the Thermospot.
Elsewhere on the South American continent, excellent trading was
reported in Venezuela which is protected from Asian imports by
strong trade barriers. The
Group has a business agree- 3 factories in Brazil
ment with the government of
and Colombia.
this country where we have a
competitive production plant
and a reorganized sales 2 logistics platforms.
force. The Group also achieved steady growth in Chile and Argentina, markets otherwise noted
for their volatility.
Peru – Product demonstration
Brazil – Arno factory
AT THE HEART OF LOCAL TERRITORIES
Throughout the world, Groupe SEB forms close community links in the territories where it operates: open days
and participation in local economic, educational and community events. Group sites cooperate with schools for
example, offering site visits and training courses for students. Many of them also support social projects and
sporting events.
Aware of the importance of its role in local economic life, Groupe SEB acts
responsibly when it must restructure or even close a factory to be more
competitive. When this must be done, it takes early action in cooperation
with all parties concerned to limit the impact on local employment. Of the
three factories closed in France, two (Dampierre and Vosges) have already
been re-opened by a new industrial owner, and a similar solution was
being studied for the Fresnay plant at the beginning of 2008. In Mexico, the
Celaya factory closed in 2007 is about to take on sub-contracting work for
Services Vistamex, and plans to resume industrial operations under a new
owner.
47
STRATEGY
48
STRATEGY – LIVING THE FUTURE
LIVING THE FUTURE
The future is often closer than we think – which is why a
business enterprise must strive continually to be an agent of
modernity and progress. Critical size is no longer enough.
Today, a company must be responsive, quick to take action,
flexible, and steer a balanced course which takes account of
the interests of all its stakeholders. The immediate demands
of profitability, vital to the survival of any company, must be
consistent with a responsible long-term approach in every
St Jean de Bournay, France – R&D laboratory
area of its day-to-day operations. Innovation, optimization
of structures and control of costs are essential for staying
competitive. And for this capacity to be durable there must be
a long-term economic and corporate strategy to which all its
employees are committed. Clearly, that is what Groupe SEB
strategy is all about.
RESPONSIBLE
PROGRESS
Tefal – Evolis bathroom scales
49
Constant progress
The 2007 trading year showed that the Group’s best performing products were the fruit of innovation and steady investment in advertising and marketing, combined with rigorous
management of our business. Differentiated and targeted
innovation generates a better product mix and higher
average sale prices – which means constant progress for
consumers and new growth for the Group. This win-win
formula, combined with tight control of purchase costs and
overheads, results in higher profits and – completing the
‘virtuous circle’ – new investment to generate future growth.
INNOVATION DRIVING GROWTH
A PROVEN KEY TO SUCCESS
Tefal – Actifry
Sold in 2007:
210,000 Quick & Hot.
175,000 Actifry.
68,000 Silence Force.
Long practised and perfected by Groupe SEB, innovation is one of
its hallmarks and a key source of leverage for its continuing
growth. Enlisted to develop new functional features and breakthrough concepts that make its products stand out, innovation is
the driving force behind the Group’s product offer, ensuring the
best response to evolving consumer needs.
50
A more assertive commercial stance in 2007 led to the launch of
some 210 new products and models, confirming more efficient
design and development and a faster time-to-market cycle for new
electrical household products. This involves greater use of Product
Lifecycle Management (PLM) and new technologies developed
through Group-wide projects that leverage our combined
strengths. In this way, printed-circuit heating elements developed
by Tefal, for example, found many other applications such as in the
Quick & Hot water dispenser. Similarly, the Actifry drew on several
of the Group’s patented cooking and stirring technologies, while
the Silence Force vacuum cleaner incorporated our unique
patented ‘Silence Box’ process.
Pont Evêque, France – Steam iron factory
Krups – PrepExpert kitchen machine
ECO-PRODUCTION: FACTORIES THAT RESPECT THE ENVIRONMENT
All production and logistics sites forming part of Groupe SEB for more than five years held ISO 14001
environment certification in 2007. The most recent plant to be certified was our SSEAC factory in China. All-Clad,
Lagostina and Panex, acquired since 2004, are gradually introducing the procedure to obtain certification.
