Electrolux 2011 Annual Report Download - page 8

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 signicant for our long-term development. We are now intensifying our
focus on growth. We acquired CTI and Olympic Group, which combined with strong organic growth
have increased our pro-forma sales in growth markets from 25% in 2009 to 35% in 2011.
My first year as President and CEO of Electrolux has passed. It was
an eventful and dramatic year, particularly against the backdrop of
rising raw-material prices and the sharp fall in prices in our major
markets, while at that same time demand in mature markets weak-
ened. All of this took place in an environment characterized by
increasing socio-economic insecurity. 2011 also marked a year in
which we took a number of strategic decisions that will be highly
significant for our long-term development. While profit for 2011 did
not reach the same high level as for 2010, Electrolux remains a very
strong company – and with more distinct focus on growth. Allow me
to describe a few of the key events that occurred during 2011 that
demonstrate how we strengthened Electrolux in line with our strate-
gic focus.
February 2, 2011
Presentation of 2010 year-end report
and implementation of an important
reorganization
As we leave a successful 2010 behind us – a year in which we
achieved three of our four financial goals – we restructure the orga-
nization to enhance the focus on our products. We create “The Inno-
vation Triangle”, which aims to promote closer collaboration within
the Group between the marketing, product development and design
units. The objective is to develop more successful products while
also accelerating the pace of the development process by leverag-
ing synergies at global and regional levels. To focus and deepen the
significance of the innovation triangle, we now have, for the first time
in the history of Electrolux, a Chief Technology Officer, a Chief Mar-
keting Officer and a Chief Design Officer on the Group Management
team. As a result of this change, we have created a forum for highly
dynamic discussions in the management team. One of the principal
elements of the new cooperation is the introduction of uniform
launch criteria throughout the Group. Among other factors, this
stipulates that no product may reach the market unless it is the pre-
ferred choice of at least 70% of a consumer test panel in relation to
similar alternatives.
March 18
Electrolux named one of the world’s most
ethical companies
Irrespective of which products and solutions we develop, we
endeavor to continuously improve our products’ performance. Our
ambition is not only confined to product development, but to all of
our ethical work and our involvement in such issues as the ever-
increasing problems of water shortages in rapidly growing metro-
politan areas of growth countries and the pollution of our seas. After
many years of hard and resolute work, we received recognition of
this when the Ethisphere Institute, a think-tank dedicated to examin-
ing the ethical and social work of companies throughout the world,
named Electrolux as one of the world’s most ethical companies. In
addition to our ethical framework, the assessment was based on our
entire sustainability program, including our investments in innova-
tions. Additional confirmation of our sustainability strategy during the
year was, of course, our inclusion, for the fifth consecutive year, in the
prestigious Dow Jones Sustainability World Index (DJSI World).
April 4
We implement price hikes in North America
Already back in early 2011, we announced our intentions to raise
prices for all products in the US market for the purpose of restoring
profitability. On April 4, we raised prices and a second price increase
annual report 2011 CEO statement
4