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

SLIDE 1

Q2 Results

presentation

2020

SLIDE 2

Business overview

Jonas Samuelson, President and CEO

SLIDE 3

Coronavirus impact Q2

3 ELECTROLUX Q2 2020 PRESENTATION

Ma Market Sales Q2 s Q2 Produ duct ction Europe

13% sell-in (volume) Q2
Most countries in lockdown in

April; stores opening in May

June growth; pent-up demand
14%
Soft opening of factories from end of April
Close to normal production in June

North America

6% sell-in (volume) Q2; less

decline June

Stores open
Supply constraints impacting
18%
Production constraints

− Factories in Mexico closed large part of Q2 − Availability of components from Mexico − Social distancing restrictions Latin America

Negative demand
April - most countries in lockdown
May/June – Softening of lockdown

rules, retail gradually opening. Growth in Brazil in June

24%
Factories to a large extent closed in April

(mandated or demand driven)

Gradual reopening in May; close to normal

production in June APAC MEA

Negative demand Q2
Weaker market for countries with

lockdown in April, incl. SEA, MEA

Strong growth in Australia
11%
Adjusted to reflect lower demand beginning

Q1

Close to normal production in June

Group –17%

SLIDE 4

Q2 Highlights

Volumes severely impacted by the Corona pandemic

Challenging market conditions; recovery

in June

Significant volume drop across all

business areas Navigating through challenging market

Strong cost-cutting measures
Mix improvements and price increases
Significant currency headwinds

*Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 2020 PRESENTATION 4

2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

400

400 800 1,200 1,600 2,000 2,400 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 23,47 476 29,232

19

19.7% Or Orga ganic gr growth

16.

6.6% 6%

3.

3.1% 1%

13.

13.5pts 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.

0.6% 0. 0.6pts Curre rrency

3.

3.1% 1% 3. 3.8%

6.9

.9pts EBIT BIT

62

62 1, 1,219 19 N/A N/A Marg rgin

0.

0.3% 3% 4. 4.2%

4.

4.4p 4pts EBIT BIT ex

excl. N

NRI

62

62 1, 1,219 19 N/A N/A EBIT BIT m margin ex

excl. N

NRI

0.

0.3% 3% 4. 4.2%

4.

4.4p 4pts

SLIDE 5

New consumer behaviors

5 ELECTROLUX Q2 2020 PRESENTATION

Spending more time at home Health and hygiene in focus Consumers more digital

SLIDE 6

Driving sustainable consumer experience innovation

Eco features in demand

— Electrolux dishwasher QuickSelect saves water and energy — Achieved high consumer star rating 2019 — Gained value market share

Entering Emerging Markets

— Rapid establishment in Morocco 2017 — Built on previous experience and market insights — Double digit market share in Morocco, 2019

ELECTROLUX Q2 2020 PRESENTATION 6

SLIDE 7

Europe

Sales decline due to lower volumes

Challenging April with restrictions
Sales growth in June as markets

picked up

Mix improvements, premium brands

gaining market share

Impact from extended closure of kitchen

retailers Strong cost-cutting execution

Lower marketing investments/

use of furloughs

Raw material impacted positively
Currency headwind

ELECTROLUX Q2 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 8, 8,888 888 10, 10,479

15

15.2% Or Orga ganic gr growth

14.

4.2% 0. 0.8%

15

15.0p 0pts Acquis isit itio ions 0. 0.0% 0% 0. 0.2%

0.

0.2pts Curre rrency

1.

1.0% 0% 2.3% 3%

3.

3.3p 3pts EBIT BIT 244 44 576 76

57.

7.6% Marg rgin 2.8 2.8% 5. 5.5% 5%

2.7p

7pts EBIT BIT ex

excl. N

NRI 244 44 576 76

57.

7.6% EBIT BIT m margin ex

excl. N

NRI 2.8 2.8% 5. 5.5% 5%

2.7p

7pts

SLIDE 8

European Core Appliances Market

Source: Electrolux estimates

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

ELECTROLUX Q2 2020 PRESENTATION 8

14

14%

12

12%

1
10%

0%

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

Supply constraints

Market volumes impacted by supply

constraints

Production and sales impacted by

Mexico restrictions Lower availability and higher production costs impacting EBIT

Increased costs related to manufacturing

consolidation

Cost efficiency actions and slight price

increases

ELECTROLUX Q2 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 8,53 ,537 10, 10,255

16

16.8% Or Orga ganic gr growth

17

17.9%

10.

10.8%

7.1p

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

1.

