Slide 1: Q1 2023 Results presentation
Q1 2023 Results presentation Jonas Samuelson, President and CEO Therese Friberg, CFO Anna Ohlsson-Leijon, CCO Sophie Arnius, Head of Investor Relations
Slide 2: Q1 Highlights
Q1 Highlights Organic sales growth SEKm Q1 2023 Q1 2022 Change Net sales 32,734 30,118 8.7% • Solid price development Organic growth 2.2% -3.4% 5.6pts • Overall lower volumes, demand-driven Acquisitions 0.0% 0.1% -0.1pts • New product ranges contributing to increased volumes and Divestments -1.1% 0.
Slide 3: Sales and EBIT Bridge
Sales and EBIT Bridge Volume/ Innovation/ Cost External SEKm Q1 2022 Acq/Divest.4 Q1 2023 price/mix marketing1 efficiency2 factors3 Net Sales 30,118 695 2,291 -370 32,734 Growth % 2.2% 7.6% -1.1% 8.7% EBIT excl NRI5 919 1,191 126 254 -2,169 -16 305 EBIT excl NRI % 3.1% 0.9% Accretion/ 3.8 pts 0.4 pt
Slide 4: Earnings contribution from price/mix
Earnings contribution from price/mix Business Area Q1 Comments Focus on premium brands AEG and Electrolux Europe Positive continues to pay off. Solid price Unfavorable product mix compared to strong North America Negative execution last year. Flat price Well-received product launches and increased L
Slide 5: 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 Key savings levers Implementation status, 3M 2023, y-o-y1 3M 2023 >7 Supply-chain: • Reduce premium freight & • Fully completed, impact will accumulate spot buy of components quarter by quart
Slide 6: Sustainability drives financial performance
Sustainability drives financial performance 2025 Science Based targets achieved by 2022 Consumers are rewarding sustainability leadership Sustainability is a Our sustainable products are key selection criteria more profitable 100 100 82% >25% • 93% of consumers wish to 100% lead a more sustainable l
Slide 7: Operating Cash Flow
Operating Cash Flow SEKm Q1 2023 Q1 2022 EBIT -256 1,575 D/A and other non-cash items 2,066 672 Change in operating assets and liabilities -5,799 -6,182 Investments in intangible and tangible assets -1,131 -1,339 Changes in other investments 28 -6 Cash flow after investments* -5,092 -5,280 *Before a
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- • SEK 28.7bn in liquidity incl. RCF as per March 31, 2023 • No financial covenants in any loan agreements • Target to maintain a solid investment grade rating - S&P Global Ratings
Slide 9: Europe
Europe Organic sales decline SEKm Q1 2023 Q1 2022 Change Net sales 11,339 11,535 -1.7% • Volume drop, weaker consumer demand Organic growth -4.9% -4.3% -0.7pts • Solid price Acquisitions 0.0% 0.3% -0.3pts Divestments -3.0% 0.0% -3.0pts • Favorable mix through focus on premium brands and products Cur
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 Q1 2023 PRESENTATION 10
Slide 11: North America
North America Volume-driven organic sales growth SEKm Q1 2023 Q1 2022 Change Net sales 11,504 9,940 15.7% • Increased volumes Organic growth 4.0% -0.3% 4.3pts • Market share gains supported by new attractive product Currency 11.7% 10.7% 1.0pts offering EBIT -439 752 N/A • Flat price - positive impac
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 January 1 – April 1, 2023, vs Januar
Slide 13: Latin America
Latin America Organic sales growth SEKm Q1 2023 Q1 2022 Change Net sales 6,196 4,761 30.1% • Decreased consumer demand in Brazil and Chile, while up Organic growth 20.9% -6.0% 26.9pts in Argentina Currency 9.2% 11.4% -2.2pts • Increased volumes and market share gains EBIT 236 85 N/A • Favorable mix,
Slide 14: Asia-Pacific, Middle East and Africa
Asia-Pacific, Middle East and Africa Organic sales decline SEKm Q1 2023 Q1 2022 Change Net sales 3,695 3,882 -4.8% • Decreased consumer demand Organic growth -5.5% -5.2% -0.3pts • Market-driven volume drop Currency 0.7% 5.5% -4.8pts EBIT 124 284 -56.4% • Positive price Margin 3.3% 7.3% -4.0pts • Unf
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 Neutral 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 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 Differences in price dynamics between regions. factors High promotional activity 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 Q1: • Group-wide cost reduction and North America turnaround program progressing as planned Driving sustainable Increasing efficiency • New attract
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 Q1: • Group-wide cost reduction and North America turnaround program progressing as planned Driving sustainable Increasing efficiency • New attract
Slide 22: Electrolux Group
r{) Electrolux Group