CONSOLIDATED RESULTS, 2000

CONSOLIDATED RESULTS, 2000 Net income per share rose 16%, excluding items affecting comparability Amounts in SEKm, 2000 1999 Change Q4/00 Q4/99 Change unless otherwise stated Net sales 124,493 119,550 4% 29,421 28,406 4% Data excluding items affecting 1) comparability : Operating income 8,050 7,420 8% 1,717 1,858 -8% Margin, % 6.5 6.2 5.8 6.5 Income after financial 6,978 6,358 10% 1,403 1,569 -11% items Net income per share, 13.25 11.45 16% 3.05 2.85 7% 2) SEK Value creation 2,423 1,782 641 286 562 -276 Return on equity, % 18.5 17.2 Data including items affecting 1) comparability : Operating income 7,602 7,204 6% 1,269 1,858 -32% Margin, % 6.1 6.0 4.3 6.5 Income after financial 6,530 6,142 6% 955 1,569 -39% items Net income per share, SEK 12.40 11.40 9% 2.20 2.85 -23% Return on equity, % 17.3 17.1 3) Dividend, SEK 4.00 3.50 1) Items affecting comparability amounted to SEK -448m in 2000 and SEK -216m in 1999. 2) In 2000, based on an average of 359.1m. outstanding shares after buy-backs for the full year (1999:366.2m), and 346.0m. for Q4. 3) 2000 proposed. * Good growth in income for Consumer Durables, North America, decline in Europe page 6 * Consumer Durables outside North America and Europé showed positive income for full year page 6 * Continued good growth in sales and income for Professional Outdoor Products page 7 * Provision of SEK 883m in fourth quarter for alignment of organization and other cost adjustments page 2 * Board proposes increasing dividend to SEK 4.00 page 8 Report by the Board of Directors for 2000 Net sales and income Net sales for the Electrolux Group in 2000 rose to SEK 124,493m, as against SEK 119,550m in the previous year. Of the 4% increase in sales, changes in the Group's structure accounted for -3.2%, changes in exchange rates for +3.6%, and volume/price/mix for +3.7%. For changes in Group structure see page 7. Group operating income increased to SEK 7,602m (7,204), which corresponds to 6.1% (6.0) of net sales, and income after financial items rose to SEK 6,530m (6,142), which corresponds to 5.2% (5.1) of net sales. Net income improved to SEK 4,457m (4,175), corresponding to SEK 12.40 (11.40) per share. Income excluding items affecting comparability The above income-figures include items affecting comparability in the amount of SEK -448m (-216), see below. Exclusive of these items operating income rose by 8% to SEK 8,050m (7,420), corresponding to 6.5% (6.2) of net sales, and income after financial items improved by 10% to SEK 6,978m (6,358), corresponding to 5.6% (5.3) of net sales. Net income increased by 13% to SEK 4,762m (4,200), corresponding to SEK 13.25 (11.45) per share. Items affecting comparability Items affecting comparability in 2000 amounted to SEK -448m and comprise the items listed in the table below. Items affecting comparability in 1999 amounted to SEK -216m and included a capital gain of SEK 1,625m on divestment of operations, as well as a provision of SEK -1,841m referring to a court decision in pension litigation in the US. Items affecting comparability in 2000, SEKm Capital gain on divestment of professional 241 refrigeration in Q1 Restructuring, Professional Indoor Products in Q1, referring to implementation of new -241 organization Restructuring, Consumer Durables -883 Allocation of SPP pension surplus 435 Total -448 Provision in Q4 for cost adjustments In the fourth quarter of 2000 the Group made a provision of SEK 883m for the following adjustments, which will be implemented during 2001: Action Approx. amount, Approx. Savings SEKm 2001, SEKm Alignment of pan-European organization, 350 160 Electrolux Home Products, Europe Alignment of organization and logistics structure, 200 230 Electrolux Home Products, North America Consolidation of production structure, 200 20 floor-care products Rationalization of IT structure, 130 30 and other items Effects of changes in exchange rates Changes in exchange rates in terms of both translation and transactions had a net positive effect of approximately SEK 375m (325) on income after financial items. This is traceable largely to the strengthening of the dollar and the British pound. The weakening of the euro also had a positive impact in view of the Group's large production base within EU. Financial items Net financial items amounted to SEK -1,072m (-1,062), corresponding to -0.9% (-0.9) of