Slides
Page 1
Results presentationYannick Fierling, President and CEOTherese Friberg, CFOAnn-Sofi Jönsson, Head of IR & Sust. reporting Q42025
Page 2
2 2025 – strengthened market position and improved profitability •Organic sales of SEK 131,282m (136,150) with an organic sales growth of 3.9% (5.1)•Improvement in operating income of SEK 3.7bn (1.1) and margin to 2.8% (0.8) in FY 2025•Supported by cost reductions of SEK 4bn, driven procurement and value engineering improvements •Operating cash flow after investments at SEK 2.0bn (2.3) with a strong Q4 5.2bn (2.7) •Financial position strengthened and leverage decreased to net debt/EBITDA of 3.0x (3.4x) FY 2025 results summary Operating income, excl NRI* % Progression towards financial targets Return on Net operating assets, RONA % 9.4% 2.8% 131,282SEK bn -5 %0%5%10%15%20% 105110115120125130135140 20152016201720182019202020212022202320242025 Net sales 0%1%2%3%4%5%6%7% 20152016201720182019202020212022202320242025 -10 %-5 %0%5%10%15%20%25%30 %35 %40 % 20152016201720182019202020212022202320242025 AB ELECTROLUX –Q42025 Financial targets over a business cycle Organic growth * NRI = Non-recurring items 3.9%
Page 3
Q4 -Growth in focus categories supported organic sales increase **Excluding non-recurring items (NRI)AB ELECTROLUX –Q42025 SEKmQ42025Q42024ChangeNet sales35,11237,968-7.5%Organic growth2.0%11.5%-9.5ptsDivestments-0.6%-0.3%-0.3ptsCurrency-8.9%-4.7%-4.3ptsEBIT1,5171,05244.3%Margin4.3%2.8%1.6ptsEBIT excl. NRI1,5171,24921.5%EBIT margin excl. NRI4.3%3.3%1.0pts EBIT and margin (SEKm)** Positive organic sales growth•Driven by growth in focus categories in Europe, Asia Pacific, Middle East, Africa, and increased volumes in Latin America•Competitive pressure negatively affected sales in North AmericaImproved operating income•Positive contribution of SEK 1.2bn from increased cost efficiency, primarily through reduced product cost•External factors significantly negative, mainly due to increased costs for U.S. tariffs, and currency headwinds (weakening of the USD) in North America•In Q4 2024, operating income included SEK 185m positive impact from divestment of potential asbestos exposure in the U.S., and SEK -198m negative NRI* related to divestment of water heater business in South Africa 3*NRI= Non-recurring item
Page 4
Electrolux and AEG brands gained market shares•Volumegrowth and positive mix contribution, Electrolux and AEG continuedto gainmarket share•High price pressure in market, resulting in negative price developmentStrong earningsperformance•Positive effect from mix improvements and higher volumes offset negative price impact•Increased cost efficiency driven mainly by product cost reductions •Investments in innovation and marketing continued, a positive effect on earnings due to the phasing between quarters•Operating income in Q4 2024 included negative NRI of SEK -198m related to the divestment of the water heater business in South Africa Europe, Asia-Pacific, Middle East, and Africa AB ELECTROLUX –Q42025 *Excluding non-recurring items (NRI) SEKm Q42025Q42024ChangeNet sales16,19916,892-4.1%Organic growth3.6%3.3%0.4ptsDivestments-1.3%-0.6%-0.7ptsCurrency-6.4%-0.9%-5.6ptsEBIT1,02361765.6%Margin6.3%3.7%2.7ptsEBIT excl. NRI1,02381525.5%EBIT margin excl. NRI6.3%4.8%1.5pts EBIT and margin (SEKm)* 4*NRI= Non-recurring item
Page 5
Overall market demand in Europe decreased slightly European core appliances market -total European shipments, quarterly unit comparison y-o-y Source: Electrolux estimates. As from Q1 2020, Russia is excluded. Electrolux estimates are subject to restatement. AB ELECTROLUX –Q42025 Market in Europe -1% in Q4 2025 vs. Q4 2024and -10% vs Q4 2019 5
Page 6
