[PPT] - Business overview Jonas Samuelson, President and CEO Coronavirus PowerPoint Presentation

SLIDE 1

Q1 Results

presentation

2020

SLIDE 2

Business overview

Jonas Samuelson, President and CEO

SLIDE 3

Coronavirus implications in Q1

3 ELECTROLUX Q1 2020 PRESENTATION

Euro urope Severe market impact from mid March due to lock-downs. Italian production closed from 2nd half of March Nor North A Ame merica Most retail open and strong demand in March but increasing impact from social distancing measures Limited Q1 impact on production Latin A in Americ ica Strong social distancing measures Majority of retail in major markets closed in second half of March Production constraints end March Asi sia-Paci cific, Mi , Middle e East and A Africa ca Declines in most markets, but large variances between countries. Lockdown or movement restrictions in most markets Limited impact in production

SLIDE 4 ELECTROLUX Q1 2020 PRESENTATION 4

Responding to the coronavirus situation with comprehensive actions

Phase 1

Cash focus

Phase 2

Cost efficiency focus

Phase 3

“New normal”

Time horizon

Duration of major

demand- and supply disturbances

Duration of significant

macroeconomic effects

Post coronavirus

situation Key actions

Direct management of

cash in- and outflows

Funding actions
Production and supply

actions

Furloughing
Marketing and structural

cost reduction

Adapting manufacturing
Reprioritizing CAPEX
Go to market strategy

acceleration

Adapting to longer term

demand development

Flexible supply chain
Core strategy well

adapted to new reality Health and safety main priority The strong corporate culture is a key driver for our competitiveness and our ability to manage cost

SLIDE 5

Q1 Highlights

Sales decline driven by lower volumes

Lower North America volumes, mainly

manufacturing transition

Market demand down by end Q1
Mix improvements and price increases

Earnings impacted negatively

Coronavirus impact SEK~-400m
Significant currency headwinds
Cost-cutting measures implemented
Raw material and trade tariffs contributed

positively Electrolux Professional distributed and listed

*Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q1 2020 PRESENTATION 5 0.0% 2.0% 4.0% 6.0% 8.0% 400 800 1,200 1,600 2,000 2,400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q1 2 1 202 020 Q1 2 1 2019 019 Cha hange Net s et sales es 26, 6,578 27,40 408

3.

3.0% 0% Or Orga ganic gr growth

5.1%

1% 1. 1.2%

6.3p

3pts Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1%

0.

0.1p 1pts Dives estm tmen ents ts 0. 0.0% 0%

0.

0.7% 0. 0.7pts Curre rrency 2.1% 1% 4.9 .9%

2.8p

8pts ts EBIT BIT 12 122

53

53 n.m n.m Marg rgin 0. 0.5%

0.

0.2% 0. 0.7pts EBIT BIT ex

excl. N

NRI 12 122 1, 1,001 001

87

87.8% 8% EBIT BIT m margin ex

excl. N

NRI 0. 0.5% 3. 3.7%

3.

3.2pts

SLIDE 6

Driving sustainable consumer experience innovation

Boosting margin through resource-efficient products

— Consumers are willing to pay a premium for resource-efficient products — Sales of Electrolux UltraCare washing machines grew by 27% and accounted for 20% of Electrolux branded laundry volumes in Europe 2019 — These resource-efficient washing machines have twice the margin compared to other washing machines.

Leveraging our Swedish heritage in Australia

— The Electrolux brand has a competitive advantage as Australian consumers associate Sweden with premium and quality — New premium products under a sharper Electrolux brand contributed to a 45% sales increase during 2019

ELECTROLUX Q1 2020 PRESENTATION 6

SLIDE 7

Europe

Mix improvements from built-in

Mix improvements compensated for

volume decline

Slight price decreases
Overall market demand declined

Operating income declined

Currency headwinds impacted

negatively

Volume decline partly offset by costs-

cutting measures

Mix and raw material impacted positively

ELECTROLUX Q1 2020 PRESENTATION 7 *Excluding non-recurring items (NRI) and currency adjusted. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 200 400 600 800 1,000 1,200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q1 2 1 202 020 Q1 2 1 2019 019 Cha hange Net s et sales es 10, 10,908 08 10,553 ,553 3. 3.4% Or Orga ganic gr growth 0. 0.3% 3% 4. 4.4% 4%

4.1p

1pts Acquis isit itio ions 0. 0.0% 0% 0. 0.3% 3%

0.

