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c o r p o r a t e a n d s u s t a i n a b l e d e v e l o p m e n t r e p o r t<br />
2 0 0 7
G R O U P P R O F I L E<br />
A GROUP FOUNDED 150 YEARS AGO WHICH GREW TO BE WORLD MARKET LEADER IN<br />
SMALL HOUSEHOLD APPLIANCES WITH:<br />
• Operations in more than 120 countries and a new opening into <strong>the</strong> Chinese market.<br />
• A rich product offer targeted by segment and driven by powerful brands.<br />
• An exceptional innovation dynamic that creates differentiation and growth.<br />
• A vast sales network adapted to <strong>the</strong> economic realities of each market.<br />
WORLD RANKING<br />
N°1 in cookware, pressure cookers, irons and steam systems, electric kettles, steam cookers,<br />
food-preparation equipment, toasters, electric fryers and informal meal appliances.<br />
N°2 in table-top ovens, electric barbecues and grills, waffle makers and sandwich makers.<br />
N°3 in filter and espresso coffee makers.<br />
SOCIAL COMMITMENT<br />
• Signatory of <strong>the</strong> UN Global Compact* since <strong>the</strong> end of 2003.<br />
• Signatory of <strong>the</strong> CECED* Code of Conduct since August 2005.<br />
• Signatory of <strong>the</strong> Diversity Charter* since October 2005.<br />
• Creation of <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> Corporate Foundation in 2007.<br />
SALES €2,870 million +8.2%<br />
OPERATING MARGIN €301 million +14.7%<br />
NET INCOME €143 million +64.2%<br />
FINANCIAL DEBT €658 million<br />
CAPITAL EXPENDITURE €92 million<br />
EMPLOYEES 13,048 worldwide<br />
at 31/12/07<br />
* see Glossary<br />
80% of equity<br />
Figures excluding Supor
A unique set of brands<br />
professional<br />
au<strong>the</strong>ntic<br />
intelligent<br />
refined<br />
italian<br />
elegant<br />
ingenious<br />
generous
precise<br />
perfectionist<br />
simple<br />
quick<br />
Group core business areas<br />
COOKWARE Frying pans, saucepans, casseroles,<br />
bakeware, oven dishes, pressure cookers...<br />
ELECTRIC COOKING Deep fryers, table-top ovens,<br />
barbecues, informal meal appliances, breadmakers,<br />
toasters, steam cookers...<br />
FOOD AND BEVERAGE PREPARATION Food processors,<br />
blenders, small food-preparation equipment, filter and<br />
espresso coffee makers, electric kettles...<br />
PERSONAL CARE Haircare equipment, depilators,<br />
bathroom scales, babycare products...<br />
LINEN CARE Steam irons and steam systems, semi-<br />
automatic washing machines...<br />
HOME CARE Vacuum cleaners, fans, portable heaters and<br />
air-conditioners...<br />
AIRBAKE<br />
ALL-CLAD<br />
ARNO<br />
CALOR<br />
CLOCK<br />
KRUPS<br />
LAGOSTINA<br />
MIRRO<br />
MOULINEX<br />
PANEX<br />
PENEDO<br />
REGAL<br />
ROCHEDO<br />
ROWENTA<br />
<strong>SEB</strong><br />
SUPOR<br />
SAMURAI<br />
TEFAL<br />
T-FAL<br />
WEAREVER
ENTERPRISE<br />
INNOVATION<br />
TEAM SPIRIT<br />
PROFESSIONALISM<br />
1
150 years of better living<br />
and shared values<br />
150 years: for <strong>Groupe</strong> <strong>SEB</strong>, a chronicle of founding values<br />
that are still very much alive today and will live on into <strong>the</strong> future:<br />
• enterprise<br />
• innovation<br />
• team spirit<br />
• professionalism<br />
distinctive hallmarks of our corporate culture.<br />
These values, bridging <strong>the</strong> past and <strong>the</strong> future, inspired <strong>the</strong> great moments in <strong>the</strong> Group’s<br />
history and still shape its destiny today. Our new logo reflects this continuity and embodies<br />
<strong>the</strong> dynamism and modernity of <strong>Groupe</strong> <strong>SEB</strong>.
A corporate mission<br />
This milestone anniversary and <strong>the</strong><br />
launch of our new logo are a good<br />
time to reassert <strong>the</strong> Group’s strong<br />
corporate identity and its mission to<br />
make everyday life easier and more<br />
agreeable for people all around <strong>the</strong><br />
world:<br />
• by creating products and services<br />
that contribute to better living<br />
• by anticipating <strong>the</strong> hopes and<br />
desires of consumers.<br />
That is what motivates all <strong>the</strong><br />
Group’s efforts which are firmly<br />
focused on <strong>the</strong> long term.
Enterprising drive<br />
Constantly forging ahead, growing and penetrating new contin-<br />
ents: that’s what enterprising drive means for <strong>Groupe</strong> <strong>SEB</strong>.<br />
Be it by conquering territories, forming fruitful alliances or<br />
acquiring o<strong>the</strong>r companies, <strong>the</strong> Group has built itself with<br />
method and daring enterprise over <strong>the</strong> years. In <strong>the</strong> last four<br />
decades of its history it carried off ten successful takeovers that<br />
gained it new product domains and leading brands. Its global<br />
expansion has seen it grow from strength to strength in interna-<br />
tional markets and increase its proximity to consumers at local<br />
level. With this balanced blend of ambition, foresight, resolve<br />
and tenacity, <strong>the</strong> Group has become a global benchmark in<br />
Small Household Appliances.
150 years...<br />
The early 80’s saw <strong>the</strong> Group<br />
make its first market overtures<br />
in Japan. It set up a local<br />
joint-venture company of which<br />
it quickly took full control.<br />
Its business at that time was<br />
based on two fast-growth<br />
product families: pressure<br />
cookers and nonstick cookware.<br />
Ano<strong>the</strong>r rendezvous with history in 2001: <strong>the</strong> Group’s partial<br />
takeover of long-time rival, Moulinex. This offered ready<br />
potential for upscaling and reinforced positions in food<br />
preparation. The Group carried off <strong>the</strong> deal.<br />
In 2007-2008, a new adventure unfolded for <strong>Groupe</strong> <strong>SEB</strong> –<br />
this time in China – presenting a huge challenge and a<br />
far-reaching strategic opportunity. The prize: our acquisition<br />
of Supor, a front-rank operator in our industry which today<br />
gives us access to China’s vast and rapidly expanding market.
Innovation culture<br />
Innovation is a distinctive trait of <strong>Groupe</strong> <strong>SEB</strong>. It presided at its birth and remains<br />
deeply ingrained in its corporate culture. Its vocation is to improve <strong>the</strong> quality of daily life<br />
for consumers around <strong>the</strong> world. Synonymous with modernity, attractive design and<br />
convenience, innovation boosts efficiency, keeps abreast of changing attitudes and sets<br />
<strong>the</strong> pace with new concepts. Inventiveness is also put to work in <strong>the</strong> Group’s production<br />
processes to build up our technical expertise and make our industrial base more<br />
competitive. Our creation of added value and our command of <strong>the</strong> latest technologies<br />
toge<strong>the</strong>r form a powerful source of growth. This ability to be always a step ahead of its<br />
rivals is what makes and will continue to make all <strong>the</strong> difference for <strong>Groupe</strong> <strong>SEB</strong>.<br />
6
150 years...<br />
In <strong>the</strong> 1950’s, Seb revolutionized <strong>the</strong> kitchen by inventing <strong>the</strong> legendary ‘cocotte<br />
minute’ – <strong>the</strong> first no-weld stamped aluminium pressure cooker with a security<br />
lid. What is more, it was 40% cheaper than rival products and much safer.<br />
The Group can in fact boast hundreds of innovations.<br />
Here are some of <strong>the</strong> most outstanding:<br />
1917 The Calor electric iron.<br />
1956 The first Tefal nonstick frying pan.<br />
1961 The Moulinex Marie food processor and <strong>the</strong> Krups “Kaffee Automat”.<br />
1967 The first Seb odourless fryer.<br />
1978 The Tefal raclette grill.<br />
1985 Tefal bathroom scales with patented “Sensitive Computer” technology.<br />
1994 The Rowenta compact Dymbo vacuum cleaner.<br />
2004 The quick-fill Calor/Tefal Aquaspeed steam iron.<br />
Today more than ever, <strong>the</strong> Group can lay<br />
claim to <strong>the</strong> title of pioneer with its truly<br />
advanced technologies: <strong>the</strong> Actifry, with its<br />
convection and stirring system can make<br />
tasty French fries with just a spoonful of oil;<br />
<strong>the</strong> Silence Force with its acoustic<br />
insulation box is six-times quieter than any<br />
o<strong>the</strong>r vacuum cleaner, and just as powerful.<br />
7
Team spirit<br />
150 years...<br />
To associate its employees with <strong>the</strong><br />
company’s trading results, Seb<br />
signed profit-sharing agreements<br />
as far back as 1968, making it<br />
a pioneer in labour relations<br />
practices in France.<br />
<strong>Groupe</strong> <strong>SEB</strong>, being<br />
a family-based com-<br />
pany, has forged a corporate culture that gives pride<br />
of place to respect for <strong>the</strong> individual, sharing and social<br />
cohesion – values that guide our management practices.<br />
The integration of new companies, <strong>the</strong> multi-cultural<br />
nature of global expansion, and <strong>the</strong> use of Group-wide<br />
projects and multidisciplinary teams have engendered<br />
an organization that fosters transparency and unity in <strong>the</strong><br />
service of common goals.
The acquisition of Arno in 1998 generated substantial<br />
synergy on an international scale.<br />
This led <strong>the</strong> Group to launch an entry-level iron for<br />
<strong>the</strong> world market with simultaneous start-up of<br />
production at three of <strong>the</strong> Group’s factories –<br />
in France, Mexico and Brazil – and with pooled<br />
sourcing of raw materials and components.<br />
For <strong>Groupe</strong> <strong>SEB</strong>, encouraging pluralism and harnessing <strong>the</strong><br />
strengths that derive from diversity are a springboard for<br />
progress. The Group signed <strong>the</strong> Diversity Charter in 2005.
Professionalism<br />
<strong>Groupe</strong> <strong>SEB</strong>’s rich fund of knowhow has been built around major advances in<br />
technology, full command of its production processes and a consistent industrial<br />
strategy. But this knowhow has been turned into success by <strong>the</strong> individual and collective<br />
talents of our employees.<br />
The Group is as pragmatic in its deployment of core skills and key technologies – assets<br />
that guarantee its future – as it is determined in its constant quest for excellence.<br />
To achieve its goals it relies on <strong>the</strong> personal commitment and collective efficiency of its<br />
staff, while exploiting synergy potential, paying close attention to local feed-back and<br />
rewarding results.<br />
150 years...<br />
When Seb acquired Tefal it<br />
knew that constant selfappraisal<br />
is a key to progress.<br />
So, it reviewed its<br />
client relations and decided<br />
to adopt <strong>the</strong> Tefal strategy of<br />
focusing on targeted markets<br />
and working through exclusive<br />
retailers.
Improving quality means taking notice of feed-back, openly<br />
discussing problems and finding effective solutions.<br />
Aiming for excellence by training professionals and developing<br />
skills. The <strong>Groupe</strong> <strong>SEB</strong> Academy has provided training for 8,000<br />
employees in <strong>the</strong> last five years.
2007, a new logo<br />
Our new logo’s graphic design traces a path between <strong>Groupe</strong> <strong>SEB</strong> and <strong>the</strong> red silhouette<br />
of a house. This evokes <strong>the</strong> perennial nature of our corporate mission and our<br />
long-standing dedication to <strong>the</strong> home.<br />
It symbolically projects <strong>the</strong> Group’s uniqueness and differentiation<br />
and embodies its corporate values:<br />
• The vertical band adds distinction to <strong>the</strong> simplicity of <strong>the</strong> ‘S’ form,<br />
giving it thrust, continuity and orientation to <strong>the</strong> future.<br />
• The house – <strong>the</strong> home – is a symbol of proximity, its arrow-head shape indicating<br />
growth and development.<br />
• The human and corporate aspects are evoked by <strong>the</strong> use of warm energetic red<br />
combined with sober and reliable grey.<br />
150 years...<br />
12<br />
The Group has grown and changed considerably since<br />
it used <strong>the</strong> original <strong>SEB</strong> crest of la Société<br />
d'Emboutissage de Bourgogne. Its last banner,<br />
created in 1975, was a perfect illustration of its<br />
determination to expand internationally. On <strong>the</strong><br />
occasion of <strong>the</strong> Group’s 150 th anniversary, we wanted<br />
to project its new dimension, energy and potential.<br />
This new, modern and dynamic logo clearly reflects <strong>the</strong><br />
Group’s firm orientation to <strong>the</strong> future.
INTERVIEW WITH THE CHAIRMAN<br />
GROUP NEWS<br />
FACTS AND FIGURES<br />
GROUPE <strong>SEB</strong> commitment...<br />
Shareholders: a maximum spread of information 15<br />
Commitments: a Foundation to promote social integration 20<br />
Brands for everyone: “Being first in quality too” 34<br />
Better service for <strong>the</strong> consumer 35 Eco-design: planning <strong>the</strong> full product lifecycle 36<br />
Distributors: streng<strong>the</strong>ned partnerships 38 “Recycling and recovery system takes off” 39<br />
Better living all around <strong>the</strong> world: Promoting social integration 42<br />
“Young people learning to live again” 43 Burundi project backed by 7,000 <strong>SEB</strong><br />
employees 44 Brazil: social integration via training 45 Colombia: handicapped youths<br />
walk again 45 A corporate citizen seeking solutions with o<strong>the</strong>rs 46<br />
Constant progress: Eco-production: factories respecting <strong>the</strong> environment 51<br />
“<strong>Groupe</strong> <strong>SEB</strong> did not let us down” 52<br />
Suppliers: clear rules for compliance 54 “We cross-check a whole range of factors” 56<br />
Reducing <strong>the</strong> ecological impact of freight transport 57<br />
Caring for individuals: Proud to work for <strong>Groupe</strong> <strong>SEB</strong> 59<br />
“I chose to continue working” 60 “High standards in safety” 61 “Listening carefully” 63<br />
1<br />
FINANCIAL RESULTS 2007<br />
STOCKMARKET OVERVIEW<br />
BEING ATTENTIVE TO SHAREHOLDERS<br />
SOCIAL PERFORMANCE REVIEW<br />
ENVIRONMENT REVIEW<br />
INNOVATING TODAY FOR A BETTER LIFE TOMORROW<br />
MANAGEMENT BODIES, CORPORATE GOVERNANCE<br />
GROUPE <strong>SEB</strong> STRATEGY<br />
INDUSTRY TRENDS<br />
IMAGINING THE FUTURE<br />
BRANDS FOR EVERYONE<br />
BETTER LIVING ALL AROUND THE WORLD<br />
LIVING THE FUTURE<br />
CONSTANT PROGRESS<br />
CARING FOR INDIVIDUALS<br />
C O N T E N T S<br />
02<br />
06<br />
08<br />
08<br />
12<br />
14<br />
16<br />
18<br />
20<br />
22<br />
26<br />
28<br />
30<br />
32<br />
40<br />
48<br />
50<br />
58
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Interview with <strong>the</strong> Chairman<br />
Thierry de La Tour d’Artaise<br />
HOW DID GROUPE <strong>SEB</strong><br />
DO IN 2007?<br />
“Supor...an exciting<br />
new venture and<br />
a huge opportunity.”<br />
A decidedly good year for <strong>Groupe</strong> <strong>SEB</strong>, 2007 was marked<br />
by excellent trading, completion of our industrial reorganization<br />
in France and our strategic acquisition of a<br />
controlling stake in Supor in China. We thus met and even<br />
exceeded <strong>the</strong> objectives we had set out to achieve.<br />
In terms of trading performance, <strong>the</strong> Group saw 8.6%<br />
organic growth in sales across all product families and in<br />
almost all markets. This reflects revived demand in<br />
Western Europe and our continued rapid advance in<br />
emerging countries, while it vindicates <strong>the</strong> Group’s<br />
economic model based on innovation and enhancing <strong>the</strong><br />
product mix.<br />
Robust growth was <strong>the</strong> main spur behind a rise of almost<br />
15% in our operating margin, to €301 million. Operating<br />
profit (less burdened than in 2006 by provisions for<br />
restructuring) grew 55%, while net income climbed 64%<br />
2
HOW DID YOU TACKLE FRENCH INDUSTRIAL<br />
RESTRUCTURING?<br />
YOU ARE NOW THE MAJORITY SHAREHOLDER<br />
OF SUPOR IN CHINA.<br />
NO DOUBT, YOU ARE PLEASED...<br />
RESTRUCTURING, INVESTMENT IN CHINA,<br />
MAKING THE GROUP MORE COMPETITIVE...<br />
ARE THESE AIMS CONSISTENT WITH<br />
SUSTAINABLE DEVELOPMENT?<br />
INTERVIEW WITH THE CHAIRMAN<br />
to €143 million. Our financial structure – after acquisition<br />
of a 52.74% stake in Supor – remains solid, with a gearing<br />
ratio of 76% which allows <strong>the</strong> Group a comfortable margin<br />
of financial manoeuvre.<br />
The industrial restructuring plan launched in France in<br />
2006 is now completed, and I am glad to say that <strong>the</strong><br />
Group carried it through entirely in line with our ethical<br />
values and commitments. Every employee was offered<br />
an individual solution and we managed to ensure <strong>the</strong><br />
reindustrialization of <strong>the</strong> affected sites. Today, our French<br />
manufacturing base is built around centres of expertise<br />
with a strong orientation to production for export. Their<br />
continual optimization is a guarantee of our long-term<br />
competitive capacity and future growth.<br />
Yes, very pleased indeed. To ensure our long-term development,<br />
we seek to grow where growth potential is strongest<br />
– particularly in emerging countries. We are already<br />
well established in <strong>the</strong> markets of Central Europe, Russia,<br />
Turkey and Brazil, for example, but <strong>the</strong> Group’s presence<br />
is still limited in China. Our gaining control of Supor is an<br />
exciting new venture and a huge opportunity. It opens up<br />
vast horizons and will help us to break new ground both<br />
