[PPT] - Q2 Results, July 19, 2010 Hans Strberg, President and CEO Jonas PowerPoint Presentation

SLIDE 1

Hans Stråberg, President and CEO Jonas Samuelson, CFO Peter Nyquist, IR

Q2 Results, July 19, 2010

SLIDE 2

2

Q2 Highlights

3,7 5,4

500 1000 1500 2000 2500

4
2

2 4 6 8 10

Net sales increased by 3% in comparable currencies

Solid recovery in the US on the back of the rebate program Southern Europe volatile

EBIT SEK 1,477m, excluding items affecting comparability

Volume growth Positive mix Raw-material headwind Increased marketing spend

(SEKm) Q2 2010 Q2 2009 Sales 27,311 27,482 Margin 5.4% 3.7% EBIT 1,477 1,027 2009 EBIT (SEKm) Margin (%) 2010

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3

Operating cash flow Q2, 2010

Solid cash flow Positive earnings contribution Seasonal build-up of inventories Higher level of investments compared to last year

1500
1000
500

500 1000 1500 2000 2500 3000 3500 4000 Operations (excl. assets and liab.) Change in assets and liabilities Investments Operating cash flow

Q2, 2009 Q2, 2010

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4

Raw-material costs 2010

Steel 48% Plastics 23% Copper 7% Aluminum 4% Other 18%

2009

SEK 19 billion

2010 ~ SEK 1 Billion in increase

Negative impact of

SEK 300m y-o-y in Q2

Raw-material y-o-y headwind

expected to increase to SEK 500m in Q3

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5

Consumer Durables Europe

2,9 5,4

400 800 1200 2 4 6 8 10

Lower sales

Decline in private label sales Price pressure

Strong EBIT improvement

Strong mix – increased sales within built-in segment Cost savings – Previous cost measures

Increased marketing spend Strong results for floor-care products – mix improvement

(SEKm) Q2 2010 Q2 2009 Sales 9,349 10,452 EBIT 504 300 Margin 5.4% 2.9% EBIT (SEKm) Margin (%) 2010 2009

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6

Quarterly comparison, year over year

15%
10%
5%

0% 5% 10%

East. Europe
West. Europe

The European market continued to be unchanged in Q2

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%

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7

Consumer Durables North America

5,1 4,6

200

200 400 600 800

2

2 4 6 8

Solid market growth led to higher volumes

Exited unprofitable volumes Increased sales under own brands

Improved earnings in comparable currencies

Improved mix Increased sales of air-conditioners Extra consolidation and transition costs Higher raw-material costs

Lower sales and operating income for floor-care products

(SEKm) Q2 2010 Q2 2009 Sales 10,027 9,848 EBIT 458 498 Margin 4.6% 5.1% 2009 EBIT (SEKm) Margin (%) 2010

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8

Quarterly comparison, year-over-year

20%
15%
10%
5%

0% 5% 10% 15%

2006 2007 2008

Strong growth in US in the second quarter

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

2009

Q2 Q3 Q4 Q1

2010

Q2

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9

Consumer Durables Latin America

4,3 6,1

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

Slowdown of market growth in Brazil

Expired tax incentives Rest of Latin America showed strong growth

Improved operating income

Higher volumes Improved effiency Positive currency impact

(SEKm) Q2 2010 Q2 2009 Sales 3,905 3,326 EBIT 237 142 Margin 6.1% 4.3% 2009 EBIT (mSEK) Margin (%) 2010

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10

Consumer Durables Asia/Pacific

3,0 10,1

50 100 150 200 250 0,0 2,0 4,0 6,0 8,0 10,0 12,0

Australia: Improved EBIT despite market decline

Improved product mix Positive currency impact Improved efficiency

Southeast Asia and China

Market-share gain Positive impact of cost-cutting measures

(SEKm) Q2 2010 Q2 2009 Sales 2,298 2,004 EBIT 231 61 Margin 10.1% 3.0% 2009 EBIT (SEKm) Margin (%) 2010

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11

Professional Products

8,9 12,0

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

Stabilization of market demand Improved operating income Food service

Improved product mix Higher production efficiency Lower costs for raw materials

Laundry products

Improved cost efficiency Improved mix

(SEKm) Q2 2010 Q2 2009 Sales 1,730 1,850 EBIT 207 165 Margin 12.0% 8.9% 2009 EBIT (SEKm) Margin (%) 2010

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Third quarter

Top line development Product mix; continues to have a positive impact Market volumes; flat year-over-year Price development; defend current levels Cost development Cost savings; positive impact from restructuring program Raw material prices; peak in Q3, y-o-y negative effect of SEK 500m Increase marketing and brand spend Take into account With more replacement business there is less seasonal variations between quarters The appliance industry is experience a shortage of components which is expected to continuo into the second half of 2010

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13

“…….. I still think 2010 could be the year we approach our goal of an

perating margin of 6%

with continued improved capital efficiency.”

Full year 2010

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14

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15

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.