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

SWEDEN


Earnings Continue to Improve
Electrolux’ earnings increased in the fourth quarter of 2014 and the operating
income rose by 20 percent to SEK 1,472 million. This is the result of an
operational recovery in several major regions; Europe, Latin America and
Asia/Pacific. Professional Products also continued to show a solid performance.
Earnings in North America were impacted by the transition to comply with the new
energy standards. Of the Group’s six business areas, five reached an EBIT margin
of more than 6 percent in the quarter.

The initiatives to restore profitability in our operations in Europe continue to
show good results. Cost savings in combination with higher efficiency in the
production and an active product portfolio management led to a significant
improvement in the operating income.  An improved product mix has offset lower
sales volumes and a structural price pressure. The growth in built-in kitchen
continued. We expect the total European market to grow by 1-2 percent in 2015,
although the development in Russia is very uncertain.

The North American operations continued to show organic sales growth as the
product mix improved. However, volumes fell to some extent, as a result of lower
sales within freezers and a continued weak market for air-conditioners. As in
the third quarter, earnings were negatively impacted by the major transition
required to meet new energy standards which affect refrigeration and freezers.
We expect continued impact from this transition process also in the first half
of 2015. The new cooking plant in Memphis is still being ramped up, which has an
impact on the cost efficiency. For 2015, we expect continued market growth in
North America in the range of 3-5 percent.

The market environment in Latin America remains challenging, and demand in the
region continued to deteriorate in the quarter. Under such conditions it is
encouraging that we managed to increase sales volumes in the important Brazilian
market. Price increases in combination with measures to reduce costs have led to
good results. Demand in Latin America appears to be stabilizing although there
is a high degree of uncertainty, particularly in light of the recent
depreciation of several currencies in the region.

Cost reductions in our operations in Asia/Pacific contributed to a good earnings
development in the final quarter of 2014. Market demand in Australia improved
towards the end of the year, after several quarters of negative growth, whereas
demand in China and most markets in Southeast Asia remained weak. In this
environment, the Group managed to increase sales volumes, with particular
strength in Southeast Asia.

The manufacturing footprint program launched in 2004 is now in its final stage.
The aim of the program is to increase the Group’s competitiveness through moving
manufacturing from high-cost regions into low-cost regions. Today, almost 70
percent of our production is in low-cost countries compared with 25 percent ten
years ago. Although there will likely be restructuring programs going forward,
we expect these to be much less extensive. Thus, from this year we will charge
restructuring costs directly to earnings.

2014 was a good year for Electrolux and we generated more than SEK 6.6 billion
in cash flow, representing a cash conversion of almost 140 percent. The Group is
well positioned to continue to grow profitably also in 2015, with a focus on
further increasing shareholder value. We expect to close the pending acquisition
of GE Appliances during the year, which will strongly contribute to the
achievement of the Group’s vision of being the best appliances company in the
world as measured by our customers, employees and shareholders.

Stockholm, January 28, 2015

Keith McLoughlin

President and CEO
For further information, please contact:

Catarina Ihre, Vice President Investor Relations at +46 (0)8 738 60 87

Electrolux Press Hotline, +46 8 657 65 07.

Electrolux discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 08.00 CET on January 28, 2015
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 2014, Electrolux had sales of SEK 112 billion and 60,000
employees. For more information go to www.electroluxgroup.com.

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