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Q2 Results,
 July 19, 2012
The transformation
• Keith McLoughlin, President and CEO
• Tomas Eliasson, CFO

is paying off
• Peter Nyquist, SVP IR




                                        1
Q2 Highlights

EBIT (SEKm)                                                       Margin (%)
1 400                                                                      5          • Record-high organic growth 6%
1 200
                                                                      4.1
                                                                                        – Strong volume growth in Latin
                                                                                4
                                                                                          America and Asia/Pacific
1 000
                       3.1
                                                                                3
                                                                                        – Price increases
 800
                                                                                        – Market-share gain in Europe
 600
                                                                                2
                                                                                      • EBIT increased to SEK 1,150m
 400
                                                                                1
                                                                                        – 4 of 6 business areas at or
 200                                                                                      above our EBIT-margin target
   0                                                                            0       – Price increases in the US
                                2011                              2012
                                                                                        – Positive price, mix and volume
         (SEKm)                                 Q2 2012          Q2 2011                  in Latin America
         Sales                                    27,763           24,143
         EBIT*                                     1,150               745            • Strong cash flow driven by
         Margin*                                      4.1               3.1             working-capital efficiency
        * Excluding items affecting comparability. Non-recurring items are included
          in all figures.
                                                                                                                           2
Bridge of the quarterly sales
  and EBIT


                                              Net Organic                            Acquisitions/                                Sale of
SEKm                    Q2 2011              Development                    Currency Divestments                                 Assets*) Q2 2012


Net sales                    24,143                            1,431                     772                        1,418                         27,763


Net sales %                                                        5.8                    3.6                           5.6                        15.0


EBIT                               745                            429                     -80                            96                 -40    1,150


EBIT %                              3.1                          30.0                  -10.4                            6.8                          4.1
Dilution/
Accretion %                                                        1.5                   -0.5                           0.1                -0.1
* Includes an asset sale within professional food-service equipment of SEK 90m during Q2 2011 and an asset sale of SEK 50m in Spain in Q2 2012.



                                                                                                                                                           3
EBIT-margin bridge Q2 year-over-
year


       EBIT% Q2 2011                                3.1
       Price/Mix                                   +1.3
       Volume                                      +0.4
       Raw materials                               -0.4
       Net: Investments, inflation, efficiencies   +0.2
       Net organic development                      1.5
       Currency                                    -0.5
       Acquisitions                                +0.1
       Sale of assets                              -0.1
       EBIT% Q2 2012                                4.1
                                                          4
Q2 Cash flow


    Cash flow


    SEKm                                         Q2 2012 Q2 2011

    Operations                                      1,749   1,254

    Change in operating assets and liabilities      2,862   1,267

    Capital expenditure                            -1,005   -1,083

    Cash flow from operations                       3,606   1,438
Consumer Durables
Major Appliances Europe,
Middle East & Africa
EBIT (SEKm)                                                      Margin (%)
600                                                                      6
                                                                                     • Increased volumes due to
                                                                                       market-share gain
400                                                                           4
                                                                   2.6                 – Improved position for Electrolux,
                     2.0
200                                                                           2          AEG and Zanussi
                                                                                     • EBIT amounted to SEK 215m
  0                                                                           0
                                                                                       – One-off asset sale of SEK 50m
-200                                                                          -2       – Lower sales prices
                                                                                       – Negative country mix
-400                                                                          -4
                              2011                               2012                  – Higher sales volumes
        (SEKm)                                 Q2 2012          Q2 2011
                                                                                       – Cost savings
        Sales                                     8,216             7,660
        EBIT*                                        215              156            • Slightly negative contribution
        Margin*                                      2.6               2.0
                                                                                       from Olympic
       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                             6
Negative growth in Europe
 Further weakening in Southern Europe
 and slow-down in Eastern Europe

                                            Quarterly comparison y-o-y
 10%



   5%



   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
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

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
 Market Development %                                                                                                         7
Consumer Durables
Major Appliances
North America
EBIT (SEKm)                                                      Margin (%)
750                                                                    7,5
                                                                                     • Higher sales
                                                                 6.0
600                                                                          6         – Price increases
450                                                                          4,5       – Growth in core appliances