sales. Major factors affecting the financial net in 2000 were higher interest rates in the amount of approximately SEK -60m and financing of share buy-backs amounting to approximately SEK -60m, while lower average net borrowings had a positive impact of approximately SEK 70m. In 1999, financial items were impacted by non-recurring items amounting to SEK -105m, which was the net of SEK -240 referring to unathorized trading by an employee in Germany and SEK 135m from the discontinuation of the Group's hedging of euro equity. Taxes Total taxes for 2000 amounted to SEK 2,121m (2,005), which corresponds to 32.5% (32.6) of income after financial items. Exclusive of items affecting comparability, the actual tax rate was 32.4% (34.5). The improvement refers mainly to comprehensive rationalization of the Group's legal structure. Fourth quarter 2000 Sales for the Group in the fourth quarter of 2000 amounted to SEK 29,421m, as against SEK 28,406m for the corresponding period in 1999. Of the 4% increase in sales, changes in the Group's structure accounted for -2%, changes in currency rates accounted for +8%, and volume and price/mix for -2%. Including items affecting comparability, operating income declined to SEK 1,269m (1,858), corresponding to a margin of 4.3% (6.5). Income after financial items decreased to SEK 955m (1,569), corresponding to a margin of 3.2% (5.5). Net income amounted to SEK 741m (1,051), which corresponds to SEK 2.20 (2.85) per share. Income excluding items affecting comparability Excluding items affecting comparability, operating income declined by 8% to SEK 1,717m (1,858) and income after financial items by 11% to SEK 1,403m (1,569). Net income amounted to SEK 1,046m (1,051), corresponding to SEK 3.05 (2.85) per share. Cash flow The cash flow generated by operations and after investments decreased to SEK 2,732m (5,523), after adjustment for exchange- rate effects. The decline is traceable mainly to an increase in working capital and lower net payments for acquisitions and divestments. The improvement in income from operations made a positive contribution. The rise in working capital was due to an increase in interest-bearing assets and higher sales volume. Equity and net debt/equity ratio Group equity as of December 31, 2000 amounted to SEK 26,324m (25,781), which corresponds to SEK 77 (70) per share. The return on equity was 17.3% (17.1). Excluding items affecting comparability, the return on equity was 18.5% (17.2). Net borrowings at year-end amounted to SEK 16,976m (13,423) and the net debt/equity ratio was 0.63 (0.50). Liquid funds at year-end amounted to SEK 8,422m (10,312), corresponding to 6.8% (8.7) of net sales. The Group continued to amortize long-term and short-term loans during the year. For definitions of the above ratios, see page 19. Net assets Net assets at year-end amounted to SEK 39,026m (36,121) corresponding to 30.4% (30.6) of sales, after adjustment for exchange-rate effects. Average net assets for the year amounted to SEK 40,194m (40,270), after adjustment for items affecting comparability. The return on net assets was 19.6% (18.3). Excluding items affecting comparability, the return on net assets was 20.0% (18.4). Inventories and accounts receivable Inventories in 2000 amounted to SEK 17,295m (16,549) and accounts receivable to SEK 23,214m (21,513), which after adjustment for exchange-rate effects corresponds to 13.5% (14.0) and 18.1% (18.2) of net sales, respectively. Value creation In 2000 the Group created total value of SEK 2,423m (1,782), representing an increase of SEK 641m over 1999. The increase is traceable to sales growth of 4.1%, an improvement in operating margin to 6.5% (6.2) excluding items affecting comparability, and an improvement in the capital turnover rate to 3.10 (2.97). 2000 1999 Change Value creation, SEKm Consumer Durables Europe 986 1,224 -238 North America 1,669 1,036 633 Rest of the world -1,056 -1,398 342 Total Consumer Durables 1,599 862 737 Professional Products Indoor 713 896 -183 Outdoor 756 663 93 Total Professional Products 1,469 1,559 -90 Common Group costs, etc. -645 -639 -6 Total 2,423 1,782 641 Value created is defined as operating income excluding items affecting comparability, less a weighted average cost of capital (WACC) on average net assets. The Group's WACC is calculated at 14% before tax. The goal for the period 2000-2002 is to create average annual growth in value of at least SEK 1,000m. Operations by business area Demand increased in most of the Group's product areas during the first two quarters both in Europe and the US, but slackened gradually in the second half of the year. Group operating income during the second half was also adversely affected by more severe price competition and higher costs for materials. Market conditions in Asia and Latin America improved in comparison with 1999. Of the Group's business areas, Consumer Durables achieved higher sales and operating income than in the previous year. The improvements refer to North America, Asia and Latin America. Sales for Consumer Durables in Europe were largely unchanged, while operating income declined. Professional Products reported lower total sales and operating income as a result of divestments, as well as lower volumes and a decline in income for indoor products. Professional Outdoor Products achieved good growth in both sales and operating income. Consumer Durables The European market for core appliances increased in volume by almost 4% over the previous year. The market was strong in the first two quarters, but the rate of growth declined in the second half of the year. In the fourth quarter, the market showed a volume increase of about 1%. Sales of core appliances in Europe through Electrolux Home Products reported good growth in volume, particularly in Eastern Europe. However, operating income declined from 1999 as a result of downward pressure on prices and higher costs for materials, mainly in the second half of the year. The Group also had an unfavorable mix in terms of products, markets and customer categories. Costs referring to development of a new pan-European organization also had an adverse effect on income. In the US, market volume for core appliances rose by about 2%, and by 4% for major appliances, i.e. inclusive of room air- conditioners, dehumidifiers and microwave ovens. The American market also increased during the first two quarters and then slackened during the last two. In the fourth quarter, the market decline was -4% for core appliances, and -2% for major appliances. Electrolux Home Products in the US reported an increase in volume for both white goods and room air-conditioners which was considerably higher than market growth. Operating income was unchanged in comparison with 1999. In Brazil, the market for core appliances increased and the Group achieved considerably higher sales volume. Operating income improved over last year on the basis of higher volume and internal changes, but remained negative. Income for the fourth quarter showed a marked improvement and was positive. The Group also reported good sales growth for core appliances in China, India and the ASEAN countries. Overall, operating income for operations outside Europe and North America was positive in comparison with a loss in 1999. Demand for floor-care products rose for the full year in both Europe and the US. Both markets showed slower growth during the second half, however. The increase in demand referred mainly to the low end of the market. The Group achieved good sales growth in both the European and the American markets. Higher volumes and productivity led to a considerable improvement in operating income for floor-care products. Demand in Europe for outdoor products for the consumer market was somewhat higher than in the previous year. The Group achieved good sales growth. Operating income for the European operation showed a marked improvement, although from a low level in 1999. Demand for outdoor products in the US increased for gas-powered trimmers and light-duty chainsaws, while market volume decreased for other products such as electric trimmers, lawn mowers and tractors. The Group reported good growth in sales for most product categories and a considerable improvement in operating income. Total sales for the Consumer Durables business area were higher than in 1999. Operating income showed good growth, and margin improved. Professional Indoor Products Demand for food-service equipment was lower during most of the year in comparison with 1999, but increased somewhat in the fourth quarter. Group sales in this product area declined slightly, mainly as a result of divestments and lower deliveries for large projects resulting from a greater focus on more profitable market segments. The performance of this product line was influenced by on-going restructuring, including divestment of non-core businesses with low profitability. Both operating income and margin improved over the previous year. Sales of laundry equipment declined from the previous year due to lower volumes in Western Europe and Japan. Production problems and delayed deliveries related to the launch of a new product range also contributed to the decrease in sales. Operating income showed a marked decline from the high level of 1999. Income was also adversely affected by lower results for the operation in heavy- duty equipment that was divested in October. The market for absorption refrigerators and other equipment for the recreational vehicle industry showed an upturn for the year as a whole in both Europe and the US. Sales for leisure appliances showed good growth, and operating income improved. The newly acquired Seitz operation contributed to the positive trend for sales and income. Demand for compressors and motors rose during the first two quarters and then slackened during the second half of the year. Sales for the components product line were largely unchanged in comparison with 1999. Operating income showed a marked decline due to lower volumes for compressors, increased pressure on prices, and negative results in the Group's joint ventures for compressors in China and Egypt. Professional Outdoor Products Demand for chainsaws increased in most markets. The Group achieved good sales growth in Europe, the Far East and Latin America. Operating income rose substantially over the previous year. Income was favorably affected by the strong dollar as the Husqvarna operation exported significant volumes of chainsaws from Sweden to North America. The operations in turf-care equipment and power cutters also reported favorable trends for sales and operating income. Major changes in the Group during 2000 Acquisitions within Consumer Durables In May the Group acquired the right to the Electrolux brand and corporate name in Canada and the US from Electrolux LCC, an American company engaged in direct sales of floor-care products. The purchase price was USD 50m. The seller has the right to use the name on vacuum cleaners and after-market parts during a transition period. In November a Heads of Agreement was signed for acquisition of the household appliance division of Email Ltd in Australia. Email is Australia's largest producer of white goods, with annual sales of approximately SEK 4,700m and about 4,800 employees. The purchase price is AUD 485m (approximately SEK 2,500m), which may be adjusted with reference to the value of net assets on closing date. Acquisitions and divestments within Professional Products As of January 1, the Group acquired the Seitz group in Germany, which manufactures equipment for caravans and mobile homes. Seitz has annual sales of approximately SEK 450m and about 350 employees. As of September 1, Bluebird International Inc. in the US was acquired. Bluebird produces landscape maintenance equipment and has annual sales of approximately SEK 180m and 75 employees. In November the Group acquired JKS Lamage in Canada, which has annual sales of approximately SEK 50m and 30 employees, and Magnum Diamond & Machinery in the US, with annual sales of approximately SEK 110m and 45 employees. Both companies produce diamond tools and will be integrated in the Dimas diamond tool operation within Professional Outdoor Products. As of January 31, the major part of the operation in professional refrigeration equipment was divested. The remaining operations in Brazil, China and Eastern Europe were divested during the spring of 2000. In 1999, this operation had annual sales of approximately SEK 2,300m and about 2,000 employees. As of June 1, the Group divested A/S Wodshow & Co. in Denmark, which produces mixers for restaurants and industrial kitchens. Wodshow has annual sales of approximately SEK 80m and about 80 employees. As of October 1, the Group also divested Washex in the US, an operation in heavy-duty laundry equipment with annual sales of approximately SEK 300m and about 160 employees. Employees The average number of employees in 2000 was 87,128 (92,916), of whom 8,159 (8,881) were in Sweden. At year-end the total number of employees was 86,270 (91,758). The decline is traceable to structural changes and divestments as well as improved productivity. Parent company Net sales for the parent company in 2000 amounted to SEK 7,344m (6,685), of which SEK 4,191m (3,732) referred to sales to Group companies and SEK 3,153m (2,953) to sales to external customers. Net income amounted to SEK 6,504m (2,734). Proposed dividend The Board of Directors proposes an increase of the dividend for 2000 to SEK 4.00 per share, for a total dividend payment of SEK 1,365m (1,282). Allocation of SPP pension surplus During the year the Swedish insurance company SPP allocated a portion of the surplus in its pension funds to participating companies. The Electrolux Group's share of this surplus amounted to SEK 435m, of which SEK 264m refers to the parent company. This amount has been included in the accounts for 2000. Payments from SPP to Electrolux in 2000 amounted to SEK 279m. The remaining SEK 156m will be received in the first quarter of 2001. Agreement in pension litigation In July 2000, the Group's US subsidiary White Consolidated Industries Inc. (WCI) reached an agreement in pension litigation with the Pension Benefit Guaranty Corporation (PBGC) in the US. The agreement stipulates that WCI refrain from appealing the decision against the company which was rendered in a US court, and that PBGC will correspondingly not exercise the judicial rights which follow from the court's decision. In accordance with the agreement and subject to approval by appropriate authorities, WCI assumes responsibility for payment of the pension plans in question. In the event that this responsibility cannot be fulfilled, WCI will pay USD 180 million plus interest to PBGC and the beneficiaries. It is expected that the final total cost will be covered by the provision of USD 225 million (SEK 2,135m) which the Group made in 1999. Repurchase of own shares The Annual General Meeting in April 2000 authorized a program for repurchase up to 10% of the total number of shares during the period prior to the next Annual General Meeting. As of December 31, 2000 the Group had repurchased 25,035,000 series-B shares for a total of SEK 3,190m, corresponding to an average price of SEK 127.40 per share. Electrolux thus owns 6.84% of the total number of shares, corresponding to a total par value of SEK 125m. The Group has no voting rights for these shares. The total number of shares is 366,169,580. The Board of Directors has decided to propose that the Annual General Meeting in April 2001 renew an authorization for the Board to decide on purchase and sale of own A- and/or B-shares up to 10% of the total number of shares, i.e. at present to allow further repurchase of up to 3.16% of the total number of shares. The authorization would cover the period up to the next Annual General Meeting. The intention is to continuously maintain a capability to adapt the capital structure to the needs of the Company, thereby contributing to increased shareholder value, and to effectively meet the Company' s obligations under its option program. Shares could also be sold in connection with acquisitions, with deviation from the preferential rights of shareholders. Both purchases and sales would be implemented through offers directed to all shareholders, or by transactions on any stock exchange or regulated market where the Company's shares are quoted, at a price per share within the at each time registered interval between the highest buying price and the lowest selling price. Payment for shares sold may be made in cash, in kind, or by offsetting of claims against the Company. The Board may establish further conditions for the sale or assignment of shares. Option programs In 1998, an annual recurrent program for employee stock options was introduced for about 100 senior managers. Options are allotted on the basis of value created according to the Group's model for value creation. If no value has been created in comparison with the previous year, no options are issued. The maturity period of the options is 5 years. The options may not be exercised until at least 12 months after the date of allotment. The options can be used to purchase Electrolux B-shares at a strike price which is 15% higher than the average closing price of the Electrolux B-share on the OM Stockholm Exchange during a limited period prior to allotment. The total number of options allotted under the 1998 program is 1,128,900 and the strike