Q1 Results, April 27, 2011 Keith McLoughlin, President and CEO - - PowerPoint PPT Presentation

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Q1 Results, April 27, 2011 Keith McLoughlin, President and CEO - - PowerPoint PPT Presentation

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Q1 Results, April 27, 2011 Keith McLoughlin, President and CEO Jonas Samuelson, CFO & COO Peter Nyquist, SVP IR Q1 Highlights EBIT (SEKm) Margin (%) Net sales increased by 1% 2500 10 in comparable currencies 8 2000 Growth

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SLIDE 1

Q1 Results, April 27, 2011

Keith McLoughlin, President and CEO Jonas Samuelson, CFO & COO Peter Nyquist, SVP IR

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2

Q1 Highlights

5,3 3,0

500 1000 1500 2000 2500

  • 4
  • 2

2 4 6 8 10

Net sales increased by 1% in comparable currencies

– Growth in major markets

EBIT of SEK 696m

– Raw-material headwinds – Price pressure – Cost measures – Mix improvement

Price increases going forward

(SEKm) Q1 2011 Q1 2010 Sales 23,436 25,133 EBIT* 696 1,326 Margin 3.0% 5.3%

2010 EBIT (SEKm) Margin (%) 2011

*) EBIT excluding items affecting comparability

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SLIDE 3

3

Q1 Operating cash flow

Operating cash flow amounted to SEK -1.3 billion Q1 seasonally weakest quarter Lower operating income Higher tax payments Continued favorable development of net operating working capital

– Receivables positive, collection from high sales in November-December

Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -220m Investments during the first quarter mainly referred to new products

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SLIDE 4

4

Consumer Durables

Major Appliances Europe, Middle East & Africa

Lower sales as a result of lower volumes and prices Lower EBIT

– Lower volumes – Price pressure – Higher raw-material costs

Mix improvement

– The AEG launch continues

5,6 4,1

500 1000 1500 2 4 6 8 10 12

EBIT (SEKm) Margin (%)

(SEKm) Q1 2011 Q1 2010 Sales 7,656 8,921 EBIT 311 499 Margin 4.1% 5.6%

2010 2011

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Quarterly comparison, year over year

  • 15%
  • 10%
  • 5%

0% 5% 10%

Increased growth in Eastern Europe

  • E. Europe
  • W. Europe

2006 2007 2008 2009

6%

  • 4%

Q1 10%

  • 5%

Q4 5%

  • 1%

Q3 5% 1% Q2 14% 1% Q1 7% 5% Q4 6% 1% Q3 9% 1% Q2 1% 4% Q1 5%

  • 4%

Q2 Q3

  • 5%

4% Q4

  • 8%
  • 15%

Q1

  • 9%
  • 31%

Q2

  • 9%
  • 30%

Q3

  • 4%
  • 26%

Q4

  • 2%
  • 17%

Q1 1%

  • 7%

2010

Q2 0% 1% Q3 0% 5% Q4 0% 13% Q1

  • 2%

13%

2011

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6

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7

Consumer Durables

Major Appliances North America

  • 1,1

4,1

  • 200

200 400 600

  • 2

2 4 6

Market growth Higher net sales in comparable currencies EBIT declined to SEK -71m

– Price pressure – Higher raw-material costs

Improved mix Price increases from April 4

– 3-5%

2010 EBIT (SEKm) Margin (%) 2011

(SEKm) Q1 2011 Q1 2010 Sales 6,728 7,305 EBIT

  • 71

299 Margin

  • 1.1%

4.1%

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SLIDE 8

8

Quarterly comparison, year-over-year

  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% 15%

8

North America grew by 1% in Q1

2006 2007 2008

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2009

Q2 Q3 Q4 Q1

2010

Q2 Q3 Q4 Q1

2011

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9

Consumer Durables

Major Appliances Latin America

3,5 5,4

100 200 300 400 500 0,0 2,5 5,0 7,5 10,0

2010 EBIT (SEKm) Margin (%) 2011

(SEKm) Q1 2011 Q1 2010 Sales 3,998 3,796 EBIT 139 206 Margin 3.5% 5.4%

Market growth in Brazil and in rest of Latin America EBIT declined to SEK 139m

– Negative customer mix due to consolidation of retailers – Increased raw-material costs

Price increases going forward

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SLIDE 10

10 10 10

Consumer Durables

Major Appliances Asia/Pacific

10,0 8,7

100 200 300 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0

2010 EBIT (SEKm) Margin (%) 2011

(SEKm) Q1 2011 Q1 2010 Sales 1,746 1,666 EBIT 174 145 Margin 10.0% 8.7%

Market growth in Australia and improved EBIT

– Positive currency impact – Improved efficiency – Increased raw-material costs – Increased price pressure

Southeast Asia and China

– Market-share gain in strong markets

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SLIDE 11

11 11 11

Consumer Durables

Small Appliances

10,9 5,9

50 100 150 200 250 300 350 400 0,0 3,0 6,0 9,0 12,0 15,0

2010 EBIT (SEKm) Margin (%) 2011

(SEKm) Q1 2011 Q1 2010 Sales 1,930 1,936 EBIT 114 211 Margin 5.9% 10.9%

Separately reported from Q1 2011 and onwards Higher sales Lower EBIT

– Increased sourcing costs – Currency headwind – Higher raw-material costs

Good market acceptance for previous launches

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SLIDE 12

12 12 12

Professional Products

Food-service & Laundry products

6,1 12,8

50 100 150 200 250 300 0,0 3,0 6,0 9,0 12,0 15,0

2010 EBIT (SEKm) Margin (%) 2011

(SEKm) Q1 2011 Q1 2010 Sales 1,378 1,501 EBIT 177 91 Margin 12.8% 6.1%

Lower sales but improved EBIT for Food-service

– Positive effect of SEK 50m related to a divestment – Higher share of own- manufactured products – Price increases – Improved capacity utilization

Higher sales and EBIT for Laundry products

– Higher volumes – Price increases

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13 13 13 13

Q2 and FY 2011

In accordance with forward-looking statements in the CEO letter Q2

Volumes Price Mix Raw-material costs

2011 FY

Higher Positive Slightly negative

Comment

Costs from Global Operations SEK 125m Manufacturing footprint savings Higher SEK 125m Higher H2 higher Positive Higher SEK 500m SEK 500m Tough comparables in US in Q2 Price increases in US, price pressure in Europe in Q2 Continued mix improvement from product launches 2011: SEK 2 billion cost increase compared to 2010 Approximately evenly distributed between quarters Approximately evenly distributed between quarters

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14 14 14

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Factors affecting forward- looking statements

Factors affecting forward-looking statements This presentation contains “forward-looking” statements within the meaning

  • f the US Private Securities Litigation Reform Act of 1995. Such statements

include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following: consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the success in developing new products and marketing initiatives, developments in product liability litigation, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals.