Electrolux Professional — Interim / Quarterly Report 2021

Feb 3, 2021

Q4

Year-end report

First page

Fourth quarter, October–December 2020

• The COVID-19 pandemic continued to impact the hospitality business. Net sales amounted to SEK 1,935m (2,334). Sales decreased by 17.1%. Organically sales decreased by 13.2%.

• EBITA amounted to SEK 142m (181), corresponding to a margin of 7.3% (7.8).

Message from the CEO

Financial overview

• Operating income amounted to SEK 119m (165), corresponding to a margin of 6.1% (7.1).

• Operating cash flow after investments amounted to SEK 460m (355).

• Income for the period amounted to SEK 70m (168), and earnings per share was SEK 0.24 (0.59).

Financial reports

Definitions

• Due to the ongoing pandemic, the Board proposes to pay no dividend for 2020.

Shareholders information

Key ratios

Key ratios
SEKm	Fourthquarter				Fullyear
	Oct–Dec 2020	Oct–Dec 2019	Change, %	Jan–Dec 2020	Jan–Dec 2019	Change, %
Net sales	1,935	2,334	–17.1	7,263	9,281	–21.7
EBITA	142	181	–21.5	456	1,058	–56.9
EBITA margin,%	7.3	7.8		6.3	11.4
Operatingincome	119	165	–28.0	387	992	–61.0
Operatingmargin,%	6.1	7.1		5.3	10.7
Income after fnancial items	113	157	–28.1	363	978	–62.9
Income for theperiod	70	168	–58.4	278	663	–58.1
Earningsper share,SEK1	0.24	0.59		0.97	2.31
Operatingcash fow after investments	460	355		570	1,138

1) Basic number of outstanding shares.

Electrolux Professional – Year-end report, Q4 2020

P. 1

Message from the CEO:

Strong cash flow in a turbulent time

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After the sales recovery in the third quarter, the second wave of the corona virus pandemic has halted the recovery. However, the negative impact is more contained now compared to the first wave, as customers have learned to adapt to the new situation.

Sales in the quarter declined organically by 13.2%. Sales of Laundry was almost flat compared to the same quarter last year which shows both the resilience of the laundry market and our strong position. Sales of Food & Beverage declined compared to the same quarter last year, to a large extent driven by the weak development in Southern Europe.

Alberto Zanata, President and CEO

Thanks to short-term savings, improvements from the structural cost saving programs and the stable development in Laundry, we have been able to deliver a margin in line with the same quarter last year. EBITA for the quarter was SEK 142m (181) with a corresponding margin of 7.3% (7.8). Operating cash flow after investments improved and amounted to SEK 460m (355) in the quarter.

deliver a margin in line with the same Short term the quarter last year. EBITA for the quarter pandemic creates was SEK 142m (181) with a corresponding margin of 7.3% (7.8). Operating cash “ challenges, but flow after investments improved and when larger parts amounted to SEK 460m (355) in the quarter. of the population world-wide are Sales of Food & Beverage declined vaccinated against organically by 20.8% in the quarter, reporting an EBITA-margin of 1.0%. the coronavirus, I Laundry continued on a comparable am confident that sales level with an organic decline of 1.9%, but an improved EBITA-margin of the business in 16.9%. restaurants, hotels The restructuring plan announced in and bars will come September is progressing in line with back. plan and is expected to generate annual savings of SEK 110m from the second quarter of 2021 and additional SEK 20m ” from the second quarter of 2022.

”

Product innovations play a key role in our business, but further investments

have also been made to enhance efficiency. Hence, we have started a multi-year project to roll out a new common IT infrastructure to all factories in the Group. In addition, the consolidation of our beverage and laundry operations in Thailand into one factory is nearing completion.

We recently launched our sustainability commitments and targets focusing on climate, health & safety, as well as diversity. The overarching target is to become climate neutral within our industrial operations by 2030. We are fully committed to take further action to mitigate climate change and support the ambitions of the Paris Agreement.

After 2019 with its intense preparations for the separation from AB Electrolux, 2020 was positioned for strengthening and growing the business after the listing efforts being completed in March. However, the coronavirus pandemic forced us to radically change our focus since the hospitality industry has been one of the most affected industries.

We are proud to have demonstrated resilience during the pandemic turbulence in 2020. Thanks to the flexibility of our employees and the cost saving measures adopted, we have laid the foundation for the future. Short term the pandemic creates challenges, but when larger parts of the population worldwide are vaccinated against the coronavirus, I am confident that the business in restaurants, hotels and bars will come back – and when this happens, we will have the products, the service and dedicated people in place to support our customers.

Alberto Zanata, President and CEO

First page

Message from the CEO

Financial overview

Financial reports Definitions

Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 2

Financial overview

Fourth quarter development

Net sales

Net sales for the fourth quarter amounted to SEK 1,935m (2,334), a decline by 17.1% compared to the same period last year. Organically, sales decreased by 13.2% and currency contributed negatively by 3.5%.

The sales decline was driven by lower sales volumes due to the impact from the pandemic. Sales of Food & Beverage declined organically by 20.8%. Laundry was almost flat with an organic decline of 1.9%. Organically, sales in Europe and Americas declined approximately 15% while sales in AsiaPacific, Middle East and Africa declined approximately 10%.

Changes in net sales, %	Oct–Dec 2020	Oct–Dec 2019
Organicgrowth	–13.2	–6.2
Acquisitions*	–0.4	0.4
Changes in exchange rates	-3.5	2.8
Total	–17.1	-2.9

• In the fourth quarter of 2019, four months of the acquisition of Unic were reported in order to align with Electrolux Professional reporting.

Share of sales by segment, October–December 2020

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Laundry 46% 54% Food & Beverage
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Operating income and EBITA

Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 142m (181) corresponding to a margin of 7.3% (7.8). Operating income amounted to SEK 119m (165), corresponding to a margin of 6.1% (7.1). The decline in operating income is mainly due to lower sales volumes.

Short-term cost saving activities together with already implemented structural cost savings to mitigate the sales decline contributed positively. These actions have reduced cost in the quarter by approximately SEK 90m compared to the fourth quarter of 2019.

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Sales and EBITA margin
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SEKm %
2,500 20
2,000 15
1,500 10
1,000 5
500 0
0 -5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 ¹ 2020 ¹
Sales EBITA margin
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SEK +90m, the third quarter 2019 includes items affecting comparability of SEK –122m and the third quarter 2020 includes items affecting comparability of SEK –77m.

Financial net

Net financial items amounted to SEK –5m (–7).