Beyond its efforts to steadily reduce consumption of water and energy, and
limit waste and emissions, the Group has begun to assess the impact of its
activities on biodiversity. Our French Rumilly site is paving the way in this
area. Last year, with the help of three leading environmental scientists,
it carried out a study of atmospheric emissions on local flora. Using
comparative analysis of lichen samples taken from vegetation zones close
to the factory and from control zones (a frequent method of identifying
pollution) the study found that there was no impact on these species.
This pilot study will serve as a reference frame for subsequent follow-up
studies every three or four years.
51
THE KEY ROLE OF R&D AND INDUSTRIAL PATENTS
In a market where accelerating change is the norm, the task of
research and development is to make sure that the Group has a
solid agenda of ongoing projects in the short, medium and long
term. This involves fully exploiting the areas in which it already
commands specific expertise while going on to explore new frontiers. These are increasingly technical, even scientific, embracing
for example nanotechnology, fine-scale materials analysis, the
chemical composition of food and other areas. At the same time,
incorporating environmental criteria at the product-design stage
broadens the scope of R&D applications. For this reason we have
stepped up recruitment in the last two years to reinforce our
research and development teams with skills in new specialist
areas.
R&D – Caen laboratory, France
Industrial patent registration aims to protect innovation and
defend it from infringement. Groupe SEB, as the proprietor of
more than 1,000 current patents, is one of the most pioneering
French companies in this area. In 2007, it filed 86 new patents and
276 preliminary notifications (the so-called Soleau filing, used to
date a patentable idea). Despite these precautions, our products,
models and brands are often copied, counterfeited or unlawfully
exploited. The Group is continually on the alert in sensitive zones
such as China and the Middle East, and closely monitors trade
fairs. When necessary, it takes legal action (23 cases in 2007) and
arranges to have illicit products seized (16 seizure operations
were carried out last year).
“GROUPE SEB DID NOT LET US DOWN”
Dominique Emery, Mayor of Fresnay-sur-Sarthe, France.
“When I heard of the plan to close the Groupe SEB factory in our commune, my immediate concern was for the workers: what was going to become of them? Groupe SEB
reassured me, explaining that solutions existed for all the staff and no-one would be
neglected. I accepted their word on this, but one also had to consider the future of the
site and local job creation. The closure of a plant of this size is a hard knock for an area
where there is already little industry. Here again, Groupe SEB played the game
by becoming closely involved in a reindustrialization unit set up with local public and
private interests. Several take-over plans were considered during 2007, and the local
site managers were very cooperative with potential buyers. At the beginning of 2008, we
are on the way to finding a viable solution (still confidential) with a company which plans to take over the entire
site and create a substantial number of jobs. This will give new economic momentum to the commune.”
52
THE NEED TO BE COMPETITIVE
OPTIMIZING THE INDUSTRIAL VALUE CHAIN
R&D key figures:
475 people,
€46 million budget,
more than 1,000 current
patents.
Groupe SEB’s industrial strategy takes account of economies
of scale, labour-cost differences*, and the need to use protective
barriers for its production processes and innovations. These
considerations guide the Group in deciding whether to make
certain products internally or to outsource them. In 2007, Groupe
SEB manufactured 65% of the products it brought to market. Last
year it closed three French factories which had been chronically
under-capacity. This was done responsibly under self-imposed
conditions that sought solutions for all the staff and reindustrialization of the sites. Meanwhile, the Group is building up centres
of expertise with the ability to confront global competition by
exploiting new technologies and high-volume production. One such
centre is the Is-sur-Tille plant which was behind the huge success
of the Actifry.
The Group is also rationalizing outside France: in Mexico, it closed
its Celaya plant which could no longer compete after the lifting of
trade barriers against Asian imports, while it concentrated its
American Millville site exclusively on logistics, and regrouped
production units in Brazil. Meanwhile, it continues to improve and
modernize production processes and exploit internal synergies
throughout the Group. The All-Clad plant in Canonsburg USA, for
example, introduced completely new bonded-steel production
techniques which will help to optimize output, reduce wastage of
raw materials, and speed up the finishing process.
