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Year Results, 2009
February 3, 2010
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
Strong results for 2009 confirm
the Group’s strategy

EBIT, %

                                                                    Target of 6% over
      6
                                                                    a business cycle
                                                                       6%
                                                             4.9%
      4                              4.6%
                4.4%


      2

                                                      1.5%

      0
                2006                2007              2008   2009
      EBIT excluding items affecting comparability.

                                                                                  2
Through continuing launching
products we have improved our mix


          Mix improvement (sales)
     2%




     1%




     0%
              2006         2007     2008   2009




                                                  3
Price development

                                       Drivers of price stability
      Price index
100                                     Competitors’ balance sheets
                                        Being aggressive on price very costly
                                        Record-low inventory levels
95                                      Industry shift towards LCC capacity
                                        almost finished – price cuts based
                                        on unique cost position will become
                                        less of an issue
90
       2004 2005 2006 2007 2008 2009    Strong internal focus on price
                                YTD




                                                                         4
Reducing cost – profitability
with capacity utilization of 60%

       90%
       80%
       70%
       60%
       50%
       40%        85%
       30%                              60%
       20%
       10%
        0%
                 Normal               Current

             Only 20% of total cost is fixed

                                                5
The raw-material markets
are uncertain

                            Plastic prices development Electrolux
                      100
       Other 19%


       Cu&Al 11%

                        0
       Plastics 23%          Q1   Q2   Q3   Q4   Q1    Q2    Q3   Q4
                             2008                     2009
                            Steel prices development Electrolux
                      100



        Steel 47%

                       0
                             Q1 Q2     Q3   Q4 Q1       Q2 Q3     Q4
                             2008                     2009
                                                                       6
Focus on cash flow; structural
improvements – lower inventories

Cash flow from operations and investments
4000
                                                            Improved earnings
3500
                                                            Significant improvement in
3000
                                                            working capital strongly
2500
                                                            contributed to high cash flow
2000
                                                                 Structural reduction of inventory
1500                                                             level
1000                                                             Reduction of past due
  500                                                            receivables
    0                                                            Improved accounts payable
 -500                                                       Lower capital expenditure
-1000
        Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4*
                                                            Proposal to pay dividend of SEK
             2007             2008             2009         1.1 billion
*) Pension contributions are excluded in Q4, 2009 figures        Consistent with dividend policy
                                                                                              7
Further comments on the
financial and balance sheet
Contributions to pension
  funds                           Pension
                                                2009     2008
                                  funds
  Close to SEK 4 billion
  injections into pension funds
                                  Assets        19,008   13,989
  Reduced pension net debt
  volatility
                                  Liabilities   22,399   23,185
  Positive EBIT impact
                                  Pension
25% tax rate in 2009                            -3,391   -9,196
                                  net debt
  Reversal of tax provisions




                                                                  8
Q4 Highlights

EBIT (mSEK)                              Margin (%)
                                                         Net sales declined by 1% in comparable
2500                                                10
                                                         currencies
                 7,3                          7,2
2000                                                8         Continued weak market demand
                                                              Maintained prices
1500                                                6
                                                         EBIT amounted to SEK 2,023m,
1000                                                4    excluding items affecting comparability

 500                                                2
                                                         Improved results for all business areas
                                                         despite continued weak markets
   0                                                0         Cost savings
 -500                                               -2        Positive price and mix development
                               -1,2
                                                              Lower raw-material costs
          2007         2008            2009
-1000                                               -4
                                                         Continued strong cash flow
        (SEKm)            Q4 2009      Q4 2008                Continued structural improvement of
        Sales                 28,215    28,663                working capital
        EBIT                   2,023      -389
        Margin                 7.2%      -1.4%

                                                                                             9
Consumer Durables
 Europe
EBIT (mSEK)                             Margin (%)
1200                                               12   Weak market demand
                 6,1                         7,3           Stabilization in some
 800                                               8
                                                           markets
 400                                               4    Cost reductions

   0                                               0
                                                        Positive price and mix
                                                        development
-400                                               -4
                                                        Lower raw materials costs
                              -5,3
-800
          2007         2008          2009
                                                   -8
                                                        Improved results for floor-
       (SEKm)            Q4 2009      Q4 2008           care products
       Sales              11,285        11,972
       EBIT                    829          -638           Improved product mix
       Margin                 7.3%      -5,3%

                                                                                      10
The European market continued
 to decline in 2009…

                     Quarterly comparison, year over year

    10%

      5%

      0%

     -5%

   -10%

   -15%
                     2006                 2007                   2008                   2009