geographically and in terms of technology. With Supor –<br />
China’s market leader in cookware and number 2 in small<br />
electric cooking appliances – <strong>Groupe</strong> <strong>SEB</strong> is today paving<br />
<strong>the</strong> way for its expansion in China and throughout<br />
Sou<strong>the</strong>ast Asia.<br />
Underlying <strong>the</strong> principle of sustainable development is <strong>the</strong><br />
sustainability of <strong>the</strong> company. Without successful<br />
performance, <strong>the</strong>re can be no sustainable development.<br />
My responsibility as head of <strong>the</strong> company is to make sure<br />
that <strong>the</strong> Group is sufficiently competitive to guarantee its<br />
future, while respecting an overall balance of interests.<br />
In this regard, <strong>the</strong> immediate demands of growth and<br />
profitability are closely interwoven with a responsible<br />
3
GROUPE <strong>SEB</strong> MARKED ITS 150 TH YEAR IN 2007.<br />
WHAT ARE THE SECRETS OF THIS LONGEVITY?<br />
YOU HAVE ADOPTED A NEW LOGO.<br />
WHAT DOES THIS MEAN FOR THE GROUP?<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
long-term approach to all <strong>the</strong> stakeholders in our<br />
enterprise. In social terms, <strong>the</strong> solutions we sought for<br />
our employees and <strong>the</strong> local job market during our industrial<br />
restructuring in France testify to our pro-active<br />
stance in this area. In terms of corporate citizenship, <strong>the</strong><br />
creation of <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> Corporate Foundation in<br />
March 2007 to promote social integration will help us to<br />
better coordinate our sponsorship of community projects.<br />
Finally, to safeguard <strong>the</strong> environment we incorporate ecodesign<br />
criteria in our product development and continue<br />
to extend ISO 14001 certification of our factories.<br />
Since its foundation, <strong>the</strong> Société d’Emboutissage de<br />
Bourgogne, which became <strong>Groupe</strong> <strong>SEB</strong> in 1973, has been<br />
a pioneering innovator. Today, we carry on <strong>the</strong> tradition of<br />
intellectual curiosity, agility of mind and creativity that<br />
marked our beginnings. The Group’s history is built on<br />
inventive spirit and proximity, and our ambition has<br />
always been and still is to make constant progress. By<br />
combining a resolute product dynamic with new concepts,<br />
practical improvements and a multitude of little extras to<br />
make life easier and more agreeable, <strong>Groupe</strong> <strong>SEB</strong> has<br />
become a major catalyst of modernity. Thanks to a stable<br />
family shareholder base, we have pursued a long-term<br />
strategy, firmly holding course through <strong>the</strong> ups and<br />
downs of an ever-changing business climate.<br />
Longevity does not mean we have not changed. Thirty-two<br />
years after creating our last logo as a standard – bearer<br />
for our international expansion, a fresh boost has been<br />
given to <strong>the</strong> Group’s identity today. Our new logo reflects<br />
our perennial commitment to modernity and leadership –<br />
qualities clearly perceived by <strong>the</strong> public, according to<br />
market studies. With this new banner, one can see that<br />
<strong>the</strong> Group is resolutely focused on <strong>the</strong> future.<br />
4
WHAT IS THE OUTLOOK<br />
FOR GROUPE <strong>SEB</strong> IN 2008?<br />
INTERVIEW WITH THE CHAIRMAN<br />
Last year was a remarkable year. Despite uncertainties<br />
surrounding raw materials prices and exchange rates,<br />
and fears of a slowdown in consumer demand, I am confident<br />
in our ability to generate organic growth in 2008<br />
through our presence in emerging markets, and by geographically<br />
extending <strong>the</strong> success of last year’s top performing<br />
products with strong marketing and advertising<br />
support. Beyond actual sales figures, we are also aiming<br />
in 2008 for a fur<strong>the</strong>r improvement in <strong>the</strong> operating margin<br />
and continued lowering of debt for constant structure.<br />
With <strong>the</strong>se goals and <strong>the</strong> task of integrating Supor, 2008<br />
promises to be a busy year.<br />
5
Destination China<br />
World’s 3rd economic power.<br />
1.3 billion Chinese.<br />
A 41% urban population.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
On 21 December 2007, <strong>Groupe</strong> <strong>SEB</strong> announced <strong>the</strong> success<br />
of its partial public offer launched a month earlier for<br />
a controlling stake in Supor, China’s domestic market leader<br />
in cookware and number 2 in small electric cooking<br />
appliances. With a 52.74% majority share in <strong>the</strong> capital of this<br />
front-rank company, <strong>Groupe</strong> <strong>SEB</strong> is now well equipped to<br />
exploit <strong>the</strong> enormous business potential of this vast market.<br />
This key strategic step will alter <strong>the</strong> pro<strong>file</strong> of <strong>Groupe</strong> <strong>SEB</strong> in<br />
2008.<br />
SUPOR, A MAJOR ALLY<br />
Founded in 1989 by <strong>the</strong> Su family, Supor has become a benchmark<br />
standard in cookware and small electric cooking appliances in <strong>the</strong><br />
Chinese market, with strong positions in rice cookers – a highly<br />
symbolic product in that country – as well as in electric pressure<br />
cookers and induction cooking hobs. With a competitive and adaptable<br />
industrial base comprising four modern factories, Supor<br />
employs 6,600 people, of which 80% in production. Moreover,<br />
<strong>the</strong> start-up of a new plant in Vietnam in mid-2008 will give it an<br />
essential tool to penetrate <strong>the</strong> markets of Sou<strong>the</strong>ast Asia which<br />
cover a population of more than 600 million. Supor also began<br />
taking steps in recent years to obtain certification in quality,<br />
environment and labour rights.<br />
6
Supor - Hangzhou production site<br />
Supor – Rice cooker<br />
GROUP NEWS<br />
In terms of marketing, Supor enjoys a strong brand image which<br />
has won “China’s Famous Brand” award three times since 2002.<br />
The company’s extensive coverage of Chinese territory is assured<br />
by a vast distribution network of 300 agent-wholesalers and 20,000<br />
retail outlets throughout 30 provinces. In 2007, its sales amounted<br />
to €280 million, up 38% on <strong>the</strong> previous year.<br />
EXCELLENT PROSPECTS<br />
The acquisition of Supor is a unique opportunity for both parties.<br />
It gives <strong>Groupe</strong> <strong>SEB</strong> access to <strong>the</strong> Chinese market with a<br />
well-established leading brand which will help it to expand its limited<br />
current offer in this vast country. It brings <strong>Groupe</strong> <strong>SEB</strong> new<br />
technologies and specialist products such as rice cookers, electric<br />
pressure cookers and induction hobs, which will also add to its<br />
knowhow.<br />
For Supor, its integration into <strong>Groupe</strong> <strong>SEB</strong> gives it major scope for<br />
fresh growth. The Group’s international network will open new<br />
doors for it in <strong>the</strong> emerging markets of Sou<strong>the</strong>ast Asia and in <strong>the</strong><br />
entry-level segments of mature markets. Meanwhile, technology<br />
transfers and higher production volumes to supply <strong>the</strong> Group’s<br />
needs should accelerate Supor’s growth and make it more<br />
competitive.<br />
XIANZE SU, MANAGING DIRECTOR OF SUPOR<br />
“We backed <strong>Groupe</strong> <strong>SEB</strong>’s partial public share offer and we are happy with <strong>the</strong><br />
outcome as it gives Supor an excellent opportunity for strategic cooperation<br />
and strong backing for its business development in China and Sou<strong>the</strong>ast Asia.<br />
An integration committee has set to work mobilizing staff teams around action plans<br />
to pool efforts and share best practices in a spirit of fruitful cooperation. This process,<br />
which involves mixed teams of <strong>Groupe</strong> <strong>SEB</strong> and Supor managers working to a concrete<br />
agenda, is vital to our successful integration. We appreciate this interlocking multicultural approach because it is<br />
constructive, efficient and enriching for all concerned. Our entry into <strong>Groupe</strong> <strong>SEB</strong> is also a big opportunity for<br />
Supor employees, as it opens up new career prospects in a major international group.”<br />
7
Financial results 2007<br />
INCREASE IN SALES<br />
€ millions<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
8<br />
SALES BREAKDOWN BY ZONE<br />
in %<br />
France<br />
O<strong>the</strong>r EU countries*<br />
North America<br />
639 729 836<br />
South America<br />
2005 2006 2007 Central Europe, <strong>the</strong> CIS countries,<br />
Asia and o<strong>the</strong>r territories<br />
Strong growth in 2007 sales: 8.2%<br />
• revived business in European markets;<br />
* Former 15-member bloc<br />
• contrasted trading in North America, and steady sales in South America;<br />
• confirmed dynamism of Central Europe, <strong>the</strong> CIS countries and Asia (+16.7% for constant parity and structure).<br />
TRADING RESULTS/SALES (%)<br />
Operating margin<br />
sharply up by 14.7%,<br />
thanks to increased<br />
sales volume,<br />
higher sale prices<br />
and upgraded ranges.<br />
Operating profit climbed<br />
by 55.2% and net<br />
income by 64.1%.<br />
Net income<br />
Operating profit<br />
Operating margin<br />
2,463<br />
591<br />
677<br />
352<br />
204<br />
4.1<br />
7.4<br />
10.6<br />
2,652<br />
595<br />
692<br />
390<br />
246<br />
3.3<br />
5.8<br />
9.9<br />
2,870<br />
640<br />
718<br />
402<br />
274<br />
5.0<br />
8.3<br />
10.5<br />
RETURN ON EQUITY<br />
A strong balance<br />
sheet with<br />
shareholders’ equity<br />
up by €46 million.<br />
Record high return<br />
on equity.<br />
Shareholders’ equity at<br />
31/12 (€ millions)<br />
Net income (n)<br />
/shareholders’ equity<br />
(n-1) as %<br />
2005 2006 2007<br />
2005 2006 2007<br />
29%<br />
10%<br />
801<br />
14.8<br />
14%<br />
816<br />
10.9<br />
22%<br />
25%<br />
862<br />
17.5
CASH FLOW AND CAPITAL<br />
EXPENDITURE<br />
€ millions<br />
Increased cash<br />
flow and capital<br />
expenditure<br />
focused mainly on<br />
new products.<br />
Capital<br />
expenditure<br />
Cash flow<br />
99<br />
283<br />
2005<br />
The figures given above do not include Supor.<br />
85<br />
290<br />
2006<br />
92<br />
301<br />
2007<br />
FACTS AND FIGURES<br />
9<br />
NET FINANCIAL DEBT<br />
AND GEARING<br />
Debt was up due to<br />
<strong>the</strong> Supor acquisition,<br />
but down by €83 million<br />
for constant structure,<br />
reflecting rigorous<br />
financial management.<br />
Net debt at 31/12<br />
(€ millions)<br />
Debt-to-equity ratio<br />
(gearing)<br />
423<br />
0.5<br />
2005<br />
422<br />
0.5<br />
2006<br />
658<br />
0.8<br />
2007
REVENUE BREAKDOWN<br />
CLIENTS €2,869.6 MILLION<br />
• European Union* 47%<br />
• North America 14%<br />
• South America 10%<br />
• Central Europe, <strong>the</strong> CIS countries,<br />
Asia and o<strong>the</strong>r territories 29%<br />
* Former 15 member bloc<br />
RESERVED FUNDS €209.3 MILLION<br />
• Refinancing investments: €88.3 million<br />
• Change in provisions linked to<br />
business risks: €21.2 million<br />
• Transferred to reserves : €99.8 million<br />
GROUPE <strong>SEB</strong><br />
BANKS AND BONDHOLDERS €34.9 MILLION<br />
Mainly financial expenses relating to interest on bank<br />
loans<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
10<br />
SUPPLIERS €1,935.1 MILLION<br />
of which 2,404 direct industrial<br />
suppliers, (including a panel*<br />
of 455 suppliers representing 80%<br />
of purchases).<br />
STATE AND LOCAL AUTHORITIES €108.9 MILLION<br />
Corporation tax: €60.9 million<br />
Local taxes: €48.0 million<br />
SHAREHOLDERS €43.0 MILLION<br />
paid in 2007 in respect of <strong>the</strong> 2006 trading<br />
year.<br />
EMPLOYEES €538.3 MILLION<br />
paid to 13,048 employees.<br />
• 71% in gross pay<br />
• 29% in social charges<br />
• bonus and profit-sharing (€33.3 million)<br />
to be paid in 2008<br />
* The increase in <strong>the</strong> approved supplier panel<br />
compared with 2006 is due to <strong>the</strong> integration<br />
of All-Clad, Panex and Lagostina, and to <strong>the</strong><br />
development of sourcing.
FACTS AND FIGURES<br />
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS<br />
CONSOLIDATED RESULTS<br />
€ millions 31/12/2007 31/12/2006 31/12/2005<br />
restated restated<br />
Revenue 2,869.6 2,651.7 2,462.9<br />
Operating expenses (2,568.5) (2,389.3) (2,200.7)<br />
OPERATING MARGIN 301.1 262.4 262.2<br />
Discretionary and non-discretionary profit-sharing (33.3) (25.8) (29.3)<br />
RECURRING OPERATING PROFIT 267.8 236.6 232.9<br />
O<strong>the</strong>r operating income and expense (30.4) (83.6) (50.1)<br />
OPERATING PROFIT 237.4 153.0 182.8<br />
Finance costs (32.3) (25.6) (17.6)<br />
O<strong>the</strong>r financial income and expense (2.6) (4.9) (7.6)<br />
Share of profits (losses) of associates 1.2 (1.0) (1.1)<br />
PROFIT BEFORE TAX 203.7 121.5 156.5<br />
Income tax (60.9) (34.4) (54.6)<br />
PROFIT FOR THE PERIOD 142.8 87.1 101.9<br />
Minority interests (0.0) (0.1) (0.1)<br />
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS 142.8 87.0 101.8<br />
OF THE PARENT COMPANY<br />
CONSOLIDATED BALANCE SHEET<br />
ASSETS 31/12/2007 31/12/2006 31/12/2005<br />
€ millions restated restated<br />
NON-CURRENT ASSETS 1,083.6 807.9 848.9<br />
Inventories 528.2 517.1 449.8<br />
Trade receivables 627.2 646.4 630.3<br />
Current tax assets and o<strong>the</strong>r receivables 65.1 95.9 85.6<br />
Cash. cash equivalents and derivative instruments 138.1 56.6 53.5<br />
CURRENT ASSETS 1,358.6 1,316.0 1,219.2<br />
TOTAL ASSETS 2,442.2 2,123.9 2,068.1<br />
EQUITY AND LIABILITIES 31/12/2007 31/12/2006 31/12/2005<br />
€ millions restated restated<br />
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE<br />
PARENT COMPANY 862.4 815.9 799.5<br />
MINORITY INTERESTS - - 1.2<br />
EQUITY 862.4 815.9 800.7<br />
Long-term borrowings 65.9 80.2 104.3<br />
Provisions and o<strong>the</strong>r non-current liabilities 161.6 187.1 229.3<br />
NON-CURRENT LIABILITIES 227.5 267.3 333.6<br />
Trade payables 333.4 342.7 303.7<br />
O<strong>the</strong>r provisions and current liabilities 289.6 301.3 263.7<br />
Short-term borrowings 729.3 396.7 366.4<br />
CURRENT LIABILITIES 1,352.3 1,040.7 933.8<br />
TOTAL EQUITY AND LIABILITIES 2,442.2 2,123.9 2,068.1<br />
11
Stockmarket overview<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
BREAKDOWN OF CAPITAL (%) BREAKDOWN OF VOTING RIGHTS (%)<br />
Founder group<br />
FFP<br />
5.1 5.9<br />
14.1<br />
23.8<br />
3.6<br />
42.5<br />
5.0<br />
TOTAL SHARES: 16,960,186 TOTAL VOTING RIGHTS: 23,945,752<br />
Employees<br />
12<br />
4.7<br />
3.6<br />
10.1<br />
17.6<br />
French institutional investors<br />
Foreign investors<br />
Individual shareholders<br />
DILUTED NET INCOME AND DIVIDEND PER SHARE (in euros)<br />
Net dividend*<br />
Net income per share<br />
* Excluding <strong>the</strong> dividend supplement.<br />
2.40 2.40<br />
8.02<br />
2004<br />
6.21<br />
2005<br />
2.55<br />
5.34<br />
2006<br />
4.8<br />
2.80<br />
8.67<br />
2007<br />
59.2<br />
Treasury stock
<strong>SEB</strong> SHARE PERFORMANCE<br />
150<br />
120<br />
90<br />
60<br />
FACTS AND FIGURES<br />
€ Volumes<br />
01/07<br />
02/07<br />
03/07<br />
04/07<br />
05/07<br />
06/07<br />
07/07<br />
13<br />
08/07<br />
<strong>SEB</strong> CAC 40 (adjusted) Average volume of shares traded<br />
09/07<br />
10/07<br />
11/07<br />
12/07<br />
01/08<br />
02/08<br />
60,000<br />
50,000<br />
40,000<br />
30,000<br />
20,000<br />
10,000<br />
STOCKMARKET CAPITALIZATION AT 31/12/07: €2,103 MILLION<br />
The <strong>SEB</strong> share performed well on <strong>the</strong> stockmarket in 2007, out-pacing <strong>the</strong> market index throughout <strong>the</strong> year.<br />
It maintained an average rate of €129.28, reaching a 10-year high of €144.45 on 22 May. The Group’s excellent trading<br />
and strong news interest – particularly its imminent acquisition in China, completed at <strong>the</strong> end of December – largely<br />
explain this good performance. The capital rotation rate of nearly 64% substantially exceeded <strong>the</strong> average of recent<br />
years, reflecting keen investor interest in <strong>the</strong> share during 2007. At <strong>the</strong> end of <strong>the</strong> year and at <strong>the</strong> beginning of 2008<br />
agitation in world financial markets pushed down prices of o<strong>the</strong>rwise high-performing mid-range stocks, which also<br />
affected <strong>the</strong> <strong>SEB</strong> share. Substantial profit-taking during this period led to a sharp drop in <strong>the</strong> share price. However, after<br />
dipping below <strong>the</strong> €100 mark, <strong>the</strong> share began to recover at <strong>the</strong> end of January following publication of <strong>the</strong> 2007<br />
financial results.<br />
0
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Being attentive to shareholders<br />
A listed company since 1975, <strong>Groupe</strong> <strong>SEB</strong> strives to cultivate<br />
and build up <strong>the</strong> loyalty of its shareholder base while<br />
pursuing an active policy of dialogue and information aimed<br />
at existing and potential shareholders.<br />
GROUPE <strong>SEB</strong> PLEASED TO MEET YOU<br />
Direct contact being <strong>the</strong> best way to ensure a good understanding<br />
of <strong>the</strong> company’s day-to-day operations, we try to engage in<br />
regular dialogue with our shareholders – beyond <strong>the</strong> customary<br />
Annual General Meeting. In 2007, for example, meetings in France<br />
