Electrolux Presentation SEB Enskilda Capital Goods Seminar 2011, Stockholm, Sweden

1. How will Electrolux
create sustainable
economic value?
Keith McLoughlin
President and CEO

2. What should Electrolux priority areas to
create further share holder values?
Today's agenda
1. Return on Invested Capital
2. Growth
3. Current Reality
2

3. EBIT
EBIT margin
(excluding items affecting comparability)
6%
0%
2006 2007 2008 2009 2010
3

4. Capital Turnover
Capital Turnover
4,0
0,0
2006 2007 2008 2009 2010
4

5. Return on net assets
Return on net assets
30%
20%
10%
0%
2006 2007 2008 2009 2010
5

6. Growth
Net sales growth
(in comparable currencies)
5%
0%
-5%
2006 2007 2008 2009 2010
6

7. Growth Target % 4

8. Sell-side Consensus 1-2%
8

9. Phases in Electrolux
development
Up until 1990’s Up until early 2000’s 2000’s Onwards
Globalization
Acquisitions &
Growth
Consolidation Today Growth
Transformation
9

10. First margin expansion
then profitable growth
Operating margin %
8
Maximize
7 shareholder
6 value
5
4
3
2
1
0 1 2 3 4
Growth %
10

11. How we accelerate growth
 Growth in emerging markets
 Selective acquisitions in strategically important
categories and markets
 Develop adjacent product opportunities
 Value share growth in mature markets
11

12. Coming from heavy exposure to
mature markets…
12

13. …with tremendous growth
opportunity in emerging markets
13

14. Overview of CTI
 Founded in 1905, CTI is the
leading manufacturer of large
household appliances in Chile
 Listed on the Santiago Stock 78.5%
Exchange, with controlling
CST
shareholder Sigdo Koppers
 Key subsidiaries: Frimetal and
Somela (listed) Key Financials (SEK) (1)
2010, Y/e Dec
 Three production sites in Chile
and Argentina Sales 2.9 bn
EBIT 453 m
 Approx. 1,200 employees EBIT Margin 15.8 %
Net Profit (2) 331 m
Notes
1) Converted at average 2010 rate CLP/SEK 70.8
2) Pre minority interest
14

15. CTI Historical Financial
Development
EBITDA
Sales (USD M) (1) CAGR (Sales) ~15% Margin
500 20,0%
17,5% 17,2%
17,1%
375 15,5% 17,5%
16,0%
14,8%
250 15,0%
125 12,5%
0 10,0%
2005 2006 2007 2008 2009 2010
Sales EBITDA Margin
Notes
1) Converted at average 2010 rate CLP/USD 509
15

16. Leading Market Positions
Company CTI Frimetal Somela
% Total 2010 Revenue 48% 38% 14%
Key Products  Refrigerators, stoves, washing  Refrigerators, freezers and  Small domestic appliances
machines and heaters washing machines
Brands
Market Position  No. 1 in Chile  No. 1 in refrigeration &  No. 1 in Chile with an
 Market leader across all key freezers in Argentina approximate 20% market
categories with a volume share
market share of 36% in Chile
 Strong position in cookers
16

17. Strong synergies through
combined footprint
Juárez
Snapshot of Combined Business
 Combined sales in Latin America
of >SEK 20 billion on a pro forma
basis
Manaus
 Leading player in Brazil and
Southern Cone region
 Market-leading brands and
São Carlos
Curitiba complementary product portfolios
Cerrillos Rosario  Seven manufacturing facilities
Maipú
 >12,000 employees
 Strategic fit
 Financial fit
17

18. Olympic Group a platform for
growth in Africa and Middle East
Commercial partnership with
Electrolux established in the
early 1980’s
18

19. Strong GDP per capita growth
Egypt GDP per capita (US$)
CAGR ~17%
3000 2779
2459
2500
2173
2000 1778
1504
1500 1279
1000
500
0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
Commercial partnership with Electrolux established in the early 1980’s
19

20. A solid result and growth
Sales Olympic Group, MEGP
CAGR (Sales) ~6%
3000 13,6% 20,0%
14,2% 16,8%
16,5%
2500
15,0%
2000
1500 10,0%
1000
5,0%
500
0 0,0%
2007 2008 2009 2010
Sales EBITDA Margin
20

21. Strong position in Egypt and
surrounding countries
Product segment Cookers Refrigerators Washing machines
% Total Revenue 16% 31% 36%
Market share Egypt 32% 29% 46%
Market Position  Distinct No 1 player in  Leading player in  Distinct No 1 player in
Egypt and the largest Egypt and in the MENA region Egypt and the largest
player in the MENA region player in the MENA region
21

22. Delivering on our Growth
Strategy in Emerging Markets
Sales 2010:
~SEK 2.5 bn
Sales 2010:
~SEK 2.9 bn
22

23. Develop adjacent product
opportunities
23

24. Value share growth
Consumer Insight “Best-in-Class” Products
R&D
Product Creation Process
Primary Product
Strategic Consumer development development Launch Range
market plan opportunities execution management Phase-out
Concept Commercial
development launch preparation
Intent Commercial Launch Process
24

25. 2011, First half
(SEKm) 2010 2011 %
Sales 52,444 47,579 -9.3%
in comparable currencies -0.4%
EBIT*) 2,803 1,441 -49%
Europe 952 467 -51%
North America 738 67 -91%
*) EBIT excluding items affecting comparability

26. What have we seen?
(SEKm) 2011 H1
Volumes +2%
Europe -4%
North America +1%
Raw materials - SEK 1.2 billion
Prices - SEK 650 million

27. Growth in Eastern Europe but weak
demand in Southern 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 Q1 Q2
W. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 1% 0% 0% 0% -2% -2%
E. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26% -17% -7% 1% 5% 13% 13% 12%
27

28. North America continued to
decline in July
Quarterly comparison, year-over-year
15%
10%
YTD: -6%
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 July
2006 2007 2008 2009 2010 2011
28

29. Raw material exposure
Other
28% Steel
45%
Plastics
27%
In 2010, Electrolux purchased raw materials for approximately SEK 20 billion
29

30. Steel
CRU US Midwest USD/t
1 100
1 000
900
800
700
600
Dec 09 June 10 Dec 10 June 11
30

31. Plastics
US Market USD/MT
3000
2500
2000
1500
dec-09 jun-10 dec-10 jun-11
31

32. Key External Drivers
Prices
 Tough price environment
 Price increases in North America, Europe and Latin America
Raw-material prices
 Negotiations will start end of this year/beginning of next year
 Headwind or tailwind?
Volumes
 Recovery in Southern Europe (Italy, France and Spain)?
 Improved demand in North America; Discretionary and New Housing?

33. Actions been taken
Innovation/Mix
 Global R&D
 Marketing, Design, Engineering
 Best-in-class products
 Consumer insight process
Productivity
 Global Operations
 LCC production and sourcing
 Leverage scale
 Modularization
Growth
 Organically: Geographically, Segments, Channels
 Acquisitions: Olympic Group, CTI

34. Exposure to
emerging markets % 35

35. 35

36. 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.
36