The Q3 results from Electrolux show a slight decrease in net sales and EBIT margin but highlight the company's ongoing growth strategies, including acquisitions and operational improvements. The company has made significant strides in emerging markets, particularly in Egypt and Eastern Europe, and aims to achieve a 6% operating margin by year-end. Challenges such as raw material cost increases and market demand fluctuations in North America are noted, alongside strong performances in Asia and Latin America.

1. Q3 Results,
October 27, 2010
Hans Stråberg,
President and CEO
Jonas Samuelson, CFO
Peter Nyquist, SVP IR

2. Approaching a record year
Target of 6% within reach
EBIT margin (YTD) at 6.1%
Building foundation for growth
Potential acquisition of Olympic Group, Egyptian appliances company,
will accelerate growth in emerging markets
Increased presence in Eastern Europe by acquisition of washing-
machine factory in Ukraine
Increased exposure to emerging markets by strong organic growth in
Asia/Pacific
Continued strong mix
Frigidaire launch in North America
Launch phase initiated in Europe
Strong product launches in Latin America
2

3. Q3 Highlights
EBIT (SEKm) Margin (%)
2500 10 Net sales decreased by
8,1
7,5
8 2.3% in comparable
2000
6
currencies
1500
4 EBIT amounted to
2
SEK 1,977m
1000
0
– Raw-material headwinds
500
-2
– Increased marketing
spend
0 -4
2009 2010
– Mix improvement
(SEKm) Q3 2010 Q3 2009
Sales 26,326 27,617
– Cost savings
EBIT* 1,977 2,234 – Price promotions
Margin 7.5% 8.1%
*) EBIT excluding items affecting comparability
3

4. Q3 Operating cash flow
4 000
Q3 cash flow reflects normal 3 500
seasonal pattern 3 000
Stronger second half 2 500
– Increased production 2 000
1 500
– Build-up of inventories
1 000
– Higher sales
500
Q309 reflected low production
0
and low inventory levels
-500
Higher level of investments -1 000
compared to last year -1 500
Operations (excl. Change in Investments Operating cash
assets and liab.) assets and flow
liabilities
Q3, 2009 Q3, 2010
4

5. Olympic Group – accelerating
growth in emerging markets
Increase our presence in emerging markets
Improve ability to grow in North Africa and
the Middle East
OG is currently licensing our brands
Cost-competitive sourcing base
Olympic Group
Sales ~SEK 2.5bn
EBITDA (adj.) >13%
Market share, Egypt ~30%
Market growth, Egypt >10%
5

6. Consumer Durables
Europe
EBIT (SEKm) Margin (%)
1500 12
Lower sales
9,9 – Decline in private label sales
9,0 10
– Price pressure
1000 8 Strong EBIT improvement
6
– Strong mix – increased sales
within built-in segment
500 4
– Cost savings – previous cost
measures
2
– Positive one-off effect
0 0
2009 2010 Increased marketing spend
(SEKm) Q3 2010 Q3 2009 – Launch of AEG-branded
Sales 10,210 11,322 products in Europe
EBIT 1,014 1,014
Strong results for floor-care
Margin 9.9% 9.0%
products – mix improvement
6

7. Flat market in Europe; but Eastern
Europe has started growing
Quarterly comparison, year over year
10%
5%
0%
-5%
-10%
-15%
2006 2007 2008 2009 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 1% 0% 0%
East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26%-17% -7% 1% 5%
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10. Consumer Durables
North America
EBIT (SEKm) Margin (%)
800
7,9
8
Market-demand decline
– Incentive program ended in Q2
600 5,3 6 Net sales decreased by 4%
– Exited unprofitable volumes
400 4
EBIT amounted to
200 2 SEK 439m
– Higher raw-material costs
0 0 – Price promotions
Lower sales and operating
-200 -2
2009 2010 income for floor-care
(SEKm) Q3 2010 Q3 2009
products
Sales 8,353 8,869
EBIT 439 705
Margin 5.3% 7.9%
10

11. After three quarters of growth, the
market in North America declined in
the third quarter
Quarterly comparison, year-over-year
15%
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
2006 2007 2008 2009 2010
11

12. Consumer Durables
Latin America
EBIT (mSEK) Margin (%)
400 10,0
Stable market demand in
8,3
Brazil
– Rest of Latin America showed
300 7,5
strong growth
5,7
Operating income amounted
200 5,0
to SEK 231m
– Negative customer mix
100 2,5
– Increased raw-material costs
– Increased marketing spend
0 0,0
2009 2010
(SEKm) Q3 2010 Q3 2009
Sales 4,069 3,813
EBIT 231 318
Margin 5.7% 8.3%
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14. Consumer Durables
Asia/Pacific
EBIT (SEKm) Margin (%)
300 14,0
Australia: Market stabilization
12,1 and improved EBIT
250 12,0
– Improved product mix
10,0
200 8,3 – Positive currency impact
8,0 – Improved efficiency
150
6,0 – Increased raw-material costs
100
4,0 Southeast Asia and China
50 2,0 – Market-share gain in strong
markets
0 0,0
2009 2010 – Positive impact of cost-cutting
measures
(SEKm) Q3 2010 Q3 2009
Sales 2,192 1,982
EBIT 265 164
Margin 12.1% 8.3%
14

15. Professional Products
EBIT (SEKm) Margin (%)
250 15,0
Food-service
13,5
– Increased market demand
200 12,0
10,6
– Higher capacity utilization
150 9,0 – Improved customer mix
– Cost savings
100 6,0
Laundry products
50 3,0 – Stabilization of market demand
0 0,0
– Improved cost efficiency
2009 2010 – Price increases
(SEKm) Q3 2010 Q3 2009
Sales 1,501 1,629
EBIT 202 173
Margin 13.5% 10.6%
15

16. Fourth quarter
Top line development
Product mix; continues to have a positive impact
Market volumes; flat year-over-year
Electrolux volumes; still impacted from exiting low-profit business in NA
Price pressure; temporary price cuts driven by promotion in NA
Cost development
Cost savings; positive impact from the restructuring program
Raw-material prices; still a negative year-over-year effect
Increased marketing and brand spend
Take into account
Similar seasonal pattern as last year; slightly weaker Q4
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17. Full year 2010
…one quarter remains, and I am
confident that 2010 will be the year
we reach our target of an
operating margin of 6%.
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18. 18

19. 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.
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