Electrolux 2012 Annual Report Download

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Annual Report
Results
2012
Performance
Governance
Sustainability

Table of contents

  • Page 1
    Annual Report Results Performance Governance Sustainability 2012

  • Page 2
    ...-year review Quarterly information 74 76 Corporate governance report Board of Directors and Auditors Group Management 78 84 90 Summarized sustainability report Annual General Meeting Events and reports 96 100 101 Contact Peter Nyquist Senior Vice President Investor Relations and Financial...

  • Page 3
    ... number of employees Key data sustainability 109,994 -1,032 5,182 4.7 4,510 3,486 12.18 6.50 2) 59,478 101,598 -138 3,155 3.1 2,918 2,148 7.55 6.50 52,916 12,638 -119 595 518 401 1.40 16,336 -153 770 670 518 1.81 2012 2011 USA Brazil Germany Australia Switzerland Canada Sweden France Italy...

  • Page 4
    ... quarter, Electrolux posted a record-high organic growth of 7.5%. The growth rate for the full-year 2012 was 5.5%. Operations in North America and Latin America, which currently account for 50% of total sales, showed strong sales and earnings growth, primarily attributable to a continued positive...

  • Page 5
    ...of production of cooking products in North America. In line with our strategy, 2013 will be another intensive year of product launches, requiring increased investments in marketing and product development. The global macroeconomic development will be decisive for the Group's sales growth in 2013. We...

  • Page 6
    ...managers and employees. Profitable growth Innovation • Products and services • Brand and design • Sustainability Operational excellence People and Leadership Financial goals over a business cycle The financial goals set by Electrolux aim to strengthen the Group's leading, global position...

  • Page 7
    ... per share. • Net sales increased by 8.3%, of which 5.5% was organic growth, 3.9% acquisitions and -1.1% changes in exchange rates. • Strong volume growth, price increases and mix improvements in Latin America and North America contributed to the positive trend in net sales. • Operating income...

  • Page 8
    annual report 2012 board of directors report 2012 in summary Market overview Market demand for appliances in Electrolux core markets continued to decline in 2012 year-over-year, while demand in growth markets continued to grow. Market demand for core appliances in Western Europe and North America ...

  • Page 9
    .... Structural changes in 2012 In 2012, Electrolux continued the work to increase production competitiveness by optimizing its industrial production system, as communicated at the Capital Markets Day in November 2011. Several activities have been initiated within the business area Major Appliances...

  • Page 10
    ..., 3.9% acquisitions and -1.1% changes in exchange rates. Strong sales growth in North America, Latin America and Asia offset lower sales in core markets as Europe and Australia. The acquired companies Olympic Group and CTI contributed positively to the sales trend. • Net sales for 2012 increased...

  • Page 11
    ... Exchange-rate differences on translation of foreign operations Income tax related to other comprehensive income Other comprehensive income, net of tax Total comprehensive income for the period Income for the period attributable to: Equity holders of the Parent Company Non-controlling interests...

  • Page 12
    ...the acquired companies Olympic Group and CTI. Share of sales by business area Major Appliances Europe, Middle East and Africa, 31% Major Appliances North America, 28% Major Appliances Latin America, 20% Major Appliances Asia/Pacific, 8% Small Appliances, 8% Professional Products, 5% Net sales 2012...

  • Page 13
    ... of the product categories in core appliances and the Group captured market share. Operating income improved substantially, mainly as a result of higher sales prices but also due to higher volumes of core appliances. During the fourth quarter of 2012, operations in North America were impacted...

  • Page 14
    annual report 2012 board of directors report Major Appliances Latin America Net sales and operating margin SEKm 2012 2011 Net sales Operating income Operating margin, % Net assets Return on net assets, % Capital expenditure Average number of employees 22,044 1,590 7.2 6,700 22.7 488 13,812 17,...

  • Page 15
    ...sales growth for small domestic appliances, particularly in Asia/ Pacific. Higher sales of vacuum cleaners, mainly driven by promotion activities in North America around Black Friday, also contributed to the rise in sales and the Group captured market shares. Operating income for the full year 2012...