* For example, the hourly rate in China is about 50-times less than in Western Europe.
Mayenne, France – Food-preparation appliances
United States – All-Clad plant
53
COLLABORATION IN PURCHASING
Rumilly, France – cookware factory
The task of the Purchasing Department is to help the Group to be
more competitive by procuring everything it needs to develop,
manufacture and market quality products at an optimum overall
cost. To achieve this, it applies a five-point strategy:
• to obtain the best conditions not only in terms of price, but also
in terms of quality, reliability and on-time delivery;
• to make optimum use of the Group’s approved supplier panel
(numbering 455 last year, out of a total of 2,404 current suppliers);
• to improve the performance of these suppliers through an annual
review procedure;
• to get suppliers involved upstream in projects, by combining
skills and efforts to improve overall performance and future
efficiency;
• to ensure compliance with the Group’s ethical, environmental
and social commitments.
SUPPLIERS: CLEAR RULES FOR COMPLIANCE
CLOSE WORKING RELATIONS
In 2007, the Group had 2,310 suppliers of raw
materials and components and 94 providers of
sourced finished products, most of the latter
located in Asia. Each of these categories includes
a hard core of suppliers who are considered
particularly reliable and financially solid, and
who make up the approved supplier panel. These
suppliers account for more than 80% of our
purchases and the Group maintains close
working relations with them.
The Group satisfies itself that all its suppliers
meet the terms laid down at the time of ordering
(quality, price, deadlines, etc.), including compliance with the Group’s sustainable development
criteria, particularly in relation to the environment and labour rights. Sustainable development
criteria form an integral part of our purchasing
guidelines and general purchasing conditions.
54
The Group’s increased procurement in dollars or in
low-cost countries during 2007 was not enough to
offset very steep price rises for raw materials such
as aluminium and nickel. Total purchase costs for
the year increased by 2.4%.
In the area of sourced finished products, the Group
reinforced its procurement structures based in
Hong Kong and Shenzhen with a view to focusing
on a limited number of approved suppliers and
building up long-term working relations with them.
Supplier – Kaneta in China
ENVIRONMENT: PROGRESS ON ISO 14001 CERTIFICATION
All the Group’s suppliers – of raw materials, components or finished products –
sign an eco-statement in which they undertake not to use substances forbidden by
regulations in the countries where the products they are concerned with will be
sold by the Group. The conditions laid down by the European RoHS* directive on hazardous substances form part
of the eco-statement, and the European REACH* regulations on chemicals will also be gradually integrated.
Inspections and analyses of components are carried out regularly to verify the conformity of delivered products.
The Group also presses its suppliers to begin the procedure to obtain ISO 14001 environment certification.
Close to one-third of the Group’s supplier panel for raw materials and components already hold this certificate,
while the rate for the finished products supplier panel is 11%.
INCREASE IN SOCIAL AUDITS
Respect for labour rights is a key requirement for Groupe SEB. With an increased proportion of its supplies
sourced in Asia, the Group decided to introduce an SA 8000-style labour rights statement for this zone. The
statement has been signed by all its Asian suppliers. To monitor actual practices in the field, 44 detailed social
audits were conducted in 2007, of which 17 by an external agency.
In the event of failure to comply with regulations, the Group immediately suspends all new orders for the supplier
concerned, and makes corrective action a condition of resuming business (after verification by a follow-up audit).
Of 44 supplier audits in 2007, a single case of non-compliance with regulations on under-age working was found.
This labour rights statement was extended to Latin American suppliers in 2007. Half of them have already signed.
* see Glossary.
55
CONTROLLING STRUCTURAL COSTS
The logistics function is vital to the efficiency of
the Group if it is to achieve goals such as faster
time-to-market for products, rapid global
expansion, greater use of sourcing and
development of alternative retail channels.
