Electrolux Capital Markets Day. November 15, 2011, Stockholm, Sweden.

1. Keith McLoughlin
How will Electrolux create
sustainable economic value?
Capital Markets day
November 15, 2011

2. The transformation
A tough start
is paying off
2

3. Earnings is down by
approximately 50%
2011, Q3 YTD (SEKm)
EBIT EBIT excluding items
4,780 affecting comparability
-47%
2,539
Europe 1,850 -51%
North 1,151 -85% 911
America 174
2010 2011
3

4. Earnings drop caused
by three factors
Volume Raw material Price
Weak demand Increased costs Decline in
(mature markets) for steel and mature markets
plastics
North America: Headwind of Headwind of
-5% in 2011 YTD ~SEK 1.8bn ~SEK 1bn
Western Europe: in 2011 YTD in 2011 YTD
-3% in 2011 YTD
4

5. Significant deterioration of
consumer confidence in US…
Consumer confidence, US
160
140
120
100
80
60
40
20
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011
Oct
5

6. …as well as in Europe
Consumer confidence, Italy
110
105
100
95
90
Dec Jun Oct
2010 2011 2011
6

7. ...which generated weak
demand in the mature markets
Mature markets Change Growth markets Change
(Core appliances) YTD (%) (Core appliances) YTD (%)
US -5 Eastern Europe +10
Western Europe -3 Russia +21
Italy -9 Brazil +7
Spain -12 Southeast Asia +10
7

8. No US recovery in short term
US Quarterly comparison y-o-y
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 Q4 Q1 Q2 Q3
2006 2007 2008 2009 2010 2011
8

9. Southern Europe is
down 12% YTD
Western Europe Quarterly comparison y-o-y
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2007 2008 2009 2010 2011
9

10. … and we needed to adapt
our estimate for 2011
Electrolux expectations
for market development FY 2011
Core appliances
North
2011 Europe
America
February +3% +2%
October -4-5% -1%
10

11. Raw material prices are coming
down…but from a high level
Market prices for steel
Market prices for plastics
CRU US Midwest USD/t Indexed weighted average
1 100 150
140
1 000
Oct 130 Oct
900
120
800
110
700 100
600 90
Dec Jun Dec Jun Dec Jun Dec Jun
2010 2011 2010 2011
11

12. Prices are down in 2011, but actions
are being taken to increase them
Europe North America
SEKm SEKm
Q1 Q2 Q3 Q1 Q2 Q3
0 0
-100 -100
-200 -200
-300 -300
12

13. Share price is down by 1/3 –
as the rest of the industry
Electrolux B vs AFG Whirlpool and Indesit
250
225
Indesit
200
175 Whirlpool
150
125 Electrolux
100
75
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2010 2011
13

14. The transformation
But we are not standing still
is paying off
14

15. Actions taken
• Acquisitions
• Taking out costs
• Increasing prices
• Launching new
products
15

16. Delivering on our growth
strategy in emerging markets
Sales 2010:
~SEK 2.5 bn
Sales 2010:
~SEK 2.9 bn
16

17. Exposure to
emerging markets 35%

18. Continuing to take out costs
2011 actions
Disposal of Factory in Factory in Improved
production in Alcala closed Webster City purchasing
Motala closed and manu-
facturing
Sweden Spain USA Globally
18

19. Increasing prices
Announced price Announced price Gradual price
increases in the US, increases in Europe increases in
effective as of April, of 5-7% Latin America
2011 • Expected
• Second round implementation in
started in August Q1, 2012
• Third round
announced for
January 2012
19

20. The transformation
Launching new products
is paying off
20

21. AEG Neue Kollektion

22. AEG Neue Kollektion

23. FILM 1
AEG

24. Frigidaire

25. Frigidaire

26. FILM 2
The transformation
Jennifer Garner
is paying off
Frigidaire
26

27. Ultra Clean Washing Machine

28. UltraOne

29. The transformation
Film 3
is payingUltraOne
off
29

30. Ergothree

31. Ergorapido Green

32. Keyhole Hob

33. Professional Food Services

34. Professional Laundry

35. The transformation
The core strategy
is payingthe same…
is off
35

36. Phases in Electrolux
development
Today
36

37. Strategic direction – with increased
focus on growth, accelerated
execution and people
Our Core Values
& Principles Our Strategy Our Purpose
Values Vision
Passion for Innovation Products The worldwide leader
Customer Obsession & Services in making life easier
Drive for Results and more enjoyable
with the help of
Foundation Brand powered appliances
Respect & Diversity
Growth
Ethics & Integrity
Safety & Sustainability Cost
People
37

