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Annual Report 2011 Operations and strategy
Products and services
Brand and design
Operational excellence
Electrolux Annual Report 2011

Table of contents

  • Page 1
    Annual Report 2011 Operations and strategy Products and services Brand and design Operational excellence

  • Page 2
    Content CEO statement Electrolux products Kitchen products Laundry products Small appliances Electrolux markets Western Europe North America Australia, New Zealand and Japan Africa, Middle East and Eastern Europe Latin America Southeast Asia and China Electrolux strategy Products and services Brand ...

  • Page 3
    ... Electrolux has been doing business since 1919. Today, the company is a global leader in home appliances and appliances for professional use, selling more than 40 million products to customers in 150 countries every year. Electrolux focuses on innovations that are thoughtfully designed and based...

  • Page 4
    ... markets Africa, Middle East, Eastern Europe 9% 6% 30% Share of Group sales 32% Western Europe Australia, New Zealand, Japan North America To become a global market leader, Electrolux must continue to be an innovative consumer-focused company with a strong brand and a competitive cost...

  • Page 5
    ... and North America. Electrolux market shares are estimated to have grown in Southeast Asia and Latin America. Through the acquisitions of the appliances companies Olympic Group in Egypt and CTI in Chile, Electrolux increases its exposure to growth markets. Lower sales prices and increased costs for...

  • Page 6
    ... severe in low-price segments, in product segments where there is substantial overcapacity and in markets with low levels of consolidation among manufacturers. In 2011, price pressure was intensive in the Group's mature markets. Sales campaigns continued to dominate the market in North America in...

  • Page 7
    ... competitive operations and profitable growth. • Price hikes announced in North America and Europe. • Acquisition of the Olympic Group and CTI, thus increasing pro forma sales for Electrolux in growth markets to 35% of total sales. • Increased production and procurement in low-cost areas...

  • Page 8
    annual report 2011 CEO statement 12 months in a challenging environment 2011 was a year in a challenging market. 2011 was also a year in which we took a number of strategic decisions that will be highly significant for our long-term development. We are now intensifying our focus on growth. We ...

  • Page 9
    ...our strategy is to continue to increase sales in such growth markets as Latin America, Africa and Asia. The rapidly emerging middle class in cities in these markets constitutes a key target group. Based on consumer insight, we will use our global platform to continue to develop products specifically...

  • Page 10
    ... sustainable value for all shareholders. Stockholm, February 2012 Keith McLoughlin President and CyO By maintaining strong control over costs and being receptive to new business opportunities, we will further strengthen our positions in growth markets and in new product areas. Photographer...

  • Page 11
    ...household kitchens throughout the world, ylectrolux sells cookers, ovens, refrigerators, freezers, dishwashers and hoods. ylectrolux is the leader in cooking products and new functions are continuously developed that facilitate preparation, storage and dish washing. 8 Laundry Washing machines and...

  • Page 12
    ... major part of the Group's kitchen products are sold under the ylectrolux brand. Other important consumer brands include AyG and Zanussi in yurope and Frigidaire in North America. Professional food-service equipment is sold mainly under the ylectrolux brand. Products are also sold under the Zanussi...

  • Page 13
    ... The appliances are based on new, high-end platforms, offering features and functions built on the Group's know-how and expertise in professional products, matched with a modern and distinctive design. Strong position in built-in segment Built-in kitchen appliances are becoming increasingly common...

  • Page 14
    ... years, ylectrolux has developed new, intuitive control panels on appliances, making them easier to use. The professional air-o-steam Touchline oven has quickly been recognized in the market as the pioneer in state-of-the-art kitchen technology. It features three intuitive cooking modes: automatic...

  • Page 15
    ... highly exclusive cooker range "hand-crafted" to customer specifications. No two appliances are the same. yach one is studied and designed together with the chef who will use it, thus reflecting the personal tastes and preferences of the user. XP - flexible solution for professional kitchens Buyers...

  • Page 16
    ... its partnerships with the greatest restaurants in the world, Electrolux maintains a constant dialog with award-winning kitchens. In fact, Electrolux is the only appliances manufacturer in the world that delivers a comprehensive range of kitchen products, from mixers to ovens, to both consumers and...

  • Page 17
    Guide Michelin restaurants 13

  • Page 18
    ... of energy- and waterefficient products. The largest global market share is in front-load washing machines, where the Group is a leading producer and thus benefits from strong growth in the segment. Laundry products are sold in yurope under the ylectrolux, AyG and Zanussi brands. In North America...

  • Page 19
    .... In 2011, sales of front-load washing machines increased by 15% in Southeast Asia. In the professional user segment, where low resource consumption is a key factor, front-load machines are used almost exclusively. without the need for dry cleaning. Cool Clean is a wash program developed for cold...

  • Page 20
    ... vacuum cleaners, Electrolux can focus on global product development. Share of Group sales 2011 8% ylectrolux is one of the largest manufacturers of vacuum cleaners in the world and holds market-leading positions in most regions. A large share of the Group's vacuum cleaners are developed and sold...

  • Page 21
    ... in vacuum-cleaner design. Based on consumer preferences, ylectrolux sells mainly canister vacuum cleaners, but also has a strong offering in upright products, in such markets as North America and the UK, where this category dominates. yureka Airspeed is a range of upright vacuum cleaners, specially...

  • Page 22
    ... At the end of 2011, ylectrolux launched a range of small appliances for kitchens under the Frigidaire brand in the North American market. The new range shares the same visual branding as its major appliances counterpart and has a robust, professional feel. All products feature a dark gray base, and...

  • Page 23
    ...North America At the end of 2011, ylectrolux launched a range of small appliances for kitchens and garment care under the Frigidaire brand in the North American market. ylectrolux sees a potential for expansion in the rapidly growing market for small appliances in North America. During 2009 and 2010...

  • Page 24
    ... as Africa, the Middle East, Asia and Latin America, is to increase rapidly. The acquisition of appliances manufacturers CTI in Chile and Olympic Group in Egypt combined with strong organic growth has boosted the share of Electrolux pro forma sales in growth markets from 25% in 2009 to 35% in 2011...

  • Page 25
    ... net sales per market, % Southeast Asia, China, 4% Latin America, 19% Electrolux employees per market, % Southeast Asia, China, 5% Western Europe, 26% Western Europe, 32% Africa, Middle East, Eastern Europe, 9% Australia, New Zealand, Japan, 6% North America, 30% Latin America, 28% North America...

