Electrolux Capital Markets Day 2012 - Presentation Jan Brockmann


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Electrolux Capital Markets Day. November 14, 2012, Stockholm, Sweden. Together with senior management, the President and CEO of Electrolux, Keith McLoughlin will present the Group’s strategy to create further sustainable economic value at today’s capital markets day.

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Electrolux Capital Markets Day 2012 - Presentation Jan Brockmann

  1. 1. Faster rate ofinnovation basedon global strengthJan BrockmannChief Technology Officer
  2. 2. Three key targets2015 Reduce the time Reduce the number Increase investments .from innovation of product variants in the development to launch by by 20% as a result of advanced of modularization gy y technology by -30% -20% 20% 2
  3. 3. Modularization= P t number Part breduction = % -20%Complexity reduction p y
  4. 4. Module plans almost completed Food preparation Food preservation Dish care Fabric care Accessories & ConsumablesCrossproduct Electrics & Electronicsline PackagingProductline Door Dspecific,but similar Body Cavity Interior Tub Drive train Cooling system Internal air flow s. Basket/Racks HydraulicsProduct Hob Cooling system Hydraulics/Filtration Wash grouplinespecific Lid Ice and water Spray system Work top Compartment Heat pump Control II Drying group 11 module areas 9 module areas 9 module areas 11 module areas 4
  5. 5. Modularization overview... so far0 36 months 350 people from all sectors, product lines ,p 33 module-area books and functions completed.... C l t d Covering i 85% of Direct Material spend >1,000 activities identified as a result of the modularization process 5
  6. 6. Time-to-marketTi t k treduction % -30%
  7. 7. Modularization reducestime-to-market by 30%Product development process Product d P d t development l tCurrent Module developmentUpdated Product development Time -30% 7
  8. 8. Increase of speed to marketin core and growth areas New markets/Channels New markets/Channels with new products Brazil & rest of Latin America China Grand Cuisine NELS New Middle East & Africa Benefit territories Southeast Asia Restaurant chains ARKETS CHANN g Digital Services Contract Home Depot S/ Adjacent products Consumables and xisting accessories Electrolux Water care MA 2011 Ventilation Ex Filtration Small Domestic Appliances Enhance Products/ Ranges Existing New PRODUCTS 8
  9. 9. Rapid global product developmentin Food Preservation WEU + EEU NA CHINA EGY THAI BRA5 million units developed in 3 years in 6 core and growth regions.Top- and bottom freezers with same product architecture, same manufacturing principles, same modular exterior and interiorconcepts, differentiated dimensions, design and offer line-up. 9
  10. 10. Modularization improves time-to- market and capital efficiencyExamples: Top- and bottom freezers, global Product developmentLead project Time CapexThailand 100% 100% Module development P d td l t Product development2nd wave Time CapexEgypt, Europe 80% 85% Product development3rdwave Time CapexNorth America, 70% 80%Thailand II 10
  11. 11. Investment inadvanced technology +25%development
  12. 12. Investment in Innovation andGrowth – R&D spend… 2010 2013 SEK 2 1b 2.1bn SEK 3bn 3b
  13. 13. Warranty and R&Dspend in % of Net sales 3.0% Warranty 2.5% 2.0% 1.5% R&D Spend 1.0% 0.5% 0.0% 2010 2011 2012 2013 YTD Current forecast 13
  14. 14. Core innovation areas Water/Air Electronics High-end platforms processing Cross-category Platforms / technologies / Invested Modules capital Low-end platformsS t/C ti itSmart/Connectivity Steam Induction Technologies / Modules; Sustainability Sourced solutions l ti Insulation/ Materials 14
  15. 15. Share of globally integratedproduct-developmentactivities (Major Appliances) ti iti (M j A li ) 2010 2013 <10% 35%