38. We will pursue our dual business
model while leveraging global scale
and operational synergies
Shared global strength Sharp customer focus Premium
Benefits of scale in:
Focus on differentiated
 Manufacturing
branded product offer
 R&D
 Purchasing
 Common components /
Low cost, lean
modules
go-to-market
 Common processes and
shared services
Market set price
Mass
38

39. We will continue optimizing
our manufacturing footprint and
improve capacity utilization
Opened
plants in low-
cost areas* 9
34 Closed plants in
high-cost areas*
*As of 1996
39

40. Husqvarna spin-off – the final
step in a focused company
Sales SEKbn
Disposal of 22
companies Growth
110 32 58 104 Professional Other
Products
7%
Small 7%
32 Appliances 8%
78%
Husqvarna
spin-off Major Appliances
1996 2006
40

41. We will build the winners and address
core categories through innovation
and cost competitiveness
• Traditionally a strong category due to regional cooking habits
Cooking • Steam ovens, induction hobs, hoods
• Challenging category with over-capacity
Refrigeration • Focus on pockets of growth and sub-categories
• Low penetration and growth area; opportunity to convert
Dish Washing consumers to machine washing
Laundry • Largest category driven by large capacity and high efficiency
• Strong position in North America and Latin America,
Air Care opportunity to grow
• Strong position to build from in Europe
Floor Care & SDA • Profitable business sharing its global strength
• Only Major Appliance company with a true professional base
Professional • Large replacement market growth through the chain business
41

42. We will pursue the alignment of our brand
architecture, connecting business models
to brand, product/services and cost
EU NA LA AP
NICHE Niche Brand Niche Brand Niche Brand Niche Brand
PREMIUM
(Australia)
MASS (Brazil)
(Australia)
Tactical Brands
42

43. Growth will come from value share in
core markets and expanding in emerging
markets, new channels and adjacencies
Markets/Channels
Desired Position 2015
Emerging Markets/ New Products and
New Channels Markets / Channels
Electrolux New / Adjacent Products
Existing Categories
2011
Enhance Product / Range
Product
Existing New
43

44. We will invest in benchmark customer
care to enhance service and seize
business opportunities
Service as
competitive
differentiator
2015
Today
Lowest After-market
cost business
No focus After-market as a ambition
key business area
44

45. Electrolux sustainability
strategy
Our mission:
“making appliances that are more resource efficient, more
affordable and available to more people around the world”
Our key strategic areas
1. Products, 2. People & Operations 3. Stakeholders
Services & Markets Alignment to our foundation & Society
Driving innovation and by continuously improving Stakeholder dialog,
growing the market for our operations for people raising awareness and
more resource efficient and the environment building partnerships for
appliances sustainable solutions
45

46. Recognition of sustainability
leadership
Sustainability sector leader in the US (2006-2010) and Germany (2010)
Component of the World’s Most Energy Star Partner (2011) “Best corporate commitment”
Ethical Companies (2011) European Commission (2007)
46

47. Attracting, retaining and developing
the best people fundamental
in realizing our strategic objectives
Values Passion for Innovation Customer Obsession Drive for Results
Foundation Respect & Diversity Ethics & Integrity Safety & Sustainability
47

48. Summary
GROWTH
PRODUCT &
SERVICES • Grow Value Share in
Mature Markets
• Grow in Emerging
Desired
PEOPLE BRAND Markets Position
2015
• Grow in Adjacent
Product Categories
COST
• Grow the ”Winners”
48

49. Desired Position 2015
Best Appliance Company in the world:
49

50. …and we need to speed up
The transformation
implementation
is paying off
– Innovation
– Operational Excellence
– Profitable Growth
50

51. New Group Management
51

52. 75% of Group Management
members have worked and lived
in two or more continents
52

53. Accelerate innovation
and time to market
Increased focus on ”Innovation “Best-in-Class” Products
Triangel”, new members of
Group Management
1. Develop best-in-class products
2. Speed up product innovation
3. Continue investing in premium
brands
R&D
53

54. Develop “Best-in-class” products
• Identify consumer needs
and segments
• Develop products with innovative
design and functions
• Increase sales of premium products
54

