Electrolux 2014 Annual Report Download - page 17

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X=
>20%
Return on
net assets
4%
Average growth
Value
creation
Over the past ten years, Electrolux shareholders have
received an average, annual total return of approximately
%. The Group’s capacity to create healthy cash flow and
to enhance operational efficiency represent strong contrib-
uting factors to this value creation. There is further potential
for profitability by raising margins. According to the strategy,
innovative products are to contribute to higher profitability
and a margin of not less than %. A capital turnover-rate of
at least four times combined with an operating margin of
% should yield a minimum return of %. Further potential
for value creation is possible if Electrolux can increase sales
while retaining this profitability level. The objective is annual
organic growth of %.
Return on net assets
of at least %
Focusing on growth with sustained profitability and a
small but effective capital base enables Electrolux to
achieve a high long-term return on capital. With an oper-
ating margin that achieves the target of % and a capital
turnover-rate of at least four times, Electrolux would
achieve a return on net assets (RONA) of at least %.
The figure reported for  was %.
Return on net assets
Average growth of
at least % annually
In order to reach the growth goal, the Group continues
to strengthen its positions in the premium segment,
expand in profitable high-growth product categories,
develop service and aftermarket operations and increase
the offering of resource-efficient products. Organic
growth is complemented by acquisitions to allow more
rapid implementation of the growth strategy. During the
year, an agreement was signed to acquire the US appli-
ance producer GE Appliances from General Electric, the
largest acquisition in the history of Electrolux, see page
. Sales rose by .% in . The organic sales growth
was .%, currencies had a positive impact of .%.
Sales growth
>20%17%>4%1.1%
GOAL GOALRESULT  RESULT 
Financial goals over a business cycle, excluding items affecting comparability.
6%
Operating margin
4x
Capital turnover-rate
SEKm
,
,
,
,
,
,
1413121110
Net sales
Organic
sales growth)
Goal %
%
-
-
-
SEKm
,
,
,
,
,
,
1413121110
Average net assets
Return on net assets
Goal %
%







) In local currencies and
comparable operating units.
ELECTROLUX ANNUAL REPORT 