1.5% 1. 1.5pts Curre rrency 1. 1.2% 7. 7.2%

6.0p

0pts EBIT BIT

17

173 504 04 N/A N/A Marg rgin

2.0%

0% 4.9 .9%

6.9

.9pts EBIT BIT ex

excl. N

NRI

17

173 504 04 N/A N/A EBIT BIT m margin ex

excl. N

NRI

2.0%

0% 4.9 .9%

6.9

.9pts

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 Q2 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

Volumes severely impacted by the pandemic

Consumer demand declined due to lock-

downs and restrictions

Demand picked up in June
Lower volumes partly offset by price/mix

Lower volumes, strong FX headwind

Price increases to mitigate significant

currency headwind

Cost-cutting measures
Positive contribution from mix

Note: Excluding non-recurring items (NRI). NRI in Q1 2019 includes restructuring charge of SEK 225m. ELECTROLUX Q2 2020 PRESENTATION 11 *Excluding non-recurring items (NRI) and currency adjusted. SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 2,822 4,816 16

41

41.4% 4% Or Orga ganic gr growth

24.

4.2% 8.3% 3%

32

32.5pts Curre rrency

17

17.2%

1.

1.8%

15

15.4pts EBIT BIT

18

183 16 164 N/A N/A Marg rgin

6.5

.5% 3. 3.4%

9.

9.9p 9pts EBIT BIT ex

excl. N

NRI

18

183 16 164 N/A N/A EBIT BIT m margin ex

excl. N

NRI

6.5

.5% 3. 3.4%

9.

9.9p 9pts

8.0%
6.0%
4.0%
2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

200
100

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

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12

SLIDE 12

Asia-Pacific, Middle East and Africa

Sales impacted by pandemic

Consumer demand declined in most

markets, except Australia

Sales growth in Australia
Lower sales volumes in SEA and MEA
Mix improvements and price increases

Lower volumes impacted earnings

Strong cost-savings execution
Good traction from product launches in

Australia

Continued currency headwind

Note: Excluding non-recurring items (NRI) and currency adjusted. ELECTROLUX Q2 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020

EBIT IT a and m d margin gin*

EBIT EBIT % EBIT % R12 SE SEKm Km Q2 2 2020 Q2 2 2019 019 Cha hange Net s et sales es 3, 3,230 30 3, 3,682

12

12.3% 3% Or Orga ganic gr growth

10.

10.9%

4.0%

0%

6.9

.9pts Acquis isit itio ions 0. 0.0% 0% 0. 0.1% 1%

0.

0.1p 1pts Curre rrency

1.

1.3% 3% 3. 3.7%

5.0p

0pts EBIT BIT 15 159 17 171

7.

7.4% Marg rgin 4.9 .9% 4.7% 7% 0. 0.3p 3pts EBIT BIT ex

excl. N

NRI 15 159 17 171

7.

7.4% EBIT BIT m margin ex

excl. N

NRI 4.9 .9% 4.7% 7% 0. 0.3p 3pts

SLIDE 13 For Internal Use Only

Financial overview

Therese Friberg, CFO

SLIDE 14

Financial overview

ELECTROLUX Q2 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 122 22

25

25 N/ N/A 4. 4.2%

4.

4.4p 4pts

0.

0.3% 3% 4. 4.2%

4.

4.4p 4pts

1,2

1,219 19 N/ N/A 3,3 ,351 51 5,4 5,492

3
39.

9.0%

62

62 1,2 1,219 19 N/ N/A Q2 20 2 2019 Cha Change 23,47 476 29 29,23 232

19

19.7 .7% 14 14.3 .3% 18. 8.8% 8%

4.5p

.5pts

3.1%

.1% 3.8% 8%

6
6.9p

9pts

16.

6.6% 6%

3.1%

.1%

13

13.5p .5pts 0. 0.0% 0%

0.5%

.5% 0.5p .5pts Q2 20 2 2020 20

62

62

0.

0.3% 3%

SLIDE 15

Sales and EBIT Bridge

*Currency includes SEK -16m of currency translation effects and -349m of transaction effects on EBIT. ELECTROLUX Q2 2020 PRESENTATION 15

SEKm EKm Q2 Q2 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. Q2 20 2 2020 20

excl. NRI

NRI* NR NRI* Q2 20 2 2020 20 Net et S Sales es 29 29,23 232

4,

4,666 666

1,0

1,090 23,47 476 23,47 476 Gro Growth wth % %

3.5%

.5%

16

16.6 .6%

3.1%

.1% 0. 0.0% 0%

19

19.7 .7%

19

19.7 .7% EBIT IT 1,2 1,219 19

1,4

1,470 33 33

364

64 520 20

62

62

62

62 EBIT % IT % 4. 4.2%

0.

0.3% 3%

0.

