Electrolux — Interim / Quarterly Report 2010

Jul 19, 2010

Interim report January - June 2010

Stockholm, July 19, 2010

Highlights of the second quarter of 2010

• • Net sales amounted to SEK 27,311m (27,482) and income for the period was SEK 1,028m (658), or SEK 3.61 (2.32) per share.
• • Net sales increased by 2.8% in comparable currencies, due to higher sales volumes.
• • Operating income amounted to SEK 1,477m (1,027), corresponding to a margin of 5.4% (3.7), excluding items affecting comparability.
• • Operating margin for the past 12-month period reached 6.5%, excluding items affecting comparability.
• • Operating income improved across all business areas, in comparable currencies.
• • Higher volumes and product mix improvements had a positive effect on income.
• • Higher costs for raw materials and increased marketing spend had a negative impact on operating income.
• • Solid cash flow in the quarter.
• • The US market continued to recover during the quarter.
• • The overall European market stabilized, but demand weakened in Southern Europe at the end of the quarter.

SEKm	Q2 2010	Q2 2009	Change %	First half 2010	First half 2009	Change %
Net sales	27,311	27,482	-1	52,444	53,300	-2
Operating income	1,270	1,052	21	2,501	666	276
Margin, %	4.7	3.8		4.8	1.2
Income after financial items	1,269	932	36	2,480	439	465
Income for the period	1,028	658	56	1,939	312	521
Earnings per share, SEK1)	3.61	2.32		6.81	1.10
Return on net assets, %	-	-		25.3	6.4
Excluding items affecting comparability
Items affecting comparability	-207	25		-302	-399
Operating income	1,477	1,027	44	2,803	1,065	163
Margin, %	5.4	3.7		5.3	2.0
Income after financial items	1,476	907	63	2,782	838	232
Income for the period	1,173	633	85	2,154	693	211
Earnings per share, SEK1)	4.12	2.23		7.57	2.44
Return on net assets, %	-	-		26.5	9.9

1) Basic, based on an average of 284.6 (283.9) million shares for the second quarter and 284.5 (283.8) million shares for the first half of 2010, excluding shares held by Electrolux.

For earnings per share after dilution, see page 11.

For definitions, see page 20.

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
Structural changes	7

Financial statements 11

Net sales and income

Second quarter of 2010

Net sales for the Electrolux Group in the second quarter of 2010 amounted to SEK 27,311m (27,482). Higher sales volumes due to strong sales growth in North America, Asia/Pacific and Latin America had a positive impact on sales, while changes in exchange rates had a negative impact. Net sales increased by 2.8% in comparable currencies.

Change in net sales

%	Q2 2010	First half 2010
Changes in exchange rates	-3.4	-5.1
Changes in volume/price/mix	2.8	3.5
Total	-0.6	-1.6

Operating income

Operating income for the second quarter of 2010 increased to SEK 1,270m (1,052) and income after financial items to SEK 1,269m (932). A positive mix development, increased volumes, previous restructuring and cost-saving initiatives contributed to the improvement in income. Income for the period amounted to SEK 1,028m (658), corresponding to SEK 3.61 (2.32) in earnings per share.

Items affecting comparability

Operating income for the second quarter of 2010 includes items affecting comparability in the amount of SEK -207m (25), referring to restructuring provisions related to efficiency improvements within manufacturing in Europe, see page 7 and table on page 11. Excluding items affecting comparability, operating income amounted to SEK 1,477m (1,027).

Effects of changes in exchange rates

Changes in exchange rates compared to the previous year, including translation, transaction effects and hedging contracts, had a positive impact of approximately SEK 220m on operating income for the second quarter of 2010, compared to the same period in the previous year. Transaction effects amounted to approximately SEK 100m. Translation of income statements in subsidiaries had an impact of approximately SEK -70m. In addition, results from hedging contracts had a positive effect of approximately SEK 190m on operating income compared to the previous year and amounted to SEK -90m (-280).

Financial net

Net financial items for the second quarter of 2010 decreased to SEK -1m, compared to SEK -120m for the corresponding period in the previous year. The improvement is mainly due to lower interest rates on borrowings and lower net borrowings.

First half of 2010

Net sales for the Electrolux Group in the first half of 2010 amounted to SEK 52,444m, as against SEK 53,300m in the previous year. In comparable currencies, net sales increased by 3.5%.

Operating income

Operating income for the first half of 2010 increased to SEK 2,501m (666) and income after financial items to SEK 2,480m (439). Income for the period increased to SEK 1,939m (312), corresponding to SEK 6.81 (1.10) 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.

Items affecting comparability

Operating income for the first half of 2010 includes items affecting comparability in the amount of SEK -302m (-399), see table on page 11. Excluding items affecting comparability, operating income for the first half of 2010 increased to SEK 2,803m (1,065) and income after financial items to SEK 2,782m (838). Income for the period was SEK 2,154m (693), corresponding to SEK 7.57 (2.44) in earnings per share.

Effects of changes in exchange rates

Changes in exchange rates compared to the previous year, including both translation, transaction effects and hedging contracts, had an impact of approximately SEK 560m on operating income for the first half of 2010. Transaction effects amounted to approximately SEK 500m, and referred mainly to the strengthening of the Australian dollar and the Brazilian real against the US dollar as well as to the weakening of the Euro against several other currencies. Translation of income statements in subsidiaries had an effect of approximately SEK -80m. In addition, results from hedging contracts had a positive effect of approximately SEK 140m on operating income compared to the previous year and amounted to SEK -150m (-290) for the first half of 2010.

Financial net

Net financial items for the first half of 2010 decreased to SEK -21m, compared to SEK -227m for the corresponding period in the previous year. The improvement is mainly due to lower interest rates on borrowings and lower net borrowings.