  • Page 16
    ... report 2012 board of directors report Financial position Net assets and working capital Electrolux ongoing structural efforts to reduce tied-up capital has contributed to the positive trend in working capital. Net assets and working capital Dec. 31, 2012 % of annualized net sales Dec. 31, 2011...

  • Page 17
    ... 31, 2012 December 31, 2011 Assets Non-current assets Property, plant and equipment Goodwill Other intangible assets Investments in associates Deferred tax assets Financial assets Other non-current assets Total non-current assets Current assets Inventories Trade receivables Tax assets Derivatives...

  • Page 18
    ...2013 2014 2015 2016 2017 2018- Borrowings Liquid funds Net borrowings Net debt/equity ratio Equity Equity per share, SEK Return on equity, % Equity/assets ratio, % 13,088 7,403 5,685 0.29 19,824 69.28 13.3 28.8 14,206 7,839 6,367 0.31 20,644 72.52 10.4 30.1 At year-end, the average interest rate...

  • Page 19
    ... Cash flow hedges Exchange-rate differences on translation of foreign operations Income tax relating to other comprehensive income Other comprehensive income, net of tax Total comprehensive income for the period Share-based payment Sale of shares Dividend SEK 6.50 per share Acquisition of non...

  • Page 20
    ... 2012 2011 Capital expenditure SEKm 5,000 4,000 3,000 2,000 1,000 0 08 09 10 11 12 Depreciation and amortization Capital expenditure 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...

  • Page 21
    ... Share-based compensation Financial items paid, net Taxes paid Cash ï¬,ow from operations, excluding change in operating assets and liabilities Change in operating assets and liabilities Change in inventories Change in trade receivables Change in other current assets Change in accounts payable...

  • Page 22
    ... Start Porcia Memphis Italy USA Washing machines Cookers 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 3.2 billion. In 2011...

  • Page 23
    ... rights. Information on the shareholder structure is updated quarterly at www.electrolux.com. One of the Group's pension funds owned 450,000 Class B shares in AB Electrolux as of January 31, 2013. Articles of Association AB Electrolux Articles of Association stipulate that the Annual General Meeting...

  • Page 24
    ...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 company acquisitions and the company's share-related incentive programs. The Board of Directors proposes that the AGM 2013 resolves...

  • Page 25
    ... value is based on three elements: Innovative products, strong brands and cost-efficient operations. Realizing this potential requires effective and controlled risk management. Risks in connection with the Group's operations can, in general, be divided into operational risks related to business...

  • Page 26
    ...Electrolux Code of Ethics, the Electrolux Workplace Code of Conduct, the Electrolux Policy on Corruption and Bribery and Environmental Policy. Number of employees The average number of employees increased in 2012 to 59,478 (52,916), of whom 2,049 (2,184) were in Sweden. At year-end, the total number...

  • Page 27
    ...the Group established by the Board for (i) earnings per share, (ii) return on net assets and (iii) organic sales growth, for the 2013 financial year. The proposed program will include up to 225 senior managers and key employees. Allocation of performance-based shares, if any, will take place in 2016...

  • Page 28
    ... report 2012 board of directors report Other facts February 1, 2013. Electrolux acquires its head office in Stockholm Electrolux has acquired its head office building with associated grounds at S:t Göransgatan in Stockholm, Sweden. The purchase price was SEK 1,145m and possession took place...

  • Page 29
    ...the functions of the Group's head office, as well as five companies operating on a commission basis for AB Electrolux. Net sales for the Parent Company in 2012 amounted to SEK 6,125m (6,660), of which SEK 2,959m (3,266) related to sales to Group companies and SEK 3,166m (3,394) to external customers...

  • Page 30
    annual report 2012 board of directors report Parent Company balance sheet SEKm Note December 31, 2012 December 31, 2011 Assets Non-current assets Intangible assets Property, plant and equipment Deferred tax assets Financial assets Total non-current assets Current assets Inventories Receivables ...

  • Page 31
    ...flow hedges Income tax relating to other comprehensive income Other comprehensive income, net of tax Total comprehensive income for the period Share-based payment Sale of shares Dividend SEK 6.50 per share Total transactions with equity holders Closing balance, December 31, 2012 1,545 1,545 1,545...

