Electrolux Capital Markets Day. November 14, 2012, Stockholm, Sweden. Together with senior management, the President and CEO of Electrolux, Keith McLoughlin will present the Group’s strategy to create further sustainable economic value at today’s capital markets day.

2. Agenda Electrolux Capital Markets
Day, November 14, 2012
SESSION 1 Keith McLoughlin, President and CEO
09:00 – 10:30 Tomas Eliasson, CFO
10:30 – 10:45 Break
SESSION 2 Jan Brockmann, Chief Technology Officer
10:45 – 11:45 Alberto Zanata, Head of Professional Products
SESSION 3
11:45 – 12:15 Q&A
12:15 – 13:00 Buffet lunch
SESSION 4 The Innovation Triangle
13:00 – 16:30 MaryKay Kopf, Chief Marketing Officer
Jan Brockmann, Chief Technology Officer
Stefano Marzano, Chief Design Officer
Electrolux Grand Cuisine
Carina Malmgren Heander, SVP Electrolux Grand Cuisine and team
Product Launches in Europe
Jonas Samuelson, Head of Major Appliances Europe, Middle East and Africa and team
SESSION 5
16:30 – 17:00 Q&A and Wrap-up

3. Key takeaways
• In a difficult environment, we are delivering on all objectives that
were communicated at last year’s Capital Markets Day: top-line
growth, launches of new products, leverage from the Innovation
Triangle and operational excellence.
• In the afternoon workshops, you will get tangible evidence on how
Electrolux has changed over the last years: how the Innovation
Triangle operates, leverage from our Professional heritage through
the launch of Grand Cuisine and discover the new range of high-end
Electrolux products for the European market.
Walk the talk

4. Capital Markets Day
Stockholm, November 14, 2012
Keith McLoughlin, President and CEO
Tomas Eliasson, CFO

5. Electrolux Group
presentation
• Business update
• Strategic review
• How to maximize and sustain our cash flow generation
1 Growth
Organic
Acquisitions
2 Gross margin
Product innovation
Operational excellence
3 Asset velocity
Working capital improvement
Capex
4 Tax and financial net
• Summary 5

6. Business update
6

7. This is what we said in
the beginning of the year
• Less headwind from • Volatility / Uncertainty
commodities • Currency fluctuations
• Price increases • Weak core markets
• Product launches (mix)
• CTI + Olympic Group
Full Year
• Global Operations / Modularization
• Investing in profitable growth (CapEx)
• Investing in Marketing, Design and R&D
• Maintain Balance Sheet Strength
7

8. 2012 so far
(Jan-Sept)
Organic growth EBIT increased to Intensive launch Solid cash flow
above our target: SEK 3,554m period
4.6% • 5 of 6 sectors • Europe: high-
• Strong volume ≥6% margin in Q3 end appliances 3,333
growth in Latin • Europe: Lower under the SEKm
America and Asia prices and Electrolux brand
• Price increases negative country • Globally: launch
in North America mix of Electrolux
• Negative organic Grand Cuisine
growth in Europe in London
8

9. Our six business areas
Europe
North America
Asia/Pacific
Latin America
Professional Products
Small Appliances
9

10. Executing in a tough
environment
10

11. Weak demand in North America…
Full year expectation flat to down 1%
US quarterly volume growth y-o-y
15%
10%
5% -4% FY -2% YTD
2011 2012
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
11

12. …but earnings improvement
for Electrolux
• Price • Currency • Commodities
• Market share • Mix • Transportation
and sourced
products
0
12

13. Negative demand in Europe…
Full year expectation of flat to down 2%
Quarterly volume growth y-o-y
10%
5%
-2% YTD
2012
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 Q2 Q3
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 -4 -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 +3 +2
Market Development % 13

14. …and price/mix is
down for Electrolux
• Operational • Volume • Price/mix
Excellence • Commodities
• Market share
0
14

15. Latin America
Strong organic growth of 20.4% YTD
YTD
Mix Positive customer and product mix 5%
Strong volume growth mainly due to
Volume incentive program in Brazil 14%
Price Price increases in Brazil 2%
Strong development in Latin America with positive contribution from CTI acquisition
15

16. Business areas
Professional Asia/Pacific Small Appliances
Products • Continued strong • Weak start of the year
• Stable margin in a growth in China and
Southeast Asia • Seasonally stronger
tough market
in Q4
• Solid margins in
Australia, soft demand
16