Asia/Pacific, 8%

Professional Products, 6%

* Excluding items affecting comparability.

Market overview

Electrolux main markets continued to recover during the second quarter of 2010. The North American market rose for the third consecutive quarter following thirteen quarters of decline. Industry shipments of core appliances in the US in the second quarter is estimated to have increased by approximately 10%.

The overall European market stabilized during the quarter, with important markets, such as Germany, France and Sweden showing positive trends. However, markets in Southern Europe weakened substantially at the end of the quarter. Demand in Eastern Europe increased somewhat.

The market in Brazil slowed down in the second quarter following the discontinuation of tax credits for domestically-produced appliances.

Looking ahead, market demand for appliances in the Group's main markets is expected to show growth during 2010.

Business areas

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

Consumer Durables Europe, Middle East and Africa

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	9,349	10,452	19,068	21,020	44,073
Operating income	504	300	1,124	460	2,349
Operating margin, %	5.4	2.9	5.9	2.2	5.3

Industry shipments of core appliances in Europe

Units, year-over-year, %	Q2 2010	First half 2010
Western Europe	0	1
Eastern Europe (excluding Turkey)	1	-4
Total Europe	0	0

Core appliances

Market demand for appliances in Europe continued to stabilize during the second quarter of 2010, and was at the same level as in the second quarter of last year. This was the second consecutive quarter that the market has shown stabilization, after ten quarters of decline. Demand in Western Europe was unchanged, while Eastern Europe showed an increase, primarily on the basis of higher demand in Russia. Following a weak trend at the start of the year, the market in Northern Europe stabilized, while Southern Europe showed a significant decline during the latter part of the second quarter. Total

Consumer Durables Europe, Middle East and Africa Industry shipments of core appliances in Europe*

demand increased, although from a very low level in major Electrolux markets such as Germany, France and Sweden.

Group sales continued to decline during the second quarter primarily as a result of lost volumes as Quelle of Germany, one of the Group's major retailers, went into bankruptcy at the end of 2009. At the same time, sales volumes of Electrolux-branded products showed a positive trend. The Group's position for built-in products has been reinforced. In some markets, price pressure has gradually increased during the quarter.

Operating income for the second quarter showed a substantial improvement in comparison with the same quarter in 2009, mainly on the basis of a positive trend for product mix. Higher sales of built-in products, particularly in the German market and a higher proportion of sales in the central regions of Europe, contributed to the improvement in product mix. In addition, previously implemented personnel cutbacks and cost-savings continued to have a positive impact on operating income, which was, however, adversely affected by increased outlays for marketing and brand investments.

Floor-care products

Demand for vacuum cleaners in Europe continued to weaken during the second quarter of 2010.

Group sales declined as a result of lower sales volumes of products in the low-price segment. Sales of premium products rose, however. Operating income was higher, mainly on the basis of an improved product mix. The improvement in mix is traceable to previous launches of products in the premium segment, such as the vacuum cleaner UltraOne.

Consumer Durables North America

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	10,027	9,848	18,022	18,992	35,726
Operating income	458	498	818	321	1,476
Operating margin, %	4.6	5.1	4.5	1.7	4.1

Industry shipments of core appliances in the US

Units, year-over-year, %	Q2 2010*	First half 2010*
Core appliances	10	8
Major appliances	8	3

*Preliminary figures

Core appliances

Market demand for appliances in North America has continued to increase. Demand is estimated to have increased by approximately 10% during the second quarter compared to the corresponding period of 2009. This is mainly due to the US government rebate program to stimulate sales of energy-efficient products. This is the third quarter in a row that the North American market has increased, after more than three years of decline.

Group sales rose in comparable currencies during the second quarter in comparison with the corresponding period of last year, mainly as a result of higher sales volumes and an improved mix.

Operating income improved in comparable currencies in comparison with the second quarter of 2009, mainly on the basis of an improved product mix. Since year-end 2009, Electrolux has terminated several contracts for production under private labels, while sales under the Group's Electrolux and Frigidaire brands have grown successively, which has contributed to an improved product mix. Moreover, the warm early summer has contributed to strong sales of air-conditioners, which also had a positive impact on operating income.

EBIT EBIT margin

Launches of new products under the Frigidaire brand during the second quarter involved transition costs, as older products in inventory were sold out at temporarily discounted prices. This had an adverse effect on operating income. Costs related to the consolidation of the Group's North American headquarters to Charlotte in North Carolina have also had a negative impact on operating income. In total costs for both these activities amounted to approximately SEK - 200m. In addition increased costs for raw materials and higher brand investments also had a negative impact on income.

Floor-care products

Market demand for vacuum cleaners in North America is estimated to have declined during the second quarter in comparison with the corresponding period of last year. Group sales declined as a result of lower sales volumes. Operating income was lower, primarily because costs related to the transfer of production of central vacuum cleaners from Webster City in Iowa to Juarez in Mexico had an adverse impact on income during the second quarter. An improved product mix continued to have a positive effect on operating income.

* Units, year-over-year, %.

Consumer Durables Latin America

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	3,905	3,326	7,903	5,951	14,165
Operating income	237	142	457	192	878
Operating margin, %	6.1	4.3	5.8	3.2	6.2

Market demand for appliances in Brazil during the second quarter is estimated to have remained at the same level as in the corresponding quarter of 2009, following several quarters of strong growth. Demand stagnated mainly as a result of the discontinuation of tax credits on domestically-produced appliances.

Electrolux sales volumes in Brazil increased in the second quarter of 2010. Demand in most other markets in Latin America continued to show strong growth and Electrolux sales volumes increased. These markets accounted for more than 20% of Group sales in Latin America during the second quarter. The launches of new products contributed to the good sales development.