To guarantee impeccable client service,
we must optimize stock flows between our
factories (or those of outside suppliers for
sourced products) and retailer warehouses,
while maintaining tight inventories despite the
greater distances covered. Beyond the use of
freight and logistics clusters* and centralized
warehouses (Belgium is supplied since 2007 by
the French platform) the Group uses leading
international logistics operators to ensure freight transfer in the
best possible conditions. The Group also recently added an
environment clause to its freight contracts.
“WE CROSS-CHECK A WHOLE RANGE OF FACTORS”
Pierig Vezin, Managing Director of Wethica, social audit consultants, Shenzhen, China.
“At the request of Groupe SEB, we carried out 17 social audits of suppliers in China during 2007. The object was
to verify application of the labour rights statement they signed, with particular attention
to points based on the CECED* Code of Conduct, the Global Compact* and local labour
regulations. We were particularly vigilant in the areas of under-age hiring, health and
safety, working hours and pay scales. For our studies, we spend a minimum of two days
on the spot, during which we gather a whole range of information which is
double-checked to verify its accuracy. This involves presentation of the factory by
its management, a detailed visit of
all departments – workshops, offices,
catering facilities, dormitories – scrutiny
of administrative documents and
interviews with members of staff. The 17 audits carried out last
year gave rise to a few warnings, including one on the risk of
employing under-age workers due to inadequate verification of
personal identity. On the basis of these audits, Groupe SEB
decides on appropriate action depending on the circumstances.
While there are still many areas for improvement, I note that
there is a generally positive trend in working conditions
in China.”
* see Glossary.
56
The Group is also rationalizing its management tools. The
convergence of its information systems into a uniform Group-wide
IT system continued. By the end of 2007, the Group IT system covered 84% of total consolidated sales (80% at the start of the year)
and 75% of production costs and supplies (against
51% at the start of the year). Other advances in
2007 included automatic invoice scanning for the
Group’s Shared Services Centre for accounting.
This helps to increase productivity and improve our
environment performance.
* Clusters: structures spanning several markets, used to pool and coordinate administrative, logistics and other functions.
United States – All-Clad production line
REDUCING THE ECOLOGICAL IMPACT OF FREIGHT TRANSPORT
The Group’s products cover long distances from factory or supplier to the Group’s logistics platforms, and then
on to distributor warehouses. Concerned to limit the impact on the environment, the Group gives priority to
freight transport that causes the least pollution.
While maritime transport is used for most intercontinental freight, road haulage still tends to dominate inland.
The Group has added a sustainable development clause in its contracts with road haulage firms. In France, for
example, this covers engine type, recycling of oil and fuel
consumption. The Group also aims for a maximum loading
rate for road haulage, particularly for out-going freight
from its French export platforms for delivery to its European
subsidiaries.
When possible, rail or water transport are given priority. In
Mexico, for example, 97% of containers arriving by sea in 2007
were transferred by train to the Mexican warehouse, whereas
this had been done by road haulage up to 2003. Another example: since 2006, transport of the Group’s products destined
for Russia and the CIS countries has been switched from road
to inland waterway between Rotterdam and Saint-Petersburg.
57
Caring for individuals
Groupe SEB’s working teams number more than 13,000*
women and men spread over the four corners of the world.
The high calibre of their commitment is the driving force
behind the company’s development. In an economic context
which is evolving all the time, Groupe SEB gives priority to
raising the skills of its employees. It also attaches great
importance to ongoing staff-management dialogue
throughout the company and fair treatment for everyone.
More than 60% of
employees outside
France (including Supor).
HUMAN RESOURCES: THE SAME RULES FOR ALL
The international expansion of Groupe SEB means that a growing
number of its employees are located outside France – almost half
in 2007, though this will rise sharply in 2008 with the addition of
Supor staff. To ensure fair treatment for all its employees, the
Group is gradually harmonizing its human resources management
procedures, which cover annual evaluation interviews, written job
descriptions, career development and remuneration policy. This
system currently applies to the Group’s 1,700 managers and will be
extended to other employees. An international human resources
network group was created last year to facilitate the sharing of
*Excluding Supor.
58
common procedures. This group meets twice a year and brings
together human resources managers from the different continents
and principal countries.
