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Q1 Results 2009
April 22, 2009
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
Q1 Highlights

                  EBIT (SEKb)         EBIT margin (%)              EBIT amounted to SEK 38m,
2500                                                         10%   excluding items affecting
2000                                                         8%    comparability
1500                                                         6%    Restructuring in China, Italy
1000                                                         4%    and Russia
 500                                                         2%    Continued weak demand in all
   0                                                         0%
                                                                   major markets
 -500
         Q1      Q2   Q3   Q4    Q1   Q2   Q3   Q4      Q1
                                                             -2%
                                                                   Negative currency impact
                 2007                  2008          2009
-1000                                                        -4%   Strong cash flow
                                                                   Ongoing cost-cutting measures
    (SEKm)              Q1 2008               Q1 2009              are giving result
        Sales              24,193               25,818
                                                                   Price increases in Europe
        EBIT                    -39                  38
        Margin              -0.2%                 0.1%             US launch – net negative
                                                                   impact of SEK -200m
                                                                                             2
US launch and non-recurring
items
Non-recurring items
SEK (m)                                                       Q1, 2009           Q1, 2008
 North America
         Launch                                                      -200               -120
         Litigation                                                                          -80
 Europe*                                                                  -             -350
 Total                                                               -200               -550

Items affecting comparability
   Changsha, China                                                   -187
   Porcia, Italy                                                     -132
   St Petersburg, Russia                                             -105
   Reversal of unused restructuring                                                          34

 Total                                                               -424                    34
*) Includes Cost Cutting Program (-360m), Component Issue (-120m) and Capital Gain (+130m)
                                                                                                   3
Cash flow per quarter


   Cash flow from operations and investments

    2000

    1500                  Cash flow Q1, 2009

    1000

    500

      0

    -500

   -1000
                Q1                Q2              Q3   Q4

                                       2008    2007
                                                            4
Consumer Durables
Europe

                 EBIT (SEKm)        EBIT margin (%)               Weak market
1000                                                              Lower sales
 800                                                       10%
                                                                  Underlying result in line with
 600
 400                                                       5%
                                                                  previous year
 200                                                               –   Lower volumes
   0                                                       0%      –   Reduced capacity utilization
        Q1      Q2   Q3   Q4   Q1   Q2   Q3    Q4    Q1
-200                                                               –   Price increases
-400            2007                   2008         2009 -5%
                                                                   –   Cost reductions
-600
                                                                  Weak market and negative
-800                                                       -10%
                                                                  currency impact for floor-care
   (SEKm)                 Q1 2008             Q1 2009             products
       Sales               10,525              10,175
       EBIT                    -192                 125
       Margin                  -1.8%                1.2%


                                                                                                   5
Market development in Europe

                     Quarterly comparison, year on year

    10%

     5%

     0%

     -5%

   -10%

   -15%
                     2006                 2007                    2008            2009
               Q1   Q2   Q3   Q4   Q1    Q2   Q3    Q4    Q1    Q2    Q3    Q4    Q1
West. Europe 4%     1%   1%   5%   1%    1%   -1%   -5%   -4%   -4%   -5%   -8%   -9%
East. Europe   1%   9%   6%   7%   14%   5%   5%    10%   6%    5%    4%    -15% -31%

                                                                                         6
Consumer Durables
North America

                EBIT (SEKm)        EBIT margin (%)
                                                                  Weak market
700                                                         14%
600                                                         12%   – Lower sales in comparable
500                                                         10%     currencies
400                                                         8%
300                                                         6%    Market-share gain
200                                                         4%
                                                                  SEK 200m negative net
100                                                         2%
  0                                                         0%    impact of US launch
-100    Q1   Q2    Q3   Q4    Q1   Q2    Q3   Q4     Q1     -2%
-200            2007                  2008         2009 -4%
                                                                  Increased raw-material costs
-300                                                    -6%       Floor Care: Lower sales
                                                                  partly mitigated by improved
   (SEKm)               Q1 2008               Q1 2009             mix and price increases
       Sales                 7,275                 9,144
       EBIT                   -154                   -177
       Margin                 -2.1%                -1.9%


                                                                                           7
Market development
in North America

                 Quarterly comparison, year on year

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




                                                                      8
9
Consumer Durables
Latin America

                 EBIT (SEKm)        EBIT margin (%)               Declining demand in Brazil
300                                                          8%
250
                                                                  Market-share gain
                                                             6%
200                                                               Operating income lower than
150                                                          4%   last year
100
 50
                                                             2%   – Large negative currency
  0                                                          0%
                                                                    impact
       Q1   Q2     Q3   Q4     Q1   Q2   Q3    Q4     Q1          – Product mix
                2007                  2008            2009
                                                                  Price increases

      (SEKm)             Q1 2008              Q1 2009
        Sales              2,404                2,625
        EBIT                    156                 50
       Margin                  6.5%                 1.9%


                                                                                              10
Consumer Durables
Asia/Pacific & Rest of world

                  EBIT (SEKm)        EBIT margin (%)
                                                                   Australia/New Zealand
200                                                           8%
180                                                           7%   –   Market-share gain
160
140
                                                              6%   –   Price increases
120                                                           5%
100                                                           4%   –   Cost reductions
 80                                                           3%
 60
                                                              2%
                                                                   –   Negative currency impact
 40
 20                                                           1%   Closure of Changsha
  0                                                           0%
        Q1   Q2     Q3   Q4     Q1     Q2   Q3   Q4    Q1          factory in China
                2007                    2008           2009
                                                                   Positive price and mix in
                                                                   Southeast Asia
      (SEKm)             Q1 2008                 Q1 2009
        Sales              2,228                   2,145
        EBIT                    105                     60
       Margin                   4.7%                   2.8%


