Q2 Results presentation 2020
Business overview Jonas Samuelson, President and CEO
Coronavirus impact Q2 Ma Market Sales Q2 s Q2 Produ duct ction • • -13% sell-in (volume) Q2 -14% Soft opening of factories from end of April Europe • • Most countries in lockdown in Close to normal production in June April; stores opening in May • June growth; pent-up demand • • -6% sell-in (volume) Q2; less -18% Production constraints North decline June − Factories in Mexico closed large part of Q2 America • Stores open − Availability of components from Mexico • Supply constraints impacting − Social distancing restrictions • • Negative demand -24% Factories to a large extent closed in April Latin • April - most countries in lockdown (mandated or demand driven) America • • May/June – Softening of lockdown Gradual reopening in May; close to normal rules, retail gradually opening. production in June Growth in Brazil in June • • Negative demand Q2 -11% Adjusted to reflect lower demand beginning APAC MEA • Weaker market for countries with Q1 • lockdown in April, incl. SEA, MEA Close to normal production in June • Strong growth in Australia –17% Group ELECTROLUX Q2 2020 PRESENTATION 3
Q2 Highlights SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 23,47 476 29,232 -19 19.7% Or Orga ganic gr growth -16. 6.6% 6% -3. 3.1% 1% -13. 13.5pts Volumes severely impacted by the Corona pandemic Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1% -0. 0.1p 1pts • Challenging market conditions; recovery Dives estm tmen ents ts 0. 0.0% 0% -0. 0.6% 0. 0.6pts in June Curre rrency -3. 3.1% 1% 3. 3.8% -6.9 .9pts • Significant volume drop across all EBIT BIT -62 62 1, 1,219 19 N/A N/A business areas Marg rgin -0. 0.3% 3% 4. 4.2% -4. 4.4p 4pts EBIT BIT ex excl. N NRI -62 62 1, 1,219 19 N/A N/A EBIT BIT m margin ex excl. N NRI -0. 0.3% 3% 4. 4.2% -4. 4.4p 4pts Navigating through challenging market • Strong cost-cutting measures EBIT IT a and m d margin gin* • Mix improvements and price increases 2,400 8.0% 2,000 • Significant currency headwinds 6.0% 1,600 4.0% 1,200 800 2.0% 400 0.0% 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -400 -2.0% 2018 2019 2020 EBIT EBIT % EBIT % R12 *Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 PRESENTATION 4
New consumer behaviors Spending more time at home Health and hygiene in focus Consumers more digital ELECTROLUX Q2 2020 PRESENTATION 5
Driving sustainable consumer experience innovation Eco features in demand — Electrolux dishwasher QuickSelect saves water and energy — Achieved high consumer star rating 2019 — Gained value market share Entering Emerging Markets — Rapid establishment in Morocco 2017 — Built on previous experience and market insights — Double digit market share in Morocco, 2019 ELECTROLUX Q2 2020 PRESENTATION 6
Europe SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 8, 8,888 888 10, 10,479 -15 15.2% Sales decline due to lower volumes Orga Or ganic gr growth -14. 4.2% 0. 0.8% -15 15.0p 0pts • Challenging April with restrictions Acquis isit itio ions 0.0% 0. 0% 0. 0.2% -0. 0.2pts • Sales growth in June as markets Curre rrency -1. 1.0% 0% 2.3% 3% -3. 3.3p 3pts picked up EBIT BIT 244 44 576 76 -57. 7.6% • Mix improvements, premium brands Marg rgin 2.8 2.8% 5. 5.5% 5% -2.7p 7pts gaining market share EBIT BIT ex excl. N NRI 244 44 576 76 -57. 7.6% • Impact from extended closure of kitchen EBIT BIT m margin ex excl. N NRI 2.8 2.8% 5. 5.5% 5% -2.7p 7pts retailers Strong cost-cutting execution EBIT IT a and m d margin gin* • Lower marketing investments/ 1,200 10.0% use of furloughs 1,000 8.0% • Raw material impacted positively 800 6.0% 600 • Currency headwind 4.0% 400 2.0% 200 0 0.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 EBIT EBIT % EBIT % R12 *Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 PRESENTATION 7
