Electrolux Interim Report Q3 2012 Presentation

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Highlights of the third quarter of 2012. Net sales amounted to SEK 27,171m (25,650) and income for the period was SEK 985m (825), or SEK 3.43 (2.90) per share. Net sales improved by 5.9%, of which 4.6% was organic growth, 5.1% acquisitions and 3.8% changes in exchange rates.


  • 1.Q3 Results,October 22, 2012Keith McLoughlin, President and CEOTomas Eliasson, CFOPeter Nyquist, SVP IR

2. Q3 HighlightsEBIT (SEKm) Margin (%)1 800 5.4 6 Strong organic growth by 4.6%1 6005 Strong volume growth in Latin1 4004.3America1 200 4 Volume and price increases in US1 0003 EBIT increased to SEK 1,461m 800 5 of 6 business areas at or above 6002 our EBIT-margin target 4001 Improved mix/price in the US 200 Positive price, mix and volume in 00 Latin America 2011 2012 (SEKm) Q3 2012Q3 2011 Negative country mix and lowerprices in Europe Sales27,171 25,650 EBIT* 1,461 1,098 Activities initiated to improve cost Margin*5.4 4.3 position in Europe* Excluding items affecting comparability. Non-recurring items are includedin all figures. 2 3. Bridge of the quarterly salesand EBITNet Organic Acquisitions/SEKmQ3 2011 CurrencyQ3 2012Development DivestmentsNet sales 25,650 1,180 -9671,30827,171Net sales %4.6 -3,8 5.15.9EBIT1,098 373 -80 701,461EBIT %4.3 32.08.3 5.3 5.4Dilution/ 1.2 -0.1 0.0Accretion %3 4. EBIT-margin bridge Q3 year-over-year EBIT% Q3 2011 4.3 Price/Mix 1.2 Volume0.2 Raw materials -0.2 Net: Investments, inflation, efficiencies 0.0 Net organic development 1.2 Currency-0.1 Acquisitions0.0 EBIT% Q3 2012 5.44 5. Q3 Cash flowCash flow Q3 Q3 9 months 9 monthsSEKm 2012 2011 2012 2011Operations 2,1351,7535,3384,185Change in operating assets andliabilities-1,113 6741,257653Capital expenditure-1,252 -1,121 -3,262 -3,070Cash flow from operations -2301,3063,3331,768 6. Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm) Margin (%)600 6 5.0 Lower sales volume in key markets400 3.5 4 EBIT amounted to SEK 303m200 2 Lower sales prices0 0 Negative country mix Cost savings-200-2 Slightly negative contribution-400-4 from Olympic2011 2012 Actions are taken to further(SEKm) Q3 2012Q3 2011 improve our manufacturingSales 8,581 8,964EBIT*303444 footprint.Margin*3.5 5.0 * Excluding items affecting comparability. Non-recurring items are included in all figures.6 7. Negative growth in EuropeFurther weakening in Southern Europeand slow-down in Eastern EuropeQuarterly comparison y-o-y 10% 5% 0%-5%-10%-15%-20%2006 200720082009 20102011 2012W. Eur.Q1 Q2 Q3 +5+4 +1 +1Q4Q1 +1 -1 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q40 Q1-2 Q2-2Q3-3 Q4 Q1-2 Q2-4 Q3-2+1 Q2 Q3 Q4 -4 -4 -5 -8 -9-9 -4 -2 +1 00 -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 +9 +5+3+2Market Development % 7 8. Consumer DurablesMajor AppliancesNorth AmericaEBIT (SEKm)Margin (%)7507,5 6.7 Higher sales6006 Price/Mix improvement4504,5 Healthy volume growth3003 EBIT increased to SEK 523m1.5 EBIT margin of 6.7%1501,5 Price/Mix improvement00 Stronger volumes-150 -1,5 Improved operational efficiency 20112012(SEKm) Q3 2012Q3 2011Sales 7,771 7,122EBIT*523107Margin*6.7 1.5 * Excluding items affecting comparability. Non-recurring items are included in all figures. 8 9. Market demand for core appliances in NorthAmerica in line with previous year Quarterly 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 Q3 Q4 Q1 Q2 Q3200620072008200920102011 20129 10. Consumer DurablesMajor AppliancesLatin AmericaEBIT (SEKm) Margin (%)4008 Sales growth of 30%6.4 Tax incentives in Brazil3005.46 Mix improvement Acquisition of CTI200 4 EBIT improved to SEK 339m100 2 EBIT margin of 6.4% Contribution from CTI 00 Higher volumes20112012 (SEKm) Q3 2012Q3 2011 Improved price/mix Sales 5,301 4,101 EBIT*339222 Margin*6.4 5.4* Excluding items affecting comparability. Non-recurring items are includedin all figures. 10 11. Consumer DurablesMajor AppliancesAsia/PacificEBIT (SEKm) Margin (%)240 129.9 EBIT margin of 9.9%8.7 Improved EBIT in Australia160 8 Positive currency Cost savings Lower price/mix804 Southeast Asia and China Continued good profitability in 00 Southeast Asia20112012 (SEKm) Q3 2012Q3 2011 Sales 2,107 1,981 EBIT*208172 Margin*9.9 8.7* Excluding items affecting comparability. Non-recurring items are includedin all figures.11 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%)270 10 Higher sales 8.28 Gained market share in Europe andNorth America1806.06 Lower operating income Lower prices490 Increased cost for sourced products2 Deterioration in mix. 002011 2012 (SEKm) Q3 2012Q3 2011 Sales 2,112 2,056 EBIT*126169 Margin*6.0 8.2* Excluding items affecting comparability. Non-recurring items are includedin all figures.12 13. Professional ProductsFood-service &Laundry productsEBIT (SEKm) Margin (%)300 20Food-service products16 Lower sales and EBIT14.0200 11.6 Lower volumes12 Negative mix8 Launch costs for Grand Cuisine100 Price increases4Laundry products0 020112012 Lower sales and EBIT (SEKm) Q3 2012Q3 2011 Lower volumes Sales 1,299 1,426 Positive price/mix EBIT*151199 Margin* 11.6 14.0* Excluding items affecting comparability. Non-recurring items are includedin all figures. 13 14. Electrolux Grand Cuisine launch14 15. 4th quarter y-o-yIn accordance with forward-looking statements in the CEOletter, press release and previous official statementsQ4 CommentsSlightly Growth in emerging markets and NorthMarket volumesPositive America. Europe continues to be weak.Price/Mix Positive Positive price in NA and LA Steel: PositiveRaw-material costsFlat Plastics: Slightly negative Intensive launch period in 2012R&D and marketingHigher Increased marketing spend in North America. Uncertain Egyptian market, compensated byAcquired units SEK 100m a strong CTI performance Incl. global operations, overheadCost savings ~SEK 250m reduction and improved manufacturingTransportation and HigherCost increases for sourced productssourced products 15 16. 1616 17. 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.17