               Q1   Q2   Q3   Q4   Q1    Q2   Q3    Q4    Q1    Q2    Q3    Q4    Q1    Q2    Q3    Q4

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

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

                                                                                                      11
Consumer Durables
  North America
EBIT (mSEK)                                  Margin (%)
                                                        10
                                                             Cost reductions
                     8,6
                                                                Improved internal efficiency
600
                                                  5,7
                                                                Higher productivity despite
                                                        5
350                                                             lower capacity utilization

100
                                                             Positive price and mix
                                                        0    development
                                  -0,5
-150
                                                             Lower raw material costs
              2007         2008           2009
-400                                                    -5   Improved operating income
       (SEKm)                 Q4 2009     Q4 2008            for floor-care products
       Sales                      7,865      8,928
       EBIT                        450           -43
       Margin                     5.7%       -0.5%

                                                                                        12
In North America, we saw the first
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
             2006                 2007                2008                2009




                                                                                   13
Consumer Durables
 Latin America
EBIT (mSEK)                                 Margin (%)
 400                                             8,4   10,0
                                                              Continued strong demand in
                                                              Brazil
                     7,3           7,4
 300                                                   7,5        Tax incentives
                                                                  Interest rates
 200                                                   5,0
                                                                  Consumer access to credit
 100                                                   2,5    Record high earnings
                                                              Positive price/mix
   0                                                   0,0
                                                              Lower raw material costs
              2007         2008          2009
-100                                                   -2,5

       (SEKm)               Q4 2009       Q4 2008
       Sales                  4,401         3,305
       EBIT                       368           244
       Margin                 8.4%          7.4%

                                                                                              14
Consumer Durables
 Asia Pacific
EBIT (mSEK)                            Margin (%)
300                                       9,3   10,0
                                                       Improved operating income
250              7,5
                                                9,0    in Australia
                                                8,0
                                                7,0       Increased sales of air-
200
                                                6,0       conditioners
150                                             5,0
                                                4,0
                                                          Positive price development
100
                                                3,0       Raw materials
                                                2,0
 50                            0,7
                                                1,0    Southeast Asia
  0                                             0,0
                                                          Market share gain
          2007          2008          2009                Profitable growth

      (SEKm)           Q4 2009       Q4 2008           China
      Sales              2,741         2,409              Cost measures
      EBIT                254            16
                                                          Repositioning of Electrolux
      Margin             9.3%          0.7%
                                                          brand
                                                                                        15
Consumer Durables
 Professional Products
EBIT (mSEK)                                   Margin (%)

250              11,1
                                                11,7
                                                       12,0
                                                              Food-service
                                9,0                    10,0
                                                                 Weak market demand
200

                                                       8,0       Price pressure
150
                                                       6,0       Lower costs for raw
100
                                                       4,0
                                                                 materials
 50
                                                       2,0
                                                                 Cost reductions
  0                                                    0,0    Laundry products
                                                                 Market share gain
          2007          2008           2009
                                                                 Cost reductions
      (SEKm)              Q4 2009       Q4 2008
      Sales                    1,923      2,021
      EBIT                       225           181
      Margin                   11.7%          9.0%

                                                                                       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.

                                                                                    18

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Electrolux Interim Report Q4 2009 Presentation

