President and CEO Keith McLoughlin’s comments on the results for the second quarter of 2013

Strong performance in North America compensated weak development in Europe

Electrolux in North America maintained strong sales and earnings growth during
the second quarter, which is expected to continue throughout the year. All of
our operations in Europe continued to suffer from weak demand resulting in
negative price development. Latin America showed strong top-line growth, while
earnings were impacted by negative currency movements.
Operations in North America reported another quarter of strong earnings. In the
first half of 2013, our EBIT ­margin was close to 7%, which is a record for the
first six-month period in North America. This strong momentum was driven by an
improved US appliance market, a strong product offering in all price segments
and that we now have access to all major distribution channels. Rising appliance
consumption in North America is largely due to the strengthening of the housing
market and this development is expected to continue. As a result, we now believe
that demand for appliances in the US will increase by 5-7% in 2013.

In the second quarter, Electrolux Major Appliances in Europe performed in line
with the first quarter and gen­erated a breakeven result. Although this
represents a weak bottom line result, our gross margin is solid and showed a
healthy recovery compared with last year. This is primarily attributable to our
activities to remain cost competitive by improving our manufacturing footprint,
capitalizing on our shared global strength and the launch of high-end appliances
under the Electrolux brand to ensure a positive product mix. Despite these
improvements, we believe that 2013 will continue to be a challenging year in
Europe, although gradually improving during the second half.

In Latin America, organic growth of Electrolux sales was close to 18% in the
quarter. The EBIT was lower compared with the same period last year due to
negative currency effects in Brazil, although to a lesser degree than in the
first quarter. Given the current level of the Brazilian real, we expect a
negative currency impact in Latin America throughout the rest of the year.

Despite the difficult situation in Europe, it is encouraging to note that the
Group’s organic growth of 6% in the second quarter is above our target of 4%
through a cycle. Looking ahead to next year and beyond, we expect demand in
Europe to rebound and in combination with our measures in the region, earnings
will recover. We also expect the recovery in North America to continue for some
time, considering the strong start of this year demand is still 23% below the
peak year of 2006. As we have discussed in the past, Electrolux has globally
diversified its revenue base and emerging markets now account for more than 35%
of our sales. In a few years time, our ambition is to increase our exposure to
be 50%.

In combination with the above, the Group’s strategy to bring more consumer
-relevant innovation to the market at a faster pace provides a solid foundation
for Electrolux to meet and exceed all key financial objectives.

Stockholm, July 19, 2013

Keith McLoughlin
President and Chief Executive Officer