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Q3 Results,
October 22, 2012
Keith McLoughlin, President and CEO
Tomas Eliasson, CFO
Peter Nyquist, SVP IR
Q3 Highlights

EBIT (SEKm)                                                       Margin (%)
1 800
                                                                       5.4
                                                                           6          • Strong organic growth by 4.6%
1 600
                                                                                5       – Strong volume growth in Latin
1 400                          4.3                                                        America
1 200                                                                           4       – Volume and price increases in US
1 000
                                                                                3     • EBIT increased to SEK 1,461m
 800
                                                                                        – 5 of 6 business areas at or above
 600                                                                            2         our EBIT-margin target
 400
                                                                                1       – Improved mix/price in the US
 200
                                                                                        – Positive price, mix and volume in
   0                                                                            0         Latin America
                         2011                               2012

         (SEKm)                                 Q3 2012          Q3 2011
                                                                                        – Negative country mix and lower
                                                                                          prices in Europe
         Sales                                    27,171           25,650
         EBIT*                                     1,461             1,098            • Activities initiated to improve cost
         Margin*                                      5.4               4.3             position in Europe
        * Excluding items affecting comparability. Non-recurring items are included
          in all figures.
                                                                                                                               2
Bridge of the quarterly sales
and EBIT


                                Net Organic                   Acquisitions/
SEKm          Q3 2011                       Currency                        Q3 2012
                                Development                   Divestments


Net sales           25,650             1,180           -967          1,308        27,171


Net sales %                              4.6           -3,8             5.1            5.9


EBIT                    1,098           373             -80             70            1,461


EBIT %                    4.3           32.0            8.3             5.3             5.4

Dilution/
                                         1.2           -0.1             0.0
Accretion %

                                                                                              3
EBIT-margin bridge Q3 year-over-
year


       EBIT% Q3 2011                               4.3
       Price/Mix                                   1.2
       Volume                                      0.2
       Raw materials                               -0.2
       Net: Investments, inflation, efficiencies   0.0
       Net organic development                     1.2
       Currency                                    -0.1
       Acquisitions                                0.0
       EBIT% Q3 2012                               5.4


                                                          4
Q3 Cash flow


Cash flow

                                   Q3       Q3 9 months 9 months
SEKm                             2012     2011     2012     2011

Operations                       2,135    1,753    5,338    4,185
Change in operating assets and
liabilities                      -1,113     674    1,257      653

Capital expenditure              -1,252   -1,121   -3,262   -3,070

Cash flow from operations         -230    1,306    3,333    1,768
Consumer Durables
Major Appliances Europe,
Middle East & Africa
EBIT (SEKm)                                                       Margin (%)
600                                                                       6
                             5.0                                                     • Lower sales volume in key
                                                                                       markets
400                                                                 3.5       4
                                                                                     • EBIT amounted to SEK 303m
200                                                                           2
                                                                                       – Lower sales prices

  0                                                                           0
                                                                                       – Negative country mix
                                                                                       – Cost savings
-200                                                                          -2
                                                                                     • Slightly negative contribution
-400                                                                          -4
                                                                                       from Olympic
                      2011                                 2012
                                                                                     • Actions are taken to further
        (SEKm)                                 Q3 2012          Q3 2011
                                                                                       improve our manufacturing
        Sales                                     8,581             8,964
        EBIT*                                        303              444
                                                                                       footprint.
        Margin*                                      3.5               5.0

       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                        6
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
W. Eur.    Q1 Q2 Q3 +5
          +4 +1 +1  Q4          Q1 +1 -1 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q40 Q1-2 Q2-2Q3-3 Q4 Q1-2 Q2-4 Q3-2
                                +1 Q2 Q3 Q4 -4 -4 -5 -8 -9  -9 -4 -2 +1 0  0                     -3

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    +3    +2

  Market Development %                                                                                                                                   7
Consumer Durables
Major Appliances
North America
EBIT (SEKm)                                                      Margin (%)
750                                                                    7,5
                                                                 6.7                 • Higher sales
600                                                                          6         – Price/Mix improvement
450                                                                          4,5       – Healthy volume growth

300                                                                          3
                                                                                     • EBIT increased to SEK 523m
                            1.5                                                        – EBIT margin of 6.7%
150                                                                          1,5
                                                                                       – Price/Mix improvement
  0                                                                          0
                                                                                       – Stronger volumes
-150                                                                         -1,5      – Improved operational efficiency
                     2011                              2012

        (SEKm)                                 Q3 2012          Q3 2011
        Sales                                     7,771             7,122
        EBIT*                                        523              107
        Margin*                                      6.7               1.5

       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                           8
Market demand for core appliances in North
America in line with previous year


                             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 Q2 Q3
          2006        2007        2008        2009        2010        2011       2012
                                                                                          9
Consumer Durables
Major Appliances
Latin America
EBIT (SEKm)                                                     Margin (%)
400                                                                      8
                                                                                    • Sales growth of 30%
                                                                    6.4