300                                                                          3
                                                                                     • EBIT increased to SEK 512m
                    1.8
                                                                                       – Higher prices
150                                                                          1,5
                                                                                       – Improved operational efficiency
  0                                                                          0
                                                                                       – Higher costs for raw materials
-150                                                                         -1,5        and sourced products
                             2011                             2012

        (SEKm)                                 Q2 2012          Q2 2011
        Sales                                     8,599             7,544
        EBIT*                                        512               138
        Margin*                                      6.0               1.8

       * Excluding items affecting comparability. Non-recurring items are included
         in all figures.
                                                                                                                           8
Market demand for core appliances in North
America in line with previous year


                             Quarterly comparison y-o-y
15%


10%


 5%


 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
          2006        2007        2008        2009        2010        2011      2012
                                                                                       9
Consumer Durables
Major Appliances
Latin America
EBIT (SEKm)                                                     Margin (%)
400                                                                      8
                                                                                    • Sales growth of 40%
                                                                   6.1                – Tax incentives in Brazil
300                                                                           6
                                                                                      – Strong organic growth in other
                                                                                        Latin American markets
200                                                                           4
                   3.1                                                                – Acquisition of CTI
                                                                                    • EBIT improved to SEK 316m
100                                                                           2
                                                                                      – Contribution from CTI
 0                                                                            0       – Higher volumes
                             2011                               2012
                                                                                      – Improved price/mix
       (SEKm)                                 Q2 2012          Q2 2011
       Sales                                     5,183             3,708              – Negative currency impact
       EBIT*                                        316              114
                                                                                      – Improved efficiency
       Margin*                                      6.1               3.1

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                         10
Consumer Durables
Major Appliances
Asia/Pacific
EBIT (SEKm)                                                     Margin (%)
240                                                                     12
                                                                                    • Lower sales and EBIT in
                   9.1
                                                                                      Australia
                                                                  7.8
                                                                                      – Lower volumes
160                                                                           8
                                                                                      – Lower prices
                                                                                      – Higher costs for product
80                                                                            4         development
                                                                                    • Southeast Asia and China
                                                                                      – Continued good profitability in
 0                                                                            0
                            2011                               2012                     Southeast Asia
       (SEKm)                                 Q2 2012          Q2 2011
       Sales                                     2,198             1,945
       EBIT*                                        172              177
       Margin*                                      7.8                 9.1

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                          11
Consumer Durables
Small Appliances
EBIT (SEKm)                                                     Margin (%)
270                                                                     10
                                                                                    • Higher sales
                                                                              8
                                                                                      – Higher volumes
                                                                                      – Lower prices
180
                                                                              6
                                                                                    • Slightly improved operating income
                                                                              4
                                                                                      – Excluding positive impact from
90                                                                                      acquisition, results in line with Q2 2011

                   1.3                                            1.5         2       – Higher volumes
                                                                                      – Lower prices
 0                                                                            0
                            2011                               2012                   – Negative currency impact
       (SEKm)                                 Q2 2012          Q2 2011                – Higher brand spend
       Sales                                     2,105             1,794
       EBIT*                                         31                 23
       Margin*                                      1.5                 1.3

      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                                    12
Professional Products
Food-service &
Laundry products
EBIT (SEKm)                                                     Margin (%)
300               18.4
                                                                        20          Food-service products
                                                                                    • Lower sales
                                                                            16
                                                                                    • Underlying EBIT somewhat lower
200                                                                                   than in Q2 2011
                                                                 10.6       12
                                                                                      – Price increases
                                                                            8
                                                                                      – Lower volumes
100                                                                                   – Negative mix
                                                                            4       Laundry products
                                                                                    • Lower sales
  0                                                                         0
                            2011                               2012                 • Operating income lower than in
                                                                                      Q2 2011
       (SEKm)                                 Q2 2012          Q2 2011
       Sales                                     1,462             1,491              – Lower volumes
       EBIT*                                        155              274              – Price increases
       Margin*                                     10.6             18.4
                                                                                      – Positive mix
      * Excluding items affecting comparability. Non-recurring items are included
        in all figures.
                                                                                                                       13
Q2 and FY 2012 y-o-y
In accordance with forward-looking statements in the CEO
letter, press release and previous official statements



                          Q3        2012FY       Comments
                        Slightly     Slightly    Growth in emerging markets and North
  Market volumes
                        Positive     positive    America. European market continued weak.