0.3p 3pts Curre rrency 3. 3.1% 1% 3. 3.5%

0.

0.4pts EBIT BIT 558 558 68 686

18

18.6% Marg rgin 5.1% 1% 6.5 .5%

1.

1.4pts EBIT BIT ex

excl. N

NRI 558 558 68 686

18

18.6% EBIT BIT m margin ex

excl. N

NRI 5.1% 1% 6.5 .5%

1.

1.4pts

SLIDE 8

European Core Appliances Market

Source: Electrolux estimates

Total European shipments, quarterly unit comparison y-o-y

ELECTROLUX Q1 2020 PRESENTATION 8

8%

8%

6
6%
4%

4%

2%

2% 0% 0% 2% 2% 4% 4% 6% 6% 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 2 201 019 20 2020 20

SLIDE 9

North America

Organic sales decline

Lower volumes related to manufacturing

transition in Anderson

Lower sales of private label products

and air-conditioners Negative operating income

Mainly a result of lower volumes
Manufacturing transition costs
Increased aftermarket sales

ELECTROLUX Q1 2020 PRESENTATION 9 *Excluding non-recurring items (NRI) and currency adjusted.

6.0%
4.0%
2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

600
400
200

200 400 600 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q1 2 1 202 020 Q1 2 1 2019 019 Cha hange Net s et sales es 8,409 09 9, 9,099 99

7.

7.6% Or Orga ganic gr growth

13.

13.1% 1%

5.0%

0%

8.

8.1pts ts Dives estm tmen ents ts 0. 0.0% 0%

2.0%

0% 2.0p 0pts Curre rrency 5.6 .6% 10. 10.5%

4.9

.9pts EBIT BIT

299
48

482

37

37.9% Marg rgin

3.

3.6%

5.3%

3% 1. 1.7pts EBIT BIT ex

excl. N

NRI

299

34 347 n.m n.m EBIT BIT m margin ex

excl. N

NRI

3.

3.6% 3. 3.8%

7.

7.4pts

SLIDE 10

U.S. Core Appliances Market

U.S. shipments, quarterly unit comparison y-o-y

Source: US Core white includes: AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges/Cookers and Ovens) and Cooktops. ELECTROLUX Q1 2020 PRESENTATION 10

15

15%

1
10%

0%

5%

5% 0% 0% 5% 5% 10% 0% 15% 5% 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 2 201 019 20 2020 20

SLIDE 11

Latin America

Lower volumes and higher price/mix

Consumer demand growth in Brazil, while

demand declined in Argentina and Chile

Significant demand drop second half

March

Lower volumes partly offset by price/mix

Operating income decline

Significant currency headwinds
Strong price/mix contribution

Note: Excluding non-recurring items (NRI). NRI in Q1 2019 includes restructuring charge of SEK 225m. ELECTROLUX Q1 2020 PRESENTATION 11 *Excluding non-recurring items (NRI) and currency adjusted.

2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

100

100 200 300 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q1 2 1 202 020 Q1 2 1 2019 019 Cha hange Net s et sales es 3, 3,826 4,312 312

11.

11.3% 3% Or Orga ganic gr growth

1.

1.9% 6.9 .9%

8.

8.8p 8pts ts Curre rrency

9.3%

3%

5.4

.4%

3.

3.9pts EBIT BIT

15

15

223
93.

3.2% Marg rgin

0.

