financial report and registration document 2011 - Groupe SEB

4.5. FINANCIAL REVIEW OF SEB S.A.
SEB S.A., the parent company of Groupe SEB, is a holding company whose
activities are largely confi ned to overseeing the manufacturing and sales
activities carried out by its subsidiaries.
As a result, SEB S.A.’s earnings only partly refl ect the performance of the
Group and year-on-year changes in the Group’s performance are not visible
at the level of the Company’s results until the following year, because its
revenues consist essentially of dividends received from subsidiaries.
The main items refl ected in the Company’s accounts are as follows:
� income:
� dividends from subsidiaries, in the amount of €141.0 million
(€73.3 million in 2010);
Signifi cant 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 loan has a
nominal amount of €560 million and a fi ve-year term.
BOND ISSUE
On 26 May 2011, the Group carried out its fi rst bond issue, in an amount
of €300 million, for a term of fi ve years and a maturity date of 3 June 2016.
The annual coupon rate will be 4.5% per year. Top investors in these bonds
included BNP Paribas, Crédit Agricole CIB, Natixis and Société Générale.
The bonds are traded on the Euronext Paris market.
Financial Report and Registration Document 2011
� expenses:
4
Commentary on the fi nancial year
Financial review of SEB S.A
� fees for services provided by SEB Développement, a subsidiary of
SEB S.A., in the amount of €3.2 million (€3.0 million in 2010).
Since 1 January 2005, SEB Développement has taken over the market
prospecting, international sales promotion and development, administrative,
fi nancial, research, innovation and industrial property services previously
supplied by the Company to subsidiaries.
The Company ended the year with a profi t of €77.8 million for the period
(€45.7 million in 2010).
CREATION OF THE 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 fi rst investment in
the area of digital cooking solutions and “connected products” by acquiring
a majority stake (60%) in US-based Key Ingredient.
ADDITIONAL IMPAIRMENT OF GROUPE SEB
MOULINEX SHARES
The Company recognised further impairment of the Groupe SEB Moulinex
shares in the amount of €26 million. At 31 December 2011, provisions for
impairment of the shares of this subsidiary stood at €50 million.
GROUPE SEB
4
73