- Extra contributions of SEK 3,935m to Group pension funds.
- Equity/assets ratio was 31.8% (25.6).
- Return on equity was 14.9% (2.4).
- Average net assets, excluding items affecting comparability, declined to SEK 20,320m (21,529).
Net assets and working capital
Average net assets for the period amounted to SEK 19,411m (20,538). Net assets as of December 31, 2009, amounted to SEK 19,506m (20,941).
Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets declined to SEK 20,320m (21,529), corresponding to 18.6% (20.5) of net sales.
Working capital as of December 31, 2009, amounted to SEK –5,154m (–5,131), corresponding to –4.5% (–4.4) of annualized net sales.
The return on net assets was 19.4% (5.8), and 26.2% (7.2), excluding items affecting comparability.
Net borrowings
Net borrowings amounted to SEK 665m (4,556). The net debt/equity ratio was 0.04 (0.28). The equity/assets ratio was 31.8% (25.6).
During 2009, SEK 1,040m of the long-term borrowings matured and SEK 1,639m of new long-term borrowings were raised. Long-term borrowings as of December 31, 2009, including long-term borrowings with maturities within 12 months, amounted to SEK 11,153m with average maturities of 3.9 years, compared to SEK 10,967m and 4.7 years by the end of 2008. A significant portion of long-term borrowings is raised in the Euro and Swedish bond markets.
During 2010 and 2011, long-term borrowings in the amount of SEK 2,244m will mature. Liquid funds as of December 31, 2009, excluding a committed unused revolving credit facility of EUR 500m, amounted to SEK 13,357m.
The provisions for post-employment benefits as of December 31, 2009, decreased to SEK 2,168m (6,864), mainly as a result of extra contributions by SEK 3,935m to pension funds in December, see Cash flow and Consolidated cash flow statement.
The Group’s goal for long-term borrowings includes an average time to maturity of at least two years, an even spread of maturities, and an average interest-fixing period of one year. At year-end, the average interest-fixing period for long-term borrowings was 1.0 year (0.5 year).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 2.6% (5.0).
Liquid funds
Liquid funds at year-end amounted to SEK 13,357m (9,390). Liquid funds including a revolving credit facility of EUR 500m corresponded to 16.2% (12.9) of annualized net sales.
Rating
Electrolux has investment-grade ratings from Standard & Poor’s.
| Rating | ||||
| Long-term debt | Outlook | Short-term debt | Short-term debt, Nordic | |
| Standard & Poor’s | BBB | Stable | A-2 | K-2 |
Net debt/equity and equity/assets ratios
The net debt/equity ratio improved to 0.04 (0.28). The equity/assets ratio increased to 31.8% (25.6).
Equity and return on equity
Group equity as of December 31, 2009, amounted to SEK 18,841m (16,385), which corresponds to SEK 66.24 (57.78) per share. Return on equity was 14.9% (2.4). Excluding items affecting comparability, return on equity was 22.0% (4.2).