AB Electrolux (publ) Annual Report 2022

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FY2022 Annual Report · AB Electrolux (publ)

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Shape living
for the better

Annual Report 2022

CEO statement

Governance and control

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Electrolux Annual Report 2022

Contents

CEO statement

Strategy for proﬁ table growth

Driving innovation

Increasing eﬃ ciency

Positioned for future value creation

Summary 2022

Governance and control

Corporate governance report

Report by the Board of Directors

Risk management

Climate risk disclosures

Statutory sustainability report

EU Taxonomy report

Financial reports

Consolidated and parent
company accounts

Notes

Proposed distribution of earnings

Auditor’s report

108

109

Additional information

Eleven-year review

112

113

Operations by business area yearly 115

Quarterly information

Deﬁ nitions

Annual General Meeting

Reports and events

116

118

120

121

Our corporate reporting

Annual Report
The Annual Report for
AB Electrolux (publ), 556009-4178,
consists of pages 31-50, 67-108. The
Annual Report is adopted in Swedish.
The English version is a translation of
the Swedish original.

Remuneration Report
The Electrolux Remuneration
Report is available online at
www.electroluxgroup.com/en/
remuneration-report-2022

Sustainability Reporting
The Electrolux sustainability frame-
work and execution are described in
the Statutory sustainability report on
pages 47-48, 56-66. The full Electrolux
Sustainability report is published online
in March 2023 at: www.electroluxgroup.
com/sustainabilityreport2022

electroluxgroup.com
Please ﬁ nd more information about
business development, strategy
and business areas on the Electrolux
Investor Relations webpage:
electroluxgroup.com/ir

Forward looking statements
This report contains ‘forward-looking’ statements that
reﬂ ect the company’s current expectations. Although
the company believes that the expectations reﬂ ected
in such forward-looking statements are reasonable, no
assurance can be given that such expectations prove to
have been correct as they are subject to risks and uncer-
tainties that could cause actual results to diﬀ er materially
due to a variety of factors. These factors include, but are
not limited to, changes in consumer demand, changes
in economic, market and competitive conditions, supply
and production constraints, currency ﬂ uctuations, devel-
opments in product liability litigation, changes in the
regulatory environment and other government actions.
Forward-looking statements speak only as of the date
they were made, and, other than as required by applica-
ble law, the company undertakes no obligation to update
any of them considering new information or future events.

CEO statement

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Electrolux Annual Report 2022

Electrolux purpose is to shape living for the better by reinventing
lifetime taste, care and wellbeing experiences for more enjoyable
and sustainable living around the world. As a leading global
appliance company, Electrolux places the consumer at the heart of
everything it does, with a focus on delivering outstanding consumer
experiences within the three innovation areas:

Taste
As a kitchen appliance leader, we want our products to enable
consumers to prepare food with the right taste and texture,
minimize food waste, and create healthy and nutritious meals.
We continuously add new functionalities in terms of control,
interaction and innovative digital technologies.

Care
Our laundry products aim to oﬀ er consumers out standing
garment care, water and energy eﬃ ciency, and eﬀ ective low
temperature washing. Demand for Electrolux washing machines
and tumble dryers is driven by innovations that promote user-
friendliness and garment care through tailored and adaptive
programs combined with leading resource eﬃ ciency.

Wellbeing
We strive to create wellbeing products that are diﬀ erentiated
by their visual appeal, and how they promote healthy indoor
environments and sustainable living. Electrolux wellbeing
products enable more people to sustainably beneﬁ t from
comfortable temperatures as well as fewer particles in the air,
in the water and on surfaces.

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Electrolux Annual Report 2022

Electrolux in brief

A global leader in
household appliances

Sustainable consumer experience innovation is a key driver for long term
proﬁ table growth, enabling users to prepare great-tasting food, care for their
clothes so they stay new for longer and achieve healthy wellbeing at home.

Proﬁ table growth is also enabled by consistently increasing operational
eﬃ ciency through digitalization, automation and modularization. Sustainability
is an integral part of Electrolux strategy. A solid balance sheet facilitates
proﬁ table growth.

Electrolux headquarters are located in Stockholm, Sweden, and the Electrolux share is listed on
Nasdaq Stockholm.

~60 million products sold annually in ~120 markets for a total of SEK 135bn in sales

Strategy for proﬁ table growth

Our three innovation areas

Sales by region

35%

18%

34%

Sales by brand

Other, 19%

35%

31%1)

15%

1) Includes Frigidaire Gallery and Frigidaire Professional.

Taste 64% of sales

Product categories: Cookers, hobs, ovens, hoods,
microwave ovens, refrigerators and freezers.

Care 29% of sales

Product categories: Washing machines,
tumble dryers and dishwashers.

Wellbeing 7% of sales

Product categories: Vacuum cleaners,
air-conditioning equipment, water heaters,
heat pumps and small domestic appliances.

Driving sustainable
consumer experience
innovation

Increasing eﬃ ciency
through digitalization,
automation and
modularization

Solid balance sheet facilitates
proﬁ table growth

CEO statement

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Electrolux Annual Report 2022

“ Adapting to rapidly
changing circumstances”

Draft 1.o 2022-09-28
To be revised

As the past few years have shown, swift adaptation
to new circumstances is vital for Electrolux continuous
success. In 2022, a new set of tough challenges
presented themselves, in addition to supply chain
constraints: high general inﬂ ation, raised interest rates,
soaring energy prices, and increased geopolitical
tensions. Of course, this multitude of economic
constraints has had a negative impact on consumer
demand for household appliances.

For Electrolux, this meant a signiﬁ cantly weakened
market demand with lower volumes, particularly in
Europe and North America during the second half of
2022. Net sales for the Group increased by 7.4% to
SEK 135bn, positively impacted by currency translation
eﬀ ects. Organic sales however declined by 2.8%.
Operating income excluding non-recurring items was
SEK 831m (7,528). The decline in operating income
was partly driven by the lower volumes in all business
areas. In addition, we had signiﬁ cantly elevated
cost levels, mainly from production and logistics
ineﬃ ciencies in our North American operations, to
some extent triggered by supply chain constraints.

In light of the elevated cost levels and weaker market
environment, we initiated a Group-wide cost reduction
and North America turnaround program in September
that aims to reduce our cost base with an excess of
SEK 7bn once fully implemented. For the full year of
2023, the program is expected to result in a positive
year-over-year earnings contribution of SEK 4–5bn.

The program targets increased eﬃ ciency in production
and supply chain, leveraging on our stronger global
organization and optimizing investments in innovation
and marketing. The majority of the savings will be
realized in North America, where a number of actions
will be taken to ensure cost competitiveness in the new
production facilities in Anderson and Springﬁ eld, U.S.

A successful implementation of the Group-wide cost
reduction and North America turnaround program
will be our number one priority for 2023. The execution
of the turnaround will demand a strong and diligent
leadership, and the new Business Area leader Ricardo
Cons has a strong track record of improving margins
as the former Head of Business Area Latin America.

Signiﬁ cant cost inﬂ ation, mainly from raw material and
logistics, was oﬀ set by price increases as our price
execution remained strong across all regions.

Executing the Group-wide cost reduction and North
America turnaround program does indeed include
some demanding challenges. However, I have a ﬁ rm. →

“ A successful
implementation of
the Group-wide cost
reduction and North
America turnaround
program will be our
number one priority
for 2023.”

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Electrolux Annual Report 2022

conviction in our long-proven ability to adapt and I
know that we have the right strategy, the experience
and the organizational structure needed to resolve
these issues successfully. The already strengthened
global organization as well as the nearly completed
SEK 8bn re-engineering investment initiative, provide
a solid foundation for the measures within the cost
reduction and turnaround program.

On a positive note, I am pleased with how well
received our product launches across all regions have
been during 2022. This strengthens my conﬁ dence
in our ability to drive product mix improvement also
going forward. In recent years, mix improvements
have contributed an average of SEK 1bn annually to
operating income. At this point, I would like to take
the opportunity to convey my warm thanks to all
colleagues for their tireless and hard work.

Strategy for proﬁ table growth

Electrolux shapes living for the better by reinventing
taste, care and wellbeing experiences, making life
more enjoyable and sustainable for millions of people.
Around the world, our products are an essential part
of daily life. Our strategy for proﬁ table growth is ﬁ rmly
based in the industry trends that drive the development
of a changing household appliance market.

Today’s consumers are more empowered and have
greater expectations than ever before. Sustainable
product innovation that is built on deep consumer
insight is therefore essential in driving proﬁ table growth.
By leveraging our scale through global innovation
processes and modularized product architectures we
have the ability to rapidly and eﬃ ciently bring attractive
products to the market that meet the needs and desires →

Industry trends: our long-term strategy is based on ﬁ ve key industry trends which impact our operations over time.

Consumer power
Greater consumer
awareness and access
to information increas-
ingly empowers con-
sumers. Consumers are
increasingly choosing
brands with a purpose
that they feel matches
their own values.

Digitalization
enhances consumer
power, while enabling
increasingly advanced
products and direct
contact with consum-
ers, as well as greater
productivity and
ﬂ exibility in industrial
operations.

Sustainability
Consumers and author-
ities are increasing the
demands on manufac-
turers to develop and
oﬀ er more sustainable
products that meet
demands in areas such
as energy eﬃ ciency
and circularity.

Global scale
is necessary due to
the increasing pace of
innovation and invest-
ments requirements.

Growing global
middle class
drives market growth in
Africa, the Middle East,
Eastern Europe, Latin
America and Southeast
Asia. Emerging markets
represent a potential
universe of over 6 billion
consumers.

Strategy for proﬁ table growth

Driving sustainable
consumer experience
innovation

Increasing eﬃ ciency
through digitalization,
automation and
modularization

Solid balance sheet facilitates
proﬁ table growth

Financial targets for proﬁ table growth (over a business cycle).

The primary ﬁ nancial priority is achieving our ﬁ nancial targets
of an operating margin of at least 6% and a return on net assets
of over 20%, over a business cycle. Once established, our objective
is sales growth of at least 4% annually, over a business cycle.

Operating margin

Return on net assets
(RONA)

Sales growth

≥6%

>20%

≥4%

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Electrolux Annual Report 2022

The Electrolux climate neutrality roadmap

Targets:

80%

reduction in carbon emissions
in operations. Scope 1 and 21), 3)

Climate neutral
operations2)

25%

reduction in carbon emissions
in product use. Scope 31), 3)

Climate neutral across
the value chain
This long-term ambition supports the
United Nations Global Compact Business
Ambition for 1.5° C. Scope 1, 2 and 3.

2015

2025

2030

2050

1) Science based target (SBT)
2) Company target (Scope 1 + 2 = 0)
3) Includes contributions from energy use and

greenhouse gas fugitive emissions.

“ I am conﬁ dent that our
long-term strategy is the
right path to follow, today
and for the years to come.”

of our targeted consumer groups. Digitalization and
automation are additional important elements in
providing cost-competitive products with high quality.
We focus our investments to create a solid foundation
for these two pillars - driving sustainable consumer
experience innovation and increasing eﬃ ciency - in our
strategy for proﬁ table growth.

I am conﬁ dent that our long-term strategy is the
right path to follow, today and for the years to come.
Likewise, I am conﬁ dent that sustainability is a key
business driver for Electrolux which grows our sales,
lowers our costs, and strengthens relations with
our stakeholders. More environmental-friendly and
resource eﬃ cient appliances attract a growing range
of consumers, contributing to improved margins. At
our production plants, increased eﬃ ciency also entails
energy savings and reduced water consumption. Our
overall target to have a climate neutral value chain by
2050 is thus a ﬁ rmly integrated part of our strategy. →

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Electrolux Annual Report 2022

Three main brands with distinctive target consumers
Price index

Premium
(>150 index)

Mass-
premium
(90–150
index)

Value
(<90 index)

Conservative

Modern

Progressive

Consumer orientation

Driving innovation

At Electrolux, innovation is built on deep consumer
insights in the speciﬁ c target groups for our three main
brands. These insights provide the foundation for how
we develop attractive products that meet the demands
of each consumer group and have had a positive
contribution to sales and operating proﬁ t over the past
few years. The three main brands – Electrolux, AEG and
Frigidaire – represent 80% of our total sales. Sharing
the same ambition to oﬀ er solutions that enable more
sustainable living, each brand has its distinctive market
position. The typical Electrolux consumer wants a
progressive, sustainable premium brand, whereas the
AEG consumers seek innovation, performance and
premium quality. The general Frigidaire consumer looks
for practical and aﬀ ordable household solutions to
improve the lives of family and friends.

Our innovation eﬀ orts are focused within three areas:
Taste, Care and Wellbeing. Taste innovation includes
our diﬀ erent kitchen appliances and is directed
towards solutions for preparing great-tasting, healthier
and more nutritious meals, and reducing food waste.
User-friendly, resource-eﬃ cient washing machines
and tumble dryers that enable clothes to be cared for,
so they stay new longer is a focus of Care innovation,
while the innovative eﬀ orts within Wellbeing are
targeted on visually appealing vacuum cleaners and
air-conditioning equipment that promote healthy
homes.

24/39% Our most resource-eﬃ cient

products accounted
for 24% of units sold and
39% of gross proﬁ t in 2022.

Recognized as a sustainability leader in the appliance
industry, a big part of our innovation eﬀ orts are aimed
at developing new environmentally friendly and
resource-eﬃ cient products that can be brought to
market on a large scale. Our most resource-eﬃ cient
products also make good business sense, as they
accounted for 24% of total units sold and 39% of gross
proﬁ t in 2022.

As product usage accounts for approximately 85%
of the total carbon footprint of appliances, product
eﬃ ciency is our greatest contribution to tackling
climate change. We realize that this is a long-term
undertaking, and it is a commitment we take very
seriously. To inspire conscious behavior, we design
products that intuitively help consumers to use them
in ways that reduce the environmental footprint. For
example, selecting smart washing programs with
lower temperatures, steaming clothes for reduced
water consumption, using more sustainable cooking
techniques, or reducing food waste through intelligent
refrigeration solutions. To give one example from this
year’s launches, Electrolux presented its new range of
food waste-saving fridges and freezers, that generate
up to 20% less CO2 emissions than the previous range.
Cutting-edge innovation is a crucial part of our long-
term ambition for our entire value chain to be net zero
emission by 2050.

Circularity is also a key area. In addition to developing
resource-eﬃ cient products, we strive to use a higher
degree of recycled or recyclable materials in our
appliances, thus reducing the greenhouse gas
emissions from production, as well as incorporating
more sustainable packaging. →

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Electrolux Annual Report 2022

Beyond the product purchase, we are broadening our
focus to develop a stronger consumer relationship
throughout the consumer journey. This wider scope
opens proﬁ table growth opportunities within our
aftermarket business, including services and spares
as well as consumables and accessories. By further
developing our direct interaction possibilities with
consumers, we can also increase consumer loyalty,
beneﬁ tting sales overall.

In 2022, Electrolux deployed a new Commercial &
Consumer Journey Organization. Through this change,
we can leverage our global scale to improve the
purchase experience, how we onboard and connect
new consumers, and how we support people in using
their products in the best and most sustainable way.
From a business perspective, it will strengthen our
aftermarket oﬀ ering, as well as build closer ties with
our consumers over time.

Increasing eﬃ ciency

To be successful in today’s market, eﬃ cient operations
are required to oﬀ er products that are produced in a
sustainable way, with quality and at competitive cost. It
is also crucial for Electrolux to be able to eﬃ ciently and
rapidly introduce new and innovative products to the
market. Here, our experience, focus on modularization
and global scale enable us to meet the evolving needs
and desires of our targeted consumer groups.

Electrolux is in the ﬁ nal stage of executing its
SEK 8bn re-engineering investments, which focus
on modularization and automation of selected
production facilities in Europe and the Americas.
Now in its ramp-up phase, the investment initiative →

Strengthened consumers relations and higher
margins with stronger aftermarket presence

Today’s consumers expect more than high-
quality appliances – they are expecting a positive
experience throughout the life span of the products.

Being truly consumer-centric, Electrolux innovation focus has
expanded to delivering not just an outstanding product, but a
complete consumer experience and lifetime value.

To be relevant throughout the whole consumer journey, an
important part is to strengthen Electrolux position on the after-
market. A more pronounced presence on the aftermarket pres-
ents several opportunities to further enhance consumer relations,
forge loyalty to the Electrolux brands and increase recurring
sales. As the aftermarket also represents a high-margin business,
Electrolux aims to increase sales in this segment to approxi-
mately 10% of Group sales by 2025, from around 7% in 2022.

A notable example is the signiﬁ cantly increased sales on the
aftermarket for water ﬁ lters in North America. Refrigerators that
provide clean and healthy water and ice are important to North
American households. Accordingly, they want to feel conﬁ dent
that they are purchasing quality ﬁ lters designed for their speciﬁ c
appliances.

Thus, in recent years Electrolux has dramatically increased

its innovative focus on refrigerators’ water ﬁ ltration systems
and ice-making accessories with a dedicated team with state

of art laboratory working on advanced ﬁ ltration solutions and
ice-making. Based on thorough research on consumer behav-
ior and through co-creation with target audiences, Electrolux
has further enhanced the quality of the water ﬁ lters, to elimi-
nate harmful contaminates, and added features to remind the
consumers of the ﬁ lter replacement cycle. Such features are for
example lights on the refrigerator indicating when it is time to
replace the ﬁ lter, QR codes on the ﬁ lters themselves, and easily
accessible “ﬁ nd my ﬁ lter” web tools.

Electrolux has also established new and eﬃ cient communica-
tion channels to reach consumers and to raise awareness of the
importance to use the right ﬁ lter for their appliance for optimal
water taste and safety. At present, Electrolux receives about 2
million page visits per year to the water ﬁ lter site and the year-
over-year growth of visitors has been double-digit.

The targeted approach has resulted in an average of 10%
annual sales growth of water ﬁ lters over the last ﬁ ve years in
North America. The successful growth of this water ﬁ lter business
has also entailed sustainability gains. This as increased use of
clean water from refrigerators is estimated to have led to a sig-
niﬁ cant decrease in the consumption of mineral water in plastic
bottles.

The ﬁ lter technology developed for North America has been

extended to refrigerators sold across all regions.

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Electrolux Annual Report 2022

will signiﬁ cantly leverage global scale by deploying
Group-wide technologies and product architecture
for our cooking and refrigeration/freezer solutions,
reaching similarly high levels as our already established
global frameworks for dishwashers and front-loaded
washing machines.

Modularization and production automation are critical
to eﬃ ciency. Through modularization, we optimize our
production and innovation by developing technology
and product architecture for our appliances at Group
level. Modularization also means that we shorten
the path from innovation to product launch, increase
quality assurance, and lower our costs and resources
used in product development. We can clearly see
that modularization allows increased ﬂ exibility and
lower costs for material. Simultaneously, increased
automation contributes to higher productivity, while
also improving quality and workplace safety.

Investments in digitalization are important to
eﬃ ciently manage sourcing, supply chain, logistics,
and consumer interaction. A combination of global
strategic sourcing, a reduced number of components
in our modularized production, and digitalization
provides us with eﬃ ciency gains, increased ﬂ exibility
and lowers the risk of disruption.

We are also reducing our climate footprint signiﬁ cantly.
With a reduction of 82%, Electrolux in 2022 reached
its 2025 science-based climate target to reduce CO2
emissions in our own operations by 80% compared
to 2015. Whilst lower production volumes have
contributed, our teams’ eﬀ orts to ramp up resource-
eﬃ cient manufacturing across our production facilities,
while speeding up the transition to utilize an increased

“ Through modularization,
we optimize our production
and innovation by developing
technology and product
architechture for our
appliances at Group level.”

share of renewable energy mean we have reached
our target ahead of schedule. We are now reviewing
our targets going forward, raising the bar on own
sustainability agenda even further. →

-82%

During 2022, Electrolux reached
its 2025 science-based climate
target to reduce CO2 emissions
in our own operations by 80%
compared to 2015.

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Attractive and sustainable ovens
from renewed Brazilian facility

Innovation, eﬃ ciency and sustainability
are cornerstones in Electrolux strategy
to drive proﬁ table growth. Investments in
the Sao Carlos cooking facility in Brazil
have resulted in a sharper product oﬀ ering
which is gaining market shares in attractive
categories, while at the same time being
produced in a more cost and resource
eﬃ cient way.

Growing proﬁ tably in Latin America over the past years,
Electrolux is further improving and expanding its mix
of products with a focus on built-in ovens. Oﬀ ering
consumers a range of new sought-after features, these
appliances are manufactured in Sao Carlos, one of
the facilities included in the Group’s SEK 8bn re-engi-
neering investment initiative. This initiative has enabled
a higher degree of modularization and automation,
which together with the beneﬁ ts of an innovation pro-
cess at Group level, have resulted in an attractive line
of more eﬃ ciently produced cooking appliances, as
well as reduced supply chain complexity and consider-
able sustainability gains.

Faster innovation and fewer components
Thanks to a shared product architecture, the cost and
time it takes to develop and launch a new product can
be reduced by approximately 30%. As modularized
features ﬁ t in a majority of the products they can be
used throughout the Group. The new line of built-in
ovens produced at the Sao Carlos plant are equipped
with features such as air fryer, convection and a sealed

cavity and in response to anticipated desires from
consumers, will soon also oﬀ er a steam function. As this
feature is already included in ovens sold in Europe, the
shared product architecture allows the steam function
to be added in the ovens for the Latin American market
with no further innovation eﬀ orts and only minor addi-
tional investement.

Modularization also encompasses the ability to lower

the number of components, thus reducing the com-
plexity of the production process. At Sao Carlos, both
the steam system and the oven’s sealed cavity, which
is welded, come as ready-to-use modules that can be
swiftly inserted in the oven structures at the assembly
line. Through the re-engineering initiative the number
of parts used at the facility has been reduced by more
than 40%. The smaller number of components as well
as fewer suppliers, also make it easier for Electrolux as
a Group to manage any supply chain constraints.

Well-received resource-eﬃ cient products
The production facility in Sao Carlos and the new line
of built-in ovens produced there entail signiﬁ cant steps
to reduce the climate footprint. For example, the new
state-of-the-art process for enameling the ovens has
reduced the water consumption from 6.6 liters to 1.8
liter per produced oven. For the consumer, the welded
cavity in the built-in ovens means that the appliance
uses around 30% less energy to preheat. At the same
time, integrated features such as the air fryer and steam
function also enable users to enjoy more sustainable
cooking and healthy living. The built-in ovens produced
at the Sao Carlos plant have received high scores from
the consumers in Latin America, with an average star
rating of impressive 4.7 on a ﬁ ve-point scale.

30% Thanks to a common

product architecture, the
cost and time it takes to
develop and launch a new
product can be reduced
by approximately 30%.

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Electrolux Annual Report 2022

Positioned for future value creation

Optimizing the capital structure
During the year, an important area for Electrolux
Board of Directors has been to continue optimizing
the Group’s capital structure. The Board aims to
keep a solid investment grade rating, as deﬁ ned by
leading rating institutes, meaning that over time net
debt should not exceed two times EBITDA. As a tool
to reach an optimal capital structure, the Board, like
in the previous year, decided to buy back shares
in 2022. The share buyback program launched on
April 29 totaled 8,000,000 series B shares and was
completed on September 2. Together with the share
buyback program initiated in 2021 and completed in
February 2022, Electrolux has repurchased a total of
17,369,172 own series B shares for a total amount of
SEK 3,032m. As proposed by the Board and resolved
by the 2022 Annual General Meeting, 25,842,915 own
shares of series B that were held by the company as of
December 31, 2021, were canceled, to further improve
earnings per share. The Board currently does not
intend to initiate additional share buybacks.

Long-term strategy – with ability to adapt
Weakened demand for household appliances on
our major markets is expected to continue, and be
negative for the full year 2023. With this in mind, it is
a key priority to vigorously implement the Group-
wide cost reduction and North America turnaround
program. In doing so, we can beneﬁ t from our eﬀ orts
within the re-engineering initiative as well as leverage
our strengthened globalized organization. The global
scale and modularization are also vital for our ability
to swiftly and eﬃ ciently oﬀ er new and attractive
products to the consumers.

As shown during the past years, our ability to adapt
to a rapidly changing environment is instrumental to
our success. It is a conﬁ rmation that we have the right
strategy and culture to respond quickly to challenges
and seize opportunities. I am conﬁ dent in executing
on our long-term strategy, where consumer-centric,
sustainable innovation and eﬃ ciency are key to
driving proﬁ table growth.

Stockholm, February 2023

Jonas Samuelson
Electrolux President and CEO

“ I am conﬁ dent in executing
on our long-term strategy,
where consumer-centric,
sustainable innovation and
eﬃ ciency are key to driving
proﬁ table growth.”

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Electrolux Annual Report 2022

Summary 2022

The business environment in 2022 was highly challenging. Market
demand declined in most of Electrolux main markets as high gen-
eral inﬂ ation, increased interest rates, and geopolitical tensions
had a negative impact on consumer demand. Lower sales volumes
resulted in an organic sales decline for Electrolux by 2.8%. The
volume decline was coupled with severely elevated cost levels
in the North American operations from production ineﬃ ciencies,
partly triggered by supply chain constraints. This resulted in a
signiﬁ cant earnings drop and the operating margin amounted to
0.6%, excluding non-recurring items, compared to 6.0% last year.
To address the challenges, a Group-wide cost reduction and
North America turnaround program was initiated.

The net price realization was strong across all regions, despite

promotional activity returning to normal levels towards the end
of 2022 compared to low levels throughout 2021. Price fully oﬀ set
signiﬁ cant cost inﬂ ation, primarily in raw material and logistics.
2022 was an intensive product launch year across regions,
partly enabled by the ongoing investment initiatives in modular-
ized product platforms. Through an attractive product oﬀ ering
delivered under well-established brands, Electrolux continued to
generate a positive product mix, even in the challenging demand
environment with reduced consumer purchasing power in many
markets. Aftermarket sales increased slightly, remaining at 7% of
total sales for the year.

Supply chain constraints and irregular supply caused signi-
ﬁ cantly elevated cost levels due to production ineﬃ ciencies

Operating income (EBIT) bridge1)
SEKbn
18
18

9.1

7.5

12
12

6
6

0
0

-0.4

-9.0

-6.1

-0.2

EBIT
2021

Organic
contribu-
tion

Innovation
and
marketing

Cost
eﬃ ciency

External
factors

Acq/
Divest

1) Excluding non-recurring items, all numbers are rounded.

0.8

EBIT
2022

subsequent low planning visibility as well as increased use of spot
buys and air freight. Measures under the Group-wide cost reduc-
tion and North America turnaround program to return to stability
and increase proﬁ tability were initiated towards the end of the
year. However, the high inventory of products produced before
the measures were implemented, resulted in a delayed earnings
impact. Investments in innovation and marketing increased to
support product launches and further develop capabilities for
consumer direct interaction, while discretionary spending was
reduced following the weak market environment.

Sales growth
SEKbn

150000
150

100000
100

50000
50

0
0

-50000

Operating margin
SEKbn

8000
8

6000
6

4000
4

2000
2

0
0

%1)

15
15

10
10

5
5

0
0

-5
-5

8
8

6
6

4
4

2
2

0
0

Return on net assets
SEKbn

40000
40

30000
30

20000
20

10000
10

0
0

40
40

30
30

20
20

10
10

0
0

18
18

19
19

20
20

21
21

22
22

18
18

19
19

20
20

21
21

22
22

18
18

19
19

20
20

21
21

22
22

Net sales
Sales growth
Target: ≥4%

1) Total sales growth excluding currency translation eﬀ ects.

Operating income
Operating margin
Operating margin excl. non-recurring items
Target: ≥6%

Average net assets
Return on net assets
Target: >20%

Note: Financial targets are over a business cycle.

CO2 emissions
The ambition is to achieve climate neutrality by 2050. An
important step is the Science Based Targets set for 2025.

The Group achieved its combined Scope 1 and 2 Science

Based Target of 80% reduction in CO2 emissions for opera-
tions by reaching 82% in 2022, compared to 78% in 2021.
One of the main reasons is the increased use of electri-
city from renewable sources. The Scope 3 target of 25%
reduction in CO2 emissions, covering use of sold products,
reached beyond 25% reduction in emissions in 2022. The
year-over-year decrease in sales volumes impacted the
Scope 3 result positively in 2022, however the target was
achieved also without considering the decline in volumes.

Scope 1 and 2

Scope 3

82%

reduction compared
to 2015

>25%

reduction compared
to 2015

Electrolux has set two Science Based Targets for 2025 compared to 2015. The
ﬁ rst target is 80% reduction in carbon emissions in operations i.e. Scope 1 (direct
emissions) and Scope 2 (indirect emissions). The second target is 25% reduction in
carbon emissions in product use i.e. Scope 3 (indirect emissions).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Governance
and control

Corporate governance report

Report by the Board of Directors

Risk management

Climate risk disclosures

Statutory sustainability report

EU Taxonomy report

Corporate governance report 2022, page 15–30
Annual report 2022, page 31–50, 67–108
Climate risk disclosures 2022, page 51–55
Statutory sustainability report 2022, page 47-48, 56–66

AB Electrolux (publ), 556009–4178, S:t Göransgatan 143, SE-105 45 Stockholm, Sweden.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Corporate governance report

Chairman’s introduction

As a leading global appliance company, Electrolux
shapes living for the better by reinventing taste,
care and wellbeing experiences to make life more
enjoyable and sustainable for millions of people.
Through the Group’s diﬀ erent brands, we sell
approximately 60 million products in approximately
120 markets every year. Our large installed base of
approximately 400 million products globally gives
us high aftermarket sales potential.

Corporate Governance Report
This Corporate Governance Report provides details of the overall
governance structure of Electrolux, the interactions between the
formal corporate bodies, internal policies and procedures as well
as relevant control functions and reporting, which together ensure a
robust global governance framework and strong corporate culture.

Board’s focus areas during the year
2022 has been a challenging year for Electrolux. We, and the sur-
rounding world, have experienced severe negative impacts on the
global economy from factors such as increasing inﬂ ation, rapidly
escalating energy prices and interest rates, which in turn have had
a negative eﬀ ect on the demand for consumer durables. Also the
supply side has been diﬃ cult with disruptions in the supply chain
and shortages of key components, causing loss of production and
productivity in our factories. This was especially the case in North
America where the ongoing production transformation, including
the ramp-up of two new facilities and several new product platforms,
aggravated the situation and resulted in an elevated cost level.
This in combination with the rapid weakening of demand, starting
end of the summer, led to a signiﬁ cant loss for the business area
North America in 2022. To mitigate the eﬀ ects of reduced consumer
demand and adjust to the above-mentioned realities, a substantial
Group-wide cost reduction and North America turnaround program
was announced in September 2022.

An overriding priority for the Board in 2022 has been to support
management in the necessary and rapid adjustment of priorities,
which were triggered by the new macro environment. It is essential to
increase cost eﬃ ciency in the North American business and ensure
that we can fully leverage the investments in manufacturing and
product platforms. This has been a main theme during practically
all Board meetings during the year.

The work to continue the streamlining of the company into a consumer
centric organization has progressed, including strengthening the
globally responsible product lines and improving the commercial
coordination between our geographical business areas. These mea-
sures will contribute to Electrolux competitiveness in a challenging
global market.

Another focus area for the Board is related to the company’s

capital structure; a work initiated in 2021 when the Group’s ﬁ nancial
position was very strong after a period of strong cash generation.
A share redemption program followed by share buybacks have
been used to optimize the capital structure, where the Board’s
objective is to maintain a solid investment grade rating, as deﬁ ned
by leading rating institutes. When the initial program for 2022 was
completed in September, the Board decided not to initiate additional
share buybacks until further notice in light of sharply deteriorating
market conditions, and increased debt levels from lower earnings
and temporarily increased working capital requirements. The net
income loss in 2022 led the Board to propose that no payment of
dividend will be made for the ﬁ scal year 2022. Although aligned with
our policy targeting a dividend of approximately 50% of the annual
income, this is of course not a decision we took lightly, and our
strong ambition is to return to dividend paying conditions as soon
as possible.

I would like to thank my fellow Board members for the good coop-

eration, the constructive contributions and engaged work. Finally,
I thank the Electrolux management and all employees for an excep-
tional work eﬀ ort during a challenging and turbulent 2022.

Staﬀ an Bohman
Chairman of the Board

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Governance structure

Shareholders
by the AGM

Nomination Committee

External Audit

Board of Directors

People Committee

Audit Committee

Group Internal Audit

President and
Group Management

Business area Boards

Internal Bodies

Major external regulations
• Swedish Companies Act.
• Rulebook for issuers.
• Swedish Code of Corporate
Governance.

Major internal regulations
• Articles of Association.
• Board of Directors’ working procedures.
• Policies for information, ﬁ nance, credit,
accounting manual, etc.
• Processes for internal control and risk
management.
• Code of Conduct, Anti-Corruption
Policy and Workplace Policy.

Governance in Electrolux

Electrolux strives to maintain strict norms and eﬃ cient governance
processes to ensure that all operations create long-term value for
shareholders and other stakeholders. This involves the maintenance
of an eﬃ cient organizational structure, systems for internal control
and risk management and transparent internal and external
reporting.

The Electrolux Group comprises 133 companies with sales in
approximately 120 markets. The parent company of the Group is
AB Electrolux, a public Swedish limited liability company. The
company’s shares are listed on Nasdaq Stockholm.

The governance of Electrolux is based on the Swedish Companies

Act, Nasdaq Nordic Main Market Rulebook for Issuers of Shares
(”Rulebook for Issuers”) and the Swedish Code of Corporate Gov-
ernance (the “Code”), as well as other relevant Swedish and foreign
laws and regulations. The Code is published on the website of the
Swedish Corporate Governance Board, which administrates the
Code: www.corporategovernanceboard.se

This corporate governance report has been drawn up as a part
of Electrolux application of the Code. Electrolux did not report any
deviation from the Code in 2022. There has been no infringement
by Electrolux of applicable stock exchange rules and no breach of
good practice on the securities market reported by the disciplinary
committee of Nasdaq Stockholm or the Swedish Securities Council
in 2022.

Electrolux formal governance structure is presented to the right.

Electrolux is a leading global appliance company that has shaped living for the better for more
than 100 years. We reinvent taste, care and wellbeing experiences for millions of people around
the world, always striving to be at the forefront of sustainability in society through our solutions and
operations. Under our brands, including Electrolux, AEG and Frigidaire, we sell approximately 60
million household products in approximately 120 markets every year. In 2022, Electrolux had sales of
SEK 135bn and employed 51,000 people around the world. For more information go to the Group’s
website, www.electroluxgroup.com.

AB Electrolux (publ) is registered under number 556009-4178 with the Swedish Companies

Registration Oﬃ ce. The registered oﬃ ce of the Board of Directors is in Stockholm, Sweden.

The address of the Group headquarters is S:t Göransgatan 143, SE-105 45 Stockholm, Sweden.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Highlights 2022

• Re-election of Staﬀ an Bohman as Chairman of
the Board.
• Re-organization and establishment of new global
Commercial & Consumer Journey organization.
• Resolution to repurchase a maximum of 8,000,000
own Class B shares during the period May 2, 2022
to October 21, 2022 for a total maximum amount
of SEK 1,250 million.

Shares and shareholders
The Electrolux shares are listed on Nasdaq Stockholm. At year-end
2022, Electrolux had 83,248 shareholders according to Monitor by
Modular Finance AB. Of the total share capital, 62% was owned
by Swedish institutions and mutual funds, 25% by foreign investors
and 13% by Swedish private investors, see below. Investor AB is the
largest shareholder, holding 17.9% of the share capital and 30.4% of
the voting rights. The ten largest shareholders accounted for 43.7%
of the share capital and 52.2% of the voting rights in the company.

Voting rights
The share capital of AB Electrolux consists of Class A shares and Class
B shares. One A share entitles the holder to one vote and one B share to
one-tenth of a vote. Both A shares and B shares entitle the holders to the
same proportion of assets and earnings and carry equal rights in terms
of dividends. Owners of A shares can request to convert their A shares
into B shares. Conversion reduces the total number of votes in the com-
pany. As of December 31, 2022, the total number of registered shares in
the company amounted to 283,077,393 shares, of which 8,192,348 were
Class A shares and 274,885,045 were Class B shares. The total number
of votes in the company was 35,680,852.5. Class B shares represented
77% of the voting rights and 97% of the share capital.

Dividend policy
Electrolux target is for the dividend to correspond to approximately
50% of the annual income.

The Annual General Meeting (AGM) in March 2022 decided to
adopt the Board’s proposed dividend of SEK 9.20 per share for the
ﬁ nancial year 2021 which, in accordance with the Board’s proposal,
was paid out in two equal installments.

Ownership structure

Swedish institutions and mutual funds, 62%
Foreign investors, 25%
Swedish private investors, 13%

Source: Monitor by Modular Finance AB. Compiled and processed
data from various sources, including Euroclear, Morningstar and the
Swedish Financial Supervisory Authority (Finansinspektionen)
as per December 31, 2022.

The foreign ownership was 25% at year-end 2022 and 29% at year-end 2021.

Foreign investors are not always recorded in the share register. Foreign banks
and other custodians may be registered for one or several customers’ shares, and
the actual owners are then usually not displayed in the register. For additional i
nformation regarding the ownership structure, see above.

The information on ownership structure is updated quarterly on the Group’s

website.

Shareholders

meeting General Meetings of shareholders

The decision-making rights of shareholders
in Electrolux are exercised at shareholders’

meetings. The AGM of AB Electrolux is held in Stockholm, Sweden,
during the ﬁ rst half of the year.

Extraordinary General Meetings may be held at the discretion
of the Board or, if requested, by the auditors or by shareholders
owning at least 10% of all shares in the company.

Participation in decision-making requires the shareholder’s pres-
ence at the meeting, either personally or by proxy. In addition, the
shareholder must be registered in the share register by a stipulated
date prior to the meeting and must provide notice of participation
in the manner prescribed. Additional requirements for participation
apply to shareholders with holdings in the form of American Depos-
itary Receipts (ADR) or similar certiﬁ cates. Holders of such certif-
icates are advised to contact the ADR depositary bank, the fund
manager or the issuer of the certiﬁ cates well in advance before the
meeting in order to obtain additional information.

Individual shareholders requesting that a speciﬁ c issue be included

in the agenda of a shareholders’ meeting can normally request the
Electrolux Board to do so using a speciﬁ c address published on
the Group’s website. The last date for making such a request for the
respective meeting will be published on the Group’s website.

Decisions at the meeting are usually taken on the basis of a simple

majority. However, as regards certain issues, the Swedish Compa-
nies Act stipulates that proposals must be approved by shareholders
representing a larger number of the votes cast and the shares repre-
sented at the meeting.

The AGM resolves upon:
• The adoption of the Annual Report.
• Dividend.
• Election of Board members and, if applicable, auditors.
• Remuneration to Board members and auditors.
• Guidelines for remuneration to Group Management.
• Remuneration Report.
• Other important matters.

Annual General Meeting 2022
Due to the risk of the spread of the coronavirus and pursuant to
temporary legislation, the AGM 2022 was held digitally and through
advance voting (so-called postal voting) on March 30, 2022. The
AGM was webcasted live and shareholders had the option to either
vote digitally at the AGM or to vote in advance through postal voting.
An excerpt of from the AGM including the CEO’s reﬂ ections from the
past year and the future strategy was made available on the Group’s
website. The shareholders had also the possilibty to submit questions
ahead of the AGM 2022.

Decisions at the Annual General Meeting 2022:
• Re-election of all the Board members.
• Re-election of Staﬀ an Bohman as Chairman of the Board.
• Election of PricewaterhouseCoopers AB as auditors.
• Remuneration to the Board members.
• Dividend, cancellation of shares and subsequent bonus issue.
• Authorization to acquire own shares and to transfer own shares on
account of company acquisitions and certain incentive programs.
• Amendments of the Articles of Association.

Attendance at AGMs 2018–2022
%

80
80

60
60

40
40

20
20

0
0

% of share capital
% of votes
Shareholders

Attendance

1200
1,200

900
900

600
600

300
300

0
0

19
19

18
18

22
22
870 shareholders, representing a total of 48.0% of the share capital and 62.6% of
the votes, were present through postal voting at the 2022 AGM.

20
20

21
21

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Annual General Meeting 2023
The next AGM will be held on Wednesday, March 29, 2023 in Stock-
holm. Additional information about the AGM 2023 will be published
in the notice convening the Annual General Meeting.

Nomination

Committee Nomination Committee

The AGM resolves upon the nomination process for
the Board of Directors and the auditors. The AGM

2011 adopted an instruction for the Nomination Committee. The instruc-
tion involves a process for the appointment of a Nomination Committee
comprised of six members. The members should be one representative
of each of the four largest shareholders, in terms of voting rights that
wish to participate in the Committee, together with the Chairman of the
Electrolux Board and one additional Board member.

The composition of the Nomination Committee shall be based on
shareholder statistics from Euroclear Sweden AB as of the last bank-
ing day in August in the year prior to the AGM and on other reliable
shareholder information, which is provided to the company at such
time. The names of the shareholders and their representatives shall
be announced as soon as they have been appointed. If the share-
holder structure changes during the nomination process, the com-
position of the Nomination Committee may be adjusted accordingly.
The Nomination Committee is assisted in preparing proposals for

auditors by the company’s Audit Committee and the Nomination
Committee’s proposal is to include the Audit Committee’s recom-
mendation on the election of auditors.

The Nomination Committee’s proposals are publicly announced
no later than on the date of notiﬁ cation of the AGM. Shareholders
may submit proposals for nominees to the Nomination Committee.

The Nomination Committee’s tasks include preparing
a proposal for the next AGM regarding:
• Chairman of the AGM.
• Board members.
• Chairman of the Board.
• Remuneration to Board members.
• Remuneration for committee work.
• Amendments of instructions for the Nomination Committee,
if deemed necessary.
• Auditors and auditors’ fees, when these matters are to be
decided by the following AGM.

Nomination Committee for the AGM 2022
The Nomination Committee for the AGM 2022 was comprised
of six members. Johan Forssell of Investor AB led the Nomination
Committee’s work.

For the proposal for the AGM 2022, the Nomination Committee

made an assessment of the composition and size of the current
Board as well as the Electrolux Group’s operations. Areas of partic-
ular interest were Electrolux strategies and goals and the demands
on the Board that are expected from the Group’s positioning for the
future. The Nomination Committee applied rule 4.1 of the Code as
diversity policy in its nomination work. The Nomination Committee
considered that a breadth and variety as regards age, nationality,
educational background, gender, experience, competence and
term of oﬃ ce are represented among the Board members.

The Nomination Committee proposed re-election of all Board
members. The Nomination Committee also proposed re-election of
Staﬀ an Bohman as Chairman of the Board. After the election at the
AGM 2022, three out of seven Board members elected at the share-
holders’ meeting are women (in this calculation, the President and
CEO has not been included in the total number of Board members).
The Nomination Committee also proposed, in accordance with
the recommendation by the Audit Committee, election of Pricewater-
houseCoopers AB as the company’s auditors for the period until the
end of the AGM 2023.

A report regarding the work of the Nomination Committee was
included in the Nomination Committee’s explanatory statement that
was published before the AGM 2022. Further information regarding
the Nomination Committee and its work can be found on the Group’s
website.

Nomination Committee for the AGM 2023
The Nomination Committee for the AGM 2023 is based on the
ownership structure as of August 31, 2022, and was announced in
a press release on September 23, 2022.

The Nomination Committee’s members are:
• Johan Forssell, Investor AB, Chairman
• Carina Silberg, Alecta
• Sussi Kvart, Handelsbanken Funds
• Tomas Risbecker, AMF Tjänstepension och Fonder
• Staﬀ an Bohman, Chairman of Electrolux
• Fredrik Persson, Board member of Electrolux

Board of

Directors The Board of Directors

The Board of Directors has the overall responsibility
for Electrolux organization and administration.