  • Page 32
    annual report 2012 board of directors report Parent Company cash flow statement SEKm 2012 2011 Operations Income after financial items Depreciation and amortization Capital gain/loss included in operating income Share-based compensation Taxes paid Cash ï¬,ow from operations, excluding change in ...

  • Page 33
    ... intangible assets Other non-current assets Inventories Other current assets 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...

  • Page 34
    ... Group, except in the cases specified below in the section entitled Parent Company accounting principles. The financial statements were authorized for issue by the Board of Directors on January 31, 2013. The balance sheets and income statements are subject to approval by the Annual General Meeting...

  • Page 35
    ...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 36
    ...impairment. The Electrolux trademark in North America, acquired in 2000, is regarded as an indefinite life intangible asset and is not amortized. One of the Group's key strategies is to develop Electrolux into the leading global brand within the Group's product categories. This acquisition has given...

  • Page 37
    ...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 of inventories is assigned by using...

  • Page 38
    ... 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 costs. Past-service costs...

  • Page 39
    ... 2013. IAS 19 Employee Benefits (Amendments). IAS 19 prescribes the accounting and disclosure by employers for employee benefits. The amended standard requires an entity to regularly determine the present value of defined benefit obligations and the fair value of plan assets and to recognize the net...

  • Page 40
    ... of the financial statements, Electrolux estimates the income taxes in each of the taxing jurisdictions in which the Group operates as well as any deferred taxes based on temporary differences. Deferred tax assets relating mainly to tax loss carry-forwards, energy tax-credits and temporary...

  • Page 41
    ... accounts at year-end 2012 was SEK 674m. 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...

  • Page 42
    ... by three regional treasury centers located in Singapore, North America, and Latin America. Measurement of risk in Group Treasury is performed by a separate risk-controlling function on a daily basis. The method used for measuring risk in the financial position is parametric Value-at-Risk (VaR). The...

  • Page 43
    ...banks. The Group manages the capital structure and makes adjustments to it in light of changes in 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...

  • Page 44
    ... 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 management is...

  • Page 45
    ... Segment information Assets December 31, 2012 2011 Equity and liabilities December 31, 2012 2011 Net assets December 31, 2012 2011 Reportable segments - Business areas The Group has six reportable segments. Products for the consumer durables market, i.e., major appliances and small appliances, have...

  • Page 46
    annual report 2012 Cont. Note 3 notes all amounts in SEKm unless otherwise stated Geographical information Net sales1) 2012 2011 Note 5 Other operating income Group 2012 2011 Parent Company 2012 2011 USA Brazil Germany Australia Switzerland Canada Sweden (country of domicile) France Italy ...

  • Page 47
    ... trading. Interest expenses to others, for the Group and the Parent Company, include gains and losses on derivatives used for managing the Group's interest fixing and premiums on forward contracts in the amount of SEK 0m (-37) used as hedges for foreign net investments. For information on financial...

  • Page 48
    ... tax assets and liabilities has involved a positive effect of SEK 2m. In total, deferred taxes in 2012 include a negative effect of SEK -5m (7) due to changes in tax rates. The consolidated accounts include deferred tax liabilities of SEK 128m (157) related to untaxed reserves in the Parent Company...

  • Page 49
    ... technical installations Other equipment Plants under construction Total Group Acquisition costs Opening balance, January 1, 2011 Acquired during the year Acquisition of operations Divestment of operations Transfer of work in progress and advances Sales, scrapping, etc. Exchange-rate differences...

  • Page 50
    ... equipment Parent Company Land and land improvements Buildings Machinery and technical installations Other equipment Plants under construction Total Acquisition costs Opening balance, January 1, 2011 Acquired during the year Transfer of work in progress and advances Sales, scrapping, etc. Closing...

  • Page 51
    ... intangible assets Group Other intangible assets Product development Program software Total other intangible assets Parent Company Trademarks, software etc. Goodwill Other Acquisition costs Opening balance, January 1, 2011 Acquired during the year Acquisition of operations Internally developed...

