- Equity/assets ratio was 30.1% (33.9).
- Return on equity was 10.4% (20.6).
- Efforts to reduce working capital have contributed to a solid balance sheet.
- Net assets have been impacted by the acquisitions of Olympic Group and CTI with SEK 7,544m.
- Net borrowings amounted to SEK –6,367m (–709).
Net assets and working capital
Average net assets for the period amounted to SEK 22,091m (19,545). Net assets as of December 31, 2011, amounted to SEK 27,011m (19,904). Net assets have been impacted by the acquisitions of Olympic Group and CTI with SEK 7,544m.
Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets increased to SEK 23,354m (20,940), corresponding to 23.0% (19.7) of net sales.
Working capital as of December 31, 2011, amounted to SEK –5,180m
The return on net assets was 13.7% (27.8), and 13.5% (31.0), excluding items affecting comparability.
Net borrowings
Net borrowings amounted to SEK 6,367m (–709). The net debt/equity ratio was 0.31 (–0.03). The equity/assets ratio was 30.1% (33.9).
Electrolux has issued in total SEK 3,500m in bond loans under the EMTN program during 2011.
During 2011, SEK 1,161m of long-term borrowings were amortized. Long-term borrowings as of December 31, 2011, including long-term borrowings with maturities within 12 months, amounted to SEK 11,669m with average maturities of 3.0 years, compared to SEK 9,590m and 3.3 years at the end of 2010. A significant portion of long-term borrowings is raised in the Euro and Swedish bond markets. In 2011, a bilateral loan of SEK 1,000m, maturing 2013, was prolonged to 2017.
During 2012 and 2013, long-term borrowings in the amount of approximately SEK 4,100m will mature. Liquid funds as of December 31, 2011, amounted to SEK 7,839m (12,805), excluding short-term back-up facilities.
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 1.2 year (0.9).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 3.7% (3.2).
Liquid funds
At year-end, liquid funds amounted to SEK 7,839m (12,805). Liquid funds corresponded to 6.9% (11.7) of annualized net sales. The acquisitions of Olympic Group and CTI have impacted liquid funds negatively for 2011.
Electrolux has two unutilized back-up credit facilities. In 2011, Electrolux replaced an existing committed revolving credit facility with a new committed EUR 500m multi-currency revolving credit facility maturing in 2016, with extension options for up to two more years. Electrolux also has an additional unused committed credit facility of SEK 3,400m maturing 2017.
Rating
Electrolux has investment-grade ratings from Standard & Poor’s. In 2010, the investment-grade rating for the long-term debt was upgraded from BBB to BBB+.
| Rating | ||||
| Long-term debt | Outlook | Short-term debt |
Short-term debt, Nordic |
|
| Standard & Poor’s | BBB+ | Stable | A-2 | K-1 |
Net debt/equity and equity/assets ratio
The net debt/equity ratio was 0.31 (–0.03). The equity/assets ratio decreased to 30.1% (33.9).
Equity and return on equity
Total equity as of December 31, 2011, amounted to SEK 20,644m (20,613), which corresponds to SEK 72.52 (72.41) per share. Return on equity was 10.4% (20.6). Excluding items affecting comparability, return on equity was 10.8% (24.4).