EC1-9 and management approach: Economic performance

Economic performance

For 2011 information regarding economic management approach and reporting practices, see Accounting and valuation principles and Business areas in brief 2011. Financial objectives are presented in Financial goals.

Financial risks due to climate change

Electrolux identifies a one-to-five-year risk of change in precipitation extremes and droughts, resulting in some reduction or disruption to production capacity. The financial impacts of these risks are reported on at length in the Group's yearly reporting to the Carbon Disclosure Project. (See also Understanding and managing sustainability risks).

Market presence

The Workplace Standard stipulates that all employees are expected to be remunerated at levels no less than local minimum wage based on legally-stipulated working hours. Additionally, each operational unit is responsible for providing its employees with all legally-mandated benefits to which they are entitled (i.e.: medical and social insurance and pensions). For more information, see the Workplace standard. For more about how Electrolux reports, view Electrolux markets.

Six countries are represented in Group Management, with five of 11 members coming from countries outside Sweden—a high number for a Swedish company.

Indirect impact

Due to the nature of its operations, Electrolux does not have a tradition of contributing significantly with instructure investments. However, it aims to have a positive impact in the communities where it is active. See more at SO1, 9 and 10 Community.

Electrolux operations have both direct and indirect impacts on stakeholders such as customers, consumers, suppliers, employees, the public purse and investors. The indirect impacts occur when income earned by these stakeholders in turn circulates as transactions in the economy. Total taxes in 2011 amounted to SEK 716m (1,309), corresponding to 26% (25) of income after financial items.

The average number of employees during the year was 52,916 (51,544). See also how Electrolux regards its impact on local communities and in emerging markets in Management approach: Society and SO1, 9 and 10 Community.

The proportion of procurement from low-cost countries increased from 30% in 2004 to approximately 60% in 2011 and is expected to reach approximately 70% in a couple of years.

Indirect value also includes productivity gains from the use of Electrolux products. These have, however, not been formally calculated. Electrolux products help cut public spending by enabling self-reliant lifestyles for the elderly and those with physical disabilities. Two-income families are the norm in Western households and reduced workloads thanks to appliances are enablers for this lifestyle. This has impacted the workforce in many economies. (See video).

Government financial assistance

Electrolux does not collate government financial assistance on Group level. The Swedish government is present in the shareholder structure via shareholder representation of national pension funds.


EC1 Direct economic value

1) In addition, share buy-back or redemption of shares.