At Electrolux capital markets day in Charlotte, North Carolina on November 20 2014, CEO Keith McLoughlin and other senior officers of the company presented a status update on the Group’s strategy as well as an overview of the current business environment and expectations for next year.

1. The Electrolux
Group
Capital Markets Day
Charlotte, November 20, 2014
Electrolux
Group
Presentation
Keith McLoughlin
President and CEO
Tomas Eliasson
CFO

2. Overview
Business
Update
Strategic
Review
Value
Creation
Potential
Financial
Review

3. 3
Business Update

4. Summary of what we said about 2014
4
Comments after Q4 2013 FY 2014 Comments Status
Market volumes Slightly positive
• Growth in NA and emerging markets
• Europe developing sideways
• Brazil slowing

Price/mix Slightly positive
• Latin America and North America: positive
• Europe: negative price
• Asia/Pacific: negative country mix

Raw material costs Flat • Range SEK -100m/+100m 
R&D and Marketing Higher
• Higher marketing spend in NA and Asia
• Higher global R&D

Cost savings ~ SEK 1 bn
• Include global operations, overhead reduction
and manufacturing footprint


5. YTD performance
EBIT, 2014 vs. 2013
0
400
800
1,200
1,600
Q1 Q2 Q3
2013 2014
Cash flow after investments, 2014 vs. 2013
-4,000
-2,000
0
2,000
4,000
Q1 Q2 Q3
2013 2014
5
+4%
+13%
+30%
+95%
+27%
+55%
SEKm SEKm

6. Key drivers to performance
6
• Higher profitability in Europe with contribution from productivity initiatives
• Mix improvements through active product portfolio management
• Sales and earnings in North America contribute strongly to the Group
• Latin America and Asia/Pacific, solid performance in weak markets
• Professional Products continues to show improved results
• Earnings has continued to improve with a solid cash flow

7. YTD 2013 Volume Price/mix Currency Inflation Raw
materials
Investments Savings
efficiency
YTD 2014
Improved profitability
7
2.8
3.3
EBIT, SEKbn
3.9% Improved EBIT 17%
4.1%

8. 8
Operational recovery
in Europe

9. Europe YoY market growth %
European market stabilized, but not recovering
from the downturn
The European market is stabilizing
from the 2008-2009 downturn
Though there is M&A-activity,
the market is still relatively fragmented
Some consolidation is taking place…
…but there are still 5 top players with less than 60%
of combined value share
-10%
-15%
5%
0
-5%
2009 2010 2011 2012 2013 2014
Source: Total Europe sell-in Major goods ex. Turkey, % change vs. same period last year Source: GfK MDA Sales value %, 25 CTR EU, 2014 H1
The European market is stabilizing
from the 2008-2009 downturn
Though there is M&A-activity,
the market is still relatively fragmented

10. EMEA has restored profitability in a weak market
0
50
100
150
200
250
300
350
400
450
500
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
EBIT Margin
EBIT
EBIT (SEK m) MARGIN (%)
2012 2013 2014
• Market
demand
• Market prices
• Currency
• Strong mix
improvement
• Product cost
efficiency
• Cost savings

11. Focused Commercial Strategy
11
Categories
Strongest
Brands
Strongest
Categories
Built-in Kitchen
and Laundry
Value
Creating
Sales
Channels
FOCUS
Key focus areas
• Strong brands
• Building on advantage in cooking
and built-in
• Re-gaining premium position
• Stronger sales channels
• Right-sized cost structure

12. 12
Where we are heading

13. Our Desired Position
Our Vision We will be the best appliance company in the world
...our customers
As measured by...
...our employees ...our shareholders
13

14. Total Shareholder Return
Total return
Electrolux B
(Annual return)
SIX Index Retun
(Annual return)
1 year 40% 15%
5 year 9% 14%
10 year 17% 11%
15 year 11% 7%
20 year 14% 12%
25 year 13% 11%
14
Note: calculated TSR price as of 11/4/2014

15. 12.0%
Total Shareholder Return
Cash flow productivity
Top line
Margin
Multiple
1.0%
0.5%
0.5%
TSR
14%
CAGR
*Data based on 1994-2014

16. Value creation model
16
EBIT Margin
>6%
Capital Turnover
4x
RoNA
>20%
Growth
4%

17. Our strategy
Profitable
growth
Operational
excellence
Innovation
People & Leadership
17

18. 18
Profitable Growth

19. Electrolux has a leading position in
most markets
19
Electrolux Major Appliance
(Value market share ranking)

20. Focus on organic growth
20
90,000
95,000
100,000
105,000
110,000
115,000
-5%
-3%
-1%
1%
3%
5%
7%
2011 2012 2013
Sales SEKm
Growth %
Organic growth % Sales in local currencies, SEKm
2014
CAGR 2011-2014
~5%