  • Page 52
    ... Note 14 Other non-current assets Group December 31, 2012 2011 Parent Company December 31, 2012 2011 Note 17 Trade receivables 2012 2011 Shares in subsidiaries Participations in other companies Long-term receivables in subsidiaries Other receivables Pension assets Total - - - 481 1,875 2,356...

  • Page 53
    ... 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 2012...

  • Page 54
    ... pertain mainly to countries with capital restrictions. The average maturity of the Group's long-term borrowings including long-term borrowings with maturities within Repayment schedule of long-term borrowings, December 31 2013 12 months was 3.1 years (3.0), at the end of 2012. The table below...

  • Page 55
    ... 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 risk related to customer financing. Collaterals...

  • Page 56
    annual report 2012 Cont. Note 18 notes all amounts in SEKm unless otherwise stated Fair value and carrying amount on financial assets and liabilities 20121) Carrying amount 20111) Carrying amount Financial assets Financial assets at fair value through profit and loss Available-for-sale Trade ...

  • Page 57
    ...assets or liabilities either directly or indirectly. Level 3: Inputs for the assets or liabilities that are not entirely based on observable market date. The table below presents the Group's financial assets and liabilities that are measured at fair value. Fair value measurement hierarchy 2012 2011...

  • Page 58
    ...-based payments recognized in income, income from sales of own shares and the amount recognized for the common dividend. Earnings per share 2012 2011 The equity attributable to equity holders of the Parent Company consists of the following items: Share capital The share capital of AB Electrolux...

  • Page 59
    ... be based on final salary, on career average salary, or on a fixed amount of money per year of employment. Under defined contribution plans, the company's commitment is to make periodic payments to independent authorities or investment plans, and the level of benefits depends on the actual return on...

  • Page 60
    ... -735 For the Group, total expenses for pensions, healthcare and other post-employment benefits have been recognized as operating expenses and classified as cost of goods sold, selling expenses or administrative expenses depending on the function of the employee. In the Parent Company, a similar...

  • Page 61
    ... The pension plan assets include ordinary shares issued by AB Electrolux with a fair value of SEK 77m (49). In 2013, the Group expects to pay a total of SEK 544m in contributions to the funds and payments of benefits directly to the employees. In 2012, this amounted to SEK 476m, of which SEK 189m...

  • Page 62
    ... asset, but may in some cases be refunded to the company to offset pension costs. Change in fair value of plan assets Funded Opening balance, January 1, 2011 Actual return on plan assets Contributions and compensation to/from the fund Closing balance, December 31, 2011 Actual return on plan assets...

  • Page 63
    ... restrucTotal turing Claims Other Parent Company Warranty commitments Other Total Opening balance, January 1, 2011 Acquisitions of operations Provisions made Provisions used Unused amounts reversed Exchange-rate differences Closing balance, December 31, 2011 Of which current provisions Of which non...

  • Page 64
    ... stated Note 25 Contingent liabilities Group December 31, 2012 2011 Parent Company December 31, 2012 2011 Trade receivables, with recourse Guarantees and other commitments On behalf of subsidiaries On behalf of external counterparties Employee benefits in excess of reported liabilities Total...

  • Page 65
    ... of the transactions in 2011, see Electrolux Annual Report 2011. Divested operations Divestments 2012 2011 Fixed assets Inventories Receivables Other current assets Other liabilities and provisions Net assets Sales price Net borrowings in acquired/divested operations Effect on Group cash and cash...

  • Page 66
    ... of the average number of employees by country has been submitted to the Swedish Companies Registration Office and is available on request from AB Electrolux, Investor Relations and Financial Information. See also Electrolux website www.electrolux.com/employees-by-country. Europe North America Rest...

  • Page 67
    ...-term performance-share program and other benefits such as pensions and insurance. For the President, the annualized base salary for 2012 has been set at USD 1,450,000 (approximately SEK 9.9m). The variable salary is based on annual financial targets for the Group. Each year, a performance range is...

