Electrolux — Interim / Quarterly Report 2009

Jul 16, 2009

Interim report January - June 2009

Stockholm, July 16, 2009

Highlights of the second quarter of 2009

• • Net sales amounted to SEK 27,482m (25,587) and income for the period to SEK 658m (99), or SEK 2.32 (0.36) per share.
• • Net sales declined by 8.4%, in comparable currencies, due to continued sharp market downturn in Electrolux main markets.
• • Operating income amounted to SEK 1,027m (793), excluding items affecting comparability.
• • Continued strong cash flow gives Electrolux a solid financial position.
• • Despite continued weak markets, operating income in Europe and North America improved due to cost reductions, lower costs for raw materials and price increases.
• • Electrolux continues to gain market shares in the North American, Latin American and Australian markets for appliances.

SEKm	Q2 2009	Q2 2008	Change %	First half 2009	First half 2008	Change %
Net sales	27,482	25,587	7.4	53,300	49,780	7.1
Operating income	1,052	254	314.2	666	249	167.5
Margin, %	3.8	1.0		1.2	0.5
Income after financial items	932	140	565.7	439	-9	N/A
Income for the period	658	99	564.6	312	-7	N/A
Earnings per share, SEK1)	2.32	0.36		1.10	-0.02
Return on net assets, %	-	-		6.4	2.5
Excluding items affecting comparability
Items affecting comparability	25	-539		-399	-505
Operating income	1,027	793	29.5	1,065	754	41.2
Margin, %	3.7	3.1		2.0	1.5
Income after financial items	907	679	33.6	838	496	69.0

Income for the period 633 491 28.9 693 351 97.4

1) Basic, based on an average of 283.9 (283.5) million shares for the second quarter and 283.8 (282.7) million shares for the first half of 2009, excluding shares held by Electrolux.

Earnings per share, SEK1) 2.23 1.74 2.44 1.24 Return on net assets, % - - 9.9 7.1

For earnings per share after dilution, see page 11.

For definitions, see page 19.

For further information, please contact Peter Nyquist, Head of Investor Relations and Financial Information, at +46 8 738 60 03.

AB ELECTROLUX (PUBL) Postal address Media hotline Investor Relations E-mail SE-105 45 Stockholm, Sweden +46 8 657 65 07 +46 8 738 60 03 ir@electrolux.se Visiting address Telefax Website Reg. No. S:t Göransgatan 143 +46 8 738 74 61 www.electrolux.com 556009-4178

Contents

Net sales and income	2
Market overview	3
Business areas	3
Cash flow	6
Financial position	6
Financial statements	11

Net sales and income

Second quarter of 2009

Net sales for the Electrolux Group in the second quarter of 2009 amounted to SEK 27,482m (25,587). Sales were positively impacted by changes in exchange rates, while changes in volume/price/mix had a negative impact. Net sales decreased by 8.4% in comparable currencies.

Change in net sales

%	Q2 2009	First half 2009
Changes in Group structure	0.0	0.0
Changes in exchange rates	15.8	15.1
Changes in volume/price/mix	-8.4	-8.0
Total	7.4	7.1

Operating income

Operating income for the second quarter of 2009 increased to SEK 1,052m (254) and income after financial items to SEK 932m (140). Income for the period amounted to SEK 658m (99), corresponding to SEK 2.32 (0.36) in earnings per share.

Items affecting comparability

Operating income for the second quarter of 2009 includes items affecting comparability in the amount of SEK 25m (-539) referring to a sale of a real estate in Changsha in China. The factory in Changsha was closed in the first quarter of 2009, see table on page 11.

Excluding items affecting comparability, operating income amounted to SEK 1,027m (793).

The launch of Electrolux in North America in 2008 had a net negative impact on the second quarter previous year in the amount of approximately SEK -230m. Operating income for the second quarter of 2009 was in line with the previous year, excluding these launch costs.

Effects of changes in exchange rates

Changes in exchange rates compared to the previous year, including both translation and transaction effects, had an impact of SEK -249m on operating income for the second quarter of 2009 compared to the same period in the previous year. Transaction effects net of hedging contracts amounted to SEK -250m and referred mainly to the strengthening of the US dollar and the euro against several other currencies. Translation of income statements in subsidiaries had an impact of SEK 1m.

The effect of changes in exchange rates on income after financial items amounted to SEK -267m.

Financial net

Net financial items for the second quarter of 2009 amounted to SEK -120m, compared to SEK -114m for the corresponding period in the previous year.

First half of 2009

Net sales for the Electrolux Group in the first half of 2009 amounted to SEK 53,300m as against SEK 49,780m in the previous year. In comparable currencies net sales declined by 8.0%.

Operating income

Operating income for the first half of 2009 increased to SEK 666m (249) and income after financial items to SEK 439m (-9). Income for the period increased to SEK 312m (-7), corresponding to SEK 1.10 (-0.02) in earnings per share.

Operating income for the first half of 2009 was negatively impacted by the North American launch in the net amount of SEK -200m. In the first half of 2008, non-recurring items were charged against operating income in the total amount of approximately SEK -780m, see table below.

Electrolux North American launch and non-recurring items

SEKm, approximately	First half 2009	First half 2008
Net impact of the launch of Electrolux, applian ces North America	-200	-350
Cost-cutting program, appliances Europe		-360
Cost for a component problem for dishwashers, appliances Europe		-120
Capital gain, real estate, appliances Europe		130
Cost for litigation, appliances North America		-80
Total	-200	-780

Items affecting comparability

Operating income for the first half of 2009 includes items affecting comparability in the amount of SEK -399m (-505), see table on page 11. Excluding items affecting comparability, operating income for the first half of 2009 increased to SEK 1,065m (754) and income after financial items to SEK 838m (496). Income for the period was SEK 693m (351), corresponding to SEK 2.44 (1.24) in earnings per share.

Effects of changes in exchange rates

Changes in exchange rates compared to the previous year, including both translation and transaction effects, had an impact of SEK -646m on operating income for the first half of 2009. Transaction effects net of hedging contracts amounted to SEK -638m. Translation of income statements in subsidiaries had an effect of SEK -8m.

The effect of changes in exchange rates on income after financial items amounted to SEK -672m.

Financial net

Net financial items for the first half of 2009 decreased to SEK -227m compared to SEK -258m for the corresponding period in the previous year. The improvement is mainly due to lower interest rates on borrowings.

