Electrolux Interim Report Q1 2011 Presentation

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Highlights of the first quarter of 2011. Net sales amounted to SEK 23,436m (25,133) and income for the period was SEK 457m (911), or SEK 1.61 (3.20) per share. Net sales increased by 1% in comparable currencies.

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Electrolux Interim Report Q1 2011 Presentation

  1. 1. Q1 Results,April 27, 2011Keith McLoughlin,President and CEOJonas Samuelson, CFO & COOPeter Nyquist, SVP IR
  2. 2. Q1 HighlightsEBIT (SEKm) Margin (%)2500 10 Net sales increased by 1% 8 in comparable currencies2000 5,3 – Growth in major markets 61500 3,0 4 EBIT of SEK 696m – Raw-material headwinds 21000 – Price pressure 0500 – Cost measures -2 – Mix improvement 0 -4 2010 2011 Price increases going (SEKm) Q1 2011 Q1 2010 forward Sales 23,436 25,133 EBIT* 696 1,326 Margin 3.0% 5.3% *) EBIT excluding items affecting comparability 2
  3. 3. Q1 Operating cash flow Operating cash flow amounted to SEK -1.3 billion Q1 seasonally weakest quarter Lower operating income Higher tax payments Continued favorable development of net operating working capital – Receivables positive, collection from high sales in November-December Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -220m Investments during the first quarter mainly referred to new products 3
  4. 4. Consumer Durables Major Appliances Europe, Middle East & AfricaEBIT (SEKm) Margin (%) Lower sales as a result of1500 12 lower volumes and prices 10 Lower EBIT1000 8 – Lower volumes 5,6 – Price pressure 6 4,1 – Higher raw-material costs 500 4 Mix improvement 2 – The AEG launch continues 0 0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 7,656 8,921 EBIT 311 499 Margin 4.1% 5.6% 4
  5. 5. Increased growth in Eastern Europe Quarterly comparison, year over year 10% 5% 0% -5% -10% -15% 2006 2007 2008 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1W. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 1% 0% 0% 0% -2%E. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26% -17% -7% 1% 5% 13% 13% 5
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  7. 7. Consumer DurablesMajor Appliances North AmericaEBIT (SEKm) Margin (%)600 6 Market growth Higher net sales in 4,1400 4 comparable currencies EBIT declined to SEK -71m – Price pressure200 2 – Higher raw-material costs Improved mix 0 0 Price increases from April 4 -1,1 – 3-5%-200 -2 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 6,728 7,305 EBIT -71 299 Margin -1.1% 4.1% 7
  8. 8. North America grew by 1%in Q1 Quarterly comparison, year-over-year15%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 2006 2007 2008 2009 2010 2011 8
  9. 9. Consumer Durables Major Appliances Latin AmericaEBIT (SEKm) Margin (%)500 10,0 Market growth in Brazil and in rest of Latin America400 7,5 EBIT declined to SEK 139m – Negative customer mix due to300 5,4 consolidation of retailers 5,0 3,5 – Increased raw-material costs200 Price increases going forward 2,5100 0 0,0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 3,998 3,796 EBIT 139 206 Margin 3.5% 5.4% 9
  10. 10. Consumer Durables Major Appliances Asia/PacificEBIT (SEKm) Margin (%)300 14,0 Market growth in Australia and improved EBIT 12,0 10,0 – Positive currency impact 10,0200 8,7 – Improved efficiency 8,0 – Increased raw-material costs 6,0 – Increased price pressure100 4,0 Southeast Asia and China 2,0 – Market-share gain in strong markets 0 0,0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 1,746 1,666 EBIT 174 145 Margin 10.0% 8.7% 10
  11. 11. Consumer Durables Small AppliancesEBIT (SEKm) Margin (%) 400 15,0 Separately reported from 350 Q1 2011 and onwards 12,0 300 10,9 Higher sales 250 9,0 Lower EBIT 200 5,9 – Increased sourcing costs 150 6,0 – Currency headwind 100 3,0 – Higher raw-material costs 50 0 0,0 Good market acceptance for 2010 2011 previous launches (SEKm) Q1 2011 Q1 2010 Sales 1,930 1,936 EBIT 114 211 Margin 5.9% 10.9% 11
  12. 12. Professional Products Food-service & Laundry productsEBIT (SEKm) Margin (%) 300 15,0 Lower sales but improved 12,8 EBIT for Food-service 250 12,0 – Positive effect of SEK 50m 200 related to a divestment 9,0 150 – Higher share of own- 6,1 6,0 manufactured products 100 – Price increases 3,0 50 – Improved capacity utilization 0 0,0 Higher sales and EBIT for 2010 2011 Laundry products – Higher volumes (SEKm) Q1 2011 Q1 2010 Sales 1,378 1,501 – Price increases EBIT 177 91 Margin 12.8% 6.1% 12
  13. 13. Q2 and FY 2011In accordance with forward-looking statementsin the CEO letter Q2 2011 FY Comment Tough comparablesVolumes Higher Higher in US in Q2 Slightly Price increases in US, pricePrice H2 higher negative pressure in Europe in Q2 Continued mix improvementMix Positive Positive from product launches 2011: SEK 2 billion costRaw-material costs Higher Higher increase compared to 2010Costs from Global Approximately evenly SEK 125m SEK 500mOperations distributed between quarters Manufacturing Approximately evenly SEK 125m SEK 500m footprint savings distributed between quarters 13
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  15. 15. 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. 15

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