Unfavorable mix in challenging market•Organic sales decline compared to significant increase in Q4 2024•Price reduced to remain competitive in the promotional quarter, hence price impact on net sales slightly negative with a deteriorating price development through the quarterOperating loss due to significantly negative external factors•Significant negative external factors driven primarily by increased costs for U.S. tariffs and currency headwinds from the weakening of the U.S. dollar•Organic contribution unfavorable•In Q4 2024, operating income excluding non-recurring items was positively impacted by SEK 185m related to the divestment of all of Electrolux Group’s potential legacy asbestos exposure in the U.S. North America *Excluding non-recurring items (NRI)AB ELECTROLUX –Q42025 SEKmQ42025Q42024ChangeNet sales10,69012,468-14.3%Organic growth-1.7%17.0%-18.7ptsCurrency-12.5%2.5%-15.0ptsEBIT-31245N/AMargin-2.9%0.4%-3.3ptsEBIT excl. NRI-31245N/AEBIT margin excl. NRI-2.9%0.4%-3.3pts EBIT and margin (SEKm)* 6
Page 7
Overall market demand in U.S. slightly increased U.S. core appliances market -U.S. shipments, quarterly unit comparison y-o-y *Source: Based on the AHAM Factory Shipment Report. Q4 2025 is a comparison of weeks between September 28, 2025 –December 31, 2025vs September 29, 2024 –December 31, 2024. Core appliances include AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges, and Ovens) and Cooktops. AHAM data may be subject to revision. AB ELECTROLUX –Q42025 7
Page 8
Increased consumer demand•Consumer demand for core appliances is estimated to have been strong in the region. In Brazil, the growth rate is estimated to have slowed slightly year-over-year•Competitive pressure continued to increaseOrganic sales growth driven by higher volumes•Volume growth mainly driven by Brazil, strong Black Friday promotional period, and heatwave at the end of Q4•Electrolux Group's market position remained strongEarnings increase mainly driven by cost efficiency•Improved operating margin driven by positive impact from cost efficiency and higher volumes•The positive impact from cost reductions was primarily driven by value engineering and product cost savings and further supported by a one-time high level of supplier rebates in the quarter. Latin America *Excluding non-recurring items (NRI)AB ELECTROLUX –Q42025 SEKmQ42025Q42024ChangeNet sales8,2238,608-4.5%Organic growth4.1%21.8%-17.7ptsCurrency-8.5%-21.9%13.3ptsEBIT94568538.0%Margin11.5%8.0%3.5ptsEBIT excl. NRI94568538.0%EBIT margin excl. NRI11.5%8.0%3.5pts EBIT and margin (SEKm)* 8
Page 9
Executingon costreductiontargetCost reduction12025 y-o-y, SEKbn AB ELECTROLUX –Q42025 1 Cost reductions refer to item "Cost Efficiency" in the EBIT bridge AchievedSEK 4bn costreductionsin 2025 –topend oftargeted SEK 3.5-4.0bn—Acceleration of product cost reductions—Increased material sourcing from best-cost countries—Continue to accelerate benefits from global scale Major cost reduction drivers in Q4: —Increased operational efficiency with good contributions from sourcing and product cost-out 9 202320242025Q1Q2Q3Q4 SEK 4.7bnSEK 4.bnSEK 4.bn
Page 10
Therese Friberg, CFO Q42025
Page 11
Q4 Sales and EBIT Bridge 1 Investments in consumer experience innovation and marketing, comprise of costs for R&D, marketing/brand, connectivity, CRM,aftermarket sales capability, etc. 2 Efficiencies in variable costs (excl. raw material, energy, trade tariffs, and labor cost inflation >2%) and structural costs (excl. consumer experience innovation and marketing). 3 Comprise raw material costs, energy costs, trade tariffs as well as direct and indirect currency impact and labor cost inflation >2%. Currency translation amounted to SEK -107m on EBIT and -8.9%, on net sales. 4 Relating to the divestment of the water heater business in South Africa. SEKmQ42024Volume/price/mixInnovation/ marketing1 Cost efficiency2External factors3Acquisition/ divestment4Q42025 Net Sales37,968704 -3,340-21935,112Growth %2.0% -8.9%-0.6%-7.5%EBIT excl NRI4 1,249-50-1201,208-739-311,517EBIT excl NRI %3.3% 4.3%Accretion/Dilution-0.2 pts-0.3 pts3.1pts-1.5 pts-0.1 pts AB ELECTROLUX –Q42025 11
Page 12