Composition of the Board
The Electrolux Board is comprised of eight members without deputies,
who are elected by the AGM, and three members with deputies,
who are appointed by the Swedish employee organizations in
accordance with Swedish labor law.

The AGM elects the Chairman of the Board. Directly after the AGM,

the Board holds a meeting for formal constitution at which the mem-
bers of the committees of the Board are elected, among other things.
The Chairman of the Board of Electrolux is Staﬀ an Bohman.

All current members of the Board elected by the AGM, except
for the President and CEO, are non-executive members. Two of the
eight Board members, who are elected by the AGM, are not Swedish
citizens.

For additional information regarding the Board of Directors,

see pages 24-25.

Independence
The Board is considered to be in compliance with the Swedish
Companies Act’s and the Code’s requirements for independence.
The assessment of each Board member’s independence is presented
in the table on page 25.

All Board members except for Petra Hedengran and Jonas

Samuelson have been considered independent. Petra Hedengran
has been considered independent in relation to the company and
the administration of the company, but not in relation to major share-
holders of Electrolux. Jonas Samuelson has been considered inde-
pendent in relation to major shareholders of Electrolux but not, in his
capacity as President and CEO, in relation to the company
and the administration of the company.

Jonas Samuelson has no major shareholdings, nor is he a part-

owner in companies having signiﬁ cant business relations with
Electrolux. Jonas Samuelson is the only member of Group Manage-
ment who is a Board member.

The Board’s tasks
One of the main tasks of the Board is to manage the Group’s opera-
tions in such a manner as to assure the shareholders that their inter-
ests in terms of a long-term proﬁ table growth and value creation are
being met in the best possible manner. The Board’s work is governed
by rules and regulations including the Swedish Companies Act, the
Articles of Association, the Code and the working procedures estab-
lished by the Board. The Articles of Association of Electrolux are
available on the Group’s website.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Working procedures and Board meetings
The Board determines its working procedures each year and reviews
these procedures as required. The working procedures describe the
Chairman’s speciﬁ c role and tasks, as well as the responsibilities
delegated to the committees appointed by the Board.

In accordance with the procedures and the Code, the Chairman

shall among other things:
• Organize and distribute the Board’s work.
• Ensure that the Board discharges its duties and has relevant
know-ledge of the company.
• Secure the eﬃ cient functioning of the Board.
• Ensure that the Board’s decisions are implemented eﬃ ciently.
• Ensure that the Board evaluates its work annually.

The working procedures for the Board also include detailed instruc-
tions to the President and CEO and other corporate functions
regarding issues requiring the Board’s approval. Among other things,
these instructions specify the maximum amounts that various deci-
sion-making functions within the Group are authorized to approve
as regards credit limits, capital expenditure and other investments.
The working procedures stipulate that the meeting for the formal

constitution of the Board shall be held directly after the AGM.
Decisions at this statutory meeting include the election of members
of the committees of the Board and authorization to sign on behalf
of the company. In addition to the statutory Board meeting, the
Board normally holds seven other ordinary meetings during the year.
Four of these meetings are to be held in conjunction with the pub-
lication of the Group’s full-year report and interim reports. One or
two meetings are to be held in connection with visits to Group oper-
ations, subject to travel restrictions or other concerns. Additional
meetings are held when necessary.

The Board deals with and decides on Group-related issues
such as:
• Main goals.
• Strategic orientation.
• Essential issues related to ﬁ nancing, investments, acquisitions
and divestments.
• Follow-up and control of operations, communication and
organization, including evaluation of the Group’s operational
and sustainability management.
• Appointment of and, if necessary, dismissal of the President
and CEO.
• Overall responsibility for establishing an eﬀ ective system of inter-
nal control and risk management as well as a satisfactory process
for monitoring the company’s compliance with relevant laws and
other regulations as well as internal policies.

The Board’s work in 2022
During the year, the Board held 12 meetings. The attendance of each
Board member at these meetings is shown in the table on page 25.
All Board meetings during the year followed an agenda, which,
together with the documentation for each item on the agenda, was
sent to Board members in advance of the meetings. Electrolux Gen-
eral Counsel serves as secretary at the Board meetings.

Each scheduled Board meeting includes a review of the Group’s
results and ﬁ nancial position, as well as the outlook for the forthcom-
ing quarters, as presented by the President and CEO. The meetings
also deal with investments and the establishment of new operations,
as well as acquisitions and divestments. The Board decides on all
investments exceeding SEK 100m and receives reports on all invest-
ments exceeding SEK 25m.

Normally, a member of Group Management also reviews a current

strategic issue at the meeting. For an overview of how the Board’s
work is spread over the year, see the table below.

Key focus areas for the Board during 2022
• Eﬀ ects and impacts of the coronavirus pandemic and imbalances
in the global supply chain.
• Eﬀ ects and impacts of the war in Ukraine.
• Adapting Electrolux strategy and business model to global
industry drivers such as increased consumer power, digitalization,
sustainability, consolidation,and a growing middle class.
• Re-organization and establishment of the new Commercial &
Consumer Journey organization to further strengthen the product
and service oﬀ ering.
• Continued focus on optimizing the Group’s capital structure by
initiating a share buyback program.
• Group-wide cost reduction and North America turnaround
program to return to stability and increase proﬁ tability.

Ensuring quality in ﬁ nancial reporting
The working procedures determined annually by the Board include
detailed instructions on the type of ﬁ nancial reports and similar
information which are to be submitted to the Board. In addition to
the full-year report, interim reports and the annual report, the Board
reviews and evaluates comprehensive ﬁ nancial information regard-
ing the Group as a whole and the entities within the Group.

The Board also reviews, primarily through the Board’s Audit
Committee, the most important accounting principles applied by
the Group in ﬁ nancial reporting, as well as major changes in these
principles. The tasks of the Audit Committee also include reviewing
reports regarding internal control and ﬁ nancial reporting processes,
as well as internal audit reports submitted by the Group’s internal
audit function, Group Internal Audit.

The Group’s external auditors report to the Board as necessary,

but at least once a year. A minimum of one such meeting is held
without the presence of the President and CEO or any other member
of Group Management. The external auditors also attend the meet-
ings of the Audit Committee.

Overview of various items on the Board’s agenda and Committee meetings 2022

• Q4, Consolidated results.
• Report by external auditors.
• Dividend.
• Proposals for the AGM.

Statutory Board meeting:
• Appointment of committee
• Signatory powers.
• Rules of procedure of the Board.

members.

Ordinary Board meetings

Audit Committee

People Committee

• Q1 Quarterly ﬁ nancial

statements.

• Q2 Quarterly ﬁ nancial

statements.

• Q3 Quarterly ﬁ nancial

statements

• Board work
evaluation.

Each scheduled Board meeting included a review of the Group’s results and ﬁ nancial position, as well as the outlook for the forthcoming quarters.

January

February

March

April

May

June

July

August

September

October

November

December

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

The Audit Committee reports to the Board after each of its meetings.
Minutes are taken at all meetings and are made available to all
Board members and to the auditors.

Board work evaluation
The Board evaluates its work annually with regard to working pro-
cedures, the working climate and the focus of the Board work. This
evaluation also focuses on access to and requirements of special
competence in the Board. The evaluation is a tool for the develop-
ment of the Board work and also serves as input for the Nomination
Committee’s work. The evaluation of the Board is each year initiated
and lead by the Chairman of the Board. The evaluation of the Chair-
man is led by one of the other members of the Board. Evaluation
tools include questionnaires and discussions.

In 2022, Board members responded to written questionnaires.
As part of the evaluation process, the Chairman also had individual
discussions with Board members. The evaluations were discussed
at a Board meeting.

The result of the evaluations was presented for the Nomination

Committee.

Fees to Board members
Fees to Board members are determined by the AGM and paid to the
Board members who are not employed by Electrolux. The AGM 2022
decided to increase the fees to the Chairman and the Board members,
see table below.

The Nomination Committee has recommended that Board members

appointed by the AGM acquire Electrolux shares and that these
are maintained as long as they are part of the Board. A shareholding
of a Board member should after ﬁ ve years correspond to the value
of one gross annual fee.

Board members who are not employed by Electrolux are not
invited to participate in the Group’s long-term incentive programs
for senior managers and key employees.

For additional information on remuneration to Board members,

see Note 27.

Remuneration to the Board of Directors 2020–2022
(applicable as from the respective AGM)

SEK

2022

2021

2020

Chairman of the Board

2,400,000 2,285,000 2,200,000

Board member

700,000 665,000 640,000

Chairman of the Audit
Committee

Member of the Audit
Committee

Chairman of the People
Committee

Member of the People
Committee

300,000

290,000

280,000

190,000

185,000

160,000

175,000

170,000

150,000

120,000

115,000

100,000

Member of ad hoc Committee

60,000

—

Board’s report on remuneration pursuant to Chapter 8, Section 53 a
of the Swedish Companies Act (Remuneration Report).

The People Committee consists of the following three Board

members: Petra Hedengran (Chairman), Staﬀ an Bohman and Karin
Overbeck. At least two meetings are convened annually. Additional
meetings are held as needed.

In 2022, the People Committee held six meetings. The attendance

of each Board member at these meetings is shown in the table on
page 25. Signiﬁ cant issues addressed include evaluation, review
and resolution on changes in the remuneration to members of Group
Management, follow-up and evaluation of previously approved
long-term incentive programs and remuneration guidelines for Group
Management, review of the Remuneration Report for 2022 and
review and preparation of long-term incentive program for 2023.
The Head of HR and Communications participated in the meetings
and was responsible for meeting preparations.

People Committee

Audit Committee Committees of the Board

The Board has established a People Committee
and an Audit Committee. The major tasks of
these committees are preparatory and advisory, but the Board
may delegate decision-making powers on speciﬁ c issues to the
committees. The issues considered at committee meetings shall be
recorded in minutes of the meetings and reported at the following
Board meeting. The members and chairmen of the committees are
appointed at the statutory Board meeting following the AGM’s
election of Board members.

The Board has also determined that issues may be referred to ad

hoc committees dealing with speciﬁ c matters. In 2022, the Board
decided to establish a Share Buyback Committee with the purpose
of dealing with matters related to the share buyback programs.
The Committee consisted of two Board members, Fredrik Persson
(Chairman) and Ulla Litzén.

People Committee
One of the People Committee’s primary tasks is to propose guide-
lines for the remuneration to the members of Group Management.
The Committee also proposes changes in remuneration to the
President and CEO, for resolution by the Board, and reviews and
resolves on changes in remuneration to other members of Group
Management on proposal by the President and CEO. The Committee
shall also oversee and make recommendations to the Board regard-
ing the development, recruitment and succession planning of the
President and CEO and the Group Management. In addition, the
Committee shall oversee the overall organizational structure and
advise Group Management regarding people plans and develop-
ment of the company culture. The Committee shall also review the

The People Committee’s tasks include for example:
• To prepare and evaluate remuneration guidelines for Group
Management.
• To prepare and evaluate targets and principles for variable
compensation.
• To prepare terms for pensions, notices of termination and
severance pay as well as other beneﬁ ts for Group Manage ment.
• To prepare and evaluate Electrolux long-term incentive
programs.
• To review the Remuneration Report.
• To oversee and make recommendations regarding the develop-
ment, recruitment, and succession planning as well as evaluate
the performance of the President and the other members of
Group Management.
• To oversee the overall organizational structure and advise
Group. Management regarding people plans and develop-
ment of the company culture.

Audit Committee
The main task of the Audit Committee is to oversee the processes of
Electrolux ﬁ nancial reporting and internal control in order to secure
the quality of the Group’s external reporting. The Audit Committee is
also tasked with supporting the Nomination Committee with proposals
when electing external auditors.

The Audit Committee has consisted of the following four Board
members: Ulla Litzén (Chairman), Staﬀ an Bohman, Petra Hedengran
and Fredrik Persson. The external auditors report to the Committee
at each ordinary meeting. At least three meetings are held annually.
Additional meetings are held as needed.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

In 2022, the Audit Committee held seven meetings. The attendance
of each Board member at these meetings is shown in the table on
page 25. Electrolux managers have also had regular contacts with
the Committee Chairman between meetings regarding speciﬁ c
issues. The Group’s Chief Financial Oﬃ cer and from time to time
other senior management members have participated in the Audit
Committee meetings.

The audit is conducted in accordance with the Swedish Companies
Act, International Standards on Auditing (ISA) and generally
accepted auditing standards in Sweden.

Audits of local statutory ﬁ nancial statements for legal entities
outside of Sweden are performed as required by law or applicable
regulations in the respective countries, including issuance of audit
opinions for the various legal entities.

The Audit Committee’s tasks include for example:
• To review the ﬁ nancial reporting.
• To monitor the eﬀ ectiveness of the internal control, including
risk management, concerning the ﬁ nancial reporting.
• To follow up the activities of the Group Internal Audit as
regards to organization, recruiting, budgets, plans, results
and audit reports.
• To review and approve certain credit limits.
• To keep informed of the external audit and the quality control
performed by the Supervisory Board of Public Accountants
and to evaluate the work of the external auditors.
• To inform the Board of the outcome of the external audit
and explain how the audit contributed to the reliability of the
ﬁ nancial reporting as well as the role of the Committee in this
process.
• To review, and when appropriate, preapprove the external
auditors’ engagements in other tasks than audit services.
• To evaluate the objectivity and independence of the external
auditors.
• To support the Nomination Committee with proposals when
electing external auditors.

External auditors External auditors

The AGM in 2022 elected Pricewaterhouse-
Coopers AB (PwC) as the Group’s new external

auditors for one year, until the AGM in 2023. The election of PwC
was preceded by a thorough procurement process and recommen-
dation by the Audit Committee. Authorized Public Accountant Peter
Nyllinge is the auditor in charge of AB Electrolux.

PwC provides an audit opinion regarding AB Electrolux, the ﬁ nan-

cial statements of the majority of its subsidiaries, the consolidated
ﬁ nancial statements for the Electrolux Group and the administration
of AB Electrolux. The auditors also conduct a review of the report for
the second quarter.

SEKm

PwC

Audit fees

Audit related fees

Tax fees

All other fees

Total fees to PwC

Deloitte

Audit fees

Audit-related fees

Tax fees

All other fees

Total fees to Deloitte

Audit fees to other audit ﬁ rms

Total fees to auditors

2022

2021

2020

—

Deloitte were the Group’s external auditors for the the previous years 2020 and 2021. For details
regarding fees paid to the auditors and their non-audit assignments in the Group, see Note 28.

Internal Audit Group Internal Audit

The internal audit function is responsible for
independent, objective assurance, in order to

systematically evaluate and propose improvements for more eﬀ ec-
tive governance, internal control and risk management processes.
The process of internal control and risk management has been
developed to provide reasonable assurance that the Group’s goals
are met in terms of eﬃ cient operations, compliance with relevant
laws and regulations and reliable ﬁ nancial reporting.

Internal audit assignments are conducted according to a risk

based plan developed annually and approved by the Audit Commit-
tee. The audit plan is derived from an independent risk assessment
conducted by Group Internal Audit to identify and evaluate risks
associated with the execution of the company strategy, operations,
and processes. The plan is designed to address the most signiﬁ cant
risks identiﬁ ed within the Group and its business areas. The audits

are executed using a methodology for evaluating the design and
eﬀ ectiveness of internal controls to ensure that risks are adequately
addressed and processes are operated eﬃ ciently.

Opportunities for improving the eﬃ ciency in the governance and

internal control and risk management processes identiﬁ ed in the
internal audits are reported to responsible business area manage-
ment for action. A summary of audit results is provided to the Audit
Board and the Audit Committee, as is the status of management’s
implementation of agreed actions to address ﬁ ndings identiﬁ ed in
the audits.

For additional information on internal control, see pages 28-29.

Company
Management of

Electrolux Electrolux – a global leader with a purpose

to shape living for the better
Electrolux has a strategic framework that con-
nects its business model with a clear company purpose – Shape
living for the better. To achieve the purpose and drive proﬁ table
growth, Electrolux uses a business model which focuses on creating
outstanding branded lifetime consumer experiences. By creating
desirable solutions and outstanding experiences that enrich peoples’
daily lives and the health of the planet, Electrolux wants to be a
driving force in deﬁ ning enjoyable and sustainable living. Focus is to
invest in innovations that are most relevant for creating the outstand-
ing consumer experience to make great tasting healthy food, help
consumers to preserve their clothes longer and to increase wellbeing
in the home.

Targeted growth and optimization of the product portfolio to the

most proﬁ table product categories and products with distinct con-
sumer beneﬁ ts, will strengthen the presence of Electrolux in the prod-
uct categories and channels where the Group is most competitive.
Electrolux objective is to grow with consistent proﬁ tability, see the
ﬁ nancial targets below.

Financial targets over a business cycle
The ﬁ nancial goals set by Electrolux aim to strengthen the
Group’s leading, global position in the industry and assist in
generating a healthy total yield for Electrolux shareholders.
The objective is growth with improved proﬁ tability.
• Sales growth of at least 4% annually.
• Operating margin of at least 6%.
• Capital turnover-rate of at least 4.
• Return on net assets >20%.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Sustainable
Consumer
Experience
Innovation

Commercial
Excellence

Outstanding
Branded Lifetime
Consumer
Experiences

World Class
Ownership
Solutions

Emerging Markets Acceleration

Operational Excellence

Talent

Teamship

Continuous
Improvement

A sustainable business
Sustainability leadership is crucial to realizing the Electrolux strategy
for long-term proﬁ table growth. In 2022, Electrolux most resource-
eﬃ cient products represented 24% of products sold and 39% of
gross proﬁ t.

The company takes a consistent approach to sustainability in the
countries where Electrolux operates. Understanding and engaging
in challenges such as climate change, creating ethical and safe
workplaces, and adopting a responsible approach to sourcing and
reorganizations are important for realizing the business strategy.

Electrolux has a Code of Conduct, which sets out the framework

of how Electrolux shall conduct its operations in ethical and sus-
tainable ways. The Code of Conduct, which has been approved by
the Board, serves as an introduction to the Group Policies, and its
purpose is to increase the clarity on what the company’s principles
mean for the employees. There is regular training and communica-
tion of the Code of Conduct and Group Policies, and in 2022 online
trainings in the Code of Conduct and the Anti-corruption Policy were
rolled out to oﬃ ce based employees. At year end the completion
rates were 89% and 87% for the Code of Conduct and anti-corrup-
tion trainings respectively.

The Ethics Program encompasses a global whistleblowing sys-
tem – Ethics Helpline – through which suspected misconduct can

be reported in local languages. Reports may be submitted anony-
mously if legally permitted. The largest categories of reports in 2022
related to workplace conduct, verbal abuse and other types of
disrespectful behavior.

In line with the UN Guiding Principles on Business and Human
Rights, Electrolux conducts human rights risk assessments at both
global and local levels since 2016. The methodology for the assess-
ments focuses on identifying the risk of harming people, as a direct
or indirect result of Electrolux operations, and includes corruption
risks as well as opportunities to increase local positive impacts.
During 2022 a local impact assessment was made in South Africa.

The Group’s sustainability performance strengthens relations with
investors and Electrolux is recognized as a leader in the household
durables industry. In 2022, Electrolux was included in the Dow Jones
Sustainability Index (DJSI) World and Europe indexes.

Electrolux as a tax payer
One important aspect of Electrolux company purpose – Shape living
for the better – is to act as a good corporate citizen and taxpayer
wherever Electrolux operates. Electrolux plays an important role in
contributing to public ﬁ nances in all jurisdictions where the Group
operates. The Group has approximately 51,000 employees with sales
in approximately 120 markets.

Of Electrolux Group total tax contribution, as deﬁ ned in the below
chart, corporate tax represented approximately 9.1% in 2022. Corpo-
rate income taxes are only a portion of the Group’s total contribution
to public ﬁ nances in Electrolux markets. In addition to corporate
income taxes, Electrolux pays indirect taxes, customs duties, property
taxes, employee related taxes, environmental charges and a number
of other direct or indirect contributions to governments. The total
contribution to public ﬁ nances for 2022 amounted to approximately
SEK 10.4bn whereof approximately half related to emerging markets.
Electrolux most transparent contribution to public ﬁ nances around
the world is corporate income taxes, see Note 10. Corporate income
taxes amounted to SEK 0.9bn in 2022, representing a global eﬀ ective
tax rate of the Group of 21.0%.

Electrolux total taxes 2022

Employer tax & fees, 30.5%
Corporate tax, 9.1%
Property tax, 1.9%
Customs, 24.8%
Indirect tax, 28.5%
Environmental tax & fees, 5.3%

Management and company structure
Electrolux aims at implementing strict norms and eﬃ cient processes
to ensure that all operations create long-term value for shareholders
and other stakeholders. This involves the maintenance of an eﬃ cient
organizational structure, systems for internal control and enterprise
risk management, and transparent internal and external reporting.

Following the re-organization eﬀ ective as of July 1, 2022, the Group
consists of three global organizational areas, Consumer Experience
& Product Lines, Commercial & Consumer Journey, and Operations.
Electrolux is also organized into four geographically deﬁ ned business
areas, Europe, North America, Latin America and Asia-Paciﬁ c, Middle
East and Africa. The business area heads report to the Head of
Commercial & Consumer Journey.

The Group organization also includes the following group staﬀ
functions supporting the business, Finance & Legal, HR & Communi-
cations, Business Development & Strategy, and IT & Digital.

There are also a number of internal bodies which are forums that
are preparatory and decision-making in their respective areas, see
chart on page 23. Each body includes representatives from concerned
functions.

President
and Group

Management President and Group Management

Group Management currently includes the
President and CEO, the three organizational

area heads, four business area heads and two group staﬀ heads.
The President and CEO is appointed by and receives instructions
from the Board. The President and CEO, in turn, appoints other
members of Group Management and is responsible for the ongoing
management of the Group in accordance with the Board’s guide-
lines and instructions.

A diversiﬁ ed management team
The Electrolux management team, with its extensive expertise,
diverse cultural backgrounds and experiences from various markets
in the world, forms an excellent platform for pursuing proﬁ table
growth in accordance with the Group’s strategy. Electrolux Group
Management represents six diﬀ erent nationalities. Most of them
have previous experience of predominantly multinational consumer
goods companies.

In recent years, a number of major initiatives have been launched
aimed at better leveraging the unique, global position of Electrolux.
In several areas, global and cross-border organizations have been
established to, for example, increase the pace of innovation in prod-
uct development, reduce complexity in manufacturing and optimize
purchasing.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Changes in Group Management
The following changes in the Group management have been made
during 2022.

Eﬀ ective as of July 1, 2022, Anna Ohlsson-Leijon was appointed
new Chief Commercial Oﬃ cer and head of the new Commercial &
Consumer Journey organization, focusing on commercial growth
and consumer journey development. Chris Braam was appointed
new Head of Business Area Europe, replacing Anna Ohlsson-Leijon
in her previous role. The business area heads, responsible for Europe,
North America, Latin America, and Asia-Paciﬁ c, Middle East and
Africa, report to Anna Ohlsson-Leijon in the role of Chief Commercial
Oﬃ cer for the Group. The business area heads remain members of
Group Management.

Eﬀ ective as of January 1, 2023, Ricardo Cons was appointed new
CEO and head of Business Area North America. Nolan Pike left his
position as Head of Business Area North America in September
2022. Leandro Jasiocha was appointed CEO and head of Business
Area Latin America, replacing Ricardo Cons in his previous role.
For details regarding members of Group Management, see

pages 26-27.

Key focus areas for the President and Group Management in 2022
• Responding to the dynamic environment caused by imbalances
in the global supply chain, increased geopolitical tensions, and
high general inﬂ ation.
• Group-wide cost reduction and North America turnaround pro-
gram initiated.
• Executing on extensive product launches across business areas.
• Leveraging global scale for commercial execution and consumer
journey development.
• Continuing to drive sustainable consumer experience innovation
under sharpened brands.
• Strengthening consumer relations beyond product purchase,
including aftermarket business.

Internal bodies

President and Group
Management

Internal bodies

Insider & Disclosure
Committee

Enterprise Risk
Management Board

Ethics & Human Rights
Steering Group

Sustainability Board

Tax Board

Pension Board

Sourcing Board

Audit Board

• Implementing price increases to mitigate cost inﬂ ation.
• Continued implementation of the new sustainability framework,
launched in 2020.

Remuneration Remuneration to Group Management

Remuneration guidelines for Group Management
are resolved upon by the AGM, based on the

proposal from the Board. Remuneration to the President and CEO
is then resolved upon by the Board, based on proposals from the
People Committee. Changes in the remuneration to other members
of Group Management is resolved upon by the People Committee,
based on proposals from the President and CEO, and reported to
the Board of Directors.

Electrolux shall strive to oﬀ er total remuneration that is fair and
competitive in relation to the country of employment or region of
each Group Management member. The remuneration terms shall
emphasize ’pay for performance’, and vary with the performance
of the individual and the Group.

Remuneration may comprise of:
• Fixed compensation.
• Variable compensation.
• Other beneﬁ ts such as pension and insurance.

Following the ’pay for performance’ principle, variable compensa-
tion shall represent a signiﬁ cant portion of the total compensation
opportunity for Group Management. Variable compensation shall
always be measured against predeﬁ ned targets and have a maximum
above which no pay-out shall be made. The targets shall principally
relate to ﬁ nancial performance.

Each year, the Board of Directors will evaluate whether or not a

long-term incentive program shall be proposed to the AGM. The
AGM in March 2022 decided on a long-term share program for
2022 (LTI 2022) for up to 900 senior managers and key employees.

For additional information on remuneration, remuneration guide-
lines, long-term incentive programs and pension beneﬁ ts, see Note 27.

Timeline for the long-term incentive program for senior management 2022

2022

2023

2024

2025

Performance period

Start

The calculation of the number of performance
shares, if any, is connected to two performance
targets for the Group established by the Board; (i)
cumulative earnings per share, and (ii) CO2 reduc-
tion. Allotment of performance shares, if any, to the
participants will be made in 2025.

Year

Invitations to partici-
pants in the program.

Performance shares
allotted.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Board of Directors and Auditors

Staﬀ an Bohman
Chairman
Born 1949. Sweden. B.Sc. in
Economics and Business
Administration. Elected 2018.
Member of the Electrolux
Audit Committee and the
Electrolux People Committee.
Other assignments: Chairman
of the Board of the Research
Institute of Industrial Econom-
ics and the German-Swedish
Chamber of Commerce.
Board Member of Atlas
Copco AB and Åke Wiberg
Foundation. Member of the
Royal Swedish Academy of
Engineering Sciences (IVA).
Previous positions: President
and CEO of Sapa and
DeLaval as well as Board
member of, inter alia, Scania
AB, Inter-IKEA Holding NV
and Rezidor Hotel Group AB.
Holdings in AB Electrolux:
180,000 B-shares. 120,279 call
options, issued by Investor AB
entitling the right to purchase
Electrolux B-shares.

Jonas Samuelson
President and CEO
Born 1968. Sweden. M.Sc.
in Economics and Business
Administration. Elected 2016.
Other assignments: Board
member of Axel Johnson AB
and Volvo Cars AB.
Previous positions: Various
senior positions within
Electrolux including CFO of
AB Electrolux, COO Global
Operations Major Appliances
and Head of Major Appli-
ances EMEA. Chief Financial
Oﬃ cer and Executive Vice
President of Munters AB.
Various senior positions within
General Motors, mainly in
the U.S., and Saab Automo-
bile AB.
Holdings in AB Electrolux:
65,211 B-shares.

Petra Hedengran
Born 1964. Sweden. M. of
Laws. Elected 2014. Chairman
of the Electrolux People Com-
mittee and member of the
Electrolux Audit Committee.
Other assignments: Gen-
eral Counsel and member
of Group Management of
Investor AB. Board member of
Alecta and the Association for
Generally Accepted Principles
in the Securities Market (Sw.
Föreningen för god sed på
värdepappersmarknaden).
Previous positions: Attorney
and partner at Advokatﬁ rman
Lindahl. Various positions
within the ABB Financial S
ervices including General
Counsel of ABB Financial
Services, Nordic Region.
Law Clerk with the Stockholm
District Court. Associate at
Gunnar Lindhs Advokatbyrå.
Holdings in AB Electrolux:
15,900 B-shares.

Henrik Henriksson
Born 1970. Sweden. B.Sc.
in Business Administration.
Elected 2020.
Other assignments: President
and CEO of H2 Green Steel
AB. Board member of Hexa-
gon AB, Creades AB, SAAB
AB and the Confederation
of Swedish Enterprise (Sw.
Svenskt Näringsliv).
Previous positions: Various
senior positions within Scania,
including President and CEO
of Scania AB.
Holdings in AB Electrolux:
425 B-shares.

Ulla Litzén
Born 1956. Sweden. B.Sc.
in Economics and M.B.A.
Elected 2016. Chairman of the
Electrolux Audit Committee.
Other assignments: Board
member of Epiroc AB, Ratos
AB, Stockholm School of
Economics and the School of
Economics Association.
Previous positions: President
of W Capital Management
AB, wholly-owned by the
Wallenberg Foundations.
Various leading positions
within the Investor Group
including Managing Director
and member of Group
Management of Investor AB.
Holdings in AB Electrolux:
12,000 B-shares.

Karin Overbeck
Born 1966. Germany. Mas-
ter’s degree in Economics,
Marketing and Finance.
Elected 2020. Member of the
Electrolux People Committee
Other assignments: CEO
of Freudenberg Home and
Cleaning Solutions GmbH.
Member of Executive Council,
Freudenberg Group. Vice
President and member of the
Board of the German Brands
Association.
Previous positions: Various
senior positions within the
KAO Corporation as well as in
L’Oréal, Tchibo and Unilever.
Holdings in AB Electrolux:
3,135 B-shares.

Fredrik Persson
Born 1968. Sweden. M.Sc.
in Economics. Elected 2012.
Member of the Electrolux
Audit Committee.
Other assignments: Chairman
of the Board of JM AB, the
Confederation of European
Business (BusinessEurope)
and Ellevio AB. Board mem-
ber of Holmen AB, Hufvudsta-
den AB, ICA Gruppen AB and
Ahlström Capital Oy.
Previous positions: Various
leading positions within
Axel Johnson AB including
President and CEO. Head of
Research of Aros Securities
AB. Various positions within
ABB Financial Services AB.
Holdings in AB Electrolux:
5,000 B-shares.

David Porter
Born 1965. USA. Bachelor’s
degree, Finance. Elected 2016.
Other assignments: Head of
Microsoft Stores, Corporate
Vice President, Microsoft
Corp. Chairman of Serta
Simmons Bedding LLC.
Previous positions: Head of
Worldwide Product Distribu-
tion at DreamWorks Anima-
tion SKG. Various positions
within WalMart Stores, Inc.
Holdings in AB Electrolux:
3,315 B-shares.

Holdings in AB Electrolux are stated as of December 31, 2022 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Employee representatives

Viveca Brinkenfeldt Lever
Born 1960. Representative of
the Federation of the Salaried
Employees in Industry and
Services. Elected 2018.
Board meeting attendance:
12/12
Holdings in AB Electrolux:
0 shares.

Peter Ferm
Born 1965. Representative of
the Federation of Salaried
Employees in Industry and
Services. Elected 2018.
Board meeting attendance:
11/12
Holdings in AB Electrolux:
100 B-shares.

Wilson Quispe
Born 1978. Representative of
the Federation of Salaried
Employees in Industry and
Services. Elected 2022.
Board meeting attendance:
12/121)
Holdings in AB Electrolux:
4,900 B-shares.

Employee
representatives,
deputy members
Ulrik Danestad
Born 1969. Representative of
the Federation of Salaried
Employees in Industry and
Services. Elected 2020.
Holdings in AB Electrolux:
20 B-shares.

Secretary of the Board
Ulrika Elfving
Born 1973. M. of Laws. General
Counsel of AB Electrolux.
Secretary of the Electrolux Board
since 2022.
Holdings in AB Electrolux:
1,134 B-shares.

Committees of the
Board of Directors
People Committee
Petra Hedengran (Chairman),
Staﬀ an Bohman and Karin Overbeck.

Audit Committee
Ulla Litzén (Chairman), Staﬀ an Bohman,
Petra Hedengran and Fredrik Persson.

Auditors
PricewaterhouseCoopers AB

Peter Nyllinge
Born 1966. Authorized Public
Accountant.
Other audit assignments: Getinge AB,
Saab AB and Sandvik AB.
Holdings in AB Electrolux: 0 shares.

The board’s remuneration during 2022, meeting attendance and independence

Total remuneration
20 22, ’000 SEK

Board meeting
attendance

People Committee
attendance

Audit Committee
attendance

Ad hoc Committee
(Share Buyback
Committee)

Independence1)

Staﬀ an Bohman

Petra Hedengran

Henrik Henriksson

Ulla Litzén

Karin Overbeck2)

Fredrik Persson

David Porter

Jonas Samuelson

2,604

965

691

961

781

879

691

—

10/12

11/12

9/12

10/12

12/12

9/12

12/12

6/6

5/6

7/7

2/2

1) For further information about the independence assessment, see page 18.
2) Karin Overbeck was appointed as member of the People Committee in connection with the AGM 2022.

Holdings in AB Electrolux are stated as of December 31, 2022 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Group Management

Jonas Samuelson
President and CEO
Born 1968. Sweden. M.Sc. in Economics and
Business Administration. In Group Management
and employed since 2008.
Other assignments: Board member of Axel
Johnson AB and Volvo Cars AB.
Previous positions: Various senior positions
within Electrolux including CFO of AB Electrolux,
COO Global Operations Major Appliances
and Head of Major Appliances EMEA. Chief
Financial Oﬃ cer and Executive Vice President
of Munters AB. Various senior positions within
General Motors, mainly in the U.S., and Saab
Automobile AB.
Holdings in AB Electrolux: 65,211 B-shares.

Therese Friberg
Chief Financial Oﬃ cer, Executive Vice President
Born 1975. Sweden. B.Sc. in Business Adminis-
tration. In Group Management since 2018 and
employed since 1999.
Previous positions: CFO of Major Appliances
EMEA. Other senior positions within Electrolux
including Head of Group Business Control and
Sector Controller Home Care & SDA.
Holdings in AB Electrolux: 14,527 B-shares.

Chris Braam
CEO and head of Business Area Europe
Born 1969. The Netherlands. B.Sc in Business
Economics and Business Administration. In
Group Management since 2022 and employed
since 2011.
Previous positions: SVP Sales and Services,
Business Area Europe. Other senior positions
in Nokia Mobile Phones, Benelux and VP Sales
Middle East & Africa.
Holdings in AB Electrolux: 6,429 B-shares.

Adam Cich
CEO and head of Business Area Asia Paciﬁ c,
Middle East and Africa
Born 1968. Poland. M.Sc. in Business Adminis-
tartion. In Group Management since 2020 and
employed since 1996.
Previous positions: SVP Sales and Acting Head
of Business Area Asia Paciﬁ c, Middle East and
Africa. Head of Sales in Central and Eastern
Europe for Business Area Europe. Other senior
positions in Electrolux include leadership posi-
tions within sales and product line in Poland,
Russia and CEE region.
Holdings in AB Electrolux: 3,219 B-shares.

Ricardo Cons
CEO and head of Business Area North America
Born 1967. Brazil. Bachelor in Business Admin-
istration, Finance and Marketing, MBA in Team
Management. In Group Management since 2016
and employed in 1997–2011 and since 2016.
Previous positions: Head of Business Area Latin
America. Management positions at Franke in
Brazil. Various senior positions at Electrolux
Brazil, including President Small Appliances
Latin America, Sales and Marketing Director
Major Appliances. Positions in Volvo Brazil.
Holdings in AB Electrolux: 11,906 B-shares.

Holdings in AB Electrolux are stated as of December 31, 2022 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Carsten Franke
Head of Operations,
Executive Vice President
Born 1965. Germany. Engineer’s degree (Dipl.-
Ing) in Mechanical Engineering. In Group Man-
agement since 2020 and employed since 2005.
Previous positions: Various senior roles within
Business Area Europe including Chief Opera-
tions Oﬃ cer, Vice President Supply Chain, Vice
President Industrial Operations and Vice Pres-
ident Electrolux Lean Manufacturing System.
Positions prior to Electrolux include manage-
ment roles at Knorr-Bremse AG and Maschinen-
fabrik Reinhausen.
Holdings in AB Electrolux: 5,096 B-shares.

Leandro Jasiocha
CEO and head of Business Area Latin America
Born 1976. Brazil. Master in Business Adminis-
tration, M.Sc. in International Supply Chain/
Purchasing. In Group Management since 2023
and employed in 1995-2000, 2002-2016 and
since 2018.
Previous positions: Various senior positions
within Electrolux including Vice President
Consumer Journey Latin America and Vice
President Product Lines Latin America. Positions
prior to Electrolux include management positions
at Hyva Global B.V. and Henkel Chemicals.
Holdings in AB Electrolux: 1,125 B-shares.

Ola Nilsson
Head of Consumer Experience & Product Lines,
Executive Vice President
Born 1969. Sweden. M.Sc. in International Busi-
ness Administration. In Group Management
since 2016 and employed since 1994.
Other assignments: Board member of Fractal
Gaming Group AB.
Previous positions: Various senior positions
within Electrolux including CEO of Home Care &
SDA, Senior Vice President Product Line Laundry
Major Appliances EMEA and President Small
Appliances Asia Paciﬁ c.
Holdings in AB Electrolux: 20,257 B-shares

Anna Ohlsson-Leijon
Chief Commercial Oﬃ cer,
Executive Vice President
Born 1968. Sweden. B.Sc. in Economics and
Business Administration. In Group Management
since 2016 and employed since 2001.
Other assignments: Board member of Atlas
Copco AB and Schneider Electric SE.
Previous positions: Head of Business Area
Europe and CFO of AB Electrolux. Other senior
positions within Electrolux including CFO of
Major Appliances EMEA and Head of Electrolux
Corporate Control & Services. Chief Financial
Oﬃ cer of Kimoda. Various positions within
PricewaterhouseCoopers.
Holdings in AB Electrolux: 18,472 B-shares.

Lars Worsøe Petersen
Head of HR & Communications
Born 1958. Denmark. M.Sc. in Economics and
Business Administration. In Group Management
since 2011 and employed in 1994–2005 and
since 2011.
Previous positions: CHRO, Senior Vice President
at Husqvarna AB, 2005–2011. Various senior
positions within Electrolux including Head of
Human Resources for Major Appliances North
America and Head of Electrolux Holding A/S in
Denmark.
Holdings in AB Electrolux: 26,875 B-shares.

Holdings in AB Electrolux are stated as of December 31, 2022 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Internal control over ﬁ nancial reporting

The Electrolux Control System (ECS) has been
developed to ensure accurate and reliable ﬁ nancial
reporting and preparation of ﬁ nancial statements in
accordance with applicable laws and regulations,
generally accepted accounting principles and other
requirements for listed companies. The ECS adds value
through clariﬁ ed roles and responsibilities, improved
process eﬃ ciency, increased risk awareness and
improved decision support.
The ECS is based on the Internal Control —
Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway
Commission (COSO). The ﬁ ve components of this
framework are control environment, risk assessment,
control activities, monitor and improve and inform
and communicate.

Control environment
The foundation for the ECS is the control environment, which deter-
mines the individual and collective behavior within the Group. It
is deﬁ ned by policies and directives, manuals, and codes, and
enforced by the organizational structure of Electrolux with clear
responsibility and authority based on collective values.

The Electrolux Board has overall responsibility for establishing an

eﬀ ective system of internal control. Responsibility for maintaining
eﬀ ective internal controls is delegated to the President and CEO.
The governance structure of the Group is described on page 16.
Speciﬁ cally for ﬁ nancial reporting, the Board has established an
Audit Committee, which assists in overseeing relevant policies and
important accounting principles applied by the Group.

The limits of responsibilities and authorities are given in directives

for delegation of authority, manuals, policies and procedures,
and codes, including the Code of Conduct, the Workplace Policy,
and the AntiCorruption Policy, as well as in policies for informa-
tion, ﬁ nance, and in the accounting manual. Together with laws

urth Q u arter

Risk
assessment

First

r
t

Improve

Inform and
communicate

Control
activities

Monitor

hir

ontrol env i r o n m e
S e c

arter

n t

d Q

a rter

and external regulations, these internal guidelines form the control
environment and all Electrolux employees are held accountable for
compliance.

All entities within the Electrolux Group must maintain adequate
internal controls. As a minimum requirement, control activities should
address key risks identiﬁ ed within the Group. Group Management
has the ultimate responsibility for internal controls within their areas
of responsibility. Group Management is described on pages 26–27.
The ECS Program Oﬃ ce, a department within the Group Internal
Audit function, has developed the methodology and is responsible
for maintaining the ECS. To ensure timely completion of these activ-
ities, speciﬁ c roles aligned with the company structure, with clear
responsibilities regarding internal control, have been assigned
within the Group.

Control environment — Example

Code of Conduct
Minimum standards in the areas of environment, health and
safety, labor standards and human rights. The Code of Conduct
is mandatory for Electrolux units.

Group Finance Policy
Details the general framework for how ﬁ nancial operations
shall be organized and managed within the Group. The policy
contains directives and other mandatory standards issued by
the Group Finance organization.

Credit Directive
Rules for customer assessment and credit risk that clarify
responsibilities and are the framework for credit decisions.

Delegation of Authority Directive
Details the approval rights, with monetary, volume or other
appropriate limits, e.g., approval of credit limits and credit notes.

Accounting Manual
Accounting principles and reporting instructions for the Group‘s
reporting entities are contained in the Electrolux Accounting
Manual. The Accounting Manual is mandatory for all reporting
units.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Risk assessment Risk assessment

Risk assessment includes identifying risks of not
fulﬁ lling the fundamental criteria, i.e., complete-

ness, accuracy, valuation and reporting for signiﬁ cant accounts
in the ﬁ nancial reporting for the Group as well as risk of loss or
misappropriation of assets.

At the beginning of each calendar year, the ECS Program Oﬃ ce
performs a global risk assessment to determine the reporting units,
data centers and processes in scope for the ECS activities. Within
the Electrolux Group, a number of diﬀ erent processes generating
transactions that end up in signiﬁ cant accounts in the ﬁ nancial
reporting have been identiﬁ ed. All larger reporting units perform the
ECS activities.

The ECS has been rolled out to almost all of the smaller units within
the Group. The scope for smaller units is limited in terms of monitoring
as management is not formally required to test the controls.

Control activities Control activities

as well as process eﬃ ciency.

Control activities mitigate the risks identiﬁ ed and
ensure accurate and reliable ﬁ nancial reporting

Control activities include both general and detailed controls
aimed at preventing, detecting and correcting errors and irregu-
larities. In the ECS, the following types of controls are implemented,
documented and tested:
• Manual and application controls — to secure that key risks related
to ﬁ nancial reporting within processes are controlled.
• IT general controls — to secure the IT environment for key
applications.
• Entity-wide controls — to secure and enhance the control
environment.

Control activities — Example

Enterprise risk assessment — example accounts receivable

Closing Routine — Risks assessed

Process

Closing
Routine

Risk assessed

Control activity

Risk of incorrect ﬁ nan-
cial reporting.

Manage IT — Risks assessed

Order to Cash — Risks assessed

Manage IT

Risk of unauthorized/
incorrect changes in
the IT environment.

Order to
Cash

Risk of not receiving
payment from custom-
ers in due time.

Order to
Cash

Risk of incurring bad
debt.

Reconciliation between
general ledger and
accounts receivable
sub-ledger is performed,
documented and approved.

All changes in the IT
environ ment are authorized,
tested, veriﬁ ed and ﬁ nally
approved.

Customers’ payments are
monitored and outstanding
payments are
followed up.

Application automatically
blocks sales orders/deliv-
eries when the credit limit is
exceeded.

