Electrolux — Interim / Quarterly Report 2011

Jul 19, 2011

Interim report January – June 2011

Stockholm, July 19, 2011

Highlights of the second quarter of 2011

• • Net sales amounted to SEK 24,143m (27,311) and income for the period was SEK 561m (1,028), or SEK 1.97 (3.61) per share.
• • Net sales decreased by 2% in comparable currencies mainly as a result of lower prices.
• • Operating income amounted to SEK 745m (1,477), corresponding to a margin of 3.1% (5.4), excluding items affecting comparability.
• • Price pressure, increased costs for raw-materials and sourced products had an adverse impact on operating income in all regions.
• • Lower sales volumes of core appliances in Western Europe and North America driven by weak demand.
• • Price increases are being implemented in all regions.
• • Results for Professional Products continued to be strong, including a positive one-off item of SEK 90m.
• • Strong sales growth in Asia and a firm operating margin.
• • Solid cash flow from operations.
• • A final agreement signed to acquire Olympic Group in Egypt.

	Contents
Net sales and income	2
Market overview	3
Business areas	3
Cash flow	6
Financial position	6
Acquisition	7
Financial statements	11

First half

Change

SEKm	Q2 2011	Q2 2010	%	2011	2010	%
Net sales	24,143	27,311	–12	47,579	52,444	–9
Operating income	745	1,270	–41	1,441	2,501	–42
Margin, %	3.1	4.7		3.0	4.8
Income after financial items	696	1,269	–45	1,333	2,480	–46
Income for the period	561	1,028	–45	1,018	1,939	–47
Earnings per share, SEK1)	1.97	3.61		3.58	6.81
Return on net assets, %	–	–		14.1	25.3
Excluding items affecting comparability
Items affecting comparability	0	–207		0	–302
Operating income	745	1,477	–50	1,441	2,803	–49
Margin, %	3.1	5.4		3.0	5.3
Income after financial items	696	1,476	–53	1,333	2,782	–52
Income for the period	561	1,173	–52	1,018	2,154	–53
Earnings per share, SEK1)	1.97	4.12		3.58	7.57
Return on net assets, %	–	–		13.2	26.5

Change

First half

1) Basic, based on an average of 284.7 (284.6) million shares for the second quarter and 284,7 (284,5) million shares for the first half of 2011, excluding shares held by Electrolux.

For earnings per share after dilution, see page 11. For definitions, see page 21.

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

Net sales and income

Second quarter of 2011

Net sales for the Electrolux Group in the second quarter of 2011 amounted to SEK 24,143m (27,311). Changes in exchange rates had a negative impact on net sales. Net sales decreased by 1.6% in comparable currencies on the basis of lower sales prices and lower volumes for appliances.

Change in net sales

%	Q2 2011	First half 2011
Changes in exchange rates	–10.0	–8.9
Changes in volume/price/mix	–1.6	–0.4
Total	–11.6	–9.3

Operating income

Operating income for the second quarter of 2011 amounted to SEK 745m (1,270) and income after financial items to SEK 696m (1,269). Lower sales prices, increased costs for raw materials had a negative impact on operating income for the quarter. The weakening of demand in some of Electrolux most important markets had an adverse impact on volumes in the second quarter.

The ongoing global initiatives to further reduce costs by capitalizing on the Group's shared global strength and scope are running according to plan. Costs for the global initiatives amounted to approximately SEK 150m in the second quarter. Income for the period amounted to SEK 561m (1,028), corresponding to SEK 1.97 (3.61) in earnings per share.

Items affecting comparability

Operating income for the second quarter of 2011 includes no items affecting comparability.

Operating income for the corresponding quarter of the previous year included items affecting comparability in the amount of SEK –207m referring to restructuring provisions, see table on page 11. Excluding items affecting comparability, operating income for the second quarter of 2010 amounted to SEK 1,477m.

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 on operating income for the second quarter of 2011, compared to the same period in the previous year, and amounted to approximately SEK 65m.

The effects of changes in exchange rates referred mainly to the operations in Latin America, Europe, and Asia/Pacific. The strengthening of the Australian dollar and the Brazilian real against the US dollar positively affected operating income. Transaction effects amounted to approximately SEK 275m. Results from hedging contracts had an impact of approximately SEK –95m on operating income, compared to the previous year.

Compared to the previous year, translation of income statements in subsidiaries had an impact on operating income of approximately SEK –115m in the quarter, mainly due to the strengthening of the Swedish krona against the Euro and the US dollar.

Financial net

Net financial items for the second quarter of 2011 increased to SEK –49m, compared to SEK –1m for the corresponding period in the previous year. The increase is mainly due to higher interest rates on borrowings.

First half of 2011

Net sales for the Electrolux Group in the first half of 2011 amounted to SEK 47,579m, as against SEK 52,444m in the previous year. In comparable currencies, net sales was in line with the previous year.

Operating income

Operating income for the first half of 2011 decreased to SEK 1,441m (2,501) and income after financial items to SEK 1,333m (2,480). Income for the period decreased to SEK 1,018m (1,939), corresponding to SEK 3.58 (6.81) in earnings per share.

Items affecting comparability

Operating income for the first half of 2011 includes no items affecting comparability.

Operating income for the first half of 2010 included items affecting comparability in the amount of SEK –302m referring to restructuring provisions, see table on page 11.

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 40m on operating income for the first half of 2011.

Transaction effects amounted to approximately SEK 430m. Results from hedging contracts had an impact of approximately SEK –165m on operating income, compared to the previous year.

Compared to the previous year, translation of income statements in subsidiaries had an impact on operating income of approximately SEK –225m for the first half of 2011.

Financial net

Net financial items for the first half of 2011 increased to SEK –108m, compared to SEK –21m for the corresponding period in the previous year. The increase is mainly due to higher interest rates on borrowings.

Share of sales by business area, for the first half of 2011 Operating income and margin*

* Excluding items affecting comparability.

Market overview

Demand in Electrolux main markets for appliances slowed down in the second quarter of 2011. Demand in the North American market declined by approximately 10% after two quarters of growth. The overall European market for appliances increased somewhat, but declined in for Electrolux important markets such as Italy, Spain and the UK. Demand in Western Europe declined by 2%, while Eastern Europe increased by 12%.

The market in Brazil increased in the quarter in comparison with the same period of last year, but the growth rate declined. Most other markets in Latin America also improved.

Market demand for appliances in Europe and North America is expected to show a modest growth in 2011. Demand in Europe is expected to increase by approximately 1% (previously expected 2%) and demand in North America by no more than 3% (previously expected 3-5%) in 2011.

