Debt market

As of March 31, 2020, Electrolux had a financial net debt position (excluding lease liabilities and post-employment provisions) of SEK 2,456m, compared to the financial net debt position of SEK 667m as of December 31, 2019. Net provisions for post-employment benefits was SEK 5,414m and lease liabilities amounted to SEK 3,191m as of March 31, 2020. In total, net debt amounted to SEK 11,061m, an increase by SEK 3,378m 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 13,388m as of March 31, 2020 with average maturity of 2.7 years, compared to SEK 9,682m and 3.0 years at the end of 2019.

To further strengthen the liquidity buffer, Electrolux has in March and April issued new debt of approximately SEK 8.4bn and secured a new credit facility of SEK 3bn. In March, two bond loans totalling SEK 3.0bn were issued under the Euro Medium Term Note (EMTN) program and a 2-year private placement of USD 150m was also issued. In April, two new bond loans totalling SEK 3.4bn were issued under the EMTN program and a 5-year private placement of NOK 500m was also issued. In addition to the new credit facility signed in April (expiring 2021), Electrolux has one unused committed back-up multicurrency revolving credit facility of EUR 1,000m.

In the first quarter, long-term borrowings in the amount of SEK 1,078m were amortized. During the remaining part of 2020, long-term borrowings amounting to approximately SEK 0.3bn will mature.

Liquid funds as of March 31, 2020, amounted to SEK 14,584m, an increase of SEK 3,395m compared to SEK 11,189m as of December 31, 2019.

Return on equity was 48.9% (1.4), impacted by a settlement gain from the distribution of Electrolux Professional. Adjusted for the settlement gain return on equity was 2.5% (1.4).