Electrolux 2004 Annual Report Download - page 93

Electrolux Annual Report 2004 89
Corporate Governance
evaluating the external auditor’s performance and where applicable
recommending replacement of the external auditors.
The Audit Committee also reviews the Internal Audit function,
known as Management Assurance & Special Assignments, in terms
of organization, staffing, budget, plans, results, and reports pre-
pared by this function.
The Audit Committee comprises three non-executive directors,
i.e. Peggy Bruzelius, Chairman, Thomas Halvorsen and Barbara R.
Thoralfsson. The latter replaced Louis R. Hughes in October 2004.
The external auditors report to the Audit Committee on each
ordinary meeting.
At least three meetings are held annually. Additional meetings are
held when needed. Three meetings were held in 2004.
Attendance at Board and committee meetings in 2004
Audit Remuneration
Board Committee Committee
Number of meetings in 2004 11 3 7
Michael Treschow 11 – 4
Peggy Bruzelius 10 3 –
Thomas Halvorsen 11 3 –
Louis R. Hughes 1) 82–
Aina Nilsson Ström 2) 8–3
Hans Stråberg 3) 11 – 3
Barbara R. Thoralfsson 4) 1111
Karel Vuursteen 7 – 3
Ulf Carlsson 11 – –
Bert Gustafsson 11 – –
Annika Ögren 11 – –
1) Left the Board and the Audit Committee in September 2004.
2) Elected in April 2004. Appointed member of the Remuneration Committee in
October 2004.
3) Member of the Remuneration Committee up to the AGM in April, 2004.
4) Appointed member of the Audit Committee in October 2004. Member of the
Remuneration Committee up to October 2004.
External auditors
At the Annual General Meeting in 2002, PricewaterhouseCoopers
(PwC) was appointed external auditors for a four year period until
the Annual General Meeting in 2006.
PwC provides an audit opinion on AB Electrolux and its sub-
sidiaries’ financial statements, the consolidated financial state-
ments for the Electrolux Group, and the administration of
AB Electrolux.
The audit is conducted in accordance with the Swedish Companies
Act and the generally accepted Swedish auditing standards issued
by FAR, the institute for the accountancy profession in Sweden
(Swedish GAAS). The auditing standards issued by FAR are based
on international standards on auditing issued by the International
Federation of Accountants (IFAC GAAS). Audits of local statutory
financial statements for legal entities in different countries outside of
Sweden are performed as required by law or applicable regulations,
in the respective country, and as required by IFAC GAAS including
issuance of audit opinions for the various legal entities. In addition,
PwC performs audits in accordance with US generally accepted
auditing standards (US GAAS), and provides an audit report to be
filed with Form 20-F to the US Securities and Exchange Commission.
For additional information on the Group’s auditors and their other audit assign-
ments, see page 92. For information on fees paid to the auditors and their non-
audit assignments in the Group, see Note 29 on page 67.
Management and Company structure
The Group’s operations are organized in six business sectors that
include a total of 27 product lines. There are four Group staff units.
Group Management
In addition to the President and CEO, Group Management includes
the five sector heads and the four Group staff heads.
The President and CEO is responsible for on-going management of
the Group in accordance with the Board’s guidelines and instructions.
Group Management holds monthly meetings to review the previ-
ous month’s results, update forecasts and plans, and discuss
strategic issues.
Business sectors
The sector heads have complete responsibility for the results and
balance sheets of their respective sectors. The overall management
of the sectors is the responsibility of sector boards, which meet
quarterly. The President and CEO is the chairman of all sector
boards. The sector board meetings are attended by the President
and CEO, the management of the respective sectors, and the Chief
Financial Officer (CFO). The sector boards are responsible for
Indoor Products Outdoor Products
Floor Care
and Small
Appliances
Magnus Yngen
Communications and Branding
Lars Göran Johansson
President and CEO
Hans Stråberg
Human Resources and
Organizational Development
Harry de Vos
Chief Financial Officer
Fredrik Rystedt
Legal Affairs
Cecilia Vieweg
Major Appliances
Europe and
Asia/Pacific
Johan Bygge
Major Appliances
North and Latin
America
Keith R. McLoughlin
Consumer
Outdoor
Products
Bengt Andersson
Professional
Outdoor
Products
Bengt Andersson
Professional
Indoor Products
Detlef Münchow
As of 2005 the Group’s operations comprise Indoor Products and Outdoor
Products, instead of the previous Consumer Durables and Professional
Products. In addition, the number of business sectors has been reduced from
seven to six, as responsibility for major appliances outside Europe and North
America has been divided. There is now a single sector for Major Appliances in
North and Latin America and another for Major Appliances in Europe, Asia,
Africa and Oceania.
For more information about Group Management and changes in the composi-
tion during the year, see page 94.