Electrolux Report Final Total

8/17/2019 Electrolux Report Final Total

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AProject Study Report

On Titled“SUPERVISION AND BRAND SATISFACTION OFELECTROLUX PRODUCTS ”

Submitted in partial fulfillment for the Award of degree of

Master of Business A !inistration "MBA#

Submitted By Submitted To

Name of Student: Syed Sadiq Hussain Dr. Manish JainClass : MBA I Sem Head of the De!artment"T# "oll No. $$MAI%%&'( De!artment of Mana)ement

A"*A INSTIT#T+ ,- +N IN++"IN / T+CHN,0, *1#1AS2 JAI3#" 4"AJ.5

67$$8$'


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Prefa$e

“Learning categorizes you and practicing on that learning specialize you “.

Each and every theory being taught in acade ic institutes can only beco e !ruit!ul i! used

practically. The i portance o! any acade ic courses "ould gain advantage and acceptance o!

true !or # only through practical e$perience. %ence it is &uite necessary to put theories as into

tas'. ( did it "ith y project.

All organizations !ace change in their environ ent "ith resultant change in their ar'et and in

their ability to satis!y their ar'et. Each organization has to !ace ne" ar'eting proble s and

opportunities in their e$isting and potential ar'et.

The changing trends and ne" s'ills being adopted by the e ployees in such a syste atic "ay

by getting various training sessions "hich help the to a'e use o! these ne" trends and

technologies.

This practical 'no"ledge has ade one thing clear in y ind that to 'eep you on the zenith

one has to 'eep hi sel! changing "ith ti e.

This Project is a part o! curriculu o! )*A progra at the depart ent o! business

ad inistration o! RA+AST%A, TE-%,(-AL ,(/ERS(T0# 1ota. The ain objective o! this

project is to “Supervision 2 *rand Satis!action o! Electrolu$ Products3.

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A$%no&'e (e!ent

( e$press y "ar est than's 2 deep sense o! gratitude to the individuals !or their generoushelp in discussing the project and giving their valuable ti e in success!ul co pletion o! thisproject. Ti e to ti e ( got constructive suggestions# guidance and encourage ent.

( "ould li'e to e$press y deep than's to Dr) Ar*in A(ar&a'+ Presi ent+ Ar,a -rou. of Co''e(es and Prof) M) L) -u.ta+ Prin$i.a'+ Ar,a Institute of En(ineerin( / Te$0no'o(,+1ai.ur !or e$tending e the opportunity o! presenting the 4inal year project and providing allthe necessary resources !or this purpose.5ith uch pride and delight ( "ould li'e to e$press y sincere than's to Dr) Manis0 1ain"2ea of t0e e.art!ent# !or his e$cellent guidance and valuable suggestions throughout theproject "or'. ( e$press heart!elt than's to Mr) 2ites0 Ti%,ani 6Project 7uide8 !or her "onder!ulsupport and !or giving e an opportunity to present project report on “SUPERVISION ANDBRAND SATISFACTION OF ELECTROLUX PRODUCTS”

( also "ant to give y hu ble regards to Ms) Pa !a S0ar!a+ Mr) Pra!o S0ar!a+ Ms)Nis0a -o,a'+ Mr) Ans0u' Mat0ur+ Ms) An%ita Paree% # Ms) S0a*i%a+ Ms) S0i*a'i+ Ms) Monaan Ms) Us0a !or their valuable support and believe in y "or'. 5ithout their sustainedinterest and encourage ent# this "or' could not have been possible to reach the state o! co pletion "ith satis!action. (n !act it is their real devotion to the develop ent "or'# "hichinstilled in e# the need o! a passionate co it ent to pursue this project.

( a also grate!ul to all y !riends !or providing critical !eedbac' and support "henever re&uired. There are ti es in such projects "hen the cloc' beats you ti e and again and yourun out o! energy# you just "ant to !inish it once and !orever. Parents ade e endure suchti es "ith their un!ailing hu our and "ar "ishes.

( regret !or any inadvertent o issions.

,a e o! Student S3ED SADI4 2USSAIN

-lass )*A (/ SE)

RT Roll ,o. 99)A(::;


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E5e$uti*e Su!!ar,

(n order to obtain an estee ed position and oreover aintain this position innovation ideas

are re&uired. The path o! replication doesn>t give success. (n odern era# "here custo er is

beco ing ore and ore i portant organization should beco e ore innovative.

There are varieties o! !actors# "hich have pro pted countries?!ir s to venture in the global

ar'et@

• Recession in do estic ar'et# and overseas opportunities.

• 7overn ent incentives.

•

E ergence o! global consu ers in any product !ields.

*ut in all these conditions success goes to those co panies that atched to the current

environ ent i peratives and are ready to deliver "hat people "ant to buy.

(t is y goodness that in such 'ind o! co petitive era ( joined Electrolu$ ltd !or Project. A!ter

visiting all o! the above depart ents ( ca e to 'no" about the sales and distribution#

ar'eting.

At the end o! y !or al introduction to the co pany and its other depart ents ( have assigned

to "or' on the project “Su.er*ision / Bran Satisfa$tion of E'e$tro'u5 Pro u$ts” .

(t "as learning e$perience !or e. ( ca e in close contact "ith ar'et trends and learned

about various advantageous things to be achieved in the ar'et.

-o pany can have co petitive edge over its co petitors in do estic as "ell as international

ar'et. (t "as the best opportunity !or e to study such an i portant subject# "hich gave e

great industrial e$posure and also an introduction to corporate "orld.

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Co*er Pa(e

Certifi$ate

Prefa$e 6

A$%no&'e (e!ent 7

E5e$uti*e Su!!ar, 8

Contents

9) Intro u$tion :

9)9 Strate(, ;

9)6 Pro u$t De*e'o.!ent 9<

9)= Strate(, for (ro&t0 98

6) Or(ani>ation / Po'i$ies 9?

6)9 -o*ernan$e Stru$ture 9@

6)6 O&ners0i. 9;

6); -rou. Lea ers0i. 6?

7) T0e a, e or% 7=

7)6 Sustaina 'e -o*ernan$e 7=

7)7 Mana(e!ent A..roa$0 7?

7)8 Co e of Et0i$s 8<

7)= or%.'a$e Co e of Con u$t 87

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7): So$ia' Res.onsi i'it, =9

8) Our 2istor, =8

=) Bran s @8

=)9 E'e$tro'u5 !aster Bran @8

=)6 E'e$tro'u5 Professiona' :<

=)7 S.e$ia' Bran s :9

?) Pro u$ts :7

@) Inno*ation ;<

:) Life C,$'e ;7

;) Consu!er 2ea't0 / Safet, ;8

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9=)= Sa!.'e Desi(n 9


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9) Intro u$tion

Electrolu$ is a global leader in household appliances and appliances !or pro!essional use#

selling ore than B illion products to custo ers in ore than 9CB ar'ets every year. The

co pany !ocuses on innovations that are thought!ully designed# based on e$tensive consu er

insight# to eet the real needs o! consu ers and pro!essionals.

Electrolu$ products include re!rigerators# dish"ashers# "ashing achines# vacuu cleaners

and coo'ers sold under estee ed brands such as Electrolu$# AE7DElectrolu$# Eure'a and

4rigidaire. (n BB=# Electrolu$ had sales o! SE1 9BC billion and CC#BBB e ployees.

5ith revenues o! SF 9G billion in BB


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across its three plants and eighteen branch o!!ices. Electrolu$ currently has three stateDo!D

theart anu!acturing !acilities in (ndia located at Shahjahanpur 6Rajasthan8 and 5arora

6)aharashtra8 producing re!rigerators and *utibori 6)aharashtra8 producing "ashing

achines. Electrolu$ has a 99 per cent ar'et share in !ridges and a < per cent share in

"ashing achines.

;< ,ears of 'ea in( inno*ations an esi(n

A$el 5ennerD7ren# the !ounding !ather o! Electrolu$# established the principles by "hich the

co pany still thrives. %is drea to i prove &uality o! li!e has had !unda ental i pact on

ho es around the "orld. Today>s Electrolu$# JB years later# is a global leader in household

appliances and appliances !or pro!essional use.

“Thin'ing o! you3 e$presses the Electrolu$ o!!ering@ To aintain continuous !ocus on the

consu er# "hether it>s a &uestion o! product develop ent# design# production# ar'eting#

logistics or service.

9)9 Strate(,

Electrolu$ continues to "or' intensively on i proving pro!itability. On the basis o! a co petitive

production syste # a ong others# strong invest ents in ne" products !or the highDprice

seg ents and a strong Electrolu$ brand "ill enable the 7roup to achieve the longDter goal o!

an operating argin o! ;K.

• Electrolu$ is an innovative# consu erDoriented co pany in "hich all product

develop ent gro"s out o! insight into consu er needs. “Thin'ing o! you3 is the basic

the e o! all operations# !ro initial contact "ith a consu er to installation and service o!

sold products. Planning o! ar'eting ca paigns is integrated at an early phase o!product develop ent# and all activities are coordinated !or a$i u i pact. This

creates a uni!or # po"er!ul i age o! Electrolu$ across all product categories and

ar'ets.

The Electrolu$ product o!!ering is i proved continuously through identi!ication o! rapid

gro"th seg ents# product categories# regions and sales channels. (n the interest o!10


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creating longDter co petitiveness# Electrolu$ is i ple enting a co prehensive

progra !or savings in production and purchasing# "hich involves relocating production

to and increasing purchases !ro lo"Dcost countries.

(n accordance "ith the established strategy# Electrolu$ has i ple ented e$tensive

changes "ithin !loorDcare operations as "ell as operations in Latin A erica# Australia#

Southeast Asia and Pro!essional Products. A ore e!!icient ar'eting organization has

been established in Europe. ( proved product o!!ering in the S has enabled an

esti ated ar'et share o! about CK in the pro!itable pre iu seg ent.

Electrolu$ strategy is the tool !or achieving the longDter goal o! an operating argin o!

;K. Electrolu$ is# there!ore# !ocusing !irst and !ore ost on@• -ontinuing to reduce production costs# partly through relocating production to lo"Dcost

countries.• ( proving operating inco e in Europe through a better product i$ and lo"er costs.