55. Speed up product innovation
• Accelerate consumer insight driven
differentiation
• Tailor products with high consumer
preference
• Increase innovation rate and reduce
time to market
Product Creation Process
Primary Product
development development 70%
Strategic Consumer Launch Range Phase-
market plan opportunities
Concept Commercial
execution management out consumer
development launch preparation preference
Intent Commercial Launch Process
55

56. Investments in premium brands
• Invest in premium brands
across all markets
• Align Electrolux brand
architecture and position
globally
• Leverage our knowledge in
the professional business
56

57. The transformation
Adjust our capacity
is paying off
- manufacturing footprint
57

58. North America
k units
Market volumes in North America
60 000
55 000
50 000
35% gap
45 000 from
expected
40 000 development
35 000
30 000
25 000
1990 1995 2000 2005 2010
58

59. Western Europe
k units Market volumes in Western Europe
90 000
85 000
80 000
25% gap from
75 000
expected
70 000 development
65 000
60 000
55 000
50 000
1990 1995 2000 2005 2010
59

60. The transformation
Accelerate efficiency
improvements and cost reductions
is paying offoperations
- global
60

61. Accelerate activities
to bring down cost…
Total savings SEK 5.1bn
Manufacturing Global
footprint Operations Overhead cost
1.6 3.0 0.5
Costs, SEKbn 3.5 1.0* 0.5
Actions taken until 2015 2015 2012
Realized 2016 2015 2012
Total costs SEK 5.0bn
* SEK 500m in 2011 and SEK 500m in 2012
61

62. Coming from heavy exposure
to mature markets…
62

63. …with tremendous growth
opportunities in emerging markets
63

64. The transformation to
Electrolux will continue
is paying off
create sustainable
economic value
64

65. Consensus gives a margin of 4% for 2011
– Electrolux normal earnings some years ago
% EBIT-Margin
10
8
6
Average ~4%
4
2
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005 2006 2007 2008 2009 2010 2011
-2
65

66. EBIT Target 6%

67. Capital Turnover 4

68. ROCE Target 25%

69. Organic Growth 4%

70. The transformation
We are a
is paying off
healthy company…

71. The transformation
… and we still have
is paying off to do
work

72. 72

73. 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.
73

74. Jonas Samuelson
Focus on cost to stay
competitive
Capital Markets day
November 15, 2011

75. The transformation
What we have achieved
is paying off
2

76. Status of manufacturing program
Current status Our journey since 2004
• Total costs: SEK 8.1 billion • 19 factories closed down
– Booked as items affecting • 5 factories downsized
comparability • 11 new factories
– Current accumulated cash out:
• Approximately 35% of
SEK 5.5 billion
production moved
– Write downs: SEK 2.6 billion
• Savings: Annual savings
of SEK 3 billion (since 2004)
• 62% of capacity in low cost areas
3

77. Restructuring time line –
Costs
9,000
SEKm 50
1,100
1,600
400
400
400
8,150
2,500
1,700
0
2004 2005 2006 2007 2008 2009 2010 2011 Total
4

78. Restructuring time line –
Savings
3,000
SEKm
600
500
200
3,000
1,700
0
2008 2009 2010 2011 Total
5

79. Restructuring time line –
Capacity in low-cost areas
Percentage of Capacity in LCC
62%
53% 55%
51%
43%
39%
31%
28%
2004 2005 2006 2007 2008 2009 2010 2011
6

80. We have been able to deliver
on previous cost-savings programs
Approx. 15%
improvements Approx. SEK 9bn in raw-
EBIT %
material cost headwind
20
2004-2010
16
12 Cost
savings 2010:
~2/3 SEK 6.5bn*
8
4
4.5% SEK 4.8bn*
0
2003 Improve- Raw WEEE Brand Market 2010
ments materials and R&D related
*) Excluding items affecting comparability
7

81. New production centers
have been built and acquired
Eastern Europe
Asia
Mexico
South America Egypt
• Reducing Global Manufacturing Costs
• Supporting Strategic Growth Areas
8

82. Current activities
• Closure of L’Assomption in Canada (2013)
• Build Memphis plant in the US
(to receive L’Assomption volume)
• New refrigeration plant for SEA market
in Thailand (starts operating in 2013)
• Close down production line in Kinston
• Olympic, Egypt
• CTI, Latin America
9

