Slide 1: Electrolux Group Q4 2023 Results presentation
Electrolux Group Q4 2023 Results presentation Jonas Samuelson, President and CEO Therese Friberg, CFO Sophie Arnius, Head of Investor Relations
Slide 2: Full year 2023
Full year 2023 Challenging market conditions pressuring profitability * Organic sales decline driven by lower volumes * Slightly positive price although pressured by increase in promotional market activity as the year progressed * Favorable mix through attractive product offering, despite weak marke
Slide 3: Q4 Highlights
Q4 Highlights Slight organic sales decline * Negative price; promotional activity remains high * Slightly lower volumes * Positive mix despite challenging markets EBIT loss * Loss in North America mainly driven by price pressure * Unfavorable organic contribution due to price * Positive contribution
Slide 4: Non-recurring items in Q4
Non-recurring items in Q4 HX) Expanded Group- Divestment of wide cost reduction : Impairment factory in and NA turnaround Memphis of assets program Europe -1,590 -205 -1,795 North America -114 262 148 Latin America -51 -51 Asia-Pacific, Middle East 323 323 and Africa Group common costs -470 -470 Tot
Slide 5: Sales and EBIT Bridge
Sales and EBIT Bridge sekm Qu 2022 ition "marketing? efficiency? —sfactorge 4 2023 Net Sales 35,769 1,023 890 35,636 Growth % -2.8% 2.4% 0.4% EBIT excl NRIP -612 4731 124 950 54h 72h EBIT excl NRI% 17% -2.0% Aecretion/ -5.0 pts 0.4 pts 27 pts 1.6 pts 1 Excludes currency related price increases in Ar
Slide 6: Sales and EBIT Bridge Full Year
Sales and EBIT Bridge Full Year Volume/ — Innovation/ Cost External SEKm AOA price/mix' marketing? efficiency factors HOP Net Sales 134,880 -6,172 6,267 134,451 Growth % 4A 44% -0.3% EBIT excl NRIP 831 -2,789 757 4,712 -3,097 4l4 EBIT excl NRI % 0.6% 0.3% Accretion/ Dilution -2.1 pts 0.6 pts 3.7 pts
Slide 7: Executing on cost reduction target
Executing on cost reduction target X) Net cost reduction y-o-y, SEKbn SEK 5.5bn savings delivered in 2023 Cost reduction target * Key levers executed 2023 + SEK 4-5bn in 2024 vs 2023 Product cost — Organizational simplification and overhead efficiency oy3) 4-5 FY 2023. FY 2024e Hl Achieved [J Planne
Slide 8: Operating Cash Flow
Operating Cash Flow A) SEKm Q4 2023 Q4 2022 FY 2023 FY 2022 EBIT -3,215 -1,964 -2,988 -215 D/A and other non-cash items 477 2,724 9,812 7,060 Change in operating assets and liabilities 4,202 1,472 597 -6,367 Investments in intangible and tangible assets -1,999 -2,446 -5,699 -7,389 Changes in other i
Slide 9: Solid liquidity and maturity profile
Solid liquidity and maturity profile seKbn Long-term borrowings, by maturity 10.0 8.0 6.0 4.0 2.0 0.0 2024 2025 2026 2027 2028 2029- Data as per December 31, 2023 * SEK 32.8bn in liquidity incl. RCF as per December 31, 2023 * No financial covenants in any loan agreements * Target to maintain a solid
Slide 10: Europe
Europe Organic sales decline + Lower volumes driven by weak consumer demand * Focus area built-in kitchen particularly impacted * Price turned negative; high promotional activity * Favorable mix EBIT decreased vs. LY * Negative impact from volume and price * Savings from Group-wide cost reduction pr
Slide 11: European Core Appliances Market
European Core Appliances Market A) Total European shipments, quarterly unit comparison y-o-y 40% 30% 20% 10% | | | | 0% -_ Eaote = OO ee | l \ Hey 7 mT 10% | | | -20% 2013, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Electrolux estimates. As from Ql 2020, Russia is excluded. AB ELECTRO
Slide 12: North America
North America Organic sales decline * Negative price and lower volumes due to high price pressure in the market * Final cooking manufacturing consolidation partly limited ability to capture market demand Operating loss * Negative organic contribution, primarily price * Higher cost level due to Sprin
Slide 13: U.S. Core Appliances Market
U.S. Core Appliances Market HX) U.S. shipments, quarterly unit comparison y-o-y 30% 25% 20% 15% 10% ; IL ill. ill 1 0% | LL ah. 5% 10% 15% | | | | | 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 “Source: Based on the AHAM Factory Shipment Report. Q& 2023 is a comparison of weeks between Oct
Slide 14: Latin America
Latin America Significant organic sales growth Slightly favorable mix Strong aftermarket sales Significant EBIT increase * Proactive price management in Argentina offset significant currency headwinds * Strong seasonal organic sales performance * Positive contribution from Group-wide cost reduction
Slide 15: Asia-Pacific, Middle East and Africa
Asia-Pacific, Middle East and Africa Organic sales growth * Continued low consumer confidence * Favorable price; price increases in high-inflationary countries offset increased promotional activity * Market-driven volume decline Increased EBIT excl NRI * Savings from Group-wide cost reduction progra
Slide 16: Outlook and summary
Slide 17: Market outlook FY 2024 per region
Market outlook FY 2024 per region Electrolux estimates for industry shipments of core appliances, units year-over-year Latin America includes the ABC-countries, Asic-Poctfc includes, ANZ and SEA. Note: Market outlook assumes no significant adcitional impact fromthe global geopoltical situation. Pres
Slide 18: Electrolux business outlook
Electrolux business outlook Business Outlook! y-o-y FY 2024 Comments Volume/price/mix? Negative Driven by price, partly offset by growth in focus categories. Investments in consumer experience innovation and marketing* Positive SEK 4-5bn, combined Cost efficiency“ Benefits from the expanded Group-wi
Slide 19: Organizational structure 2024
Organizational structure 2024 HX) The Group has reorganized into three regional business Business Areas 2023 areas and two global product lines. * Leveraging the Group’s global scale with fewer layers, resulting in increased focus and reduced costs. Middle East & ff Latin America Africa Asia-Pacific
Slide 20: Strategy for profitable growth
Strategy for profitable growth) Financial targets Operating Return on net Sales margin assets growth 26% >20% 24% The primary financial priority is achieving our financial targets of an operating margin of at least 6% and a return on net assets of over 20%, over a business cycle. Once established, o
Slide 21: Factors affecting forward-looking statements
Factors affecting forward-looking statements This presentation contains “forward-looking” stat company’s current expectations. Although the company at the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations prove to have been cor
Slide 22: Q&A
Slide 23: Strategy for profitable growth
Strategy for profitable growth Financial targets 6 * ———————_—_—_—_—_—__—_ ¥ * Operating Return on net y f margin assets 26% >20 , Strategic drivers executed in 2023: The primary financial priority is achieving our financial targets of an operating margin of at least 6% and a return on net assets of
Slide 24: Appendix
Appendix
Slide 25: Earnings contribution from price/mix
Earnings contribution from price/mix X) Business Area Q4, y-o-y FY, y-o-y Comments on Q4 y-o-y Price turned negative as effects from previous increases Europe Negative Positive tapered off and promotional activity increased significantly. Positive mix driven by premium brands. Negative price due to
Slide 26: Electrolux Group
r{) Electrolux Group