First page

Message from the CEO Financial overview Financial reports Definitions Shareholders information

Income for the period

Share of sales by region, October–December 2020

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Asia-Pacific,
Middle East, Africa 17%
Americas 15% 68% Europe
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Income for the period amounted to SEK 70m (168), corresponding to SEK 0.24 (0.59) in earnings per share. Income tax for the period amounted to SEK –43m (11). The tax cost in the fourth quarter of 2019 was positively affected by a step-up in the asset base as a consequence of fair market value sale of certain assets and liabilities between AB Electrolux and Electrolux Professional.

Group common cost

Group common cost was SEK –19m (–21).

Electrolux Professional – Year-end report, Q4 2020

P. 3

Message from the CEO Financial overview Financial reports Definitions

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Segment Food & Beverage

In the fourth quarter, sales for Food & Beverage was SEK 1,047m (1,405), a decline by 25.5% compared to the same period last year. Organically sales decreased by 20.8% and currency had a negative effect of 4.1%. Sales continued to be heavily impacted by the pandemic and Southern Europe and South America accounted for more than half of the total drop in sales. Sales decreased by approximately 25% in Europe and Americas. In the US sales decreased by approximately 5%. In Asia-Pacific, Middle East and Africa, sales decreased by approximately 5%. South East Asia continued to be negatively affected while sales in China was unchanged.

Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 11m (82), corresponding to a margin of 1.0% (5.8). EBITA declined due to lower volumes. Operating income amounted to SEK –8m (72), corresponding to a margin of –0.8% (5.1).

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Sales and EBITA margin
SEKm %
2,000 15
10
1,500
5
1,000
0
500
–5
0 –10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 ¹ 2020 ¹
Sales EBITA margin
1) The second quarter 2019 includes items
affecting comparability of SEK +31m,
the third quarter 2019 includes items
affecting comparability of SEK –98m
and the third quarter 2020 includes items
affecting comparability of SEK –55m.
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First page

Shareholders information

SEKm	Fourthquarter	Fourthquarter	Fourthquarter		Fullyear
	Oct–Dec 2020	Oct–Dec 2019	Change, %	Jan–Dec 2020	Jan–Dec 2019	Change, %
Net sales	1,047	1,405	–25.4	4,198	5,895	–28.8
Organicgrowth,%	–20.8	–10.1		–28.1	–1.1
Acquisitions,%	–0.6	3.5		–0.5	6.4
Changes in exchange rates,%	–4.1	3.1		–1.2	3.9
EBITA	11	82	–86.8	87	568	–84.6
EBITA margin,%	1.0	5.8		2.1	9.6
Operatingincome	–8	72	–111.4	35	522	–93.3
Operatingmargin,%	–0.8	5.1		0.8	9

• In the fourth quarter of 2019, four months of the acquisition of Unic were reported in order to align with Electrolux Professional reporting.

Electrolux Professional – Year-end report, Q4 2020

P. 4

Message from the CEO Financial overview

Financial reports Definitions

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Segment Laundry

In the fourth quarter, sales for Laundry was SEK 888m (930), a decline by 4% compared to the same period last year. Organically sales decreased by 1.9% and currency had a negative effect of 2.6%.

Sales in Europe grew approximately 2% and was flat in Americas, but declined almost 15% in Asia-Pacific, Middle East and Africa. In the US, sales grew approximately 10%.

Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 150m (120), corresponding to a margin of 16.9% (12.9). Cost efficiency and a positive price development contributed to the improved EBITA. Operating income amounted to SEK 146m (114), corresponding to a margin of 16.4% (12.3).

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Sales and EBITA margin
SEKm %
1,000 25
800 20
600 15
400 10
200 5
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 ¹ 2020 ¹
Sales EBITA margin
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1) The second quarter 2019 includes items affecting comparability of SEK +59m, the third quarter 2019 includes items affecting comparability of SEK –24m and the third quarter 2020 includes items affecting comparability of SEK –22m.

First page

Shareholders information

SEKm	Fourthquarter	Fourthquarter	Fourthquarter		Fullyear
	Oct–Dec 2020	Oct–Dec 2019	Change, %	Jan–Dec 2020	Jan–Dec 2019	Change, %
Net sales	888	930	–4.5	3,065	3,386	–9.5
Organicgrowth,%	–1.9	0.2		–8.7	1.0
Acquisitions,%	–	–4.6		–	–
Changes in exchange rates,%	–2.6	2.4		–0.8	2.6
EBITA	150	120	25.0	467	507	–7.9
EBITA margin,%	16.9	12.9		15.2	15.0
Operatingincome	146	114	27.8	452	488	–7.5
Operatingmargin,%	16.4	12.3		14.7	14.4

Electrolux Professional – Year-end report, Q4 2020

P. 5

Net sales, EBITA and operating income by segment

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Food & Beverage
Net sales 1,047 1,405 4,198 5,895
EBITA 11 82 87 568
Amortization –19 –10 –53 –45
Operating income –8 72 35 522
Laundry
Net sales 888 930 3,065 3,386
EBITA 150 120 467 507
Amortization –4 –6 –16 –20
Operating income 146 114 452 488
Group common costs
EBITA –19 –21 –99 –18
Amortization –0 –0 –1 0
Operating income –19 –21 –100 –18
Total Group
Net sales 1,935 2,334 7,263 9,281
EBITA 142 181 456 1,058
Amortization –23 –16 –69 –66
Operating income 119 165 387 992
Financial items, net –5 –7 –24 –15
Income after financial items 113 157 363 978
Taxes –43 11 –85 –314
Income for the period 70 168 278 663
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First page

Message from the CEO Financial overview Financial reports Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 6

Shareholders information

Cash flow

Operating cash flow after investments amounted to SEK 460m (355) in the quarter. The improved cash flow is mainly due to improved management of working capital and lower investments.

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SEKm
500
400
300
200
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020
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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Operating income 119 165 387 992
Depreciation 57 78 228 222
Amortization 23 16 69 66
Other non-cash items 5 –38 91 7
Operating income adjusted for non-cash items 204 221 775 1,287
Change in inventories 148 87 113 139
Change in trade receivables 108 65 362 43
Change in accounts payable 173 118 –140 –23
Change in other operating assets, liabilities
and provisions –116 13 –293 –47
Operating cash flow 517 503 816 1,399
Investments in tangible and intangible assets –68 –132 –273 –257
Changes in other investments 11 –16 26 –4
Operating cash flow after investments 460 355 570 1,138
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Operating working capital of annualized net sales, %

Operating working capital

Operating working capital as percent of annualized net sales improved somewhat in the fourth quarter of 2020 compared to the third quarter.

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%
20
18
16
14
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020
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Average working capital as a percent of annualized net sales increased to 19.9% compared to 17.7% at the end of 2019. The increase is due to accounts receivables and inventory decreasing at a lower rate than the decrease of net sales. Accounts payable had a positive contribution.