• Strengthening the position in the pre iu seg ent in ,orth A erica.

9)6 Pro u$t De*e'o.!ent

-onsu er insight is the basis o! all product develop ent "ithin Electrolu$. (denti!ying trends in

various custo er and consu er seg ents enables Electrolu$ to o!!er attractive products.

Products launched by Electrolu$ are developed on the basis o! the 7roup>s process !or

consu erDoriented product develop ent. These products are targeted to a greater e$tent than

previously on the higher price seg ents# "hich involves an i prove ent in the product i$.

Pro u$ts for s.e$ifi$ nee s an se(!ents

A large nu ber o! intervie"s "ith consu ers and visits to their ho es enables Electrolu$ to

identi!y global social trends and needs to "hich ne" products can be tailored. Product

develop ent is not initiated until a consu er need# "hich the ne" product "ill satis!y# has

been identi!ied# and the consu er seg ent has been targeted. Subse&uently# Electrolu$ can

o!!er products "ith appropriate !eatures# attractive design and resourceDe!!icient operation.

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Ne& a..'ian$es 'aun$0e in Nort0 A!eri$a 6


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Stren(t0enin( t0e E'e$tro'u5 ran

Electrolu$ is actively co itted to increasing the share o! products sold under the Electrolu$

brand. The brand is ainly positioned in the highDend o! the seg ents !or innovative products

"ith attractive design# lo" consu ption o! energy and "ater and cli ateDs art !unctionality.

Since BBB# 7roup sales o! Electrolu$Dbranded products# including those that are doubleD

branded# have risen !ro 9=K to al ost hal! o! sales. Al ost all 7roup appliances and

vacuu cleaners in Latin A erica and in Southeast Asia are Electrolu$branded. (n Europe#

these products have a C;K share that is gro"ing steadily. (n ,orth A erica and Australia# the

share o! Electrolu$Dbranded products is increasing !ro a lo" level.

Lar(est e*er .ro u$t 'aun$0 in Nort0 A!eri$a

4or any years# the 7roup has aintained a strong position in the ,orth A erican assD

ar'et seg ent through the 4rigidaire brand. (n BB # the Electrolu$ brand !or appliances "as

launched through the e$clusive Electrolu$ (-O,M series# "hich generated ar'et a"areness.

(n BB=# a co prehensive launch o! Electrolu$branded appliances "as i ple ented. The goal

is to achieve a substantial longDter position in the gro"ing pre iu seg ent# "hich sho"s

considerably higher pro!itability than the ass ar'et.

The launch "as the biggest ever !or the 7roup in ,orth A erica. 1itchen appliances "erelaunched in April and laundry appliances in Septe ber. The launch involved a assive

ar'eting ca paign that highlighted Electrolu$ e$perience in product develop ent and

European design. The a bassador !or the Electrolu$ brand in all advertising# including T/ and

the "eb# "as 1elly Ripa# a "ellD'no"n T/ personality in the S. She gave the launch "ide

publicity in A erican agazines and tal'Dsho"s. %er li!estyle corresponds "ith that o! a ajor

target group !or Electrolu$ N "o en age


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At yearDend BB=# appro$i ately 9CB 'itchen and laundry appliances "ere available at ore

than #BBB retailers throughout ,orth A erica. The average sales price !or an Electrolu$Dbranded product is three ti es the price !or a corresponding 4rigidairebranded product.

Lar(est e*er .ro u$t 'aun$0 in Euro.e

The 7roup>s largestDever product launch in Europe "as i ple ented in BBG. (t involved

replacing about BK o! the Electrolu$ product o!!ering in s

appliances "ill be produced in lo"Dcost countries# and savings "ill a ount to appro$i ately

SE1 < billion annually. )ore than hal! o! production is currently in lo"Dcost countries. All 7roup

vacuu cleaners are already produced in lo"Dcost countries.

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Every decision to relocate production is preceded by care!ul analyses o! a nu ber o! !actors#

including present and !uture laborDcost levels# transportation para eters# access to suppliers#

and closeness to !uture gro"th ar'ets. Such analyses have resulted in decisions on ne"

production !acilities in# e.g.# Poland# %ungary# )e$ico# -hina and Thailand. (n BB=# Electrolu$

opened a large# ne" plant in +uarez# )e$ico# !or production o! "ashing achines and tu bleD

dryers !or the ,orth A erican ar'et. This plant and the plant !or re!rigerators that "as

opened in BB; in +uarez no" e ploy about #GBB people.

Pro(ra! for !ore effi$ient .ro u$tion

Since BBC# the 7roup has "or'ed through the Electrolu$ )anu!acturing Syste 6E)S8# a

global progra !or increasing production e!!iciency. *ased on a nu ber o! proven ethods !or

i proving production that "ere developed both e$ternally and inDhouse# E)S has beeni ple ented in virtually all Electrolu$ plants# "ith great success. Sa!ety and the "or'ing

environ ent have been i proved# and so has product &uality. The success o! E)S has led to

lin'ages "ith other ajor invest ents and projects "ithin Electrolu$# such as purchasing and

product develop ent.

)anaged by Sustainability A!!airs# energyDreduction targets are coordinated through E)S. To

date# substantial -O e issions reductions and cost savings have been achieved. The

7roup>s over CB !actories are responsible !or e itting JBK o! direct -O e issions. The goal

is to reduce total energy consu ption by 9CK bet"een BBC and BBJ. This "ill generate cost

savings o! appro$i ately SE1 9BB annually.

9)= Strate(, for (ro&t0

Achieving Electrolu$ goal !or pro!itable gro"th re&uires a strengthened position in the higher

price seg ents# e$pansion o! operations in speci!ic product categories# and higher sales in

gro"th regions.

Although gro"th in the total ar'et !or household appliances is li ited in ter s o! value#

several clear and po"er!ul trends are driving strong gro"th in speci!ic product categories#

regions and sales channels. (denti!ying these trends# "ill enable Electrolu$ to i prove its

product o!!ering and thus create pro!itable gro"th.

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-reater s0are in 0i(0 .ri$e se(!ents

7ro"th in the ar'et !or household appliances is ainly in the lo"D and highDprice seg ents.

The 7roup>s invest ent in product develop ent and ar'eting is ai ed partly at increasing

the share o! products sold in the highDprice seg ents# "hich contributes to higher average

prices and argins. Electrolu$ launches o! innovative products in Europe and ,orth A erica

have strengthened the 7roup>s positions in the highDprice seg ents in these ar'ets. The

prices o! ne" products launched in the S are on average three ti es higher than previous

7roup products in the A erican ass ar'et.

Ra.i e5.ansion in (ro&t0 re(ions

Electrolu$ "ill increase sales in gro"th regions such as Eastern Europe# Latin A erica and a

large portion o! Asia. The 7roup has a strong presence in these regions in ter s o! sales andproduction. (n e erging ar'ets# de and !or odern appliances is sho"ing vigorous gro"th

as disposable inco e increases and a iddle class "ith strong purchasing po"er develops.

The 7roup>s local presence in the !or o! production !acilities and sales co panies together

"ith the "ide e$perience o! gro"th ar'ets generates opportunities !or continued e$pansion.

4or e$a ple# the strong position that Electrolu$ has achieved !or !rontDloaded "ashing

achines in Southeast Asia is the basis !or e$panding operations in ter s o! 'itchen

appliances.

Ne& .ro u$t $ate(ories are e*e'o.in(

Electrolu$ "or's continuously on identi!ying product categories "ith potential !or rapid and

pro!itable gro"th. The 7roup>s longstanding reputation !or a proactive approach to

sustainability contributes to a success!ul launch o! ne" products that consu e less energy and

"ater. Sales and pro!itability !or products "ith the highest energyDe!!iciency N the 7reen range

N are closely onitored and sho" a ore pro!itable trend than 7roup products as a "hole.

(n addition# certain product seg ents sho" uch higher gro"th than the corresponding

product category in general. Over the last !e" years# sales o! !rostD!ree !reezers and !rontD

loaded "ashing achines have increased ore than overall gro"th !or !reezers and "ashing

achines.

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6 Or(ani>ation / Po'i$ies

Electrolu$ operations are organized in si$ business sectors that include a total o! C product

lines. There are !our 7roup sta!! units. The 7roup has a decentralized corporate structure in

"hich overall anage ent o! operative activities is largely per!or ed by sector boards.

-rou. .o'i$ies an (ui e'ines

Electrolu$ ai s at i ple enting strict nor s and e!!icient processes to ensure that all

operations create longDter value !or shareholders and other sta'eholders. This involves the

aintenance o! an e!!icient organizational structure# syste s !or internal control and ris'

anage ent and transparent internal and e$ternal reporting.

-O)PASS "as initiated during BB= as a groupD"ide project. (ts ai is to clari!y joint

processes and i prove their e!!iciency in order to strengthen control and lo"er costs.

Transparent in!or ation also allo"s better decision data to be developed.

Electrolu$ has deter ined that all o! its operations "ill be underta'en on an environ entally#

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socially and ethically responsible basis. A proactive approach in this regard reduces ris's#

strengthens the brand# increases the otivation o! personnel and ensures good relations "ith

the individuals "ithin the co unities "ith "hich the 7roup interacts. 1ey policies in this

conte$t include the Electrolu$ -ode o! Ethics# the Electrolu$ 5or'place -ode o! -onduct and

the Electrolu$ Policy on -ountering -orruption and *ribery.

-rou. Mana(e!ent

7roup )anage ent includes the President# the si$ sector heads and the !our 7roup sta!!

heads.

Business se$tors

The si$ sector heads are e bers o! 7roup )anage ent and have responsibility !or the

inco e state ents and balance sheets o! their respective sectors. 5ithin )ajor Appliances#

the business sectors are geographically de!ined# "hile the sectors Pro!essional Products and

4loor -are and S all Appliances are global.

The overall anage ent o! the sectors is the responsibility o! sector boards# "hich eet

&uarterly. The President is the chair an o! all sector boards. The sector board eetings are

attended by the President# the anage ent o! the respective sectors and the -hie! 4inancial

O!!icer. The sector boards are responsible !or onitoring onDgoing operations# establishingstrategies# deter ining sector budgets and a'ing decisions on ajor invest ents.