  • Page 68
    ... income base amounts. The pensionable salary is calculated as the current fixed salary including vacation pay plus the average variable salary for the last three years. Accrued capital is subject to a real rate of return of 3.5% per year. Compensation paid to Group Management 2012 Variable salary...

  • Page 69
    ... based on a share price of SEK 168.62 for 2010, SEK 143.58 for 2011 and SEK 129.49 for 2012, calculated as the average closing price of the Electrolux Class B share on the Nasdaq OMX Stockholm during a period of ten trading days before the day participants were invited to participate in the program...

  • Page 70
    ... concerning financial accounting and reporting standards; internal control reviews; and employee benefit plan audits. Audit-related fees also include review of interim report. 3) Tax fees include fees for tax-compliance services, including the preparation of original and amended tax returns and...

  • Page 71
    ...SEK 228m (202). Group companies The following table lists the major companies included in the Electrolux Group. A detailed specification of Group companies has been submitted to the Swedish Companies Registration Office and is available on request from AB Electrolux, Investor Relations and Financial...

  • Page 72
    ... 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 less operating liabilities, non-interest-bearing provisions and deferred tax...

  • Page 73
    ... 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 74
    ... 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 2012. The annual accounts and consolidated accounts of the company are included in the printed...

  • Page 75
    ...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 22, 2013 PricewaterhouseCoopers AB Anders Lundin Authorized Public Accountant Partner in Charge Björn Irle...

  • Page 76
    ... of net sales EBITDA 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...

  • Page 77
    2007 2006 2005 20051) 20041) 20031) 20021) Compound annual growth rate, % 5 years 10 years 104,732 4.0 2,738 -362 4,475 4,035 2,925 7,575 5,498 -152 5,346 -4,069 -3,430 1,277 1,277 -6,708 3.3 4.6 4.2 7.2 66,089 20,743 -2,129 20,379 12,398 ...

  • Page 78
    annual report 2012 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) 2012 2011 2012 Margin, % 20121) Margin...

  • Page 79
    Net sales, by business area 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 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 8,...

  • Page 80
    ... and risk management. • Electrolux Code of Ethics, Policy on Corruption and Bribery and Workplace Code of Conduct. Global Product Boards For further information regarding: • Swedish Companies Act; www.sweden.gov.se • Nasdaq OMX Stockholm; www.nasdaqomxnordic.com • Swedish Code of Corporate...

  • Page 81
    ... completed. • Performance-based, long-term incentive program for top management. • Focus on a global ethics-training program and implementation of a whistleblowing system. B-shares represented 78.6% of the voting rights and 97.3% of the share capital. Dividend policy Electrolux goal is for the...

  • Page 82
    ... the Board members. • Approval of remuneration guidelines for Electrolux Group Management. • Performance-based, long-term incentive program for 2012 covering up to 180 managers and key employees. • Authorization to acquire own shares for the purpose of financing potential company acquisitions...

  • Page 83
    ... since he is President and CEO of Atlas Copco AB and one member of the Electrolux Group Management is a board member of Atlas Copco AB. 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...

  • Page 84
    ... industrial production system. • Capitalization of the Group. • Electrolux growth strategy. • Dividend payment for the fiscal year 2011. The working procedures for the Board also include detailed instructions to the President and other corporate functions regarding issues requiring the Board...

  • Page 85
    ... Management for 2013. The Head of Human Resources and Organizational Development participated in the meetings and was responsible for meeting preparations. Audit Committee The main task of the Audit Committee is to oversee the processes of Electrolux financial reporting and internal control in order...

  • Page 86
    ...Head of Major Appliances North America and Executive Vice President of AB Electrolux, 2003, also Head of Major Appliances Latin America, 2004-2007, and Chief Operations Officer Major Appliances, 2009-2010. Senior management positions within DuPont, USA, 1981-2003. - 9/9 Total remuneration 2012, SEK...

  • Page 87
    ... related companies. Executive Vice President and Chief Financial Officer of Axel Johnson AB, 2000-2007. Head of Research of Aros Securities AB, 1998-2000. Various positions within ABB Financial Services AB, 1992-1998. Senior positions in various companies within the Bonnier Group since 1998, CEO...