First page

Message from the CEO Financial overview Financial reports Definitions

Electrolux Professional – Year-end report, Q4 2020

P. 7

Message from the CEO Financial overview Financial reports Definitions

Financial position

Net debt

As of December 31, 2020, Electrolux Professional had a financial net debt position (excluding lease liabilities and post-employment provisions) of SEK 202m compared to SEK 588m as of December 31, 2019. Lease liabilities decreased somewhat to SEK 216m and net provisions for post-employments benefits decreased to SEK 131m.

In total, net debt amounted to SEK 549m as of December 31, 2020, compared to SEK 1,025m per December 31, 2019.

Long-term borrowings amounted to SEK 601m and total short-term borrowings amounted to SEK 412m. Total borrowings amounted to SEK 1,012m compared to SEK 1,244m on December 31, 2019. During the first quarter of 2020, loans to Electrolux Group was repaid and new external credit facilities were put in place.

Liquid funds as of December 31, 2020, amounted to SEK 810m compared to SEK 656m as of December 31, 2019.

Credit facilities and loans

On February 21, 2020, Electrolux Professional AB entered into a EUR 250m multicurrency revolving credit facilities agreement with its core bankinggroup with Skandinaviska Enskilda Banken AB (publ) as arranger and on March 6, 2020 a bilateral term loan was entered into with AB Svensk Exportkredit. The revolving credit facilities has a tenor of five years (with extension options) and the term loan has a tenure of seven years. As of December 31, 2020, EUR 40m of the revolving credit facility was utilized.

Net debt

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Dec 31, Dec 31,
SEKm 2020 2019
Short-term loans 403 4
Short-term loans, Electrolux Group – 990
Short-term borrowings 403 994
Financial derivative liabilities 6 4
Accrued interest expenses and prepaid interest income 2 8
Other financial liabilities, Electrolux Group – 234
Total short-term borrowings 412 1,241
Long-term loans 601 3
Long-term borrowings 601 3
Total borrowings¹ 1,012 1,244
Cash and cash equivalents 797 651
Financial derivative assets 12 4
Prepaid interest expenses and accrued interest income 1 2
Liquid funds 810 656
Financial net debt 202 588
Lease liabilities 216 243
Net provisions for post-employment benefits 131 195
Net debt 549 1,025
Net debt/EBITDA ratio 0.8 0.8
EBITDA 684 1,280
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First page

Shareholders information

• 1) Whereof interest-bearing liabilities amounting to SEK 1,004m as of December 31, 2020 and SEK 997m as of December 31, 2019.

Electrolux Professional – Year-end report, Q4 2020

P. 8

Other disclosures

Separation and stock listing

of Electrolux Professional

At an Extraordinary General Meeting in AB Electrolux held on February 21, 2020, it was resolved to distribute all shares in the wholly owned subsidiary Electrolux Professional AB to the shareholders of Electrolux. Consequently, Electrolux Professional was on March 23, 2020 listed on Nasdaq Stockholm and is since then a stand-alone company.

Conversion of shares

According to Electrolux Professional´s articles of association, owners of A-shares have the right to have such shares converted to B-shares. Conversion reduces the total number of votes in the Company. 68,998 shares were converted in the fourth quarter. The total number of registered shares in the company on December 31, 2020 amounted to 287,397,450 of which 8,120,527 were A-shares and 279,276,923 were B-shares. The total number of votes amounted to 36,048,219.3.

Related party transactions

Buying and selling services and products between Electrolux Professional and AB Electrolux and its subsidiaries were regarded as related party transactions up until March 23, 2020, see table on page 16. Transactions with related parties were on market-based terms.

Employees

The number of employees at the end of the quarter was 3,515 (3,624).

Events after the balance sheet date

After the end of the reporting period, no significant events have taken place that could affect the company’s operations.

Annual General Meeting 2021

Electrolux Professional’s Annual General Meeting will be held on April 28, 2021.

Proposed dividend

Due to the ongoing pandemic, the Board proposes to pay no dividend for 2020.

Parent Company

The Parent Company’s activities include head office as well as production and sales in and from Sweden.

Net sales for the Parent Company, Electrolux Professional AB, for the period from 1 January to 31 December 2020 amounted to SEK 2,266m (2,361) of which SEK 886m (926) referred to sales to Group Companies and SEK 1,380m (1,435) to external customers.

Income before tax for the year was –1,822m (–17). Income amounted to SEK –1,886m (–1). A revision of the, at the time of the separation from AB Electrolux, carrying values of some of the acquisitions, in combination with the COVID-19 situation adding

Risk and uncertainty factors

Electrolux Professional is an international group with a wide geographic spread and is thus exposed to a number of business and financial risks. Risk management in Electrolux Professional aims to identify, control and reduce risks. The risk factors are described in the Prospectus ahead of the listing of the shares in Electrolux Professional and consist of operational risk, industry risks, legal risks and

pressure on profitability, has led to that Electrolux Professional AB in the fourth quarter, 2020 impaired some of its investments in subsidiaries. The total impairment amounts to SEK 2,039m.

Capital expenditure in tangible and intangible assets was SEK 12m (18). Liquid funds at the end of the period amounted to SEK 425m, as against SEK 204m at the beginning of the year.

Undistributed earnings in the Parent Company at the end of the period amounted to SEK 5,795m, against SEK 7,681m at the beginning of the year.

The income statement and balance sheet for the Parent Company are presented on page 19.

financial risks. Compared to the Prospectus, which was issued on March 11, 2020, and the prospectus supplement that was published on March 20, 2020 no new material risks have been identified. Electrolux Professional expects that its financial performance during the beginning of 2021 will continue to be affected by the pandemic related to the coronavirus.

First page

Message from the CEO

Financial overview

Financial reports

Definitions

Shareholders information

Stockholm, February 3, 2021

Electrolux Professional AB (publ)

Alberto Zanata President and CEO

This report has not been audited or reviewed by external auditors.

Electrolux Professional – Year-end report, Q4 2020

P. 9

Shareholders information

One Connected solutions

Connected solutions and the OnE dashboard provides customers with full control of their complete kitchen and laundry operations from one single digital platform.

• Helps customers get top performances from their Electrolux Professional solutions.

• Maximizes profit and accelerates customer’s return on investment

• Control operations from any device

• Only OnE Connected platform for all connected appliances

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SkyLine Cook and Chill solution Pioneering Cook and Chill solution that anticipates chef’s needs with SkyDuo, the seamless, self-intuitive connection between SkyLine appliance.

• Reduces downtime and maintains top operation performances

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Real-time solutions for Washers & Dryers Monitor the equipment’s status and performance from anywhere and take actions to improve the business.

