Q1 Results, April 27, 2011 Keith McLoughlin, President and CEO - PowerPoint PPT Presentation

Q1 Results, April 27, 2011 Keith McLoughlin, President and CEO Jonas Samuelson, CFO & COO Peter Nyquist, SVP IR

Q1 Highlights EBIT (SEKm) Margin (%) � Net sales increased by 1% 2500 10 in comparable currencies 8 2000 – Growth in major markets 5,3 6 � EBIT of SEK 696m 1500 4 3,0 – Raw-material headwinds 2 1000 – Price pressure 0 – Cost measures 500 -2 – Mix improvement 0 -4 � Price increases going 2010 2011 forward (SEKm) Q1 2011 Q1 2010 Sales 23,436 25,133 EBIT* 696 1,326 Margin 3.0% 5.3% *) EBIT excluding items affecting comparability 2

Q1 Operating cash flow � Operating cash flow amounted to SEK -1.3 billion � Q1 seasonally weakest quarter � Lower operating income � Higher tax payments � Continued favorable development of net operating working capital – Receivables positive, collection from high sales in November-December � Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -220m � Investments during the first quarter mainly referred to new products 3

Consumer Durables Major Appliances Europe, Middle East & Africa � Lower sales as a result of EBIT (SEKm) Margin (%) 1500 12 lower volumes and prices � Lower EBIT 10 – Lower volumes 1000 8 – Price pressure 5,6 6 – Higher raw-material costs 4,1 � Mix improvement 500 4 – The AEG launch continues 2 0 0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 7,656 8,921 EBIT 311 499 Margin 4.1% 5.6% 4

Increased growth in Eastern Europe Quarterly comparison, year over year 10% 5% 0% -5% -10% -15% 2010 2011 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 W. Europe 1% 4% 1% 1% 5% 1% 1% -1% -5% -4% -4% -5% -8% -9% -9% -4% -2% 0% 0% 0% -2% E. Europe 5% 4% -15% -31% -30% -26% -17% -7% 1% 5% 1% 9% 6% 7% 14% 5% 5% 10% 6% 13% 13% 5

6

Consumer Durables Major Appliances North America EBIT (SEKm) Margin (%) � Market growth 600 6 � Higher net sales in 4,1 comparable currencies 400 4 � EBIT declined to SEK -71m – Price pressure 200 2 – Higher raw-material costs � Improved mix 0 0 � Price increases from April 4 – 3-5% -1,1 -200 -2 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 6,728 7,305 EBIT -71 299 Margin -1.1% 4.1% 7

North America grew by 1% in Q1 Quarterly comparison, year-over-year 15% 10% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2009 2010 2011 2008 8 8

Consumer Durables Major Appliances Latin America EBIT (SEKm) Margin (%) � Market growth in Brazil and in 500 10,0 rest of Latin America � EBIT declined to SEK 139m 400 7,5 – Negative customer mix due to 300 5,4 consolidation of retailers 5,0 – Increased raw-material costs 3,5 200 � Price increases going forward 2,5 100 0 0,0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 3,998 3,796 EBIT 139 206 Margin 3.5% 5.4% 9

Consumer Durables Major Appliances Asia/Pacific EBIT (SEKm) Margin (%) � Market growth in Australia and 300 14,0 improved EBIT 12,0 – Positive currency impact 10,0 10,0 – Improved efficiency 8,7 200 8,0 – Increased raw-material costs – Increased price pressure 6,0 100 � Southeast Asia and China 4,0 – Market-share gain in strong 2,0 markets 0 0,0 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 1,746 1,666 EBIT 174 145 Margin 10.0% 8.7% 10 10 10

Consumer Durables Small Appliances EBIT (SEKm) Margin (%) � Separately reported from 400 15,0 Q1 2011 and onwards 350 � Higher sales 12,0 10,9 300 � Lower EBIT 250 9,0 200 – Increased sourcing costs 5,9 6,0 150 – Currency headwind 100 – Higher raw-material costs 3,0 50 � Good market acceptance for 0 0,0 previous launches 2010 2011 (SEKm) Q1 2011 Q1 2010 Sales 1,930 1,936 EBIT 114 211 Margin 5.9% 10.9% 11 11 11

Professional Products Food-service & Laundry products EBIT (SEKm) Margin (%) � Lower sales but improved 300 15,0 EBIT for Food-service 12,8 250 12,0 – Positive effect of SEK 50m related to a divestment 200 9,0 – Higher share of own- 150 6,1 manufactured products 6,0 100 – Price increases 3,0 50 – Improved capacity utilization � Higher sales and EBIT for 0 0,0 2010 2011 Laundry products – Higher volumes (SEKm) Q1 2011 Q1 2010 – Price increases Sales 1,378 1,501 EBIT 177 91 Margin 12.8% 6.1% 12 12 12

Q2 and FY 2011 In accordance with forward-looking statements in the CEO letter Comment 2011 FY Q2 Tough comparables Volumes Higher Higher in US in Q2 Slightly Price increases in US, price Price H2 higher negative pressure in Europe in Q2 Continued mix improvement Mix Positive Positive from product launches 2011: SEK 2 billion cost Raw-material costs Higher Higher increase compared to 2010 Costs from Global Approximately evenly SEK 125m SEK 500m distributed between quarters Operations Approximately evenly Manufacturing SEK 125m SEK 500m distributed between quarters footprint savings 13 13 13 13

14 14 14

Factors affecting forward- looking statements Factors affecting forward-looking statements This 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. 15 15 15