Summary of 2010 Record year – Earnings & Returns – Productivity – Product Mix Impact – Safety & Quality All business areas outperformed previous year’s results Solid cash flow generated by operating income growth and balance sheet productivity 5
A Look Back– Despite headwinds, we have improved our profitability Approx. Approx. SEK 11bn in raw-material EBIT % 16% improvements cost headwind since 2002 20 15 + – 10 – 5 6.1 4.2 0 2001 Improve- Raw Other 2010 ments materials cost increases*) Excluding items affecting comparability. 6
Phases in ElectroluxdevelopmentUp until 1990’s Up until early 2000’s 2000’s Onwards Globalization Acquisitions & Growth Consolidation Today Growth Transformation 7
Global Appliance Industry Competitive landscape A very large market: >$100bn changing – Large installed base Significant over capacity That is growing Manufacturers “in-the-middle” – Population growth Heavily promoted/discounted – GDP per capita Rising raw-material prices Not overly capital intensive – Asset turnover >3 1. The winners can generate significant free cash flows to be re-invested and/or returned to the shareholders 2. Not much left for the non-winners 8
Our Point-of-ViewBest Appliance Company in the world: 9
How to do it? Innovation Productivity Profitable – Product growth – Brand – Design 10
How we accelerate growth Value share growth in mature markets Growth in emerging markets Develop adjacent product opportunities Selective acquisitions in strategically important categories and markets 13
Value share growth “Best-in-Class” Products Consumer Insight g t in D es ke ig ar n M R&D Product Creation Process Primary Product Strategic Consumer development development Launch Range market plan opportunities execution management Phase-out Concept Commercial development launch preparation Intent Commercial Launch Process 14
How to do it? Innovation Productivity Profitable – Product growth – Brand – Design 26
The final phase of ourrestructuring program 27
Utilizing global strengthand customer focusShared global strength Sharp customer focus Premium Benefits of scale in: Manufacturing Differentiation R&D Purchasing Common components/ modules Common processes Low cost and shared services Mass 28
We need the right people tocontinue to develop Electrolux 29
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. 35
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