First page

Message from the CEO Financial overview Financial reports Definitions

Electrolux Professional – Year-end report, Q4 2020

P. 10

Message from the CEO Financial overview

Financial reports Definitions

Shareholders information

Financial reports

Consolidated statement of total comprehensive income

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Net sales 1,935 2,334 7,263 9,281
Cost of goods sold –1,334 –1,563 –4,896 –6,040
Gross operating income 602 771 2,367 3,241
Selling expenses –326 –392 –1,355 –1,699
Administrative expenses –161 –242 –631 –582
Other operating income/expenses 4 28 5 32
Operating income 119 165 387 992
Financial items, net –5 –7 –24 –15
Income after financial items 113 157 363 978
Taxes –43 11 –85 –314
Income for the period 70 168 278 663
Items that will not be reclassified to income for the period:
Remeasurement of provisions for post-employment benefits 13 58 83 –33
Income tax relating to items that will not be reclassified 1 –13 –8 6
14 44 75 –27
Items that may be reclassified subsequently to
income for the period:
Exchange-rate differences on translation of foreign operations –201 –76 –263 101
Other comprehensive income, net of tax –187 –32 –188 74
Total comprehensive income for the period –117 137 89 737
Income for the period attributable to:
Equity holders of the Parent Company 70 168 278 663
Total 70 168 278 663
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company –117 137 89 737
Total –117 137 89 737
Earnings per share, SEK
Basic, SEK 0.24 0.59 0.97 2.31
Diluted, SEK 0.24 0.59 0.97 2.31
Average number of shares
Basic, million 287.4 287.4 287.4 287.4
Diluted, million 287.4 287.4 287.4 287.4
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First page

Electrolux Professional – Year-end report, Q4 2020

P. 11

Consolidated balance sheet

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Dec 31, Dec 31,
SEKm 2020 2019
Assets
Non-current assets
Property, plant and equipment, owned 1,254 1,214
Property, plant and equipment, right-of-use 211 238
Goodwill 1,690 1,821
Other intangible assets 305 388
Deferred tax assets 361 350
Pension plan assets 21 13
Other non-current assets 27 34
Total non-current assets 3,869 4,057
Current assets
Inventories 1,086 1,265
Trade receivables 1,265 1,687
Tax assets 53 102
Other current assets 244 273
Cash and cash equivalents 797 651
Total current assets 3,444 3,978
Total assets 7,314 8,035
Equity and liabilities
Equity attributable to equity holders of the Parent Company
Share capital 29 25
Other paid-in capital 5 5
Other reserves 2 266
Retained earnings 2,764 2,415
Equity attributable to equity holders of the Parent Company 2,800 2,711
Total equity 2,800 2,711
Non-current liabilities
Long-term borrowings 601 3
Long-term lease liabilities 151 172
Deferred tax liabilities 135 144
Provisions for post-employment benefits 152 208
Other provisions 243 258
Total non-current liabilities 1,282 785
Current liabilities
Trade payables 1,289 1,606
Tax liabilities 324 309
Other liabilities 988 1,361
Short-term borrowings 403 994
Short-term lease liabilities 65 72
Other provisions 162 198
Total current liabilities 3,232 4,539
Total equity and liabilities 7,314 8,035
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First page

Message from the CEO Financial overview Financial reports Definitions

Shareholders information

*Year 2019 includes related party balances, see page 16.

Electrolux Professional – Year-end report, Q4 2020

P. 12

Changes in condensed consolidated equity

	Full	year
SEKm	Jan–Dec 2020	Jan–Dec 2019
Opening balance	2,711	3,527
Total comprehensive income for theperiod	89	737
Dividend to equityholders of the Parent Company Other transactions with equityholders of the Parent Company1
	0	–428
	–0	–1,125
Total transactions with equity holders	–0	–1,553
Closing balance	2,800	2,711

1) Transactions related to transfer of assets and liabilities as part of the formation of the Electrolux Professional Group between Electrolux Group and Electrolux Professional Group have been classified as transactions with shareholders. During 2017, 2018 and 2019, asset and liabilities were transferred to Electrolux Professional without any consideration paid. During the latter half of 2019, a major legal restructuring was executed to form the legal Electrolux Professional group and a number of transactions took place where Electrolux Professional paid consideration for the asset and liabilities legally transferred, which, Electrolux Professional already had recognized in its combined financial statements.

First page

Message from the CEO Financial overview

Financial reports Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 13

Message from the CEO Financial overview Financial reports Definitions

Shareholders information

Consolidated cash flow statement

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Operations
Operating income 119 165 387 992
Depreciation and amortization 80 94 297 287
Other non-cash items 5 –38 91 7
Financial items paid, net [1] –6 0 –22 –6
Taxes paid –16 –76 –66 –275
Cash flow from operations, excluding change in operating
assets and liabilities 181 145 687 1,006
Change in operating assets and liabilities
Change in inventories 148 87 113 139
Change in trade receivables 108 65 362 43
Change in accounts payable 173 118 –140 –23
Change in other operating assets, liabilities
and provisions –116 13 –293 –47
Cash flow from change in operating assets and liabilities 313 283 41 112
Cash flow from operations 495 428 729 1,118
Investments
Acquisition of operations – – – –441
Capital expenditure in property, plant and equipment –65 –125 –267 –243
Capital expenditure in product development 0 –2 –1 –9
Capital expenditure in other intangibles –3 –4 –5 –5
Other 11 –16 26 –4
Cash flow from investments –57 –148 –246 –702
Cash flow from operations and investments 438 280 483 417
Financing
Change in short-term borrowings, net –243 14 413 –32
New long-term borrowings – – 600 –
Amortization of long-term borrowings –0 –32 –1 –36
Payment of lease liabilities –19 –36 –82 –83
Dividend to Electrolux Group – –64 – –428
Shareholders contribution – 5,702 – 5,702
Change in financial liabilities, Electrolux Group – –4,977 –1,224 1,672
Cash flow from financing –262 608 –294 6,795
Total cash flow 176 888 189 7,211
Cash and cash equivalents at beginning of period 640 418 651 230
Exchange-rate differences referring to cash and cash equivalents –19 –5 –42 14
Other cash flow from transactions with shareholders,
Electrolux Group [2] – –651 – –6,804
Cash and cash equivalents at end of period 797 651 797 651
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• 1) For the period January 1 to December 31: interest and similar items received SEK 5m (12), interest and similar items paid SEK -13m (-13) and other financial items received/paid SEK -7m (1). Interest paid for lease liabilities SEK -7m (-6)

2) “Other cash flow from transactions with shareholders, Electrolux group” consists of effects on cash from cash flows presented in Electrolux Professional’s combined financial statements belonging to legal entities remaining in the Electrolux Group following the separation. In 2019, it also includes cash paid by Electrolux Professional to the Electrolux Group, to acquire its group companies.