Business areas

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

Major Appliances Europe, Middle East and Africa

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	7,660	8,603	15,316	17,524	36,596
Operating income	156	453	467	952	2,297
Operating margin, %	2.0	5.3	3.0	5.4	6.3

Industry shipments of core appliances in Europe

Units, year-over-year, %	Q2 2011	First half 2011
Western Europe	–2	–2
Eastern Europe (excluding Turkey)	12	12
Total Europe	1	1

Demand for appliances in Europe increased by 1% in the second quarter of 2011 compared to the corresponding quarter in the preceding year, due to strong growth in Eastern Europe. Demand in Eastern Europe rose by 12%. Demand in Western Europe declined by 2% compared to the previous year. Major markets in Southern Europe such as Spain and Italy showed decline, while demand in Germany rose somewhat during the quarter.

The weakening of demand particularly in the for Electrolux important Italian market had an adverse impact on sales. Group sales in Europe decreased during the quarter due to lower volumes and sales prices in the market.

Major Appliances Europe, Middle East and Africa Industry shipments of core appliances in Europe*

Operating income declined, mainly due to continued price pressure, lower sales volumes and higher costs for raw materials. Operating income was also adversely impacted by increased costs for transportation. As previously announced, Electrolux plans to raise the prices of appliances in the European market by 5-7% as of October 1, 2011, to offset the rising costs of raw materials and transport.

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	7,544	9,308	14,272	16,613	30,969
Operating income	138	439	67	738	1,442
Operating margin, %	1.8	4.7	0.5	4.4	4.7

Estimated industry shipments of applances in the US

Units, year-over-year, %	Q2 2011	First half 2011
Core appliances	–10	–5
Major appliances	–5	1

Market demand for core appliances in North America is estimated to have declined by approximately 10% in the second quarter of 2011, compared to the robust growth, subsidized by government stimuli, during the second quarter of 2010.

Group sales in North America declined year-on-year, due to lower volumes of appliances driven by the weak demand and lower sales prices, although prices increased over the first quarter of 2011. During the quarter, Electrolux raised prices by 3-5%, which began to take effect by the end of the quarter. Group sales of airconditioning equipment increased during the quarter.

Operating income decreased in the second quarter compared to the corresponding period in the previous year, due to lower sales prices and increased costs for raw materials. Higher costs for sourced products and transport also had an adverse impact on operating income. The costs for raw materials showed a strong increase during the quarter.

Major Appliances Latin America

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	3,708	3,667	7,706	7,463	16,260
Operating income	114	209	253	415	951
Operating margin, %	3.1	5.7	3.3	5.6	5.8

Market demand for appliances in Brazil is estimated to have increased during the second quarter of 2011, compared to the corresponding period in the preceding year. However, the growth rate declined compared to the first quarter of 2011. Several other Latin American markets showed continued favorable growth during the quarter.

Sales volumes for Electrolux in Latin America increased in the second quarter, resulting in higher sales and increasing market shares in Brazil and several other Latin American markets. Other Latin American markets accounted for more than 20% of Group sales in Latin America during the second quarter.

Operating income declined year-on-year in the second quarter. Lower sales prices and a weaker customer mix had a negative impact on operating income. In June, Electrolux began implementing selective price increases in the Brazilian market. The consolidation that has taken place among retailers in Brazil had a negative impact on the mix. Operating income was also adversely affected by increased costs for raw materials during the quarter.

Major Appliances North America Industry shipments of core appliances in the US*

Major Appliances Latin America

Major Appliances Asia/Pacific

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	1,945	2,035	3,691	3,701	7,679
Operating income	177	207	351	352	793
Operating margin, %	9.1	10.2	9.5	9.5	10.3

Australia and New Zealand

Market demand for appliances in Australia is estimated to have increased during the second quarter of 2011 compared to the corresponding period in the preceding year. Group sales fell slightly, which was due mainly to lower volumes but also to continued price pressure in the market where the strong Australian dollar has caused imported products to become more competitive.

Operating income declined due to lower sales prices, a weaker product mix and increased costs for raw materials.

Southeast Asia and China

Market demand in Southeast Asia and China is estimated to have continued to grow during the second quarter of 2011, compared to the corresponding period in the preceding year. Electrolux sales in markets in Southeast Asia and China continued to show strong growth. The operations in Southeast Asia continued to show good profitability.

Small Appliances

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	1,794	1,966	3,724	3,902	8,422
Operating income	23	122	137	333	802
Operating margin, %	1.3	6.2	3.7	8.5	9.5

Market demand for vacuum cleaners in Europe decreased year-onyear in the second quarter of 2011. Demand in North America increased during the quarter.

Group sales increased slightly during the second quarter, compared to the corresponding period in the preceding year, primarily as a result of higher sales volumes of small domestic appliances and an improved product mix. The Group's sales volumes of small appliances showed strong growth in Latin America and Asia Pacific. The cordless, handheld vacuum cleaner Ergorapido continued to show good growth, as did the recently launched vacuum cleaner Airspeed in North America.

However, operating income decreased, primarily due to higher product costs, increased investment in small domestic appliances and lower sales prices. Increased costs for sourced products and higher costs for raw materials had a negative impact on product costs during the quarter. Electrolux continues to invest in growth in several product categories for small appliances, resulting in increased spending during the quarter. Lower sales prices also had a negative impact on operating income. Price pressure remained strong in several markets, particularly in Latin America and Europe.

Professional Products

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	1,491	1,730	2,869	3,231	6,389
Operating income	274	207	451	298	743
Operating margin, %	18.4	12.0	15.7	9.2	11.6

Market demand for food-service equipment is estimated to have declined slightly in the second quarter of 2011 compared to the corresponding period in the preceding year, due mainly to a weaker market in Southern Europe.

To increase profitability in North America, the Group exited a contractor of large kitchen products during the third quarter of 2010. Excluding this structural change, Group sales declined slightly, due to the downturn in the Southern European market.

The divestment of a facility within food-service equipment had a positive effect of approximately SEK 90m on operating income for the quarter. Excluding this non-recurring item, operating income for food-service equipment decreased slightly in the second quarter. Operating income was negatively impacted by lower project sales in Southern Europe and increased costs for raw materials. However, price increases offset a large part of the increased costs of raw materials.

Market demand for professional laundry equipment is estimated to have increased somewhat during the second quarter. Group sales volumes rose.

Operating income improved as a result of price increases and higher volumes. Price increases offset higher costs for raw materials. The weakening of the US dollar had a negative impact on operating income, since products are manufactured in Europe and exported to the US.

Cash flow

Cash flow from operations and investments in the second quarter of 2011 amounted to SEK 928m (2,821).