  • 1. Year Results, 2009 February 3, 2010 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Strong results for 2009 confirm the Group’s strategy EBIT, % Target of 6% over 6 a business cycle 6% 4.9% 4 4.6% 4.4% 2 1.5% 0 2006 2007 2008 2009 EBIT excluding items affecting comparability. 2
  • 3. Through continuing launching products we have improved our mix Mix improvement (sales) 2% 1% 0% 2006 2007 2008 2009 3
  • 4. Price development Drivers of price stability Price index 100 Competitors’ balance sheets Being aggressive on price very costly Record-low inventory levels 95 Industry shift towards LCC capacity almost finished – price cuts based on unique cost position will become less of an issue 90 2004 2005 2006 2007 2008 2009 Strong internal focus on price YTD 4
  • 5. Reducing cost – profitability with capacity utilization of 60% 90% 80% 70% 60% 50% 40% 85% 30% 60% 20% 10% 0% Normal Current Only 20% of total cost is fixed 5
  • 6. The raw-material markets are uncertain Plastic prices development Electrolux 100 Other 19% Cu&Al 11% 0 Plastics 23% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 Steel prices development Electrolux 100 Steel 47% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 6
  • 7. Focus on cash flow; structural improvements – lower inventories Cash flow from operations and investments 4000 Improved earnings 3500 Significant improvement in 3000 working capital strongly 2500 contributed to high cash flow 2000 Structural reduction of inventory 1500 level 1000 Reduction of past due 500 receivables 0 Improved accounts payable -500 Lower capital expenditure -1000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4* Proposal to pay dividend of SEK 2007 2008 2009 1.1 billion *) Pension contributions are excluded in Q4, 2009 figures Consistent with dividend policy 7
  • 8. Further comments on the financial and balance sheet Contributions to pension funds Pension 2009 2008 funds Close to SEK 4 billion injections into pension funds Assets 19,008 13,989 Reduced pension net debt volatility Liabilities 22,399 23,185 Positive EBIT impact Pension 25% tax rate in 2009 -3,391 -9,196 net debt Reversal of tax provisions 8
  • 9. Q4 Highlights EBIT (mSEK) Margin (%) Net sales declined by 1% in comparable 2500 10 currencies 7,3 7,2 2000 8 Continued weak market demand Maintained prices 1500 6 EBIT amounted to SEK 2,023m, 1000 4 excluding items affecting comparability 500 2 Improved results for all business areas despite continued weak markets 0 0 Cost savings -500 -2 Positive price and mix development -1,2 Lower raw-material costs 2007 2008 2009 -1000 -4 Continued strong cash flow (SEKm) Q4 2009 Q4 2008 Continued structural improvement of Sales 28,215 28,663 working capital EBIT 2,023 -389 Margin 7.2% -1.4% 9
  • 10. Consumer Durables Europe EBIT (mSEK) Margin (%) 1200 12 Weak market demand 6,1 7,3 Stabilization in some 800 8 markets 400 4 Cost reductions 0 0 Positive price and mix development -400 -4 Lower raw materials costs -5,3 -800 2007 2008 2009 -8 Improved results for floor- (SEKm) Q4 2009 Q4 2008 care products Sales 11,285 11,972 EBIT 829 -638 Improved product mix Margin 7.3% -5,3% 10
  • 11. The European market continued to decline in 2009… Quarterly comparison, year over year 10% 5% 0% -5% -10% -15% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26% -17% 11
  • 12. Consumer Durables North America EBIT (mSEK) Margin (%) 10 Cost reductions 8,6 Improved internal efficiency 600 5,7 Higher productivity despite 5 350 lower capacity utilization 100 Positive price and mix 0 development -0,5 -150 Lower raw material costs 2007 2008 2009 -400 -5 Improved operating income (SEKm) Q4 2009 Q4 2008 for floor-care products Sales 7,865 8,928 EBIT 450 -43 Margin 5.7% -0.5% 12
  • 13. In North America, we saw the first 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 2006 2007 2008 2009 13
  • 14. Consumer Durables Latin America EBIT (mSEK) Margin (%) 400 8,4 10,0 Continued strong demand in Brazil 7,3 7,4 300 7,5 Tax incentives Interest rates 200 5,0 Consumer access to credit 100 2,5 Record high earnings Positive price/mix 0 0,0 Lower raw material costs 2007 2008 2009 -100 -2,5 (SEKm) Q4 2009 Q4 2008 Sales 4,401 3,305 EBIT 368 244 Margin 8.4% 7.4% 14
  • 15. Consumer Durables Asia Pacific EBIT (mSEK) Margin (%) 300 9,3 10,0 Improved operating income 250 7,5 9,0 in Australia 8,0 7,0 Increased sales of air- 200 6,0 conditioners 150 5,0 4,0 Positive price development 100 3,0 Raw materials 2,0 50 0,7 1,0 Southeast Asia 0 0,0 Market share gain 2007 2008 2009 Profitable growth (SEKm) Q4 2009 Q4 2008 China Sales 2,741 2,409 Cost measures EBIT 254 16 Repositioning of Electrolux Margin 9.3% 0.7% brand 15
  • 16. Consumer Durables Professional Products EBIT (mSEK) Margin (%) 250 11,1 11,7 12,0 Food-service 9,0 10,0 Weak market demand 200 8,0 Price pressure 150 6,0 Lower costs for raw 100 4,0 materials 50 2,0 Cost reductions 0 0,0 Laundry products Market share gain 2007 2008 2009 Cost reductions (SEKm) Q4 2009 Q4 2008 Sales 1,923 2,021 EBIT 225 181 Margin 11.7% 9.0% 16
  • 17. 17
  • 18. 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. 18