21. Acquired growth
21
1919 1950 1984 1986 1994 2011 2014-15

22. Growth in Adjacent Products
22
Coffe machines
Electrolux Expressionist Collection:
Kettles, toasters, mixers, blenders
Electrolux Masterpiece Collection:
Stick mixer, food processor, blender
Air Care
Water Care Fabric Care
Filtration
Consumables &
Accessories

23. 23
Innovation

24. A history of innovations and strong brands
1901 1919 1957 1984 1986 1994 1997 2004 2008 2012 2014
AB Lux AB Electrolux Elektrolux to
Electrolux
Zanussi White
Consolidated
(Frigidaire)
US Launch
of Electrolux
AEG Electrolux
Inspiration
Range
China C5
Launch
Refribar
(Brazil)
Electrolux
Grand
Cuisine
Termaline
5000
Ultraflex
2nd gen
Trilobite
Launch of
Ergorapido

25. Global innovation territories
Benefit-driven innovation territories
Culinary
enjoyment
Health and
well-being
Sustainable
homes
Effortless
living
25

26. ”Innovation Triangle”
26
Marketing Design
R&D
Develop best-in-class
products
1
“70% Preference Rule”
2
Reduce Time to Market
30%
3
Continue investing in
premium brands
4

27. Eight
strategic
brands
27

28. 28
Accelerating innovation with
relevant and differentiated offerings

29. Electrolux CombiSteam Oven AEG Maxi Sense Stove
Leading Innovation in Cooking

30. Hob²Hood
Connected Range
• A wireless functionality that automatically controls the hood according to the
cooking activities on the hob
• 1,400 connected possibilities
Let the hob run the
hood…you focus on
cooking !

31. Electrolux Expressionist Collection Electrolux Masterpiece Collection
New product ranges launched in
Small Domestic Appliances

32. Ergorapido Range 2014
32

33. 33
Ultraflex video

34. 360 Consumer Experience
34
Post-Purchase
Setting up the appliance,
using and maintaining it
At-Purchase
Understanding the range
of potential options and
making a final choice
Pre-Purchase
Gathering inspiration and
exploring possibilities

35. Commercial Triangle
35
SIMPLE COLLABORATIVE
FOCUSED
Commercial
Triangle
PRODUCT
LINE
SALES
MARKETING

36. EMEA Electrolux CombiSteam Oven
and Sousvide Launch
36
STEAM OVEN STARTER KIT COOKING CLUB!
STEAM OVEN COOKBOOK AND STEAM APP
TASTE FESTIVAL – ACROSS EUROPE BRAND WEBSITE
ONLINE VIDEO CONTENT
VIP SECRET INGREDIENT
AND STEAM PR EVENT
PRINT
ADVERTISING
ONLINE
BANNER
LA FAYETTE FOOD
HALL COOKING
SESSIONS
POINT TASTE THEATRE IN STORE INTERACTIVE CATALOGUE SPECIAL RETAIL PLACEMENT OF SALE TASTE BANNERS

37. 37
Operational Excellence

38. Cost savings programs
38
Savings from
Overhead
costs
Savings from
Global
Operations
Savings from programs have full effect in 2016
Savings from
Manufacturing
footprint

39. Manufacturing footprint
LCC transition in its final phase
39
28%
51%
~70%
2004 2008 2014est
Percentage of Capacity in Low Cost Countries

40. Global Operations
Previously communicated
40
50%
30%
20%
Modularization 1.0
Purchasing
Manufacturing

41. 41
People & Leadership

42. Passionate, Business-minded People
Leaders at
Electrolux
Business
Leader
People
Leader
42

43. 43
Acquisition of
GE Appliances

44. Our Desired Position
Our Vision We will be the best appliance company in the world
...our customers
As measured by...
...our employees ...our shareholders
44

45. Competitors with Aggressive Growth Plans
Aggressive growth plans from our competitors may impact the market picture in future
REGIONAL CHINESE
#1 Household
Appliances worldwide
KOREANS

46. Global Market Leadership
Local market strength
Strong brands
Product innovation
Cost position
Global scale

47. Overview of GE Appliances
47
• 2013 revenue of USD 5.7bn
• Manufacturing footprint across 5 states
– 12,000 employees
• State of the art distribution and logistics network
• USD 1bn of investments in R&D, products
and manufacturing
• Innovative product portfolio
• Joint venture with 48.4% stake in Mabe
Bloomington, Indiana
- Refrigeration
Louisville, Kentucky
- Laundry
- Dishwashers
- Refrigerators
- Water heaters
Selmer, Tennessee
- Built-in Refrigeration
Decatur, Alabama
- TM Refrigeration
LaFayette, Georgia
- Cooking

