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SEB S.A.

Interim / Quarterly Report Oct 12, 2015

1637_ir_2015-10-12_d2622ebc-8e44-4c11-99f0-5d9c0a12da6b.pdf

Interim / Quarterly Report

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1 PROFILE AND KEY FIGURES 1 2 MANAGEMENT REPORT 5 Key events 5 Activity 6 Consolidated income statement 11

3FINANCIAL STATEMENTS 11
Consolidated income statement 11
Consolidated statement of comprehensive income 11
Balance sheet 12
Consolidated cash fl ow statement 13
Consolidated statement of changes in equity 14
Notes to the condensed consolidated fi nancial statements 15
Statutory auditors' review report on the half-yearly
fi nancial information
26
Statement by the person responsible for the Interim
Financial Report
27

PROFILE AND KEY FIGURES

Groupe SEB, shaping the times

With a presence in almost 150 countries, Groupe SEB has earned strong positions on all continents through a wide, diversifi ed product range and an exceptional brand portfolio. Today it is the world reference in Small Domestic Equipment .

Its success is rooted in its ability to innovate and envision the future of everyday life, with the ambition of bringing better-living to all households around the world .

A multi-specialist group

COOKWARE

Frying pans, saucepans, casseroles , bakeware, oven dishes, pressure cookers, storage containers, kitchen utensils, etc.

KITCHEN ELECTRIC S

Electrical cooking appliances: deep fryers, rice cookers, induction hobs, electric pressure cookers, barbecues, informal meal appliances , waffl e makers, grills, toasters, tabletop ovens, steam cookers, breadmakers and multicookers.

Food preparation: food processors and mixers, beaters , blenders, small food preparation equipment, cooking kitchen machines , filter and pod coffee makers, espresso machines, electric kettles,instant hot-water dispensers , home beer-tapping machines and soya milk makers.

HOME AND PERSONAL CARE PRODUCTS

Personal care: hair care appliances, epilators, wellness appliances, bathroom scales.

Linen care: irons and steam generators, semiautomatic washing machines, garment steamers.

Home care: vacuum cleaners (upright and canister, bagged and bagless, compact and cordless models), fans, heating and air treatment appliances.

Leading positions

Cookware – Pressure cookers – Irons and steam generators – Kettles – Toasters – Informal meal appliances– Mixers – Fryers – Grills and barbecues – Waffl e makers and toasted sandwich makers – Juicers – Filter coffee makers – Electrical epilators – Rice cookers.

A leadership position built on well-known brands

  • Global brands: All-Clad, Krups, Lagostina, Moulinex, Rowenta and Tefal
  • Leading local brands: Calor/Seb (France and Belgium), T-fal/Mirro/Wear Ever/AirBake (North America), Arno/ Panex/Rochedo/Clock/Samurai/Imusa/Umco (South America), Supor (China), AsiaVina (Vietnam) and Maharaja Whiteline (India)

At 30 June 2015

GROUPE SEB CONSOLIDATED RESULTS

(in € millions) First half 2014* First half 2015
Sales 1,827 2,113
Operating result from activity 88 146
Other income and expenses (7) (15)
Operating profi t 70 122
Profi t attributable to owners of the parent 23 54

* Afterapplication of IFRIC 21.

+BREAKDOWN OF CHANGE IN HALF-YEAR SALES

H1 2014

H1 2015

+BREAKDOWN OF CHANGE IN OPERATING RESULT FROM ACTIVITY

1

+ NET FINANCIAL DEBT AT 30 JUNE

+ CHANGE IN DEBT OVER 6 MONTHS

+ CHANGE IN WORKING CAPITAL REQUIREMENT BY HALF-YEAR

+SHARE PRICE

2. MANAGEMENT REPORT

Key events

BACKGROUND

Business in the fi rst half of the year was conducted in a generally sluggish economic environment:

  • signs of a recovery were confi rmed in the eurozone, with more dynamic consumption and an improvement in confi dence amongst businesses and households. Growth in the eurozone therefore picked up slightly compared with 2014, driven by Germany and Spain;
  • the US economy was disrupted, as in 2014, by non-recurring events (weather conditions, port strikes on the West Coast, impact of the drop in oil prices on mining and oil investment, etc.). Aside from these various factors, the environment in the US remained favourable (with unemployment down and a rise in household disposable income);
  • once again, there were sharply contrasting fortunes for emerging markets. Russia saw a sharp downturn due to falling oil prices, the devaluation of the rouble and an infl ation rate of around 15%. Brazil entered into recession, leading to a drop in household consumption and a rise in unemployment. In China, the economy continued to grow steadily, nonetheless confi rming the gradual slowdown seen in recent years.

Against this backdrop, the Small Domestic Equipmentmarket remained generally buoyantduring the fi rst six months of the year, although contrasted by region. Competition has remained stiff and there have been large numbers of promotional offers and loyalty programmes. These offers refl ect the growing competition between brands and bids to entice customers into the shops. Faced with the current uncertainties, retailers are maintaining very tight stock management policies, which has a knock-on effect on sales and the working capital requirement of their suppliers.

Currencies

In the fi rst half of 2015, the Group was once again faced with signifi cant currency fl uctuations, with varying impacts on its performance. Based on average exchange rates, the Group's operating currencies mostly appreciated against the euro, with for example, the yen (+3.6%), the pound sterling (+12.1%), the Korean won (+17.1%), the Turkish pound (+3.6%), the Australian dollar (+5.0%) and the Canadian dollar (+9.1%) having a positive impact on the Group's sales and results. The rouble was a signifi cant exception and continued the downward movement which had begun in 2013 (-25.6%), while the Ukrainian hryvnia plunged again (-40.1%). To a lesser extent, the Brazilian real continued to weaken (-4.9%), confi rming the trend in prior years. The appreciation of the Chinese yuan and the US dollar observed in the second half of 2014 continued through the fi rst half of 2015 to reach 21.7% and 22.8% respectively. In these two currencies, the Group's costs are higher than its income owing to its purchasing structure. Unlike other currencies, their increase had a negative impact on the Group's profi tability in the fi rst half of 2015, although this was moderated by the effect of hedging. Overall, currency fl uctuations had a positive impact on the Group's turnover in the fi rst six months (+€127 million) but a negative impact on operating result from activity for the fi rst half-year (-€32 million).

Cost of raw materials and transport

Metals followed a downward trajectory in the first half of 2015: aluminium was stable with an average price of \$1,800/t but fell back sharply at the end of the period (to \$1,700), while nickel (a component of certain stainless steels) fell sharply, with an average price of \$13,700/t (down 17% compared with 2014) and a price below \$11,500/t at the end of the period. Copper prices also fell, with an average price of \$6,900/t (down 15% compared with 2014). To smooth the effects of the sometimes sudden fl uctuations in metal prices, the Group makes use of partial hedging arrangements for its requirements (for aluminium and nickel). This provides protection from sharp price increases, but limits its fl exibility if prices fall.

The price of a barrel of oil fell signifi cantly in the fi rst half-year to an average price of \$59 (down 46% compared with the fi rst half of 2014). At the same time, there was a downturn in the price of plastic materials, with prices of polypropylene in Europe falling back despite an increase at the end of the period.

Road haulage costs remained stable, helped by low fuel costs over the period.

With regard to maritime freight costs (Asia-Pacifi c/Europe/America), the price negotiations that concluded at the end of 2014 were refl ected in price hikes in early 2015, which were subsequently reduced. The market is still extremely volatile.

APPOINTMENTS TO THE BOARD OF DIRECTORS

On 12 May 2015, the General Shareholders' Meeting of SEB S.A. approved the appointment of Mr William Gairard as a member of the Board of Directors for a period of four years, to replace Mr Jacques Gairard, whose term of offi ce had expired. The terms of offi ce of Mr Hubert Fèvre and Mr Cédric Lescure, which expired at the same meeting, were renewed for another four-year term.

THE GROUP CELEBRATED 40 YEARS OF TRADING ON THE PARIS STOCK EXCHANGE

On 27 May 1975, Groupe SEB, which at the time already had a 120-year history, was fl oated on the Paris stock exchange. The decision to list refl ected a desire by the Group to increase its fi nancing capabilities by raising funds, to allow its employees a stake in the company and to raise its profi le and increase transparency.