  Price/Mix             Positive     Positive    Positive price in NA, LA and Prof. Prod.

                        Negative                 Steel: Slightly positive in H2.
  Raw-material costs                ≤ SEK 500m
                       SEK 0-100m                Plastics: Slightly negative in H2.

                                                 Intensive launch period in 2012.
  R&D and marketing      Higher       Higher
                                                 Electrolux launch in Europe.

                                                 Uncertain Egyptian market.
  Acquired units       SEK 100m     ~SEK 400m
                                                 compensated by a strong CTI.

                                                 Incl. global operations, overhead.
  Cost savings         ~SEK 250m    ~SEK 1bn
                                                 reduction and improved manufacturing.

  Transportation and
                         Higher       Higher     Cost increases for sourced products.
  sourced products

                                                                                            14
The transformation
is paying off


                     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 2012 Presentation

  • 1. Q2 Results, July 19, 2012 The transformation • Keith McLoughlin, President and CEO • Tomas Eliasson, CFO is paying off • Peter Nyquist, SVP IR 1
  • 2. Q2 Highlights EBIT (SEKm) Margin (%) 1 400 5 • Record-high organic growth 6% 1 200 4.1 – Strong volume growth in Latin 4 America and Asia/Pacific 1 000 3.1 3 – Price increases 800 – Market-share gain in Europe 600 2 • EBIT increased to SEK 1,150m 400 1 – 4 of 6 business areas at or 200 above our EBIT-margin target 0 0 – Price increases in the US 2011 2012 – Positive price, mix and volume (SEKm) Q2 2012 Q2 2011 in Latin America Sales 27,763 24,143 EBIT* 1,150 745 • Strong cash flow driven by Margin* 4.1 3.1 working-capital efficiency * Excluding items affecting comparability. Non-recurring items are included in all figures. 2
  • 3. Bridge of the quarterly sales and EBIT Net Organic Acquisitions/ Sale of SEKm Q2 2011 Development Currency Divestments Assets*) Q2 2012 Net sales 24,143 1,431 772 1,418 27,763 Net sales % 5.8 3.6 5.6 15.0 EBIT 745 429 -80 96 -40 1,150 EBIT % 3.1 30.0 -10.4 6.8 4.1 Dilution/ Accretion % 1.5 -0.5 0.1 -0.1 * Includes an asset sale within professional food-service equipment of SEK 90m during Q2 2011 and an asset sale of SEK 50m in Spain in Q2 2012. 3
  • 4. EBIT-margin bridge Q2 year-over- year EBIT% Q2 2011 3.1 Price/Mix +1.3 Volume +0.4 Raw materials -0.4 Net: Investments, inflation, efficiencies +0.2 Net organic development 1.5 Currency -0.5 Acquisitions +0.1 Sale of assets -0.1 EBIT% Q2 2012 4.1 4
  • 5. Q2 Cash flow Cash flow SEKm Q2 2012 Q2 2011 Operations 1,749 1,254 Change in operating assets and liabilities 2,862 1,267 Capital expenditure -1,005 -1,083 Cash flow from operations 3,606 1,438
  • 6. Consumer Durables Major Appliances Europe, Middle East & Africa EBIT (SEKm) Margin (%) 600 6 • Increased volumes due to market-share gain 400 4 2.6 – Improved position for Electrolux, 2.0 200 2 AEG and Zanussi • EBIT amounted to SEK 215m 0 0 – One-off asset sale of SEK 50m -200 -2 – Lower sales prices – Negative country mix -400 -4 2011 2012 – Higher sales volumes (SEKm) Q2 2012 Q2 2011 – Cost savings Sales 8,216 7,660 EBIT* 215 156 • Slightly negative contribution Margin* 2.6 2.0 from Olympic * Excluding items affecting comparability. Non-recurring items are included in all figures. 6
  • 7. Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 10% 5% 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 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 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 Market Development % 7