GOOD MANAGEMENT PRACTICES
On the occasion of its 150th anniversary, the Group reaffirmed the
values to which it has always adhered: enterprise, innovation, team
spirit and professionalism. These values are at the heart of
Fair Process (applied by the Group since 2004) which seeks to
generalize a participative mode of management which lays emphasis on leading and motivating
working teams for better
performance. Fair Process is
discussed at the annual
evaluation interview and is an
integral part of all management training programmes.
Human Resources – Group project
PROUD TO WORK FOR GROUPE SEB
In 2007, Groupe SEB polled its 1,700 managers to seek their views on its
progress since the last survey in 2003. The questionnaire got a 66% response. The vast majority of respondents (96%) said they were proud to
work for Groupe SEB, a company whose strategy they understand and
approve. They feel they have contributed strongly to the recent changes in
the Group, notably its international expansion and increased competitive
ability, and consider that the career development horizon offered by
Groupe SEB today is broader than a few years ago.
59
ACTIVE LABOUR DIALOGUE
Groupe SEB has always respected freedom of association and
accorded a high priority to labour dialogue. In most countries, the
Group’s entities have trade unions and staff representative bodies.
Its European Works Committee regularly welcomes new members
as the European Union expands. It now comprises 23 members
from 13 countries. Labour-management dialogue which was
particularly active in France during 2007 led to the signing of three
key agreements with employee representatives: the first concerns
a forecast planning system for jobs and skills, the second aims to
improve trade union rights and the status of staff representatives,
and the third covers the introduction of a supplementary health
insurance fund for all Group employees in France.
INDUSTRIAL REORGANIZATION
European Works Committee – 23 members
The industrial reorganization plan begun in France in 2006 was
virtually completed in 2007 fully in line with the Group’s undertaking to offer a solution for every employee concerned. The Fresnay
(Sarthe), Dampierre (Jura) and Le Syndicat (Vosges) factories were
closed and the Vernon (Eure) plant was rescaled. By the end of the
year, a solution had been found for almost all of the 890 employees
affected by the job cuts, using measures such as internal transfers,
jobs created under the reindustrialization of the sites, or early
retirement. Of the employees who opted for voluntary redundancy,
some 60 continue to benefit from Groupe SEB support until
this autumn.
“I CHOSE TO CONTINUE WORKING”
Nicole Dorkeld, a former employee of the Groupe SEB Dampierre factory, now works
as an operator with PSP.
“Under the arrangements made for employees at the time of the closure of the Dampierre
factory, I could have opted for early retirement at 55 and so stop working at the end of April 2009. But, when it came
to signing the agreement for early retirement, I just could not do it because I felt I really wanted to go on having a
working life. Before joining Groupe SEB, I was a housewife for 18 years, and I did not want to return to that situation.
I need to have an occupation, a full life. Today, I work for PSP – Poivrières Salières Peugeot – where I was
re-employed with a lot of other ex-Group employees. I assemble pepper, salt and spice mills, and I am responsible
for the product from A to Z – from assembling the different parts to packaging the finished article. I realize that new
legislation on retirement age may require me to work beyond the age of 60, but I am very happy to have made this
choice.”
60
HEALTH & SAFETY: A NEW DYNAMIC
Drop of 10% in the rate
of work accidents worldwide.
In France, accident frequency was cut by 6% and accident severity
by 26% last year, to rates of 18.6 and 0.52 respectively. While these
figures confirm an improving trend since 2005, the Group wants to
step up this process to substantially and permanently improve
safety conditions on a world scale. In 2007, a dedicated Health &
Safety department was created.
In the area of industrial health, the Group continues its efforts to
reduce muscular strain injuries. Measures in this direction include
rotation of staff between work stations, integration of ergonomic
criteria at the product design stage to simplify limb movements
during assembly, and the use of ergonomic notices at work posts,
extensively used in the Group’s factories today.
