18
Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR Year Results, 2009 February 3, 2010

Electrolux Interim Report Q4 2009 Presentation

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

Page 1: Electrolux Interim Report Q4 2009 Presentation

Hans Stråberg, President and CEOJonas Samuelson, CFOPeter Nyquist, IR

Year Results, 2009 February 3, 2010

Page 2: Electrolux Interim Report Q4 2009 Presentation

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.

Page 3: Electrolux Interim Report Q4 2009 Presentation

3

Through continuing launching products we have improved our mix

Mix improvement (sales)

0%

1%

2%

2006 2007 2008 2009

Page 4: Electrolux Interim Report Q4 2009 Presentation

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

Page 5: Electrolux Interim Report Q4 2009 Presentation

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

Page 6: Electrolux Interim Report Q4 2009 Presentation

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%

Page 7: Electrolux Interim Report Q4 2009 Presentation

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

Page 8: Electrolux Interim Report Q4 2009 Presentation

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

Page 9: Electrolux Interim Report Q4 2009 Presentation

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 (%)

Page 10: Electrolux Interim Report Q4 2009 Presentation

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

Page 11: Electrolux Interim Report Q4 2009 Presentation

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%

Page 12: Electrolux Interim Report Q4 2009 Presentation

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 (%)

Page 13: Electrolux Interim Report Q4 2009 Presentation

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

Page 14: Electrolux Interim Report Q4 2009 Presentation

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 (%)

Page 15: Electrolux Interim Report Q4 2009 Presentation

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 (%)

Page 16: Electrolux Interim Report Q4 2009 Presentation

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 (%)

Page 17: Electrolux Interim Report Q4 2009 Presentation

17

Page 18: Electrolux Interim Report Q4 2009 Presentation

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.