83. The transformation
Moving forward,
is paying have changed
things off
10

84. We need to further
adapt our capacity
• Regional vs global manufacturing
strategy
• Declining demand in mature markets
• Improve manufacturing efficiency
• Accelerate our efforts
11

85. Broadening drivers for
manufacturing strategy
• Costs
COSTS • Global manufacturing strategy
• Support strategic growth
2004 - 2010 2011 - 2015
12

86. Adapt our production capacity
to current demand
Market volumes in North America
60,000
55,000
50,000
35% gap from
45,000 expected
development
40,000
35,000
30,000
25,000
1990 1995 2000 2005 2010
13

87. Adapt our production capacity
to current demand
Market volumes in Western Europe
90,000
85,000
80,000
25% gap from
75,000
expected
70,000 development
65,000
60,000
55,000
50,000
1990 1995 2000 2005 2010
14

88. Electrolux Manufacturing System
(EMS)
• Standardized manufacturing
principles, tools and methods,
for all factories, using best internal
and external experiences
• Continuous improvement
of methodology – with full
involvement of all employees
Cost reduction and customer satisfaction
Productivity Inventory Delivery Quality Safety
improvement reduction on time
15

89. The transformation
Further actions
is paying off
16

90. Further actions
Costs Savings Manufacturing footprint
SEK 3.5 billion Annual savings
• Cash out: ~2/3 of SEK 1.6 billion 70% of capacity
• Write downs: ~1/3 • 2011 Volume in low-cost areas
assumptions used
17

91. Restructuring time line –
Costs
SEKm
11,650
3,500
8,150
2011 YTD 2011-2015 2015
18

92. Restructuring –
Savings
SEKm
1,600 4,600
3,000
2011 YTD 2011-2015 2015
19

93. Annual savings/
Total costs 46%
20

94. Target manufacturing footprint
by 2015
Manufacturing footprint HCA
Declining segments 5%
Efficient and
competitive 10%
LCA
70% 30%
Regionally
specific 15%
products
21

95. We need to increase current
capacity utilization
Capacity utilization • Decrease capacity
• Shift capacity to Growth
Today Future
85% low-cost areas
75%
0%
HCA LCA HCA LCA
22

96. In 2005-2006, we moved
The transformation
25% of our total European
is paying offnew plants in
volumes to
low-cost areas
23

97. Will not build
The transformation
new factories
is paying off
to move capacity
24

98. We are in the final phase of
our restructuring program
Eastern Europe
Asia
Mexico
South America Egypt
25

99. The Global Operations –
transformation
is paying off
an update
26

100. We stick to our plan and
accelerate delivery
• Ambitious targets for 2015
• Rigorous plan; confident
in delivery
• Visible results, now
– Accelerated manufacturing
footprint improvement
– Bottom-line impact from purchasing
– Roll-out of modularization
accelerated
– Globalized governance in R&D
27

101. Outcome from the first modularization
deep dive in Food Preparation
Annual purchasing spend
Percent of total spend, Impact on complexity
Module 100% = SEK 1,344m From … … to
Mechanical
41
Mechanical structure
structure
11 10
concepts
Glass pack 35 94 16 Glass width classes
12 Handle mounting
Handle 58 5
positions
9 Hinge concepts
Hinge 11 2
(bodies)
3
Door lock 20 1 Door locks
100
Total door 50 10 Door concepts
Structural savings SEK 150 million
28

102. Modularization in Fabric Care
Wash Group example
Impact on complexity
Annual spend, share Number of parts Impact on
Module 100% = SEK 2.1 billion From 2011 To 2016 differentiation
Total Wash 100 1,027 891
Group
Drum/Spin
40 346 337
bowl
Tub/Outer
35 304 253
bowl
Vibration 14 242 203
dampening
Bellow 6 79 53
and clamp
Heater 4 56 45
Structural savings of SEK 370 million
MAB Wash Group
29

103. Global Operations
We have identified a greater
potential within modularization which
will generate higher savings 3
SEKbn
30

104. Savings from Global Operations
Manufacturing
17%
Modularization
50%
33%
Purchasing
31

105. Savings from the
Global Operations program
SEKbn Savings (y-o-y) Investments
0,9
0,8
0,7
0,5
0,1
2011 2012 2013 2014 2015
-0,5 -0,5
32