  • Page 88
    ... financial statements for the Electrolux Group and the administration of AB Electrolux. The auditors also conduct a review of the report for the third quarter. The audit is conducted in accordance with the Swedish Companies Act, International Standards on Auditing (ISA) and generally accepted...

  • Page 89
    ... of Electrolux strategy. Strong brands grow sales in existing markets and 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 objective...

  • Page 90
    ... while the sectors Professional Products and Small Appliances are global. There are seven group staff units that support all business sectors: Finance, Legal Affairs, Human Resources and Organizational Development, Marketing and Branding, Technology and Product Development, Design and Communications...

  • Page 91
    Major issues addressed by the President and Group Management in 2012 • Electrolux growth strategy. • Integration of the acquisitions of CTI in Chile and Olympic Group in Egypt. • Optimizing of the manufacturing footprint. • Accelerating efforts to capitalize on the Group's global strength ...

  • Page 92
    ... Major Appliances, 2010. Group Chief Technology Officer, 2011. Management positions within ABB Group, 1987- 2002. Chief Financial Officer of Seco Tools AB, 2002-2006. Chief Financial Officer of ASSA ABLOY AB, 2006-2012. Chief Financial Officer of AB Electrolux, 2012. Executive Vice President...

  • Page 93
    ... management positions within controlling and finance in General Motors North America, 2001-2005. Chief Financial Officer of Munters AB, 2005-2008. Chief Financial Officer of AB Electrolux, 2008-2011 as well as Chief Operations Officer and Head of Global Operations Major Appliances during 2011. Head...

  • Page 94
    annual report 2012 corporate governance report Internal control over financial reporting The Electrolux Control System (ECS) has been developed to ensure accurate and reliable financial reporting and preparation of financial statements in accordance with applicable laws and regulations, generally ...

  • Page 95
    ... year, the Electrolux Control System Program Office performs a global risk assessment to determine the reporting units, data centers and processes in scope for the ECS activities. Within the Electrolux Group, a number of different processes generating transactions that end up in significant accounts...

  • Page 96
    ... 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 through the group-wide intranet as well as information related to the Electrolux Control System. This information...

  • Page 97
    ...the market, a Disclosure Committee has been formed. Electrolux has a communications policy meeting the requirements for a listed company. Financial information is issued regularly in the form of: • Full-year reports and interim reports, published as press releases. • The Annual Report. • Press...

  • Page 98
    ...business. Its sustainability strategy focuses both on responsibly managing social, ethical and environmental risks and on developing emerging opportunities around new products, materials, and markets. It comprises three core aspects: • Products, services and markets-to sustainably provide resource...

  • Page 99
    Products, services and markets equivalent refrigerators, won Italy's 'Horeca 24 Innovation of the Year' for green solutions in the hotel and restaurant industry. As of 2012, more stringent European Eco-Design energy-efficiency requirements mean refrigerators in energy class 'A' can no longer be ...

  • Page 100
    ...safety culture across the organization, a global safety management system will be rolled out from 2013. Ethics, integrity and human rights Continued focus will be on bringing Egyptian Olympic and Chilean CTI operations, acquired in 2011, in line with high Group standards. In 2012, Electrolux stepped...

  • Page 101
    .... Due in part to their growing importance as markets, the proportion of manufacturing from low-cost countries currently accounts for 60% of global production, up from 30% in 2004. The Responsible Sourcing program helps ensure that suppliers adhere to the same high environmental and labor standards...

  • Page 102
    ... in the General Meeting. In order for such registration to be effectuated on Wednesday, March 20, 2013, shareholders should contact their bank or trustee well in advance of that date. Dividend The Board of Directors proposes a dividend for 2012 of SEK 6.50 per share, for a total dividend payment of...

  • Page 103
    ... Electrolux share and corporate governance as well as a platform for financial statistics. The platform allows visitors to view graphic illu strations detailing Electrolux development on an annual or quarterly basis. Electrolux Annual Report 2012 consists of: • Operations and strategy • Results...

  • Page 104
    AB Electrolux (publ) 599 14 14-34/2 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