FY 2025 Sales and EBIT Bridge 1 Investments in consumer experience innovation and marketing, comprise of costs for R&D, marketing/brand, connectivity, CRM,aftermarket sales capability, etc. 2 Efficiencies in variable costs (excl. raw material, energy, trade tariffs, and labor cost inflation >2%) and structural costs (excl. consumer experience innovation and marketing). 3 Comprise raw material costs, energy costs, trade tariffs as well as direct and indirect currency impact and labor cost inflation >2%. Currency translation amounted to SEK -251m on EBIT and -6.6%, on net sales. 4 Relating to the divestment of the water heater business in South Africa. SEKmFY 2024Volume/price/mixInnovation/ marketing1 Cost efficiency2External factors3Acquisition/ divestment4FY 2025 Net Sales136,1504,932 -8,723-1,077131,282Growth %3.9% -6.6%-0.8%-3.6%EBIT excl NRI4 1,666775-5213,957-2,275553,657EBIT excl NRI %1.2% 2.8%Accretion/Dilution0.5pts-0.4pts2.8pts-1.4pts0.1 pts AB ELECTROLUX –Q42025 12
Page 13
Operating Cash Flow AB ELECTROLUX –Q42025 *Before acquisitions and divestments SEKmQ42025Q42024EBIT 1,5171,052D/A and other non-cash items9401,673Change in operating assets and liabilities3,4751,559Investments in intangible and tangible assets-997-1,604Changes in other investments244-19Cash flow after investments*5,1792,660 Q4: •Positive operating cash flow, mainly driven by working capital reduction•Significant inventory reductionFull-year:•Operating cash flow after investment at SEK 2bn (2.3) 13 SEKm Q42025Q42024Inventories2,9411,778Trade receivables-749-1,943Accounts payables2072,328Other operating assets, liabilities and provisions1,076-604Change in operating assets and liabilities3,4751,559
Page 14
Solid liquidity and maturity profile •SEK 32.7bn in liquidity incl. RCF as per December 31, 2025•No financial covenants in any loan agreements •Target to maintain a solid investment grade rating-S&P Global Ratings with BBB-outlook, stable outlook Data as per December 31, 2025 AB ELECTROLUX –Q42025 SEKbn•Q4: amortization of long-term borrowings of SEK 1,973m •SEK 2,180m of new long-term debt issued •Electrolux fully utilized loan facility with European Investment Bank in November, borrowing USD ~230m 14 00.511.522.533.544. 5 20152016201720182019202020212022202320242025 Net debt/EBITDA 3.0x
Page 15
AB ELECTROLUX CAPITAL MARKETS UPDATE 2025 15 Strong progress on sustainability targets in 2025 Key sustainability targets 2030 Scope 3 reduction1 42% Scope 1 & 2 reduction1 85% Recycled content2 35%TCIR5 0.30 Status 2025 45% 33% 23% 0.33 Comment •Electrolux made significant progress towards its climate targets in 2025•Emission reductions reflect our commitment to the science-based near-term targets and our ongoing transition to a low-carbon value chain 1)The SBTi targets set an 85% reduction in absolute Scope 1 and 2 (market-based) emissions and a 42% reduction in absolute Scope 3 emissions (covering approximately 73% of total Scope 3 emissions) by 2030, compared to 2021 baseline. Target related to core materials with base year 20242)Recycled content in core materials, steel and plastics3)Plastics refers to the three most purchased plastic categories by the Group - Acrylonitrile Butadiene Styrene (ABS), Polystyrene (PS), and Polypropylene (PP)4)Used in the products manufactured by the Electrolux Group5)Total Case Incident rate •Good progress made with increase in recycled in core materials, steel and plastics3, by weight4•The target drives circular design and increases circular material use rate•Aligns with commitment to provide a safe and healthy working environment AB ELECTROLUX –Q42025
Page 16
AB ELECTROLUX CAPITAL MARKETS UPDATE 2025 Delivering on strategic priorities in 2025 ImproveNorth AmericaProfitable growthStrengthen market positionCost reductions & increased efficiencyAgility & speed•Increased market share, in a challenging price environment•Reduced operating loss, despite increased tariff costs and currency headwinds •Organic growth of 3.9% FY 2025•Important enabler for earnings improvement •Several innovations launched during the year•Strong market position in Latin America, improved in North America and Europe •Cost savings of SEK 4bn•Product-cost out and sourcing major driver for cost reductions •Leadership and organizational changes 16AB ELECTROLUX –Q42025
Page 17
AB ELECTROLUX CAPITAL MARKETS UPDATE 2025 Driving a cultural transformation 17AB ELECTROLUX –Q42025 Strategic drivers Consumer preference Cost leadership Lifetime value creation Cash generation
Page 18
