Business overview Jonas Samuelson, President and CEO Q3 Highlights - PowerPoint PPT Presentation

Q3 Results presentation 2019

Business overview Jonas Samuelson, President and CEO

Q3 Highlights SE SEKm Km Q3 2 3 2019 019 Q3 2 3 2018 018 Cha hange Net s et sales es 32,520 30, 30,444 6.8 .8% Or Orga ganic gr growth 0. 0.8% 0. 0.8% 0. 0.0p 0pts Improved price/mix Acquis isit itio ions 0. 0.4% 0. 0.5% -0. 0.1p 1pts • Organic growth driven by price/mix Dives estm tmen ents ts -0. 0.2% -0. 0.6% 0. 0.4pts • Reduced volumes in lower price points and Curre rrency 5.8 .8% 4.1% 1% 1. 1.7pts in U.S. private label sales EBIT BIT 1, 1,18 189 1,7 ,756 56 -32 32.3% 3% • Market growth across most regions Marg rgin 3.7% 3. 5.8 .8% -2.1p 1pts EBIT BIT ex excl. N NRI 1, 1,601 01 1,7 ,756 56 -8. 8.8% 8% EBIT BIT m margin ex excl. N NRI 4.9 .9% 5.8 .8% -0.8p 8pts ts EPS, PS, SE SEK 2.5 2.57 4.04 04 -36 36.5% Focus on innovation and efficiency EBIT IT a and m d margin gin • Price increases offset headwinds from raw materials/trade tariffs/currency 2,400 8% 2,000 • Manufacturing transition costs in U.S. and 6% 1,600 higher marketing investments 1,200 4% • Mix improvements driven by innovation 800 2% 400 • NRI across the Group 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q3 2019 amounted to SEK -412m and refers to restructuring charges for efficiency measures and outsourcing projects across all ELECTROLUX Q3 2019 PRESENTATION 3 business areas and Group common costs in the total amount of SEK -1,618m, recovery of overpaid sales tax in Brazil of SEK 1,403m and a legal settlement in the U.S. of SEK -197m.

Innovation targeting outstanding consumer experience • Kee eepin ing lea leadership ip in in a a fast gr growing, ng, attr ttracti tive ca catego gory i in n Latin in Am Amer eric ica — Consumer-driven product innovation meeting consumer needs — Electrolux is the largest player in high-capacity top load washing machines • Prof ofitab able g grow owth t throu ough targe geted d inno nnovation i n in n steam c am cook ooking — Electrolux opened up significant market opportunities in Europe by creating an affordable steam range — Since 2015, Electrolux has strengthened its leading position in steam ovens by 6 percentage points — 140,000 units in 2015 to 530,000 in 2018 with a strong increase in profit ELECTROLUX Q3 2019 PRESENTATION 4

Europe SE SEKm Km Q3 2 3 2019 019 Q3 2 3 2018 018 Cha hange Growth in targeted categories Net s et sales es 11, 11,036 036 10,885 10, 1. 1.4% • Product/brand mix improvements Or Orga ganic gr growth -1. 1.8% 4.8 .8% -6. 6.6p 6pts • Price continued to increase Acquis isit itio ions 0. 0.0% 0% 0. 0.4% -0. 0.4pts • Market share gain in premium segments Curre rrency 3.2% 3. 7.1% 1% -3. 3.9pts EBIT BIT 93 93 74 749 -87. 7.5% • Reduced volumes in lower price points Marg rgin 0.8% 0. 6.9 .9% -6.0p 0pts EBIT BIT ex excl. N NRI 845 45 74 749 12 12.8% EBIT BIT m margin ex excl. N NRI 7. 7.7% 7% 6.9 .9% 0.8p 8pts ts Solid earnings EBIT IT a and m d margin gin • Good price/mix contribution 1,200 10.0% • Cost efficiency improved 1,000 8.0% 800 6.0% • Increased marketing investments for 600 ongoing product launches 4.0% 400 2.0% • Currency headwind 200 0 0.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q3 2019 amounted to SEK -752m and relates to restructuring charges for efficiency measures and outsourcing ELECTROLUX Q3 2019 PRESENTATION 5 projects.

European Core Appliances Market Total European shipments, quarterly unit comparison y-o-y 10% 0% 5% 5% 0% 0% -5% 5% -1 -10% 0% -15 15% -2 -20% 0% 2 200 007 2 200 008 2 200 009 2 201 010 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 201 019 Source: Electrolux estimates ELECTROLUX Q3 2019 PRESENTATION 6