Market overview

Most of Electrolux main markets for appliances continued to show a decline in the second quarter of 2009. The North American market has declined for twelve consecutive quarters. In the second quarter, industry shipments in the US declined by 14%. The European market has been falling for six consecutive quarters, with Eastern Europe showing a continued dramatic downturn in the second quarter, declining by 30%. Demand in Western Europe declined by 9% and the total market in Europe by 14%. The market in Brazil increased in the second quarter due to temporary tax reduction on domestically-produced appliances. Most other markets in Latin America continued to decline.

There are no indications of an immediate improvement in any of the Group's main markets, and, therefore, market demand for appliances around the world is expected to decline further in 2009.

Business areas

Changes in net sales and operating income by business area in comparable currencies are given on page 15.

Consumer Durables, Europe

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	9,935	10,500	20,110	21,025	44,342
Operating income	257	294	382	102	-22
Operating margin, %	2.6	2.8	1.9	0.5	0.0

Industry shipments of core appliances in Europe

Units, year-over-year, %	Q2 2009	First half 2009
Western Europe	-9	-9
Eastern Europe (excluding Turkey)	-30	-30
Total Europe	-14	-14

Core appliances

Industry shipments of appliances in Europe declined by 14% in the second quarter of 2009 in comparison with the same period last year. Deliveries in Western Europe declined by 9%. Demand continued to fall in a number of the Group's major markets, including Italy, Great Britain, France, and the Nordic region. Demand in Germany continued to increase somewhat. Deliveries of appliances in Eastern Europe declined by 30%.

The weak market demand and lower sales of products under private label led to lower sales for the Group in comparison with the second quarter of 2008.

Operating income improved in the second quarter. An improved country and product mix, previous price increases and savings related to redundancy of personnel and moving capacity to lowcost countries had a positive impact on operating income. Savings and lower costs for components and raw materials also had a positive impact on income. Lower volumes, unfavorable currency effects and reduced utilization of capacity at the Group's plants had a negative effect on income.

Floor-care products

Market demand for vacuum cleaners in Europe continued to decline in the second quarter of 2009 in comparison with the same period in 2008.

Group sales decreased as a result of lower sales volumes but market shares and price levels were stable. Operating income and margin declined as a result of lower volumes.

Consumer Durables, Europe Industry shipments of core appliances in Europe*

Consumer Durables, North America

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	9,848	8,214	18,992	15,489	32,801
Operating income	498	113	321	-41	222
Operating margin, %	5.1	1.4	1.7	-0.3	0.7

Industry shipments of core appliances in the US

Units, year-over-year, %	Q2 2009	First half 2009
Core appliances	-14	-15
Major appliances	-23	-20

Major appliances

Industry shipments of core appliances in the US declined by approximately 14% in the second quarter of 2009 in comparison with the corresponding period last year. This is the twelfth consecutive quarter of decline in shipments.

Group sales of appliances in North America in comparable currencies were lower in the second quarter as a result of continued low sales volumes and the ongoing shift in demand to products with lower prices. The decline in sales was partly offset by previous price increases. Sales in SEK increased due to the strengthening of the US dollar.

Operating income for the second quarter of 2009 improved over the same period in the previous year. Lower sales volumes were offset by lower costs for purchases of raw materials, fixed cost reductions and implemented price increases. Operating income for the second quarter of 2008 was impacted by the launch of Electrolux in the amount of approximately SEK -230m.

The new Electrolux-branded products continued to contribute to an improvement in the product mix.

Floor-care products

Market demand for vacuum cleaners in North America continued to show a decline in the second quarter of 2009 compared to the corresponding period last year.

Sales and operating income decreased as a result of deterioration in product mix.

Consumer Durables, North America

Industry shipments of core appliances

in the US*

* Units, year-over-year, %.

Consumer Durables, Latin America

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	3,326	2,548	5,951	4,952	10,970
Operating income	142	133	192	289	715
Operating margin, %	4.3	5.2	3.2	5.8	6.5

Industry shipments of appliances in Latin America are estimated to have increased in the second quarter of 2009 compared to the same period in the previous year on the basis of higher industry shipments in Brazil. Industry shipments continued to decline in most of the other Latin American markets.

In Brazil, industry shipments increased significantly on the basis of incentives introduced by the Brazilian government through tax reduction on domestically-produced appliances. Electrolux sales volumes increased in the second quarter over the same period last year and sales increased. The Group gained additional market shares in Brazil. Operating income improved on the basis of higher volumes and a better customer mix.

Consumer Durables, Asia/Pacific and Rest of world

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	2,521	2,369	4,666	4,597	9,196
Operating income	104	147	164	252	369
Operating margin, %	4.1	6.2	3.5	5.5	4.0

Australia and New Zealand

In Australia, market demand for appliances in the second quarter was somewhat down compared with the same period last year. Group sales in comparable currencies rose as a result of higher sales volumes and previous prices increases. Electrolux continued to gain market shares. Operating income was in line with the previous year. Negative currency effects of purchases of products priced in US dollars were to a large extent compensated by increased sales and implemented cost reductions.

Southeast Asia and China

Overall market demand in Southeast Asia is estimated to have declined in the second quarter of 2009 in comparison with the same period last year. The Group's sales volumes declined but sales increased slightly reflecting price increases and improved product mix. The operations in Southeast Asia continued to show good profitability.

Market statistics for shipments of appliances in China indicate an

increase in the second quarter of 2009 in comparison with the same period in 2008. Operating income for the operations in China continued to be negatively impacted by costs related to the strategy of focusing on more profitable segments and geographies.

Professional Products

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	1,850	1,944	3,577	3,697	7,427
Operating income	165	225	270	408	774
Operating margin, %	8.9	11.6	7.5	11.0	10.4

Market demand for food-service equipment is estimated to have declined in the second quarter of 2009 in comparison with the same period last year.

In the second quarter, Group sales of food-service equipment declined significantly in comparable currencies as a result of lower sales volumes. Operating income decreased due to lower capacity utilization at production facilities. Personnel cutbacks and lower costs for raw materials had a favorable effect on income.

Demand in the market for laundry equipment is estimated to have declined in the second quarter of 2009 in comparison with the same period in 2008.

Group sales decreased as a result of lower volumes, but market shares were maintained. Operating income declined as a result of lower capacity utilization in production facilities, partly offset by cost savings.

Cash flow

Cash flow from operations and investments in the second quarter was particularly strong and amounted to SEK 3,507m (1,126).