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Electrolux Professional – Year-end report, Q4 2020

P. 14

Alternative performance measures key figures

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm, if not otherwise stated 2020 2019 2020 2019
Net sales 1,935 2,334 7,263 9,281
Organic growth, % –13.2 –6.2 –21.0 –0.3
EBITA 142 181 456 1,058
EBITA excl. items affecting comparability¹ 142 181 533 1,090
EBITA margin, % 7.3 7.8 6.3 11.4
EBITA margin excl. items affecting comparability, %¹ 7.3 7.8 7.3 11.7
Operating income 119 165 387 992
Operating margin, % 6.1 7.1 5.3 10.7
Operating margin excl. items affecting comparability, %¹ 6.1 7.1 6.4 11.0
Income after financial items 113 157 363 978
Income for the period 70 168 278 663
Capital expenditure –68 –132 –273 –257
Operating cash flow after investments 460 355 570 1,138
Earnings per share, SEK² 0.24 0.59 0.97 2.31
Net debt n/a n/a 549 1,025
EBITDA [3] n/a n/a 684 1,280
Net debt/EBITDA ratio n/a n/a 0.8 0.8
Operating working capital % of net sales [4] n/a n/a 19.9 17.7
Average number of shares, million 287.4 287.4 287.4 287.4
Number of employees, end of period 3,515 3,624 3,515 3,624
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First page

1) For information on items affecting comparability, see page 18.

2) Basic number of outstanding shares.

3) Rolling four quarters

4) Last twelve months currency adjusted For definitions, see page 24–25.

Message from the CEO Financial overview

Financial reports

Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 15

Related party transactions, Electrolux Group

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Income for the period
Purchase of goods – –13 –15 –50
Interest income – 3 – 9
Interest expense – –6 –1 –17
Assets
Other current assets
Other short-term operational receivables – 1 – 1
Liabilities
Trade payables – 121 – 121
Other liabilities
Other financial liabilities – 234 – 234
Other short-term operating liabilities – 4 – 4
Accrued expenses and prepaid income – 23 – 23
Derivatives – 1 – 1
Short-term borrowings
Short-term loans – 990 – 990
Equity
Dividend to shareholders – –64 – –428
Shareholders contributions received – 7,697 – 7,697
Other transactions with shareholders – –8,822 – –8,822
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Message from the CEO Financial overview

Financial reports Definitions

Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 16

Financial reports Definitions

Quarterly data

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Full year Q4 Q3 Q2 Q1 Full year Q4 Q3 Q2 Q1
SEKm 2020 2020 2020 2020 2020 2019 2019 2019 2019 2019
Food & Beverage
Net sales 4,198 1,047 1,070 838 1,243 5,895 1,405 1,415 1,619 1,456
EBITA 87 11 42 –64 99 568 82 58 245 183
EBITA margin, % 2.1 1.0 4.0 –7.7 7.9 9.6 5.8 4.1 15.1 12.5
Amortization –53 –19 –11 –11 –12 –45 –10 –13 –12 –10
Operating income 35 –8 31 –75 87 522 72 45 233 173
Operating margin, % 0.8 –0.8 2.9 –9.0 7.0 8.9 5.1 3.1 14.4 11.9
Laundry
Net sales 3,065 888 678 651 848 3,386 930 774 836 846
EBITA 467 150 79 88 150 507 120 76 173 138
EBITA margin, % 15.2 16.9 11.6 13.5 17.7 15.0 12.9 9.8 20.7 16.4
Amortization –16 –4 –4 –4 –4 –20 –6 –4 –5 –4
Operating income 452 146 75 84 146 488 114 71 169 134
Operating margin, % 14.7 16.4 11.1 13.0 17.3 14.4 12.3 9.2 20.2 15.8
Group common costs –100 –19 –26 –27 –28 –18 –21 10 –1 –5
Total Group
Net sales 7,263 1,935 1,748 1,489 2,091 9,281 2,334 2,190 2,455 2,302
EBITA 456 142 96 –4 221 1.058 181 144 418 316
EBITA margin, % 6.3 7.3 5.5 –0.2 10.6 11.4 7.8 6.6 17.0 13.7
Amortization –69 –23 –15 –15 –16 –66 –16 –18 –17 –15
Operating income 387 119 81 –18 205 992 165 126 401 301
Operating margin, % 5.3 6.1 4.6 –1.2 9.8 10.7 7.1 5.7 16.3 13.1
Financial items, net –24 –5 –8 –8 –2 –15 –7 –4 –1 –3
Income after financial
items 363 113 73 –26 203 978 157 122 400 298
Income for the period 278 70 77 –28 159 663 168 128 126 241
Earnings per share, SEK¹ 0.97 0.24 0.27 –0.10 0.55 2.31 0.59 0.45 0.44 0.84
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Message from the CEO Financial overview

1) Basic number of outstanding shares.

Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 17

Items affecting comparability

SEKm	Full year 2020	Q4, 2020	Q3, 20201	Q2, 2020	Q1, 2020	Full year 2019	Q4, 2019	Q3, 20192	Q2, 20193	Q1, 2019
Food & Beverage Laundry	–55	–	–55	–	–	–67	–	–98	31	–
	–22	–	–22	–	–	35	–	–24	59	–
Total Group	–77	–	–77	–	–	–32	–	–122	90	–

1) The SEK –77m relates to restructuring charges for efficiency measures and are included in the line item cost of goods sold, marketing and admininstration.

2) The SEK –122m relates to restructuring charges for efficiency measures and are included in the line item cost of goods sold, marketing and admininstration.

3) The non-recurring item of SEK 90m relates to a pension plan settlement in Sweden and is included in the line item administration.

