Report by the Board of Directors

Net sales amounted to SEK 121,093m (123,511).
Sales declined by 2.0%. Organic sales declined by 1.1%, currency translation had a negative impact of 1.0% and contributions from acquisitions was 0.1%.
Organic sales growth for Major Appliances EMEA, Major Appliances Asia/Pacific and Professional Products.
Improved results across most business areas, although operations in Latin America continued to be impacted by weak market environment.
Operating income amounted to SEK 6,274m (2,741), corresponding to a margin of 5.2% (2.2).
Strong operating cash flow after investments of SEK 9,140m (6,745).
Income for the period was SEK 4,493m (1,568), corresponding to SEK 15.64 (5.45) per share.
The Board proposes a dividend for 2016 of SEK 7.50 (6.50) per share, to be paid in two installments.

Key data

SEKm	2016	2015	Change, %
Net sales	121,093	123,511	–2.0
Organic growth, %	–1.1	2.2
Acquired growth, %	0.1	0.1
Changes in exchange rates, %	–1.0	7.8
Operating income	6,274	2,741	129
Margin, %	5.2	2.2¹⁾
Income after financial items	5,581	2,101	166
Income for the period	4,493	1,568	187
Earnings per share, SEK²⁾	15.64	5.45
Dividend per share, SEK	7.50³⁾	6.50
Operating cash flow after investments⁴⁾	9,140	6,745	36
Return on net assets, %	29.9	11.0
Capital turnover-rate, times	5.8	5.0
Net debt/equity ratio	0.02	0.43
Return on equity, %	29.4	9.9
Average number of employees	55,400	58,265

¹⁾ Operating income in 2015 included costs of SEK 2,059m related to the not completed acquisition of GE Appliances. Excluding these costs the operating margin was 3.9%.

²⁾ Basic, based on an average of 287.4 (287.1) million shares for the full year of 2016, excluding shares held by Electrolux.

³⁾ Proposed by the Board of Directors.

⁴⁾ See page 88.