17. Strong momentum
- YTD +10% Top line
- YTD +40% Bottom line

18. Bridge of sales and EBIT
YTD 2012
Nine Sale of Nine
Net organic Acquisitions/
SEKm months Currency assets months
development Divestments
2011 and other 2012
Net sales 73,229 3,355 190 4,035 80,809
Net sales % 4.6 0.3 5.5 10.4
EBIT 2,539 969 -80 266 -140 3,554
EBIT % 3.5 28.9 -42.1 6.6 4.4
Dilution/
1.1 -0.1 0.1 -0.2
Accretion %
18

19. EBIT bridge
2012 YTD
(SEKm)
5 000
4 500
4 000 4.6% 4.4%
3 500
3 000 3,500
3.5%
2 500
2 000 2,500
1 500
1 000
500
0
2011 Price/mix Volume Raw material Cost saving Organic Currency Acquisition Divestment 2012
YTD Efficiency development YTD
19

20. Cash flow YTD
9 months 9 months
SEKm 2011 2012
Operations 4,185 5,338
Change in operating assets
653 1,257
and liabilities
Capital expenditure -3,070 -3,262
Cash flow from operations 1,768 3,333
20

21. Will momentum continue
next year?

22. 2013 over 2012
In accordance with forward-looking statements around Q3
earnings release and previous official statements
2013 Comments
Growth in emerging markets and North America.
Market volumes Positive
Great uncertainty in Europe and Australia weak.
Price/Mix Positive Product launches in all business units.
Steel: Positive
Raw-material costs Tailwind
Plastics: Negative
Increased R&D spend Group-wide.
R&D and marketing Higher Electrolux launches continue in Europe.
Launches in China.
Global operations, manufacturing footprint
Cost savings SEK >1bn
and overhead reduction.
Transportation and
Higher Cost increases for logistics and transportation.
logistics
22

23. The core strategy
is the same…

24. A consumer marketing
driven company
Consumer
marketing
driven
Growth
company
Innovation
Operational
Excellence
People
Manufacturing
engineering
company
24

25. Four strategic pillars
Profitable Innovation Operational
growth – Product excellence
– Brand
– Design
People
25

26. Addressing drivers and trends in
our offering is imperative
DRIVERS
Growing
Neo-urbanization Changing lifestages Connectivity Sustainability
middle class
TRENDS
Eco for the Time, experience, Hyper-
The smart home
masses tradition are luxury ersonalization
Professional A new quality
Co-consumption
consumers standard
ELECTROLUX IMPLICATIONS
The modern consumer is tech-savy, empowered, socially conscious, and consequently demanding.
The companies that succeed in addressing the empowered lifestyle stand to set themselves apart from competition.
Capturing the prevailing trends in its product and service offerings will help make Electrolux a customer-centric company.
26

27. Electrolux competitive
advantages
Glocal presence Consumer insight Design Professional legacy
Scandinavian heritage Wide product range Sustainability leadership People & culture
27

28. Growth will come from value share in
core markets and expanding in emerging
markets, new channels and adjacencies
Emerging Markets New Products and
MARKETS/ CHANNELS
New
Channels Markets / Channels
Existing
Electrolux New / Adjacent
2011 Products
Categories
Enhance Products/ Ranges
Existing New
PRODUCTS 28

29. Will pursue the alignment of our brand
architecture, connecting business models
to brand, product and distribution
EU NA LA AP
NICHE
PREMIUM
(Australia)
MASS
(Brazil)
(Australia)
Tactical Brands
29

30. Will pursue our dual business
model while leveraging global scale
and operational synergies
Shared global strength Sharp customer focus Premium
Benefits of scale in:
• Manufacturing Focus on differentiated
• R&D branded product offer
• Purchasing
• Modularization Low cost,
• Common processes lean go-to-market
and shared services Market set price
Mass
30

31. Recognition of
sustainability leadership
Sustainability sector leader
in the world (2006–2012)
Component of the World’s Most
Ethical Companies (2011–2012)
31

32. Attracting, retaining and developing
the best people is fundamental
in realizing our strategic objectives
Values Passion for Innovation Customer Obsession Drive for Results
Foundation Respect & Diversity Ethics & Integrity Safety & Sustainability
32

