Electrolux 2011 Annual Report Download - page 9

was also implemented in August. As sales in the US have largely
been driven by promotions and thus the net impact of the price
increases was limited in 2011. In early 2012, we have started raising
prices in some of our major markets in Europe. We realize, of course,
the challenges that this entails. The weak economy in Europe and
the US means that we will receive no support from strong market
growth. However, we are forced to act due to the steep cost
increases that has impacted us over the past two years mainly for
steel, plastics and sourced products.
August 22
We made our second acquisition
At the beginning of my CEO statement, I mentioned that we achieved
three of our four financial goals in 2010. We achieved our goals for
operating margin, capital-turnover rate and return on net assets,
although we did not meet our growth goal of 4%. We are now inten-
sifying our focus on growth. During the year, we acquired CTI and
Olympic Group, which combined with strong organic growth
increased our pro-forma sales in growth markets from 25% in 2009
to 35% in 2011. These acquisitions not only enable us to become
leaders in new markets, but also to quickly leverage synergies
associated with the new companies in a global organization that
works efficiently across borders. A prioritized aspect of 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 adapted to regional requirements,
such as our Keyhole Hob in Asia and our Ultra Clean washing
machine in Brazil. By continuing to grow organically, the share of our
sales in growth markets will reach 50% within a five-year period.
Through further acquisitions, this goal could be achieved even sooner.
But naturally, expansion must be profitable and generate share-
holder value.
September 5
We discuss key industry trends at the IFA
trade show in Berlin
At the IFA trade fair in Berlin, one of the world’s largest fairs for con-
sumer electronics and household appliances, highly relevant trends
for our business were discussed. At Electrolux, we continuously
engage in dialog with users of our products. Our in-depth insight
into what consumers want and need provides us with an important
competitive edge. In 2011, we initiated a number of activities aimed
at providing users with the best products and the market’s best
service. This is building an even stronger platform for profitable
growth for Electrolux. At the IFA trade show, we displayed our new
range of AEG products and during the second half of 2011 the AEG
products have started to gain market shares in Europe and contrib-
uted to a positive mix.
365
days
5