Pont Evêque – Steam iron factory
“HIGH STANDARDS IN SAFETY”
Maurice Billet, Groupe SEB Health & Safety Manager
“The three-year health & safety plan launched by Groupe SEB early this year sets high standards: it aims to
achieve an accident frequency rate of less than 6.5 and a severity rate of 0.3 by 2010, worldwide. This has already
been achieved by some sites, though others, notably in France, will have to reduce their 2007 rates by half to
reach the target. With this in view, we took a number of steps at the end of last year to reinforce day-to-day safety
surveillance in production: training of work-team leaders, a monthly accident prevention review by these team
leaders, and improvement of visual safety warnings. All these steps will be extended worldwide during 2008, in
addition to existing improvement measures. The Group has also begun the procedure to obtain certification for
its health & safety management system, so that by 2010 all our industrial and logistics sites worldwide should
be OHSAS* certified. Three already hold this certification: Cajica in Colombia, Millville in the United States and
Rumilly in France.”
* see Glossary.
61
ATTRACTING YOUNG TALENT
With its eye to the long term, Groupe SEB conducts an annual review of its human resources by core business and
geographic zone. This allows it to prepare for its future needs, identify key posts and draw up succession plans that take
account of the career ambitions of each individual. In addition to this internal mobility, recruitment of new staff is also
of vital importance. As part of its effort to project an attractive image as a future employer, the Group has developed
partnerships in recent years with top-level educational institutions. In 2007, it hired almost 100 young managers in
marketing and in research & development.
DIVERSITY
By signing the Diversity Charter in France in 2005, the Group
undertook to combat discriminatory practices. In 2007, several
internal awareness-raising campaigns were organized (posters,
events, brochures, etc.), and 55 managers were given training
on this topic, with special emphasis on non-discrimination in
recruitment. Improving the gender balance in management posts
is also one of the Group’s objectives. Women represented 28.9%
of managers worldwide last year, compared with 20.1% in 2002.
The Group also took steps in certain areas to redress any pay
differences that still existed between male and female staff.
R&D – Steam irons, France
TRAINING: A NON-STOP EFFORT
Training provides leverage for upskilling at every level of the
company. In 2007 the training budget represented 2.3% of the total
payroll, compared with 2% in 2004. The Groupe SEB Academy
provides international training courses on management and strategic skills in such areas as marketing, finance and logistics.
These modules also cover various sustainable development topics
such as the environment and diversity. Two new programmes were
added last year – an in-house course on product development, and
a course on efficient business planning adapted to different
continents, organized in partnership with the International Business School in Paris (ESSEC).
In addition to these international programmes, local
training is provided for all the Group’s employees.
Each year, the Group Human Resources department
defines training priorities in a document which is sent
to all the Group’s entities throughout the world.
This provides a general framework for use by each
subsidiary to devise a training programme adapted
to its needs. A global reporting system ensures
feed-back on all the Group’s training courses.
62
AN ARRAY OF TOOLS FOR INFORMATION
AND EXCHANGE
249,765 hours
of training worldwide.
Intranet – Portal
The Group’s in-house communications system uses a three-fold
approach: line management communication, the Group’s intracom
network and the in-house press.
The line management structure is the essential relay for information between the Group’s executive bodies and its working teams.
To reinforce this direct contact, the Group created a Management
Forum in 2007. This brings together some 100 managers in France
three times a year to review trading results and the high points of
recent months, and to exchange views on various topics. On the day
after the meeting, documents presented at the Forum are sent
to all managers worldwide, who then relay the content to their
staff teams.
Another important medium of communication is the intracom
in-house network which offers a wide range of information on the
Group: daily bulletins with backup documentation on relevant
topics, exchange forums, and a growing number of links dedicated
to subjects such as sourcing, after-sales service and quality
(several dozen of these links were created in 2007). The in-house
press comprises the Tempo magazine (primarily for management)
and some twenty local site news bulletins around the world.
In 2007, a facts & figures brochure on the Group was
produced in nine languages and distributed to all our employees.
