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Q1 Results,
April 25, 2012
Keith McLoughlin, President and CEO
Tomas Eliasson, CFO
Peter Nyquist, SVP IR
Q1 Highlights

EBIT (SEKm)                                                       Margin (%)
1 400                                                                      5
                                                                                      • Strong growth of 10.4%
1 200
                                                                                4       – Organic growth of 3.5%
                                                                     3.6
1 000
              3.0
                                                                                        – Acquisitions growth of 5.8%
                                                                                3
 800
                                                                                      • Operating income increased to
 600
                                                                                2
                                                                                        SEK 943m
 400                                                                                  • Price increases
                                                                                1
 200                                                                                  • Market-share gain in Europe
   0
                                2011                              2012
                                                                                0     • Mix improvement in Latin
                                                                                        America
         (SEKm)                                 Q1 2012          Q1 2011
         Sales                                    25,875           23,436             • Higher input costs
         EBIT*                                        943              696
         Margin*                                      3.6               3.0

        * Excluding items affecting comparability. Non-recurring items are included
          in all figures.
                                                                                                                        2
Bridge of the quarterly sales
  and EBIT


                                       Organic                                        Acquisitions/                                      Sale of
SEKm                           Q1 2011 Growth                                Currency Divestments                                       Assets*) Q1 2012

Net sales                            23,436                     835                         245                            1,359                   25,875

Net sales %                                                      3.5                          1.1                              5.8                   10.4

EBIT                                       696                  167                            80                             100           -100     943

EBIT %                                       3.0               20.0                        32.7                                7.4                    3.6
Dilution/
Accretion %                                                      0.6                          0.3                              0.2          -0.5
* Includes sale of a non-core business within professional food-service equipment of SEK 50m and a few smaller items during Q1, 2011.



                                                                                                                                                            3
Q1 Cash flow


    Cash flow


    SEKm                                         Q1 2012 Q1 2011

    Operations                                      1,454   1,178

    Change in operating assets and liabilities       -492   -1,288

    Capital expenditure                            -1,005    -866

    Cash flow from operations                         -43    -976
Consumer Durables
Major Appliances Europe,
Middle East & Africa
EBIT (SEKm)                                                      Margin (%)
600                                                                      6
                                                                                     • Increased volumes due to
           4.1                                                                         market share gain
400                                                               3.4         4
                                                                                       – Improved position in premium
200                                                                           2          segments
                                                                                       – AEG launch successful
  0                                                                           0
                                                                                     • EBIT amounted to SEK 281m
-200                                                                          -2       – Lower prices than Q1, 2011
                                                                                       – Negative country mix partially
-400                                                                          -4
                              2011                               2012                    offset by positive product mix
        (SEKm)                                 Q1 2012          Q1 2011                – Higher sales volumes
        Sales                                     8,265             7,656
        EBIT*                                        281                311
        Margin*                                      3.4                4.1

       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                          5
New launch of Electrolux-branded
products in Europe
Negative growth in Europe
 Further weakening in Southern Europe
 and slow-down in Eastern Europe

                                           Quarterly comparison y-o-y
 10%



   5%



   0%



  -5%



-10%



-15%



-20%             2006               2007             2008             2009              2010            2011           2012
           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
W. Eur.    +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0  0  0  -2 -2 -3 -3 -2

E. Eur.    +1    +9     +6   +7 +14 +5   +5 +10 +6   +5   +4 -15 -31 -30 -26 -17   -7   +1   +5 +13 +13 +12 +7   +9   +5
 Market Development %                                                                                                         7
Consumer Durables
Major Appliances
North America
EBIT (SEKm)                                                      Margin (%)
200
                                                                2.2
                                                                       3
                                                                                     • Higher sales despite lower
150                                                                                    volumes
                                                                                       – Price increases
100                                                                           1,5
                                                                                     • EBIT increased to SEK 159m
 50
                                                                                       – Higher prices
  0                                                                           0
                                                                                       – Improved efficiency
 -50                                                                                   – Higher costs for raw materials
          -1.1                                                                           and sourced products
-100                                                                          -1,5
                             2011                             2012

        (SEKm)                                 Q1 2012          Q1 2011
        Sales                                     7,107               6,728
        EBIT*                                        159                -71
        Margin*                                      2.2               -1.1

       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                          8
Market for core appliances declined in
North America

                            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 Q4 Q1
         2006        2007         2008       2009        2010         2011    2012
                                                                                     9
Consumer Durables
Major Appliances
Latin America
EBIT (SEKm)                                                     Margin (%)
400
                                                                  5.4
                                                                         6
                                                                                    • Incentives in Brazil contributed
                                                                                      to strong market growth
300
                                                                                      – Strong organic growth in other
                                                                              4
         3.5                                                                            Latin American markets
200                                                                                   – Acquisition of CTI
                                                                              2     • EBIT improved to SEK 278m
100
                                                                                      – Contribution from CTI
                                                                                      – Improved mix
 0                                                                            0
                             2011                               2012                  – Higher volumes
       (SEKm)                                 Q1 2012          Q1 2011
                                                                                      – Improved efficiency
       Sales                                     5,149             3,998
       EBIT*                                        278              139              – Higher costs for raw materials
       Margin*                                      5.4               3.5