(n the e$ternal reporting# the 7roup>s operations are divided into !ive business sectors.

Operations "ithin -onsu er Hurables are divided into !our geographic business areas@

Europe# ,orth A erica# Latin A erica and Asia?Paci!ic and Rest o! "orld. Pro!essional

Products is the !i!th business area.

6)9 -o*ernan$e Stru$ture

The Electrolu$ 7roup co prises ore than 9;B co panies "ith operations in over CB

countries. The parent co pany o! the 7roup is A* Electrolu$# a listed S"edish li ited

co pany. The co pany has its pri ary listing in Stoc'hol at the e$change ,ASHA O):

Stoc'hol . The governance o! Electrolu$ is based on the S"edish -o panies Act# the

regulatory syste o! ,ASHA O): Stoc'hol and the S"edish -ode o! -orporate

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group in the EuroclearDsyste or 6ii8 have ade public and noti!ied the co pany that they

have ade a "ritten agree ent to ta'e D through the coordinated e$ercise o! voting rights D a

co on longDter vie" on the anage ent o! the co pany. The na es o! the

representatives and the na es o! the shareholders they represent shall be announced as soon

as they have been appointed.

That i!# during the ter o! o!!ice o! the no ination co ittee# one or ore o! the shareholders

having appointed a representative to the no ination co ittee no longer is a ong the !our

largest shareholders "ith regard to the nu ber o! votes held# representatives appointed by

these shareholders shall resign and the shareholder or shareholders "ho then are a ong the

!our largest shareholders "ith regard to the nu ber o! votes held# ay appoint their

representatives. nless there are special circu stances# no changes shall be ade in theco position o! the no ination co ittee i! there are only arginal changes in the nu ber o!

votes held or i! the change occurs later than three onths be!ore the Annual 7eneral )eeting.

A shareholder that has beco e one o! the !our largest shareholders on account o! any ore

signi!icant change in the nu ber o! votes held later than three onths be!ore the Annual

7eneral )eeting shall# ho"ever# be entitled to appoint a representative "ho shall be invited to

participate in the co ittee>s "or'. A shareholder "ho has appointed a representative as

e ber o! the no ination co ittee has the right to dis iss such e ber and appoint a ne"

representative as e ber o! the co ittee. -hanges in the co position o! the no ination

co ittee shall be announced as soon as they have occurred.

That the no ination co ittee shall prepare the belo" proposals to be sub itted to the

Annual 7eneral )eeting B9B !or resolution@

a8 Proposal regarding -hair an o! the 7eneral )eeting#

b8 Proposal regarding the *oard o! Hirectors#

c8 Proposal regarding -hair an o! the *oard o! Hirectors#

d8 Proposal regarding Hirectors> !ees !or each o! the Hirectors as "ell as re uneration !or

co ittee "or'#

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e8 Proposal regarding Auditor# Proposal regarding Auditor>s !ees# and

g8 Proposal regarding no ination co ittee !or the Annual 7eneral )eeting in B99.

That the no ination co ittee# "hen per!or ing its duties# shall !ul!il the tas's that other"ise

rest upon the no ination co ittee under the S"edish -ode on -orporate 7overnance

including# i.a.# to provide the co pany "ith certain in!or ation in order to enable the co pany

to !ul!il its in!or ation obligation under the -ode and to# upon re&uest o! the no ination

co ittee# provide personnel resources such as secretary !unction !or the no ination

co ittee to !acilitate the "or' o! the co ittee. (! needed# the co pany shall also be able to

pay reasonable costs !or e$ternal consultants that the no ination co ittee dee s necessaryin order !or the co ittee to be able to !ul!il its assign ent.

6)8 -enera' Meetin(

The decisionD a'ing rights o! shareholders in A* Electrolu$ are e$ercised at 7eneral )eetings

o! shareholders.

The decisionD a'ing rights o! shareholders in Electrolu$ are e$ercised at shareholders>

eetings. The Annual 7eneral )eeting 6A7)8 o! Electrolu$ is held in Stoc'hol # S"eden#

during the !irst hal! o! the year. The A7) resolves on@

The adoption o! the annual report

Hividends

Election o! *oard e bers and# i! applicable# auditors

Re uneration to *oard e bers and auditors

7uidelines !or re uneration to 7roup )anage ent Other i portant atters

E$traordinary 7eneral )eetings 6E7)8 ay be held at the discretion o! the *oard or# i!

re&uested# by the auditors or by shareholders o"ning at least 9BK o! the shares.

Participation in decisionD a'ing re&uires the shareholder>s presence at the eeting# either

personally or through a pro$y. (n addition# the shareholder ust be registered in the share

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register at a prescribed date prior to the eeting and ust provide notice o! participation in the

anner prescribed. Additional re&uire ents !or participation apply to shareholders "ith

holdings in the !or o! A erican Hepositary Receipts 6AHR8 or si ilar certi!icates. %olders o!

such certi!icates are advised to contact the AHR depositary ban'# the !und anager or the

issuer o! the certi!icate in good ti e be!ore the eeting in order to obtain additional

in!or ation.

(ndividual shareholders re&uesting that a speci!ic issue be included in the agenda o! a

shareholders> eeting can nor ally re&uest the Electrolu$ *oard to do so in good ti e prior to

the eeting via an address provided on the 7roup>s "ebsite.

Hecisions at the eeting are nor ally ta'en on the basis o! a si ple ajority. %o"ever# asregards certain issues# the S"edish -o panies Act stipulates that proposals ust be

approved by shareholders representing a greater share o! votes cast and shares represented

at the eeting.

6)= Votin( Ri(0ts

T0e s0are $a.ita' of AB E'e$tro'u5 $onsists of A s0ares an B s0ares)

An ADshare entitles the holder to one vote and a *Dshare to oneDtenth o! a vote. All shares

entitle the holder to the sa e proportion o! assets and earnings and carry e&ual rights in ter s

o! dividends

Boar Co!.osition

The Electrolu$ *oard o! Hirectors consists o! nine e bers "ithout deputies "ho are elected

by the Annual 7eneral )eeting !or a period o! one year. Three additional e bers# "ithdeputies# are appointed by the S"edish e ployee organizations# in accordance "ith S"edish

labor la"s.

The A7) elects the -hair an o! the *oard. Hirectly a!ter the A7)# the *oard holds a eeting

!or !or al constitution at "hich the Heputy -hair an o! the *oard is elected# a ong other

things. All e bers o! the *oard# e$cept !or the President# are non e$ecutive e bers. Three23


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o! the nine *oard e bers are not S"edish citizens.

E*a'uation of in e.en en$e

The *oard is considered to be in co pliance "ith the re&uire ents !or independence o!,ASHA O): Stoc'hol . )arcus 5allenberg has been considered independent in relation to

the co pany and the anage ent o! the co pany# but not in relation to ajor shareholders o!

Electrolu$. %ans StrQberg has been dee ed to be independent in relation to ajor

shareholders o! Electrolu$# but not# in his capacity as President and -EO# in relation to the

co pany and the anage ent o! the co pany. %ans StrQberg has no ajor shareholdings#

nor is he a parto"ner in co panies that have signi!icant business relations "ith Electrolu$. As

already entioned# %ans StrQberg is the only e ber o! 7roup )anage ent "ith a seat onthe *oard.

Co!!ittees

The *oard has established a Re uneration -o ittee and an Audit -o ittee. The ajor

tas's o! these co ittees are preparatory and advisory# but the *oard ay delegate decisionD

a'ing po"ers on speci!ic issues to the co ittees. The e bers and -hair en o! the

-o ittees are appointed at the *oard eeting !ollo"ing election. The *oard has alsodeter ined that issues ay be re!erred to ad hoc co ittees dealing "ith speci!ic atters

6)? Boar s or%

The ain tas' o! the Electrolu$ *oard is to anage the 7roup>s operations in such a anner

as to assure the o"ners that their interests# in ter s o! a longDter good return on capital# are

being et in the best possible anner. The *oard>s "or' is governed by rules and regulations

including the S"edish -o panies Act# the Articles o! Association# the -ode and the "or'ingprocedures established by the *oard.

The board deals "ith and decides on 7roupDrelated issues such as@

• )ain goals

• Strategic orientation24


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• ( portant policies

• Essential issues related to !inancing# invest ents# ac&uisitions and divest ents

• 4ollo"Dup and control o! operations# co unication and organization# including evaluation

o! the 7roup>s operative anage ent• Appoint ent o! and# i! necessary# dis issal o! the President

• Overall responsibility !or establishing an e!!ective syste o! internal control and ris'

anage ent

T0e Boar s &or% in 6


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• Hecision that a soDcalled green range# consisting o! products "ith high environ ental

per!or ance# "ill be de!ined and i ple ented by each sector.• Hecision to reduce the nu ber o! e ployees by ore than


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The Electrolu$ process !or internal control and ris' anage ent related to !inancial reporting is

designed to provide reasonable assurance regarding the reliability o! !inancial reporting and

the preparation o! !inancial state ents !or e$ternal purposes in accordance "ith applicable

la"s and regulations# generally accepted accounting principles and other re&uire ents !or

listed co panies.

The process is based on the control environ ent and co prises !our ain activities@ Ris'

assess ent# control activities# in!or ation and co unication# and onitoring# as de!ined in

the !ra e"or' !or internal control issued by the -o ittee o! Sponsoring Organizations o! the

Tread"ay -o ission 6-OSO8.

The *oard has overall responsibility !or establishing an e!!ective syste o! internal control and

ris' anage ent. The *oard has deter ined its "or'ing procedures# "hich include the

allocation o! tas's to *oard e bers. The *oard has established an Audit -o ittee# "hich

assists the *oard in overseeing relevant anuals# policies and i portant accounting principles

applied by the 7roup in !inancial reporting# as "ell as changes in these principles.

Responsibility !or aintaining an e!!ective control environ ent and operating the syste !or

ris' anage ent and internal control o! !inancial reporting is delegated to the President.

