Business overview Jonas Samuelson, President and CEO New reporting - PowerPoint PPT Presentation

Q4 Results presentation 2019

Business overview Jonas Samuelson, President and CEO

New reporting structure • Electrolux Board has decided to propose that an EGM is held to resolve on the distribution of Electrolux Professional • Intention is to list Electrolux Professional on Nasdaq Stockholm on March 23, 2020 • The comments in this presentation refers to the consumer business, ‘continuing operations’, exclusive of Electrolux Professional, unless otherwise stated Conti ntinu nuing ng o opera rati tions ns Disco sconti ntinu nued opera rati tions ns Business Area Europe Business Area Professional Products Business Area North America Business Area Latin America Business Area Asia-Pacific, Middle East and Africa ELECTROLUX Q4 2019 PRESENTATION 3

Full year 2019 (continuing operations) Intense year of transformation and innovation • Product-mix improvements — Well-received new ranges under a sharpened Electrolux brand • Lower volumes, mainly in North America — Lower private label sales and consolidation of refrigerators/freezer production • Price increases Lower earnings – mainly North America • Lower volumes and manufacturing transition costs in North America • Higher marketing investments, mainly in Europe and APAC MEA • Price fully offset significant headwinds from raw material/tariffs/currency Dividend proposal of SEK 2.4 bn, corresponding to DPS of SEK 8.50 ELECTROLUX Q4 2019 PRESENTATION 4

Q4 Highlights (continuing operations) SE SEKm Km Q4 2 2019 019 Q4 2 2018 018 Cha hange Net s et sales es 32,011 32 011 32 32,02 021 0. 0.0% 0% Organic decline Or Orga ganic gr growth -2.8 2.8% 2.6% 6% -5.4 .4pts • Lower North America volumes, mainly Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1% -0. 0.1p 1pts manufacturing transition and weak market Dives estm tmen ents ts 0. 0.0% 0% -0. 0.8% 0.8p 8pts ts • Positive price/mix Curre rrency 2.8 2.8% 3. 3.1% 1% -0. 0.3p 3pts • Market growth across most regions EBIT BIT 960 60 1,670 1, -42 42.5% Marg rgin 3. 3.0% 0% 5.2% .2% -2.2pts EBIT BIT ex excl. N NRI 960 60 1,59 ,599 -40. 0.0% 0% EBIT BIT m margin ex excl. N NRI 3. 3.0% 0% 5.0% 0% -2.0p 0pts 3 out of 4 BAs improved earnings EBIT IT a and m d margin gin • Positive impact from price/mix improvements 2,400 8% 2,000 • Negative impact from consolidation of 6% 1,600 manufacturing in North America, higher 1,200 4% marketing cost and cost related to 800 separation of Professional Products 2% 400 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q4 2019 PRESENTATION 5

Innovation targeting outstanding consumer experience Reducing harmful allergens and pollutants in the home — Electrolux is growing profitably in the air purification category — 3.5% CAGR estimated for global market for 2018-2024 — An installed base of air purifiers creates demand for filters throughout the product’s lifetime Leveraging global presence to drive profitable growth — Electrolux has transformed its laundry offering by leveraging global modularized product architectures — A profitable growth path in Asia- Pacific and North America is established and Europe has increased it’s contribution to operating margin by over 400% ELECTROLUX Q4 2019 PRESENTATION 6

Europe SE SEKm Km Q4 2 2019 019 Q4 2 2018 018 Cha hange Solid organic growth Net s et sales es 13,35 13, 352 12 12,539 39 6.5 .5% • Volume/mix improvements Orga Or ganic gr growth 3. 3.3% 3% 3. 3.6% -0. 0.3p 3pts • Slight price increase Acquis isit itio ions 0. 0.0% 0% 0. 0.3% 3% -0. 0.3p 3pts • Overall market demand increased Curre rrency 3. 3.2% 4.3% 3% -1. 1.1p 1pts EBIT BIT 1,138 1, 138 1,05 1, 055 7.8% 7. Marg rgin 8.5 .5% 8.4 .4% 0. 0.1p 1pts EBIT BIT ex excl. N NRI 1,138 1, 138 984 84 15 15.7% Improved operating income EBIT BIT m margin ex excl. N NRI 8.5 .5% 7. 7.9% 0. 0.6pts • Increased value market shares in key EBIT IT a and m d margin gin areas and positive aftermarket sales 1,200 10.0% • Favorable currency effect 1,000 8.0% • Increased marketing investments related 800 6.0% to launches 600 4.0% 400 2.0% 200 0 0.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q4 2018 amounted to SEK +71m. ELECTROLUX Q4 2019 PRESENTATION 7

European Core Appliances Market Total European shipments, quarterly unit comparison y-o-y 10% 0% 5% 5% 0% 0% -5% 5% -1 -10% 0% -15 15% -20% -2 0% 2 200 009 2 201 010 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 2 201 019 Source: Electrolux estimates ELECTROLUX Q4 2019 PRESENTATION 8