Cash flow in the second quarter follows a normal seasonal pattern. Changes in working capital reflects seasonal build-up of inventories for the normally stronger second half of the year.

Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK –190m.

Investments during the second quarter of 2011 referred mainly to new products.

The dividend payment for 2010 of SEK 1,850m was paid to the shareholders in the quarter.

Compared to the previous year, cash flow from operations in the second quarter of 2011 has been adversely impacted by the decline in operating income.

Cash flow			First	First
	Q2	Q2	half	half
SEKm	2011	2010	2011	2010
Cash flow from operations, excluding
change in operating assets and liabilities	641	2,069	1,404	4,206
Change in operating assets and liabili
ties	1,267	1,773	–21	427
Investments	–980	–1,021	–1,741	–1,699
Cash flow from operations and
investments	928	2,821	–358	2,934
Dividend	–1,850	–1,138	–1,850	–1,138
Sale of shares	0	15	0	18
Total cash flow, excluding change in
loans and short-term investments	–922		1,698 –2,208	1,814

Financial position

Total equity as of June 30, 2011, amounted to SEK 19,473m (19,708), which corresponds to SEK 68.41 (69.23) per share.

Net borrowings

SEKm	June 30, 2011	June 30, 2010	Dec. 31, 2010
Borrowings	13,150	12,178	12,096
Liquid funds	11,835	12,674	12,805
Net borrowings	1,315	–496	–709
Net debt/equity ratio	0.07	–0.03	–0.03
Equity	19,473	19,708	20,613
Equity per share, SEK	68.41	69.23	72.41
Return on equity, %	10.4	20.5	20.6
Return on equity, excluding items
affecting comparability, %	10.4	22.7	24.4
Equity/assets ratio, %	31.9	31.5	33.9

Net borrowings

Net borrowings amounted to SEK 1,315m (–496). The net debt/ equity ratio was 0.07 (–0.03). The equity/assets ratio was 31.9% (31.5).

In June, 2011, Electrolux issued a five-year SEK 2,500m bond loan under its EMTN (Euro Medium Term Note) program. Of the bond loan, SEK 1,500m are issued at fixed rate and carry a coupon of 4.5% annually and SEK 1,000m have a floating interest rate. The bonds are listed on the Luxembourg Stock Exchange.

During the first half of 2011, SEK 903m of long-term borrowings were amortized. Long-term borrowings as of June 30, 2011, including long-term borrowings with maturities within 12 months, amounted to SEK 11,121m with average maturities of 2.8 years, compared to SEK 9,590m and 3.3 years at the end of 2010. During 2011 and 2012, long-term borrowings in the amount of approximately SEK 2,300m will mature.

Liquid funds as of June 30, 2011, amounted to SEK 11,835m (12,674), excluding short-term back-up facilities.

Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012, and since the third quarter of 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.

Net assets and working capital

Average net assets for the period amounted to SEK 20,466m (19,751). Net assets as of June 30, 2011, amounted to SEK 20,788m (19,212). Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 21,876m (21,165), corresponding to 23.0% (20.2) of net sales.

Working capital as of June 30, 2011, amounted to SEK –5,178m (–5,664), corresponding to –5.3% (–5.1) of annualized net sales.

The return on net assets was 14.1% (25.3), and 13.2% (26.5), excluding items affecting comparability.

Cash flow and change in net borrowings

Cash flow from operations and investments

Acquisition of Egyptian Olympic Group

Electrolux has signed a purchase agreement with Paradise Capital to acquire its 52% controlling interest in the leading Egyptian major appliances manufacturer Olympic Group Financial Investment Company S.A.E (Olympic Group).

Electrolux will launch a Mandatory Tender Offer to purchase all the shares in Olympic Group at a price of 40.60 Egyptian pounds (EGP) per share and has signed an agreement with Paradise Capital to acquire its 52% controlling interest. The Mandatory Tender Offer is expected to be finalized at the end of July/beginning of August 2011 and the results for Olympic Group are expected to be consolidated in Electrolux during the third quarter of 2011. The Olympic Group share is listed on the Egyptian Stock Exchange. The plan is to delist the company going forward.

Upon completion of the Mandatory Tender Offer, Electrolux has agreed to sell Olympic Group's ownership in its two associated companies Namaa and B-Tech to Paradise Capital. Both companies are listed on the Egyptian Stock Exchange. The agreed value of the shares in these two companies totals approximately EGP 450m (SEK 470m). Based on the above transactions, the total equity value of Olympic Group's operations excluding Namaa and B-Tech will be approximately EGP 2.0bn (SEK 2.1bn). Olympic Group has a net debt including minority interests of approximately EGP 740m (SEK 780m), which will be included in the transaction.

To continue to benefit from the expertise of Paradise Capital, Electrolux will enter into a seven-year management agreement to ensure continued technological and management support to Olympic Group against a yearly fee of 2.5% of Olympic Group's net sales.

Olympic Group has 7,300 employees and manufactures washing machines, refrigerators, cookers and water heaters. In 2010, Olympic Group's operations, excluding Namaa and B-Tech, had sales of approximately EGP 2.3bn (SEK 2.5bn) and a recurring operating income of approximately EGP 265m (SEK 280m), corresponding to a margin of 11%, and a net profit of approximately EGP 190m (SEK 200m).

Olympic Group is a leading manufacturer of appliances in the Middle East with a volume market share in Egypt of approximately 30%. Electrolux and Olympic Group have developed a successful commercial partnership in the region over a period of almost 30 years, which today covers technology, supply of components, distribution and brand licensing.

Other items

Jack Truong new Head of Major Appliances North America

Jack Truong has been appointed new head of Major Appliances North America. He is succeeding Kevin Scott, who will leave Electrolux after eight years with the company. Jack Truong will report to President and CEO Keith McLoughlin and be a member of Group Management. He will assume his new position as of August 1, 2011.

Jack Truong previously held several senior management positions at the 3M Company, based in the US, Europe and Asia. 3M is a global leader, active in a wide variety of markets from health care and personal safety to office products and electronics.

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. The cases involve plaintiffs who have made identical allegations against other defendants who are not part of the Electrolux Group.

As of June 30, 2011, the Group had a total of 2,663 (2,891) cases pending, representing approximately 2,910 (approximately 3,180) plaintiffs. During the second quarter of 2011, 226 new cases with 226 plaintiffs were filed and 294 pending cases with approximately 294 plaintiffs were resolved.

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.

Conversion of shares

According to AB Electrolux articles of association, owners of Class A shares have the right to have such shares converted to Class B shares. In the first half of 2011, at the request of shareholders, 500,000 Class A shares were converted to Class B shares.

Conversion of shares reduces the total number of votes in the company. After the conversion, the total number of votes amounts to 38,598,843.

