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2011 Results,
February 2, 2012
Keith McLoughlin, President and CEO
Peter Nyquist, SVP IR and Financial Information
Per Carlsson, Acting CFO
2011 summary


 Underlying EBIT of SEK 4bn
 – Price pressure and raw-materials headwind
 – Weak demand in mature markets while emerging markets
   continued to grow
 Strong underlying cash flow
 Acquisitions of Olympic Group and CTI
 Adaptation of production capacity
 Reduction of overhead costs
 Investment in Marketing, R&D and Design organizations



                                                          2
Q4 Highlights

EBIT (SEKm)                                                          Margin (%)
                                                                                     Underlying EBIT amounted to
2500                                                                            8
                                                                                      SEK 1,441m
2000
                                   6,2                                               Non-recurring items amounted to
                                                                                6
                                                                      5,1             SEK 825m
1500                                                                                  – Overhead reductions: SEK 635m
                                                                                4
                                                                                      – WEEE related costs: SEK 190m
1000
                                                                                     North America: Lower volumes
                                                                                2
500                                                                                   and higher costs for raw
                                                                                      materials and sourced products
  0                                                                             0
                                                                                     Rest of the Group showed solid
       (SEKm)                                  Q4 2011          Q4 2010
       Sales                                     28,369            27,556
                                                                                      results in a tough environment
       EBIT*                                         616            1,714
       Margin*                                       2.2                  6.2
       Underlying EBIT**                          1,441             1,714
       Underlying margin**                           5.1               6.2
       * Excluding items affecting comparability
       * *Excluding items affecting comparability & non-recurring items
                                                                                                                    3
Non-recurring costs in Q4


 Non-recurring items            Impact, SEKm
 Reduction of staffing levels           -635

  Europe                                -500

  North America                          -15

  Asia/Pacific                           -20

  Small Appliances                       -45

  Common Group functions                 -55

 WEEE related costs, Europe             -190

 Total                                  -825
                                               4
Q4 Cash flow


 Operating cash flow, excluding acquisitions and
 divestments, amounted to SEK 287m
  – Payment of CTI amounted to SEK –3,804m

 Lower operating income than in Q4, 2010
 Seasonally higher sales in the quarter
 Continued structural improvement of working capital



                                                        5
Consumer Durables
Major Appliances Europe,
Middle East & Africa
EBIT (SEKm)                                           Margin (%)
                                                                    Excluding acquisitions, lower
1000                                                         10
                                                                     sales as a result lower prices
                                                                     and negative country mix
800                                                          8
                                                                    Improved underlying EBIT
600
                                                     5,0
                                                             6       –   Lower prices
                                 4,6
                                                                     –   Improved product mix
400                                                          4
                                                                     –   Negative country mix
200                                                          2
                                                                     –   Cost savings
                                                                     –   Higher costs for raw materials
  0                                                          0      Non-recurring items amounted
       (SEKm)                            Q4 2011   Q4 2010
       Sales                               9,749     9,677
                                                                     to SEK 690m
       EBIT                                 -202      447
       Margin                               -2.1       4.6
       Underlying EBIT*                     488       447
       Underlying margin*                    5.0       4.6
       * Excluding non-recurring items

                                                                                                          6
Negative growth in Europe
 Further weakening in Southern Europe and slow-down
 in Eastern Europe



                                       Quarterly comparison y-o-y
  10%
                                                                                                               Y-o-y: +0.4%
    5%


    0%


   -5%

 -10%


 -15%


 -20%
           Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                  2006                2007                2008                2009                2010              2011
Market Development %

W. Eur.    +4    +1    +1   +5   +1   +1   -1   -5   -4   -4   -5   -8   -9   -9   -4   -2   +1   0    0   0   -2   -2   -3   -3

E. Eur.    +1    +9    +6   +7 +14 +5      +5 +10 +6      +5   +4   -15 -31 -30 -26 -17      -7   +1   +5 +13 +13 +12 +7      +9


                                                                                                                                   7
Consumer Durables
Major Appliances North America

EBIT (SEKm)                                           Margin (%)
                                                                    Lower sales as a result of lower
600                                                          6
                                                                     volumes
                                 4,3
                                                                    Underlying EBIT declined to
400                                                          4
                                                                     SEK 91m
                                                                     – Lower volumes – reduced
200                                                  1,5     2         capacity utilization
                                                                     – Higher raw-material costs
  0                                                          0       – Higher transportation costs
                                                                     – Higher costs for sourced
-200                                                         -2
                                                                       products
       (SEKm)                            Q4 2011   Q4 2010          Non-recurring items amounted
       Sales                               6,271     6,752
                                                                     to SEK 15m
       EBIT                                  76       291
       Margin                                1.2       4.3          Price increases
       Underlying EBIT*                       91      291
       Underlying margin*                    1.5       4.3
       * Excluding non-recurring items

