Electrolux Interim Report Q2 2012 Presentation
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Electrolux Interim Report Q2 2012 Presentation

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Net sales amounted to SEK 27,763m (24,143) and income for the period was SEK 763m (561), or SEK 2.67 (1.97) per share.

Net sales amounted to SEK 27,763m (24,143) and income for the period was SEK 763m (561), or SEK 2.67 (1.97) per share.

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  • 1. Q2 Results, July 19, 2012The transformation• Keith McLoughlin, President and CEO• Tomas Eliasson, CFOis paying off• Peter Nyquist, SVP IR 1
  • 2. Q2 HighlightsEBIT (SEKm) Margin (%)1 400 5 • Record-high organic growth 6%1 200 4.1 – Strong volume growth in Latin 4 America and Asia/Pacific1 000 3.1 3 – Price increases 800 – Market-share gain in Europe 600 2 • EBIT increased to SEK 1,150m 400 1 – 4 of 6 business areas at or 200 above our EBIT-margin target 0 0 – Price increases in the US 2011 2012 – Positive price, mix and volume (SEKm) Q2 2012 Q2 2011 in Latin America Sales 27,763 24,143 EBIT* 1,150 745 • Strong cash flow driven by Margin* 4.1 3.1 working-capital efficiency * Excluding items affecting comparability. Non-recurring items are included in all figures. 2
  • 3. Bridge of the quarterly sales and EBIT Net Organic Acquisitions/ Sale ofSEKm Q2 2011 Development Currency Divestments Assets*) Q2 2012Net sales 24,143 1,431 772 1,418 27,763Net sales % 5.8 3.6 5.6 15.0EBIT 745 429 -80 96 -40 1,150EBIT % 3.1 30.0 -10.4 6.8 4.1Dilution/Accretion % 1.5 -0.5 0.1 -0.1* Includes an asset sale within professional food-service equipment of SEK 90m during Q2 2011 and an asset sale of SEK 50m in Spain in Q2 2012. 3
  • 4. EBIT-margin bridge Q2 year-over-year EBIT% Q2 2011 3.1 Price/Mix +1.3 Volume +0.4 Raw materials -0.4 Net: Investments, inflation, efficiencies +0.2 Net organic development 1.5 Currency -0.5 Acquisitions +0.1 Sale of assets -0.1 EBIT% Q2 2012 4.1 4
  • 5. Q2 Cash flow Cash flow SEKm Q2 2012 Q2 2011 Operations 1,749 1,254 Change in operating assets and liabilities 2,862 1,267 Capital expenditure -1,005 -1,083 Cash flow from operations 3,606 1,438
  • 6. Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm) Margin (%)600 6 • Increased volumes due to market-share gain400 4 2.6 – Improved position for Electrolux, 2.0200 2 AEG and Zanussi • EBIT amounted to SEK 215m 0 0 – One-off asset sale of SEK 50m-200 -2 – Lower sales prices – Negative country mix-400 -4 2011 2012 – Higher sales volumes (SEKm) Q2 2012 Q2 2011 – Cost savings Sales 8,216 7,660 EBIT* 215 156 • Slightly negative contribution Margin* 2.6 2.0 from Olympic * Excluding items affecting comparability. Non-recurring items are included in all figures. 6
  • 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 Q1 Q2W. 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 -2 -4E. 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 +3 Market Development % 7
  • 8. Consumer DurablesMajor AppliancesNorth AmericaEBIT (SEKm) Margin (%)750 7,5 • Higher sales 6.0600 6 – Price increases450 4,5 – Growth in core appliances300 3 • EBIT increased to SEK 512m 1.8 – Higher prices150 1,5 – Improved operational efficiency 0 0 – Higher costs for raw materials-150 -1,5 and sourced products 2011 2012 (SEKm) Q2 2012 Q2 2011 Sales 8,599 7,544 EBIT* 512 138 Margin* 6.0 1.8 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8
  • 9. Market demand for core appliances in NorthAmerica in line with previous year 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 Q2 2006 2007 2008 2009 2010 2011 2012 9
  • 10. Consumer DurablesMajor AppliancesLatin AmericaEBIT (SEKm) Margin (%)400 8 • Sales growth of 40% 6.1 – Tax incentives in Brazil300 6 – Strong organic growth in other Latin American markets200 4 3.1 – Acquisition of CTI • EBIT improved to SEK 316m100 2 – Contribution from CTI 0 0 – Higher volumes 2011 2012 – Improved price/mix (SEKm) Q2 2012 Q2 2011 Sales 5,183 3,708 – Negative currency impact EBIT* 316 114 – Improved efficiency Margin* 6.1 3.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 10
  • 11. Consumer DurablesMajor AppliancesAsia/PacificEBIT (SEKm) Margin (%)240 12 • Lower sales and EBIT in 9.1 Australia 7.8 – Lower volumes160 8 – Lower prices – Higher costs for product80 4 development • Southeast Asia and China – Continued good profitability in 0 0 2011 2012 Southeast Asia (SEKm) Q2 2012 Q2 2011 Sales 2,198 1,945 EBIT* 172 177 Margin* 7.8 9.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 11
  • 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%)270 10 • Higher sales 8 – Higher volumes – Lower prices180 6 • Slightly improved operating income 4 – Excluding positive impact from90 acquisition, results in line with Q2 2011 1.3 1.5 2 – Higher volumes – Lower prices 0 0 2011 2012 – Negative currency impact (SEKm) Q2 2012 Q2 2011 – Higher brand spend Sales 2,105 1,794 EBIT* 31 23 Margin* 1.5 1.3 * Excluding items affecting comparability. Non-recurring items are included in all figures. 12
  • 13. Professional ProductsFood-service &Laundry productsEBIT (SEKm) Margin (%)300 18.4 20 Food-service products • Lower sales 16 • Underlying EBIT somewhat lower200 than in Q2 2011 10.6 12 – Price increases 8 – Lower volumes100 – Negative mix 4 Laundry products • Lower sales 0 0 2011 2012 • Operating income lower than in Q2 2011 (SEKm) Q2 2012 Q2 2011 Sales 1,462 1,491 – Lower volumes EBIT* 155 274 – Price increases Margin* 10.6 18.4 – Positive mix * Excluding items affecting comparability. Non-recurring items are included in all figures. 13
  • 14. Q2 and FY 2012 y-o-yIn accordance with forward-looking statements in the CEOletter, press release and previous official statements Q3 2012FY Comments Slightly Slightly Growth in emerging markets and North Market volumes Positive positive America. European market continued weak. Price/Mix Positive Positive Positive price in NA, LA and Prof. Prod. Negative Steel: Slightly positive in H2. Raw-material costs ≤ SEK 500m SEK 0-100m Plastics: Slightly negative in H2. Intensive launch period in 2012. R&D and marketing Higher Higher Electrolux launch in Europe. 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. The transformationis paying off 15
  • 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