Monitor

Improve Monitor and Improve

Monitor and test of control activities is performed
periodically to ensure that risks are properly
mitigated.
The eﬀ ectiveness of control activities is moni-
tored continuously at four levels: Group, business

area, reporting unit, and process. Monitoring involves both formal
and informal procedures applied by management, process owners
and control operators, including reviews of results in comparison
with budgets and plans, analytical procedures, and key-perfor-
mance indicators.

Within the ECS, management is responsible for testing key controls.

Management testers who are independent of the control operator
perform these activities. Group Internal Audit maintains test plans
and performs independent testing of selected controls. Controls
that have failed must be remediated, which means establishing and
implementing actions to correct weaknesses.

The Audit Committee reviews reports regarding internal control
and processes for ﬁ nancial reporting. Group Internal Audit proac-
tively proposes improvements to the control environment. The Head
of Group Internal Audit has dual reporting lines: to the President and
CEO and the Audit Committee for assurance activities, and to the
Chief Financial Oﬃ cer for other activities.

Inform and

communicate Inform and communicate

Inform and communicate within the Electrolux
Group regarding risks and controls contributes

to ensuring that the right business decisions are made.

Guidelines for ﬁ nancial reporting are communicated to employees,
e.g., by ensuring that all manuals, policies and codes are published
and accessible through the Group-wide intranet as well as informa-
tion related to the ECS.

To inform and communicate is a central element of the ECS and
is performed continuously during the year. Management, process
owners and control operators in general are responsible for informing
and communicating the results within the ECS.

The status of the ECS activities is followed up continuously through

status meetings between the ECS Program Oﬃ ce and coordinators
in the business areas. Information about the status of the ECS is pro-
vided periodically to business area and Group Management, the
Audit Board and the Audit Committee.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Financial reporting and information
Electrolux routines and systems for information and communication
aim at providing the market with relevant, reliable, correct and vital
information concerning the development of the Group and its ﬁ nan-
cial position. Speciﬁ cally for purposes of considering the materiality
of information, including ﬁ nancial reporting, relating to Electrolux
and ensuring timely communication to the market, an Insider &
Disclosure Committee has been formed.

Electrolux has an information policy and an insider policy meeting

the requirements for a listed company.

Financial information is issued regularly in the form of:

• Full-year reports and interim reports, published as press releases.
• The Annual Report.
• Press releases on all matters which could have a signiﬁ cant eﬀ ect
on the share price.
• Presentations and telephone conferences for ﬁ nancial analysts,
investors and media representatives on the day of publication
of full-year and quarterly results.

Stockholm, February 17, 2023

AB Electrolux (publ)
The Board of Directors

Auditor’s report on the Corporate Governance Statement
To the general meeting of the shareholders in AB Electrolux
(publ), corporate identity number 556009-4178

Engagement and responsibility
It is the board of directors who is responsible for the corporate
governance statement for the year 2022 on pages 15-30 and
that it has been prepared in accordance with the Annual
Accounts Act.

The scope of the audit
Our examination has been conducted in accordance with
FAR’s auditing standard RevR 16 The auditor’s examination
of the corporate governance statement. This means that our
examination of the corporate governance statement is diﬀ erent
and substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and
generally accepted auditing standards in Sweden. We believe
that the examination has provided us with suﬃ cient basis for
our opinions.

Opinions
A corporate governance statement has been prepared.
Disclosures in accordance with chapter 6 section 6 the second
paragraph points 2-6 the Annual Accounts Act and chapter 7
section 31 the second paragraph the same law are consistent
with the annual accounts and the consolidated accounts and
are in accordance with the Annual Accounts Act.

Stockholm, February 21, 2023

PricewaterhouseCoopers AB

Peter Nyllinge
Authorized Public Accountant
Partner in Charge

Helena Kaiser de Carolis
Authorized Public Accountant

This is a translation of the Swedish language original. In the event of any diﬀ erences between
this translation and the Swedish language original, the latter shall prevail.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Report by the Board of Directors

• Net sales amounted to SEK 134,880m (125,631). Excluding currency translation
eﬀ ects, sales declined by 3.6%.
• Operating income amounted to SEK –215m (6,801), corresponding to a margin
of –0.2% (5.4). Excluding non–recurring items of SEK –1,046m (–727), operating
income amounted to SEK 831m (7,528), corresponding to a margin of 0.6% (6.0).
• Income for the period amounted to SEK –1,320m (4,678), corresponding to
SEK –4.81 (16.31) per share.
• Operating cash ﬂ ow after investments amounted to SEK –6,118m (3,200).
• 13,049,115 own series B shares were repurchased for an amount of SEK 2,138m.
• The Board of Directors proposes that no payment of dividend will be made
for 2022.

Key data

SEKm

Net sales

Sales growth, %1)

Organic growth, %

Acquisitions, %

Divestments, %

Changes in exchange rates, %

Operating income2)

Operating margin, %

Income after ﬁ nancial items

Income for the period

Earnings per share, SEK3)

Operating cash ﬂ ow after investments

Return on net assets, %

Capital turnover-rate, times/year

Average number of employees

Net debt/EBITDA

Equity per share, SEK

Dividend per share, SEK

Return on equity, %

2022

134,880

2021

Change, %

125,631

–3.6

–2.8

—

–0.8

10.9

–215

–0.2

–1,672

–1,320

–4.81

–6,118

–0.6

3.7

50,769

3.83

60.92

—4)

–7.0

14.3

14.2

0.2

—

–6.0

6,801

5.4

6,255

4,678

16.31

3,200

28.5

5.3

51,590

0.71

65.74

9.20

24.4

n.m.

1) Change in net sales adjusted for currency translation eﬀ ects.
2) Operating income for 2022 included non-recurring item of SEK -1,046m (-727). Excluding these items, operating income for 2022 amounted to

SEK 831m (7,528), corresponding to a margin of 0.6% (6.0), see Note 7.

3) Basic, based on an average of 274.7 (286.9) million shares for the full year, excluding shares held by Electrolux.
4) Proposed by the Board of Directors.
Note: n.m. (not meaningful) is used when the calculated number is considered not relevant.

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022

Net sales and income

• Net sales increased by 7.4%. This was a result of a
positive currency translation eﬀ ect of 10.9%, while
organic sales decreased by 2.8% and acquisitions
and divestments combined had a negative impact
of 0.8%.
• Operating income amounted to SEK –215m (6,801),
corresponding to a margin of –0.2% (5.4).
• Excluding non–recurring items of SEK –1,046m (–727),
operating income amounted to SEK 831m (7,528),
corresponding to a margin of 0.6% (6.0).
• The decrease in operating income excluding non–
recurring items was primarily driven by lower volumes
and signiﬁ cantly elevated cost levels as a result of
ineﬃ ciencies in production and logistics.
• Strong price execution oﬀ set signiﬁ cant cost inﬂ ation,
including currency headwinds.
• Successful product launches generated a favorable
mix despite a challenging market environment.
• Income for the period amounted to SEK –1,320m
(4,678), corresponding to SEK –4.81 (16.31) per share.

Net sales
Net sales in 2022 amounted to SEK 134,880m (125,631), which is an
increase of 7.4%. Currency translation had a positive impact of 10.9%,
while organic sales decreased by 2.8% and acquisitions and divest-
ments combined had a negative impact of 0.8%.

The organic sales decrease was driven by lower volumes due to
continued supply chain constraints in the ﬁ rst half of the year and
lower market demand. Price developed strongly in all business areas
driven by list price increases, while promotional activity returned to
normal levels towards the end of 2022. Successful product launches
generated a favorable mix, despite a challenging market environ-
ment. Aftermarket sales increased slightly.

Operating income
Operating income for 2022 amounted to SEK -215m (6,801), corre-
sponding to a margin of -0.2% (5.4). Operating income included
non-recurring items of SEK -1,046m relating to a settlement regard-
ing the arbitration in a U.S. tariﬀ case, a loss from the exit from the
Russian market, restructuring charges across business areas and
Group common cost for the Group-wide cost reduction and North
America turnaround program, the divestment of the oﬃ ce facility in
Zürich, Switzerland, and termination of a U.S pension plan, trans-
ferred to a third party. For more information, see Note 7. Excluding
these non-recurring items, operating income amounted to SEK 831m
(7,528), corresponding to a margin of 0.6% (6.0).

The decrease in operating income excluding non-recurring items

was primarily driven by lower volumes and signiﬁ cantly elevated
cost levels from production and logistic ineﬃ ciencies, mainly in
business area North America. A Group-wide cost reduction and
North America turnaround program was announced in September
to return to stability and increase proﬁ tability. However, the high
inventory of products produced before the measures were imple-
mented, resulted in a delayed earnings impact. Net price realization
was strong, oﬀ setting signiﬁ cant cost inﬂ ation, and mix was positive.
Investments in innovation and marketing increased to support
product launches and further develop capabilities for consumer
direct interaction.
each business area, see page 33-35.

For more information on the performance of

Financial net
Net ﬁ nancial items amounted to SEK –1,457m (–546). The change
was mainly a result of higher interest rates and debt levels.

Income after ﬁ nancial items
Income after ﬁ nancial items amounted to SEK -1,672m (6,255),
corresponding to -1.2% (5.0) of net sales.

Sales growth

SEKm

150000
150,000

100000
100,000

50000
50,000

0
0

-50000

18
18

19
19

20
20

21
21

22
22

Operating margin

SEKm

8000
8,000

6000
6,000

4000
4,000

2000
2,000

0
0

Net sales
Sales growth
Target: at least 4%

15
15

10
10

5
5

0
0

Total sales growth excluding
currency translation eﬀ ects.

-5
-5

8
8

6
6

4
4

2
2

0
0

Operating income
Operating margin
Operating margin excl.
non-recurring items
Target: at least 6%

For non-recurring items
included in operating income,
see Note 7 and page 117.

18
18

19
19

20
20

21
21

22
22

Financial targets are over a business cycle. For comparable reasons the ﬁ gures in the graphs above are
exclusive of the discontinued business area Professional Products.

Taxes
Total taxes for 2022 amounted to SEK 352m (–1,577), corresponding
to a tax rate of 21.0% (25.2).

Income for the period and earnings per share
Income for the period amounted to SEK -1,320m (4,678), corre-
sponding to SEK -4.81 (16.31) in earnings per share before dilution.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Operations by business area

• Sharp volume decline in Europe due to weak
market conditions.
• Signiﬁ cantly elevated cost levels in North America,
partly triggered by supply chain constraints.
• Strong price execution oﬀ set signiﬁ cant cost
inﬂ ation in Latin America.
• Successful product launches in Asia-Paciﬁ c,
Middle East and Africa.

Market demand overview
The market demand declined in most of Electrolux main markets in
2022 compared to last year when demand, in general, was strong.
During the ﬁ rst half of the year, supply chain constraints limited the
ability to fully meet underlying demand, while increased general
inﬂ ation, interest rates and geopolitical tensions impacted consumer
sentiment and purchasing power negatively during the second half.
Market demand for core appliances in Europe, excluding Russia,

decreased by 10% in 2022, where Eastern Europe declined by 13%
and Western Europe by 10%. In the U.S., market demand for core
appliances decreased by 6%. In Latin America, overall consumer
demand is estimated to have decreased by double-digit, driven by
Brazil and Chile. In addition to the economic pressure on consumers,
Chile was positively impacted last year by government incentives. In
Argentina, consumer demand is estimated to have increased, driven
by improved product availability and as a result of the negative
impact of lockdowns in 2021. In Asia-Paciﬁ c, Middle East and Africa,
consumer demand for appliances is estimated to have increased
in 2022 across main markets, although declining towards the end
of the year as consumer conﬁ dence and purchasing power were
negatively aﬀ ected by higher inﬂ ation and weaker global macro
sentiment.

Industry shipments for core appliances in Europe
Million units

110
110

100
100

90
90

80
80

70
70

A total of approximately
87 million core appliances
were sold in Europe in 2022.

Source: Electrolux estimates. As from 2018, market volumes in Eastern Europe have been revised,
considering additional sources. Estimates exclude Russia.

Industry shipments for core appliances in the U.S.
Million units

60
60

55
55

50
50

45
45

40
40

35
35

A total of approximately
52 million core appliances
were sold in the U.S. in 2022.

Source: AHAM. Core appliances includes AHAM 6 (washers, dryers, dishwashers, refrigerators,
freezers, ranges and ovens) and cooktops.

For other markets there are no comprehensive market statistics.

Business areas
Electrolux operations are organized into four regional business areas:
Europe, North America, Latin America and Asia-Paciﬁ c, Middle East
and Africa. The Group’s operations include products for consumers
comprising of major appliances, e.g. refrigerators, freezers, cookers,
dryers, washing machines, dishwashers, room air-conditioners and
microwave ovens. Floor-care products, water heaters, heat pumps,
small domestic appliances as well as consumables, accessories and
service are other important areas for Electrolux.

Share of sales by business area

Europe, 34%
North America, 35%
Latin America, 18%
Asia-Paciﬁ c, Middle East
and Africa, 13%

Financial overview by business area

SEKm

Net sales

Operating income

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East
and Africa

Group common costs, etc.

Total Group

Operating margin, %

Operating margin
excl. non-recurring items, %1)

2022

2021

Change, %

134,880

125,631

–83

n.m.

–21

–13

–18

n.m.

683

–2,394

1,058

1,308

–870

–215

–0.2

4,002

688

1,336

1,511

–737

6,801

5.4

0.6

6.0

1) For more information on non-recurring items, see Note 7.
Note: n.m. (not meaningful) is used when the calculated number is considered not relevant.

Europe
Market demand in Europe, excluding Russia, decreased by 10% in
2022. Eastern Europe declined by 13% and Western Europe by 10%.
The business area reported an organic sales decline of 8.6% in
2022, driven by lower volumes. Consumer demand was negatively
impacted by increased general inﬂ ation, interest rates, and geopo-
litical tensions. In addition, supply chain constraints limited the ability
to fully meet underlying demand during the ﬁ rst half of the year. Price
realization was strong, driven by list price increases implemented
during the year, and mix developed favorably. Paused operations
in Russia, before subsequent exit from the market, contributed to the
organic sales decline.

Operating income and margin decreased year-over-year, pre-
dominantly due to lower volumes. Price oﬀ set the signiﬁ cant cost
inﬂ ation, primarily in raw materials and logistics, while supply chain
constraints and irregular supply caused additional cost. Towards the
end of the year, reduced discretionary spending impacted earnings
positively and actions to adjust production to a weaker market
demand under the Group-wide cost reduction program were initiated.
Non-recurring items of SEK -774m were included in the operating
income relating to a loss from the exit from the Russian market, a
restructuring charge for the Group-wide cost reduction program,
and divestment of the oﬃ ce facility in Zürich, Switzerland, see Note 7.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Europe, Net sales and operating margin
SEKm
%

50 000
50,000

40 000
40,000

30 000
30,000

20 000
20,000

10 000
10,000

0
0

Net sales
Operating margin
Operating margin excl.
non-recurring items1)

10
10

8
8

6
6

4
4

2
2

0
0

18
18

19
19

20
20

21
21

22
22

Europe, Key ﬁ gures

SEKm

Net sales

Organic growth, %

Acquisitions, %

Divestments, %

Operating income

Operating margin, %

Operating margin excl. non-recurring items, %1)

Net assets

Return on net assets, %

Capital expenditure

Average number of employees

1) For information on non-recurring items, see Note 7 and page 117.

2022

2021

46,573

49,384

–8.6

0.1

–2.2

683

1.5

3.1

5,768

15.1

3,310

18,250

10.6

0.1

—

4,002

8.1

1,749

224.4

2,787

17,914

North America
Market demand for core appliances in the U.S. decreased by 6% in
2022. Market demand for all major appliances, including microwave
ovens and home-comfort products, decreased by 8%.

The business area reported a slight organic sales decline of 0.9%.
Volumes decreased as a result of weaker market demand as well as
a strategic shift from certain sourced products. In addition, supply
chain constraints and labor shortages negatively impacted the abil-
ity to fully meet underlying demand during the ﬁ rst half of the year.
Price developed strongly driven by list price increases implemented
during the year, while promotional activity returned to normal levels
towards the end of 2022. Sales of new product ranges, primarily pro-
duced in the two new factories, contributed to a favorable mix.

Operating income was negative. This was a result of signiﬁ cantly

elevated cost levels from severe production ineﬃ ciencies, espe-
cially in the two new factories being ramped up, partly triggered by
supply chain constraints. In addition, logistic ineﬃ ciencies including
increased spot buys of components and use of air freight had a neg-
ative impact. A turnaround program was announced in September

to return to stability and proﬁ tability. However, the high inventory of
products produced before the measures were implemented, resulted
in a delayed earnings impact. In addition, lower sales volumes
impacted earnings negatively. Price oﬀ set signiﬁ cant cost inﬂ ation,
mainly in raw material and logistics. Non-recurring items of SEK 241m
(-727) were included in the operating income relating to a settlement
regarding the arbitration in a U.S. tariﬀ case, a restructuring charge
for the Group-wide cost reduction and North America turnaround
program and termination of a U.S. pension plan, transferred to a
third party, see Note 7.

sales developed strongly. Volumes declined due to challenging
market conditions.

Operating income and margin decreased year-over-year, driven

by lower volumes. Price oﬀ set signiﬁ cant cost inﬂ ation, mainly in
raw material. Investments in innovation and brand-strengthening
initiatives increased to support product launches. A non-recurring
item of SEK -80m was included in the operating income relating to
a restructuring charge for the Group-wide cost reduction program,
see Note 7.

North America, Net sales and operating margin
SEKm

60000
60,000

45000
45,000

30000
30,000

15000
15,000

0
0

-15000

Net sales
Operating margin
Operating margin excl.
non-recurring items1)

24
24

18
18

12
12

6
6

0
0

-6
-6

18
18

19
19

20
20

21
21

22
22

North America, Key ﬁ gures

SEKm

Net sales

Organic growth, %

Operating income

Operating margin, %

Operating margin excl. non-recurring items, %1)

Net assets

Return on net assets, %

Capital expenditure

2022

2021

47,021

40,468

–0.9

–2,394

–5.1

–5.6

11,854

–20.5

1,738

12.7

688

1.7

3.5

9,376

8.7

1,311

Latin America, Net sales and operating margin
SEKm

25000
25,000

20000
20,000

15000
15,000

10000
10,000

5000
5,000

0
0

Net sales
Operating margin
Operating margin excl.
non-recurring items1)

10
10

8
8

6
6

4
4

2
2

0
0

18
18

19
19

20
20

21
21

22
22

Latin America, Key ﬁ gures

SEKm

Net sales

Organic growth, %

Operating income

Operating margin, %

Operating margin excl. non-recurring items, %1)

Net assets

Return on net assets, %

Capital expenditure

Average number of employees

2022

2021

24,303

19,958

4.2

1,058

4.4

4.7

33.7

1,336

6.7

8,724

5,893

13.1

979

25.9

933

9,571

10,749

Average number of employees

12,995

13,558

1) For information on non-recurring items, see Note 7 and page 117.

Latin America
Overall consumer demand for core appliances in Latin America in
2022 is estimated to have declined double-digit. In Chile and Brazil,
demand is estimated to have decreased, while demand is estimated
to have increased in Argentina.

The business area reported an organic sales growth of 4.2% in
2022. Price developed strongly driven by list price increases imple-
mented during the year, while promotional activity returned to nor-
mal levels towards the end of 2022. Product launches and improved
product availability generated a favorable mix and aftermarket

Asia-Paciﬁ c, Middle East and Africa
Consumer demand for appliances is estimated to have increased in
the region in 2022 across main markets, although softening towards
the end of the year as consumer conﬁ dence and purchasing power
were negatively aﬀ ected by higher inﬂ ation and weaker global
macro sentiment.

The business area reported a slight organic sales decline of 0.5%.
Price developed favorably driven by list price increases implemented
during the year. Product launches contributed to a positive mix,
while volumes declined. Volumes were mainly impacted negatively

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

by supply chain constraints in the ﬁ rst half of the year and by weaker
market demand towards the end of the year.

Other facts

Operating income and margin decreased year-over-year, due

to lower volumes. Price oﬀ set signiﬁ cant cost inﬂ ation, including
currency headwinds. A non-recurring item of SEK -66m was included
in the operating income relating to a restructuring charge for the
Group-wide cost reduction program, see Note 7.

Asia-Paciﬁ c, Middle East and Africa, Net sales and operating margin
SEKm

20000
20,000

15000
15,000

10000
10,000

5000
5,000

0
0

Net sales
Operating margin
Operating margin excl.
non-recurring items1)

12
12

9
9

6
6

3
3

0
0

18
18

19
19

20
20

21
21

22
22

Asia-Paciﬁ c, Middle East and Africa, Key ﬁ gures

SEKm

Net sales

Organic growth, %

Acquisitions, %

Operating income

Operating margin, %

Operating margin excl. non-recurring items, %1)

Net assets

Return on net assets, %

Capital expenditure

Average number of employees

1) For information on non-recurring items, see Note 7 and page 117.

2022

2021

16,984

15,820

-0.5

—

1,308

7.7

8.1

8.4

0.9

1,511

9.6

6,370

4,900

21.9

850

31.7

727

8,040

7,876

Changes in Group Management during 2022
Eﬀ ective as of July 1, 2022, Anna Ohlsson-Leijon was appointed
new Chief Commercial Oﬃ cer and head of the new Commercial &
Consumer Journey organization, focusing on commercial growth
and consumer journey development. Chris Braam was appointed
new Head of Business Area Europe, replacing Anna Ohlsson-Leijon
in her previous role. The Business Area heads, responsible for Europe,
North America, Latin America and Asia-Paciﬁ c, Middle East and
Africa, report to Anna Ohlsson-Leijon in the role of Chief Commercial
Oﬃ cer for the Group. The Business Area heads remain members of
Group Management.

Statutory sustainability report
For sustainability related information, please see Statutory sustain-
ability report on page 47-48 and 56–66. The Statutory sustainability
report has been prepared in accordance with disclosure require-
ments set out in the Swedish Annual Accounts Act, chapter 6, para-
graph 11.

Asbestos litigation in the U.S.
Litigation and claims related to asbestos are pending against the
Group in the U.S. Almost all of the cases refer to externally supplied
components used in industrial products manufactured by discontin-
ued operations prior to the early 1970s. The cases involve plaintiﬀ s
who have made substantially identical allegations against other
defendants who are not part of the Electrolux Group.

As of December 31, 2022, the Group had a total of 3,365 (3,315)
cases pending, representing approximately 3,371 (approximately
3,324) plaintiﬀ s. During 2022, 1,054 new cases with approximately
1,054 plaintiﬀ s were ﬁ led and 1,004 pending cases with approxi-
mately 1,007 plaintiﬀ s were resolved.

The Group continues to operate under a 2007 agreement with
certain insurance carriers who have agreed to reimburse the Group
for a portion of its costs relating to certain asbestos lawsuits. The
agreement is subject to termination upon 60 days notice and if
terminated, the parties would be restored to their rights and obliga-
tions under the aﬀ ected insurance policies.

It is expected that additional lawsuits will be ﬁ led against

Electrolux. It is not possible to predict the number of future lawsuits.
In addition, the outcome of asbestos lawsuits is diﬃ cult to predict
and Electrolux cannot provide any assurances that the resolution of
these types of lawsuits will not have a material adverse eﬀ ect on its
business or on results of operations in the future.

For information on certain additional legal proceedings, see Note 25 Contingent liabilities.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Financial position

• Financial net debt position amounted to
SEK 19,828m (4,645).
• Net debt/EBITDA ratio was 3.83 (0.71).
• Equity/assets ratio was 15.0% (19.3).
• Return on net assets was –0.6% (28.5).

Working capital and net assets
Working capital as of December 31, 2022, amounted to SEK –13,731m
(–17,726), corresponding to –9.9% (–13.7) of annualized net sales.
Operating working capital amounted to SEK 7,504m (5,407),
corresponding to 5.4% (4.2) of annualized net sales.

Average net assets were SEK 36,684m (23,860), corresponding

to 27.2% (19.0) of annualized net sales.

Return on net assets was -0.6% (28.5).

Liquid funds
Liquid funds as of December 31, 2022, amounted to SEK 17,800m
(11,236), excluding back-up credit facilities. As per December 31,
2022, Electrolux had an unused committed back-up multi-currency
sustainability linked revolving credit facility of EUR 1,000m, approxi-
mately SEK 11,100m, maturing 2027, an unused revolving credit facility
of SEK 2,500m, maturing 2023, and an unused revolving credit facility
of SEK 3,000m, maturing 2024.

Working capital and net assets

SEKm

Inventories

Trade receivables

Accounts payable

Operating working capital

Provisions

Prepaid and accrued income
and expenses

Taxes and other assets and
liabilities

Dec. 31,
2022

% of net
sales1)

Dec. 31,
2021

% of net
sales1)

24,374

21,487

17.7

15.6

20,478

23,110

15.9

17.9

–38,357

–27.8 –38,182

–29.6

7,504

–8,693

5.4

5,407

4.2

–7,368

Liquidity proﬁ le

SEKm

Liquid funds

% of annualized net sales1)

Net liquidity

Fixed interest term, days

Eﬀ ective annual yield, %

–12,567

–14,371

–1,394

Capital turnover-rate
Times/year

1) Liquid funds in relation to net sales, see page 118 for deﬁ nition.
For additional information on the liquidity proﬁ le, see Note 18.

Dec. 31, 2022 Dec. 31, 2021

17,800

24.9

8,724

0.8

11,236

24.4

5,560

0.3

Capital turnover-rate
Target: at least 4 times/year

8
8

6
6

4
4

2
2

0
0

Working capital

–13,731

–9.9 –17,726

–13.7

Property, plant and equipment,
owned

Property, plant and equipment,
right-of-use

Goodwill

Other non-current assets

Deferred tax assets and
deferred tax liabilities

Net assets
Annualized net sales2)

Average net assets

Annualized net sales3)

Return on net assets, %

1) Annualized, see page 118 for deﬁ nition.
2) Calculated at end of period exchange rates.
3) Calculated at average exchange rates.

29,876

25,422

3,906

7,081

6,224

6,940

2,771

6,690

4,775

5,269

40,297

29.2

27,201

21.1

138,040

129,124

36,684

27.2

23,860

19.0

134,880

–0.6

125,631

28.5

Return on net assets
SEKm

40000
40,000

30000
30,000

20000
20,000

10000
10,000

0
0

Average net assets
Return on net assets
Target: >20%

40
40

30
30

20
20

10
10

0
0

18
18

22
22
Financial targets are over a business cycle. For comparable reasons the ﬁ gures in the graphs above are
exclusive of the discontinued business area Professional Products.

21
21

19
19

20
20

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Dec. 31, 2022 Dec. 31, 2021

Long-term borrowings, by maturity
SEKm

Net debt
As of December 31, 2022, Electrolux had a ﬁ nancial net debt
position (excluding lease liabilities and post-employment provisions)
of SEK 19,828m, compared to the ﬁ nancial net debt position of
SEK 4,645m as of December 31, 2021. In 2022, a total of SEK 2,521m
was distributed to shareholders as dividend and shares of series B
were repurchased for a total amount of SEK 2,138m. Net provisions
for post-employment beneﬁ ts were SEK -245m (891) and lease
liabilities amounted to SEK 4,264m (3,055) as of December 31, 2022.
In total, net debt amounted to SEK 23,848m, an increase by
SEK 15,257m compared to SEK 8,591m per December 31, 2021.

Long-term borrowings and long-term borrowings with maturities
within 12 months amounted to a total of SEK 31,343m as of Decem-
ber 31, 2022 with average maturity of 4.0 years, compared to
SEK 14,392m and 1.9 years at the end of 2021. During 2023, long-
term borrowings amounting to approximately SEK 2.6bn will mature.
The Group’s target for long-term borrowings includes an average

time to maturity of at least two years, an even spread of maturities
and an average interest-ﬁ xing period between 0 and 3 years. A
maximum of SEK 5,000m of the long-term borrowings is allowed to
mature in a 12-month period. During 2022, the Board of Directors
approved exceptions from these targets in order to ensure adequate
long-term funding during the global downturn in the economy. The
maximum amount of long-term borrowings maturing in any given
12-months period was SEK 9,125m at the end of 2022. At year-end,
the average interest-ﬁ xing period for long-term borrowings was
2.3 years (1.2).

At year-end, the average interest rate for the Group’s total interest-

bearing borrowings was 3.4% (1.4).

Net debt and equity ratios
The net debt/EBITDA ratio was 3.83 (0.71) and the net debt/equity
ratio was 1.45 (0.46). The equity/assets ratio was 15.0% (19.3).

Equity and return on equity
Total equity as of December 31, 2022, amounted to SEK 16,449m
(18,610), which corresponds to SEK 60.92 (65.74) per share. Return
on equity was -7.0% (24.4).

Net debt

SEKm

Short-term loans

Short-term part of long-term loans

Trade receivables with recourse

Short-term borrowings

Financial derivative liabilities

Accrued interest expenses and
prepaid interest income

Total short-term borrowings

Long-term borrowings

Total borrowings1)

5,732

2,605

8,377

445

254

9,076

28,738

37,813

1,288

4,187

5,563

5,675

10,205

15,881

Long-term ﬁ nancial receivables

185

—

Cash and cash equivalents

Short-term investments

Financial derivative assets

Prepaid interest expenses and
accrued interest income

Liquid funds

Financial net debt

Lease liabilities

Net provisions for post-
employment beneﬁ ts

Net debt

Net debt/EBITDA

Net debt/equity ratio

Total equity

Equity per share, SEK

Return on equity, %

Equity/assets ratio, %

17,559

10,923

168

165

144

17,800

11,236

19,828

4,264

–245

23,848

3.83

1.45

16,449

60.92

–7.0

15.0

4,645

3,055

891

8,591

0.71

0.46

18,610

65.74

24.4

19.3

1) Whereof interest-bearing liabilities amounting to SEK 37,075m as of December 31, 2022 and

SEK 15,681m as of December 31, 2021.

10000
10,000

8000
8,000

6000
6,000

4000
4,000

2000
2,000

0
0

28-

Net debt/EBITDA ratio

In 2023, long-term borrowings
in the amount of approximately
SEK 2.6bn will mature. For infor-
mation on borrowings, see
Note 2 and 18.

4.0
4

3.0
3

2.0
2

1.0
1

0
0

Equity/assets ratio

50
50

40
40

30
30

20
20

10
10

0
0

Rating
Electrolux has an investment-grade rating from S&P Global Ratings,
A– with a negative outlook.

Long-term debt Outlook

Short-term
debt

Short-term
debt, Nordic

S&P Global
Ratings

A–

Negative

A–2

K–1

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Cash ﬂ ow

• Operating cash ﬂ ow after investments amounted to
SEK –6,118m (3,200).
• Capital expenditure amounted to SEK 7,389m
(6,043).
• R&D expenditure amounted to 3.4% (3.1) of net sales.

Operating cash ﬂ ow after investments
Operating cash ﬂ ow after investments in 2022 amounted to
SEK -6,118m (3,200). The year-over-year comparison reﬂ ects a lower
operating income and decreased accounts payable as a result of
eﬀ orts to reduce high inventory levels caused by supply chain imbal-
ances and logistic constraints. In addition, a higher level of invest-
ments impacted cash ﬂ ow negatively.

Capital expenditure
Capital expenditure in property, plant and equipment in 2022
amounted to SEK 5,649m (4,847). The investments were mainly
related to new products and architectures, manufacturing eﬃ ciency
and re-engineering, including automation and modularization.
Including investments in product development and software, capital
expenditure amounted to SEK 7,389m (6,043), corresponding to
5.5% (4.8) of net sales.

Cash ﬂ ow

SEKm

2022

2021

Capital expenditure by business area

Operating income adjusted for
non-cash items1)

Change in operating assets and liabilities

Operating cash ﬂ ow

6,845

–6,367

478

12,185

–3,175

9,010

SEKm

Europe

% of net sales

North America

Investments in tangible and intangible assets

–7,389

–6,043

% of net sales

2022

3,310

7.1

1,738

3.7

979

4.0

850

5.0

512

2021

2,787

5.6

1,311

3.2

933

4.7

727

4.6

285

7,389

5.5

6,043

4.8

233

Latin America

% of net sales

Asia-Paciﬁ c, Middle East and Africa

% of net sales

Other

Total

% of net sales

R&D expenditure
The expenditure for research and development in 2022 including
capitalization of SEK 740m (578), amounted to SEK 4,640m (3,864)
corresponding to 3.4% (3.1) of net sales.

Operating cash ﬂ ow after investments
SEKm

10000
10,000

5000
5,000

0
0

-5000
-5,000

-10000
-10,000

Capital expenditure
SEKm

Operating cash ﬂ ow after
investments in 2022 amounted
to SEK -6,118m (3,200).

8000
8,000

6000
6,000

4000
4,000

2000
2,000

0
0

8000

Capital expenditure
Depreciation and amortization

6000

4000
Capital expenditure in 2022
including product development
2000
and software amounted to
0
SEK 7,389m (6,043).

18
18

19
19

20
20

21
21

22
22

For comparable reasons the ﬁ gures in the graphs above are exclusive of the discontinued business
area Professional Products.

Changes in other investments

Operating cash ﬂ ow after investments

Acquisitions and divestments of operations

793

–6,118

–366

Operating cash ﬂ ow after structural changes

–6,484

Financial items paid, net2)

Taxes paid

Cash ﬂ ow from operations and investments

Payment of lease liabilities

Dividend

Redemption of shares

Repurchase of shares

Share-based payments

–1,238

–1,514

–9,236

–960

–2,521

—

–2,138

–217

3,200

–1,006

2,194

–470

–1,480

244

–880

–2,299

–4,886

–894

–259

Total cash ﬂ ow, excluding changes in loans
and short-term investments

–15,073

–8,975

1) Operating income adjusted for depreciation and amortization and other non-cash items.
2) Interests and similar items received SEK 71m (58), interests and similar items paid SEK –1,206m

(–430) and other ﬁ nancial items paid SEK –103m (–98).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Share information and ownership

Share price performance1)
The Electrolux shares are listed on the exchange Nasdaq Stock-
holm, Sweden. The Electrolux B share decreased by 36% in 2022,
underperforming the broader Swedish market index, OMX Stockholm,
which decreased by 25% during the same period. The opening price
for the Electrolux B share in 2022 was SEK 219.50. The highest closing
price was SEK 221.90 on January 3, while the lowest closing price
was SEK 114.72 on September 29. The closing price for the B share at
year-end 2022 was SEK 140.78.

Total shareholder return during the year was -31%. Over the past

ten years, the average total return on an investment in Electrolux
B shares has been 4.8% annually. The corresponding performance
for the OMX Stockholm Return Index was 11%.

Share capital and ownership structure
As of December 31, 2022, the share capital of AB Electrolux amounted
to approximately SEK 1,545m, corresponding to 283,077,393 shares.
The share capital of Electrolux consists of Class A shares and Class B
shares. An A share entitles the holder to one vote and a B share
to one-tenth of a vote. All shares entitle the holder to the same
proportion of assets and earnings and carry equal rights in terms
of dividends. In accordance with the Swedish Companies Act, the
Articles of Association of Electrolux also provide for speciﬁ c rights
of priority for holders of diﬀ erent types of shares, in the event that
the company issues new shares or certain other instruments.
According to Electrolux Articles of Association, owners of
Class A shares have the right to have such shares converted to
Class B shares. The purpose of the conversion clause is to give
holders of Class A shares an opportunity to achieve improved
liquidity in their shareholdings. Conversion reduces the total number
of votes in the company. 150 A shares were converted to B shares
in 2022.

The total number of registered shares in the company amounts
to 283,077,393 shares, of which 8,192,348 are Class A shares and
274,885,045 are Class B shares, and the total number of votes
amounts to 35,680,853.

1) The historical development of the Electrolux share price has been adjusted to take into account
the distribution of Electrolux Professional AB to Electrolux shareholders on March 23, 2020. The
share price is also adjusted for all types of corporate actions, including splits and redemptions,
with the exception of dividends.

Ownership structure

Distribution of shareholdings

Swedish institutions and mutual funds, 62%
Foreign investors, 25%
Swedish private investors, 13%

Source: Monitor by Modular Finance AB. Compiled and processed data from various sources,
including Euroclear, Morningstar and the Swedish Financial Supervisory Authority
(Finansinspektionen) as of December 31, 2022.

Major shareholders

Investor AB

Handelsbanken Funds

Swedbank Robur Funds

Alecta Occupational Pension

BlackRock, Inc.

Vanguard

Carnegie Funds

Lannebo Funds

Folksam

Nordea Funds

Share
capital, %

Voting
rights, %

17.9

5.4

4.4

3.7

2.9

2.7

1.9

1.8

1.5

30.4

4.3

3.5

4.2

2.3

2.2

1.5

1.4

1.2

Total, ten largest shareholders

43.7

52.2

Source: Monitor by Modular Finance AB. Compiled and processed data from various sources,
including Euroclear, Morningstar and the Swedish Financial Supervisory Authority
(Finansinspektionen) as of December 31, 2022.

According to Monitor by Modular Finance AB, there were 83,248
shareholders in AB Electrolux as of December 31, 2022. Investor AB
is the largest shareholder, owning 17.9% of the share capital and
30.4% of the voting rights. Information on the shareholder structure
is updated quarterly at www.electroluxgroup.com.

Shareholding

Ownership, %

Number of
shareholders

As % of
shareholders

1–1,000

1,001–10,000

10,001–20,000

20,001–

Total

5.0

6.4

1.3

87.3

100

75,813

6,800

266

369

83,248

91.1

8.2

0.3

0.4

100

Source: Monitor by Modular Finance AB. Compiled and processed data from various sources,
including Euroclear, Morningstar and the Swedish Financial Supervisory Authority
(Finansinspektionen) as of December 31, 2022.

Articles of Association
AB Electrolux Articles of Association stipulate that the Annual
General Meeting (AGM) shall always resolve on the appointment of
the members of the Board of Directors. Apart from that, the articles
do not include any provisions for appointing or dismissing members
of the Board of Directors or for changing the articles.

A shareholder participating in the General Meeting is entitled to
vote for the full number of shares which he or she owns or represents.
Outstanding shares in the company may be freely transferred, with-
out restrictions under law or the company’s Articles of Association.
Electrolux is not aware of any agreements between shareholders,
which limit the right to transfer shares. The full Articles of Association
can be downloaded at www.electroluxgroup.com.

Eﬀ ect of signiﬁ cant changes in ownership structure on
long-term ﬁ nancing
The Group’s long-term ﬁ nancing is subject to conditions, which
stipulate that lenders may request advance repayment in the event
of signiﬁ cant changes in the ownership of the company. Such sig-
niﬁ cant change could result from a public bid to acquire Electrolux
shares.

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Distribution of funds to shareholders

Dividend 2021, buybacks and cancellation of shares
The Annual General Meeting in March 2022 decided to adopt the
Board’s proposed dividend of SEK 9.20 per share for 2021, which was
paid out in two equal installments.

On April 29, 2022, AB Electrolux announced a share buyback pro-
gram of a maximum of 8,000,000 series B shares for a total maximum
amount of SEK 1,250m between May 2, 2022, and October 21, 2022.
This program was completed on September 2, 2022, when a total of
8,000,000 series B shares had been repurchased for a total amount
of SEK 1,138m. During the full year of 2022 a total of 13,049,115 series B
shares were repurchased for a total amount of SEK 2,138m. The total
amount included 5,049,115 shares repurchased during 2022 as part
of the buyback program initiated in October 2021.

Following buybacks during 2021, the Annual General Meeting in

March 2022 decided to adopt the Board’s proposal to cancel all
shares of series B that Electrolux owned on December 31, 2021 with
a simultaneous bonus issue without issuing any new shares to restore
the share capital level, improving earnings per share. During 2022,
a total of 25,842,915 share of series B were cancelled.

Proposed dividend
According to the company’s dividend policy, Electrolux target is
for the dividend to correspond to approximately 50% of the annual
income. As the annual income for 2022 was negative, the Board of
Directors proposes that no dividend shall be distributed for the
ﬁ scal year 2022.

Proposal for resolution on acquisition of own shares
Electrolux has, for several years, had a mandate from the Annual
General Meetings to acquire own shares.

Even though the Board of Directors currently has no intention to

exercise an authorization to acquire additional own shares, the
Board of Directors proposes the authorization is to be renewed as
an authorization is valid until the following Annual General Meeting.
The Board of Directors would then be able to decide to repurchase
own shares, if the conditions are appropriate and the Board of
Directors were to ﬁ nd it would be in the best interests of the company
and the shareholders. The Board of Directors therefore proposes the
Annual General Meeting 2023 to authorize the Board of Directors,
for the period until the next Annual General Meeting, to resolve on
acquisitions of shares in the company and that the company may
acquire as a maximum so many shares of series B that, following
each acquisition, the company holds at a maximum 10% of all shares
issued by the company.

The purpose of the proposal is to be able to use repurchased

shares on account of potential company acquisitions, the company’s
share related incentive programs as well as to be able to adapt the
company’s capital structure.

As of December 31, 2022, Electrolux held 13,049,115 shares of
series B in Electrolux, corresponding to approximately 4.6% of the
total number of shares in the company.

Total distribution to shareholders
SEKm

Number of shares1)

10000
10,000

8000
8,000

6000
6,000

4000
4,000

2000
2,000

0
0

Dividend
Distribution of Electrolux
Professional AB
Redemption

Electrolux has a long tradition of
high total distribution to sharehold-
ers. In 2022 Electrolux repurchased
own shares of series B for a total
amount of SEK 2,138m.

A shares

B shares

Shares, total

Shares held
by Electrolux

Shares held by
other shareholders

Number of shares as of January 1, 2022

8,192,498

300,727,810

308,920,308

25,842,915

283,077,393

Change during the year

–150

–25,842,765

–25,842,915

–12,793,800

–13,049,115

Total number of shares as of December 31, 2022

8,192,348

274,885,045

283,077,393

13,049,115

270,028,278

As % of total number of shares

1) For more information on number of shares, see Note 20.

4.6%

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Electrolux Annual Report 2022

Employees

Electrolux corporate culture
Teamship is the Electrolux way of working. It is about setting aligned
goals that allow clear choices and continuous improvement. It is
about knowing how to collaborate. It is about transparency and a
learning organization. Finally, it is about engagement and passion
about creating outstanding consumer experiences.

Wherever Electrolux operates in the world, the company applies

the same high ethical standards and principles of conduct.

Electrolux has a global ethics program, encompassing both ethics
training and a whistleblowing system – the Electrolux Ethics Helpline.
Through the Electrolux Ethics Helpline, employees can report sus-
pected misconduct in local languages. Reports may be submitted
anonymously if legally permitted.

Code of Conduct
The Group has a Code of Conduct that deﬁ nes high employment
standards for all Electrolux employees in all countries and business
areas. It incorporates issues such as child and forced labor, health
and safety, workers’ rights and environmental compliance. Key poli-
cies in this context include the Workplace Policy, the Anti-Corruption
Policy and the Environmental Policy.

Number of employees
The average number of employees of Electrolux decreased in 2022
to 50,769 (51,590), of whom 1,720 (1,526) were in Sweden. Salaries
and remuneration in 2022 amounted to SEK 19,644m (16,829), of
which SEK 1,561m (1,210) refers to Sweden.

Employees

60000
60,000

55000
55,000

50000
50,000

45000
45,000

40000
40,000

SEKm

2,8
2.80

2,6
2.60

2,4
2.40

Average number of
employees
Net sales per employee

2,2
2.20

2,0
2.00

The average number of
employees decreased to
50,769 (51,590) in 2022.

18
18

19
19

20
20

21
21

22
22

For comparable reasons the ﬁ gures in the graph are exclusive of the discontinued business area
Professional Products.

Remuneration guidelines for Group Management
The following guidelines were approved by the Annual General
Meeting 2020 and apply until the Annual General Meeting 2024
unless any changes are proposed.