                                                                                                     8
Market in North America
continued to decline in Q4

                       Quarterly comparison y-o-y
15%


10%


 5%


 0%


-5%


-10%


-15%                                                                Y-o-y: -4%

-20%
       Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
          2006         2007        2008         2009         2010       2011

                                                                                 9
Consumer Durables
Major Appliances Latin America

EBIT (SEKm)                       Margin (%)
                                                Market growth in Brazil and in
600                                      8
                                                 the rest of Latin America
               6,8
500
                                   5,7
                                                EBIT improved to SEK 345m
                                         6
400
                                                 – Higher volumes
                                                 – Negative customer mix due to
300                                      4         consolidation of retailers
200
                                         2
100

 0                                       0

      (SEKm)         Q4 2011   Q4 2010

      Sales            6,003     4,987

      EBIT              345       337
      Margin             5.7       6.8




                                                                                  10
Consumer Durables
Major Appliances Asia/Pacific

EBIT (SEKm)                                          Margin (%)
                                                                   Lower sales and EBIT in
300                                                         14
                                                                    Australia
250                                                10,7
                                                            12      – Price pressure
                               9,7
                                                            10      – Higher costs for raw materials
200
                                                            8      Southeast Asia and China
150
                                                            6
                                                                    – Market-share gain in strong
100
                                                                      markets
                                                            4
                                                                    – Continued good profitability in
50                                                          2         Southeast Asia
 0                                                          0      Costs for development of new
      (SEKm)                            Q4 2011   Q4 2010           products
      Sales                               2,180     2,069
      EBIT                                 213       200
                                                                   Non-recurring items amounted
      Margin                                9.8       9.7           to SEK 20m
      Underlying EBIT*                      233      200
      Underlying margin*                   10.7       9.7
      * Excluding non-recurring items

                                                                                                        11
Consumer Durables
Small Appliances

EBIT (SEKm)                                          Margin (%)
                                                                   Higher sales
400                           11,2                          12
                                                   10,9             – Higher volumes
                                                            10      – Improved product mix
300
                                                            8
                                                                   Improved underlying EBIT
                                                                    –   Higher volumes
200                                                         6
                                                                    –   Improved product mix
                                                            4       –   Lower prices
100
                                                                    –   Increased costs for sourced
                                                            2
                                                                        products
 0                                                          0      Non-recurring items amounted
      (SEKm)                            Q4 2011   Q4 2010
                                                                    to SEK 45m
      Sales                               2,579     2,414
      EBIT                                 237       271
      Margin                                9.2      11.2
      Underlying EBIT*                      282       271
      Underlying margin*                   10.9      11.2
      * Excluding non-recurring items

                                                                                                      12
Professional Products
Food-service & Laundry products

EBIT (SEKm)                        Margin (%)
                                                 Lower sales and EBIT for Food-
400                                       20
                                                  service products
                                                  – Lower sales in Southern Europe
               14,7
300                                       15      – Higher raw-material costs
                                  12,0
                                                  – Price increases
200                                       10
                                                 Lower EBIT for Laundry
                                                  products
100                                       5       – Lower volumes

 0                                        0

      (SEKm)          Q4 2011   Q4 2010

      Sales             1,587     1,657

      EBIT*              191       243
      Margin             12.0      14.7




                                                                                13
Steel: Costs in line with 2011,
majority hedged

Steel as share of total                                         Market prices
raw-material purchases (2011)                               US CR USD/Short tonne
                                                   1 000



                                                    900



                                                    800
                                      43%
                                                    700



                                                    600



                                                    500
                            Steel                           Q4    Q1   Q2    Q3     Q4    Q1
 In 2011, Electrolux purchased raw materials for
 approximately SEK 20 billion.                             2010          2011            2012
                                                                                           14
Plastics: High level of uncertainty,
slight headwind expected

Plastics as share of total                                Market prices for plastics,
raw-material purchases (2011)                                weighted average
                                                   280




                                                   260

                                    29%
                                                   240




                                                   220




                                                   200
                          Plastics                        Q4    Q1    Q2    Q3     Q4    Q1
 In 2011, Electrolux purchased raw materials for
 approximately SEK 20 billion.                           2010           2011            2012
                                                                                          15
Q1 and FY 2012 y-o-y
In accordance with forward-looking statements
in the CEO letter and press release


