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Highlights of the first quarter of 2011. Net sales amounted to SEK 23,436m (25,133) and income for the period was SEK 457m (911), or SEK 1.61 (3.20) per share. Net sales increased by 1% in comparable currencies.
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Q1 Results, April 27, 2011Keith McLoughlin,President and CEOJonas Samuelson, CFO & COOPeter Nyquist, SVP IR
222
Q1 Highlights
5,3
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10 Net sales increased by 1% in comparable currencies– Growth in major markets
EBIT of SEK 696m– Raw-material headwinds– Price pressure– Cost measures– Mix improvement
Price increases going forward(SEKm) Q1 2011 Q1 2010
Sales 23,436 25,133
EBIT* 696 1,326
Margin 3.0% 5.3%
2010
EBIT (SEKm) Margin (%)
2011
*) EBIT excluding items affecting comparability
333
Q1 Operating cash flow
Operating cash flow amounted to SEK -1.3 billion
Q1 seasonally weakest quarter
Lower operating income
Higher tax payments
Continued favorable development of net operating working capital– Receivables positive, collection from high sales in November-December
Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -220m
Investments during the first quarter mainly referred to new products
44
Consumer DurablesMajor Appliances Europe, Middle East & Africa
Lower sales as a result of lower volumes and pricesLower EBIT– Lower volumes– Price pressure– Higher raw-material costs
Mix improvement– The AEG launch continues
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EBIT (SEKm) Margin (%)
(SEKm) Q1 2011 Q1 2010
Sales 7,656 8,921
EBIT 311 499
Margin 4.1% 5.6%
2010 2011
55
Quarterly comparison, year over year
-15%
-10%
-5%
0%
5%
10%
Increased growth in Eastern Europe
E. Europe
W. Europe
2006 2007 2008 2009
6%
-4%
Q1
10%
-5%
Q4
5%
-1%
Q3
5%
1%
Q2
14%
1%
Q1
7%
5%
Q4
6%
1%
Q3
9%
1%
Q2
1%
4%
Q1
5%
-4%
Q2 Q3
-5%
4%
Q4
-8%
-15%
Q1
-9%
-31%
Q2
-9%
-30%
Q3
-4%
-26%
Q4
-2%
-17%
Q1
1%
-7%
2010
Q2
0%
1%
Q3
0%
5%
Q4
0%
13%
Q1
-2%
13%
2011
666
777
Consumer DurablesMajor Appliances North America
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6 Market growth Higher net sales in comparable currenciesEBIT declined to SEK -71m– Price pressure– Higher raw-material costs
Improved mixPrice increases from April 4– 3-5%
2010
EBIT (SEKm) Margin (%)
2011
(SEKm) Q1 2011 Q1 2010
Sales 6,728 7,305
EBIT -71 299
Margin -1.1% 4.1%
8
Quarterly comparison, year-over-year
-20%-15%-10%
-5%0%5%
10%15%
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North America grew by 1% in Q1
2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009Q2 Q3 Q4 Q1
2010Q2 Q3 Q4 Q1
2011
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Consumer DurablesMajor Appliances Latin America
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0,0
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5,0
7,5
10,0
2010
EBIT (SEKm) Margin (%)
2011
(SEKm) Q1 2011 Q1 2010
Sales 3,998 3,796
EBIT 139 206
Margin 3.5% 5.4%
Market growth in Brazil and in rest of Latin AmericaEBIT declined to SEK 139m– Negative customer mix due to
consolidation of retailers– Increased raw-material costs
Price increases going forward
101010
Consumer DurablesMajor Appliances Asia/Pacific
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2010
EBIT (SEKm) Margin (%)
2011
(SEKm) Q1 2011 Q1 2010
Sales 1,746 1,666
EBIT 174 145
Margin 10.0% 8.7%
Market growth in Australia and improved EBIT– Positive currency impact– Improved efficiency– Increased raw-material costs– Increased price pressure
Southeast Asia and China– Market-share gain in strong
markets
111111
Consumer DurablesSmall Appliances
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0,0
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2010
EBIT (SEKm) Margin (%)
2011
(SEKm) Q1 2011 Q1 2010
Sales 1,930 1,936
EBIT 114 211
Margin 5.9% 10.9%
Separately reported from Q1 2011 and onwardsHigher salesLower EBIT– Increased sourcing costs– Currency headwind– Higher raw-material costs
Good market acceptance for previous launches
121212
Professional ProductsFood-service & Laundry products
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2010
EBIT (SEKm) Margin (%)
2011
(SEKm) Q1 2011 Q1 2010
Sales 1,378 1,501
EBIT 177 91
Margin 12.8% 6.1%
Lower sales but improved EBIT for Food-service– Positive effect of SEK 50m
related to a divestment – Higher share of own-
manufactured products– Price increases– Improved capacity utilization
Higher sales and EBIT for Laundry products– Higher volumes– Price increases
13131313
Q2 and FY 2011In accordance with forward-looking statements in the CEO letter
Q2
Volumes
Price
Mix
Raw-material costs
2011 FY
Higher
Positive
Slightly negative
Comment
Costs from Global Operations SEK 125m
Manufacturing footprint savings
Higher
SEK 125m
Higher
H2 higher
Positive
Higher
SEK 500m
SEK 500m
Tough comparables in US in Q2
Price increases in US, price pressure in Europe in Q2
Continued mix improvement from product launches2011: SEK 2 billion cost increase compared to 2010
Approximately evenly distributed between quarters
Approximately evenly distributed between quarters
141414
151515
Factors affecting forward-looking statements
Factors affecting forward-looking statementsThis 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.