)anage ent at various levels has operational responsibility "ithin their respective areas.

6); -rou. Lea ers0i.

The Electrolu$ 7roup is led by the *oard o! Hirectors and the 7roup )anage ent Tea .

The *oard decides on issues related to the 7roup>s ain goals# strategic orientation and ajor

policies# as "ell as i portant issues related to !inancing# invest ents# ac&uisitions and

divest ents.

(n addition to the President and -EO# 7roup )anage ent includes the si$ sector heads and

the !our 7roup sta!! heads. The President and -EO is responsible !or ongoing anage ent o!

the 7roup in accordance "ith the *oard>s guidelines and instructions

Boar of ire$tors27


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The *oard o! Hirectors consists o! nine e bers# "ithout deputies# "ho are elected by the

Annual 7eneral )eeting !or a period o! one year. Three e bers "ith deputies are appointed

by the S"edish e ployee organizations# in accordance o! S"edish labor la"s.

Mar$us a''en er(

C0air!an

*orn 9JC;. *. Sc. o! 4oreign Service. Elected BBC. )e ber o! the

Electrolu$ Re uneration -o ittee.

Boar C0air!an o! SE*# S'andinavis'a Ens'ilda *an'en A* and Saab A*. %onorary

-hair an o! (-- 6(nternational -ha ber o! -o erce8. Heputy -hair an o!

Tele!ona'tiebolaget L) Ericsson. *oard )e ber o! Astra eneca Plc# Stora Enso Oyj# the

1nut and Alice 5allenberg 4oundation and Te ase' %oldings Li ited.

Pre*ious .ositionsG President and -EO o! (nvestor A*# 9JJJN BBC. E$ecutive /iceDPresident

o! (nvestor A*# 9JJ


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9JJGN9JJ=. President and -EO o! A** 4inancial Services A*# 9JJ9N9JJG.

2o' in(s in AB E'e$tro'u5G ;#CBB *Dshares.

2asse 1o0ansson

*orn 9J J. ). Sc. in Electrical Engineering. Elected BB=. E$ecutive

/ice President and %ead o! Research and Hevelop ent o! Scania A*#

since BB9.

Pre*ious .ositionsG 4ounder o! )ecel A* 6part o! Helphi -orporation8.

Senior anage ent positions "ith Helphi -orporation# 9JJBD BB9.

2o' in(s in AB E'e$tro'u5G B shares.

1o0n S) Lu.o

*orn 9J ;. *.Sc. in )ar'eting. Elected BBG.

Boar Me! er o! Spectru *rands (nc.# -iti Trends (nc. and -obra Electronics -orp.# SA.

Pre*ious .ositionsG Principal o! Renaissance Partners# BBBD BB=. E$ecutive /iceDPresident

o! *asset 4urniture# 9JJ=N BBB. -hie! Operating O!!icer o! 5alD)art (nternational# 9JJ;N9JJ=.

Senior /iceDPresident )erchandising o! 5alD)art Stores (nc.# 9JJBN9JJ;.

2o' in(s in AB E'e$tro'u5G CBB AHR.

1o0an Mo'in

*orn 9JCJ. *.Sc. in Econ. Elected BBG. )e ber o! the Electrolu$

Re uneration -o ittee. President and -EO o! ASSA A*LO0 A* since

BBC.

29


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Boar Me! er o! ASSA A*LO0 A*.

Pre*ious .ositionsG -EO o! ,il!is'DAdvance# BB9N BBC. President o! (ndustrial Air Hivision#

Atlas -opco Airpo"er# *elgiu # 9JJ=N BB9. )anage ent positions "ithin Atlas -opco# 9J=


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*orn 9JC9. ).*.A. Elected BBG. )e ber o! the Electrolu$ Audit -o ittee.

Boar Me! er o! Eg ont 4onden# LE7O A?S# Pandora %olding A?S and )onbergDThorson

A?S# Hen ar'.

Pre*ious .ositionsG President and -EO o! *ang 2 Olu!sen a?s# BB9D BB=. E$ecutive /iceD

President o! LE7O Syste # 9JJJN BB9. Hivisional Hirector o! LE7O Syste # 9JJ;N9JJJ.

)anaging Hirector o! --( Europe# 9J==N9JJ;. )anaging Hirector o! AA S 7ra!i'# 9J=


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*orn 9JCC. Representative o! the S"edish -on!ederation o! Trade nions. Elected BB;.


-uni''a Bran t

*orn 9JC


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Peter Kar'sson

*orn 9J;C. Representative o! the S"edish -on!ederation o! Trade nions. Elected BB;.


Ben(t Li&Hn(

*orn 9J C. Representative o! the 4ederation o! Salaried E ployees in

(ndustry and Services. Elected BBC.


Se$retar, of t0e Boar

Ce$i'ia Vie&e(

*orn 9JCC. *. o! La". 7eneral -ouncel o! A* Electrolu$.

Secretary o! the Electrolu$ *oard since 9JJJ.

%oldings in A* Electrolu$@ 9=#= G *Dshares# 9C# J options.

6)9< Bi 'io(ra.0, 2ans Star er(

%ans StrQberg has served as President and -EO o! A* Electrolu$ since

April BB . %is priorities are clear@ Product develop ent based on

consu er insight# establishing Electrolu$ as a truly global brand# cost

e!!iciency# and talent anage ent.

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StrQberg 'no"s that product innovation is a 'ey to pro!itable gro"th as consu ers have

de onstrated their "illingness to spend ore !or products that eet their needs and

pre!erences. %e has co itted to increase invest ent in product develop ent !ro one

percent to about t"o percent o! sales over the co ing years. (n BB;# Electrolu$ had increased

invest ents in product develop ent to 9.= percent o! sales.

Product develop ent based on consu er insight is his passion. Huring his ti e as -EO and

head o! the !loorDcare sector# his tea developed Electrolu$ Trilobite # the "orld>s !irst

auto atic vacuu cleaner. Today# under his 7roup leadership# a rigorous product creation

process ensures greater precision# shorter lead ti es and shorter product cycles.

One o! the !irst goals StrQberg announced "hen he beca e -EO "as to establish Electrolu$

as a truly global brand. Speci!ically# he set a goal that t"oDthirds o! the 7roup>s products are to

be sold under the Electrolu$ na e by BBG. One i portant step in this area "as the

appoint ent o! a single global advertising agency that handles brandDbuilding activities. ,o"#

the nu ber o! products being branded or doubleDbranded is al ost CBK percent# co pared

"ith B percent in BB . Al ost GC percent o! the co panyUs ar'eting budget is spent on

building the Electrolu$ brand.

%ans StrQberg is the architect o! a ajor restructuring progra . (n BB # he announced theclosure o! seven !actories# "ith about hal! o! the re aining G !actories in high cost countries

at ris' to be closed or relocated by the end o! BB=. (n 4ebruary# BBC# he announced the spinD

o!! o! the co pany>s highly pro!itable outdoor business "hich "as co pleted by idD BB;.

StrQberg# "ho joined Electrolu$ in 9J=s ,orth A erican "hite goods operations. StrQberg

and his tea in ,orth A erica introduced a !rontDloading "ashing achine to the .S. ar'et#

and today the co pany has a signi!icant ar'et share "ith this product.

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(n 9JJ=# he beca e e$ecutive vice president and head o! the 7roup>s 4loorD-are and Light

Appliances sector# and also a e ber o! the 7roup anage ent tea .

Prior to his Electrolu$ years# StrQberg "or'ed at the S"edish E bassy in 5ashington# H.- as

an assistant to the technical attachW.

StrQberg "as born in 9JCG in S"eden. %e holds a aster>s degree in science and engineering

!ro the -hal ers niversity o! Technology# 7othenburg# S"eden. StrQberg is arried. %e

and his "i!e have t"o children.

7 T0e a, e or%

Our co it ent to sustainability is integrated throughout our organizationX!ro boardroo to

product designI !ro !actory !loor to ar'eting and co unications.

7roup codes# policies and initiatives help us secure an environ entallyDsound# ethicallyDdriven#

peopleD!ocused and sa!e "or'ing environ ent "here "e operate. 5e apply robust

anage ent syste s based on (SO9 BB9 and (SOJBB9. )ore than that# our o"n tailorD ade

AL4A progra 6A"areness D Learning D 4eedbac' D Assess ent8 anages -ode o! -onduct

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co pliance and through our EPA 6environ ental per!or ance assess ent8 "e anage

environ ental concerns.

5herever "e operate in the "orld# "e see' to be a responsible player. This also includes

e phasizing# onitoring and !ollo"ingDup that our suppliers de onstrate high standards !or

"or'place conduct and environ ental protection. 5e believe that running business this "ay

reduces ris' and enhances our longDter viability in the ar'etplace.

7)9 Sustaina i'it,

5e can a'e a positive contribution to sustainable develop ent both through our operations

and our products.

5e are continually "or'ing to reduce energy consu ption !ro products and e issions !ro

!actoriesI "or'ing to ensure that our e ployees and business partners are treated !airlyI and

striving to be a good neighbour in the co unities in "hich "e operate. (n this section# "e

describe ho" "e apply the concepts o! sustainability and outline ho" "e tac'le 'ey issues

a!!ecting our business.

7)6 Sustaina 'e -o*ernan$e

Electrolu$ is grounded on an e!!ective governance syste # based on universal values !or

conducting business. (t ensures that the sa e rules apply# no atter "here in the "orld "e

operate or the circu stance that arises.

Our codes are !ounded on conventions o! the (nternational Labour Organization and the OE-H

7uidelines !or )ultinational Enterprises and !urther re!lect our endorse ent o! the , 7lobal

-o pactUs ten principles. (n addition to the -ode o! Ethics# 5or'place -ode o! -onduct# Policyagainst -orruption and *ribery# and Environ ental Policy# Electrolu$ has a series o! businessD

related policies addressing such issues as !inancial reporting and disclosure as "ell as hu an

resources.

5e have incorporated assess ent tools and thirdDparty onitoring that allo" us to gauge our

per!or ance in relation to the Environ ental Policy and 5or'place -ode o! -onduct.

