financial report and registration document 2011 - Groupe SEB

in 2010 to €261 million in 2011) – since the effect of the acquisitions at the
beginning of the year (Imusa and Asia Fan) is limited and the acquisition
of an additional 20% stake in Supor, which carries a much larger impact,
occurred towards the end of December, without any major effect on the
average debt level for the year. Second, the risk in net fi nancial expense is
related to the average interest rate, which went up. Excluding the negative
impact of Supor’s cash fl ow and considering the low-return investment
of the proceedings from the bond issue in May for several months, the
Group’s nominal interest rate increased from 4.6% to 6.4%. The interest
Balance sheet
Consolidated equity amounted to €1,362 million at 31 December 2011
(compared with €1,571 million at 31 December 2010), including a contribution
of Supor’s minority shareholder interests for €123 million, versus €173 million
one year earlier. This change is the result of various factors, including:
� exchange differences in the amount of €40 million, resulting mainly, at the
end of the year, from the rallying of the dollar and yuan in relation to the
euro – while other currencies tended to weaken – and the impact on the
valuation of the share in the net position of subsidiaries in the countries
concerned;
� the total profi t for the year, amounting to €261 million, less the dividends
paid in 2011 for the year 2010, i.e. €67 million (€56 million for 2009);
� the negative impact of the acquisition of the additional 20% stake in Supor
on equity, since, based on the new accounting standard for transactions
with minority shareholders, the entire purchase price is now directly
deducted from equity.
This additional equity is understood to be net of SEB treasury stock, which
increased in 2011 following buybacks on the open market under market
conditions considered to be favourable to such transactions. At the end of
2011, SEB S.A. had 2,331,797 treasury shares, versus 1,980,698 shares
the previous year.
Furthermore, net debt as at 31 December 2011 amounted to €673 million
versus €131 million at year end 2010. This signifi cant increase is essentially
the result of the debt fi nancing used to make various acquisitions during
2011: Colombian company Imusa in February, Asia Fan in Vietnam in May,
Maharaja Whiteline in India in December, and the acquisition of the additional
20% stake in Chinese company Supor, purchased from the Su founding
family, on top of the 51.3% stake already owned. This last transaction was
Financial Report and Registration Document 2011
4
Commentary on the fi nancial year
Commentary on the consolidated results
rate calculated on the gross debt increased less sharply (from 2.9% to 4%),
refl ecting mainly the increase in long-term fi nancing as a share of this debt.
At €235 million, net profit Group share increased by almost 4.5% in
relation to 2010 (€220 million). This is calculated after taxes of €112 million,
representing a rate of 30%, somewhat higher than the rate of 26.9% in 2010.
This increase is due to increased corporation tax in France (36.1% versus
34.4% in 2010) and to a gradual decrease from year to year of the favourable
impact of foreign taxes. It also includes minority shareholder interests for
Supor, which amounts to €26 million to be deducted (€23 million in 2010).
the largest in terms of the amount (€406 million), and it therefore had the
greatest impact on debt at year end. In addition, working capital requirements
reached €1,014 million (25.6% of sales) at the end of 2011, noticeably higher
than at year end 2010, when this fi gure stood at €875 million (24% of sales).
This fl uctuation is the result of increased inventory and receivables in a highly
competitive market situation, especially during the latter part of the year.
Furthermore, cash outfl ows linked to restructuring operations amounted to
€18 million (€30 million in 2010) and treasury stock purchases cost a total
of €34 million (compared to the sale of such stock, i.e. cash infl ows, in the
amount of €33 million in 2010).
Based on a net debt of €673 million, the debt ratio was equal to 49% at
31 December 2011 (8% at year-end 2010) and the net debt/EBITDA ratio
went from 0.29 at year-end 2010 to 1.33 at 31 December 2011. After the
acquisitions made in 2011, the Group’s fi nancial position remains healthy and
leaves signifi cant room to manoeuvre in terms of fi nancing. Nevertheless, in
2012 the Group will strive to generate cash levels that will allow it, excluding
any other external growth operations it may undertake, to reduce its debt,
as it has done consistently in the past.
2011 investments totalled €131 million, down in relation to 2010, a year
when the Group made substantial investments in China (increased capacity
at the Wuhan site and upgrades at the Shaoxing site). In general, investment
was principally in tangible assets (approx. 80%) and almost equally divided
between moulds and tools for new products on one hand and production
equipment (installation of new assembly lines, injection presses, etc.) and/or
the renovation of buildings on the other. The remaining 20% covered mostly
capitalised development costs and production-related computer software
linked to the production and development of the Group’s own retail brand
outlets.
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