European Core Appliances Market Total European shipments, quarterly unit comparison y-o-y 6% 6% 4% 4% 2% 2% 0% 0% -2% 2% -4% 4% -6% -6 -8% 8% -10% -1 0% -12 12% -14 14% 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 20 2020 20 Source: Electrolux estimates ELECTROLUX Q2 2020 PRESENTATION 8
North America SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 8,53 ,537 10, 10,255 -16 16.8% Supply constraints Or Orga ganic gr growth -17 17.9% -10. 10.8% -7.1p 1pts • Market volumes impacted by supply Dives estm tmen ents ts 0. 0.0% 0% -1. 1.5% 1. 1.5pts constraints Curre rrency 1. 1.2% 7. 7.2% -6.0p 0pts • Production and sales impacted by EBIT BIT -17 173 504 04 N/A N/A Mexico restrictions Marg rgin -2.0% 0% 4.9 .9% -6.9 .9pts EBIT BIT ex excl. N NRI -17 173 504 04 N/A N/A Lower availability and higher production EBIT BIT m margin ex excl. N NRI -2.0% 0% 4.9 .9% -6.9 .9pts costs impacting EBIT • Increased costs related to manufacturing EBIT IT a and m d margin gin* consolidation 800 8.0% • Cost efficiency actions and slight price 600 6.0% increases 400 4.0% 200 2.0% 0 0.0% -200 -2.0% -400 -4.0% -600 -6.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 EBIT EBIT % EBIT % R12 *Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 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% -10% -1 0% -15 15% 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 20 2020 20 Source: US Core white includes: AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges/Cookers and Ovens) and Cooktops. ELECTROLUX Q2 2020 PRESENTATION 10
Latin America SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Volumes severely impacted by the pandemic Net s et sales es 2,822 4,816 16 -41 41.4% 4% Orga Or ganic gr growth -24. 4.2% 8.3% 3% -32 32.5pts • Consumer demand declined due to lock- downs and restrictions Curre rrency -17 17.2% -1. 1.8% -15 15.4pts • Demand picked up in June EBIT BIT -18 183 164 16 N/A N/A Marg rgin -6.5 .5% 3. 3.4% -9. 9.9p 9pts • Lower volumes partly offset by price/mix EBIT BIT ex excl. N NRI -18 183 16 164 N/A N/A EBIT BIT m margin ex excl. N NRI -6.5 .5% 3. 3.4% -9. 9.9p 9pts Lower volumes, strong FX headwind • Price increases to mitigate significant EBIT IT a and m d margin gin* currency headwind 400 8.0% 6.0% • Cost-cutting measures 300 4.0% 200 2.0% • Positive contribution from mix 100 0.0% -2.0% 0 -4.0% -100 -6.0% -200 -8.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 Note: Excluding non-recurring items (NRI). NRI in Q1 2019 includes restructuring charge of SEK 225m. EBIT EBIT % EBIT % R12 *Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 PRESENTATION 11
Asia-Pacific, Middle East and Africa SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 3, 3,230 30 3,682 3, -12 12.3% 3% Sales impacted by pandemic Or Orga ganic gr growth -10. 10.9% -4.0% 0% -6.9 .9pts • Consumer demand declined in most Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1% -0. 0.1p 1pts markets, except Australia Curre rrency -1. 1.3% 3% 3. 3.7% -5.0p 0pts • Sales growth in Australia EBIT BIT 159 15 17 171 -7. 7.4% • Lower sales volumes in SEA and MEA Marg rgin 4.9 .9% 4.7% 7% 0. 0.3p 3pts • Mix improvements and price increases EBIT BIT ex excl. N NRI 15 159 17 171 -7. 7.4% EBIT BIT m margin ex excl. N NRI 4.9 .9% 4.7% 7% 0. 0.3p 3pts Lower volumes impacted earnings EBIT IT a and m d margin gin* • Strong cost-savings execution 12.0% 400 • Good traction from product launches in 350 10.0% Australia 300 8.0% 250 • Continued currency headwind 200 6.0% 150 4.0% 100 2.0% 50 0 0.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 PRESENTATION 12
For Internal Use Only Financial overview Therese Friberg, CFO
Recommend
More recommend
