Electrolux Interim Report Q3 2011 Presentation

6,774 views

Published on

Highlights of the third quarter of 2011. Net sales amounted to SEK 25,650m (26,326) and income for the period was SEK 825m (1,381), or SEK 2.90 (4.85) per share. Net sales increased by 2.2% in comparable currencies and including one month of sales from Olympic Group, mainly as a result of higher sales volumes.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
6,774
On SlideShare
0
From Embeds
0
Number of Embeds
4,513
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Electrolux Interim Report Q3 2011 Presentation

  1. 1. Q3 Results, October 28, 2011Keith McLoughlin, President and CEOJonas Samuelson, Head of EMEA (Former CFO & COO)Peter Nyquist, SVP IR and Financial Information
  2. 2. Q3 HighlightsEBIT (SEKm) Margin (%)  EBIT declined to SEK 1,098m2500 7,5 8 – Weak demand – Price pressure2000 6 – Higher costs for raw materials – Higher costs for sourced1500 4,3 products 41000  Solid results for Professional Products and Latin America500 2  Completion of acquisitions  Solid cash flow 0 0  Restore results going forward (SEKm) Q3 2011 Q3 2010 – Increase prices Sales 25,650 26,326 – Adapt cost structure EBIT* 1,098 1,977 – Global Operations Margin 4.3 7.5 * Excluding items affecting comparability 2
  3. 3. Q3 Cash flow Operating cash flow amounted to SEK –1,366m – Payment of Olympic Group amounted to SEK –2,556m – Excluding the payment, the operating cash flow amounted to SEK 1,190m Lower operating income than in Q3, 2010 Seasonally higher sales in the quarter – High sales in September impacted inventories and accounts receivable Investments in new products Continued structural improvement of working capital 3
  4. 4. Acquisition ofOlympic Group completed Mandatory tender offer completed – Electrolux now owns 98% of the shares Consolidated as of September 2011 Intention to delist Olympic’s shares in Q1, 2012 at the latestOlympic Group2010 (SEK, recurring figures, excluding Namaa & B-Tech)Sales 2.5bnEBIT 280mEBIT margin 11%Net profit 200m 4
  5. 5. Acquisition of CTI completed Cash tender offers closed – Electrolux now owns 98% of the shares in CTI and Juárez 97% of the shares in CTI’s subsidiary Somela Consolidated as of October 2011 Remaining shareholders will have the opportunity to sell their shares over a limited Manaus period of timeCTI São Carlos2010 (SEK, recurring figures) Curitiba Cerrillos RosarioSales 2.9bn MaipúEBIT 450mEBIT margin 16%Net profit 330m 5
  6. 6. Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm) Margin (%)  Demand weakened further1200 12  Lower sales as a result of lower 9,61000 10 volumes and prices800 8  Lower EBIT – Lower volumes600 6 5,0 – Lower prices400 4 – Higher costs for raw materials200 2 – Increased transportation costs  Positive mix contribution from 0 0 AEG launch (SEKm) Q3 2011 Q3 2010  Price increases going forward Sales 8,964 9,395 EBIT 444 898  Positive one-off of SEK 150m in Margin 5.0 9.6 Q3, 2010 6
  7. 7. Negative growth in Europe Further weakning in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 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 Q2 Q3 2006 2007 2008 2009 2010 2011Market Development %W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 7
  8. 8. Consumer DurablesMajor Appliances North AmericaEBIT (SEKm) Margin (%)  Increased sales in comparable600 6 5,4 currencies  EBIT declined to SEK 107m400 4 – Negative price/mix – Higher raw-material costs200 2 1,5 – Higher transportation costs – Higher product costs 0 0 – Extensive promotional activities  Prices sequentially higher than-200 -2 in Q2 but lower than in Q3, (SEKm) Q3 2011 Q3 2010 2010 Sales 7,122 7,604 EBIT 107 413 Margin 1,5 5.4 8
  9. 9. Market in North Americacontinued to decline in Q3 Quarterly comparison y-o-y15%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 Q2 Q3 2006 2007 2008 2009 2010 2011 9
  10. 10. Consumer DurablesMajor Appliances Latin AmericaEBIT (SEKm) Margin (%)  Market growth in Brazil and in400 8 the rest of Latin America  EBIT improved to SEK 222m300 6 5,2 5,4 – Higher volumes – Negative customer mix due to200 4 consolidation of retailers100 2 0 0 (SEKm) Q3 2011 Q3 2010 Sales 4,101 3,810 EBIT 222 199 Margin 5.4 5.2 10
  11. 11. Consumer DurablesMajor Appliances Asia/PacificEBIT (SEKm) Margin (%)  Lower sales and EBIT in300 14 12,6 Australia250 12 – Lower sales prices 8,7 10 – Negative product mix200 8 – Lower capacity utilization150 6  Southeast Asia and China100 – Market-share gain in strong 4 markets50 2 – Continued good profitability in 0 0 Southeast Asia (SEKm) Q3 2011 Q3 2010 Sales 1,981 1,909 EBIT 172 241 Margin 8.7 12.6 11
  12. 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%)  Higher sales in comparable300 12 currencies250 9,4 10  Lower EBIT 8,2200 8 – Higher product costs – Higher costs for raw materials150 6 – Higher volumes100 4 – Lower transportation costs50 2 0 0 (SEKm) Q3 2011 Q3 2010 Sales 2,056 2,106 EBIT 169 198 Margin 8.2 9.4 12
  13. 13. Professional ProductsFood-service & Laundry productsEBIT (SEKm) Margin (%)  Lower sales and EBIT for Food-300 20 service products250 – Lower sales in Southern Europe 16 13,5 14,0 – Higher raw-material costs200 12 – Price increases150 – Improved mix 8100  Solid results for Laundry 4 products50 – Higher volumes 0 0 – Price increases (SEKm) Q3 2011 Q3 2010 – Higher capacity utilization Sales 1,426 1,501 – Higher raw-material costs EBIT* 199 202 Margin 14.0 13.5 13
  14. 14. We need to adapt our capacity to structuralchanges in demand in mature markets Market volumes in North America (000 units) 60000 55000 50000 30% gap from 45000 expected development 40000 35000 30000 25000 1990 1995 2000 2005 2010 14
  15. 15. Strong decline during the last quarters inWestern Europe and no recovery in theshort term Seasonally adjusted volumes in Western Europe, annualized (000 units) 60 000 58 000 56 000 54 000 52 000 50 000 48 000 46 000 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
  16. 16. Q4 2011 y-o-yIn accordance with forward-looking statementsin the CEO letter Q4 2011 Comment Lower volumes in mature markets will Volumes Negative partly be offset by strong growth in emerging markets Year-over-year negative with some Price Slightly negative sequential improvement Mix improvement from product Mix Slightly positive launches offset by negative country/customer mix Raw-material costs Higher ~SEK 300m in Q4 Costs from Global Approximately evenly SEK 125m Operations distributed between quarters Manufacturing Approximately evenly SEK 125m footprint savings distributed between quarters Contribution from SEK 100m Full impact from CTI and Olympic acquisitions
  17. 17. 17
  18. 18. 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. 18

×