Electrolux Professional Ab Class B · OMXSTO:EPRO_B

Electrolux Professional Ab Class B — Electrolux — Q4 2007 Earnings Presentation

20 slides from Electrolux Professional Ab Class B's earnings presentation, Feb 6, 2008

  1. Slide 1: Q4 Results 2007

    Q4 Results 2007 February 6, 2008 Hans Stråberg President and CEO Fredrik Rystedt CFO

  2. Slide 2: Q4 Highlights

    Q4 Highlights EBIT (SEKb) EBIT margin (%) ƒ Largest markets weakened 2500 8% – N America -7% 7% 2000 6% – Europe -1% 1500 5% ƒ Group sales and operating 4% 1000 income improved 3% 2% ƒ Improved market share 500 1% ƒ Strong contribution from Latin 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 America and

  3. Slide 3: Income development

    Income development Operating income Q4/Q4 2200 2000 86 33 106 ƒ Extra costs of new products 115 1800 113 launched in Europe ƒ North American performance 1600 -441 1400 1200 was solid in a weak market 1000 1995 2007 800 ƒ Best results ever in Latin 600 America 400 200 ƒ Good growth in Asia/Pacific 0

  4. Slide 4: Items affecting comparability

    Items affecting comparability SEKm Q4 07 Q4 06 Restructuring: UK cooker plant -317 - Denmark cooker plant -14 - Reversal of prior restructuring provisions - 36 Total -331 36 4

  5. Slide 5: Cash flow seasonality

    Cash flow seasonality 2006 & 2007 versus Normal – percentage of cash flow made per quarter 80% 70% 60% 50% • 2007 Cash Flow 40% development in line 30% with normal Electrolux seasonal pattern 20% • 2006 was abnormal 10% 0% -10% Q1 Q2 Q3 Q4 -20% Normal 2006 2007 5

  6. Slide 6: Consumer Durables Europe

    Consumer Durables Europe EBIT (SEKm) EBIT margin (%) ƒ Weakening demand 1400 12% ƒ Margin decline reflects: 1200 10% – Lower volumes 1000 8% – Costs of newly launched 800 6% products 600 400 4% ƒ Cost reductions underway 200 2% – Lower product costs by second 0 0% half Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

  7. Slide 7: Europe: 2007 price development

    Europe: 2007 price development Average selling price trend in 2007, Western Europe White Goods Change 2007 vs 2006 (YTD vs YTD prior year) 104 Electrolux 103 Index 102 Market 101 100 Q1 Q2 Q3 Q4 7

  8. Slide 8: Consumer Durables North America

    Consumer Durables North America EBIT (SEKm) EBIT margin (%) ƒ Q4 appliance market volume 700 10% down 6.5% 600 500 8% ƒ Electrolux underlying margins 400 6% increased 300 4% – Improved price/mix 200 – Cost efficiencies 2% 100 – Positive one-offs 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ƒ Floor-care

  9. Slide 9: 9

    9

  10. Slide 10: US Electrolux brand launch

    US Electrolux brand launch ƒ Positive contribution in 2009 – 100 Msek of brand spend in the first quarter with limited positive contribution – Negative impact each quarter in 2008 ƒ Long-term investment, despite cyclical weakness ƒ Supported by retailers ƒ Strong product offering ƒ Increased leverag

  11. Slide 11: Consumer Durables Latin America

    Consumer Durables Latin America EBIT (SEKm) EBIT margin (%) ƒ Market volume up 17% in Q4 250 8% ƒ Electrolux volumes up 30% 200 6% 150 ƒ Increased share in most 4% 100 categories 2% 50 ƒ Operating income doubled to 0% 0 a new record -50 -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 (SEKm) Q

  12. Slide 12: Consumer Durables Asia/Pacific & Rest of world

    Consumer Durables Asia/Pacific & Rest of world EBIT (SEKm) EBIT margin (%) ƒ Sales up 9% in comparable 200 8% currencies and operating 150 6% income doubled 100 4% ƒ Australia/New Zealand 50 2% operating income up 0 0% – Market up -50 -2% – Sales and volumes up -100 -4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

  13. Slide 13: Electrolux Design Centre in Shanghai

    Electrolux Design Centre in Shanghai 13

  14. Slide 14: Electrolux Illuminated Induction Cooktop

    Electrolux Illuminated Induction Cooktop 14

  15. Slide 15: Professional Products

    Professional Products EBIT (SEKm) EBIT margin (%) ƒ Sales and volumes down 250 12% somewhat, but operating 200 10% income and margin up 150 8% ƒ Price increases offset 6% 100 materials costs 4% 50 ƒ Improved manufacturing 2% efficiency 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 (SEKm) Q

  16. Slide 16: Outlook 2008: In line

    Outlook 2008: In line In 2008, the Group will introduce Electrolux as a major appliance brand in North America. The plan with the launch is to gain a significant long-term presence in the premium segment. However, we expect the launch to have a negative impact on 2008 results as it initially include

  17. Slide 17: First quarter update

    First quarter update EBIT (SEKb) EBIT margin (%) ƒ Q1 seasonally the weakest: 2500 8% normally 10-15% of full year 7% 2000 operating income 6% 1500 5% ƒ Extra cost in Q1 2008 4% – 100 Msek in US launch cost 1000 3% 2% – Approximately 400 Msek 500 charge for European staff 1% 0 0% reduction Q1 Q2 Q3

  18. Slide 18: Thanking You

    Thanking oF You AH) Electrolux

  19. Slide 19: Factors affecting forward-looking statements

    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

  20. Slide 20: Appendix

    Appendix European industry appliance shipments, % change from prior year period Q1 Q2 Q3 Q4 FY Germany/Austria -2.8 +0.9 -2.8 -7.9 -3.4 UK/Ireland +1.2 -0.8 -2.9 -3.8 -1.6 Nordic +2.4 +3.7 +3.7 -1.9 +1.8 Italy +3.5 +3.8 +1.7 -0.3 +2.1 CEE +18.2 +7.9 +3.9 +13.3 +10.4 20

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