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Q1 2009 Earning Report of Aktiebolagett Electrolux

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Q1 2009 Earning Report of Aktiebolagett Electrolux

  1. 1. Q1 Results 2009 April 22, 2009 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  2. 2. Q1 Highlights EBIT amounted to SEK 38m, EBIT (SEKb) EBIT margin (%) excluding items affecting 2500 10% comparability 2000 8% Restructuring in China, Italy 1500 6% and Russia 1000 4% Continued weak demand in all 500 2% major markets 0 0% Negative currency impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -500 -2% 2007 2008 2009 Strong cash flow -1000 -4% Ongoing cost-cutting measures are giving result Q1 2008 Q1 2009 (SEKm) Sales 24,193 25,818 Price increases in Europe EBIT -39 38 US launch – net negative Margin -0.2% 0.1% 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 Weak market EBIT (SEKm) EBIT margin (%) Lower sales 1000 10% 800 Underlying result in line with 600 previous year 5% 400 – Lower volumes 200 – Reduced capacity utilization 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 – Price increases -200 2007 2008 2009 -5% -400 – Cost reductions -600 Weak market and negative -800 -10% currency impact for floor-care products Q1 2008 Q1 2009 (SEKm) 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% -15% -31% 4% 5% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 6
  7. 7. Consumer Durables North America EBIT (SEKm) EBIT margin (%) Weak market 700 14% – Lower sales in comparable 600 12% currencies 500 10% 400 8% Market-share gain 300 6% SEK 200m negative net 200 4% 100 2% impact of US launch 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -100 -2% Increased raw-material costs -200 2009 -4% 2007 2008 Floor Care: Lower sales -300 -6% partly mitigated by improved mix and price increases (SEKm) Q1 2008 Q1 2009 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* 2009 2006 2007 2008 8
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  10. 10. Consumer Durables Latin America Declining demand in Brazil EBIT (SEKm) EBIT margin (%) 8% 300 Market-share gain 250 6% Operating income lower than 200 last year 150 4% 100 – Large negative currency 2% 50 impact 0 0% – Product mix Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Price increases Q1 2008 Q1 2009 (SEKm) Sales 2,404 2,625 EBIT 156 50 Margin 6.5% 1.9% 10
  11. 11. Consumer Durables Asia/Pacific & Rest of world Australia/New Zealand EBIT (SEKm) EBIT margin (%) 200 8% – Market-share gain 180 7% 160 – Price increases 6% 140 5% 120 – Cost reductions 100 4% 80 3% – Negative currency impact 60 2% 40 Closure of Changsha 1% 20 0 0% factory in China Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Positive price and mix in Southeast Asia Q1 2009 (SEKm) Q1 2008 Sales 2,145 2,228 EBIT 60 105 Margin 2.8% 4.7% 11
  12. 12. Professional Products Food-service EBIT (SEKm) EBIT margin (%) 14% 250 – Weak demand 12% 200 – Lower capacity utilization 10% 150 8% – Cost reductions 6% 100 Laundry 4% 50 2% – Lower sales volumes and 0 0% capacity utilization Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 – Improved price and mix – Positive impact by M&A Q1 2008 Q1 2009 (SEKm) savings Sales 1,753 1,727 EBIT 183 105 Margin 10.4% 6.1% 12
  13. 13. Market view business areas and raw materials impact FY09 Market demand Q209 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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