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nderstanding the concerns o! consu ers is central to the "ay "e do business. 0et "e are

accountable# and strive to be transparent# to any ore sta'eholders Xcusto ers#

e ployees# shareholders and others a!!ected by our operations. -ontinuous dialogue "ith

the also helps us anticipate nonD!inancial ris's and opportunities.

7)7 Mana(e!ent A..roa$0

4ully integrating sustainability into 7roup strategy and operations at all levels is 'ey to

aintaining success in the long ter .

The Electrolu$ organization is decentralized# "hich gives business units !le$ibility in eeting

consu er pre!erences and local ar'et re&uire ents. (n order to ensure a holistic approach#

groupD"ide per!or ance is onitored# training is coordinated and targets are aggregated.

Or(ani>ationa' res.onsi i'it,

The *oard assesses ethical ris's and opportunities annually. SustainabilityDrelated strategies

and policies are de!ined by 7roup )anage ent.

Each business area is responsible !or i ple entation. This helps ensure that learning can be

both leveraged across ar'ets and eet local needs. Responsibility covers environ ental

anage ent# hu an resources as "ell as health and sa!ety issues. (n addition# the business

areas anage the i pacts o! operations on co unities# both during operation and

restructuring.

7roup Sustainability A!!airs supports business areas and 7roup !unctions "ith e$pertise#

training# issue identi!ication and onitoring. Sustainability A!!airs is part o! 7roup Sta!!

-o unications and *randing.

7roup Purchasing is responsible !or co pliance "ith the -ode o! -onduct along the supply

chain. The Responsible Sourcing Progra enables the 7roup to aintain local presence and

support purchasers and suppliers "ith training# audits and develop ent activities. The

anager o! the progra reports to 7roup Sustainability A!!airs.

Po'i$ies37


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The Electrolu$ -ode o! Ethics co prises rules o! conduct !or the 7roupUs relations "ith

e ployees# shareholders# business partners and other sta'eholders.

Ele ents o! the Electrolu$ -ode o! Ethics are described in greater detail in the -ode o!

-onduct# the Policy on -ountering -orruption and *ribery# and the Environ ental Policy. All o!the above are based on universal standards o! business practice# including those o! the

(nternational Labour Organization and the OE-H 7uidelines !or )ultinational Enterprises.

-odes and policies also re!lect the Electrolu$ co it ent to the ten principles o! the ,

7lobal -o pact. The *oard revie"s ethical and sustainabilityDrelated policies on an annual

basis. All o! the above policies have been endorsed by 7roup )anage ent.

%u an resourceDrelated policies such as the 7randparent Principle and the Recruit entPolicy are designed to ensure !air and transparent hiring practices. The -o pensation Policy

de!ines a consistent approach to re uneration. The purpose o! the policy “Appoint ent o!

Senior )anagers3 is to ensure that Electrolu$ appoints the right people to achieve strategic

objectives in line "ith 7roup policies. Training o! the policy has been conducted throughout the

global %u an Resource co unity. -o pliance is !ollo"ed up annually. ,onDco pliant units

are re&uested to have short and longDter action plans in place.

E5terna' assuran$e

This 7R( su ary report# "hich is included in the Annual Report# is revie"ed by the

co pany>s auditors# Price5aterhouse -oopers.

Third party assurance o! co pliance "ith (SO 9 BB9 is i ple ented annually at all certi!ied

!acilities. (n addition# thirdDparty assurance o! co pliance "ith the -ode o! -onduct is

conducted "ithin ris'Dde!ined regions. Electrolu$ operates B plants in Asia# Latin A erica and

Eastern Europe. 9< o! these "ere audited during BB=# nine o! "hich e$ternally audited. (n

total# ; -ode o! -onduct audits too' place a ong suppliers# si$ o! "hich "ere e$ternally

audited.

Trainin( an !onitorin(

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(n order to integrate anage ent procedures throughout the 7roup# Electrolu$ runs training

progra s covering (SO9 BB9# the -ode o! -onduct# sa!ety and hu an resource progra s.

These are also supported by internal and third party per!or ance onitoring.

En*iron!enta' .erfor!an$e

7roup )anage ent has stipulated that an environ ental anage ent syste is to be

i ple ented !or each business area>s entire operation. All anu!acturing units "ith at least CB

e ployees are andated to be certi!ied according to (SO 9 BB9. (n BB=# J K o! all !actories

"ere certi!ied. ,e"ly ac&uired units ust co plete the certi!ication process "ithin three years

a!ter ac&uisition. Reducing energy use is a 7roup objective. Sustainability A!!airs is

responsible !or sharing best practice as "ell as onitoring per!or ance groupD"ide. Reduction

targets are i ple ented# ho"ever# pri arily through the Electrolu$ )anu!acturing Syste

6E)S8# a global progra !or i ple entation o! e!!icient production. (n addition# the E)S is

used !or onitoring and eli inating "aste and increasing sa!ety and &uality "ithin production

processes.

La or .ra$ti$es an 0u!an ri(0ts

At yearDend# the A"arenessDLearningD4eedbac'DAssess ent 6AL4A8 tool "as deployed in all

Electrolu$ business areas to easure ho" units have progressed relative to the -ode o!

-onduct and to assess the status o! health and sa!ety# as "ell as related anage ent

practices. Sustainability A!!airs provides business areas "ith !eedbac' and suggestions !or

i prove ents.

A 'ey priority is to ensure that groupD"ide policies are co unicated# "ith particular !ocus on

the -ode o! Ethics and the -ode o! -onduct.

Peo.'e *ision

The Electrolu$ People vision is to have an innovative culture "ith diverse# outstanding

e ployees that drive change and go beyond in delivering on the 7roup>s strategy and

per!or ance objectives. %u an resource policies# leadership progra s and an internal

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recruit ent tool help to realize the vision. Sustainability is included in induction progra s !or all

ne" senior anagers.

2ea't0 an safet,

(ndividual business areas are responsible !or ensuring that health and sa!ety is e!!ectively

anaged. Local units are responsible !or ta'ing action and reporting data in accordance "ith

prevailing la"s.

At Electrolu$ !actory !acilities# health and sa!ety is onitored through the Electrolu$

)anu!acturing Syste 6E)S8. (n BB=# sa!etyDper!or ance goals "ere de!ined.

So$iet,

The Electrolu$ public policy agenda is pri arily coordinated "ith industry organizations such

as the European Appliance (ndustry Association 6-E-EH8 and the A erican %o e Appliance

)anu!acturers Association 6A%A)8.

A public policy outco e currently supported by Electrolu$ in Europe is the creation o! ar'et

!ra e"or's that pro ote purchases o! energyDe!!icient appliances.

Electrolu$ observes neutrality "ith regard to political parties and candidates. ,either the

Electrolu$ na e# nor any resources controlled by 7roup co panies ay be used to pro ote

the interests o! political parties or candidates.

7)8 Co e of Et0i$s

The Electrolu$ 7roup -ode o! Ethics outlines both prescriptive and proscriptive ethical

standards that re&uire strict adherence !ro all e ployees and *oard e bers o! the

Electrolu$ 7roup# in all ar'ets and at all ti es.

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The -ode !or alizes the principles by "hich the 7roup conducts its relations "ith e ployees#

shareholders# business partners and others. Electrolu$ encourages suppliers# sales agents#

consultants and other business partners to adopt these principles.

T0e E'e$tro'u5 -rou. Co e of Et0i$s

The Electrolu$ 7roup is co itted to conducting its business and pursuing its interests in a

legal and ethical anner. The 7roup>s policy is to be a responsible corporate citizen. (llegal

behavior or actions by Electrolu$ or any person associated "ith the 7roup threaten to

under ine the 7roup>s reputation !or honesty and integrity# and "ill not be tolerated. Electrolu$

believes its e$cellent reputation contributes to business success.

(t is the responsibility o! e ployees and anage ent ali'e to ensure co pliance "ith this-ode o! Ethics. E ployees are encouraged and e$pected to report any incidents o! nonD

co pliance to relevant internal o!!icers# "ith the assurance that there "ill be no retaliation or

other negative conse&uences !or persons reporting in good !aith.

S$o.e of A..'i$ation

This -ode o! Ethics outlines both prescriptive and proscriptive ethical standards# "hich are to

be strictly !ollo"ed by all e ployees# o!!icers and *oard e bers o! the Electrolu$ 7roup# inall ar'ets and at all ti es. This -ode o! Ethics !or alizes the principles by "hich the 7roup

conducts its relations "ith e ployees# shareholders# business partners and other interests.

Electrolu$ encourages suppliers# sales agents# consultants and other business partners to

adopt these principles.

Le(a' Co!.'ian$e

As e bers o! a group "ith business activities in ore than CB countries around the "orld#

7roup co panies are subject to a "ide range o! legal re&uire ents. All e ployees# o!!icers

and *oard e bers in the Electrolu$ 7roup shall co ply in all their business activities "ith all

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applicable la"s# rules and regulations. (n situations "here local or national la" does not

provide ade&uate guidance# the 7roup applies its o"n policies and procedures. (n the event

that local or national la" con!licts "ith the principles contained in this code# the la" shall

prevail.

Re'ations &it0 Business Partners an Custo!ers

The Electrolu$ 7roup shall e$ercise !airness in all dealings "ith its business partners. The

7roup shall not o!!er custo ers or potential custo ers# or any representatives o! such entities#

any re"ards or bene!its in violation o! either applicable la"s or reasonable and generally

accepted business practices. -usto ers shall be treated honestly and e&uitably# and in a

anner that respects their independence.

A$$ountin( an Re.ortin(

All !inancial transactions by the Electrolu$ 7roup ust be reported in accordance "ith

generally accepted accounting practices as set !orth in applicable Electrolu$ accounting

policies# and as provided in local la"s and regulations. Accounting records ust sho" the

nature o! all transactions in a correct and nonD isleading anner. The 7roup is co itted to

ensuring transparency in its !inancial reporting. The 7roup has a policy o! !ull# !air and accurate

disclosure to ensure that the ar'et receives ti ely# co prehensive and understandable

in!or ation on an i partial basis. The Electrolu$ 7roup -ode o! Ethics 4ebruary 99# BB

Page 6 8

Conf'i$ts of Interest

4or the 7roup to operate in a !air and open anner# it is i portant that every e ployee avoid

any situation or interest "hich ight inter!ere "ith his or her judg ent regarding his or her

responsibilities to the 7roup# other e ployees# custo ers# suppliers and other partners.

