Download the file. - Groupe SEB

Highlights of the First Quarter
Economic Environment
AIRBAKE ALL-CLAD ARNO CALOR CLOCK KRUPS LAGOSTINA MIRRO MOULINEX PANEX
PENEDO REGAL ROCHEDO ROWENTA SAMURAI SEB SUPOR TEFAL T-FAL WEAREVER
Business Review
for the three months ended 31 March 2008
QUARTELY FINANCIAL INFORMATION
24 April 2008
During the first quarter of 2008, the general economic environment remained highly
favourable in January and February, in line with 2007 trends, but began to tighten in a few
countries in March. Compared with the vigorous 9.2% increase in first-quarter 2007, organic
growth in consolidated revenue was very satisfactory, at 8.5%. This performance was led by
sustained strong consumer spending in almost every market, which drove increased sales
volumes and a high-quality revenue stream. It also reflected the continued strong appeal of
brands, the popularity of product innovations and successful partnership programmes, which
have now become a prominent feature of the small household equipment landscape.
Nevertheless, the two major challenges that have shaped the business environment for the
past two years remained in effect during the quarter:
� On the currency front, several of the Group’s leading functional currencies continued
to depreciate against the euro, sometimes at even a faster pace than in 2007. Based
on average rates for first-quarter 2008 and 2007, the US dollar lost 12% year-on-year
against the euro, the rouble 5%, the Korean won 15%, the Mexican peso 11% and the
British pound 11%. On the other hand, the Turkish lira and the yen remained more or
less stable and the Brazilian real gained another 4% during the period. In all, these
fluctuations reduced reported revenue by €18 million during the quarter, compared
with €19 million a year earlier. In addition to the negative impact when sales in several
of our major international markets are translated into euros, the currency situation is
also presenting a challenge for our competitiveness. For while the strong euro is
lowering the cost of purchasing raw materials and components, it is also having an
adverse effect on our export business, most of which is still based in Western Europe.
The currency environment therefore remains an area of concern in early 2008, as it
was in 2007.
� Prices of raw materials, especially metals, remain high, although the sustained upward
trend of recent years seems to be levelling off. Aluminium prices, for example, were
close to their historic highs, at an average $2,730 a tonne, but were relatively stable
compared with the average $2,800 a tonne paid in first-quarter 2007. Similarly, after
soaring to record highs in 2007, the price of nickel (used to make stainless steel)
stood at an average $28,860 a tonne in the first quarter, versus an average $41,450 a
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

year earlier. The sharp drop reflects a certain build-up in global nickel inventories as
the wider use of alternative steels with lower nickel content pushes down demand.
Prices nevertheless remain very high. On the other hand, prices of copper (used in
cookware and motors) are continuing to trend steeply upwards, to an average $7,760
a tonne in first-quarter 2008 versus $5,940 a year earlier. The rise, which is ongoing,
is being driven by low global inventories, strong demand and speculative trading. At
the same time, plastics and packaging prices are beginning to feel the impact of
higher oil prices. Because purchases of metals inputs are hedged 12 months in
advance, price fluctuations do not immediately feed through to purchasing costs; their
impact is spread over time. The impact is more immediate in the case of sourced
products, since suppliers quickly and directly pass on any increase in their raw
materials costs.
Consolidation of Supor
The successful completion of a partial public tender offer on 21 December 2007 enabled
Groupe SEB to raise its interest in Chinese company Supor to a controlling 52.74% from the
30% it had held since 31 August. Previously 30% accounted for by the equity method over
four months in 2007, Supor has been fully consolidated since 1 January 2008. The process
of integrating the company into our global operations is now well underway, led by two
operating committees:
� The Strategy Committee, comprising members of the Groupe SEB Executive
Committee and the leading members of Supor’s senior management team, is defining
and leading Supor’s strategic vision, while also identifying the priority objectives of the
integration process.
� The Integration Committee, comprising members of Supor’s senior management
team, is implementing the Strategy Committee’s decisions and carrying out the
integration process.