Operating income for the Latin American operations improved, mainly on the basis of higher volumes as well as more efficient production and favorable changes in exchange rates.

Consumer Durables Asia/Pacific

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	2,298	2,004	4,210	3,756	8,033
Operating income	231	61	391	86	458
Operating margin, %	10.1	3.0	9.3	2.3	5.7

Australia and New Zealand

Demand for appliances in Australia continued to weaken during the second quarter of 2010, primarily as a result of the discontinuation of previous government stimulus measures. Market demand is estimated to have declined by approximately 7% in comparison with the corresponding period of last year.

Group sales declined as a result of lower volumes, but market shares were maintained. Operating income improved substantially on the basis of an improved product mix, higher cost-efficiency and changes in exchange rates.

Southeast Asia and China

Market demand in Southeast Asia and China is estimated to have continued to show strong growth in the second quarter of 2010 in comparison with the corresponding period in 2009.

Electrolux sales in the markets in Southeast Asia and China showed strong growth. The Group continued to gain market shares. Operations in Southeast Asia continued to show good profitability.

The Group's performance in China was positively affected by previously implemented restructuring and the ongoing repositioning of the Electrolux brand.

Professional Products

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	1,730	1,850	3,231	3,577	7,129
Operating income	207	165	298	270	668
Operating margin, %	12.0	8.9	9.2	7.5	9.4

Market demand for food-service equipment is estimated to have stabilized somewhat during the second quarter of 2010 in comparison with the corresponding period of last year.

Group sales of food-service equipment remained at the same level as last year in comparable currencies. Downward pressure on market prices were offset by higher volumes and an improved mix. Operating income improved on the basis of a positive trend for the product mix and lower costs for raw materials.

Demand in the market for professional laundry equipment is estimated to have stabilized somewhat during the second quarter, although from a very low level. Electrolux sales were at the same level as in the corresponding period in 2009 in comparable currencies. Operating income rose on the basis of higher cost-efficiency, price increases, higher sales of spare parts, and improved product and customer mixes.

Cash flow

Cash flow from operations and investments for the second quarter of 2010 amounted to SEK 2,821m (3,507).

The strong cash flow was generated by income from operations as well as changes in operating assets and liabilities. Seasonal build-up of inventories for the normally stronger second half of the year and improved markets in North America and Latin America had an impact on cash flow in the quarter. The Groups ongoing structural efforts to reduce tied up capital also contributed to the strong cash flow in the quarter. Improved payment terms had a positive effect on accounts payable.

Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -130m.

Investments during the second quarter of 2010 increased from a low level in the previous year and referred mainly to investments in new products.

The dividend payment for 2009 of SEK 1,138m was paid to the shareholders in the quarter.

Cash flow			First half	First half
SEKm	Q2 2010	Q2 2009	2010	2009
Cash flow from operations, excluding change in operating assets and liabilities	2,069	1,266	4,206	1,596
Change in operating assets and liabilities	1,773	2,810	427	3,119
Investments	-1,021	-569	-1,699	-1,273
Cash flow from operations and investments	2,821	3,507	2,934	3,442
Dividend	-1,138	0	-1,138	0
Sale of shares	15	45	18	45
Total cash flow, excluding change in loans and short term investments	1,698	3,552	1,814	3,487

Financial position

Total equity as of June 30, 2010, amounted to SEK 19,708m (17,238), which corresponds to SEK 69.23 (60.67) per share.

Net borrowings

SEKm	June 30, 2010	June 30, 2009	Dec. 31, 2009
Borrowings	12,178	15,083	14,022
Liquid funds	12,674	12,886	13,357
Net borrowings	-496	2,197	665
Net debt/equity ratio	-0.03	0.13	0.04
Equity	19,708	17,238	18,841
Equity per share, SEK	69.23	60.67	66.24
Return on equity, %	20.5	3.9	14.9
Return on equity, excluding items affecting comparability, %	22.7	8.6	22.0
Equity/assets ratio, %	31.5	27.1	31.8

Net borrowings

Net borrowings amounted to SEK -496m (2,197). The net debt/ equity ratio was -0.03 (0.13). The equity/assets ratio was 31.5% (27.1).

During the first half of 2010, SEK 1,023m of long-term borrowings were amortized. Long-term borrowings as of June 30, 2010, including long-term borrowings with maturities within 12 months, amounted to SEK 10,049m with average maturities of 3.7 years, compared to SEK 10,241m and 3.9 years at the end of 2009. During 2010 and 2011, long-term borrowings in the amount of approximately SEK 1,300m will mature.

Liquid funds as of June 30, 2010, excluding a committed unused revolving credit facility of EUR 500m, amounted to SEK 12,674m.

Net assets and working capital

Average net assets for the period amounted to SEK 19,751m (20,690). Net assets as of June 30, 2010, amounted to SEK 19,212m (19,435).

Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 21,165m (21,578), corresponding to 20.2% (20.2) of net sales.

Working capital as of June 30, 2010, amounted to SEK -5,664m (-6,622), corresponding to -5.1% (-6.0) of annualized net sales.

The return on net assets was 25.3% (6.4), and 26.5% (9.9), excluding items affecting comparability.

Cash flow from operations and investments

Cash flow and change in net borrowings

Structural changes

April 2010

Improving efficiency in appliances plants in Italy and France As previously announced, Electrolux restructuring work continues in Europe. Efficiency at the washing-machine plant in Revin, France, and at the cooker plant in Forli, Italy, will be improved. Costs for efficiency measures in the amount of SEK 207m were charged against operating income, within items affecting comparability for the second quarter of 2010, see page 11.

