Electrolux President and CEO Keith McLoughlin’s comments on the results for the third quarter 2014

Continued earnings recovery
In the third quarter of 2014, the Group’s operating income increased by almost
30% to SEK 1.4 billion compared with the same period in 2013, and cash flow
after investments improved by SEK 600 million to SEK 1.6 billion. The main
factor behind this result is a strong operational recovery in Europe. The Latin
American and Asia/Pacific operations performed well in challenging macro
-economic conditions. Our sales and earnings in North America remain at a good
level and continue to strongly contribute to the Group’s overall result.

Our operations in Europe continue to recover as a result of strong focus on cost
savings, production efficiency and product portfolio management. Despite
continued difficult market conditions, with a recent weakening of leading
indicators and consumer confidence in a number of countries across both Western
and Eastern Europe, we have managed to significantly improve results. During the
third quarter we achieved an operating income of SEK 484 million, with an
operating margin of 5.5%, compared with SEK 111 million in the same period of
2013.

Our work to restore and secure long-term profitability in Europe includes cost
reductions and a focus on improving the product mix, but also actions related to
the manufacturing footprint program initiated ten years ago. As parts of the
final stages in this program, consultations are initiated with employee
representatives regarding the production in Mariestad, Sweden, and Schwanden,
Switzerland. Decisions will be taken after the consultations.

Both Major Appliances Latin America and Major Appliances Asia/Pacific have been
facing challenging market conditions with slow demand in several markets.
Although market demand in Brazil has stabilized following the very weak spring
and summer, other parts of Latin America have continued to deteriorate. In
Asia/Pacific, we have noted a weakening in demand in Australia, and also in the
Chinese market. Under these conditions, it is very encouraging to see that both
business areas have performed well and have been able to adapt to the new
situation in a timely manner.

Major Appliances North America continues to deliver results with a good
contribution to the Group’s earnings. Sales growth in the region remains
healthy. Earnings were impacted by major transitions required to meet new energy
standards from the Department of Energy as well as a continued weak market for
air-conditioners. The transition has been slower and more complex than
anticipated. Our operations within Professional Products continue to improve
with an expansion of the operating margin.

In September, we announced the largest acquisition ever in the 95-year history
of the company. The planned acquisition of GE Appliances is an important
strategic move for Electrolux which will give us a significant presence in one
of the largest appliances market. GE’s premium, high-quality appliances
complement our own brands and enhance our competitiveness as a global appliance
maker. We expect a closing of the acquisition during 2015.

We are excited about the upcoming transaction to acquire GE Appliances. However,
we are continuing the work in all our business areas with the aim of further
increasing growth and profitability. This work provides the foundation for
reaching our vision of being the best appliance company in the world as measured
by our customers, employees and shareholders.

Stockholm, October 20, 2014

Keith McLoughlin

President and CEO
For further information, contact Electrolux Press Hotline, +46 8 657 65 07.

Electrolux may be required to disclose the information provided herein pursuant
to the Securities Market Act. The information was submitted for publication at
08.00 CET on October 20, 2014.
Electrolux is a global leader in home appliances, based on deep consumer insight
and developed in close collaboration with professional users. We offer
thoughtfully designed, innovative solutions for households and businesses, with
products such as refrigerators, dishwashers, washing machines, cookers, vacuum
cleaners, air conditioners and small domestic appliances. Under esteemed brands
including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, the
Group sells more than 50 million products to customers in more than 150 markets
every year. In 2013, Electrolux had sales of SEK 109 billion and 61,000
employees. For more information go to http://group.electrolux.com.