  • Page 26
    annual report 2011 mature markets Western Europe - a fragmented market Western Europe is the Group's largest market for consumer durables and products for professional users. Electrolux focuses on growth through the launch of new, innovative appliances in the premium segments. Built-in appliances ...

  • Page 27
    ... ylectrolux estimates. Electrolux market shares 16% core appliances 14% floor care 9% professional food-service equipment 22% professional laundry equipment Built-in kitchen commonplace In 2010 and 2011, the Group launched an entirely new range of built-in products in the premium segment under the...

  • Page 28
    ...in the US account for a major part of the market and about 70% of appliances are sold via the four major retailers Sears, Lowe's, Home Depot and Best Buy. The four largest manufacturers of vacuum cleaners represent over 50% of the market. Vacuum cleaners are Net sales in North America Shipments of...

  • Page 29
    .... Electrolux market shares 21% major appliances 14% floor care New products In 2010 and 2011, new appliances under the Frigidaire brand were launched, including induction hobs, French Door Refrigerators (see image to the left), washing machines with extralarge capacity and a large number of energy...

  • Page 30
    annual report 2011 mature markets Australia, New Zealand and Japan - major variations Electrolux is the largest manufacturer of appliances in Australia and has built up a particularly strong position in the premium segment. In Japan, the Group has applied a niche strategy to establish the brand in ...

  • Page 31
    ... appliances. Markets and competitors Market value Green Range vacuum cleaner sales in New Zealand 2011 Green Range share 29% Core appliances Major competitors • Fischer & Paykel • Samsung • LG • Panasonic Floor care Major competitors • Samsung • LG • Dyson Professional products...

  • Page 32
    ...East. Electrolux has grown rapidly in Eastern Europe and currently commands major market shares for appliances and vacuum cleaners in the region. Share of Group sales 2011 Share of sales in the region 2011 Professional food-service and laundry equipment Small appliances 9% Major appliances Africa...

  • Page 33
    ... 2010: USD GDP growth 2010: Sources: World Bank and Electrolux estimates. Electrolux market shares 14% core appliances (Eastern Europe) 30% core appliances (Egypt) 12% floor care (Eastern Europe) 8% professional food-service equipment (Africa, Middle East) 9% professional laundry equipment (Africa...

  • Page 34
    ... key product categories in Chile and Argentina. Share of Group sales 2011 Share of sales in the region 2011 Small appliances 19% Major appliances Latin America is a highly urbanized region for a growth market and displays a relatively high rate of expansion in terms of purchasing power and number...

  • Page 35
    ...company CTI has extensive operations within small domestic appliances in Chile under the Somela brand. Electrolux market shares 41% floor care Sources: World Bank and Electrolux estimates. 70% Consumer preference The Brazilian operations have been pioneering within the Group in terms of developing...

  • Page 36
    ... equipment, refrigerators and washing machines. In China, Electrolux successfully launched a new range of refrigerators. In Southeast Asia, Electrolux has launched new models for air-conditioning equipment that consume 20-30% less energy than conventional models. Built-in products for the kitchen...

  • Page 37
    ... years. The market for air-conditioning equipment in Southeast Asia is almost as large as for refrigerators. Consumer insight shows that most people living in large Asian cities would find life very difficult without air-conditioning. Markets and competitors Market value Core appliances Major...

  • Page 38
    ... appliances company in the world Electrolux ambition is to become the best appliances company in the world as measured by shareholders, customers and employees. Products and services The Group's process for consumer-driven product development is used in all new products. In recent years, a number...

  • Page 39
    ...forma sales in growth markets from 25% in 2009 to 35% in 2011. Focus on growth In order to outperform market growth, Electrolux continues to strengthen its positions in the premium segment, expand in profitable high-growth product categories, increase sales in growth regions and develop service and...

  • Page 40
    ... when developing consumer appliances. Electrolux also commands a strong global position for vacuum cleaners and is growing rapidly in the area of small appliances by utilizing global economies of scale. Other strong positions held by the Group include the market for front-load washing machines and...

  • Page 41
    ... appliances • Strong position to build from in Europe • Profitable business sharing its global strength Professional products • Only major appliances company with a true professional base • Large replacement market growth through the chain business Best service in the market Electrolux...

  • Page 42
    annual report 2011 strategy Products and services Growth Promucts anm services Innovative promucts Electrolux develops innovative products that can be sold worldwide on the basis of shared global needs, as well as products that are tailored to local requirements. In recent years, Electrolux has ...

  • Page 43
    ... both an environmental and user perspective, thus indicating the direction that future products will follow. The Ultra Clean washing machine is developed for the premium segment and has a load capacity of 15 kg, which is the largest capacity in the market. Following a highly favorable reception in...

  • Page 44
    ... appliances in the premium segment has increased from 10% in 2007 to nearly 70% in 2011. This position will greatly benefit the Group when demand rebounds. Electrolux is also focusing on a number of regional and strategically robust brands. One of them is the 125-year-old AEG brand. Its long history...

  • Page 45
    ... one of the most successful campaigns in Electrolux history and was honored by the United Nations with the International Public Relations Association Golden Award. In 2011, Vac from the Sea continued its journey in new countries ranging from Taiwan and New Zealand to Brazil. Sales teams have crafted...

  • Page 46
    annual report 2011 strategy Brand Growth The Cube by Electroluh The Cube by Electrolux offers a spectacular and inspiring gastronomic experience with some of the world's best chefs in the kitchen. The driving force behind the Cube is close cooperation between the Electrolux consumer durables and ...

  • Page 47
    ... opened to the strong values of the Electrolux brand. Creating a venue for dialog with stakeholders. The Cube provides journalists, distributors and other stakeholders with the opportunity to experience firsthand the design and function of Electrolux products. In Belgium, the daily press and trade...

  • Page 48
    ... Shared global strength Benefits of scale in Common components and modules Purchasing Manufacturing R&D Common processes and shared services Sharp consumer focus High-end Premium segment Focus on differentiated products Low costF lean go-to-marketF market sets prices Massmarket segment Low-end...