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Full year Q4, Q3, Q2, Q1, Full year Q4, Q3, Q2, Q1,
SEKm 2020 2020 2020 2020 2020 2019 2019 2019 2019 2019
Total Group
Operating income
excl. items affecting
comparability 464 119 158 –18 205 1,024 165 248 311 301
Operating margin
excl.items affecting
comparability, % 6.4 6.1 9.0 –1.2 9.8 11,0 7.1 11.3 12.7 13.1
EBITA excl. items
affecting comparability 533 142 173 –4 221 1,090 181 266 328 316
EBITA margin
excl. items affecting
comparability, % 7.3 7.3 9.9 –0.2 10.6 11.7 7.8 12.1 13.3 13.7
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Shares

				Shares held by
Number of shares	A-shares	B-shares	Shares, total	other shareholders
Number of shares as of January1,2020	8,192,539	279,204,911	287,397,450	287,397,450
Conversion of shares	–72,012	72,012
Number of shares as of December 31,2020	8,120,527	279,276,923	287,397,450	287,397,450

Exchange rates

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Message from the CEO Financial overview

Financial reports Definitions

Shareholders information

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Dec 31, 2020 Dec 31, 2019
End of End of
Average period Average period
CNY 1.33 1.25 1.37 1.34
CZK 0.3969 0.3831 0.4113 0.4100
DKK 1.41 1.35 1.41 1.40
EUR 10.48 10.06 10.56 10.44
GBP 11.83 11.14 12.03 12.25
JPY 0.0861 0.0795 0.0864 0.0854
NOK 0.98 0.95 1.07 1.06
RUB 0.1275 0.1095 0.1455 0.1507
THB 0.2938 0.2735 0.3039 0.3119
TRY 1.33 1.11 1.67 1.57
USD 9.18 8.19 9.43 9.33
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Electrolux Professional – Year-end report, Q4 2020

P. 18

Condensed Parent company income statement

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Fourth quarter Full year
Oct–Dec Oct–Dec Jan–Dec Jan–Dec
SEKm 2020 2019 2020 2019
Net sales 653 692 2,266 2,361
Cost of goods sold –448 –513 –1,566 –1,757
Gross operating income 205 179 700 604
Selling expenses –77 –100 –330 –323
Administrative expenses –29 –59 –135 –94
Other operating expenses –9 –9 –6 –17
Operating income 90 11 229 170
Financial income/expense, net -1 69 -7 65
Impairment of shares in subsidiaries –2,039 0 –2,039 0
Financial items, net –2,040 69 –2,046 65
Income after financial items –1,950 80 –1,817 235
Appropriations –5 –252 –5 –252
Income before taxes –1,955 –172 –1,822 –17
Taxes –20 6 –64 16
Income for the period –1,975 –166 –1,886 –1
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Condensed Parent company balance sheet

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Dec 31, Dec 31,
SEKm 2020 2019
Assets
Non–current assets 6,452 8,527
Current assets 1,886 1,543
Total assets 8,338 10,070
Equity and liabilities
Restricted equity 47 46
Non–restricted equity 5,795 7,681
Total equity 5,842 7,727
Untaxed reserves 114 109
Provisions 98 96
Non-current liabilties 600 –
Current liabilities 1,684 2,138
Total equity and liabilities 8,338 10,070
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Message from the CEO Financial overview

Financial reports Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 19

Notes

Note 1 Accounting principles

Electrolux Professional applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This report has been prepared in accordance with IAS 34, Interim Financial Reporting.

Electrolux Professional interim reports contain a condensed set of financial statements. For the Group this chiefly means that the disclosures are limited compared to the combined financial statements presented in the prospectus. Enumerated amounts presented in tables and statements may not always agree with the calculated sum of the related line items due to rounding differences. The aim is for each line item to agree with its source and therefore there may be rounding differences affecting the total when adding up the presented line items.

The accounting principles adopted in the preparation of this interim report apply to all periods and comply with the accounting principles presented in the prospectus “Admission to trading of Shares in Electrolux Professional AB on Nasdaq Stockholm” in Note 1.

Government grants and government assistance are recognized in the financial statements when there is reasonable assurance that the entity will

comply with the conditions attached to them and the grants will be received. Grants which are dedicated to a specific and clearly identified expense item, is reported as a deduction of the specific expense. Grants of a more general character are reported as other operating income. Grants related to assets are reported as prepaid income in the balance sheet. The grant is amortized over the useful life of the asset for which it has been received.

For the Parent Company financial statements in general are presented in condensed versions and with limited disclosures compared to the annual report. The interim financial statements of Electrolux Professional AB have been prepared in accordance with the Swedish Annual Accounts Act and the accounting standard RFR 2, accounting for legal entities. The most recent annual financial statements of Electrolux Professional AB have been prepared in accordance with the Annual Accounts Act and the standard from the Swedish Accounting Standards Board BFNAR 2012:1 Annual report and consolidated accounts (K3).

Reportable segments

Food & Beverage and Laundry represent the Group’s reportable segments.

First page

Message from the CEO Financial overview

Financial reports Definitions

Note 2 Disaggregation of revenue

Shareholders information

Sales of products are revenue recognized at a point in time, when control of the products has transferred. Revenue from services related to installation of products, repairs or maintenance service is recognized when control is transferred being over the time the service is provided. Sales of these services are not material in relation to Electrolux Professional total net sales.

Geography is an important attribute when disaggregating Electrolux Professional revenue. Therefore, the table below presents net sales per geographical region based on the location of the end customer.

SEK	Fourth	quarter	Full	year
	Oct–Dec 2020	Oct–Dec 2019	Jan–Dec 2020	Jan–Dec 2019
Geographical region Europe Asia-Pacifc,Middle East and Africa Americas
	1,315	1,593	5,053	6,165
	338	388	1,187	1,513
	283	353	1,023	1,603
Total	1,935	2,334	7,263	9,281

Electrolux Professional – Year-end report, Q4 2020

P. 20

Note 3 Fair values and carrying amounts of financial assets and liabilities

SEK	Dec 31, 2020	Dec 31, 2020	Dec 31, 2019	Dec 31, 2019
	Fair value	Carrying amount	Fair value	Carrying amount
Per category Financial assets at fair value throughproft and loss Financial assets measured at amortized cost Derivatives,fnancial assets at fair value throughproft and loss
	0	0	0	0
	2,058	2,058	2,339	2,339
	12	12	4	4
Total fnancial assets	2,070	2,070	2,344	2,344
Financial liabilities measured at amortized cost Derivatives,fnancial liabilities at fair value throughproft and loss	2,293	2,289	2,837	2,837
	6	6	5	5
Total fnancial liabilities	2,299	2,295	2,843	2,843

The Group strives for arranging master-netting agreements (ISDA) with the counterparts for derivative transactions and has established such agreements with the majority of the counterparties, i.e., if a counterparty will default, assets and liabilities will be netted. Derivatives are presented gross in the balance sheet.

Fair value estimation

Valuation of financial instruments at fair value is done at the most accurate market prices available. Instruments which are quoted on the market, e.g., the major bond and interest-rate future markets, are all mark-to-market with the current price. The foreign-exchange spot rate is used to convert the value into SEK. For instruments where no reliable price is available on the market, cash-flows are discounted using the deposit/swap curve of the cash flow currency. If no proper cash-flow schedule is available, e.g., as in the case with forward-rate agreements, the underlying schedule is used for valuation purposes.

To the extent option instruments are used, the valuation is based on the Black & Scholes’ formula.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current marketinterest rate for similar financial instruments. The Group’s financial assets and liabilities are measured according to the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities. At December 31, 2020, the fair value for Level 1 financial assets was SEK 0m (0) and for financial liabilities SEK 0m (0).