To celebrate this anniversary, on Wednesday 27 May 2015, Groupe SEB was the guest of Euronext Paris at an opening ceremony for the European fi nancial markets.

After the countdown of the last 10 seconds before the European markets opened, Thierry de La Tour d'Artaise, Chairman and Chief Executive Offi cer of Groupe SEB, rang the legendary bell which initially, and until shares were dematerialised, used to announce the opening and closing of the fi nancial markets.

Activity

% change*
Sales
(in € millions)
First half 2015 First half 2014 Reported Like-for-like
France 294 267 + 10. 6 + 10. 6
Other Western European countries 381 363 + 5. 1 + 3. 3
North America 246 192 + 27. 8 + 8. 4
South America 174 173 + 0. 4 + 3. 5
Asia-Pacifi c 727 540 + 34. 6 + 14. 0
Central Europe, Russia and other countries 291 292 - 0. 4 + 7. 1
TOTAL 2, 113 1, 827 + 15. 7 + 8. 7
% change*
Sales
(in € millions)
Second quarter 2015 Second quarter 2014 Reported Like-for-like
France 150 137 + 9. 3 + 9. 3
Other Western European countries 194 180 + 7. 7 + 6. 0
North America 129 99 + 30. 4 + 10. 3
South America 91 92 - 0. 3 + 6. 7
Asia-Pacifi c 320 236 + 35. 3 + 12. 7
Central Europe, Russia and other countries 140 141 - 1. 3 + 0. 4
TOTAL 1, 024 885 + 15. 6 + 7. 9

* Calculation based on unrounded fi gures.

Groupe SEB posted sales of €2,113 million in the fi rst half of 2015, an increase of 15.7%, including a positive currency effect of €127 million. Sales rose by 8.7% at constant scope and exchange rate.

PRODUCT PERFORMANCE

Cookware

The Group's cookware business grew steadily in the fi rst half, but with varying performance between geographical regions. Business grew sharply in France, driven by several large-scale loyalty programmes to promote the Ingenio range of frying pans and saucepans with removable handles, as well as Lagostina. In China, the Group reported another sharp increase in all its product lines, further strengthening its market share. After a diffi cult fi nancial year in 2014 in Japan, sales began to rise again. Momentum in North America was particularly strong thanks to new distribution business for T-fal. In contrast, business remained diffi cult in Brazil, while the non-recurrence of a major commercial operation undertaken in Germany at the start of 2014 hurt activity in Europe.

Pressure cooker sales were driven up by robust performances in Japan, the United States, Canada and France in particular. Lastly, the Group continued to develop its kitchen utensils business thanks toa partnership with Bradshaw and by making headway in France, Japan, China and South Korea.

Kitchen Electric s

The Group recorded solid growth in sales of Kitchen Electricals in the fi rst half of the year. Electrical cooking rose signifi cantly thanks to the strong performance by Supor in rice cookers and electric pressure cookers in particular. Business was also boosted by the growth of the Cookeo multicooker, driven by excellent performance in France and by the launch of its connected version , Cookeo Connect. The deep fryer family reported steady growth fuelled by the Uno/Super Uno and Versalio ranges.

Business rose slightly in the food preparation segment, benefi ting from the growth in sales of Cuisine Companion cooking food processor, specifi cally from a large-scale sales operation in Italy and a roll-out in Australia. Blender sales were up, particularly in the Middle East, Japan and France. In contrast, business remained diffi cult for meat mincers, especially in Russia, as well as for graters and slicers.

The beverage preparation line posted a robust performance. There was a signifi cant increase in Dolce Gusto sales especially in Russia, France and Latin America. Business continued to grow for fully automatic coffee machines, mainly in Germany and Russia. Kettle sales surged thanks to an upturn in business in Japan after a particularly diffi cult year in 2014.

Linen and home care

In a global ironing market that was slightly down, Group linen care sales improved in the first half-year. Steam irons benefited from excellent sales momentum in the UK, Japan, Spain and Italy. Garment steam brushes continued to make headway in all markets. Sales of this product, primarily distributed in North America, expanded in Europe and the Middle East and took off in China. Steam generators also turned in a healthy performance, particularly in the UK, Dutch, Turkish and Middle Eastern markets.

The home care line reported two-digit growth. The Group has been a step ahead of the competition since the energy labelling of vacuum cleaners on 1 September 2014 in Europe, under the Ecodesign Directive. With a range that is fully compliant with the new regulations and among the best positioned with respect to the various performance criteria highlighted by the labelling, the Group has been able to strengthen its positions signifi cantly. Business rose signifi cantly for bagless vacuum cleaners, driven by the success of the ultra-silent Silence Force Multicyclonic model, and bagged vacuum cleaners sales were solid in most markets. The market for the Air Force range of cordless handsticks cleanerscontinued to expand in Europe. Home comfort sales were up, driven primarily by good momentum in sales of fans in Latin America.

Personal care

The Group reported robust growth for its personal care business. Hair care sales were boosted by the successful launch of the So Curls curler, and hair dryers in France, Spain and Russia in particular. The Steampod hair straightener, a product combining Rowenta technology and L'Oréal cosmetics, grew sharply over the half year. Epilation grew slightly in a sluggish market while scales experienced a diffi cult fi rst half.

GEOGRAPHICAL PERFORMANCE

Groupe SEB is active in almost 150 countries and achieved fi rst half 2015sales broken down as follows:

+BREAKDOWN OF SALES BY GEOGRAPHIC AREA

France: continued robust growth

In a fairly lacklustre general environment, the French Small Domestic Equipment market enjoyed vigorous growth in the fi rst half of 2015, led in particular by vacuum cleaners, electrical cooking appliances and cookware. With a 10.6% increase in sales over the period, Groupe SEB was a driving force behind the growth in the French market. This was particularly the case in the cookware segment where, in addition to the generally upward trend in recurring business, three loyalty programmes covering either the Tefal Ingenio line or Lagostina products were also deployed with large food retailers. The resulting dynamic lifted sales of pans, pots and pressure cookers, while helping to broaden and deepen our market positions.

In the small electrical appliance segment, the Group's best sellers included i) vacuum cleaners, thanks in particular to the competitive lead they enjoy under new European eco-design and eco-label legislation; ii) the Cookeo multicooker and its digital model, Cookeo Connect; iii) the Cuisine Companion all-in-one cooking food processor; and iv) the Dolce Gusto coffeemakers. On the other hand, business was more diffi cult in the declining ironing market.

Other Western European countries: broad-based growth

In a fairly lively Small Domestic Equipment market, Groupe SEB saw its growth speed up in the second quarter, to 6%. This solid momentum was fueled by almost every product category (irons, vacuum cleaners, coffeemakers, electrical cooking and food preparation appliances, etc.) and by the large majority of countries. In Germany, fi rst-half revenue was dampened by the non-recurrence of a major loyalty programme undertaken in fi rst-quarter 2014, but recurring business rose by 9%, led in particular by full-automatic espresso coffeemakers, vacuum cleaners and OptiGrill.

The outstanding momentum built up in the United Kingdom in recent years continued apace, supported by further gains in linen care, the continued popularity of the Actifry line and business development in cookware. This was also the case in Spain, where the Group once again outperformed a very buoyant market in all product families, and in Italy, where the already solid sales in vacuum cleaners and irons were further energised by a non-recurring deal for Cuisine Companion.

Excluding the impact of the above-mentioned loyalty programme, like-for-like growth for the whole region would stand at 7.4% in the second quarter and at 8.2% in the fi rst half.

North America: sharper growth in the second quarter

The vigorous reported increase in revenue was attributable both to very solid organic growth and to the dollar's rise against the euro. After an already robust business in the fi rst three months, organic growth picked up steam in the second quarter.

In the United States, sales rose steadily during the fi rst half, to end the period up 6.3% like-for-like. The Group turned in a very satisfactory performance in cookware, where it continued to gain market share by i) expanding the distribution of T-fal, including online; ii) broadening Imusa's portfolio of ethnic cookware; and iii) holding All-Clad sales fi rm in the premium segment. In electrical appliances, linen care products enjoyed sustained sales and the recently launched fans and humidifi ers – under the Rowenta brand – got off to a satisfactory start.

