Q1-16 Results Jonas Samuelson, President and CEO Anna - - PowerPoint PPT Presentation

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Q1-16 Results Jonas Samuelson, President and CEO Anna - - PowerPoint PPT Presentation

Feb 24, 2023 487 likes •732 views

Q1-16 Results Jonas Samuelson, President and CEO Anna Ohlsson-Leijon, CFO Q1 Highlights Good start of the year (SEKm) Q1 2016 Q1 2015 Change % Sales 28,114 29,087 -3.3 Continued revenue growth in Europe Organic growth 1.8%

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SLIDE 1

Q1-16 Results

Jonas Samuelson, President and CEO Anna Ohlsson-Leijon, CFO

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SLIDE 2

(SEKm) Q1 2016 Q1 2015 Change % Sales 28,114 29,087

  • 3.3

Organic growth 1.8% Acquired growth 0.1% Currency

  • 5.2%

EBIT 1,268 516 146% Margin % 4.5 1.8 EPS 3.04 1.18 158%

Q1 Highlights

  • Good start of the year

– Continued revenue growth in Europe – Good progress in North America – Latin America declined due to weak markets

  • Strong earnings improvement

– Improved EBIT across most business areas – Price/mix contributed positively – Savings and efficiency gains – Negative impact from currency

  • Stable cash flow

2

Group EBIT %, 12m rolling 1 2 3 4 5 6 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 3

Market Highlights

  • Electrolux completes launch of

consumer products inspired by our professional expertise

– The Electrolux Blast Chiller was presented at the Eurocucina fair in Milan in April – Allows consumers to use professional cooking techniques to make great tasting food at home

  • Connected oven with a camera and
  • ther innovative products

– The new CombiSteam Pro Smart Oven and the first dishwasher with a lower basket that reaches up to meet you were also profiled at the Eurocucina fair in Milan

  • “For the Better” initiative presented

– Sustainability becomes an even more integrated part of doing business at Electrolux – Electrolux ”For the Better” agenda in place for 2020

3 ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 4

Sales in Local Currencies

90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000

  • 6%
  • 4%
  • 2%

0% 2% 4% 6% 8% 2011 2012 2013 2014 2015 2016

Sales SEKm Growth %

Organic growth % Acquired growth % Sales in local currencies, 12M rolling

4 ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 5

Major Appliances EMEA

  • Strong earnings development

– Strong organic growth of 7.1% – Demand for appliances increased in most Western European markets – Eastern Europe stabilized – Positive product mix driven by premium brands in built-in kitchen and laundry – Recovery in free-standing categories – EBIT margin above 6% both in quarter and last 12 months, driven by higher volumes, improved mix, product cost and efficiency gains

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(SEKm) Q1 2016 Q1 2015 Change % Sales 9,001 8,608 4.6 Organic growth 7.1% Currency

  • 2.5%

EBIT 553 371 49.1 Margin % 6.1 4.3 1.8 2 4 6 8 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 6

European White Goods Market

Total Europe, quarterly comparison y-o-y

  • 20%
  • 15%
  • 10%
  • 5%

0% 5%

6

2007 2008 2009 2010 2011 2012 2013

  • W. Eur.

+1 +1

  • 1
  • 5
  • 4
  • 4
  • 5
  • 8
  • 9
  • 9
  • 4
  • 2

+1

  • 2
  • 2
  • 3
  • 3
  • 2
  • 4
  • 2
  • 2
  • 3
  • 1
  • 1

+2 +1 +1 +3 +4 +4 +5 +3 +3%

  • E. Eur.

+14 +5 +5 +10 +6 +5 +4

  • 15
  • 31
  • 30
  • 26
  • 17
  • 7

+1 +5 +13 +13 +12 +7 +9 +5 +3 +2 +2 +3 +2 +1

  • 2

+4 +1

  • 4

+1

  • 10
  • 23
  • 15
  • 24

2014 2015

ELECTROLUX Q1 2016 PRESENTATION

2016

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SLIDE 7

Major Appliances North America

  • Earnings recovery continued

– Organic sales growth of 5.7% – Volume growth in core categories – Increased sales of air-conditioners – Cooking plant in Memphis stabilized, further efficiency measures in progress – Earnings recovery driven by higher sales volumes, better mix, product cost and efficiency gains

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(SEKm) Q1 2016 Q1 2015 Change % Sales 9,937 9,313 6.7 Organic growth 5.7% Currency 1.0% EBIT 495

  • 57

n.m. Margin % 5.0

  • 0.6

5.6 2 4 6 8 10 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 8

North American White Goods Market

Quarterly comparison y-o-y

  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% 15%

8

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 9

Major Appliances Latin America

  • Weak markets, actions in place

– Challenging economic situation in the region – Demand for appliances deteriorated in Brazil and Argentina while Chile was flat – Cost actions on track to mitigate the significant fall in volumes – Challenging earnings situation in Brazil partly offset by good performance in other markets in Latin America – Implemented price increases partly compensated for currency headwinds

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(SEKm) Q1 2016 Q1 2015 Change % Sales 3,643 5,261

  • 30.8

Organic growth

  • 11.3%

Currency

  • 19.5%

EBIT 31 177

  • 82.5

Margin % 0.9 3.4

  • 2.5

2 4 6 8 10 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 10

Major Appliances Asia/Pacific

  • Good performance in mixed markets

– Good sales growth in Australia, New Zealand and East Asia – China sales down due to exit from unprofitable segments and channels – EBIT and margins increased due to positive price/mix and cost efficiency – Relocation of refrigeration production from Orange, Australia to the factory in Rayong, Thailand is now completed