Other items

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, 2010, the Group had a total of 2,891 (2,776) cases pending, representing approximately 3,180 (approximately 3,120) plaintiffs. During the second quarter 2010, 163 new cases with 163 plaintiffs were filed and 112 pending cases with approximately 114 plaintiffs were resolved. Approximately 37 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.

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., interest 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

Relocation of production, items affecting comparability, restructuring measures 2007–2011

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)
Scandicci	Italy	Refrigerators	(Q2 2009)
St. Petersburg	Russia	Washing machines	(Q2 2010)
Re-engineering			Effected
Porcia	Italy	Washing machines	(Q4 2010)

Authorized closures	Estimated closure
Webster City	USA	Washing machines	(Q1 2011)
Alcalà	Spain	Washing machines	(Q1 2011)
Consolidation			Starting
Charlotte	USA	New North American headquarter	(Q3 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 2011, 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 2010, see table on page 11.

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 2010.

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

The Group's loan-maturity profile for 2010 and 2011 represents maturities of approximately SEK 1,300m in long-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 2009, www.electrolux.com/annualreport2009.

Sensitivity analysis year-end 2009 Raw-materials exposure 2009

Risk	Change		Pre-tax earnings impact, SEKm
Raw materials
Steel	10%	+/–	900
Plastics	10%	+/–	400
Currencies¹) and interest rates
EUR/SEK	–10%	+	529
USD/SEK	–10%	+	385
BRL/SEK	–10%	-	254
AUD/SEK	–10%	-	246
GBP/SEK	–10%	-	224
Interest rate	1 percentage point	+/–	60

Carbon steel, 39% Stainless steel, 8%

• Copper and aluminum, 11%
• Plastics, 23%
• Other, 19%

In 2009, Electrolux purchased raw materials for approximately SEK 19 billion. Purchases of steel accounted for the largest cost.

1) Include translation and transaction effects.

9 Interim report January - June 2010

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 2010 amounted to SEK 2,729m (2,421), of which SEK 1,517m (1,116) referred to sales to Group companies and SEK 1,212m (1,305) to external customers. Income after financial items was SEK 2,444m (979), including dividends from subsidiaries in the amount of SEK 2,219m (688). Income for the period amounted to SEK 2,390m (1,009).

Capital expenditure in tangible and intangible assets was SEK 146m (129). Liquid funds at the end of the period amounted to SEK 4,872m, as against SEK 3,869m at the start of the year.

Undistributed earnings in the Parent Company at the end of the period amounted to SEK 14,018m, as against SEK 12,694m at the start of the year. Dividend payment to shareholders for 2009 amounted to SEK 1,138m.

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

Stockholm, July 19, 2010

Hans Stråberg President and CEO

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, 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 2009 and the description on new accounting standards above.

This report has not been audited.

Press releases 2010

January 29	Conversion of shares	April 27	Interim report January-March and CEO Hans Stråberg's comments
February 3	Consolidated results 2009 and CEO Hans Stråberg's comments		- Morten Falkenberg, head of Floor Care and Small Appliances, will leave Electrolux - Lars Göran Johansson, head of Communications and
February 10	Electrolux delists from the London Stock Exchange		Branding, will leave Electrolux
March 2	Lorna Davis proposed new Board member of Electrolux	May 12	Electrolux is named "global superstar" by Forbes Magazine
March 11	Electrolux delisted from the London Stock Exchange

The Board of Directors and the President and CEO certify that the Interim report for the period January - June 2010 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 19, 2010

Marcus Wallenberg Chairman of the Board of Directors

Peggy Bruzelius Vice Chairman of the Board of Directors

Torben Ballegaard Sørensen Lorna Davis Board member Board member

Hasse Johansson John S. Lupo Board member Board member

Johan Molin Caroline Sundewall Board member Board member

Barbara Milian Thoralfsson Hans Stråberg

Board member 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 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	27,311	27,482	52,444	53,300	109,132
Cost of goods sold	-21,308	-22,145	-40,860	-43,586	-86,980
Gross operating income	6,003	5,337	11,584	9,714	22,152
Selling expenses	-3,070	-3,093	-5,972	-6,089	-11,394
Administrative expenses	-1,468	-1,213	-2,808	-2,559	-5,375
Other operating income/expenses	12	-4	-1	-1	-61
Items affecting comparability	-207	25	-302	-399	-1,561
Operating income	1,270	1,052	2,501	666	3,761
Margin, %	4.7	3.8	4.8	1.2	3.4
Financial items, net	-1	-120	-21	-227	-277
Income after financial items	1,269	932	2,480	439	3,484
Margin, %	4.6	3.4	4.7	0.8	3.2
Taxes	-241	-274	-541	-127	-877
Income for the period	1,028	658	1,939	312	2,607
Available for sale instruments1)	1	90	29	74	138
Cash-flow hedges2)	-63	53	-99	-167	-112
Exchange differences on translation of foreign operations3)	413	123	90	585	-264
Income tax relating other comprehensive income	13	-	-5	-	-
Other comprehensive income, net of tax	364	266	15	492	-238
Total comprehensive income for the period	1,392	924	1,954	804	2,369
Income for the period attributable to:
Equity holders of the Parent Company	1,028	658	1,939	312	2,607
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	1,392	924	1,954	804	2,369
Earnings per share, SEK	3.61	2.32	6.81	1.10	9.18
Diluted, SEK	3.60	2.32	6.79	1.10	9.16
Number of shares after buy-backs, million	284.7	284.1	284.7	284.1	284.4
Average number of shares after buy-backs, million	284.6	283.9	284.5	283.8	284.0
Diluted, million	285.7	284.4	285.6	284.2	284.6

1) Available for sale instruments refer to the fair-value changes in Electrolux shareholdings in Videocon Industries Ltd., India. The shareholdings 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-rate 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.

