Q1 Results April 25, 2013 Keith McLoughlin, President and CEO Tomas Eliasson, CFO Peter Nyquist, SVP IR
Electrolux Interim Report Q1 2013 - Presentation
Aug 23, 2014
Highlights of the first quarter of 2013. Net sales amounted to SEK 25,328m (25,875) and reported income for the period was SEK 361m (499), or SEK 1.26 (1.76) per share. Organic growth was 3.8%, while currencies had a negative impact of –5.9%. Continued strong sales growth in North America, Asia/Pacific and Latin America. Market conditions in Europe weakened and sales for Major Appliances, Small Appliances and Professional Products were negatively impacted. North America more than tripled its earnings year-over-year as a result of strong volume growth and improvements in price and mix. Lower volumes and a weak price/mix trend in Europe negatively impacted results. Negative impact from currencies by SEK –318m impacted earnings for Latin America, Europe and Small Appliances. Seasonal build-up of inventories and working capital needs driven by strong growth impacted cash-flow in the quarter.
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- Q1 ResultsApril 25, 2013Keith McLoughlin, President and CEOTomas Eliasson, CFOPeter Nyquist, SVP IR
- Q1 Highlights02004006008001,0001,2001,4001,6001,80001234562(SEKm) Q1 2012 Q1 2013Sales 25,875 25,328EBIT* 907 720Margin* 3.5 2.8EBIT (SEKm) Margin (%)3.52.8* Excluding items affecting comparability.Non-recurring items are excluded in all figures.2012 2013 Strong organic growth of 3.8% Strong growth in Latin America,North America and Asia/Pacific Weak markets in Europe EBIT of SEK 720m Negative currency impact ofSEK 318m Lower volumes, negativeprice/mix for all our businessesin Europe Price/mix improvements inNorth America, Latin Americaand Asia
- Sales and organic growth, Q1SEKbn by geography38.4bn +11.3%5.2bn +6.4%0.9bn +13.5%1.3bn 1.3%1.2bn +20.4%8.4bn -6.2%
- Sales and EBIT bridge Q1SEKm Q1 2012 OrganicCurrencytranslationCurrencytransactionAcquisitions/DivestmentsQ1 2013Net sales 25,875 922 -1,469 - 25,328Growth % 3.8% -5.9% - - -2.1%EBIT 907* 131 -51 -267 - 720EBIT % 3.5% 14.2% 3.5% - - 2.8%Dilution/accretion % 0.4% 0.0% -1.1% 0.0%4Note: *Restated figures, includes no extraordinay items
- Q1 Cash flowSEKm Q1 2012 Q1 2013Operations 1,480 1,478Change in operatingassets and liabilities-520 -3,444Capital expenditure -1,003 -881Operating cash flow -43 -2,8475
- Major Appliances Europe,Middle East & Africa010020030040050060001234566(SEKm) Q1 2012 Q1 2013Sales 8,265 7,595EBIT* 271 11Margin* 3.3 0.1EBIT (SEKm) Margin (%)3.30.1* Excluding items affecting comparability.Non-recurring items are excluded in all figures.2012 2013 Lower sales volumes andprice/mix Volumes continued to decline inkey European markets Q1 profit at breakeven level Negative country mix partiallyoffset by positive product mix Unfavorable currencymovements Price pressure Actions taken to improvecapacity utilizationConsumer Durables
- -20%-15%-10%-5%0%5%10%2006 2007 2008 2009 2010 2011 2012 2013Negative growth in EuropeWeakening in Southern Europe spreading intocentral Europe and the Nordics7Market Development %W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3 -3 -2 -4 -2 -2 -3E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 +9 +5 +3 +2 +2 +2Quarterly comparison y-o-y
- Major AppliancesNorth America015030045060075001.534.567.58(SEKm) Q1 2012 Q1 2013Sales 7,107 7,678EBIT* 131 457Margin* 1.8 6.0EBIT (SEKm) Margin (%)1.86.0* Excluding items affecting comparability.Non-recurring items are excluded in all figures. Higher sales volumes Improvements in price/mix Selective price actions EBIT increased to SEK 457m Strong volume growth Price/mix contribution Consolidation of cookingproduction Gaining market shareConsumer Durables2012 2013