Level 2: Inputs other than quoted prices included in Level 2 that are observable for assets or liabilities either directly or indirectly. At December 31, 2020, the fair value of Level 2 financial assets was SEK 12m (4) and financial liabilities SEK 6m (5).

Level 3: Inputs for the assets or liabilities that are not entirely based on observable market data. At Dectember 31, 2020, the fair value of Level 3 financial assets was SEK 0m (1) and financial liabilities SEK 0m (0).

First page

Message from the CEO

Financial overview

Financial reports

Definitions

Shareholders information

Note 4 Contingent liabilities

SEKm	Dec 31, 2020	Dec 31, 2019
Group Guarantees and other commitments
	129	125

On January 21, 2020, a supplier filed a lawsuit in Ita ly against Electrolux Professional. The claimed amount was EUR 11.3m but was during the third quarter increased to EUR 12.1m, approximately SEK 121m, and covers alleged damages related to products and prices during the contractual period

and compensation for costs and damages resulting from the allegedly wrongful termination of the supply agreement. Electrolux Professional rejects the claim but it cannot be ruled out that the final outcome could have a significant impact on Electrolux Professional’s operating income and cash flow.

Electrolux Professional – Year-end report, Q4 2020

P. 21

Note 5 COVID-19

As a consequence of the COVID-19 outbreak, Electrolux Professional has assessed any potential impact on the carrying value of asset and liabilities.

Impairment of assets

No material impairment of assets has been recognized in the consolidated financial statements as a direct consequence of COVID-19.

Trade receivables

No material increase in actual credit losses has been experienced. Collection of trade receivables is carefully monitored. Management have stressed the need for even more focus on forward looking evaluation of the risk of not being able to collect payments and therefore the expected credit loss provision has increased to SEK 100m on 31 December, 2020 compared to SEK 66m on 31 December 2019.

Credit insurance and other forms of collaterals, for example letter of credit and bank guarantees are used as a protection against credit risk. In addition, some sales are also made to governmental institutions which are deemed as secure.

Inventories

During the year, no extraordinary material writedown of finished goods inventories or supplies have been recognized as a consequence of the COVID-19 situation.

Leases

The Group has received some minor office rent reductions.

Government grants and

government assistance

Companies within the Group have received or assume that they fulfil the requirements of monetary help from governments. As of December 31, 2020 the amount recognized in profit or loss is SEK 18m in the quarter and SEK 95m year to date and refers mainly to short-term furlough of personnel.

The Group has also utilized the possibility to postpone tax payments in Sweden resulting in positive operating cash flow effect of SEK 48m in the second quarter. In the third quarter SEK 30m has been paid and the remaining SEK 18m has been paid during quarter four 2020.

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Message from the CEO Financial overview

Financial reports

Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 22

Operations by segment yearly

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SEKm 2020 2019 2018 2017
Food & Beverage
Net sales 4,198 5,895 5,399 4,922
EBITA 87 568 629 607
EBITA, % 2.1 9.6 11.7 12.3
Operating income 35 522 599 572
Operating margin, % 0.8 8.9 11.1 11.6
Laundry
Net sales 3,065 3,386 3,267 2,801
EBITA 467 507 573 502
EBITA, % 15.2 15.0 17.6 17.9
Operating income 452 488 558 499
Operating margin, % 14.7 14.4 17.1 17.8
Group common cost
Operating income –100 –18 –14 –11
Total Group
Net sales 7,263 9,281 8,666 7,723
EBITA 456 1,058 1,188 1,098
EBITA, % 6.3 11.4 13.7 14.2
Operating income 387 992 1,143 1,060
Operating margin, % 5.3 10.7 13.2 13.7
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Four year overview

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SEKm, if not otherwise stated 2020 2019 2018 2017
Net sales 7,263 9,281 8,666 7,723
Organic growth, % –21.0 –0.3 4.1 5.6
EBITA 456 1,058 1,188 1,098
EBITA, % 6.3 11.4 13.7 14.2
Operating income 387 992 1,143 1,060
Operating margin, % 5.3 10.7 13.2 13.7
Income after financial items 363 978 1,134 1,052
Income for the period 278 663 952 786
Items affecting comparability –77 –32 – –
Capital expenditure –273 –257 –169 –167
Operating cash flow after investments 570 1,138 1,131 1,167
Earnings per share, SEK¹ 0.97 2.31 3.31 2.74
Equity per share, SEK 9.74 9.43 31.91 8.43
Dividend per share, SEK – – – –
Net debt 549 1,025 –226 –481
EBITDA 684 1,280 1,363 1,253
Net debt/EBITDA ratio 0.8 0.8 –0.2 –0.4
Average number of shares, million 287.4 287.4 287.4 287.4
Number of employees, end of period 3,515 3,624 3,555 3,183
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First page

Message from the CEO Financial overview Financial reports Definitions Shareholders information

1) Basic number of outstanding shares.

Electrolux Professional – Year-end report, Q4 2020

P. 23

Definitions

Definitions and reconciliation of alternative performance measures Electrolux Professional presents certain measures that are not defined under IFRS (alternative performance measures – “APMs”). These are used by management to assess the financial and operational performance of the Group. Management believes that these APMs provide useful information regarding the Group’s financial and operating performance. Such measures may not be comparable to

similar measures presented by other companies. Consequently, APMs have limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS. The APMs have been derived from the Electrolux Professional’s internal reporting and are not audited. The APM reconciliations can be found on Electrolux Professional website www.electroluxprofessional.com/corporate/interim-reports/

APM	Defnition	Reason for use
Organic growth %	Change in sales growth excluding net FX impact and acquisitions.	The Group’s presentation currency is SEK while the net sales are mainly in other cur- rencies. Organic growth is dependent on fuctuations in SEK versus other currencies and in addition acquired business can have an impact on reported net sales. Organic growth adjusted for acquisitions and currency shows the underlying sales development without these parameters.
Acquisitions %	Change in net sales during the current period attributable to acquired operation in relation to prior period’s sales, following a period of 12 months commencing on the acquisition date.	See “Organic growth” above.
Operating income (EBIT)	Earnings before interest and tax.	Used as an indicator that shows the Group’s ability to make a proft, regard- less of the method of fnancing (then determines the optimal use of debt versus equity).
Operating margin (EBIT margin)	Operating income as a percentage of net sales.	Operating margin shows the operating income in percentage of net sales. Operat- ing margin is a key internal measure as the Group believes that it provides users of the fnancial statements with a better under- standing of the Group’s fnancial perfor- mance both short and long term.
Items afecting comparability	Material proft or loss items such as capital gains and losses from divestments of product groups or major units, close down or signifcant down-sizing of major units or activities, restructuring activities, signifcant impairment, and other major non-recurring costs or income.	Summarizes events and transactions with signifcant efects, which are relevant for understanding the fnancial performance when comparing income for the current period with previous periods.
Operating margin excluding items afecting comparability	Operating income excluding items afect- ing comparability as a percentage of net sales.	Operating margin excluding items afecting comparability shows the operating income in percentage of net sales adjusted for items afecting comparability. This is a key internal measure, as the Group believes that it provides users of the fnancial state- ments with a better understanding of the Group’s fnancial performance both short and long term.
Capital expenditure	Investments in property, plant and equip- ment, product development and other intangible assets.	Used to ensure that cash spending is in line with Group’s overall strategy for the use of cash.