The total number of registered shares in the company amounts to 308,920,308 shares, of which 8,563,125 are Class A shares and 300,357,183 are Class B shares, see table on page 12.

On June 30, 2011, Electrolux owned 24,255,085 shares of Class B, corresponding to 7.9% of all outstanding shares.

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)
Motala	Sweden	Cookers	(Q1 2011)
Webster City	USA	Washing machines	(Q1 2011)
Alcalà	Spain	Washing machines	(Q1 2011)

Authorized closures			Estimated closure
L'Assomption	Canada	Cookers	(Q4 2013)
Investment			Starting
Porcia	Italy	Washing machines	(Q4 2010)
Memphis	USA	Cookers	(Q2 2012)

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 areas. The total cost of the program will be approximately SEK 8.5bn and savings will amount to approximately SEK 3.4bn annually as of 2013. Restructuring provisions and write-downs are reported as items affecting comparability within operating income.

Risks and uncertainty factors

Electrolux ability to increase profitability and shareholder value is based on three elements: innovative products, strong brands and cost-efficient operations. Realizing this potential requires effective and controlled risk management.

Electrolux monitors and minimizes key risks in a structured and proactive manner. Capacity has previously been adjusted in response to weak demand, working capital has undergone structural improvements, the focus on price has been intensified and the purchasing process for raw materials has been further streamlined.

Demand stabilized in the Group's major markets during 2010. Access to credit also improved after a period of turbulence in the financial markets. However, volatile patterns in raw-material prices and downward price pressure prevailed in the Group's major markets.

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

Fluctuations in demand

Demand for appliances is affected by the general business cycle. Deterioration in these conditions may lead to lower sales volumes as well as to 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 in the future.

Price competition

Most of the markets in which Electrolux operates feature strong price competition. This is particularly severe in the low-price segments and in product categories with large over-capacity. 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. Price pressure still prevails in the Group's major markets.

Changes in prices for raw materials and components

The Group's exposure to raw materials comprises mainly of steel, plastics, copper and aluminum. Electrolux uses bilateral contracts to manage risks related to steel prices. Some raw materials are purchased at spot prices. There is considerable uncertainty regarding trends for the prices of raw materials.

Exchange-rate exposure

The global presence of Electrolux, with manufacturing and sales in a number of countries, offsets exchange-rate effects to a certain degree. The principal exchange-rate effect arises from transaction flows; when purchasing and/or production is/are carried out in one currency and sales occur in another currency. The Group utilizes currency derivatives to hedge a portion of the currency exposure that arises. The effect of currency hedging is usually that currency movements that occur today have a delayed effect. The major currencies for the Electrolux Group are the USD, EUR, AUD, BRL and GBP. In general, income for Electrolux benefits from a weak USD and EUR and from a strong AUD, BRL and GBP.

Furthermore, Electrolux is affected by translation effects when the Group's sales and operating income is translated into SEK. The translation exposure is primarily related to currencies in those regions where the Group's most substantial operations exist, that is, EUR and USD.

Exposure to customers and suppliers

Electrolux has a comprehensive process for evaluating credits and tracking the financial situation of retailers. Management of credits as well as responsibility and authority for approving credit decisions are regulated by the Group's credit policy. Credit insurance is used in specific cases to reduce credit risks.

After a number of years of recession and uncertainty in the financial markets, the situation stabilized for the Group's retailers and suppliers in 2010.

Access to financing

The Group's loan-maturity profile for 2011 and 2012 represents maturities of approximately SEK 2,300m in long-term borrowings.

Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012 and since the third quarter of 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.

Risks, risk management and risk exposure are described in more detail in the Annual Report 2010, www.electrolux.com/annualreport2010.

Sensitivity analysis year-end 2010

		Pre-tax earnings
Risk	Change	impact, SEKm
Raw materials
Steel	10%	+/–900
Plastics	10%	+/–500
Currencies¹)
and interest rates
USD/SEK	–10%	+601
EUR/SEK	–10%	+319
BRL/SEK	–10%	–314
AUD/SEK	–10%	–273
GBP/SEK	–10%	–202
Interest rate	1 percentage point	+/–60

Raw-materials exposure 2010

Carbon steel, 37% Stainless steel, 8% Copper and aluminum, 13% Plastics, 27% Other, 15%

In 2010, Electrolux purchased raw materials for approximately SEK 20bn. 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 2011 amounted to SEK 3,256m (2,729), of which SEK 1,517m (1,517) referred to sales to Group companies and SEK 1,739m (1,212) to external customers. Income after financial items was SEK 966m (2,444), including dividends from subsidiaries in the amount of SEK 816m (2,219). Income for the period amounted to SEK 942m (2,390).

Capital expenditure in tangible and intangible assets was SEK 250m (146). Liquid funds at the end of the period amounted to SEK 5,924m, as against SEK 5,266m at the start of the year.

Undistributed earnings in the Parent Company at the end of the period amounted to SEK 14,196m, as against SEK 15,089m at the start of the year. Dividend payment to shareholders for 2010 amounted to SEK 1,850m.

The income statement and balance sheet for the Parent Company are presented on page 20.

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 2010.

This report has not been audited.

Stockholm, July 19, 2011

Keith McLoughlin President and CEO

Press releases 2011

January 20	Electrolux further strengthens organization for	April 5	Change in reporting for Electrolux business areas
	Innovation and Marketing	April 27	Interim report January-March and CEO
February 2	Consolidated Results 2010 and CEO		Keith McLoughlin's comments
	Keith McLoughlin's comments	April 29	Conversion of shares
February 17	Keith McLoughlin and Ulrika Saxon proposed new	May 9	Electrolux raises the bar in sustainability reporting
	Board members of AB Electrolux	June 8	Electrolux issues bond loan
February 18	Notice convening the Annual General Meeting of	June 13	Electrolux to implement price increases in Europe
	AB Electrolux	July 1	Jack Truong appointed Head of Major Appliances
February 28	Conversion of shares		North America
March 4	Electrolux Annual Report 2010 now on www.electrolux.com	July 10	Electrolux acquires Olympic Group
March 18	Electrolux named one of the World's Most Ethical
	Companies 2011

March 31 Electrolux Annual General Meeting 2011 April 1 Bulletin from AB Electrolux Annual General Meeting 2011 Interim report January – June 2011

The Board of Directors and the President and CEO certify that the Interim report for the period January - June 2011 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, 2011

Marcus Wallenberg Chairman of the Board of Directors

Peggy Bruzelius Torben Ballegaard Sørensen Vice Chairman of the Board of Directors Board member

Hasse Johansson John S. Lupo

Board member Board member

Ulrika Saxon Lorna Davis

Barbara Milian Thoralfsson Keith McLoughlin 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