In Canada, despite stable revenue in the second quarter, Group fi rsthalf sales rose signifi cantly, boosted by Lagostina's brisk advances in cookware, while business in small electrical appliances was dampened by the price increases introduced early in the year.

Operations in Mexico reported double-digit growth in revenue, refl ecting a slight increase in recurring business, bolstered in the second quarter by the introduction of a new loyalty programme with one of our retailers.

South America: upturn in business in an uncertain environment

Business in South America is marked by sharp volatility from one quarter to the next. After a slow start to the year, sales turned fi rmly upwards in the second quarter, in a environment remaining highly uncertain.

In Brazil, the Group is being confronted with a cooling economy, a steadily declining real and sluggish consumer spending, which require the deployment of an agile pricing policy alternating price increases to offset the currency effect and promotions to remain in the market. Nevertheless, in the second quarter, sales rebounded strongly with a different profi le than in the fi rst three months of the year. Business was disrupted in cookware, but returned to sustained growth in small electrical appliances thanks to the confi rmed popularity of Dolce Gusto and several successful promotional campaigns in fans and washing machines.

In Colombia, revenue gains were led by robust growth across almost all of the electrical lines (fans, irons, food preparation appliances, blenders, etc.). Cookware sales, on the other hand, were lacklustre.

Asia Pacific: sustained strong growth

As in the fi rst quarter, Asia-Pacifi c sales in euros saw very robust growth in the fi rst half, refl ecting on one hand the solid organic growth delivered by our operations in China, Japan and South Korea and on the other hand the impact of the stronger yuan.

In China, Supor continued to expand and amply outperformed the market by leveraging its major competitive strengths: the ability to steadily enhance its product offering by innovating and opening new categories, its territorial expansion and the fast, continuous growth in its online presence.

In Japan, after a very diffi cult year in 2014, our readjusted pricing policy is paying off in a general environment that is a little less unfavorable than last year. Sales have returned to an upward curve and the market share lost in 2014 is gradually being regained, in cookware as well as in kettles and irons.

Turnover improved in South Korea, lifted in particular by fi rm demand for cookware, vacuum cleaners and food preparation appliances.

Business was more mixed in the rest of the region, with sustained growth in Vietnam and Australia and more challenging conditions in Thailand and Malaysia.

Central Europe, Russia & other countries: a good first half, although mixed

After brisk growth early in the year, business stalled in the second quarter due to a downturn in business in Russia and Ukraine.

In Russia, despite a weak general environment (due to the social and political situation, currency issues, consumer spending, etc.) and the introduction of major price hikes to offset FOREX impacts, sales rose signifi cantly in the fi rst half, primarily on the back of the loyalty programs conducted in the fi rst quarter with two retailers, with the focus shifting to more targeted promotions in the second quarter. The situation therefore remains fragile and continues to call for a cautious approach.

In Ukraine, after a surprisingly strong start to the year, the Group's business was caught up by the diffi cult local context and sales fell sharply in the second quarter.

In almost all of the other countries in the region, the general trend has been positive for Groupe SEB. Growth in Central Europe is continuing at a robust pace across almost every market, led by Poland and the Czech Republic. Business was very good in Turkey over the period, with in particular major gains for the Group in irons, vacuum cleaners and personal care products. Furthermore, we had the opportunity to take over 16 franchised stores which we shall manage directly. Operations in India have continued to enjoy fast growth thanks to a strong product dynamic and gains in the retail for Maharaja Whiteline.

Operating result from activity

Operating result from activity (ORfA) surged 66% in the fi rst half of 2015, to €146 million from €88 million a year earlier. This reported figure includes a €32- million negative currency effect stemming primarily from the increase in the dollar and the yuan against the euro, which has an adverse impact on our input costs. Like-for-like, fi rst-half ORfA stood at €178 million, or more than double the year-earlier fi gure.

The change in fi rst-half operating result from activity, at constant exchange rates and consolidation scope, may be analysed as follows:

  • a €41- million increase related to the strong organic growth in volumes;
  • a €50- million improvement in the price-mix effect, refl ecting the Group's price increases passed in the fi rst semester;

  • €17- million production savings arising on purchasing effi ciencies, better coverage of manufacturing costs, sustained deployment of productivity initiatives, etc.;

  • €8- million higher investments in growth drivers (Research & Development, advertising and operational marketing);
  • a leverage on operating expenses that increased by only half of sales organic growth.

As usual, it should be noted that the fi rst-half operating result from activity is not representative of full-year performance and should not be extrapolated.

Operating profi t

Lifted by the growth in operating result from activity, operating profi t climbed 74% to €122 million in the fi rst half.

Discretionary and non-discretionary profi t-sharing schemes declined slightly year-on-year, to €9 million. Other operating income and expense came to an expense of €15 million and primarily comprised restructuring costs related to Lourdes production facility as well as Brazilian operations.

Finance costs and other fi nancial income and expense came to a net expense of €23 million, with the €2- million increase essentially

Financial structure

Consolidated equity amounted to €1,841 million at 30 June 2015, a €117 million increase from 31 December 2014.

Net debt ended the period at €453 million, €79 million lower than at 30 June 2014 and unchanged from year-end 2014. The Group generated during the fi rst half €81 million in operating cash fl ow,

Outlook for 2015

After this excellent fi rst half, we anticipate a second half of good quality, given more demanding 2014 comparatives. We believe that demand will hold fi rm in the coming months, but remain cautious about the economic and consumer spending trends in Russia and Brazil.

Our growth will be led by a solid product dynamic, nurtured by a large number of innovations and supported by increased investment in our growth drivers.

stemming from exchange losses (on the devaluation of the Venezuelan bolivar, in particular).

Attributable profi t ended the period at €54 million, which is 2.3 times the net profi t of the fi rst-half 2014.

It is worth noting that the tax rate has fallen considerably, mainly due to a more favourable country mix. In addition, the share of profi t attributable to non-controlling interests rose sharply during the period, refl ecting both the improvement in Supor's profi tability and the positive currency effect on its results.

slightly less than in fi rst-half 2014 due to the change in working capital requirement at a time of strong growth in sales.

At period-end, gearing was at 25% and the debt-to-EBITDA ratio was 0.93. The Group is therefore continuing to consolidate its fi nancial position, backed by a diversifi ed fi nancing architecture.

In view of the gains achieved in the first half and of this rather promising outlook, Groupe SEB raises its 2015 objectives, and now aims at meeting the following targets:

  • like-for-like sales growth above 6%;
  • an improvement in its like-for-like operating result from activity of more than 30%. Taking into account a currency impact, today estimated at around -€80 million, 2015 reported operating result from activity should exceed €400 million.

HALF-YEAR FINANCIAL REPORT 2015 - GROUPE SEB 9

SUBSEQUENT EVENTS

In early July 2015, an agreement was reached with funds advised by Triton to purchase 100% of the shares of the OBH Nordica group, a leading player in the small domestic appliance (SDA) industry in Scandinavia. The closing is expected to take place at the end of August, which is the end of OBH Nordica's fi scal year.

Founded in 2002 and headquartered in Sundbyberg, north of Stockholm, OBH Nordica markets a wide range of kitchen products (kitchen electrics and cookware), representing 80% of its revenue, as well as personal and home care appliances. Thanks to strong in-house innovation, the company enjoys topranking positions in the Nordic region, implementing a single brand strategy with high awareness in Sweden, Denmark, Finland and Norway. It has a solid foothold in all distribution channels, with access to some 4,200 points of sales.

OBH Nordica achieved SEK612m turnover in 2014 (approximately €65m) and has around 7% value market share in the Nordic SDA market. Already the leader in cookware in Scandinavia, Groupe SEB is a challenger in SDA in these countries and will thus leverage the acquisition of OBH Nordica to signifi cantly strengthen its position in the market, reaching critical size, enhancing product dynamics and implementing synergies between both entities. The combination of both operations, which are complementary, will allow Groupe SEB to better serve its customers and end-consumers.

