Electrolux 2010 Annual Report Download - page 38

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Global brands and rapid launches of new innovative products will be necessery to
achieve a market-leading position. Other crucial factors include cost-efficient production
and leveraging global economies of scale. To become a global market leader, Electrolux
must continue to be an innovative consumer-focused company with a strong brand and
a competitive cost position.
Financial goals
The financial goals set by Electrolux aim to strengthen the Group’s leading, global position in the
industry and assist in generating a healthy total yield for Electrolux shareholders. The objective is
growth with consistent profitability. Key ratios are excluding items affecting comparability. 46
Capital-turnover rate of
4 or higher.
Operating margin of 6%
or greater over a business
cycle.
Return on net assets of
at least 25%.
Average annual growth
of 4% or more.
>6
%
To become a global winner
Industry forces
• Supplier & retailer consolidation
• Global brands & products 40
• Increasingly global & regional scale benefits
• Market polarization
• Volatile raw-material prices 50
• LCA competition
• More stringent environmental legislation
Consumer trends
• Growing global middle class
• Increasing scarcity of resources 58
• Aging population & smaller families
• Focus on health & well-being
• Greater requirements for service & quality
• More interest in food & interior decorating
• Increasing brand significance 38
• Internet – main source of information
annual report 2010 | part 1 | to become a global winner
4%
<
4
<
25
%
>
34