                                                                                      – Tax incentives in Brazil
300                        5.4                                                6
                                                                                      – Mix improvement
                                                                                      – Acquisition of CTI
200                                                                           4
                                                                                    • EBIT improved to SEK 339m
100                                                                           2       – EBIT margin of 6.4%
                                                                                      – Contribution from CTI
 0                                                                            0       – Higher volumes
                    2011                                2012

       (SEKm)                                 Q3 2012          Q3 2011
                                                                                      – Improved price/mix
       Sales                                     5,301             4,101
       EBIT*                                        339              222
       Margin*                                      6.4               5.4

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                   10
Consumer Durables
Major Appliances
Asia/Pacific
EBIT (SEKm)                                                     Margin (%)
240                                                                     12
                                                                  9.9
                                                                                    • EBIT margin of 9.9%
                          8.7                                                       • Improved EBIT in Australia
160                                                                         8         – Positive currency
                                                                                      – Cost savings
                                                                                      – Lower price/mix
80                                                                          4
                                                                                    • Southeast Asia and China
                                                                                      – Continued good profitability in
 0                                                                          0           Southeast Asia
                    2011                              2012

       (SEKm)                                 Q3 2012          Q3 2011
       Sales                                     2,107             1,981
       EBIT*                                        208              172
       Margin*                                      9.9               8.7

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                          11
Consumer Durables
Small Appliances
EBIT (SEKm)                                                     Margin (%)
270                                                                     10
                                                                                    • Higher sales
                           8.2

                                                                            8
                                                                                      – Gained market share in Europe and
                                                                                        North America
180                                                                6.0
                                                                            6       • Lower operating income
                                                                                      – Lower prices
                                                                            4
90                                                                                    – Increased cost for sourced products
                                                                            2         – Deterioration in mix.

 0                                                                          0
                    2011                               2012

       (SEKm)                                 Q3 2012          Q3 2011
       Sales                                     2,112             2,056
       EBIT*                                        126              169
       Margin*                                      6.0               8.2

      * 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 and EBIT
                            14.0

200                                                               11.6
                                                                                      – Lower volumes
                                                                            12
                                                                                      – Negative mix
                                                                            8         – Launch costs for Grand Cuisine
100
                                                                                      – Price increases
                                                                            4
                                                                                    Laundry products
  0                                                                         0
                    2011                              2012                          • Lower sales and EBIT
       (SEKm)                                 Q3 2012          Q3 2011                – Lower volumes
       Sales                                     1,299             1,426
                                                                                      – Positive price/mix
       EBIT*                                        151              199
       Margin*                                     11.6             14.0

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                         13
Electrolux Grand Cuisine launch




                                  14
4th quarter y-o-y
In accordance with forward-looking statements in the CEO
letter, press release and previous official statements



                          Q4       Comments
                        Slightly   Growth in emerging markets and North
  Market volumes
                        Positive   America. Europe continues to be weak.

  Price/Mix             Positive   Positive price in NA and LA

                                   Steel: Positive
  Raw-material costs      Flat
                                   Plastics: Slightly negative

                                   Intensive launch period in 2012
  R&D and marketing      Higher
                                   Increased marketing spend in North America.

                                   Uncertain Egyptian market, compensated by
  Acquired units       SEK 100m
                                   a strong CTI performance

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

  Transportation and
                         Higher    Cost increases for sourced products
  sourced products

                                                                                 15
16
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.
                                                                                    17

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Electrolux Interim Report Q3 2012 Presentation