AB ELECTROLUX CAPITAL MARKETS UPDATE 2025 18 Ambition:•Increased focus on and closeness to our customers •Innovative product roadmapAdjustments: •By adjustments to our operating model, as well as by clarifying roles and reducing duplication of responsibilities•The resulting operating model brings a sharper, simpler structure with faster decision-making thanks to clear end-to-end accountabilities Changes to the operating model EA*North AmericaLatin AmericaGlobal Product Line TasteGlobal Product Line Care Global Product Line Wellbeing APAC**EMEA**North AmericaLatin America Products organizationGlobal functionsGlobal functions *Europe, Asia-Pacific, Middle East and Africa**EMEA and APAC share the operational functions 2025 2026
Page 19
Market and Business outlook AB ELECTROLUX –Q42025
Page 20
Market outlook FY 2026per region Neutral/Negative Europe North America BrazilNeutral Neutral AB ELECTROLUX –Q42025Electrolux estimates for industry shipments of core appliances, units year-over-yearNote: Market outlook assumes no significant additional impact from the global geopolitical situation. Presented January 30, 2026. 20
Page 21
Electrolux business outlook 2026 AB ELECTROLUX –Q42025 21 1 Business outlook range: Positive –Neutral –Negative, in terms of impact on earnings2 This outlook is based on the US trade policies situation as of 29thJanuary, 20263 Comprise of costs of R&D, marketing/brand, connectivity, CRM and aftermarket sales capability, etc.4 Efficiencies in variable costs (excl. raw materials, energy, trade tariffs, and labor cost inflation >2%) and structural costs(excl. consumer experience innovation and marketing).5 Comprise raw material costs, energy costs, trade tariffs, direct and indirect currency impact and labor cost inflation >2%.Outlook of "Significantly negative" earnings impact FY 2026from External factors is based on US trade policies situation as of 29th January, 2026. Note: Business outlook in the above table excludes non-recurring items. Market and business outlook assume no significant additional impact from the global geopolitical situation Business Outlook1y-o-yFY 2026CommentsVolume/price/mix2 Positive, driven by growth in focus categoriesFocus growth in selected product categories, including lifetime value creation, and consequently a positive mix contributionInvestments in consumer experience innovation and marketing3 Negative, increased investmentsIncreased investments in innovation and marketing to support brand-building and create long-term value Cost efficiency4 Positiveappr. SEK 3.5-4.0bnProduct cost-out and procurement savings main drivers for cost reduction External factors5 Significantly negativeHeadwinds from tariffs in North America. Combined impact from currency and raw material costs estimated to be essentially neutralCapital expenditureAppr. SEK 4.0bn
Page 22
Factors affecting forward-looking statements AB ELECTROLUX –Q42025 22 This presentation contains “forward-looking” statements that reflect the company’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations prove to have been correct as they are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but are not limited to, changes in consumer demand, changes in economic, market and competitive conditions, supply and production constraints, currency fluctuations, developments in product liability litigation, changes in the regulatory environment and other government actions. Forward-looking statements speak only as of the date they were made, and, other than as required by applicable law, the company undertakes no obligation to update any of them in light of new information or future events.
Page 23
Q&A AB ELECTROLUX –Q42025
Page 24
AB ELECTROLUX –Q42025 24 Appendix
Page 25
Earnings contribution from price/mixBusiness AreaQ4, y-o-yComments on Q4 y-o-y Europe, Asia-Pacific, Middle East and AfricaNegativeIncreased promotions and negative price, partly offset by positive mix North AmericaNegativeIncreased promotions and negative price Latin AmericaNegativeIncreased promotions and negative price Group EBIT % accretion-0.7ptsIncreased promotions and negative price, partly offset by positive mix AB ELECTROLUX –Q42025 25