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(SEKm) Q1 2016 Q1 2015 Change % Sales 2,022 2,241

  • 9.8

Organic growth

  • 5.4%

Acquired growth 0.0% Currency

  • 4.4%

EBIT 95 52 82.7 Margin 4.7 2.3 2.4 2 4 6 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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Small Appliances

  • Business refocusing on profitable

categories

– Organic growth declined in a relatively flat market in the quarter – Weak demand in Brazil and lower volumes in North America impacted sales growth – Positive price and mix development

  • ffset currency headwinds

– Cost reduction program in progress and focus on active product portfolio management – EBIT higher versus last year due to positive regional sales mix and cost savings

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(SEKm) Q1 2016 Q1 2015 Change % Sales 1,927 2,139

  • 9.9

Organic growth

  • 6.1%

Currency

  • 3.8%

EBIT 44

  • 8

n.m. Margin % 2.3

  • 0.4

2.7

  • 2

2 4 6 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 12

Professional Products

  • Continued profitable growth

– Positive organic and acquired growth – Volume growth in Western Europe, North America and Japan – Good performance in both Laundry and Food services – Improved EBIT margin driven by higher sales volumes and operational efficiency

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(SEKm) Q1 2016 Q1 2015 Change % Sales 1,584 1,525 3.9 Organic growth 4.3% Acquired growth 1.4% Currency

  • 1.8%

EBIT 205 170 20.6 Margin % 12.9 11.1 1.8 2 4 6 8 10 12 14 16 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 EBIT %, 12m rolling

ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 13

Financials Q1-16

Anna Ohlsson-Leijon, CFO

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SLIDE 14

Financials

SEKm Q1 2016 Q1 2015 Change Sales 28,114 29,087

  • 3%

Organic 1.8%

  • 0.5%
  • Gross profit

5,770 5,140 12% Gross margin, % 20.5 17.6

  • EBIT

1,268 516 146% EBIT margin, % 4.5 1.8

  • Op. cash flow after investments
  • 580
  • 591

2% EPS 3.04 1.18 158%

14 ELECTROLUX Q1 2016 PRESENTATION

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Q1 Sales and EBIT Bridge

SEKm Q1 Net Cost Efficiency Currency* Acq Other* Q1 2016 Net Sales 29,087 492

  • 1,486

20 28,114 Growth 1.8%

  • 5.4%

0.1%

  • 3.3%

EBIT 516 754 655

  • 720
  • 1

63 1,268 EBIT % 1.8% 153.1%

  • 3.6%

4.5% Accretion 2.5% 2.2%

  • 2.2%

0.0% 0.2%

15 ELECTROLUX Q1 2016 PRESENTATION

* Currency includes SEK -62m of currency translation effect on EBIT. * Other includes GE transaction costs + integration costs in Q1 2015

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Cash Flow

SEKm 2016 Q1 2015 Q1 EBIT 1,268 516 D/A and other non-cash items 1,052 1,050 Change in operating assets and liabilities

  • 2,371
  • 1,362

Investments (excl. acquisitions)

  • 529
  • 795

Cash flow after investments

  • 580
  • 591

16 ELECTROLUX Q1 2016 PRESENTATION

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Cash Flow, 2013-2016

Cash flow after investments by quarter

17 ELECTROLUX Q1 2016 PRESENTATION

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

  • 4,000
  • 3,000
  • 2,000
  • 1,000

1,000 2,000 3,000 4,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016

Cash flow after investments Rolling 12m

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Outlook and Summary

Jonas Samuelson, President and CEO Anna Ohlsson-Leijon, CFO

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Market outlook per region

Region Q2 2016 FY 2016 Comments Western Europe Positive +2-3% Positive demand growth in most Western European countries Eastern Europe Slightly Positive +2% Growth in most markets Russia appears to be stabilizing North America Positive +4-5% Continued favorable market Latin America Negative Negative Weak demand in Brazil and Argentina. Chile flat. More favorable comps in H2 East Asia Stable Stable East Asia mixed pattern Australia Flat Flat Market is estimated to be flat/slightly negative

19 ELECTROLUX Q1 2016 PRESENTATION

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Business outlook

Electrolux Q2 2016 FY 2016 Comments Volume/Price/Mix Slightly positive Slightly positive EMEA: positive mix, negative price NA: signs of price pressure Latam: positive price, negative volume Asia/Pacific: positive price/mix Net cost efficiency

  • incl. raw materials

Positive Positive Continued efficiency gains through

  • perational excellence

Raw materials FY: SEK 700m Currency SEK ~425m SEK ~1.3bn Slightly less negative impact in Latin America due to a weakened USD Capex Stable Stable FY: ≤ SEK 4bn

20 ELECTROLUX Q1 2016 PRESENTATION

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Summary Q1

  • Good start to the year with strong performance

in most business areas

  • Higher volumes and mix improvements
  • Strong earnings improvement in EMEA
  • Operational recovery in North America
  • Earnings in Latin America affected by the weak

market situation in Brazil and currency

  • Actions being taken in Small Appliances
  • Continued efficiency and savings performance

22 ELECTROLUX Q1 2016 PRESENTATION

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SLIDE 23

Factors affecting forward-looking statements

Factors affecting forward-looking statements

This 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.

23 ELECTROLUX Q1 2016 PRESENTATION