48. Transaction overview
48
Overview
• Electrolux has agreed to acquire GE Appliances for a cash consideration of USD 3.3 billion
• The deal is primarily an asset transaction
• Transaction includes GE’s 48.4% ownership in Mabe
Rationale
• Improving global scale in home appliances
• Significant synergies particularly in sourcing and operations
• The transaction is expected to be EPS accretive in year 1
Financing
• Financed with a fully committed bridge facility
• Rights issue ~25% and ~75% bond take out
Conditions • Subject to approval from regulatory authorities
Timetable
• Expected closing: 2015
• Rights issue: As soon as possible following acquisition completion

49. Strategic fit
Combining high quality brand portfolios
49
Price
Value
VALUE
PRICE

50. Expected synergy breakdown
Significant synergies
Synergies
• Expected annual synergies of USD 300m
• Synergies from combined operations and
manufacturing
• Utilize cost efficient sourcing base
• Strong logistics and distribution capabilities
• One-off implementation cost of USD 300m
• Implementation capex of USD 60m expected for
the first two years
50
Sourcing
~50%
Operations
~40%
Other
~10%

51. Delivering on our growth strategy and vision
We w Our Vision ill be the best appliance company in the world
...our customers
As measured by...
...our employees ...our shareholders
51
 Brands
 Innovative
Products
 Distribution
 Enhanced production and
R&D capabilities
 Engaged 12,000 employees
 Global opportunities
 EPS accretive in year 1
 Significant synergy potential
 Enhanced cash generation

52. 52
Creating value for
our shareholders

53. Financial Targets
53
RoNA
>20%
Organic growth
4%
EBIT margin
>6%
Capital turnover
4x

54. 3.50
4.00
4.50
6.00
6.50
7.00
7.50
4.00 4.25 4.00
6.50 6.50 6.50 6.50
0
20
40
60
80
100
0.0
2.0
4.0
6.0
8.0
10.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
A history of sustainable dividends
54
Dividend as % of net income
Electrolux shareholder distrubution policy ...dividends to correspond to at least 30% of income for the period
Historically, the dividend rate has been considerably higher. In 2013, proposed pay-out corresponded to 66%.
*Earnings per share excludes items affecting comparability
Dividend per share, SEK

55. 0
500
1,000
1,500
Electrolux has consistently delivered
strong total return to our shareholders
1994 2000 2004 2009 2014
Electrolux B
Average total
return ~14%
Six Return Index
Average total
return ~12%
Index = 100

56. The Electrolux
Group
Financial Review
Capital Markets Day
November 20, 2014
Tomas Eliasson
CFO

57. 57
Financial trends

58. Sales and EBIT bridge, Q3
58
SEKm
Q3 2013
Volume
Price/Mix
Currency
translation
Currency
transaction
Other
Q3 2014
Net sales 27,258 -660 1,105 1,081 - - 28,784
Growth % - -2.3% +3.9% +4.0% - - 5.6%
EBIT 1,075 -13 450 +40 -160 - 1,392
EBIT % 3.9% 2.0% 40.7% - - 4.8%
Accretion % 0.0% -0.6%
Organic
1.5%

59. Sales and EBIT bridge, Jan-Sep 2014
59
SEKm
Jan-Sep 2013
Volume
Price/Mix
Currency
translation
Currency
transaction
Other
Jan-Sep 2014
Net sales 80,260 -3,420 3,950 -46 - - 80,743
Growth % - -4.3% +4.9% -0.1% - - 0.7%
EBIT 2,832 -450 2,095 -25 -1,145 - 3,308
EBIT % 3.9% 13.2% 53.0% - - 4.1%
Accretion % 0.0% -1.4%
Organic
1.9%

60. Pre-closure transaction costs
60
GE Appliances – Costs expected pre-closure
Transaction (EBIT)
M&A advisory, lawyers,
auditors
~200 SEKm
Integration (EBIT)
Integration team and
external consultants
~100 SEKm
Funding (Finance net) Bridge facility ~200 SEKm
Total estimated cost ~500 SEKm
Note: USD/SEK exchange rate used as of 17/10/2014

61. 61
The transformation
is paying off
Understanding
Electrolux P&L

62. Understanding Electrolux
62
SEKbn 2013
Revenues 109
Direct material 45
Sourced products 17
Salaries and other expenses 43
EBIT 4
Variable cost to sales 80%
Fixed cost to sales 16%
EBIT to sales 4%