Board member Board member

Consolidated income statement

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	24,143	27,311	47,579	52,444	106,326
Cost of goods sold	–19,723	–21,308	–38,713	–40,860	–82,697
Gross operating income	4,420	6,003	8,866	11,584	23,629
Selling expenses	–2,745	–3,070	–5,294	–5,972	–11,698
Administrative expenses	–1,018	–1,468	–2,301	–2,808	–5,428
Other operating income/expenses	88	12	170	–1	–9
Items affecting comparability	0	–207	0	–302	–1,064
Operating income	745	1,270	1,441	2,501	5,430
Margin, %	3.1	4.7	3.0	4.8	5.1
Financial items, net	–49	–1	–108	–21	–124
Income after financial items	696	1,269	1,333	2,480	5,306
Margin, %	2.9	4.6	2.8	4.7	5.0
Taxes	–135	–241	–315	–541	–1,309
Income for the period	561	1,028	1,018	1,939	3,997
Available for sale instruments	6	1	–52	29	77
Cash-flow hedges	–40	–63	49	–99	–117
Exchange differences on translation of foreign operations	593	413	–272	90	–1,108
Income tax relating to other comprehensive income	20	13	–42	–5	–30
Other comprehensive income, net of tax	579	364	–317	15	–1,178
Total comprehensive income for the period	1,140	1,392	701	1,954	2,819
Income for the period attributable to:
Equity holders of the Parent Company	561	1,028	1,018	1,939	3,997
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	1,140	1,392	701	1,954	2,819
Earnings per share, SEK	1.97	3.61	3.58	6.81	14.04
Diluted, SEK	1.96	3.60	3.56	6.79	13.97
Number of shares after buy-backs, million	284.7	284.7	284.7	284.7	284.7
Average number of shares after buy-backs, million	284.7	284.6	284.7	284.5	284.6
Diluted, million	286.0	285.7	286.2	285.6	286.0

Items affecting comparability

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Restructuring provisions and write-downs
Appliances plant in L'Assomption, Canada	–	–	–	–	–426
Reduced workforce in Major Appliances, Europe	–	–	–	–	–356
Appliances plant in Revin, France	–	–71	–	–71	–71
Appliances plant in Forli, Italy	–	–136	–	–136	–136
Appliances plant in Motala, Sweden	–	–	–	–95	–95
Reversal of unused restructuring provisions	–	–	–	–	20
Total	–	–207	–	–302	–1,064

12 Interim report January – June 2011

Consolidated balance sheet

SEKm	June 30, 2011	June 30, 2010	Dec. 31, 2010
Assets
Property, plant and equipment	14,499	15,037	14,630
Goodwill	2,249	2,311	2,295
Other intangible assets	3,460	3,175	3,276
Investments in associates	17	18	17
Deferred tax assets	3,135	2,789	2,981
Financial assets	542	476	577
Other non-current assets	2,949	1,815	2,836
Total non-current assets	26,851	25,621	26,612
Inventories	12,593	12,607	11,130
Trade receivables	17,403	20,683	19,346
Tax assets	464	559	367
Derivatives	225	455	386
Other current assets	4,063	3,419	3,569
Short-term investments	1,401	1,968	1,722
Cash and cash equivalents	9,905	9,892	10,389
Total current assets	46,054	49,583	46,909
Total assets	72,905	75,204	73,521
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	319	1,829	636
Retained earnings	14,704	13,429	15,527
Total equity	19,473	19,708	20,613
Long-term borrowings	10,869	9,304	8,413
Deferred tax liabilities	885	745	806
Provisions for post-employment benefits	2,031	1,822	2,486
Other provisions	5,172	5,748	5,306
Total non-current liabilities	18,957	17,619	17,011
Accounts payable	18,444	19,162	17,283
Tax liabilities	1,566	2,383	1,868
Short-term liabilities	10,555	11,853	10,907
Short-term borrowings	1,823	2,254	3,139
Derivatives	359	532	483
Other provisions	1,728	1,693	2,217
Total current liabilities	34,475	37,877	35,897
Total equity and liabilities	72,905	75,204	73,521
Contingent liabilities	1,160	1,318	1,062

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, 2011	9,063,125	299,857,183	24,255,085	284,665,223
Conversion of A-shares into B-shares	–500,000	500,000
Shares alloted to senior managers under the Performance Share Program			–	–
Number of shares as of June 30, 2011	8,563,125	300,357,183	24,255,085	284,665,223
As % of total number of shares			7.9%

Consolidated cash flow statement

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Operations
Operating income	745	1,270	1,441	2,501	5,430
Depreciation and amortization	806	849	1,567	1,665	3,328
Capital gain/loss included in operating income	–91	0	–170	0	4
Restructuring provisions	–194	84	–415	–68	294
Share-based compensation	–12	26	9	33	73
Financial items paid, net	–43	18	–76	27	–72
Taxes paid	–570	–178	–952	48	–1,316
Cash flow from operations, excluding change
in operating assets and liabilities	641	2,069	1,404	4,206	7,741
Change in operating assets and liabilities
Change in inventories	–583	–1,278	–1,659	–2,412	–1,755
Change in trade receivables	980	115	1,605	–420	–216
Change in other current assets	–506	–543	–497	–559	–977
Change in accounts payable	1,439	2,953	1,333	3,296	2,624
Change in other operating liabilities and provisions	–63	526	–803	522	263
Cash flow from change in operating assets
and liabilities	1,267	1,773	–21	427	–61
Cash flow from operations	1,908	3,842	1,383	4,633	7,680
Investments
Divestment of operations	103	0	208	0	7
Capital expenditure in property, plant and equipment	–741	–765	–1,281	–1,203	–3,221
Capitalization of product development	–100	–110	–174	–189	–396
Other	–242	–146	–494	–307	–864
Cash flow from investments	–980	–1,021	–1,741	–1,699	–4,474
Cash flow from operations and investments	928	2,821	–358	2,934	3,206
Financing
Change in short-term investments	–6	210	309	1,062	1,306
Change in short-term borrowings	204	–1,146	–31	–1,691	–1,768
New long-term borrowings	2,500	0	2,500	6	380
Amortization of long-term borrowings	–205	–312	–903	–1,023	–1,039
Dividend	–1,850	–1,138	–1,850	–1,138	–1,138
Sale of shares	0	15	0	18	18
Cash flow from financing	643	–2,371	25	–2,766	–2,241
Total cash flow	1,571	450	–333	168	965
Cash and cash equivalents at beginning of period	8,209	9,200	10,389	9,537	9,537
Exchange-rate differences	125	242	–151	187	–113
Cash and cash equivalents at end of period	9,905	9,892	9,905	9,892	10,389

