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Financial position

Net assets and working capital

Working capital amounted to SEK -5,800m (-6,505), corresponding to -5.1% (-5.7) of net sales.

Net assets and working capital

SEKm	Dec. 31, 2012	% of annualized net sales	Dec. 31, 2013	% of annualized net sales
Inventories	12,963	11.3	12,154	10.6
Trade receivables	18,288	15.9	19,441	17.0
Accounts payable	-20,590	-17.9	-20,607	-18.0
Provisions	-6,697		-7,556
Prepaid and accrued income and expenses	-7,467		-7,933
Taxes and other assets and ­liabilities	-3,002		-1,299
Working capital	-6,505	-5.7	-5,800	-5.1
Property, plant and equipment	16,693		17,264
Goodwill	5,541		4,875
Other non-current assets	8,003		5,263
Deferred tax assets and ­liabilities	2,158		3,359
Net assets	25,890	22.5	24,961	21.8
Average net assets	27,070	24.6	27,148	24.9
Return on net assets, %	14.8		5.8
Return on net assets, excluding items affecting comparability, %	17.9		14.0

Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets increased to SEK 28,915m (28,112), corresponding to 26.5% (25.6) of net sales.

Net assets

Net assets as of December 31, 2013, amounted to SEK 24,961m. Return on net assets, decreased to 14.0% (17.9). 1) Excluding items affecting ­comparability.

Change in net assets

SEKm	Net assets
December 31, 2013	25,890
Change in restructuring provisions	-843
Write-down of assets	-1,967
Changes in exchange rates	-1,467
Capital expenditure	3,535
Depreciation	-3,356
Other changes in fixed assets and working capital, etc.	2,964
December 31, 2013	24,961

Liquid funds

Liquidity profile

SEKm	Dec. 31, 2012	Dec. 31, 2013
Liquid funds	7,403	7,232
% of annualized net sales1)	13.1	13.2
Net liquidity	4,320	4,262
Fixed interest term, days	16	12
Effective annual yield, %	2.1	1.6

1) Liquid funds plus an unused revolving credit facility of EUR 500m and a ­committed credit facility of SEK 3,400m divided by annualized net sales. For additional information on the liquidity profile, see Note 18.

Liquid funds as of December 31, 2013, amounted to SEK 7,232m (7,403), excluding short-term back-up credit facilities. Electrolux has two unused committed back-up facilities. One EUR 500m multi-currency revolving credit facility, approximately SEK 4,400m, maturing in 2018 and a credit facility of SEK 3,400m, maturing in 2017.

Capital turnover-rate

Capital turnover-rate declined to 3.8 (3.9).

Net debt

Net debt

SEKm	Dec. 31, 2012	Dec. 31, 2013
Borrowings	13,088	14,905
Liquid funds	7,403	7,232
Financial net debt	5,685	7,673
Net provisions for post-employment benefits	4,479	2,980
Net debt	10,164	10,653
Net debt/equity ratio	0.65	0.74
Equity	15,726	14,308
Equity per share, SEK	54.96	49.99
Return on equity, %	14.4	4.4
Equity/assets ratio, %	23.2	20.8

The financial net debt increased by SEK 1,988m as a result of the negative cash flow from operations and investments as well as the dividend payment. Net provision for post-employment benefits declined by SEK 1,499m.

During 2013, SEK 1,851m in long-term borrowings were amortized and new long-term borrowings were raised with SEK 3,039m.

Long-term borrowings as of December 31, 2013, including long-term borrowings with maturities within 12 months, amounted to SEK 12,207m with average maturity of 3.3 years, compared to SEK 11,005m and 3.1 years at the end of 2012. During 2014 and 2015, long-term borrowings in the amount of SEK 3,067m 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 between one and three years. At year-end, the average interest-fixing period for long-term ­borrowings was 1.0 year (1.4).

At year-end, the average interest rate for the Group’s total interest-bearing borrowings was 3.2% (3.9).

Cash flow and change in financial net debt

Long-term borrowings, by maturity

In 2014 and 2015, long-term borrowings in the amount of SEK 3,067m will mature. For information on borrowings, see Note 18.

Rating

Electrolux has investment-grade ratings from Standard & Poor’s. In 2013, the outlook for the rating was changed to negative.

Rating

	Long-term debt	Outlook	Short-term debt	Short-term debt, Nordic
Standard & Poor’s	BBB+	Negative	A-2	K-1

Net debt/equity and equity/assets ratio

The net debt/equity ratio was 0.74 (0.65). The equity/assets ratio decreased to 20.8% (23.2).

Net debt/equity ratio1)	Equity/assets ratio1)

1) Both ratios were significantly affected from 2012 and onwards by the changed pension accounting from the updated IAS 19 Employee Benefits, see Note 1.

Equity and return on equity

Total equity as of December 31, 2013, amounted to SEK 14,308m (15,726), which corresponds to SEK 49.99 (54.96) per share. Return on equity was 4.4% (14.4).

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CEO Statement

In 2013 we continued to deliver above our growth target and delivered 4.5% in organic sales growth.

CEO Statement

I'm convinced that raising product efficiency for the growing middle class is where long-term shareholder value creation lies.

Our products

Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.

Sustainability

Achieving the Group's vision of sustainability leadership is crucial to realizing the business strategy. The objective is to develop smarter, more accessible, resource-efficient solutions that meet people's needs and improve their lives. Read the comprehensive sustainability performance review.

Awards & recognition

Financial Reporting

Net sales for the Electrolux Group in 2013 amounted to SEK 109,151m, as against SEK 109,994m in the previous year. The organic sales growth was 4.5%, while currencies had an impact of -5.3%.