Upload
electrolux-group
View
1.134
Download
0
Embed Size (px)
DESCRIPTION
Highlights of the fourth quarter of 2009. Net sales amounted to SEK 28,215m (28,663) and income for the period was SEK 664m (-474), or SEK 2.34 (-1.68) per share. Net sales declined by 1% in comparable currencies, due to continued weak markets.
Citation preview
Hans Stråberg, President and CEOJonas Samuelson, CFOPeter Nyquist, IR
Year Results, 2009 February 3, 2010
2
6%
Target of 6% overa business cycle
Strong results for 2009 confirm the Group’s strategy
4.6%
0
2
2007
4
6
EBIT, %
2008
1.5%
4.4%
2006
4.9%
2009EBIT excluding items affecting comparability.
3
Through continuing launching products we have improved our mix
Mix improvement (sales)
0%
1%
2%
2006 2007 2008 2009
4
Price development
Drivers of price stability Competitors’ balance sheets
Being aggressive on price very costly
Record-low inventory levels
Industry shift towards LCC capacity almost finished – price cuts based on unique cost position will become less of an issue
Strong internal focus on price
Price index
90
95
100
2004 2005 2006 2007 2008 2009YTD
5
Reducing cost – profitability with capacity utilization of 60%
60%
85%
0%10%20%30%40%50%60%70%80%90%
Normal Current
Only 20% of total cost is fixed
6
The raw-material markets are uncertain
0
100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0
100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Steel prices development Electrolux
Plastic prices development Electrolux
2008 2009
2008 2009
Steel 47%
Plastics 23%
Cu&Al 11%
Other 19%
7
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
4000 Improved earningsSignificant improvement in working capital strongly contributed to high cash flow
Structural reduction of inventory levelReduction of past due receivablesImproved accounts payable
Lower capital expenditureProposal to pay dividend of SEK 1.1 billion
Consistent with dividend policy2007 2009
Q1
Cash flow from operations and investments
2008Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4*
*) Pension contributions are excluded in Q4, 2009 figures
Focus on cash flow; structural improvements – lower inventories
8
Further comments on the financial and balance sheet
Contributions to pension fundsClose to SEK 4 billion injections into pension fundsReduced pension net debt volatilityPositive EBIT impact
25% tax rate in 2009Reversal of tax provisions
Pension funds 2009 2008
Assets 19,008
22,399
-3,391
13,989
Liabilities 23,185
Pension net debt -9,196
9
Q4 Highlights
7,2
-1,2
7,3
-1000
-500
0
500
1000
1500
2000
2500
-4
-2
0
2
4
6
8
10Net sales declined by 1% in comparable currencies
Continued weak market demandMaintained prices
EBIT amounted to SEK 2,023m, excluding items affecting comparabilityImproved results for all business areas despite continued weak markets
Cost savingsPositive price and mix developmentLower raw-material costs
Continued strong cash flowContinued structural improvement of working capital
(SEKm) Q4 2009 Q4 2008
Sales 28,215 28,663
Margin 7.2% -1.4%
EBIT 2,023 -389
2007 2008 2009
EBIT (mSEK) Margin (%)
10
Consumer DurablesEurope
6,1
-5,3
7,3
-800
-400
0
400
800
1200
-8
-4
0
4
8
12 Weak market demandStabilization in some markets
Cost reductions
Positive price and mix development
Lower raw materials costs
Improved results for floor-care products
Improved product mix
(SEKm) Q4 2009 Q4 2008
Sales 11,285 11,972
EBIT 829 -638
Margin 7.3% -5,3%
EBIT (mSEK) Margin (%)
2007 2008 2009
11
Quarterly comparison, year over year
-15%
-10%
-5%
0%
5%
10%
East. Europe
West. Europe6%
-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
The European market continued to decline in 2009…
2006 2007 2008
5%
-4%
Q2 Q3
-5%
4%
Q4
-8%
-15%
2009
Q1
-9%
-31%
Q2
-9%
-30%
Q3
-4%
-26%
Q4
-2%
-17%
12
Consumer DurablesNorth America
8,6
-0,5
5,7
-400
-150
100
350
600
-5
0
5
10 Cost reductionsImproved internal efficiency
Higher productivity despite lower capacity utilization
Positive price and mix development
Lower raw material costs
Improved operating income for floor-care products(SEKm) Q4 2009 Q4 2008
Sales 7,865 8,928
EBIT 450 -43
Margin 5.7% -0.5%
2007 2008 2009
EBIT (mSEK) Margin (%)
13
Quarterly comparison, year-over-year
-20%
-15%
-10%
-5%
0%
5%
10%
In North America, we saw the first quarter of growth in three years…
2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009Q2 Q3 Q4
14
Consumer DurablesLatin America
7,3 7,4
8,4
-100
0
100
200
300
400
-2,5
0,0
2,5
5,0
7,5
10,0Continued strong demand in Brazil
Tax incentivesInterest ratesConsumer access to credit
Record high earningsPositive price/mixLower raw material costs
(SEKm) Q4 2009 Q4 2008
Sales 4,401 3,305
EBIT 368 244
Margin 8.4% 7.4%
2007 2008 2009
EBIT (mSEK) Margin (%)
15
Consumer DurablesAsia Pacific
9,3
0,7
7,5
0
50
100
150
200
250
300
0,01,02,03,04,05,06,07,08,09,010,0
Improved operating incomein Australia
Increased sales of air-conditionersPositive price developmentRaw materials
Southeast AsiaMarket share gainProfitable growth
ChinaCost measuresRepositioning of Electrolux brand
(SEKm) Q4 2009 Q4 2008
Sales 2,741 2,409
EBIT 254 16
Margin 9.3% 0.7%
2007 2008 2009
EBIT (mSEK) Margin (%)
16
Consumer DurablesProfessional Products
11,1
9,0
11,7
0
50
100
150
200
250
0,0
2,0
4,0
6,0
8,0
10,0
12,0Food-service
Weak market demandPrice pressureLower costs for raw materialsCost reductions
Laundry productsMarket share gainCost reductions
(SEKm) Q4 2009 Q4 2008
Sales 1,923 2,021
EBIT 225 181
Margin 11.7% 9.0%
2007 2008 2009
EBIT (mSEK) Margin (%)
17
18
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.