Electrolux 2013 Annual Report Download - page 16

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Mission –
financial goals
The Electrolux mission towards its shareholders is dened by the company’s nancial goals
and measured by their outcome. In addition to maintaining and strengthening the Group’s
leading, global position in the industry, achieving the nancial goals will contribute to
a healthy total return for Electrolux shareholders.
Operating margin
of at least 6%
Electrolux can achieve a high level of profitability by maintaining
its focus on innovative products, strong brands and enhanced
efficiency. In 2013, the most efficient products, the Electrolux
Green Range, represented 12% of products sold and 24% of
gross profit. The Group’s operating margin was 3.7%, excluding
items affecting comparability. Weak markets in Europe and
unfavourable currency movements impacted earnings in 2013,
although Major Appliances North America and Professinal
Products showed an operating margin well above 6%.
Operating margin
Capital turnover-rate
of at least 4 times
Electrolux strives for an optimal capital structure in relation to
the Group’s goals for profitability and growth. In recent years,
work on reducing working capital has been intensified. It has
resulted in a lower level of structural working capital. Reducing
the amount of capital tied up in operations creates opportunities
for rapid and profitable growth. The capital turnover-rate was
3.8 times in 2013. The acquisitions in 2011 of Olympic Group in
Egypt and CTI in Chile have impacted the capital turnover-rate
negatively.
Capital turnover-rate
>6 %3.7%>4 x3.8 x
SEKm
0
2,000
4,000
6,000
8,000
1312111009
Operating income
Operating margin
Goal 6%
%
0
2
4
6
8
Times
0
2
4
6
1312111009
Capital turnover-rate
Goal 4 times
Goal Result 2013 Goal Result 2013
14 ANNUAL REPORT 2013
Vision and mission