0.4%

5.2%

.2% 4.8p 8pts ts EBIT BIT ex

excl. N

NRI

15

15 2 n.m n.m EBIT BIT m margin ex

excl. N

NRI

0.

0.4% 0. 0.0% 0%

0.

0.4pts

SLIDE 12

Asia-Pacific, Middle East and Africa

Early impact on sales

Consumer demand decline, primarily in

East Asia

Australia and Egypt market growth
Lower sales volumes in Southeast Asia

and China Significant currency impact

Strong currency headwind, mainly AUD
Cost-saving activities partly offset lower

volumes

Positive mix in Australia

Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q1 2020 PRESENTATION 12 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 50 100 150 200 250 300 350 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q1 2 1 202 020 Q1 2 1 2019 019 Cha hange Net s et sales es 3, 3,434 34 3,445 445

0.

0.3% 3% Or Orga ganic gr growth

3.

3.2% 2.2%

5.4

.4pts Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1%

0.

0.1p 1pts Curre rrency 2.9 2.9% 5. 5.5% 5%

2.6p

6pts EBIT BIT 44 44 110 110

60

60.2% Marg rgin 1. 1.3% 3% 3. 3.2%

1.

1.9pts EBIT BIT ex

excl. N

NRI 44 44 110 110

60

60.2% EBIT BIT m margin ex

excl. N

NRI 1. 1.3% 3% 3. 3.2%

1.

1.9pts

SLIDE 13 For Internal Use Only

Financial overview

Therese Friberg, CFO

SLIDE 14

Financial overview

ELECTROLUX Q1 2020 PRESENTATION 14

Q4 Q4 2 2019 19 Q4 Q4 2 2018 18 Cha Change FY 2 2019 FY 2 2018 Cha Change 32,0 ,011 11 32, 2,021 21 0. 0.0% 0% 118 118,9 ,981 115,4 115,463 3. 3.0% 0%

2.8%

8% 2.6% 6%

5.4

5.4pts

1.0

1.0% 1.2 1.2%

2.

2.2p 2pts 0. 0.0% 0%

0.7%

7% 0.7pt pts

0.

0.3% 3% 0.4% 4%

0.7pt

pts 2.8% 8% 3.1% .1%

0.

0.3p 3pts 4. 4.3% 0.9 .9% 3.4p 4pts 5,7 5,756 56 5,7 5,718 18 0.7% 7% 19 19,7 ,799 20, 0,001 001

1.0

1.0% 18 18.0 .0% 17 17.9 .9% 0.1p .1pts 16. 6.6% 6% 17 17.3 .3%

0.7pt

pts 960 60 1,6 1,670

42.5%

.5% 3,18 ,189 4,17 ,176

23.6%

6% 3. 3.0% 0% 5.2 5.2%

2.

2.2p 2pts 2.7% 7% 3.6% 6%

0.9p

9pts

71

71 N/ N/A

1,3

1,344

1,3

1,343 0.1% .1% 960 60 1,59 1,599

40.

0.0% 0% 4,53 ,533 5,519 5,519

17

17.9 .9% 3. 3.0% 0% 5.0 5.0%

2.0pts

3.8% 8% 4. 4.8%

1.0

1.0pts

Op. ca

cash sh f flow a w afte ter i r inv nvestm stments nts 2, 2,822 22 2,6 ,656 56 6. 6.3% 2, 2,28 280 2,646 646

13

13.8 .8% Net sa t sales Org rgani nic g c gro rowth wth EBIT m IT margin in e excl.

l. N

NRI Non- n-re recu curri rring ng i ite tems EBIT IT EBIT m IT margin in Gro Gross o ss opera rati ting ng i inco ncome SEKm EKm Gro Gross o ss opera rati ting ng m marg rgin Acq cquisi siti tions/ ns/divestm stments nts Curre rrency ncy EBIT e IT excl.