were arranged in Lyons, Lille, Marseilles and Nantes for a total<br />
of 1,200 shareholders. To give a better picture of <strong>the</strong> Group’s<br />
industrial context, we also organized a factory visit for some<br />
30 members of an investor club to our Mayenne plant which manufactures<br />
food and beverage preparation equipment. In parallel, we<br />
maintain close links with financial analysts (including some 20<br />
regulars) who follow <strong>the</strong> progress of <strong>the</strong> <strong>SEB</strong> share. In this way we<br />
help <strong>the</strong>m to better understand <strong>the</strong> Group and its trading context<br />
and ensure that <strong>the</strong>y are fully informed. We also maintain direct<br />
and regular contact with institutional investors (over 200 contacts<br />
during 2007).<br />
14
Our mail order catalogue has taken on a new<br />
look.<br />
New design, new name – “Home & Cook” –<br />
with reduced prices for nominal shareholders.<br />
And, for owners of bearer shares,<br />
twice-a-year special offers on selected<br />
products.<br />
GROUPE <strong>SEB</strong> commitment...<br />
A MAXIMUM SPREAD OF INFORMATION<br />
FACTS AND FIGURES<br />
GROUPE <strong>SEB</strong> AT YOUR SERVICE<br />
<strong>Groupe</strong> <strong>SEB</strong> provides a set of dedicated services for its shareholders:<br />
<strong>the</strong> <strong>SEB</strong> Shareholder Relations Department which handles<br />
all queries and information about <strong>the</strong> <strong>SEB</strong> share, and <strong>the</strong> <strong>SEB</strong><br />
Share Service which manages nominal shares held in <strong>the</strong> <strong>SEB</strong><br />
share register. This includes free handling of share purchase<br />
or sale orders, management of related personal information, notification<br />
of <strong>the</strong> Annual General Meeting and dividend payments.<br />
Nominal shareholders also have access to a secure Internet link to<br />
follow up <strong>the</strong>ir share account in real time.<br />
DIVIDEND GROWTH<br />
The dividend policy of <strong>Groupe</strong> <strong>SEB</strong> is based on <strong>the</strong> long term and<br />
aims to give you a fair return on <strong>the</strong> capital you entrust to us.<br />
The principle is to increase <strong>the</strong> dividend when trading results permit,<br />
and to hold it level if circumstances require. This year, <strong>the</strong><br />
Board of Directors is proposing to <strong>the</strong> Annual General Meeting of<br />
13 May 2008 to pay a dividend of €2.80 in respect of <strong>the</strong> 2007<br />
trading year, an increase of almost 10%.<br />
A dividend supplement equivalent to 10% of <strong>the</strong> dividend is also<br />
paid for all shares which have been held in <strong>the</strong> nominal register for<br />
more than two consecutive years.<br />
<strong>Groupe</strong> <strong>SEB</strong> undertakes to provide clear and comprehensive information to all those who<br />
are interested in <strong>the</strong> Group. For this purpose it has developed a whole array of effective<br />
communication tools accessible to all:<br />
• paper-based publications throughout <strong>the</strong> year which offer an excellent source of<br />
information and are available on demand from <strong>the</strong> Financial Communications Department.<br />
These include <strong>the</strong> Annual Corporate and Sustainable Development Report, <strong>the</strong> Annual<br />
Financial Report and Reference Document, <strong>the</strong> quarterly Letter to Shareholders, and <strong>the</strong><br />
Shareholder Guide;<br />
• our website, www.groupeseb.com gives real-time acces to <strong>the</strong> latest news on <strong>the</strong> Group and<br />
<strong>the</strong> full corpus of financial and o<strong>the</strong>r information, while a special Shareholder and Investor<br />
section invites users to download our publications;<br />
• constantly updated information relays such as <strong>the</strong> press, official announcements and <strong>the</strong><br />
financial community, are used to pass on our information to <strong>the</strong>ir target audiences.<br />
15
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Social performance review<br />
ACCIDENT FREQUENCY*<br />
12.28<br />
2005<br />
10.41<br />
2006<br />
9.31<br />
2007<br />
16<br />
ACCIDENT SEVERITY**<br />
Accident frequency dropped for all sites (an overall reduction of 10% worldwide compared with 2006), and <strong>the</strong>re was a<br />
slight reduction in <strong>the</strong> severity of accidents.<br />
WOMEN IN MANAGEMENT<br />
Women accounted for<br />
28.9% of managers<br />
worldwide in 2007,<br />
being a 10% increase<br />
since 2002 when <strong>the</strong><br />
rate was 20.1%.<br />
As percentage<br />
of managers worldwide.<br />
25.4<br />
2005<br />
World data<br />
* Accident frequency:<br />
number of work accidents<br />
with absence, per million<br />
hours worked.<br />
2005 : world data adjusted on<br />
<strong>the</strong> basis of <strong>the</strong> Group’s<br />
structure in 2006 and 2007.<br />
27.2<br />
2006<br />
28.9<br />
2007<br />
0.43<br />
2005<br />
0.33<br />
2006<br />
0.32<br />
2007<br />
World data<br />
** Accident severity: number<br />
of working days lost because<br />
of accidents, per 1,000 hours<br />
worked.<br />
2005 : world data adjusted on<br />
<strong>the</strong> basis of <strong>the</strong> Group’s<br />
structure in 2006 and 2007.<br />
For more information<br />
see our website:<br />
www.groupeseb-devdurable.com
EMPLOYEES, BY GEOGRAPHIC ZONE<br />
At 31 December 2007,<br />
a total of 13,048<br />
employees, of which 48%<br />
outside France.<br />
Between 2006 and 2007<br />
staffing in Central<br />
Europe,<br />
<strong>the</strong> CIS countries and<br />
Asia rose by 14%.<br />
Worldwide<br />
France<br />
O<strong>the</strong>r EU countries<br />
North America<br />
South America<br />
Central Europe, CIS countries and Asia<br />
TRAINING BUDGET<br />
Training effort maintained,<br />
with a budget increased to<br />
2.30% of <strong>the</strong> total payroll.<br />
Worldwide<br />
As percentage of total<br />
payroll.<br />
2.02<br />
2005<br />
18%<br />
6%<br />
13%<br />
11%<br />
2.27<br />
2006<br />
In 2008, <strong>Groupe</strong> <strong>SEB</strong> will introduce a reporting system<br />
to reinforce its sustainable development drive.<br />
The figures given above do not include Supor.<br />
52%<br />
2.30<br />
2007<br />
FACTS AND FIGURES<br />
17<br />
EMPLOYEES, BY CATEGORY<br />
Increase in <strong>the</strong> proportion<br />
of office workers and<br />
managers in 2007.<br />
Toge<strong>the</strong>r, <strong>the</strong>y accounted<br />
for 59% of total staff.<br />
Worldwide<br />
Managers<br />
Office workers<br />
Manual workers<br />
12.2<br />
43.9<br />
43.9<br />
2005<br />
Mayenne – Laboratory<br />
12.8<br />
44.7 45.6<br />
42.5 41.0<br />
2006<br />
13.4<br />
2007
Environment review<br />
CONSUMPTION OF RESOURCES, PER FINISHED PRODUCT<br />
Gradual reduction in total use<br />
of water and gas per finished<br />
product manufactured.<br />
Electricity consumption stable.<br />
Water consumption, in litres per finished product<br />
Gas consumption, in kWh per finished product<br />
Electricity consumption, in kWh per finished product<br />
World data (excluding All-Clad, Panex and Lagostina).<br />
Data for 2006 and 2005 adjusted on <strong>the</strong> basis of <strong>the</strong> Group structure<br />
in 2007 (excluding factories closed in 2007).<br />
PROPORTION OF ORDINARY<br />
INDUSTRIAL WASTE RECYCLED<br />
A continued increase in<br />
recycling of ordinary<br />
industrial waste (see<br />
glossary): this reached<br />
79% in 2007.<br />
World data (excluding All-Clad,<br />
Panex and Lagostina).<br />
Data for 2006 and 2005 adjusted<br />
on <strong>the</strong> basis of <strong>the</strong> Group<br />
structure in 2007 (excluding<br />
factories closed in 2007).<br />
71%<br />
2005<br />
76%<br />
2006<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
18<br />
79%<br />
2007<br />
litres 12.50<br />
kWh<br />
12 –<br />
11.49 11.42<br />
10 –<br />
2.01<br />
1.78<br />
1.96<br />
1.78<br />
1.85 – 2<br />
1.80<br />
8 –<br />
6 –<br />
4 –<br />
2 –<br />
0 –<br />
2005<br />
2006<br />
2007<br />
– 1<br />
– 0
ECOLOGICAL IMPACT CHART<br />
TOTAL = 153,103 TONNES<br />
1. Direct raw materials for manufactured finished<br />
products (excluding sourced products)<br />
TOTAL = 1,114,035 TONNES<br />
2. Indirect raw materials<br />
for processes, buildings and employees<br />
The data given above do not include All-Clad, Panex, Lagostina and Supor.<br />
FACTS AND FIGURES<br />
PROCESSING<br />
19<br />
1. Finished manufactured products<br />
(excluding sourced products)<br />
2. Special industrial waste (SIW)<br />
3. Ordinary industrial waste (OIW)<br />
4. Process sludge<br />
5. Atmospheric emissions (natural gas)<br />
6. Wastewater to treatment plants<br />
7. Discharge in water<br />
8. Disposal in soil<br />
TOTAL INPUT = 1,267,138 TONNES TOTAL OUTPUT = 1,267,138 TONNES<br />
Input 1:<br />
Motors 5,383 t<br />
Metals 70,785 t<br />
Plastics 38,700 t<br />
Packaging 28,000 t<br />
Sub-assemblies<br />
and o<strong>the</strong>r 10,235 t<br />
TOTAL 153,103 t<br />
Input 2:<br />
Gas 11,387 t<br />
Fuel 78 t<br />
Air (0 2 ) 23,962 t<br />
Water 1,062,654 t<br />
O<strong>the</strong>r 15,954 t<br />
TOTAL 1,114,035 t<br />
▼<br />
▼<br />
▼<br />
INPUT OUTPUT<br />
152,341 t<br />
1,122 t<br />
12,010 t<br />
6,063 t<br />
32,948 t<br />
1,062,654 t<br />
0.44 t<br />
1. Finished electrical products, 70% recyclable and recoverable<br />
(WEEE* standard) and cookware products more<br />
than 80% recyclable.<br />
2. SIW: 100% treated in compliance with current standards.<br />
3. OIW: 79% recycled or recovered (9,534 t).<br />
4. 100% disposed of in approved landfills.<br />
5. CO 2: 32,905 t<br />
NOx & N20: 42.8 t<br />
SOx: 0.31 t<br />
6. Of which 482,341 t in <strong>the</strong> Group’s own wastewater treatment<br />
facilities and 580,313 t in municipal water treatment<br />
plants.<br />
7. Authorized annual maximum of 0.44 tonnes of metal in<br />
<strong>the</strong> water of treatment facilities.<br />
8. No discharge into soil, thanks to <strong>the</strong> Group’s mastery of<br />
production processes.<br />
* See Glossary.<br />
0 t
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Innovating today<br />
for a better life tomorrow<br />
<strong>Groupe</strong> <strong>SEB</strong>’s approach to sustainable development, fully in harmony with its corporate values, includes<br />
working toge<strong>the</strong>r with national and international partners concerned with <strong>the</strong>se issues. The Group has<br />
supported <strong>the</strong> UN Global Compact Initiative since 2003 and Europe’s CECED* Code of Conduct since 2005 when<br />
it also became a signatory of <strong>the</strong> Diversity Charter in France.<br />
* European Committee of Domestic Equipment Manufacturers.<br />
GROUPE <strong>SEB</strong> commitment...<br />
A FOUNDATION TO PROMOTE SOCIAL INTEGRATION<br />
• return to employment;<br />
MANAGING SUSTAINABLE DEVELOPMENT<br />
The <strong>Groupe</strong> <strong>SEB</strong> Sustainable Development department coordinates,<br />
motivates and manages a Group-wide participative effort in this<br />
area. This effort is supported by a steering committee comprising<br />
representatives of <strong>the</strong> main areas of Group activity. Since <strong>the</strong> end of<br />
2007 sustainable development principles have been formally<br />
integrated into <strong>the</strong> Group’s 14 main corporate functions.<br />
The Group’s internal control unit has drawn up a list of monitoring<br />
criteria based on <strong>the</strong> Global Compact, which it takes into account in<br />
its internal audits. In 2007 it conducted its first review of sustainable<br />
development indicators to ensure <strong>the</strong> reliability of reporting.<br />
<strong>Groupe</strong> <strong>SEB</strong> has a long tradition of corporate sponsorship, notably in support of initiatives<br />
to combat social exclusion. To coordinate its efforts in this area, it created <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong><br />
Corporate Foundation in June 2007. This body has a budget of €3 million over five years,<br />
and it takes action in three main areas:<br />
• social integration via improved living conditions;<br />
• social integration via access to education and training.<br />
The Foundation is overseen by a six-member Supervisory Board (including<br />
two outside experts) and projects are selected by an Operations Committee of<br />
11 members (including employees and labour delegates). Group employees<br />
also help to identify projects and participate in <strong>the</strong> Foundation’s work.<br />
20
MAIN ACHIEVEMENTS IN 2007<br />
FACTS AND FIGURES<br />
Working objectives Main achievements in 2007<br />
Improvement of health • Worldwide reduction of 10% in accident frequency (AF) and<br />
& safety at work gravity (AG). (In 2007: AF = 9.3; AG = 0.32).<br />
• Creation of a Group Health & Safety department.<br />
Promotion of diversity France: diversity training and awareness.<br />
Support for employees affected France: solutions found for most employees<br />
by industrial reorganization affected by <strong>the</strong> three factory closures.<br />
Corporate sponsorship: • Creation of <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> Corporate Foundation.<br />
to promote social integration • New projects in France and abroad.<br />
Involvement of <strong>Groupe</strong> <strong>SEB</strong> suppliers Environment:<br />
in its sustainable development effort • 29% of <strong>the</strong> supplier panel certified ISO 14001.<br />
• 99% of suppliers signed <strong>the</strong> eco-statement.<br />
• 34 follow-up inspections.<br />
Social:<br />
• Labour rights statement<br />
Labour rights statement signed by all suppliers in Asia<br />
and 50% of suppliers in Latin America.<br />
• 44 new internal and external social audits.<br />
Satisfying customers / Ensuring best • Creation of a Group After-Sales Service department.<br />
possible service for our client distributors • France: 90% service satisfaction rate maintained.<br />
Reducing <strong>the</strong> impact of <strong>the</strong> Group’s • Potential recycling rate for new products<br />
products on <strong>the</strong> environment (eco-design) maintained at 70% of <strong>the</strong>ir weight.<br />
• Power used in stand-by mode:<br />
< 2 Watts for 87% of new products.<br />
Respect for <strong>the</strong> environment • 89% of industrial and logistics sites* certified ISO 14001.<br />
by Group factories (eco-production) • First biodiversity impact study (pilot site in France).<br />
* Including trial-test sites and head office.<br />
The full sustainable development action plan is available on our website, www.groupeseb-devdurable.com.<br />
INFORMATION AND EXCHANGE TOOLS<br />
The Group uses a full array of media to heighten staff awareness<br />
and stimulate debate on sustainable development: its intranet<br />
forum, <strong>the</strong> in-house newsletter Globe News, a sustainable<br />
development brochure, a dedicated Internet website<br />
(www.groupeseb-devdurable.com), <strong>the</strong> company’s Annual Report<br />
in paper-based and electronic versions, and an e-mail contact<br />
address (sustainabledevelopment@groupeseb.com).<br />
21
Management bodies,<br />
Corporate governance<br />
GROUP EXECUTIVE COMMITTEE<br />
Thierry de La Tour d’Artaise,<br />
Chairman and Chief Executive Officer<br />
of <strong>SEB</strong> SA since 2000. Aged 53.<br />
A graduate of <strong>the</strong> Ecole Supérieure de<br />
Commerce de Paris, he joined Calor in<br />
1994 and became its Chairman, and in<br />
1999 was appointed Deputy Chairman<br />
of <strong>SEB</strong> SA. He is a Board member of<br />
Club Méditerranée SA, Plastic Omnium<br />
and Legrand and permanent representative<br />
of Sofinaction on <strong>the</strong> Board of<br />
Lyonnaise de Banque. Board member<br />
of Supor since January 2008.<br />
Jean-Pierre Lac,<br />
Executive Vice-President, Finance,<br />
since 2002. Aged 57. A graduate<br />
of <strong>the</strong> École des Hautes Etudes<br />
Commerciales, he worked in various<br />
countries for Rhône Poulenc, Philips<br />
and Aventis Cropscience of which he<br />
was Finance Director. Board member<br />
of Supor since January 2008.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Jacques Alexandre,<br />
Executive Vice-President, Strategy and<br />
Strategic Business Areas since 2000.<br />
Aged 60. A graduate of <strong>the</strong> Institut<br />
d'Études Politiques de Paris and<br />
qualified in marketing, he joined<br />
Rowenta 22 years ago. He became<br />
Managing Director of SA Seb, <strong>the</strong>n<br />
Director for <strong>the</strong> American Continent.<br />
Board member of Supor since January<br />
2008.<br />
Harry Touret,<br />
Executive Vice-President, Human<br />
Resources, since 2002. Aged 52.<br />
Post-graduate diplomas in<br />
management science and human<br />
resources. He joined <strong>the</strong> Group after<br />
working for Rhône Poulenc and<br />
Agro/Aventis Cropscience as Human<br />
Resources Director.<br />
22<br />
Rémi Descosse,<br />
Executive Vice-President, Industrial<br />
Operations since 1999. Aged 58.<br />
Graduate of <strong>the</strong> Institut National des<br />
Sciences Appliquées. After a career<br />
with Merlin-Gerin/Schneider,<br />
he entered <strong>the</strong> Group in 1994 as<br />
Managing Director of Tefal, and<br />
was appointed Director of Food<br />
Preparation business in 1998.<br />
Frédéric Verwaerde,<br />
Executive Vice-President, Continental<br />
Structures, since 2006. Aged 52.<br />
A graduate of Audencia, Nantes, he<br />
entered <strong>the</strong> Group in 1995 as Director<br />
of Products and Export. Appointed<br />
Director for Mercosur markets in 1998,<br />
he was given charge of Cookware<br />
activities in 2000, and of Western<br />
European markets in 2005. Board<br />
member of Supor since January 2008.