A con!lict o! interest can arise# !or e$a ple# "here an e ployee or e ber o! his or her !a ily

6a8 has a !inancial interest that could a!!ect such e ployee>s judg entI

6b8 gains personal enrich ent through access to con!idential in!or ationI or

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6c8 isuses his or her position in the 7roup in a "ay "hich results in personal gain.

A con!lict o! interest can also arise "hen an e ployee# or a e ber o! his or her !a ily# has a

personal interest# direct or indirect# in any supplier or custo er o! the 7roup. (! an e ployee

believes he or she ay have a direct or indirect con!lict o! interest# he or she ust disclosesuch potential con!lict to anage ent. (! appropriate# anage ent shall revie" the atter in

conjunction "ith 7roup Legal A!!airs.

Po'iti$a' In*o'*e!ent

The Electrolu$ 7roup observes neutrality "ith regard to political parties and candidates.

,either the Electrolu$ na e# nor any resources controlled by any 7roup co panies# shall be

used to pro ote the interests o! political parties or candidates.

En*iron!enta' Prote$tion

The Electrolu$ 7roup strives to ensure that its products# services and production contribute to

sustainable develop ent. To this end# product design ai s to reduce adverse environ ental

i pact throughout the product li!e cycle# "hile resource and energy consu ption# "aste and

pollution are regularly onitored !or i prove ent. The 7roup ta'es a proactive approach

regarding environ ental legislation# and encourages suppliers to adopt the sa eenviron ental principles as those pursued by Electrolu$.

or%.'a$e Pra$ti$es

All Electrolu$ 7roup activities ust be conducted "ith respect !or hu an rights# e ployee

health and sa!ety# and the "ellDbeing o! local co unities in "hich the 7roup operates. ,o

7roup operating unit or e ployee shall tolerate underage or bonded laborI cultural# ethnic or

gender discri inationI or physical# psychological# se$ual or verbal abuse. 5ages shall e&ual or e$ceed levels speci!ied by applicable local la"# and all e ployees are !ree to e$ercise the right

to !or # join or re!rain !ro joining labor unions or other organizations devoted to collective

bargaining.

Res.onsi i'it, of Mana(ers an E!.'o,ees

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Electrolu$ 7roup anagers are responsible !or co unication o! the letter and intent o! this

-ode o! Ethics "ithin their organizations# and !or encouraging e ployees to reveal behavior

that ay be in con!lict "ith these principles. Reports o! violations o! this -ode o! Ethics ay be

sub itted anony ously and con!identially to the chair an o! the Electrolu$ Audit -o ittee.

There shall be no retaliation or other negative conse&uences !or persons reporting in good

!aith. 4ailure to co ply "ith the provisions o! this -ode o! Ethics can result in disciplinary

action. This -ode o! Ethics has been adopted by the Electrolu$ *oard o! Hirectors and can

only be a ended or "aived by the *oard. A end ents or "aivers 6to the e$tent they apply to

our -hie! E$ecutive O!!icer and?or our -hie! Ad inistrative O!!icer8 shall be disclosed

i ediately.

7)= or%.'a$e Co e of Con u$t

T0e E'e$tro'u5 -rou. or%.'a$e Co e of Con u$t

Electrolu$ has a long tradition o! providing sa!e and healthy "or'ing conditions# opportunities

!or education and health care# and care!ul accounting o! environ ental i pacts.

An i portant co ponent in these e!!orts is the Electrolu$ 5or'place -ode o! -onduct# "hich

"as adopted by 7roup )anage ent in early BB . The -ode de!ines ini u acceptable

"or' standards !or all people involved in the anu!acture and sale o! 7roup products D in all

countries# business sectors and occupations. (t is based on internationally recognized treaties

and agree ents# such as the core conventions o! the (nternational Labor Organization and the

OE-H 7uidelines !or )ultinational Enterprises.

The -ode covers@

• child labor

• !orced labor44


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• health and sa!ety

• nonDdiscri ination

• harass ent and abuse

•

"or'ing hours• co pensation

• !reedo o! association

• environ ental co pliance

The -ode o! -onduct is applicable at all Electrolu$ locations and co pliance is re&uired o!

suppliers. To !acilitate and support the introduction and onitoring o! the -ode o! -onduct# the

7roup has developed AL4A# an electronic co unication tool designed to support learning on

the -ode re&uire ents# collecting e$e plary and best practices and assessing the

per!or ance o! operating units "ith regard to the -ode.

or%.'a$e re uire!ents

This -ode o! -onduct is applicable to all locations and units "ithin the Electrolu$ 7roup# and

co pliance is re&uired o! our suppliers. Electrolu$ units are !ree to introduce and en!orce

stricter standards than re&uired in this -ode o! -onduct.

-enera' re uire!ents

a) La&s an re(u'ations

All Electrolu$ 7roup units# suppliers and subcontractors shall operate in !ull co pliance "ith

relevant la"s and regulations applicable to their operations and e ploy ent in the countries in"hich they operate. This is the ini u re&uire ent in all sections o! this -ode o! -onduct.

) Su..'iers an su $ontra$tors

45


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Suppliers shall agree to co ply "ith this -ode o! -onduct. (! suppliers use subcontractors !or

the production o! Electrolu$ group products# it is the responsibility o! the supplier to ensure that

the subcontractor co plies "ith the re&uire ents in this -ode o! -onduct. On re&uest# the

supplier shall be able to in!or Electrolu$ "hich subcontractors they use.

S.e$ifi$ re uire!ents

a) C0i' 'a or

-hild labor is not tolerated in any !or . nless local la" stipulates a higher age li it# no person

younger than the age !or co pleting co pulsory education or younger than 9C 6or 9 "hereper itted by (LO convention ,o. 9s social situation.

) For$e 'a or

4orced or involuntary labor is not tolerated in any !or . This includes prison# indentured and

bonded labor# and other !or s o! "or'ing against one>s o"n "ill or choice

$) 2ea't0 / safet,

All e ployees shall be provided "ith a sa!e and healthy "or'ing environ ent and# "hen

applicable# sa!e and healthy residential !acilities# "ith applicable local la" as a ini u . The

e ployer should ta'e appropriate action to prevent "or'place accidents or illnesses.

) Non is$ri!ination

Electrolu$ 7roup recognizes and respects cultural di!!erences. ,evertheless# all e ployees

shall be treated strictly according to his or her abilities and &uali!ications in any e ploy ent

46


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decisions# including but not li ited to hiring# advance ent# co pensation# bene!its# training#

layo!!s and ter ination.

e) 2arass!ent an a use

,o e ployee shall be subject to corporal punish ent or to physical# se$ual# psychological or

verbal harass ent or abuse. Earned "ages shall not be deducted as a !ine or penalty under

any disciplinary practice unless regulated under a collective bargaining agree ent or

recognized under la"s.

f) or%in( 0ours

Electrolu$ recognizes the need !or a healthy balance bet"een "or' and !ree ti e !or alle ployees. nless national regulations re&uire a lesser a$i u hours o! "or'# and e$cept

under e$traordinary business circu stances# e ployees shall not# on a regularly scheduled

basis# be re&uired to "or' a standard "or' "ee' o! ore than = hours per "ee' or a total

"or' "ee' o! ore than ;B hours 6including overti e8. E$cept in e$traordinary business

circu stances# all "or'ers shall be entitled to at least one day o!! in every sevenDday period.

() Co!.ensation

5ages# including overti e and bene!its# shall e&ual or e$ceed the level re&uired by applicable

la".

0) Free o! of asso$iation / ri(0t to $o''e$ti*e ar(ainin(

All e ployees are !ree to e$ercise their legal rights to !or # join# or re!rain !ro joining

organizations representing their interests as e ployees. ,o e ployee should be subject to

inti idation or harass ent in his or her peace!ul e$ercise o! these rights. The e ployer shallalso respect the e ployees> right to collectively bargain.

i) En*iron!enta' $o!.'ian$e

The Electrolu$ 7roup>s Environ ental Policy and Position State ents are valid !or all

Electrolu$ 7roup units. Suppliers and their subcontractors are e$pected to co ply "ith the

47


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re&uire ents in the position state ent “Restricted )aterials List3 in addition to local la"# and

are encouraged to !ollo" the Electrolu$ 7roup Environ ental Policy.

Monitorin( an $o!.'ian$e

)anage ent is responsible !or i ple enting and in!or ing e ployees o! their rights# duties

and responsibilities under this -ode o! -onduct. )anage ent is also responsible !or

aintaining ade&uate docu entation to de onstrate its and its suppliers> co pliance. As a

condition o! doing business "ith the Electrolu$ 7roup# suppliers ust authorize Electrolu$ and

its designated agents 6including third parties8 to per!or audits# including con!idential

e ployee intervie"s.

7)? Arti$'es of Asso$iation

ARTICLES OF ASSOCIATION OF AKTIEBOLA-ET ELECTROLUX

6-orporate (denti!ication ,o. CC;BBJD 9G=8 as "orded !ollo"ing the a end ents registered by

the S"edish -o panies Registration O!!ice on April 9G# BB=.

Arti$'e 9The na e o! the -o pany is A'tiebolaget Electrolu$. The -o pany is a public co pany

6publ8.

Arti$'e 6

The registered o!!ice o! the *oard o! Hirectors shall be in Stoc'hol .

Arti$'e 7

The object o! the -o pany>s business is to carry on trade# pri arily in capital householdgoods# to anu!acture achinery and e&uip ent# to ac&uire and anage shares# and to carry

on other business activities co patible there"ith.

Arti$'e 8

The share capital o! the -o pany shall be not less than SE1 seven hundred and !i!ty illion

6SE1 GCB#BBB#BBB8 and not ore than SE1 three billion 6SE1


49/128

Arti$'e =

The nu ber o! shares shall be not less than pre!erential rights.

