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How we create value

Solid balance sheet facilitates profitable growth

Financial strength and stability increase opportunities for growth

Solid balance sheet and financial strength

  • A solid balance sheet helps us to execute our profitable growth driven strategy through:
    • Organic growth investments:
      • Capex to drive product 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 A- with stable outlook.
    • Balanced maturity profile for long-term borrowings.
    • Unused committed revolving credit facilities amounting to SEK 23bn as per December 2020.
  • Sustainable financing
    • First green bond issued in 2019 – SEK 1bn.
    • 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.

Financial Net Debt


As of December 31, 2020, Electrolux had a financial net cash position of SEK 4.7bn. Net debt, including lease liabilities and post-employment provisions, amounted to SEK 1.6bn.

High return on net assets fuelled by capital turnover



Shareholder-friendly capital allocation

Shareholder-friendly capital allocation

  • Dividend policy of at least 30% of net income. Historically, the Electrolux dividend rate has been considerably higher.
  • 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.
  • Total return and long-term value creation.
    • Average annual total return over ten-years has been 6%. 
    • Strong focus on consumer experience innovation and efficiency provides a solid platform for long-term value creation.

Dividend per share

As from 2019, the dividend relates to the consumer business for Electrolux, exclusive of Electrolux Professional that was listed as a separate company on Nasdaq Stockholm on March 23, 2020.

Note: 2020 dividend proposed by the Board.