Items affecting comparability

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Restructuring provisions and write-downs
Appliances plant in Revin, France	-71	-	-71	-	-
Appliances plant in Forli, Italy	-136	-	-136	-	-
Appliances plant in Motala, Sweden	-	-	-95	-	-
Appliances plant in Alcalà, Spain	-	-	-	-	-440
Appliances plants in Webster City and Jefferson, USA	-	-	-	-	-560
Office consolidation in USA	-	-	-	-	-218
Appliances plant in Changsha, China	-	25	-	-162	-162
Appliances plant in Porcia, Italy	-	-	-	-132	-132
Appliances plant in St. Petersburg, Russia	-	-	-	-105	-105
Reversal of unused restructuring provisions	-	-	-	-	56
Total	-207	25	-302	-399	-1,561

12 Interim report January - June 2010

Consolidated balance sheet

SEKm	June 30, 2010	June 30, 2009	Dec. 31, 2009
Assets
Property, plant and equipment	15,037	16,383	15,315
Goodwill	2,311	2,282	2,274
Other intangible assets	3,175	2,873	2,999
Investments in associates	18	19	19
Deferred tax assets	2,789	3,078	2,693
Financial assets	476	361	434
Other non-current assets	1,815	1,657	1,745
Total non-current assets	25,621	26,653	25,479
Inventories	12,607	12,290	10,050
Trade receivables	20,683	20,932	20,173
Tax assets	559	609	1,103
Derivatives	455	612	377
Other current assets	3,419	3,554	2,947
Short-term investments	1,968	1,920	3,030
Cash and cash equivalents	9,892	9,964	9,537
Total current assets	49,583	49,881	47,217
Total assets	75,204	76,534	72,696
Equity and liabilities Equity attributable to equity holders of the Parent Company
Share capital	1,545	1,545	1,545
Other paid-in capital	2,905	2,905	2,905
Other reserves	1,829	2,543	1,814
Retained earnings	13,429	10,245	12,577
Total equity	19,708	17,238	18,841
Long-term borrowings	9,304	10,702	10,241
Deferred tax liabilities	745	596	819
Provisions for post-employment benefits	1,822	6,582	2,168
Other provisions	5,748	4,301	5,449
Total non-current liabilities	17,619	22,181	18,677
Accounts payable	19,162	16,543	16,031
Tax liabilities	2,383	2,292	2,367
Short-term liabilities	11,853	11,648	11,235
Short-term borrowings	2,254	3,499	3,364
Derivatives	532	781	351
Other provisions	1,693	2,352	1,830
Total current liabilities	37,877	37,115	35,178
Total equity and liabilities	75,204	76,534	72,696
Contingent liabilities	1,318	1,471	1,185

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, 2010	9,502,275	299,418,033	24,498,841	284,421,467
Conversion of A-shares into B-shares	-494,150	494,150
Shares sold to senior managers under the stock-option programs
First quarter			-42,550	42,550
Second quarter			-201,206	201,206
Shares alloted to senior managers under the Performance Share Program			-	-
Number of shares as of June 30, 2010	9,008,125	299,912,183	24,255,085	284,665,223
As % of total number of shares			7.9%

Consolidated cash flow statement

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Operations
Operating income	1,270	1,052	2,501	666	3,761
Depreciation and amortization	849	886	1,665	1,757	3,442
Restructuring provisions	84	-261	-68	-118	434
Share-based compensation	26	4	33	4	18
Financial items paid, net	18	-181	27	-223	-348
Taxes paid	-178	-234	48	-490	-929
Cash flow from operations, excluding change in operating assets and liabilities	2,069	1,266	4,206	1,596	6,378
Change in operating assets and liabilities
Change in inventories	-1,278	529	-2,412	543	2,276
Change in trade receivables	115	-8	-420	562	1,209
Change in other current assets	-543	-184	-559	-2	487
Change in accounts payable	2,953	1,351	3,296	937	628
Extra contributions to pension funds	-	-	-	-	-3,935
Change in other operating liabilities and provisions	526	1,122	522	1,079	1,254
Cash flow from change in operating assets and liabilities	1,773	2,810	427	3,119	1,919
Cash flow from operations	3,842	4,076	4,633	4,715	8,297
Investments
Divestment of operations	-	-	-	-	4
Capital expenditure in property, plant and equipment	-765	-404	-1,203	-918	-2,223
Capitalization of product development	-110	-63	-189	-211	-370
Other	-146	-102	-307	-144	-378
Cash flow from investments	-1,021	-569	-1,699	-1,273	-2,967
Cash flow from operations and investments	2,821	3,507	2,934	3,442	5,330
Financing
Change in short-term investments	210	-864	1,062	-1,624	-2,734
Change in short-term borrowings	-1,146	-466	-1,691	-466	-1,131
New long-term borrowings	-	4	6	1,632	1,639
Amortization of long-term borrowings	-312	-12	-1,023	-524	-1,040
Dividend	-1,138	-	-1,138	-	-
Sale of shares	15	45	18	45	69
Cash flow from financing	-2,371	-1,293	-2,766	-937	-3,197
Total cash flow	450	2,214	168	2,505	2,133
Cash and cash equivalents at beginning of period	9,200	7,714	9,537	7,305	7,305
Exchange-rate differences	242	36	187	154	99
Cash and cash equivalents at end of period	9,892	9,964	9,892	9,964	9,537

