Electrolux Interim Report Q1 2012 Presentation

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Highlights of the first quarter of 2012. Net sales amounted to SEK 25,875m (23,436) and income for the period was SEK 559m (457), or SEK 1.96 (1.61) per share. Net sales improved by 10.4%, of which 3.5% was organic growth. The acquisitions of CTI and Olympic Group impacted sales by 5.8%.

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Electrolux Interim Report Q1 2012 Presentation

  1. 1. Q1 Results,April 25, 2012Keith McLoughlin, President and CEOTomas Eliasson, CFOPeter Nyquist, SVP IR
  2. 2. Q1 HighlightsEBIT (SEKm) Margin (%)1 400 5 • Strong growth of 10.4%1 200 4 – Organic growth of 3.5% 3.61 000 3.0 – Acquisitions growth of 5.8% 3 800 • Operating income increased to 600 2 SEK 943m 400 • Price increases 1 200 • Market-share gain in Europe 0 2011 2012 0 • Mix improvement in Latin America (SEKm) Q1 2012 Q1 2011 Sales 25,875 23,436 • Higher input costs EBIT* 943 696 Margin* 3.6 3.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 2
  3. 3. Bridge of the quarterly sales and EBIT Organic Acquisitions/ Sale ofSEKm Q1 2011 Growth Currency Divestments Assets*) Q1 2012Net sales 23,436 835 245 1,359 25,875Net sales % 3.5 1.1 5.8 10.4EBIT 696 167 80 100 -100 943EBIT % 3.0 20.0 32.7 7.4 3.6Dilution/Accretion % 0.6 0.3 0.2 -0.5* Includes sale of a non-core business within professional food-service equipment of SEK 50m and a few smaller items during Q1, 2011. 3
  4. 4. Q1 Cash flow Cash flow SEKm Q1 2012 Q1 2011 Operations 1,454 1,178 Change in operating assets and liabilities -492 -1,288 Capital expenditure -1,005 -866 Cash flow from operations -43 -976
  5. 5. Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm) Margin (%)600 6 • Increased volumes due to 4.1 market share gain400 3.4 4 – Improved position in premium200 2 segments – AEG launch successful 0 0 • EBIT amounted to SEK 281m-200 -2 – Lower prices than Q1, 2011 – Negative country mix partially-400 -4 2011 2012 offset by positive product mix (SEKm) Q1 2012 Q1 2011 – Higher sales volumes Sales 8,265 7,656 EBIT* 281 311 Margin* 3.4 4.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 5
  6. 6. New launch of Electrolux-brandedproducts in Europe
  7. 7. Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 10% 5% 0% -5%-10%-15%-20% 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1W. 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 -2E. 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 +5 Market Development % 7
  8. 8. Consumer DurablesMajor AppliancesNorth AmericaEBIT (SEKm) Margin (%)200 2.2 3 • Higher sales despite lower150 volumes – Price increases100 1,5 • EBIT increased to SEK 159m 50 – Higher prices 0 0 – Improved efficiency -50 – Higher costs for raw materials -1.1 and sourced products-100 -1,5 2011 2012 (SEKm) Q1 2012 Q1 2011 Sales 7,107 6,728 EBIT* 159 -71 Margin* 2.2 -1.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8
  9. 9. Market for core appliances declined inNorth America Quarterly comparison y-o-y15%10% 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 Q1 2006 2007 2008 2009 2010 2011 2012 9
  10. 10. Consumer DurablesMajor AppliancesLatin AmericaEBIT (SEKm) Margin (%)400 5.4 6 • Incentives in Brazil contributed to strong market growth300 – Strong organic growth in other 4 3.5 Latin American markets200 – Acquisition of CTI 2 • EBIT improved to SEK 278m100 – Contribution from CTI – Improved mix 0 0 2011 2012 – Higher volumes (SEKm) Q1 2012 Q1 2011 – Improved efficiency Sales 5,149 3,998 EBIT* 278 139 – Higher costs for raw materials Margin* 5.4 3.5 * Excluding items affecting comparability. Non-recurring items are included in all figures. 10
  11. 11. Consumer DurablesMajor AppliancesAsia/PacificEBIT (SEKm) Margin (%)240 12 • Lower sales and EBIT in 10.0 Australia 8.4 – Lower volumes160 8 – Lower prices • Southeast Asia and China80 4 – Continued good profitability in Southeast Asia – China profitable 0 0 2011 2012 • Increased R&D costs for (SEKm) Q1 2012 Q1 2011 product launches Sales 1,841 1,746 EBIT* 155 174 Margin* 8.4 10.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 11
  12. 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%)270 10 • Higher sales 8 – Improved product mix180 5.9 – Higher volumes 6 4.4 • Lower operating income 4 – Higher costs for sourced90 products 2 – Lower prices 0 0 – Investment costs in new 2011 2012 products (SEKm) Q1 2012 Q1 2011 – Higher sales and positive mix Sales 2,105 1,930 had a positive impact EBIT* 93 114 Margin* 4.4 5.9 * Excluding items affecting comparability. Non-recurring items are included in all figures. 12
  13. 13. Professional ProductsFood-service &Laundry productsEBIT (SEKm) Margin (%)300 20 Food-service products 16 • Lower sales200 12.8 • Underlying EBIT in line with Q1, 12 2011 9.4 – Price increases 8100 – Negative mix due to lower share of own-manufactured products 4 Laundry products 0 2011 2012 0 • Lower sales (SEKm) Q1 2012 Q1 2011 • Improved operating income Sales 1,408 1,378 – Price increases EBIT* 132 177 Margin* 9.4 12.8 – Mix improvement * Excluding items affecting comparability. Non-recurring items are included in all figures. 13
  14. 14. Q2 and FY 2012 y-o-yIn accordance with forward-looking statementsin the CEO letter and press release Q2 2012FY Comments Slightly Slightly Easier comparables than in Q1 Volumes positive positive European market continually weak Positive price effect in NA Price/Mix Positive Positive Improvements in Europe sequentially Negative Negative Steel: Flat Raw-material costs ~SEK 100m SEK 0-500m Plastics: Some headwind An intensive launch period in 2012 R&D and marketing Higher Higher Electrolux launch in Europe starts in Q2 An uncertain Egyptian market Acquired units SEK 100m ~SEK 400m compensated by a strong CTI Incl. global operations, overhead Cost savings ~SEK 250m ~SEK 1bn reduction and improved manufacturing Transportation and Higher Higher Cost increases for sourced products sourced products 14
  15. 15. 1515
  16. 16. Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains “forward-looking” statements within the meaningof the US Private Securities Litigation Reform Act of 1995. Such statementsinclude, among others, the financial goals and targets of Electrolux forfuture periods and future business and financial plans. These statementsare based on current expectations and are subject to risks and uncertaintiesthat could cause actual results to differ materially due to a variety of factors.These factors include, but may not be limited to the following: consumerdemand and market conditions in the geographical areas and industries inwhich Electrolux operates, effects of currency fluctuations, competitivepressures 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 operationaland capital efficiency goals, the success in identifying growth opportunitiesand acquisition candidates and the integration of these opportunities withexisting businesses, progress in achieving structural and supply-chainreorganization goals. 16

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