  • Page 49
    ... to the end market for region-specific products, such as cookers, top-load washing machines and larger refrigerators and freezers. Production at efficient and competitive plants will not be moved, nor will production of products in declining segments. LCA = Low cost areas HCA = High cost areas 45

  • Page 50
    ... 36% Australia, New Zealand and Japan Africa, Middle East and Eastern Europe Latin America Southeast Asia and China 64% Group-wide Women Men 19% 17% 4% 2007 2011 A number of important tools are available in the Group for employees: • Leadership development • Talent Management and succession...

  • Page 51
    ...comprising essential parts of the Group's strategy; Products and services, Brand, Operational Excellence and Sustainability. Below are the winning contributions presented at Electrolux Award Day on February 14, 2012. President Keith McLoughlin together with the winners at The Electrolux Award Day on...

  • Page 52
    ... in Europe. 2012 Energy-savings target Global Green Range % Target % Appliances Europe, Middle East and Africa Appliances North America Appliances Asia/Pacific Appliances Latin America Small appliances Professional Products Electrolux Group Savings (in %) compared to 2005 0 2011 2010 2009...

  • Page 53
    ... trust in the company and develop sustainable solutions along the value chain. • The company was named US Energy Star Partner of the Year for Appliances. • Future InSight was launched, which is a strategy report and platform for dialog on the role Electrolux has in tackling global challenges and...

  • Page 54
    ...management to invoicing of customers. It has resulted in a lower level of structural working capital in the Group, meaning the share of capital that is not affected by changes in business conditions, and a stronger cash flow. Reducing the amount of capital tied up in operations creates opportunities...

  • Page 55
    ... Group's largest markets, Europe and the US, impacted sales negatively. In order to achieve higher growth than the market, Electrolux continues to strengthen its positions in the premium segment, expand in profitable high-growth product categories, increase sales in growth areas and develop service...

  • Page 56
    ... country. Refripar's products were positioned in the low-price segment, and the company had high production costs. Today, Electrolux is one of the leading appliances brands in Brazil, with a high rate of growth and favorable profitability. 2008 Net sales and operating marginF Major Appliances Asia...

  • Page 57
    ... Net sales With a strong brand, products adapted to the specific needs of the region and effective marketing and distribution, Electrolux has grown rapidly with high profitability in Southeast Asia. Profitable and fast-growing operations in Southeast Asia. Read more in the Electrolux annual report...

  • Page 58
    .... In 2011, sales increased by approximately 10% with an operating margin of 12%. Through a strong brand, products adapted to the specific needs of the region and effective marketing and distribution, the Group's intention is to grow rapidly with high profitability in Southeast Asia. Net sales and...

  • Page 59
    ..., washing machines and air-conditioning equipment. Among the fast-growing middle class in cities, demand for household appliances in the higher price segments is increasing. Shares of appliances market Refrigeration, 36% Cooking, 13% Washing, 21% Air conditioning, 24% Others, 6% ...direct store...

  • Page 60
    ...New housing and renovations. • Design. • Energy- and water-efficient products. • Improved household purchasing power in Eastern Europe, Middle East and Africa. Distribution channels • Many small, local and independent retailers. • Growing share of sales through kitchen specialists. Market...

  • Page 61
    ... global market. Drivers • Energy- and water-efficient products. US restaurant chains expanding. Replacement. Growing population. Distribution channels • Food service High consolidation of dealers in North America. Fragmented market in Europe. • Laundry Great proportion of direct sales although...

  • Page 62
    ...2011. Senior management positions within DuPont in North America, Europe, Middle East and Africa, and globally, 1991-2003. Joined Electrolux in 2003 as Vice-President Brand Marketing, Major Appliances North America, 2003. Group Chief Marketing Officer, 2011. Holdings in AB Electrolux: 4,136 B-shares...

  • Page 63
    ... Chief Financial Officer of AB Electrolux, 2008-2011 as well as Chief Operations Officer and Head of Global Operations Major Appliances during 2011. Head of Major Appliances Europe, Middle East and Africa and Executive Vice-President of AB Electrolux, 2011. Board Member of Polygon AB. Holdings in AB...

  • Page 64
    ... 2011. Board Member of Briggs & Stratton Corporation. Previous positions: Senior positions within Electrolux: Head of Major Appliances North America and Executive Vice-President of AB Electrolux, 2003; also Head of Major Appliances Latin America, 2004- 2007; Chief Operations Officer Major Appliances...

  • Page 65
    ... 2) American Depositary Receipt. Changes in Board of Directors Caroline Sundewall and Johan Molin declined re-election to the Board and Keith McLoughlin and Ulrika Saxon were appointed new Board members at the AGM in March 2011. Holdings in AB Electrolux as of December 31, 2011. The information is...

  • Page 66
    ... are attended by Group Management. Meetings with investors are held at the Group's head office in Stockholm, Sweden, as well as in the form of roadshows, primarily in major financial markets in Europe and the US. Electrolux also interacts daily with the capital markets. IR activities Number 400 300...

  • Page 67
    ...SEK 4.6 billion compared with the base year 2004. How will your newly acquired assets generate value for Electrolux shareholders? Electrolux carried out two acquisitions in 2011. In Egypt, the Group acquired Olympic Group, which is the market leader in the country and is also exposed to North Africa...

  • Page 68
    annual report 2011 capital market The Electroluh share The Electrolux share is listed on Nasdaq OMX Stockholm. The market capitalization of Electrolux at year-end 2011 was approximately SEK 34 billion (60), which corresponded to 1.0% (1.4) of the total value of Nasdaq OMX Stockholm. The company's ...

  • Page 69
    ...500 largest companies for social and environmental performance. With 60 DJSI licenses in 16 countries, assets managers with DJSI portfolios valued at USD 8 billion are recommended to invest in Electrolux. Trading in Electrolux B-shares Number of traded shares, million Value of traded shares, SEKbn...

  • Page 70
    ... workforce in Europe New President and CEO announced Launch of AEG built-in products in Europe 50 EXTERNAL FACTORS 25 Rising market prices for raw materials Incentive program in Brazil ends, growth diminishes Currency-adjusted price reductions in Europe Incentive program in North America boosts...

  • Page 71
    .... New Chief Marketing Officer and new Chief Technology Officer Dividend of SEK 6.50 per share Price increases in North America Acquisition of Egyptian major appliances manufacturer Olympic Group New Head of Major Appliances North America Overhead cost savings and optimization of capacity New...