3

3. FINANCIAL STATEMENTS

Condensed consolidated fi nancial statements for the fi rst six months ended 30 June 2015

Consolidated income statement

(in € millions) 2015
6 months
2014
6 months*
2014
12 months
Revenue (Note 3) 2,113.1 1,826.7 4,253.1
Operating expenses (Note 4) (1,967.1) (1,738.8) (3,885.1)
OPERATING RESULT FROM ACTIVITY 146.0 87.9 368.0
Statutory and discretionary employee profi t-sharing (Note 5) (8.4) (10.3) (33.3)
RECURRING OPERATING PROFIT 137.6 77.6 334.7
Other operating income and expense (Note 6) (15.1) (7.4) (21.0)
OPERATING PROFIT 122.5 70.2 313.7
Finance costs (Note 7) (13.6) (14.3) (31.2)
Other fi nancial income and expense (Note 7) (9.4) (7.4) (17.8)
Share of profi t of associates
PROFIT BEFORE TAX 99.5 48.5 264.7
Income tax expense (Note 8) (24.9) (13.3 ) (71.2)
PROFIT 74.6 35.2 193.5
Non-controlling interests (20.4) (12.3) (23.6)
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT 54.2 22.9 170.0
EARNINGS PER SHARE, ATTRIBUTABLE TO OWNERS OF THE PARENT (in units)
Basic earnings per share 1.10 0.47 3.49
Diluted earnings per share 1.09 0.47 3.45

* After application of IFRIC 21.

Notes 1 to 16 to the consolidated fi nancial statements are an integral part of the fi nancial statements.

Consolidated statement of comprehensive income

(in € millions) 2015
6 months
2014
6 months*
2014
12 months
Profi t for the period 74.6 35.2 193.5
Foreign currency translation adjustments 108.6 (4.7) 69.8
Gains (losses) on cash fl ow hedges 0.4 4.7 35.1
Restatement of employee benefi t obligations, net of tax(a)(b) (5.2) (9.4)
Other comprehensive income (expense) 109.0 (5.2) 95.6
COMPREHENSIVE INCOME 183.6 30.0 289.1
Non-controlling interests (35.8) (10.1) (39.5)
COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT 147.8 19.9 249.6

* After application of IFRIC 21.

(a) Items that will not be reclassifi ed to profi t or loss.

(b) Including impact of deferred taxes in the amount of €2.8 million at 30/06/2014.

Balance sheet

ASSETS
(in € millions)
30/06/2015 30/06/2014* 31/12/2014
Goodwill 553.7 466.4 512.1
Other intangible assets 483.5 443.5 464.1
Property, plant and equipment 603.4 560.7 587.1
Investments in associates
Other investments 18.1 14.6 16.0
Other non-current fi nancial assets 15.2 13.4 13.9
Deferred tax assets 47.0 55.2 34.9
Other non-current assets 4.2 5.2 5.9
Long-term derivative instruments 10.4 8.5
NON-CURRENT ASSETS 1,735.5 1,559.0 1,642.5
Inventories 895.6 794.9 822.8
Trade receivables 641.4 540.9 768.3
Other receivables 127.4 134.6 137.8
Current tax assets 42.0 25.3 35.0
Short-term derivative instruments 57.2 5.1 50.9
Other fi nancial investments (Note 12) 150.9 172.5
Cash and cash equivalents (Note 12) 306.6 342.9 341.4
CURRENT ASSETS 2,221.1 1,843.7 2,328.7
TOTAL ASSETS 3,956.6 3,402.7 3,971.2
EQUITY AND LIABILITIES
(in € millions)
30/06/2015 30/06/2014* 31/12/2014
Share capital 50.2 50.2 50.2
Reserves and retained earnings 1,659.3 1,353.8 1,579.9
Treasury stock (Note 9) (65.5) (85.9) (79.0)
Equity attributable to owners of the parent 1,644.0 1,316.0 1,551.0
Non-controlling interests 197.3 145.5 173.5
EQUITY 1,841.3 1,461.5 1,724.5
Deferred tax liabilities 58.3 61.5 65.3
Long-term provisions (Note 11) 201.8 191.5 192.9
Long-term borrowings (Note 12) 232.9 628.4 576.9
Other non-current liabilities 41.9 36.9 38.4
Long-term derivative instruments 0.2 1.9
NON-CURRENT LIABILITIES 535.1 918.3 875.4
Short-term provisions (Note 11) 55.7 45.9 55.6
Trade payables 578.3 490.1 637.3
Other current liabilities 222.5 209.0 260.3
Current tax liabilities 38.8 24.2 20.8
Short-term derivative instruments 10.2 7.3 8.2
Short-term borrowings (Note 12) 674.7 246.4 389.1
CURRENT LIABILITIES 1,580.2 1,022.9 1,371.3
TOTAL EQUITY AND LIABILITIES 3,956.6 3,402.7 3,971.2

* After application of IFRIC 21.

Notes 1 to 16 to the consolidated fi nancial statements are an integral part of the fi nancial statements.

Consolidated cash fl ow statement

(in € millions) 2015
6 months
2014
6 months*
2014
12 months
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT 54.2 22.9 170.0
Depreciation, amortisation and impairment losses 63.7 57.2 122.8
Change in provisions 7.2 (2.2) 3.7
Unrealised gains and losses on fi nancial instruments (7.6) (1.5) (6.3)
Income and expenses related to stock options 6.9 4.6 10.2
Gains and losses on disposals of assets 0.7 0.4 2.7
Other 3.5
Non-controlling interests 20.4 12.3 23.6
Current and deferred taxes 24.9 14.4 71.2
Finance costs, net 13.9 14.2 31.2
CASH FLOW(a) 187.8 122.3 429.2
Change in inventories (41.5) (53.9) (70.2)
Change in trade receivables 138.4 206.2 (28.9)
Change in trade payables (83.8) (49.2) 72.8
Change in other receivables and payables (29.1) (47.0) (6.1)
Income taxes paid (35.0) (28.3) (94.6)
Interest paid (13.9) (14.2) (31.2)
NET CASH FROM OPERATING ACTIVITIES 122.9 135.9 271.0
Proceeds from disposals of assets 2.7 5.5 6.6
Purchases of property, plant and equipment (57.9) (119.6) (187.6)
Purchases of software and other intangible assets (10.5) (7.9) (13.4)
Purchases of fi nancial assets 32.3 4.4 (171.1)
Acquisitions of subsidiaries, net of the cash acquired 6.0 5.9
Effect of other changes in scope of consolidation
NET CASH USED BY INVESTING ACTIVITIES (33.4) (111.6) (359.7)
Change in long-term borrowings (344.0) 1.4 (50.1)
Change in short-term borrowings 292.2 4.6 173.8
Issue of share capital
Transactions between owners (18.0) (23.2)
Change in treasury stock 4.5 (8.5) (6.0)
Dividends paid, including to non-controlling shareholders (85.4) (78.1) (78.0)
NET CASH USED BY FINANCING ACTIVITIES (132.8) (98.6) 16.5
Effect of changes in foreign exchange rates 8.5 (9.1) (12.7)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (34.8) (83.4) (84.9)
Cash and cash equivalents at beginning of period 341.4 426.3 426.3
Cash and cash equivalents at end of period 306.6 342.9 341.4

(a) Before interest and income taxes paid.

* After application of IFRIC 21.