The guidelines apply to the remuneration and other terms of

employment for the President and CEO, other members of the Group
Management of Electrolux (’Group Management’) and, if appli-
cable, remuneration to board members for work in addition to the
board assignment. The Group Management currently comprises ten
executives.

member. These guidelines enable the Company to oﬀ er the Group
Management a competitive total remuneration. More information
on the Company’s strategy can be found on the Company’s website,
www.electroluxgroup.com.

The remuneration terms shall emphasize ‘pay for performance’,
and vary with the performance of the individual and the Group. The
total remuneration for the Group Management shall be in line with
market practice and may comprise of the following components:
ﬁ xed compensation, variable compensation, pension beneﬁ ts and
other beneﬁ ts.

The guidelines shall be applied to employment and consultancy

Employment contracts governed by rules other than Swedish

agreements entered into after the Annual General Meeting in
2020 and to changes made to existing agreements thereafter. The
guidelines shall be in force until new guidelines are adopted by the
General Meeting. These guidelines do not apply to any other remu-
neration decided or approved by the General Meeting.

Remuneration for the President and CEO and, if applicable,

members of the Board of Directors is resolved upon by AB Electrolux
Board of Directors, based on the recommendation of the People
Committee. Remuneration for other members of Group Manage-
ment is resolved upon by the People Committee and reported to the
Board of Directors. The People Committee shall also monitor and
evaluate programs for variable remuneration for the Group Manage-
ment, the application of the guidelines for executive remuneration as
well as the current remuneration structures and compensation levels
in the Company. The Board of Directors shall, based on the rec-
ommendation from the People Committee, prepare a proposal for
new guidelines at least every fourth year and submit it to the Annual
General Meeting. The President and CEO and other members of the
Group Management do not participate in the Board of Directors’
processing of and resolutions regarding remuneration related
matters in so far as they are aﬀ ected by such matters.

Note 27 of the Annual Report includes a detailed description of existing remuneration arrangements
for Group Management, including ﬁ xed and variable compensation, long-term incentive programs
and other beneﬁ ts.

Electrolux has a clear strategy to deliver proﬁ table growth and create
shareholder value. A prerequisite for the successful implementation
of the Company’s business strategy and safeguarding of its long-
term interests, including its sustainability, is that the Company is able
to recruit and retain qualiﬁ ed personnel. To this end, it is necessary
that the Company oﬀ ers competitive remuneration in relation to the
country or region of employment of each Group Management

may be duly adjusted for compliance with mandatory rules or estab-
lished local practice, taking into account, to the extent possible, the
overall purpose of these guidelines.

Fixed compensation
The Annual Base Salary (’ABS’) shall be competitive relative to
the relevant market and reﬂ ect the scope of the job responsibili-
ties. Salary levels shall be reviewed periodically (usually annually)
to ensure continued competitiveness and to recognize individual
performance.

Variable compensation
Variable compensation consists of both short-term and long-term
incentives. Long-term incentives consist of long-term share-related
incentive programs (’LTI programs’). Such programs are resolved
upon by the General Meeting and are therefore excluded from these
guidelines. Each year, the Board of Directors will evaluate whether
or not an LTI program shall be proposed to the General Meeting.
LTI programs shall be distinctly linked to the business strategy and
shall always be designed with the aim to further enhance the com-
mon interest of participating employees and Electrolux shareholders
of a good long-term development for Electrolux.
For more infor-
mation regarding these programs, including the criteria which the
outcome depend on, please see the Remuneration report at
www.electroluxgroup/en/remuneration-report-2022.

Following the ‘pay for performance’ principle, variable compen-
sation shall represent a signiﬁ cant portion of the total compensation
opportunity for Group Management. Variable compensation shall
always be measured against pre-deﬁ ned targets and have a maxi-
mum above which no payout shall be made.

Variable compensation shall mainly relate to ﬁ nancial perfor-
mance targets. Non-ﬁ nancial targets may also be used in order to

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Electrolux Annual Report 2022

strengthen the focus on delivering on the Company’s business strat-
egy and long-term interests, including its sustainability. The targets
shall be speciﬁ c, clear, measurable and time bound and be deter-
mined by the Board of Directors.

Short Term Incentive (STI)
Members of the Group Management shall participate in an STI plan
under which they may receive variable compensation. The objec-
tives in the STI plan shall mainly be ﬁ nancial and the measurement
period shall be one year. The objectives shall mainly be set based
on ﬁ nancial performance of the Group and, for the business area
heads, of the business area for which the Group Management
member is responsible, such as proﬁ t, ﬁ nancial eﬃ ciency and sales.
Financial objectives will comprise at least 80% of the weighting.
Non-ﬁ nancial objectives may be related to sustainability, customer
satisfaction, quality or company culture.

To which extent the criteria for awarding variable cash remu-
neration has been satisﬁ ed shall be determined by the People
Committee when the measurement period has ended. For ﬁ nancial
objectives, the evaluation shall be based on the annual ﬁ nancial
performance in accordance with the most recent interim report for
the fourth quarter made public by the Company.

The maximum STI entitlements shall be dependent on job position

and may amount to a maximum of 100% of ABS. Reﬂ ecting current
market conditions, the STI entitlement for Group Management mem-
bers employed in the U.S. may amount to a maximum of 150% of ABS.

Extraordinary arrangements
Additional variable compensation may be approved in extraordi-
nary circumstances, under the conditions that such extraordinary
arrangement is made for recruitment or retention purposes, is
agreed on an individual basis, does not exceed three (3) times the
ABS and is earned and/or paid out in installments over a minimum
period of two (2) years. Such additional variable remuneration may
also be paid on an individual level for extraordinary performance
beyond the individual’s ordinary tasks and shall in these situations
not exceed 30% of the ABS and be paid in one installment.

Right to reclaim variable remuneration
Terms and conditions for variable remuneration should be designed
to enable the Board, under exceptional ﬁ nancial circumstances,
to limit or cancel payments of variable remuneration provided that
such actions are deemed reasonable (malus). The Board shall also
have the possibility, under applicable law or contractual provisions

and subject to the restrictions that may apply under law or contract,
to in whole or in part reclaim variable remuneration paid on incor-
rect grounds (claw-back).

Pension and beneﬁ ts
Old age and survivor’s pension, disability beneﬁ ts and healthcare
beneﬁ ts shall be designed to reﬂ ect home country practices and
requirements. When possible, pension plans shall be based on
deﬁ ned contribution. In individual cases, depending on provisions in
collective agreements, tax and/or social security legislation to which
the individual is subject, other schemes and mechanisms for pension
beneﬁ ts may be approved. Deﬁ ned pension contributions shall not
exceed 40% of the ABS unless the entitlement is higher under appli-
cable collective agreements.

Other beneﬁ ts, such as company cars and housing, may be pro-

vided on an individual level or to the entire Group Management.
Costs relating to such beneﬁ ts may amount to not more than 20% of
the ABS. Members of the Group Management who are expatriates,
may receive additional remuneration and other beneﬁ ts to the extent
reasonable in light of the special circumstances associated with the
expatriate arrangement. Such beneﬁ ts shall be determined in line
with the Group’s Directive on International Assignments and may for
example include relocation costs, housing, tuition fees, home travel,
tax support and tax equalization.

Notice of termination and severance pay
The notice period shall be twelve months if Electrolux takes
the initiative to terminate the employment and six months if the
Group Management member takes the initiative to terminate the
employment.

In individual cases, contractual severance pay may be approved

in addition to the notice periods. Contractual severance pay may
only be payable upon Electrolux termination of the employment
arrangement or where a Group Management member gives notice
as the result of an important change in the working situation,
because of which he or she can no longer perform to standard. This
may be the case in e.g. the event of a substantial change in own-
ership of Electrolux in combination with a change in reporting line
and/or job scope.

Contractual severance pay may for the individual include the

continuation of the ABS for a period of up to twelve months following
termination of the employment agreement; no other beneﬁ ts shall
be included. These payments shall be reduced with the equivalent
value of any income that the individual earns during that period

of up to twelve months from other sources of income, either from
employment or from other business activities.

In addition to the above, compensation for any non-compete
undertaking may be awarded. Such compensation shall be based
on the ABS at the time of notice of termination of the employment,
unless otherwise stipulated by mandatory collective agreement
provisions, and be awarded over the period for which the non-
compete clause applies, which should not exceed twelve months
after termination of the employment. The compensation shall be
reduced by an amount corresponding to any income that the person
receives from other sources of income, either from employment or
from other business activities.

Salary and employment conditions for employees
In the preparation of the Board of Directors’ proposal for these
remuneration guidelines, salary and employment conditions for
employees of the Company have been taken into account by
including information on the employees’ total income, the compo-
nents of the remuneration and increase and growth rate over time,
in the People Committee’s and the Board of Directors’ basis of
decision when evaluating whether the guidelines and the limitations
set out herein are reasonable.

Consultancy fees
If a member of the Board of Directors (including through a whol-
ly-owned subsidiary) should carry out services to Electrolux in
addition to the board assignment, speciﬁ c fees for this can be paid
out (consultancy fees), provided that such services contribute to the
implementation of Electrolux business strategy and the safeguarding
of Electrolux long-term interests, including its sustainability. Such
consultancy fee may for each member of the Board of Directors not
exceed the annual remuneration for the board assignment. The fee
shall be in line with market practice.

Deviations from the guidelines
The Board of Directors may temporarily resolve to deviate from the
guidelines, in whole or in part, if in a speciﬁ c case there is special
cause for the deviation and a deviation is necessary to serve the
Company’s long-term interests, including its sustainability, or to
ensure the Company’s ﬁ nancial viability. The People Committee’s
tasks include preparing the Board of Directors’ resolutions in remu-
neration related matters. This includes any resolutions to deviate
from the guidelines.

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Additional information

Electrolux Annual Report 2022

Events after year-end

January 11. Electrolux announced loss for the fourth quarter 2022
Electrolux announced that operating income in the fourth quarter
of 2022 was estimated to be approximately SEK -2.0bn (0.9), including
non-recurring items of SEK -1.4bn (-0.7).

February 1. Electrolux to discontinue production at Nyíregyháza
factory in Hungary
Electrolux has decided to discontinue production at the Nyíregyháza
factory in Hungary from the beginning of 2024. The company will
take a restructuring charge of approximately SEK 550m which will
be reported as a non-recurring item aﬀ ecting operating income
for Business Area Europe in the ﬁ rst quarter of 2023.

The decision follows a review of production capacity needs includ-

ing an investigation into the competitiveness of the Nyíregyháza
factory, which employs around 650 people and manufactures
refrigeration products. The strategic direction is to optimize the
refrigeration production footprint from a cost perspective through
both outsourcing and own production leveraging Group scale.

The decision means that remaining investments in refrigeration

products that are part of the earlier communicated global re-
engineering investments of SEK 8bn, which started in 2018, will be

revised and redirected in line with the strategic direction
of Electrolux.

Electrolux is exploring possibilities to divest the factory in
Nyíregyháza and is committed to collaborating with relevant
authorities and stakeholders to support its employees in the
best possible way during this phase.

The cash ﬂ ow impact is estimated to be approximately
SEK 300m, mainly in 2024-2025. The ﬁ nal operating income
and cash ﬂ ow eﬀ ects will be determined by the exchange rate
on the relevant recording dates.

February 9. Electrolux Nomination Committee proposes
re-election of board members
In preparation for the Electrolux Annual General Meeting on March 29,
Electrolux Nomination Committee has decided to propose the
re-election of all board members. Staﬀ an Bohman is proposed to
be re-elected as Chairman of the Board of Directors, and Petra
Hedengran, Henrik Henriksson, Ulla Litzén, Karin Overbeck, Fredrik
Persson, David Porter and Jonas Samuelson as Board Members.

For more information, visit www.electroluxgroup.com

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Electrolux Annual Report 2022

Risk management

Overview and governance

Active risk management is essential for Electrolux to drive successful
operations. Electrolux continuously monitors its identiﬁ ed key risks as
well as new and evolving risks, aiming to respond ﬂ exibly to internal
or external changes.

The Group’s risk management approach follows a decentralized
structure, where all business areas are responsible for their risk man-
agement. However, the Board of Directors is ultimately responsible
for Electrolux risk management. In addition to the business areas, the
Group has established internal bodies that manage risk exposures
on a regular basis. Examples of internal bodies are the Enterprise
Risk Management (ERM) Board, the Ethics & Human Rights Steering
Group, the Audit Board and the Tax Board. Sustainability risks are
also reported to the Sustainability Board led by the CEO, tasked
with assessing priorities, monitoring progress and evaluating risks.
A number of Group functions are accountable for identifying and
managing non-ﬁ nancial risks in their area of responsibility. Risks are
reported to Group Management and fed into the materiality process.

Insurance and loss prevention
Electrolux transfers part of its risks via tailored insurance programs.
Insurable risks are continuously evaluated and monitored by the
ERM Board. The Group also owns two captives to ensure customized
insurance solutions and costs eﬃ ciencies.

ERM Board

Group Risk Management

Europe

North America

Latin America

Asia Paciﬁ c,
Middle East
and Africa

Electrolux loss prevention strategy is also widely developed, to
ensure that the Group assets have the right level of protection
against risks such as natural hazards, which could lead to property
losses and business interruption. The Group has established loss pre-
vention procedures and standards to be applied by each Electrolux
site. Business continuity plans are also elaborated and regularly
reviewed to ensure successful responses to disruptive events related
to natural hazards. Annual risk surveys and visits are performed, and
a consolidation of the results is reported to the ERM Board.

ERM as part of the Group’s risk management
Electrolux has implemented an Enterprise Risk Management program
which covers Electrolux business areas as well as global functions.
It is overseen by Group Management and the ERM Board, which is
also responsible for securing appropriate insurance coverage for
insurable risks and assesses and facilitates the prioritization of the
Group risks.

The ERM framework includes processes aimed to identify and miti-
gate as well as communicate and report risks with a special focus on
key risks that can signiﬁ cantly aﬀ ect the business, including consid-
eration of environmental, social and governance matters. Electrolux
follows a risk mapping process which is a management tool for
formal collection and incorporation of risk information into decision
making and governance processes. The risk mappings are therefore
a key part of Electrolux ERM and help to increase the understanding
that risk management is a critical factor for decision making and for
driving value. The core of the risk mapping process is to identify and
evaluate existing and emerging risks, thus enabling the possibility of
leveraging risk and risk management options that extract value.

Risks are categorized in accordance with Electrolux Group Risk

Universe, which includes the following risk categories: strategic,
external and internal risks. Strategic risks are risks that can jeop-
ardize the execution of the Group’s strategy and are impacted by
external factors such as industry shifts, macro economic devel-
opments or political instabilities. External risks consist of natural
hazards, geopolitical risks, market risks or regulations, which can
negatively impact the Group’s performance. Internal risks mainly

ERM Reporting

December: ERM Board
Speciﬁ c topic discussed, i.e.
update on key risks.

urth Q u a rt e

o
F

i
r

February:
BA leadership
ERM status, risks and
mitigation actions
reviewed per BA/
Group Function -
follow up workshop
facilitated by Group
Risk Management.

April: BA Board
Integration of BA key
risks and mitigation
actlons in the strategy
plan discussion.

First Q

n d Q uarter

September: BA Board
ERM direction and
actions for next year
decided.

rter

S e

July: GMM
ERM status, risks and mit-
igatlon actions for next
year presented and ERM
process re-evaluated.

June: ERM Board
ERM status, risks and
mitigation actions
consolidated for Group.

consist of operational risks such as sustainability risks, cyber security
risks, supply chain risks and talent retention risks.

Electrolux also monitors emerging risks. Such risks can either

develop from macro-level changes such as global warming,
consumer behavior or the introduction of AI – artiﬁ cial intelligence,
or from risks that are more local (resulting from industry/sector
prospects and trends etc.).

The Group’s risk appetite is based on the impact on its strategy
that a risk would have if it materializes. Key risks are linked to action
plans to close risk management gaps and follow up how risks are
evolving after implementation of risk reducing measures. Risk owner-
ship for critical risks is assigned to business area executives or indi-
viduals formally appointed to work with speciﬁ c risks. The approach
ultimately supports a risk culture that encourages engagement and
accountability within the organization.

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Electrolux Annual Report 2022

Key risks for the Group

Electrolux identiﬁ ed strategic, external and internal key risks are
presented below. Financial risks are presented in more detail in Note
2, Financial risk management. Climate-related risks are discussed in
more detail in the section on Climate Risk Disclosures.

Major shifts in the industry
As the society is becoming more digital, consumer behavior
changes, leading to structural shifts in many industries, including
consumer goods. These shifts have accelerated as a consequence
of the coronavirus pandemic. Electrolux sees many opportunities
deriving from these developments but also prepares for risks. One
potential emerging risk is that the company fails to reach strategic
goals due to a lack of business agility and an inability to anticipate
external developments. The Group is carefully monitoring the evolv-
ing competitive landscape including new operators and business
models, changes in alliances and increased competition.

Innovation capability
Electrolux ability to invest in growth and innovation, including new
markets and segments, is crucial for its strategy. Not executing on
the Group’s strategic priorities in a timely manner may aﬀ ect the
Group’s delivery of sustainable consumer experience innovation
and proﬁ table growth. Therefore, portfolio management is essential
for Electrolux, ensuring the right allocation of resources for relevant
innovation in the product and service categories.

Digital transformation
Digital transformation through automation, modularization and dig-
ital manufacturing is part of Electrolux ambition to drive operational
excellence. It is crucial for the Group to execute on its re-engineering
initiative within operations to adapt to the rapidly changing industry
and consumer needs and to continue to be cost eﬃ cient. An inability
to follow through on the initiative may lead to lower performance,
delays or higher costs. Digitalization and automation in manufac-
turing and supply chain processes also result in an emerging risk
related to the inability to attract and train personnel for the new skills
required. Electrolux therefore closely monitors its re-engineering ini-
tiative, continuously evaluates its impact on the business and reﬁ nes
its recruitment processes and training programs.

Geopolitical risks
Electrolux closely monitors events which may have negative impact
on the macroeconomic or geopolitical factors aﬀ ecting its markets.
The developments may lead to economic downturn, aﬀ ect access

to markets and changed consumer behaviors impacting the Group’s
sales negatively. Political instability remains high, like Brexit in
Europe, Taiwan in Asia, the trade war between the U.S. and China,
the tensions in the South China Sea or the conﬂ ict between Russia
and Ukraine. Electrolux is closely monitoring the development
related to the Russia’s invasion of Ukraine, with the security and
safety of its employees and their families in priority. Procedures
intended to avoid breach of sanctions and other restrictions
imposed on Russia and Belarus are in place. Electrolux is continu-
ously assessing the risk in Ukraine to continue or interrupt its limited
sales and production in its Ukrainian factory located in the western
part of the country. The Group also decided to discontinue its sales
operations and business in Russia. As a consequence of the war,
inﬂ ation and energy prices increase will have a consequence on
consumer’s behavior, and on the production costs. To mitigate
the risk, Electrolux might review the production plans and product
pricing. Finally, disruption of supply of gas from Russia to the Group’s
European factories has also been a higher risk during 2022. This
could negatively impact Electrolux proﬁ tability. Contingency plans
with alternative energy have been evaluated and implemented
where possible.

Instabilities, conﬂ icts and emerging new geopolitical areas of
concern can also disrupt manufacturing and supply chain systems,
aﬀ ect Electrolux costs for production, energy, raw material and
transportation as well as currency exchange rate development,
which in turn aﬀ ect the ﬁ nancial result of the Group. Electrolux
continuously works on business continuity plans based on possible
consequences of such events.

Regulatory risks
Electrolux is subject to a vast range of regulations, laws and industry
standards. As the regulatory landscape evolves, it is important to
monitor and mitigate risks related to legal and product regulatory
compliance, antitrust, trade rules, supply chain due diligence,
contractual risks, protection of IP/patents, conﬁ dential information,
personal data protection, insider information etc. Non-compliance
could lead to sanctions, ﬁ nes, higher costs or inability to continue
manufacturing some products. To mitigate these risks, Electrolux has
inhouse lawyers, in all business areas as well as centrally, to monitor
regulatory changes and to attend to compliance matters. Regular
training for employees is among the most important actions.

In addition, the development regarding sustainability can result
in new regulatory requirements. They could impact product devel-
opment, supply chains, operations and sales. Carbon taxes are

expected to have an impact on energy intensive industries such as
power generation, transport, steel, aluminum, and plastics produc-
ers. Finished goods could also be directly impacted through carbon
import duties, such as the European Union ‘carbon border adjust-
ment mechanism’. To mitigate these risks, Electrolux drives resource
and energy eﬃ ciency throughout the value chain. The Group aims to
be fully supplied with electricity generated from renewable sources.
That is not only reducing carbon emission, but also reducing the risk
from carbon related taxes.

Market risks
A ﬁ nancial crisis and an economic downturn may aﬀ ect consumers’
purchasing power and behavior, resulting in a lower market demand
that could impact Electrolux sales. Major changes in society, resulting
from coronavirus pandemic and also from the war in Ukraine, led
to emerging risks such as changes in consumer behavior and their
spending, especially in Europe and in North America where the
majority of Electrolux products are sold. To mitigate these risks,
Electrolux closely follows market and sales developments and
changes in consumer behavior. Electrolux also focuses on an agile
manufacturing set-up for fast adaptation to changes in demand. In
times of strong market demand, it is also essential that Electrolux can
beneﬁ t from its global scale by delivering new innovative products
and outstanding consumer experiences with a high speed to market.
Electrolux markets are also subject to price competition. This is
particularly evident in the low-cost segments and in product cate-
gories with signiﬁ cant overcapacity. In markets with high inﬂ ation
combined with currency rate ﬂ uctuations, Electrolux has a better
possibility to carry out price increases to oﬀ set potential negative
eﬀ ects.

Raw material and logistics impact
Fluctuations in commodity prices impact the Group’s input costs and,
therefore, its proﬁ tability. Materials account for a large share of the
Group’s costs. Electrolux purchases raw materials and components
for approximately SEK 54bn, of which approximately SEK 26bn
referred to raw materials in 2022. Logistics accounted for approx-
imately 7% of net sales in 2022. In order to mitigate increases in
prices for raw material, components and logistics, Electrolux raises
prices of its products, improves cost eﬃ ciency and negotiates more
favorable purchasing contracts for commodities such as steel and
chemicals.

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Change +/–

Pre-tax earnings
impact –/+, SEKm

Sensitivity analysis year-end 2022

Risk

Raw materials1)

Carbon Steel

Stainless Steel

Plastics

Currency2) and interest rates

USD to EUR

USD to CAD

EUR to GBP

EUR to CHF

USD to BRL

USD to AUD

THB to AUD

MXN to USD

USD to CLP

USD to VND
Translation exposure to SEK3)

10%

Interest rate

1 percentage point

1) Changes in raw materials refer to Electrolux prices and contracts, which may diﬀ er from market

prices.

2) Transactional exposure. Translation eﬀ ects not included.
3) Assuming the Swedish krona appreciates/depreciates against all other currencies.

Raw materials exposure 2022

Carbon steel, 36%
Plastics, 23%
Stainless steel, 14%
Copper and aluminum, 10%
Other, 17%

900

400

600

540

420

290

280

270

170

130

110

130

Ethics related compliance risks
Electrolux is exposed to a broad range of ethics and sustainability
related factors such as human rights, including privacy aspects,
employment conditions and corruption. Violation of anti-corruption
legislation could lead to large ﬁ nes or administrative, civil or criminal
sanctions. Additionally, violations of human rights and ethics related
norms could impact the Group’s brands or the corporate reputation
negatively. To mitigate these risks, Electrolux has extensive internal
governance procedures and policies and conducts training for
employees.

Key people and talents
Evolving industry trends and new technologies require new talents
in key areas. The inability to attract competences for the future, or a
lack of strong succession planning, may impact Electrolux position
in the market negatively. An emerging risk for Electrolux is also the
inability to attract talents, by not being able to accommodate their
post-pandemic work preferences. This could have a negative impact
on Electrolux innovation strategy. To mitigate this risk, Electrolux
constantly works with the company values and uses communication
channels like social media to share those directly or via existing
employees. The Group also builds and continuously reviews its talent
pipeline and adapt its work conditions.

The safety and wellbeing of its employees is also crucial for the
Group. Electrolux continues to monitor the eﬀ ects of the coronavirus
on its employees. One of the mitigation actions has been to maintain
the agile way of working.

Supply chain risks
Electrolux is heavily dependent on deliveries of raw material and
components to its factories and a functioning global logistics sys-
tem that can deliver products from the supply and manufacturing
systems to its customers and consumers. The availability of many
components depends on suppliers. Shortages of electronic and
other components including disturbances in logistical systems
might aﬀ ect Electrolux ability to produce, cost for production, raw
material and exchange rate development, which in return aﬀ ects
the Group’s ﬁ nancial result and market shares negatively. Electrolux
has experienced temporary disruptions in some of its operations,
delays in delivery of components and production slowdowns. Also
disturbances aﬀ ecting the ability of Electrolux suppliers of ﬁ nished
goods to manufacture and deliver products might aﬀ ect the Group’s
ﬁ nancial result and market shares negatively in case of shortfalls in
delivery or quality issues. A global pandemic like the coronavirus,
natural catastrophes, political unrest or large ﬁ res impact global
suppliers and the supply chain. This causes manufacturing and deliv-
ery disruptions which may impact customers signiﬁ cantly as well as
increase costs associated with layoﬀ s, manufacturing adaptation,
etc. Electrolux builds and adapts its business continuity plans to
address these key risks and also collaborates with selected large
suppliers to monitor some of their major risks.

IT and cyber risks
The digital transformation of the global economy, and of Electrolux
more speciﬁ cally, leads to great opportunities. As Electrolux uses
technology to speed up the information exchange, it also creates
greater exposure. Electrolux continuously prepares for cyber attacks
by assessing its cyber risk proﬁ le, remediates where recommended
and proactively manages its defense. The new way of working of
many of Electrolux employees, customers and suppliers, as a result
of the coronaviruspandemic, increased the cyber risks. Cyber security
control failures have become an emerging risk closely monitored
by Electrolux. Speciﬁ c trainings have been performed to improve
awareness. IT failures, for example in key applications or hardware,
may also have signiﬁ cant impacts on delivery, production, sales
and other critical systems and functions. Electrolux IT department
constantly monitors these risks to protect Electrolux systems and
information.

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Sustainability risks

Electrolux has deﬁ ned a number of sustainability goals. The ability
to achieve these environmental, social and governance (ESG) goals
are subject to a number of risks. Electrolux ability to meet its ESG
goals and accurately and transparently report on such progress
presents increasing risks from operational, ﬁ nancial, legal and other
perspectives. The growing concern for ESG issues and an increasing
interest from legislators to regulate companies responsibilities for
ESG issues in their supply chains, leads to added legal exposure and
may ultimately negatively aﬀ ect Electrolux ability to sell products.
Electrolux is therefore closely monitoring these risks.

Environment
The main environmental risks are related to regulatory and customer
requirements. Not meeting requirements could result in ﬁ nes or lim-
itations in production permits, reduced sales or product withdrawal.
Electrolux has processes in place to mitigate these risks, including
ISO management systems, internal audits, a Responsible Sourcing
program, and targets in the product development plans. The Group’s
programs to reduce operational resource consumption and to intro-
duce more recycled materials in products are saving costs.

Climate-related risks
Tackling climate change by reducing greenhouse gas emissions is
one of the most urgent challenges facing society. According to the
latest Intergovernmental Panel on Climate Change (IPCC) Report
released in August 2021 (IPCC Sixth Assessment Report), human
activity is already changing the climate in unprecedented and
sometimes irreversible ways. The report calls for strong and sus-
tained reductions in emissions of carbon dioxide (CO2) and other
greenhouse gases to limit climate change.

As product energy use is responsible for around 85% of Electrolux

climate impact, product eﬃ ciency is where Electrolux can make its
greatest contribution to tackling climate change. Electrolux is reduc-
ing CO2 emissions from its manufacturing facilities, product transport,
and the energy consumed during their use.

To increase the internal focus on actions to reduce climate

change, a performance target linked to the Group’s Science Based
Target, within the long-term share-related incentive programs for
senior managers, was introduced in 2021.

The ERM includes climate-related risks in line with the Climate
Read more on pages 51-55).

Risk Disclosure (

Electrolux has a thorough risk mapping and decision-making process
that manages all risks for the Group. As described in the Climate Risk
Disclosure, the two diﬀ erent climate scenarios result in a variety of
risks and opportunities for Electrolux throughout its value chain as
described below.

Primary rapid transition risks
Increased costs related to designing resource-eﬃ cient products
– Electrolux has product development roadmaps with the objective
to meet forthcoming energy labelling standards, such as the EU
new labelling standards and stricter minimum energy performance
standards (MEPS) to be implemented between 2021 and 2023.

Carbon taxes – Electrolux is well prepared to meet the risks of

higher carbon taxes by driving resource and energy eﬃ ciency
throughout the value chain. Carbon taxes on ﬁ nished goods could
also increase carbon import duties, such as the EU ‘ carbon border
adjustment mechanism’.

Other transition risks have been identiﬁ ed, mostly related to the
increased reporting requirements as well as the potential change
of consumer behavior. These scenarios are already integrated in
Electrolux ERM risks.

Primary acute and chronic physical risks
Electrolux operations – Electrolux well established loss prevention
program called Blue Risk, have not found that Electrolux factories
have signiﬁ cant risks related to greater acute and chronic physical
risks due to more frequent and severe weather systems and chang-
ing climate conditions. Adequate insurances are also in place to
mitigate this risk. However, more detailed modelling to better identify
the long-term eﬀ ects will be conducted, based on reputable external
sources.

Electrolux suppliers – Signiﬁ cant risks exist among Electrolux
suppliers. Increased frequency of extreme weather events such as
ﬂ oods, hurricanes or temperature rises could cause disruption to
Electrolux network. The company has a large amount of ﬂ exibility in
its supply chain, which will adapt to the changing conditions to meet
market needs as more resilient suppliers are likely to survive and
thrive. Insurance is also purchased to mitigate the risk.

Transport systems – The global logistical systems Electrolux relies

on for the movement of its raw materials, components and ﬁ nished
goods are thought to be resilient to acute and chronic physical risks

as alternative logistical arrangements are likely found. More investi-
gation is required to mitigate the risk.

Social
Electrolux reputation is built on trust, which means that all actions
and decisions must be governed by principles of ethics, integrity,
and respect for people and care for the environment – no matter
where the Group operates in the world. The key human rights risk
areas include freedom of association, discrimination and working
conditions. Other risk areas are labour rights at suppliers and
corruption.

The Electrolux Code of Conduct contains the Group’s Human
Rights policy statement, ﬁ rmly stating that human rights shall be
respected. All employees are required to do the Code of Conduct
e-learning as part of onboarding and recurring campaigns.

Electrolux monitors performance and manages risks through inter-

nal and external audits, yearly audits for manufacturing units, local
human rights assessments, education, the Ethics Helpline, manage-
ment-labor dialogue, as well as health and safety committees. Risks
in the supply chain are addressed through audits and training eﬀ orts
as part of the Responsible Sourcing program and the Conﬂ ict Miner-
als program.

Electrolux conducts human rights impact assessments at both

Group and local level, in line with the UN Guiding Principles on
Business and Human Rights. Five issues constitute the Group’s salient
human rights issues. The methodology for the assessments has been
aligned to the ERM overall process in 2022. It focuses on identifying
the risk of harming people, as a direct or indirect result of Electrolux
operations. An assessment was made in South Africa in early 2022
and China was underway under year-end.

Corruption poses a threat to sustainable economic and social
development around the world. Corruption could also have severe
negative impacts for the Group by obstructing business growth,
increasing costs and imposing serious legal and reputational risks.
Operating all over the world, including countries in emerging mar-
kets, Electrolux is exposed to risks related to corruption and bribery.
These risks may arise in several phases of the value chain, such as
in purchasing and sales. Electrolux has zero tolerance of corruption
and works continuously to raise awareness among employees in
order to minimize the risk for corruption. Measures against corrup-
tion are included in the Anti-Corruption Policy, which all employees

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are required to follow. This policy provides guidance to employees
on how to do the right thing and explains which actions constitute
unlawful and inappropriate behavior.

Employees can report ethical misconduct through a whistleblower

system. In 2022, 584 (411) reports were received, out of which 12 (11)
reports in the area of business integrity were investigated.

Impacts throughout the value chain
Finally, a value chain perspective helps Electrolux identify how it can
best manage its impacts and create maximal value. This approach
makes it easier to identify opportunities, minimize or enhance
impacts, and understand boundaries. It also helps the company
to understand how its actions and impacts are interrelated. It also
identiﬁ es the degree of Electrolux inﬂ uence along the value chain,
and the value created for the company and the society. The follow-
ing table identiﬁ es the Group’s key sustainability risks and Impacts
throughout the value chain, and how they are managed.

7. End-of-life

1. Product
development

6. Consumer
use

5. Sales

2. Suppliers

3. Electrolux
– operations

4. Transport

1. Product development
Close collaboration between Design, Marketing
and R&D enables new products to oﬀ er best-in-
class consumer experiences.

The ambition is to develop solutions with lead-
ing environmental performance. Timely innovation
is key to meeting forthcoming legal requirements
and market demands. The focus is on energy,
water and material eﬃ ciency, as well as chemical
use in appliances.

2. Suppliers
Electrolux relies on thousands of ﬁ rst-tier suppli-
ers, many in emerging markets. The focus is on
safeguarding Electrolux standards and devel-
oping supplier capacity to improve sustainability
performance.

Electrolux also requires all its suppliers to
comply with the Electrolux Supplier Workplace
Standard and the Workplace Directive. These
requirements are the same as Electrolux internal
policies.

Risks

How impacts are managed

Ability to inﬂ uence

Generating value

• Not meeting regulatory or market
requirements.
• Not meeting consumer expectations.
• Not adapting to a low-carbon economy.

High

• Continuously improve product eﬃ ciency.
• Increase use of recycled materials.
• Eliminate harmful materials.
• Integrate future requirements into
product development plans.
• Participate in the UN’s United for
Eﬃ ciency program.

Products with leading environmental
performance deliver consumer value in line
with the business strategy, while reducing
negative impact on the environment.

• Connections to social, ethical and
human rights violations.
• Severe weather conditions caused by
climate change could negatively aﬀ ect
supply.
• Business interruptions due to unethical
business practices in the supply chain.

• Apply a risk-based approach to
identify suppliers in scope.
• Assess the climate impact of key
suppliers.
• Conduct auditing to safeguard
standards.
• Hold training and drive improvement
programs.

Medium

Enforcing Electrolux standards supports
human rights and raises environmental, labor
and economic standards, particularly in
emerging markets. This also builds trust and
a resilient supply chain, while reducing
business and reputational risks.

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Risks

How impacts are managed

Ability to inﬂ uence

Generating value

3. Electrolux – operations
Electrolux has 34 ﬁ nished goods factories and 6
factories making components and accessories,
and sales in approximately 120 markets, with
approximately 51,000 employees. The main focus
areas are to reduce the environmental footprint,
maintain high ethical standards and working
conditions, as well as to have a positive impact
in local communities.

• Disruptions due to emissions and
discharges as a result of incidents.
• Disruptions caused by severe weather
as a result of climate change.
• Impact due to social, ethical and human
rights violations.
• Corruption related to weak governance.

High

• Implement and maintain systems for
environment, resource eﬃ ciency, and
health and safety.
• Governance systems and training to
enforce sustain ability policies.
• Assess the climate impact on operations.
• Conduct human rights impact assess-
ments. Support local community
programs.

Electrolux creates community beneﬁ t by
providing jobs, knowledge transfer and
economic opportunities. Positive employee
relationships promote competence develop-
ment, employee wellbeing and job
satisfaction. Local community engagement
creates good stakeholder relations, improves
employee pride and enhances brand
reputation.

4. Transport
Addressing transportation is part of a life-cycle
approach to the Group’s overall impacts.
Electrolux emits more CO2 transporting its goods
than it emits through the total energy used in
the Group’s operations.

The Group uses its purchasing power to
inﬂ uence the logistics industry by developing
more sustainable transport solutions in
collaboration with our logistics partners.

5. Sales
Electrolux sells approximately 60 million products
in approximately 120 markets every year, primar-
ily through retailers. Energy and performance
labeling, and sustainability communication allow
us to raise product eﬃ ciency awareness among
consumers.

• Emissions from transportation.
• Labor conditions in logistics companies.
• Disruptions in supply chain can impact
climate footprint due to shifts in mode
of transportation.
• Disruptions caused by severe weather
as a result of climate change

• Failure to eﬀ ectively inform consumers
on product use.
• Not meeting consumer expectations
on product eﬃ ciency.
• Limited opportunity to inﬂ uence deci-
sion-making at the point-of-purchase.
• Failure to meet customer expectations
in areas such as anti-corruption and
labour standards.

• Implement collaborative solutions to
mitigate logistics-related impacts.
• Promote eﬃ cient modes of transport

Medium

Helping to create a more sustainable trans-
port industry strengthens the Group’s brand
reputation. Transport is included in the
Electrolux carbon target. It also supports
suppliers in their work to improve their
environmental and labor standards.

Medium

• Continuously improve product perfor-
mance and eﬃ ciency.
• Improve pre- and point of purchase
communication.
• Secure third party endorsement of prod-
ucts (such as best-in-test recognitions).
• Communicate on themes such as food
storage, reducing food waste, caring for
clothes and textiles.
• Conduct Group-wide trainings on
anti-corruption.
• Assessments and audits of Electrolux
and suppliers’ factories.

Promoting transparency and the Group’s
sustainable product oﬀ ering contributes
to retailer sustainability goals, strengthens
brands and builds customer loyalty. As
sales of the Group’s products with leading
environmental performance demonstrate,
an eﬃ cient product oﬀ ering is a proﬁ table
strategy.

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Risks

How impacts are managed

Ability to inﬂ uence

Generating value

6. Consumer use
As the main environmental impacts of Electrolux
products occur when they are used, product
energy and water eﬃ ciency is a top priority.
Greater use of connected products in the
future will help improve optimal product use.

• Not meeting expectations on product
performance.
• Consumers not using products in an
optimal way.
• Product safety.
• Data privacy for users of connected
products

• Continuously improve product
performance and eﬃ ciency.
• Prepare for increased data privacy
regulation.
• Follow the product safety governance
and procedures.
• Increase development and sales of
connected products.

Medium

7. End-of-life
Legislation on appliance recycling is being intro-
duced in more markets. On average, materials
account for approximately 7% of a product’s
life-cycle impact, and Electrolux market research
indicates that it is a top priority for consumers.

In Europe, the region with the most comprehen-

sive producer responsibility legislation, 80% of
the materials from collected end-of-life large
appliances must be recovered.

• Not meeting expectations beyond
legislation.
• Waste of resources due to a lack of
recycling.
• Illegal trade of discarded products
and recycled materials

Low

• Establish a more circular business by
using recycled materials.
• Eliminate harmful materials to enable
higher quality recycled materials and
decrease environmental impact.
• Promote proper recycling as part of
producer responsibility

Appliances deliver social beneﬁ ts that many
take for granted – such as food preservation,
hygiene standards, freeing up time from
household chores, and facilitating equal
opportunities – factors that are particularly
signiﬁ cant in emerging markets. Providing
eﬃ cient products, raising consumer aware-
ness and increasing appliance connectivity
can help counter rising global CO2 emissions,
while reducing food waste and the wear of
clothes.

Building resource-eﬃ cient and closed-loop
systems help reduce environmental impact
and overall resource consumption. Innova-
tive designs that allow material reuse save
money and energy, and increase consumer
trust in the Electrolux brand.

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Climate risk disclosures

Governance

Strategy

Risk management

Disclose the
organization’s
governance
around climate-
related risks and
opportunities.

Disclose how
the organiza-
tion identiﬁ es,
assesses,
and manages
climate-related
risks.

Disclose the actual
and potential
impacts of climate-
related risks and
opportunities on
the organization’s
businesses, strat-
egy, and ﬁ nancial
planning where
such information
is material.

Metrics
and targets

Disclose the
metrics and
targets used
to assess and
manage relevant
climate-related
risks and oppor-
tunities where
such information
is material.

This is the third Electrolux climate report based on the Task Force
on Climate-related Financial Disclosure (TCFD) recommendations.
Assessments, ﬁ ndings and conclusions in this Climate risk disclosures
report replace earlier ones. The purpose of the report is to assess
how climate change could aﬀ ect Electrolux in the long term, but also
the role Electrolux plays in mitigating climate change. In accordance
with the TCFD recommendations, this report is based on two potential
future climate scenarios and how these could impact climate-related
risks and opportunities for Electrolux in the future. The main event
in 2022 that had an impact on this report was the 27th UN Climate
Change Conference of the Parties (COP27) in Sharm el-Sheikh,
Egypt. The IPCC Sixth Assessment Report (AR6) concluded that the
climate pledges announced at COP 27, if met in full and on time,
would be enough to hold the rise in global temperatures to 1.8 °C
by 2100.

The scenarios used for the assessment in this disclosure have
been selected to represent two possible future development paths,
where each scenario is characterized by diﬀ erent societal impacts.
For each scenario, long-term perspectives of 10 and 30 years have
been used to assess climate-related risks and possibilities based
on what the Group considers to be best available knowledge. The
climate report describes the Group’s continuous assessment of
climate-related risks and opportunities based on stakeholder
expectations, scientiﬁ c ﬁ ndings, regulatory requirements and frame-
works for company reporting. Electrolux is committed to annually
publish a climate report based on the TCFD recommendations and
the company plans to further develop its reporting going forward, as
climate science and more extensive analyses evolve. This report is
structured around the four TCFD elements describing how organiza-
tions operate: governance, strategy, risk management, and metrics
and targets. All these elements are connected to climate-related
risks and opportunities.

Electrolux has governance structures to eﬀ ectively manage
climate-related risks and opportunities.

The Electrolux climate change strategy is managed by Group
Sustainability (GS) in close cooperation with other Group functions
and the company’s business areas. The Head of GS reports to the
Head of Consumer Experience & Product Lines (CXO) and has reg-
ular meetings with the Sustainability Board and Group Management.
The Electrolux Sustainability Board, chaired by the CEO, is a forum
to raise sustainability topics and review the implementation of the
diﬀ erent sustainability programs. Other members of the Sustainability
Board are the Chief Financial Oﬃ cer (CFO), Head of Operations,
CXO, Chief Commercial Oﬃ cer, CHRO & Communications, General
Counsel and Head of GS. The Sustainability Board gives recommen-
dations to Electrolux Group Management, which makes decisions
about sustainability and climate-related issues. The CEO reports
climate-related progress to the Board, which oversees the overall
company strategy.

Group Risk Management manages the Electrolux Enterprise Risk
Management (ERM) program. This program is governed by the ERM
board, which consists of the CEO, CFO, General Counsel, VP Group
Treasury, Head of Group Internal Audit, and Head of Group Risk
Management. The ERM program manages risks related to direct
climate impacts and covers both identiﬁ ed and emerging risks,
and with a time-horizon of around three years. Electrolux includes
physical climate risks in the ERM and reports the outcome to the
Sustainability Board.

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Strategy

Climate change is a core element of the Electrolux Group sustain-
ability framework, which includes the company’s Climate Goals,
various climate-related activities and work with its stakeholders.

For the Better 2030
The Group’s sustainability framework – For the Better 2030 – consists
of Better Company, Better Solutions and Better Living. It covers all
the lifecycle stages of the company’s products – from raw materials
and manufacturing to product use and how Electrolux can contribute
to more sustainable living for consumers around the world.

For the Better 2030 includes the company’s work with climate
change and its Climate Goals through the Electrolux Climate Neu-
trality Roadmap (see illustration). Climate-related topics in the sus-
tainability strategy include the Goal “Be climate neutral and drive
clean, resource-eﬃ cient operations” (Scope 1 and 2 emissions) and
the Goal “Lead in energy- and resource-eﬃ cient solutions” (Scope
3 emissions). Scope 1 and 3 are also addressed through the Goal to
“Eliminate harmful materials”, by phasing out hydroﬂ uorocarbons
(HFCs).