106. We stick to our plan and accelerate
delivery
• Ambitious targets for 2015
• Rigorous plan;
confident in delivery
• Visible results, now
– Accelerated manufacturing footprint
improvement
– Bottom-line impact from purchasing
– Roll-out of modularization
accelerated
– Globalized governance in R&D
33

107. 34

108. 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.
35

109. MaryKay Kopf
The Innovation Triangle
Capital Markets day
November 15, 2011

110. Innovation Strategic Priorities
for Marketing
Differentiate Brand Platform Streamlined Innovation Process
• Target More Consumers with • Leverage Local Consumer Insights
Strategic Brands for More and Market Knowledge
Products Consumers Prefer • More Inspired Thinking, More Ideas,
Accelerate Front End Innovation More Innovations
• Improved Collaboration across • Faster
Marketing, R&D and Design for More Best in Class Products
Faster Innovations Consumers Prefer
• Prioritized Global Innovation and • 70 percent consumer preference rule
Growth Areas
• Ultra Clean
• Streamlined Planning/Global
Governance and Managing Innovations in Marketing
Process (ITC) • Design Lab
• Activate Innovation Triangle • The Cube
Teams in the Sector
• Instant Clean
2

111. Accelerate Front End Innovation
Linking insights to innovation to plans is key
to building‘best-in-class’product portfolio
Best-in-Class” Products & Consumer Insight Coordinated long term brand driven
Product Ranges driven differentiation product planning & launching
Generation Plan Food Preparation LA
Generation Plan Food Preparation LA
Hobs, Cookers, Ovens, MWO
Brand Marketing Hobs, Cookers, Ovens, MWO
Latin America
Groups
KH - Hobs
Project name
Electric, induction (Builtin hobs, with controls)
Latin America FARRAH
2009 2010 2011 2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 CP3 2011 2012 2013 2014 2015
Gas Groups hobs, with controls) name
(Builtin Project Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
KH - Hobs RENATA-II CP3
Electric, induction (Builtin hobs, with controls)
KI - Freestanding Cookers
FARRAH
Double cavities (Freestanding cookers, gas)
CP3
Gas (Builtin hobs,GLASS EXTENSION
MARIANE with controls) CPCD
RENATA-II
Ministoves, Freestanding compact table-top ovens
CP3
Consumer KI - Freestanding Cookers
CINTIA II
Double cavities (Freestanding cookers, gas)
Single cavity (Freestanding cookers, gas)
MARIA MARIANE GLASS EXTENSION
Ministoves, Freestanding compact table-top ovens
MEL UPDATE
MARILENE CINTIA II
CPCD
CPCD
CPCD
CP3
Single cavity (Freestanding cookers, gas)
VERA
KM - Microwave ovens MARIA CP3
Microwave ovens MEL UPDATE CPCD
MARILENE
ANNE-I - Phase I CP3
CPCD
JIA VERA CP3
Market
KM - Microwave ovens
ANNE-I - Phase II CP3
Microwave ovens
ODETTE CPCD
JIA EXTENSION - Phase I
ANNE-I CP3
CPCD
JIA
VICKY - MANAUS CPCD
CP3
ITC
ERICA ANNE-I - Phase II CPCD
CP3
R&D ANNE II ODETTE
CPCD
CPCD
JIA II JIA EXTENSION CPCD
CINDY UPDATE - MANAUS
VICKY CPCD
ERICA
ODETTE MANAUS
CPCD
Bread Maker ANNE II CPCD
Design WIDE SCREEN JIA II MWO
KS - Cookers CINDY UPDATE
ODETTE MANAUS
Built-under gas cooker, (Swiss-German system)
CLARICE Bread Maker
II CP3
Ground or catalytic enamel, multifunction MWO(Builtin, electric, eye level/wall ovens)
WIDE SCREEN oven
KS - CookersESTELA III CPCD
Built-under gas cooker, (Swiss-German system)
Ground or catalytic enamel, traditional oven (Builtin, electric, eye level/wall ovens)
CLARICE CLARICE II
CP3
III CPCD
Single cavity (Builtincatalyticgas)
Ground or ovens, enamel, multifunction oven (Builtin, electric, eye level/wall ovens)
CLARICE ESTELA III
CPCD
CP3
[EMPTY] Ground or catalytic enamel, traditional oven (Builtin, electric, eye level/wall ovens)
Technology [EMPTY]
MARIANE-GLASS III
CINTIA
SARAH 76
SARAH 56
CLARICE
Single cavity (Builtin ovens, gas)
MARIANE
CLARICE
MARIANE-GLASS
CP3
CPCD
CP3
CP3
CP3
KZ - Cooker hoods MARIANE
Miscellaneous (Cooker hoods) CINTIA CP3
SARAH 76
CHER-I EXTENSION CP3 12
SARAH 56
KZ - Cooker hoods
Competition
AP / Int 2009 2010 2011 2012 2013 2014 2015
Groups
Miscellaneous (Cooker hoods)
Project name Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Design KI - Freestanding Cookers CHER-I EXTENSION CP3 12
Ministoves, Freestanding compact table-top ovens
AP / Int CINTIA II 2009 2010 2011 2012 2013 2014 2015
Groups Project name Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
KI - Freestanding Cookers
Ministoves, Freestanding compact table-top ovens
CINTIA II Consumer Opportunity Concept Development Primary Development
Product Development Commercial Launch Completed PD
Consumer opp. leadtime Concept develop. leadtime Primary develop. leadtime
Consumer Opportunity Concept Development Primary Development
Product develop. leadtime Launch leadtime Completed PD leadtime
Product Development Commercial Launch Completed PD
Sector : EMA Latin America
Consumer opp. leadtime Concept develop. leadtime Primary develop. leadtime
Product line : Food preparation
Product develop. leadtime Launch leadtime Completed PD leadtime
Innovation Activation
Sector : EMA Latin America
Product line : Food preparation
3