- -20%-15%-10%-5%0%5%10%15%2006 2007 2008 2009 2010 2011 2012 2013Market for core appliances increasedin North America9Quarterly comparison y-o-y
- Major AppliancesLatin America010020030040050060070002468101210(SEKm) Q1 2012 Q1 2013Sales 5,149 4,885EBIT* 278 251Margin* 5.4 5.1EBIT (SEKm) Margin (%)5.45.1* Excluding items affecting comparability.Non-recurring items are excluded in all figures. Volume growth in Brazil andrest of Latin America Organic growth of 7.4% EBIT of SEK 251m Improving prices Increased costs for sourcedproducts Negative currency effectConsumer Durables2012 2013
- Major AppliancesAsia/Pacific08016024002468101211(SEKm) Q1 2012 Q1 2013Sales 1,841 1,948EBIT* 155 106Margin* 8.4 5.4EBIT (SEKm) Margin (%)8.45.4* Excluding items affecting comparability.Non-recurring items are excluded in all figures. Volume growth in Australia in Q1 Positive volumes Negative customer mix Southeast Asia and China Continued good profitabilityin Southeast Asia Gaining market share in China Investments for future growth inAsia according to planConsumer Durables2012 2013
- Small Appliances09018027002468101212(SEKm) Q1 2012 Q1 2013Sales 2,105 2,020EBIT* 93 17Margin* 4.4 0.8EBIT (SEKm) Margin (%)4.40.8* Excluding items affecting comparability.Non-recurring items are excluded in all figures. Organic sales growth Weak European markets Improved product mix Lower operating income Unfavorable currency impact Rising costs for plastics Cost savings implementedConsumer Durables2012 2013
- Food-service &Laundry products010020030004812162013(SEKm) Q1 2012 Q1 2013Sales 1,408 1,201EBIT* 130 59Margin* 9.2 4.9EBIT (SEKm) Margin (%)9.24.9* Excluding items affecting comparability.Non-recurring items are excluded in all figures.Food-service products Volume decline in WesternEurope Lower operating income Negative country mix Investments in chains andproduct innovationLaundry products Lower sales volume Lower operating income Negative price/mix Restructuring costsProfessional Products2012 2013
- Q2 and FY 2013 y-o-yIn accordance with forward-looking statements in the CEOletter, press release and previous official statements14Q2 FY 2013 CommentsMarket volumesSlightlyPositiveSlightlyPositiveGrowth in emerging markets and NorthAmerica. Europe continues to be weak.Price/MixSlightlyPositiveSlightlyPositiveLatin America and North America positive.Europe continues to be weak.Raw-materialcostsFlat PositiveSteel: PositivePlastics: NegativeR&D andMarketingHigher HigherIntensive launch period in 2013. Increasedmarketing spend in North America and China.Cost savings ~SEK 250m ~ SEK 1bnGlobal operations, overhead reduction andmanufacturing footprint.Logistics,warehousing etc.Higher HigherOverall inflation driven cost increases such asoverseas freights and other transportation.
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- 16Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains forward-looking statements within the meaningof the US Private Securities Litigation Reform Act of 1995. Such statementsinclude, among others, the financial goals and targets of Electrolux forfuture periods and future business and financial plans. These statementsare based on current expectations and are subject to risks and uncertaintiesthat could cause actual results to differ materially due to a variety of factors.These factors include, but may not be limited to the following: consumerdemand and market conditions in the geographical areas and industries inwhich Electrolux operates, effects of currency fluctuations, competitivepressures 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 operationaland capital efficiency goals, the success in identifying growth opportunitiesand acquisition candidates and the integration of these opportunities withexisting businesses, progress in achieving structural and supply-chainreorganization goals.
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