Change in consolidated equity

SEKm	June 30, 2010	June 30, 2009	Dec. 31, 2009
Opening balance	18,841	16,385	16,385
Total comprehensive income for the period	1,954	804	2,369
Share-based payment	33	4	18
Sale of shares	18	45	69
Dividend payable	-1,138	-	-
Total transactions with equity holders	-1,087	49	87
Closing balance	19,708	17,238	18,841

Working capital and net assets

SEKm	June 30, 2010	% of annualized net sales	June 30, 2009	% of annualized net sales	Dec. 31, 2009	% of annualized net sales
Inventories	12,607	11.4	12,290	11.2	10,050	8.8
Trade receivables	20,683	18.7	20,932	19.0	20,173	17.7
Accounts payable	-19,162	-17.3	-16,543	-15.0	-16,031	-14.1
Provisions	-9,263		-13,235		-9,447
Prepaid and accrued income and expenses	-8,387		-8,279		-7,998
Taxes and other assets and liabilities	-2,142		-1,787		-1,901
Working capital	-5,664	-5.1	-6,622	-6.0	-5,154	-4.5
Property, plant and equipment	15,037		16,383		15,315
Goodwill	2,311		2,282		2,274
Other non-current assets	5,484		4,910		5,197
Deferred tax assets and liabilities	2,044		2,482		1,874
Net assets	19,212	17.4	19,435	17.7	19,506	17.1
Average net assets	19,751	18.8	20,690	19.4	19,411	17.8
Average net assets, excluding items affecting comparability	21,165	20.2	21,578	20.2	20,320	18.6

Key ratios

	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales, SEKm	27,311	27,482	52,444	53,300	109,132
Operating income, SEKm	1,270	1,052	2,501	666	3,761
Margin, %	4.7	3.8	4.8	1.2	3.4
EBITDA, SEKm	2,119	1,938	4,166	2,423	7,203
Earnings per share, SEK¹)	3.61	2.32	6.81	1.10	9.18
Return on net assets, %	-	-	25.3	6.4	19.4
Return on equity, %	-	-	20.5	3.9	14.9
Equity per share, SEK	-	-	69.23	60.67	66.24
Cash flow from operations, SEKm	3,842	4,076	4,633	4,715	8,297
Capital expenditure, SEKm	-765	-404	-1,203	-918	-2,223
Net borrowings, SEKm	-	-	-496	2,197	665
Net debt/equity ratio	-	-	-0.03	0.13	0.04
Equity/assets ratio, %	-	-	31.5	27.1	31.8
Average number of employees	51,181	49,507	51,371	50,349	50,633
Excluding items affecting comparability
Operating income, SEKm	1,477	1,027	2,803	1,065	5,322
Margin, %	5.4	3.7	5.3	2.0	4.9
EBITDA, SEKm	2,326	1,913	4,468	2,822	8,764
Earnings per share, SEK¹)	4.12	2.23	7.57	2.44	13.56
Return on net assets, %	-	-	26.5	9.9	26.2
Return on equity, %	-	-	22.7	8.6	22.0

1) Basic, based on average number of shares, excluding shares owned by Electrolux, see page 16.

For definitions, see page 20.

Net sales by business area*

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Consumer Durables Europe, Middle East and Africa	9,349	10,452	19,068	21,020	44,073
Consumer Durables North America	10,027	9,848	18,022	18,992	35,726
Consumer Durables Latin America	3,905	3,326	7,903	5,951	14,165
Consumer Durables Asia/Pacific	2,298	2,004	4,210	3,756	8,033
Professional Products	1,730	1,850	3,231	3,577	7,129
Other	2	2	10	4	6
Total	27,311	27,482	52,444	53,300	109,132

Operating income by business area*

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Consumer Durables Europe, Middle East and Africa	504	300	1,124	460	2,349
Margin, %	5.4	2.9	5.9	2.2	5.3
Consumer Durables North America	458	498	818	321	1,476
Margin, %	4.6	5.1	4.5	1.7	4.1
Consumer Durables Latin America	237	142	457	192	878
Margin, %	6.1	4.3	5.8	3.2	6.2
Consumer Durables Asia/Pacific	231	61	391	86	458
Margin, %	10.1	3.0	9.3	2.3	5.7
Professional Products	207	165	298	270	668
Margin, %	12.0	8.9	9.2	7.5	9.4
Total business areas	1,637	1,166	3,088	1,329	5,829
Margin, %	6.0	4.2	5.9	2.5	5.3
Common Group costs, etc.	-160	-139	-285	-264	-507
Items affecting comparability	-207	25	-302	-399	-1,561
Operating income	1,270	1,052	2,501	666	3,761

* Figures for 2009 have been restated according to the new reporting structure, see page 17.

Change in net sales by business area

Year-over-year, %	Q2 2010	Q2 2010 in comparable currencies	First half 2010	First half 2010 in comparable currencies
Consumer Durables Europe, Middle East and Africa	-10.6	-3.1	-9.3	-2.2
Consumer Durables North America	1.8	6.0	-5.1	2.8
Consumer Durables Latin America	17.4	8.3	32.8	24.9
Consumer Durables Asia/Pacific	14.7	9.8	12.1	6.2
Professional Products	-6.5	0.4	-9.7	-2.9
Total change	-0.6	2.8	-1.6	3.5

Change in operating income by business area

Year-over-year, %	Q2 2010	Q2 2010 in comparable currencies	First half 2010	First half 2010 in comparable currencies
Consumer Durables Europe, Middle East and Africa	68.0	63.6	144.3	153.2
Consumer Durables North America	-8.0	0.9	154.8	158.9
Consumer Durables Latin America	66.9	90.2	138.0	259.8
Consumer Durables Asia/Pacific	278.7	225.7	354.7	231.4
Professional Products	25.5	36.8	10.4	18.7
Total change, excluding items affecting comparability	43.8	53.6	163.2	185.1