Determined<br />
international expansion<br />
The product at <strong>the</strong><br />
heart of our strategy<br />
Innovation,<br />
a growth driver<br />
MANAGEMENT BODIES, CORPORATE GOVERNANCE<br />
GROUP MANAGEMENT BOARD<br />
In addition to <strong>the</strong> members of <strong>the</strong> Group Executive Committee,<br />
<strong>the</strong> Group Management Board comprises:<br />
Cyril Buxtorf President, West and South Europe<br />
Marcio Cuñha President, South America<br />
Volker Lixfeld President, North and Central Europe<br />
Patrick Llobregat President, Asia and o<strong>the</strong>r territories<br />
Marc Navarre President, North America<br />
Philippe Crevoisier President, Electric cooking<br />
Jean-Pierre Lefèvre President, Linen and Personal care,<br />
Home care<br />
Christian Ringuet President, Cookware<br />
François Sydorowicz President, Food and beverage preparation<br />
Luc Dohan Chief Science and Technology Officer<br />
In addition to <strong>the</strong> five Continental Structures and <strong>the</strong> Strategic<br />
Business Areas (SBAs), Group-wide corporate functions handle<br />
day-to-day operations and apply best practices to ensure<br />
maximum efficiency and performance. These structures include<br />
Human Resources, Finance and Legal Affairs, Strategy,<br />
Manufacturing, Technology, Brands, IT Systems, Sustainable<br />
Development, Purchasing and Quality.<br />
23
BOARD OF DIRECTORS<br />
THIERRY DE LA TOUR D’ARTAISE<br />
Member of <strong>the</strong> Founder group. Aged 53.<br />
Chairman and Chief Executive Officer of <strong>SEB</strong> SA.<br />
Shares held: 14,821 (of which 55 bare-owner shares).<br />
TRISTAN BOITEUX<br />
Member of <strong>the</strong> Founder group, member<br />
of FÉDÉRACTIVE. Aged 45.<br />
Shares held: 33,558 (of which 30,553<br />
bare-owner shares).<br />
DAMARYS BRAIDA<br />
Member of <strong>the</strong> Founder group,<br />
member of VENELLE INVESTISSEMENT. Aged 40.<br />
Shares held: 56,583<br />
(of which 53,766 bare-owner shares).<br />
PASCAL CASTRES SAINT MARTIN<br />
Independent Director. Aged 72.<br />
Shares held: 385.<br />
NORBERT DENTRESSANGLE<br />
Independent Director. Aged 53.<br />
Shares held: 1,650.<br />
PHILIPPE DESMARESCAUX<br />
Independent Director. Aged 69.<br />
Shares held: 1,782.<br />
FÉDÉRACTIVE<br />
Shareholder investment company created in 2005,<br />
represented by its Chairman, Pascal Girardot, aged 52,<br />
member of <strong>the</strong> Founder group.<br />
Number of shares held by FÉDÉRACTIVE: 3,252,509<br />
(of which 3,252,508 usufruct shares).<br />
HUBERT FÈVRE<br />
Member of <strong>the</strong> Founder group, member<br />
of FÉDÉRACTIVE. Aged 43.<br />
Shares held: 180,323<br />
(of which 167,023 bare-owner shares).<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
The Board of Directors represents all <strong>the</strong> shareholders and acts in <strong>the</strong> sole interests of <strong>the</strong> company. A collective body, it<br />
decides on Group strategy, organization, budgets and acquisitions. In 2007, <strong>the</strong> Board of Directors met on six occasions with<br />
88% attendance.<br />
24<br />
SOCIÉTÉ FONCIÈRE, FINANCIÈRE<br />
ET DE PARTICIPATIONS - FFP<br />
A holding company listed on <strong>the</strong> Paris stock exchange<br />
and majority-held by <strong>the</strong> Peugeot family group,<br />
represented by Christian Peugeot, aged 54.<br />
Shares held by FFP: 857,337.<br />
JACQUES GAIRARD<br />
Member of <strong>the</strong> Founder group, member of VENELLE<br />
INVESTISSEMENT. Aged 68. Chairman and Chief Executive<br />
Officer of <strong>Groupe</strong> <strong>SEB</strong> from 1990 to 2000.<br />
Shares held: 56,550.<br />
PHILIPPE LENAIN<br />
Independent Director. Aged 71.<br />
Shares held: 550.<br />
ANTOINE LESCURE<br />
Member of <strong>the</strong> Founder group, member of FÉDÉRACTIVE.<br />
Aged 36.<br />
Shares held: 75,992 (of which 75,982 bare-owner shares).<br />
FRÉDÉRIC LESCURE<br />
Member of <strong>the</strong> Founder group, member of FÉDÉRACTIVE.<br />
Aged 47.<br />
Shares held: 21,954 (of which 19,726 bare-owner shares).<br />
VENELLE INVESTISSEMENT<br />
A family holding company formed in 1997, represented by<br />
Olivier Roclore, aged 53, member of <strong>the</strong> Founder Group.<br />
Shares held: 2,219,997<br />
(of which 2,219,996 usufruct shares).<br />
JÉRÔME WITTLIN<br />
Member of <strong>the</strong> Founder group, member of VENELLE<br />
INVESTISSEMENT. Aged 48.<br />
Shares held: 2,046<br />
(of which 110 bare-owner shares).
Pascal Castres Saint Martin, chairman<br />
Norbert Dentressangle<br />
and Jérôme Wittlin.<br />
4 meetings, 83% attendance.<br />
Pascal Girardot, chairman<br />
Philippe Desmarescaux<br />
and Philippe Lenain<br />
3 meetings,<br />
full attendance.<br />
GROUPE <strong>SEB</strong> commitment...<br />
“A WELL-BALANCED BOARD OF DIRECTORS”<br />
MANAGEMENT BODIES, CORPORATE GOVERNANCE<br />
ROLE OF THE BOARD COMMITTEES<br />
The Audit Committee informs <strong>the</strong> Board on <strong>the</strong> identification,<br />
evaluation and handling of <strong>the</strong> main financial risks to which<br />
<strong>the</strong> Group may be exposed. It verifies <strong>the</strong> conformity of financial<br />
reporting methods and makes proposals on <strong>the</strong> appointment of<br />
statutory auditors.<br />
The Nominations and Remuneration Committee reports on its<br />
work to <strong>the</strong> Board of Directors and makes recommendations on <strong>the</strong><br />
composition of <strong>the</strong> Board, on <strong>the</strong> terms of office of directors, and<br />
on <strong>the</strong> Group's organization and structures. It gives guidance<br />
on policy for <strong>the</strong> remuneration of executives, as well as on <strong>the</strong><br />
introduction of share subscription and purchase option schemes.<br />
The Board of Directors, in accordance with <strong>the</strong> recommendations<br />
of <strong>the</strong> Bouton and Vienot reports, organized for <strong>the</strong> fifth successive<br />
year a discussion on <strong>the</strong> functioning of <strong>the</strong> Board under <strong>the</strong><br />
responsibility of <strong>the</strong> Nominations and Remuneration Committee.<br />
The Board considered that most of <strong>the</strong> improvements suggested by<br />
previous reviews had been implemented with a beneficial effect on<br />
<strong>the</strong> functioning of <strong>the</strong> Board.<br />
Moreover, <strong>the</strong> Board of Directors has applied a Directors’ Charter<br />
and Internal Rules since 2003. Combined in a single document,<br />
<strong>the</strong>se texts ensure that Board members have a clear understanding<br />
of <strong>the</strong>ir role, rights and duties, <strong>the</strong> functioning and objectives of<br />
<strong>the</strong> Board of Directors and director remuneration policy.<br />
Mathilde Dufour, analyst with EthiFinance, a corporate social responsibility (CSR)<br />
research agency.<br />
“Examination of <strong>the</strong> make-up of <strong>the</strong> Board of Directors of <strong>Groupe</strong> <strong>SEB</strong> shows it to be<br />
well balanced in relation to <strong>the</strong> structure of its shareholder base. The presence of an<br />
extra independent director would be a ‘plus’, but <strong>the</strong> Board does already have four<br />
independents out of its 15 members which is quite good for a company where more than 40% of <strong>the</strong> capital is held<br />
by <strong>the</strong> founding family group. The fact that <strong>the</strong> Audit Committee is chaired by one of <strong>the</strong>se independent directors<br />
is also a positive point in terms of good governance. Ano<strong>the</strong>r good sign is <strong>the</strong> Board’s annual self-evaluation of its<br />
functioning and <strong>the</strong> steps taken as a result of this. With regard to areas for improvement, we think <strong>the</strong> Group<br />
could streng<strong>the</strong>n internal procedures for monitoring conformity with <strong>the</strong> ethical standards to which it adheres,<br />
including <strong>the</strong> principles of <strong>the</strong> Global Compact and <strong>the</strong> Code of Conduct of <strong>the</strong> European Committee of Domestic<br />
Equipment Manufacturers.”<br />
25
STRATEGY<br />
IMAGINING THE FUTURE<br />
LIVING THE FUTURE<br />
Armed with a clear grasp of current market trends and how <strong>the</strong>y influence consumer behaviour, <strong>Groupe</strong> <strong>SEB</strong><br />
deploys a long-term strategy built around four chief priorities which are vital to its development: product<br />
leadership, geographic leadership, competitive performance and client service.
INDUSTRY TRENDS 28 – IMAGINING THE FUTURE 30 – LIVING THE FUTURE 48
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Lifestyle trends<br />
and small household appliances<br />
80,000 visitors a year<br />
to Brazil’s Casa Gourmet,<br />
a meeting-place<br />
for customers.<br />
Lifestyles around <strong>the</strong> world are changing in response to new<br />
developments in thinking, science and technology. These<br />
sociocultural trends shape <strong>the</strong> behaviour of consumers<br />
whose basic needs, hopes and desires motivate <strong>the</strong>ir decision<br />
to buy.<br />
EASIER AND MORE ATTRACTIVE LIVING<br />
<strong>Groupe</strong> <strong>SEB</strong> responds to consumer demands for a better and more<br />
attractive daily life by offering <strong>the</strong>m new functional features and<br />
thought-out design. In <strong>the</strong> kitchen, which has become a real living<br />
area in today’s home, our Group has played a big role in simplifying<br />
tasks. For some two hours spent in <strong>the</strong> kitchen by a typical French<br />
housewife in <strong>the</strong> 1950’s, today this need hardly be more than twenty<br />
minutes. <strong>Groupe</strong> <strong>SEB</strong> has created ranges designed for rapid<br />
results, ease of use and direct service: multi-function food processors,<br />
instant hot-water dispensers, pod coffee makers that serve<br />
coffee by <strong>the</strong> cup, blenders and juice extractors that pour straight<br />
into a glass. Cooking meals is still rewarding with our convivial<br />
appliances that make having dinner-guests a pleasure – simplicity<br />
itself, with a touch of originality and imagination.<br />
28
STRATEGY – INDUSTRY TRENDS<br />
GLOBAL REACH, LOCAL TOUCH<br />
While <strong>the</strong> Internet has revolutionized ways of life and accelerated <strong>the</strong> convergence of cultures, <strong>the</strong>re is also a growing<br />
sense of local identity. Which is why <strong>the</strong> Group adapts to specific regional culinary practices. For example, our product<br />
response to <strong>the</strong> popularity of liquid or semi-liquid preparations around <strong>the</strong> world was two-fold: an upright hand-mixer<br />
for Europe and a blender for o<strong>the</strong>r continents. Similarly, our kettles for making tea (<strong>the</strong> world’s most popular beverage)<br />
are designed to match local market usage – small-sized for Japan, a keep-hot function for o<strong>the</strong>r Asian countries.<br />
The multi-cultural dimension of food is also taken into account by <strong>the</strong> Group’s offer of appliances such as <strong>the</strong> tajine, wok<br />
or plancha for cooking specialty ethnic dishes.<br />
Tefal – Delicious & Nutritious<br />
CONSUMER CRITERIA<br />
FOR BRAND CHOICE<br />
• confidence in <strong>the</strong> product (76%);<br />
• importance of product quality control (74%);<br />
• concern for <strong>the</strong> environment (83%);<br />
• respect for certain social values (71%).<br />
(CSA survey for La Poste).<br />
A NEW ERA OF HEALTHY EATING<br />
Healthy eating is a central concern in Western societies today, and<br />
<strong>Groupe</strong> <strong>SEB</strong> is investing heavily in this sector in which it aims to play a<br />
leading role. The challenge of preparing food which is both tasty and<br />
nutritious is taken up by our Nutritious and Delicious line which<br />
includes a minimal-oil fryer, a steam cooker and a steam oven for<br />
natural, healthy cooking. This dietary trend coincides with a renewed<br />
interest in <strong>the</strong> home-made, a demand met by our jam-makers and<br />
breadmakers which are easy to use and give a perfect result. For people<br />
who expect professional standards at home, <strong>the</strong>re are espresso<br />
and cappuccino coffee machines...and our home beer-tapping system.<br />
CORPORATE ETHICS: A PRIORITY<br />
Growing public awareness about social and environmental issues<br />
has made consumers more demanding in <strong>the</strong>ir choice of brand.<br />
Concern for human rights and <strong>the</strong> future of our planet is also an<br />
aspect of our corporate social responsibility. We <strong>the</strong>refore make<br />
every effort to limit <strong>the</strong> ecological footprint of our activities<br />
(reducing <strong>the</strong> power consumption of our factories and products,<br />
designing products that can be recycled) while helping to improve<br />
life for everyone through our commitment to ethical business and<br />
sponsorship of social projects.<br />
Tefal – Vitadélice steam oven<br />
29
STRATEGY
IMAGINING THE FUTURE<br />
New Krups Precision<br />
filter coffee maker<br />
by designer Dahlström<br />
for <strong>the</strong> North American market.<br />
71% of sales<br />
in international markets.<br />
31<br />
STRATEGY – IMAGINING THE FUTURE<br />
The essential task of projection into <strong>the</strong> future is not easy in<br />
<strong>the</strong> context of interacting consumer segments where change<br />
is nei<strong>the</strong>r simultaneous nor uniform by market or by product<br />
family. For <strong>Groupe</strong> <strong>SEB</strong>, this means deploying universal and<br />
differentiated brands, products and services that offer a tan-<br />
gible response to <strong>the</strong> needs and desires of today’s consumers<br />
and to <strong>the</strong>ir hopes for <strong>the</strong> future. It also means exploring,<br />
conquering and expanding new territorial and technological<br />
frontiers. This strategy is a guarantee of lasting growth.<br />
THE ART OF BETTER LIVING
Brands for everyone<br />
Over 50% of our sales<br />
are products that were<br />
launched in <strong>the</strong> last two years.<br />
Tefal - Toast’n Eggs<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Deploying a powerful portfolio of 20 well-known brands is<br />
both a strategic advantage and a challenge. For <strong>Groupe</strong> <strong>SEB</strong>,<br />
its brands are highly valuable assets, and <strong>the</strong>ir differentiation<br />
is <strong>the</strong> key to <strong>the</strong>ir successful deployment. The Group’s<br />
strategy of positioning brands to match different buying<br />
habits and segments takes account of consumer tastes and<br />
<strong>the</strong> demands of retailers. Six main platforms of worldwide or<br />
multi-regional brands define <strong>the</strong>ir respective brand missions<br />
and value <strong>the</strong>mes, while local brands slot into this overall<br />
strategy.<br />
Our premium brands occupy <strong>the</strong> high-end segment. All-Clad,<br />
a prestigious label, conjures up <strong>the</strong> kitchens of top chefs.<br />
Lagostina is aimed at people who associate elegance with<br />
perfect results. Krups is for <strong>the</strong> demanding connoisseur, a<br />
fast-growing segment in mature markets. Mid-range and<br />
entry-level products are covered by our generalist brands.<br />
Rowenta highlights aes<strong>the</strong>tic design and technical<br />
performance. Tefal is <strong>the</strong> champion of ingenuity, while <strong>the</strong><br />
light-hearted youthful stance of Moulinex appeals to<br />
consumers seeking freedom from domestic tasks.<br />
32
Moulinex – Accessimo<br />
2007: some 210 new<br />
products launched.<br />
Rowenta – hair-styling appliance<br />
STRATEGY – IMAGINING THE FUTURE<br />
A MULTIPLE, TARGETED OFFER<br />
Market segmentation and <strong>the</strong> variety of retail channels mean that <strong>the</strong><br />
Group‘s offer must have many facets. Its products cover a whole<br />
spectrum of consumer needs, from first-time users in emerging<br />
markets to <strong>the</strong> more sophisticated aspirations and desires expressed<br />
in mature markets. It meets <strong>the</strong> needs of both mass-market distributors<br />
and selective retailers who want exclusive offers. Our multibrand<br />
strategy is <strong>the</strong> cornerstone of our market approach. It also<br />
involves rapid development of Group-wide <strong>the</strong>matic ranges.<br />
This highly focused offer, composed of products from <strong>the</strong> Group’s<br />
different activities, notably cooking and food preparation, has three<br />
main characteristics:<br />
• functional features such as ease of use and ingenuity, as with<br />
<strong>the</strong> Moulinex Accessimo and Tefal’s Simply Invents;<br />
• a distinctive design <strong>the</strong>me for each brand assortment, as with<br />
<strong>the</strong> Dahlström-designed Krups Précision set, or Tefal’s Reveal<br />
created by Smart Design;<br />
• brand concepts reflecting modern trends, as with Tefal’s<br />
Nutritious & Delicious line conceived for tasty and healthy cooking,<br />
<strong>the</strong> Moulinex Direct Serve for rapidity and convenience, and <strong>the</strong><br />
Krups Prep Expert which highlights precision technology.<br />
These Group-wide ranges are created for all market segments and<br />
all consumer tastes.<br />
THE DYNAMISM OF INNOVATION<br />
A multi-specialist operator present in every segment, <strong>Groupe</strong> <strong>SEB</strong><br />
applies a product strategy based on broadening ranges and rapid<br />
renewal of its offer. To do this, it uses innovation which is a key<br />
growth lever and a competitive advantage for <strong>the</strong> Group, faced as it<br />
is with a retail industry constantly demanding novelty to stimulate<br />
stock turnover on store shelves.<br />
The Group regained <strong>the</strong> initiative in an entry-level segment flooded<br />
by Asian imports, first with its launch of Principio from Moulinex,<br />
followed by <strong>the</strong> Tefal Simply Invents range, and <strong>the</strong>n Accessimo in<br />
2008. The Group created added value for <strong>the</strong>se ranges with clever<br />
extras such as pincers to hold hot toast, a rotating dial control for<br />
<strong>the</strong> fryer basket, and retractable power cables.<br />
MOULINEX DIRECT SERVE<br />
This mid-range blender/juicer with mixing bowl is a perfect illustration of<br />
Moulinex brand values. It is simple, quick and easy to use and <strong>the</strong> ready result<br />
is served directly into a glass. The Direct Serve was given a big welcome by<br />
French consumers.<br />
33
Calor – Pro Express anti-scaling iron<br />
Moulinex – Home Bread<br />
GROUPE <strong>SEB</strong> commitment...<br />
“BEING FIRST IN QUALITY TOO”<br />
Alain Marlier, Quality Control Manager, <strong>Groupe</strong> <strong>SEB</strong>, since June 2007.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
In middle ranges where <strong>the</strong> Group is firmly established, we<br />