price is SEK 170. The total number of options allotted under the 1999 program is 1,770,200 and the strike price is SEK 216. Options for the 2000 program will be allotted during the first half of 2001 on the basis of the increase in value created in 2000 relative to 1999. A provision of SEK 81m including employer contributions has been made for the 2000 program. The Board has decided to grant Wolfgang König, the new Head of white goods outside North America, 118,400 synthetic employee stock options with the right to receive a cash amount for each option when exercised, calculated as the difference between the current share price and the strike price of SEK 147. The options may be exercised until July 1, 2006. The options have been allotted without consideration and as compensation for options he lost the right to when joining the Electrolux Group. This program will be hedged by an equity swap. New employee stock option program for 2001 Electrolux has decided to introduce a new employee stock option program in 2001 under which approximately 3 million options will be allotted to about 200 senior managers. The options will allotted be free of charge, with a maturity period of 7 years. The strike price will exceed by 10% the average closing price of the Electrolux B-share on the OM Stockholm Exchange during a limited period prior to allotment. In order to cost-effectively meet obligations under the 2001 option program, the Board has decided to propose the Annual General Meeting to resolve that out of previously repurchased shares in the company, 3 million shares of series B may be sold to fulfil the undertakings under the program. Given such resolution, the cost for the 2001 program is estimated at SEK 30-40m, assuming a share price not higher than SEK 155 at allotment. Outlook for 2001 Market conditions in 2001 are difficult to predict, particularly in the US. A decline in the American market started in the latter part of 2000. Demand in Europe, Latin America and Asia is expected to show continued growth. In the light of the above market conditions and on the basis of internal cost adjustments the Group should achieve improvements in income and value created for the full year 2001. Stockholm, February 9, 2001 AB ELECTROLUX (publ) Board of Directors Factors affecting forward-looking statements The Report by the President and CEO and the Report by the Board of Directors contain "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals or targets of Electrolux for future periods and future business and financial plans. Actual results may differ materially from these goals and targets due to a variety of factors. These factors include but may not be limited to the following; the success in developing new products and marketing initiatives, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates, and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals, competitive pressures to reduce prices, significant loss of business from major retailers, consumer demand, and the effect of local economies on product demand. Financial reports in 2001 st Quarterly report, 1 quarter April 25 nd Quarterly report, 2 quarter July 20 rd Quarterly report, 3 quarter October 26 Financial information from Electrolux is also available on www.electrolux.com Consolidated income Fourth quarter statement SEKm 2000 1999 2000 1999 Net sales 124,493 119,550 29,421 28,406 Cost of goods sold -93,549 -87,288 -22,321 -20,438 Selling expenses -17,092 -18,450 -4,142 -4,510 Administrative expenses -5,585 -6,261 -1,150 -1,523 Other operating -217 -131 -91 -77 income/expense Items affecting -448 -216 -448 - comparability Operating income* 7,602 7,204 1,269 1,858 Margin, % 6.1 6.0 4.3 6.5 Financial items, net -1,072 -1,062 -314 -289 Income after financial items 6,530 6,142 955 1,569 Margin, % 5.2 5.1 3.2 5.5 Taxes -2,121 -2,005 -231 -528 Minority interests in net 48 38 17 10 income Net income 4,457 4,175 741 1,051 * Including depreciation in -3,810 -3,905 -1,018 -954 the amount of: Consolidated balance sheet SEKm Dec. 31, 2000 Dec. 31, 1999 Assets Fixed assets 29,680 28,051 Inventories, etc. 16,880 16,171 Accounts receivable 23,214 21,513 Other receivables 9,093 5,597 Liquid funds 8,422 10,312 Total assets 87,289 81,644 Equity and liabilities Shareholders' equity 26,324 25,781 Minority interests 810 825 Interest-bearing liabilities and 25,398 23,735 provisions