Exchange rates

SEK	June 30, 2010	June 30, 2009	Dec. 31, 2009
AUD, average	6.56	5.76	5.98
AUD, end of period	6.62	6.24	6.43
BRL, average	4.11	3.93	3.80
BRL, end of period	4.30	3.67	4.13
CAD, average	7.09	6.72	6.68
CAD, end of period	7.40	6.66	6.86
EUR, average	9.82	10.89	10.63
EUR, end of period	9.51	10.84	10.33
GBP, average	11.30	12.08	11.84
GBP, end of period	11.63	12.74	11.41
HUF, average	0.0361	0.0397	0.0380
HUF, end of period	0.0333	0.0397	0.0379
USD, average	7.38	8.08	7.63
USD, end of period	7.75	7.67	7.19

Net sales and income per quarter

SEKm		Q1	Q2	Q3	Q4	Full year
Net sales	2010	25,133	27,311			52,444
	2009	25,818	27,482	27,617	28,215	109,132
Operating income	2010	1,231	1,270			2,501
	Margin, %	4.9	4.7			4.8
	2010¹)	1,326	1,477			2,803
	Margin, %	5.3	5.4			5.3
	2009	-386	1,052	2,290	805	3,761
	Margin, %	-1.5	3.8	8.3	2.9	3.4
	2009¹)	38	1,027	2,234	2,023	5,322
	Margin, %	0.1	3.7	8.1	7.2	4.9
Income after financial items	2010	1,211	1,269			2,480
	Margin, %	4.8	4.6			4.7
	2010¹)	1,306	1,476			2,782
	Margin, %	5.2	5.4			5.3
	2009	-493	932	2,244	801	3,484
	Margin, %	-1.9	3.4	8.1	2.8	3.2
	2009¹)	-69	907	2,188	2,019	5,045
	Margin, %	-0.3	3.3	7.9	7.2	4.6
Income for the period	2010	911	1,028			1,939
	2009	-346	658	1,631	664	2,607
Earnings per share, SEK ²)	2010	3.20	3.61			6.81
	2010¹)	3.45	4.12			7.57
	2009	-1.22	2.32	5.74	2.34	9.18
	2009¹)	0.21	2.23	5.55	5.57	13.56

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	2010	284.5	284.7			284.5
	2009	283.6	284.1	284.3	284.4	284.4
Average number of shares after buy-backs, million	2010	284.5	284.6			284.5
	2009	283.6	283.9	284.2	284.4	284.0
Items affecting comparability
Restructuring provisions, write-downs and capital	2010	-95	-207			-302
loss on divestment, SEKm	2009	-424	25	56	-1,218	-1,561

Net sales by business area per quarter*

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables Europe, Middle East and Africa	2010	9,719	9,349			19,068
	2009	10,568	10,452	11,322	11,731	44,073
Consumer Durables North America	2010	7,995	10,027			18,022
	2009	9,144	9,848	8,869	7,865	35,726
Consumer Durables Latin America	2010	3,998	3,905			7,903
	2009	2,625	3,326	3,813	4,401	14,165
Consumer Durables Asia/Pacific	2010	1,912	2,298			4,210
	2009	1,752	2,004	1,982	2,295	8,033
Professional Products	2010	1,501	1,730			3,231
	2009	1,727	1,850	1,629	1,923	7,129

Operating income by business area per quarter*

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables Europe, Middle East and Africa	2010	620	504			1,124
	Margin, %	6.4	5.4			5.9
	2009	160	300	1,014	875	2,349
	Margin, %	1.5	2.9	9.0	7.5	5.3
Consumer Durables North America	2010	360	458			818
	Margin, %	4.5	4.6			4.5
	2009	-177	498	705	450	1,476
	Margin, %	-1.9	5.1	7.9	5.7	4.1
Consumer Durables Latin America	2010	220	237			457
	Margin, %	5.5	6.1			5.8
	2009	50	142	318	368	878
	Margin, %	1.9	4.3	8.3	8.4	6.2
Consumer Durables Asia/Pacific	2010	160	231			391
	Margin, %	8.4	10.1			9.3
	2009	25	61	164	208	458
	Margin, %	1.4	3.0	8.3	9.1	5.7
Professional Products	2010	91	207			298
	Margin, %	6.1	12.0			9.2
	2009	105	165	173	225	668
	Margin, %	6.1	8.9	10.6	11.7	9.4
Common Group costs, etc.	2010	-125	-160			-285
	2009	-125	-139	-140	-103	-507
Items affecting comparability	2010	-95	-207			-302
	2009	-424	25	56	-1,218	-1,561

* As of the first quarter of 2010, the operations within "Rest of world" – i.e., the Middle East and Africa – is reported within Consumer Durables Europe. Operations in the Middle East and Africa were previously part of the business area Consumer Durables Asia/Pacific and Rest of world. The new reporting structure reflects an organizational change as of 2010, with Major Appliances Europe responsible for the Middle East and Africa. For previous reporting structure, see table below.