  • Page 72
    ... number of shares after buy-backs. 7) Market capitalization excluding buy-backs, plus net borrowings and noncontrolling interests, divided by operating income. 8) Trading price in relation to earnings per share. 9) Continuing operations. Ownership structure The majority of the total share capital...

  • Page 73
    ... of shares Electrolux raises the bar in sustainability reporting Electrolux issues bond loan Electrolux to implement price increases in Europe Jack Truong appointed Head of Major Appliances North America Electrolux acquires Olympic Group Interim report January-June 2011 and CEO Keith McLoughlin...

  • Page 74
    ... brands and cost-efficient operations. Realizing this potential requires effective and controlled risk management. The major risks at present are described below. Fluctuation in demand In 2011, demand for appliances declined in the major markets of Electrolux. The North American market contracted...

  • Page 75
    ... it will generate annual savings of approximately SEK 4.6 billion compared with the base year 2004. Financial risks and commitments The Group's financial risks are regulated in accordance with the financial policy that has been adopted by Electrolux Board of Directors. Management of these risks is...

  • Page 76
    ... USD, and the weakness of the EUR in relation to a number of European currencies in 2011 compared with 2010. Net hedging effects amounted to a positive SEK 75m. USD/CAD USD/MXN North America The principal currency pairs for the North American operations are the USD/CAD and USD/MXN. A significant...

  • Page 77
    ... currency in Europe is the EUR. A weak EUR has a positive net effect on Group income, because European operations have greater expenses in EUR than sales in EUR. A majority of the purchases of raw materials and components is denominated in EUR as are significant production costs. Principal currency...

  • Page 78
    ... and every home from China to America will need a refrigeration machine." Wenner-Gren paused, and looked at each member of the team. "That is why we are going to cool with air, because we all have access to that." Customer Obsession Axel Wenner-Gren unfolded a sketch made during a board room meeting...

  • Page 79
    ...products for professional kitchens and laundries all over the world. Customer Obsession Understanding consumer needs is the basis for all products developed by Electrolux. Since it was launched in 2004, the Ergorapido vacuum cleaner has been a success in homes all over the world. As well as helping...

  • Page 80
    ...share and corporate governance as well as a new platform for financial statistics. The platform allows vistiors to view graphic detailing of Electrolux development on an annual or quarterly basis. Electrolux Annual Report 2011 consists of: • Operations and strategy • Financial review, Corporate...

  • Page 81
    AB Electrolux (publ) Mailing address SE-105 45 Stockholm, Sweden Visiting address S:t Göransgatan 143, Stockholm Telephone: +46 8 738 60 00 Telefax: +46 8 738 74 61 Website: www.electrolux.com 599 14 14-28/4

  • Page 82
    Annual Report 2011 Financial review Corporate governance Sustainability Result Performance Sustainability Governance

  • Page 83
    ...-year review Quarterly information 78 80 Corporate governance report Board of Directors and Auditors Group Management 82 88 94 Efficient products are crucial to continued business success. Each year Electrolux identifies new criteria for the most environmentally sound appliances among all Group...

  • Page 84
    ... • Price pressure and increased costs for raw materials had an adverse impact on operating income. Key data SEKm, EURm, USDm, unless otherwise stated 2011 2010 2011 EURm 2011 USDm • Acquisitions of the appliances companies Olympic Group in Egypt and CTI in Chile. • Efforts to reduce working...

  • Page 85
    ... operating income of SEK 4 billion in 2011. Furthermore, we have taken actions to increase prices, take out costs, acquire companies in emerging markets and change the organization to strengthen the company's position as we entered 2012. Already at the end of 2010, demand for appliances started...

  • Page 86
    ... our operational efficiency and we will maintain a strong balance sheet to be prepared for both uncertainties and opportunities. Stockholm, February 2, 2012, in connection with the presentation of the fourth quarter and fullyear results of 2011 Keith McLoughlin President and Chief Executive Officer...

  • Page 87
    ...best appliances company in the world Electrolux ambition is to become the best appliances company in the world, measured by shareholders, customers and employees. Products and services The Group's process for consumer-driven product development is used in all new products. In recent years, a number...

  • Page 88
    ... acquisitions Share capital and ownership Distribution of funds to shareholders Risks and uncertainty factors Employees Other facts Parent Company Notes page 6 7 9 12 13 15 16 17 18 20 21 22 23 25 27 31 Key data SEKm 2011 Change, % 2010 Net sales Operating income Margin, % Income after financial...

  • Page 89
    ... in Group structure Changes in exchange rates Changes in volume/price/mix Total 1.7 -6.3 0.2 -4.4 Operating income Operating income for 2011 decreased to SEK 3,017m (5,430), corresponding to 3.0% (5,1) of net sales. Weak demand in Electrolux main markets, lower sales prices and increased costs for...

  • Page 90
    ... statement SEKm Note 2011 2010 Net sales Cost of goods sold Gross operating income Selling expenses Administrative expenses Other operating income Other operating expenses Items affecting comparability Operating income Financial income Financial expenses Financial items, net Income after financial...

  • Page 91
    ... or increase by up to two percent. Operations, by business area SEKm1) 2011 2010 Major Appliances Europe, Middle East and Africa Net sales Operating income Margin, % Major Appliances North America Net sales Operating income Margin, % Major Appliances Latin America Net sales Operating income Margin...

  • Page 92
    ...professional products for 6% (6) and small appliances for 8% (8). Major Appliances Europe, Middle East and Africa SEKm1) 2011 2010 • Continued weak demand in Electrolux major markets in 2011. • The North American market decreased by 4%. The European market was unchanged. • Net sales increased...

  • Page 93
    ... of directors report Major Appliances North America SEK m1) 2011 2010 Major Appliances Latin America SEKm1) 2011 2010 Net sales Operating income excluding non-recurring costs Operating income Operating margin, % Net assets Return on net assets, % Capital expenditure Average number of employees...

  • Page 94
    .... Price increases largely offset the higher costs for raw materials. Market demand for professional laundry equipment is estimated to have declined somewhat in the Group's major markets in Western Europe and sales volumes declined. Replacement products are accounting for a large share of the current...

  • Page 95
    annual report 2011 board of directors report Financial position Working capital and net assets Dec. 31, 2011 % of annualized net sales Dec. 31, 2010 % of annualized net sales • Equity/assets ratio was 30.1% (33.9). • Return on equity was 10.4% (20.6). • Efforts to reduce working capital have...