49


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(! the share capital is increased by "ay o! a bonus issue# ne" shares o! each series shall be

issued in proportion to the previous nu ber o! shares o! each series. Previous shares o! a

given series shall thereby entitle the holder to receive ne" shares o! the sa e series. This

shall not constitute any restriction in the possibility to issue ne" shares o! a ne" series by "ay

o! a bonus issue# !ollo"ing the necessary a end ents to the articles o! association.

O"ners o! series A shares shall be entitled to re&uest conversion o! series A shares to series *

shares. Such re&uest !or conversion# "hich shall be ade in "riting and speci!y the nu ber o!

shares to be converted# shall be ade to the -o pany. The -o pany shall "ithout delay

noti!y the conversion to the S"edish -o panies Registration O!!ice !or registration. The

conversion is e!!ected once the registration is co pleted and it has been noted in the -entral

Securities Hepository Register.

Arti$'e ?

The *oard o! Hirectors o! the -o pany shall consist o! not less than !ive and not ore than

!i!teen e bers "ith not ore than ten deputy e bers.

Arti$'e @

4or the audit o! the -o pany# one authorized accounting !ir or t"o auditors "ith t"o deputy

auditors shall be appointed at the Annual 7eneral )eeting.

The *oard o! Hirectors is authorized to appoint one or several special auditors to audit such

state ents or plans prepared by the *oard o! Hirectors in accordance "ith the -o panies Act

6 BBC@CC98 in relation to such an issue o! shares# "arrants or convertibles "ith provisions on

nonDcash consideration or that subscription shall be ade against pay ent through setDo!! o!

clai s or other provisions# trans!er o! o"n shares against nonDcash consideration# reduction o!

the share capital or the statutory reserve# erger or division o! li ited co panies.

Arti$'e :

The calendar year shall be the -o pany>s !inancial year.

Arti$'e ;

A notice convening a 7eneral )eeting shall be published in the S"edish O!!icial 7azette#

Svens'a Hagbladet and Hagens ,yheter.

50


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Arti$'e 9<

(n order to participate in a 7eneral )eeting# a shareholder shall noti!y the -o pany not later

than the day stated in the notice convening the eeting be!ore p. .# stating the nu ber o!

assistants. This day ay not be a Sunday# other public holiday# Saturday# )idsu er Eve#

-hrist as Eve or ,e" 0ear>s Eve# and ay not !all earlier than the !i!th "ee'day be!ore the

eeting.

Arti$'e 99

The !ollo"ing atters shall be dealt "ith at the Annual 7eneral )eeting@

election o! chair an at the eetingI

preparation and approval o! the voting listI

approval o! the agendaI election o! t"o inutesDchec'ersI

&uestion as to "hether the eeting has been properly convenedI

presentation o! the annual report and the audit report as "ell as the consolidated accounts

and the group audit reportI

resolutions on

a8 the adoption o! the pro!it and loss account and the balance sheet as "ell as the

consolidated pro!it and loss account and the consolidated balance sheet#

b8 the discharge o! liability o! the directors o! the *oard and the )anaging Hirector#

c8 dispositions in respect o! the -o pany>s pro!it or loss in accordance "ith the adopted

balance sheetI

resolution on the nu ber o! directors and deputy directorsI

resolution on the !ees !or the *oard o! Hirectors and# i! applicable# the auditor or the auditorsI

election o! the *oard o! Hirectors and# i! applicable# auditor or auditors and deputy auditorsI

other atters to be dealt "ith at the 7eneral )eeting in accordance "ith the S"edish

-o panies Act.

Arti$'e 96

The -o pany>s shares shall be registered in a -entral Securities Hepository Register under

the 4inancial (nstru ents Act 6S"@ lagen 69JJ=@9 GJ8 o 'onto!Yring av !inansiella

instru ent8.

51


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7)@ En*iron!enta' I!.a$ts

*ased on a li!e cycle approach# "e 'no" that the greatest potential !or Electrolu$ to contribute

to sustainability lies in i proving product e!!iciency during use. *ut our "or' does not stop

there.

Our goal is to a$i ize the use o! purchased aterial and co ponents. This not only reduces

costs# but also reduces "aste.

5e are stepping up e!!orts to i prove energy use "ithin our o"n operations# thereby saving

easurable -O e issions and operational costs. Electrolu$ has set a target to cut energy use

by 9CK groupD"ide by yearDend BBJ# co pared to BBC energy consu ption.

Operational environ ental concerns include@

• Energy and "ater e!!iciencyI• Reducing !actory e issionsI

• Reducing "asteI

• TransportationI

• %andling hazardous aterials# andI

• Hesigning products "ith sound aterial use# high levels o! environ ental per!or ance and

recyclability.

7): So$ia' Res.onsi i'it,

The role o! business in society is continually evolving. Electrolu$ is in the process o!

i ple enting a series o! initiatives to eet sta'eholder e$pectations.

52


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Our pri ary socialDrelated issues include building a robust and transparent corporate

governance syste # health and sa!ety conditions in anu!acturing and the supply chain#

i proving &uality o! li!e through our products and guarding consu er health and sa!ety. Our

co unity involve ent initiatives are pri arily conducted on the local level to serve local

needs.

Our people put a !ace on our na e D !ind out ho" "e strive to create an environ ent "here

our talent can thrive.

A"areness D Learning D 4eedbac' D Assess ent 6AL4A8 is the tool "e use to anage our

-ode o! -onduct# and in part# health and sa!ety in our organization.

(! you "ish ore detailed in!or ation on our approach to socialDrelated issues# clic' on the

subject atter listed under related pages at the right hand side o! the screen.

7); Res.onsi 'e Sour$in(

,o atter "here our suppliers are located# "e e$pect co pliance to the Electrolu$ -ode o!

-onduct and Environ ental Policy. (n !act# both re&uire ents are an integrated part o! our

purchasing policy.

(nsisting on high ethical and sustainable standards "ithin our supply chain is a central

co ponent o! our purchasing policy. Our responsible sourcing progra is ho" "e ensure

co pliance to the Electrolu$ 5or'place -ode o! -onduct and Environ ental Policy. The

Supplier )anage ent Syste 6S)S8# a "ebDbased resource o! all Electrolu$ re&uire ents#

policies and directives on its suppliers# !urther connects the purchasing process "ith these

policies.

Targeted suppliers are evaluated based on a ris' assess ent that ta'es into account !our

areas o! ris'@

98 7eographical location

8 E$tent o! business "ith supplier

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can o!!er solutions "ith European or global coverage. Our "arehousing and distribution

structure is (SO JBBB certi!ied.

8 Our 2istor,

Starting out "ith a single vacuu cleaner# a!ter =B years o! innovations and ac&uisitions# The

Electrolu$ 7roup today is a global leader in ho e appliances and appliances !or pro!essional

use.

9;


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beco es the agent !or Lu$ in 7er any# nited 1ingdo and 4rance.

%o e sales begin in S"eden. The sales en# "ho pull the heavy achines through the streets

on handDcarts# ust arrange a de onstration ti e "hen the house"i!e can pro ise that herhusband?bread"inner "ill be ho e to approve the invest ent.

9;9=

A$el 5ennerD7ren sets up the sales co pany Svens'a Ele'tron 6later

4inans A* Svetro8. The ethod o! ho e de onstration and hire purchasebeco es increasingly "ellDestablished and proves a great success.

9;9@

On October


57/128

9;9;

On August 9# an agree ent is reached bet"een A* Lu$ and Svens'a Ele'tron A* 6in "hich

5ennerD7ren is the do inating o"ner8 giving Ele'tron the sole sales rights to A* Lu$ vacuu

cleaners. The agree ent# "hich is valid through 9J J# obligates Ele'tron to

buy its vacuu cleaners !ro Lu$ and sho" Lu$ the anu!acturer on all the

vacuu cleaners.

At the Annual 7eneral )eeting on August J# Ele'tro e'anis'a A* 6"hollyo"ned by 5ennerD7renDdo inated Ele'tron8 changes its na e to A*

Electrolu$. The ne" na e is a co bination o! Ele'tro e'anis'a and Lu$.

9;69

)odel / is launched. (t is regarded as the !irst step to"ards an easy to use vacuu cleaner !or

ordinary ho es. Pay e$tra close attention to the runners D an invention by )r 5ennerD7ren

hi sel!. They "ere in use on Electrolu$ achines "ell in to the 9J;BUs.

9;66

S"edish engineering students# *altzar von Platen and -arl )unters# !ro

the Royal (nstitute o! Technology in Stoc'hol # present a sensational

invention D a achine that produces cold through heat using a ne" and

brilliant application o! the absorption process. The achine can be driven

by electricity# gas or 'erosene.

9;67

The production o! re!rigerators based on PlatenD)unterUs invention begins at a ne"ly !or ed

co pany# A* Arctic.57


58/128

9;6=

Electrolu$ purchases Arctic and launches the !irst absorption re!rigerator#

the UUHD!ridgeUU on the "orld ar'et. 4or any people UUthis "onder!ul bo$UU

solves the proble o! storing !resh !ood at ho e.

9;6?

The !irst plant !or the production o! vacuu cleaners outside S"eden is

opened in *erlin# Te pelho!. A$el 5ennerD7ren ac&uires /olta !ro

S'andinavis'a *an'en. A$el 5ennerD7ren beco es chair an o! the board.

9;6@

Electrolu$ builds vacuu cleaner plants in Luton# England and -ourbevoie# 4rance. These

plants are eventually e&uipped !or the production o! re!rigerators. Production begins in a

nu ber o! countries all over the "orld.

9;6:

The share capital in Electrolu$ is increased tenD!old !ro si$ illion S"edish 'ronor to ;B

illion. The turnover at !ive plants# so e t"enty subsidiaries and CB o!!ices throughout the

"orld is SE1 GB illion.

The 7roup is consolidated and introduced on the London Stoc' E$change 69J


59/128

9;7<

The !irst builtDin re!rigerator is launched# a co pact product !or the 'itchenette in the s all#odern apart ents o! the ti e. %arry 7 4aul'ner is appointed president.

