Annual Report Sustainable Development Report ... - Groupe SEB

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South America, a new eldorado Argentina, Brazil, Chile, Colombia, Peru, Venezuela • 3 factories (2 in Brazil, 1 in Colombia) • 9 marketing companies. The 2005 trading year once again demonstrated the enormous potential of South American markets in the small domestic equipment sector. The Group has been operating for several years in these markets and is steadily reinforcing its positions with a structured offer adapted to local needs. It sells in these markets under three of its international brands, Tefal, Moulinex and Rowenta, and under three well-known regional brands, Arno and Panex in Brazil, and Samurai in Colombia and the Andean Pact countries. Brazil remains the Group's biggest market on this continent (accounting for over 75% of its South American sales) and local economic conditions in the country have been favourable in the last three years. However, business in 2005 was affected by the revaluation of the Brazilian real, as this opens the way to imports from Asia – despite customs duty – and hinders exports. In this more difficult context, Arno Arno – Brazil The Brazilian factory makes mainly mixers, blenders, fans, irons and semi-automatic washing machines. Brazilian advertising campaign. |16 launched a dynamic new product drive backed by marketing operations and powerful advertising campaigns. Arno confirmed its leadership of the small domestic equipment market in Brazil, where its total market share is estimated at 30%. The year was also marked by the acquisition of Panex, Brazil's leader in cookware. The integration of Panex is well under way and the Group plans to quickly exploit synergies with Arno to achieve new commercial momentum in this market. Argentina, Colombia and Venezuela proved by their performance that they constitute a new springboard for the Group, which continues to reinforce its positions and increase its sales. In Chile, a market which is wide open to Asian imports, and where distribution is highly concentrated, Group sales are hamstrung by a difficult competitive context. However, future prospects in this market are not discouraging. Colombia Food-preparation equipment factory in Colombia. Brazil
International expansion Other world territories, vast markets Australia and New Zealand, the CIS countries, Central Europe, Turkey, the Middle East, Japan, China, South Korea, Taiwan, Thailand • 3 factories (1 in Iran, 1 in the CIS countries, 1 in China) • 23 marketing companies. A very mixed geographic zone which covers both distant developed countries and emerging markets, the Group's 'Other world territories' now account for over a quarter of total consolidated sales, against less than 20% three years ago. Apart from their current sales performance, these countries are a rich source of medium-term and long-term growth potential. For this reason, the Group is deploying a strategy of rapid expansion in these markets, based on the power of its world brands, on a product offer matched to local needs, on dedicated sales teams with local links, and on the use of a variety of retail channels. The Group intends to take full advantage of the development of these promising territories – often first-timebuyer or first product-renewal markets – and thus go on putting down local roots around the world. |17 Dynamic contributions to the Group's sales growth in 2005 came from Asia (Japan, Korea, Hong Kong and Australia), the CIS countries and Central Europe – with special mention for Poland and the Czech Republic. Domestic trading (in local currencies) remained buoyant in Turkey, while sales really took off in China, even though they were far short of the targets for this enormous market. Japan, the strong link in 2005 With sales of €75 million, Japan is today one of the ten biggest contributors to Groupe SEB revenues. Our operations in this country are focused on four major product families: – T-Fal nonstick cookware, in which Japan is the world's second-largest market in value; – pressure cookers, where the Group's traditionally solid positions have gained strength in the last two years following the bankruptcy of a main rival in this market, in value; – steam irons, with more advances in 2005 and market-share gains; – electric kettles, where the Group created a new market which literally exploded in 2005 with a virtual quadrupling of sales. Kay LIN, SSEAC Commercial Manager The awakening of China Growing at a rate of between 14 and 17% a year, the small domestic equipment market in China is in boom. In the major cities, rising living standards are accompanied by an increasing level of domestic equipment (hi-fi, home electrical appliances, etc.), as people seek a “Western” lifestyle. This market has very high potential for us. Our priority is to consolidate an efficient distribution network by, for example, penetrating new channels such as hypermarket chains and specialist stores, while we continue to expand our operations in China's major cities. With this in mind, we restructured and strengthened our sales force in 2005. This helped us to build up our relations with regional wholesalers and focus on mass-retailer accounts and key electrical-goods specialists, while reinforcing our longstanding links with department stores. This reorganization saw its first fruits in 2005, and sales growth is expected to continue in 2006. China Groupe SEB factory in Shanghai.
Page 1 and 2: Annual Report Sustainable Developme
Page 3 and 4: €2,463million Sales +7.6% Net inc
Page 5 and 6: With consumer behaviour changing in
Page 7 and 8: Financial information Group consoli
Page 9 and 10: On the other hand, a €10 million
Page 11 and 12: 110 105 100 95 90 85 80 75 70 65 60
Page 13 and 14: Real powers of control Groupe SEB h
Page 15 and 16: A Group well equipped to win Lookin
Page 17: By contrast, growth was confirmed i
Page 21 and 22: Marketing strategy Brands and innov
Page 23 and 24: Marketing strategy Moulinex • Eas
Page 25 and 26: Being competitive Adapting, to face
Page 27 and 28: Being competitive Efficient flow ma
Page 29 and 30: Sustainable Development Aware of th
Page 31 and 32: Corporate responsibility & Change E
Page 33 and 34: Client and Supplier relations Commo
Page 35 and 36: Environment Our planet Caring & Gro
Page 37 and 38: CLIENTS/SUPPLIERS Priorities Involv
Page 39 and 40: GROUP EXECUTIVE COMMITTEE Thierry d

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