stimulate market demand by regularly updating <strong>the</strong> product offer<br />
with new concepts which are of real use to <strong>the</strong> consumer:<br />
• Easy storage, cleverly built into our Ingenio, Compact and Cocoon<br />
cookware ranges of stackable pots and pans has now been applied<br />
to o<strong>the</strong>r products such as Body Up bathroom scales which can be<br />
stored upright, and <strong>the</strong> Store In food processor with drawers to tidy<br />
away accessories.<br />
• Efficiency and ease of use are very important, especially for <strong>the</strong><br />
most tedious domestic chores. These qualities are well served in<br />
<strong>the</strong> latest Rowenta and Tefal steam generating systems, thanks to<br />
<strong>the</strong>ir advanced ergonomic and technical features (anti-wrinkle and<br />
anti-scaling functions).<br />
• Local relevance is ano<strong>the</strong>r parameter taken into account by <strong>the</strong><br />
Group. The breadmaking machine, for example, can bake a<br />
baguette, a panetone or a borodinski loaf. Haircare appliances such<br />
as hair dryers, straighteners and blow-brushes are designed for<br />
every kind of hair.<br />
“The prime objective of <strong>Groupe</strong> <strong>SEB</strong> is to satisfy <strong>the</strong> customer with quality products. After<br />
several years of continuous improvement, <strong>the</strong> rise in <strong>the</strong> Group’s quality indicators stalled in<br />
2006, when <strong>the</strong>re was a high rate of returns for certain products. So, in 2007, we introduced a<br />
plan with high quality targets to redress<br />
<strong>the</strong> situation. This plan is based on<br />
25 criteria for progress covering all <strong>the</strong> Group’s processes,<br />
ranging from R&D to marketing, purchasing and manufacturing.<br />
The development of highly innovative technology products,<br />
for example, will be subjected to stringent quality control.<br />
An extensive quality training programme will be set in motion<br />
in 2008, initially in France, and <strong>the</strong>n internationally. It will<br />
cover some 800 people from all levels of <strong>the</strong> company. It is<br />
encouraging to note that <strong>the</strong> rate of returns dropped in 2007.<br />
Our task now is to make sure that this trend continues.”<br />
34
Rowenta – Silence Force<br />
BETTER SERVICE FOR THE CONSUMER<br />
A GUARANTEED RESPONSE<br />
STRATEGY – IMAGINING THE FUTURE<br />
The standards of excellence, superior results and professional finish<br />
associated with our top-range brands, Krups, Lagostina and<br />
All-Clad, require <strong>the</strong> input of advanced technologies. All-Clad, our<br />
specialist in bonded metal utensils, has for example developed<br />
a new five-layer bonding process for induction cooking. This new<br />
technology which guarantees perfect flatness and optimum heat<br />
distribution is taking on fast in <strong>the</strong> American market.<br />
CUTTING-EDGE TECHNOLOGY<br />
The Group’s intense R&D efforts continue to generate new<br />
technologies and cutting-edge innovations which lead to <strong>the</strong> great<br />
commercial success stories that drive our growth. For <strong>the</strong> Silence<br />
Force vacuum cleaner, we invented and patented a ‘silence box’<br />
process to cut down on noise without reducing performance –<br />
resulting in a machine six-times quieter than a classic cleaner and<br />
just as powerful. Our expertise in nutritional cooking products<br />
helped us to meet <strong>the</strong> challenge of making tasty chips with almost<br />
no oil. The result of this technical prowess: <strong>the</strong> Actifry, with its<br />
mixing paddle and hot-air convection system. These new<br />
products show <strong>the</strong> close attention we pay to <strong>the</strong> wellbeing and health<br />
of consumers. Eco-design is yet ano<strong>the</strong>r area of study in which<br />
<strong>the</strong> Group invests to make real progress in <strong>the</strong> protection of <strong>the</strong><br />
individual and <strong>the</strong> environment.<br />
What if a customer has a query or an issue with a <strong>Groupe</strong> <strong>SEB</strong> product? Our national<br />
consumer service (contact details marked on packaging) is an important source of<br />
customer information and feed-back. This service is particularly developed in France<br />
where it is run by a team of some 20 customer advisors based at our Consumer<br />
Welcome Center. An independent survey in 2007 rated this centre ahead of <strong>the</strong> Group’s main rivals for quality<br />
of service. The Group plans to extend <strong>the</strong> French model and harmonize all its customer welcome services, first<br />
in Europe, and <strong>the</strong>n throughout <strong>the</strong> world.<br />
AFTER-SALES SERVICING<br />
The Group also undertook a complete review of its after-sales servicing network in 2007 to improve <strong>the</strong> rate<br />
of customer satisfaction in terms of <strong>the</strong> time taken, <strong>the</strong> cost and <strong>the</strong> quality of repairs. The system is overseen by<br />
a new After-Sales Service department created early this year, which shows <strong>the</strong> Group’s determination to aim for<br />
high performance in this area.<br />
35
Jamie Oliver – Cookware partnership<br />
GROUPE <strong>SEB</strong> commitment...<br />
ECO-DESIGN: PLANNING THE FULL PRODUCT LIFECYCLE<br />
MAKING PRODUCTS RECYCLABLE<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
PARTNERSHIPS BOOST SALES<br />
The Group has for several years adopted a pro-active<br />
partnership policy by forming alliances with famous<br />
mass-market names. The resulting pooled knowhow<br />
opens up new business horizons in areas such as<br />
pod-filter coffee makers. Krups took such an opportunity<br />
and became <strong>the</strong> leading partner of Nespresso<br />
and Nescafé. Thus, in 2007 several European<br />
countries saw our Nespresso models successfully<br />
joined by <strong>the</strong> Dolce Gusto to meet consumer demand<br />
for different types of coffee such as cappuccino, latte<br />
macchiato, caffe lungo or chococino. Meanwhile, <strong>the</strong><br />
BeerTender home beer-tapping system launched in<br />
partnership with Heineken continued to win over<br />
new markets. The Group has also had <strong>the</strong> benefit of<br />
Lesaffre’s expertise in baking yeast to expand <strong>the</strong><br />
range of recipes for its breadmaking machines. O<strong>the</strong>r<br />
partnerships to stimulate our sales involve top chefs<br />
such as Jamie Oliver and Emeril Lagasse, or <strong>the</strong><br />
famous Elite label for our beauty appliances offer.<br />
Right from <strong>the</strong> design stage of a product, <strong>the</strong> Group strives to limit its impact on <strong>the</strong><br />
environment: lower energy consumption, less raw materials to make it, easy<br />
recycling when <strong>the</strong> product reaches end of use. All our design units apply <strong>the</strong><br />
Group’s eco-design guidelines drawn up in 2003. The Group maintained its rate of recycling potential at an average of<br />
70% of product weight, for new products launched last year.<br />
AN INDUSTRY EFFORT<br />
Carrying its eco-design effort fur<strong>the</strong>r, <strong>the</strong> Group helped to form <strong>the</strong> CREER network<br />
in 2007. As its chairman, André Malsch, Sustainable Development Director for<br />
Steelcase International, says: “CREER brings toge<strong>the</strong>r companies and scientific<br />
teams with a view to pooling resources in applied research on eco-design and<br />
recycling potential. Its members are committed to ecology as a vector of progress. Three research projects have been<br />
launched with funding from, for example, <strong>the</strong> French Environment and Energy Management Agency. Its work is<br />
focused on constraints and opportunities in <strong>the</strong> use of recyclable materials, on analysis of existing recyclability<br />
evaluation methods, and on building an eco-design technology and regulatory database.”<br />
36
Krups – BeerTender<br />
USING LESS POWER<br />
Moulinex – Direct Serve<br />
STRATEGY – IMAGINING THE FUTURE<br />
THE DESIGN AND ADVERTISING MESSAGE<br />
The design of each product should highlight <strong>the</strong> benefit to <strong>the</strong> user<br />
while expressing <strong>the</strong> values of <strong>the</strong> brand. These values are made<br />
tangible through functional features, choice of materials, colours<br />
and design lines. By using a common <strong>the</strong>me, <strong>the</strong> design creates<br />
coherence across complete product assortments from entry-level<br />
to top-range. This gives unity and shared identity to Group-wide<br />
ranges. The strength of <strong>Groupe</strong> <strong>SEB</strong> in this area lies in its ability<br />
to combine <strong>the</strong> talents of in-house designers and external design<br />
studios specialized by brand. We also collaborate with designers<br />
from o<strong>the</strong>r regions of <strong>the</strong> world to make us more aware of local<br />
reaction to design.<br />
In a similar vein, advertising campaigns promote <strong>the</strong> various brand<br />
platform <strong>the</strong>mes and make it possible to develop international<br />
concepts that can be used in different markets. Thus, Moulinex<br />
adopted a world market stance in 2007, spotlighting its flagship<br />
values of simplicity and ease of use with breezy and cheerful TV<br />
spots highlighting <strong>the</strong>se values with a new slogan, “Life gets<br />
easier.” Consistent with our policy of dynamic innovation, <strong>the</strong><br />
Group’s advertising budget was increased by 23% last year.<br />
<strong>Groupe</strong> <strong>SEB</strong> strives to reduce <strong>the</strong> amount of power used by its electrical household appliances as this accounts<br />
for a large part of <strong>the</strong>ir impact on <strong>the</strong> environment – even when <strong>the</strong>y are in stand-by mode. In 2007, stand-by<br />
power consumption was 2W or less for 87% of <strong>the</strong> Group’s new products. The ultimate aim is to bring this down<br />
to 1W for all new products sold worldwide.<br />
ECONOMICAL AND PRACTICAL<br />
Launched in 2006, Tefal’s Quick & Hot instant hot-water dispenser<br />
(called Quick Cup in England) heats exactly <strong>the</strong> amount of water<br />
you want: even a cup at a time. It saves about 65% of energy<br />
compared with a classic electric kettle. For Kathryn Taylor, a Quick<br />
Cup user in Britain, “<strong>the</strong> big advantage is<br />
that it’s quick: I make myself a cup of tea in<br />
just seconds, which is great when I’m in a<br />
hurry. The fact that <strong>the</strong> Quick Cup economizes<br />
water and energy is a real ‘plus’ for <strong>the</strong><br />
environment too.”<br />
37
Kuwait – Home & Cook High Street<br />
GROUPE <strong>SEB</strong> commitment...<br />
DISTRIBUTION: CLOSER PARTNERSHIPS<br />
What do retailers expect of <strong>Groupe</strong> <strong>SEB</strong>? They expect quality<br />
products, on-time delivery, but also working-partner relations.<br />
“For example” explains Philippe Neveux, head of consumer goods<br />
stock flows and supplies for Carrefour in France, “we work with<br />
<strong>Groupe</strong> <strong>SEB</strong> on improving sales forecasts and logistics flows.<br />
The environment is ano<strong>the</strong>r topic we will soon examine toge<strong>the</strong>r<br />
to find effective logistics solutions that are both economical and<br />
ecological.”<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
A STRONGER RETAIL PRESENCE<br />
Our goal is to make sure that each brand pro<strong>file</strong> is appropriate to<br />
<strong>the</strong> retail channel. The product should be available at <strong>the</strong> point of<br />
sale where <strong>the</strong> shopper expects to find it. With this in mind, our<br />
retailing strategy has a triple focus:<br />
• Generalist, aiming to increase our stock listing with certain<br />
household appliance and mass-retailing outlets that favour broad<br />
consumer choice. This is <strong>the</strong> vocation of our mid-range brands<br />
Moulinex, Tefal and Rowenta.<br />
• Selective, aimed at penetrating up-market channels with<br />
exclusive product assortments and an adapted<br />
sales approach, using our premium quality brands,<br />
Krups, Lagostina and All-Clad.<br />
38<br />
• Alternative, geared to establishing positions<br />
in alternative channels such as tele-sales,<br />
<strong>the</strong> Internet or <strong>the</strong> Group’s own retail outlets.<br />
This more recent development, which concerns all<br />
our brands, complements <strong>the</strong> traditional retail<br />
network approach and is making solid headway in<br />
a number of countries.<br />
Last year’s service rate (on-schedule dispatch and delivery) was<br />
maintained at around 90% in France. This was 97% for clients who<br />
opted for <strong>the</strong> Joint Supply Management (JSM) system. Under <strong>the</strong> JSM system, <strong>Groupe</strong> <strong>SEB</strong> manages stock<br />
replenishment for <strong>the</strong> distributor’s warehouses. A growing number of clients also use <strong>the</strong> EDI (Electronic Data<br />
Interchange) system to simplify and accelerate transactions with <strong>the</strong> Group and reduce <strong>the</strong>ir cost.
Turkey – Promotional campaign<br />
“RECYCLING AND RECOVERY SYSTEM TAKES OFF”<br />
Dominique Mignon, Director of Development, Eco-Systèmes<br />
STRATEGY – IMAGINING THE FUTURE<br />
The Group has already opened more than 250 of its own retail<br />
outlets around <strong>the</strong> world under <strong>the</strong> trading banners, Home & Cook<br />
Factory Outlets, Home & Cook High Street, and Villa Gourmet.<br />
These store formats range from stock clearance via city-centre<br />
stores in emerging countries (where retailing is still little<br />
organized) to selective neighbourhood shops that combine service,<br />
advice and product presentation in mature markets.<br />
39<br />
All-Clad – Demonstration<br />
“Eco-Systèmes operations continued to build up throughout 2007, collecting<br />
110,000 tonnes of electrical and electronic end-of-use appliances in France, which is about<br />
70% of <strong>the</strong> total national collection. Approved by <strong>the</strong> public authorities in 2006,<br />
Eco-Systèmes brings toge<strong>the</strong>r most of France’s distributors and manufacturers of<br />
electrical and electronic appliances. <strong>Groupe</strong> <strong>SEB</strong> is a founder member and holds <strong>the</strong><br />
chairmanship. Collected from retailers, municipal sorting depots and Emmaüs community bases, most end-of-use<br />
products are <strong>the</strong>n sent to specialist processing centres. The rest is given to social solidarity organizations for re-use.<br />
The initial results of inspecting 11 processing centres in 2007 showed that recycling and re-use targets fixed by<br />
European regulations had been reached. In 2008, we plan to double <strong>the</strong> volume collected to 220,000 tonnes, and thus<br />
exceed <strong>the</strong> collection target of 4 kg per inhabitant per year set by <strong>the</strong> European Union. Our efforts so far have been<br />
focused on building up <strong>the</strong> network. Eco-Systèmes will shortly be turning its attention to making consumers more aware<br />
that <strong>the</strong>y should bring <strong>the</strong>ir old products to approved collection points. We are still a long way from clearing <strong>the</strong><br />
backlog of old appliances built up in kitchen cupboards!”
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
Better living all around <strong>the</strong> world<br />
<strong>Groupe</strong> <strong>SEB</strong> has built strong market positions all around <strong>the</strong><br />
world by combining its determined drive for global expansion<br />
with a policy of proximity to <strong>the</strong> customer and respect for<br />
individuals. Pursuing a long-term business plan, it continues<br />
to ally consolidation in mature markets with rapid expansion<br />
in high-growth developing economies.<br />
STRONGHOLD POSITIONS<br />
MAINTAINED IN MATURE MARKETS<br />
In mature markets with <strong>the</strong>ir high level of equipment, demand is<br />
driven not only by product replacement. Shoppers are also drawn<br />
by <strong>the</strong> new concepts derived from our marketing partnerships and<br />
by upgraded ranges. Faced with an attractive added-value offer,<br />
consumers have become reticent about cheap products and<br />
are turning back to brands that guarantee quality. Specialist<br />
department stores with personal customer service are growing<br />
in popularity. Adapting to this trend, <strong>the</strong> Group has developed<br />
assortments of products that offer a real ‘plus’ which is immediately<br />
obvious and triggers <strong>the</strong> decision to buy.<br />
40
Tefal – Thermospot<br />
Lagostina – Domina<br />
Jamie Oliver – Cast iron range<br />
STRATEGY – IMAGINING THE FUTURE<br />
FRENCH SALES REGAIN GROUND<br />
Sales rose by 7% in France last year in a buoyant market where<br />
popular innovations were backed by strong advertising and lively<br />
point-of-sale promotion. The success of <strong>the</strong> Actifry gave an added<br />
boost to our fryer sales.<br />
Similarly, <strong>the</strong> ultra-quiet<br />
Silence Force vacuum<br />
cleaner attracted a great<br />
deal of attention. Products such as <strong>the</strong> BeerTender or <strong>the</strong> Dolce<br />
Gusto, stemming from our marketing partnerships, shaped new<br />
consumer tastes and were a big commercial success.<br />
REVIVED DEMAND IN WESTERN EUROPE<br />
Markets were well oriented in terms of both volume sales and<br />
pricing, with <strong>the</strong> exception of Britain where demand was very<br />
subdued and <strong>the</strong> retail industry faced unprecedented problems,<br />
though innovative products such as <strong>the</strong> Actifry and Quick Cup were<br />
well received.<br />
Trading was up in all o<strong>the</strong>r countries where <strong>the</strong> Group scored good<br />
performances in beverage and food-preparation, cookware<br />
(particularly Jamie Oliver ranges), electric fryers, haircare and<br />
linen care products – all this despite growing competitive pressure.<br />
Germany reaped <strong>the</strong> benefits of revived demand and upgraded<br />
ranges. The Group has always resisted involvement in <strong>the</strong><br />
price-wars waged in this market by retailers, abetted by our<br />
competitors. This strategy has paid off as our business is now<br />
reporting renewed growth and profitability.<br />
In Scandinavia economic<br />
indicators are also<br />
positive and <strong>the</strong> retail<br />
industry is taking full<br />
advantage of this.<br />
Our centralized organization gives us a global view of <strong>the</strong> market,<br />
so that <strong>the</strong> Group can adapt its offer and maintain a steady pace<br />
of growth.<br />
41<br />
12 factories.<br />
3 logistics platforms.<br />
2 factories in Germany and Italy.<br />
17 marketing companies.<br />
1 logistics platform.