63. Summary of Major P&L Components
63
Price 0% or 100% drop-through(!)
Mix 20-50% drop-through
Volume ~20% drop-through
Total Sales SEK 109bn
Salaries & expenses SEK 43bn, 3-4% inflation (1.2-1.5bn)
Raw material SEK 45bn total material, raw material 50%
Sourced products SEK 17bn
Savings projects Cost programs/efficiency
Fixed cost changes Planned changes
Net organic Net before currency and acquisition
Currency ~SEK 36bn in gross currency flows
Acquisitions Earnings contributions
Total

64. 64
The transformation
is paying off
Raw Material
Update

65. Raw material exposure
65
Carbon Steel
35%
Stainless Steel
8%
Plastics 35%
Aluminium &
Copper 9%
Other 12%

66. Steel
Global steel prices have been under pressure
66
600
640
680
720
760
800
840
880
920
960
1,000
1,040
1,080
Jan 10
Mar 10
May 10
July 10
Sept 10
Nov 10
Jan 11
Mar 11
May 11
July 11
Sept 11
Nov 11
Jan 12
Mar 12
May 12
July 12
Sept 12
Nov 12
Jan 13
Mar 13
May 13
July 13
Sept 13
Nov 13
Jan 14
Mar 14
May 14
July 14
Sept 14
Nov 14
In USD$/Mton
CRU Germany USD/t CRU US Midwest USD/t CRU China USD/t
MONTHLY

67. 0
20
40
60
80
100
120
140
120
130
140
150
160
170
180
190
200
210
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Average Feed Stock Index
2012
177
2013
185
2014
188
Plastics
Stable price outlook so far into the year
67
Weighted index of key feedstocks where 100 = average 2009
Annually
Monthly
Crude Oil Brent, $US

68. 68
The transformation
is paying off Currency Impact

69. Transactional Currency Effects
69
• In general, earnings for Electrolux benefit from a:
– Weak USD, EUR, HUF, THB, MXN and CNY (export countries)
– Strong BRL, RUB, ARS, CAD, CHF, AUD and GBP (import countries)
• In countries with large manufacturing and logistic centers, effects over
time will to a large extent balance out due to natural hedging.
• Currencies are accounted for GROSS. Over time no effect.

70. -6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
BRL GPB AUD CAD CHF RUB CLP ARS CNY EUR USD
Gross Currency Flows
70
 Largest currency flows over
12 months
 In total, 80 significant currency pairs
 Total flows around SEK 36bn
SEKm Currency exposure 2014
GBP

71. Currency Effects
71
Major transaction effects, SEKm Q1 Q2 Q3 Q4
BRL -200 -80 -15
ARS, CLP, VEF, COP -130 -50 -50
CNY -1 -70 -45
AUD -75 -35 -20
RUB -15 -25 -5
Total -565 -420 -160
Translation effects, SEKm -55 -10 +40
Total currency effects, SEKm -620 -430 -120
Price and mix effects, SEKm 900 740 450

72. 72
The transformation
is paying off Restructuring Update

73. Cost savings programs
Previously communicated
73
Savings from
Overhead
costs
Savings from
Global
Operations
Savings from programs have full effect in 2016
Savings from
Manufacturing
footprint
Saving 1.1bn
Cost 3.2bn
Saving 3.0bn
Cost 1.2bn
Saving 1.1bn
Cost 1.2bn

74. 74
The transformation
is paying off Cash Flow

75. 3,871
5,273
2,283
6,337
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 LTM
Free Operational Cash Flow
Cash flow, 2011-2014
75
SEKm
• Driven by increased EBITDA, working capital
improvement and optimization of capital
expenditure
• SEK 4.8bn of cash generated year-to-date and
over SEK 6bn generated over the last 12 months
0%
100%
2008 Current
Structural change of capex
• Capital expenditure will structurally change
• Capital expenditure will be more related to
launching new products
Products
Factory
Other

76. Cash flow per quarter, 2011-2014
76
SEKm
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2012 2013 2014
Free Operational Cash Flow

77. Working Capital
SEK 7bn released since 2008…
77
• The Group’s NOWC has decreased by
SEK 7bn since 2008
• Focus on NOWC as key driver for value
creation
• Structured approach to “process improvement”
with dedicated global resources
• Inventory
– Complexity reduction
– Modularization
17,499 12,007
17.4%
10.9%
9.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2008 2009 2010 2011 2012 2013 2014
YTD
Avg. NOWC NOWC % of Net sales

78. 78
The transformation
is paying off Summary

79. Summary - Financial Development
79
• Earnings
– Profit recovery in Europe as cost take-out initiatives continues and positive product/mix focus
– North America a large contributor to overall Group results, despite DOE transition challenges
– Defending earnings in Latin America and Asia through pro-active cost actions
– Currency impacts are mitigated
• Cash Flow performance is strong
• Focus on RONA first, then growth

80. Q&A