                          Q1            2012FY      Comment
                       Slightly          Slightly   Q1; Tough comparables in NA.
Volumes                                             European market continued weak
                       negative          positive

Price/Mix               Positive         Positive   Q1; Positive price effect in NA

                       Negative        Negative     Steel: Flat
Raw-material costs                                  Plastics: Some headwind
                      SEK 100m        SEK 0-500m
                                                    An intensive launch period in
R&D and marketing       Higher           Higher     2012 starting in Q1
                                                    An uncertain Egyptian market
Acquired units       SEK 50-100m       ~SEK 400m    compensated by a strong CTI
                                                    Incl. global operations, overhead
Cost savings          ~SEK 200m         ~SEK 1bn    reduction and improved
                                                    manufacturing
Transportation and                                  Q1; Cost increase for
                        Higher           Higher     sourced products
sourced products

                                                                                        16
17
Factors affecting forward-
looking statements
Factors affecting forward-looking statements
This presentation contains “forward-looking” statements within the meaning
of the US Private Securities Litigation Reform Act of 1995. Such statements
include, among others, the financial goals and targets of Electrolux for
future periods and future business and financial plans. These statements
are based on current expectations and are subject to risks and uncertainties
that could cause actual results to differ materially due to a variety of factors.
These factors include, but may not be limited to the following: consumer
demand and market conditions in the geographical areas and industries in
which Electrolux operates, effects of currency fluctuations, competitive
pressures to reduce prices, significant loss of business from major retailers,
the success in developing new products and marketing initiatives,
developments in product liability litigation, progress in achieving operational
and capital efficiency goals, the success in identifying growth opportunities
and acquisition candidates and the integration of these opportunities with
existing businesses, progress in achieving structural and supply-chain
reorganization goals.

                                                                                    18

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Electrolux Consolidated results 2011 presentation