All-Clad – Bridal promotion<br />
1 factory in <strong>the</strong> United States.<br />
5 marketing companies.<br />
1 logistics platform.<br />
GROUPE <strong>SEB</strong> commitment...<br />
SUPPORTING SOCIAL INTEGRATION<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
NORTH AMERICA STANDING FIRM<br />
Trading in <strong>the</strong> North American market was contrasted. In Canada,<br />
business was brisk in a competitive context where Tefal, Rowenta<br />
and Krups performed well alongside top American labels and<br />
retailer brands. The presence of our Canadian marketing<br />
subsidiary works in <strong>the</strong> Group’s favour as it ensures close and solid<br />
client relations and a strong pricing position.<br />
In Mexico, <strong>the</strong> lifting of customs barriers against Asian imports<br />
radically changed <strong>the</strong> business climate. Mexican industry is badly<br />
affected by growing competition in entry-level products. However,<br />
<strong>the</strong> Group achieved sturdy growth by concentrating on specialist<br />
distribution in <strong>the</strong> up-market sector.<br />
Business was more uneven in <strong>the</strong> United States where consumer<br />
demand is cramped by <strong>the</strong> tense economic climate. Mid-range<br />
products are under pressure from aggressive entry-level pricing<br />
and <strong>the</strong> continued shift to top-range products – which helped<br />
All-Clad cookware sales. Rowenta held its positions in linen care<br />
products and is opening <strong>the</strong> US market for steam generating<br />
systems. Krups, on <strong>the</strong> o<strong>the</strong>r hand, has still not made up<br />
for ground lost awaiting <strong>the</strong> arrival of its new ranges this year.<br />
Meanwhile, <strong>the</strong> Group is working on a gradual up-market reorientation<br />
of T-Fal cookware, with Mirro WearEver aimed at entry-level.<br />
Support for social integration projects is at <strong>the</strong> heart of <strong>Groupe</strong> <strong>SEB</strong>’s corporate sponsorship effort, particularly<br />
through its newly-created <strong>Groupe</strong> <strong>SEB</strong> Corporate Foundation. Many of <strong>the</strong> Group’s employees do voluntary work<br />
for its sponsored projects. In France, for example, some 50 employees participate in <strong>the</strong> work of Lyon’s Habitat<br />
et Humanisme which assists people in difficulty to find accommodation<br />
while helping <strong>the</strong>m to return to a normal life.<br />
In its efforts to support <strong>the</strong> jobless, <strong>the</strong> Foundation sponsors<br />
several initiatives in France, such as <strong>the</strong> Envie network which<br />
helps people at risk to return to <strong>the</strong> employment market via a<br />
workshop which repairs electrical household appliances. It is also<br />
a partner with <strong>the</strong> Second Chance Foundation which supports<br />
people in difficulty who are really motivated to get back to work,<br />
by helping <strong>the</strong>m to set up or take over a small business or to<br />
undertake training.<br />
42
STRATEGY – IMAGINING THE FUTURE<br />
LAURENT PAUZE, DIRECTOR, General Sales Management of <strong>Groupe</strong> Carrefour Consumer Electronic<br />
Goods Division<br />
Lagostina – Korean product launch<br />
“The Carrefour Group has an ongoing relationship with <strong>Groupe</strong> <strong>SEB</strong> which is based on<br />
mutual confidence and understanding of our respective strategies. We speak <strong>the</strong> same<br />
language – profitable growth, international expansion, customer satisfaction – and we<br />
jointly define projects with ambitious goals. <strong>Groupe</strong> <strong>SEB</strong> knows that <strong>the</strong> quality of front-line<br />
merchandising depends on up-stream coordination, well-planned product launches,<br />
mounting clear workable projects, and optimizing <strong>the</strong> logistics chain. This kind of<br />
unrestricted cooperation is indispensable to <strong>the</strong> development of our respective activities.”<br />
“YOUNG PEOPLE LEARNING TO LIVE AGAIN”<br />
Claude Lannoy, <strong>Groupe</strong> <strong>SEB</strong> marketing team, Courbevoie, France.<br />
SOLID BUSINESS IN OTHER TERRITORIES<br />
The Group maintained very satisfactory growth in Japan despite <strong>the</strong><br />
strong depreciation of <strong>the</strong> yen which led to substantial price rises.<br />
Korea, after a difficult 2006, began to recover and regain positions<br />
in cookware. Trading was positive in Australia and New Zealand<br />
where <strong>the</strong> Group continues to win market share.<br />
“Affiliated to France’s SOS Villages d’Enfants, <strong>the</strong> Ateliers de La Garenne association helps about<br />
60 young people in difficulty, sometimes homeless, to return to a normal life. The association provides<br />
<strong>the</strong>m with training in life and social skills and job orientation in special workshops or on employers’<br />
premises.<br />
The objective is to rebuild <strong>the</strong>ir confidence and<br />
self-esteem which will help <strong>the</strong>m to return to a normal<br />
social life and employment. <strong>Groupe</strong> <strong>SEB</strong> Foundation support covers<br />
mainly cooking, dressmaking and housekeeping workshops where<br />
<strong>the</strong> youths are encouraged to develop basic autonomy in day-to-day<br />
life. As a volunteer worker for <strong>the</strong> Foundation, I participated in a<br />
cooking workshop in 2007: <strong>the</strong> young people were delighted and<br />
touched by my visit as it made <strong>the</strong>m realize that behind <strong>Groupe</strong><br />
<strong>SEB</strong>’s commitment <strong>the</strong>re are people who are really interested in<br />
<strong>the</strong>m.”<br />
43
Czech Republic – Point of sale<br />
2 factories in Russia<br />
and <strong>the</strong> Middle East.<br />
16 marketing companies.<br />
GROUPE <strong>SEB</strong> commitment...<br />
BURUNDI PROJECT BACKED BY 7,000 <strong>SEB</strong> EMPLOYEES<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
RAPID PROGRESS<br />
IN EMERGING MARKETS<br />
<strong>Groupe</strong> <strong>SEB</strong> has long been aware of <strong>the</strong> growth potential of<br />
emerging countries. While gaining prominence in <strong>the</strong>se markets<br />
with its strong brand portfolio, a broad product offer and efficient<br />
commercial and logistics structures, <strong>the</strong> Group has also taken up<br />
<strong>the</strong> social and corporate challenges of its development in <strong>the</strong>se<br />
territories.<br />
EASTERN EUROPEAN DYNAMISM<br />
Eastern Europe offers high potential for growth as purchasing<br />
power rises in <strong>the</strong> region. Changing consumer lifestyles and<br />
modernization have led to <strong>the</strong> rapid spread of retailing and Western<br />
consumer standards.<br />
The strong reputation of its brands and <strong>the</strong> Group’s policy of<br />
proximity to <strong>the</strong> customer are paying dividends in <strong>the</strong>se markets.<br />
Sales are growing steadily in Poland, Slovenia, Bulgaria, <strong>the</strong> Czech<br />
Republic and Slovakia, and business prospects are good.<br />
We reinforced our presence in this zone last year by creating a new<br />
subsidiary in Latvia.<br />
A wave of solidarity spread throughout <strong>Groupe</strong> <strong>SEB</strong> on <strong>the</strong> occasion of its 150th anniversary when it set up its<br />
corporate sponsorship Foundation. Employees were invited to help a UNESCO schooling initiative for 2,000<br />
ex-street children in Burundi by sending in a personal photograph for use in a collective work. For each photo<br />
sent in, <strong>the</strong> Group’s Foundation undertook to donate €2<br />
to <strong>the</strong> project. The result: more than 7,000 photos were<br />
received from employees around <strong>the</strong> world. The Group<br />
decided to contribute €15,000 to <strong>the</strong> project and its<br />
Foundation matched this to make a total donation of<br />
€30,000 to UNESCO. As a sign of <strong>the</strong>ir genuine interest<br />
in <strong>the</strong> project, staff members sent in more than<br />
400 messages with <strong>the</strong>ir photos which were sent on to<br />
<strong>the</strong> Burundian children via <strong>the</strong> UNESCO representative<br />
in that country.<br />
44
Russia – Demonstration<br />
BRAZIL: SOCIAL INTEGRATION VIA TRAINING<br />
STRATEGY – IMAGINING THE FUTURE<br />
CIS countries continue <strong>the</strong>ir rapid expansion, particularly Russia’s<br />
regions where some 100 urban centres are growing at a rate<br />
comparable to <strong>the</strong> major cities. This is amplified by <strong>the</strong> spread of<br />
retail chains. Being long established in Russia, <strong>the</strong> Group has an<br />
effective local structure and is ahead of its rivals who are still not<br />
well organized in this market.<br />
MIDDLE EAST CONTRASTS<br />
The shifting economic and political situation in <strong>the</strong> Middle East is<br />
reflected for <strong>the</strong> Group in contrasting<br />
patterns of business. After a<br />
slow start to <strong>the</strong> year due to national<br />
elections, Turkey, which is a<br />
large market, saw sales recover<br />
strongly to record a good year.<br />
Trading remained stable in <strong>the</strong><br />
o<strong>the</strong>r countries of <strong>the</strong> region.<br />
The prospect of creating an<br />
economic community in <strong>the</strong> Gulf<br />
states should work in favour of our<br />
business.<br />
Convinced that education and training are decisive in <strong>the</strong> combat against social exclusion,<br />
<strong>Groupe</strong> <strong>SEB</strong>’s Brazilian subsidiary Arno is very active in this area with <strong>the</strong> involvement of<br />
more than 70 staff volunteers. The “Grandad’s Bakery” initiative, for example, runs<br />
baking courses for poor elderly people to help <strong>the</strong>m make ends meet by baking<br />
and selling bread or pastries. This project was followed up in September 2007 by a<br />
partnership arrangement with <strong>the</strong> São Paulo municipal authority. Over four months, almost 50 people took<br />
part in <strong>the</strong> eight-hour training course run by a qualified Arno employee. At <strong>the</strong> beginning of 2008, <strong>the</strong>re was a<br />
waiting-list of more than 100 candidates.<br />
COLOMBIA: HANDICAPPED YOUTHS WALK AGAIN<br />
The Por el Derecho a Caminar (‘right-to-walk’) foundation in Colombia aids deprived young amputees to walk<br />
again by obtaining pros<strong>the</strong>ses for <strong>the</strong>m at low cost or free of charge. It also provides medical and social support<br />
to help <strong>the</strong>m find employment. Our Colombian subsidiary, a partner in <strong>the</strong> project, recently hired five such<br />
people through Por el Derecho a Caminar. Represented in France by <strong>the</strong> Equilibre association, this humanitarian<br />
initiative has been given a grant by <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> Foundation.<br />
45<br />
Turkey – Lissima
1 factory in China.<br />
12 marketing companies.<br />
Supor – Wok<br />
GROUPE <strong>SEB</strong> commitment...<br />
A CORPORATE CITIZEN<br />
SEEKING SOLUTIONS WITH OTHERS<br />
As a signatory of <strong>the</strong> Global Compact, <strong>Groupe</strong> <strong>SEB</strong> attended <strong>the</strong><br />
UN Global Compact Leaders Summit held in Geneva in July 2007.<br />
Along with 1,000 o<strong>the</strong>r business leaders from around <strong>the</strong> world,<br />
it took part in discussions on corporate social responsibility<br />
(CSR) practices.<br />
<strong>Groupe</strong> <strong>SEB</strong> is a member of <strong>the</strong> IMS (‘Institut du Mécénat et de la<br />
Solidarité’), an association which supports business enterprises<br />
in carrying out <strong>the</strong>ir corporate social responsibility.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
ASIA PROVES ITS POTENTIAL<br />
The smaller countries of Asia continue to expand thanks notably to<br />
<strong>the</strong> development of <strong>the</strong>ir distribution infrastructures. Today, we are<br />
building up our presence and brand reputation in <strong>the</strong>se territories<br />
which are relatively new for <strong>the</strong> Group. In Malaysia, for example, we<br />
broadened our offer to include irons and blenders, while consolidating<br />
positions in cookware. In Thailand, despite a slowdown in<br />
consumer spending, <strong>the</strong> Group made progress in steam irons.<br />
In Taiwan, we have increased our share of <strong>the</strong> cookware market.<br />
Finally, China is a fast-growing market and an essential element<br />
in <strong>the</strong> Group’s international expansion strategy. Our acquisition<br />
of a controlling stake in Supor puts us in a front-rank position to<br />
participate in <strong>the</strong> economic expansion of this country.<br />
SOUTH AMERICAN MARKET STILL BUOYANT<br />
Our South American operations reported an excellent year’s<br />
trading. Economic indicators for this continent are generally<br />
upbeat, even if <strong>the</strong> higher value of <strong>the</strong> Brazilian real continues to be<br />
a drawback.<br />
Brazil is seeing <strong>the</strong> emergence of a better-off middle class with<br />
higher spending power which is turning to specialist retailers and,<br />
increasingly, to hypermarkets. Arno continued to expand its sales<br />
in food-preparation equipment where we are gaining market share,<br />
as well as in fans, washing machines and coffee makers, while<br />
The Group participates in initiatives that seek to promote awareness of sustainable development among students<br />
in leading national institutes and universities, notably in France through <strong>the</strong> Dialogues Equation forum.<br />
It is also a partner in an educational pilot project on diversity run by <strong>the</strong> Paris Institute of Political Science.<br />
Under this scheme, some 100 high-school students from a deprived Paris suburb travelled to China in 2007 to<br />
get a first-hand idea of globalization. While <strong>the</strong>y were <strong>the</strong>re, <strong>the</strong> young people were taken on a visit to <strong>the</strong> SSEAC<br />
factory, a subsidiary of <strong>Groupe</strong> <strong>SEB</strong> in China.<br />
46
Peru – Product demonstration<br />
AT THE HEART OF LOCAL TERRITORIES<br />
STRATEGY – IMAGINING THE FUTURE<br />
Panex is consolidating its position in cookware thanks to <strong>the</strong><br />
introduction of <strong>the</strong> Thermospot.<br />
Elsewhere on <strong>the</strong> South American continent, excellent trading was<br />
reported in Venezuela which is protected from Asian imports by<br />
strong trade barriers. The<br />
Group has a business agreement<br />
with <strong>the</strong> government of<br />
this country where we have a<br />
competitive production plant<br />
and a reorganized sales<br />
force. The Group also achiev-<br />
ed steady growth in Chile and Argentina, markets o<strong>the</strong>rwise noted<br />
for <strong>the</strong>ir volatility.<br />
Throughout <strong>the</strong> world, <strong>Groupe</strong> <strong>SEB</strong> forms close community links in <strong>the</strong> territories where it operates: open days<br />
and participation in local economic, educational and community events. Group sites cooperate with schools for<br />
example, offering site visits and training courses for students. Many of <strong>the</strong>m also support social projects and<br />
sporting events.<br />
Aware of <strong>the</strong> importance of its role in local economic life, <strong>Groupe</strong> <strong>SEB</strong> acts<br />
responsibly when it must restructure or even close a factory to be more<br />
competitive. When this must be done, it takes early action in cooperation<br />
with all parties concerned to limit <strong>the</strong> impact on local employment. Of <strong>the</strong><br />
three factories closed in France, two (Dampierre and Vosges) have already<br />
been re-opened by a new industrial owner, and a similar solution was<br />
being studied for <strong>the</strong> Fresnay plant at <strong>the</strong> beginning of 2008. In Mexico, <strong>the</strong><br />
Celaya factory closed in 2007 is about to take on sub-contracting work for<br />
Services Vistamex, and plans to resume industrial operations under a new<br />
owner.<br />
47<br />
3 factories in Brazil<br />
and Colombia.<br />
7 marketing companies.<br />
2 logistics platforms.<br />
Brazil – Arno factory
STRATEGY<br />
48
LIVING THE FUTURE<br />
St Jean de Bournay, France – R&D laboratory<br />
Tefal – Evolis bathroom scales<br />
STRATEGY – LIVING THE FUTURE<br />
The future is often closer than we think – which is why a<br />
business enterprise must strive continually to be an agent of<br />
modernity and progress. Critical size is no longer enough.<br />
Today, a company must be responsive, quick to take action,<br />
flexible, and steer a balanced course which takes account of<br />
<strong>the</strong> interests of all its stakeholders. The immediate demands<br />
of profitability, vital to <strong>the</strong> survival of any company, must be<br />
consistent with a responsible long-term approach in every<br />
area of its day-to-day operations. Innovation, optimization<br />
of structures and control of costs are essential for staying<br />
competitive. And for this capacity to be durable <strong>the</strong>re must be<br />
a long-term economic and corporate strategy to which all its<br />
employees are committed. Clearly, that is what <strong>Groupe</strong> <strong>SEB</strong><br />
strategy is all about.<br />
RESPONSIBLE<br />