  • Page 96
    ... assets Equity and liabilities Equity attributable to equity holders of the Parent Company Share capital Other paid-in capital Other reserves Retained earnings Non-controlling interests Total equity Non-current liabilities Long-term borrowings Deferred tax liabilities Provisions for post-employment...

  • Page 97
    annual report 2011 board of directors report The Group's goal for long-term borrowings includes an average time to maturity of at least two years, an even spread of maturities, and an average interest-fixing period of one year. At year-end, the average interest-fixing period for long-term ...

  • Page 98
    ... the Parent Company Other Share paid-in Other Retained capital capital reserves earnings Total Noncontrolling interests Total equity Opening balance, January 1, 2010 Income for the period Available for sale instruments Cash flow hedges Exchange-rate differences on translation of foreign operations...

  • Page 99
    ... to SEK 3,163m (3,221). • R&D costs increased to 2.0% (1.9) of net sales. Major Appliances Europe, Middle East and Africa % of net sales North America % of net sales Latin America % of net sales Asia/Pacific % of net sales Small Appliances % of net sales Professional Products % of net sales Other...

  • Page 100
    ...cash flow statement SEKm Note 2011 2010 Operations Operating income Depreciation and amortization Capital gain/loss included in operating income Restructuring provisions Share-based compensation Financial items paid, net Taxes paid Cash flow from operations, excluding change in operating assets and...

  • Page 101
    ... report 2011 board of directors report Structural changes and acquisitions Actions to improve operational excellence At Electrolux Capital Markets Day in November 2011, management presented the Group's strategy to create sustainable economic value by; capitalizing on profitable growth opportunities...

  • Page 102
    ...Italy USA Cookers Washing machines Cookers Q4 2013 Starting Porcia Memphis Q4 2010 Q2 2012 In 2004, Electrolux initiated a restructuring program to make the Group's production competitive in the long term. This program is in its final phase and has so far yielded annual savings of about SEK 3bn...

  • Page 103
    .... Major shareholders Share capital, % Voting rights, % Investor AB Alecta Pension Insurance Swedbank Robur Funds Nordea Funds AMF Insurance & Funds SEB Funds Didner & Gerge Funds SHB Funds Government of Norway Carnegie Funds Total, ten largest shareholders Board of Directors and Group Management...

  • Page 104
    ... of own shares The Board of Directors makes the assessment that it continues to be advantageous for the company to be able to adapt the company's capital structure, thereby contributing to increased shareholder value, and to continue to be able to use repurchased shares on account of potential...

  • Page 105
    ... appliances varies with general business conditions, and price competition is strong in a number of product categories. Electrolux ability to increase profitability and shareholder value is largely dependent on its success in developing innovative products and maintaining cost-efficient production...

  • Page 106
    ... Management The Board of Directors will propose the following guidelines for remuneration to and other terms of employment for the President and CEO and other members of Group Management of Electrolux to the Annual General Meeting (AGM) 2012. Group Management currently comprises thirteen executives...

  • Page 107
    ... of Directors. Short Term Incentive (STI) Group Management members shall participate in a STI plan under which they may receive variable compensation. The objectives in the STI plan shall mainly be financial. These shall be set based on annual financial performance of the Group and, for the sector...

  • Page 108
    ... Chief Financial Officer and Executive Vice-President of ASSA ABLOY AB. Jack Truong new Head of Major Appliances North America Since August 2011, Jack Truong is new Head of Major Appliances North America. Jack Truong has previously held several senior management positions with the 3M Company...

  • Page 109
    ... risk are reported to Group level in accordance with Group policy. No such significant item was reported in 2011. Electrolux products are affected by legislation in various markets, principally involving energy consumption, producer responsibility for recycling, and restriction and management...

  • Page 110
    ...operating on a commission basis for AB Electrolux. Net sales for the Parent Company in 2011 amounted to SEK 6,660m (5,989), of which SEK 3,266m (3,396) related to sales to Group companies and SEK 3,394m (2,593) to external customers. The majority of the Parent Company's sales was made within Europe...

  • Page 111
    annual report 2011 board of directors report Parent Company balance sheet SEKm Note December 31, 2011 December 31, 2010 Assets Non-current assets Intangible assets Property, plant and equipment Deferred tax assets Financial assets Total non-current assets Current assets Inventories Receivables ...

  • Page 112
    Parent Company change in equity SEKm Restricted equity Share Statutory capital reserve Non-restricted equity Fair value Retained reserve earnings Total equity Opening balance, January 1, 2010 Income for the period Available for sale instruments Cash flow hedges Income tax relating to other ...

  • Page 113
    annual report 2011 board of directors report Parent Company cash flow statement SEKm 2011 2010 Operations Income after financial items Depreciation and amortization Capital gain/loss included in operating income Taxes paid Cash flow from operations, excluding change in operating assets and ...

  • Page 114
    ... Trade receivables Financial instruments Assets pledged for liabilities to credit institutions Share capital, number of shares and earnings per share Untaxed reserves, Parent Company Post employment benefits Other provisions Other liabilities Contingent liabilities Acquired and divested operations...

  • Page 115
    ... statements include AB Electrolux and all companies in which the Parent Company has the power to govern the financial and operating policies, generally accompanying a shareholding of more than 50% of the voting rights referring to all shares and participations. When the Group ceases to have control...

  • Page 116
    ... are costs for Group functions. Sales between segments are made on market conditions with arm's-length principles. Revenue recognition Sales are recorded net of value-added tax, specific sales taxes, returns, and trade discounts. Revenues arise from sales of finished products and services. Sales are...

  • Page 117
    ... method. Product development expenses Electrolux capitalizes expenses for certain own development of new products provided that the level of certainty of their future economic benefits and useful life is high. The intangible asset is only recognized if the product is sellable on existing markets and...

  • Page 118
    ... business less the estimated costs of completion and the estimated costs necessary to make the sale at market value. The cost of finished goods and work in progress comprises development costs, raw materials, direct labor, tooling costs, other direct costs and related production overheads. The cost...

  • Page 119
    ... working lifetime of the employees participating in the plans. Net provisions for post-employment benefits in the balance sheet represent the present value of the Group's obligations at year-end less market value of plan assets, unrecognized actuarial gains and losses and unrecognized past-service...