See the Electrolux Annual Report 2022, Statutory Sustainability

Report, on page 56.

The Electrolux Climate Neutrality Roadmap
The company’s long-term ambition is to ensure that its entire value
chain is climate neutral by 2050. This supports the United Nations
Global Compact – Business Ambition for 1.5° C, which Electrolux
President and CEO Jonas Samuelson has signed.

Toward 2030, the company’s targets are:

• Science Based Target – aims to reduce company Scope 1 and 2
emissions by 80% between 2015 and 2025, and the absolute Scope
3 emissions from the use of sold products by 25% during the same
time period.
• For the Better 2030 sustainability framework target – aims
to achieve climate neutral operations by 2030 (Scope 1 and 2
emissions).

The Electrolux climate neutrality roadmap

Targets:

80%
25%

reduction in carbon emissions
in operations. Scope 1 and 21), 3)

Climate neutral
operations2)

reduction in carbon emissions in
product use. Scope 31), 3)

Climate neutral across
the value chain
This long-term ambition supports the
United Nations Global Compact Business
Ambition for 1.5° C. Scope 1, 2 and 3.

2015

2025

2030

2050

About TCFD
The international Task Force on Climate-related Financial Disclosure (TCFD) was formed in 2015 by the Financial
Stability Board and tasked with correcting the shortage of information regarding companies’ work with, and
management of, climate change. In 2017, the TCFD released climate-related ﬁ nancial disclosure recommendations
designed to help companies promote more informed investment, credit and underwriting decisions and enable
stakeholders to better understand the ﬁ nancial system’s exposure to climate-related risks.

1) Science based target (SBT)
2) Company target (Scope 1 + 2 = 0)
3) Includes contributions from energy use and

greenhouse gas fugitive emissions.

Initiatives contributing toward the company’s strategy
Electrolux has a variety of initiatives that are fundamental for driving
its climate objectives forward. These include ﬁ nancial mechanisms
and partner collaborations.

Electrolux Green Financing Framework
In 2022, Electrolux launched the Green Financing Framework,
which helps it to fund climate investments and other environmental
initiatives. This complements the existing Electrolux Green Bond
Framework that was launched in 2019 and was the ﬁ rst initiative in
the industry to fund climate investments and other environmental
initiatives.

Long-term Incentive program
To increase the internal focus on actions to reduce climate change,
a performance target linked to the Group’s Science Based Target,
within the long-term share-related incentive programs for senior
managers was implemented in 2022, in addition to the programs in
2021 and 2020.

Examples of Electrolux climate-related collaborations
United for Eﬃ ciency (U4E)
– Electrolux participates in the United Nations led initiative United for
Eﬃ ciency to support developing countries and emerging economies
in setting up eﬀ ective product performance and labelling systems to
help facilitate a complete market transformation to energy-eﬃ cient
cooling appliances. Currently, only 50% of the use phase emissions
from products sold by Electrolux are covered by product eﬃ ciency
standards.

The Cool Coalition
– The Cool Coalition was initiated by UNEP with the objective to
improve the energy eﬃ ciency and to reduce the environmental
impact of cooling appliances. Electrolux has made the commitment
to phase out or replace high-impact greenhouse gases in all appli-
ances with gases that have low global warming impact by 2023.

Green shipping
– in 2022, Electrolux made two agreements with the shipping
companies Maersk and CMA-CGM to reduce the company’s sea
transport greenhouse gas emissions by 15% during the year. With
new agreements in place, 25% of Electrolux Group’s total sea freight
was transported using the most eﬀ ective solutions for decarbonizing
currently available in the market.

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The Electrolux climate scenarios
Electrolux mainly uses two diﬀ erent climate scenarios based on
data from the International Panel on Climate Change (IPCC) and
the International Energy Agency (IEA) to assess the resilience of its
business. This includes potential medium- and long-term climate-
related risks and opportunities throughout the appliance industry
value chain.

According to the TCFD Recommendations, companies should
base their climate-related risks and opportunities on two diﬀ erent
climate scenarios. In alignment with these recommendations, the
two scenarios Electrolux uses have diﬀ erent levels of projected
emission reductions over the time horizons of 10 years and 30 years1).
They are referred to as the Rapid Transition Scenario and the
Changing Climate Scenario.

Major scenario impacts on the Electrolux value chain
The Rapid Transition and Changing Climate scenarios would both
have material impact on the entire Electrolux value chain. However,
their major impacts on the value chain would diﬀ er slightly (see the
illustration).

The Rapid Transition Scenario

The Changing Climate Scenario

This scenario would involve rapidly declining emissions in the coming decades,
mainly driven by legislation and taxes, resulting in a global average temperature
rise of between 0.3°C to 1.7°C by 2100. This pathway would require transitional
changes to achieve the UN Paris Climate Agreement, including a decline in
emissions from 2020.

This scenario would involve slowly declining emissions resulting in a temperature
increase of between 2.1°C to 3.5°C by 2100. This “intermediate” pathway would
follow the current emission path to peak in 2040 with long-term physical risks
as a result of climate change.

Key climate implications
• A mean global warming increase by 1.5 to 1.7 °C between 2046 and 2065.
• A mean sea level increase of 0.09 m to 0.19 m between 2046 and 2065.

Key climate implications
• A mean global warming increase of approximately 1.5 °C in 2030 and 2.0°C
• A mean sea level increase of between 0.09 m in 2030 and 0.20 m in 2050.

in 2050.

Implications for the appliance industry
• Stringent product energy legislation – will impact product development
• Carbon taxes – will impact suppliers, operations and sales.
• Digitalization and smart demand-side management – will impact product

and sales.

development and sales.

Implications for the appliance industry
• Greater acute physical risks due to more frequent and/or more severe weather
systems, such as hurricanes and ﬂ oods – will impact suppliers, operations and
transport in the appliance industry.

• Greater chronic physical risks from changing climate conditions, such as

droughts – will impact suppliers, operations and transport in the appliance
industry.

The climate implications in this scenario are based on the IPCC Scenario
RCP 2.6 and the IEA SDS Scenario2).

The climate implications in this scenario are based on the IPCC Scenario
RCP 4.5 and the IEA STEPS Scenario3).

1) Electrolux has based its climate scenarios and impacts on two diﬀ erent Representative Concentration Pathways (RCPs) developed by the IPCC (IPCC, 2014: Climate Change 2014: Synthesis Report).
An RCP describes a greenhouse gas (GHG) concentration trajectory resulting in diﬀ erent climate futures, and ultimately results in diﬀ erent risks and opportunities for Electrolux based on this forecast.
The Electrolux report for 2022 has been updated based on the IPCC report “AR6 Climate Change 2021: The Physical Science Basis”, presented in August 2021.

2) See the Reporting Principles on page 55 for more technical detail on the Rapid Transition Scenario.
3) See the Reporting Principles on page 55 for more technical detail on the Changing Climate Scenario.

Major impacts from the two scenarios along the value chain

Rapid Transition Scenario

Product
development

Suppliers

Electrolux
operations

Transport

Sales

Consumer use

End-of-Life

Changing Climate Scenario

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Climate risk management

Electrolux has a thorough risk mapping and decision-making
process that manages all risks for the Group. The two diﬀ erent
climate scenarios result in a variety of risks and opportunities for
Electrolux throughout its value chain.

Enterprise Risk Management
The Electrolux Enterprise Risk Management (ERM) framework and
related processes identify, mitigate, communicate and report risks
that can signiﬁ cantly aﬀ ect the business. Electrolux follows a risk
mapping process for the collection and incorporation of risk infor-
mation into decision making and governance processes. The ERM
includes climate-related risks in line with the section Climate Risk
Disclosure. Climate-related risks usually have a longer time-horizon
than other ERM risks.

Read more in the Risk section on page 44.

The Rapid Transition Scenario
As a sustainability leader in its industry, Electrolux is well-positioned
to meet the demands for stringent product energy legislation,
carbon taxes and digitalization in the near future – to continue to
create long-term shareholder value. As approximately 85% of an
appliance’s climate footprint is in its use phase, Electrolux can play
a role in meeting the need for energy eﬃ cient appliances that help
mitigate the impact of climate change.

Primary rapid transition risks
• Increased costs related to designing resource-eﬃ cient products
– Electrolux has product development roadmaps with the objective
to meet forthcoming energy labelling standards, such as the new
EU labelling standards and stricter minimum energy performance
standards (MEPS) to be fully implemented by 2023.
• Carbon taxes – Electrolux is well prepared to meet the risks of
higher carbon tax, as the Group drives resource and energy
eﬃ ciency throughout the value chain. Carbon taxes on ﬁ nished
goods could also increase carbon import duties, such as the EU
Carbon Border Adjustment Mechanism.

Opportunities
• Industrial shift to renewable energy – Electrolux is already well
on its way to carbon neutral operations by 2030 (Scope 1 and
2 emissions). Based on the projections in a study by Bloomberg
New Energy Finance¹, Electrolux will not be negatively aﬀ ected in
its operations by the shift from fossil-based to renewable electricity.
An industry shift to renewable energy could therefore provide
Electrolux with a competitive advantage.
• Product eﬃ ciency – More stringent product legislation and
higher energy prices could drive the demand for energy eﬃ cient
Electrolux products in the market. The International Monetary
Fund (IMF) has concluded that a carbon tax of USD 75 per metric
ton of CO2 would increase the average electricity price across
G20 countries by 43%.
• A growing market – The growing middle class, in particular in
Asia and Africa, will continue to expand the market for household
appliances.
• Electriﬁ cation – The IEA estimates that there is potential for
2.6 billion people to switch from wood burning stoves to using
clean cooking appliances. Electrolux can help meet this demand
for clean and eﬃ cient appliances.

The Changing Climate Scenario
In this scenario, Electrolux must adapt to a changing climate in terms
of more frequent and/or more severe weather systems and greater
chronic physical risks from changing climate conditions. Electrolux
has started to include “The Changing Climate Scenario” in its loss
prevention program, Blue Risk, to improve the resilience of its own
operations, supply chain and transport systems, and plans to make
more detailed assessments in the coming years. Action on this
insight will enable Electrolux to continue to create long-term share-
holder value.

Primary acute and chronic physical risks
• Electrolux operations – Recent internal assessments have not
concluded that Electrolux factories have signiﬁ cant risks related
to greater acute and chronic physical risks due to more frequent
and severe weather systems and changing climate conditions.
However, more detailed analyses will be conducted based on
reputable external sources, such as the IPCC:

• Acute physical risks – IPCC predicts that the scenario will result
in greater acute physical risks, such as more frequent hurricanes.
• Chronic physical risks – IPCC does not predict a signiﬁ cant
increase in chronic physical risks due to this scenario in the next
30 years, although uncertainty is high.
• Electrolux suppliers – Signiﬁ cant risks exist among Electrolux
suppliers, although the company has ﬂ exibility in its supply chain,
which will adapt to the changing conditions to meet market needs
as more resilient suppliers are likely to survive and thrive.
• Transport systems – The global logistics system Electrolux relies
on for the movement of its raw materials, components and ﬁ nished
goods are thought to be resilient to acute and chronic physical
risks as alternative logistical arrangements can be found.
However, more investigation is required.

Opportunities
• A growing market – The growing middle class, in particular in
Asia and Africa, will continue to expand the market for household
appliances.
• Consumer demand – The need for air conditioning is expected
to grow in a warmer world, particularly in Asia and Africa with a
growing middle class. Electrolux can meet this growing market
demand.
• Electriﬁ cation – The IEA estimates that there is potential for
2.6 billion people to switch from wood burning stoves to using
clean (from a carbon emission perspective) cooking appliances.
Electrolux can help meet this demand for clean and eﬃ cient
appliances.

Future development
Electrolux will continue to develop its climate scenario analyses and
assess the potential impacts on its operations. Future development
includes to:
• Deﬁ ne climate risks for speciﬁ c factory locations
• Update the Electrolux water risk assessment using the WWF Water
Risk Filter for Electrolux factories

1) According to a third-party study discussed in International Monetary Fund (2019). Fiscal Monitor,
How to Mitigate Climate Change page 21.

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Metrics and Targets

Electrolux has comprehensive reporting systems that include various
metrics and targets to assess and manage relevant climate-related
risks and opportunities.
section on page 57.

Read more in the For the Better 2030

Electrolux annually responds to the CDP Climate questionnaire
and the CDP Water questionnaire. Electrolux also reports in accor-
dance with the GRI Standards.

The following climate related KPIs are reported in the separate

Sustainability Report:
• Energy consumption within the organization
• Direct and Indirect CO2 emissions, including fugitive emissions
• Greenhouse gas emissions intensity in metric tons CO2 per million SEK
• Reduction of GHG emissions
• Emissions of ozone-depleting substances
• Science Based Target results (Scope 1, 2, and 3)
• Electrolux CDP report (www.cdp.net)

Details on the company’s overall climate performance are found

on page 58 in the Annual Report and
detailed performance is
reported in the standalone Electrolux Sustainability Report 2022.

Reporting principles
This section provides some additional technical detail behind the scenarios and the report’s assumptions.
Electrolux has based its climate scenarios and impacts on two diﬀ erent Representative Concentration

Pathways (RCPs) developed by the IPCC (IPCC, 2014: Climate Change 2014: Synthesis Report). An RCP
describes a greenhouse gas (GHG) concentration trajectory resulting in diﬀ erent climate futures, and ulti-
mately results in diﬀ erent risks and opportunities for Electrolux based on this forecast. In 2021, the Physical
Science Basis, IPCC Sixth Assessment Report (AR6) was published. The AR6 underpinned the scientiﬁ c
consensus of the ﬁ ndings in the report. This report has been updated with the latest predictions regarding
temperature and sea level rise from the AR6.

The Rapid Transition Scenario
The Rapid Transition Scenario is based on RCP 2.6, which would involve rapidly declining emissions in the
coming decades, resulting in a global average temperature rise of approximately between 1.3–2.4 °C by 2100.
For this scenario, the International Energy Agency (IEA)1) concludes that overall CO2 emissions need to peak
around 2020 and enter a steep decline thereafter to achieve a 75% reduction by 2050. The building sector,
including appliances, will see a similar drop, mainly through energy eﬃ ciency, renewable energy technologies
and a shift to low-carbon electricity. This means reducing carbon emissions by an average of 6% per year to
one-eighth of current levels by 2050. At the same time, demand for electricity in the building sector is expected
to increase as a result of a growing consumer base, as well as a rising demand for equipment such as air con-
ditioners and the replacement of gas and wood-burning stoves with electric appliances. The IEA concludes:
• Signiﬁ cant policy eﬀ orts are needed for cooling equipment and appliances to accelerate technological
progress in energy eﬃ ciency in these end uses, particularly with substantial growth in appliance and air
conditioner (AC) ownership expected in the coming decade.

• Digitalization and smart demand-side management will further reduce energy use.

A combination of stringent product energy legislation as well as carbon dioxide taxes would be required,
which would impact on product development, supply base, operations and sales in the appliance industry.
Higher carbon dioxide taxes are recommended by the IEA and in the EU Green Deal framework. Carbon
prices are expected to have an impact on energy intensive industries such as power generation, transport,
steel, aluminum and plastics producers. Finished goods could also be impacted through carbon import
duties, such as the EU Carbon Border Adjustment Mechanism.

The World Bank has estimated that carbon prices of at least USD 40–80/tCO2 by 2020 and USD 50–100/
tCO2 by 2030 are required to cost-eﬀ ectively reduce emissions in line with the temperature goals of the Paris
Agreement.2) In a report from the International Monetary Fund (IMF), it was concluded that a carbon tax of
USD 50 per metric ton in advanced countries (G20) would lead to an average electricity price increase of
33%, while a carbon tax of USD 75 per metric ton would lead to an increase in price of 43%.3)

Climate-related risks and impacts of the Rapid Transition and the Changing Climate scenarios

Scenario

The Rapid Transition Scenario

The Changing Climate Scenario

Risk Area

Product energy
legislation

Carbon dioxide
price/tax

Physical Risk –
acute

Physical Risk –
chronic

Potential impact
on Electrolux

Transformation
investments

Increase in price
for raw materials

Interruptions in
manufacturing and
supply chain

Relocation of
manufacturing

Financial
impact area

Costs, Sales, Reputation

Costs, Sales

Costs

Risk (0–3 years)

Emerging Risk (3–10years)

Long-term Risk (10– years)

Today, prices for renewable and fossil-based electricity are comparable, but prices are expected to decline
for renewables by around 50% over the next 10 years, while fossil-based electricity will increase by 40%
according to data from Bloomberg New Energy Finance. With a USD 75 per metric ton carbon tax, the price
of natural gas, both for industry and households (mostly for heating and cooking) would rise signiﬁ cantly,
by 70% on average.3)

The Changing Climate Scenario
The Changing Climate Scenario is based on RCP 4.5, which would involve slowly declining emissions resulting
in approximately between 2.1–3.5°C temperature increase by 2100. The IPCC has conducted risk assessments
for each region, including the potential for risk reduction through adaptation and mitigation, as well as limits
to adaptation. In the near term (2030 or in 10 years), projected levels of global mean temperature increase are
not expected to diverge substantially between diﬀ erent emission scenarios. However, the IPCC predicts that
by the mid-century (in 30 years), climate change will impact human health, with more frequent hot and fewer
cold temperature extremes over most land areas. It is also very likely that heat waves will occur with a higher
frequency and longer duration.

The average intensity of tropical cyclones, the proportion of Category 4 and 5 tropical cyclones and the
associated average precipitation rates are projected to increase with a 2°C global temperature rise. Sea lev-
els continue to rise at an increasing rate. Extreme sea level events that are historically rare (once per century
in the recent past) are projected to occur frequently (at least once per year) in many locations by 2050.

The Changing Climate Scenario will increase acute physical risks due to more frequent and/or more severe

weather systems, such as hurricanes and ﬂ oods. It will also increase chronic physical risks from changing
climate conditions, such as droughts and sea level rise. These physical impacts pose risks for disruption in the
appliance industry, due to the global nature of its operations and supply chain – particularly in the manufac-
turing of materials and components that are situated in parts of the world that are more likely to be aﬀ ected
by physical risks.

World Energy Outlook
The World Energy Outlook (WEO), published annually by the IEA, includes critical analysis and descriptions
of trends in energy demand and supply.4) It explores possible scenarios, how they could develop and some of
the main uncertainties to predict the consequences of diﬀ erent choices and what they mean for energy secu-
rity, environmental protection and economic development.

The IEA deﬁ nes two scenarios:

• The Sustainable Development Scenario (SDS) – a deep decarbonization scenario that considers how

people should gain access to critical energy services while also meeting climate goals.

• The Stated Policies Scenario (STEPS) – reﬂ ecting current policies and plans.

The SDS Scenario is considered to reﬂ ect the Group’s Rapid Transition Scenario, while the STEPS Scenario is
more in line with the Changing Climate Scenario. The IEA report provides recommendations to policy makers
regarding sectors and product categories in order to achieve the targets in the scenarios.

Disclosure limitations and future development
The following aspects have not been included in this Report:
• Growing consumer demand – driven by a growing middle class, increasing global incomes, electricity

access rates and ownership of appliances and air conditioners.

• Price elasticity – consumer willingness to pay a higher price for more eﬃ cient appliances as a result of

more stringent energy eﬃ ciency legislation.

• Mitigable risks – chronic physical risks will develop over time and could be mitigated by taking action

well before they have materialized to reduce negative impact.

• Climate risk disclosures are currently not included in ﬁ nancial risk management processes.

Forward-looking statements
This report contains ‘“forward-looking” statements that reﬂ ect the company’s current expectations. Although
Electrolux believes that the expectations reﬂ ected in such forward-looking statements are reasonable, no
assurance can be given that such expectations prove to be correct as they are subject to risks and uncertainties
that could cause the actual results to diﬀ er materially due to a variety of factors. These factors include, but
are not limited to, changes in consumer demand, changes in economic, market and competitive conditions,
supply and production constraints, currency ﬂ uctuations, developments in product liability litigation, changes
in the regulatory environment and other government actions. Forward-looking statements are only accurate
as of when they were formulated, and other than as required by applicable law, the company undertakes no
obligation to update any of them in light of new information or future events.

1) IEA (2018). Perspectives for the Energy Transition: The Role of Energy Eﬃ ciency.
2) The World Bank Group (2020), State and Trends of Carbon Pricing.
3) International Monetary Fund (2019). Fiscal Monitor, How to Mitigate Climate Change. p21
4) IEA, The Worl1d Energy Outlook (WEO) 2019

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Electrolux Annual Report 2022

Statutory sustainability report

Electrolux is a global leader in household appliances
and sustainability is an integral part of the company’s
business model. This section presents the Group’s
sustainability work and its progress in 2022.

technological development requires new business approaches, and
planetary boundaries are inﬂ uencing decision making at all levels.
Such global megatrends create challenges for Electrolux – and also
bring about business opportunities.

Electrolux shapes living for the better by reinventing taste, care and
wellbeing consumer experiences, making life more enjoyable and
sustainable for millions of people around the world. As a leading
global appliance company, Electrolux places the consumer at the
heart of everything it does. Through the company’s brands, including
Electrolux, AEG and Frigidaire, approximately 60 million household
products are sold in approximately 120 markets every year. In 2022,
Electrolux had sales of SEK 135 bn and employed approximately
51,000 people around the world. For more information, visit
www.electroluxgroup.com.

Business model and sustainable development
To achieve the Electrolux purpose – Shape living for the better –
and drive proﬁ table growth, Electrolux uses a business model that
focuses on creating outstanding branded lifetime consumer expe-
riences in Taste, Care and Wellbeing. The objective is to create a
steady stream of consumer-relevant innovations under well-estab-
lished brands in key experience areas. By creating desirable solu-
tions and great experiences that enrich peoples’ daily lives and the
health of the planet, Electrolux wants to be a driving force in deﬁ ning
enjoyable and sustainable living. The focus is to invest in innovations
that are most relevant for creating outstanding branded lifetime
consumer experiences within great tasting food, the best care for
clothes and to increase wellbeing in the home.

With 60 million home appliances sold annually, Electrolux has long

recognized the impact the company has on the environment and
in society. Sustainability is a key part of the strategy, integrated in
everything the Group does, as the company recognizes the growing
importance of sustainability performance. This includes the impact of
Electrolux business operations and products on the planet and society.
Electrolux is continuously making progress on sustainability and is
acknowledged as a sustainability leader in the household durables
industry.

Electrolux in a changing world
The world in which Electrolux operates is constantly changing.
Demographic trends are increasing pressure on resources, rapid

Demographics
Global demographic trends – such as population growth, the growing
middle class, an aging population and urbanization – are increasing
the demand for home appliances, which in turn puts more pressure
on natural resources. According to the Brookings Institute the global
middle class is expected to increase by 700 million people by 20301).
This represents a new universe of consumers.

Implications for Electrolux:
• Signiﬁ cant growth potential in emerging markets.
• Continued need to decrease the overall environmental footprint
of products.
• Growing importance of the elderly consumer group and the
increasing number of smaller households.
• Potential for new business models, such as shared ownership.

Resources and planetary boundaries
The need to reduce greenhouse gas emissions, and adapt to a
changing climate and resource limitations, will drive manufacturers
toward circular business models that promote resource eﬃ ciency,
reduced use of hazardous chemicals and waste reduction.

Implications for Electrolux:
• Continued need to improve the environmental performance of
products.
• Pressure to reduce water consumption in areas with water scarcity.
• Competition for some metals and minerals.
• Growing importance of the circular economy.
• Expectations to go beyond chemical legislation.
• Problems with plastic waste pollution increase pressure on recy-
cling solutions.

Technology
New technologies are scaled rapidly and globally, with purchasing
decisions increasingly inﬂ uenced by online information and social
media. The Internet of Things (IoT) promises to connect billions of
products in the near future.

Implications for Electrolux:
• Greater consumer empowerment and awareness require
transparency and sustainable business practices.
• Digitalization will drive the next wave of operational eﬃ ciency,
including closer integration with suppliers.
• Connectivity oﬀ ers opportunities for new business models that
result in better resource eﬃ ciency.
• IoT enables a lifelong relationship between producers and con-
sumers but requires high standards of data security and privacy.

Average CO2 impact during the lifetime of appliances1)

Recycling, 1%
Materials, 7%
Manufacturing, 1%
Transportation, 1%
Product usage, 85%
Greenhouse gases, 5%

The product life cycle perspective
guides how to best reduce climate
impacts. The greatest carbon emis-
sion impacts in the Electrolux value
chain occur from energy consump-
tion when products are used. See
page 58 for more details on the
company’s Climate Goals.

1) The graph is based on the Group’s total CO2 impact in 2015 (82 million metric tons) used for setting

Science Based Target.

Materiality
Material issues are topics that represent the most signiﬁ cant eco-
nomic, environmental and social impacts for Electrolux.

The materiality process aims to identify and understand the topics
that are important for stakeholders, as well as to the Group’s business
strategy. It is an important way of evaluating the ability to create and
sustain value.

Electrolux draws on insights from global trends and drivers,

market intelligence, product research, internal and external dialogue,
expert opinion and consumer surveys, and other sources of infor-
mation to develop an up-to-date understanding of the prevailing
business context.

The material issues selected are expressed in the Group’s sustain-
ability framework – For the Better 2030 – with ten areas with deﬁ ned
2030 sustainability goals, which are supported by key performance
indicators.

1) The World’s Growing Middle Class (2020–2030),

https://elements.visualcapitalist.com/the-worlds-growing-middle-class-2020-2030/

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For the Better 2030

“For the Better 2030” is the Electrolux sustainability
framework, which drives the Group toward its
ambitious sustainability Goals for 2030 and to become
climate neutral across its value chain by 2050.

Better Company
Electrolux places the highest demands on environmental and
social performance throughout the company as well as its suppliers,
acknowledging the supply chain as an extension of its own
aspirations.

For the Better 2030

Better Company

Better Solutions

Better Living

Lead in energy and
resource-eﬃ cient
solutions

Make healthy and
sustainable eating the
preferred choice

Be climate neutral
and drive clean and
resource-eﬃ cient
operations

Act ethically, lead in
diversity and respect
human rights

Oﬀ er circular products
and business solutions

Drive supply chain
sustainability

Eliminate harmful
materials

Make clothes last twice
as long with half the
environmental impact

Make the home a
healthier place to thrive
in, with half the carbon
footprint

Supporting the UN Sustainable Development Goals
and the Electrolux Climate Goals

The framework consists of nine Goals and the Electrolux Climate Goals
as shown in the illustration above. These are the main areas Electrolux
focuses on as they optimize the company’s contribution to society.

Operational resource eﬃ ciency
Index

100
100

80
80

60
60

40
40

20
20

0
0

Water consumption
Energy consumption
CO2 emissions

Year

Be climate neutral and drive clean and resource-eﬃ cient
operations
Electrolux will continue to reduce its environmental footprint by
shifting to renewable energy and optimizing energy use and other
resources throughout its operations. The ambition is to have climate
neutral operations by 2030 (Scope 1 and 2). In 2022, the company’s
Scope 1 and 2 greenhouse gas emissions from its operations were
reduced by 82% (78) compared to 2015, and the production energy
eﬃ ciency per unit improved by 41% (43) compared to 2005. By the
end of 2022, 59% (56) of the total energy used in Electrolux opera-
tions came from renewable sources. In addition, the Group has its
own on-site solar photovoltaic systems in seven countries.

Electrolux responds to the annual questionnaires from CDP, a
global non-proﬁ t that runs an environmental disclosure system for
companies, cities, states and regions, on climate and water.
In 2022, Electrolux was recognized for its sustainability leadership
with an “A-” score in both climate and water.

Act ethically, lead in diversity and respect human rights
Electrolux strives to earn the trust of everyone impacted by its oper-
ations, demonstrating its commitment to ethics, diversity and human
rights through its words and actions. This includes working to ensure
the health and safety of Electrolux employees and promoting societal
beneﬁ t through community investment activities. The Group noted
a Total Case Injury Rate (TCIR) of 0.36 (0.43) per 100 employees in
2022, which compares favorably to other companies in the industry.
During the year, safety actions included removing forklift trucks from
assembly areas in all Electrolux factories and ﬁ tting them with warn-
ing lights. Electrolux also continued employee health and safety
training, which is mandatory for all new employees.

In the area of business ethics, 584 (411) cases were reported through
the Ethics Helpline, including 12 (11) reports in the area of business
integrity that were investigated in 2022. Business integrity includes
allegations related to corruption, fraud, theft, internal control and
anti-trust. In the area of human rights during the year, the focus
was on conducting an assessment in South Africa. In 2022, close to
16,000 employees completed the e-learning on the Anti-Corruption
Policy.

Drive supply chain sustainability
Electrolux takes its sustainability leadership agenda into the supply
chain by assuring that suppliers comply with the Group’s high expec-
tations, no matter where they are located. The company encourages
and supports suppliers to make the transition to more sustainable
practices. Development activities have been carried out with suppli-
ers and a total of 303 (237) supplier audits were performed in 2022,
including both physical and digital audits. The Electrolux Supplier
Awards continued to encourage and motivate suppliers to be best in
class in terms of sustainability performance. Electrolux also secured
the commitment from its top 300 suppliers to disclose emissions and
set targets through the CDP Supply Chain Program, which will play a
key role in achieving the company’s target for net zero carbon emis-
sions throughout its supply chain by 2050.

Better Solutions
Electrolux works to continuously improve its products and services
to make them better for consumers and the planet, and to take
leadership on global sustainability challenges with a scientiﬁ c
and long-term approach.

Lead in energy and resource-eﬃ cient solutions
Tackling climate change and the increasing demand for water are
among the most urgent challenges facing society. The Group con-
tributes by oﬀ ering resource-eﬃ cient products that help consumers
to live better lives, save money and reduce their environmental
footprint. In 2022, the company’s most eﬃ cient products represented
24% of products sold but 39% of gross proﬁ t.

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Electrolux Annual Report 2022

Emission reductions 2022

The Electrolux climate neutrality roadmap

Scope 1 and 21,2)

Scope 31,3)

82%

reduction compared to 2015

>25%

reduction compared to 2015

Targets:

80%
25%

reduction in carbon emissions
in operations. Scope 1 and 21), 3)

Climate neutral
operations2)

reduction in carbon emissions in
product use. Scope 31), 3)

Climate neutral across
the value chain
This long-term ambition supports the
United Nations Global Compact Business
Ambition for 1.5° C. Scope 1, 2 and 3.

2015

2025

2030

2050

1) Science based target (SBT)
2) Company target (Scope 1 + 2 = 0)
3) Includes contributions from energy use and greenhouse gas fugitive
emissions. The result for 2022 reached beyond target despite the
reduction of sales volumes.

The Group has had an approved Science Based Target in line with the Paris Agreement (COP 21), since 2018.
To drive the internal focus on actions to reduce climate change within Electrolux, a performance target is linked to
the Group’s Science Based Target, within the long-term share-related incentive programs for senior managers.

Oﬀ er circular products and business solutions
Electrolux aims to contribute to the circular economy by integrating
recycled materials into product platforms, promoting recyclability,
using more sustainable packaging solutions, increasing the avail-
ability of spare parts to repair Electrolux products, and developing
circular business solutions. In 2022, Electrolux focused on circular
business and recycled plastics. The new 700 Maxispace Green-
Zone fridge is the ﬁ rst fridge to be made with inner liners made from
70% recycled plastic. New circular business models were launched
during the year, such as a subscription service in Singapore that
includes the setup, delivery, repair and recycling of appliances, and
a consumer appliance take-back solution in Brazil.

Eliminate harmful materials
Electrolux has a robust approach to choosing materials for its
products to protect human health and the environment. The Group
continues to implement its common process for chemical manage-
ment. New scientiﬁ c ﬁ ndings and stakeholder requirements are used
to update the Group’s Restricted Materials List. During the year, the
global roll out of the Eco@web tool continued. In 2022, Electrolux
completed the phase out of HFCs in its North American operations
by removing HFCs from room air conditioners and portable air
conditioners.

Better Living
Electrolux uses its global reach and presence to drive and contrib-
ute to positive change by empowering consumers to make more
sustainable choices, reaching beyond the company’s own products
and footprint.

Make healthy and sustainable eating the preferred choice
Electrolux will promote sustainable eating by helping consumers to
reduce food waste, adopt more plant-based diets, minimize nutri-
tion loss in cooking, and enhance sustainable eating experiences.
By oﬀ ering new products, solutions and partnerships, Electrolux
can promote more sustainable eating. In 2022, Electrolux intro-
duced GRO – a future concept aimed at reinventing the kitchen and
enabling people to enjoy food in a more sustainable way for both
their health and the planet. Technologies introduced to new models
during the year included the NutriFresh inverter refrigerator that
reduces food waste by keeping the temperature stable and provid-
ing higher humidity so that fruit and vegetables stay fresh for longer.
Electrolux launched new steam ovens and quantiﬁ ed the nutritional
beneﬁ ts of steaming ingredients. The website Replate.com was
enhanced during the year by the Electrolux Food Foundation and its
partners to inspire people to adopt more sustainable food habits.

Make clothes last twice as long with half the environmental impact
Electrolux has the objective to make clothes last longer and reduce
the environmental impact of garment care while caring for all fabrics.
By providing new products, solutions, campaigns and partnerships,
Electrolux can promote more sustainable garment care. In 2022,
various product innovations that care for garments to make them last
longer and reduce environmental impact by enabling consumers to
use less energy, water and detergent were launched. New solutions
included a ﬁ lter that collects microplastics from clothes to avoid
them ending up in the environment. In 2022, the “Break the pattern”
campaign was launched to raise consumer awareness of the envi-
ronmental impacts of throw-away fashion habits.

Make the home a healthier place to thrive in,
with half the carbon footprint
Electrolux will inspire more sustainable habits in caring for homes,
pioneer knowledge and new standards for a healthier home envi-
ronment, and enable wellbeing at home with reduced environmen-
tal impact. By providing new products, solutions and partnerships,
Electrolux can make the indoor environment healthier and more sus-
tainable. In 2022, Electrolux developed a Wellbeing Index to deﬁ ne
and measure the elements of clean air, comfortable air, clean water,
comfortable water and clean ﬂ oors. Electrolux removed paint from
its stick vacuum cleaners to promote indoor air quality and reduce
environmental impact. The Group’s connected Air Puriﬁ ers feature
smart sensors that optimize energy consumption by adjusting the
fan operation in line with the level of airborne particles.

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Managing sustainability – Risks and opportunities

Aspect

Policies

Key areas

Environment

Better Living

Anti-corruption

• Environmental Policy
• Workplace Policy

• Product design

• Eﬃ ciency in operations

• Workplace Policy
• Supplier Workplace Standard
• Workplace Directive

• Anti-Corruption Policy
• Conﬂ ict of Interest Policy

• Child and forced labor

• Conﬂ ict of interest

• Health and safety, working hours,

compensation

• Bribes or other improper beneﬁ ts

• Inﬂ uencing legislation

• Discrimination and harassment

• Business partners and customers

• Environmental management systems

• Freedom of association, collective

bargaining

• Political contributions

The full text of Electrolux policies is available at www.electroluxgroup.com/en/category/sustainability/codes-and-policies

Governance
The Group’s sustainability framework – For the Better 2030 – is
directly overseen by the Group Management and the business area
management teams that have been engaged in the development
of the priorities and objectives for the nine Goals and the Climate
Goals.

The Electrolux Sustainability Board, led by the CEO, is tasked
with assessing priorities, monitoring progress and evaluating risks.
The Sustainability Board proposes actions and targets to Group
Management and will be essential in achieving Electrolux sustain-
ability targets going forward.

Electrolux holds regular training and communication on the

Code of Conduct and has introduced key Group Policies. All oﬃ ce-
based staﬀ must acknowledge the Code of Conduct by electronic
signature.

Each business area is responsible for contributing to the fulﬁ llment

of the Group’s sustainability targets under the ten Goals, and several
of the performance indicators are broken down and monitored at
business area level. Reference groups and steering groups with
Group Management and senior management participation are in
place for various programs, for example the Ethics & Human Rights
Steering Group, Group Operations, External Aﬀ airs, and Chemicals.
A number of Group functions are accountable for identifying and
managing non-ﬁ nancial risks in their area of responsibility. Risks are
reported to Group Management and fed into the materiality process.

Key sustainability governance responsibilities:
Group Sustainability manages sustainability in close cooperation
with other Group staﬀ functions and the business areas. The Head
of Group Sustainability reports to the Head of Consumer Experience
& Product Lines and has an annual meeting with the Electrolux
Board to report sustainability progress and develop the company’s
strategic direction for sustainability work going forward.

The CEO also reports sustainability progress to the Board, which

oversees the overall company strategy. The Electrolux Sustain-
ability Board, chaired by the CEO, is a forum to raise sustainability
topics and review the implementation of the diﬀ erent sustainability
programs. Other members of the Sustainability Board are the Chief
Financial Oﬃ cer, Head of Operations, Head of Consumer Experi-
ence & Product Lines, Chief Commercial Oﬃ cer, CHRO & Communi-
cations, General Counsel and Head of Group Sustainability.

The Sustainability Board gives recommendations to Electrolux
Group Management, which makes decisions about sustainability
topics. Any critical concerns are promptly raised with the Board for
discussion.

The Ethics Helpline (whistleblower function) and programs for
ethics and human rights are overseen by the Ethics & Human Rights
Steering Group.

Environment
From a product lifecycle perspective, Electrolux has a relatively
large environmental impact – including energy consumption, and
the use of materials and chemicals. Generally, the most signiﬁ cant
impacts occur during a product’s use phase, and the Group’s strat-
egy is to improve product environmental performance.

The Electrolux Environmental Policy outlines how Electrolux aims
to improve environmental performance in production and product
use, as well as how to design products for proper disposal. Require-
ments on the Group’s operations and in the supply chain are described
in the Workplace Directive. All Electrolux factories with more than
50 employees are required to be ISO 14001 and ISO 50001 certiﬁ ed.
Group requirements for suppliers are described in the Supplier
Workplace Standard and the Workplace Directive. Compliance is
mandatory when evaluating potential and existing suppliers. The
Group’s strategic suppliers of components and ﬁ nished products
must take energy eﬃ ciency measures, and report on energy and
water. Some of these suppliers have also been included in the WWF
Water Risk Filter assessment.

The Group’s proactive approach aims to develop and promote

sales of products with lower environmental impact. Readiness
for more stringent product legislation, for example, can lead to
increased sales. For many years, products with superior environmental
performance have delivered higher proﬁ t margins.

Electrolux products are aﬀ ected by legislation in areas including
energy consumption, producer responsibility, and the management
of hazardous substances. Some customers have requirements that
go beyond legislation.

The main environmental risks are related to regulatory and
customer requirements. Not meeting requirements could result in
ﬁ nes or limitations on production permits, reduced sales or product
withdrawal. Electrolux has processes in place to mitigate these risks,
including ISO management systems, internal audits, a Responsible
Sourcing program, and targets in the product development plans.
The Group’s programs to reduce operational resource consumption
and to introduce more recycled materials in products are saving
costs.

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Electrolux has a Green Financing Framework, which helps it to
fund climate investments and other environmental initiatives. The
proceeds are to be used to ﬁ nance or reﬁ nance projects covered by
the environmental areas of the Electrolux sustainability framework,
For the Better 2030. This may include investments in R&D to improve
the energy or water eﬃ ciency of appliances, the development of
recycled materials or the increased use of renewable solar energy
at Electrolux factories.

Read more about the Electrolux Green Bond Framework
and Green Bond Impact Report: www.electroluxgroup.com/en/
green-bond-framework-29317/

Social, labor and human rights
The reputation of Electrolux is built on trust, which means that all
actions and decisions must be governed by principles of ethics,
integrity, and respect for people and care for the environment
– no matter where in the world the Group operates.

Consumer trust in companies and how they contribute to society

inﬂ uence purchasing decisions. Additionally, employees prefer to
work for a company with values that match their own. Respecting
human rights and being an ethical company goes beyond simply
meeting legal requirements. It is about guiding employees to know
what is right and wrong, and how to make decisions accordingly.
The For the Better 2030 Goals mentioned above reﬂ ect the Group’s
commitment to build a strong culture for ethics and human rights.

The key human rights risks include freedom of association,
discrimination and working conditions. Other risks are privacy of
information, and corruption.

The Electrolux Code of Conduct contains the Group’s Human

Rights policy statement, ﬁ rmly stating that human rights shall
be respected. All employees are required to take the Code of

Conduct e-learning as part of onboarding and recurring cam-
paigns. The Group’s human rights commitment is further detailed
through a Human Rights Directive. The Workplace Policy, the Sup-
plier Workplace Standard and the Workplace Directive contain
mandatory requirements relating to labor rights, health, safety and
environment within both Electrolux and its suppliers. Electrolux
continues to drive a company culture based on ethics, integrity and
respect by providing leadership that demonstrates and nurtures
inclusion and accountability.

Electrolux monitors performance and manages risks through
internal and external audits of manufacturing units, local human
rights assessments, education, the Ethics Helpline, management-
labor dialogue, as well as health and safety committees. Risks in the
supply chain are addressed through audits and training eﬀ orts as
part of the Responsible Sourcing program and the Conﬂ ict Minerals
program.

Human rights procedures engage many functions throughout
the organization, from Human Resources to Purchasing and Group
Operations. Accountability for the ethics program and the oversight
of human rights lies with the Ethics & Human Rights Steering Group,
which comprises of senior management representatives from Group
functions.

Electrolux conducts human rights impact assessments at both
Group and local level, in line with the UN Guiding Principles on Busi-
ness and Human Rights. Five issues and three business processes
constitute the Group’s salient human rights issues. The methodology
for the assessments focuses on identifying the risk of harming people,
as a direct or indirect result of Electrolux operations.

Anti-corruption
Corruption poses a threat to sustainable economic and social
development around the world. Corruption could also have severe
negative impacts for the Group by obstructing business growth,
increasing costs and imposing serious legal and reputational risks.
With operations all over the world, including countries in emerging
markets, Electrolux is exposed to risks related to corruption and
bribery. These risks may arise in several stages of the value chain,
such as in purchasing and sales.

Electrolux has zero tolerance for corruption and works continu-
ously to raise awareness among employees in order to minimize the
risk for corruption. Measures against corruption are included in the
Anti-Corruption Policy, which all employees are required to follow.
This policy provides guidance to employees on how to do the right
thing and explains which actions constitute unlawful and inappro-
priate behavior.

Employees can report ethical misconduct through the Electrolux

whistle-blower system.

Electrolux provides Group-wide e-learning courses on anti-
corruption. These initiatives complement the tailored training that
certain functions such as sales, procurement and senior manage-
ment receive (roles that are more exposed to corruption risks).
Such training sessions have been conducted locally throughout the
organization by either in-house legal counsel or by external experts.
Training requirements are continuously monitored and evaluated
based on business needs, and the legal and risk context. The local
human rights assessments include the review and assessment of
corruption risks.

For more information on how the Group manages risks and

impact throughout the value chain, see the Risk Management
section.

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Electrolux Annual Report 2022

EU Taxonomy report

Introduction
This is the 2022 EU Taxonomy report by Electrolux, which is prepared
in accordance with the EU taxonomy regulation for the establish-
ment of a framework to facilitate sustainable investment.

The purpose of the taxonomy is to establish common deﬁ nitions
and reporting on the economic activities that are in line with the EU
sustainability objectives for 2030.

As a leading global appliance company, Electrolux must adhere
to local legislation regarding, for example, product energy eﬃ ciency
and product labelling, wherever it operates in the world. There are
no global performance standards (in terms of energy eﬃ ciency) for
appliances but rather fundamental diﬀ erences in the standards for
various markets around the world.

