Slide 1: Q3 2023 Results presentation
Q3 2023 Results presentation Jonas Samuelson, President and CEO Therese Friberg, CFO Anna Ohlsson-Leijon, CCO Sophie Arnius, Head of Investor Relations
Slide 2: Restoring margins by stepping up cost reductions and driving targeted portfolio management
Restoring margins by stepping up cost reductions and driving even more targeted portfolio management ≥6% EBIT margin, mid-term Cost reduction targets Growth in targeted areas Current market condition • SEK 10-11bn in 2024 vs 2022, net • Selected mid- and premium • Weak market demand with — Of which
Slide 3: Q3 Highlights
Q3 Highlights Lower organic sales SEKm Q3 2023 Q3 2022 Change • Volume drop, demand-driven Net sales 33,427 35,244 -5.2% Organic growth -7.9% 1.2% -9.1pts • Negative price; promotional activity remains high Divestments -0.0% -0.8% 0.8pts • Positive mix despite challenging markets Currency 2.8% 13.5%
Slide 4: Sales and EBIT Bridge
Sales and EBIT Bridge Volume/ Innovation/ Cost External SEKm Q3 2022 Q3 2023 price/mix marketing1 efficiency2 factors3 Net Sales 35,244 -2,852 1,034 33,427 Growth % -7.9% 2.7% -5.2% EBIT excl NRI5 -35 -1,429 294 2,151 -667 314 EBIT excl NRI % -0.1% 0.9% Accretion/ -4.4 pts 0.9 pts 6.6 pts -2.1 pts D
Slide 5: Executing on cost reduction target
Executing on cost reduction target Net cost reduction y-o-y, SEKbn On track to deliver SEK ~6bn savings in Cost reduction target 2023, above previous targetSEKbn of SEK ≥5bn • SEK 10-11bn in 2024 vs 2022, net ~6 • Key levers executed 9M 2023 — SEK ~6bn in 2023 vs 2022 Product cost — SEK 4-5bn 2024 v
Slide 6: Operating Cash Flow
Operating Cash Flow SEKm Q3 2023 Q3 2022 EBIT 608 -385 D/A and other non-cash items 1,265 1,790 Change in operating assets and liabilities -61 -1,124 Investments in intangible and tangible assets -1,304 -1,905 Changes in other investments 640 142 Cash flow after investments* 1,147 -1,483 *Before acq
Slide 7: Solid liquidity and maturity profile
Solid liquidity and maturity profile Long-term borrowings, by maturity SEKbn 16 14 12 10 8 6 4 2 0 2023 2024 2025 2026 2027 2028- Data as per September 30, 2023 • SEK 33.7bn in liquidity incl. RCF as per September 30, 2023 • No financial covenants in any loan agreements • Target to maintain a solid
Slide 8: Europe
Europe Organic sales decline SEKm Q3 2023 Q3 2022 Change Net sales 10,618 11,107 -4.4% • Lower volumes across product categories, driven by weak Organic growth -11.5% -9.7% -1.7pts consumer demand Divestments -0.0 2.1% -2.1pts • Focus area built-in kitchen particularly impacted Currency 7.1% 5.1% 1.
Slide 9: European Core Appliances Market
European Core Appliances Market Total European shipments, quarterly unit comparison y-o-y 40% 30% 20% 10% 0% -10% -20% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Electrolux estimates. As from Q1 2020, Russia is excluded. AB ELECTROLUX – Q3 2023 9
Slide 10: North America
North America Organic sales decline SEKm Q3 2023 Q3 2022 Change • Negative price and lower volumes due to high promotional Net sales 11,896 12,909 -7.8% level in the market Organic growth -9.6% 2.3% -11.9pts • Ongoing cooking manufacturing consolidation partly Currency 1.7% 22.1% -20.4pts limited ab
Slide 11: U.S. Core Appliances Market
U.S. Core Appliances Market U.S. shipments, quarterly unit comparison y-o-y 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 *Source: Based on the AHAM Factory Shipment Report. Q1 2023 is a comparison of weeks between July 2 – September 30, 2023, vs July
Slide 12: Latin America
Latin America Organic sales growth driven by Brazil SEKm Q3 2023 Q3 2022 Change • Increased consumer demand, driven by Brazil where Net sales 7,193 6,518 10.4% retailers pushed white goods sales Organic growth 7.6% 13.5% -6.0pts • Higher volumes in Brazil Currency 2.8% 19.2% -16.4pts EBIT 405 440 -8
Slide 13: Asia-Pacific, Middle East and Africa
Asia-Pacific, Middle East and Africa Organic sales decline SEKm Q3 2023 Q3 2022 Change • Continued low consumer confidence Net sales 3,720 4,710 -21.0% • Volume drop versus strong baseline Organic growth -16.8% 13.7% -30.5pts Currency -4.3% 12.3% -16.6pts • Positive mix with growth in selected categ
Slide 14: Outlook and summary
Outlook and summary
Slide 15: Market outlook FY 2023 per region
Market outlook FY 2023 per region Europe Negative North America Neutral Asia-Pacific, Middle East and Negative Africa Latin America Negative Electrolux estimates for industry shipments of core appliances, units year-over-year Latin America includes the ABC-countries, Asia-Pacific, Middle East and Af
Slide 16: Electrolux business outlook
Electrolux business outlook Business Outlook1 y-o-y FY 2023 Comments Fully driven by volume, partly mitigated by earnings Volume/mix - negative Volume/price/mix contribution from mix Price – partly offsetting external Positive net price in H1 2023 turned negative in Q3 2023, factors expected to be n
Slide 17: Well positioned to create value
Well positioned to create value Financial targets for profitable growth* OPERATING RONA** SALES MARGIN GROWTH ≥6% >20% ≥4% Strategic drivers executed in Q3: • Positive mix in a challenging market • Group-wide cost reduction and North America turnaround program Driving sustainable Increasing efficien
Slide 18: Factors affecting forward-looking statements
Factors affecting forward-looking statements This presentation contains “forward-looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such e
Slide 19: Q&A
Q&A
Slide 20: Restoring margins by stepping up cost reductions and driving targeted portfolio management
Restoring margins by stepping up cost reductions and driving even more targeted portfolio management ≥6% EBIT margin, mid-term Cost reduction targets Growth in targeted areas Current market condition • SEK 10-11bn in 2024 vs 2022, net • Selected mid- and premium • Weak market demand with — Of which
Slide 21: Appendix
Appendix 21
Slide 22: Earnings contribution from price/mix
Earnings contribution from price/mix Business Area Q3, y-o-y Comments Positive price but sequentially declining impact; price Europe Positive increases taper off while promotions increase. Favorable mix Negative price due to high promotional activity. North America Negative Growth in targeted high-v
Slide 23: Electrolux Group
r{) Electrolux Group