financial report and registration document 2011 - Groupe SEB

1 Milestones
Presentation of the Group
in the history of the Group
The year 2011 was very active in terms of external growth. In addition to
the larger stake in Supor acquired at the end of the year, in February the
Group fi nalised the acquisition of the Colombian company Imusa, which
specialises in cookware and is a leader in its domestic market. Imusa’s core
business goes hand-in-hand with Samurai’s small domestic appliances in
a booming market driven by strong demand and by a fairly well-structured
distribution network. In May, Vietnamese company Asia Fan was acquired
(65% stake). Asia Fan, whose industrial and commercial activities focus on
fans, ranks among the leading companies within the Vietnamese market.
This transaction was part of a decisive expansion policy targeting certain
countries in South-East Asia that represent major growth drivers for the
future. Asia Fan allows the Group to build up its presence, which has until
now been limited, in a market that is already substantial and is quickly
growing, and to complement Supor, which focuses exclusively on cookware
in Vietnam. Finally, in December the Group acquired a 55% majority stake in
the Indian company Maharaja Whiteline, which specialises in small domestic
appliances. This acquisition allows the Group to establish a presence in this
major market, which is undergoing rapid transformation and growth.
Organic growth: innovation and international expansion
New product development and the conquest of new markets are two key
pillars of Groupe SEB’s strategy. Innovation is critical to the vitality of the
Small Domestic Equipment sector and it gives the Group the head start it
requires to stay ahead of the competition and acquire solid positions on
markets. At the same time, geographic expansion offers new opportunities,
with, among other things, a better international balance of trading activities
and enhanced exposure to the high growth potential of emerging nations.
A STRONG INNOVATION POLICY
Both SEB and Moulinex, ever since they were founded, have set out to offer
innovative products that contribute to the daily well-being of consumers.
Emblematic products such as the SEB pressure cooker and the Moulinex
purée handpress paved the way for the fi rst electrical appliances in the 50s
and 60s: irons, coffee grinders, odourless fryers, and the Charlotte and
Marie multi-purpose appliances… The 70s and 80s marked the arrival of
more sophisticated functions with the introduction of electronics-enhanced
new products: bathroom scales, programmable coffee machines, etc.
This era also saw the emergence of new lifestyles, refl ected in the launch
of convivial products such as the raclette grill and home espresso coffee
maker. In the decade up to 2000, both Groupe SEB and Moulinex brought
new simplicity to the world of small domestic equipment: pressure cookers
with simplifi ed closing mechanisms, removable handles for frying pans and
saucepans, compact vacuum cleaners with triangular-shaped heads, coffee
makers incorporating grinder-dosers, frying pans with a visual heat indicator,
food processors designed for easy storage, etc.
The 2000s marked a new acceleration in the product offer renewal process
through:
� its fi rst partnerships, developed by the Group from 2006 with leading
food-industry operators which gave it access to new product categories
such as pod coffee makers and draught beer-tapping machines;
� the introduction of several innovative concepts, answers to new consumer
expectations (nutrition and health, home-made, ease, well-being, etc.),
often accompanied by major commercial success: the Actifry minimal-
oil fryer; the Silence Force and Silence Force Extreme vacuum cleaners,
which combine power with low sound level; breadmakers; washable silent
fans; anti-mosquito devices, etc.;
� the introduction of new functional features in linen care, such as a
self-cleaning iron soleplate and an anti-scaling system for steam
generators, etc.
HEADING FOR NEW MARKETS
In the 1970s, Groupe SEB turned its attention to international growth.
Building on its “cookware” expertise, it began by penetrating the Japanese
and American markets with its nonstick Tefal frying pans and saucepans.
In 1992 and 1993, it took advantage of the opening up of Eastern Europe,
by creating retail distribution operations in Central European countries
and by gaining greater access to the Russian market. From 1994 to 2000,
it focused on building up its commercial operations worldwide and, where
appropriate, its industrial presence by setting up factories in South America,
China and elsewhere. Over the years, the Group expanded its activities to all
the continents and built its international manufacturing bases. It continued
expanding in Asia with marketing subsidiaries created in Thailand and
Taiwan in 2003, and in Singapore and Malaysia in 2004. It then reinforced
its presence in South America by opening a subsidiary in Peru. In 2005,
the Group created a subsidiary in Switzerland to manage its operations in
that country directly. Meanwhile, to support emerging markets in Northern,
Central and Eastern Europe, the Group strengthened its presence in these
zones by setting up subsidiaries in Romania in 2005, in Ukraine and Slovenia
in 2006 and in Latvia in 2007. This drive continued in Bulgaria in 2008, while
in South-East Asia, Supor opened a new factory in Vietnam. At the same
time, the Group created Lojas in Brazil, a company that comprises the ownbrand
stores opened in Brazil to give the Group a direct sales channel and
create an additional infl ux of sales.
The strength of Groupe SEB lies in its ability to blend innovation – a key
factor in success – with international operations that bring it closer to its
retail clients and consumers. These are the two pillars upon which the Group
continues to build its development.
6 GROUPE SEB Financial Report and Registration Document 2011