Electrolux Interim Report Q1 2009 Presentation

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Highlights of the first quarter of 2009. Net sales amounted to SEK 25,818m (24,193) and income for the period to SEK -346m (-106), or SEK -1.22 (-0.38) per share. Net sales declined by 8.4%, in comparable currencies, due to continued sharp market downturn in Electrolux main markets.

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Electrolux Interim Report Q1 2009 Presentation

  1. 1. Q1 Results 2009 April 22, 2009 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  2. 2. Q1 Highlights EBIT (SEKb) EBIT margin (%) EBIT amounted to SEK 38m, 2500 10% excluding items affecting 2000 8% comparability 1500 6% Restructuring in China, Italy 1000 4% and Russia 500 2% Continued weak demand in all 0 0% major markets -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2% Negative currency impact 2007 2008 2009 -1000 -4% Strong cash flow Ongoing cost-cutting measures (SEKm) Q1 2008 Q1 2009 are giving result Sales 24,193 25,818 Price increases in Europe EBIT -39 38 Margin -0.2% 0.1% US launch – net negative impact of SEK -200m 2
  3. 3. US launch and non-recurring items Non-recurring items SEK (m) Q1, 2009 Q1, 2008 North America Launch -200 -120 Litigation -80 Europe* - -350 Total -200 -550 Items affecting comparability Changsha, China -187 Porcia, Italy -132 St Petersburg, Russia -105 Reversal of unused restructuring 34 Total -424 34 *) Includes Cost Cutting Program (-360m), Component Issue (-120m) and Capital Gain (+130m) 3
  4. 4. Cash flow per quarter Cash flow from operations and investments 2000 1500 Cash flow Q1, 2009 1000 500 0 -500 -1000 Q1 Q2 Q3 Q4 2008 2007 4
  5. 5. Consumer Durables Europe EBIT (SEKm) EBIT margin (%) Weak market 1000 Lower sales 800 10% Underlying result in line with 600 400 5% previous year 200 – Lower volumes 0 0% – Reduced capacity utilization Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -200 – Price increases -400 2007 2008 2009 -5% – Cost reductions -600 Weak market and negative -800 -10% currency impact for floor-care (SEKm) Q1 2008 Q1 2009 products Sales 10,525 10,175 EBIT -192 125 Margin -1.8% 1.2% 5
  6. 6. Market development in Europe Quarterly comparison, year on year 10% 5% 0% -5% -10% -15% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% 6
  7. 7. Consumer Durables North America EBIT (SEKm) EBIT margin (%) Weak market 700 14% 600 12% – Lower sales in comparable 500 10% currencies 400 8% 300 6% Market-share gain 200 4% SEK 200m negative net 100 2% 0 0% impact of US launch -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2% -200 2007 2008 2009 -4% Increased raw-material costs -300 -6% Floor Care: Lower sales partly mitigated by improved (SEKm) Q1 2008 Q1 2009 mix and price increases Sales 7,275 9,144 EBIT -154 -177 Margin -2.1% -1.9% 7
  8. 8. Market development in North America Quarterly comparison, year on year 10% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* 2006 2007 2008 2009 8
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  10. 10. Consumer Durables Latin America EBIT (SEKm) EBIT margin (%) Declining demand in Brazil 300 8% 250 Market-share gain 6% 200 Operating income lower than 150 4% last year 100 50 2% – Large negative currency 0 0% impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 – Product mix 2007 2008 2009 Price increases (SEKm) Q1 2008 Q1 2009 Sales 2,404 2,625 EBIT 156 50 Margin 6.5% 1.9% 10
  11. 11. Consumer Durables Asia/Pacific & Rest of world EBIT (SEKm) EBIT margin (%) Australia/New Zealand 200 8% 180 7% – Market-share gain 160 140 6% – Price increases 120 5% 100 4% – Cost reductions 80 3% 60 2% – Negative currency impact 40 20 1% Closure of Changsha 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 factory in China 2007 2008 2009 Positive price and mix in Southeast Asia (SEKm) Q1 2008 Q1 2009 Sales 2,228 2,145 EBIT 105 60 Margin 4.7% 2.8% 11
  12. 12. Professional Products EBIT (SEKm) EBIT margin (%) Food-service 250 14% 12% – Weak demand 200 10% – Lower capacity utilization 150 8% 6% – Cost reductions 100 50 4% Laundry 2% 0 0% – Lower sales volumes and Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 capacity utilization 2007 2008 2009 – Improved price and mix (SEKm) Q1 2008 Q1 2009 – Positive impact by M&A Sales 1,753 1,727 savings EBIT 183 105 Margin 10.4% 6.1% 12
  13. 13. Market view business areas and raw materials impact Market demand Q209 FY09 Europe North America Latin America Raw materials Costs for steel 13
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  15. 15. Factors affecting forward- looking statements Factors affecting forward-looking statements This presentation contains “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following: consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures 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 operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals. 15

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