The EU Taxonomy describes, among other things, which economic

activities are within the scope of the taxonomy (“taxonomy eligible
activities”) and which of such activities qualify as environmentally
sustainable (“aligned economic activities”), by meeting the EU Tax-
onomy’s technical screening criteria. For Electrolux products to be
deemed “aligned” with screening criteria, activities must comply with
certain EU speciﬁ c standards (EU Regulation 2017/1369).

For the above reasons, Electrolux has deemed that the eligible
activities in this report should focus on the EU market1). In 2022, the
EU market accounted for 27% of Group Net Sales.

The EU Taxonomy framework is still under development. Therefore
the content and format of this report will develop over time in parallel
with the progress of the taxonomy.

The current format of this report is aligned with the regulation

requirements.

Reporting on Key Performance Indicators
According to the EU Taxonomy framework, Electrolux is considered
to be a manufacturer of energy eﬃ ciency equipment for buildings.
The economic activities reported in the result tables are only those
activities that have the potential to comply with technical screening
criteria that deem them aligned with economic activity within the
current EU Taxonomy framework. The applicable technical screening
criteria for potentially aligned economic activities for Electrolux are:
• household appliances
• cooling and ventilation systems

1) The European Union member states.
2) Regulation (EU) 2017/1369 of the European Parliament and of the Council of July 4, 2017.
3) “Manufacturer” refers to a natural or legal person who manufactures a product or has a product
designed or manufactured, and markets that product under its name or trademark (Regulation
(EU) 2019/1020).

These activities are rated in the highest two populated classes of
energy eﬃ ciency in accordance with EU Regulation (EU) 2017/1369,
and other relevant legislation.

The numerator in the Key Performance Indicators presented in the
result tables only encompasses household appliances and cooling
and ventilation systems that are sold by Electrolux in the EU market
under its own brands. Not all household products sold by Electrolux
worldwide or products sold under private brands are included due
to the aforementioned reasons.

Eligibility in 2021 and 2022
This is the second year Electrolux reports on eligibility. In 2022,
the proportion of eligible turnover was 17% compared to 19% in 2021.
The proportion of eligible CapEx was 29% in 2022 and was 31%
in 2021. The proportion of eligible OpEx was 23% in 2022 and was
29% in 2021. This shows that the relative sales of eligible products
decreased in 2022 and had an impact on results.

Background and Electrolux approach
The main technical screening criteria for substantial contribution to
climate change mitigation for Electrolux products are based on the
EU framework regulation for the energy labelling of appliances and
air conditioners (the “EU Labelling Framework”)2). The energy labels
for washing machines, washer dryers, dish washers and refrigerators/
freezers have been revised. Tumble dryers, ovens, hoods and air
conditioners continue to use the older energy scales, but the scales
are expected to be revised in the coming years.

The new energy labelling schemes have much stricter perfor-
mance requirements resulting in a major downgrade of the energy
classes, e.g. a refrigerator previously in energy eﬃ ciency class A+++
could be now class C, D or E after rescaling without any signiﬁ cant
change in its energy consumption. Since the applicable taxonomy
screening criteria only deem products environmentally sustainable
if they are within “the highest two populated classes of energy eﬃ -
ciency”, this rescaling, as well as a gradual shift of sales towards
more eﬃ cient appliances, will create dynamic conditions for what
will be deﬁ ned as an environmentally sustainable product.

Electrolux is investing in new product architectures with further
improved energy eﬃ ciency with the objective of meeting the current
and future technical screening criteria for potentially aligned eco-
nomic activities and a top priority is to bring more eﬃ cient products
to consumers. For instance, in Europe Electrolux is investing in the
refrigeration lines in the Italian Susegana plant for this purpose.

The Group monitors the development of product legislation to be
prepared for future changes.

The long-term ambition of Electrolux is to ensure that its entire
value chain is climate neutral by 2050. To achieve this, improving
product eﬃ ciency is fundamental since carbon emissions resulting
from the consumption of energy from non-renewable sources during
the product use dominates.

Included activities
Eligible activities in this report include economic activities for
Electrolux that, according to the taxonomy regulation, could poten-
tially be deﬁ ned as “taxonomy aligned” activities based on the
technical screening criteria:
• Electrolux is a manufacturer of energy eﬃ cient equipment for
buildings, i.e. household appliances and cooling and ventilation
systems.
• The sales of products covered by the EU framework for energy
labelling regulation are included, e.g. washing machines, washer
dryers, tumble dryers, dish washers, refrigerators/freezers, ovens,
hoods and air conditioners.
• Only sales in the EU market are assessed as taxonomy eligible.
This is because the necessary information for the assessment of
products is only available for products sold in the EU in order to
determine if they are deﬁ ned as “taxonomy aligned”. In addition,
energy labelling standards around the world are not uniform.
• “Manufacturer” is deﬁ ned by Electrolux as either in-house man-
ufacturing or a third-party manufacturer, and these products are
sold under the Group’s brands or trademarks3). Electrolux products
sold under private labels are excluded.

Electrolux considers this approach to be in compliance with the EU
Taxonomy regulation, its purpose and the deﬁ nition of “manufactur-
ing” as set out in other relevant EU legislation.

Excluded activities
As most Electrolux products (approximately 70%) are sold outside
the EU market, they are not in the scope of the EU framework regu-
lation for energy labelling and therefore will not be compatible with
the technical screening criteria in the taxonomy. The energy labelling
varies from market to market, and it sends strong signals to consumers
who want to buy products with superior performance. However,
diﬀ erent energy labelling systems are not comparable for the pur-
pose of the EU Taxonomy report. This is because various energy

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Electrolux Annual Report 2022

labeling systems around the world use diﬀ erent criteria to classify
domestic appliances.

Several product categories sold in the EU are not included in
the EU framework for energy labelling and therefore not assessed

as taxonomy eligible in the EU taxonomy, e.g. cooktops and small
kitchen appliances. Vacuum cleaners are also excluded from the
taxonomy as the regulation for energy labelling has been repealed.
Since 1997, Electrolux has internally tracked the most-resource

eﬃ cient products sold by the Group and each year the criteria have
become more stringent.

Read more in the Better Solutions section on page 57.

Turnover

Economic activities (1)1)

A. TAXONOMY-ELIGIBLE
ACTIVITIES

A.1. Environmentally
sustainable activities
(Taxonomy-aligned)

Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)

Manufacture of energy eﬃ cient
equipment for buildings

A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)

Turnover of Taxonomy-eligible
but not environmentally sus-
tainable activities (not Taxon-
omy-aligned activities) (A.2)

Manufacture of energy eﬃ cient
equipment for buildings

Absolute
turnover
(3)
(SEKm)

Propor-
tion of
turnover
(4)
(%)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Water
and
marine
resources
(7)

Code(s)
(2)2)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Water
and
marine
resources
(7)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Minimum
safe-
guards
(17)

Taxonomy
aligned
proportion
of turnover,
year N (18)

Taxonomy
aligned
proportion
of turnover,
year N-1
(19)

Category
(enabling
activity
or) (20)

Category
(transi-
tional
activity)
(21)

Substantial contribution criteria (%)

DNSH criteria (“Does Not Signiﬁ cantly Harm”) (Y/N)

3.5

5,691

100

N/A3)

N/A

3.5 17,892

Total (A.1 + A.2)4)

3.5 23,583

175)

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES

Turnover of Taxonomy-non-
eligible activities (B)

3.5 111,297

Total (A + B)

3.5 134,880

100

1) Turnover is the proportion of net turnover that is derived from products or services, which equals Electrolux total Net Sales. See the Consolidated statement of comprehensive income on page 68.
2) EU economic activity code.
3) Regulation for these areas is not yet released.
4) Eligible economic activities are those that have technical screen criteria to formally permit such activities to potentially being deemed as aligned economic activity within the current EU Taxonomy

framework, i.e. sales of washing machines, washer dryers, tumble dryers, dish washers, refrigerators/freezers, ovens, hoods and air conditioners under own brand names on the EU Market. CapEx refers to
Electrolux investments in assets used to manufacture these products regardless of where they are located. OpEx refers to expenses associated with maintaining the value of these assets.

5) Turnover eligibility in 2021 was 19%.

N/A

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CapEX

Economic activities (1)1)

A. TAXONOMY-ELIGIBLE
ACTIVITIES

A.1. Environmentally
sustainable activities
(Taxonomy-aligned)

CapEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)

Manufacture of energy eﬃ cient
equipment for buildings

A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)

CapEx of Taxonomy-eligible
but not environmentally sus-
tainable activities (not Taxon-
omy-aligned activities) (A.2)

Manufacture of energy eﬃ cient
equipment for buildings

Substantial contribution criteria (%)

DNSH criteria (“Does Not Signiﬁ cantly Harm”) (Y/N)

Absolute
CapEX
(3)
(SEKm)

Propor-
tion of
CapEX
(4)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Code(s)
(2)

Water
and
marine
resources
(7)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Water
and
marine
resources
(7)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Minimum
safe-
guards
(17)

Taxono-
my-aligned
proportion
of CapEx,
year N (18)

Taxonomy
aligned
proportion
of CapEx,
year N-1
(19)

Category
(enabling
activity)
(20)

Category
(transi-
tional
activity)
(21)

3.5

512

100

N/A

3.5

1,609

Total (A.1 + A.2)2)

3.5

2,120

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES

CapEx of Taxonomy-non-
eligible activities (B)

3.5

5,269

Total (A + B)

3.5

7,389

100

1) Capital expenditure (CapEx) are additions to tangible and intangible assets during the year. The total CapEx is reported in Note 12 and 13.
2) Eligible economic activities are those that have technical screen criteria to formally permit such activities to potentially being deemed as aligned economic activity within the current EU Taxonomy

N/A

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Electrolux Annual Report 2022

OpEx

Economic activities (1)1)

A. TAXONOMY-ELIGIBLE
ACTIVITIES

A.1. Environmentally
sustainable activities
(Taxonomy-aligned)

OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)

Manufacture of energy eﬃ cient
equipment for buildings

A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)

OpEx of Taxonomy-eligible
but not environmentally sus-
tainable activities (not Taxon-
omy-aligned activities) (A.2)

Manufacture of energy eﬃ cient
equipment for buildings

Code(s)
(2)

Absolute
OpEx (3)
(SEKm)

Propor-
tion of
OpEx (4)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Water
and
marine
resources
(7)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Climate
change
mitiga-
tion (5)

Climate
change
adapta-
tion (6)

Water
and
marine
resources
(7)

Circular
economy
(8)

Pollution
(9)

Biodiver-
sity and
ecosys-
tems (10)

Minimum
safe-
guards
(17)

Taxonomy
aligned
proportion
of OpEx,
year N (18)

Taxonomy
aligned
proportion
of OpEx,
year N-1
(19)

Category
(enabling
activity)
(20)

Category
(transi-
tional
activity)
(21)

Substantial contribution criteria (%)

DNSH criteria (“Does Not Signiﬁ cantly Harm”) (Y/N)

3.5

281

100

N/A

3.5

1,005

Total (A.1 + A.2)2)

3.5

1,286

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES

OpEx of Taxonomy-non-
eligible activities (B)

3.5

4,231

Total (A + B)

3.5

5,517

100

1) Operating expenditure (OpEx), in the context of the taxonomy and according to the regulation, is deﬁ ned as direct non-capitalized costs that relate to research and development (R&D), building renova-

tion measures, short-term lease, maintenance and repair, as well as direct expenditure relating to the day-to-day servicing of assets, i.e. not the total operating expenses, but only expenses associated with
maintaining the value of assets linked to eligible products. In this report, R&D and maintenance are included as the other areas deemed to be non-material.

2) Eligible economic activities are those that have technical screen criteria to formally permit such activities to potentially being deemed as aligned economic activity within the current EU Taxonomy

N/A

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Minimum safeguards
Electrolux adheres to strict norms and strives to maintain eﬃ cient
governance processes to ensure that all operations create long-
term and sustainable value for shareholders and other stakeholders.

This involves an eﬃ cient organizational structure, systems for
internal control and risk management and transparent internal and
external reporting. It is the assessment of Electrolux that it adheres
to the Minimum safeguards.1)

Certain Electrolux processes and procedures in respect of four
core areas, which are relevant for adherence to the Minimum safe-
guards, are further outlined below.

It is assessed that adequate processes are in place in such areas,
both to capture legal actions taken towards the company, its subsid-
iaries and senior management and to prevent substantiated failures
or wrongdoings in these areas and to undertake remedial actions,
including to improve processes, to ensure that any such failures or
wrongdoings are unlikely to be repeated.2)

Human rights
Electrolux conducts human rights impact assessments at both Group
and local level, in line with the UN Guiding Principles on Business
and Human Rights.
For more information, please see section
“Social, labor and human rights”, on page 60.

Corruption
Electrolux has zero tolerance for corruption and works continuously
to raise awareness among employees to minimize the risk for
corruption. Measures against corruption are included in the Group’s
Anti-Corruption Policy, which all employees are required to follow.
For more information, please see section “Anti-corruption”,

on page 60.

Taxation
One important aspect of the Electrolux company purpose – Shape
living for the better – is to act as a good corporate citizen and tax-
payer wherever Electrolux operates.
see the Corporate Governance Report, section “Electrolux as a
taxpayer”, on page 22.

For more information, please

Fair competition
The Group’s commitments, including fair competition, are speciﬁ ed
in its Code of Conduct and Anti-Trust Policy, including supporting
guidelines.

Do no signiﬁ cant harm
Climate mitigation activities will only be considered as aligned if
they do not negatively impact the ﬁ ve “do no signiﬁ cant harm”
criteria listed below.

Climate adaptation
The Electrolux Enterprise Risk Management (ERM) framework and
related processes identify, mitigate, communicate and report risks
that can signiﬁ cantly aﬀ ect the business – including climate change.
Electrolux follows a risk mapping process for the collection and
incorporation of risk information into decision making and gover-
nance processes. The ERM includes climate-related risks in line with
the Climate Risk Disclosure. Climate-related risks usually have a
longer time-horizon than other ERM risks. Electrolux has assessed
two diﬀ erent climate scenarios that result in various risks and oppor-
tunities for Electrolux throughout its value chain.
Read more in the
Risk Management section, on page 44.

Water and marine resources
The company’s water management is based on the WWF Water Risk
Filter, which helps identify which Electrolux factories are located in
water scarce areas. Decisions around the company’s management
targets is based on the tool. The Electrolux Green Spirit program
shares water management best practice, monthly reporting on
water performance indicators as well water mapping globally.

Circular economy
Electrolux has an important role to play in enabling people to live
more circular lives through its products and solutions. Electrolux con-
tributes to the circular economy by integrating recycled materials
into its product platforms and by promoting circular business mod-
els. The company also designs its products to optimize longevity and
recyclability at their end-of-life. In operations, the Electrolux Zero
Waste to Landﬁ ll program has the objective to ﬁ nd opportunities
for material reuse and recycling, and at the same time decrease the
amount of waste sent to landﬁ ll and/or incinerated without energy
recovery. Electrolux protects people and the environment by man-
aging chemicals carefully and continuing to replace those that
cause concern.

Pollution
In the EU, the Group complies with all relevant regulations related
to substances in products through the Electrolux Restricted Material
List. The list includes all substances that are restricted and banned
according to EU regulations. Approved exemptions of restricted
substances are present in our products where there is no technical
alternative currently available, as our products are essential to
society.

All European manufacturing sites have environmental permits
they abide by to meet local environmental legislation requirements.
This includes controlling pollution.

Biodiversity and ecosystems
All Electrolux European manufacturing sites are certiﬁ ed to the ISO
14001 environmental management system, which integrates biodi-
versity considerations. The Electrolux Workplace Policy prohibits its
operations from operating in protected areas. These manufacturing
sites have environmental permits they abide by to meet local envi-
ronmental legislation requirements. This includes protecting local
biodiversity and ecosystems.

1) As deﬁ ned in Articles 3 and 18 of European Union Regulation (EU) 2020/852.
2) During 2022, one of Electrolux subsidiaries was found to have been in breach of local competition
law, without further possibility to appeal. However, this matter originated from certain business
undertakings that took place prior to 2010 and the reasons for this breach of local competi-
tion laws and well as underlying circumstances were promptly remedied and local processes
improved in ways so that a repetition of this breach is unlikely.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Sustainability reporting
The sustainability reporting section in the administration report has
been developed to fulﬁ ll the requirements in the Swedish Annual
Accounts Act and the EU Taxonomy Regulation (EU 2020/852).

For more detailed information on Electrolux and sustainability,

read the latest Sustainability Report prepared according to the
GRI Standards at: www.electroluxgroup.com/sustainability

Sustainability reporting and information
The Electrolux sustainability routines and systems for information
and communication aim to provide key stakeholders with accurate,
relevant and timely information concerning the Group’s progress on
its sustainability framework, For the Better 2030.

The sustainability reporting section in the administration report
has been developed to fulﬁ ll the requirements of the Swedish Annual
Accounts Act. This report also highlights how the Group’s priorities
reﬂ ect its commitment to the ten principles of the UN Global Com-
pact. Unless otherwise indicated, sustainability disclosures include
all operations that contributed to Group performance for the calen-
dar year 2022.

Sustainability information is shared regularly in the form of:
• Electrolux Sustainability Report, including the United Nations
Guiding Principles Reporting Framework
• Electrolux Sustainability in Brief
• Mandatory reporting regarding transparency in the supply chain
• Press releases
• Meetings with key stakeholders worldwide
• Responses to questionnaires from investors and analysts
• Annual submission to CDP for Climate and Water

Reports, policies and press releases are available at
www.electroluxgroup.com.

Auditor’s report on the statutory sustainability report
To the general meeting of the shareholders in AB Electrolux
(publ), corporate identity number 556009-4178

Engagement and responsibility
It is the board of directors who is responsible for the statutory
Sustainability Report for the year 2022 on pages 47-48, 56–66
and that it has been prepared in accordance with the Annual
Accounts Act.

The scope of the audit
Our examination has been conducted in accordance with FAR’s
auditing standard RevR 12. The auditor’s opinion regarding the
statutory Sustainability Report. This means that our examination
of the statutory Sustainability Report is substantially diﬀ erent
and less in scope than an audit conducted in accordance with
International Standards on Auditing and generally accepted
auditing standards in Sweden. We believe that the examination
has provided us with suﬃ cient basis for our opinion.

Opinion
A statutory Sustainability Report has been prepared.

ELECTROLUX — A LEADER IN THE HOUSEHOLD DURABLES
INDUSTRY
The Group’s sustainability performance strengthens relations with
investors and Electrolux is recognized in the household durables
industry by Dow-Jones sustainability index and recieved a score of
A– for climat & water from CDP. Additionally, Electrolux has received
recognition from other indexes and organizations, including S&P
Global, MSCI and ISS ESG.

Stockholm, February 17, 2023

AB Electrolux (publ)
Board of Directors

Stockholm February 21, 2023

PricewaterhouseCoopers AB

Peter Nyllinge
Authorised Public Accountant
Partner in Charge

Helena Kaiser de Carolis
Authorised Public Accountant

This is a translation of the Swedish language original. In the event of any diﬀ erences between
this translation and the Swedish language original, the latter shall prevail.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Financial
reports

Consolidated statement of
comprehensive income

Consolidated balance sheet

Changes in consolidated equity

Consolidated cash ﬂ ow statement

Parent Company income statement

Parent Company balance sheet

Parent Company change in equity

Parent Company cash ﬂ ow statement

Note 1 Accounting principles

Note 2 Financial risk management

Note 3 Segment information

Note 4 Revenue recognition

Note 5 Operating expenses

Note 6 Other operating income and

Note 13 Goodwill and other intangible assets

Note 14 Other non-current assets

Note 15 Inventories

Note 16 Other current assets

Note 17 Trade receivables

Note 18 Financial instruments

Note 19 Assets pledged for liabilities
to credit institutions

Note 20 Share capital, number of shares
and earnings per share

Note 21 Untaxed reserves, Parent Company

Note 22 Post-employment beneﬁ ts

Note 23 Other provisions

Note 24 Other liabilities

Note 25 Contingent assets and liabilities

Note 26 Acquired and divested operations

expenses

Note 27 Employees and remuneration

Note 7 Material proﬁ t or loss items in

Note 28 Fees to auditors

operating income

Note 8 Leases

Note 9 Financial income and

ﬁ nancial expenses

Note 10 Taxes

Note 11 Other comprehensive income

Note 12 Property, plant and equipment, owned

Amounts are stated in MSEK unless otherwise stated.

Note 29 Shares and participations

Note 30 Transactions with related parties

Note 31 Proposed distribution of earnings

Auditor’s report

AB Electrolux (publ), 556009–4178. S:t Göransgatan 143, SE-105 45 Stockholm, Sweden.
The registered oﬃ ce of the Board of Directors is in Stockholm, Sweden

101

102

103

106

107

108

109

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Consolidated statement of comprehensive income

2022

2021

SEKm

Note

2022

2021

SEKm

Net sales

Cost of goods sold

Gross operating income

Selling expenses

Administrative expenses

Other operating income and expenses

Operating income

Financial income

Financial expenses

Financial items, net

Income after ﬁ nancial items

Taxes

Income for the period

Items that will not be reclassiﬁ ed to income for the period:

Remeasurement of provisions for post–employment beneﬁ ts

Income tax relating to items that will not be reclassiﬁ ed

Items that may be reclassiﬁ ed subsequently to income for the period:

Cash ﬂ ow hedges

Exchange–rate diﬀ erences on translation of foreign operations

Income tax relating to items that may be reclassiﬁ ed

Other comprehensive income, net of tax

Total comprehensive income for the period

Note

3, 4

5, 7

134,880

125,631

Income for the period attributable to:

–117,177

–101,647

Equity holders of the Parent Company

17,703

23,984

Non–controlling interests

Total

5, 7

–12,997

–5,752

6, 7, 29

3, 8

11, 18

830

–215

–1,545

–1,457

–1,672

352

–1,320

1,614

–411

1,204

2,643

2,684

3,887

2,568

–11,835

–4,972

–376

6,801

Total comprehensive income for the period attributable to:

Equity holders of the Parent Company

Non–controlling interests

Total

Earnings per share

For income attributable to the equity holders of the Parent Company:

Basic, SEK

Diluted, SEK

Average number of shares1)

Basic, million

Diluted, million

1) Average numbers of shares excluding shares held by Electrolux.

–589

–546

6,255

–1,577

4,678

2,746

–584

2,161

–35

1,284

1,258

3,419

8,097

–1,320

4,678

–1,320

4,678

2,567

8,096

2,568

8,097

–4.81

–4.75

16.31

16.21

274.7

278.0

286.9

288.5

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Consolidated balance sheet

SEKm

ASSETS

Non-current assets

Property, plant and equipment, owned

Property, plant and equipment, right-of-use

Goodwill

Other intangible assets

Investments in associates

Deferred tax assets

Financial assets

Pension plan assets

Other non-current assets

Total non-current assets

Current assets

Inventories

Trade receivables

Tax assets

Derivatives

Other current assets

Short-term investments

Cash and cash equivalents

Total current assets

Total assets

Note December 31, 2022 December 31, 2021

SEKm

Note December 31, 2022 December 31, 2021

17, 18

29,876

3,906

7,081

5,223

7,672

259

2,164

904

57,108

24,374

21,487

1,208

5,098

168

17,559

69,994

127,102

25,422

2,771

6,690

4,000

5,746

1,732

634

47,136

20,478

23,110

959

204

4,632

165

10,923

60,471

107,607

EQUITY AND LIABILITIES

Equity attributable to equity holders of the
Parent Company

Share capital

Other paid-in capital

Other reserves

Retained earnings

Non-controlling interests

Total equity

Non-current liabilities

Long-term borrowings

Long-term lease liabilities

Deferred tax liabilities

Provisions for post-employment beneﬁ ts

Other provisions

Total non-current liabilities

Current liabilities

Accounts payable

Tax liabilities

Other liabilities

Short-term borrowings

Short-term lease liabilities

Derivatives

Other provisions

Total current liabilities

Total liabilities

Total equity and liabilities

1,545

2,905

–651

12,644

16,443

16,449

28,738

3,210

731

1,919

4,655

39,253

38,357

1,453

17,543

8,377

1,054

578

4,037

71,400

110,653

127,102

1,545

2,905

–3,335

17,489

18,604

18,610

10,205

2,173

476

2,623

4,664

20,142

38,182

1,704

19,745

5,563

882

2,704

68,854

88,996

107,607

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Changes in consolidated equity

SEKm

Opening balance, January 1, 2021

Income for the period

Cash ﬂ ow hedges

Exchange diﬀ erences on translation of foreign operations

Remeasurement of provisions for post-employment beneﬁ ts

Income tax relating to other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period

Share-based payments

Dividend

Bonus issue

Redemption of shares

Repurchase of shares

Acquisition of non-controlling interest

Total transactions with equity holders

Closing balance, December 31, 2021

Income for the period

Cash ﬂ ow hedges

Exchange diﬀ erences on translation of foreign operations

Remeasurement of provisions for post-employment beneﬁ ts

Income tax relating to other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period

Share-based payments

Dividend

Bonus issue

Cancellation of shares

Repurchase of shares

Acquisition of non-controlling interest

Total transactions with equity holders

Closing balance, December 31, 2022

For more information on share capital, number of shares and earnings per share, see Note 20.

—

772

–772

—

1,545

—

129

–129

—

1,545

Share capital

Other paid-in capital

Other reserves

Retained earnings

Total Non-controling interests

Total equity

Attributable to equity holders of the Parent Company

1,545

2,905

—

–4,593

—

–35

1,284

—

1,258

—

2,905

–3,335

—

2,644

—

2,684

—

2,905

–651

18,846

4,678

—

2,746

–584

2,161

6,839

–116

–2,299

–772

–4,113

–894

–1

–8,195

17,489

–1,320

—

1,614

–411

1,203

–117

–72

–2,521

–129

129

–2,138

–4,729

12,644

18,702

4,678

–35

1,284

2,746

–576

3,419

8,096

–116

–2,299

—

–4,886

–894

–1

–8,195

18,604

–1,320

2,644

1,614

–411

3,887

2,567

–72

–2,521

—

–2,138

–4,729

16,443

—

–0

—

–0

—

–0

—

–1

—

–0

—

18,709

4,678

–35

1,284

2,746

–576

3,419

8,097

–116

–2,299

—

–4,886

–894

–1

–8,196

18,610

–1,320

2,644

1,614

–411

3,887

2,568

–72

–2,521

—

–2,138

–4,729

16,449

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Consolidated cash ﬂ ow statement

SEKm

Operations

Operating income

Depreciation and amortization

Other non-cash items

Financial items paid, net

Taxes paid

Cash ﬂ ow from operations, excluding change in operating assets
and liabilities

Change in operating assets and liabilities

Change in inventories

Change in trade receivables

Change in accounts payable

Change in other operating assets, liabilities and provisions

Cash ﬂ ow from change in operating assets and liabilities

Cash ﬂ ow from operations

Investments

Acquisition of operations

Divestment of operations

Capital expenditure in property, plant and equipment

Capital expenditure in product development

Capital expenditure in software and other intangibles

Other

Cash ﬂ ow from investments

Note

2022

2021

SEKm

Cash ﬂ ow from operations and investments

8, 12, 13

–215

5,390

1,670

–1,238

–1,514

6,801

4,489

895

–470

Financing

Change in short-term investments

Change in short-term borrowings

New long-term borrowings

–1,480

Amortization of long-term borrowings

Payment of lease liabilities

4,093

10,235

Dividend

Redemption of shares

Repurchase of shares

Share-based payments

Cash ﬂ ow from ﬁ nancing

Total cash ﬂ ow

Note

2022

–9,236

–4

5,355

22,244

–6,158

–960

–2,521

—

–2,138

–217

15,601

6,365

2021

244

–291

–284

–880

–2,299

–4,886

–894

–259

–9,785

–9,541

Cash and cash equivalents at beginning of period

Exchange-rate diﬀ erences referring to cash and cash equivalents

Cash and cash equivalents at end of period

10,923

20,196

271

267

17,559

10,923

–1,556

4,074

–4,026

–4,859

–6,367

–2,274

–6,401

–2,253

5,372

106

–3,175

7,059

—

–1,006

–367

—

–5,649

–4,847

–740

–1,001

795

–578

–618

233

–6,962

–6,815

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Parent Company

Parent Company income statement

SEKm

Net sales

Cost of goods sold

Gross operating income

Selling expenses

Administrative expenses

Other operating expenses

Operating income

Financial income

Financial expenses

Financial items, net

Income after ﬁ nancial items

Appropriations

Income before taxes

Taxes

Income for the period

Total comprehensive income for the period

SEKm

Income for the period

Other comprehensive income

Exchange rate diﬀ erences

Cash ﬂ ow hedges

Income tax relating to other
comprehensive income

Other comprehensive income, net of tax

Note

2022

2021

42,063

43,805

–37,873

–36,717

7,088

–3,746

–1,992

–75

1,275

3,717

–457

3,260

4,535

–20

4,515

–405

4,110

2021

4,110

4,190

–3,320

–2,470

–1,860

–3,460

3,920

–1,073

2,847

–613

–60

–673

437

–236

2022

–236

–1

Total comprehensive income for the period

–219

4,133

Derivatives with subsidiaries

The Parent Company comprises the functions of the Group’s head
oﬃ ce in Sweden, as well as ﬁ ve companies operating on a commis-
sion basis for AB Electrolux.

Net sales for the Parent Company, AB Electrolux, during 2022
amounted to SEK 42,063m (43,805) of which SEK 34,865m (36,581)
referred to sales to Group companies and SEK 7,198m (7,224) to external
customers. Income after ﬁ nancial items was SEK -613m (4,535), including
dividends from subsidiaries amounting to SEK 3,167m (3,434). Income
for the period amounted to SEK -236m (4,110).

Derivatives

Other receivables

Prepaid expenses and
accrued income

Cash and bank

Total current assets

Total assets

Income tax related to group contributions is reported in the income
statement. Income tax related to cash ﬂ ow hedges is reported in
other comprehensive income.

Capital expenditures in tangible and intangible assets amounted
to SEK 1,222m (860). Liquid funds at the end of the period amounted
to SEK 12,899m, compared to SEK 6,705m at the start of the year.

Undistributed earnings in the Parent Company at the end of the

period amounted to SEK 9,353m, compared to SEK 15,002m at
the start of the year. Dividend payments to shareholders for 2021
amounted to SEK 2,521m. For information on the number of employees,
salaries and remuneration, see Note 27. For information on share-
holdings and participations, see Note 29.

Parent Company balance sheet

SEKm

ASSETS

Non–current assets

Intangible assets

Property, plant and
equipment

Deferred tax assets

Financial assets

Total non–current assets

Current assets

Inventories

Receivables from
subsidiaries

Trade receivables

Note December 31, 2022 December 31, 2021

2,923

267

824

37,175

41,189

3,688

17,622

677

273

270

494

12,899

36,019

77,208

2,201

273

309

37,144

39,927

3,376

12,531

1,256

179

364

490

6,705

24,984

64,911

SEKm

Note December 31, 2022 December 31, 2021

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital

Statutory reserve

Development reserve

Non–restricted equity

Retained earnings

Income for the period

Total equity

Untaxed reserves

Provisions

Provisions for pensions and
similar commitments

Other provisions

Total provisions

Non–current liabilities

Payable to subsidiaries

Bond loans

Other non–current loans

Total non–current liabilities

Current liabilities

Payable to subsidiaries

Accounts payable

Other liabilities

Short–term borrowings

Derivatives with subsidiaries

Derivatives

Accrued expenses and
prepaid income

Total current liabilities

Total liabilities and provisions

Total liabilities,
provisions and equity

1,545

3,017

2,251

6,813

9,589

-236

9,353

16,166

668

434

1,492

1,926

25,456

3,240

28,771

19,957

2,153

483

5,061

174

482

1,367

29,677

60,374

77,208

1,545

3,017

1,552

6,114

10,892

4,110

15,002

21,116

586

424

1,072

1,496

9,774

365

10,214

22,410

2,318

509

4,158

104

1,951

31,499

43,209

64,911

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Parent Company change in equity

Restricted equity

Non-restricted equity

SEKm

Share capital

Statutory
reserve

Development
reserve

Fair value
reserve

Opening balance, January 1, 2021

1,545

3,017

1,162

Income for the period

Exchange rate diﬀ erences

Cash ﬂ ow hedges

Income tax relating to other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period

Share-based payments

Development reserve

Dividend

Bonus issue

Redemption of shares

Repurchase of shares

Total transactions with equity holders

Closing balance, December 31, 2021

Income for the period

Exchange rate diﬀ erences

Cash ﬂ ow hedges

Income tax relating to other comprehensive income

Other comprehensive income, net of tax

Total comprehensive income for the period

Share-based payments

Development reserve

Dividend

Bonus issue

Cancellation of shares

Repurchase of shares

Total transactions with equity holders

Closing balance, December 31, 2022
.

—

772

–772

—

1,545

3,017

—

129

–129

—

1,545

—

3,017

—

389

—

389

1,551

—

700

—

700

2,251

–15

—

–1

—

Retained
earnings

19,468

4,110

Total equity

25,177

4,110

—

4,110

–116

–389

–2,299

–772

–4,113

–894

–8,583

14,995

4,133

–116

–2,299

–4,886

–894

–8,194

21,116

–236

—

–236

–72

–700

–2,521

–129

129

–2,138

–5,431

9,328

–1

–219

–72

–2,521

–2,138

–4,731

16,166

Parent Company cash ﬂ ow statement

SEKm
Operations
Income after ﬁ nancial items
Depreciation and amortization
Capital gain/loss included in operating income
Share-based compensation
Group contributions
Taxes paid
Cash ﬂ ow from operations, excluding change
in operating assets and liabilities

Change in operating assets and liabilities
Change in inventories
Change in trade receivables
Change in current intra-group balances
Change in other current assets
Change in other current liabilities and provisions
Cash ﬂ ow from operating assets and liabilities
Cash ﬂ ow from operations

Investments
Change in shares and participations
Capital expenditure in intangible assets
Capital expenditure in property, plant and
equipment
Other
Cash ﬂ ow from investments
Total cash ﬂ ow from operations and
investments

Financing
Change in short-term borrowings
Change in intra-group borrowings
New long-term borrowings
Amortization of long-term borrowings
Dividend
Redemption of shares
Repurchase of shares
Cash ﬂ ow from ﬁ nancing
Total cash ﬂ ow
Cash and cash equivalents at beginning of period
Exchange-rate diﬀ erences referring to
cash and cash equivalents
Cash and cash equivalents at end of period

2022

2021

–613
549
1,821
–72
22
–79

4,535
437
104
–116
19
–169

1,628

4,811

–312
579
–6,317
173
88
–5,789
–4,161

–874
–102
5,509
–265
472
4,740
9,551

–1,535 –4,536
–730

–1,119

–103
–360
–3,117

–130
–1,632
–7,028

–7,278

2,523

4,885
–1,342
22,255
–7,680
–2,521

94
–2,799
0
–104
–2,299
— –4,886
–2,138
–894
13,459 –10,888
–8,365
15,049

6,181
6,705

13
12,899

21
6,705

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 1 Accounting principles

This section describes the comprehensive basis of preparation which
has been applied in preparing the ﬁ nancial statements. Accounting
principles for speciﬁ c accounting areas and individual line items
are described in the related notes. For additional information on
accounting principles, please contact Electrolux Investor Relations.

Basis of preparation
The consolidated ﬁ nancial statements are prepared in accordance
with International Financial Reporting Standards (IFRS) as endorsed
by the European Union (EU). The consolidated ﬁ nancial statements
have been prepared under the historical cost convention, except
for ﬁ nancial instruments at fair value (including derivative ﬁ nancial
instruments). Some additional information is disclosed based on the
standard RFR 1 issued by the Swedish Financial Reporting Board and
the Swedish Annual Accounts Act. As required by IAS 1, Electrolux
companies apply uniform accounting rules, irrespective of national
legislation, as deﬁ ned in the Electrolux Accounting Manual which
is fully compliant with IFRS. The policies set out below have been
consistently applied to all years presented with the exception of
new accounting standards where the application follows the rules
in each particular standard. For information on new standards,
see the section on new or amended accounting standards below.

Enumerated amounts presented in tables and statements may not

always agree with the calculated sum of the related line items due
to rounding diﬀ erences. The aim is for each line item to agree with its
source and therefore there may be rounding diﬀ erences aﬀ ecting the
total when adding up the presented line items.

The Parent Company applies the same accounting principles as

the Group, except in the cases speciﬁ ed in the section entitled
‘Parent Company accounting principles’.

The ﬁ nancial statements were authorized for issue by the Board
of Directors on February 17, 2023. The balance sheets and income
statements are subject to approval by the Annual General Meeting
of shareholders on March 29, 2023.

Principles applied for consolidation
The consolidated ﬁ nancial statements have been prepared by use
of the acquisition method of accounting, whereby the assets and
liabilities and contingent liabilities assumed in a subsidiary on the
date of acquisition are recognized and measured to determine the
acquisition value to the Group.

The cost of an acquisition is measured as the fair value of the assets

given, equity instruments issued and liabilities incurred or assumed
at the date of exchange. The consideration transferred includes the
fair value of any asset or liability resulting from a contingent consider-

ation arrangement. Costs directly attributable to the acquisition eﬀ ort
are expensed as incurred. On an acquisition-by-acquisition basis,
the Group recognizes any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s proportionate
share of the acquiree’s net assets.

The excess of the consideration transferred, the amount of any
non-controlling interest in the acquiree and the acquisition-date
fair value of any previous equity interest in the acquiree over the fair
value of the identiﬁ able net assets acquired is recorded as goodwill.
If the fair value of the acquired net assets exceeds the cost of the
business combination, the identiﬁ cation and measurement of the
acquired assets must be reassessed. Any excess remaining after that
reassessment represents a ‘bargain purchase’ and is recognized
immediately in the statement of comprehensive income.

The consolidated ﬁ nancial statements for the Group include the

ﬁ nancial statements of the Parent Company and its directly and
indirectly owned subsidiaries after:
• elimination of intra-group transactions, balances and unrealized
intra-group proﬁ ts, and
• carrying values, depreciation and amortization of acquired surplus
values.

Deﬁ nition of Group companies
The consolidated ﬁ nancial statements include AB Electrolux and
all companies over which the Parent Company has control, i.e.,
the power to direct the activities; exposure to variable return and
the ability to use its power. When the Group ceases to have control,
any retained interest in the entity is remeasured at its fair value,
with the change in carrying amount recognized in proﬁ t or loss.
At year-end, the Group consisted of 133 (136) companies with

189 (192) operating units.

The following apply to acquisitions and divestments:

• Companies acquired are included in the consolidated income
statement as of the date when Electrolux gains control.
• Companies divested are included in the consolidated income
statement up to and including the date when Electrolux loses
control.

Associated companies
Associates are all companies over which the Group has signiﬁ cant
inﬂ uence but not control, generally accompanying a shareholding
of between 20 and 50% of the voting rights. Investments in associ-
ated companies are accounted for in accordance with the equity
method.

Foreign currency translation
Foreign currency transactions are translated into the functional
currency using the exchange rate prevailing at the date of each
transaction.

Monetary assets and liabilities denominated in foreign currencies
are measured at year-end exchange rates and any exchange-rate
diﬀ erences are included in income for the period, except when
deferred in other comprehensive income for the eﬀ ective part of
qualifying net investment hedges.

The consolidated ﬁ nancial statements are presented in Swedish
krona (SEK), which is the Parent Company’s functional currency and
the Group’s presentation currency according to IAS 21.

The balance sheets of foreign subsidiaries are translated into SEK

at year-end closing rates. The income statements are translated at
the average rates for the year. Translation diﬀ erences thus arising
are included in other comprehensive income.

Exchange rates

SEK

2022

2021

Exchange rate

Average

End of period

Average

End of period

ARS

AUD

BRL

CAD

CHF

CLP

CNY

EUR

GBP

HUF

MXN

RUB

THB

USD

0.0785

0.0589

0.0904

0.0880

7.00

1.95

7.73

10.59

0.0116

1.50

10.63

12.45

0.0272

0.5028

0.1495

0.2881

10.09

7.09

2.00

7.70

11.29

0.0121

1.51

11.12

12.54

0.0277

0.5333

0.1426

0.3019

10.43

6.42

1.59

6.82

9.40

6.57

1.62

7.07

9.88

0.0113

0.0107

1.33

10.15

11.78

0.0283

0.4216

0.1159

0.2685

8.57

1.42

10.24

12.21

0.0277

0.4407

0.1207

0.2705

9.04

New or amended accounting standards applied in 2022
The following amended accounting standards were applicable from
January 1, 2022: Property, Plant and Equipment: Proceeds before
Intended Use – Amendments to IAS 16. Onerous Contracts – Cost of
Fulﬁ lling a Contract – Amendments to IAS 37. Annual Impovements
IFRS Standards 2018–2020, and Reference to the Conceptual Frame-
work – Amendments to IFRS 3. Deferred Tax related to Assets and
Liabilities arising from a Single Transaction – amendments to IAS 12,

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

and Disclosure of accounting Policies – Amendements to IAS 1 and
IFRS Practice Statement 2. The amendments listed above did not
have any material impact on Electrolux ﬁ nancial statements.

The carrying amount of property, plant and equipment at year-end
2022 amounted to SEK 29,876m. The carrying amount for goodwill at
year-end 2022 amounted to SEK 7,081m.

New or amended accounting standards to be applied after 2022
Certain new accounting standards, amendments to accounting
standards and interpretations have been published that are not
mandatory for December 31, 2022, reporting periods and have not
been early adopted by Electrolux. These Standards, amendments
of interpretations are not expected to have a material impact on
Electrolux in the current or future reporting periods and on foreseeble
future transactions.

Critical accounting policies and key sources of estimation
uncertainty
Use of estimates
Management has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure of
contingent assets and liabilities to prepare the ﬁ nancial statements
in conformity with IFRS. Actual results may diﬀ er from these estimates
under diﬀ erent assumptions or conditions. Below, Electrolux has
summarized the accounting policies that require more subjective
judgement by management in making assumptions or estimates
regarding the eﬀ ects of matters that are inherently uncertain.

Asset impairment and useful lives
Non-current assets, including goodwill, are evaluated for impair-
ment yearly or whenever events or changes in circumstances indi-
cate that the carrying amount of an asset may not be recoverable.
An impaired asset is written down to its recoverable amount, being
the higher of fair value less costs of disposal and value in use.
Impairment charges are recorded when the information shows that
the carrying amount of an asset is not recoverable. In many cases,
market value is not available and the fair value has been estimated
by using the discounted cash ﬂ ow method based on expected future
results. Diﬀ erences in the estimation of expected future results and
the discount rates used may result in diﬀ erent asset valuations. The
yearly impairment testing of goodwill and other intangible assets
with indeﬁ nite useful lives, including sensitivity analyses performed,
has not indicated any impairment. See Note 13 for more information.
Property, plant and equipment are depreciated on a straight-line
basis over their estimated useful lives. Useful lives for property, plant
and equipment are estimated between 10 and 40 years for buildings,
15 years for land improvements and between 3 and 15 years for
machinery, technical installations and other equipment. Manage-
ment regularly reassesses the useful lives of all signiﬁ cant assets.

Deferred taxes
In the preparation of the ﬁ nancial statements, Electrolux estimates
the income taxes in each of the tax jurisdictions in which the Group
operates as well as any deferred taxes based on temporary diﬀ er-
ences. Deferred tax assets relating mainly to tax loss carry-forwards,
energy-tax credits and temporary diﬀ erences are recognized in
those cases when future taxable income is expected to permit the
recovery of those tax assets. Changes in assumptions in the projec-
tion of future taxable income as well as changes in tax rates could
result in signiﬁ cant diﬀ erences in the valuation of deferred taxes. As
of December 31, 2022, Electrolux had a net amount of SEK 7,672m
recognized as deferred tax assets in excess of deferred tax liabilities.
As of December 31, 2022, the Group had tax loss carry-forwards and
other deductible temporary diﬀ erences of SEK 4,401m, which have
not been included in the computation of deferred tax assets.