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Message from the CEO Financial overview Financial reports Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 24

			Reason for use EBITA gives an indication of the operating income less amortization and write-down related to intangibles assets (excluding right of use assets) and is mainly used to follow up operating income without the distortion of amortization of surplus values related to acquisitions. Used to evaluate business performance in relation to net sales in order to measure the efciency of the Company. EBITDA is an indicator for business’ cash generating capacity in relation to sales. Items afecting comparability vary between years and periods and in order to analyze trends items afecting comparability are excluded from EBITA. Items afecting comparability vary between years and periods and in order to analyse trends, items afecting comparability are excluded from EBITA margin. Used to monetarize the cash from core operation. Net debt describes the Group’s total debt fnancing and is monitored by manage- ment. A measurement of fnancial risk, showing net debt in relation to cash generation. Used to evaluate how efcient the Group is generating cash in relation to net sales.
	APM	Defnition
	EBITA	Operating income less amortization and write-down related to intangibles assets (excluding right of use assets).
	EBITA margin	EBITA expressed as a percentage of net sales.
	EBITDA	EBITA less depreciation of tangible assets (including right of use assets).
	EBITA excluding items afecting comparability	Operating income less amortization and write-down related to intangibles assets (excluding right of use assets) and less items afecting comparability.
	EBITA margin excluding items afecting comparability	EBITA excluding items afecting compa- rability, expressed as a percentage of net sales.
	Operating cash fow after investments	Cash fow from operations and investments adjusted for fnancial items paid, net, taxes paid and acquisitions/divestments of operations.
	Net debt	Short-term borrowings (short-term loans and trade receivables with recourse), accrued interest expenses and prepaid interest income and long-term borrowings, lease liabilities, net provisions for post-em- ployment benefts, less liquid funds (cash and cash equivalents, prepaid interest expenses and accrued interest income and cashpool accounts Electrolux Group).
	Net debt/EBITDA	Net debt in relation to EBITDA (Net debt is based on the end of period balance and EBITDA is calculated based on last four rolling quarters).
	Operating working capital, % of net sales	Sum of currency adjusted last twelve months’ average of inventories, non-re- lated party trade receivables and trade payables (Operating working capital) as percentage of currency adjusted last twelve months’ average net sales. All months of the period are currency adjusted by applying the end of period average currency rate.

First page

Message from the CEO Financial overview

Financial reports Definitions Shareholders information

Electrolux Professional – Year-end report, Q4 2020

P. 25

Shareholders information

President and CEO Alberto Zanata’s comments on the fourth quarter results 2020 Today’s press release is available on the Electrolux Professional website www.electroluxprofessional.com/corporate

Telephone conference 09.00 CET

A telephone conference is held at 09.00 today, February 3, 2021. Alberto Zanata, President and CEO and Fabio Zarpellon, CFO will comment on the report.

Details for participation by telephone are as follows:

Participants in Sweden: +46 8 505 583 65 Participants in UK/Europe: +44 333 300 9030 Participants in US: +1 833 526 8396

Slide presentations for download: www.electroluxprofessional.com/corporate

Link to webcast:

https://electroluxprofessional.creo.se/210203

For further information, please contact: Jacob Broberg, Senior Vice President Investor Relations and Communications +46 70 190 00 33

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Financial calender Date
Annual Report 2020 published March 31, 2021
Interim report Q1 2021 April 27, 2021
Annual General Meeting April 28, 2021
Interim report Q2 2021 July 22, 2021
Interim report Q3 2021 October 28, 2021
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This information is information that Electrolux Professional AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person detailed in the column to the left, at 8:00 a.m. CET on February 3, 2021.

First page

Message from the CEO

Mission

Making Electrolux Professional’s customers’ worklife easier, more profitable – and truly sustainable every day.

Strategy

Electrolux Professional’s strategy focuses on four pillars, built on a foundation of operational excellence to improve sales productivity and cost efficiency within the supply chain.

GROW the business by developing sustainable, innovative low-running cost solutions: Set the pace of industry innovation in sustainability and energy efficiency, complemented with a connected and digital platform meeting customers’ needs.

EXPAND in food service chains, especially in North America, grow in beverage and expand in emerging markets: Increase the global footprint and market position in selected industry verticals organically and through selective M&A as a further accelerator.

BOOST Customer Care (aftermarket sales) by further developing the global service network and competence as a full-service provider while increasing sales of accessories and consumables to enhance product performance and ownership experience.

Financial targets

Organic sales growth Organic annual growth of more than 4 percent over time, complemented by value accretive acquisitions.

EBITA margin EBITA margin of 15 percent.

Operating

working capital

Operating working capital below 15 percent of net sales.

Net debt/EBITDA

Leverage ratio below 2.5x Net debt/EBITDA. Higher levels may be temporarily acceptable in case of acquisitions, provided a clear path to deleveraging.

Financial overview

Financial reports

Definitions

Shareholders information

Dividend policy

LEVERAGE the OnE approach: Strengthen the position as a full-solution provider within food, beverage and laundry to cater for all customers’ needs under one global brand and make customers’ lives easier in a world of connected appliances.

30 percent of net income.

Electrolux Professional – Year-end report, Q4 2020

P. 26

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About Electrolux Professional

Electrolux Professional is one of the leading global providers of food service, beverage and laundry for professional users. Our innovative products and worldwide service network make our customers’ work-life easier, more profitable and truly sustainable every day. Our solutions and products are manufactured in 12 plants in seven countries and sold in over 110 countries. In 2020, Electrolux Professional had global sales of SEK 7,3bn and approximately 3,500 employees. For more information, visit www.electroluxprofessional.com/corporate

This report 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, 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.

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Electrolux Professional AB (publ), 556003-0354 Postal and visiting address: S:t Göransgatan 143, SE-112 17 Stockholm Telephone: +46 8 41056450

Website: www.electroluxprofessional.com/corporate