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Q3 Results, Q3 Results, October 27, 2010 October 27, 2010 Hans - - PowerPoint PPT Presentation
Q3 Results, Q3 Results, October 27, 2010 October 27, 2010 Hans - - PowerPoint PPT Presentation
Q3 Results, Q3 Results, October 27, 2010 October 27, 2010 Hans Strberg, Hans Strberg, President and CEO President and CEO Jonas Samuelson, CFO Jonas Samuelson, CFO Peter Nyquist, SVP IR Peter Nyquist, SVP IR Approaching a record year
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Q3 Highlights
7,5 8,1
500 1000 1500 2000 2500
- 4
- 2
2 4 6 8 10
Net sales decreased by 2.3% in comparable currencies EBIT amounted to SEK 1,977m
– Raw-material headwinds – Increased marketing spend – Mix improvement – Cost savings – Price promotions
8.1% 7.5% Margin 27,617 26,326 Sales 2,234 1,977 EBIT* Q3 2009 Q3 2010 (SEKm) 2009 EBIT (SEKm) Margin (%) 2010
*) EBIT excluding items affecting comparability
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Q3 Operating cash flow
Q3 cash flow reflects normal seasonal pattern Stronger second half
– Increased production – Build-up of inventories – Higher sales
Q309 reflected low production and low inventory levels Higher level of investments compared to last year
- 1 500
- 1 000
- 500
500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Operations (excl. assets and liab.) Change in assets and liabilities Investments Operating cash flow
Q3, 2009 Q3, 2010
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Olympic Group – accelerating growth in emerging markets
>13% EBITDA (adj.) ~SEK 2.5bn Sales
Olympic Group
Increase our presence in emerging markets Improve ability to grow in North Africa and the Middle East OG is currently licensing our brands Cost-competitive sourcing base
~30% Market share, Egypt >10% Market growth, Egypt
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Consumer Durables Europe
9,9 9,0
500 1000 1500 2 4 6 8 10 12
EBIT (SEKm) Margin (%) 9.0% 9.9% Margin 11,322 10,210 Sales 1,014 1,014 EBIT Q3 2009 Q3 2010 (SEKm) 2009 2010
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 – Positive one-off effect
Increased marketing spend
– Launch of AEG-branded products in Europe
Strong results for floor-care products – mix improvement
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Quarterly comparison, year over year
- 15%
- 10%
- 5%
0% 5% 10%
Flat market in Europe; but Eastern Europe has started growing
- East. Europe
- West. 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%
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Consumer Durables North America
5,3 7,9
- 200
200 400 600 800
- 2
2 4 6 8
Market-demand decline
– Incentive program ended in Q2
Net sales decreased by 4%
– Exited unprofitable volumes
EBIT amounted to SEK 439m
– Higher raw-material costs – Price promotions
Lower sales and operating income for floor-care products
2009 EBIT (SEKm) Margin (%) 2010 7.9% 5.3% Margin 8,869 8,353 Sales 705 439 EBIT Q3 2009 Q3 2010 (SEKm)
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Quarterly comparison, year-over-year
- 20%
- 15%
- 10%
- 5%
0% 5% 10% 15%
After three quarters of growth, the market in North America declined in the third quarter
2006 2007 2008
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3
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Consumer Durables Latin America
5,7 8,3
100 200 300 400 0,0 2,5 5,0 7,5 10,0
2009 EBIT (mSEK) Margin (%) 2010 8.3% 5.7% Margin 3,813 4,069 Sales 318 231 EBIT Q3 2009 Q3 2010 (SEKm)
Stable market demand in Brazil
– Rest of Latin America showed strong growth
Operating income amounted to SEK 231m
– Negative customer mix – Increased raw-material costs – Increased marketing spend
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Consumer Durables Asia/Pacific
12,1 8,3
50 100 150 200 250 300 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0
2009 EBIT (SEKm) Margin (%) 2010 8.3% 12.1% Margin 1,982 2,192 Sales 164 265 EBIT Q3 2009 Q3 2010 (SEKm)
Australia: Market stabilization and improved EBIT
– Improved product mix – Positive currency impact – Improved efficiency – Increased raw-material costs
Southeast Asia and China
– Market-share gain in strong markets – Positive impact of cost-cutting measures
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Professional Products
13,5 10,6
50 100 150 200 250 0,0 3,0 6,0 9,0 12,0 15,0
2009 EBIT (SEKm) Margin (%) 2010 10.6% 13.5% Margin 1,629 1,501 Sales 173 202 EBIT Q3 2009 Q3 2010 (SEKm)
Food-service
– Increased market demand – Higher capacity utilization – Improved customer mix – Cost savings
Laundry products
– Stabilization of market demand – Improved cost efficiency – Price increases
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Top line development Product mix; continues to have a positive impact Market volumes; flat year-over-year Electrolux volumes; still impacted from exiting low-profit business in NA Price pressure; temporary price cuts driven by promotion in NA
Fourth quarter
Cost development Cost savings; positive impact from the restructuring program Raw-material prices; still a negative year-over-year effect Increased marketing and brand spend Take into account Similar seasonal pattern as last year; slightly weaker Q4
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…one quarter remains, and I am confident that 2010 will be the year we reach our target of an
- perating margin of 6%.
Full year 2010
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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