Net sales for the Electrolux Group in 2012 improved by 8.3%, of which 5.5% was organic growth, 3.9% acquisitions and –1.1% changes in exchange rates. Strong sales growth in North America, Latin America and Asia offset lower sales in core markets such as Europe and Australia.
Electrolux share of sales in growth markets is increasing. Share of sales in growth markets has increased from 20% to 35% in five years. In 2012, market demand in Europe and North America declined, while the market trend in such regions as Latin America and Southeast Asia was strong. Electrolux target is to strengthen the position in core markets and increase the share of sales in growth markets to at least 50% within a five-year period.
Electrolux net sales per market, %
Electrolux vision is to become the best appliance company as measured by customers, employees, and shareholders. With innovative products under strong brands and by leveraging the Group’s global strength and scope, Electrolux aims to create a platform for profitable growth. Dedicated employees with diverse backgrounds and a leadership in sustainability are necessary for Electrolux to achieve its vision.
The sustainability strategy is to develop smarter, more accessible, resource-efficient solutions that meet people’s needs and improve their lives. The main areas:
In 2012, for the sixth consecutive year, Electrolux was recognized as leader of its industry sector in the prestigious Dow Jones Sustainability World Index (DJSI).
The financial goals set by Electrolux aim to strengthen the Group's leading, global position in the industry and assist in generating a healthy total return for Electrolux shareholders. The objective is growth with consistent profitability. Key ratios exclude items affecting comparability.
Financial goals over a business cycle
The Board of Directors proposes a dividend for 2012 of SEK 6.50 for a total dividend payment of approximately SEK 1,860m. The proposed dividend corresponds to approximately 55% of income for the period, excluding items affecting comparability. The Group’s goal is for the dividend to correspond to at least 30% of income for the period, excluding items affecting comparability. Historically, the Electrolux dividend rate has been considerably higher than 30%.
The Electrolux share is listed on Nasdaq OMX Stockholm. The market capitalization of Electrolux at year-end 2012 was approximately SEK 53 billion (34), which corresponded to 1.4% (1.0) of the total value of Nasdaq OMX Stockholm.
Total shareholder return during the year was 62.7%. Over the past ten years, the average total return on an investment in Electrolux shares has been 15.1% annually. The corresponding figure for the SIX Return Index was 12.6%.