PROGRESS<br />
49
Constant progress<br />
Tefal – Actifry<br />
Sold in 2007:<br />
210,000 Quick & Hot.<br />
175,000 Actifry.<br />
68,000 Silence Force.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
The 2007 trading year showed that <strong>the</strong> Group’s best performing<br />
products were <strong>the</strong> fruit of innovation and steady investment<br />
in advertising and marketing, combined with rigorous<br />
management of our business. Differentiated and targeted<br />
innovation generates a better product mix and higher<br />
average sale prices – which means constant progress for<br />
consumers and new growth for <strong>the</strong> Group. This win-win<br />
formula, combined with tight control of purchase costs and<br />
overheads, results in higher profits and – completing <strong>the</strong><br />
‘virtuous circle’ – new investment to generate future growth.<br />
INNOVATION DRIVING GROWTH<br />
A PROVEN KEY TO SUCCESS<br />
Long practised and perfected by <strong>Groupe</strong> <strong>SEB</strong>, innovation is one of<br />
its hallmarks and a key source of leverage for its continuing<br />
growth. Enlisted to develop new functional features and breakthrough<br />
concepts that make its products stand out, innovation is<br />
<strong>the</strong> driving force behind <strong>the</strong> Group’s product offer, ensuring <strong>the</strong><br />
best response to evolving consumer needs.<br />
50
Pont Evêque, France – Steam iron factory<br />
GROUPE <strong>SEB</strong> commitment...<br />
STRATEGY – LIVING THE FUTURE<br />
A more assertive commercial stance in 2007 led to <strong>the</strong> launch of<br />
some 210 new products and models, confirming more efficient<br />
design and development and a faster time-to-market cycle for new<br />
electrical household products. This involves greater use of Product<br />
Lifecycle Management (PLM) and new technologies developed<br />
through Group-wide projects that leverage our combined<br />
strengths. In this way, printed-circuit heating elements developed<br />
by Tefal, for example, found many o<strong>the</strong>r applications such as in <strong>the</strong><br />
Quick & Hot water dispenser. Similarly, <strong>the</strong> Actifry drew on several<br />
of <strong>the</strong> Group’s patented cooking and stirring technologies, while<br />
<strong>the</strong> Silence Force vacuum cleaner incorporated our unique<br />
patented ‘Silence Box’ process.<br />
Krups – PrepExpert kitchen machine<br />
ECO-PRODUCTION: FACTORIES THAT RESPECT THE ENVIRONMENT<br />
All production and logistics sites forming part of <strong>Groupe</strong> <strong>SEB</strong> for more than five years held ISO 14001<br />
environment certification in 2007. The most recent plant to be certified was our SSEAC factory in China. All-Clad,<br />
Lagostina and Panex, acquired since 2004, are gradually introducing <strong>the</strong> procedure to obtain certification.<br />
Beyond its efforts to steadily reduce consumption of water and energy, and<br />
limit waste and emissions, <strong>the</strong> Group has begun to assess <strong>the</strong> impact of its<br />
activities on biodiversity. Our French Rumilly site is paving <strong>the</strong> way in this<br />
area. Last year, with <strong>the</strong> help of three leading environmental scientists,<br />
it carried out a study of atmospheric emissions on local flora. Using<br />
comparative analysis of lichen samples taken from vegetation zones close<br />
to <strong>the</strong> factory and from control zones (a frequent method of identifying<br />
pollution) <strong>the</strong> study found that <strong>the</strong>re was no impact on <strong>the</strong>se species.<br />
This pilot study will serve as a reference frame for subsequent follow-up<br />
studies every three or four years.<br />
51
R&D – Caen laboratory, France<br />
GROUPE <strong>SEB</strong> commitment...<br />
“GROUPE <strong>SEB</strong> DID NOT LET US DOWN”<br />
Dominique Emery, Mayor of Fresnay-sur-Sar<strong>the</strong>, France.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
THE KEY ROLE OF R&D AND INDUSTRIAL PATENTS<br />
In a market where accelerating change is <strong>the</strong> norm, <strong>the</strong> task of<br />
research and development is to make sure that <strong>the</strong> Group has a<br />
solid agenda of ongoing projects in <strong>the</strong> short, medium and long<br />
term. This involves fully exploiting <strong>the</strong> areas in which it already<br />
commands specific expertise while going on to explore new frontiers.<br />
These are increasingly technical, even scientific, embracing<br />
for example nanotechnology, fine-scale materials analysis, <strong>the</strong><br />
chemical composition of food and o<strong>the</strong>r areas. At <strong>the</strong> same time,<br />
incorporating environmental criteria at <strong>the</strong> product-design stage<br />
broadens <strong>the</strong> scope of R&D applications. For this reason we have<br />
stepped up recruitment in <strong>the</strong> last two years to reinforce our<br />
research and development teams with skills in new specialist<br />
areas.<br />
Industrial patent registration aims to protect innovation and<br />
defend it from infringement. <strong>Groupe</strong> <strong>SEB</strong>, as <strong>the</strong> proprietor of<br />
more than 1,000 current patents, is one of <strong>the</strong> most pioneering<br />
French companies in this area. In 2007, it <strong>file</strong>d 86 new patents and<br />
276 preliminary notifications (<strong>the</strong> so-called Soleau filing, used to<br />
date a patentable idea). Despite <strong>the</strong>se precautions, our products,<br />
models and brands are often copied, counterfeited or unlawfully<br />
exploited. The Group is continually on <strong>the</strong> alert in sensitive zones<br />
such as China and <strong>the</strong> Middle East, and closely monitors trade<br />
fairs. When necessary, it takes legal action (23 cases in 2007) and<br />
arranges to have illicit products seized (16 seizure operations<br />
were carried out last year).<br />
“When I heard of <strong>the</strong> plan to close <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> factory in our commune, my immediate<br />
concern was for <strong>the</strong> workers: what was going to become of <strong>the</strong>m? <strong>Groupe</strong> <strong>SEB</strong><br />
reassured me, explaining that solutions existed for all <strong>the</strong> staff and no-one would be<br />
neglected. I accepted <strong>the</strong>ir word on this, but one also had to consider <strong>the</strong> future of <strong>the</strong><br />
site and local job creation. The closure of a plant of this size is a hard knock for an area<br />
where <strong>the</strong>re is already little industry. Here again, <strong>Groupe</strong> <strong>SEB</strong> played <strong>the</strong> game<br />
by becoming closely involved in a reindustrialization unit set up with local public and<br />
private interests. Several take-over plans were considered during 2007, and <strong>the</strong> local<br />
site managers were very cooperative with potential buyers. At <strong>the</strong> beginning of 2008, we<br />
are on <strong>the</strong> way to finding a viable solution (still confidential) with a company which plans to take over <strong>the</strong> entire<br />
site and create a substantial number of jobs. This will give new economic momentum to <strong>the</strong> commune.”<br />
52
R&D key figures:<br />
475 people,<br />
€46 million budget,<br />
more than 1,000 current<br />
patents.<br />
Mayenne, France – Food-preparation appliances<br />
United States – All-Clad plant<br />
STRATEGY – LIVING THE FUTURE<br />
THE NEED TO BE COMPETITIVE<br />
OPTIMIZING THE INDUSTRIAL VALUE CHAIN<br />
<strong>Groupe</strong> <strong>SEB</strong>’s industrial strategy takes account of economies<br />
of scale, labour-cost differences*, and <strong>the</strong> need to use protective<br />
barriers for its production processes and innovations. These<br />
considerations guide <strong>the</strong> Group in deciding whe<strong>the</strong>r to make<br />
certain products internally or to outsource <strong>the</strong>m. In 2007, <strong>Groupe</strong><br />
<strong>SEB</strong> manufactured 65% of <strong>the</strong> products it brought to market. Last<br />
year it closed three French factories which had been chronically<br />
under-capacity. This was done responsibly under self-imposed<br />
conditions that sought solutions for all <strong>the</strong> staff and reindustrialization<br />
of <strong>the</strong> sites. Meanwhile, <strong>the</strong> Group is building up centres<br />
of expertise with <strong>the</strong> ability to confront global competition by<br />
exploiting new technologies and high-volume production. One such<br />
centre is <strong>the</strong> Is-sur-Tille plant which was behind <strong>the</strong> huge success<br />
of <strong>the</strong> Actifry.<br />
The Group is also rationalizing outside France: in Mexico, it closed<br />
its Celaya plant which could no longer compete after <strong>the</strong> lifting of<br />
trade barriers against Asian imports, while it concentrated its<br />
American Millville site exclusively on logistics, and regrouped<br />
production units in Brazil. Meanwhile, it continues to improve and<br />
modernize production processes and exploit internal synergies<br />
throughout <strong>the</strong> Group. The All-Clad plant in Canonsburg USA, for<br />
example, introduced completely new bonded-steel production<br />
techniques which will help to optimize output, reduce wastage of<br />
raw materials, and speed up <strong>the</strong> finishing process.<br />
* For example, <strong>the</strong> hourly rate in China is about 50-times less than in Western Europe.<br />
53
Rumilly, France – cookware factory<br />
GROUPE <strong>SEB</strong> commitment...<br />
SUPPLIERS: CLEAR RULES FOR COMPLIANCE<br />
CLOSE WORKING RELATIONS<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
COLLABORATION IN PURCHASING<br />
The task of <strong>the</strong> Purchasing Department is to help <strong>the</strong> Group to be<br />
more competitive by procuring everything it needs to develop,<br />
manufacture and market quality products at an optimum overall<br />
cost. To achieve this, it applies a five-point strategy:<br />
• to obtain <strong>the</strong> best conditions not only in terms of price, but also<br />
in terms of quality, reliability and on-time delivery;<br />
• to make optimum use of <strong>the</strong> Group’s approved supplier panel<br />
(numbering 455 last year, out of a total of 2,404 current suppliers);<br />
• to improve <strong>the</strong> performance of <strong>the</strong>se suppliers through an annual<br />
review procedure;<br />
• to get suppliers involved upstream in projects, by combining<br />
skills and efforts to improve overall performance and future<br />
efficiency;<br />
• to ensure compliance with <strong>the</strong> Group’s ethical, environmental<br />
and social commitments.<br />
54<br />
In 2007, <strong>the</strong> Group had 2,310 suppliers of raw<br />
materials and components and 94 providers of<br />
sourced finished products, most of <strong>the</strong> latter<br />
located in Asia. Each of <strong>the</strong>se categories includes<br />
a hard core of suppliers who are considered<br />
particularly reliable and financially solid, and<br />
who make up <strong>the</strong> approved supplier panel. These<br />
suppliers account for more than 80% of our<br />
purchases and <strong>the</strong> Group maintains close<br />
working relations with <strong>the</strong>m.<br />
The Group satisfies itself that all its suppliers<br />
meet <strong>the</strong> terms laid down at <strong>the</strong> time of ordering<br />
(quality, price, deadlines, etc.), including compliance<br />
with <strong>the</strong> Group’s sustainable development<br />
criteria, particularly in relation to <strong>the</strong> environment<br />
and labour rights. Sustainable development<br />
criteria form an integral part of our purchasing<br />
guidelines and general purchasing conditions.
Supplier – Kaneta in China<br />
ENVIRONMENT: PROGRESS ON ISO 14001 CERTIFICATION<br />
STRATEGY – LIVING THE FUTURE<br />
55<br />
The Group’s increased procurement in dollars or in<br />
low-cost countries during 2007 was not enough to<br />
offset very steep price rises for raw materials such<br />
as aluminium and nickel. Total purchase costs for<br />
<strong>the</strong> year increased by 2.4%.<br />
In <strong>the</strong> area of sourced finished products, <strong>the</strong> Group<br />
reinforced its procurement structures based in<br />
Hong Kong and Shenzhen with a view to focusing<br />
on a limited number of approved suppliers and<br />
building up long-term working relations with <strong>the</strong>m.<br />
All <strong>the</strong> Group’s suppliers – of raw materials, components or finished products –<br />
sign an eco-statement in which <strong>the</strong>y undertake not to use substances forbidden by<br />
regulations in <strong>the</strong> countries where <strong>the</strong> products <strong>the</strong>y are concerned with will be<br />
sold by <strong>the</strong> Group. The conditions laid down by <strong>the</strong> European RoHS* directive on hazardous substances form part<br />
of <strong>the</strong> eco-statement, and <strong>the</strong> European REACH* regulations on chemicals will also be gradually integrated.<br />
Inspections and analyses of components are carried out regularly to verify <strong>the</strong> conformity of delivered products.<br />
The Group also presses its suppliers to begin <strong>the</strong> procedure to obtain ISO 14001 environment certification.<br />
Close to one-third of <strong>the</strong> Group’s supplier panel for raw materials and components already hold this certificate,<br />
while <strong>the</strong> rate for <strong>the</strong> finished products supplier panel is 11%.<br />
INCREASE IN SOCIAL AUDITS<br />
Respect for labour rights is a key requirement for <strong>Groupe</strong> <strong>SEB</strong>. With an increased proportion of its supplies<br />
sourced in Asia, <strong>the</strong> Group decided to introduce an SA 8000-style labour rights statement for this zone. The<br />
statement has been signed by all its Asian suppliers. To monitor actual practices in <strong>the</strong> field, 44 detailed social<br />
audits were conducted in 2007, of which 17 by an external agency.<br />
In <strong>the</strong> event of failure to comply with regulations, <strong>the</strong> Group immediately suspends all new orders for <strong>the</strong> supplier<br />
concerned, and makes corrective action a condition of resuming business (after verification by a follow-up audit).<br />
Of 44 supplier audits in 2007, a single case of non-compliance with regulations on under-age working was found.<br />
This labour rights statement was extended to Latin American suppliers in 2007. Half of <strong>the</strong>m have already signed.<br />
* see Glossary.
Brazil – Arno factory<br />
GROUPE <strong>SEB</strong> commitment...<br />
“WE CROSS-CHECK A WHOLE RANGE OF FACTORS”<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
56<br />
CONTROLLING STRUCTURAL COSTS<br />
The logistics function is vital to <strong>the</strong> efficiency of<br />
<strong>the</strong> Group if it is to achieve goals such as faster<br />
time-to-market for products, rapid global<br />
expansion, greater use of sourcing and<br />
development of alternative retail channels.<br />
To guarantee impeccable client service,<br />
we must optimize stock flows between our<br />
factories (or those of outside suppliers for<br />
sourced products) and retailer warehouses,<br />
while maintaining tight inventories despite <strong>the</strong><br />
greater distances covered. Beyond <strong>the</strong> use of<br />
freight and logistics clusters* and centralized<br />
warehouses (Belgium is supplied since 2007 by<br />
<strong>the</strong> French platform) <strong>the</strong> Group uses leading<br />
international logistics operators to ensure freight transfer in <strong>the</strong><br />
best possible conditions. The Group also recently added an<br />
environment clause to its freight contracts.<br />
Pierig Vezin, Managing Director of Wethica, social audit consultants, Shenzhen, China.<br />
“At <strong>the</strong> request of <strong>Groupe</strong> <strong>SEB</strong>, we carried out 17 social audits of suppliers in China during 2007. The object was<br />
to verify application of <strong>the</strong> labour rights statement <strong>the</strong>y signed, with particular attention<br />
to points based on <strong>the</strong> CECED* Code of Conduct, <strong>the</strong> Global Compact* and local labour<br />
regulations. We were particularly vigilant in <strong>the</strong> areas of under-age hiring, health and<br />
safety, working hours and pay scales. For our studies, we spend a minimum of two days<br />
on <strong>the</strong> spot, during which we ga<strong>the</strong>r a whole range of information which is<br />
double-checked to verify its accuracy. This involves presentation of <strong>the</strong> factory by<br />
its management, a detailed visit of<br />
all departments – workshops, offices,<br />
catering facilities, dormitories – scrutiny<br />
of administrative documents and<br />
interviews with members of staff. The 17 audits carried out last<br />
year gave rise to a few warnings, including one on <strong>the</strong> risk of<br />
employing under-age workers due to inadequate verification of<br />
personal identity. On <strong>the</strong> basis of <strong>the</strong>se audits, <strong>Groupe</strong> <strong>SEB</strong><br />
decides on appropriate action depending on <strong>the</strong> circumstances.<br />
While <strong>the</strong>re are still many areas for improvement, I note that<br />
<strong>the</strong>re is a generally positive trend in working conditions<br />
in China.”<br />
* see Glossary.