Previous reporting structure

Q4 2009	Q3	Q2	Q1		SEKm
11,285 42,300	10,905	9,935	10,175	Net sales	Consumer Durables Europe
829 2,188	977	257	125	Operating income
7.3 5.2	9.0	2.6	1.2	Margin, %
2,741 9,806	2,399	2,521	2,145	Net sales	Consumer Durables Asia/Pacific and Rest of world
254 619	201	104	60	Operating income
9.3 6.3	8.4	4.1	2.8	Margin, %

Net assets by business area1)

		Assets			Equity and liabilities	Net assets
SEKm	June 30, 2010	June 30, 2009	Dec. 31, 2009	June 30, 2010	June 30, 2009	Dec. 31, 2009	June 30, 2010	June 30, 2009	Dec. 31, 2009
Consumer Durables, Europe Middle East and Africa	29,819	32,488	34,164	21,984	25,194	26,373	7,835	7,294	7,791
Consumer Durables North America	13,594	12,775	8,336	6,349	5,742	438	7,245	7,033	7,898
Consumer Durables Latin America	7,585	6,263	5,854	4,138	2,414	2,664	3,447	3,849	3,190
Consumer Durables Asia/Pacific	4,079	4,250	3,030	2,056	1,835	1,088	2,023	2,415	1,942
Professional Products	2,845	3,130	2,413	1,942	1,956	1,345	903	1,174	1,068
Other2)	4,714	4,937	5,738	5,522	6,375	6,685	-808	-1,438	-947
Items affecting comparability	-106	-195	-196	1,327	697	1,240	-1,433	-892	-1,436
Total operating assets and liabilities	62,530	63,648	59,339	43,318	44,213	39,833	19,212	19,435	19,506
Liquid funds	12,674	12,886	13,357	—	—	—	—	—	—
Interest-bearing receivables	—	—	—	—	—	—	—	—	—
Interest-bearing liabilities	—	—	—	12,178	15,083	14,022	—	—	—
Equity	—	—	—	19,708	17,238	18,841	—	—	—
Total	75,204	76,534	72,696	75,204	76,534	72,696	—	—	—

1) Figures for 2009 have been restated according to the new reporting structure, see page 17.

2) Includes common Group functions.

Parent Company, income statement

SEKm	Q2 2010	Q2 2009	First half 2010	First half 2009	Full year 2009
Net sales	1,400	1,187	2,729	2,421	5,928
Cost of goods sold	-1,064	-977	-2,003	-2,043	-4,368
Gross operating income	336	210	726	378	1,560
Selling expenses	-243	-141	-495	-309	-865
Administrative expenses	-200	-22	-383	-125	-367
Other operating income	-	-	-	3	160
Other operating expenses	9	-6	-95	-7	-1,083
Operating income	-98	41	-247	-60	-595
Financial income	2,459	879	2,658	1,190	3,989
Financial expenses	30	-154	33	-151	-233
Financial items, net	2,489	725	2,691	1,039	3,756
Income after financial items	2,391	766	2,444	979	3,161
Appropriations	6	6	7	13	20
Income before taxes	2,397	772	2,451	992	3,181
Taxes	-43	13	-61	17	174
Income for the period	2,354	785	2,390	1,009	3,355

Parent Company, balance sheet

SEKm	June 30, 2010	June 30, 2009	Dec. 31, 2009
Assets
Non-current assets	28,678	27,335	26,901
Current assets	21,420	21,930	20,604
Total assets	50,098	49,265	47,505
Equity and liabilities
Restricted equity	4,562	4,562	4,562
Non-restricted equity	14,018	10,268	12,694
Total equity	18,580	14,830	17,256
Untaxed reserves	677	691	684
Provisions	603	605	584
Non-current liabilities	8,442	9,941	9,512
Current liabilities	21,796	23,198	19,469
Total equity and liabilities	50,098	49,265	47,505
Pledged assets	6	6	4
Contingent liabilities	1,692	1,837	1,818

Five-year review

						Including Husqvarna
	2009	2008	2007	2006	2005	2005
Net sales, SEKm	109,132	104,792	104,732	103,848	100,701	129,469
Operating income, SEKm	3,761	1,188	4,475	4,033	1,044	3,942
Margin, %	3.4	1.1	4.3	3.9	1.0	3.0
Margin, excluding items affecting comparability, %	4.9	1.5	4.6	4.4	4.0	5.4
Income after financial items, SEKm	3,484	653	4,035	3,825	494	3,215
Margin, %	3.2	0.6	3.9	3.7	0.5	2.5
Margin, excluding items affecting comparability, %	4.6	1.0	4.2	4.2	3.4	4.8
Income for the period, SEKm	2,607	366	2,925	2,648	-142	1,763
Earnings per share, SEK	9.18	1.29	10.41	9.17	-0.49	6.05
Average number of shares after buy-backs, million	284.0	283.1	281.0	288.8	291.4	291.4
Dividend, SEK	-	-	4.25	4.00	7.50	7.50
Value creation, SEKm	2,884	-1,040	2,053	2,202	1,305	2,913
Return on equity, %	14.9	2.4	20.3	18.7	-	7.0
Return on net assets, %	19.4	5.8	21.7	23.2	5.4	13.0
Net debt/equity ratio	0.04	0.28	0.29	-0.02	-	0.11
Capital expenditure, SEKm	2,223	3,158	3,430	3,152	3,654	4,765
Average number of employees	50,633	55,177	56,898	55,471	57,842	69,523

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.

Total borrowings

Total borrowings consist of interest-bearing liabilities, fair-value derivatives, accrued interest expenses and prepaid interest income, and trade receivables with recourse.

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.

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 2010

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

Telephone conference

A telephone conference is held at 15.00 CET on July 19, 2010. The conference is chaired by Hans Stråberg, President and CEO of Electrolux. Mr. Stråberg is accompanied by Jonas Samuelson, CFO, and Peter Nyquist, Head of Investor Relations and Financial Information.

A slide presentation on the second-quarter results of 2010 will be available on the Electrolux website www.electrolux.com/ir

Details for participation by telephone are as follows: 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 2010

Financial reports 2010 Interim report January-September October 27

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 19, 2010.