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Q1 Results,
April 27, 2010
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
Q1 Highlights

EBIT (SEKm)                                          Margin (%)
2500                                                          10
                                                                   Net sales increased by 4% in
                                                                   comparable currencies
2000                                                          8
                                                                       Solid recovery in the US
1500                                                    5,3   6
                                                                       Strong demand in Brazil
1000    3,0                                                   4
                                                                   EBIT amounted to SEK 1,326m,
 500                                                          2    excluding items affecting
                                       0,1
   0                                                          0    comparability
                     -0,4
 -500                                                         -2
                                                                       Increased efficiency
                                                                       Mix and price improvements
-1000                                                         -4
              2007          2008             2009      2010
                                                                       Favorable currencies
        (SEKm)                     Q1 2010      Q1 2009
        Sales                       25,133          25,818
        EBIT                         1,326             38
        Margin                       5.3%            0.1%

                                                                                              2
Rolling 12 months broke Electrolux
EBIT margin target in March 2010

                                                                                                        EBIT margin
  8%                                                                                                       6.1 %


  6%




  4%




  2%




  0%
       Dec Jan Feb Mar Apr Maj   Jun   Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun   Jul Aug Sep Okt Nov Dec Jan Feb Mar


          2008                                                2009                                              2010

                                                                                                                               3
Electrolux financial targets based
on the last 12 months


            Financials                            Target                     Outcome

            Growth1)                                  >4%                      -1.6%

            Gross margin                            >21%                       21.4%

            EBIT                                      >6%                       6.1%

            Capital TO2)                                >4x                     4.4x

            ROCE2)                                  >25%                       26.5%

       1)   Currency-adjusted growth
       2)   Capital employed defined as Equity + Net Financial Liabilities


                                                                                       4
Operating cash flow Q1, 2010

 Stable cash flow                  2500



 Positive earnings                 2000


 contribution                      1500

 Build-up of inventories
                                   1000
    Low level at the end of 2009
                                    500
    Seasonal sales pattern
 Continued favorable                  0


 development of working             -500

 capital/net sales
                                   -1000

 Low investment level
                                   -1500



                                   -2000
                                           Operations (excl. Change in assets    Investments   Operating cash
                                           assets and liab.)   and liabilities                      flow

                                                                   Q1, 2010      Q1, 2009

                                                                                                       5
An increase of max SEK 1 billion
in cost for raw-material in 2010


    Other 18%
                               Raw material cost development
  Aluminium 4%
   Copper 7%                                        400
                                      300                  300
   Plastics 23%
                  19 Billion
                   SEK in
                    2009
                               0

                               Q1     Q2 E          Q3 E   Q4 E
    Steel 48%
                                             2010



                                                                  6
Limited correlation between results
and raw-material cost increases

                                                                                             Sell-side
                                                                 Dramatic                    estimate
              SEKm                                             market demand               April 22, 2010
                                                                  decline
        5000

        3000

        1000


       -1000
                                                                                               Electrolux
       -3000                                                                                    estimate


                   2004         2005         2006         2007         2008      2009   2010

                                    EBIT*         Raw material cost increase
    * Excluding items affecting comparability. In 2008, one-offs are excluded.
                                                                                                      7
Consumer Durables
 Europe
EBIT (SEKm)                                                  Margin (%)
                                                                            Lower sales
1200                                                                   12
                                                                                Decline in private label sales
 800                                                             6,4   8    Strong EBIT improvement
       4,5                                                                      Positive price/mix - strengthened
 400                                                                   4
                                                                                position within the built-in segment
                                              1,5

                                                                            Cost savings
   0                                                                   0
                                                                                Previous cost measures
                         -1,8
-400                                                                   -4   Lower costs for raw materials
                                                                            compared to previous year
-800                                                                   -8
             2007               2008                2009       2010         Strong results for floor-care
        (SEKm)                         Q1 2010             Q1 2009          products – mix improvement and
        Sales                            9,719              10,568
                                                                            positive currency impact
        EBIT                               620                 160
        Margin                            6.4%                1,5%
       2009-2010 numbers are restated due to new reporting structure
                                                                                                                 8
The European market stabilized
in Q1, 2010

                     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

West. Europe 4% 1%    1%   5%   1%    1%   -1% -5%   -4%   -4%   -5% -8%   -9% -9%   -4% -2% 1%

East. Europe 1% 9%    6%   7%   14%   5%   5% 10%    6%    5%    4% -15% -31% -30% -26% -17% -7%

                                                                                                    9
10
Consumer Durables
  North America
EBIT (SEKm)                                          Margin (%)
                                                                   Local currency sales in line with
                                                              10
                                                                   previous year
600                                                                    Exited unprofitable volumes in
                                                        4,5
                                                                       private label
                                                              5
350                                                                    Increased sales under the
       3,0