112. Streamlined Innovation Process
Innovation Activation
Key Objectives
Accelerate Innovation
• Get relevant and differentiated products into the hands of
consumers faster by reducing time to market.
Stronger Brands with More Products Consumers Prefer
• Develop strong brands that our consumers aspire to own by
launching new products and services they prefer over the best in
class competition by 70%.
Relentlessly Execute Growth Strategy
• Operationalize our growth strategy by working within the Innovation
Triangle Council and activating the Innovation Triangles in the
Sector. Innovation Activation brings our strategy to life through best
in class, insight-driven products and services.
4

113. Innovations in Marketing
Electrolux Design Lab 2011
• Intelligent mobility
• Over 1300 entries
• Finals in London
• 6 month internship
• Winner Portable washer
• All to be admired
outside
5

114. Innovations in Marketing
The Cube
Image of Cube in Milan:
to open on December 1st
• Experiential platform for
professional heritage
• Pop up restaurant touring
Europe
• Exclusive location with unique
view for 18 guests
• Top chefs using professional
and home appliances
6

115. The transformation
FILM 4
is paying The cube
off
7

116. Innovations in Marketing
Instant Clean
Facelift (colors,
2004 Ergorapido
1st generation 2005 Range extension
2006 technical improvements)
Ergorapido Special Edition 2nd generation, Centaur
(High Gloss Paint,
2008 Mirror dust cup, 2007 (new colors, updated design,
100% technically improved product
new metallic paint)
Facelift (new colors, nozzle
Range ext. (new colors,
front lights, tech.
2009 improvements, Lithium-model 2011 special edition, green,
more lithium models)
with battery display)

117. Innovations in Marketing
Vac from the Sea Story
October 2010:
• Electrolux relaunches its green
range of vacuum cleaners made
from up to 70% recycled plastics.
• High grade recycled plastics are a
scarce resource.
• Plastic waste contaminates oceans
and is becoming a growing threat to
marine life all over the world.
Launch communication:
Electrolux inspires both industry and future generations to act responsibly.
We improve our work every day and engage science, politics and consumers
to join forces around the plastic issue.
9

118. The transformation
FILM 5
is paying off the sea
Vac from
10

119. 11

120. 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.
12

121. Jan Brockmann
The Innovation Triangle
Capital Markets day
November 15, 2011

122. Electrolux Dual Business Model – how
Product Development supports it
Shared global strength Sharp customer focus Premium
Benefits of scale in:
Focus on differentiated
 Manufacturing
branded product offer
 R&D
 Purchasing
 Common components /
Low cost, lean
modules
go-to-market
 Common processes and
shared services
Market set price
Mass
Product concepts need to allow:
• Brand differentiation in consumer relevant areas
• Product innovation at a fast rate
• Cost differentiation in non-consumer relevant areas
and in the product and operations structure
2

