Groupe SEB

is the world reference in small domestic appliances. Talking about brands

now.

So we have close to a 30 iconic brands.

You will recognize

some of them.

some of them.

We have Lagostina, WMF, KRUPS, EMSA also.

Now, we will have

a few words about our strategy planning application.

We call it "strategy orientations".

To do so,

I need to briefly present you with some simplified organization shots of the Group.

Now we are going to initialize the exercise,

which is a simulation exercise -

the end result will be this five year business plan.

It's important to have a consistent view of the past to plan the coming five

years.

The Coporate initialize it.

If they have specific assumptions regarding the growth of the expenses of the Group,

they input it.

They can also frame the organic growth

of the sales.

Then it is the SBUs

who,

given their R&D pipe on the products they are about to launch,

give their own view of their sales; of their business across the geographies,

and in the end

it is the continents who take the lead and who end the process.

These three versions

are separate. Each one can see the versions of the others,

and has to input its own data based on what the others did.

So it's a collaborative and iterative process.

To sum up -

it is a bit every slide -

but first of all

you have,

as I said,

a baseline P&L which is created.

This is the base for extrapolation,

the main axes,

are products and markets

but you also have

secondary axes.

You can work by brand, by production site, by marketing or product development

responsibility.

Not everyone has to follow this,

it is your pick the way you want to

work.

If you have a specific issue to mention by production site

or, depending on your brand,

you are going to use these underlying axes. So, in the end, it is consistent

because Board brings it down to the lowest level

and each user can can manage the tool

as he wishes.

Can be top-down, bottom-up, by

product, by geography.

So this is very

smart and very much appreciated by all the users. Because we didn't change the

processes, with this tool we have enabled them to work as they did in the past.

Then - maybe you want

one small comment to finish - is that if you first work on those sales, on the

gross margin

for instance,

your OpEx will follow in terms of percentage -

so you will keep the same operating profit as a percentage of operating margin

and then you will fine tune your OpEx, depending on the growth you generate.

Some screens about the the application,

we follow here the process.

We start with the sales screen,

which can be managed in volume, in value.

You also have the gross margin in the screens.

Then you follow specifically the advertising because,

of course,

to sustain the growth

you need to you need to communicate and in the end,

and of course we way have hidden data

which is a bit sensitive,

we have over all the P&L. And there you can also play on

the operating expenses and you see there you must fill in the

ownership,

or I will say the user only has access to his own ownership.

You can see the global P&L

but he will be only able to change the expenses on there in his own responsibility.

We added this year a new feature.

We have a logic of versioning from our app,

so we start with 80% of the need of the specification and then year after year

we intend to grow the base of the app.