The Group is also rationalizing its management tools. The<br />
convergence of its information systems into a uniform Group-wide<br />
IT system continued. By <strong>the</strong> end of 2007, <strong>the</strong> Group IT system covered<br />
84% of total consolidated sales (80% at <strong>the</strong> start of <strong>the</strong> year)<br />
and 75% of production costs and supplies (against<br />
51% at <strong>the</strong> start of <strong>the</strong> year). O<strong>the</strong>r advances in<br />
2007 included automatic invoice scanning for <strong>the</strong><br />
Group’s Shared Services Centre for accounting.<br />
This helps to increase productivity and improve our<br />
environment performance.<br />
* Clusters: structures spanning several markets,<br />
used to pool and coordinate administrative,<br />
logistics and o<strong>the</strong>r functions.<br />
STRATEGY – LIVING THE FUTURE<br />
REDUCING THE ECOLOGICAL IMPACT OF FREIGHT TRANSPORT<br />
The Group’s products cover long distances from factory or supplier to <strong>the</strong> Group’s logistics platforms, and <strong>the</strong>n<br />
on to distributor warehouses. Concerned to limit <strong>the</strong> impact on <strong>the</strong> environment, <strong>the</strong> Group gives priority to<br />
freight transport that causes <strong>the</strong> least pollution.<br />
While maritime transport is used for most intercontinental freight, road haulage still tends to dominate inland.<br />
The Group has added a sustainable development clause in its contracts with road haulage firms. In France, for<br />
example, this covers engine type, recycling of oil and fuel<br />
consumption. The Group also aims for a maximum loading<br />
rate for road haulage, particularly for out-going freight<br />
from its French export platforms for delivery to its European<br />
subsidiaries.<br />
When possible, rail or water transport are given priority. In<br />
Mexico, for example, 97% of containers arriving by sea in 2007<br />
were transferred by train to <strong>the</strong> Mexican warehouse, whereas<br />
this had been done by road haulage up to 2003. Ano<strong>the</strong>r example:<br />
since 2006, transport of <strong>the</strong> Group’s products destined<br />
for Russia and <strong>the</strong> CIS countries has been switched from road<br />
to inland waterway between Rotterdam and Saint-Petersburg.<br />
United States – All-Clad production line<br />
57
Caring for individuals<br />
More than 60% of<br />
employees outside<br />
France (including Supor).<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
<strong>Groupe</strong> <strong>SEB</strong>’s working teams number more than 13,000*<br />
women and men spread over <strong>the</strong> four corners of <strong>the</strong> world.<br />
The high calibre of <strong>the</strong>ir commitment is <strong>the</strong> driving force<br />
behind <strong>the</strong> company’s development. In an economic context<br />
which is evolving all <strong>the</strong> time, <strong>Groupe</strong> <strong>SEB</strong> gives priority to<br />
raising <strong>the</strong> skills of its employees. It also attaches great<br />
importance to ongoing staff-management dialogue<br />
throughout <strong>the</strong> company and fair treatment for everyone.<br />
HUMAN RESOURCES: THE SAME RULES FOR ALL<br />
The international expansion of <strong>Groupe</strong> <strong>SEB</strong> means that a growing<br />
number of its employees are located outside France – almost half<br />
in 2007, though this will rise sharply in 2008 with <strong>the</strong> addition of<br />
Supor staff. To ensure fair treatment for all its employees, <strong>the</strong><br />
Group is gradually harmonizing its human resources management<br />
procedures, which cover annual evaluation interviews, written job<br />
descriptions, career development and remuneration policy. This<br />
system currently applies to <strong>the</strong> Group’s 1,700 managers and will be<br />
extended to o<strong>the</strong>r employees. An international human resources<br />
network group was created last year to facilitate <strong>the</strong> sharing of<br />
*Excluding Supor.<br />
58
Human Resources – Group project<br />
GROUPE <strong>SEB</strong> commitment...<br />
PROUD TO WORK FOR GROUPE <strong>SEB</strong><br />
STRATEGY – LIVING THE FUTURE<br />
In 2007, <strong>Groupe</strong> <strong>SEB</strong> polled its 1,700 managers to seek <strong>the</strong>ir views on its<br />
progress since <strong>the</strong> last survey in 2003. The questionnaire got a 66% response.<br />
The vast majority of respondents (96%) said <strong>the</strong>y were proud to<br />
work for <strong>Groupe</strong> <strong>SEB</strong>, a company whose strategy <strong>the</strong>y understand and<br />
approve. They feel <strong>the</strong>y have contributed strongly to <strong>the</strong> recent changes in<br />
<strong>the</strong> Group, notably its international expansion and increased competitive<br />
ability, and consider that <strong>the</strong> career development horizon offered by<br />
<strong>Groupe</strong> <strong>SEB</strong> today is broader than a few years ago.<br />
common procedures. This group meets twice a year and brings<br />
toge<strong>the</strong>r human resources managers from <strong>the</strong> different continents<br />
and principal countries.<br />
GOOD MANAGEMENT PRACTICES<br />
On <strong>the</strong> occasion of its 150th anniversary, <strong>the</strong> Group reaffirmed <strong>the</strong><br />
values to which it has always adhered: enterprise, innovation, team<br />
spirit and professionalism. These values are at <strong>the</strong> heart of<br />
Fair Process (applied by <strong>the</strong> Group since 2004) which seeks to<br />
generalize a participative mode of management which lays emphasis<br />
on leading and motivating<br />
working teams for better<br />
performance. Fair Process is<br />
discussed at <strong>the</strong> annual<br />
evaluation interview and is an<br />
integral part of all management<br />
training programmes.<br />
59
European Works Committee – 23 members<br />
GROUPE <strong>SEB</strong> commitment...<br />
“I CHOSE TO CONTINUE WORKING”<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
ACTIVE LABOUR DIALOGUE<br />
<strong>Groupe</strong> <strong>SEB</strong> has always respected freedom of association and<br />
accorded a high priority to labour dialogue. In most countries, <strong>the</strong><br />
Group’s entities have trade unions and staff representative bodies.<br />
Its European Works Committee regularly welcomes new members<br />
as <strong>the</strong> European Union expands. It now comprises 23 members<br />
from 13 countries. Labour-management dialogue which was<br />
particularly active in France during 2007 led to <strong>the</strong> signing of three<br />
key agreements with employee representatives: <strong>the</strong> first concerns<br />
a forecast planning system for jobs and skills, <strong>the</strong> second aims to<br />
improve trade union rights and <strong>the</strong> status of staff representatives,<br />
and <strong>the</strong> third covers <strong>the</strong> introduction of a supplementary health<br />
insurance fund for all Group employees in France.<br />
INDUSTRIAL REORGANIZATION<br />
The industrial reorganization plan begun in France in 2006 was<br />
virtually completed in 2007 fully in line with <strong>the</strong> Group’s undertaking<br />
to offer a solution for every employee concerned. The Fresnay<br />
(Sar<strong>the</strong>), Dampierre (Jura) and Le Syndicat (Vosges) factories were<br />
closed and <strong>the</strong> Vernon (Eure) plant was rescaled. By <strong>the</strong> end of <strong>the</strong><br />
year, a solution had been found for almost all of <strong>the</strong> 890 employees<br />
affected by <strong>the</strong> job cuts, using measures such as internal transfers,<br />
jobs created under <strong>the</strong> reindustrialization of <strong>the</strong> sites, or early<br />
retirement. Of <strong>the</strong> employees who opted for voluntary redundancy,<br />
some 60 continue to benefit from <strong>Groupe</strong> <strong>SEB</strong> support until<br />
this autumn.<br />
Nicole Dorkeld, a former employee of <strong>the</strong> <strong>Groupe</strong> <strong>SEB</strong> Dampierre factory, now works<br />
as an operator with PSP.<br />
“Under <strong>the</strong> arrangements made for employees at <strong>the</strong> time of <strong>the</strong> closure of <strong>the</strong> Dampierre<br />
factory, I could have opted for early retirement at 55 and so stop working at <strong>the</strong> end of April 2009. But, when it came<br />
to signing <strong>the</strong> agreement for early retirement, I just could not do it because I felt I really wanted to go on having a<br />
working life. Before joining <strong>Groupe</strong> <strong>SEB</strong>, I was a housewife for 18 years, and I did not want to return to that situation.<br />
I need to have an occupation, a full life. Today, I work for PSP – Poivrières Salières Peugeot – where I was<br />
re-employed with a lot of o<strong>the</strong>r ex-Group employees. I assemble pepper, salt and spice mills, and I am responsible<br />
for <strong>the</strong> product from A to Z – from assembling <strong>the</strong> different parts to packaging <strong>the</strong> finished article. I realize that new<br />
legislation on retirement age may require me to work beyond <strong>the</strong> age of 60, but I am very happy to have made this<br />
choice.”<br />
60
Drop of 10% in <strong>the</strong> rate<br />
of work accidents worldwide.<br />
Pont Evêque – Steam iron factory<br />
“HIGH STANDARDS IN SAFETY”<br />
Maurice Billet, <strong>Groupe</strong> <strong>SEB</strong> Health & Safety Manager<br />
STRATEGY – LIVING THE FUTURE<br />
HEALTH & SAFETY: A NEW DYNAMIC<br />
In France, accident frequency was cut by 6% and accident severity<br />
by 26% last year, to rates of 18.6 and 0.52 respectively. While <strong>the</strong>se<br />
figures confirm an improving trend since 2005, <strong>the</strong> Group wants to<br />
step up this process to substantially and permanently improve<br />
safety conditions on a world scale. In 2007, a dedicated Health &<br />
Safety department was created.<br />
In <strong>the</strong> area of industrial health, <strong>the</strong> Group continues its efforts to<br />
reduce muscular strain injuries. Measures in this direction include<br />
rotation of staff between work stations, integration of ergonomic<br />
criteria at <strong>the</strong> product design stage to simplify limb movements<br />
during assembly, and <strong>the</strong> use of ergonomic notices at work posts,<br />
extensively used in <strong>the</strong> Group’s factories today.<br />
“The three-year health & safety plan launched by <strong>Groupe</strong> <strong>SEB</strong> early this year sets high standards: it aims to<br />
achieve an accident frequency rate of less than 6.5 and a severity rate of 0.3 by 2010, worldwide. This has already<br />
been achieved by some sites, though o<strong>the</strong>rs, notably in France, will have to reduce <strong>the</strong>ir 2007 rates by half to<br />
reach <strong>the</strong> target. With this in view, we took a number of steps at <strong>the</strong> end of last year to reinforce day-to-day safety<br />
surveillance in production: training of work-team leaders, a monthly accident prevention review by <strong>the</strong>se team<br />
leaders, and improvement of visual safety warnings. All <strong>the</strong>se steps will be extended worldwide during 2008, in<br />
addition to existing improvement measures. The Group has also begun <strong>the</strong> procedure to obtain certification for<br />
its health & safety management system, so that by 2010 all our industrial and logistics sites worldwide should<br />
be OHSAS* certified. Three already hold this certification: Cajica in Colombia, Millville in <strong>the</strong> United States and<br />
Rumilly in France.”<br />
* see Glossary.<br />
61
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
ATTRACTING YOUNG TALENT<br />
With its eye to <strong>the</strong> long term, <strong>Groupe</strong> <strong>SEB</strong> conducts an annual review of its human resources by core business and<br />
geographic zone. This allows it to prepare for its future needs, identify key posts and draw up succession plans that take<br />
account of <strong>the</strong> career ambitions of each individual. In addition to this internal mobility, recruitment of new staff is also<br />
of vital importance. As part of its effort to project an attractive image as a future employer, <strong>the</strong> Group has developed<br />
partnerships in recent years with top-level educational institutions. In 2007, it hired almost 100 young managers in<br />
marketing and in research & development.<br />
R&D – Steam irons, France<br />
Brazil – Arno factory<br />
DIVERSITY<br />
By signing <strong>the</strong> Diversity Charter in France in 2005, <strong>the</strong> Group<br />
undertook to combat discriminatory practices. In 2007, several<br />
internal awareness-raising campaigns were organized (posters,<br />
events, brochures, etc.), and 55 managers were given training<br />
on this topic, with special emphasis on non-discrimination in<br />
recruitment. Improving <strong>the</strong> gender balance in management posts<br />
is also one of <strong>the</strong> Group’s objectives. Women represented 28.9%<br />
of managers worldwide last year, compared with 20.1% in 2002.<br />
The Group also took steps in certain areas to redress any pay<br />
differences that still existed between male and female staff.<br />
TRAINING: A NON-STOP EFFORT<br />
Training provides leverage for upskilling at every level of <strong>the</strong><br />
company. In 2007 <strong>the</strong> training budget represented 2.3% of <strong>the</strong> total<br />
payroll, compared with 2% in 2004. The <strong>Groupe</strong> <strong>SEB</strong> Academy<br />
provides international training courses on management and strategic<br />
skills in such areas as marketing, finance and logistics.<br />
These modules also cover various sustainable development topics<br />
such as <strong>the</strong> environment and diversity. Two new programmes were<br />
added last year – an in-house course on product development, and<br />
a course on efficient business planning adapted to different<br />
continents, organized in partnership with <strong>the</strong> International<br />
Business School in Paris (ESSEC).<br />
62<br />
In addition to <strong>the</strong>se international programmes, local<br />
training is provided for all <strong>the</strong> Group’s employees.<br />
Each year, <strong>the</strong> Group Human Resources department<br />
defines training priorities in a document which is sent<br />
to all <strong>the</strong> Group’s entities throughout <strong>the</strong> world.<br />
This provides a general framework for use by each<br />
subsidiary to devise a training programme adapted<br />
to its needs. A global reporting system ensures<br />
feed-back on all <strong>the</strong> Group’s training courses.
249,765 hours<br />
of training worldwide.<br />
Intranet – Portal<br />
GROUPE <strong>SEB</strong> commitment...<br />
“LISTENING MORE CAREFULLY”<br />
Philippe Aze, a supervisor at <strong>the</strong> Saint-Lô <strong>Groupe</strong> <strong>SEB</strong> factory<br />
STRATEGY – LIVING THE FUTURE<br />
AN ARRAY OF TOOLS FOR INFORMATION<br />
AND EXCHANGE<br />
The Group’s in-house communications system uses a three-fold<br />
approach: line management communication, <strong>the</strong> Group’s intracom<br />
network and <strong>the</strong> in-house press.<br />
The line management structure is <strong>the</strong> essential relay for information<br />
between <strong>the</strong> Group’s executive bodies and its working teams.<br />
To reinforce this direct contact, <strong>the</strong> Group created a Management<br />
Forum in 2007. This brings toge<strong>the</strong>r some 100 managers in France<br />
three times a year to review trading results and <strong>the</strong> high points of<br />
recent months, and to exchange views on various topics. On <strong>the</strong> day<br />
after <strong>the</strong> meeting, documents presented at <strong>the</strong> Forum are sent<br />
to all managers worldwide, who <strong>the</strong>n relay <strong>the</strong> content to <strong>the</strong>ir<br />
staff teams.<br />
Ano<strong>the</strong>r important medium of communication is <strong>the</strong> intracom<br />
in-house network which offers a wide range of information on <strong>the</strong><br />
Group: daily bulletins with backup documentation on relevant<br />
topics, exchange forums, and a growing number of links dedicated<br />
to subjects such as sourcing, after-sales service and quality<br />
(several dozen of <strong>the</strong>se links were created in 2007). The in-house<br />
press comprises <strong>the</strong> Tempo magazine (primarily for management)<br />
and some twenty local site news bulletins around <strong>the</strong> world.<br />
In 2007, a facts & figures brochure on <strong>the</strong> Group was<br />
produced in nine languages and distributed to all our employees.<br />
“Until I went on <strong>the</strong> diversity training course, I hadn’t felt directly concerned with <strong>the</strong> subject: <strong>the</strong> staff in our work<br />
unit has been <strong>the</strong> same for years, and <strong>the</strong>re aren’t many people from different ethnic backgrounds in <strong>the</strong> local<br />
job market. But this training made me realize that diversity goes well beyond skin<br />
colour: it includes equal treatment for women, taking account of handicaps (even if <strong>the</strong>y<br />
are only slight) and, in a more general sense, differences between individuals working<br />
on <strong>the</strong> same team. The training broadened my outlook, especially by making me more<br />
attentive to o<strong>the</strong>rs. During meetings, for example, I now make sure that everyone participates,<br />
and during <strong>the</strong> annual assessment interviews I will listen more carefully to what<br />
people say. Just after <strong>the</strong> training, I still had no idea it would be so useful to me, but it<br />
was gradually, in concrete situations, that I realized <strong>the</strong> true meaning of <strong>the</strong> word<br />
diversity.”<br />
63
GLOSSARY<br />
BIO-DIVERSITY: all <strong>the</strong> earth’s living species,<br />
<strong>the</strong>ir genetic diversity and <strong>the</strong>ir habitats.<br />
CECED: (Comité Européen des Constructeurs<br />
d’Equipement Domestique): European Committee<br />
of Domestic Equipment Manufacturers.<br />
DIVERSITY CHARTER: a document which<br />
encourages French companies to promote<br />
diversity in <strong>the</strong>ir workforce and to combat all<br />
forms of discrimination.<br />
ECOLOGICAL FOOTPRINT: a measure of <strong>the</strong><br />
impact of an individual or group on <strong>the</strong><br />
environment, based on <strong>the</strong> amount of<br />
biologically productive area needed to generate<br />
all <strong>the</strong> resources a human consumes and to<br />
absorb all <strong>the</strong> corresponding waste.<br />
ECO-DESIGN: design which seeks to minimize<br />
<strong>the</strong> environmental impact of products at every<br />
stage in <strong>the</strong>ir life-cycle.<br />
ECO-ORGANIZATION: a non-profit organization<br />
accredited by <strong>the</strong> public authorities which<br />
carries out legal obligations on behalf of its<br />
members in <strong>the</strong> area of collecting and processing<br />
waste.<br />
ECO-PRODUCTION: manufacturing which<br />
respects <strong>the</strong> environment and limits potential<br />
ecological risks.<br />
ECO-STATEMENT: Group specifications<br />
binding on suppliers, which prohibit <strong>the</strong> use<br />
of hazardous substances in products and<br />
components.<br />
GLOBAL COMPACT: United Nations pact<br />
which promotes ten principles covering human<br />
rights, labour law, <strong>the</strong> environment and anticorruption.<br />
CORPORATE AND SUSTAINABLE DEVELOPMENT REPORT 2007<br />
64<br />
ISO 14001: International Standards Organization<br />
certification for environment management<br />
systems.<br />
LABOUR RIGHTS STATEMENT: <strong>Groupe</strong> <strong>SEB</strong><br />
requirements imposed on its suppliers in relation<br />
to labour rights and working conditions<br />
based on SA 8000 international standards.<br />
OIW: Ordinary Industrial Waste. Non-hazardous<br />
waste which can be processed in household<br />
waste treatment facilities.<br />
OHSAS 18001: A set of international standards<br />
on occupational health and safety management.<br />
REACH: <strong>the</strong> new European chemicals policy<br />
(Registration, Evaluation, Authorisation and<br />
Restriction of Chemicals) which aims to ensure<br />
a high level of protection for public health and<br />
<strong>the</strong> environment.<br />
ROHS: European Directive on Restriction of<br />
Hazardous Substances such as lead, mercury,<br />
cadmium and hexavalent chromium in electrical<br />
and electronic equipment.<br />
SA 8000: A set of international corporate social<br />
accountability standards which control and<br />
monitor working conditions, health and safety,<br />
non-use of child labour and o<strong>the</strong>r areas.<br />
SERVICE RATE: <strong>the</strong> proportion of orders that<br />
leave <strong>the</strong> Group’s warehouses on schedule and<br />
are delivered on time to distributors.<br />
SIW: Special Industrial Waste – sensitive waste<br />
which must be processed in specialized<br />
facilities.<br />
WEEE: Waste Electronic and Electrical<br />
Equipment.
ACKNOWLEDGMENTS<br />
This document was produced by <strong>the</strong> Financial Communications department in cooperation with <strong>the</strong><br />
Sustainable Development department. It is <strong>the</strong> fruit of <strong>the</strong> efforts of many members of <strong>Groupe</strong> <strong>SEB</strong><br />
staff and stakeholders whom we would like to thank for <strong>the</strong>ir contribution.<br />
We would also like to thank in particular:<br />
• The Group Executive Committee and Group General Management teams.<br />
• O<strong>the</strong>r members of staff who helped to prepare this report by providing information, graphic<br />
material or documentation, responding to questions or reporting on <strong>the</strong>ir experience.<br />
• Stakeholders and those interviewed:<br />
• Mathilde Dufour, analyst with EthiFinance.<br />
• André Malsch, Chairman of <strong>the</strong> CREER Network.<br />
• Kathryn Taylor, a user of <strong>the</strong> Tefal Quick Cup hot water dispenser.<br />
• Philippe Neveux, head of consumer goods stock flows, Carrefour France.<br />
• Dominique Mignon, Director of Development, Eco-Systèmes.<br />
• Laurent Pauze, Sales Director (electronics, photo, video and audio) Carrefour.<br />
• Dominique Emery, Mayor of Fresnay-sur-Sar<strong>the</strong>, France.<br />
• Pierig Vezin, Managing Director of Wethica.<br />
• Nicole Dorkeld, a former <strong>Groupe</strong> <strong>SEB</strong> employee taken over by PSP.<br />
• External support:<br />
French text: Françoise Lafragette<br />
Design and production: ACTIFIN.<br />
English translation: anglodoc.com<br />
This report is printed on recyclable chlorine-free paper which complies with <strong>the</strong> ISO 14001<br />
international environment standard.<br />
The printer of this report is environmentally certified by:
<strong>Groupe</strong> <strong>SEB</strong><br />
les 4 M, chemin du Petit Bois<br />
BP 172<br />
69134 Écully Cedex France<br />
www.groupeseb.com<br />
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.<br />
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