  • Page 120
    ...) presently used by Electrolux. The standard also requires an entity to apply the discount rate on the net defined benefit liability (asset) in order to calculate the net interest expense (income). The standard thereby removes the use of an expected return on the plan assets. All changes in the net...

  • Page 121
    ... accounting policies and key sources of estimation uncertainty Use of estimates Management of the Group has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements...

  • Page 122
    ... at year-end 2011 was SEK 904m. Post-employment benefits Electrolux sponsors defined benefit pension plans for some of its employees in certain countries. The pension calculations are based on assumptions about expected return on assets, discount rates, mortality rates and future salary increases...

  • Page 123
    ... the framework of the Financial Policy. This trading is primarily aimed at maintaining a high quality of information flow and market knowledge to contribute to the proactive management of the Group's financial risks. Interest-rate risk on liquid funds and borrowings Interest-rate risk refers to the...

  • Page 124
    ... economic conditions. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, buy back own shares or issue new shares, or sell assets to reduce debt. Financing risk Financing risk refers to the risk that...

  • Page 125
    .... Credit risk in trade receivables Electrolux sells to a substantial number of customers in the form of large retailers, buying groups, independent stores, and professional users. Sales are made on the basis of normal delivery and payment terms. The Electrolux Group Credit Policy defines how credit...

  • Page 126
    ...major appliances comprise mainly of refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners and microwave ovens. Small appliances include vacuum cleaners and other small appliances. Professional products have one reportable segment. As of 2011, Small Appliances...

  • Page 127
    ... the useful life of the assets. In 2011, these grants amounted to SEK 121m (220). Geographical information Net sales1) 2011 2010 Note 5 Other operating income Group 2011 2010 Parent Company 2011 2010 USA Brazil Germany Australia Sweden (country of domicile) Italy Canada Switzerland France United...

  • Page 128
    ... 2011 2010 Note 9 Financial income and financial expenses Group 2011 2010 Parent Company 2011 2010 Restructuring and impairment Appliances plant in Kinston, North Carolina, USA Appliances plant in L'Assomption, Canada Reduced workforce in Major Appliances, Europe Appliances plant in Revin, France...

  • Page 129
    ... taxes in 2011 include a positive effect of SEK 7m (-16) due to changes in tax rates. The consolidated accounts include deferred tax liabilities of SEK 157m (165) related to untaxed reserves in the Parent Company. Theoretical and effective tax rates % 2011 2010 Theoretical tax rate Non-taxable...

  • Page 130
    ... Plants under construction Total Group Acquisition costs Opening balance, January 1, 2010 Acquired during the year Transfer of work in progress and advances Sales, scrapping, etc. Exchange-rate differences Closing balance, December 31, 2010 Acquired during the year Acquisition of operations...

  • Page 131
    ... discount rates used are, amongst other things, based on the individual countries' inflation, interest rates and country risk. The pre-tax discount rates used in 2011 were for the main part within a range of 8.7% to 15.8%. For the calculation of the in-perpetuity value, Gordon's growth model is used...

  • Page 132
    Goodwill, value of trademark and discount rate 2011 Electrolux trademark Discount rate, % 2010 Electrolux trademark Discount rate, % Goodwill Goodwill Major Appliances Europe, Middle East and Africa Major Appliances North America Major Appliances Asia/Pacific Major Appliances Latin America Other ...

  • Page 133
    annual report 2011 notes all amounts in SEKm unless otherwise stated Note 14 Other non-current assets Group December 31, 2011 2010 Parent Company December 31, 2011 2010 Note 17 Trade receivables 2011 2010 Shares in subsidiaries Participations in other companies Long-term receivables in ...

  • Page 134
    ... trade receivables and related credit risks. The information in this note highlights and describes the principal financial instruments of the Group regarding specific major terms and conditions when applicable, and the exposure to risk and the fair values at year-end. Net borrowings At year-end 2011...

  • Page 135
    ... the Group's borrowings. Borrowings Nominal value Currency (in currency) Carrying amount, December 31, 2011 2010 Issue/maturity date Description of loan Interest rate, % Bond loans1) 2007-2012 2008-2013 2008-2014 2008-2016 2009-2014 2011-2013 2011-2016 2011-2016 Total bond loans Other long-term...

  • Page 136
    ...receivables in the consolidated balance sheet. The Group's customer-financing activities are performed in order to provide sales support and are directed mainly to independent retailers in Scandinavia. The majority of the financing is shorter than 12 months. There is no major concentration of credit...

  • Page 137
    annual report 2011 notes Cont. Note 18 all amounts in SEKm unless otherwise stated The table below presents the Group's financial assets and liabilities that are measured at fair value according to the fair value measurement hierarchy. Fair value measurement hierarchy 2011 2010 Level 3 Total ...

  • Page 138
    ... instruments The table below presents the fair value of the Group's financial derivative instruments used for managing financial risk and proprietary trading. Financial derivatives at fair value December 31, 2011 Assets Liabilities December 31, 2010 Assets Liabilities Interest-rate swaps Cash flow...

  • Page 139
    ... is not applied, i.e., held-for-trading Currency derivatives related to commercial exposure where hedge accounting is applied, i.e., cash flow hedges Loans and receivables Trade receivables/payables Available-for-sale financial assets Other shares and participations Total net gain/loss, income and...

  • Page 140
    ... derivatives related to commercial exposure where hedge accounting is applied, i.e., cash flow hedges Net investment hedges where hedge accounting is applied Short-term investments Financial assets at fair value through profit and loss Loans and receivables Cash and cash equivalents Financial assets...

  • Page 141
    annual report 2011 notes all amounts in SEKm unless otherwise stated Note 19 Assets pledged for liabilities to credit institutions Group December 31, 2011 2010 Parent Company December 31, 2011 2010 Real-estate mortgages Other Total 84 10 94 60 10 70 - 5 5 - 5 5 The major part of real-estate...

  • Page 142
    ... plans are listed below as Other post-employment benefits. In addition to providing pension benefits and compulsory severance payments, the Group provides healthcare benefits for some of its employees in certain countries, mainly in the US. The Group's major defined benefit plans cover employees...

  • Page 143
    ... Fair value of plan assets Surplus/deficit Present value of unfunded obligations Unrecognized actuarial losses (-) /gains (+) Unrecognized past-service cost Effect of limit on assets Net provisions for post-employment benefits Whereof reported as Prepaid pension cost in other non-current assets1...