l. N

NRI SEKm EKm Net sa t sales Org rgani nic g c gro rowth wth Acq cquisi siti tions/ ns/divestm stments nts Curre rrency ncy Gro Gross o ss opera rati ting ng i inco ncome Gro Gross o ss opera rati ting ng m marg rgin n EBIT IT Ma Marg rgin Non- n-re recu curri rring ng i ite tems EBIT e IT excl.

l. N

NRI Ma Marg rgin e n excl cl N NRI

Op. ca

cash sh f flow a w afte ter i r inv nvestm stments nts Q1 20 2020 20 122 22 0.5% .5% Q1 2 Q1 2019 19 Cha Change 26,57 ,578 27,40 408

3.

3.0% 0% 15.0 15.0% 14. 4.4% 4% 0.6p 6pts 2.1% .1% 4. 4.9%

2.8pt

pts

5.1%

5.1% 1.2 1.2%

6.

6.3pts 0. 0.0% 0%

0.6%

6% 0.6p 6pts

53

53 n. n.m 3,977 77 3,943 43 0.9 .9% 122 22 1,0 1,001

87

87.8% 8% 3.7% 7%

3.2pts

0.5% .5%

0.2%

2% 0.7pt pts

1,0

1,054 54 n. n.m

2
2,93

938

3,0

,017 17

2.6%

6%

SLIDE 15

Sales and EBIT Bridge

*Non-recurring items (NRI) in Q1 2019 amounted to SEK -1,054m. **Currency includes SEK 13m of currency translation effects and -601m of transaction effects on EBIT. ELECTROLUX Q1 2020 PRESENTATION 15

SEKm EKm Q1 Q1 2 2019 e excl. . NRI NRI* Vol Volume me/ Pri rice ce/Mi Mix Raw aw mat aterial al & & Ta Tarif iffs Curre rrency ncy** Net C t Cost st Effici ciency ncy Ac Acq/ q/ Div Divest. Q1 2 202 020

excl. NRI

NRI* NR NRI* Q1 20 2020 20 Net et S Sales es 27,40 408

1,4

1,431 60 601 26,57 ,578 26,57 ,578 Gro Growth wth % %

5.1%

5.1% 2.1% .1% 0. 0.0% 0%

3.

3.0% 0%

3.

3.0% 0% EBIT IT 1,0 1,001

84

84 62 62

588

88

269

69 122 22

122

22 EBIT % IT % 3.7% 7% 0.5% .5% 0.5% .5% Accre ccreti tion/ n/ Dilu Dilutio ion

0.1%

.1% 0.2% 2%

2.

2.3%

1.0

1.0%

SLIDE 16

Earnings contribution from price/mix

ELECTROLUX Q1 2020 PRESENTATION 16

Lati tin A n Ameri rica ca Posit itiv ive Pri rice ce i incre ncrease ses a s and nd so some m mix i impro rovements nts Asi sia-Paci cific, c, Mi Middle E East a st and nd A Afri rica ca Posit itiv ive Mi Mix i impro rovements a nts and nd f flat p t pri rice ces s Eu Europ

pe

Posit itiv ive Posi siti tive m mix d dri riven b n by ne new b w built i t in k n kitch tchen ra n rang nge Slight p t pri rice ce e ero rosi sion n North rth A Ameri rica ca Posit itiv ive Stro trong ng m mix i impro rovement, nt, sl slight p t pri rice ce i incre ncrease se Busi usiness A ss Are rea Price/ ce/Mi Mix Comme

mments f

for

r Q

Q1 Gr Group EB EBIT % IT % a accretion +2 +2.9 .9%

SLIDE 17

Currency effects

17 ELECTROLUX Q1 2020 PRESENTATION

Business Area, in SEKm Q1 2020 Q2 2020e FY 2020e Europe

156
100
350

North America

24

50 50 Latin America

237
350
1,000

Asia-Pacific, Middle East and Africa

167
100
400

Other

4

Total Group

588
500
1,700

*Note: The calculation for Q2 2020e and FY 2020e are based on currency rates as per May 4, 2020.