  • 1. Q3 Results, October 22, 2012 Keith McLoughlin, President and CEO Tomas Eliasson, CFO Peter Nyquist, SVP IR
  • 2. Q3 Highlights EBIT (SEKm) Margin (%) 1 800 5.4 6 • Strong organic growth by 4.6% 1 600 5 – Strong volume growth in Latin 1 400 4.3 America 1 200 4 – Volume and price increases in US 1 000 3 • EBIT increased to SEK 1,461m 800 – 5 of 6 business areas at or above 600 2 our EBIT-margin target 400 1 – Improved mix/price in the US 200 – Positive price, mix and volume in 0 0 Latin America 2011 2012 (SEKm) Q3 2012 Q3 2011 – Negative country mix and lower prices in Europe Sales 27,171 25,650 EBIT* 1,461 1,098 • Activities initiated to improve cost Margin* 5.4 4.3 position in Europe * Excluding items affecting comparability. Non-recurring items are included in all figures. 2
  • 3. Bridge of the quarterly sales and EBIT Net Organic Acquisitions/ SEKm Q3 2011 Currency Q3 2012 Development Divestments Net sales 25,650 1,180 -967 1,308 27,171 Net sales % 4.6 -3,8 5.1 5.9 EBIT 1,098 373 -80 70 1,461 EBIT % 4.3 32.0 8.3 5.3 5.4 Dilution/ 1.2 -0.1 0.0 Accretion % 3
  • 4. EBIT-margin bridge Q3 year-over- year EBIT% Q3 2011 4.3 Price/Mix 1.2 Volume 0.2 Raw materials -0.2 Net: Investments, inflation, efficiencies 0.0 Net organic development 1.2 Currency -0.1 Acquisitions 0.0 EBIT% Q3 2012 5.4 4
  • 5. Q3 Cash flow Cash flow Q3 Q3 9 months 9 months SEKm 2012 2011 2012 2011 Operations 2,135 1,753 5,338 4,185 Change in operating assets and liabilities -1,113 674 1,257 653 Capital expenditure -1,252 -1,121 -3,262 -3,070 Cash flow from operations -230 1,306 3,333 1,768
  • 6. Consumer Durables Major Appliances Europe, Middle East & Africa EBIT (SEKm) Margin (%) 600 6 5.0 • Lower sales volume in key markets 400 3.5 4 • EBIT amounted to SEK 303m 200 2 – Lower sales prices 0 0 – Negative country mix – Cost savings -200 -2 • Slightly negative contribution -400 -4 from Olympic 2011 2012 • Actions are taken to further (SEKm) Q3 2012 Q3 2011 improve our manufacturing Sales 8,581 8,964 EBIT* 303 444 footprint. Margin* 3.5 5.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 6
  • 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 W. Eur. Q1 Q2 Q3 +5 +4 +1 +1 Q4 Q1 +1 -1 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q40 Q1-2 Q2-2Q3-3 Q4 Q1-2 Q2-4 Q3-2 +1 Q2 Q3 Q4 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 -3 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 +3 +2 Market Development % 7
  • 8. Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%) 750 7,5 6.7 • Higher sales 600 6 – Price/Mix improvement 450 4,5 – Healthy volume growth 300 3 • EBIT increased to SEK 523m 1.5 – EBIT margin of 6.7% 150 1,5 – Price/Mix improvement 0 0 – Stronger volumes -150 -1,5 – Improved operational efficiency 2011 2012 (SEKm) Q3 2012 Q3 2011 Sales 7,771 7,122 EBIT* 523 107 Margin* 6.7 1.5 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8
  • 9. Market demand for core appliances in North America in line with previous year 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 Q2 Q3 2006 2007 2008 2009 2010 2011 2012 9
  • 10. Consumer Durables Major Appliances Latin America EBIT (SEKm) Margin (%) 400 8 • Sales growth of 30% 6.4 – Tax incentives in Brazil 300 5.4 6 – Mix improvement – Acquisition of CTI 200 4 • EBIT improved to SEK 339m 100 2 – EBIT margin of 6.4% – Contribution from CTI 0 0 – Higher volumes 2011 2012 (SEKm) Q3 2012 Q3 2011 – Improved price/mix Sales 5,301 4,101 EBIT* 339 222 Margin* 6.4 5.4 * 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 9.9 • EBIT margin of 9.9% 8.7 • Improved EBIT in Australia 160 8 – Positive currency – Cost savings – Lower price/mix 80 4 • Southeast Asia and China – Continued good profitability in 0 0 Southeast Asia 2011 2012 (SEKm) Q3 2012 Q3 2011 Sales 2,107 1,981 EBIT* 208 172 Margin* 9.9 8.7 * 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 8.2 8 – Gained market share in Europe and North America 180 6.0 6 • Lower operating income – Lower prices 4 90 – Increased cost for sourced products 2 – Deterioration in mix. 0 0 2011 2012 (SEKm) Q3 2012 Q3 2011 Sales 2,112 2,056 EBIT* 126 169 Margin* 6.0 8.2 * 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 and EBIT 14.0 200 11.6 – Lower volumes 12 – Negative mix 8 – Launch costs for Grand Cuisine 100 – Price increases 4 Laundry products 0 0 2011 2012 • Lower sales and EBIT (SEKm) Q3 2012 Q3 2011 – Lower volumes Sales 1,299 1,426 – Positive price/mix EBIT* 151 199 Margin* 11.6 14.0 * Excluding items affecting comparability. Non-recurring items are included in all figures. 13
  • 15. 4th quarter y-o-y In accordance with forward-looking statements in the CEO letter, press release and previous official statements Q4 Comments Slightly Growth in emerging markets and North Market volumes Positive America. Europe continues to be weak. Price/Mix Positive Positive price in NA and LA Steel: Positive Raw-material costs Flat Plastics: Slightly negative Intensive launch period in 2012 R&D and marketing Higher Increased marketing spend in North America. Uncertain Egyptian market, compensated by Acquired units SEK 100m a strong CTI performance Incl. global operations, overhead Cost savings ~SEK 250m reduction and improved manufacturing Transportation and Higher Cost increases for sourced products sourced products 15
  • 16. 16 16
  • 17. 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. 17