123. Automotive tools and methods
used in product development
• Modularization
• Cost-differentiated product platforms
• Strengthened internal innovation capabilities
in core competence areas
• Open innovation
• Front loading of the product development-process
– With marketing and design = winning product specifications
– With advanced purchasing and manufacturing planning
(simultaneous engineering) = cost effective, robust and scaled
products
3

124. 4

125. 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.
5

126. Keith McLoughlin
Profitable Growth
Capital Markets day
November 15, 2011

127. Growth
Net sales growth
(in comparable currencies)
5%
0%
-5%
2006 2007 2008 2009 2010
2

128. Growth Target 4%

129. Sell-side
Consensus
1-2%

130. Our strategic growth initiatives
EMEA NA LA APAC Prof. FC
Segments/Channels
Geographic Expansion
Growth
M&A
Product Expansion

131. Film 6
Film 6
Mixer
Mixer

132. Electrolux exposure to emerging
markets
2009 2011
25% 35%

133. The transformation
Acquisition of CTI
is paying off
8

134. Acquisition of CTI completed
• Founded in 1905, CTI is the
leading manufacturer of large
household appliances in Chile
• Listed on the Santiago Stock 78.5%
Exchange, with controlling
shareholder Sigdo Koppers CST
• Key subsidiaries: Frimetal and
Somela (listed) Key Financials (SEK) (1)
• Three production sites in 2010
Chile and Argentina Sales 2.9bn
EBIT 453m
• Approx. 2,200 employees
EBIT Margin 15.8 %
1) Converted at average 2010 rate CLP/SEK 70.8
Net Profit (2) 331m
2) Pre minority interest
9

135. CTI brands
10

136. Film 7
CTI Gafa

137. 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
12

138. 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
13

139. The transformation
Acquisition of Olympic
is paying off
14

140. Film 8
Describing Olympic

141. A solid result and growth
Sales Olympic Group, EGP million
CAGR (Sales) ~6%
3,000 13.6% 20.0%
14.2% 16.8%
16.5%
2,500
15.0%
2,000
1,500 10.0%
1,000
5.0%
500
0 0.0%
2007 2008 2009 2010
Sales EBITDA Margin
16

142. Film 9
Olympic
Water heater

143. Our Ukrainian acquisition positions
us for continued growth in the region
Russia
no duties
Belarus
no duties
Kiev
Ukraine Laundry Factory
EU
18

144. The transformation
What can we achieve?
is paying off
19

145. Our acquisitions support
growth in emerging markets
Growth markets
Organic growth
Acquisitions
20

146. Electrolux growth
in Brazil
Electrolux Net Sales Brazil
(In SEKm)
13,608
CAGR: 18.6%
2,473
00 01 02 03 04 05 06 07 08 09 10
21

147. Electrolux growth in
Southeast Asia
Electrolux Net Sales Southeast Asia
(In SEKm)
CAGR: 16.4%
2,500
2,000
1,500
1,000
500
0
2006 2007 2008 2009 2010
22

148. If we fully utilize organic growth
opportunity – more than 40% of sales
could be in emerging markets by 2015
Today Growth 2017
Mature
Mature markets
markets 1-2% 50%
65%
Emerging
Emerging
markets
7-10% markets
~50%
35%
Note: Estimated figures
23

149. Tremendous growth
opportunities in Asia
Region/Country Population (million) GDP (USD billion)
China 1,340 5,900
India 1,210 1,600
Southeast Asia1) 594 1,700
US 313 14,500
Western Europe 413 15,000
1) Includes: Brunei, Burma, Cambodia, East Timor, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam
24

150. 25

151. Gunilla Nordström
EMA Asia/Pacific
Capital Markets day
November 15, 2011

152. Asia Pacific – a growth region
- Over 1.2 billion people will be added to global
middle class in Asia Pacific
Global Middle Class (millions) 2010 Penetration rate (Examples)
Middle East & 2009 Australia China Indonesia
North Africa 2020
Refrigerators 99 54 19
Sub-Saharan Washers 97 58 9
Africa
Dryers 60 1 0.1
Central &
South BI Hobs & Cookers 94 55 6
America
Hoods 79 41 1
Asia Pacific Ovens 48 2 2
Air-con 78 53 8
Europe
• Strong growth across Asia
• APAC representing over 80% of
North
America the growth in the global middle class
0 50 100
Source: OECD & The Economist
2

