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.
  • Solid financial position
    • Investment-grade rating from S&P Global Ratings of BBB+ with stable outlook. (March 2023)
    • 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.

Long-term borrowings, by maturity

As per December 31, 2022.

 

Return on net assets

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
  • 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.

Distribution to shareholders

Distribution to shareholders paid in the year.
Note: In 2021 and 2022 Electrolux repurchased own shares of series B for the total amount of SEK 894m and SEK 2,138m, respectively. In accordance with the Board’s proposal, the 2023 Annual General Meeting resolved to not distribute any dividend for the fiscal year 2022.