SLIDE 18

Operating Cash Flow

*Before acquisitions and divestments ELECTROLUX Q1 2020 PRESENTATION 18

Q1 20 2020 20 122 22 1,4 1,412 12

3,3

,358 58

1,154

1,154 40 40

2,938

938

3,01

017

165

65

1,0

1,080

3
3,98

983 2, 2,26 264

53

53 Q1 2 Q1 2019 19 SEKm EKm EBIT IT D/A a and nd o

th

ther no r non- n-ca cash sh i ite tems Chang nge i in o n opera rati ting ng a asse ssets a ts and nd l liabiliti ties Inv nvestm stments i nts in i n inta ntang ngible a and nd ta tang ngible a asse ssets ts C Chang nges i s in o n oth ther i r inv nvestm stments nts Cash sh f flow a w afte ter i r investm stments* ts*

SLIDE 19

Financing

19 ELECTROLUX Q1 2020 PRESENTATION

1 2 3 4 5 6 7 2020 2021 2022 2023 2024 2025-

SEKbn bn

Long-term borrowings, by maturity March

Two bond loans totaling SEK 3.0bn under the Euro

Medium Term Note (EMTN) program, maturity 2022

2-year private placement of USD 150m

April

Two bond loans totaling SEK 3.4bn under the

EMTN program, maturity 2023

5-year private placement of NOK 500m
Credit facility signed of SEK 3bn, expiring 2021

Unused credit facilities

EUR 1bn, expiring 2023
SEK 3bn, expiring 2021

SLIDE 20

Outlook and summary

Jonas Samuelson, President and CEO Therese Friberg, CFO

SLIDE 21

Market outlook FY 2020 per region

Negative

North America Increased unemployment, lower consumer confidence

Negative

Europe GDP drop from extended economic lockdown

Negative

Latin America Significant political and economic turmoil in all three ABC countries

Negative

Asia-Pacific, Middle East and Africa Mainly driven by SEA and MEA

* Electrolux estimates for industry shipments of core appliances, units year-over-year ELECTROLUX Q1 2020 PRESENTATION 21

SLIDE 22

Coronavirus estimated impact Q2

22 ELECTROLUX Q1 2020 PRESENTATION

Ma Market Sa Sales les (Ap April) il) Produ duct ction Europe

Most countries in lockdown in

April; stores opening in May

Negative demand Q2
Approx. -40%
Soft opening of factories from end of

April

Production aligned to lower demand

North America

Stores open in April
Negative sales due to

availability Q2

Approx. -15%
Production constraints due to

availability of components from Mexico and social distancing restrictions Latin America

Most countries in lockdown in

April; more stores opening in May

Negative demand Q2
Approx. -50%
Factories to a large extent closed in

April (mandated or demand driven)

Gradual reopening in May

APAC MEA

Several countries in lockdown,

exceptions incl. Australia

Negative demand Q2, but with

improving trend

Approx. -25%
Adjusted to reflect lower demand

Group

Approx. –30%

Q2 Group: significant loss expected

SLIDE 23

Electrolux business outlook

*Business outlook range: Favorable - Neutral - Unfavorable. **Efficiencies in variable costs (excl. raw materials and trade tariffs) and structural costs. ***Impact on operating income for the full year 2020, whereof currency transaction effects of SEK -1,600m and currency translation effects of SEK -100m. The calculation is based on currency rates as per May 4, 2020. Note: Business outlook in the above table excludes non-recurring items. ELECTROLUX Q1 2020 PRESENTATION 23

Net co t cost e st effici ciency ncy** Neut utral al Favorabl able Compre rehensi nsive a acti ctions i ns incl ncl. si signi nifica cantl ntly re reduce ced d discre screti tiona nary ry sp spend nding ng a and nd f furl rloughs s Curre rrency ncy e effect* ct*** SEK SEK -5

