Electrolux Interim Report Q3 2013 Presentation

15,383 views

Published on

Highlights of the third quarter of 2013. Net sales amounted to SEK 27,258m (27,171) and income for the period was SEK 656m (923), or SEK 2.29 (3.22) per share. Organic sales growth was 4.9%, while currencies had a negative impact of –4.6%.

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

  • Be the first to like this

No Downloads
Views
Total views
15,383
On SlideShare
0
From Embeds
0
Number of Embeds
12,562
Actions
Shares
0
Downloads
34
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Electrolux Interim Report Q3 2013 Presentation

  1. 1. Q3 Results October 25, 2013 Keith McLoughlin, President and CEO Tomas Eliasson, CFO
  2. 2. Q3 Highlights EBIT (SEKm) Margin (%) 6 1 800 5.2 1 600 5 1 400 3.9 1 200 4 • Organic growth of 4.9% – Continued sales growth in all regions except EMEA • EBIT declined to SEK 1,075m – Weak demand in Europe 1 000 3 800 2 600 400 1 200 0 0 2012 (SEKm) 2013 Q3 2012 Q3 2013 Sales 27,171 27,258 EBIT* 1,423 1,075 5.2 3.9 Margin* – Solid results for North America and Professional Products – Results impacted by negative currency of SEK -519m • Actions taken – Adapt cost structure – Manufacturing footprint • Solid cash flow * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 2
  3. 3. Sales and organic growth, Q3 SEKbn by geography 8.9bn 9.6bn +9.9% +2.1% 1.6bn 0.8bn 5.0bn +18.0% -13.2% +1.5% 1.3bn +8.6% 3
  4. 4. Sales and EBIT bridge Q3 Q3 2012 Organic Currency translation Net sales 27,171 1,301 -1,214 - - 27,258 Growth % - 4.9% -4.6% - - 0.3% EBIT 1,423 171 -71 -448 - 1,075 EBIT % 5.2% 13.1% 5.8% - - 3.9% 0.3% 0.0% -1.6% 0.0% SEKm Dilution/accretion % Currency Acquisitions/ Transaction Divestments Q3 2013 4
  5. 5. Q3 Cash flow SEKm 2012 Q3 2013 Q3 Operations 2,180 1,907 Change in operating assets and liabilities -1,182 168 Capital expenditure -1,228 -1,168 -230 907 Operating cash flow 5
  6. 6. Restructuring Manufacturing footprint SEKm Announced plan in 2011 Actual in 2012-2013 3 500 1 000 Charges Planned Program to 2013-2014 date 2012-16 2 200 3 200 Over-head cost reduction SEK bn Planned 2013-2014 Charges 1 200 Charges 3 400 Savings 1 800 6
  7. 7. Consumer Durables Major Appliances Europe, Middle East & Africa EBIT (SEKm) 600 Margin (%) 6 500 5 • Signs of stabilization, but still weak demand in key markets – Growth in Nordics, UK, Germany 400 4 3.4 300 3 200 2 – Decline in France, Italy, Spain • EBIT at SEK 111m – Positive product mix 1.3 100 1 – Negative currency impact – Continued price pressure 0 0 2012 (SEKm) 2013 Q3 2012 Q3 2013 Sales 8,581 294 111 Margin* 3.4 Egyptian operations 8,520 EBIT* • Negative contribution from 1.3 * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 7
  8. 8. Weak growth in Europe Southern Europe still weak y-o-y and slow-down in Eastern Europe Quarterly comparison y-o-y 10% 5% 0% -5% -10% -15% 2006 -20% 2007 W. Eur. +4 +1 +1 +5 +1 E. Eur. +1 +9 +6 +7 +14 +5 Core White market development % +1 -1 2008 -5 2009 -8 -9 -9 -4 2010 0 2011 -2 -2 2012 2013 -4 -4 -5 -2 +1 0 0 -3 -3 -2 -4 -2 -2 -3 0 -1 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 +9 +5 +3 +2 +2 +3 +2 +1 8
  9. 9. Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%) 750 • Strong organic growth of 8% 7,5 6.9 6.4 600 6 450 4,5 300 3 150 1,5 0 0 2012 (SEKm) – Favorable volume growth – Mix improvement • EBIT improved to SEK 563m – Margin expansion despite investments in new channels – Positive mix contribution – Consolidation of cooking production 2013 Q3 2012 Q3 2013 Sales 7,771 8,165 EBIT* 496 563 Margin* 6.4 • Continue to gain market share 6.9 in core product categories * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 9
