Net debt

As of December 31, 2021, Electrolux had a financial net debt position (excluding lease liabilities and post-employment provisions) of SEK 4,645m, compared to the financial net cash position of SEK 4,741m as of December 31, 2020. Net provisions for post-employment benefits were SEK 891m and lease liabilities amounted to SEK 3,055m as of December 31, 2021. In total, net debt amounted to SEK 8,591m, an increase by SEK 7,035m compared to SEK 1,556m per December 31, 2020.

Long-term borrowings and long-term borrowings with maturities within 12 months amounted to a total of SEK 14,392m as of December 31, 2021 with average maturity of 1.9 years, compared to SEK 14,400m and 2.8 years at the end of 2020. In the fourth quarter, amortization of long-term borrowings amounted to SEK 64m. In November Electrolux signed a EUR 250m loan credit facility with the European Investment Bank. In December this facility was fully utilized when Electrolux borrowed USD 282m, 7-year at a fixed rate with start January 2022. In December Electrolux also entered into a new EUR 1,000m multi-currency revolving credit facility linked to its sustainability goals, with a group of 11 banks. The facility has a five-year maturity, with options to extend for up to two more years. The new facility refinanced an existing EUR 1,000m syndicated facility due to mature in May 2023. During 2022, long-term borrowings amounting to approximately SEK 4.2bn will mature.

Liquid funds as of December 31, 2021, amounted to SEK 11,236m, a decrease of SEK 9,231m compared to SEK 20,467m as of December 31, 2020. In the fourth quarter 2021, SEK 6,035m were distributed to shareholders through dividend and automatic share redemption procedure and SEK 894m was used for repurchases of shares of series B.

Return on equity was 24.4% (34.1). The comparative year 2020 was impacted by a settlement gain from the distribution of Electrolux Professional, see Note 5. Adjusted for the settlement gain, return on equity was 21.7% for the full year 2020.