The strong cash flow was generated by income from operations as well as changes in operating assets and liabilities. Extended payment terms for sourced air-conditioners in the US and Latin America had a positive impact on cash flow in the quarter in the total amount of approximately SEK 1,300m (950). The air conditioners will be paid in the third and fourth quarter. Production continued to be adjusted in response to lower demand. The build-up of inventories for the normally stronger second half of the year has been postponed.

Payments related to ongoing restructuring programs and costcutting had a negative impact in the amount of approximately SEK -235m in the quarter.

Capital expenditure in the second quarter was lower than in the same period in the previous year and referred mainly to investments in plants for new products and to reinvestments.

Cash flow from investments in the second quarter of 2009 was affected by a divestment of a real estate in the amount of approximately SEK 50m.

Cash flow			First half	First half
SEKm	Q2 2009	Q2 2008	2009	2008
Cash flow from operations, excluding change in operating assets and liabilities	1,266	1,097	1,596	1,237
Change in operating assets and liabilities	2,810	914	3,119	735
Investments	-569	-885	-1,273	-1,335
Cash flow from operations
and investments	3,507	1,126	3,442	637
Dividend	0	-1,204	0	-1,204
Sale of shares	45	14	45	17
Total cash flow, excluding change in loans and short term investments	3,552	-64	3,487	-550

Financial position

Total equity as of June 30, 2009, amounted to SEK 17,238m (14,357), which corresponds to SEK 60.67 (50.63) per share.

Net borrowings

SEKm	June 30, 2009	June 30, 2008	Dec. 31, 2008
Borrowings	15,083	11,641	13,946
Liquid funds	12,886	6,424	9,390
Net borrowings	2,197	5,217	4,556
Net debt/equity ratio	0.13	0.36	0.28
Equity	17,238	14,357	16,385
Equity per share, SEK	60.67	50.63	57.78
Return on equity, %	3.9	-0.1	2.4
Return on equity, excluding items affecting comparability, %	8.6	4.7	4.2
Equity/assets ratio, %	27.1	23.8	25.6

Net borrowings

Net borrowings amounted to SEK 2,197m (5,217). The net debt/ equity ratio was 0.13 (0.36). The equity/assets ratio was 27.1% (23.8).

During the first half of 2009, SEK 1,632 of new long-term borrowings were raised. Long-term borrowings as of June 30, 2009, excluding long-term borrowings with maturities within 12 months, amounted to SEK 10,702m with average maturities of 4.3 years, compared to SEK 9,963m and 4.7 years by the end of 2008.

During 2009 and 2010, long-term borrowings in the amount of approximately SEK 1,500m will mature. Liquid funds as of June 30, 2009, excluding a committed unused revolving credit facility of EUR 500m, amounted to SEK 12,886m.

Net assets and working capital

Average net assets for the period amounted to SEK 20,690m (20,088). Net assets as of June 30, 2009, amounted to SEK 19,435m (19,574).

Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 21,578m (21,231), corresponding to 20.2% (21.3) of net sales.

Working capital as of June 30, 2009, decreased to SEK -6,622m (-2,873), corresponding to -6.0% (-2.8) of annualized net sales.

The return on net assets was 6.4% (2.5), and 9.9% (7.1), excluding items affecting comparability.

Cash flow from operations and investments

Cash flow and change in net borrowings

Other items

New head of Professional Products

Alberto Zanata was appointed new head of Electrolux Professional Products in June 2009. He suceeded Dr. Detlef Münchow, who is leaving the Group. Alberto Zanata is a member of Group Management and reports to the President and CEO Hans Stråberg.

Previously, Zanata has held various management positions within Electrolux operations for professional products.

Asbestos litigation in the US

Litigation and claims related to asbestos are pending against the Group in the US. Almost all of the cases refer to externally supplied components used in industrial products manufactured by discontinued operations prior to the early 1970s. Some of the cases involve multiple plaintiffs who have made identical allegations against many other defendants who are not part of the Electrolux Group.

As of June 30, 2009, the Group had a total of 2,776 (2,288) cases pending, representing approximately 3,120 (approximately 2,870) plaintiffs. During the second quarter 2009, 182 new cases with 182 plaintiffs were filed and 196 pending cases with approximately 380 plaintiffs were resolved. Approximately 80 of the plaintiffs relate to cases pending in the state of Mississippi.

Additional lawsuits may be filed against Electrolux in the future. It is not possible to predict either the number of future claims or the number of plaintiffs that any future claims may represent. In addition, the outcome of asbestos claims is inherently uncertain and always difficult to predict and Electrolux cannot provide any assurances that the resolution of these types of claims will not have a material adverse effect on its business or on results of operations in the future.

Repurchase and transfer of own shares

For several years, Electrolux has on the basis of authorizations by the AGM acquired and transferred own shares. The purpose of the share-repurchase programs has been to enable adapting the capital structure of the Group and thereby to contribute to increased shareholder value, or to use the repurchased shares in conjunction with the financing of potential acquisitions and the Group's sharerelated incentive programs.

In accordance with the proposal by the Board of Directors, the AGM decided to authorize the Board to transfer own shares on the account of company acquisitions during the period up until the AGM in 2010. The Board of Directors did not request any mandate from the AGM to repurchase additional shares in the company.

The AGM also authorized transfers of up to 3,000,000 repurchased B-shares to cover costs that may arise as a result of the previous employee stock-option programs for 2002-2003 and the Electrolux Performance Share Program 2007.

As of June 30, 2009, Electrolux held 24,805,519 B-shares, corresponding to 8.0% of the total number of outstanding shares, see table on page 12.

Risks and uncertainty factors

Risks in connection with the Group's operations can, in general, be divided into operational risks related to business operations and those related to financial operations. Operational risks are normally managed by the operative units within the Group, and financial risks by the Group's treasury department.