Non-interest-bearing liabilities and 34,757 31,303 provisions Total equity and liabilities 87,289 81,644 Parent company income statement SEKm 2000 1999 Net sales 7,344 6,685 Operating expense -7,742 -6,931 Operating income -398 -246 Group contributions 1,229 861 Financial items, net 5,635 2,182 Income after financial items 6,466 2,797 Allocations 1 -39 Income before taxes 6,467 2,758 Taxes 37 -24 Net income 6,504 2,734 Parent company balance sheet SEKm Dec. 31, 2000 Dec. 31, 1999 Assets Fixed assets 32,520 31,423 Inventories, etc. 690 630 Current receivables 1,242 739 Receivable from subsidiaries 4,517 2,933 Liquid funds 2,701 3,731 Total assets 41,670 39,456 Equity and liabilities Shareholders' equity 15,058 13,029 Untaxed reserves 586 587 Payable to subsidiaries 11,212 10,516 Interest-bearing liabilities and 13,095 13,588 provisions Non-interest-bearing liabilities 1,719 1,736 and provisions Total equity and liabilities 41,670 39,456 Cash-flow statements Group Parent company SEKm 2000 1999 2000 1999 Operations Income after financial items 6,530 6,142 6,467 2,797 Depreciation according to plan charged 3,810 3,905 226 216 against above income Provisions and capital 628 -286 -40 -29 gain/losses Taxes paid -2,329 -2,166 19 -27 Changes in operating assets and -2,540 1,065 -655 1,840 liabilities Cash flow from operations 6,099 8,660 6,017 4,797 Investments Investments in/divestments of operations 180 1,702 - - and trademark Capital expenditure -4,423 -4,439 -565 -302 Other 876 -400 -1,501 2,254 Cash flow from investments -3,367 -3,137 -2,066 1,952 Cash flow from operations and 2,732 5,523 3,951 6,749 investments Dividend -1,282 -1,099 -1,282 -1,099 Repurchase of shares -3,193 - -3,193 - Cash flow after dividends -1,743 4,424 -524 5,650 Change in interest-bearing -422 -4,592 -506 -3,955 liabilities Total cash flow -2,165 -168 -1,030 1,695 Liquid funds at beginning of 10,312 11,387 3,731 2,036 year Exchange-rate differences referring to liquid funds 275 -907 - Liquid funds at year-end 8,422 10,312 2,701 3,731 Change in net borrowings Total cash flow excl. change in -1,743 4,646 -524 5,650 loans Net borrowings at beginning of -13,423 -17,966 -9,653 -15,303 year Exchange-rate differences referring to -1,810 -103 - net liquidity Net borrowings at year-end -16,976 -13,423 -10,177 -9,653 Net sales by business area SEKm Fourth quarter 2000 1999 2000 1999 Consumer Durables Europe 42,704 42,640 11,438 11,163 North America 46,581 41,452 9,106 8,433 Rest of the world 9,203 7,597 2,717 1,992 Total Consumer Durables 98,488 91,689 23,261 21,588 Professional Products Indoor 17,561 20,450 4,181 4,860 Outdoor 8,039 7,100 1,862 1,876 Total Professional 25,600 27,550 6,043 6,736 Products Other 405 311 117 82 Total 124,493 119,550 29,421 28,406 Operating income by business area SEKm Fourth quarter 2000 1999 2000 1999 Consumer Durables Europe 2,179 2,444 691 903 Margin, % 5.1 5.7 6.0 8.1 North America 3,577 2,895 640 509 Margin, % 7.7 7.0 7.0 6.0 Rest of the world 23 -342 136 -135 Margin, % 0.2 -4.5 5.0 -6.8 Total Consumer Durables 5,779 4,997 1,467 1,277 Margin, % 5.9 5.4 6.3 5.9 Professional Products Indoor 1,577 1,902 168 449 Margin, % 9.0 9.3 4.0 9.2 Outdoor 1,153 983 260 270 Margin, % 14.3 13.8 14.0 14.4 Total Professional Products 2,730 2,885 428 719 Margin, % 10.7 10.5 7.1 10.7 Common Group costs etc. -459 -462 -178 -138 Items affecting comparability -448 -216 -448 - Total 7,602 7,204 1,269 1,858 Value creation SEKm Fourth quarter 2000 1999 2000 1999 Consumer Durables Europe 986 1,224 395 627 North America 1,669 1,036 161 123 Rest of the world -1,056 -1,398 -148 -385 Total Consumer Durables 1,599 862 408 365 Professional Products Indoor 713 896 -58 210 Outdoor 756 663 161 194 Total Professional 1,469 1,559 103 404 Products Common Group costs, etc. -645 -639 -225 -207 Total 2,423 1,782 286 562 Key ratios Fourth quarter 2000 1999 2000 1999 Net income per share, 12.40 11.40 2.20 2.85 1) SEK 2) Return on equity, % 17.3 17.1 Return on net assets, 19.6 18.3 3) % 4) Net debt/equity ratio 0.63 0.50 Capital expenditure, SEKm 4,423 4,439 1,328 1,172 Average number of 87,128 92,916 87,500 93,500 employees 1) For 2000 based on average no. of shares for the period after buy-backs, i.e. 359.1 million for the full year and 346.0 million for the fourth quarter. No. of shares in 1999 was 366.2 million. 