  • 8. Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%) 750 7,5 • Higher sales 6.0 600 6 – Price increases 450 4,5 – Growth in core appliances 300 3 • EBIT increased to SEK 512m 1.8 – Higher prices 150 1,5 – Improved operational efficiency 0 0 – Higher costs for raw materials -150 -1,5 and sourced products 2011 2012 (SEKm) Q2 2012 Q2 2011 Sales 8,599 7,544 EBIT* 512 138 Margin* 6.0 1.8 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8
  • 9. Market demand for core appliances in North America in line with previous year Quarterly comparison y-o-y 15% 10% 5% 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 2006 2007 2008 2009 2010 2011 2012 9
  • 10. Consumer Durables Major Appliances Latin America EBIT (SEKm) Margin (%) 400 8 • Sales growth of 40% 6.1 – Tax incentives in Brazil 300 6 – Strong organic growth in other Latin American markets 200 4 3.1 – Acquisition of CTI • EBIT improved to SEK 316m 100 2 – Contribution from CTI 0 0 – Higher volumes 2011 2012 – Improved price/mix (SEKm) Q2 2012 Q2 2011 Sales 5,183 3,708 – Negative currency impact EBIT* 316 114 – Improved efficiency Margin* 6.1 3.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 10
  • 11. Consumer Durables Major Appliances Asia/Pacific EBIT (SEKm) Margin (%) 240 12 • Lower sales and EBIT in 9.1 Australia 7.8 – Lower volumes 160 8 – Lower prices – Higher costs for product 80 4 development • Southeast Asia and China – Continued good profitability in 0 0 2011 2012 Southeast Asia (SEKm) Q2 2012 Q2 2011 Sales 2,198 1,945 EBIT* 172 177 Margin* 7.8 9.1 * Excluding items affecting comparability. Non-recurring items are included in all figures. 11
  • 12. Consumer Durables Small Appliances EBIT (SEKm) Margin (%) 270 10 • Higher sales 8 – Higher volumes – Lower prices 180 6 • Slightly improved operating income 4 – Excluding positive impact from 90 acquisition, results in line with Q2 2011 1.3 1.5 2 – Higher volumes – Lower prices 0 0 2011 2012 – Negative currency impact (SEKm) Q2 2012 Q2 2011 – Higher brand spend Sales 2,105 1,794 EBIT* 31 23 Margin* 1.5 1.3 * Excluding items affecting comparability. Non-recurring items are included in all figures. 12
  • 13. Professional Products Food-service & Laundry products EBIT (SEKm) Margin (%) 300 18.4 20 Food-service products • Lower sales 16 • Underlying EBIT somewhat lower 200 than in Q2 2011 10.6 12 – Price increases 8 – Lower volumes 100 – Negative mix 4 Laundry products • Lower sales 0 0 2011 2012 • Operating income lower than in Q2 2011 (SEKm) Q2 2012 Q2 2011 Sales 1,462 1,491 – Lower volumes EBIT* 155 274 – Price increases Margin* 10.6 18.4 – Positive mix * Excluding items affecting comparability. Non-recurring items are included in all figures. 13
  • 14. Q2 and FY 2012 y-o-y In accordance with forward-looking statements in the CEO letter, press release and previous official statements Q3 2012FY Comments Slightly Slightly Growth in emerging markets and North Market volumes Positive positive America. European market continued weak. Price/Mix Positive Positive Positive price in NA, LA and Prof. Prod. Negative Steel: Slightly positive in H2. Raw-material costs ≤ SEK 500m SEK 0-100m Plastics: Slightly negative in H2. Intensive launch period in 2012. R&D and marketing Higher Higher Electrolux launch in Europe. Uncertain Egyptian market. Acquired units SEK 100m ~SEK 400m compensated by a strong CTI. Incl. global operations, overhead. Cost savings ~SEK 250m ~SEK 1bn reduction and improved manufacturing. Transportation and Higher Higher Cost increases for sourced products. sourced products 14
  • 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