Slide 1: Q2 2023 Results presentation
Q2 2023 Results presentation Jonas Samuelson, President and CEO Therese Friberg, CFO Anna Ohlsson-Leijon, CCO Sophie Arnius, Head of Investor Relations
Slide 2: Sharpening the strategic focus on core portfolio
Sharpening the strategic focus on core portfolio Preparations initiated to divest non-core assets Potential value of SEK ~10bn Non-core brands, incl. Zanussi* • Increased focus on core brands and categories Water heaters in Egypt and South Africa • Complexity reduction Non-strategic real estate • Re
Slide 3: Q2 Highlights
Q2 Highlights SEKm Q2 2023 Q2 2022 Change Lower organic sales Net sales 32,653 33,749 -3.2% • Volume drop, demand-driven Organic growth -8.4% 0.3% -8.6pts Acquisitions - 0.1% -0.1pts • Somewhat positive price; list price increases tapering off Divestments -0.5% - -0.5pts while promotions increase. C
Slide 4: Sales and EBIT Bridge
Sales and EBIT Bridge Volume/ Innovation/ Cost External SEKm Q2 2022 Acq/Divest.4 Q2 2023 price/mix marketing1 efficiency2 factors3 Net Sales 33,749 -2,993 2,051 -153 32,653 Growth % -8.4% 5.6% -0.4% -3.2% EBIT excl NRI5 560 -820 213 1,356 -753 -37 519 EBIT excl NRI % 1.7% 1.6% Accretion/ -2.5 pts 0
Slide 5: Earnings contribution from price/mix
Earnings contribution from price/mix Business Area Q2, y-o-y Comments Positive price. Slightly negative mix, impacted by Europe Positive market decline in built-in kitchen Deteriorating price due to significantly increased North America Negative promotional activity. Flat mix Slightly positive price
Slide 6: Group-wide cost reduction and North America turnaround program
Group-wide cost reduction and North America turnaround program Cost reductions versus 2022, SEKbn P&L impact Implementation status, 6M 2023, y-o-y1 Key savings levers 6M 2023 >7 Supply-chain: • Reduce premium freight & • Fully completed, impact will accumulate spot buy of components quarter by quart
Slide 7: Operating Cash Flow
Operating Cash Flow SEKm Q2 2023 Q2 2022 EBIT -124 560 D/A and other non-cash items 2,304 1,875 Change in operating assets and liabilities 2,255 -533 Investments in intangible and tangible assets -1,265 -1,699 Changes in other investments -33 200 Cash flow after investments* 3,137 402 *Before acquis
Slide 8: Solid liquidity and maturity profile
Solid liquidity and maturity profile Long-term borrowings, by maturity SEKbn 10 8 6 4 2 0 2023 2024 2025 2026 2027 2028- Data as per June 30, 2023 • SEK 30.2bn in liquidity incl. RCF as per June 30, 2023 • No financial covenants in any loan agreements • Target to maintain a solid investment grade ra
Slide 9: Europe
Europe SEKm Q2 2023 Q2 2022 Change Organic sales decline Net sales 10,791 11,345 -4.9% • Lower volumes across product categories, driven by weak Organic growth -10.9% -7.7% -3.2pts consumer demand Acquisitions - 0.3% -0.3pts Divestments -1.4% - -1.4pts • Built-in kitchen particularly impacted, affec
Slide 10: 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 Q2 2023 PRESENTATION 10
Slide 11: North America
North America Organic sales decline SEKm Q2 2023 Q2 2022 Change • Deteriorating price due to significantly higher promotional Net sales 11,238 11,905 -5.6% levels Organic growth -12.3% 0.7% -13.0pts • Positive timing effects in Q1 impacted Q2 volumes Currency 6.7% 16.8% -10.1pts negatively EBIT -160
Slide 12: 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 April 2 – July 1, 2023, vs April 3 –
Slide 13: Latin America
Latin America SEKm Q2 2023 Q2 2022 Change Organic sales growth driven by Brazil Net sales 6,915 6,268 10.3% • Decreased consumer demand in Brazil and Chile, while up Organic growth 5.6% 12.9% -7.3pts in Argentina Currency 4.7% 18.2% -13.5pts • Favorable mix, supported by well-received laundry ranges
Slide 14: Asia-Pacific, Middle East and Africa
Asia-Pacific, Middle East and Africa Organic sales decline SEKm Q2 2023 Q2 2022 Change Net sales 3,709 4,231 -12.3% • Notably decreased consumer demand Organic growth -10.7% 6.4% -17.1pts • Market-driven volume drop Currency -1.6% 9.0% -10.6pts • Positive price EBIT 200 426 -53.1% • Favorable mix wi
Slide 15: Outlook and summary
Outlook and summary
Slide 16: Market outlook FY 2023 per region
Market outlook FY 2023 per region Europe Negative North America Negative 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 A
Slide 17: 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 and expected to turn factors negative from Q3 2023 I
Slide 18: 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 Q2: • Group-wide cost reduction and North America turnaround program progressing well Driving sustainable Increasing efficiency • Flat mix in a cha
Slide 19: 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 20: Q&A
Q&A
Slide 21: 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 Q2: • Group-wide cost reduction and North America turnaround program progressing well Driving sustainable Increasing efficiency • Flat mix in a cha
Slide 22: Electrolux Group
r{) Electrolux Group