financial report and registration document 2011 - Groupe SEB

Financial Report and Registration Document 2011
6
Company fi nancial statements
Notes to the Company fi nancial statements
6.2. NOTES TO THE COMPANY FINANCIAL
STATEMENTS
SIGNIFICANT EVENTS OF THE YEAR
Renegotiation of the syndicated loan
The unused €456.1 million syndicated loan due in 2011 was renegotiated with
the banking pool, which comprises BNP Paribas, Citibank, Commerzbank,
Crédit Agricole, HSBC, Natixis and Société Générale. The new fl oating rate
loan has a nominal amount of €560 million and a fi ve-year term. None of this
loan had been drawn down at 31 December 2011.
Bond issue
On 26 May 2011, the Group launched its fi rst bond issue, representing a
total amount of €300 million. The bonds have a fi ve-year term maturing on
3 June 2016 and pay interest at an annual rate of 4.5%. The lead managers
for the issue were BNP Paribas, Crédit Agricole CIB, Natixis and Société
Générale. The bonds have been admitted to trading on the NYSE Euronext
Paris stock exchange.
The proceeds from the bond issue were used by the Group to purchase
an additional 20% interest in Supor from the Su family – the company’s
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1.1. PRINCIPLES
The Company fi nancial statements have been prepared in line with the
principle of prudence and in compliance with the preparation and presentation
rules set out in French law and France’s Plan Comptable Général of 1999.
Note 1.2. INTANGIBLE ASSETS
Intangible assets are stated at acquisition cost, excluding transaction costs
and interest expense.
They mainly consist of patents amortised over periods ranging from three
to ten years.
Note 1.3. SHARES IN SUBSIDIARIES
AND AFFILIATES
Shares in subsidiaries and affi liates are stated at the lower of cost and net
realisable value. Cost corresponds to acquisition cost, except for shares
acquired before 31 December 1976 and included in the legal revaluation,
which are stated at valuation. Net realisable value is determined based on the
Company’s equity in the investee’s net assets, market value or the investee’s
earnings outlook.
founding shareholders – at a price of RMB 30 per share. The transaction
was completed on 13 December 2011, for an aggregate purchase price of
€406 million which was settled on the same date.
Formation of an investment company SEB Alliance
To prepare for coming changes in the small domestic equipment market
and extend its innovation strategy to new technologies and expertise from
outside the Company, Groupe SEB has created an investment fund – SEB
Alliance – with initial capital of €30 million. SEB Alliance made its first
investment in the area of digital and connected products, by acquiring a
60% majority stake in US-based Key Ingredient.
Additional write-down of shares in Groupe SEB
Moulinex
In 2011 the Company wrote down its investment in Groupe SEB Moulinex
by a further €26 million, increasing the aggregate amount of the provision
for impairment of shares in this subsidiary to €50 million at the year-end.
Note 1.4. OWN SHARES
SEB S.A. shares held by the Company are classifi ed as follows:
� shares bought back for allocation on exercise of existing or future stock
options are classifi ed under “Marketable securities”;
� all other SEB S.A. shares held by the Company – mainly under the liquidity
contract – are classifi ed under “Other non-current assets”.
At the year-end, an impairment loss is recognised whenever the shares’
purchase price is lower than the average share price for the last month of
the year.
Note 1.5. CASH AND CASH EQUIVALENTS
AND FINANCIAL INSTRUMENTS
SEB S.A. manages cash and cash equivalents and currency risk on behalf
of the Group.
� The Company meets the short-term fi nancing needs of virtually all Group
subsidiaries. An automatic daily bank balance reporting system has been
set up to monitor the fi nancing needs of the French, German, Spanish,
Italian, Hungarian, Czech, Austrian, Swiss and Hong Kong subsidiaries
and the other subsidiaries report their cash balances manually. Current
GROUPE SEB
6
143