Risks and uncertainty factors

Electrolux operates in competitive markets, most of which are relatively mature. Demand for appliances varies with general business conditions, and price competition is strong in a number of product categories. Electrolux ability to increase profitability and shareholder value is largely dependent on its success in developing innovative products and maintaining cost-efficient production. Major factors for maintaining and increasing competitiveness include managing fluctuations in prices for raw materials and components as well as implementing restructuring. In addition to these operative risks, the Group is exposed to risks related to financial operations, e.g., inte-

Relocation of production, items affecting comparability, restructuring measures 2007–2010

Plant closures and cutbacks			Closed
Torsvik	Sweden	Compact appliances	(Q1 2007)
Nuremberg	Germany	Dishwashers, washing machines and dryers	(Q1 2007)
Adelaide	Australia	Dishwashers	(Q2 2007)
Fredericia	Denmark	Cookers	(Q4 2007)
Adelaide	Australia	Washing machines	(Q1 2008)
Spennymoor	UK	Cookers	(Q4 2008)
Changsha	China	Refrigerators	(Q1 2009)
Authorized closures			Estimated closure
Scandicci	Italy	Refrigerators	(Q3 2009)
St. Petersburg	Russia	Washing machines	(Q2 2010)

Re-engineering			Effected
Porcia	Italy	Washing machines	(Q4 2010)

In 2004, Electrolux initiated a restructuring program to make the Group's production competitive in the long term. When it is fully implemented in 2010, more than half of production of appliances will be located in low-cost countries and savings will amount to approximately SEK 3 billion annually. Restructuring provisions and write-downs are reported as items affecting comparability within operating income. For information on provisions in the first half of 2009, see table on page 11.

rest risks, financing risks, currency risks and credit risks. The Group's development is strongly affected by external factors, of which the most important in terms of managing risks currently include:

Variations in demand

Demand for appliances is affected by the general business cycle. A deterioration in these conditions may lead to lower sales volumes as well as a shift of demand to low-price products, which generally have lower margins. Utilization of production capacity may also decline in the short term. The global economic trend is an uncertainty factor in terms of the development of earnings in 2009.

Price competition

A number of the markets in which Electrolux operates features strong price competition. The Group's strategy is based on innovative products and brand-building, and is aimed, among other things, at minimizing and offsetting price competition for its products. A continued downturn in market conditions involves a risk of increasing price competition.

Changes in prices for raw materials and components

The raw materials to which the Group is mainly exposed comprise steel, plastics, copper and aluminum. Bilateral agreements are used to manage price risks. To some extent, raw materials are purchased at spot prices. There is considerable uncertainty regarding trends for the prices of raw materials.

Access to financing

In 2008, the Group improved its loan-maturity profile and thus substantially reduced dependence on short-term borrowings. Electrolux has an unused revolving credit facility for long- or shortterm back-up.

Risks, risk management and risk exposure are described in more detail in the Annual report 2008, www.electrolux.com/annualreport2008.

Sensitivity analysis year-end 2008 Raw materials exposure 2008

Risk	Change		Pre-tax earnings impact, SEKm
Raw materials
Steel	10%	+/–	1,000
Plastics	10%	+/–	500
Currencies¹) and interest rates
AUD/SEK	–10%	–	253
GBP/SEK	–10%	–	238
HUF/SEK	–10%	+	206
USD/SEK	–10%	+	458
EUR/SEK	–10%	+	684
Interest rate	1 percentage point	+/–	70

Carbon steel, 39% Stainless steel, 9% Copper and aluminum, 12% Plastics, 22% Other, 18%

In 2008, Electrolux purchased raw materials for approximately SEK 23 billion. Purchases of steel accounted for the largest cost.

1) Include translation and transaction effects.

Parent company AB Electrolux

The Parent Company comprises the functions of the Group's head office, as well as five companies operating on a commission basis for AB Electrolux.

Net sales for the Parent Company, AB Electrolux, for the first half of 2009 amounted to SEK 2,421m (2,729) of which SEK 1,116m (1,369) referred to sales to Group companies and SEK 1,305m (1,360) to external customers. Income after financial items was SEK 979m (355), including dividends from subsidiaries in the amount of SEK 688m (772). Income for the period amounted to SEK 1,009m (389).

Capital expenditure in tangible and intangible assets was SEK 129m (136). Liquid funds at the end of the period amounted to SEK 6,364m (2,536), as against SEK 4,045m at the start of the year.

Undistributed earnings in the Parent Company at the end of the period amounted to SEK 10,268m, as against SEK 9,110m at the start of the year.

The income statement and balance sheet for the Parent Company are presented on page 18.

Stockholm, July 16, 2009

Hans Stråberg President and CEO

New accounting standards

IAS 1 Presentation of Financial Statements (Revised)

The Group has implemented the revised IAS 1, which is effective as of January 1, 2009. As a consequence, the Group's consolidated income statement includes items of other comprehensive income. These items were previously reported within consolidated equity. Consequently, the consolidated equity statement is reported excluding these items. The change does not imply any new information or changes in key ratios.

IFRS 8 Operating Segments

This new standard replaces IAS 14, Segment Reporting, and prescribes the measurement and presentation of segments. Electrolux will report the same segments as previously. The impact of the new standard will be disclosed according to the standard, e.g., sales per country in the Annual Report.

The standard is effective for annual periods beginning on/or after January 1, 2009. The Group has applied the additional disclosure requirements in IAS 34, Interim Financial Reporting, in accordance with the new standard. As a consequence, assets and liabilities per segment are presented in the interim reports as from the first quarter of 2009.

Press releases 2009

February 4	Consolidated results 2008 and CEO Hans Stråberg's comments
February 23	Nomination Committee proposes re-election of Board members
March 30	Dr. Detlef Münchow to leave Electrolux
March 31	Electrolux to close factory in St. Petersburg, Russia
March 31	Electrolux Annual General Meeting 2009: Excerpts from the speech by President and CEO Hans Stråberg
April 22	Interim report January-March and CEO Hans Stråberg's comments
April 28	Electrolux will slash energy use by a further 15% by 2012
June 12	Alberto Zanata appointed new head of Professional Products

Accounting and valuation principles

Electrolux 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, and ÅRL, the Swedish Annual Accounts Act and recommendation RFR 2.2, Accounting for legal entities, issued by the Swedish Financial Reporting Board. There are no changes in the Group's accounting and valuation principles compared with the accounting and valuation principles described in Note 1 of the Annual Report 2008 and the description on new accounting standards above.

This report has not been audited.

