Download the file. - Groupe Seb

2
GOVERNANCE
The successful launches of new products such as the intelligent
multicooker, Cookeo, the Freemove cordless iron and the Ultimate
ceiling fan in Brazil, as well as the undisputed success of Actifry and
the Air Force upright vacuum cleaner in countries where we have
recently started selling them, have been the best responses to the
price decreases offered by some of our competitors. Other
innovations will take over and ensure the continued growth of our
business, relying on the notoriety and the complementary approach
of our international and regional brands, which have a huge
presence in all distribution networks all over the world. This is how
we manage to withstand crisis situations and how we will be able
to benefit from the recovery when it occurs.
The strong diversification of our business and our geographical
coverage has been a key factor in the regularity of our performance
over the years. In 2012, the drop in the Chinese market was
therefore compensated by the rise in sales in Russia; the sharp
decline in Europe was largely offset by the marked recovery
of business in Brazil and strong growth in Japan and South Korea.
It is true that we have been coming across some difficulties
in India. We believe these to be temporary but they nevertheless led
us not to consolidate the company Maharaja Whiteline and to
depreciate partially its shares, which has in turn had a negative
impact on our results. However, we are convinced that we shall
overcome these problems and take part in the growth in this market
in which we are present, even though were are a small player for
the time being.
Over and above these developments, the Group's financial situation
has been further strengthened by an ample generation of cash from
operating activities. Our financing architecture is sound,
well-structured and diversified, granting us flexibility and
responsiveness.
vision. By placing our employees at the heart of the process, we
have in fact significantly enhanced the cohesion and collaboration
of our industrial teams.
2012 was also shaped by the development and widespread
distribution of a worldwide Code of Ethics, which is THE reference
text for the Group in terms of behaviours and best practices in our
relationships with all of our stakeholders.
At the end of this difficult year, I would like to thank all employees
for their resolute commitment as well as for the work they have
accomplished and the efforts they have made, both in overcoming
adverse economic circumstances and in making advancements
in the Group’s working process.
A large number of our employees all over the world have also
demonstrated their faith in the future of Groupe SEB through their
extensive participation (almost a third of subscribers in the
30 countries involved) in the "Horizons 2012" employee
shareholding program and I would like to take this opportunity to
thank them wholeheartedly.
2013, A YEAR OF TRANSITION
2013 began against a general background that is just as uncertain
as it was in 2012. In a macroeconomic environment that is still
tense, we do not anticipate at this stage any marked increase in the
cost of raw materials and we remain cautious when it comes to
developments in currency fluctuations. A context of mitigated
consumer spending looks set to prevail, remaining sluggish in
Europe and weak in the United States, but with potential for gradual
improvement in the new economies, in particular in China.
However, 2012 did not just amount to our economic performance.
The year should also be looked at from the point of view of the
inroads and progress which were achieved.
The introduction of our OPS program for continuously improving the
competitiveness of our industrial facilities has led to excellent
results, both at our sites in mature countries as well as those in
emerging markets (China, Brazil, Colombia). This quest for
excellence applies throughout the entire value chain, from the
purchase of raw materials and components to the end of the
products' lifecycle, with an approach combining productivity and
health & safety, two areas which are inseparable in a long-term
Our business model is based
on innovation, the strength
of our brands, an in-depth
understanding of distribution
and a strategy with a firm
international foundation