- Equity/assets ratio was 28.8% (30.1).
- Return on equity was 13.3% (10.4).
- Efforts to reduce working capital have contributed to a solid balance sheet.
- Net assets have been impacted by the acquired companies Olympic Group and CTI.
- Net borrowings amounted to SEK –5,685m (–6,367).
Net assets and working capital
Electrolux ongoing structural efforts to reduce tied-up capital has contributed to the positive trend in working capital.
Average net assets have been impacted by the acquired companies Olympic Group in Egypt, and CTI in Chile. Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets increased to SEK 27,585m (23,354), corresponding to 25.1% (23.0) of net sales.
Liquid funds as of December 31, 2012, amounted to SEK 7,403m (7,839), excluding short-term back-up credit facilities. Electrolux has two unused committed back-up credit facilities. One EUR 500m multi-currency revolving credit facility, approximately SEK 4,200m, maturing 2016 with extension options for up to two more years and a credit facility of SEK 3,400m maturing 2017.
Net borrowings
Net borrowings declined to SEK 5,685m (6,367). Net borrowings have been positively impacted by the strong cash flow from operations and working capital. During 2012, SEK 3,063m in long-term borrowings were amortized and new long-term borrowings were raised with SEK 2,569m.
Long-term borrowings as of December 31, 2012, including long-term borrowings with maturities within 12 months, amounted to SEK 11,005m with average maturity of 3.1 years, compared to SEK 11,669m and 3.0 years at the end of 2011. During 2013 and 2014, long-term borrowings in the amount of approximately SEK 2,200m will mature.
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 1.4 year (1.2).
At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 3.9% (3.7).
Cash flow and change in net borrowings
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 0.29 (0.31). The equity/assets ratio decreased to 28.8% (30.1).
Equity and return on equity
Total equity as of December 31, 2012, amounted to SEK 19,824m (20,644), which corresponds to SEK 69.28 (72.52) per share. Return on equity was 13.3% (10.4).