Electrolux 2014 Annual Report Download - page 58

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Professional Products
Electrolux offers food-service equipment and laundry solutions for
professional users. Resource-efficient products and an extensive service
network give the Group a strong global position. During the year,
Electrolux continued to grow by focusing on expanding in growth
regions and in new, profitable markets and business segments.
Alberto Zanata, Head of Professional Products
North America represents slightly
more than % and Europe % of the
global market demand for professional
products.
Of the Group’s professional products
sales, approximately two thirds are from
food-service equipment and one third
from laundry equipment. About % of
sales is generated in Europe and almost
% in North America. Other key mar-
kets include Japan, China, Turkey, the
Middle East and Africa.
Electrolux has a strong position in
the European food-service market, in
particular in the institutional (hospital,
staff canteens, schools) and hospital-
ity (restaurants, catering and hotels)
segments. The Group is also a leading
player in complete installations in a
number of growth regions. Food-ser-
vice equipment is sold mainly under
the Electrolux brand, but also under
regional brands, such as Zanussi. Exam-
ples of laundry equipment customers
include hospital and hotel laundries.
Electrolux also supplies products for
apartment-building laundries in Scan-
dinavia and for launderettes, mainly in
North America.
Growth and innovation
During the year, Professional Products
continued to grow by focusing on
expanding in growth regions and in
new, profitable markets and business
segments, such as the growing mar-
ket for fast-food chains. Examples of
products developed for chains and new
segments are the Electrolux high-speed
panini grill and the Electrolux myPRO
range of professional washers and
dryers for small businesses.
The Group continued to develop
intelligently designed and high-perform-
ing products with strong sustainability
profiles. Innovation in the laundry sector
is strongly linked to lower costs by
reducing the consumption of energy,
water and laundry detergent without
compromising on washing and rinsing
results. Electrolux professional washing
machines and tumble-dryers are among
the most energy and water-efficient in
the market. Energy efficiency has a high
priority in the development of profes-
sional food-service equipment.
Some key launches during the year
included Electrolux Thermaline Mod-
ular range, a further development of
the modular system for professional
cooking. In Asia, a specially developed
dishwasher for the Asian market was
launched, which tolerates high tempera-
tures, high humidity, power failures and
variations in water pressure.
Solutions arising from the develop-
ment of professional products often
benefit the consumer market. Electrolux
Grand Cuisine, the first and only pro-
fessional cooking system designed for
homes in the ultra-luxury segment,
comprises a clear example of this.
Collaboration with professional users
was strengthened in  through a
partnership with the World Association
of Chefs’ Societies (Worldchefs).
Operational excellence
An Excellence Program is in place to
achieve the highest possible standards
of quality and effective cost control.
The aim of the program is to make
Electrolux the industry benchmark from
the perspective of innovation, quality,
distribution lead time and customer
support. Examples include shorter
distribution times for Modular Cooking,
the development of new dishwashers
for further growth in Asia and customer
contracts in new growth segments.
PRIORITIES
MOVING FORWARD
• Expand in growth markets and in
new segments
• Grow in the restaurant-chain business
• Invest further in product innovation
COMMENTS
ON PERFORMANCE
Professional Products showed an organic
growth of more than % in . Sales grew
both in traditional markets and in growth
markets.
Operating income and margin improved,
mainly as a result of higher sales volumes,
higher prices and enhanced cost structure.
NET SALES AND
OPERATING MARGIN
MARKET POSITION
• Leadership position in Europe
• Global presence
• Growing share in emerging markets
SHARE OF OPERATING INCOME
14%
SHARE OF NET SALES
5%
SEKm
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1413121110
Net sales Operating margin
%


 ELECTROLUX ANNUAL REPORT 
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