  • Page 144
    ... The pension plan assets include ordinary shares issued by AB Electrolux with a fair value of SEK 49m (86). In 2012, the Group expects to pay a total of SEK 763m in contributions to the funds and payments of benefits directly to the employees. In 2011, this amounted to SEK 687m, of which SEK 380m...

  • Page 145
    ... rate. In Sweden, mortgage bonds are used for determining the discount rate. • Expected long-term return on assets is calculated by assuming that fixed-income holdings are expected to have the same return as ten-year corporate bonds. Equity holdings are assumed to return an equity-risk premium...

  • Page 146
    ... 2010 Present value of pension obligations Fair value of plan assets Surplus/deficit Limitation on assets in accordance with Swedish accounting principles Net provisions for pension obligations Whereof reported as provisions for pensions Amounts recognized in income statement Current service cost...

  • Page 147
    ...other provisions is uncertain. Note 24 Other liabilities Group December 31, 2011 2010 Parent Company December 31, 2011 2010 Accrued holiday pay Other accrued payroll costs Accrued interest expenses Prepaid income Other accrued expenses Other operating liabilities Total 796 974 83 363 5,288 2,993...

  • Page 148
    ...acquired and liabilities assumed at fair value Property, plant and equipment Intangible assets Inventories Trade receivables Other current and non-current assets Accounts payable Other operating liabilities Current assets held for sale Total identifiable net assets acquired Cash and cash equivalents...

  • Page 149
    ... 1, 2011, within the business area Major Appliances Europe, Middle East and Africa. Following closing of the tender offer, Electrolux has sold Olympic Group's shares in the companies Namaa and B-Tech and some additional assets to Paradise Capital for a total of SEK 522m, since they were not part of...

  • Page 150
    ... from AB Electrolux, Investor Relations and Financial Information. See also Electrolux website www.electrolux.com/employees-by-country Europe North America Rest of world Total 21,667 9,178 22,071 52,916 23,030 10,076 18,438 51,544 Salaries, other remuneration and employer contributions Salaries...

  • Page 151
    ... the stock-market value of a Class B share in Electrolux at the time of payment. In accordance with the fee structure laid down by the AGM, the Directors have for the 2008/2009, 2009/2010 and 2010/2011 terms of office been given the choice of receiving 25% or 50% of the fees for the Board assignment...

  • Page 152
    ... such as pensions and insurance. For the new President, the annualized base salary for 2011 has been set at SEK 9,878,000 (USD amount 1,450,000). It will not be reviewed until January 1, 2013. The variable salary is based on annual financial targets for the Group. Each year, a performance range is...

  • Page 153
    ... Chief Operations Officer Major Appliances and previously Head of Major Appliances North America. The contribution is a result of changed remuneration terms for Mr McLoughlin and refers to his services before accepting the role as Chief Executive Officer of AB Electrolux. Pensions for other members...

  • Page 154
    ... senior managers and key employees in about 20 countries. Participants in the program comprise five groups, i.e., the President, other members of Group Management, and three groups of other senior managers. All programs comprise Class B shares. Number of potential shares per category and year 2011...

  • Page 155
    ...: Associated companies 2011 Relation to Electrolux1) Participation,% Carrying amount Receivables Liabilities Sales Purchases Income statement Net Income results Balance sheet Total Total assets liabilities Sidème, France European Recycling Platform, ERP, France Total 1) From Electrolux perspective...

  • Page 156
    ... Subsidiaries Major Group companies Argentina Australia Austria Belgium Brazil Canada Chile China Denmark Egypt Finland France Holding, % Germany Hungary Italy Luxembourg Mexico The Netherlands Norway Poland Spain Sweden Switzerland United Kingdom USA Frimetal S.A. Electrolux Home Products Pty...

  • Page 157
    ... Annualized net sales In computation of key ratios where capital is related to net sales, the latter are annualized and converted at year-end exchange rates and adjusted for acquired and divested operations. Net assets Total assets exclusive of liquid funds and interest-bearing financial receivables...

  • Page 158
    ... accounting principles in Sweden and give a true and fair view of the Parent Company's financial position and results of operations. The statutory Administration Report of the Group and the Parent Company provides a fair review of the development of the Group's and the Parent Company's operations...

  • Page 159
    ...Auditor's report To the annual meeting of the shareholders of AB Electrolux (publ) Corporate identity number 556009-4178 Report on the annual accounts and consolidated accounts We have audited the annual accounts and consolidated accounts of AB Electrolux for the year 2011. The annual accounts and...

  • Page 160
    ... recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the President be discharged from liability for the financial year. Stockholm, February 24, 2012...

  • Page 161
    ...margin, % Financial position Total assets Net assets Working capital Trade receivables Inventories Accounts payable Equity Interest-bearing liabilities Net borrowings Data per share Income for the period, SEK Equity, SEK Dividend, SEK4) Trading price of B-shares at year-end, SEK Key ratios Return on...

  • Page 162
    2006 2005 20051) 20041) 20031) 20021) 20011) Compound annual growth rate, % 5 years 10 years 103,848 3.3 2,758 -542 4,033 3,825 2,648 7,333 5,263 -703 4,560 -2,386 -3,152 2,174 1,110 -4,416 3.0 4.4 4.2 7.1 66,049 18,140 -2,613 20,905 12,041 ...

  • Page 163
    annual report 2011 quarterly information all amounts in SEKm unless otherwise stated Quarterly information Net sales and income SEKm Q1 Q2 Q3 Q4 Full year Net sales Operating income Income after financial items Income for the period Earnings per share2) 2011 2010 2011 Margin, % 20111) Margin, %...

  • Page 164
    Net sales, by business area1) SEKm Q1 Q2 Q3 Q4 Full year Major Appliances Europe, Middle East and Africa Major Appliances North America Major Appliances Latin America Major Appliances Asia/Pacific Small Appliances Professional Products 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 ...

  • Page 165
    ... value for shareholders and other stakeholders. This involves the maintenance of an efficient organizational structure, systems for internal control and risk management and transparent internal and external reporting. Highlights 2011 • Keith McLoughlin new President and Chief Executive Officer...

  • Page 166
    ... information regarding the ownership structure, see above. The information on ownership structure is updated quarterly on the Group's website; www.electrolux.com/corporate-governance. 720 shareholders representing a total of 49.9% of the share capital and 60.4% of the votes were present at the 2011...

