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Q3 Results, October 28, 2011 Keith McLoughlin, President and CEO Jonas Samuelson, Head of EMEA (Former CFO & COO) Peter Nyquist, SVP IR and Financial Information

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.

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Page 1: Electrolux Interim Report Q3 2011 Presentation

Q3 Results, October 28, 2011

Keith McLoughlin, President and CEO

Jonas Samuelson, Head of EMEA (Former CFO & COO)

Peter Nyquist, SVP IR and Financial Information

Page 2: Electrolux Interim Report Q3 2011 Presentation

Q3 Highlights

7,5

4,3

0

500

1000

1500

2000

2500

0

2

4

6

8

EBIT declined to SEK 1,098m

– Weak demand

– Price pressure

– Higher costs for raw materials

– Higher costs for sourced products

Solid results for Professional Products and Latin America

Completion of acquisitions

Solid cash flow

Restore results going forward

– Increase prices

– Adapt cost structure

– Global Operations

2

* Excluding items affecting comparability

(SEKm) Q3 2011 Q3 2010

Sales 25,650 26,326

EBIT* 1,098 1,977

Margin 4.3 7.5

EBIT (SEKm) Margin (%)

Page 3: Electrolux Interim Report Q3 2011 Presentation

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 to

SEK 1,190m

Lower operating income than in Q3, 2010

Seasonally higher sales in the quarter

– High sales in September impacted inventories and accounts

receivable

Investments in new products

Continued structural improvement of working capital

3

Page 4: Electrolux Interim Report Q3 2011 Presentation

4

Acquisition of

Olympic Group completed

280m EBIT

2.5bn Sales

Olympic Group 2010 (SEK, recurring figures, excluding Namaa & B-Tech)

Mandatory tender offer completed

– Electrolux now owns 98% of the shares

Consolidated as of September 2011

Intention to delist Olympic’s shares

in Q1, 2012 at the latest

11% EBIT margin

200m Net profit

Page 5: Electrolux Interim Report Q3 2011 Presentation

Acquisition of CTI completed

5

Cerrillos Rosario

Curitiba

São Carlos

Juárez

Manaus

Maipú

450m EBIT

2.9bn Sales

CTI 2010 (SEK, recurring figures)

Cash tender offers closed

– Electrolux now owns 98% of the shares in CTI and

97% of the shares in CTI’s subsidiary Somela

Consolidated as of October 2011

Remaining shareholders will have the

opportunity to sell their shares over a limited

period of time

16% EBIT margin

330m Net profit

Page 6: Electrolux Interim Report Q3 2011 Presentation

Consumer Durables

Major Appliances Europe,

Middle East & Africa

9,6

5,0

0

200

400

600

800

1000

1200

0

2

4

6

8

10

12

Demand weakened further

Lower sales as a result of lower

volumes and prices

Lower EBIT

– Lower volumes

– Lower prices

– Higher costs for raw materials

– Increased transportation costs

Positive mix contribution from

AEG launch

Price increases going forward

Positive one-off of SEK 150m in

Q3, 2010

6

(SEKm) Q3 2011 Q3 2010

Sales 8,964 9,395

EBIT 444 898

Margin 5.0 9.6

EBIT (SEKm) Margin (%)

Page 7: Electrolux Interim Report Q3 2011 Presentation

Negative growth in Europe

Further weakning in Southern Europe and slow-down in

Eastern Europe

-20%

-15%

-10%

-5%

0%

5%

10%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Quarterly comparison y-o-y

7

2006 2007 2008 2009 2010 2011 Market Development %

W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3

E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7

Page 8: Electrolux Interim Report Q3 2011 Presentation

Consumer Durables

Major Appliances North America

5,4

1,5

-200

0

200

400

600

-2

0

2

4

6

Increased sales in comparable

currencies

EBIT declined to SEK 107m

– Negative price/mix

– Higher raw-material costs

– Higher transportation costs

– Higher product costs

– Extensive promotional activities

Prices sequentially higher than

in Q2 but lower than in Q3,

2010

8

(SEKm) Q3 2011 Q3 2010

Sales 7,122 7,604

EBIT 107 413

Margin 1,5 5.4

EBIT (SEKm) Margin (%)

