Solid balance sheet facilitates profitable growth

Our focused profitable growth strategy is facilitated by a solid balance sheet 

Financial strength and stability increase opportunities for growth

  • A solid balance sheet helps us to execute our consumer experience driven strategy through:
    • Organic growth investments:
      • Capex to drive product innovation.
      • Capex for digitalization and automation to improve competitiveness.
    • Selective acquisition strategy:
      • Bolt-on acquisitions.
      • Strengthen growth in emerging markets and aftermarket.
      • Strengthen premium offering and solutions that improve the consumer experience.
      • Contribute to increasing consumer interaction and business model transformation.
  • Net financial debt position of SEK 6.5bn as of December 31, 2019.
  • Green bond financing
    • First green bond issued in 2019 – SEK 1bn.
    • Focusing on industrial and R&D projects, which have significant potential to enable Electrolux to reduce its climate impact.
  • High return on net assets
    • Focusing on growth with sustained profitability and a small, efficient capital base enables Electrolux to achieve a high long-term return on capital.
    • Strong track record on reducing working capital over the last ten-year period. The objective is to maintain working capital at these healthy levels going forward.

Solid financial position

Illustrative capital structure showing a net debt position of SEK 6.5bn if separation of Electrolux Professional took place Dec 31, 2019

High return on net assets fueled by capital turnover

Financial information refers to the consumer business, exclusive of business area Professional Products.

Shareholder-friendly capital allocation

  • Dividend target of at least 30% of net income.
    • Historically, the Electrolux dividend rate has been considerably higher than 30%.
  • We have a long history of successful spin-offs, e.g. Autoliv and Husqvarna, by distributing the shares to Electrolux shareholders and listing them on the stock exchange.
  • Following shareholder approval to distribute Electrolux Professional, the plan is to list the company on Nasdaq Stockholm on March 23, 2020.
  • Total return and long-term value creation.
    • Average annual total return over ten-years has been 7%. 
    • Strong focus on consumer experience innovation and efficiency continues to be a solid platform for long-term value creation.


Note: 2019 dividend proposed by the Board