  • Page 167
    ... corporate governance report All Board members, as well as the Group's auditor in charge, were present at the meeting. Decisions at the Annual General Meeting 2011 included: • Dividend payment of SEK 6.50 per share for fiscal year 2010. • Election of the two new Board members Keith McLoughlin...

  • Page 168
    .... Keith McLoughlin has no major shareholdings, nor is he a part-owner in companies having significant business relations with Electrolux. Keith McLoughlin is the only member of Group Management with a seat on the Board. The Board's tasks The main task of the Board is to manage the Group's operations...

  • Page 169
    ... shareholding of a Board member should after five years correspond to the value of one gross annual fee. Board members who are not employed by Electrolux are not invited to participate in the Group's long-term incentive programs for senior managers and key employees. Remuneration to the President is...

  • Page 170
    ... prepare terms for pensions, notices of termination and severance pay as well as other benefits for Group Management. • To prepare and evaluate Electrolux long-term incentive programs. • To review the financial reporting. • To monitor the effectiveness of the internal control, including risk...

  • Page 171
    ...(Swedish Governmental Agency for Innovation Systems). Board Member of Fouriertransform AB, Skyllbergs Bruk AB and Calix Group AB. Board Member of Citi Trends Inc. and Cobra Electronics Corp., USA. Previous positions President and CEO of Investor AB, 1999-2005. Executive Vice-President of Investor...

  • Page 172
    ... Board Member of SCA AB, Telenor ASA, Orkla ASA, Fleming Invest AS and related companies. Senior positions within Electrolux: Head of Major Appliances North America and Executive Vice-President of AB Electrolux, 2003; also Head of Major Appliances Latin America, 2004-2007; Chief Operations Officer...

  • Page 173
    annual report 2011 corporate governance report External auditors The AGM in 2010 re-elected PricewaterhouseCoopers AB (PwC) as the Group's external auditors for a four-year period, until the AGM in 2014. Authorized Public Accountant Anders Lundin is the auditor in charge of Electrolux. PwC provides...

  • Page 174
    ... gain access to new ones. Developing consumer-insight based products with high quality, excellent design and services supported by operational excellence are crucial to achieve a market-leading position. Electrolux ambition is to become the best appliances company in the world measured by customers...

  • Page 175
    ...regarding members of Group Management, see pages 94-95. The information is updated regularly at the Group's website; www.electrolux.com/group-management. Internal bodies Risk Management Board Brand Leadership Group Global Major Appliances Leadership Team Global Product Boards Sourcing Board Human...

  • Page 176
    ... and key employees. For additional information on remuneration, remuneration guidelines, long-term incentive programs and pension benefits, see Note 27. Business sectors The sector heads are comprised of members of Group Management and have responsibility for the operating income and net assets of...

  • Page 177
    ...Electrolux, 2008. Senior management positions within Dupont in North America, Europe, Middle East and Africa, and globally, 1991-2003. Joined Electrolux in 2003 as VicePresident Brand Marketing, Major Appliances North America, 2003. Group Chief Marketing Officer, 2011. Board membership Board Member...

  • Page 178
    ...as well as Chief Operations Officer and Head of Global Operations Major Appliances during 2011. Head of Major Appliances Europe, Middle East and Africa and Executive Vice-President of AB Electrolux, 2011. Board Member of Polygon AB. Research & Development and Business Management positions within 3M...

  • Page 179
    ... should address key risks identified within important accounting principles applied by the the Group. Group Management have the ultimate Group. Qu art er E st Q Fir Fourth uarter Control environment - Example trade receivables Accounting Manual Credit Policy Internal Control Policy Delegaton...

  • Page 180
    ... outstanding payments are followed up. Application automatically blocks sales orders/deliveries when the credit limit is exceeded. Type of control Entity-wide control Manual control Significant account: Trade receivables Closing Routine - Risks assessed Manage IT - Risks assessed Manage IT Risk...

  • Page 181
    ... Inform and communicate within the Electrolux Group regarding risks and controls contributes to ensuring that the right business decisions are made. Guidelines for financial reporting are communicated to employees, e.g., by ensuring that all manuals, policies and codes are published and accessible...

  • Page 182
    ... news. • Meetings with financial analysts and investors in Sweden and worldwide. All reports, presentations and press releases are published simultaneously at www.electrolux.com/ir. Auditor's report on the Corporate Governance Statement To the annual meeting of the shareholders of AB Electrolux...

  • Page 183
    ...at seizing opportunities for new business models, products, materials and markets, while soundly managing ethical, social and environmental risks. The strategy is underpinned by a range of targets for achieving more eco-efficient operations and products, as well as absolute targets for chemicals use...

  • Page 184
    ... business success. Each year, Electrolux identifies new criteria for the most environmentally sound appliances among all Group products. Each market has a Green Range of energy and water efficient products based on these criteria. Group business units must report on yearly sales of these products...

  • Page 185
    ... by 36% (9). 2012 Energy-savings target (GRI EN18) % Target Appliances Europe, Middle East and Africa Appliances North America Appliances Asia/Pacific Appliances Latin America Small appliances Professional Products Electrolux Group Savings (in %) compared to 2005 0 2011 2010 2009 2008 2007 20...

  • Page 186
    ...recycling of plastics, an issue relevant to the Electrolux value chain. It continues its successful run in Asia and Europe. Electrolux Appliances North America received the US EPA 2011 ENERGY STAR Partner of the Year award for helping to educate consumers about the ENERGY STAR program and increasing...

  • Page 187
    ...the Group's website; www.electrolux.com/agm2012. • by telephone +46 8 402 92 79, on weekdays between 9 am and 4 pm • by mail to AB Electrolux c/o Euroclear Sweden AB Box 191 SE-101 23 Stockholm Sweden Notice should include the shareholder's name, personal identity or registration number, address...

  • Page 188
    ... development on an annual or quarterly basis. Electrolux Annual Report 2011 consists of: • Operations and strategy • Financial review, Corporate Governance Report and Sustainability Report Electrolux annual report is available at www.electrolux.com/annualreport2011 Electrolux Interim reports...

  • Page 189
    AB Electrolux (publ) Mailing address SE-105 45 Stockholm, Sweden Visiting address S:t Göransgatan 143, Stockholm Telephone: +46 8 738 60 00 Website: www.electrolux.com 599 14 14-28/4 Telefax: +46 8 738 74 61