500m

SEK SEK -1

1,700m

Vol Volume me/price/mi mix Unfavorab able Unfavorab able Volume d e dec ecline d e driven ven b by t the e co coro rona naviru rus p s pand ndemic, c, p partl rtly o

ffse

set t by cu curre rrency ncy d dri riven p n pri rice ces s Raw m w mate teri rial co costs & sts & tra trade ta tari riffs Dec ecrea ease o e of S f SEK ~ ~0.1b .1bn Dec ecrea ease o e of S f SEK 0 0.3 .3- 0.6b 6bn Raw m w mate teri rial ta tailwi wind nd p partl rtly o

ffse

set t by by t tar ariffs Cape pex Decre crease se SEK SEK ~ ~5bn Busi usiness o ss outl utlook*, *, y y-o-y Q2 20 2 2020 20 FY 20 Y 2020 20 Comme

mments f

for

r t

the f full y year 2 202 020

SLIDE 24

Well positioned to create value

24 ELECTROLUX Q1 2020 PRESENTATION

Financial targets for profitable growth*

Strategic drivers executed in Q1:

Mix improvements across all business

areas

Consolidating U.S. fridge/freezer

production

Distributed and listed Electrolux

Professional

Agile and flexible short term while

keeping focus on long-term value creation

*Financial targets are over a business cycle

Increase efficiency through digitalization, automatization and modularization Solid balance sheet facilitates profitable growth

OPERATING MARGIN

6%

SALES GROWTH

4%

RONA**

>20%

≥ ≥

Driving sustainable consumer experience innovation

SLIDE 25

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 expectations prove to have been correct as they are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but are not limited to, changes in consumer demand, changes in economic, market and competitive conditions, currency fluctuations, developments in product liability litigation, changes in the regulatory environment and other government actions. Forward-looking statements speak only as of the date they were made, and, other than as required by applicable law, the company undertakes no obligation to update any of them in light of new information or future events.

Factors affecting forward-looking statements

ELECTROLUX Q1 2020 PRESENTATION 25

SLIDE 26

Q&A

SLIDE 27

Well positioned to create value

27 ELECTROLUX Q1 2020 PRESENTATION

Financial targets for profitable growth*

Strategic drivers executed in Q1:

Mix improvements across all business

areas

Consolidating U.S. fridge/freezer

production

Distributed and listed Electrolux

Professional

Agile and flexible short term while

keeping focus on long-term value creation

*Financial targets are over a business cycle

Increase efficiency through digitalization, automatization and modularization Solid balance sheet facilitates profitable growth

OPERATING MARGIN

6%

SALES GROWTH

4%

RONA**

>20%

≥ ≥

Driving sustainable consumer experience innovation

SLIDE 28

SLIDE 29

Consolidated statement

SEKM EKM Q12020 Q42019 Q32019 Q22019 Q12019 Net sales 26,578 32,011 30,330 29,232 27,408 Cost of goods sold

22,600
26,255
25,723
23,740
23,465

Gro ross ss opera rati ting i income 3, 3,97 977 5, 5,756 56 4, 4,607 607 5,492 3, 3,94 943 Selling expenses

2,620
3,434
3,028
2,984
2,740

Administrative expenses

1,097
1,375
1,675
1,155
1,276

Other operating income/expenses

138

12 1,159

134

20 Operatin ing inc income 122 22 960 60 1,063 063 1,219 19

53

53 Financial items, net

171
223
175
178
156

Income after financial items

48

736 888 1,041

209

Taxes

38
370
277
35

46 Inc ncome fo for t the he perio iod, cont ntinu inuing ing o

perations

ns

86

86 366 66 61 610 1,006 006

162

62 Earn rnings p s per r sh share re, SE SEK Basic, continuing operations

0,30

1.27 2,12 3,50

0,56

Diluted, continuing operations

0,30

1.27 2,12 3,49

0,56

Note: continuing operations ELECTROLUX Q1 2020 PRESENTATION 29