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Q3 Results,
October 26, 2009
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
Q3 Highlights

EBIT (mSEK)                        Margin (%)
2500                                          10
                                                   Record high earnings
                                        8,1


2000                                          8
                                                   Improved results in all regions
                                                       Cost savings
1500                                          6
                 4,4      4,5                          Price and mix
1000                                          4        Raw materials

 500                                          2    Weak market demand offset by
   0                                          0
                                                   mix and price
                                                   Some growth costs will impact
 -500                                         -2
                                                   fourth quarter
               2007    2008      2009
-1000                                         -4
                                                   Continued strong cash flow
        (SEKm)         Q3 2009   Q3 2008
        Sales           27,617    26,349
        EBIT             2,234     1,178
        Margin           8.1%      4.5%

                                                                                2
Operating cash flow Q3, 2009

 Cash flow from operations   4000


 and investments more than   3500


 SEK 3.5bn better than Q3,   3000

 2008                        2500


 Positive earnings           2000

 contribution                1500


 Improved working capital    1000


   Inventories                500


   Accounts payable             0


   Payment terms              -500


 Lower investments           -1000


                             -1500
                                     Operations (excl. Change in assets    Investments   Operating cash
                                     assets and liab.)   and liabilities                      flow

                                                             Q3, 2009      Q3, 2008

                                                                                                 3
Consumer Durables
 Europe
EBIT (mSEK)                         Margin (%)
1500                                           12   Cost reductions
                                         9,0
                                                    Maintained prices
1000                                           8

                  4,4      4,5                      Improved mix
 500                                           4
                                                    Raw materials
   0                                           0    Weak market demand
 -500                                          -4   Stable results for floor-care
                                                    products
                2007    2008      2009
-1000                                          -8

        (SEKm)          Q3 2009   Q3 2008
        Sales            10,905    11,345
        EBIT               977       514
        Margin            9.0%      4.5%

                                                                                4
Market development in Europe,
 core appliances

                         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
West. Europe 4%     1%     1%   5%   1%    1% -1%    -5% -4% -4% -5%     -8% -9% -9%      -4%
East. Europe   1%   9%     6%   7%   14%   5%   5% 10%    6%   5%   4% -15% -31% -30% -26%
                                                                                               5
Consumer Durables
 North America
EBIT (mSEK)                         Margin (%)
1000                                           10
                                                    Cost reductions
                                         7,9

750
                                                    Maintained prices

500
                  4,5
                                               5
                                                    Mix improvement
                          3,6


250
                                                    Raw materials
                                                    Weak market demand
   0                                           0

                                                    Strong results for floor-care
-250
                                                    products
               2007     2008      2009
-500                                           -5

       (SEKm)           Q3 2009   Q3 2008
       Sales              8,869     8,384
       EBIT                705       306
       Margin             7.9%      3.6%

                                                                               6
Market development
in North America, core appliances

             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
             2006                2007                2008               2009




                                                                               7
Consumer Durables
 Latin America
EBIT (mSEK)                        Margin (%)
 400                                          10,0
                                                     Strong demand in Brazil
                                        8,3             Tax incentives
 300                      6,7                 7,5       Interest rates
                 5,3
                                                        Access to credit
 200                                          5,0
                                                     Market-share gain
 100                                          2,5
                                                     Maintained prices
   0                                          0,0    Mix improvement
              2007     2008      2009
                                                     Lower costs
-100                                          -2,5
                                                        Production
       (SEKm)          Q3 2009   Q3 2008
       Sales             3,813     2,713
                                                        Raw materials
       EBIT               318       182
       Margin            8.3%      6.7%

                                                                               8
Consumer Durables
 Asia Pacific
EBIT (mSEK)                        Margin (%)
250                                      8,4   9,0
                                                     Australia
                                               8,0      Market-share gain
200                                            7,0
                                                        Improved mix
                                               6,0
150                        4,6                          Lower raw-material costs
                 4,2                           5,0
                                               4,0
100                                                     Cost savings
                                               3,0

 50                                            2,0   Southeast Asia
                                               1,0
                                                        Continued profitable growth
  0                                            0,0
                                                     China
              2007      2008      2009
                                                        Mix improvement from previous
      (SEKm)           Q3 2009   Q3 2008                restructuring
      Sales              2,399     2,190
      EBIT                201       101
      Margin             8.4%      4.6%

                                                                                   9
Consumer Durables
 Professional Products
EBIT (mSEK)                        Margin (%)
250                                         12,0
                                                   Weak market demand
                          10,8       10,6

                                            10,0
                                                      Continued lower order
200
                7,3
                                                      intake
                                            8,0
150
                                            6,0
                                                   Cost savings
100
                                            4,0    Lower raw-material costs
 50
                                            2,0    Previous price increases for
  0                                         0,0    laundry products
              2007      2008     2009


      (SEKm)          Q3 2009    Q3 2008
      Sales             1,629      1,709
      EBIT               173        185
      Margin           10.6%      10.8%

                                                                              10
11
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.

