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Annual GeneralMeeting 2011Keith McLoughlinPresident and CEOMarch 31, 2011
EBIT Target %
Capital TurnoverTarget                   3
RONA Target %                4
Summary of 2010 Record year – Earnings & Returns – Productivity – Product Mix Impact – Safety & Quality All business areas...
A Look Back– Despite headwinds, we have improved    our profitability                                                   Ap...
Phases in ElectroluxdevelopmentUp until 1990’s   Up until early 2000’s     2000’s             Onwards                     ...
Global Appliance Industry      Competitive landscape               A very large market: >$100bn      changing             ...
Our Point-of-ViewBest Appliance Company in the world:                                       9
How to do it?     Innovation   Productivity   Profitable     – Product                   growth     – Brand     – Design  ...
Growth Target %
First margin expansionthen profitable growth        Operating margin %                             8                      ...
How we accelerate growth  Value share growth in mature markets  Growth in emerging markets  Develop adjacent product oppor...
Value share growth                  “Best-in-Class” Products                                         Consumer Insight     ...
19
21
Growth in emerging markets                             22
Develop adjacent productopportunities                           23
Sustainable productsget a boost                       24
How to do it?     Innovation   Productivity   Profitable     – Product                   growth     – Brand     – Design  ...
The final phase of ourrestructuring program                         27
Utilizing global strengthand customer focusShared global strength   Sharp customer focus   Premium Benefits of scale in:  ...
We need the right people tocontinue to develop Electrolux                                 29
Our values  Foundation   Respect & Diversity   Ethics & Integrity   Safety & Sustainability                               ...
Our Point-of-ViewBest Appliance Company in the world:                                       32
Shareholder valueTotal return to shareholders450400                                                                  Elect...
34
Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains “forwar...
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
Electrolux - Keith McLoughlins speech at the AGM 2011
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Electrolux - Keith McLoughlins speech at the AGM 2011

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Electrolux - Keith McLoughlins speech at the AGM 2011

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Transcript of "Electrolux - Keith McLoughlins speech at the AGM 2011"

  1. 1. Annual GeneralMeeting 2011Keith McLoughlinPresident and CEOMarch 31, 2011
  2. 2. EBIT Target %
  3. 3. Capital TurnoverTarget 3
  4. 4. RONA Target % 4
  5. 5. 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
  6. 6. 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
  7. 7. Phases in ElectroluxdevelopmentUp until 1990’s Up until early 2000’s 2000’s Onwards Globalization Acquisitions & Growth Consolidation Today Growth Transformation 7
  8. 8. 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
  9. 9. Our Point-of-ViewBest Appliance Company in the world: 9
  10. 10. How to do it? Innovation Productivity Profitable – Product growth – Brand – Design 10
  11. 11. Growth Target %
  12. 12. First margin expansionthen profitable growth Operating margin % 8 Maximize 7 shareholder 6 value 5 4 3 2 1 0 1 2 3 4 Growth % 12
  13. 13. 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
  14. 14. 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
  15. 15. 19
  16. 16. 21
  17. 17. Growth in emerging markets 22
  18. 18. Develop adjacent productopportunities 23
  19. 19. Sustainable productsget a boost 24
  20. 20. How to do it? Innovation Productivity Profitable – Product growth – Brand – Design 26
  21. 21. The final phase of ourrestructuring program 27
  22. 22. 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
  23. 23. We need the right people tocontinue to develop Electrolux 29
  24. 24. Our values Foundation Respect & Diversity Ethics & Integrity Safety & Sustainability 30
  25. 25. Our Point-of-ViewBest Appliance Company in the world: 32
  26. 26. Shareholder valueTotal return to shareholders450400 Electrolux B 20%350300 SIX RX index 16%250200150100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 33
  27. 27. 34
  28. 28. 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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