Change in consolidated equity

SEKm	June 30, 2011	June 30, 2010	Dec. 31, 2010
Opening balance	20,613	18,841	18,841
Total comprehensive income for the period	701	1,954	2,819
Share-based payment	9	33	73
Sale of shares	0	18	18
Dividend payable	–1,850	–1,138	–1,138
Total transactions with equity holders	–1,841	–1,087	–1,047
Closing balance	19,473	19,708	20,613

Working capital and net assets

SEKm	June 30, 2011	% of annualized net sales	June 30, 2010	% of annualized net sales	Dec. 31, 2010	% of annualized net sales
Inventories	12,593	12.8	12,607	11.4	11,130	10.2
Trade receivables	17,403	17.7	20,683	18.7	19,346	17.7
Accounts payable	–18,444	–18.7	–19,162	–17.3	–17,283	–15.8
Provisions	–8,931		–9,263		–10,009
Prepaid and accrued income and expenses	–6,726		–8,387		–7,095
Taxes and other assets and liabilities	–1,073		–2,142		–1,991
Working capital	–5,178	–5.3	–5,664	–5.1	–5,902	–5.4
Property, plant and equipment	14,499		15,037		14,630
Goodwill	2,249		2,311		2,295
Other non-current assets	6,968		5,484		6,706
Deferred tax assets and liabilities	2,250		2,044		2,175
Net assets	20,788	21.1	19,212	17.4	19,904	18.2
Average net assets	20,466	21.5	19,751	18.8	19,545	18.4
Average net assets, excluding items affecting
comparability	21,876	23.0	21,165	20.2	20,940	19.7

Key ratios

	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales, SEKm	24,143	27,311	47,579	52,444	106,326
Operating income, SEKm	745	1,270	1,441	2,501	5,430
Margin, %	3.1	4.7	3.0	4.8	5.1
EBITDA, SEKm	1,551	2,119	3,008	4,166	8,758
Earnings per share, SEK¹)	1.97	3.61	3.58	6.81	14.04
Return on net assets, %	–	–	14.1	25.3	27.8
Return on equity, %	–	–	10.4	20.5	20.6
Capital-turnover rate, times/year	–	–	4.7	5.3	5.4
Equity per share, SEK	–	–	68.41	69.23	72.41
Cash flow from operations, SEKm	1,908	3,842	1,383	4,633	7,680
Capital expenditure, SEKm	–741	–765	–1,281	–1,203	–3,221
Net borrowings, SEKm	–	–	1,315	–496	–709
Net debt/equity ratio	–	–	0.07	–0.03	–0.03
Equity/assets ratio, %	–	–	31.9	31.5	33.9
Average number of employees	49,926	51,181	50,251	51,371	51,544
Excluding items affecting comparability
Operating income, SEKm	745	1,477	1,441	2,803	6,494
Margin, %	3.1	5.4	3.0	5.3	6.1
EBITDA, SEKm	1,551	2,326	3,008	4,468	9,822
Earnings per share, SEK¹)	1.97	4.12	3.58	7.57	16.65
Return on net assets, %	–	–	13.2	26.5	31.0
Return on equity, %	–	–	10.4	22.7	24.4
Capital-turnover rate, times/year	–	–	4.4	5.0	5.1

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

For definitions, see page 21.

Net sales by business area*

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Major Appliances Europe, Middle East and Africa	7,660	8,603	15,316	17,524	36,596
Major Appliances North America	7,544	9,308	14,272	16,613	30,969
Major Appliances Latin America	3,708	3,667	7,706	7,463	16,260
Major Appliances Asia/Pacific	1,945	2,035	3,691	3,701	7,679
Small Appliances	1,794	1,966	3,724	3,902	8,422
Professional Products	1,491	1,730	2,869	3,231	6,389
Other	1	2	1	10	11
Total	24,143	27,311	47,579	52,444	106,326

Operating income by business area*

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Major Appliances Europe, Middle East and Africa	156	453	467	952	2,297
Margin, %	2.0	5.3	3.0	5.4	6.3
Major Appliances North America	138	439	67	738	1,442
Margin, %	1.8	4.7	0.5	4.4	4.7
Major Appliances Latin America	114	209	253	415	951
Margin, %	3.1	5.7	3.3	5.6	5.8
Major Appliances Asia/Pacific	177	207	351	352	793
Margin, %	9.1	10.2	9.5	9.5	10.3
Small Appliances	23	122	137	333.0	802.0
Margin, %	1.3	6.2	3.7	8.5	9.5
Professional Products	274	207	451	298	743
Margin, %	18.4	12.0	15.7	9.2	11.6
Total business areas	882	1,637	1,726	3,088	7,028
Margin, %	3.7	6.0	3.6	5.9	6.6
Common Group costs, etc.	–137	–160	–285	–285	–534
Items affecting comparability	0	–207	0	–302	–1,064
Operating income	745	1,270	1,441	2,501	5,430

* Figures for 2010 have been restated according to the new reporting structure, see page 17 and 19.

Change in net sales by business area

Year-over-year, %	Q2 2011	Q2 2011 in comparable currencies	First half 2011	First half 2011 in comparable currencies
Major Appliances Europe, Middle East and Africa	–11.0	–5.2	–12.6	–5.5
Major Appliances North America	–19.0	–3.2	–14.1	–0.9
Major Appliances Latin America	1.1	11.2	3.3	10.2
Major Appliances Asia/Pacific	–4.4	0.3	–0.3	2.7
Small Appliances	–8.7	2.0	–4.6	5.3
Professional Products	–13.8	–7.9	–11.2	–4.6
Total change	–11.6	–1.6	–9.3	–0.4

Change in operating income by business area

Year-over-year, %	Q2 2011	Q2 2011 in comparable currencies	First half 2011	First half 2011 in comparable currencies
Major Appliances Europe, Middle East and Africa	–65.6	–62.6	–50.9	–46.4
Major Appliances North America	–68.6	–67.6	–90.9	–89.5
Major Appliances Latin America	–45.5	–38.4	–39.0	–34.6
Major Appliances Asia/Pacific	–14.5	–13.5	–0.3	–1.7
Small Appliances	–81.1	–76.6	–58.9	–54.3
Professional Products	32.4	40.7	51.3	63.4
Total change, excluding items affecting comparability	–49.6	–45.8	–48.6	–44.1