Page 9: Electrolux Interim Report Q3 2011 Presentation

Market in North America

continued to decline in Q3

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Quarterly comparison y-o-y

9

2006 2007 2008 2009 2010 2011

Page 10: Electrolux Interim Report Q3 2011 Presentation

Consumer Durables

Major Appliances Latin America

5,2 5,4

0

100

200

300

400

0

2

4

6

8

Market growth in Brazil and in

the rest of Latin America

EBIT improved to SEK 222m

– Higher volumes

– Negative customer mix due to

consolidation of retailers

10

(SEKm) Q3 2011 Q3 2010

Sales 4,101 3,810

EBIT 222 199

Margin 5.4 5.2

EBIT (SEKm) Margin (%)

Page 11: Electrolux Interim Report Q3 2011 Presentation

Consumer Durables

Major Appliances Asia/Pacific

12,6

8,7

0

50

100

150

200

250

300

0

2

4

6

8

10

12

14

Lower sales and EBIT in

Australia

– Lower sales prices

– Negative product mix

– Lower capacity utilization

Southeast Asia and China

– Market-share gain in strong

markets

– Continued good profitability in

Southeast Asia

11

(SEKm) Q3 2011 Q3 2010

Sales 1,981 1,909

EBIT 172 241

Margin 8.7 12.6

EBIT (SEKm) Margin (%)

Page 12: Electrolux Interim Report Q3 2011 Presentation

Consumer Durables

Small Appliances

9,4

8,2

0

50

100

150

200

250

300

0

2

4

6

8

10

12

Higher sales in comparable

currencies

Lower EBIT

– Higher product costs

– Higher costs for raw materials

– Higher volumes

– Lower transportation costs

12

(SEKm) Q3 2011 Q3 2010

Sales 2,056 2,106

EBIT 169 198

Margin 8.2 9.4

EBIT (SEKm) Margin (%)

Page 13: Electrolux Interim Report Q3 2011 Presentation

Professional Products

Food-service & Laundry products

13,5 14,0

0

50

100

150

200

250

300

0

4

8

12

16

20

Lower sales and EBIT for Food-

service products

– Lower sales in Southern Europe

– Higher raw-material costs

– Price increases

– Improved mix

Solid results for Laundry

products

– Higher volumes

– Price increases

– Higher capacity utilization

– Higher raw-material costs

13

(SEKm) Q3 2011 Q3 2010

Sales 1,426 1,501

EBIT* 199 202

Margin 14.0 13.5

EBIT (SEKm) Margin (%)

Page 14: Electrolux Interim Report Q3 2011 Presentation

We need to adapt our capacity to structural

changes in demand in mature markets

25000

30000

35000

40000

45000

50000

55000

60000

1990 1995 2000 2005 2010

Market volumes in North America (000' units)

14

30% gap from

expected

development

Page 15: Electrolux Interim Report Q3 2011 Presentation

Strong decline during the last quarters in

Western Europe and no recovery in the

short term

Seasonally adjusted volumes in Western Europe, annualized (000' units)

46 000

48 000

50 000

52 000

54 000

56 000

58 000

60 000

2007 Q1

2007 Q2

2007 Q3

2007 Q4

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

2011 Q2

2011 Q3

Page 16: Electrolux Interim Report Q3 2011 Presentation

Q4 2011 y-o-y In accordance with forward-looking statements

in the CEO letter

Q4 2011 Comment

Volumes

Price

Mix

Raw-material costs

Negative

Slightly positive

Slightly negative

Costs from Global

Operations SEK 125m

Manufacturing

footprint savings

Higher

SEK 125m

Lower volumes in mature markets will

partly be offset by strong growth in

emerging markets

Year-over-year negative with some

sequential improvement

Mix improvement from product

launches offset by negative

country/customer mix

~SEK 300m in Q4

Approximately evenly

distributed between quarters

Approximately evenly

distributed between quarters

Contribution from

acquisitions SEK 100m Full impact from CTI and Olympic

Page 17: Electrolux Interim Report Q3 2011 Presentation

17 17 17

Page 18: Electrolux Interim Report Q3 2011 Presentation

18 18 18

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.