                                                                                              11
Professional Products

                EBIT (SEKm)        EBIT margin (%)              Food-service
250                                                       14%
                                                          12%
                                                                – Weak demand
200
                                                          10%   – Lower capacity utilization
150                                                       8%
                                                          6%
                                                                – Cost reductions
100

 50
                                                          4%    Laundry
                                                          2%
  0                                                       0%    – Lower sales volumes and
       Q1   Q2    Q3   Q4     Q1   Q2   Q3   Q4      Q1
                                                                  capacity utilization
             2007                   2008          2009
                                                                – Improved price and mix
      (SEKm)            Q1 2008               Q1 2009
                                                                – Positive impact by M&A
        Sales             1,753                 1,727             savings
        EBIT                   183                    105
       Margin                 10.4%                  6.1%



                                                                                         12
Market view business areas and
raw materials impact


    Market demand       Q209     FY09

     Europe

     North America

     Latin America

    Raw materials
     Costs for steel




                                        13
14
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.

                                                                                    15

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Electrolux Interim Report Q1 2009 Presentation

  • 1. Q1 Results 2009 April 22, 2009 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Q1 Highlights EBIT (SEKb) EBIT margin (%) EBIT amounted to SEK 38m, 2500 10% excluding items affecting 2000 8% comparability 1500 6% Restructuring in China, Italy 1000 4% and Russia 500 2% Continued weak demand in all 0 0% major markets -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2% Negative currency impact 2007 2008 2009 -1000 -4% Strong cash flow Ongoing cost-cutting measures (SEKm) Q1 2008 Q1 2009 are giving result Sales 24,193 25,818 Price increases in Europe EBIT -39 38 Margin -0.2% 0.1% US launch – net negative impact of SEK -200m 2
  • 3. US launch and non-recurring items Non-recurring items SEK (m) Q1, 2009 Q1, 2008 North America Launch -200 -120 Litigation -80 Europe* - -350 Total -200 -550 Items affecting comparability Changsha, China -187 Porcia, Italy -132 St Petersburg, Russia -105 Reversal of unused restructuring 34 Total -424 34 *) Includes Cost Cutting Program (-360m), Component Issue (-120m) and Capital Gain (+130m) 3
  • 4. Cash flow per quarter Cash flow from operations and investments 2000 1500 Cash flow Q1, 2009 1000 500 0 -500 -1000 Q1 Q2 Q3 Q4 2008 2007 4
  • 5. Consumer Durables Europe EBIT (SEKm) EBIT margin (%) Weak market 1000 Lower sales 800 10% Underlying result in line with 600 400 5% previous year 200 – Lower volumes 0 0% – Reduced capacity utilization Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -200 – Price increases -400 2007 2008 2009 -5% – Cost reductions -600 Weak market and negative -800 -10% currency impact for floor-care (SEKm) Q1 2008 Q1 2009 products Sales 10,525 10,175 EBIT -192 125 Margin -1.8% 1.2% 5
  • 6. Market development in Europe Quarterly comparison, year on year 10% 5% 0% -5% -10% -15% 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% 6
  • 7. Consumer Durables North America EBIT (SEKm) EBIT margin (%) Weak market 700 14% 600 12% – Lower sales in comparable 500 10% currencies 400 8% 300 6% Market-share gain 200 4% SEK 200m negative net 100 2% 0 0% impact of US launch -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2% -200 2007 2008 2009 -4% Increased raw-material costs -300 -6% Floor Care: Lower sales partly mitigated by improved (SEKm) Q1 2008 Q1 2009 mix and price increases Sales 7,275 9,144 EBIT -154 -177 Margin -2.1% -1.9% 7
  • 8. Market development in North America Quarterly comparison, year on year 10% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* 2006 2007 2008 2009 8
  • 9. 9
  • 10. Consumer Durables Latin America EBIT (SEKm) EBIT margin (%) Declining demand in Brazil 300 8% 250 Market-share gain 6% 200 Operating income lower than 150 4% last year 100 50 2% – Large negative currency 0 0% impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 – Product mix 2007 2008 2009 Price increases (SEKm) Q1 2008 Q1 2009 Sales 2,404 2,625 EBIT 156 50 Margin 6.5% 1.9% 10
  • 11. Consumer Durables Asia/Pacific & Rest of world EBIT (SEKm) EBIT margin (%) Australia/New Zealand 200 8% 180 7% – Market-share gain 160 140 6% – Price increases 120 5% 100 4% – Cost reductions 80 3% 60 2% – Negative currency impact 40 20 1% Closure of Changsha 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 factory in China 2007 2008 2009 Positive price and mix in Southeast Asia (SEKm) Q1 2008 Q1 2009 Sales 2,228 2,145 EBIT 105 60 Margin 4.7% 2.8% 11
  • 12. Professional Products EBIT (SEKm) EBIT margin (%) Food-service 250 14% 12% – Weak demand 200 10% – Lower capacity utilization 150 8% 6% – Cost reductions 100 50 4% Laundry 2% 0 0% – Lower sales volumes and Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 capacity utilization 2007 2008 2009 – Improved price and mix (SEKm) Q1 2008 Q1 2009 – Positive impact by M&A Sales 1,753 1,727 savings EBIT 183 105 Margin 10.4% 6.1% 12
  • 13. Market view business areas and raw materials impact Market demand Q209 FY09 Europe North America Latin America Raw materials Costs for steel 13
  • 14. 14
  • 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. 15