33. Four strategic pillars
Profitable Innovation Operational
growth – Product excellence
– Brand
– Design
People
33

34. How will Electrolux create
sustainable economic value?

35. Value creation potential
EBIT Margin
>6%
ROIC GROWTH
Capital Turnover >20% 4%
4x
35

36. 1990-2011 Total shareholder
return: 15%
Cash flow productivity 13%
Top line 1%
TSR 15%
CAGR
Margin 0.5%
Multiple 0.5%
Source: BCG
36

37. A strong track record in
generating a solid cash flow
SEKm Operating cash flow (rolling 12 months)
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2008 2009 2010 2011 2012
37

38. Even in a tough environment we are
able to sustain a strong cash flow
Rolling 12 month cash flow statement
(SEKbn)
1 Growth; organic and acquisition
Sales 109
2 Gross margin: Product innovation
EBITDA 8.3
and operational excellence
Change in working capital 1.7
Other 0 3 Asset velocity: Further potential
to improve WC and capex
CASH FLOW FROM OPERATIONS (CFO) 10.0
Capex -4.7
4 Optimizing our tax position
Financial net and tax -2.2 and leveraging from being a
BBB+ company
CFO AND INVESTMENTS 3.1
38

39. 1
Growth strategy
Organic growth
- Emerging markets
- Core markets
- Product launches
Acquired growth

40. Electrolux strategic
growth initiatives
EMEA NA LA APAC Prof. SA
Geographic expansions
Segments/channels
Growth
Product expansion
M&A
40

41. Organic growth
Emerging markets
Core markets
41

42. Growth history
Net organic sales growth
(in comparable currencies)
5%
4% Target
0%
-5%
2006 2007 2008 2009 2010 2011
42

43. Emerging markets
43

44. Growth in emerging
markets
44

45. Profitable growth
Electrolux exposure to emerging markets
% of
Group sales Emerging markets
50
40
35%
30
20
15%
10
0
2006 2012 YTD
45

46. Electrolux growth
in Brazil
Electrolux Net sales in Brazil
(SEKm)
16 000
14,633
CAGR: 20%
2012 YTD
+22%
2,858
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
46

47. Electrolux growth in
Southeast Asia
Electrolux Net Sales Southeast Asia
(SEKm)
2,500
CAGR: 11%
2,000
2012 YTD
1,500
+21%
1,000
500
0
2007 2008 2009 2010 2011
47

48. Fully utilizing organic growth opportunity
– more than half of our sales could be in emerging
markets by 2017
Today Growth 2017
Mature
markets
Mature
markets 1-2% 50%
65%
Emerging
Emerging
markets
7-10% markets
~50%
35%
Note: Estimated figures
48

49. Core markets
49

50. US recovery?

51. Recovery in North America
k units
Market volumes in North America
60 000
Down 25%
55 000
from peak
50 000
45 000
40 000
35 000
30 000
25 000
1990 1995 2000 2005 2010
51

52. USA:
Financial obligations and
inventory of unsold homes
% Household financial obligations ratio months United States, Inventory of unsold homes
(Debt payments to disposable personal income)
18 14
Existing- home
17 12 sales, months
supply of homes
10 on market
16
8
15
6
New home
14 sales, ratio of
4
houses for sale
to houses sold
13 2
90 92 94 96 98 00 02 04 06 08 10 12 02 03 04 05 06 07 08 09 10 11 12
Source: Reuters EcoWin
52

53. USA:
Low interest rates
% US mortgage rates at record lows
8
Home mortgage
7 30yr Jumbo national
average
6
5
4 Conventional 30yr
mortgage rate
3
2004 2005 2006 2007 2008 2009 2010 2011
Source:FRB, Haver Analytics, Blomberg Finance LP, DB Global Markets Research
53

54. USA:
Homebuilder sentiment
Share of
Index Homebuilder sentiment index suggests that housing GDP, %
could add 1.5% to GDP over the next 12 months
84 7
Residential
investment as a 6
65 share of GDP (rs)
NAHB: 5
Homebuilder
46 sentiment index
(12 m lead, Is) 4
27
3
8 2
02 03 04 05 06 07 08 09 10 11 12 13
54