Consolidated statement of changes in equity

(in € millions) Share
capital
Share
premium
account
Other
reserves and
retained
earnings
Translation
reserve
Treasury
stock
Equity
attributable to
owners of the
parent
Non
controlling
interests
Equity
AT 31 DECEMBER 2013 50.2 88.1 1,243.1 83.0 (74.7) 1,389.7 142.6 1,532.3
Profi t for the period 22.9 22.9 12.3 35.2
Other comprehensive
income (expense) (0.5) (2.5) (3.0) (2.2) (5.2)
Total comprehensive income 22.4 (2.5) 19.9 10.1 30.0
Dividends paid (70.2) (70.2) (7.8) (78.0)
Issue of share capital
Changes in treasury stock (11.2) (11.2) (11.2)
Gains (losses) on sales of
treasury stock, after tax
1.8 1.8 1.8
Exercise of stock options 3.1 3.1 3.1
Other movements (17.1) (17.1) 0.6 (16.5)
AT 30 JUNE 2014* 50.2 88.1 1,183.1 80.5 (85.9) 1,316.0 145.5 1,461.5
Profi t for the period 147.1 147.1 11.3 158.4
Other comprehensive
income (expense)
26.2 56.5 0.1 82.8 18.1 100.9
Total comprehensive income 173.3 56.5 0.1 229.9 29.4 259.3
Dividends paid
Issue of share capital
Changes in treasury stock 6.8 6.8 6.8
Gains (losses) on sales of
treasury stock, after tax
(2.8) (2.8) (2.8)
Exercise of stock options 4.0 4.0 4.0
Other movements (2.8) (2.9) (1.4) (4.3)
AT 31 DECEMBER 2014 50.2 88.1 1,354.8 137.0 (79.0) 1,551.0 173.5 1,724.5
Profi t for the period 54.2 54.2 20.4 74.6
Other comprehensive
income (expense)
0.4 93.2 93.6 15.4 109.0
Total comprehensive income 54.6 93.2 147.8 35.8 183.6
Dividends paid (73.6) (73.6) (11.8) (85.4)
Issue of share capital
Changes in treasury stock 13.5 13.5 13.5
Gains (losses) on sales of
treasury stock, after tax
(5.9) (5.9) (5.9)
Exercise of stock options 6.9 6.9 6.9
Other movements 4.3 4.3 (0.2) 4.1
AT 30 JUNE 2015 50.2 88.1 1,341.1 230.2 (65.5) 1,644.0 197.3 1,841.3

* After application of IFRIC 21.

Notes to the condensed consolidated fi nancial statements

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015, IN € MILLIONS

Groupe SEB, comprised of SEB S.A. and its subsidiaries, is the world reference in the design, manufacture and marketing of cookware and small domestic appliances: pressure cookers, irons and steam generators, coffee makers , kettles deep fryers, toasters and food processors in particular.

SEB S.A.'s registered offi ce is at Chemin du Petit-Bois, Écully, 69130 Rhône, France. The company is listed on Eurolist Euronext Paris (ISIN code: FR0000121709 SK).

The condensed consolidated fi nancial statements for the fi rst half of 2015 were approved by the Board of Directors on 22 July 2015.

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The condensed interim consolidated fi nancial statements for the six months ended 30 June 2015 have been prepared in accordance with IAS 34 – Interim Financial Reporting.

The condensed fi nancial statements do not include all the disclosures required in a full set of annual fi nancial statements under IFRS and should therefore be read in conjunction with the Group's annual consolidated fi nancial statements for the year ended 31 December 2014 which are included in the 2014 Registration Document fi led with the French Financial Markets Authority (AMF) on 26 March 2015. The 2014 Registration Document can be downloaded from the Group's website (www.groupeseb.com) and the AMF website (www.amffrance.org), and is available on request from the Group's registered offi ce at the address shown above.

The condensed interim consolidated fi nancial statements have been prepared in accordance with the IFRSs, IASs and related interpretations adopted by the European Union and applicable at 30 June 2015, which can be found on the European Commission's website (http:// ec.europa.eu/internal_market/accounting/ias/index_en.htm).

The accounting policies applied to prepare these fi nancial statements are unchanged compared with those used to prepare the 2014 annual consolidated fi nancial statements except for income tax expense and non-discretionary and discretionary employee profi t-sharing, which are calculated on the basis of full-year projections (see Note 8 – Income taxes, and Note 5 – Statutory and discretionary employee profi t-sharing). In addition, the comparability of the interim and annual fi nancial statements may be affected by the seasonal nature of the Group's activities, which results in higher sales in the second half of the year.

The Group has adopted the following standards, interpretations and amendments to existing standards whose application was mandatory as from 1 January 2015 in accordance with the effective dates set by the IASB:

■ IFRIC 21: "Levies": this interpretation provides guidance on the recognition of levies in accordance with their obligating event as defi ned by the law independently of their basis for calculation. The application of this standard has no material effect on annual fi nancial statements. The impact on net profi t at 30 June 2015 was €2.1 million. The fi nancial statements at 30 June 2014 were restated to refl ect an identical amount to 2015;

  • amendments to IAS 16 (property, plant and equipment) and IAS 38 (intangible assets) concerning acceptable methods of depreciation and amortisation. The IASB thus clarifi ed that the use of a revenuebased method of depreciation and amortisation is not considered appropriate, as it does not refl ect the consumption of the economic benefi ts embodied in an intangible asset. This presumption can be rebutted under certain circumstances;
  • amendment to IFRS 11 (joint arrangements) dealing with the acquisition of interest in a joint operation;
  • amendment to IAS 19 (employee benefits), which applies to contributions by members of staff or third parties to defi ned-benefi t plans. Contributions that are linked to service can be attributed to periods of service as a reduction of service cost;
  • annual improvements to IFRS (December 2013) applicable on or after 1 July 2014: these amendments primarily concern related party disclosures (IAS 24) and more particularly clarifi cations on the notion of benefi ts for "key" management staff, share-based payments (IFRS 2) and in particular a clarifi cation of the notion of "vesting conditions", segment reporting (IFRS 8) and disclosures on aggregation criteriacriteria as well as the reconciliation of assets per sector with all the entity's assets, the clarifi cation of the notion of fair value for short-term receivables and liabilities and the possibility of offsetting financial assets and liabilities (IFRS 13 Fair value measurements), and the recognition of a contingent consideration (IFRS 3) for business combinations.

These new standards and amendments had no material impact on the Group's fi nancial statements.

The Group decided against early adoption of the standards and interpretations for which application was optional at 30 June 2015. However, it does not expect the application of these new texts to have a material impact on the fi nancial statements.

NOTE 2 CHANGES IN THE SCOPE OF CONSOLIDATION

Atakoy

On 30 June 2015, the Group acquired part of the retail business of one of its former distributors in Turkey. This transaction led to the provisional assessment of goodwill of approximately €3 million.

Legal reorganization in Germany

A legal reorganizationis in progress in Germany. As at 30 June 2015, this transaction had no impact on the consolidated fi nancial statements.

NOTE 3 SEGMENT REPORTING

In accordance with IFRS 8 – Operating Segments, the information presented below for each operating segment is the same as the information presented to the chief operating decision makers (Executive Committee members) for the purposes of assessing the segments' performance and allocating resources.

The internal reports reviewed and used by the chief operating decision makers present such data by geographical segment. The Executive Committee assesses each segment's performance based on:

Note 3.1. BY LOCATION OF ASSETS

  • revenue and operating profi t; and
  • net capital employed, defi ned as the segment's assets (goodwill, property, plant and equipment and intangible assets, inventories and trade receivables) less its liabilities (trade payables, other payables and provisions).

Performance in terms of fi nancing, cash fl ow and income tax is tracked at Group level, not by operating segment.

(in € millions) France Other Western
European
countries(a)
North
America
South
America
Asia-Pacifi c Central
Europe,
Russia
and other
countries
Intra-group
transactions
Total
30/06/2015
Revenue
Inter-segment revenue 292.7 364.1 238.7 173.5 701.6 261.8 2,032.5
External revenue 332.1 37.9 0.3 4.0 482.2 6.9 (782.6) 80.6
TOTAL REVENUE 624.8 402.0 239.0 177.5 1,183.8 268.7 (782.6) 2,113.1
Income statement
Operating result from activity 20.1 20.6 (3.5) 4.6 93.8 31.4 (21.1) 146.0
Operating profi t (loss) 3.3 20.7 (3.7) (0.5) 93.8 29.9 (21.1) 122.5
Finance costs and other fi nancial
income and expense, net
(23.1)
Share of profi t of associates
Income tax expense (24.9)
PROFIT FOR THE PERIOD 74.6
Balance sheet
Segment assets 730.6 396.8 459.9 423.4 1,360.3 309.9 (371.8) 3,309.2
Financial assets 558.4
Tax assets 89.0
TOTAL ASSETS 3,956.6
Segment liabilities 435.8 249.2 120.4 99.6 375.6 127.7 (308.1) 1,100.2
Borrowings 918.0
Tax liabilities 97.1
Equity 1,841.3
TOTAL EQUITY
AND LIABILITIES
3,956.6
Other information
Capital expenditure and
purchases of intangible assets
35.4 2.3 2.0 10.0 13.6 1.4 64.7
Depreciation and amortisation
expense
30.9 2.7 4.0 4.2 20.2 1.1 63.2
Impairment losses 0.5 0.5

(a) "Other Western European countries" correspond to the 15 countries other than France comprising the pre-enlargement European Union. The new EU countries are included in the "Central Europe, Russia and other countries" segment.