153. 2/3 of global appliance growth
will come from APAC
+3.8%
1 200 SEK 1,138bn
Growth fueled by
1 100 emerging markets
1 000 SEK 944bn
900 Rest of
Rest of
650 world 74
800
Mkt. Size (SEKbn)
world
700
576
600
SE Asia 27
500
70 SE Asia NE Asia 18
400 Australia 2
43 145 NE Asia 25
300 India
127 23 Australia
200 50
21 India
25 48
100 200 China
152 China
APAC
0
2010 2015 62% Absolute Mkt. Growth (10-15%)
3

154. EMA APAC has gone from
turnaround to profitable growth
Total market at Electrolux NS APAC EBIT APAC
NS value SEKbn (SEKbn) (SEKm) NOWC (%)
600 10 1,000 25%
Total 3% CAGR
market 800 20%
500
9
600 15%
400 EBIT
400 10%
8 NOWC %
300 200 5%
7 0 0%
200
-200 -5%
6
100
-400 -10%
-600 -15%
0 5 2002 2003 2004 2005 2006 2007 2008 2009 2010
2002 2003 2004 2005 2006 2007 2008 2009 2010
4

155. Asia/Pacific – key priorities
Fix China
• Eliminate losses
• Build a platform for profitable growth
• Invest in design and BIC products for
China
Build a double-digit position in SE Asia
• Accelerate profitable growth in SEA
• From niche to mass premium
• Expand distribution and product range
Grow value share in Australia
• Defend profit pool and market leadership
• Enter adjacent categories
• Strengthen and grow Electrolux brand
Accelerate Consumer Insight lead Product Innovation
5

156. Asian consumers similar
but products differ from Western
Market Fresh
Spiral Burner • Externally driven Affirmation Refrigeration
• Prestigious Brands important
• Technology Adopters
• Asian Cooking
• Fresh Food
• Living Space
• Design
Deep Hood
6

157. Southeast Asia
SE Asia Economics
Population GDP 2006-11
Urban
millions USDbn CAGR
24% 27% Indonesia 245 44% 707 5.7%
Philippines 102 49% 189 4.9%
Vietnam 90 30% 104 7.0%
Thailand 67 34% 319 3.6%
22% Malaysia 28 72% 238 4.5%
27%
Singapore 5 100% 223 6.5%
USD 6.5bn USD 6.5bn
Singapore Others
Malaysia urban
Air-con Wealthy
Philippines Buyers
Vietnam
Washing provincial
Indonesia
Cooking
Refrigeration
First Time Buyers rural
Thailand
7

158. Southeast Asia growth strategy
Background & Position Growth Strategy
• Established early – long history • Category expansion
• Strong premium brand position • Distribution expansion
• Strong in high end / niche market • Strong trade relations
• Market leadership in front load washers • In-store execution & promoter presence
• Electrolux = High quality • Brand building – consistent campaigns
Market shares Category mix
LG 100%
Other
80%
60%
Panasonic
Hitachi
40%
Electrolux 20%
Sharp
Sanyo
Toshiba Samsung 0%
2006 2009 2011
8

159. Marketing in SEA
Washing Marathon Asian Food Channel Concept Stores
Cooking Demonstration My Mobile Kitchen Brand Corners
9

160. Country overview - China
Facts
Population 1.3bn
Urban population 47%
2010 GDP USD 5,900 bn
Population below 2.8%
poverty line
Inflation rate 3.2%
GDP growth
• Most populous country
• 2nd largest economy
• World leader in
industrial output
• World’s largest exporter
• Labour force – Agriculture
(38%), Industry (28%),
Services (34%)
10

161. The China market
– A huge opportunity
Others
• Competitive
Gree
• Challenging
Suning Haier
• Complicated
Midea
Gome China
Suppliers
China Retail
Channels
11

162. EMA China – 2002 to 2011
Net Sales vs Market Value Electrolux Profitability
Market value Electrolux NS EBIT (RMBm) EBIT margin
(RMBm) (RMBm)
2002 2004 2006 2008 2010
350,000 2,500 0 0%
China market CAGR 47%
value
-10%
300,000
-50
2,000 EBIT % -20%
250,000
Electrolux NS -100 -30%
1,500
200,000 -40%
-150
-50%
150,000
1,000
-200 -60%
100,000
-70%
500 -250
50,000 -80%
0 0 -300 -90%
2002 2004 2006 2008 2010
12

163. 13

164. 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.
14