9;79

/acuu cleaner production begins in Old 7reen"ich# -onnecticut# SA. The !irst airDcooled

re!rigerator is produced. Electrolu$ presents L9# the !irst airDcold re!rigerator.

9;78

Electrolu$ ac&uires /olta !ro A$el 5ennerD7ren. The 7roup no" has an alternative to the

ho e sale o! vacuu cleaners and thereby greater ar'et coverage.

9;7?

Production o! vacuu cleaners begins in Australia.

9;7:

59


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Strea ed products are odern. O! the vacuu cleaners o! this decade# the


61/128

o"ns the producer Archi edes 6both co panies "ere sold to )onar'D-rescent in 9J;C8.

9;8:

There is a great de and !or s all electrical otors. ntil no"# Electrolu$ has produced the

at Lilla Essingen alongside vacuu cleaners. Production no" oves to a ne" plant in

/Vstervi'.

(n 7er any# operations begin again a!ter the "ar. Re!rigerators are produced in *erlin and

vacuu cleaners in 5ilhel sha!en.

Sigurd ,aucho!! beco es -hair an o! the *oard.

9;=<

Electrolu$ begins producing vacuu cleaners and !loor polishers in SZo Paolo# *razil.

9;=9

The !irst household "ashing achine is introduced. Production o! steel shelving oves !ro

)otala to SV!!le# the !oundations o! "hat "ill later beco e Electrolu$ -onstructor. /acuu

cleaner production begins in Oslo# ,or"ay.

Elon /. E' an is appointed president.

9;=7

The production o! "ashing achines is trans!erred !ro 7othenburg to

/Vstervi'

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.

9;==

The production o! !loor polishers and re!rigerators begins in *uenos Aires#

Argentina. Electrolu$ shares are listed on the 7eneva Stoc' E$change.

9;=?

The !irst chest !reezer is launchedDbig ne"s in !ood storage. A$el 5ennerD7ren sells his

Electrolu$ shares to the 5allenberg 7roup. 7roup sales pass the hal! billion 'ronor ar'.

9;=@

The spelling o! the 7roupUs na e is changed throughout the "orld !ro Ele'trolu$ to

Electrolu$.

9;=:

The 7roup success!ully e$ports caravan re!rigerators to the SA D but the

big rush ta'es place in 9J;Bs.

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9;=;

The !irst dish"asher designed by Electrolu$ is a benchtop odel# the e$tre ely popular UUround jar.UU The !irst co bined !ridge?!reezer is produced in the to"n o! )otala# S"eden.

9;?6

Ele'tro%elios is ac&uired !or SE1


64/128

9;?=

The 7roupUs turnover passes the billion 'ronor ar'. The long econo ic boo continues !or

the re ainder o! the year. A decision is ade to build a coo'er plant in )otala. The sale o!

absorption re!rigerators roc'ets.

9;?@

%ans 5erthWn beco es president. The restructuring o! the divided 5estern European "hiteD

goods industry begins.

Electrolu$ ta'es the initiative on changes in Scandinavia. The co pany purchases ,or"egian

Ele'tra 6coo'ers8# Hanish Atlas 6re!rigerators8 !ollo"ed by 4innish Slev 6coo'ers# sauna units8./acuu cleaner production oves !ro Stoc'hol to /Vstervi'.

9;?:

The inority interest 6


65/128

9;@9

The co ercial cleaning service is established as a result o! ne" co pany ac&uisitions. A

!aceDli!t !or "hite goods ta'es place. There is a trend to"ards ne" colors. -aravan

re!rigerators 6absorption8 are boo ing on the S ar'et.

9;@7

The o!!ice achinery co pany 4acit is ac&uired D a purchase outside the principal business

sphere o! Electrolu$. The deal brings "ith it the production o! 'itchen and bathroo cabinets

6*allingslYv8.

The ups"ing !or the absorption re!rigerator techni&ue accelerates. The 7roup purchasesanu!acturers in Lu$e bourg and 7er any 61re!t# Siegas8 to eet the de and on the

European ar'et.

9;@8

(t has long been clear that a po"er!ul !oothold in the S household

appliance ar'et is essential. The vacuu cleaner producer , E D ,ational

nion Electric?Eure'a D is ac&uired 6today the Eure'a -o pany8. This deala'es Electrolu$ the "orldUs nu ber one producer o! vacuu cleaners. (t

also boosts the 7roupUs air conditioning technology research and 'no"Dho"

resources.

5hite goods are ar'eted under the brand na es o! Enviro ental coo'er de Lu$e# 4uture

Line and Superstar Electronic.

The co it ent to nature conservation products# vacuu syste s !or the transport andcleaning o! "aste "ater continues. The OR5A1 "aste co pressor is launched.

9;@=65


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A nu ber o! s all ac&uisitions in sectors such as laundryDservice# aterials handling and

agricultural achinery ta'e place.

9;@?

Electrolu$ oves into the 4rench ar'et. The "hiteDgoods anu!acturer Arthur )artin and the

vacuu cleaner co pany Tornado are ac&uired. These deals include ,estor )artin o! *elgiu

and )enalu$ o! S"itzerland. The purchase o! Tornado also includes a subsidiary in %olland.

The ac&uisition o! vacuu cleaner co panies in the SA and 4rance strengthens the 7roupUs

position in the !loor care ar'et.

9;@:

The Electrolu$ S"edish household appliance sector is strengthened by the

ac&uisition o! %us&varna. The deal also brings an entirely ne" addition to

the product range D chainsa"s. This D in turn D initiates ne" purchases in the

sa e industry# Partner in the sa e year and +onsered and Pioneer in 9JGJ.

The "hiteDgoods co pany Ther a o! S"itzerland is ac&uired.

9;@;

Electrolu$ enters the S "hite goods ar'et through the ac&uisition o! Tappan# in )ans!ield#

Ohio# a anu!acturer o! household appliances and coo'ers.

9;:<

Electrolu$ a'es an i portant ac&uisition. The etal conglo erate 7rVnges is purchased6 ines# steel "or's# alu inu and copper# vehicle sa!ety belts8 !or SE1 G C illion. The

7roupUs total turnover is al ost SE1 < billion# an increase o! C9K co pared "ith the

preceding year.

9;:9

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/acuu cleaner capacity is e$tended still !urther through the ac&uisition o! the 4rench

co pany# ParisDRh[ne# and the 7er an co pany# Progress.

9;:8

The ac&uisition o! the (talian co pany anussi 6!ounded 9J9;8 including its subsidiaries in

Spain# a'es Electrolu$ the un&uestioned leader in the European ar'et !or household

appliances.

The anussi purchase also a'es the 7roup nu ber one in !ood service e&uip ent. Sales

e$pansion in the 4ar East including Oceania@ SE1 billion.

9;:=

The "hite goods sector range o! "ashing achines and tu ble driers# and air conditioning is

e$tended through the purchase o! an'er in 7er any and HuoDTher in the SA.

9;:?

The third largest "hite goods co pany in the SA# 5hite -onsolidated (nc.# is ac&uired "ith

brands such as 4rigidaire# 7ibson# 1elvinator and 5hite 5estinghouse.

The Outdoor Products business area e$pands !ollo"ing ne" ac&uisitions including the S

co pany# Poulan?5eed Eater. The etal recycling co pany# 7otthard ,ilson# is purchased.

The 7roupUs total annual sales are SE1 C< billion.

9;:@

Electrolu$ purchases the !irst "hite goods division o! the *ritish co pany# ThornDE)(# "ithbrands such as Tricity# Stott *enha and Par'inson -o"an. 5hite goods are also

strengthened by the purchase o! -orbWro and Ho ar# SpainUs leading co panies in this sector.

9;::

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68/128

The outdoor products business is rein!orced through the purchase o! A erican 0ard Products

60ardpro8. The Spanish ar'et gro"s in i portance. The re!rigerator co pressor producer

nidad %er Wtica is ac&uired. Sa!ety belt operations are e$panded in Europe.

9;:;

The 7roupUs leading position in Europe is rein!orced by the ac&uisition o! the 7er an *uderus

7roupUs anu!acturing operations o! "hite goods and !ood service e&uip ent# including

industrial "ashing achines.

An agree ent is signed "ith Sharp -orporation on the sale o! Electrolu$ "hite goods on the

+apanese ar'et. (ron ore ining "ith the La co co pany# Liberia 6previously o"ned by

7rVnges8 ceases. The 7roup "inds up its operation in the sterilization and disin!ection sectors.

9;;<

Outdoor products e$tends its range by ac&uiring the S co pany# Allegretti2 -o.# "hich anu!actures products such as batteryDdriven garden tools.

9;;9

The %ungarian "hiteDgoods co pany Lehel is ac&uired. The UULo"DEnergy Re!rigeratorUU islaunched. (t halves energy consu ption !or the user. Robotic vacuu cleaners !ro the S

co pany# 1ent# !or co ercial use in hospitals# airports# etc.# are introduced on the S

ar'et. Electrolu$ sells ost o! the co ercial service business area.

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69/128

%ans 5erthWn resigns as -hair an o! the *oard. The ne" chair an and -EO@ Anders

Scharp. Lei! +ohansson is appointed president.

9;;6

Electrolu$ buys 9BK o! AE7Us household appliances division "ith an option on a !urther 9BK.

The 7roup publishes its environ ental policy. 4i!tyD!i!ty joint venture "ith Rau!oss Plastal

-o ponents.

9;;7

Totally -4-D!ree re!rigerators are launched. 7otthard ,ilson succeeds in co pletely recycling

a re!rigerator in a closed syste . Ac&uisition o! !urther 9BK o! AE7Us appliances division ta'esplace# and opening o! negotiations to ta'e over re aining shares. 7roup sales e$ceed SE1

9BB billion.

9;;8

The Electrolu$ 7roup celebrates its GCth anniversary.

9;;?

Electrolu$ strengthens its position on the South A erican ar'et by ac&uiring the secondD

largest "hite goods anu!acturer in *razil# Re!ripar# "hich later beco es Electrolu$ do *rasil.

9;;@

The 7roup begins a t"oDyear restructuring progra "ith the purpose o! i proving pro!itability.

Strea lining o! 7ro

Documents

Electrolux Report Final Total