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                         10
Consumer Durables
Major Appliances
Asia/Pacific
EBIT (SEKm)                                                     Margin (%)
240                                                                     12
                                                                                    • Lower sales and EBIT in
        10.0
                                                                                      Australia
                                                                 8.4
                                                                                      – Lower volumes
160                                                                           8
                                                                                      – Lower prices
                                                                                    • Southeast Asia and China
80                                                                            4
                                                                                      – Continued good profitability in
                                                                                        Southeast Asia
                                                                                      – China profitable
 0                                                                            0
                            2011                               2012
                                                                                    • Increased R&D costs for
       (SEKm)                                 Q1 2012          Q1 2011                product launches
       Sales                                     1,841             1,746
       EBIT*                                        155                174
       Margin*                                      8.4                10.0

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                          11
Consumer Durables
Small Appliances
EBIT (SEKm)                                                     Margin (%)
270                                                                     10
                                                                                    • Higher sales
                                                                            8         – Improved product mix
180      5.9
                                                                                      – Higher volumes
                                                                            6
                                                                4.4
                                                                                    • Lower operating income
                                                                            4         – Higher costs for sourced
90
                                                                                        products
                                                                            2
                                                                                      – Lower prices
 0                                                                          0         – Investment costs in new
                            2011                               2012                     products
       (SEKm)                                 Q1 2012          Q1 2011
                                                                                      – Higher sales and positive mix
       Sales                                     2,105             1,930
                                                                                        had a positive impact
       EBIT*                                         93               114
       Margin*                                      4.4               5.9

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                        12
Professional Products
Food-service &
Laundry products
EBIT (SEKm)                                                     Margin (%)
300                                                                     20          Food-service products
                                                                             16
                                                                                    • Lower sales
200
        12.8                                                                        • Underlying EBIT in line with Q1,
                                                                             12       2011
                                                                 9.4
                                                                                      – Price increases
                                                                             8
100                                                                                   – Negative mix due to lower share
                                                                                        of own-manufactured products
                                                                             4
                                                                                    Laundry products
  0
                            2011                               2012
                                                                             0      • Lower sales
       (SEKm)                                 Q1 2012          Q1 2011
                                                                                    • Improved operating income
       Sales                                     1,408             1,378              – Price increases
       EBIT*                                        132                177
       Margin*                                      9.4             12.8
                                                                                      – Mix improvement
      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                      13
Q2 and FY 2012 y-o-y
In accordance with forward-looking statements
in the CEO letter and press release


                           Q2        2012FY      Comments
                         Slightly     Slightly   Easier comparables than in Q1
   Volumes
                         positive     positive   European market continually weak

                                                 Positive price effect in NA
   Price/Mix             Positive    Positive
                                                 Improvements in Europe sequentially

                         Negative    Negative    Steel: Flat
   Raw-material costs
                        ~SEK 100m   SEK 0-500m   Plastics: Some headwind

                                                 An intensive launch period in 2012
   R&D and marketing      Higher      Higher
                                                 Electrolux launch in Europe starts in Q2

                                                 An uncertain Egyptian market
   Acquired units       SEK 100m    ~SEK 400m
                                                 compensated by a strong CTI

                                                 Incl. global operations, overhead
   Cost savings         ~SEK 250m    ~SEK 1bn
                                                 reduction and improved manufacturing

   Transportation and
                          Higher      Higher     Cost increases for sourced products
   sourced products

                                                                                            14
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.
                                                                                    16

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Electrolux Interim Report Q1 2012 Presentation

