COMMISSION DECISION
of 25 July 2012
on state aid that France plans to grant to FagorBrandt (SA.23839 (C 44/2007))
(notified under document C(2012) 5043)
(Only the French text is authentic)
(Text with EEA relevance)
(2013/283/EU)
1.
PROCEDURE
2.
DESCRIPTION
3.
GROUNDS FOR INITIATING THE PROCEDURE
3.1.
Risk of circumvention of the prohibition on restructuring aid to newly created firms
3.2.
Risk of circumvention of the obligation to reimburse incompatible aid
3.3.
Doubts about the company’s long-term viability
3.4.
Inadequacy of the compensatory measures
3.5.
Doubts about the aid recipient’s contribution
4.
COMMENTS FROM INTERESTED PARTIES
4.1.
Comments from Electrolux
4.2.
Comments from the second competitor
4.3.
Comments from FagorBrandt
5.
COMMENTS FROM FRANCE
5.1.
Comments from France on the opening decision
5.2.
Comments from France on the interested parties’ comments
6.
ASSESSMENT OF THE AID
6.1.
Existence of aid within the meaning of Article 107(1) TFEU
6.2.
Legal basis of the assessment
6.2.1.
Legal basis for a finding of compatibility
6.2.2.
The relevant period for purposes of the assessment
6.3.
Eligibility of the company for restructuring aid
(EUR million) |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Turnover |
847,1 |
857,6 |
813,2 |
743,6 |
779,7 |
903,0 |
Gross margin |
205,2 |
215,1 |
207,0 |
180,6 |
171,6 |
190,4 |
Profit or loss |
15,5 |
13,8 |
(3,6) |
(13,4) |
(18,2) |
(5,7) |
Capital and reserves |
69,8 |
83,4 |
79,8 |
70,6 |
79,4 |
73,6 |
6.4.
Previsions concerning previous unlawful and incompatible aid
6.4.1.
The aid granted by France
6.4.2.
The unlawful Italian aid
6.5.
No undue distortion of competition
6.5.1.
The need for compensatory measures
6.5.2.
Analysis of the measures already implemented
6.5.3.
Additional compensatory measures proposed by the French authorities
6.5.4.
Conclusion regarding the compensatory measures proposed by the French authorities; imposition by the Commission of an additional compensatory measure
EUR million |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
FagorBrandt turnover |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
Impact CM, higher estimate |
– [40-60] |
– [40-60] |
– [40-60] |
– [40-60] |
– [40-60] |
– [40-60] |
– [40-60] |
– [40-60] |
Impact CM, lower estimate |
– [55-75] |
– [55-75] |
– [55-75] |
– [55-75] |
– [55-75] |
– [55-75] |
– [55-75] |
– [55-75] |
EUR million |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
Final profit or loss without CM |
[0-5] |
[5-10] |
[10-15] |
[10-15] |
[15-20] |
[15-20] |
[15-20] |
[15-20] |
Impact CM, higher estimate |
– [10-15] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
Impact CM, lower estimate |
– [15-20] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
– [5-10] |
6.6.
Restoration of the company’s viability
6.6.1.
Restructuring plan, market prospects and credibility of the forecasts in the plan
EUR million |
2009 |
2010 |
2011 |
2012 |
FagorBrandt turnover |
[900-1 200] |
[900-1 200] |
[900-1 200] |
[900-1 200] |
Final profit or loss |
[0-5] |
[5-10] |
[10-15] |
[10-15] |
6.6.2.
Doubts about the restoration of viability raised by an interested party
6.6.3.
Effect of the compensatory measures on the restoration of viability
Cessation of the marketing of refrigeration, cooking and dishwashing products under the Vedette brand |
Best case |
|||||
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Turnover |
903,0 |
[900-1 000] |
[900-1 000] |
[900-1 000] |
[900-1 000] |
[900-1 000] |
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating profit before non-recurrent items |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating profit (EBIT) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Pre-tax profit |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Profit or loss |
– [5-10] |
– [5-10] |
– [5-10] |
[0-5] |
[5-10] |
[5-10] |
Free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Accumulated free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Cessation of the marketing of refrigeration, cooking and dishwashing products under the Vedette brand |
Worst case |
|||||
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Turnover |
903,0 |
[900-1 000] |
[900-1 000] |
[900-1 000] |
[900-1 000] |
[900-1 000] |
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating profit before non-recurrent items |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating profit (EBIT) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Pre-tax profit |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Profit or loss |
– [5-10] |
– [5-10] |
– [10-15] |
[0-5] |
[0-5] |
[5-10] |
Free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Accumulated free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
6.7.
Aid limited to the minimum: real contribution, free of aid
|
EUR million |
% |
Restructuring costs |
62,5 |
100 % |
Financed by: |
||
Aid recipient’s own share |
4,6 |
7,4 % |
Shareholder contribution |
26,9 |
43 % |
State aid |
31 |
49,6 % |