55. USA:
Unemployment
% Total unemployment
10
9
8
7
6
5
4
3
90 92 94 96 98 00 02 04 06 08 10 12
Source: Reuters EcoWin
55

56. Recovery in Europe?
k units Market volumes in Western Europe
90 000
85 000 Down 16%
from peak
80 000
75 000
70 000
65 000
60 000
55 000
50 000
1990 1995 2000 2005 2010
56

57. Germany:
Consumer confidence
Index Germany, consumer surveys, ICON consumer
confidence index, SA, Index 90
110
100
90
80
70
96 98 00 02 04 06 08 10 12
57

58. Euro area:
No growth in disposable
income
%, yoy Euro area real household income and spending
3
2 Real disposable
income
1
0
-1 Real consumption
spending
-2
2006 2007 2008 2009 2010 2011 2012
58

59. Launching
new products
59

60. Electrolux
Inspiration Range

61. Electrolux
Inspiration Range
61

62. Zanussi Quadro

63. AEG
Neue Kollektion

64. Frigidaire

65. UltraPower
65

66. Electrolux Grand
Cuisine launch
66

67. Above the target
in 2012
Net organic sales growth
(in comparable currencies)
Financial
target 4% 4.6% YTD
2006 2007 2008 2009 2010 2011 2012 YTD
67

68. Acquired growth
68

69. Acquisitions = integrated
part of the growth strategy
Emerging Markets New Products and
MARKETS/ CHANNELS
New
Channels Markets / Channels
Existing
Electrolux New / Adjacent
2011 Products
Categories
Enhance Products/ Ranges
Existing New
PRODUCTS 69

70. Global major appliance
market still very fragmented
Whirlpool
Electrolux
>40% are Haier
Others
smaller
companies BSH
LG
Midea
Sanyo Samsung
Mabe GE
Sharp Indesit
Panasonic
Arçelik
70

71. Key success factors
Deal flow In house M&A key Ownership What to pay
competencies
• Short term you can • Be in control • Don’t mix up • Up-front, earnout,
slow down if there corporate expertise firepower
are too many – but in M&A processes
short term it is with future
difficult to ownership of
accelerate if there acquired
are too few... companies
71

72. Acquisitions of
CTI and Olympic Group
72

73. Acquisition of
Olympic Group – Egypt
Olympic Group’s position
• Normalized sales of around
SEK 2.5bn
• Leading in Egypt, North Africa and
Middle East
• Complementary product portfolios
and strong position in water heaters
• 30 years of cooperation with
Electrolux
• 7,000 employees
• Strategic fit
• Financial fit
73

74. Acquisition of CTI
– Chile and Argentina
Juárez
Snapshot of Combined Business
 Combined Electrolux sales in
Latin America of SEK 20bn
Manaus
 Leading in Brazil and Southern
Latin America
 Strong brands and complementary
product portfolios
São Carlos
Curitiba
 Seven manufacturing facilities
Cerrillos Rosario
 >12,000 employees
Maipú
 Strategic fit
 Financial fit
74

75. Total growth YTD 2012
Net sales growth
(in comparable currencies)
Total 10%
YTD
Financial
target 4%
2006 2007 2008 2009 2010 2011 2012 YTD
75

76. 2
Gross margin
Product innovation
Operational excellence

77. Product innovation
77

78. Accelerate innovation
and time to market
Increased focus on the Innovation Innovation Triangle
Triangle, new members of
Group Management
1. Develop best-in-class products
2. Speed up product innovation
3. Continue investing in premium
brands
R&D
78

79. Develop best-in-class products
• Identify consumer needs and segments
• Develop products with innovative design
and relevant functionality
• 70% preference rule

80. Speed up product innovation
• Accelerate consumer insight-
driven differentiation
• Front-end loading and parallel
development
• Modularization
Product Creation Process
Primary Product
development development 70%
Strategic Consumer Launch Range Phase-
market plan opportunities
Concept Commercial execution management out consumer
development launch preparation preference
Intent Commercial Launch Process
80

81. Investments in
premium brands
• Align Electrolux brand
architecture and position
globally
• Invest in premium brands
across all markets
• Leverage our expertise in
the professional business
81

82. Operational excellence

83. Operational excellence
Presented November 2011
Total annual savings: SEK 5.3bn
One-time costs: SEK 5.1bn
Savings from Savings from Savings from
Manufacturing Global Overhead
footprint Operations costs
1.6 3.0 0.7
Full effect 2016
83