                                                                                    12

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Electrolux 2009-q3-presentation

  • 1. Q3 Results, October 26, 2009 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Q3 Highlights EBIT (mSEK) Margin (%) 2500 10 Record high earnings 8,1 2000 8 Improved results in all regions Cost savings 1500 6 4,4 4,5 Price and mix 1000 4 Raw materials 500 2 Weak market demand offset by 0 0 mix and price Some growth costs will impact -500 -2 fourth quarter 2007 2008 2009 -1000 -4 Continued strong cash flow (SEKm) Q3 2009 Q3 2008 Sales 27,617 26,349 EBIT 2,234 1,178 Margin 8.1% 4.5% 2
  • 3. Operating cash flow Q3, 2009 Cash flow from operations 4000 and investments more than 3500 SEK 3.5bn better than Q3, 3000 2008 2500 Positive earnings 2000 contribution 1500 Improved working capital 1000 Inventories 500 Accounts payable 0 Payment terms -500 Lower investments -1000 -1500 Operations (excl. Change in assets Investments Operating cash assets and liab.) and liabilities flow Q3, 2009 Q3, 2008 3
  • 4. Consumer Durables Europe EBIT (mSEK) Margin (%) 1500 12 Cost reductions 9,0 Maintained prices 1000 8 4,4 4,5 Improved mix 500 4 Raw materials 0 0 Weak market demand -500 -4 Stable results for floor-care products 2007 2008 2009 -1000 -8 (SEKm) Q3 2009 Q3 2008 Sales 10,905 11,345 EBIT 977 514 Margin 9.0% 4.5% 4
  • 5. Market development in Europe, core appliances 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 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% -26% 5
  • 6. Consumer Durables North America EBIT (mSEK) Margin (%) 1000 10 Cost reductions 7,9 750 Maintained prices 500 4,5 5 Mix improvement 3,6 250 Raw materials Weak market demand 0 0 Strong results for floor-care -250 products 2007 2008 2009 -500 -5 (SEKm) Q3 2009 Q3 2008 Sales 8,869 8,384 EBIT 705 306 Margin 7.9% 3.6% 6
  • 7. Market development in North America, core appliances 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 2006 2007 2008 2009 7
  • 8. Consumer Durables Latin America EBIT (mSEK) Margin (%) 400 10,0 Strong demand in Brazil 8,3 Tax incentives 300 6,7 7,5 Interest rates 5,3 Access to credit 200 5,0 Market-share gain 100 2,5 Maintained prices 0 0,0 Mix improvement 2007 2008 2009 Lower costs -100 -2,5 Production (SEKm) Q3 2009 Q3 2008 Sales 3,813 2,713 Raw materials EBIT 318 182 Margin 8.3% 6.7% 8
  • 9. Consumer Durables Asia Pacific EBIT (mSEK) Margin (%) 250 8,4 9,0 Australia 8,0 Market-share gain 200 7,0 Improved mix 6,0 150 4,6 Lower raw-material costs 4,2 5,0 4,0 100 Cost savings 3,0 50 2,0 Southeast Asia 1,0 Continued profitable growth 0 0,0 China 2007 2008 2009 Mix improvement from previous (SEKm) Q3 2009 Q3 2008 restructuring Sales 2,399 2,190 EBIT 201 101 Margin 8.4% 4.6% 9
  • 10. Consumer Durables Professional Products EBIT (mSEK) Margin (%) 250 12,0 Weak market demand 10,8 10,6 10,0 Continued lower order 200 7,3 intake 8,0 150 6,0 Cost savings 100 4,0 Lower raw-material costs 50 2,0 Previous price increases for 0 0,0 laundry products 2007 2008 2009 (SEKm) Q3 2009 Q3 2008 Sales 1,629 1,709 EBIT 173 185 Margin 10.6% 10.8% 10
  • 11. 11
  • 12. 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. 12