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Q2 Results, July 16, 2009
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
Q2 Highlights

                  EBIT (SEKb)     EBIT margin (%)          EBIT improved by 30%
2500                                                 10%   In weak markets, Europe and
2000                                                 8%    North America improved results
                                                            – Cost savings
1500                                                 6%
                                                            – Lower raw-material costs
1000                                                 4%
                                                            – Price increases
 500                                                 2%    Continued market-share gain in
   0                                                 0%    North America.
 -500
         Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
                                                     -2%
                                                           Improved operating income in
                 2007             2008        2009         Latin America
-1000                                                -4%
                                                           Solid performance by the rest of
                                                           the Group in difficult markets
    (SEKm)              Q2 2008            Q2 2009
                                                           Continued strong cash flow
        Sales            25,587             27,482
        EBIT*              793               1,027
        Margin             3.1%               3.7%

*Excluding items affecting comparability
                                                                                         2
Cash flow per quarter


   Cash flow from operations and investments
   (SEK m)
    4000                      Q2, 2009


    3000


    2000


    1000
             Q1, 2009
      0


   -1000
                Q1               Q2              Q3     Q4

                                  2009    2008   2007
                                                             3
Consumer Durables
Europe

                EBIT (SEKm)      EBIT margin (%)
                                                            Weak market impacted sales
1000                                                        negatively
 800                                                 10%
                                                            Improved results for core
 600
 400                                                 5%
                                                            appliances
 200                                                        – Cost savings
   0                                                 0%     – Price increases
        Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
-200                                                        – Savings on components and
-400            2007            2008        2009     -5%      raw-material
-600                                                        – Mix improvement
-800                                                 -10%
                                                            Weak market demand for
   (SEKm)              Q2 2008            Q2 2009           floor-care products
       Sales             10,500              9,935
       EBIT                   294              257
       Margin                 2.8%            2.6%


                                                                                      4
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    Q2
West. Europe 4%     1%     1%   5%   1%    1% -1%    -5%   -4%   -4%    -5%   -8%   -9%   -9%
East. Europe   1%   9%     6%   7%   14%   5%   5% 10%     6%    5%      4% -15% -31% -30%
                                                                                               5
UltraOne




           6
Consumer Durables
North America

                 EBIT (SEKm)      EBIT margin (%)
                                                                 Weak market impacted sales
700                                                        14%
                                                                 negatively
600                                                        12%
500                                                        10%    – Lower sales in comparable
400                                                        8%       currencies
300                                                        6%
200                                                        4%
                                                                 Improved operating income
100                                                        2%     – Cost savings
  0                                                        0%
                                                                  – Previous price increases
-100    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2                      -2%
-200         2007                2008         2009         -4%    – Lower raw-material costs
-300                                                       -6%
                                                                 Q2 2008 negatively impacted
                                                                 by Electrolux launch cost
       (SEKm)            Q2 2008             Q2 2009             Market demand for floor-care
        Sales                  8,214            9,848            products is decreasing at lower
         EBIT                   113                 498          rate
        Margin                  1.4%                5.1%


                                                                                                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   Q2
             2006                 2007                2008           2009




                                                                            8
9
Electrolux awards




                    10
Consumer Durables
Latin America

                EBIT (SEKm)     EBIT margin (%)
                                                             Strong market growth in
300                                                     8%
                                                             Brazil
250
200
                                                        6%   – Tax reduction on
150                                                     4%     domestically-produced
100                                                            appliances
                                                        2%
 50
                                                             Improved operating income
  0                                                     0%
       Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2                         – Higher volumes
            2007               2008         2009
                                                             – Better customer mix
                                                             – Continued currency
                                                               headwinds
      (SEKm)            Q2 2008          Q2 2009
        Sales             2,548            3,326
        EBIT                  133                 142
       Margin                 5.2%            4.3%


                                                                                       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%   –   Previous price increases
120                                                       5%
100                                                       4%
                                                               –   Cost reductions
 80
 60
                                                          3%   –   Negative currency impact
                                                          2%
 40
 20                                                       1%   Positive price and mix in
  0
       Q1 Q2    Q3 Q4 Q1        Q2 Q3 Q4         Q1 Q2
                                                          0%
                                                               Southeast Asia
            2007                 2008             2009         Exit low-price segments
                                                               and geographies in China
      (SEKm)           Q2 2008                Q2 2009
        Sales            2,369                  2,521
        EBIT                  147                  104
       Margin                 6.2%                 4.1%


                                                                                          12
Professional Products

                EBIT (SEKm)      EBIT margin (%)
                                                            Weak market demand
250                                                   14%

200
                                                      12%   Lower operating income
                                                      10%
150
                                                            – Lower capacity utilization
                                                      8%

100                                                   6%    – Positive impact from
 50
                                                      4%      personnel cutbacks and
                                                      2%
  0                                                   0%
                                                              lower raw-materials costs
       Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
            2007                2008         2009




      (SEKm)            Q2 2008             Q2 2009
        Sales             1,944               1,850
        EBIT                   225                 165
       Margin                 11.6%                8.9%



                                                                                     13
Market view business areas and
raw-materials impact


    Market demand       Q309     FY09

     Europe

     North America

     Latin America

    Raw materials
     Costs for steel




                                        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.