“LISTENING MORE CAREFULLY”
Philippe Aze, a supervisor at the Saint-Lô Groupe SEB factory
“Until I went on the diversity training course, I hadn’t felt directly concerned with the subject: the staff in our work
unit has been the same for years, and there aren’t many people from different ethnic backgrounds in the local
job market. But this training made me realize that diversity goes well beyond skin
colour: it includes equal treatment for women, taking account of handicaps (even if they
are only slight) and, in a more general sense, differences between individuals working
on the same team. The training broadened my outlook, especially by making me more
attentive to others. During meetings, for example, I now make sure that everyone participates, and during the annual assessment interviews I will listen more carefully to what
people say. Just after the training, I still had no idea it would be so useful to me, but it
was gradually, in concrete situations, that I realized the true meaning of the word
diversity.”
63
GLOSSARY
BIO-DIVERSITY: all the earth’s living species,
ISO 14001: International Standards Organiza-
their genetic diversity and their habitats.
tion certification for environment management
systems.
CECED: (Comité Européen des Constructeurs
d’Equipement Domestique): European Committee of Domestic Equipment Manufacturers.
DIVERSITY CHARTER: a document which
encourages French companies to promote
diversity in their workforce and to combat all
forms of discrimination.
LABOUR RIGHTS STATEMENT: Groupe SEB
requirements imposed on its suppliers in relation to labour rights and working conditions
based on SA 8000 international standards.
OIW: Ordinary Industrial Waste. Non-hazardous
waste which can be processed in household
waste treatment facilities.
ECOLOGICAL FOOTPRINT: a measure of the
impact of an individual or group on the
environment, based on the amount of
biologically productive area needed to generate
all the resources a human consumes and to
absorb all the corresponding waste.
ECO-DESIGN: design which seeks to minimize
the environmental impact of products at every
stage in their life-cycle.
OHSAS 18001: A set of international standards
on occupational health and safety management.
REACH: the new European chemicals policy
(Registration, Evaluation, Authorisation and
Restriction of Chemicals) which aims to ensure
a high level of protection for public health and
the environment.
ROHS: European Directive on Restriction of
ECO-ORGANIZATION: a non-profit organization accredited by the public authorities which
carries out legal obligations on behalf of its
members in the area of collecting and processing waste.
ECO-PRODUCTION:
manufacturing which
respects the environment and limits potential
ecological risks.
Hazardous Substances such as lead, mercury,
cadmium and hexavalent chromium in electrical
and electronic equipment.
SA 8000: A set of international corporate social
accountability standards which control and
monitor working conditions, health and safety,
non-use of child labour and other areas.
SERVICE RATE: the proportion of orders that
ECO-STATEMENT:
Group
specifications
binding on suppliers, which prohibit the use
of hazardous substances in products and
components.
SIW: Special Industrial Waste – sensitive waste
GLOBAL COMPACT: United Nations pact
which must be processed in specialized
facilities.
which promotes ten principles covering human
rights, labour law, the environment and anticorruption.
64
leave the Group’s warehouses on schedule and
are delivered on time to distributors.
WEEE:
Waste
Equipment.
Electronic
and
Electrical
AIRBAKE
ACKNOWLEDGMENTS
ALL-CLAD
ARNO
CALOR
CLOCK
KRUPS
LAGOSTINA
MIRRO
MOULINEX
PANEX
PENEDO
REGAL
ROCHEDO
ROWENTA
SEB
SUPOR
SAMURAI
TEFAL
T-FAL
WEAREVER
professional
authentic
italian
elegant
precise
perfectionist
COOKWARE
ELECTRIC COOKING
intelligent
refined
ingenious
generous
simple
quick
air-conditioners...
LINEN CARE
Food processors,
PERSONAL CARE
GROUP PROFILE
Groupe SEB
BP 172
www.groupeseb.com
WORLD RANKING
SOCIAL COMMITMENT
SALES
€2,870 million +8.2%
OPERATING MARGIN
NET INCOME
€301 million +14.7%
€143 million +64.2%
FINANCIAL DEBT
€658 million
CAPITAL EXPENDITURE
2007
EMPLOYEES
* see Glossary
80% of equity
€92 million
13,048
worldwide
at 31/12/07

the file.

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