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Acquisition of CTI,
August 22, 2011
Keith McLoughlin,
President & CEO
Jonas Samuelson, CFO & COO
Peter Nyquist, SVP IR
Transaction Highlights

 Electrolux has agreed to acquire Sigdo Koppers’ controlling
  interest in CTI, the leading Chilean appliance company

 The transaction enhances Electrolux’s position as a leading
  appliance company in the fast-growing Latin American market

 Electrolux will commence cash tender offers for CTI and its
  subsidiary Somela, both listed on the Santiago Stock Exchange
   – Sigdo Koppers (including associated parties) and CTI have
     committed to tender their 64.4% and 78.5% stakes, respectively

 Implied enterprise value corresponds to approx. SEK 4.4 billion



                                                                      2
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
                                                                                                      3
Offer Terms

(CLP per CTI Share)

Offer Price for CTI                                                                                                          34.87
Offer for Somela (1)                                                                                                           4.39
Dividend (H1 2011 Net Profit)                                                                                                  1.63

Total Offer Price to CTI Shareholders                                                                                        40.90


(SEK Bn)

Total Offer Value (2)                                                                                                           4.0
Total Implied Enterprise Value (2)(3)                                                                                           4.4
EV/Sales LTM (x)                                                                                                                1.5
EV/EBITDA LTM (x)                                                                                                               9.1
EV/EBIT LTM (x)                                                                                                                 9.9
P/E LTM (x)                                                                                                                    12.8
Notes
1) Offer price corresponds to CLP325 per Somela share; Net proceeds to be distributed to CTI shareholders via a pre-closing dividend
2) Converted at spot rate CLP/SEK 72.9; Based on an acquisition of 100% of CTI and Somela; Implied multiples based on LTM to 30 June 2011
3) Based on net debt as per 30 June 2011; Proforma for pre-closing dividend corresponding to H1 2011 net profit (post minority interest)
                                                                                                                                            4
Process




 Cash tender offers launched in approximately two weeks

 Offers will run for 30 calendar days

 Expected consolidation in Q4 2011




                                                           5
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 %
Notes
1) Converted at average 2010 rate CLP/SEK 70.8   Net Profit (2)             331 m
2) Pre minority interest

                                                                                   6
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


                                                                                                                     7
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

                                                                               8
Delivering on our Growth
Strategy in Emerging Markets




                               Sales 2010:
                               ~SEK 2.5 bn




Sales 2010:
~SEK 2.9 bn

                                             9
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.

                                                                                    10

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Electrolux acquires Chilean appliance company CTI

  • 1. Acquisition of CTI, August 22, 2011 Keith McLoughlin, President & CEO Jonas Samuelson, CFO & COO Peter Nyquist, SVP IR
  • 2. Transaction Highlights  Electrolux has agreed to acquire Sigdo Koppers’ controlling interest in CTI, the leading Chilean appliance company  The transaction enhances Electrolux’s position as a leading appliance company in the fast-growing Latin American market  Electrolux will commence cash tender offers for CTI and its subsidiary Somela, both listed on the Santiago Stock Exchange – Sigdo Koppers (including associated parties) and CTI have committed to tender their 64.4% and 78.5% stakes, respectively  Implied enterprise value corresponds to approx. SEK 4.4 billion 2
  • 3. 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 3
  • 4. Offer Terms (CLP per CTI Share) Offer Price for CTI 34.87 Offer for Somela (1) 4.39 Dividend (H1 2011 Net Profit) 1.63 Total Offer Price to CTI Shareholders 40.90 (SEK Bn) Total Offer Value (2) 4.0 Total Implied Enterprise Value (2)(3) 4.4 EV/Sales LTM (x) 1.5 EV/EBITDA LTM (x) 9.1 EV/EBIT LTM (x) 9.9 P/E LTM (x) 12.8 Notes 1) Offer price corresponds to CLP325 per Somela share; Net proceeds to be distributed to CTI shareholders via a pre-closing dividend 2) Converted at spot rate CLP/SEK 72.9; Based on an acquisition of 100% of CTI and Somela; Implied multiples based on LTM to 30 June 2011 3) Based on net debt as per 30 June 2011; Proforma for pre-closing dividend corresponding to H1 2011 net profit (post minority interest) 4
  • 5. Process  Cash tender offers launched in approximately two weeks  Offers will run for 30 calendar days  Expected consolidation in Q4 2011 5
  • 6. 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 % Notes 1) Converted at average 2010 rate CLP/SEK 70.8 Net Profit (2) 331 m 2) Pre minority interest 6
  • 7. 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 7
  • 8. 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 8
  • 9. Delivering on our Growth Strategy in Emerging Markets Sales 2010: ~SEK 2.5 bn Sales 2010: ~SEK 2.9 bn 9
  • 10. 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. 10