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

                                                                   EBIT amounted to SEK 38m,
                  EBIT (SEKb)         EBIT margin (%)

                                                                   excluding items affecting
2500                                                         10%

                                                                   comparability
2000                                                         8%

                                                                   Restructuring in China, Italy
1500                                                         6%

                                                                   and Russia
1000                                                         4%

                                                                   Continued weak demand in all
 500                                                         2%
                                                                   major markets
   0                                                         0%
                                                                   Negative currency impact
         Q1      Q2   Q3   Q4    Q1   Q2   Q3   Q4      Q1
 -500                                                        -2%
                 2007                  2008          2009
                                                                   Strong cash flow
-1000                                                        -4%
                                                                   Ongoing cost-cutting measures
                                                                   are giving result
                        Q1 2008               Q1 2009
    (SEKm)
        Sales              24,193               25,818
                                                                   Price increases in Europe
        EBIT                    -39                  38
                                                                   US launch โ€“ net negative
        Margin              -0.2%                 0.1%
                                                                   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

                                                                  Weak market
                 EBIT (SEKm)        EBIT margin (%)

                                                                  Lower sales
1000
                                                           10%
 800
                                                                  Underlying result in line with
 600
                                                                  previous year
                                                           5%
 400
                                                                   โ€“   Lower volumes
 200
                                                                   โ€“   Reduced capacity utilization
                                                           0%
   0
        Q1      Q2   Q3   Q4   Q1   Q2   Q3    Q4    Q1
                                                                   โ€“   Price increases
-200
                2007                   2008         2009 -5%
-400                                                               โ€“   Cost reductions
-600
                                                                  Weak market and negative
-800                                                       -10%
                                                                  currency impact for floor-care
                                                                  products
                          Q1 2008             Q1 2009
   (SEKm)
       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%
                                                                            -15% -31%
                                                                      4%
                                                                5%
East. Europe   1%   9%   6%   7%   14%   5%   5%    10%   6%

                                                                                         6
Consumer Durables
North America

                EBIT (SEKm)        EBIT margin (%)
                                                                  Weak market
700                                                         14%
                                                                  โ€“ Lower sales in comparable
600                                                         12%
                                                                    currencies
500                                                         10%
400                                                         8%
                                                                  Market-share gain
300                                                         6%

                                                                  SEK 200m negative net
200                                                         4%
100                                                         2%
                                                                  impact of US launch
  0                                                         0%
        Q1   Q2    Q3   Q4    Q1   Q2    Q3   Q4     Q1
-100                                                        -2%
                                                                  Increased raw-material costs
-200                                               2009 -4%
                2007                  2008
                                                                  Floor Care: Lower sales
-300                                                    -6%

                                                                  partly mitigated by improved
                                                                  mix and price increases
   (SEKm)               Q1 2008               Q1 2009
       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*
                                                                     2009
             2006                  2007                2008




                                                                      8
9
Consumer Durables
Latin America

                                                                  Declining demand in Brazil
                 EBIT (SEKm)        EBIT margin (%)

                                                             8%
300
                                                                  Market-share gain
250
                                                             6%
                                                                  Operating income lower than
200

                                                                  last year
150                                                          4%
100
                                                                  โ€“ Large negative currency
                                                             2%
 50
                                                                    impact
  0                                                          0%
                                                                  โ€“ Product mix
       Q1   Q2     Q3   Q4     Q1   Q2   Q3    Q4     Q1
                2007                  2008            2009
                                                                  Price increases

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


                                                                                              10
Consumer Durables
Asia/Pacific & Rest of world

                                                                   Australia/New Zealand
                  EBIT (SEKm)        EBIT margin (%)

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


                                                                                              11
Professional Products

                                                                Food-service
                EBIT (SEKm)        EBIT margin (%)

