Debt market

As of June 30, 2020, Electrolux had a financial net debt position (excluding lease liabilities and post-employment provisions) of SEK 2,716m, compared to the financial net debt position of SEK 667m as of December 31, 2019. Net provisions for post-employment benefits was SEK 5,183m and lease liabilities amounted to SEK 2,952m as of June 30, 2020. In total, net debt amounted to SEK 10,851m, an increase by SEK 3,168m compared to SEK 7,683m per December 31, 2019.

Long-term borrowings and long-term borrowings with maturities within 12 months amounted to a total of SEK 16,580m as of June 30, 2020 with average maturity of 3.1 years, compared to SEK 9,682m and 3.0 years at the end of 2019.

To further strengthen the liquidity buffer, Electrolux issued two new bond loans totaling SEK 3.4bn, a 5-year private placement of NOK 500m and a 7-year private placement of USD 150m. In addition, a new credit facility of SEK 3bn was secured, expiring 2021. Loans have also been repurchased to elongate the maturity profile. In July, one more credit facility was signed of SEK 10bn, expiring 2025. For more information see page 11 and www.electroluxgroup.com.

In the second quarter, long-term borrowings in the amount of SEK 1,752m were amortized, including loan repurchases. During the remaining part of 2020, long-term borrowings amounting to approximately SEK 0.2bn will mature.

Liquid funds as of June 30, 2020, amounted to SEK 17,117m, an increase of SEK 5,928m compared to SEK 11,189m as of December 31, 2019.

Return on equity was 24.5% (11.1), impacted by a settlement gain from the distribution of Electrolux Professional. Adjusted for the settlement gain return on equity was -0,1% (11.1).