Electrolux Interim Report Q3 2011 Presentation

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Highlights of the third quarter of 2011. Net sales amounted to SEK 25,650m (26,326) and income for the period was SEK 825m (1,381), or SEK 2.90 (4.85) per share. Net sales increased by 2.2% in comparable currencies and including one month of sales from Olympic Group, mainly as a result of higher sales volumes.


<ul><li>1.Q3 Results, October 28, 2011Keith McLoughlin, President and CEOJonas Samuelson, Head of EMEA (Former CFO &amp; COO)Peter Nyquist, SVP IR and Financial Information</li></ul> <p>2. Q3 HighlightsEBIT (SEKm)Margin (%) EBIT declined to SEK 1,098m25007,5 8 Weak demand Price pressure20006 Higher costs for raw materials Higher costs for sourced1500 4,3products41000 Solid results for ProfessionalProducts and Latin America5002 Completion of acquisitions Solid cash flow0 0 Restore results going forward (SEKm) Q3 2011 Q3 2010 Increase prices Sales 25,65026,326 Adapt cost structure EBIT*1,098 1,977 Global Operations Margin 4.3 7.5 * Excluding items affecting comparability 2 3. Q3 Cash flow Operating cash flow amounted to SEK 1,366m Payment of Olympic Group amounted to SEK 2,556m Excluding the payment, the operating cash flow amounted toSEK 1,190m Lower operating income than in Q3, 2010 Seasonally higher sales in the quarter High sales in September impacted inventories and accountsreceivable Investments in new products Continued structural improvement of working capital 3 4. Acquisition ofOlympic Group completed Mandatory tender offer completed Electrolux now owns 98% of the shares Consolidated as of September 2011 Intention to delist Olympics sharesin Q1, 2012 at the latestOlympic Group2010 (SEK, recurring figures, excluding Namaa &amp; B-Tech)Sales2.5bnEBIT 280mEBIT margin 11%Net profit 200m4 5. Acquisition of CTI completed Cash tender offers closed Electrolux now owns 98% of the shares in CTI and Jurez97% of the shares in CTIs subsidiary Somela Consolidated as of October 2011 Remaining shareholders will have theopportunity to sell their shares over a limited Manausperiod of timeCTISo Carlos2010 (SEK, recurring figures) CuritibaCerrillos RosarioSales2.9bnMaipEBIT 450mEBIT margin16%Net profit 330m5 6. Consumer DurablesMajor Appliances Europe,Middle East &amp; AfricaEBIT (SEKm)Margin (%) Demand weakened further120012 Lower sales as a result of lower9,6100010volumes and prices800 8 Lower EBIT Lower volumes600 65,0 Lower prices400 4 Higher costs for raw materials200 2 Increased transportation costs Positive mix contribution from0 0AEG launch (SEKm) Q3 2011 Q3 2010 Price increases going forward Sales8,964 9,395 EBIT444 898 Positive one-off of SEK 150m in Margin 5.0 9.6 Q3, 2010 6 7. Negative growth in Europe Further weakning in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y10%5%0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20062007 200820092010 2011Market Development %W. Eur. +4+1 +1 +5 +1+1 -1 -5-4 -4 -5 -8 -9 -9 -4 -2 +1 000 -2-2-3E. Eur. +1+9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17-7 +1 +5 +13 +13 +12 +7 7 8. Consumer DurablesMajor Appliances North AmericaEBIT (SEKm)Margin (%) Increased sales in comparable600 65,4 currencies EBIT declined to SEK 107m400 4 Negative price/mix Higher raw-material costs200 2 1,5 Higher transportation costs Higher product costs0 0 Extensive promotional activities Prices sequentially higher than-200-2in Q2 but lower than in Q3, (SEKm) Q3 2011 Q3 2010 2010 Sales7,122 7,604 EBIT107 413 Margin 1,5 5.4 8 9. Market in North Americacontinued to decline in Q3Quarterly comparison y-o-y15%10% 5% 0%-5%-10%-15%-20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q320062007200820092010 20119 10. Consumer DurablesMajor Appliances Latin AmericaEBIT (SEKm) Margin (%) Market growth in Brazil and in4008 the rest of Latin America EBIT improved to SEK 222m3006 5,25,4 Higher volumes Negative customer mix due to2004 consolidation of retailers1002 0 0(SEKm) Q3 2011 Q3 2010Sales4,101 3,810EBIT222 199Margin 5.4 5.210 11. Consumer DurablesMajor Appliances Asia/PacificEBIT (SEKm)Margin (%) Lower sales and EBIT in300 14 12,6 Australia250 12 Lower sales prices8,710 Negative product mix2008 Lower capacity utilization1506 Southeast Asia and China100 Market-share gain in strong4markets502 Continued good profitability in 00 Southeast Asia(SEKm)Q3 2011 Q3 2010Sales 1,981 1,909EBIT 172 241Margin8.712.611 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%) Higher sales in comparable30012 currencies2509,4 10 Lower EBIT 8,22008 Higher product costs Higher costs for raw materials1506 Higher volumes1004 Lower transportation costs50 2 0 0(SEKm) Q3 2011 Q3 2010Sales2,056 2,106EBIT169 198Margin 8.2 9.412 13. Professional ProductsFood-service &amp; Laundry productsEBIT (SEKm)Margin (%) Lower sales and EBIT for Food-300 20service products250 Lower sales in Southern Europe16 13,514,0 Higher raw-material costs20012 Price increases150 Improved mix8100 Solid results for Laundry4products50 Higher volumes 00 Price increases(SEKm)Q3 2011 Q3 2010 Higher capacity utilizationSales 1,426 1,501 Higher raw-material costsEBIT*199 202Margin 14.013.513 14. We need to adapt our capacity to structuralchanges in demand in mature marketsMarket volumes in North America (000 units) 60000 55000 50000 30% gap from 45000 expected development 40000 35000 30000 25000 199019952000 2005201014 15. Strong decline during the last quarters inWestern Europe and no recovery in theshort termSeasonally adjusted volumes in Western Europe, annualized (000 units) 60 000 58 000 56 000 54 000 52 000 50 000 48 000 46 0002007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 16. Q4 2011 y-o-yIn accordance with forward-looking statementsin the CEO letter Q4 2011Comment Lower volumes in mature markets will VolumesNegative partly be offset by strong growth in emerging markets Year-over-year negative with some Price Slightly negative sequential improvement Mix improvement from product Mix Slightly positive launches offset by negative country/customer mix Raw-material costsHigher~SEK 300m in Q4 Costs from Global Approximately evenly SEK 125m Operationsdistributed between quarters Manufacturing Approximately evenly SEK 125m footprint savings distributed between quarters Contribution from SEK 100mFull impact from CTI and Olympic acquisitions 17. 17 18. Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains forward-looking statements within the meaningof the US Private Securities Litigation Reform Act of 1995. Such statementsinclude, among others, the financial goals and targets of Electrolux forfuture periods and future business and financial plans. These statementsare based on current expectations and are subject to risks and uncertaintiesthat could cause actual results to differ materially due to a variety of factors.These factors include, but may not be limited to the following: consumerdemand and market conditions in the geographical areas and industries inwhich Electrolux operates, effects of currency fluctuations, competitivepressures 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 operationaland capital efficiency goals, the success in identifying growth opportunitiesand acquisition candidates and the integration of these opportunities withexisting businesses, progress in achieving structural and supply-chainreorganization goals.18 </p>