                                                                       Frigidaire and Electrolux brands
100
                                                                   Strong improvement in earnings
                                                              0
                                                                       Improved mix
-150
                    -2,1             -1,9                              Improved efficiency

-400                                                          -5
                                                                       Higher costs for raw materials
             2007          2008             2009       2010
       (SEKm)                     Q1 2010          Q1 2009
                                                                   Higher sales and improved operating
       Sales                        7,995            9,144         income and for floor-care products
       EBIT                          360              -177
       Margin                       4.5%             -1.9%

                                                                                                        11
In North America, we saw the second
quarter of growth in three years…

                 Quarterly comparison, year-over-year

10%
 5%
 0%
-5%
-10%
-15%
-20%
       Q1   Q2    Q3   Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3   Q4   Q1
            2006                 2007                 2008                2009          2010




                                                                                         12
13
14
15
Consumer Durables
 Latin America
EBIT (mSEK)                                       Margin (%)
 400                                                       10,0   Continued strong
                                                                  demand in Brazil
 300                6,5                                    7,5
                                                     5,5
                                                                     In spite of expired tax
 200   4,1                                                 5,0       incentives

 100                                 1,9                   2,5
                                                                  Improved operating
                                                                  income
   0                                                       0,0
                                                                     Improved product mix
-100
             2007         2008             2009    2010
                                                           -2,5   Lower raw-material costs
       (SEKm)               Q1 2010           Q1 2009             Positive currency impact
       Sales                     3,998            2,625
       EBIT                       220               50
       Margin                    5.5%             1.9%

                                                                                               16
Consumer Durables
 Asia Pacific
EBIT (SEKm)                                                 Margin (%)
250                                                                   10,0
                                                                             Australia: Improved EBIT
                                                                8,4

200
                                                                      9,0
                                                                      8,0
                                                                             despite market decline
                                                                      7,0       Improved product mix
150                                                                   6,0
                         4,7
                                                                      5,0
                                                                                Positive currency impact
100                                                                   4,0       Improved effiency
                                                                      3,0
 50                                          1,4                      2,0    Southeast Asia
      0,1                                                             1,0
  0                                                                   0,0       Market share gain in a strong
                                                                                market
            2007               2008                2009       2010              Product launches
       (SEKm)                      Q1 2010                Q1 2009
                                                                             China
       Sales                           1,912                1,752
       EBIT                              160                   25
                                                                                Positive impact of cost-cutting
       Margin                          8.4%                 1.4%                measures
      2009-2010 numbers are restated due to new reporting structure
                                                                                                            17
Professional Products

EBIT (SEKm)                                          Margin (%)

250                                                           12,0
                                                                     Food service
                   10,4

                                                              10,0
                                                                        Weak market demand
200

                                                              8,0       Improved operating income
150   6,1                             6,1               6,1
                                                              6,0
                                                                        through higher production
100                                                                     efficiency and lower costs
                                                              4,0
                                                                        for raw materials
 50
                                                              2,0
                                                                     Laundry products
  0                                                           0,0
                                                                        Weak market demand
            2007          2008              2009      2010              Slight decline in operating
       (SEKm)                    Q1 2010           Q1 2009
                                                                        income
       Sales                       1,501             1,727
       EBIT                          91               105
       Margin                      6.1%              6.1%

                                                                                                 18
2010 going forward

Top line development
  Product mix                    Launch of new products
  Volume                     +   A stable market growth
  Price                          Defend current levels
Support earnings
  Cost                       +   Positive impact from savings
  Currency                       Tailwind first half peaked in Q1
Take into account
  Raw-material market            Headwind starting in Q2
  Investments in marketing   -   Increased support of
                                 product launches


                                                              19
20
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.

                                                                                    21

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Electrolux Interim Report Q1 2010 Presentation