9

The Board of Directors and the President and CEO certify that the Interim report for the period January - June 2009 gives a true and fair overview of the Parent Company AB Electrolux and the Group's operations, their financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, July 15, 2009

Marcus Wallenberg Chairman of the Board of Directors

Peggy Bruzelius Vice Chairman of the Board of Directors

Torben Ballegaard Sørensen Hasse Johansson Board member Board member

John S. Lupo Johan Molin

Board member Board member

Caroline Sundewall Barbara Milian Thoralfsson Board member Board member

Hans Stråberg Board member, President and CEO

Ola Bertilsson Gunilla Brandt Ulf Carlsson Board member, Board member, Board member, union representative union representative union representative

10

Consolidated income statement

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	27,482	25,587	53,300	49,780	104,792
Cost of goods sold	-22,145	-20,838	-43,586	-41,173	-86,795
Gross operating income	5,337	4,749	9,714	8,607	17,997
Selling expenses	-3,093	-2,911	-6,089	-5,751	-11,788
Administrative expenses	-1,213	-1,042	-2,559	-2,268	-4,839
Other operating income/expenses	-4	-3	-1	166	173
Items affecting comparability	25	-539	-399	-505	-355
Operating income	1,052	254	666	249	1,188
Margin, %	3.8	1.0	1.2	0.5	1.1
Financial items, net	-120	-114	-227	-258	-535
Income after financial items	932	140	439	-9	653
Margin, %	3.4	0.5	0.8	0.0	0.6
Taxes	-274	-41	-127	2	-287
Income for the period	658	99	312	-7	366
Available for sale instruments1)	90	-33	74	-357	-403
Cash flow-hedges2)	53	17	-167	-30	21
Exchange differences on translation of foreign operations3)	123	675	585	-66	1,589
Income tax relating to components of other comprehensive
income			-	-	-
Other comprehensive income, net of tax4)	266	659	492	-453	1,207
Total comprehensive income for the period	924	758	804	-460	1,573
Income for the period attributable to:
Equity holders of the Parent Company	658	99	312	-7	366
Non-controlling interests in income for the period	-	-	-	-	-
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	924	758	804	-460	1,573
Non-controlling interest in income for the period	-	-	-	-	-
Earnings per share, SEK	2.32	0.36	1.10	-0.02	1.29
Diluted, SEK	2.32	0.36	1.10	-0.02	1.29
Number of shares after buy-backs, million	284.1	283.6	284.1	283.6	283.6
Average number of shares after buy-backs, million	283.9	283.5	283.8	282.7	283.1
Diluted, million	284.4	283.6	284.2	282.9	283.2

1) Available for sale instruments refer to the fair-value changes in Electrolux share holdings in Videocon Industries Ltd., India. The share holdings are classified as available for sale in accordance with IFRS.

2) Cash-flow hedges refer to changes in valuation of currency contracts used for hedging future foreign currency transactions. When the actual transaction occurs, the result is reported within operating income.

3) Exchange differences on translation of foreign operations refer to changes in exchange rates when net investments in foreign subsidiaries are translated to SEK. The amount is reported net of hedging contracts.

4) These items were previously reported within the financial statement; Changes in consolidated equity.

Items affecting comparability

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Restructuring provisions and write-downs
Appliances plant in Changsha, China	25	0	-162	0	0
Appliances plant in Porcia, Italy	0	0	-132	0	0
Appliances plant in St. Petersburg, Russia	0	0	-105	0	0
Appliances plants in Scandicci and Susegana, Italy	0	-539	0	-539	-487
Reversal of unused restructuring provisions	0	0	0	34	132
Total	25	-539	-399	-505	-355

12 Interim report January - June 2009

Consolidated balance sheet

SEKm	June 30, 2009	June 30, 2008	Dec. 31, 2008
Assets
Property, plant and equipment	16,383	15,026	17,035
Goodwill	2,282	2,026	2,095
Other intangible assets	2,873	2,262	2,823
Investments in associates	19	26	27
Deferred tax assets	3,078	2,111	3,180
Financial assets	361	304	280
Other non-current assets	1,657	1,574	1,472
Total non-current assets	26,653	23,329	26,912
Inventories	12,290	13,360	12,680
Trade receivables	20,932	20,162	20,734
Tax assets	609	511	511
Derivatives	612	448	1,425
Other current assets	3,554	3,304	3,460
Short-term investments	1,920	98	296
Cash and cash equivalents	9,964	5,558	7,305
Total current assets	49,881	43,441	46,411
Total assets	76,534	66,770	73,323
Equity and liabilities Equity attributable to equity holders of the Parent Company Share capital Other paid-in capital	1,545 2,905	1,545 2,905	1,545 2,905
Other reserves	2,543	384	2,052
Retained earnings	10,245 17,238	9,522 14,356	9,883 16,385
Minority interests	0	1	0
Total equity	17,238	14,357	16,385
Long-term borrowings	10,702	8,543	9,963
Deferred tax liabilities	596	882	840
Provisions for post-employment benefits	6,582	5,928	6,864
Other provisions	4,301	4,183	4,175
Total non-current liabilities	22,181	19,536	21,842
Accounts payable	16,543	16,191	15,681
Tax liabilities	2,292	1,676	2,329
Short-term liabilities	11,648	10,344	10,644
Short-term borrowings	3,499	2,539	3,168
Derivatives	781	426	784
Other provisions	2,352	1,701	2,490
Total current liabilities	37,115	32,877	35,096
Total equity and liabilities	76,534	66,770	73,323
Contingent liabilities	1,471	1,187	1,293

Shares

Number of shares	Outstanding A-shares	Outstanding B-shares	Shares held by Electrolux	Shares held by other shareholders
Number of shares as of January 1, 2009	9,502,275	299,418,033	25,338,804	283,581,504
Shares sold to senior managers under the stock option programs
First quarter	-	-	-	-
Second quarter	-	-	-533,285	533,285
Shares alloted to senior managers under the Performance Share Program	-	-	-	-
Number of shares as of June 30, 2009	9,502,275	299,418,033	24,805,519	284,114,789
As % of total number of shares			8.0%