Exchange rates

SEK	June 30, 2011	June 30, 2010	Dec. 31, 2010
AUD, average	6.61	6.56	6.60
AUD, end of period	6.80	6.62	6.92
BRL, average	3.92	4.11	4.10
BRL, end of period	4.06	4.30	4.08
CAD, average	6.50	7.09	6.96
CAD, end of period	6.56	7.40	6.80
EUR, average	8.94	9.82	9.56
EUR, end of period	9.17	9.51	9.01
GBP, average	10.23	11.30	11.13
GBP, end of period	10.13	11.63	10.52
HUF, average	0.0331	0.0361	0.0346
HUF, end of period	0.0345	0.0333	0.0322
USD, average	6.35	7.38	7.20
USD, end of period	6.34	7.75	6.81

Net sales and income per quarter

	Q1	Q2	Q3	Q4	Full year
2011	23,436	24,143			47,579
2010	25,133	27,311	26,326	27,556	106,326
2011	696	745			1,441
Margin, %	3.0	3.1			3.0
2011¹)	696	745			1,441
Margin, %	3.0	3.1			3.0
2010	1,231	1,270	1,977	952	5,430
Margin, %	4.9	4.7	7.5	3.5	5.1
2010¹)	1,326	1,477	1,977	1,714	6,494
Margin, %	5.3	5.4	7.5	6.2	6.1
2011	637	696			1,333
Margin, %	2.7	2.9			2.8
2011¹)	637	696			1,333
Margin, %	2.7	2.9			2.8
2010	1,211	1,269	1,901	925	5,306
Margin, %	4.8	4.6	7.2	3.4	5.0
2010¹)	1,306	1,476	1,901	1,687	6,370
Margin, %	5.2	5.4	7.2	6.1	6.0
2011	457	561			1,018
2010	911	1,028	1,381	677	3,997
2011	1.61	1.97			3.58
2011¹)	1.61	1.97			3.58
2010	3.20	3.61	4.85	2.38	14.04
2010¹)	3.45	4.12	4.85	4.23	16.65

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	2011	284.7	284.7			284.7
	2010	284.5	284.7	284.7	284.7	284.7
Average number of shares after buy–backs, million	2011	284.7	284.7			284.7
	2010	284.5	284.6	284.7	284.7	284.6
Items affecting comparability
Restructuring provisions, write–downs and capital	2011	–	–			–
loss on divestment, SEKm	2010	–95	–207	–	–762	–1,064

Net sales by business area per quarter*

SEKm		Q1	Q2	Q3	Q4	Full year
Major Appliances Europe, Middle East and Africa	2011	7,656	7,660			15,316
	2010	8,921	8,603	9,395	9,677	36,596
	2009	9,680	9,634	10,507	10,679	40,500
Major Appliances North America	2011	6,728	7,544			14,272
	2010	7,305	9,308	7,604	6,752	30,969
	2009	8,398	9,058	8,136	7,102	32,694
Major Appliances Latin America	2011	3,998	3,708			7,706
	2010	3,796	3,667	3,810	4,987	16,260
	2009	2,437	3,122	3,571	4,172	13,302
Major Appliances Asia/Pacific	2011	1,746	1,945			3,691
	2010	1,666	2,035	1,909	2,069	7,679
	2009	1,533	1,787	1,746	1,971	7,037
Small Appliances	2011	1,930	1,794			3,724
	2010	1,936	1,966	2,106	2,414	8,422
	2009	2,041	2,029	2,026	2,368	8,464
Professional Products	2011	1,378	1,491			2,869
	2010	1,501	1,730	1,501	1,657	6,389
	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
Major Appliances Europe, Middle East and Africa	2011	311	156			467
	Margin, %	4.1	2.0			3.0
	2010	499	453	919	426	2,297
	Margin, %	5.6	5.3	9.8	4.4	6.3
	2009	112	255	903	642	1,912
	Margin, %	1.2	2.6	8.6	6.0	4.7
Major Appliances North America	2011	-71	138			67
	Margin, %	-1.1	1.8			0.5
	2010	299	439	419	285	1,442
	Margin, %	4.1	4.7	5.5	4.2	4.7
	2009	-178	478	617	382	1,299
	Margin, %	-2.1	5.3	7.6	5.4	4.0
Major Appliances Latin America	2011	139	114			253
	Margin, %	3.5	3.1			3.3
	2010	206	209	202	334	951
	Margin, %	5.4	5.7	5.3	6.7	5.8
	2009	34	133	296	346	809
	Margin, %	1.4	4.3	8.3	8.3	6.1
Major Appliances Asia/Pacific	2011	174	177			351
	Margin, %	10.0	9.1			9.5
	2010	145	207	242	199	793
	Margin, %	8.7	10.2	12.7	9.6	10.3
	2009	15	51	147	165	378
	Margin, %	1.0	2.9	8.4	8.4	5.4
Small Appliances	2011	114	23			137
	Margin, %	5.9	1.3			4.8
	2010	211	122	167	302	802
	Margin, %	10.9	6.2	7.9	12.5	9.5
	2009	75	84	238	366	763
	Margin, %	3.7	4.1	11.7	15.5	9.0
Professional Products	2011	177	274			451
	Margin, %	12.8	18.4			15.7
	2010	91	207	202	243	743
	Margin, %	6.1	12.0	13.5	14.7	11.6
	2009	105	165	173	225	668
	Margin, %	6.1	8.9	10.6	11.7	9.4
Common Group costs, etc.	2011	-148	-137			-285
	2010	-125	-160	-174	-75	-534
	2009	-125	-139	-140	-103	-507
Items affecting comparability	2011	0	0			0
	2010	-95	-207	0	-762	-1,064
	2009	-424	25	56	-1,218	-1,561

* As of the first quarter of 2011, the Group's operations for floor-care products and small domestic appliances are reported as an own global business area. These operations have previously been reported within each regional business area within consumer durables. The new business area name is Small Appliances. Other business areas within consumer durables have changed their names to Major Appliances.

Net assets by business area

		Assets			Equity and liabilities			Net assets
	June 30,	June 30,	Dec. 31,	June 30,	June 30,	Dec. 31,	June 30,	June 30,	Dec. 31,
SEKm	2011	2010	2010	2011	2010	2010	2011	2010	2010
Major Appliances Europe,
Middle East and Africa	25,734	27,810	27,481	17,585	20,550	20,668	8,149	7,260	6,813
Major Appliances North America	9,699	12,350	9,072	5,160	5,790	2,060	4,539	6,560	7,012
Major Appliances Latin America	8,242	7,107	7,228	4,769	3,961	4,082	3,473	3,146	3,146
Major Appliances Asia/Pacific	3,894	3,838	3,920	1,852	1,900	1,900	2,042	1,938	2,020
Small Appliances	4,029	3,972	4,057	2,474	2,326	2,334	1,555	1,646	1,723
Professional Products	2,895	2,845	2,492	1,977	1,942	1,618	918	903	874
Other1)	6,561	4,714	6,462	5,249	5,522	6,507	1,312	-808	-45
Items affecting comparability	16	-106	4	1,216	1,327	1,643	-1,200	-1,433	-1,639
Total operating assets and
liabilities	61,070	62,530	60,716	40,282	43,318	40,812	20,788	19,212	19,904
Liquid funds	11,835	12,674	12,805	—	—	—	—	—	—
Interest-bearing receivables	—	—	—	—	—	—	—	—	—
Interest-bearing liabilities	—	—	—	13,150	12,178	12,096	—	—	—
Equity	—	—	—	19,473	19,708	20,613	—	—	—
Total	72,905	75,204	73,521	72,905	75,204	73,521	—	—	—

1) Includes common Group functions.