As part of this process, ten strategic projects have been defined. Of these, six have been
given priority and are being implemented in the short term:
� Develop Supor’s export sales.
� Drive its expansion in South East Asia.
� Mutually transfer products and technologies between Supor and Groupe SEB in two
areas, cookware and small electrical appliances (covered by two different projects).
� Adjust Supor’s outsourcing strategy.
� Implement the chosen production strategy.
At the same time, the process includes six integration projects, of which five have been
given priority:
� Improve plant productivity.
� Optimise purchasing.
� Integrate and align Finance, Human Resources and Information Systems processes
(covered by three separate projects).
Process alignment is already underway, while the exchange of best practices between the
Group and Supor teams has got off to a promising start.
Three-for-one stock split
On 12 February, the Board of Directors decided to ask shareholders at the Annual Meeting
on 13 May to approve a 3-for-1 stock split, which would reduce the share’s par value to €1.00
from €3.00. If approved at the Meeting, the split will be carried out next 16 June, at which
time the SEB share price will be divided by three.
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

For more than a year, the SEB share has been trading at more than €100, making it one of
the most expensive stocks in the SBF 120 index. The 3-for-1 split would enable the share to
trade in a price band that would be more attractive and affordable for retail investors, while
improving the liquidity of its market. The new shares will carry the same voting rights and
rights to the supplementary dividend as the old shares. The split will not have any impact for
shareholders, who will not have to do anything or pay any fees, nor will the value of their
holdings change.
Business Review
(in € millions) Q1 2007 Q1 2008
% change
Reported At constant
exchange
rates
France 124 141 + 13.0 + 13.0
Other EU countries 151 159 + 5.4 + 7.2
North America 89 89 + 0.6 + 12.1
South America 60 61 + 1.3 - 0.5
Central Europe, CIS
and other countries
138 153 + 11.6 + 13.5
Asia-Pacific 51 122 +137.0 +144.4
TOTAL 613 725 + 18.2 + 21.2
Rounded figures Percentages based on exact figures, before rounding
Revenue for the first three months of 2008 totalled €725 million, up 18.2% on a reported
basis and 21.2% at constant exchange rates. The very strong growth reflected a combination
of several factors:
� The €78 million three-month contribution from Supor, acquired in late 2007 and fully
consolidated since 1 January 2008.
� A negative €18 million currency effect, compared with a negative €19 million in firstquarter
2007. Although the Brazilian real further appreciated against the euro during
the period, the gain failed to offset the declines in several of the Group’s functional
currencies, including the US dollar (which continued to weaken), the rouble, the
Korean won and the British pound.
� Organic growth, excluding Supor, of 8.5%, reflecting sustained solid business levels
despite the high prior-year comparatives (9.2% in first-quarter 2007 and 8.6% over the
full year).
On a pro forma basis (including Supor in first-quarter 2007), growth would have stood at
7.7% as reported and 10.4% at constant exchange rates.
The robust like-for-like revenue growth was led by higher sales volumes and a further
improvement in the product mix, with the price effect having only a slightly positive impact. At
constant scope of consolidation, unit sales, while stable in cookware, rose sharply in small
electrical appliances, lifted by the sustained strong sales of the new products launched in
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

2007 (such as the Silence Force vacuum cleaner, Dolce Gusto and the Actifry fryer) and their
introduction in new geographic markets. This offset the weather-related underperformance of
fan sales in South America. At the same time, the product mix continued to move upmarket
as demand shifted to higher value-added items, such as steam generators rather than steam
irons, expresso machines rather than filter coffeemakers and the Actify oil-free fryer rather
than conventional deep-fryers.
In addition, almost all of the business lines reported higher sales for the period, with only food
preparation appliances showing a slight decline. While the home comfort business contracted
sharper over the period, dragged down by poor fan sales. All of the other businesses
reported growth varying from satisfactory to very strong. Geographically, sales trended
upwards in the majority of countries in the first quarter, except in South America, where the
year got off to a slow start, and the Middle East, where there were problems with distribution.