North America SE SEKm Km Q4 2 2019 019 Q4 2 2018 018 Cha hange Net s et sales es 8,719 19 10, 10,14 143 -14 14.0% 0% Significant sales decline Or Orga ganic gr growth -18 18.3% 3% -4.0% 0% -14 14.3p 3pts • Reduced volumes Dives estm tmen ents ts 0. 0.0% 0% -2.4% 4% 2.4p 4pts Curre rrency 4. 4.2% 7.9% 7. -3. 3.7pts — Manufacturing transition in Anderson EBIT BIT -519 19 223 N/A N/A — Weak market and destocking at a key Marg rgin -5.9 .9% 2.2% -8. 8.1pts ts U.S. customer EBIT BIT ex excl. N NRI -519 19 223 N/A N/A — Lower sales of private label products EBIT BIT m margin ex excl. N NRI -5.9 .9% 2.2% -8. 8.1pts ts • Slight price increases EBIT IT a and m d margin gin Manufacturing transition 800 8% • Lower volumes 600 6% 400 4% • Manufacturing transition costs relating to 200 2% the consolidation 0 0% -200 -2% • Accounting adjustments from prior years -400 -4% -600 -6% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q4 2019 PRESENTATION 9

U.S. Core Appliances Market U.S. shipments, quarterly unit comparison y-o-y 15% 5% 10% 0% 5% 5% 0% 0% -5% 5% -1 -10% 0% -15 15% -2 -20% 0% 2 200 009 2 201 010 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 2 201 019 Source: US Core white includes: AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges/Cookers and Ovens) and Cooktops. ELECTROLUX Q4 2019 PRESENTATION 10

Latin America SE SEKm Km Q4 2 2019 019 Q4 2 2018 018 Cha hange Continued strong organic growth Net s et sales es 5,9 5,913 5,3 5,353 53 10. 10.5% • Growth in Brazil, Argentina recovered Orga Or ganic gr growth 13. 13.9% 11. 11.8% 2.1p 1pts slightly from low levels, while Chile Curre rrency -3. 3.3% 3% -10. 10.5% 7. 7.2pts declined due to unstable political situation EBIT BIT 340 34 290 17 17.2% • Higher volumes and improved mix in Brazil Marg rgin 5.8 .8% 5.4 .4% 0. 0.3p 3pts • Sales decline in Chile and Northern Latin EBIT BIT ex excl. N NRI 34 340 290 17 17.2% America due to weak market EBIT BIT m margin ex excl. N NRI 5.8 .8% 5.4 .4% 0. 0.3p 3pts • Price increases EBIT IT a and m d margin gin Solid execution in a volatile market 400 8% • Strong organic contribution 300 6% • Continued headwind from raw material 200 4% and accelerated currency headwind 100 2% • Positive impact related to operational 0 0% taxes in Brazil -100 -2% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 Note: Excluding non-recurring items (NRI). NRI in Q1 2019 includes restructuring charge of SEK 225m. EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q4 2019 PRESENTATION 11

Asia-Pacific, Middle East and Africa SE SEKm Km Q4 2 2019 019 Q4 2 2018 018 Cha hange Softer markets Net s et sales es 4,027 4, 3, 3,986 1. 1.0% 0% • Australia continued to decline, Southeast Or Orga ganic gr growth -4. 4.2% 5.3% 3% -9.5 .5pts Asia showed growth and Middle East and Acquis isit itio ions 0. 0.1% 1% - 0. 0.1p 1pts Africa slightly up Curre rrency 5.1% 1% 4. 4.2% 0.9pts 0. • Australia - lower volumes, improved mix EBIT BIT 315 315 302 302 4.1% 1% • SEA - price pressure Marg rgin 7.8% 7. 7. 7.6% 0.2pts 0. • Weakness in Middle East EBIT BIT ex excl. N NRI 315 315 302 302 4.3% 3% EBIT BIT m margin ex excl. N NRI 7. 7.8% 7. 7.6% 0. 0.2pts Improved cost efficiency EBIT IT a and m d margin gin • High traction on cost efficiency 12.0% 400 350 10.0% • Favorable currency impact 300 8.0% 250 • Investments in major product launches 200 6.0% continued 150 4.0% 100 2.0% • Lower organic contribution 50 0 0.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q4 2019 PRESENTATION 12

Update Electrolux Professional • Electrolux Board has proposed distribution of Electrolux Professional AB • Information brochure published today 31 31 Janu nuary 23 M 3 Mar arch* Information 10 M 0 Mar arch* * Intended listing brochure Prospectus Nasdaq Stockholm 21 Fe 21 Febru ruary ry 11 M Mar arch* Extraordinary Electrolux Professional General Meeting Investor Day * Planned ELECTROLUX Q4 2019 PRESENTATION 13