                                                                                    16

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Electrolux Interim Report Q2 2009 Presentation

  • 1. Q2 Results, July 16, 2009 Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Q2 Highlights EBIT (SEKb) EBIT margin (%) EBIT improved by 30% 2500 10% In weak markets, Europe and 2000 8% North America improved results – Cost savings 1500 6% – Lower raw-material costs 1000 4% – Price increases 500 2% Continued market-share gain in 0 0% North America. -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -2% Improved operating income in 2007 2008 2009 Latin America -1000 -4% Solid performance by the rest of the Group in difficult markets (SEKm) Q2 2008 Q2 2009 Continued strong cash flow Sales 25,587 27,482 EBIT* 793 1,027 Margin 3.1% 3.7% *Excluding items affecting comparability 2
  • 3. Cash flow per quarter Cash flow from operations and investments (SEK m) 4000 Q2, 2009 3000 2000 1000 Q1, 2009 0 -1000 Q1 Q2 Q3 Q4 2009 2008 2007 3
  • 4. Consumer Durables Europe EBIT (SEKm) EBIT margin (%) Weak market impacted sales 1000 negatively 800 10% Improved results for core 600 400 5% appliances 200 – Cost savings 0 0% – Price increases Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -200 – Savings on components and -400 2007 2008 2009 -5% raw-material -600 – Mix improvement -800 -10% Weak market demand for (SEKm) Q2 2008 Q2 2009 floor-care products Sales 10,500 9,935 EBIT 294 257 Margin 2.8% 2.6% 4
  • 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 Q2 West. Europe 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 5% 4% -15% -31% -30% 5
  • 7. Consumer Durables North America EBIT (SEKm) EBIT margin (%) Weak market impacted sales 700 14% negatively 600 12% 500 10% – Lower sales in comparable 400 8% currencies 300 6% 200 4% Improved operating income 100 2% – Cost savings 0 0% – Previous price increases -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -2% -200 2007 2008 2009 -4% – Lower raw-material costs -300 -6% Q2 2008 negatively impacted by Electrolux launch cost (SEKm) Q2 2008 Q2 2009 Market demand for floor-care Sales 8,214 9,848 products is decreasing at lower EBIT 113 498 rate Margin 1.4% 5.1% 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 Q2 2006 2007 2008 2009 8
  • 9. 9
  • 11. Consumer Durables Latin America EBIT (SEKm) EBIT margin (%) Strong market growth in 300 8% Brazil 250 200 6% – Tax reduction on 150 4% domestically-produced 100 appliances 2% 50 Improved operating income 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 – Higher volumes 2007 2008 2009 – Better customer mix – Continued currency headwinds (SEKm) Q2 2008 Q2 2009 Sales 2,548 3,326 EBIT 133 142 Margin 5.2% 4.3% 11
  • 12. Consumer Durables Asia/Pacific & Rest of world EBIT (SEKm) EBIT margin (%) Australia/New Zealand 200 8% 180 7% – Market-share gain 160 140 6% – Previous price increases 120 5% 100 4% – Cost reductions 80 60 3% – Negative currency impact 2% 40 20 1% Positive price and mix in 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0% Southeast Asia 2007 2008 2009 Exit low-price segments and geographies in China (SEKm) Q2 2008 Q2 2009 Sales 2,369 2,521 EBIT 147 104 Margin 6.2% 4.1% 12
  • 13. Professional Products EBIT (SEKm) EBIT margin (%) Weak market demand 250 14% 200 12% Lower operating income 10% 150 – Lower capacity utilization 8% 100 6% – Positive impact from 50 4% personnel cutbacks and 2% 0 0% lower raw-materials costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 (SEKm) Q2 2008 Q2 2009 Sales 1,944 1,850 EBIT 225 165 Margin 11.6% 8.9% 13
  • 14. Market view business areas and raw-materials impact Market demand Q309 FY09 Europe North America Latin America Raw materials Costs for steel 14
  • 15. 15
  • 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. 16