In particular, European markets continued to expand, with demand remaining firm except for
some isolated weakness in March.
The detailed breakdown of revenue by region has been updated somewhat since the
beginning of the year to highlight the Asia-Pacific region, where China is now making a larger
contribution to consolidated business. Revenue by region may therefore be analysed as
follows.
In France, the small electrical appliance market remained buoyant during the first quarter,
with substantial growth in volumes, a very slight consolidation in prices and an improvement
in the product mix as demand continued to move upmarket. This was favourable for
established brands, which further strengthened their positions, as well as for Groupe SEB,
which saw revenue gain 13% over the period. Although some of the growth came from
purchases postponed from December 2007, the Group also continued to gain market share
by leveraging its flagship products, such as 1) the Actifry oil-free fryer, which remains as
popular as ever; 2) the Silence Force vacuum cleaner, which is going from strength to
strength thanks to its exceptionally quiet operation; 3) the breadmakers, with a very strong
performance by the Baguette model; and 4) Dolce Gusto, which is making further headway.
At the same time, the quarter saw a sharp upturn in demand for more traditional products,
revitalised by innovative features and designs, as well as by marketing campaigns. Steam
cookers, irons and steam generators, for example, enjoyed a marked, and sometimes strong,
increase in sales. On the other hand, business was more mixed in cookware, with growth in
non-stick products offset by a decline in pressure cookers and bakeware. It was also more
challenging in informal meal appliances and personal care products, where the offering
needs to be revamped in response to intense competition.
In the rest of the 15-country European Union, revenue was up 7.2% at constant exchange
rates for the quarter, or by an organic 4.8% excluding Supor. Growth reflected a slightly more
contrasted situation than in 2007, both by country and by month, with business slowing
noticeably and sometimes declining in several markets in March. While firm overall,
performance varied by country. Momentum remained strong in Spain, where a number of lost
retail slots were regained and business was brisk in new products and partnerships (mainly
Nespresso and Dolce Gusto). Fast growth continued apace across all our local product
ranges in Greece and Switzerland, while growth remained satisfactory in Austria. In Italy, a
weaker economy and the non-recurrence of a first-quarter 2007 promotional campaign led to
a slight decline in revenue at constant scope of consolidation. After holding firm early in the
year, sales in Germany were hard hit when market conditions suddenly worsened in March,
with a steep drop in demand and more aggressive competition that dampened growth.
Revenue in Belgium, the Netherlands and Portugal was almost unchanged, as the tougher
market environment was offset by successful sales of such flagship products as Actifry,
Dolce Gusto and Silence Force, as well as the breadmakers, which made remarkable
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

progress. After a very difficult 2007, business in the United Kingdom rebounded significantly
(at constant exchange rates) in the first quarter. The upturn cannot be extrapolated over the
full-year, however, because it was due more to the impact of special cookware promotions
and the success of a few specific products (like Actify, Dolce Gusto and Quick Cup) than to
an improvement in the market, which remains highly competitive and price driven.
Sales in North America were up 12.1% at constant exchange rates, versus just 0.6% as
reported. The currency effect primarily reflected the weaker dollar, with the decline in the
peso against the euro having a much less material impact. Organic growth stood at 7.3% for
the period. As in 2007, the situation varied by country and brand. In the United States, where
operations were reorganised and segmented in January, consumer spending is lacklustre
and property market woes are weighing on purchases of kitchen equipment. Nevertheless,
sales enjoyed satisfactory growth at constant scope of consolidation and exchange rates,
supported by three core mid-range products: 1) T-fal cookware, whose sales recovered
sharply on the positive retailer response to the brand’s repositioning upmarket; 2) Rowenta
steam generators, which gave the brand a new growth momentum; and 3) Emeril’s small
electrical appliance range designed by T-fal steam cookers, fryers and other items which had
a good start to the year. Mirro WearEver sales contracted during the period. While WearEver
is gradually replacing T-Fal in the lower mid-range, Mirro has yet to rebuild its entry-level
positioning in an especially aggressive marketplace. In the premium segment, Krups’
revenue continued to contract over the period, but the US market introduction of the
BeerTender in March drove an upsurge in sales at quarter-end, which augurs well for the
months ahead. All-Clad got off to a slow start to the year compared with a fairly strong firstquarter
2007, despite a satisfactory March after the successful launch of new product lines.