Current taxes
Electrolux estimates regarding uncertain outcome of tax audits
and tax litigations are based on management’s best estimates and
recorded in the balance sheet. These estimates might diﬀ er from the
actual outcome and the timing of the potential eﬀ ect on Electrolux
cash ﬂ ow is normally not possible to predict.

In recent years, tax authorities have been focusing on transfer
pricing. Transfer-pricing matters are normally very complex, include
high amounts and it might take several years to reach a conclusion.

Trade receivables and calculation of loss allowance
Receivables are reported net of provision for expected credit losses.
The net value reﬂ ects the amounts that are expected to be collected,
based on circumstances known at the balance sheet date. Changes
in circumstances such as higher than expected defaults or changes
in the ﬁ nancial situation of a signiﬁ cant customer could lead to
signiﬁ cantly diﬀ erent valuations.

When measuring expected credit loss the Group uses reasonable

and supportable forward looking information, which is based on
assumptions regarding the future movement of diﬀ erent economic
drivers and how these drivers will aﬀ ect each other. A sensitivity
analysis is presented in Note 17.

At year-end 2022, trade receivables, net of provisions for expected

credit losses, amounted to SEK 21,487m. The total provision for
expected credit losses at year-end 2022 was SEK 493m.

Post-employment beneﬁ ts
Electrolux sponsors a number of deﬁ ned contribution and deﬁ ned
beneﬁ t pension plans for its employees. The pension calculations,
referring to deﬁ ned beneﬁ t plans, are based on actuarial assump-
tions regarding discount rates, mortality rates, as well as future salary
and pension increases. The calculation of the pension obligation
also depends on the discount rate. Changes in assumptions directly
aﬀ ect the deﬁ ned beneﬁ t obligation, service cost, interest income
and expense. The discount rate used for the calculation of expenses
during 2022 was 3.67% in average. Sensitivities for the main assump-
tions are presented in Note 22.

Restructuring
Restructuring charges include required write-downs of assets and
other non-cash items, as well as estimated costs for personnel
reductions and other direct costs related to the termination of the
activity. The charges are calculated based on detailed plans for
activities that are expected to improve the Group’s cost structure
and productivity. In general, the outcome of similar historical events
in previous plans are used as a guideline to minimize these uncer-
tainties. The total provision for restructuring at year-end 2022 was
SEK 2,222m.

Warranties
As is customary in the industry in which Electrolux operates, many
of the products sold are covered by an original warranty, which is
included in the price and which extends for a predetermined period
of time. Provisions for this original warranty are estimated based
on historical data regarding service rates, cost of repairs, etc. As of
December 31, 2022, Electrolux had a provision for warranty commit-
ments amounting to SEK 2,416m.

Disputes
Electrolux is involved in disputes in the ordinary course of business.
The disputes concern, among other things, product liability, alleged
defects in delivery of goods and services, patent rights and other
rights and other issues on rights and obligations in connection with
Electrolux operations. Such disputes may prove costly and time con-
suming and may disrupt normal operations. In addition, the outcome
of complicated disputes is diﬃ cult to foresee. It cannot be ruled out
that a disadvantageous outcome of a dispute may prove to have a
material adverse eﬀ ect on the Group’s earnings and ﬁ nancial position.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Parent Company accounting principles
The Parent Company has prepared its Annual Report in compliance
with Swedish Annual Accounts Act (1995:1554) and recommendation
RFR2, Accounting for Legal Entities of the Swedish Financial Reporting
Board. RFR2 prescribes that the Parent Company in the Annual
Report of a legal entity shall apply all International Financial Reporting
Standards and interpretations approved by the EU as far as this is
possible within the framework of the Annual Accounts Act, taking
into account the connection between accounting and taxation. The
recommendation states which exceptions from IFRS and additions
that shall or can be made.

Shares in subsidiaries
Holdings in subsidiaries are recognized in the Parent Company
ﬁ nancial statements according to the cost method of accounting.
The value of subsidiaries are tested for impairment when there is
an indication of a decline in the value.

Foreign currency translations
The Annual Report is presented in Swedish krona (SEK), which is the
Parent Company’s accounting currency according to the Swedish
Annual Accounts Act. One of the companies operating on a commis-
sion basis for AB Electrolux has euro as its functional currency. The
balance sheet of the commissioner company has been translated
into SEK at year-end rate. The income statement has been translated
at the average rate for the year. Translation diﬀ erences thus arising
have been included in Other comprehensive income.

Anticipated dividends
Dividends from subsidiaries are recognized in the income state-
ment after decision by the annual general meeting in the respective
subsidiary. Anticipated dividends from subsidiaries are recognized
in cases where the Parent Company has exclusive rights to decide
on the size of the dividend and the Parent Company has made a
decision on the size of the dividend before the Parent Company has
published its ﬁ nancial reports.

Taxes
The Parent Company’s ﬁ nancial statements recognize untaxed
reserves including deferred tax. The consolidated ﬁ nancial state-
ments, however, reclassify untaxed reserves to deferred tax liability
and equity. Tax on group contribution is reported in the income
statement.

Group contributions
Group contributions provided or received by the Parent Company
are recognized as appropriations in the income statement. Share-

holder contributions provided by the Parent Company are recog-
nized in shares and participations which are subject to impairment
tests as indicated above.

Pensions
The Parent Company reports pensions in the ﬁ nancial statements
in accordance with the exemption in RFR2. According to RFR2, IAS
19 shall be adopted regarding supplementary disclosures when
applicable.

Intangible assets
The Parent Company amortizes trademarks in accordance with
RFR2. The Electrolux trademark in North America is amortized over
40 years using the straight-line method. All other trademarks are
amortized over their useful lives, estimated to 10 years, using the
straight-line method.

Development reserve
The Parent Company’s ﬁ nancial statements recognize a develop-
ment reserve in compliance with the Swedish Annual Accounts Act
(1995:1554). An amount equal to the period’s total expenditure of
own developed intangible assets has been transferred from unre-
stricted equity to the development reserve within restricted equity.

Appropriations and untaxed reserves
The Parent Company reports additional ﬁ scal depreciation, required
by Swedish tax law, as appropriations in the income statement. In
the balance sheet, these are included in untaxed reserves.

Leases
All lease agreements where the Parent Company is a lessee are
reported in accordance with the exemption to IFRS 16 in RFR2,
i.e. right-of-use assets and lease liabilities are not reported in the
balance sheet. The leasing fee is recognized as an expense on a
straight-line basis over the lease period.

Critical judgements and uncertainties
Valuation of shares in subsidiaries is an area involving judgement
and/or uncertainties for the Parent Company, in addition to the
applicable critical accounting policies and key sources of estima-
tion presented for the Group.

Financial statements presentation
The Parent Company presents the income statement and the
balance sheet in compliance with the Swedish Annual Accounts
Act (1995:1554) and recommendation RFR2.

Note 2 Financial risk management

Financial risk management
The Group is exposed to a number of risks from liquid funds, trade
receivables, customer-ﬁ nancing receivables, payables, borrowings,
commodities and foreign exchange. The risks include:
• Liquidity risk from the Group’s liquidity requirements
• Interest-rate risk on liquid funds and borrowings
• Financing risk in relation to the Group’s capital requirements
• Foreign-exchange risk on commercial ﬂ ows and net investments
in foreign subsidiaries
• Commodity-price risk aﬀ ecting the expenditure on raw materials
and components; and
• Credit risk relating to ﬁ nancial and commercial activities

Comparative information regarding risks described and quantiﬁ ed
in this note are for total Group, including discontinued operations,
unless otherwise stated.

The Board of Directors of Electrolux has established several

policies for the Group (hereinafter all policies are referred to as the
Financial Policy) to monitor and manage the ﬁ nancial risks relating
to the operations of the Group.

Group Treasury in Stockholm, supported by three regional treasury

centers located in Asia, North America, and Latin America, provide
services to the business, co-ordinate access to ﬁ nancial markets,
monitor and manage the ﬁ nancial risks through internal risk reports.
The Group seeks to minimize the eﬀ ects of these risks by using
derivatives to hedge the exposures. The Group’s Financial Policy
governs the use of ﬁ nancial derivatives and provide principles for
the management of foreign exchange risk, interest rate risk, credit
risk, the use of ﬁ nancial derivatives and non-derivative ﬁ nancial
instruments, and the investment of excess liquidity. The internal
auditors review on a continuous basis compliance with policies and
exposure limits. Policy compliance is reported on a monthly basis
by Group Treasury to the Board of Directors.

Liquidity risk
Liquidity risk is deﬁ ned as the risk of the Group not being able to
meet its payment obligations due to lack of liquidity or due to the
inability to convert assets into liquidity without incurring a loss.

Liquid funds as deﬁ ned by the Group consist of cash and cash
equivalents, short-term investments, ﬁ nancial derivative assets,
prepaid interest expenses and accrued interest income. Electrolux
Financial Policy stipulates that the level of liquid funds including
unutilized committed credit facilities shall correspond to at least 2.5%
of annualized net sales, at year-end 2022 this level was 24.9% (24.4).
In addition, net liquid funds deﬁ ned as liquid funds less short-term

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

borrowings shall exceed zero, taking into account ﬂ uctuations arising
from acquisitions, divestments, and seasonal variations. At year-end
2022 the Group had net liquid funds of SEK 8,724m (5,560), well
above target. Liquid funds shall be deposited in bank accounts or
invested in instruments with high liquidity and issued by creditworthy
issuers. See separate section “Credit risk in ﬁ nancial activities” within
this note. The liquidity risk is considered low at the end of 2022 given
the size of liquid funds available.

Interest-rate risk on liquid funds and borrowings
Interest-rate risk refers to the adverse eﬀ ects of changes in interest
rates on the Group’s income. The main factors determining this risk
include the interest-ﬁ xing period.

Interest-rate risk in liquid funds
Liquidity is either deposited in bank accounts or invested in instru-
ments, normally with maturities between 0 and 3 months. A down-
ward shift in the yield curves of one percentage point would reduce
the Group’s interest income by approximately SEK 171m (108). For
more information, see Note 18.

Interest-rate risk in borrowings
The debt ﬁ nancing of the Group is managed by Group Treasury in
order to ensure eﬃ ciency and risk control. Debt is primarily raised
at Parent Company level and transferred to subsidiaries through
internal loans or capital injections. In this process, swap instruments
are used to convert the funds to the required currency. Short-term
ﬁ nancing is also undertaken locally in subsidiaries where there are
capital restrictions. The Group’s borrowings contain no ﬁ nancial
covenants that can trigger premature cancellation of the loans.
For more information, see Note 18.

Group Treasury manages the long-term loan portfolio to keep the

average interest-ﬁ xing period between 0 and 3 years. Derivatives,
such as interest-rate swap agreements, are used to manage the
interest-rate risk by changing the interest from ﬁ xed to ﬂ oating or vice
versa. For those derivatives Electrolux practice hedge accounting,
which has aﬀ ected other comprehensive income by SEK 5m (–2) during
2022. On the basis of 2022 long-term interest-bearing borrowings with
an average interest ﬁ xing period of 2.3 years (1.2), a one percentage
point shift in interest rates would impact the Group’s interest expenses
by approximately SEK +/–162m (53) and the other comprehensive
income by approximately SEK +/-1m (2). This calculation is based on
a parallel shift of all yield curves simultaneously by one percentage
point. Electrolux acknowledges that the calculation is an approxima-
tion and does not take into consideration the fact that the interest rates
on diﬀ erent maturities and diﬀ erent currencies might change diﬀ erently.

The Group’s exposure to the reform of IBOR-rates is limited. At year-
end 2022, the Group had one ﬂ oating rate loan denominated in
USD maturing after the indicated USD LIBOR cessation date, see
Note 18.

Capital structure and credit rating
The Group deﬁ nes its capital as equity stated in the balance sheet
including non-controlling interests. On December 31, 2022, the
Group’s capital amounted to SEK 16,449m (18,610). The Group’s
objective is to have a capital structure resulting in an eﬃ cient
weighted cost of capital and suﬃ cient credit worthiness where oper-
ating needs and the needs for potential acquisitions are considered.
To achieve and keep an eﬃ cient capital structure, the Financial
Policy states that the Group’s long-term ambition is to maintain a
long-term rating within a safe margin from a non-investment grade.
In December 2022, S&P Global Ratings conﬁ rmed the Group’s rating
as shown in the table below.

Rating

Long-term
debt

Outlook

Short-term
debt

Short-term
debt, Nordic

S&P Global Ratings

A– Negative

A–2

K–1

When monitoring the capital structure, the Group uses diﬀ erent key
ﬁ gures, which are consistent with methodologies used by rating
agencies and banks. The Group manages the capital structure and
makes adjustments to adapt to changes in economic conditions. In
order to maintain or adjust the capital structure, the Electrolux Board
of Directors may propose to adjust dividends paid to sharehold-
ers, return capital to shareholders, buy back own shares, issue new
shares, or sell assets to reduce debt.

Financing risk
Financing risk refers to the risk that ﬁ nancing of the Group’s capital
requirements and reﬁ nancing of existing borrowings could become
more diﬃ cult or more costly. This risk can be decreased by ensuring
that maturity dates are evenly distributed over time, and that total
short-term borrowings do not exceed liquidity levels. The ﬁ nancial
net debt, total borrowings less liquid funds, excluding seasonal
variances, shall be long-term according to the Financial Policy. The
Group’s goals for long-term borrowings include an even spread
of maturities. The average time to maturity shall be at least 2 years
and a maximum of SEK 5,000m of the long-term borrowings may
mature during a 12-month period. During 2022, the Board of Directors
approved exceptions from these targets in order to ensure adequate
long-term funding during the global downturn in the economy.

Foreign exchange risk
Foreign exchange risk refers to the adverse eﬀ ects of changes in
foreign exchange-rates on the Group’s income and equity. In order
to manage such eﬀ ects, the Group hedges these risks within the
framework of the Financial Policy. Electrolux uses external loans
denominated in foreign currencies as well as various derivatives
to facilitate internal lending and to manage the foreign exchange
exposure for the Group. The Group’s overall currency exposure is
managed centrally.

Transaction exposure from commercial ﬂ ows
The Financial Policy stipulates to what extent commercial ﬂ ows are
to be hedged. Hedging with currency derivatives is, in most cases,
applied on invoiced ﬂ ows. This means that currency exposures from
forecasted ﬂ ows should normally be managed by natural hedges,
price adjustments and cost reductions. However, in cases when
both price and volume is committed, Electrolux may hedge also
forecasted ﬂ ows. For those derivatives Electrolux practice hedge
accounting, which has aﬀ ected other comprehensive income by
SEK 34 m (-37) during 2022.

Group subsidiaries cover their risks in commercial currency ﬂ ows

mainly through the Group’s treasury centers. Group Treasury thus
assumes the currency risks and covers such risks externally by the
use of currency derivatives.

The Group’s geographically widespread production reduces the

eﬀ ects of changes in exchange-rates. The remaining transaction
exposure is either related to internal sales from producing entities to
sales companies or external exposures from purchasing of compo-
nents and input material for the production paid in foreign currency.
These external imports are often priced in U.S. dollar (USD). The
global presence of the Group, however, leads to a signiﬁ cant netting
of the transaction exposures. For additional information on expo-
sures and hedging, see Note 18.

Translation exposure from consolidation of entities outside
Sweden
Changes in exchange-rates also aﬀ ect the Group’s income in con-
nection with translation of income statements of foreign subsidiaries
into SEK. Electrolux does not hedge such exposure. The translation
exposures arising from income statements of foreign subsidiaries are
included in the sensitivity analysis mentioned below.

Foreign-exchange sensitivity from transaction and
translation exposure
The major net export currencies that Electrolux is exposed to are
the U.S. dollar, the Chinese renminbi and the euro. The major import
currencies that Electrolux is exposed to are the British pound, the

CEO statement

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Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Australian dollar, the Canadian dollar and the Brazilian real. These
currencies represent the majority of the exposures of the Group, but
are largely oﬀ setting each other as diﬀ erent currencies represent net
inﬂ ows and outﬂ ows. A change up or down by 10% in the value of
each currency against the Swedish krona would aﬀ ect the Group’s
proﬁ t and loss for one year by approximately SEK +/– 320m (730),
as a static calculation. The model assumes the distribution of earn-
ings and costs eﬀ ective at year-end 2022 and does not include any
dynamic eﬀ ects, such as changes in competitiveness or consumer
behavior arising from such changes in exchange rates.

Sensitivity analysis of major currencies

Risk

Currency

AUD/SEK

BRL/SEK

GBP/SEK

CAD/SEK

CHF/SEK

PLN/SEK

THB/SEK

CNY/SEK

EUR/SEK

USD/SEK

Change

Proﬁ t or loss impact
2022

Proﬁ t or loss impact
2021

–10%

–457

–378

–279

–442

–330

–221

132

169

752

1 881

–388

–371

–303

–305

–238

–132

228

236

324

1,070

Exposure from net investments (balance sheet exposure)
The net of assets and liabilities in foreign subsidiaries constitute a
net investment in foreign currency, which generates a translation
diﬀ erence in the consolidation of the Group. This exposure can have
an impact on the Group’s total comprehensive income, and on
the capital structure. The exposure is normally handled by natural
hedges including matching assets with debts in the same currency.
In exceptional cases the exposure can be managed by currency
derivatives implemented on Group level and carried out by the
Parent Company. For those derivatives Electrolux practice hedge
accounting, which has aﬀ ected other comprehensive income by
SEK 0m (0) during 2022. There were no outstanding net investment
hedges at year-end 2022.

A change up or down by 10% in the value of each currency against

the Swedish krona would aﬀ ect the net investment of the Group by
approximately SEK +/– 3,197m (3,292), as a static calculation at
year-end 2022.

Commodity-price risks
Commodity-price risk is the risk that the cost of direct and indirect
materials could increase as underlying commodity prices rise in
global markets. The Group is exposed to ﬂ uctuations in commodity
prices through agreements with suppliers, whereby the price is linked
to the raw material price on the world market. This exposure can
be divided into direct commodity exposure, which refers to pure
commodity exposures, and indirect commodity exposure, which is
deﬁ ned as exposure arising from only part of a component. Com-
modity-price risk is mainly managed through contracts with the
suppliers. A change in price up or down by 10% in steel would aﬀ ect
the Group’s proﬁ t or loss with approximately SEK +/– 1,300m (900)
and in plastics with approximately SEK +/– 600m (500), based on
volumes in 2022.

Credit risk
Credit risk in ﬁ nancial activities
Exposure to credit risks arises from the investment of liquid funds,
and derivatives. In order to limit exposure to credit risk, the Group
has adopted a policy of only dealing with creditworthy counter-
parties. A counterpart list has been established, which speciﬁ es the
maximum allowable exposure in relation to each counterpart. The
Group only transacts investments of liquid funds and derivatives
with issuers and counterparts holding a long-term rating of at least
A- credit rating, as these are considered to have low credit risk for
the purpose of impairment assessment. S&P Global Ratings or similar
independent rating agencies supply the credit rating information.
Group Treasury can allow exceptions from this rule, e.g., to enable
money deposits within countries rated below A-, but this represents
only a minor part of the total liquidity in the Group.

The Group strives for master netting agreements (ISDA) with all
counterparts for derivative transactions. Assets and liabilities will
only be netted from a credit risk perspective for counterparts with
valid ISDA-agreements. As a result of these policies and limitations,
the credit risk from external ﬁ nancial activities is not material.

Impact from netting agreements on gross exposure from
derivatives

December 31, 2022

Interest and currency risk
derivatives reported as assets

Interest and currency risk
derivatives reported as liabilities

December 31, 2021

Interest and currency risk
derivatives reported as assets

Interest and currency risk
derivatives reported as liabilities

Impact
of netting
agree-
ments

Gross
amount

Net

position Change

–91

92%

578

–91

486

16%

204

–49

155

24%

–49

66%

Group Treasury manage a majority of the subsidiary ﬁ nancing
through internal loans from the Parent Company, there is a material
credit risk originating from internal loans. The Parent Company cal-
culates expected credit losses (ECL) from lending to its subsidiaries.
The model deﬁ nes if it is the entity, or the country where the entity is
situated, that accounts for the primary source of credit risk. The credit
risk is translated into a probability of default factor based on S&P
Global Ratings historic values. The lending exposure is multiplied by
the probability of default and a loss given default to result in the ECL
of the subsidiary. The model allows for a management overlay to
adjust the ECL provision, if management possesses information that
qualiﬁ es for such an adjustment. Management overlay takes forward
looking factors into consideration.

The opening expected credit loss provision in the Parent Company

for 2022 amounted to SEK 74m (128) primarily originating from inter-
nal loans to Argentina. The closing expected credit loss provision in
the Parent Company amounted to SEK 69m (74). ECL provision for
loans made to companies with a minority shareholding amounted to
SEK 6m (7).

To reduce the settlement risk in foreign exchange transactions
done with banks, Group Treasury uses Continuous Linked Settlement
(CLS). CLS eliminates temporary settlement risk since both legs of a
transaction are settled simultaneously.

Credit risk in trade receivables
Electrolux sells to a substantial number of customers in the form
of large retailers, buying groups and independent stores. Sales
are made on the basis of normal delivery and payment terms. The
Electrolux Group Credit Directive deﬁ nes how credit management
is to be performed in the Electrolux Group to achieve competitive

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

and professionally performed credit sales, limited bad debts, and
improved cash ﬂ ow and optimized proﬁ t. On a more detailed level,
it also provides a minimum level for customer and credit risk assess-
ment, clariﬁ cation of responsibilities and the framework for credit
decisions. The credit-decision process combines the parameters
risk/reward, payment terms and credit protection in order to obtain
as much paid sales as possible. In some markets, Electrolux uses
credit insurance as a mean of protection. For many years, Electrolux
has used the Electrolux Rating Model (ERM) to have a common and
objective approach to credit-risk assessment that enables more
standardized and systematic credit evaluations to minimize incon-
sistencies in decisions. The ERM is based on a risk/reward approach
and is the basis for the customer assessment. The Electrolux Rating
Model consists of three diﬀ erent parts: Customer and Market Infor-
mation; Warning Signals; and a Credit Risk Rating (CR2). Through
CR2 the customers are classiﬁ ed in risk categories.

Credit approvals and other monitoring procedures are also in
place to ensure that follow-up action is taken to recover overdue
debts. Furthermore, the Group reviews the recoverable amount of
each trade debt and debt investment on an individual basis at the
end of the reporting period to ensure that adequate loss allowance
is made for irrecoverable amounts. In this regard, management
considers that the Group’s credit risk is signiﬁ cantly reduced.

Trade receivables relate to a large number of customers, spread
across diverse geographical areas. However, there is a concentration
of large credit exposures on a number of customers in, primarily, the
U.S., Latin America and Europe. Concentration of credit risk related to
a single counterparty did not exceed 9.6% (9.9) of total trade receiv-
ables at any time during the year. For more information, see Note 17.

The Group deﬁ nes default as customers where signiﬁ cant ﬁ nancial
diﬃ culties have been identiﬁ ed , or when the receivable is more than
90 days past due, whichever occurs ﬁ rst. A receivable is written oﬀ
when there are indications of no realistic prospect of recovery or at
a 360 days overdue whichever occurs ﬁ rst. There is a limited use of
enforcement activities.

Note 3 Segment information

Reportable segments — Business areas
The Group’s operations are divided into four reportable segments:
Europe; North America; Latin America and Asia-Paciﬁ c, Middle East
and Africa.

All the segments are producing appliances for the consumer market

and products comprise mainly of refrigerators, freezers, cookers,
dryers, washing machines, dishwashers, microwave ovens, air condi-
tioners, vacuum cleaners and other small appliances.

The segments are regularly reviewed by the President and CEO,
the Group’s chief operating decision maker.

The segments are responsible for the operating results and the net

assets used in their businesses, whereas ﬁ nancial items and taxes,
as well as net debt and equity, are not reported per segment. The
operating results and net assets of the segments are consolidated
using the same principles as for the total Group. Operating costs not
included in the segments are shown under Group Common costs,
which mainly are costs related to group management activities
typically required to run the Electrolux Group.

Sales between segments are made on market conditions with

arm’s-length principles.

Net sales

Operating income

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East
and Africa

Group Common costs

Total

2022

2021

46,573 49,384

2022

683

47,021 40,468

–2,394

24,303

19,958

1,058

16,984

15,820

134,880 125,631

—

134,880 125,631

Financial items, net

Income after ﬁ nancial items

—

Inter-segment sales exist with the following split:

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Eliminations

2021

4,002

688

1,336

1,511

7,538

–737

6,801

–546

6,255

2021

1,644

363

1,638

3,647

1,308

655

–870

–215

–1,457

–1,672

2022

1,904

500

1,917

4,321

The segments are responsible for the management of the opera-
tional assets and their performance is measured at the same level,
while ﬁ nancing is managed by Group Treasury at group or country
level. Consequently, liquid funds, interest-bearing receivables,
interest-bearing liabilities and equity are not allocated to the
business segments.

Assets
December 31

Equity and
liabilities
December 31

Net assets
December 31

2022

2021

2022

2021

2022

2021

32,041 30,165
30,229 26,890
14,830

18,141

26,273 28,416
18,375 17,513
9,417 8,937

1,749
5,768
11,854 9,376
8,724 5,893

13,821
12,722

12,579
10,175

7,679
7,451
5,141 4,893

6,370 4,900
7,581 5,282

106,953 94,639 66,657 67,437 40,297 27,201
—
—

17,800 11,236

—

185

—

—
—

— 37,813 15,881
4,264 3,055
—

2,164
—

1,732

1,919 2,623
— 16,449 18,610
127,102 107,607

127,102 107,607

—

—
—

—
—
—

—

—
—

—
—
—

Europe
North America
Latin America
Asia-Paciﬁ c,
Middle East
and Africa
Other1)
Total
operating assets
and liabilities
Liquid funds
Long-term
ﬁ nancial
receivables
Total
borrowings
Lease liabilities
Pension assets
and liabilities
Equity
Total

1) Includes common functions and tax items.

Depreciation and
amortization

Capital
expenditure

Cash ﬂ ow1)

2022

2021

2022

2021

2022

2021

1,787
1,934
617

1,520
1,455
483

3,310
1,738
979

2,787
1,311
933

–2,776 3,700
–966
–2,365
20
–585

682
371

669
363

850
512

727
285

214
–603

839
–392

—

–367 –1,006

—
—

—
—
5,390 4,489

—
—

— –1,238
—
7,389 6,043

–470
–1,514 –1,480
244
–9,236

Europe
North America
Latin America
Asia-Paciﬁ c,
Middle East
and Africa
Other2)
Acquisitions/
Divestments
Financial items
paid
Taxes paid
Total

1) Cash ﬂ ow from operations and investments.
2) Includes common functions.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Geographical information

USA

Brazil

Germany

Australia

Canada

United Kingdom

Switzerland

France

Sweden (country of domicile)

Poland

Other

Total

Net sales1)

2022

2021

42,242 36,540

16,812

13,243

6,076

5,961

5,117

4,289

4,025

3,922

3,621

3,304

6,169

5,531

4,211

4,167

3,356

4,413

4,058

3,173

39,511 40,253

134,880 125,631

1) Revenues attributable to countries on the basis of customer location.

Tangible and intangible ﬁ xed assets located in the Group’s country
of domicile, Sweden, amounted to SEK 5,287m (4,503). Tangible and
non-tangible ﬁ xed assets located in all other countries amounted to
SEK 40,799m (34,380). Individually material countries in this aspect
are USA with SEK 12,673m (10,608), Italy with SEK 6,977m (6,115) and
Poland with SEK 3,768m (3,021) respectively.

No single customer of the Group represents 10% or more of the

external revenue.

Note 4 Revenue recognition

Revenue recognition
Electrolux manufactures and sells appliances mainly in the whole-
sale market to customers being retailers. Electrolux products include
refrigerators, freezers, dishwashers, washing machines, dryers, cookers,
microwave ovens, vacuum cleaners, air conditioners and small
domestic appliances.

Sales are recorded net of value-added tax, speciﬁ c sales taxes,
returns, and trade discounts. Revenues arise from sales of ﬁ nished
products and services.

Sale of ﬁ nished products including spare parts and accessories
Sales of products are revenue recognized at a point in time i.e. when
control of the products has transferred, being when the products are
delivered to the customer. Delivery occurs when the products have
been shipped to the speciﬁ c location, the risks of obsolescence

and loss have been transferred to the customer, and either the
customer has accepted the products in accordance with the sales
contract, the acceptance provisions have lapsed, or there is objec-
tive evidence that all criteria for acceptance have been satisﬁ ed. In
practice, transfer of control and thus revenue recognition normally
depends on the contractual incoterm.

Sale of licenses in a separate contract
Electrolux is licensing trade names to other companies. The license
provides the licensee a right to access intellectual property through-
out the license period and revenue is recognized over time. The most
common license type for Electrolux is sales based royalty where the
revenue is recognized when the sales occur.

Transaction price — Volume discounts
The products are often sold with volume discounts based on aggre-
gate sales over a speciﬁ c time period, normally 3–12 months. Reve-
nue from these sales is recognized based on the price speciﬁ ed in
the contract, net of the estimated volume discounts. Accumulated
experience is used to estimate and provide for the discounts using
either the expected value method or an assessment of the most likely
amount. Revenue is only recognized to the extent that it is highly
probable that a signiﬁ cant reversal will not occur. A contract liability
is recognized for expected volume discounts payable to customers
in relation to sales made until the end of the reporting period. The
estimated volume discount is revised at each reporting date.

Payments to customers
Agreements can be made with customers to compensate for various
services or actions the customer takes. This relates to e.g. agree-
ments under which Electrolux agrees to compensate the customer
for e.g. marketing activities undertaken by the customer. The main
rule is that if the payment is related to a distinct service or product
it shall be accounted for as a purchase of that service or product. If
not it shall be deducted from the related revenue stream. In prac-
tice, if the contract doesn’t include any requirement of follow up
from Electrolux side and/or reporting back from the customer that
the service is performed, the payment shall be accounted for as a
reduction of revenue.

Receivables, contract assets and contract liabilities
A receivable is recognized when the goods are delivered as this is
the point in time that the consideration is unconditional because
only the passage of time is required before the payment is due. If the
consideration is conditional to additional performance, a contract
asset is recorded.

If Electrolux receive prepayments from customer a contract liabil-

ity is recorded.

Sale of goods and services combined
When contracts include both goods and services the sales value is
split into the separate performance obligations as applicable and
revenue is recognized when each of the separate performance
obligations is satisﬁ ed. In general, types of performance obligations
that may occur are products, spare parts, installation, service and
support and education.

Sale of services in a separate contract
Electrolux recognizes revenue from services related to installation of
products, repairs or maintenance service when control is transferred,
being over the time the service is provided. For service contracts
covering a longer period revenue is recognized on a linear basis
over the contract period.

Customer incentives
Customer incentives include promotional activities as e.g. coupons,
gift cards, free products and loyalty/cash points. Customer incentives
are additional performance obligations providing the customer with
a material right, i.e. the customer is purchasing a product or service
in the original purchase and the right to a free or discounted product
or service in the future. The customer is eﬀ ectively paying in advance
for future products or services. Revenue is therefore allocated to two
performance obligations, the originally purchased product and the
product bought in the future (payment in advance). A liability is rec-
ognized for the rebate until it’s used or expires unused.

Within Electrolux a common promotional activity is to oﬀ er free
products in combination with other sales. When the free products
are related to the Electrolux product range, revenue is allocated to
both the ordinary products sold and the free products.

When the free products are unrelated to the Electrolux product
range, the free products are recognized as marketing/sales cost.

Warranties
The most common warranty for Electrolux is to replace a faulty prod-
uct under legal and common practice warranty terms. In those cases
warranty is recognized as a provision. Electrolux also sells extended
warranty where the revenue is recognized during the warranty period,
which usually starts after the legal warranty period. Sometimes
warranty oﬀ ered is including a service part and if it is diﬃ cult to
separate the warranty from the service the two are bundled together
and revenue is recognized over the warranty period.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Sales with a right of return
A right of return is not a separate performance obligation, but it
aﬀ ects the transaction price for the transferred goods. Returns rights
are commonly granted in the retail and consumer industry.

Regarding a right of return which follows from legislation, statutory

requirements, business practice or is stipulated in the contract with
the customer, revenue is not recognized for goods expected to be
returned. Instead, a liability is recognized for expected refunds to
customers. An asset is also recorded for the expected returned item.
The estimated amount of returned goods in each sale with a right of
return, is based on a probability-weighted approach or most likely
outcome, whichever is most predictive. The estimate is revised on
each reporting date.

Principal versus agent
In some countries Electrolux acts as an agent, i.e. Electrolux
arranges for goods or services to be provided by an external sup-
plier to the customer. Electrolux records as revenue the commission
fee earned for facilitating the transfer of goods or service or the net
amount of consideration that the company retains after paying the
other party the consideration received in exchange for the goods
or services to be provided by that party.

Freight charges
In most cases freight is included in the price of the product sold and
revenue is recognized at the same time as for the product.

Consignment stock or sell-through arrangement
For some customers Electrolux keeps the inventory of products in
the warehouse of the customer or in the customer’s outlet. Transfer of
control of the products are done when the customer lifts the product
from the warehouse or when the product is sold to the end consumer.
Electrolux recognizes revenue when the control has been transferred
or when there is a legal right of forcing a sales transaction.

Revenue types and ﬂ ows
The vast majority of the Group’s revenues of SEK 134,880m (125,631)
during the year consisted of product sales. Revenue from service
activities amounted to SEK 2,240m (1,950). The Group’s net sales
in Sweden amounted to SEK 3,621m (4,058). Exports from Sweden
during the year amounted to SEK 41,307m (43,717), of which SEK
37,124m (39,655) were to Group subsidiaries. The major part of the
Swedish export comes from two of the Swedish entities acting as
buying/selling hubs for the European business meaning that most
of the European product ﬂ ows are routed via these entities.

Disaggregation of revenue

2022

2021

2022

2021

Group

Parent Company

Product Areas

Taste

Care

Wellbeing

Total

85,895

77,457

22,871

22,820

38,661

36,415

16,625

17,687

10,324

11,758

2,567

3,298

134,880 125,631

42,063 43,805

Disaggregation of revenue
Electrolux manufactures and sells appliances mainly in the wholesale
market to customers being retailers. Electrolux products include
refrigerators, freezers, dishwashers, washing machines, dryers,
cookers, microwave ovens, vacuum cleaners, air conditioners and
small domestic appliances. Electrolux has four business areas with
focus on the consumer market. Sales of services are not material in
relation to Electrolux total net sales.

Geography and product category are considered important attri-
butes when disaggregating Electrolux revenue. The business areas,
also being the Group’s segments, are based on geography: Europe,
North America, Latin America and Asia-Paciﬁ c, Middle East and
Africa. In addition, the table to the right presents net sales by prod-
uct area Taste (cooking, refrigeration and freezer appliances), Care
(dish and laundry appliances) and Wellbeing (e.g. air conditioners,
cleaning appliances and small domestic appliances). Products
within all product areas are sold in each of the reportable segments,
i.e. the Business Areas.

The table below presents the opening and closing balances of contract liabilities as well as movements during the years.

Contract liabilities

Opening balance, January 1, 2021

Gross increase during the period

Paid to/settled with customer

Revenue recognized during the year

Contracts cancelled during the year

Acquisition/divestment of operations

Other changes to contract balances

Exchange-rate diﬀ erences

Closing balance, December 31, 2021

Gross increase during the period

Paid to/settled with customer

Revenue recognized during the year

Contracts cancelled during the year

Acquisition/divestment of operations

Other changes to contract balances

Exchange-rate diﬀ erences

Closing balance, December 31, 2022

Advances from
customers

Customer bonuses/
incentives

Short-term

Long-term

Prepaid income – service & warranty

139

1,153

—

–1,141

—

164

546

—

–517

—

–10

–14

170

5,696

22,244

–21,026

—

–175

—

290

7,106

22,332

–22,300

—

–337

–277

–126

693

7,091

200

206

—

–196

–9

—

218

175

—
–3221)

–22

—

319

—

–4

–9

—

–7

358

—

–2431)

—

–16

181

Total

6,354

23,646

–21,026

–1,341

–193

—

336

7,846

23,112

–22,300

–1,082

–359

–287

–151

737

7,516

1) Revenue recognized during the year on service and warranty contracts includes SEK 548m relating to contract obligations transferred to a third party in the U.S.

For the Parent Company contract liabilities as per December 31, amounted to SEK 275m (318).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 5 Operating expenses

Note 6 Other operating income and expenses

Other operating income

2022

2021

2022

2021

Group

Parent Company

Cost of goods sold and additional information on costs by nature
Cost of goods sold includes expenses for the following items:
• Finished goods i.e. cost for production and sourced products
• Warranty
• Environmental fees
• Warehousing and transportation
• Exchange-rate changes on payables and receivables and
the eﬀ ects from currency hedging

Operating expenses

2022

2021

Gain on sale of property,
plant and equipment

Settlement arbitration U.S.
tariﬀ case

Recovery of overpaid sales
tax

Direct material and components

50,828

42,919

Asbestos litigation

Sourced products

Depreciation and amortization

Salaries, other renumeration and employer
contribution

Other operating expenses

Total

18,033

5,390

18,413

4,489

Other

Total

23,818

20,423

37,026 32,586

135,095 118,830

Material items in 2022 amount to SEK -1,046m and contain a settle-
ment regarding the arbitration in u.s. tariﬀ case on washing machines
imported into the U.S. from Mexico in 2016/2017, a loss from the exit
from the Russian market, restructuring measures across business
areas and Group common cost, the divestment of the oﬃ ce facility in
Zürich, Switzerland and costs for a U.S. pension plan termination.

Material items in 2021 amount to SEK –727m and refer to business
area North America and an arbitration in U.S. tariﬀ case on washing
machines imported into the U.S. from Mexico in 2016/2017.

726

185

656

1,514

—

130

446

—

Material proﬁ t or loss items

Restructuring charge

Oﬃ ce sale, Switzerland

Arbitration/settlement U.S. tariﬀ case

2022

2021

–1,536

394

656

–350

–210

—

–727

—

–1,046

–727

2022

–863

–67

–547

431

–1,046

2021

—

–727

Group

Parent Company

Russia divestment

Other operating expenses

Russia divestment

US pension plan termination

Loss on sale of property,
plant and equipment

Arbitration in U.S. tariﬀ case

Impairment

Other

Total

2022

–350

–210

–37

—

–87

2021

—

–727

—

–95

2022

–250

—

–1,610

—

–684

–822

–1,860

2021

U.S. pension plan termination

—

–75

—

–75

Total

Eﬀ ect from material proﬁ t or loss items by function

Cost of goods sold

Selling expenses

Administration expenses

Other operating income and expenses

Total

Other operating income
and expenses, net

830

–376

–1,860

–75

Note 8 Leases

Note 7 Material proﬁ t or loss items in operating income

This note summarizes events and transactions with signiﬁ cant
eﬀ ects, which are relevant for understanding the ﬁ nancial perfor-
mance when comparing income for the current period with previous
periods, including items such as:
• Capital gains and losses from divestments of product groups or
major units
• Close-down or signiﬁ cant down-sizing of major units or activities
• Restructuring initiatives with a set of activities aimed at reshaping
major structure or process
• Signiﬁ cant impairment
• Other major non-recurring costs or income

The major part of the group’s lease arrangements are those under
which the group is a lessee. This applies to a large number of assets
such as warehouses, oﬃ ce premises, vehicles, and certain oﬃ ce
equipment. The group’s activities as a lessor are limited.

A contract is, or contains, a lease if the contract conveys the
right to control the use of an identiﬁ ed asset for a period of time
in exchange for consideration. Such an assessment is performed
at inception of a contract. An identiﬁ ed lease agreement is further
categorized by the group as either a short-term lease, a lease of a
low-value asset or a standard lease. Short-term leases are deﬁ ned
as leases with a lease term of 12 months or less. The group’s deﬁ nition
of low-value assets comprises all personal computers and laptops,
phones, oﬃ ce equipment and furniture and all other assets, inde-
pendent of asset class, of lower value when new. Lease payments
related to short-term leases and leases of low value assets are
recognized as operating expenses on a straight-line basis over the
term of the lease. The group applies the term ‘standard lease’ to all

Operating expenses
Cost of goods sold includes direct material and components
amounting to SEK 50,828m (42,919) and sourced products amount-
ing to SEK 18,033m (18,413). The depreciation and amortization
charge for the year amounted to SEK 5,390m (4,489). Costs for
research and development amounted to SEK 4,291m (3,620).

Government grants relating to expenses have been deducted

in the related expenses by SEK 65m (60).

Government grants related to assets have been recognized
as deferred income in the balance sheet and will be recognized
as income over the useful life of the assets. The remaining value
of these grants, at the end of 2022, amounted to SEK 484m (634).
The Group’s operating income includes net exchange-rate

diﬀ erences in the amount of SEK –388m (–78). The Group’s Swedish
factories accounted for 0.1% (0.2) of the total value of production.

Selling and administration expenses
Selling expenses include expenses for brand communication, sales
driving communication and costs for sales and marketing staﬀ . Selling
expenses also include the cost for impairment of trade receivables.
Administration expenses include expenses for general manage-
ment, controlling, human resources, shared service and IT expenses
related to the named functions. Administration costs related to
manufacturing are included in cost of goods sold.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

identiﬁ ed leases which are categorized as neither short-term leases
nor leases of a low-value asset. Thus, a standard lease is a lease
agreement for which a right-of-use asset and a corresponding lease
liability are recognized at commencement of the lease, i.e. when
the asset is available for use. The group’s right-of-use assets and its
long-term and short-term lease liabilities are presented as separate
line items in the consolidated statement of ﬁ nancial position.

Assets and liabilities arising from a lease are initially measured on

a present value basis. The lease liability is determined as the pres-
ent value of all future lease payments at the commencement date,
discounted using the Group’s calculated incremental borrowing rate
determined by country and contract duration (12–36 months, 37–72
months and >72 months).

The following lease payments are included in the measurement

of a lease liability:
• ﬁ xed payments, less any lease incentives,
• variable lease payments that are based on an index or a rate,
initially measured using the index or rate as at the commencement
date,
• amounts expected to be payable by the lessee under residual
value guarantees,
• the exercise price of a purchase option if reasonably certain to
exercise that option, and
• payments of penalties for terminating the lease, if the lease term
reﬂ ects the exercise of that option.

Variable lease fees that do not depend on an index or rate (including
property tax related to leased buildings) are not included in the
measurement of the lease liability. The related variable payments
are charged to the statement of comprehensive income as incurred.
The lease liability is subsequently measured by reducing the car-
rying amount to reﬂ ect the lease payments made and by increasing
the carrying amount to reﬂ ect interest on the lease liability, using
the eﬀ ective interest method.

A right-of-use asset is measured at cost comprising the amount
of the initial measurement of the lease liability, any lease payments
made at or before the commencement day, less any lease incentives
received, and any initial direct costs, and restoration costs (unless
incurred to produce inventories) with the corresponding obligation
recognized and measured as a provision under IAS 37. The right-of-
use asset is subsequently measured at cost less accumulated depre-
ciation, any impairment losses as well as any remeasurement of the
lease liability. Impairment of right-of-use assets is determined and
accounted for in accordance with IAS 36.

A remeasurement of the lease liability, and a corresponding

applicable adjustment to the related right-of-use asset, is performed
when:

• the lease term has changed or there is a change in the assessment
of exercise of a purchase option, in which case the lease liability
is remeasured by discounting the revised lease payments using
a revised discount rate,
• the lease payments change due to changes in an index or rate or
a change in expected payment under a guaranteed residual value,
in which cases the lease liability is remeasured by discounting the
revised lease payments using the initial discount rate (unless the
lease payments change is due to a change in a ﬂ oating interest
rate, in which case a revised discount rate is used), or
• a lease contract is modiﬁ ed and the lease modiﬁ cation is not
accounted for as a separate lease, in which case the lease liability
is remeasured by discounting the revised lease payments using a
revised discount rate.

