Electrolux Interim Report Q1 2010 Presentation

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Highlights of the first quarter of 2010. Net sales amounted to SEK 25,133m (25,818) and income for the period was SEK 911m (-346), or SEK 3.20 (-1.22) per share. Net sales increased by 4.1% in comparable currencies, due to higher sales volumes.

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<ul><li>1.Q1 Results, April 27, 2010 Hans Strberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR </li></ul> <p>2. Q1 HighlightsEBIT (SEKm)Margin (%) 250010Net sales increased by 4% incomparable currencies 20008Solid recovery in the US 15005,3 6Strong demand in Brazil 10003,0 4EBIT amounted to SEK 1,326m,5002excluding items affecting0,100comparability-0,4-500 -2Increased efficiencyMix and price improvements -1000 -4 20072008 20092010Favorable currencies (SEKm) Q1 2010Q1 2009 Sales 25,13325,818 EBIT 1,326 38 Margin 5.3%0.1%2 3. Rolling 12 months broke Electrolux EBIT margin target in March 2010EBIT margin 8% 6.1 % 6% 4% 2% 0%Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar 200820092010 3 4. Electrolux financial targets based on the last 12 months FinancialsTarget OutcomeGrowth1)&gt;4%-1.6%Gross margin&gt;21% 21.4%EBIT&gt;6% 6.1%Capital TO2)&gt;4x 4.4xROCE2)&gt;25% 26.5% 1) Currency-adjusted growth2) Capital employed defined as Equity + Net Financial Liabilities4 5. Operating cash flow Q1, 2010 Stable cash flow2500 Positive earnings 2000contribution1500 Build-up of inventories1000 Low level at the end of 2009 500 Seasonal sales patternContinued favorable0development of working -500 capital/net sales-1000 Low investment level-1500 -2000Operations (excl. Change in assetsInvestments Operating cashassets and liab.) and liabilitiesflow Q1, 2010Q1, 2009 5 6. An increase of max SEK 1 billion in cost for raw-material in 2010 Other 18%Raw material cost development Aluminium 4%Copper 7%400 300300Plastics 23% 19 BillionSEK in 20090 Q1 Q2 EQ3 E Q4 E Steel 48%20106 7. Limited correlation between results and raw-material cost increases Sell-sideDramaticestimate SEKm market demand April 22, 2010 decline 500030001000-1000Electrolux-3000estimate2004 2005 2006 2007 20082009 2010EBIT* Raw material cost increase * Excluding items affecting comparability. In 2008, one-offs are excluded. 7 8. Consumer DurablesEurope EBIT (SEKm)Margin (%) Lower sales 1200 12 Decline in private label sales800 6,4 8Strong EBIT improvement4,5Positive price/mix - strengthened400 4 position within the built-in segment 1,5Cost savings0 0 Previous cost measures-1,8 -400 -4 Lower costs for raw materials compared to previous year -800 -82007 20082009 2010 Strong results for floor-care (SEKm) Q1 2010 Q1 2009products mix improvement and Sales9,71910,568 positive currency impact EBIT 620 160 Margin6.4%1,5%2009-2010 numbers are restated due to new reporting structure8 9. The European market stabilized in Q1, 2010 Quarterly comparison, year over year 10% 5% 0%-5% -10% -15%20062007 20082009 2010 Q1 Q2 Q3Q4 Q1Q2 Q3 Q4 Q1Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1West. Europe 4% 1%1% 5% 1%1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 1%East. Europe 1% 9%6% 7% 14% 5% 5% 10%6%5%4% -15% -31% -30% -26% -17% -7%9 10. 10 11. Consumer Durables North America EBIT (SEKm)Margin (%)Local currency sales in line with 10previous year 600Exited unprofitable volumes in 4,5private label 5 350Increased sales under the3,0 Frigidaire and Electrolux brands 100Strong improvement in earnings 0Improved mix -150 -2,1 -1,9Improved efficiency-400-5Higher costs for raw materials20072008 2009 2010(SEKm) Q1 2010Q1 2009Higher sales and improved operatingSales7,9959,144 income and for floor-care productsEBIT360-177Margin 4.5% -1.9%11 12. In North America, we saw the second quarter of growth in three years Quarterly comparison, year-over-year10%5%0% -5% -10% -15% -20%Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 20082009201012 13. 13 14. 14 15. 15 16. Consumer DurablesLatin America EBIT (mSEK) Margin (%)400 10,0 Continued strong demand in Brazil3006,57,55,5In spite of expired tax200 4,1 5,0 incentives 100 1,9 2,5 Improved operating income0 0,0Improved product mix -1002007 2008 20092010-2,5 Lower raw-material costs(SEKm) Q1 2010 Q1 2009 Positive currency impactSales 3,9982,625EBIT 220 50Margin5.5% 1.9% 16 17. Consumer DurablesAsia Pacific EBIT (SEKm) Margin (%) 250 10,0Australia: Improved EBIT 8,4200 9,0 8,0despite market decline 7,0 Improved product mix 150 6,04,7 5,0 Positive currency impact 100 4,0 Improved effiency 3,0501,42,0Southeast Asia 0,1 1,0 0 0,0 Market share gain in a strong market 2007 20082009 2010Product launches(SEKm)Q1 2010Q1 2009ChinaSales 1,9121,752EBIT160 25 Positive impact of cost-cuttingMargin8.4% 1.4%measures 2009-2010 numbers are restated due to new reporting structure 17 18. Professional ProductsEBIT (SEKm)Margin (%)250 12,0Food service10,410,0 Weak market demand 2008,0 Improved operating income 150 6,1 6,1 6,1 6,0 through higher production 100 efficiency and lower costs 4,0 for raw materials50 2,0Laundry products 0 0,0 Weak market demand 2007200820092010Slight decline in operating(SEKm)Q1 2010 Q1 2009 incomeSales 1,501 1,727EBIT91 105Margin6.1%6.1% 18 19. 2010 going forwardTop line development Product mixLaunch of new products Volume + A stable market growth PriceDefend current levels Support earnings Cost + Positive impact from savings Currency Tailwind first half peaked in Q1 Take into account Raw-material marketHeadwind starting in Q2 Investments in marketing - Increased support ofproduct launches 19 20. 20 21. Factors affecting forward- looking statements Factors affecting forward-looking statements This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following: consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the success in developing new products and marketing initiatives, developments in product liability litigation, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals.21 </p>