Performance was also mixed in the rest of the region. Sales were down in Canada in a
challenging environment, even though the excellent results of our premium brands
(especially All-Clad and Krups) demonstrate that the market is open to the emergence of
upscale niches. Rowenta also saw an increase in local sales. In Mexico, market dynamics
are shifting towards a strong preference for coffeemakers, but we continued to enjoy strong
revenue growth, amplified in the first quarter by a special promotional campaign as part of a
loyalty programme.
In South America, revenue ended the first-quarter down 0.5% at constant exchange rates,
breaking with several years of solid, uninterrupted expansion. In fact, the nearly flat growth
was almost entirely attributable to operations in Brazil, where revenue declined 2.5% at
constant exchange rates (but was up 1.2% as reported) after unfavourable weather during
the quarter severely weighed on demand for fans. Excluding fan sales, Arno maintained
market share in all of its flagship products, such as coffeemakers, blenders, sandwich
makers and semi-automatic washing machines. Panex reported satisfactory growth despite
the more intense competitive environment, which is being reshaped by 1) the stronger real,
which makes it easier to import low-cost Asian products; 2) the growing influence of modern
mass retailers and the increased consolidation of traditional channels; 3) the arrival of new
market entrants; and 4) more aggressive marketing by competitors. At the same time, the
Group is continuing to expand in Venezuela, where consumer spending remains firm but
where the political and economic situation is becoming more tense, particularly with
Colombia. In the latter country, a sharp slowdown in demand, combined with the impact of
weather on fan sales, caused local revenue to decline during the quarter. In Argentina and
Chile, on the other hand, the broadening of our product offering in a more promising
environment helped to drive an increase in revenue for the period.
Central Europe, CIS and other countries (Turkey and other countries in the Middle East
and Africa) account for 21% of consolidated sales. In recent years, business has been
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

expanding very quickly in these regions, with revenue rising 20.5% at constant exchange
rates in 2007. This trend continued in first-quarter 2008, as follows:
� Consumer spending on household equipment remained as brisk as ever in Poland,
Slovakia, Czech Republic, Bulgaria and other Central European countries, where we
are strengthening our positions by further broadening the product range and
successfully introducing our flagship products. Dolce Gusto, for example, has been
launched in the Czech Republic and Slovakia, where its fast sales growth is very
encouraging for the product’s scheduled September launch in Poland. The sustained
development of large Western retail chains is providing an additional source of growth
in these booming markets.
� Although the weaker rouble has made imports more expensive, the Group enjoyed
robust growth in the CIS during the quarter, led by very strong demand across the
product line-up and the successful development of Actify, the breadmakers and
microwave ovens. In this very promising environment, we nevertheless limited our
sales to certain Russian customers whose tax situation was uncertain. At the same
time, we recorded unprecedented growth in Ukraine, where demand has reached
record highs.
� The first-quarter also saw a very strong performance in Turkey, in a fairly stable
currency environment and a market shaped by rising demand, aggressive competition
and a fast changing retail industry. Led by the success of the country’s 156 Tefal
shops, the growth concerned a large proportion of the product offering and confirmed
the recovery initiated in second-half 2007.
� In the Middle East, on the other hand, revenue was down sharply for the quarter
despite growing demand, due to temporary difficulties at our primary distributor in
Saudi Arabia and the impact of the Iran embargo.