Inter-segment revenue corresponds to sales to external customers located within the geographical segment.

External revenue corresponds to total sales (within the Group and to external customers) generated outside the geographical segment by companies within the geographical segment.

Intra-Group transactions are carried out on an arm's length basis.

(in € millions) France* Other Western
European
countries(a)
North
America
South
America
Asia-Pacifi c Central
Europe,
Russia
and other
countries
Intra-group
transactions
Total*
30/06/2014
Revenue
Inter-segment revenue 264.2 347.1 186.8 172.6 492.6 257.3 1,720.7
External revenue 311.1 33.4 0.1 2.8 433.0 5.8 (680.3) 106.1
TOTAL REVENUE 575.3 380.5 187.0 175.4 925.7 263.2 (680.3) 1,826.7
Income statement
Operating result from activity 2.1 11.0 (8.7) 3.3 81.4 28.1 (29.3) 87.9
Operating profi t (loss) (8.7) 10.2 (9.1) (1.8) 80.9 28.0 (29.3) 70.2
Finance costs and other fi nancial
income and expense, net
(21.6)
Share of profi t of associates
Income tax expense
PROFIT FOR THE PERIOD
(13.3 )
35.2
Balance sheet
Segment assets 715.9 361.7 374.7 437.7 1,115.0 251.1 (309.9) 2,946.2
Financial assets 376.0
Tax assets 80.5
TOTAL ASSETS 3,402.7
Segment liabilities 415.6 231.6 84.1 87.8 293.8 107.2 (248.7) 971.4
Borrowings 882.1
Tax liabilities 85.7
Equity 1,463.6
TOTAL EQUITY
AND LIABILITIES
3,402.7
Other information
Capital expenditure and
purchases of intangible assets
107.2 2.3 1.4 5.7 9.5 1.3 127.4
Depreciation and amortisation
expense
30.9 3.0 3.3 4.6 14.7 0.6 57.1
Impairment losses 0.1 0.1

(a) "Other Western European countries" correspond to the 15 countries other than France comprising the pre-enlargement European Union. The new EU countries are included in the "Central Europe, Russia and other countries" segment.

* After application of IFRIC 21.

Other Western
European
North South Central
Europe,
Russia
and other
Intra-group
(in € millions) France countries(a) America America Asia-Pacifi c countries transactions Total
2014
Revenue
Inter-segment revenue 696.2 818.0 481.5 419.7 1,021.0 597.7 4,034.2
External revenue 691.4 77.4 0.5 7.4 981.5 12.3 (1,551.4) 218.9
TOTAL REVENUE 1,387.2 895.4 482.0 427.1 2,002.5 609.9 (1,551.4) 4,253.1
Income statement
Operating result from activity 78.7 49.9 2.0 25.3 159.1 60.6 (7.6) 368.0
Operating profi t (loss) 42.5 47.4 0.9 11.6 158.7 60.2 (7.6) 313.7
Finance costs and other fi nancial
income and expense, net
(49.0)
Share of profi t of associates
Income tax expense (71.2)
PROFIT FOR THE PERIOD 193.5
Balance sheet
Segment assets 726.2 440.7 427.5 441.0 1,228.5 319.4 (285.2) 3,298.1
Financial assets 603.2
Tax assets 69.9
TOTAL ASSETS 3,971.2
Segment liabilities 474.7 272.4 88.2 93.6 376.0 116.9 (237.3) 1,184.5
Borrowings 976.1
Tax liabilities 86.0
Equity 1,724.5
TOTAL EQUITY
AND LIABILITIES
3,971.2
Other information
Capital expenditure and
purchases of intangible assets
144.8 4.8 2.9 11.7 32.8 4.0 201.1
Depreciation and amortisation
expense
65.3 5.7 6.9 9.3 31.2 1.8 120.2
Impairment losses 0.2 2.6 2.8

(a) "Other Western European countries" correspond to the 15 countries other than France comprising the pre-enlargement European Union. The new EU countries are included in the "Central Europe, Russia and other countries" segment.

Note 3.2. REVENUE BY GEOGRAPHICAL LOCATION OF THE CUSTOMER AND BUSINESS SECTOR

(in € millions) 2015
6 months
2014
6 months
2014
12 months
France 293.9 265.7 699.7
Other Western European countries (a) 381.5 362.6 849.5
North America 245.8 192.7 495.7
South America 174.2 173.4 420.9
Asia-Pacifi c 726.8 540.0 1,132.5
Central Europe, Russia and other countries 291.0 292.2 654.9
TOTAL 2,113.1 1,826.7 4,253.1

(a) "Other Western European countries" correspond to the 15 countries other than France comprising the pre-enlargement European Union. The new EU countries are included in the "Central Europe, Russia and other countries" segment.

(in € millions) 2015
6 months
2014
6 months
2014
12 months
Cookware 699.7 586.2 1,340.7
Small electrical appliances 1,413.4 1,240.5 2,912.4
TOTAL 2,113.1 1,826.7 4,253.1

NOTE 4 OPERATING EXPENSES

(in € millions) 2015
6 months
2014
6 months*
2014
12 months
Cost of sales (1,321.7) (1,145.8) (2,639.0)
Research and development costs (42.3) (36.9) (81.6)
Advertising expenses (36.0) (43.2) (104.1)
Distribution and administrative expenses (567.1) (512.9) (1,060.4)
OPERATING EXPENSES (1,967.1) (1,738.8) (3,885.1)

* After application of IFRIC 21.

NOTE 5 STATUTORY AND DISCRETIONARY EMPLOYEE PROFIT-SHARING

Statutory and discretionary employee profi t-sharing for the fi rst half has been calculated by multiplying the estimated annual cost by the percentage of annual profi t generated during the period by the companies concerned.

NOTE 6 OTHER OPERATING INCOME AND EXPENSE

(in € millions) 2015
6 months
2014
6 months
2014
12 months
Restructuring costs (9.4) (7.5) (20.0)
Impairment losses (0.5)
Gains and losses on asset disposals and other (5.2) 0.1 (1.0)
OTHER OPERATING INCOME AND EXPENSE (15.1) (7.4) (21.0)

Note 6.1. RESTRUCTURING COSTS

Restructuring costs in fi rst-half 2015 primarily comprised:

  • restructuring costs for restoring the competitiveness of the Lourdes site for €6.3 million;
  • costs linked to the industrial and commercial reorganisation of the Brazilian subsidiary for €1.7 million;
  • €1.1 million for following up on the restructuring plan for the Group's retail business in South America.

At 30 June 2014, the restructuring expenses were primarily linked to the discontinuance of the scalesactivity at Rumilly for €1.4 million, a restructuring of sales forces in Spain for €0.9 million, the monitoring of the retail activity reorganisation plan in South America for €2.3 million and costs linked to the industrial and commercial reorganisation of the Brazilian subsidiary for €2.8 million.

At 31 December 2014, the various restructuring measures started in the first six months of the year were continued. As such, the reorganisation costs in Brazil amounted to €7.4 million, and the costs linked to the resizing of the Retail business in South America to €3.8 million. In addition to these measures, the announcement of the shutdown of the Copacabana site in Colombia had generated an expense of €1.9 million and the restructuring of sales forces in Germany that began in the second half of 2014 had generated an additional expense of €1.4 million.

Note 6.2. DEPRECIATION OF ASSETS

Due to the seasonal nature of the business, impairment tests are conducted at the fi nancial year-end. The carrying amounts of brands and goodwill were reviewed at 30 June 2015 to detect any signs of impairment.

No indications of impairment of these assets were identifi ed.

Only a few immaterial assets were written down for impairment in connection with the reorganisation of the Lourdes site.

Note 6.3. GAINS AND LOSSES ON ASSET DISPOSALS AND OTHER

At 30 June 2015, the Group recognised:

  • a provision of €3 million as complementary costs linked to the decontamination of a parcelof land in Brazil
  • compensation of €1.2 million inherent in the conclusion of a dispute with a former distributor in Turkey.

