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Highlights of the first quarter of 2009. Net sales amounted to SEK 25,818m (24,193) and income for the period to SEK -346m (-106), or SEK -1.22 (-0.38) per share. Net sales declined by 8.4%, in comparable currencies, due to continued sharp market downturn in Electrolux main markets.
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Q1 Results 2009April 22, 2009
Hans Stråberg, President and CEO
Jonas Samuelson, CFO
Peter Nyquist, IR
2
Q1 HighlightsQ1 Highlights
EBIT amounted to SEK 38m, excluding items affecting comparabilityRestructuring in China, Italy and RussiaContinued weak demand in all major marketsNegative currency impactStrong cash flowOngoing cost-cutting measures are giving result Price increases in EuropeUS launch – net negative impact of SEK -200m
Sales 24,193 25,818EBIT -39 38
Margin -0.2% 0.1%
Q1 2008 Q1 2009(SEKm)
-1000
-500
0
500
1000
1500
2000
2500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009-4%
-2%
0%
2%
4%
6%
8%
10%
EBIT (SEKb) EBIT margin (%)
3
Changsha, China -187
Porcia, Italy -132
St Petersburg, Russia -105
Reversal of unused restructuring 34
Total -424 34
SEK (m) Q1, 2009 Q1, 2008
US launch and nonUS launch and non--recurring recurring itemsitems
North AmericaLaunch -200 -120Litigation -80
Europe* - -350
Total -200 -550
Non-recurring items
Items affecting comparability
*) Includes Cost Cutting Program (-360m), Component Issue (-120m) and Capital Gain (+130m)
4
Cash Cash flowflow per per quarterquarter
-1000
-500
0
500
1000
1500
2000
Q1 Q2 Q3 Q4
2008 2007
Cash flow from operations and investments
Cash flow Q1, 2009
5
Consumer DurablesConsumer DurablesEuropeEurope
Sales 10,525 10,175EBIT -192 125
Margin -1.8% 1.2%
Q1 2008 Q1 2009(SEKm)
Weak marketLower salesUnderlying result in line with previous year– Lower volumes – Reduced capacity utilization– Price increases– Cost reductions
Weak market and negative currency impact for floor-care products
-800
-600
-400
-200
0
200
400
600
800
1000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009
-10%
-5%
0%
5%
10%
EBIT (SEKm) EBIT margin (%)
6
Quarterly comparison, year on year
-15%
-10%
-5%
0%
5%
10%
Market development in EuropeMarket development in Europe
East. Europe
West. Europe
6%
-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
2006 2007 2008
5%
-4%Q2 Q3
-5%
4%
Q4
-8%
-15%
2009
Q1
-9%
-31%
7
Consumer DurablesConsumer DurablesNorth AmericaNorth America
Weak market– Lower sales in comparable
currenciesMarket-share gain SEK 200m negative net impact of US launchIncreased raw-material costsFloor Care: Lower sales partly mitigated by improved mix and price increases
Sales 7,275 9,144EBIT -154 -177
Margin -2.1% -1.9%
Q1 2008 Q1 2009(SEKm)
-300-200-100
0100200300400500600700
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009-6%-4%-2%0%2%4%6%8%10%12%14%
EBIT (SEKm) EBIT margin (%)
8
Quarterly comparison, year on year
-20%
-15%
-10%
-5%
0%
5%
10%
Market developmentMarket developmentin North America in North America
2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1*
2009
9
10
Consumer DurablesConsumer DurablesLatin AmericaLatin America
Declining demand in BrazilMarket-share gainOperating income lower than last year– Large negative currency
impact– Product mix
Price increases
Sales 2,404 2,625EBIT 156 50
Margin 6.5% 1.9%
Q1 2008 Q1 2009(SEKm)
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009
0%
2%
4%
6%
8%
EBIT (SEKm) EBIT margin (%)
11
Consumer DurablesConsumer DurablesAsia/Pacific & Rest of worldAsia/Pacific & Rest of world
Australia/New Zealand– Market-share gain– Price increases– Cost reductions– Negative currency impact
Closure of Changsha factory in ChinaPositive price and mix in Southeast Asia
SalesEBIT
Margin
2,228105
4.7%
Q1 20082,145
602.8%
Q1 2009(SEKm)
020406080
100120140160180200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009
0%1%2%3%4%5%6%7%8%
EBIT (SEKm) EBIT margin (%)
12
Professional ProductsProfessional Products
Food-service– Weak demand– Lower capacity utilization– Cost reductions
Laundry– Lower sales volumes and
capacity utilization– Improved price and mix– Positive impact by M&A
savingsSales 1,753 1,727EBIT 183 105
Margin 10.4% 6.1%
Q1 2008 Q1 2009(SEKm)
0
50
100
150
200
250
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007 2008 2009
0%
2%
4%
6%
8%
10%
12%
14%
EBIT (SEKm) EBIT margin (%)
13
Market view business areas and Market view business areas and raw materials impactraw materials impact
Market demand Q209
Europe
FY09
North America
Latin America
Costs for steel
Raw materials
14
15
Factors affecting forwardFactors affecting forward--looking statementslooking 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.