Post on 08-May-2015
description
Hans Stråberg, President and CEOJonas Samuelson, CFOPeter Nyquist, IR
Q1 Results, April 27, 2010
2
Q1 Highlights
3,0
-0,4
0,1
5,3
-1000
-500
0
500
1000
1500
2000
2500
-4
-2
0
2
4
6
8
10 Net sales increased by 4% in comparable currencies
Solid recovery in the USStrong demand in Brazil
EBIT amounted to SEK 1,326m, excluding items affecting comparability
Increased efficiencyMix and price improvementsFavorable currencies
(SEKm) Q1 2010 Q1 2009
Sales 25,133 25,818
Margin 5.3% 0.1%
EBIT 1,326 38
2007 2008 2009
EBIT (SEKm) Margin (%)
2010
3
Rolling 12 months broke Electrolux EBIT margin target in March 2010
0%
2%
4%
6%
8%
Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar
EBIT margin 6.1 %
2008 2009 2010
4
Electrolux financial targets based on the last 12 months
Financials Target Outcome
Growth1) >4%
>21%
>6%
>4x
>25%
-1.6%
Gross margin 21.4%
EBIT 6.1%
Capital TO2) 4.4x
ROCE2) 26.5%
1) Currency-adjusted growth
2) Capital employed defined as Equity + Net Financial Liabilities
5
Operating cash flow Q1, 2010
Stable cash flowPositive earnings contributionBuild-up of inventories
Low level at the end of 2009Seasonal sales pattern
Continued favorable development of working capital/net salesLow investment level
-2000
-1500
-1000
-500
0
500
1000
1500
2000
2500
Operations (excl.assets and liab.)
Change in assetsand liabilities
Investments Operating cashflow
Q1, 2010 Q1, 2009
6
An increase of max SEK 1 billion in cost for raw-material in 2010
0
300
400
300
Q1 Q2 E Q3 E Q4 E
Raw material cost development
2010Steel 48%
Plastics 23%
Copper 7%Aluminium 4%
Other 18%
19 Billion SEK in 2009
7
Limited correlation between results and raw-material cost increases
SEKm
* Excluding items affecting comparability. In 2008, one-offs are excluded.
-3000
-1000
1000
3000
5000
2004 2005 2006 2007 2008 2009 2010
EBIT* Raw material cost increase
Dramatic market demand
decline
Sell-sideestimate
April 22, 2010
Electrolux estimate
8
Consumer DurablesEurope
4,5
-1,8
1,5
6,4
-800
-400
0
400
800
1200
-8
-4
0
4
8
12Lower sales
Decline in private label sales
Strong EBIT improvementPositive price/mix - strengthened position within the built-in segment
Cost savingsPrevious cost measures
Lower costs for raw materials compared to previous year
Strong results for floor-care products – mix improvement and positive currency impact
(SEKm) Q1 2010 Q1 2009
Sales 9,719 10,568
EBIT 620 160
Margin 6.4% 1,5%
EBIT (SEKm) Margin (%)
2007 2008 2009 2010
2009-2010 numbers are restated due to new reporting structure
9
Quarterly comparison, year over year
-15%
-10%
-5%
0%
5%
10%
East. Europe
West. Europe
The European market stabilized in Q1, 2010
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
10
11
Consumer DurablesNorth America
3,0
-2,1 -1,9
4,5
-400
-150
100
350
600
-5
0
5
10Local currency sales in line with previous year
Exited unprofitable volumes in private label
Increased sales under the Frigidaire and Electrolux brands
Strong improvement in earningsImproved mix
Improved efficiency
Higher costs for raw materials
Higher sales and improved operating income and for floor-care products
(SEKm) Q1 2010 Q1 2009
Sales 7,995 9,144
EBIT 360 -177
Margin 4.5% -1.9%
2007 2008 2009
EBIT (SEKm) Margin (%)
2010
12
Quarterly comparison, year-over-year
-20%
-15%
-10%
-5%
0%
5%
10%
2006 2007 2008
In North America, we saw the second quarter of growth in three years…
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009Q2 Q3 Q4 Q1
2010
13
14
15
16
Consumer DurablesLatin America
4,1
6,5
1,9
5,5
-100
0
100
200
300
400
-2,5
0,0
2,5
5,0
7,5
10,0 Continued strong demand in Brazil
In spite of expired tax incentives
Improved operating income
Improved product mix
Lower raw-material costsPositive currency impact(SEKm) Q1 2010 Q1 2009
Sales 3,998 2,625
EBIT 220 50
Margin 5.5% 1.9%
2007 2008 2009
EBIT (mSEK) Margin (%)
2010
17
Consumer DurablesAsia Pacific
8,4
1,4
4,7
0,1
0
50
100
150
200
250
0,01,02,03,04,05,06,07,08,09,010,0 Australia: Improved EBIT
despite market declineImproved product mixPositive currency impactImproved effiency
Southeast AsiaMarket share gain in a strong marketProduct launches
ChinaPositive impact of cost-cutting measures
(SEKm) Q1 2010 Q1 2009
Sales 1,912 1,752
EBIT 160 25
Margin 8.4% 1.4%
2007 2008 2009
EBIT (SEKm) Margin (%)
2010
2009-2010 numbers are restated due to new reporting structure
18
Professional Products
6,1
10,4
6,1 6,1
0
50
100
150
200
250
0,0
2,0
4,0
6,0
8,0
10,0
12,0Food service
Weak market demandImproved operating income through higher production efficiency and lower costs for raw materials
Laundry productsWeak market demandSlight decline in operating income(SEKm) Q1 2010 Q1 2009
Sales 1,501 1,727
EBIT 91 105
Margin 6.1% 6.1%
2007 2008 2009
EBIT (SEKm) Margin (%)
2010
19
2010 going forward
Top line developmentProduct mix VolumePrice
Support earningsCostCurrency
Take into accountRaw-material marketInvestments in marketing
Launch of new productsA stable market growthDefend current levels
Positive impact from savingsTailwind first half peaked in Q1
Headwind starting in Q2Increased support of product launches
+
+
-
20
21
Factors affecting forward-looking statements
Factors affecting forward-looking statementsThis presentation contains “forward-looking” statements within the meaning of 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.