Solid balance sheet
- A solid balance sheet helps us to execute our profitable growth driven strategy through:
- Organic growth investments:
- Capex to drive product and service innovation.
- Capex for digitalization and automation to improve competitiveness.
- Selective acquisition strategy:
- Bolt-on acquisitions.
- Strengthen growth in emerging markets and aftermarket.
- Contribute to increasing consumer interaction and business model transformation.
- Organic growth investments:
- Solid financial position
- Investment-grade rating from S&P Global Ratings of A- with negative outlook. (Dec 2022)
- For information on unused credit facilities, see latest interim report under Financial position.
- For latest net debt information, see Net debt at www.electroluxgroup.com/net-debt/
- Sustainable financing
- Green bonds outstanding of SEK 6bn. (Feb 2023)
- Sustainability-linked revolving credit facility contracted in 2021.
- USD 282m loan with European Investment Bank.
- Focusing on industrial and R&D projects, which have significant potential to enable Electrolux to reduce its climate impact.
- High return on net assets fueled by capital turnover
- 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 healthy levels going forward.
Shareholder-friendly capital allocation
- The Group’s goal is for the dividend to correspond to approximately 50% of the annual income.
- The Board’s objective is to maintain a solid investment grade rating, as defined by leading rating institutes, meaning that over time the Group’s net debt should not exceed two (2) times EBITDA.
- In July 2021, the Board decided to distribute a larger part of the value created to the shareholders after a review of the Group’s capital structure. Read more on www.electroluxgroup.com/PR_capital_structure
- Automatic share redemption of SEK 17 per share in 2021.
- Share buybacks executed in 2021 and 2022. Read more on www.electroluxgroup.com/en/share-buybacks/
- Electrolux has a long history of successful spin-offs, e.g. Autoliv, Husqvarna, and Electrolux Professional, by distributing the shares to Electrolux shareholders and listing them on the stock exchange.