  • 1. Q1 Results, April 25, 2012 Keith McLoughlin, President and CEO Tomas Eliasson, CFO Peter Nyquist, SVP IR
  • 2. Q1 Highlights EBIT (SEKm) Margin (%) 1 400 5 • Strong growth of 10.4% 1 200 4 – Organic growth of 3.5% 3.6 1 000 3.0 – Acquisitions growth of 5.8% 3 800 • Operating income increased to 600 2 SEK 943m 400 • Price increases 1 200 • Market-share gain in Europe 0 2011 2012 0 • Mix improvement in Latin America (SEKm) Q1 2012 Q1 2011 Sales 25,875 23,436 • Higher input costs EBIT* 943 696 Margin* 3.6 3.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 2
  • 3. Bridge of the quarterly sales and EBIT Organic Acquisitions/ Sale of SEKm Q1 2011 Growth Currency Divestments Assets*) Q1 2012 Net sales 23,436 835 245 1,359 25,875 Net sales % 3.5 1.1 5.8 10.4 EBIT 696 167 80 100 -100 943 EBIT % 3.0 20.0 32.7 7.4 3.6 Dilution/ Accretion % 0.6 0.3 0.2 -0.5 * Includes sale of a non-core business within professional food-service equipment of SEK 50m and a few smaller items during Q1, 2011. 3
  • 4. Q1 Cash flow Cash flow SEKm Q1 2012 Q1 2011 Operations 1,454 1,178 Change in operating assets and liabilities -492 -1,288 Capital expenditure -1,005 -866 Cash flow from operations -43 -976
  • 5. Consumer Durables Major Appliances Europe, Middle East & Africa EBIT (SEKm) Margin (%) 600 6 • Increased volumes due to 4.1 market share gain 400 3.4 4 – Improved position in premium 200 2 segments – AEG launch successful 0 0 • EBIT amounted to SEK 281m -200 -2 – Lower prices than Q1, 2011 – Negative country mix partially -400 -4 2011 2012 offset by positive product mix (SEKm) Q1 2012 Q1 2011 – Higher sales volumes Sales 8,265 7,656 EBIT* 281 311 Margin* 3.4 4.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 5
  • 6. New launch of Electrolux-branded products in Europe
  • 7. Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 10% 5% 0% -5% -10% -15% -20% 2006 2007 2008 2009 2010 2011 2012 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 W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3 -3 -2 E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 +9 +5 Market Development % 7
  • 8. Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%) 200 2.2 3 • Higher sales despite lower 150 volumes – Price increases 100 1,5 • EBIT increased to SEK 159m 50 – Higher prices 0 0 – Improved efficiency -50 – Higher costs for raw materials -1.1 and sourced products -100 -1,5 2011 2012 (SEKm) Q1 2012 Q1 2011 Sales 7,107 6,728 EBIT* 159 -71 Margin* 2.2 -1.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8
  • 9. Market for core appliances declined in North America 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 Q4 Q1 2006 2007 2008 2009 2010 2011 2012 9
  • 10. Consumer Durables Major Appliances Latin America EBIT (SEKm) Margin (%) 400 5.4 6 • Incentives in Brazil contributed to strong market growth 300 – Strong organic growth in other 4 3.5 Latin American markets 200 – Acquisition of CTI 2 • EBIT improved to SEK 278m 100 – Contribution from CTI – Improved mix 0 0 2011 2012 – Higher volumes (SEKm) Q1 2012 Q1 2011 – Improved efficiency Sales 5,149 3,998 EBIT* 278 139 – Higher costs for raw materials Margin* 5.4 3.5 * Excluding items affecting comparability. Non-recurring items are included in all figures. 10
  • 11. Consumer Durables Major Appliances Asia/Pacific EBIT (SEKm) Margin (%) 240 12 • Lower sales and EBIT in 10.0 Australia 8.4 – Lower volumes 160 8 – Lower prices • Southeast Asia and China 80 4 – Continued good profitability in Southeast Asia – China profitable 0 0 2011 2012 • Increased R&D costs for (SEKm) Q1 2012 Q1 2011 product launches Sales 1,841 1,746 EBIT* 155 174 Margin* 8.4 10.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 11
  • 12. Consumer Durables Small Appliances EBIT (SEKm) Margin (%) 270 10 • Higher sales 8 – Improved product mix 180 5.9 – Higher volumes 6 4.4 • Lower operating income 4 – Higher costs for sourced 90 products 2 – Lower prices 0 0 – Investment costs in new 2011 2012 products (SEKm) Q1 2012 Q1 2011 – Higher sales and positive mix Sales 2,105 1,930 had a positive impact EBIT* 93 114 Margin* 4.4 5.9 * Excluding items affecting comparability. Non-recurring items are included in all figures. 12
  • 13. Professional Products Food-service & Laundry products EBIT (SEKm) Margin (%) 300 20 Food-service products 16 • Lower sales 200 12.8 • Underlying EBIT in line with Q1, 12 2011 9.4 – Price increases 8 100 – Negative mix due to lower share of own-manufactured products 4 Laundry products 0 2011 2012 0 • Lower sales (SEKm) Q1 2012 Q1 2011 • Improved operating income Sales 1,408 1,378 – Price increases EBIT* 132 177 Margin* 9.4 12.8 – Mix improvement * Excluding items affecting comparability. Non-recurring items are included in all figures. 13
  • 14. Q2 and FY 2012 y-o-y In accordance with forward-looking statements in the CEO letter and press release Q2 2012FY Comments Slightly Slightly Easier comparables than in Q1 Volumes positive positive European market continually weak Positive price effect in NA Price/Mix Positive Positive Improvements in Europe sequentially Negative Negative Steel: Flat Raw-material costs ~SEK 100m SEK 0-500m Plastics: Some headwind An intensive launch period in 2012 R&D and marketing Higher Higher Electrolux launch in Europe starts in Q2 An uncertain Egyptian market Acquired units SEK 100m ~SEK 400m compensated by a strong CTI Incl. global operations, overhead Cost savings ~SEK 250m ~SEK 1bn reduction and improved manufacturing Transportation and Higher Higher Cost increases for sourced products sourced products 14
  • 15. 15 15
  • 16. 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. 16