  10. 10. Market in North America continues to grow in Q3 Quarterly comparison y-o-y 15% 10% 5% 0% -5% -10% -15% -20% 2006 2007 2008 2009 2010 2011 2012 2013 10
  11. 11. Consumer Durables Major Appliances Latin America EBIT (SEKm) 700 Margin (%) 12 600 10 500 8 6.4 400 5.2 6 300 • Organic growth of 1.6% – Lower volumes due to weaker demand in Brazil – Negative impact from the Curitiba warehouse fire – Positive price/mix 4 200 • EBIT declined to SEK 243m 2 100 0 0 2012 – Negative currency affecting profitability 2013 – Impact from volume loss Q3 2012 Q3 2013 Sales 5,301 4,699 – Warehousing and transportation costs higher in the quarter EBIT* 339 243 Margin* 6.4 5.2 (SEKm) * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 11
  12. 12. Consumer Durables Major Appliances Asia/Pacific EBIT (SEKm) Margin (%) 12 240 9.9 10 160 8 5.0 80 6 4 • Positive momentum in Australia – Signs of volume recovery – Price increases implemented – Positive product mix offset by China country mix • Strong organic growth in Southeast Asia and China 2 0 0 2012 (SEKm) 2013 Q3 2012 Q3 2013 Sales 2,107 2,321 EBIT* 208 117 Margin* 9.9 – China continues to grow strongly – Improved product mix with newly launched products 5.0 • Results impacted by new range launch in China and Asia * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 12
  13. 13. Consumer Durables Small Appliances EBIT (SEKm) Margin (%) 12 270 10 180 8 5.9 6 4.6 90 4 • Organic growth of 5.6% – Higher volumes in Europe and Asia/Pacific – Growth within small domestic appliances in Asia/Pacific • Operating income lower – Negative currency impact 2 0 0 2012 (SEKm) 2013 Q3 2012 Q3 2013 Sales 2,112 124 97 Margin* 5.9 – Intensified marketing and launch costs for new products in Asia and North America 2,131 EBIT* – Unfavorable country mix 4.6 * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 13
  14. 14. Professional Products EBIT (SEKm) Margin (%) 20 300 • Strong quarter with higher sales and improved results 16 Food-service products 200 11.7 11.5 12 8 100 4 • Good demand in US • European market still weak • Solid operating income – Investments in priority areas Laundry products 0 0 2012 (SEKm) 2013 Q3 2012 Q3 2013 Sales 1,299 1,422 EBIT* 149 167 Margin* 11.5 • Positive sales development • Operating income higher 11.7 – Price and volume contribution * Excluding items affecting comparability. Non-recurring items are excluded in all figures. 14
  15. 15. Q4 and FY 2013 y-o-y In accordance with forward-looking statements in the CEO letter, press release and previous official statements Q4 FY 2013 Market volumes Slightly Positive Slightly Positive Growth in NA and emerging markets European market still weak Price/Mix Slightly Positive Slightly Positive Latin America and North America positive Europe, positive mix offset by negative price Flat Positive Steel: Positive Plastics: Negative Higher Higher Continue intensive launch in 2013. Higher marketing spend in North America and Asia. ~SEK 250m ~ SEK 1bn Higher Higher Raw-material costs R&D and Marketing Cost savings Logistics, warehousing etc. Comments Includes global operations, overhead reduction and manufacturing footprint. Overall inflation driven cost increases such as overseas freight and other transportation. 15
  16. 16. 16 16
  17. 17. Factors affecting forwardlooking 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. 17

×