In the fi rst half of 2014, expenses linked to the decontamination of a parcelof land in Brazil neutralised the receipt of €1.9 million under the liability guarantee granted as part of the acquisition of Imusa in February 2011.

At 31 December 2014, the abandonment of certain strategic projects in Brazil supplemented the data recorded in the fi rst six months.

NOTE 7 FINANCE COSTS AND OTHER FINANCIAL INCOME AND EXPENSE

(in € millions) 2015
6 months
2014
6 months
2014
12 months
FINANCE COSTS (13.6) (14.3) (31.2)
Interest cost on long-term employee benefi t obligations (1.6) (2.2) (4.4)
Exchange gains and losses and fi nancial instruments (2.9) (1.6) (1.7)
Other (4.9) (3.6) (11.7)
OTHER FINANCIAL INCOME AND EXPENSE (9.4) (7.4) (17.8)

The interest cost on long-term employee benefit obligations corresponds to the difference between the discounting adjustment for the period – arising from the fact that benefi t payments are one year closer to being paid – and the expected return on the corresponding plan assets. Discounting adjustments to other long-term liabilities and provisions are also included under this caption.

Exchange gains and losses on commercial transactions denominated in foreign currencies are included in "operating result from activity".

"Other fi nancial income and expense" includes gains and losses on hedges of foreign currency borrowings as well as the costs related to setting up these hedges.

NOTE 8 INCOME TAXES

Income tax expense for the period was calculated by multiplying consolidated pre-tax profi t by the estimated average effective tax rate for the year. The calculation was performed separately for each consolidated tax entity.

The following table provides a reconciliation between the effective tax rate of 25% and the statutory French tax rate of 38%:

(in %) 2015
6 months
2014
6 months
2014
12 months
STATUTORY FRENCH TAX RATE 38.0 38.0 38.0
Effect of different tax rates(a) (22.3) (16.1) (17.6)
Unrecognised and unrelieved tax loss carryforwards(b) 3.1 2.8 4.3
Prior period tax loss carryforwards recognised and utilised during the period (1.2) (0.7) (2.2)
Other(c) 7.4 4.0 4.4
EFFECTIVE TAX RATE 25.0 28.0 26.9

(a) The effect of different tax rates varies depending on France's contribution to consolidated profi t.

(b) Unrecognised and unrelieved tax loss carryforwards concerned South America and Asia subsidiaries which are individually immaterial.

(c) The "Other" item mainly includes taxes on distributed earnings and dividends and provisions for tax audits.

NOTE 9 TREASURY STOCK

At 30 June 2015, the company's share capital was made up of 50,169,049 shares with a par value of €1 each.

In the fi rst half of 2015, the Group bought back 550,428 SEB shares at a weighted average price of €73.15 per share and sold 800,867 shares on the market at an average price of €55.92.

At 30 June 2015, the Group held 1,040,803 treasury shares, acquired at an average price of €62.88 per share (1,421,447 shares at 30 June 2014 and 1,291,242 shares at 31 December 2014, acquired at respective average prices of €60.46 and €61.18).

3

Share Capital held in treasury changed as follows:

Transactions
(in number of shares) First half 2015
6 months
First half 2014
6 months
Full year 2014
12 months
SHARES HELD IN TREASURY AT 1 JANUARY 1,291,242 1,412,347 1,412,347
Purchases
Buyback plan 198,850 300,000 425,000
Liquidity contract 351,578 339,784 604,510
Sales
Shares sold on the market (361,965) (353,431) (616,859)
Shares allocated on exercise of stock options (438,902) (277,253) (533,756)
Shares cancelled during the period
SHARES HELD IN TREASURY AT PERIOD-END 1,040,803 1,421,447 1,291,242

NOTE 10 EMPLOYEE BENEFITS

At 30 June 2015, the Group did not consider it necessary to amend its assumptions regarding the discount rate for calculating pension liabilities.

As a reminder, the discount rates used at 31 December 2014 were 1.5% and 2% depending on the duration of the employee benefi ts obligations .

NOTE 11 PROVISIONS

30/06/2015 31/12/2014
(in € millions) Long-term Short-term Long-term Short-term Long-term Short-term
Pension and other
post-employment benefi t
obligations
148.5 9.3 143.9 7.3 146.4 12.7
Product warranties 4.4 20.5 5.4 19.4 5.0 19.7
Claims and litigation
and other contingencies
38.3 20.4 36.2 15.7 36.2 16.3
Restructuring provisions 7.0 9.0 6.0 3.5 5.3 6.9
TOTAL 202.0 55.4 191.5 45.9 192.9 55.6

Provisions are classifi ed as short-term or long-term according to whether the obligation is expected to be settled within or beyond one year.

Provision movements (other than for pensions and other post-employment benefi t obligations) were as follows:
(in € millions) 01/01/2015 Increases Reversals Utilisations Other
movements*
30/06/2015
Product warranties 24.7 9.7 0.3 9.6 0.4 24.9
Claims and litigation and
other contingencies
52.5 8.4 0.9 3.6 2.3 58.7
Restructuring provisions 12.2 6.4 0.2 2.0 (0.4) 16.0
TOTAL 89.4 24.5 1.4 15.1 2.3 99.6

* "Other movements" include foreign currency translation adjustments and the effect of changes in the scope of consolidation.

TOTAL 84.9 19.5 3.1 20.1 4.9 86.1
Restructuring provisions 12.9 2.4 1.5 4.3 9.5
Claims and litigation and
other contingencies
47.8 5.8 1.6 4.4 4.3 51.9
Product warranties 24.2 11.3 11.4 0.6 24.7
(in € millions) 01/01/2014 Increases Reversals Utilisations Other
movements*
30/06/2014

* "Other movements" include foreign currency translation adjustments and the effect of changes in the scope of consolidation.

TOTAL 84.9 34.0 4.6 31.7 6.8 89.4
Restructuring provisions 12.9 7.0 1.7 5.9 (0.1) 12.2
Claims and litigation and
other contingencies
47.8 10.3 2.9 9.3 6.6 52.5
Product warranties 24.2 16.7 16.5 0.3 24.7
(in € millions) 01/01/2014 Increases Reversals Utilisations Other
movements*
31/12/2014

* "Other movements" include foreign currency translation adjustments and the effect of changes in the scope of consolidation.

The breakdown of provisions for restructuring was as follows:

(in € millions) 30/06/2015 30/06/2014 31/12/2014
Severance costs 14.8 8.5 11.7
Site closure costs 1.2 1.0 0.5
TOTAL 16.0 9.5 12.2

NOTE 12 NET DEBT

(in € millions) 30/06/2015 30/06/2014 31/12/2014
Bonds 299.4 299.9
Bank borrowings 24.6 26.9 23.4
Finance lease liabilities 2.6 2.3 2.2
Other debt (including private placements) 180.8 268.6 220.8
Statutory employee profi t-sharing liability 24.9 31.2 30.6
LONG-TERM BORROWINGS 232.9 628.4 576.9
Bonds 299.7
Bank borrowings 44.3 47.5 49.6
Commercial paper 115.0 75.0 155.0
Current portion of long-term borrowings 215.7 123.9 184.5
SHORT-TERM BORROWINGS 674.7 246.4 389.1
TOTAL BORROWINGS 907.6 874.8 966.0
Cash and cash equivalents, net (306.6) (342.9) (341.4)
Other current fi nancial investments (149.9) (172.5)
Derivative instruments, net 1.6 (0.4) 1.0
NET DEBT 452.7 531.5 453.1

Net debt corresponds to total long-term and short-term borrowings less cash and cash equivalents and derivative instruments acquired as hedges of debt that mature in less than one year and are readily convertible into cash. It also includes short-term fi nancial investments with no signifi cant risk of a change in value but which have a maturity on the subscription date of longer than three months.