Operations, by business area*

SEKm	2010	2009	2008	2007	2006
Major Appliances Europe, Middle East and Africa
Net sales	36,596	40,500	42,952	44,015	42,965
Operating income	2,297	1,912	–303	1,861	2,575
Margin, %	6.3	4.7	-0.7	4.2	6.0
Major Appliances North America
Net sales	30,969	32,694	29,836	30,412	32,694
Operating income	1,442	1,299	85	1,489	1,283
Margin, %	4.7	4.0	0.3	4.9	3.9
Major Appliances Latin America
Net sales	16,260	13,302	10,485	8,794	7,357
Operating income	951	809	645	462	291
Margin, %	5.8	6.1	6.2	5.3	4.0
Major Appliances Asia/Pacific
Net sales	7,679	7,037	6,049	6,080	5,803
Operating income	793	378	93	63	–69
Margin, %	10.3	5.4	1.5	1.0	–1.2
Small Appliances
Net sales	8,422	8,464	7,987	8,309	7,987
Operating income	802	763	764	747	562
Margin, %	9.5	9.0	9.6	9.0	7.0
Professional Products
Net sales	6,389	7,129	7,427	7,102	6,941
Operating income	743	668	774	584	535
Margin, %	11.6	9.4	10.4	8.2	7.7
Other
Net sales	11	6	56	20	101
Operating income, common goup costs, etc.	–534	–507	–515	–369	–602
Total Group, excluding items affecting comparability
Net sales	106,326	109,132	104,792	104,732	103,848
Operating income	6,494	5,322	1,543	4,837	4,575
Margin, %	6.1	4.9	1.5	4.6	4.4
Items affecting comparability	–1,064	–1,561	–355	–362	–542
Total Group, including items affecting comparability
Net sales	106,326	109,132	104,792	104,732	103,848
Operating income	5,430	3,761	1,188	4,475	4,033
Margin, %	5.1	3.4	1.1	4.3	3.9

* As of the first quarter of 2011, the Group's operations for floor-care products and small domestic appliances are reported as an own global business area. These operations have previously been reported within each regional business area within consumer durables. The new business area name is Small Appliances. Other business areas within consumer durables have changed their names to Major Appliances.

Parent Company, income statement

SEKm	Q2 2011	Q2 2010	First half 2011	First half 2010	Full year 2010
Net sales	1,476	1,400	3,256	2,729	5,989
Cost of goods sold	–1,112	–1,064	–2,400	–2,003	–4,506
Gross operating income	364	336	856	726	1,483
Selling expenses	–276	–243	–549	–495	–923
Administrative expenses	–220	–200	–367	–383	–620
Other operating income	24	0	122	0	379
Other operating expenses	–10	9	–10	–95	–106
Operating income	–118	–98	52	–247	213
Financial income	927	2,459	1,015	2,658	3,251
Financial expenses	–78	30	–101	33	–29
Financial items, net	849	2,489	914	2,691	3,222
Income after financial items	731	2,391	966	2,444	3,435
Appropriations	7	6	15	7	55
Income before taxes	738	2,397	981	2,451	3,490
Taxes	21	–43	–39	–61	–283
Income for the period	759	2,354	942	2,390	3,207

Parent Company, balance sheet

SEKm	June 30, 2011	June 30, 2010	Dec. 31, 2010
Assets
Non-current assets	28,406	28,678	28,517
Current assets	17,437	21,420	19,944
Total assets	45,843	50,098	48,461
Equity and liabilities
Restricted equity	4,562	4,562	4,562
Non-restricted equity	14,196	14,018	15,089
Total equity	18,758	18,580	19,651
Untaxed reserves	613	677	629
Provisions	697	603	616
Non-current liabilities	10,307	8,442	7,836
Current liabilities	15,468	21,796	19,729
Total equity and liabilities	45,843	50,098	48,461
Pledged assets	5	6	5
Contingent liabilities	1,453	1,692	1,608

Five-year review

	2010	2009	2008	2007	2006
Net sales, SEKm	106,326	109,132	104,792	104,732	103,848
Operating income, SEKm	5,430	3,761	1,188	4,475	4,033
Margin, %	5.1	3.4	1.1	4.3	3.9
Margin, excluding items affecting
comparability, %	6.1	4.9	1.5	4.6	4.4
Income after financial items, SEKm	5,306	3,484	653	4,035	3,825
Margin, %	5.0	3.2	0.6	3.9	3.7
Margin, excluding items
affecting comparability, %	6.0	4.6	1.0	4.2	4.2
Income for the period, SEKm	3,997	2,607	366	2,925	2,648
Earnings per share, SEK	14.04	9.18	1.29	10.41	9.17
Average number of shares after
buy-backs, million	284.6	284.0	283.1	281.0	288.8
Dividend, SEK	6.50	4.00	–	4.25	4.00
Value creation, SEKm	3,772	2,884	–1,040	2,053	2,202
Return on equity, %	20.6	14.9	2.4	20.3	18.7
Return on net assets, %	27.8	19.4	5.8	21.7	23.2
Net debt/equity ratio	–0.03	0.04	0.28	0.29	–0.02
Capital expenditure, SEKm	3,221	2,223	3,158	3,430	3,152
Average number of employees	51,544	50,633	55,177	56,898	55,471

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.

Capital turnover rate

Net sales in relation to average net assets

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 Keith McLoughlin's comments on the second-quarter results 2011

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, 2011. The conference is chaired by Keith McLoughlin, President and CEO of Electrolux. Mr. McLoughlin is accompanied by Jonas Samuelson, CFO and COO, and Peter Nyquist, SVP Investor Relations and Financial Information.

A slide presentation on the second-quarter results of 2011 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 www.electrolux.com/webcast1

For further information

Peter Nyquist, Senior Vice President, 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 2011

Financial reports 2011 Interim report January – September October 28

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, 2011.