Consolidated cash flow statement

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Operations
Operating income	1,052	254	666	249	1,188
Depreciation and amortization	886	695	1,757	1,384	3,010
Capital gain/loss included in operating income	0	0	0	-167	-198
Restructuring provisions	-261	466	-118	707	1,134
Share-based compensation	4	-37	4	-36	-41
Financial items paid	-181	-72	-223	-383	-729
Taxes paid	-234	-209	-490	-517	-918
Cash flow from operations, excluding change in operating assets and liabilities	1,266	1,097	1,596	1,237	3,446
Change in operating assets and liabilities
Change in inventories	529	-479	543	-1,176	923
Change in trade receivables	-8	-579	562	203	1,869
Change in other current assets	-184	-265	-2	-361	-178
Change in accounts payable	1,351	1,397	937	1,498	-686
Change in other operating liabilities and provisions	1,122	840	1,079	571	-425
Cash flow from change in operating assets
and liabilities	2,810	914	3,119	735	1,503
Cash flow from operations	4,076	2,011	4,715	1,972	4,949
Investments
Divestment of operations	0	0	0	0	-34
Capital expenditure in property, plant and equipment	-404	-779	-918	-1,276	-3,158
Capitalization of product development	-63	-129	-211	-275	-544
Other	-102	23	-144	216	-19
Cash flow from investments	-569	-885	-1,273	-1,335	-3,755
Cash flow from operations and investments	3,507	1,126	3,442	637	1,194
Financing
Change in short-term investments	-864	-63	-1,624	60	-128
Change in short-term borrowings	-466	-2,049	-466	-771	-681
New long-term borrowings	4	3,151	1,632	4,174	5,289
Amortization of long-term borrowings	-12	0	-524	-2,832	-2,923
Dividend	0	-1,204	0	-1,204	-1,204
Sale of shares	45	14	45	17	17
Cash flow from financing	-1,293	-151	-937	-556	370
Total cash flow	2,214	975	2,505	81	1,564
Cash and cash equivalents at beginning of period	7,714	4,501	7,305	5,546	5,546
Exchange-rate differences	36	82	154	-69	195
Cash and cash equivalents at end of period	9,964	5,558	9,964	5,558	7,305
Change in net borrowings
Total cash flow, excluding change in loans
and short-term investments	3,552	-64	3,487	-550	7
Net borrowings at beginning of period	-4,927	-5,192	-4,556	-4,703	-4,703
Exchange-rate differences referring to net borrowings	-822	39	-1,128	36	140
Net borrowings at end of period	-2,197	-5,217	-2,197	-5,217	-4,556

Interim report January - June 2009

Change in consolidated equity

SEKm	June 30, 2009	June 30, 2008	Dec.31, 2008
Opening balance	16,385	16,040	16,040
Total comprehensive income for the period	804	-460	1,573
Share-based payment	4	-36	-41
Sale of shares	45	17	17
Dividend	0	-1,204	-1,204
Total transactions with equity holders	49	-1,223	-1,228
Closing balance	17,238	14,357	16,385

Working capital and net assets

SEKm	June 30, 2009	% of annualized net sales	June 30, 2008	% of annualized net sales	Dec. 31, 2008	% of annualized net sales
Inventories	12,290	11.2	13,360	13.0	12,680	11.0
Trade receivables	20,932	19.0	20,162	19.7	20,734	17.9
Accounts payable	-16,543	-15.0	-16,191	-15.8	-15,681	-13.6
Provisions	-13,235		-11,812		-13,529
Prepaid and accrued income and expenses	-8,279		-6,916		-7,263
Taxes and other assets and liabilities	-1,787		-1,476		-2,072
Working capital	-6,622	-6.0	-2,873	-2.8	-5,131	-4.4
Property, plant and equipment	16,383		15,026		17,035
Goodwill	2,282		2,026		2,095
Other non-current assets	4,910		4,166		4,602
Deferred tax assets and liabilities	2,482		1,229		2,340
Net assets	19,435	17.7	19,574	19.1	20,941	18.1
Average net assets	20,690	19.4	20,088	20.2	20,538	19.6
Average net assets, excluding items affecting comparability	21,578	20.2	21,231	21.3	21,529	20.5

Key ratios

	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales, SEKm	27,482	25,587	53,300	49,780	104,792
Operating income, SEKm	1,052	254	666	249	1,188
Margin, %	3.8	1.0	1.2	0.5	1.1
EBITDA, SEKm	1,938	949	2,423	1,633	4,198
Earnings per share, SEK¹)	2.32	0.36	1.10	-0.02	1.29
Return on net assets, %	-	-	6.4	2.5	5.8
Return on equity, %	-	-	3.9	-0.1	2.4
Equity per share, SEK	-	-	60.67	50.63	57.78
Cash flow from operations, SEKm	4,076	2,011	4,715	1,972	4,949
Capital expenditure, SEKm	-404	-779	-918	-1,276	-3,158
Net borrowings, SEKm	-	-	2,197	5,217	4,556
Net debt/equity ratio	-	-	0.13	0.36	0.28
Equity/assets ratio, %	-	-	27.1	23.8	25.6
Average number of employees	49,507	55,212	50,349	55,934	55,177
Excluding items affecting comparability
Operating income, SEKm	1,027	793	1,065	754	1,543
Margin, %	3.7	3.1	2.0	1.5	1.5
EBITDA, SEKm	1,913	1,488	2,822	2,138	4,553
Earnings per share, SEK¹)	2.23	1.74	2.44	1.24	2.32
Return on net assets, %	-	-	9.9	7.1	7.2
Return on equity, %	-	-	8.6	4.7	4.2
Value creation, SEKm	389	175	-230	-520	-1,040

1) Basic, based on average number of shares excluding shares owned by Electrolux, see page 11.

For definitions, see page 19.

Net sales by business area

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Consumer Durables, Europe	9,935	10,500	20,110	21,025	44,342
Consumer Durables, North America	9,848	8,214	18,992	15,489	32,801
Consumer Durables, Latin America	3,326	2,548	5,951	4,952	10,970
Consumer Durables, Asia/Pacific and Rest of world	2,521	2,369	4,666	4,597	9,196
Professional Products	1,850	1,944	3,577	3,697	7,427
Other	2	12	4	20	56
Total	27,482	25,587	53,300	49,780	104,792

Operating income by business area

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Consumer Durables, Europe	257	294	382	102	-22
Margin, %	2.6	2.8	1.9	0.5	0.0
Consumer Durables, North America	498	113	321	-41	222
Margin, %	5.1	1.4	1.7	-0.3	0.7
Consumer Durables, Latin America	142	133	192	289	715
Margin, %	4.3	5.2	3.2	5.8	6.5
Consumer Durables, Asia/Pacific and Rest of world	104	147	164	252	369
Margin, %	4.1	6.2	3.5	5.5	4.0
Professional Products	165	225	270	408	774
Margin, %	8.9	11.6	7.5	11.0	10.4
Total business areas	1,166	912	1,329	1,010	2,058
Margin, %	4.2	3.6	2.5	2.0	2.0
Common Group costs, etc.	-139	-119	-264	-256	-515
Items affecting comparability	25	-539	-399	-505	-355
Operating income	1,052	254	666	249	1,188