                                                          14%
250
                                                                โ€“ Weak demand
                                                          12%
200
                                                                โ€“ Lower capacity utilization
                                                          10%
150                                                       8%
                                                                โ€“ Cost reductions
                                                          6%
100
                                                                Laundry
                                                          4%
 50
                                                          2%
                                                                โ€“ Lower sales volumes and
  0                                                       0%
                                                                  capacity utilization
       Q1   Q2    Q3   Q4     Q1   Q2   Q3   Q4      Q1
             2007                   2008          2009
                                                                โ€“ Improved price and mix
                                                                โ€“ Positive impact by M&A
                        Q1 2008               Q1 2009
      (SEKm)
                                                                  savings
        Sales             1,753                 1,727
        EBIT                   183                    105
       Margin                 10.4%                  6.1%



                                                                                         12
Market view business areas and
raw materials impact


                                 FY09
    Market demand       Q209
     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 โ€œforward-lookingโ€ 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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Q1 2009 Earning Report of Aktiebolagett Electrolux

  • 1. Q1 Results 2009 April 22, 2009 Hans Strรฅberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR
  • 2. Q1 Highlights EBIT amounted to SEK 38m, EBIT (SEKb) EBIT margin (%) excluding items affecting 2500 10% comparability 2000 8% Restructuring in China, Italy 1500 6% and Russia 1000 4% Continued weak demand in all 500 2% major markets 0 0% Negative currency impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -500 -2% 2007 2008 2009 Strong cash flow -1000 -4% Ongoing cost-cutting measures are giving result Q1 2008 Q1 2009 (SEKm) Sales 24,193 25,818 Price increases in Europe EBIT -39 38 US launch โ€“ net negative Margin -0.2% 0.1% 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 Weak market EBIT (SEKm) EBIT margin (%) Lower sales 1000 10% 800 Underlying result in line with 600 previous year 5% 400 โ€“ Lower volumes 200 โ€“ Reduced capacity utilization 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 โ€“ Price increases -200 2007 2008 2009 -5% -400 โ€“ Cost reductions -600 Weak market and negative -800 -10% currency impact for floor-care products Q1 2008 Q1 2009 (SEKm) 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% -15% -31% 4% 5% East. Europe 1% 9% 6% 7% 14% 5% 5% 10% 6% 6
  • 7. Consumer Durables North America EBIT (SEKm) EBIT margin (%) Weak market 700 14% โ€“ Lower sales in comparable 600 12% currencies 500 10% 400 8% Market-share gain 300 6% SEK 200m negative net 200 4% 100 2% impact of US launch 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -100 -2% Increased raw-material costs -200 2009 -4% 2007 2008 Floor Care: Lower sales -300 -6% partly mitigated by improved mix and price increases (SEKm) Q1 2008 Q1 2009 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* 2009 2006 2007 2008 8
  • 9. 9
  • 10. Consumer Durables Latin America Declining demand in Brazil EBIT (SEKm) EBIT margin (%) 8% 300 Market-share gain 250 6% Operating income lower than 200 last year 150 4% 100 โ€“ Large negative currency 2% 50 impact 0 0% โ€“ Product mix Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Price increases Q1 2008 Q1 2009 (SEKm) Sales 2,404 2,625 EBIT 156 50 Margin 6.5% 1.9% 10
  • 11. Consumer Durables Asia/Pacific & Rest of world Australia/New Zealand EBIT (SEKm) EBIT margin (%) 200 8% โ€“ Market-share gain 180 7% 160 โ€“ Price increases 6% 140 5% 120 โ€“ Cost reductions 100 4% 80 3% โ€“ Negative currency impact 60 2% 40 Closure of Changsha 1% 20 0 0% factory in China Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Positive price and mix in Southeast Asia Q1 2009 (SEKm) Q1 2008 Sales 2,145 2,228 EBIT 60 105 Margin 2.8% 4.7% 11
  • 12. Professional Products Food-service EBIT (SEKm) EBIT margin (%) 14% 250 โ€“ Weak demand 12% 200 โ€“ Lower capacity utilization 10% 150 8% โ€“ Cost reductions 6% 100 Laundry 4% 50 2% โ€“ Lower sales volumes and 0 0% capacity utilization Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 โ€“ Improved price and mix โ€“ Positive impact by M&A Q1 2008 Q1 2009 (SEKm) savings Sales 1,753 1,727 EBIT 183 105 Margin 10.4% 6.1% 12
  • 13. Market view business areas and raw materials impact FY09 Market demand Q209 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 โ€œforward-lookingโ€ 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