direct/SEB: 2005 first-half results

2005 FIRST-HALF RESULTS

Stable Operating Margin
Strengthened Positions

- In an economic environment that varied greatly from one region to another, the Group´s active acquisitions strategy helped boost sales by 3.3%. Operating margin was stable at EURO 67 million.
- Income from ordinary activities before net financial expense rose by 35% to EURO 51 million and actions taken to increase manufacturing competitiveness were pursued. Net income totalled EURO 24 million.
- Following the first-half acquisitions, net debt at 30 June 2005 amounted to EURO 440 million. The debt-to-equity ratio therefore stood at 0.6, confirming Group´s healthy financial structure.

Table as attachment to the press release:
http://www.directnews.de/servlets/LoadBinaryServlet/808377/SebS1Results05_1.pdf

"The generally unstable, mixed economic environment of the past two years and the structural changes in our business support our strategic commitment to global expansion, targeted acquisitions and constant adaptation. Pursuing these three paths will enable us to consolidate our market positions and performance over the long run."

Thierry de La Tour d´Artaise, Chairman and Chief Executive Officer

- Stable operating margin

Sales increased by 3.3% in the six months ended 30 June 2005. Business was very contrasted from one region to another, as sales declined in Europe, where consumer spending remained sluggish, rebounded in North America and rose sharply in South America, as well in other countries around the world that represent future growth drivers. In this context, sales at constant scope of consolidation and exchange rates were down by 2% for the period, whereas the consolidation of acquisitions (All-Clad for six months, Lagostina for two months and Panex for one month) added EURO 47 million to consolidated sales.

Operating margin was stable at EURO 67 million. At a time of sharp deflationary pressure on prices, this result reflects the positive impact of acquisitions and Group´s ongoing initiatives to maintain competitiveness through greater manufacturing efficiency and disciplined management of purchasing prices and costs.

- Income from operations (EBIT) up 35% (not to be extrapolated over the entire year) Net income down 6%

During the first half, the iron production plant in Germany was resized. The resulting cost reduced income from operations by EURO 11 million (compared with restructuring expenses of EURO 20 million in first-half 2004). Measures to adjust the production base and ensure long-term competitiveness will be pursued.

Net income declined by 6% to EURO 24 million, reflecting higher interest expense due to acquisitions and an increase in income tax for the period, as expected.

- A healthy balance sheet

At 30 June 2005, debt totalled EURO 440 million, compared to EURO 330 million at 31 December 2004. The increase resulted from acquisitions made in the past six months as well as from the impact of a more global business for the Group. Shareholders´ equity at 30 June amounted to EURO 709 million, an all-time high. As a result, the debt-to-equity ratio stood at 0.6, compared with 0.5 at 31 December 2004.

- Outlook

With the economic and competitive environment in Europe expected to remain difficult, Groupe SEB is taking a cautious outlook for the months ahead. Nonetheless, the Group is confident that it will meet its 2005 objectives of growth in sales at constant exchange rates and of a slight improvement in operating margin, thanks to its ambitious programme of new product launches -notably in the premium segment-, rapid international expansion, ongoing measures to adjust production resources and contributions from acquisitions.

Consolidated income statements at 30 June
http://www.directnews.de/servlets/LoadBinaryServlet/808390/SebS1Results05_2.pdf

The interim report will be available in early October
Sales for the first nine months of the year will be announced on 13 October


Groupe SEB - Communication Corporate
BP 172 - Les 4 M - Chemin du Petit Bois - 69134 ECULLY cedex - 04.72.18.16.40




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