Change in net sales by business area

Year-over-year, %	Q2 2009	Q2 2009 in comparable currencies	First half 2009	First half 2009 in comparable currencies
Consumer Durables, Europe	-5.4	-15.2	-4.4	-14.1
Consumer Durables, North America	19.9	-7.8	22.6	-4.5
Consumer Durables, Latin America	30.5	23.3	20.2	13.1
Consumer Durables, Asia/Pacific and Rest of world	6.4	-5.4	1.5	-9.1
Professional Products	-4.8	-16.5	-3.2	-14.9
Total change	7.4	-8.4	7.1	-8.0

Change in operating income by business area

Year-over-year, %	Q2 2009	Q2 2009 in comparable currencies	First half 2009	First half 2009 in comparable currencies
Consumer Durables, Europe	-12.6	12.7	274.5	516.1
Consumer Durables, North America	340.7	238.8	882.9	846.5
Consumer Durables, Latin America	6.8	-3.4	-33.6	-38.9
Consumer Durables, Asia/Pacific and Rest of world	-29.3	-27.3	-34.9	-31.4
Professional Products	-26.7	-34.8	-33.8	-41.0
Total change, excluding items affecting comparability	29.5	31.0	41.2	42.6

Exchange rates

SEK	June 30, 2009	June 30, 2008	Dec. 31, 2008
AUD, average	5.76	5.67	5,56
AUD, end of period	6.24	5.77	5,34
CAD, average	6.72	6.15	6,21
CAD, end of period	6.66	5.93	6,26
EUR, average	10.89	9.40	9.67
EUR, end of period	10.84	9.45	10.93
GBP, average	12.08	12.18	12.11
GBP, end of period	12.74	11.93	11.19
USD, average	8.08	6.13	6.59
USD, end of period	7.67	5.98	7.70

Net sales and income per quarter

SEKm		Q1	Q2	Q3	Q4	Full year
Net sales	2009	25,818	27,482			53,300
	2008	24,193	25,587	26,349	28,663	104,792
Operating income	2009	-386	1,052			666
	Margin, %	-1.5	3.8			1.2
	2009¹)	38	1,027			1,065
	Margin, %	0.1	3.7			2.0
	2008	-5	254	1,286	-347	1,188
	Margin, %	0.0	1.0	4.9	-1.2	1.1
	2008¹)	-39	793	1,178	-389	1,543
	Margin, %	-0.2	3.1	4.5	-1.4	1.5
Income after financial items	2009	-493	932			439
	Margin, %	-1.9	3.4			0.8
	2009¹)	-69	907			838
	Margin, %	-0.3	3.3			1.6
	2008	-149	140	1,192	-530	653
	Margin, %	-0.6	0.5	4.5	-1.8	0.6
	2008¹)	-183	679	1,084	-572	1,008
	Margin, %	-0.8	2.7	4.1	-2.0	1.0
Income for the period	2009	-346	658			312
	2008	-106	99	847	-474	366
Earnings per share, SEK ²)	2009	-1.22	2.32			1.10
	2009¹)	0.21	2.23			2.44
	2008	-0.38	0.36	2.99	-1.68	1.29
	2008¹)	-0.50	1.74	2.90	-1.82	2.32
Value creation	2009	-619	389			-230
	2008	-695	175	532	-1,052	-1,040

1) Excluding items affecting comparability.

2) Basic, based on average number of shares, excluding shares owned by Electrolux.

Number of shares, basic

Number of shares after buy-backs, million	2009	283.6	284.1
	2008	283.4	283.6	283.6	283.6	283.6
Average number of shares after buy-backs, million	2009	283.6	283.9
	2008	282.1	283.5	283.6	283.6	283.1
Items affecting comparability
Restructuring provisions, write-downs and capital	2009	-424	25			-399
loss on divestment, SEKm	2008	34	-539	108	42	-355

Net sales by business area per quarter

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables, Europe	2009	10,175	9,935			20,110
	2008	10,525	10,500	11,345	11,972	44,342
Consumer Durables, North America	2009	9,144	9,848			18,992
	2008	7,275	8,214	8,384	8,928	32,801
Consumer Durables, Latin America	2009	2,625	3,326			5,951
	2008	2,404	2,548	2,713	3,305	10,970
Consumer Durables, Asia/Pacific and Rest of world	2009	2,145	2,521			4,666
	2008	2,228	2,369	2,190	2,409	9,196
Professional Products	2009	1,727	1,850			3,577
	2008	1,753	1,944	1,709	2,021	7,427

Operating income by business area per quarter

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables, Europe	2009	125	257			382
	Margin, %	1.2	2.6			1.9
	2008	-192	294	514	-638	-22
	Margin, %	-1.8	2.8	4.5	-5.3	0.0
Consumer Durables, North America	2009	-177	498			321
	Margin, %	-1.9	5.1			1.7
	2008	-154	113	306	-43	222
	Margin, %	-2.1	1.4	3.6	-0.5	0.7
Consumer Durables, Latin America	2009	50	142			192
	Margin, %	1.9	4.3			3.2
	2008	156	133	182	244	715
	Margin, %	6.5	5.2	6.7	7.4	6.5
Consumer Durables, Asia/Pacific and Rest of world	2009	60	104			164
	Margin, %	2.8	4.1			3.5
	2008	105	147	101	16	369
	Margin, %	4.7	6.2	4.6	0.7	4.0
Professional Products	2009	105	165			270
	Margin, %	6.1	8.9			7.5
	2008	183	225	185	181	774
	Margin, %	10.4	11.6	10.8	9.0	10.4
Common Group costs, etc.	2009	-125	-139			-264
	2008	-137	-119	-110	-149	-515
Items affecting comparability	2009	-424	25			-399
	2008	34	-539	108	42	-355

Net assets by business area

	Assets				Equity and liabilities			Net assets
SEKm	June 30, 2009	June 30, 2008	Dec. 31, 2008	June 30, 2009	June 30, 2008	Dec. 31, 2008	June 30, 2009	June 30, 2008	Dec. 31, 2008
Consumer Durables, Europe	32,488	33,992	28,345	25,194	24,667	21,104	7,294	9,325	7,241
Consumer Durables, North America	12,775	10,694	15,422	5,742	4,269	7,089	7,033	6,425	8,333
Consumer Durables, Latin America	6,263	4,526	6,536	2,414	1,698	2,971	3,849	2,828	3,565
Consumer Durables, Asia/Pacific and Rest of world	4,250	3,907	4,885	1,835	1,488	2,169	2,415	2,419	2,716
Professional Products	3,130	3,179	3,720	1,956	2,028	2,393	1,174	1,151	1,327
Other1)	4,937	3,996	4,937	6,375	5,620	6,595	-1,438	-1,624	-1,658
Items affecting comparability	-195	52	87	697	1,002	670	-892	-950	-583
Total operating assets and liabilities	63,648	60,346	63,932	44,213	40,772	42,991	19,435	19,574	20,941
Liquid funds	12,886	6,424	9,391	—	—	—	—	—	—
Interest-bearing receivables	—	—	—	—	—	—	—	—	—
Interest-bearing liabilities	—	—	—	15,083	11,641	13,947	—	—	—
Equity	—	—	—	17,238	14,357	16,385	—	—	—
Total	76,534	66,770	73,323	76,534	66,770	73,323	—	—	—

1) Includes common Group services.