2) Annualized net income for the year, expressed as a percentage of opening equity. 3) Annualized operating income, expressed as a percentage of average net assets. 4) Net borrowings, i.e. interest-bearing liabilities less liquid funds, in relation to adjusted equity. The latter is defined as equity including minority interests. Quarterly figures Net sales and income, per quarter st nd rd th 1 2 3 4 Full qtr qtr qtr qtr year Net sales, SEKm 2000 31,229 34,199 29,644 29,421124,493 1999 29,053 33,021 29,070 28,406119,550 Operating income, 2000 2,050 2,453 1,830 1,269 7,602 SEKm Margin,% 6.6 7.2 6.2 4.3 6.1 1) 2000 2,050 2,453 1,830 1,717 8,050 Margin, % 6.6 7.2 6.2 5.8 6.5 1999 1,656 2,151 1,539 1,858 7,204 Margin,% 5.7 6.5 5.3 6.5 6.0 1) 1999 1,656 2,151 1,755 1,858 7,420 Margin,% 5.7 6.5 6.0 6.5 6.2 Income after 2000 1,786 2,285 1,504 955 6,530 financial items, SEKm Margin,% 5.7 6.7 5.1 3.2 5.2 1) 2000 1,786 2,285 1,504 1,403 6,978 Margin, % 5.7 6.7 5.1 4.8 5.6 1999 1,384 1,835 1,354 1,569 6,142 Margin,% 4.8 5.6 4.7 5.5 5.1 1) 1999 1,384 1,835 1,570 1,569 6,358 Margin,% 4.8 5.6 5.4 5.5 5.3 Net income, SEKm 2000 1,188 1,510 1,018 741 4,457 1) 2000 1,188 1,510 1,018 1,046 4,762 1999 912 1,188 1,024 1,051 4,175 1) 1999 912 1,188 1,049 1,051 4,200 Net income per 2000 3.25 4.10 2.85 2.20 12.40 share, SEK 1) 2000 3.25 4.10 2.85 3.05 13.25 1999 2.50 3.25 2.80 2.85 11.40 1) 1999 2.50 3.25 2.85 2.85 11.45 Value creation, SEKm 2000 691 1,040 406 286 2,423 1999 183 657 380 562 1,782 1) Exclusive of items affecting comparability, which in 2000 amounted to SEK -448m (-216). Net sales by business area, per quarter, SEKm st nd rd th Consumer Durables 1 2 3 4 Full qtr qtr qtr qtr year Europe 2000 10,308 10,126 10,832 11,438 42,704 1999 10,182 10,515 10,780 11,163 42,640 North America 2000 12,351 14,640 10,484 9,106 46,581 1999 10,545 12,749 9,725 8,433 41,452 Rest of the world 2000 1,951 2,259 2,276 2,717 9,203 1999 1,717 1,963 1,925 1,992 7,597 Total Consumer Durables 2000 24,610 27,025 23,592 23,261 98,488 1999 22,444 25,227 22,430 21,588 91,689 Professional Products, 2000 4,398 4,890 4,092 4,181 17,561 Indoor 1999 4,910 5,674 5,006 4,860 20,450 Professional Products, 2000 2,140 2,191 1,846 1,862 8,039 Outdoor 1999 1,629 2,048 1,547 1,876 7,100 Total Professional 2000 6,538 7,081 5,938 6,043 25,600 Products 1999 6,539 7,722 6,553 6,736 27,550 Operating income by business area, per quarter, SEKm st nd rd th Consumer Durables 1 2 3 4 Full qtr qtr qtr qtr year Europe 2000 566 418 504 691 2,179 Margin,% 5.5 4.1 4.7 6.0 5.1 1999 506 400 635 903 2,444 Margin,% 5.0 3.8 5.9 8.1 5.7 North America 2000 928 1,197 812 640 3,577 Margin,% 7.5 8.2 7.7 7.0 7.7 1999 719 989 678 509 2,895 Margin,% 6.8 7.8 7.0 6.0 7.0 Rest of the world 2000 -71 -11 -31 136 23 Margin,% -3.6 -0.5 -1.4 5.0 0.2 1999 -82 -78 -47 -135 -342 Margin,% -4.8 -4.0 -2.4 -6.8 -4.5 Professional Products, 2000 423 673 313 168 1,577 Indoor Margin,% 9.6 13.8 7.6 4.0 9.0 1999 380 634 439 449 1,902 Margin,% 7.7 11.2 8.8 9.2 9.3 Professional Products, 2000 309 295 289 260 1,153 Outdoor Margin,% 14.4 13.5 15.7 14.0 14.3 1999 228 277 208 270 983 Margin,% 14.0 13.5 13.4 14.4 13.8 Common Group costs, etc. 2000 -105 -119 -57 -178 -459 1999 -95 -71 -158 -138 -462 Items affecting 2000 -448 -448 comparability 1999 -216 -216 Definitions Operating margin Operating income as a percentage of net sales. Net income per share Net income divided by average no. of outstanding shares after buy- backs. Number of shares The number of shares in 2000 amounted to 359,083,955 m. after buy- backs (366,169,580). Return on equity Net income as a percentage of opening equity. Capital turnover rate Net sales divided by average net assets. Return on net assets Operating income as a percentage of average net assets. Net assets Total assets exclusive of liquid funds, interest-bearing financial receivables as well as non-interest-bearing liabilities and provisions. Value creation Operating income (EBIT) excl. items affecting comparability less a weighted average cost of capital (WACC) on average net assets. Net debt/equity ratio Net borrowings in relation to adjusted equity. Net borrowings Total interest-bearing liabilities less liquid funds. Total adjusted equity Equity, including minority interests. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/09/20010209BIT00020/bit0001.doc http://www.bit.se/bitonline/2001/02/09/20010209BIT00020/bit0002.pdf