  • 1. 2011 Results, February 2, 2012 Keith McLoughlin, President and CEO Peter Nyquist, SVP IR and Financial Information Per Carlsson, Acting CFO
  • 2. 2011 summary  Underlying EBIT of SEK 4bn – Price pressure and raw-materials headwind – Weak demand in mature markets while emerging markets continued to grow  Strong underlying cash flow  Acquisitions of Olympic Group and CTI  Adaptation of production capacity  Reduction of overhead costs  Investment in Marketing, R&D and Design organizations 2
  • 3. Q4 Highlights EBIT (SEKm) Margin (%)  Underlying EBIT amounted to 2500 8 SEK 1,441m 2000 6,2  Non-recurring items amounted to 6 5,1 SEK 825m 1500 – Overhead reductions: SEK 635m 4 – WEEE related costs: SEK 190m 1000  North America: Lower volumes 2 500 and higher costs for raw materials and sourced products 0 0  Rest of the Group showed solid (SEKm) Q4 2011 Q4 2010 Sales 28,369 27,556 results in a tough environment EBIT* 616 1,714 Margin* 2.2 6.2 Underlying EBIT** 1,441 1,714 Underlying margin** 5.1 6.2 * Excluding items affecting comparability * *Excluding items affecting comparability & non-recurring items 3
  • 4. Non-recurring costs in Q4 Non-recurring items Impact, SEKm Reduction of staffing levels -635 Europe -500 North America -15 Asia/Pacific -20 Small Appliances -45 Common Group functions -55 WEEE related costs, Europe -190 Total -825 4
  • 5. Q4 Cash flow  Operating cash flow, excluding acquisitions and divestments, amounted to SEK 287m – Payment of CTI amounted to SEK –3,804m  Lower operating income than in Q4, 2010  Seasonally higher sales in the quarter  Continued structural improvement of working capital 5
  • 6. Consumer Durables Major Appliances Europe, Middle East & Africa EBIT (SEKm) Margin (%)  Excluding acquisitions, lower 1000 10 sales as a result lower prices and negative country mix 800 8  Improved underlying EBIT 600 5,0 6 – Lower prices 4,6 – Improved product mix 400 4 – Negative country mix 200 2 – Cost savings – Higher costs for raw materials 0 0  Non-recurring items amounted (SEKm) Q4 2011 Q4 2010 Sales 9,749 9,677 to SEK 690m EBIT -202 447 Margin -2.1 4.6 Underlying EBIT* 488 447 Underlying margin* 5.0 4.6 * Excluding non-recurring items 6
  • 7. Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 10% Y-o-y: +0.4% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011 Market Development % W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3 -3 E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 +9 7
  • 8. Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%)  Lower sales as a result of lower 600 6 volumes 4,3  Underlying EBIT declined to 400 4 SEK 91m – Lower volumes – reduced 200 1,5 2 capacity utilization – Higher raw-material costs 0 0 – Higher transportation costs – Higher costs for sourced -200 -2 products (SEKm) Q4 2011 Q4 2010  Non-recurring items amounted Sales 6,271 6,752 to SEK 15m EBIT 76 291 Margin 1.2 4.3  Price increases Underlying EBIT* 91 291 Underlying margin* 1.5 4.3 * Excluding non-recurring items 8
  • 9. Market in North America continued to decline in Q4 Quarterly comparison y-o-y 15% 10% 5% 0% -5% -10% -15% Y-o-y: -4% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011 9
  • 10. Consumer Durables Major Appliances Latin America EBIT (SEKm) Margin (%)  Market growth in Brazil and in 600 8 the rest of Latin America 6,8 500 5,7  EBIT improved to SEK 345m 6 400 – Higher volumes – Negative customer mix due to 300 4 consolidation of retailers 200 2 100 0 0 (SEKm) Q4 2011 Q4 2010 Sales 6,003 4,987 EBIT 345 337 Margin 5.7 6.8 10
  • 11. Consumer Durables Major Appliances Asia/Pacific EBIT (SEKm) Margin (%)  Lower sales and EBIT in 300 14 Australia 250 10,7 12 – Price pressure 9,7 10 – Higher costs for raw materials 200 8  Southeast Asia and China 150 6 – Market-share gain in strong 100 markets 4 – Continued good profitability in 50 2 Southeast Asia 0 0  Costs for development of new (SEKm) Q4 2011 Q4 2010 products Sales 2,180 2,069 EBIT 213 200  Non-recurring items amounted Margin 9.8 9.7 to SEK 20m Underlying EBIT* 233 200 Underlying margin* 10.7 9.7 * Excluding non-recurring items 11
  • 12. Consumer Durables Small Appliances EBIT (SEKm) Margin (%)  Higher sales 400 11,2 12 10,9 – Higher volumes 10 – Improved product mix 300 8  Improved underlying EBIT – Higher volumes 200 6 – Improved product mix 4 – Lower prices 100 – Increased costs for sourced 2 products 0 0  Non-recurring items amounted (SEKm) Q4 2011 Q4 2010 to SEK 45m Sales 2,579 2,414 EBIT 237 271 Margin 9.2 11.2 Underlying EBIT* 282 271 Underlying margin* 10.9 11.2 * Excluding non-recurring items 12
  • 13. Professional Products Food-service & Laundry products EBIT (SEKm) Margin (%)  Lower sales and EBIT for Food- 400 20 service products – Lower sales in Southern Europe 14,7 300 15 – Higher raw-material costs 12,0 – Price increases 200 10  Lower EBIT for Laundry products 100 5 – Lower volumes 0 0 (SEKm) Q4 2011 Q4 2010 Sales 1,587 1,657 EBIT* 191 243 Margin 12.0 14.7 13
  • 14. Steel: Costs in line with 2011, majority hedged Steel as share of total Market prices raw-material purchases (2011) US CR USD/Short tonne 1 000 900 800 43% 700 600 500 Steel Q4 Q1 Q2 Q3 Q4 Q1 In 2011, Electrolux purchased raw materials for approximately SEK 20 billion. 2010 2011 2012 14
  • 15. Plastics: High level of uncertainty, slight headwind expected Plastics as share of total Market prices for plastics, raw-material purchases (2011) weighted average 280 260 29% 240 220 200 Plastics Q4 Q1 Q2 Q3 Q4 Q1 In 2011, Electrolux purchased raw materials for approximately SEK 20 billion. 2010 2011 2012 15
  • 16. Q1 and FY 2012 y-o-y In accordance with forward-looking statements in the CEO letter and press release Q1 2012FY Comment Slightly Slightly Q1; Tough comparables in NA. Volumes European market continued weak negative positive Price/Mix Positive Positive Q1; Positive price effect in NA Negative Negative Steel: Flat Raw-material costs Plastics: Some headwind SEK 100m SEK 0-500m An intensive launch period in R&D and marketing Higher Higher 2012 starting in Q1 An uncertain Egyptian market Acquired units SEK 50-100m ~SEK 400m compensated by a strong CTI Incl. global operations, overhead Cost savings ~SEK 200m ~SEK 1bn reduction and improved manufacturing Transportation and Q1; Cost increase for Higher Higher sourced products sourced products 16
  • 17. 17
  • 18. Factors affecting forward- looking statements Factors affecting forward-looking statements This presentation contains “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following: consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the success in developing new products and marketing initiatives, developments in product liability litigation, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals. 18