Parent Company, income statement

SEKm	Q2 2009	Q2 2008	First half 2009	First half 2008	Full year 2008
Net sales	1,187	1,352	2,421	2,729	5,808
Cost of goods sold	-977	-1,276	-2,043	-2,535	-5,046
Gross operating income	210	76	378	194	762
Selling expenses	-141	-172	-309	-323	-761
Administrative expenses	-22	-57	-125	-245	-312
Other operating income	0	20	3	70	33
Other operating expenses	-6	-6	-7	-9	-328
Operating income	41	-139	-60	-313	-606
Financial income	879	901	1,190	1,153	2,643
Financial expenses	-154	-165	-151	-485	-1,462
Financial items, net	725	736	1,039	668	1,181
Income after financial items	766	597	979	355	575
Appropriations	6	3	13	7	20
Income before taxes	772	600	992	362	595
Taxes	13	14	17	27	38
Income for the period	785	614	1,009	389	633

Parent Company, balance sheet

SEKm	June 30, 2009	June 30, 2008	Dec. 31, 2008
Assets
Non-current assets	27,335	25,604	26,493
Current assets	21,930	15,452	20,348
Total assets	49,265	41,056	46,841
Equity and liabilities
Restricted equity	4,562	4,562	4,562
Non-restricted equity	10,268	8,884	9,110
Total equity	14,830	13,446	13,672
Untaxed reserves	691	717	704
Provisions	605	535	618
Non-current liabilities	9,941	8,077	9,244
Current liabilities	23,198	18,281	22,603
Total equity and liabilities	49,265	41,056	46,841
Pledged assets	6	14	36
Contingent liabilities	1,862	1,357	1,720

Five-year review

					Including Husqvarna
	2008	2007	2006	2005	2005	2004¹ )
Net sales, SEKm	104,792	104,732	103,848	100,701	129,469	120,651
Operating income, SEKm	1,188	4,475	4,033	1,044	3,942	4,807
Margin, %	1.1	4.3	3.9	1.0	3.0	4.0
Margin, excluding items affecting comparability, %	1.5	4.6	4.4	4.0	5.4	5.6
Income after financial items, SEKm	653	4,035	3,825	494	3,215	4,452
Margin, %	0.6	3.9	3.7	0.5	2.5	3.7
Margin, excluding items affecting comparability, %	1.0	4.2	4.2	3.4	4.8	5.3
Income for the period, SEKm	366	2,925	2,648	-142	1,763	3,259
Earnings per share, SEK	1.29	10.41	9.17	-0.49	6.05	10.92
Average number of shares after buy-backs, million	283.1	281.0	288.8	291.4	291.4	298.3
Dividend, SEK	-	4.25	4.00	7.50	7.50	7.00
Value creation, SEKm	-1,040	2,053	2,202	1,305	2,913	3,054
Return on equity, %	2.4	20.3	18.7	-	7.0	13.1
Return on net assets, %	5.8	21.7	23.2	5.4	13.0	17.5
Net debt/equity ratio	0.28	0.29	-0.02	-	0.11	0.05
Capital expenditure, SEKm	3,158	3,430	3,152	3,654	4,765	4,515
Average number of employees	55,177	56,898	55,471	57,842	69,523	72,382

1) Restated to comply with IFRS, except for IAS 39. If IAS 39 had been applied in 2004, the volatility in income,

net borrowings and equity would most probably have been higher.

Definitions

Capital indicators

Annualized sales

In computation of key ratios where capital is related to net sales, the latter are annualized and converted at year-end-exchange rates and adjusted for acquired and divested operations.

Net assets

Total assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities, non-interest-bearing provisions and deferred tax liabilities.

Working capital

Current assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities and non-interest-bearing provisions.

Net borrowings Total borrowings less liquid funds.

Net debt/equity ratio Net borrowings in relation to equity.

Equity/assets ratio Equity as a percentage of total assets less liquid funds.

Other key ratios

Earnings per share Income for the period divided by the average number of shares after buy-backs.

Operating margin

Operating income expressed as a percentage of net sales.

EBITDA

Operating income before depreciation and amortization.

Value creation

Operating income excluding items affecting comparability less the weighted average cost of capital (WACC) on average net assets excluding items affecting comparability: [(Net sales – operating costs = operating income) – (WACC x average net assets)]. The WACC rate before tax for 2009, 2008 and 2007 is calculated at 12% compared to 11% for 2006, 12% for 2005 and 2004.

Return on equity

Income for the period expressed as a percentage of average equity.

Return on net assets

Operating income expressed as a percentage of average net assets.

President and CEO Hans Stråberg's comments on the second quarter results 2009

Today's press release is available on the Electrolux website www.electrolux.com/ir

Telephone conference

A telephone conference will be held at 15.00-16.00 CET on July 16, 2009. The conference will be chaired by Hans Stråberg, President and CEO of Electrolux. Mr. Stråberg will be accompanied by Jonas Samuelson, CFO, and Peter Nyquist, Head of Investor Relations and Financial Information.

A slide presentation for the second quarter of 2009 will be available on the Electrolux website www.electrolux.com/ir

Details for participation by telephone: Participants in Sweden should call +46 (0)8 505 598 53 Participants in UK/Europe should call +44 (0)20 3043 2436 Participants in US should call +1 866 458 4087

You can also listen to the presentation at http://www.electrolux.com/webcast1

For further information

Peter Nyquist, Head of Investor Relations and Financial Information: +46 (0)8 738 60 03.

Financial information from Electrolux is also available at www.electrolux.com/ir

Factors affecting forward-looking statements

This report contains "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following; consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the success in developing new products and marketing initiatives, developments in product liability litigation, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals.

Calendar 2009

Financial reports 2009 Interim report January–September October 26

Electrolux discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 CET on July 16, 2009.