84. Manufacturing footprint

85. Status
Current status Electrolux journey since 2004
• Total costs: SEK 9.1bn • 19 factories closed
– Booked as items affecting • 5 factories downsized
comparability
• 9 new factories
– Cash out: SEK 6.1bn
– Write downs: SEK 3.0bn
• Approximately 35% of
production moved
• Annual savings of SEK 3.2bn
(since 2004) • 10,000 employees has left
• 65% of capacity in low cost • 7,000 new employees hired
areas
85

86. Restructuring timeline –
Costs
SEKm
10,000
L'Assomption, Canada 1,000
 Webster City, US 1,100 50
 Alcalà, Spain
1,600
Nuremberg, Germany
400
400  Revin, France
400  Mariestad, Sweden
2,500 9,150
 Schwanden, Switzerland
Greenville, US
1,700
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 Total
YTD
86

87. Restructuring timeline –
Savings
SEKm
3,500
250
600
500
200
3,250
1,700
0
2008 2009 2010 2011 2012 Total
Forecast
87

88. Restructuring timeline –
Manufacturing in low cost areas
Percentage of Capacity in LCC
65%
62%
53% 55%
51%
43%
39%
31%
28%
2004 2005 2006 2007 2008 2009 2010 2011 2012
88

89. New production centers
Eastern Europe
Asia
North America
South America Middle East
Africa
• Reducing global manufacturing costs
• Supporting strategic growth areas
89

90. Manufacturing footprint
by 2015
Manufacturing footprint High Cost Areas
Declining segments 5%
Efficient and
competitive 10%
Low Cost
Areas 30%
70% Regionally
specific 15%
products
90

91. Need to increase current
capacity utilization
Capacity utilization  Decrease capacity
 Shift capacity to Growth
Today Future
85% Low Cost Areas
75%
0%
HCA LCA HCA LCA
91

92. Global Operations
– an update

93. Stick to our plan
• Rigorous plan - confident
in delivery
• Visible results, now
– Bottom-line impact from
purchasing
– Roll-out of modularization
accelerated
– Globalized governance
in R&D

94. Global Operations
Total savings 3
SEKbn

95. Savings from Global
Operations
Manufacturing
20%
50% Modularization
30%
Purchasing

96. Savings from Global
Operations
SEKbn Savings (y-o-y) Investments
0,9
0,8
0,7
0,5
0,1
2011 2012 2013 2014 2015
-0,2
IT investments
etc.
-0,5 -0,5
96

97. 3
Asset velocity
Working capital
Capital expenditure

98. Working capital
Net operating working capital (NOWC)
Average assets/
Net Assets
net sales
18 000 16,% Accounts receivable
17 000 15,%
• Terms and conditions
16 000 14,%
15 000 13,% • Thorough credit risk control
14 000 12,% Accounts payable
13 000 11,%
12 000 10,%
• Terms and conditions
11 000 9,% Inventory
10 000 8,%
• Supply chain efficiency
200908
200910
200912
201002
201004
201006
201008
201010
201012
201102
201104
201106
201108
201110
201112
201202
201204
201206
201208
• Product range optimization
98

99. Structural change of capex
100%
• Going forward, capital
Other expenditure will
structurally change
Process/ 65% • Capital expenditure
Factories will be more related to
launching new products
35%
Product
0%
2008 Current
99

100. 4
Optimizing our financial
cost and tax rate

101. Financial net
(SEKm) ~650

102. Tax rate ~25%

103. Strong track record in
generating a solid cash
flow…

104. Historical cash flow
development
SEKm Operating cash flow (rolling 12 months)
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2008 2009 2010 2011 2012
104

105. …and there is opportunity
for further expansion

106. Grow organically by more than 4% 4%
and carry out additional profitable
acquisitions
Cash flow statement
Sales Expand EBIT margin by more than 6%
through launching new innovative
EBITDA
products and continue to deliver on
Change in working capital operational excellence
Other
CASH FLOW FROM OPERATIONS (CFO) Continue to improve working capital
to keep capital turn-over rate above
Capex
4x
Financial net and tax Turn investment more towards
launching new products and create
CFO AND INVESTMENTS top-line growth and gross margin
expansion
106