North America SEKm SE Km Q3 2 3 2019 019 Q3 2 3 2018 018 Cha hange Net s et sales es 10,880 10, 10,07 10, 072 8.0% 0% Increasing sales under own brand Or Orga ganic gr growth -0. 0.2% -4. 4.6% 6% 4. 4.4p 4pts • Lower private label sales partly offset by Dives estm tmen ents ts -0. 0.4% -1. 1.7% 1. 1.3p 3pts own branded sales Curre rrency 8.7% 7% 8.0% 0% 0.7pts 0. • Continued price/mix improvements EBIT BIT -20 358 35 N/A N/A Marg rgin -0. 0.2% 3.6% 3. -3. 3.7pts EBIT BIT ex excl. N NRI 222 35 358 -38 38.0% 0% EBIT BIT m margin ex excl. N NRI 2.0% 0% 3.6% 3. -1. 1.5pts Higher manufacturing costs • Ramp-up costs for Anderson related to running three facilities in parallel EBIT IT a and m d margin gin • Positive price offset raw materials/tariffs 1,200 8.0% 1,000 6.0% • Lower private label sales 800 4.0% 600 2.0% 400 0.0% 200 0 -2.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q3 2019 amounted to SEK -242m, where of SEK -197m refers to a legal settlement and SEK -45m to restructuring ELECTROLUX Q3 2019 PRESENTATION 7 charges for efficiency measures.

Starting up in Anderson Moving into execution in Q3 • Transferring production • Running 3 factories in parallel • Manufacturing transition costs Major step in automation • ~35% automation level vs <10% Ramp-up continues in Q4 and H1 2020 • Expected approx. USD -25m in EBIT impact in Q4 ELECTROLUX Q3 2019 PRESENTATION 8

U.S. Core Appliances Market U.S. shipments, quarterly unit comparison y-o-y 15% 5% 10% 0% 5% 5% 0% 0% -5% 5% -1 -10% 0% -15 15% -20% -2 0% 2 200 009 2 201 010 2 201 011 2 201 012 2 201 013 2 201 014 2 201 015 2 201 016 2 201 017 2 201 018 201 019 Source: US Core white includes: AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges/Cookers and Ovens) and Cooktops. ELECTROLUX Q3 2019 PRESENTATION 9

Latin America SE SEKm Km Q3 2 3 2019 019 Q3 2 3 2018 018 Cha hange Strong organic growth Net s et sales es 4,61 4, 613 3,845 3, 20. 0.0% 0% • Market growth in Brazil, Argentina Or Orga ganic gr growth 14. 4.2% 0. 0.4% 13.8pts 13. recovered slightly while Chile declined Curre rrency 5.7% 7% -12 12.3% 3% 18 18.0p 0pts further EBIT BIT 1, 1,539 39 205 05 N/A N/A • Strong sales growth in Brazil Marg rgin 33.4% 33. 5.3% 3% 28. 8.0pts ts • Positive pricing EBIT BIT ex excl. N NRI 213 13 205 05 3. 3.9% EBIT BIT m margin ex excl. N NRI 4.6% 4. 6% 5.3% 3% -0. 0.7pts EBIT IT a and m d margin gin Solid execution in a volatile market • Strong volume/price/mix contribution 6.0% 300 250 4.0% • Price offset higher raw material costs but 200 150 not fully the increased currency 2.0% 100 headwind 0.0% 50 0 • Provision reversals positively impacting -2.0% -50 Q3 2019 and Q3 2018 -100 -4.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 Note: Excluding non-recurring items (NRI). NRI in Q1 2019 includes restructuring charge of SEK 225m. EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q3 2019 amounted to SEK 1,326m, where of SEK 1,403m refers to recovery of overpaid sales tax in Brazil and ELECTROLUX Q3 2019 PRESENTATION 10 SEK -77m to restructuring charges for efficiency measures.

Asia-Pacific, Middle East and Africa SE SEKm Km Q3 2 3 2019 019 Q3 2 3 2018 018 Cha hange Good sales execution in Australia Net s et sales es 3, 3,801 01 3,507 3, 07 8.4 .4% • Market growth in Southeast Asia, while Orga Or ganic gr growth 1.5% 1. 5.1% 1% -3. 3.6pts Middle East and Africa was flat and Acquis isit itio ions 0.2% 0. - 0.2pts 0. Australia remained soft Curre rrency 6.8 .8% 5.2% .2% 1.6pts 1. • Higher sales volumes in Australia EBIT BIT -15 150 270 70 N/A N/A • Product launches fueling mix Marg rgin -4.0% 0% 7. 7.7% 7% -11. 11.7pts EBIT BIT ex excl. N NRI 248 48 270 70 -8.1% 1% EBIT BIT m margin ex excl. N NRI 6.5 .5% 7.7% 7. 7% -1. 1.2pts EBIT IT a and m d margin gin Building position through new launches • Increased marketing investments in 12.0% 400 350 major product launches 10.0% 300 8.0% • Currency headwinds, mainly AUD 250 200 6.0% • Volume/mix contribution 150 4.0% 100 2.0% 50 0 0.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 EBIT EBIT % EBIT % R12 Note: Excluding non-recurring items (NRI) and currency adjusted. Non-recurring items in Q3 2019 amounted to SEK -398m and relates to restructuring charges for efficiency measures and outsourcing ELECTROLUX Q3 2019 PRESENTATION 11 projects.