3

NOTE 13 FAIR VALUE OF FINANCIAL INSTRUMENTS

Note 13.1. FINANCIAL INSTRUMENTS

30/06/2015 Financial instruments by category
(in € millions) Carrying
amount
Fair
value
At fair value
through
profi t (excl.
derivatives)
Available
for-sale
assets
Loans and
receivables
Held to
maturity
Derivative
instruments
Assets
Other investments 12.4 12.4 12.4
Other non-current fi nancial assets 15.2 15.2 15.2
Other non-current assets 4.2 4.2 4.2
Trade receivables 641.4 641.4 641.4
Other current receivables, excl. prepaid
expenses*
29.3 29.3 29.3
Derivative instruments 67.6 67.6 67.6
Other fi nancial investments 150.9 150.9 150.9
Cash and cash equivalents 306.6 306.6 306.6
TOTAL FINANCIAL ASSETS 1,227.6 1,227.6 457.5 12.4 690.1 67.6
Liabilities
Long-term borrowings 232.9 233.6 233.6
Other non-current liabilities 2.0 2.0 2.0
Trade payables 578.2 578.2 578.2
Other current liabilities* 22.7 22.7 22.7
Derivative instruments 10.4 10.4 10.4
Short-term borrowings 674.7 686.2 686.2
TOTAL FINANCIAL LIABILITIES 1,520.9 1,533.1 0.0 0.0 0.0 1,522.7 10.4

* Excluding accrued taxes and employee benefi t expenses.

30/06/2014 Financial instruments by category
(in € millions) Carrying
amount
Fair
value
At fair value
through
profi t (excl.
derivatives)
Available
for-sale
assets
Loans and
receivables
Held to
maturity
Derivative
instruments
Assets
Investments in non-consolidated
companies (excluding Maharaja
Whiteline shares)
8.9 8.9 8.9
Other non-current fi nancial assets 13.4 13.4 13.4
Other non-current assets 5.2 5.2 5.2
Trade receivables 540.9 540.9 540.9
Other current receivables, excl. prepaid
expenses*
12.7 12.7 12.7
Derivative instruments 5.1 5.1 5.1
Cash and cash equivalents 342.9 342.9 342.9
TOTAL FINANCIAL ASSETS 929.1 929.1 342.9 8.9 572.1 5.1
Liabilities
Long-term borrowings 628.4 648.9 648.9
Other non-current liabilities* 1.7 1.7 1.7
Trade payables 490.1 490.1 490.1
Other current liabilities* 22.3 22.3 22.3
Derivative instruments 7.3 7.3 7.3
Short-term borrowings 246.4 246.4 246.4
TOTAL FINANCIAL LIABILITIES 1,396.2 1,416.7 1,409.4 7.3

* Excluding accrued taxes and employee benefi t expenses.

Financial assets consist of shares in subsidiaries and affi liates as well as operating receivables (excluding accrued taxes and employee benefi t expense), debt securities and other cash equivalents classifi ed as current assets.

The fair value of trade and other receivables (classifi ed as held-tomaturity investments) is equivalent to their carrying amount, in view of their short maturities.

Non-current fi nancial assets consist mainly of investments in nonconsolidated companies, certain receivables related to those investments and operating receivables due beyond one year.

Financial assets that are not quoted in an active market are recognised in the balance sheet at cost, which is representative of their fair value.

Financial liabilities comprise borrowings and other fi nancing, including bank overdrafts, and operating liabilities (excluding accrued taxes and employee benefi t expense).

Borrowings that are not quoted in an active market are measured by the discounted cash fl ow method, applied separately to each individual facility, based on market rates observed at the period-end for similar facilities and the average spread obtained by the Group for its own issues.

Note 13.2. INFORMATION ON FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

In accordance with the amended IFRS 7, fair value measurements are classifi ed using a fair value hierarchy that refl ects the signifi cance of the inputs used in making the measurements. The hierarchy breaks down into three levels, as follows:

  • level 1: quoted prices in active markets for the same instrument;
  • level 2: quoted prices in active markets for similar assets or liabilities or other valuation techniques for which all signifi cant inputs are based on observable market data;
  • level 3: valuation techniques for which any signifi cant input is not based on observable market data.
(in € millions) 30/06/2015
Total Level 1 Level 2 Level 3
Assets
Derivative instruments 67.6 67.6
Other fi nancial investments 149.9 149.9
Cash and cash equivalents 306.6 306.6
TOTAL FINANCIAL ASSETS MEASURED AT
FAIR VALUE
524.1 456.5 67.6
Liabilities
Derivative instruments 10.4 10.4
TOTAL FINANCIAL LIABILITIES MEASURED
AT FAIR VALUE
10.4 10.4

The portfolio of derivatives used by the Group to manage risk mainly includes forward currency contracts, currency swaps and commodity swaps. These instruments are classifi ed as Level 2, as their fair value is calculated using internal valuation models based on observable data.

NOTE 14 SIGNIFICANT EVENTS AND LITIGATION

There was no signifi cant event or signifi cant litigation occurring in the fi rst half of 2015 that impacted the fi nancial position of the Group.

NOTE 15 RELATED PARTY TRANSACTIONS

No material transactions with related parties took place during the period and there were no changes in the nature of transactions as described in Note 30 to the consolidated fi nancial statements in the 2014 Registration Document.

NOTE 16 SUBSEQUENT EVENTS

OBH Nordica

In early July 2015, an agreement was reached with funds advised by Triton to purchase 100% of the shares of the OBH Nordica group, a leading player in the small domestic appliance (SDA) industry in Scandinavia. The closing is expected to take place at the end of August, which is the end of OBH Nordica's fi scal year.

Founded in 2002 and headquartered in Sundbyberg, north of Stockholm, OBH Nordica markets a wide range of kitchen products (kitchen electrics and cookware), representing 80% of its revenue, as well as personal and home care appliances. Thanks to strong in-house innovation, the company enjoys topranking positions in the Nordic region, implementing a single brand strategy with high awareness in Sweden, Denmark, Finland and Norway. It has a solid foothold in all distribution channels, with access to some 4,200 points of sales.

OBH Nordica achieved SEK612m turnover in 2014 (approximately €65m) and has around 7% value market share in the Nordic SDA market .

Supor

On 31 December 2014, Groupe SEB made a commitment to purchase 10 million Supor shares (1.58% of the capital) from the founding family, Su. The transaction will be made at the price of 17.5 yuan per share. At the end of June 2015, the Chinese authorities approved this transaction which is now in the closing phase.

No additional material events occurred between the date these fi nancial statements were drawn up and 22 July 2015, when they were approved by the Board of Directors.

Statutory auditors' review report on the half-yearly fi nancial information

This is a free translation into English of the Statutory auditors' report issued in French and is provided solely for the convenience of English speaking users. This report should be read in conjunction and construed in accordance with French law and professional auditing standards applicable in France.

FOR THE PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015

To the shareholders,

In compliance with the assignment entrusted to us by General Meeting and in accordance with the requirements of Article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

  • the review of the accompanying condensed half-yearly consolidated fi nancial statements of SEB, for the period from 1 January 2015 to 30 June 2015;
  • the verifi cation of the information presented in the half-yearly management report.

These condensed half-yearly consolidated fi nancial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these fi nancial statements based on our review.

Conclusion on the fi nancial statements

We conducted our review in accordance with professional standards applicable in France. A review of interim fi nancial information consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all signifi cant matters that might be identifi ed in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated fi nancial statements are not prepared, in all material respects, in accordance with IAS 34 – standard of the IFRSs as adopted by the European Union applicable to interim fi nancial information.

Specifi c verifi cation

We have also verifi ed the information presented in the half-yearly management report on the condensed half-yearly consolidated fi nancial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated fi nancial statements.

Courbevoie and Lyon, on the 22 July 2015 The Statutory auditors French original signed by

PricewaterhouseCoopers Audit Mazars

Nicolas Brunetaud Christine Dubus Thierry Colin

Statement by the person responsible for the Interim Financial Report

I hereby certify that, to my knowledge,

  • the condensed fi n ancial statements for the six months ended 30 June 2015have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets and liabilities, fi n ancial position and results of the company and consolidated companies;
  • the interim management report includes a fair review of the signifi c ant events of the past six months, their impact on the interim fi nancial statements and the main related party transactions for the period, as well as a description of the main risks and uncertainties in the second half of the year.

Écully, 22July 2015 Chairman and CEO

Thierry de La Tour d'Artaise

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