  • 1. Q1 Results, April 27, 2010 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Q1 Highlights EBIT (SEKm) Margin (%) 2500 10 Net sales increased by 4% in comparable currencies 2000 8 Solid recovery in the US 1500 5,3 6 Strong demand in Brazil 1000 3,0 4 EBIT amounted to SEK 1,326m, 500 2 excluding items affecting 0,1 0 0 comparability -0,4 -500 -2 Increased efficiency Mix and price improvements -1000 -4 2007 2008 2009 2010 Favorable currencies (SEKm) Q1 2010 Q1 2009 Sales 25,133 25,818 EBIT 1,326 38 Margin 5.3% 0.1% 2
  • 3. Rolling 12 months broke Electrolux EBIT margin target in March 2010 EBIT margin 8% 6.1 % 6% 4% 2% 0% Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar 2008 2009 2010 3
  • 4. Electrolux financial targets based on the last 12 months Financials Target Outcome Growth1) >4% -1.6% Gross margin >21% 21.4% EBIT >6% 6.1% Capital TO2) >4x 4.4x ROCE2) >25% 26.5% 1) Currency-adjusted growth 2) Capital employed defined as Equity + Net Financial Liabilities 4
  • 5. Operating cash flow Q1, 2010 Stable cash flow 2500 Positive earnings 2000 contribution 1500 Build-up of inventories 1000 Low level at the end of 2009 500 Seasonal sales pattern Continued favorable 0 development of working -500 capital/net sales -1000 Low investment level -1500 -2000 Operations (excl. Change in assets Investments Operating cash assets and liab.) and liabilities flow Q1, 2010 Q1, 2009 5
  • 6. An increase of max SEK 1 billion in cost for raw-material in 2010 Other 18% Raw material cost development Aluminium 4% Copper 7% 400 300 300 Plastics 23% 19 Billion SEK in 2009 0 Q1 Q2 E Q3 E Q4 E Steel 48% 2010 6
  • 7. Limited correlation between results and raw-material cost increases Sell-side Dramatic estimate SEKm market demand April 22, 2010 decline 5000 3000 1000 -1000 Electrolux -3000 estimate 2004 2005 2006 2007 2008 2009 2010 EBIT* Raw material cost increase * Excluding items affecting comparability. In 2008, one-offs are excluded. 7
  • 8. Consumer Durables Europe EBIT (SEKm) Margin (%) Lower sales 1200 12 Decline in private label sales 800 6,4 8 Strong EBIT improvement 4,5 Positive price/mix - strengthened 400 4 position within the built-in segment 1,5 Cost savings 0 0 Previous cost measures -1,8 -400 -4 Lower costs for raw materials compared to previous year -800 -8 2007 2008 2009 2010 Strong results for floor-care (SEKm) Q1 2010 Q1 2009 products – mix improvement and Sales 9,719 10,568 positive currency impact EBIT 620 160 Margin 6.4% 1,5% 2009-2010 numbers are restated due to new reporting structure 8
  • 9. The European market stabilized in Q1, 2010 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 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 1% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26% -17% -7% 9
  • 10. 10
  • 11. Consumer Durables North America EBIT (SEKm) Margin (%) Local currency sales in line with 10 previous year 600 Exited unprofitable volumes in 4,5 private label 5 350 Increased sales under the 3,0 Frigidaire and Electrolux brands 100 Strong improvement in earnings 0 Improved mix -150 -2,1 -1,9 Improved efficiency -400 -5 Higher costs for raw materials 2007 2008 2009 2010 (SEKm) Q1 2010 Q1 2009 Higher sales and improved operating Sales 7,995 9,144 income and for floor-care products EBIT 360 -177 Margin 4.5% -1.9% 11
  • 12. In North America, we saw the second quarter of growth in three years… Quarterly comparison, year-over-year 10% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 12
  • 13. 13
  • 14. 14
  • 15. 15
  • 16. Consumer Durables Latin America EBIT (mSEK) Margin (%) 400 10,0 Continued strong demand in Brazil 300 6,5 7,5 5,5 In spite of expired tax 200 4,1 5,0 incentives 100 1,9 2,5 Improved operating income 0 0,0 Improved product mix -100 2007 2008 2009 2010 -2,5 Lower raw-material costs (SEKm) Q1 2010 Q1 2009 Positive currency impact Sales 3,998 2,625 EBIT 220 50 Margin 5.5% 1.9% 16
  • 17. Consumer Durables Asia Pacific EBIT (SEKm) Margin (%) 250 10,0 Australia: Improved EBIT 8,4 200 9,0 8,0 despite market decline 7,0 Improved product mix 150 6,0 4,7 5,0 Positive currency impact 100 4,0 Improved effiency 3,0 50 1,4 2,0 Southeast Asia 0,1 1,0 0 0,0 Market share gain in a strong market 2007 2008 2009 2010 Product launches (SEKm) Q1 2010 Q1 2009 China Sales 1,912 1,752 EBIT 160 25 Positive impact of cost-cutting Margin 8.4% 1.4% measures 2009-2010 numbers are restated due to new reporting structure 17
  • 18. Professional Products EBIT (SEKm) Margin (%) 250 12,0 Food service 10,4 10,0 Weak market demand 200 8,0 Improved operating income 150 6,1 6,1 6,1 6,0 through higher production 100 efficiency and lower costs 4,0 for raw materials 50 2,0 Laundry products 0 0,0 Weak market demand 2007 2008 2009 2010 Slight decline in operating (SEKm) Q1 2010 Q1 2009 income Sales 1,501 1,727 EBIT 91 105 Margin 6.1% 6.1% 18
  • 19. 2010 going forward Top line development Product mix Launch of new products Volume + A stable market growth Price Defend current levels Support earnings Cost + Positive impact from savings Currency Tailwind first half peaked in Q1 Take into account Raw-material market Headwind starting in Q2 Investments in marketing - Increased support of product launches 19
  • 20. 20
  • 21. 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. 21