The Asia-Pacific region (China, South East Asia, Japan, South Korea, Australia, etc.)
accounted for nearly 17% of consolidated revenue in first-quarter 2008, versus just 7% in
2007. Revenue in the region has now been broken out separately to highlight the growing
importance of our business in China following the acquisition of Supor. Based on the new
breakdown, revenue in the Asia-Pacific region had risen by around 7% in 2007. In firstquarter
2008, revenue surged more than 144% at constant exchange rates due to the firsttime
consolidation of Supor. Growth at constant scope of consolidation and exchange rates
was 10.7%, shaped by the following:
� Faster momentum in South Korea, as the effective revitalisation of the cookware
range offset the impact of a weaker won.
� Further advances in Australia and New Zealand, where we outperformed the markets
and strengthened our positions in cookware, steam generators and steam cookers.
� Firm sales in Japan, especially of pressure cookers, whose use was encouraged by a
major government energy savings campaign in the first quarter. The currency
environment remained unfavourable, however.
� Strong growth in Malaysia, where the Group is well positioned to respond to fast rising
demand.
In China, Supor, whose revenue was not consolidated in first-quarter 2007, reported a more
than 30% increase in consolidated revenue in first-quarter 2008, in line with the company’s
2007 performance. Growth was led by the development of the booming small appliance
business.
Financial Indicators
Operating margin
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842

Traditionally, sales are relatively slow in the first quarter, which accounts for an average 21-
22% of the annual total. Because certain expenses (notably corporate overheads) are
incurred year-round, this seasonal factor has a direct impact on quarterly operating margin.
As a result, the first three months are not representative of annual revenue and performance.
Operating margin amounted to €73.5 million in first-quarter 2008, a 73% increase from the
€42.6 million reported a year earlier. It included a €7.3 million contribution from Supor for the
period.
High raw materials prices continued to push up purchasing costs, adding €1 million to direct
raw materials procurement despite the attenuating impact of our hedging strategy. The
improvement in operating margin primarily came from the organic growth in sales and
particularly from the effective management of the product mix. The price effect was still
positive, but to a much lesser extent than in previous quarters due to increased competition
in certain European countries. Other factors were the positive €7 million currency effect,
which was almost entirely due to the weaker dollar, and our disciplined cost management.
Variable costs are under control and fixed costs have stabilised, helping to drive a clear
improvement in margins during the quarter. This performance has given the Group the
resources it needs to continue supporting its future growth, in particular by further increasing
its advertising expenditure in the second quarter, ahead of Mother’s Day.
Financial position
Debt stood at €489 million at 31 March 2008, a €138 million increase from a year earlier. The
increase was due to the debt taken on to finance the Supor acquisition, all of which was
incurred in second-half 2007. It was attenuated, however, by the continued paydown of debt,
by €97 million in the first quarter, in line with the positive trend recorded at year-end 2007.
The paydown reflected the sustained improvement in working capital management,
especially in the area of inventories.
Based on equity of €960 million at 31 March, gearing stood at 51% for the period. This was
representative of the fact that debt for the year is generally lowest at the end of March. The
Group’s financial situation therefore remains very healthy.
Events since 31 March 2007
On 28 April 2008, the new Supor plant was inaugurated in Vietnam.
Outlook
In an environment that showed some signs of worsening at quarter’s end, Groupe SEB
remains confident in its ability to capitalise on its strategic advantages to drive organic growth
in 2008 and to further improve margins. In this way, and by continuing to invest in research
and development, as well as in marketing and advertising to promote our innovations, we will
securely build our future, now and in the years to come.
GROUPE SEB �
DIRECTION DE LA COMMUNICATION FINANCIERE
Chemin du Petit Bois I BP 172 - 69134 ECULLY Cedex France I T.+33 (0)4 72 18 16 40 • Fax +33 (0)4 72 18 15 99
Société par Actions Simplifiée au capital de 806 400 € I 016 950 842 R.C.S Lyon I T.V.A FR 94016950842