0.3% 3% Accre ccreti tion/ n/ Dilu Dilutio ion

5.2

5.2% 0.1% .1%

1.5%

1.5% 2.1% .1%

SLIDE 16

Earnings contribution from price/mix

ELECTROLUX Q2 2020 PRESENTATION 16

Gr Group EB EBIT % IT % a accretion +1 +1.3 .3% Lati tin A n Ameri rica ca Posit itiv ive Pri rice ce i incre ncrease ses a s and nd 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 p pri rice ce i incre ncrease ses s Eu Europ

pe

Posit itiv ive Posi siti tive m mix d dri riven b n by p pre remium b bra rand nds, s, sl slight p t pri rice ce e ero rosi sion n North rth A Ameri rica ca Neg egative Slight p t pri rice ce i incre ncrease se, ne negati tive m mix d due to to su supply co constra nstraints nts Busi usiness A ss Are rea Price/ ce/Mi Mix Comme

mments f

for

r Q

Q2

SLIDE 17

Currency effects

17 ELECTROLUX Q2 2020 PRESENTATION

Business Area, in SEKm Q2 2020 Q3 2020e FY 2020e Europe

73
300

North America 67 50 Latin America

317
200
900

Asia-Pacific, Middle East and Africa

46
250

Other 5 Total Group

364
200
1,400

*Note: The calculation for Q2 2020e and FY 2020e are based on currency rates as per July 10, 2020.

SLIDE 18

Operating Cash Flow

*Before acquisitions and divestments ELECTROLUX Q2 2020 PRESENTATION 18

Q2 20 2 2020 20

62

62 1,2 1,258 58

51

51

1,0

1,080 57 57 122 22

25
10

105

1,3

1,305

1,0

1,096 1,2 1,262 1,2 1,219 19 Q2 20 2 2019 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 Q2 2020 PRESENTATION

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

SEKbn bn

Long-term borrowings, by maturity Q2

Two bond loans totaling SEK 3.4bn, maturity 2023
5-year private placement NOK 500m
7-year private placement of USD 150m
Credit facility of SEK 3bn, maturity 2021

July

Credit facility of SEK 10bn, expiring 2025

Unused credit facilities

EUR 1bn, expiring 2023
SEK 3bn, expiring 2021
SEK 10bn, expiring 2025

SLIDE 20

Outlook and summary

Jonas Samuelson, President and CEO Therese Friberg, CFO

SLIDE 21

Update on re-engineering and streamlining programs

21 ELECTROLUX Q2 2020 PRESENTATION SEKbn Note: Baseline 2019 normalized. Cost savings are net of expected transition costs. Cost s savings ngs fr from re-engi ngine neering ng inv nvestment nts and s nd streamlini ning m ng measures Cost savings (re-engineering and streamlining) vs. normalized 2019 Additional transition costs not incl. in normalized 2019

Annual cost savings SEK ~3.5 bn, full effect

from 2024

Corona pandemic delays savings near term
Springfield, the U.S.

— Delayed up to ½ year; equipment related

Anderson, the U.S.

— Ramp-up impacted by absenteeism and Covid-19 — Keep legacy Anderson until mid-2021 to avoid capacity constraints — Previous technical bottle necks worked through

Slight delays in other re-engineering projects
Streamlining activities progressing well
1

1 2 3 4 2019N 2019AC 2020e 2021e 2022e 2023e 2024e

SLIDE 22

Market outlook FY 2020 per region

Weak H1 2020
Near-term good demand

in several markets

Uncertainty in Q4

22 ELECTROLUX Q2 2020 PRESENTATION Negative

Electrolux estimates for industry shipments of core appliances, units year-over-year
Latin America includes the ABC-countries, Asia-Pacific, Middle East and Africa includes, ANZ, SEA and MEA.

Asia-Pacific, Middle East and Africa Europe North America Latin America Negative Negative Negative

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 -1,400m and currency translation effects of SEK 0m. The calculation is based on currency rates as per July 10, 2020. Note: Business outlook in the above table excludes non-recurring items and assumes no additional major restrictions due to the coronavirus pandemic. ELECTROLUX Q2 2020 PRESENTATION 23

Busi usiness o ss outl utlook*, *, y y-o-y Q3 2 202 020 FY 20 Y 2020 20 Comme

mments f

for

r t

the f full y year 2 202 020 Cape pex Decre crease se SEK SEK ~ ~5bn Net co t cost e st effici ciency ncy** Favorabl able 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 -2

200m

SEK SEK -1

1,400m

Vol Volume me/price/mi mix Favorabl 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 by p price/m /mix Raw m w mate teri rial co costs & sts & tra trade ta tari riffs Dec ecrea ease o e of S f SEK ~ ~150 150m 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

SLIDE 24

Well positioned to create value

24 ELECTROLUX Q2 2020 PRESENTATION

Financial targets for profitable growth*

Strategic drivers executed in Q2:

Mix improvements driven by

launches/premium brands

Consolidating U.S. fridge/freezer

production

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

Hold the date for Capital Markets Update November 17, 2020

Electrolux has the pleasure of inviting investors and financial analysts to an on-line Capital Markets Update 17 November, 2020 The event will be hosted by Jonas Samuelson, CEO and President and Anna Ohlsson-Leijon, head of Business Area Europe More information will follow

SLIDE 26

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 Q2 2020 PRESENTATION 26

SLIDE 27

Q&A

SLIDE 28

Well positioned to create value

28 ELECTROLUX Q2 2020 PRESENTATION

Financial targets for profitable growth*

Strategic drivers executed in Q2:

Mix improvements driven by

launches/premium brands

Consolidating U.S. fridge/freezer

production

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 29