A right-of-use asset is normally depreciated on a straight-line basis
over the shorter of the asset’s useful life and the lease term. However,
if ownership of the asset is reasonably certain to be transferred at
the end of the lease, the right-of-use asset is depreciated over its
useful life. Depreciation of a right-of-use asset starts at the com-
mencement date of the lease.

A lease payment related to a standard lease is accounted for
partly as amortization of the lease liability and partly as interest
expense in the statement of comprehensive income.

Lease components are separated from non-lease components
for leases regarding buildings (oﬃ ces, warehouses etc.). For leases
regarding other asset classes (machinery, vehicles etc.) the lease
components and any associated non-lease components are
accounted for as a single arrangement.

In determining the lease term, extension options are only included

if it is determined as reasonably certain to extend, being subject to
continuous re-assessment. Periods after termination options are only
included in the lease term if the lease is reasonably certain not to be
terminated. A lease term is reviewed if a signiﬁ cant event or a signiﬁ -
cant change in circumstances occurs which aﬀ ects the assessment.

Lease income and expenses

Income from subleasing

Lease expenses:

Short-term leases

Leases of low-value assets

Variable lease payments

Depreciation of right-of-use assets

Group

2022

–11

–36

–195

–997

2021

–12

–35

–182

–876

Total lease expenses in operating income

–1,239

–1,105

Lease liability interest expense

–143

–105

Total cash outﬂ ow for lease contracts amounts to SEK 1,345m (1,215)
for the year. The calculated average lease interest rate for the year
was 3.8% (3.5). Lease commitments related to leases not yet com-
menced per December 31 amount to SEK 73m (170).

Maturity proﬁ le of lease liabilities is presented in Note 18.
For the Parent Company, lease expenses for the year amounted
to SEK 64m (113) and future lease payment obligations at year end
amount to SEK 269m (208). The most relevant lease agreement for
the Parent company during 2022 was IT equipment..

Property, plant and equipment, right-of-use

Group

Land Buildings Machinery

Other
equipment

Total

Carrying amount

Opening balance,
January 1, 2021

Acquisition of
operations

Additions

Cancellations

Depreciation

Exchange rate
diﬀ erences

Closing balance,
December 31, 2021

Acquisition of
operations

Additions

Cancellations

Depreciation

Other changes

Exchange rate
diﬀ erences

Closing balance,
December 31, 2022

1,864

440

2,351

–1

—

–1

—

1,125

–198

–633

—

–8

–14

196

–9

–228

1,335

–215

–876

128

145

2,293

439

2,771

1,582

–17

–752

299

—

1,819

–27

–998

—

232

–10

–12

–232

340

3,405

467

3,905

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 9 Financial income and ﬁ nancial expenses

Note 10 Taxes

Group

Parent Company

The theoretical tax rate for the Group is calculated on the basis

For the Group in 2022, the majority of ‘Other’ relates to a capital
gains tax in Switzerland.

Current taxes

Deferred taxes

Taxes in income for the
period

Taxes related to OCI

Taxes included in total
comprehensive income

2022

2021

–1,028

–1,512

1,380

–65

352

–1,577

–409

–576

2022

–79

516

437

–1

2021

–169

–236

–405

–57

–2,153

436

–405

Deferred taxes include an eﬀ ect of SEK 14m (3) due to changes in tax
rates. The consolidated accounts include deferred tax liabilities of
SEK 138m (121) related to untaxed reserves in the Parent Company.

Theoretical and actual tax rates

Group

Parent Company

Theoretical tax rate

Non-taxable/non-deductible
income statement items, net

Non-recognized tax losses
carried forward

Utilized non-recognized tax
losses carried forward

Other changes in recognition
of deferred tax

Withholding tax

Other

Actual tax rate

2022

19.6

–2.7

–4.4

2021

25.8

0.5

0.6

1.2

–0.9

7.3

–5.4

5.4

21.0

–0.2

3.6

–4.2

25.2

2022

20.6

2021

20.6

39.3

–16.9

—

17.9

–11.7

–1.2

64.9

—

3.5

1.9

9.1

of the weighted total income after ﬁ nancial items per country,
multiplied by the local statutory tax rates.

Non-taxable/non-deductible items in the Parent Company are

mainly related to dividends from subsidiaries.

Non-recognized deductible temporary diﬀ erences
As of December 31, 2022, the Group had tax loss carry-forwards
and other deductible temporary diﬀ erences of SEK 4,401m (3,633),
which have not been included in computation of deferred tax assets.
The decision not to recognize certain temporary diﬀ erences is based
on an assessment where the likelihood of future utilization is evaluated
for each of the temporary items. The Group typically does not recognize
temporary diﬀ erences in situations where the ability to utilize these
is considered limited.

The non-recognized deductible temporary diﬀ erences will expire

as follows:

Non-recognized temporary diﬀ erences

2022

2023

2024

2025

2026

2027

And thereafter

Without time limit

Total

December 31

2022

n/a

141

4,026

4,401

2021

n/a

975

2,393

3,633

Financial income

Interest income

from subsidiaries

from others

Dividends from subsidiaries

Other ﬁ nancial income

Total

Financial expenses

Interest expenses

to subsidiaries

to others

Lease liability interest
expenses

Pension interest expenses,
net

Exchange-rate diﬀ erences,
net

Other ﬁ nancial expenses

Total

Financial items, net

Group

Parent Company

2022

2021

2022

2021

—

723

264

3,167

3,434

—

3,920

3,717

—

–586

–286

–241

–201

–68

–260

–143

–105

–843

–1,545

–1,457

–17

–8

–173

–589

–546

—

–665

–1,073

–49

–80

–457

2,847

3,260

Other ﬁ nancial expenses, for the Group and Parent Company,
include gains and losses on derivatives used for managing the
Group’s interest ﬁ xing. For information on ﬁ nancial instruments,
see Note 18. For more information on post-employment beneﬁ ts,
see Note 22.

Cash ﬂ ow: Financial items paid, net
Interest and similar items received amounted to SEK 71m (58),
interest and similar items paid amounted to SEK –1,206m (–430)
and other ﬁ nancial items received and paid amounted to
SEK –103m (–98).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

2022

2021

Note 11 Other comprehensive income

Deferred tax assets and liabilities,
net opening balance

Recognized in income statement

2022

2021

Recognized in other comprehensive income

Acquisitions of operations

Exchange rate diﬀ erences

Deferred tax assets and liabilities, net closing
balance

5,269

1,380

–411

—

702

5,588

–65

–584

329

6,940

5,269

As per December 31, the Parent Company reported deferred tax
assets amounting to SEK 824m (309) which mainly relate to unused
tax losses carried forward, pensions and restructuring provisions.

All amounts in SEKm unless otherwise stated

The tables below show deferred tax assets and liabilities at the end
of each reporting period and the change in net deferred tax assets
and liabilities.

Deferred tax assets and liabilities

Deferred tax assets:

Property, plant and equipment

Provision for Pension obligations

Provision for restructuring

Other provisions

Inventories

Accrued expenses and prepaid income

Unused tax losses carried forward

Tax credits

Other deferred tax assets

Deferred tax assets before netting of
deferred tax assets and liabilities

Netting of deferred tax assets and liabilities

Deferred tax assets, net

Deferred tax liabilities:

Property, plant and equipment

Other provisions

Inventories

Other taxable temporary diﬀ erences

Deferred tax liabilities before netting of
deferred tax assets and liabilities

Netting of deferred tax assets and liabilities

Deferred tax liabilities, net

374

334

466

888

107

616

994

327

422

230

817

579

422

3,650

2,915

2,903

1,711

10,342

7,505

–2,670

–1,760

7,672

5,746

952

622

1,764

926

339

890

3,402

2,236

–2,670

–1,760

731

476

Deferred tax assets and liabilities, net

6,940

5,269

Items that will not be reclassiﬁ ed to income
for the period:

Remeasurement of provisions for
post-employment beneﬁ ts

Opening balance, January 1

Gain/loss taken to other comprehensive income

Income tax relating to items that will not be
reclassiﬁ ed

Closing balance, December 31

Items that may be reclassiﬁ ed subsequently to
income for the period:

Cash ﬂ ow hedges

Opening balance, January 1

Gain/loss taken to other comprehensive income

Transferred to proﬁ t and loss on sale

Closing balance, December 31

Exchange diﬀ erences on translation of
foreign operations

Opening balance, January 1

Net investment hedge

Translation diﬀ erences

Closing balance, December 31

Income tax relating to items that may be
reclassiﬁ ed

Opening balance, January 1

Cash ﬂ ow hedges

Net investment hedges

Closing balance, December 31

Non-controlling interests, translation diﬀ erences

Group

2022

2021

2,333

1,614

172

2,746

–410

3,537

–584

2,333

–21

–37

–21

–3,303 –4,588

–41

–5

2,684

1,289

–660 –3,303

–11

–7

–10

–19

–11

Other comprehensive income, net of tax

3,887

3,419

Income taxes aﬀ ecting other comprehensive income during the year
amounted to a total of SEK –409m (-576) of which SEK –410m (–584)
related to remeasurement of provisions for post-employment beneﬁ ts
and SEK 1m (9) related to ﬁ nancial instruments for hedging.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 12 Property, plant and equipment, owned

Property, plant, and equipment are stated at histor-
ical cost less straight-line accumulated depreci-
ation, adjusted for any impairment charges. Land
is not depreciated as it is considered to have an
unlimited useful life. All other depreciation is
calculated using the straight-line method and

is based on the following estimated useful lives:
• Land
No depreciation
• Land improvements
0–15 years
• Buildings
10–40 years
• Machinery and technical installations 3–15 years
• Other equipment
3–10 years

Total net impairment for the year was SEK 6m
(—) on buildings and land, and SEK 19m (2) on
machinery and other equipment and SEK —m (—)
on plants under construction. The impairment 2022
relates to business areas Europe, North America
and 2021 to business areas Asia-Paciﬁ c, Middle
East and Africa.

Group

Acquisition costs
Opening balance, January 1, 2021
Acquired during the year
Acquisition of operations
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2021
Acquired during the year
Divestment of operations
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022

Accumulated depreciation
Opening balance, January 1, 2021
Depreciation for the year
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Impairment
Exchange-rate diﬀ erences
Closing balance, December 31, 2021
Depreciation for the year
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Divestment of operations
Impairment
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Net carrying amount, December 31, 2021
Net carrying amount, December 31, 2022

Land
and land
improve-
ments

Machinery
and
technical
installations

Plants under
construc-
tion and
advances

Other
equipment

Buildings

Total

Parent Company

Acquisition costs

Land
and land
improve-
ments

Machinery
and
technical
installations

Plants under
construc-
tion and
advances

Other
equipment

Buildings

1,334
130
950
232
–10
64
2,700
5
0
11
–100
176
2,792

284
29
70
–2
—
18
398
34
1
0
–1
0
43
476
2,302
2,317

10,414
378
914
1,867
–158
516
13,931
317
–1
533
–194
1,426
16,012

5,257
447
795
–147
—
262
6,614
541
–2
–167
—
6
706
7,699
7,317
8,314

37,974
1,236
1
269
–846
1,921
40,555
968
0
3,160
–2,136
4,794
47,342

29,098
2,025
–934
–811
2
1,449
30,829
2,551
–168
–1,912
—
19
3,584
34,903
9,726
12,438

2,797
185
1
333
–118
84
3,282
259
–4
198
–286
283
3,733

2,210
321
58
–109
—
65
2,545
355
6
–259
-14
0
217
2,849
737
883

5,119
2,918
106
–2,712
–4
286
5,712
4,100
0
–3,912
–6
583
6,478

338
—
1
0
—
34
374
—
162
—
—
0
18
554
5,339
5,924

57,639
4,847
1,972
–11
–1,137
2,871
66,181
5,649
–5
-10
–2,721
7,262
76,356

37,187
2,822
–10
–1,069
2
1,828
40,759
3,481
-1
–2,337
–15
25
4,568
46,480
25,422
29,876

Opening balance, January 1, 2021

Acquired during the year

Transfer of work in progress and advances

Sales, scrapping, etc.

Exchange-rate diﬀ erences

Closing balance, December 31, 2021

Acquired during the year

Transfer of work in progress and advances

Sales, scrapping, etc.

Exchange-rate diﬀ erences

Closing balance, December 31, 2022

Accumulated depreciation

Opening balance, January 1, 2021

Depreciation for the year

Sales, scrapping, etc.

Exchange-rate diﬀ erences

Closing balance, December 31, 2021

Depreciation for the year

Sales, scrapping, etc.

Exchange-rate diﬀ erences

Closing balance, December 31, 2022

Net carrying amount, December 31, 2021

Net carrying amount, December 31, 2022

—

213

480

308

–20

387

183

–14

257

125

130

—

–31

455

—

–23

461

373

–31

368

–23

375

–20

—

–85

—

Total

717

130

–24

826

103

–43

901

474

–12

553

105

–37

634

273

267

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 13 Goodwill and other intangible assets

Goodwill
Goodwill is reported as an indeﬁ nite life intangible asset at cost less
accumulated impairment losses.

Product development
Electrolux capitalizes expenses for certain own development of new
products provided that the level of certainty of their future economic
beneﬁ ts and useful life is high. The intangible asset is only recognized
if the product is sellable on existing markets and that resources exist
to complete the development. Only expenditures which are directly
attributable to the new product’s development are recognized.
Capitalized development costs are amortized over their useful lives,
up to 5 years, using the straight-line method.

Software
Acquired software licenses and development expenses are capital-
ized on the basis of the costs incurred to acquire and bring to use
the speciﬁ c software. These costs are amortized over useful lives,
between 3 and 5 years, using the straight-line method.

Trademarks
Trademarks are reported at historical cost less amortization and
impairment. The Electrolux trademark in North America, acquired
in 2000, is regarded as an indeﬁ nite life intangible asset and is not
amortized in the group accounts. One of the Group’s key strategies
is to develop Electrolux into the leading global brand within the
Group’s product categories. This acquisition gave Electrolux the right
to use the Electrolux brand worldwide, whereas it previously could
be used only outside of North America. The total carrying amount
for the Electrolux brand is SEK 410m, included in the item Other in the
table on the next page. All other trademarks are amortized over their
useful lives, estimated to 5 to 10 years, using the straight-line method.

Customer relationships
Customer relationships are recognized at fair value in connection
with acquisitions. The values of these relationships are amortized
over their estimated useful lives, between 5 and 15 years, using the
straight-line method.

Intangible assets with indeﬁ nite useful lives
Goodwill as of December 31, 2022, had a total carrying value
of SEK 7,081m. The allocation, for impairment-testing purposes,
on cash-generating units is shown in the table below.

All intangible assets with indeﬁ nite useful lives are tested for

impairment at least once every year. Single assets are tested more
often in case there are indications of impairment. The recoverable
amounts of the cash-generating units have been determined based
on value in use calculations. The cash-generating units equal the
business areas. Costs related to group services and global leverage
activities are carried by the cash-generating units and therefore
included in the impairment testing of each cash-generating unit.
Common group costs that cannot be allocated on a reasonable
and consistent basis to any of the individual cash-generating units
are included in impairment testing in the total carrying amount of all
cash-generating units combined.

Value in use is calculated using the discounted cash ﬂ ow model
based on by Group management approved forecasts for the coming
four years. The forecasts are built up from the estimate of the units
within each business area. The preparation of the forecast requires
a number of key assumptions such as volume, price, product mix,
prices for raw material and components, which will create a basis for
future sales growth and gross margin. These ﬁ gures are set in relation
to historic ﬁ gures and external reports on market development. The
cash ﬂ ow for the last year of the four-year period is used as the base
for the perpetuity calculation. The discount rates are based on the
pre-tax Electrolux Group WACC (Weighted Average Cost of Capital)
with adjustments for country speciﬁ c risk premiums and inﬂ ation
rates for each individual country. The individual country discount
rates are used to calculate a weighted average discount rate for
each cash-generating unit.

The pre-tax discount rates used in 2022 were within a range of
10.6% (9.6) to 16.0% (14.8). For the calculation of the in-perpetuity
value, Gordon’s growth model is used. According to Gordon’s model,
the terminal value of a growing cash ﬂ ow is calculated as the start-
ing cash ﬂ ow divided by cost of capital less the growth rate. Cost
of capital less growth of 2% (2%) is within the range of 8.6 to 14.0%.
Sensitivity analyses have been carried out based on a reduction
of the operating margin by 0.5 percentage points and by an increase
in the cost of capital by one percentage point respectively. None of
the sensitivity analyses led to a reduction of the recoverable amount

below the carrying amount for any of the cash-generating units, i.e.
the hypothetical changes in key assumptions would not lead to any
impairment. The calculations are based on management’s assess-
ment of reasonably possible adverse changes in operating margin
and cost of capital, yet they are hypothetical and should not be
viewed as an indication that these factors are likely to change. The
sensitivity analyses should therefore be interpreted with caution.
As from 2019, right-of-use assets are included in the carrying

amount of each cash-generating unit. Accordingly, lease payments,
representing lease liability amortization and interest expense, are
not considered in the forecasted cash ﬂ ows. However, the forecasted
cash ﬂ ows have been charged with a ‘replacement capital expen-
diture’ for right-of-use assets, calculated based on an assumed
normalized level of depreciation per cash-generating unit and a
calculated average remaining lease period of contracts existing
at December 31.

Goodwill, value of trademark and discount rate

2022

2021

Goodwill

Electrolux
trademark

Discount

rate, % Goodwill

Electrolux
trademark

Discount
rate, %

Europe

North America

Latin America

Asia-Paciﬁ c,
Middle East
and Africa

Total

531

1,857

1,008

3,685

7,081

—

410

—

410

10.6

11.5

16.0

11.9

499

1,610

909

3,672

6,690

—

410

—

410

9.6

10.1

14.8

11.1

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Included in the item Other are trademarks of SEK 554m (584) and
customer relationships etc. amounting to SEK 165m (173). Amortiza-
tion of intangible assets is included within Cost of goods sold with
SEK 412m (337), Administrative expenses with SEK 297m (255) and
Selling expenses with SEK 203m (199) in the income statement.

Note 14 Other non-current assets

Shares in subsidiaries

Participations in other
companies

Long-term receivables in
subsidiaries

Other receivables

Total

Group
December 31

Parent Company
December 31

2022

2021

2022

2021

—

904

634

33,727 34,056

3,359

2,986

37,175

37,144

For Group, ‘Other receivables’ include mainly long-term operational
tax credits.

See Note 29 for information on the major subsidiaries held by the
Parent Company. A detailed speciﬁ cation of the Parent Company’s
shares in subsidiaries has been submitted to the Swedish Companies
Registration Oﬃ ce and is available upon request from AB Electrolux
Investor relations.

All amounts in SEKm unless otherwise stated

Goodwill and other intangible assets

Acquisition costs
Opening balance, January 1, 2021
Acquired during the year
Acquisition of operations
Internally developed
Reclassiﬁ cation
Fully amortized
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2021
Acquired during the year
Acquisition of operations
Internally developed
Reclassiﬁ cation
Fully amortized
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022

Accumulated amortization
Opening balance, January 1, 2021

Amortization for the year
Reclassiﬁ cation
Fully amortized
Impairment
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2021
Amortization for the year
Reclassiﬁ cation
Fully amortized
Impairment
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Carrying amount, December 31, 2021
Carrying amount, December 31, 2022

Goodwill

Product
development

Software

Other

Total other
intangible assets

Trademarks,
software, etc.

Group
Other intangible assets

Parent Company

6,369
—
57
—
—
—
—
264
6,690
—
–101)
—
—
—
—
401
7,081

—
—
—
—
—
—
0
—
—
—
—
—
—
0
6,690
7,081

2,443
—
—
578
–13
–114
–14
101
2,981
—
—
740
–1
–76
–111
394
3,927

1,149

335
–7
–114
—
–6
28
1,385
390
—
–76
–58
–48
178
1,771
1,596
2,156

2,748
261
5
332
7
–80
–43
105
3,335
409
—
592
7
–353
–56
341
4,275

1,409

329
—
–80
—
–24
54
1,688
466
1
–353
—
–49
174
1,927
1,647
2,348

2,167
25
1
—
17
—
—
6
2,216
—
—
—
—
—
–7
77
2,286

1,320

127
17
—
—
—
–5
1,459
56
—
—
—
—
52
1,567
757
719

7,358
286
6
910
11
–194
–57
212
8,532
409
0
1,332
6
–429
–174
812
10,488

3,878

791
10
–194
—
–30
77
4,532
912
1
–429
–58
–97
404
5,265
4,000
5,223

3,472
—
—
730
—
—
–39
28
4,191
—
—
1,119
—
–126
–67
182
5,299

1,638

348
—
—
—
–9
13
1,990
444
—
–126
—
–14
82
2,376
2,201
2,923

1) Including adjustment of provisional value within the measurement period related to acquisition with a value of SEK -10m for 2021.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 15 Inventories

Raw materials

Products in progress

Finished products

Note 16 Other current assets

Group
December 31

Parent Company
December 31

2022

7,023

369

2021

5,139

264

2022

2021

—

VAT receivable

Other tax recoverable

16,962

15,029

3,688

3,376

Miscellaneous short-term receivables

Advances to suppliers

—

Provisions for doubtful accounts

Total

24,374 20,478

3,688

3,376

Prepaid expenses and accrued income

Inventories and work in progress are valued at the lower of cost, at
normal capacity utilization, and net realizable value. Net realizable
value is deﬁ ned as the estimated selling price in the ordinary course
of business less the estimated costs of completion and the estimated
costs necessary to make the sale at market value. The cost of ﬁ nished
goods and work in progress comprises development costs, raw
materials, direct labor, tooling costs, other direct costs and related
production overheads. The cost of inventories is assigned by using
the weighted average cost formula. Provisions for obsolescence
are included in the value for inventory.

The cost of inventories recognized as expense and included in
Cost of goods sold amounted to SEK 90,219m (79,169) for the Group
and SEK 37,873m (36,717) for the Parent Company.

Write-downs due to obsolescence amounted to SEK 352m (215)

for the Group and SEK 75m (22) for the Parent Company.

Reversals of previous write-downs, due to inventories either
scrapped or sold, amounted to SEK 42m (53) for the Group and
SEK 0m (0) for the Parent Company.

The amounts have been included in the item Cost of goods sold

in the income statements.

Group
December 31

2022

1,692

254

1,905

–113

1,339

2021

1,057

204

2,041

–85

1,411

5,098

4,632

due. For trade receivables past due between 16 to 60 days Electrolux
reserves 1% and increase to 5% for receivables past due between
61 to 90 days. For trade receivables past due between 91 to 180 days
Electrolux reserves 20%. Trade receivables that are 6 months past
due but less than 12 months is reserved at 40% and receivables that are
12 months past due and more are reserved at 100%. The percentages
for ECL are under continuous reassessment. There is no signiﬁ cant
impact on provisions from changes in the forward looking factors.

If trade receivables past due between 16 and 60 days had been
10% higher/lower as of December 2022, the loss allowance on trade
receivables would have increased/decreased SEK 0.7m (0.7). If trade
receivables past due between 61 and 180 days had been 10% higher/
lower as of December 2022, the loss allowance on trade receivables
would have increased/decreased SEK 6.5m (7.7).

Provision for accounts receivable

Provision, January 1

Acquisition of operations

New/released provisions

Receivables written oﬀ
against provision

Sold operations

Exchange-rate diﬀ erences
and other changes

Provision, December 31

Group

Parent Company

2022

–466

—

–93

114

2021

–698

–168

430

—

–49

–493

–30

–466

2022

–9

—

–8

—

–17

2021

–17

—

–9

New /released provisions of SEK -93m (-168) are mainly due to
increased provisions for higher credit risk in Ukraine and the U.S.
The fair value of trade receivables equals their carrying amount as
the impact of discounting is not signiﬁ cant. Electrolux has a credit
exposure on a number of major customers, primarily in the U.S., Latin
America and Europe. Receivables concentrated to customers with
credit limits amounting to SEK 300m or more represent 40.4% (39.2)
of the total trade receivables. The creation and usage of provisions
for impaired receivables have been included in selling expenses in
the income statement.

Prepaid interest expenses and
accrued interest income

Total

Note 17 Trade receivables

Trade receivables

Provision for expected
credit losses

Trade receivables, net

Provisions in relation to trade
receivables, %

Group

Parent Company

2022

2021

21,980

23,576

–493

–466

21,487

23,110

2022

694

–17

677

2021

1,265

–9

1,256

2.2

2.0

2.4

0.7

Trade receivables are recognized initially at fair value and sub-
sequently measured at amortized cost using the eﬀ ective interest
method, less provision for expected credit losses (ECL). The Group
applies the simpliﬁ ed approach for trade receivables and uses a
matrix to estimate the expected credit losses. The change in amount
of the provision is recognized in the income statement within selling
expenses. The expected loss calculation is based on historical data
and is adjusted through a management overlay which considers for-
ward looking analysis, including macroeconomic factors impacting
the diﬀ erent customer segments and more speciﬁ c forward-looking
factors such as signs of bankruptcy, oﬃ cially known insolvency etc.
Electrolux uses credit insurance as a mean of protection. The Group’s
internal guidelines to the companies is to at least reserve 0.11 % for
current trade receivables and for receivables maximum 15 days past

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Timing analysis of trade receivables past due

Trade receivables not
past due

Total trade receivables
past due, whereof:

Past due 1–15 days

Past due 16–60 days

Past due 2–6 months

Past due 6–12 months

Past due more than 1 year

Provision on expected
credit loss

Group

Parent Company

2022

2021

2022

2021

19,269

21,404

637

1,247

2,218

1,706

598

783

518

275

425

519

462

288

493

466

694

1,265

Total trade receivables

21,980

23,576

Past due, in relation to trade
receivables, %

12.3

9.2

8.2

1.4

Note 18 Financial instruments

Additional and complementary information is presented in the
following notes to the Annual Report: Note 2, Financial risk manage-
ment, describes the Group’s risk policies in general and regarding
the principal ﬁ nancial instruments of Electrolux in more detail. Note
17, Trade receivables, describes the trade receivables and related
credit risks.

The information in this note highlights and describes the principal

ﬁ nancial instruments of the Group regarding speciﬁ c major terms
and conditions when applicable, the exposure to risk and the fair
values at year end.

Financial instruments
Initial recognition and measurement
Financial assets and ﬁ nancial liabilities are recognized when the entity
becomes party to the contractual provisions of the instrument. Regular
way purchases and sales of ﬁ nancial assets are recognized on trade
date, the date on which the Group commits to purchase or sell the asset.

At initial recognition, the Group measures a ﬁ nancial asset or

ﬁ nancial liability at its fair value plus or minus, in the case of a ﬁ nancial
asset or ﬁ nancial liability not at fair value through proﬁ t or loss,
transaction costs that are incremental and directly attributable to
the acquisition or issue of the ﬁ nancial asset or ﬁ nancial liability,
such as fees and commissions. Transaction costs of ﬁ nancial assets
and ﬁ nancial liabilities carried at fair value through proﬁ t or loss are
expensed in proﬁ t or loss.

Financial assets
Classiﬁ cation and subsequent measurement
The Group classiﬁ es its ﬁ nancial assets in the following measurement
categories:
• Fair value through proﬁ t or loss (FVPL);
• Fair value through other comprehensive income (FVOCI); or
• Amortized cost.

The classiﬁ cation requirements for debt and equity instruments
are described below.

Debt instruments are those instruments that meet the deﬁ nition
of a ﬁ nancial liability from the issuer’s perspective, such as trade
receivables, loan receivables as well as government bonds.

The Group classiﬁ es its debt instruments into one of the following

two measurement categories:

Amortized cost: Assets that are held for collection of contractual

cash ﬂ ows where those cash ﬂ ows represent solely payments of
principal and interest (SPPI), and are not designated as FVPL, are
measured at amortized cost. The carrying amount of these assets
is adjusted by any expected credit loss allowance recognized (see
impairment below). Interest income from these ﬁ nancial assets is
included in the ﬁ nancial net using the eﬀ ective interest rate method.
Fair value through proﬁ t or loss (FVPL): Assets that do not meet
the criteria for amortized cost are measured at fair value through
proﬁ t and loss. A gain or loss on a ﬁ nancial debt investment that is
subsequently measured at fair value through proﬁ t or loss and is
not part of a hedging relationship is recognized in the ﬁ nancial net
in the period in which it arises. Interest income from these ﬁ nancial
assets is included in the ﬁ nancial net using the eﬀ ective interest rate
method. Trade receivables sold on non-recourse terms are catego-
rized as ‘Hold to Sell’ with gain or loss reported in operating income.

Equity instruments are instruments that meet the deﬁ nition of equity
from the issuer’s perspective; that is, instruments that do not contain
a contractual obligation to pay and that evidence a residual interest
in the issuer’s net assets. Gains and losses on equity investments at
FVPL are included in the ﬁ nancial net in the statement of compre-
hensive income. The Group does not have any material investments
in equity instruments.

Impairment and expected credit loss
The Group assesses on a forward-looking basis the expected credit
losses (ECL) associated with its debt instrument assets not carried at
fair value. The Group recognizes a provision for such losses at each
reporting date. The measurement of ECL reﬂ ects an unbiased and
probability-weighted amount based on reasonable and support-

able information available such as past events, current condition
and forecasts of future economic conditions. For trade receivables,
the Group applies the ‘simpliﬁ ed approach’, which means that the
provision for bad debts will equal the lifetime expected loss.

To measure the expected credit losses, trade receivables are

grouped into six categories based on shared credit risk characteristics
and days past due. If the provision is considered insuﬃ cient due
to individual considerations, the provision is extended to cover the
extra anticipated losses.

Derecognition
Financial assets, or a portion thereof, are derecognized when the
contractual rights to receive the cash ﬂ ows from the assets have
expired, or when they have been transferred and either (i) the Group
transfers substantially all the risks and rewards of ownership, or (ii)
the Group neither transfers nor retains substantially all the risks and
rewards of ownership and the Group has not retained control of the
asset.

Financial liabilities
Classiﬁ cation and subsequent measurement
All of the Groups ﬁ nancial liabilities, excluding derivatives, are
classiﬁ ed as subsequently measured at amortized cost.

Derecognition
Financial liabilities are derecognized when they are extinguished,
i.e. when the obligation speciﬁ ed in the contract is discharged,
cancelled or expires.

Derivatives and hedging activities
Derivatives are initially recognized at fair value on the date on
which the derivative contract is entered into and are subsequently
re-measured at fair value. All derivatives are carried as assets when
fair value is positive and as liabilities when fair value is negative.
Fair value gain or loss related to derivatives not designated or not
qualifying as hedging instruments is recognized in proﬁ t or loss.

The Group applies the hedge accounting requirements of IFRS 9.
For derivatives designated and qualifying as hedging instruments,
the method of recognizing the fair value gain or loss depends on
the nature of the item being hedged. Derivatives are designated
as either:
• Hedges of the fair value of recognized assets or liabilities or ﬁ rm
commitments (fair value hedges);
• Hedges of highly probable future cash ﬂ ows attributable to a
recognized asset or liability (cash ﬂ ow hedges); or
• Hedges of a net investment in a foreign operation (net investment
hedges).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

The Group documents, at the inception of the hedge, the relation-
ship between hedged items and hedging instruments, as well as its
risk management objective and strategy for undertaking various
hedge transactions. The Group also documents its assessment, both
at the hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions are highly eﬀ ective
in oﬀ setting changes in fair values or cash ﬂ ows of hedged items
based on the following hedge eﬀ ectiveness requirements:
• There is an economic relationship between the hedged item
and the hedging instrument;
• The eﬀ ect of credit risk does not dominate the value changes
that result from that economic relationship; and
• The hedge ratio of the hedging relationship is the same as that
resulting from the quantity of the hedged item that the Group
actually hedges and the quantity of the hedging instrument that
the Group actually uses to hedge that quantity of hedged item.

Fair value hedge
Changes in the fair value of derivatives that are designated and
qualify as fair value hedges are recorded in the statement of com-
prehensive income, together with changes in the fair value of the
hedged asset or liability that are attributable to the hedged risk.

Cash ﬂ ow hedge
The eﬀ ective portion of changes in the fair value of derivatives that
are designated and qualify as cash ﬂ ow hedges is recognized in
equity via other comprehensive income. The gain or loss relating to
the ineﬀ ective portion is recognized immediately in the statement
of comprehensive income. Amounts accumulated in equity are
recycled to the statement of proﬁ t or loss in the periods when the
hedged item aﬀ ects proﬁ t or loss. They are recorded in the income
or expense lines in which the revenue or expense associated with
the related hedged item is reported.

Net investment hedge
Hedges of net investments in foreign operations are accounted for
similarly to cash ﬂ ow hedges. Any gain or loss on the hedging instru-
ment relating to the eﬀ ective portion of the hedge is recognized
directly in equity via other comprehensive income; the gain or loss
relating to the ineﬀ ective portion is recognized immediately in the
statement of comprehensive income. Gains and losses accumulated
in equity are included in the statement of comprehensive income
when the foreign operation is disposed of as part of the gain or loss
on the disposal.

Net debt
At year-end 2022, the Group’s ﬁ nancial net debt amounted to SEK
19,828m (4,645). The table below presents how the Group calculates
net debt and what it consists of.

Net debt

Short-term loans

Short-term part of long-term loans

Trade receivables with recourse

Short-term borrowings

Financial derivative liabilities

Accrued interest expenses and prepaid
interest income

Total short-term borrowings

Long-term borrowings

Total borrowings

Long-term ﬁ nancial receivables

Cash and cash equivalents

Short-term investments

Financial derivative assets

Prepaid interest expenses and accrued interest
income

Liquid funds

Financial net debt

Lease liabilities

Net provision for post-employment beneﬁ ts

Net debt
Revolving credit facilities1)

December 31

2022

5,732

2,605

2021

1,288

4,187

445

254

9,076

5,675

28,738

10,205

37,813

15,881

185

—

17,559

10,923

168

17,800

19,828

4,264

–245

165

144

11,236

4,645

3,055

891

23,848

8,591

16,622

20,244

1) For details on the Group’s committed revolving credit facilities, see below under “Liquid funds”. The
facilities are not included in net borrowings, but can be used for short-term and long-term funding.

Liquid funds
Liquid funds as deﬁ ned by the Group consist of cash and cash
equivalents, short-term investments, ﬁ nancial derivative assets and
prepaid interest expenses and accrued interest income. Cash and
cash equivalents consist of cash on hand, bank deposits and other
short-term highly liquid investments with a maturity of 3 months or less.
The table below presents the key data of liquid funds. The carrying

amount of liquid funds is approximately equal to fair value.

Liquidity proﬁ le

Cash and cash equivalents

Short-term investments

Financial derivative assets

Prepaid interest expenses and accrued
interest income

Liquid funds

% of annualized net sales1)

8,377

5,563

Net liquidity

Fixed interest term, days

Eﬀ ective yield, % (average per annum)

1) Liquid funds in relation to annualized net sales, page 119 for deﬁ nition.

December 31

2022

2021

17,559

10,923

168

165

144

17,800

11,236

24.9

24.4

8,724

5,560

0.8

0.3

For 2022, liquid funds, including unused committed revolving credit
facilities amounted to 24.9% (24.4) of annualized net sales, well
above the Financial Policy target of 2.5%. Net liquidity is calculated
by deducting short-term borrowings from liquid funds. Unused
committed revolving credit facilities as per December 31, 2022
consists of multi-currency sustainability linked facility of EUR 1,000m
(1,000), maturing 2027, SEK 2,500m (0), maturing 2023 and
SEK 3,000m (0), maturing 2024.

Interest-bearing liabilities
Borrowings are initially recognized at fair value net of transaction
costs incurred. After initial recognition, borrowings are valued at
amortized cost using the eﬀ ective interest method.

In 2022, SEK 6,158m (284) of long-term borrowings matured or

were amortized. These maturities were partly reﬁ nanced to the
amount of SEK 22,715m (0).

At year-end 2022, the Group’s total interest-bearing liabilities
amounted to SEK 37,075m (15,681), of which SEK 31,343m (14,392)
referred to long-term borrowings including maturities within 12 months.
Long-term borrowings with maturities within 12 months amounted
to SEK 2,605m (4,187). The outstanding long-term borrowings have
mainly been made under the Euro Medium Term Note (EMTN)
Programme and via bilateral loans. The majority of total long-term
borrowings, SEK 31,277m (14,297), is raised at Parent
Company level. Electrolux also has unused committed revolving credit
facilities of SEK 16,622m (20,244) (details stated above under “Liquid
funds”). However, Electrolux expects to meet any future requirements
for short-term borrowings through bilateral bank facilities and capital
market programs such as commercial paper programs.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

At year-end 2022, the average interest-ﬁ xing period for long-term
borrowings was 2.3 years (1.2). The calculation of the average inter-
est-ﬁ xing period includes the eﬀ ect of interest-rate swaps used to

manage the interest-rate risk of the debt portfolio. The average
interest rate for the total borrowings was 3.4% (1.4) at year-end.

The fair value of the interest-bearing borrowings was SEK 32,409m
(14,547). The fair value including swap transactions used to manage
the interest ﬁ xing was approximately SEK 32,662m (14,554).

Changes in liabilities arising from ﬁ nancing

2022

Long-term borrowings (including short-term part of long-term)

Short-term borrowings (excluding short-term part of long-term)

Lease liabilities

Total

2021

Long-term borrowings (including short-term part of long-term)

Short-term borrowings (excluding short-term part of long-term)

Lease liabilities

Total

Opening
Balance

Amortization

New debt

Net cash
change

Acquisitions

Reclassi-
ﬁ cations

Additions/
Cancellations

Exchange rate
diﬀ erences

Closing
Balance

Cash Flow

Non Cash ﬂ ow

14,392

1,375

3,055

18,823

14,400

1,052

2,618

18,070

–6,158

—

–948

–7,106

–284

—

–880

–1,164

22,244

—

22,244

—

4,148

—

4,148

—

–445

—

–445

—

733

—

762

—

1,782

—

1,154

864

249

374

1,487

245

163

444

31,343

5,772

4,264

41,379

14,392

1,375

3,055

18,823

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

The table below sets out the carrying amount of the Group’s borrowings.

Borrowings

Interest rate, %

Currency

Nominal
value (in
currency)

2022

2021

Issue/maturity date

Description of loan

Interest rate, %

Currency

Carrying amount,
December 31

Nominal
value (in
currency)

2022

2021

Description of loan

Issue/maturity date
Bond loans
2017–2024
2018–2023
2018–2023
2018–2025
2019–2024
2019–2024
2019–2024
2020–2023
2020–2023
2020–2025
2020–2027
2022–2027
2022–2027
2022–2025
2022–2026
2022–2024
2022–2024
2022–2027
2022–2025
2022–2025
2022–2030
Total bond loans4)
Other long-term loans

Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme

Floating1) 2)
1.125
Stibor 3M + 0.75
Fixed1)
1.103
0.885
Stibor 3M + 0.75
Stibor 3M + 1.85
1.995
Fixed1) 3)
Fixed1)
Stibor 3M + 0.6
1.705
Stibor 3M + 0.85
4.125 3)
Stibor 3M + 1.15
4.363
4.838
Stibor 3M + 1.4
4.42
2.53)

SEK
SEK
SEK
USD
SEK
SEK
SEK
SEK
SEK
NOK
USD
SEK
SEK
SEK
EUR
SEK
SEK
SEK
SEK
SEK
EUR

350
200
800
73
1,000
750
750
1,700
1,700
500
150
1,250
750
1,000
500
750
750
1,500
1,000
2,000
500

350
—
—
761
1,000
750
753
—
—
502
1,564
1,249
749
1,000
5,507
750
750
1,500
1,000
2,000
5,270
25,455

350
200
802
660
1,000
750
754
1,700
1,700
503
1,356
—
—
—
—
—
—
—
—
—
—
9,774

2017–20264)
2022–20294)

Amortizing bank loan
Nordic Investment Bank,
long-term part
European Investment Bank
Other long-term loans

Total other long-term loans
Long-term
borrowings
Short-term part of long-term loans5)
2019–20224)
2020–20224)
2020–20224)

Euro MTN Programme
Euro MTN Programme
Euro MTN Programme

Floating
Fixed

USD
USD

75
282

301
2,939
42
3,282

365
—
66
431

28,738 10,205

Stibor 3M + 0.75
Stibor 3M + 0.60
0.405

SEK
SEK
SEK

1,250
2,550
250

1,252
—
— 2,552
250
—

2018–20234)
2018–20234)
2020–20234)
2020–20234)

2017–20264)

Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Amortizing bank loan
Nordic Investment Bank,
short-term part
Other short-term part of
long-term loans

Total short-term part of long-term loans
Other short-term loans

Short-term bank loans in
Canada
Floating
Short-term bank loans in Egypt Floating
Short-term bank loans in Brazil Floating
Short-term bank loans in
Thailand
Floating
Short-term bank loans in Chile Floating
Other bank borrowings and
commercial papers

Total other short-term loans
Trade receivables with recourse
Short-term borrowings
Long-term and short-term borrowings
Fair value of ﬁ nancial derivative liabilities
Accrued interest expenses and prepaid
interest income
Total borrowings

1.125
Stibor 3M + 0.75
Stibor 3M + 1.85
1.995

SEK
SEK
SEK
SEK

200
800
1,700
1,700

200
294
1,099
868

—
—
—
—

Floating

USD

120

104

24
2,605

29
4,187

CAD
EGP
BRL

THB
CLP

30
—
934

231
—
1,946

732
18,917

221
230

212
—
829

—
—

247
3,105
1,288
5,732
87
40
8,377
5,563
37,114 15,768
48

445

254
37,813

65
15,881

1) Private placement
2) The interest-rate ﬁ xing proﬁ le of nominal amount SEK 100m has been adjusted with an interest-rate swap, where ﬂ oating rate is swapped for ﬁ xed

interest rate. The Group applies hedge accounting of cash ﬂ ows on the relation, and the net eﬀ ect on the income statement from this hedge for 2022
was SEK 5m (-2).

3) The interest-rate ﬁ xing proﬁ le of the loans has been adjusted with interest-rate swaps, where ﬁ xed interest rate is swapped for ﬂ oating interest rate.

The Group applies hedge accounting of fair value on the relations, and the net eﬀ ect on the income statement from these hedges for 2022 was
SEK 299m (13).

4) Long-term borrowings raised on Parent Company level amount to a total of SEK 31,277m (14,297).
5) Long-term borrowings with maturities within 12 months are classiﬁ ed as short-term borrowings in the Group’s balance sheet.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Other short-term loans pertain mainly to countries with capital restrictions. The average maturity of
the Group’s long-term borrowings including long-term borrowings with maturities within 12 months
was 4.0 years (1.9), at the end of 2022. The table below presents the repayment schedule of long-term
borrowings.

Repayment schedule of long-term borrowings, December 31

Debenture and bond loans

Bank and other loans

Short-term part of long-term loans

Total

2023

2024

2025

2026

2027

2028—

Total

—

2,605

4,353

5,263

5,507

5,062

5,270 25,455

162

—

120

—

2,939

—

3,282

2,605

4,515

5,383

5,568

5,062

8,209

31,343

Commercial ﬂ ows
The table below shows the forecasted transaction ﬂ ows, imports and exports, for the 12-month period
of 2023 and hedges at year-end 2022.

The hedged amounts are dependent on the hedging policy for each ﬂ ow considering the existing
risk exposure. The eﬀ ect of hedging on operating income during 2022 amounted to SEK –169m (–108).
At year-end 2022, the unrealized fair value of forward contracts for hedging of forecasted transaction
ﬂ ows amounted to SEK 34m (-37). Nominal amount of forecasted transacion ﬂ ows hedged as per
December 31, 2022, was SEK -689m (818). The hedge accounting relations have an average maturity
period of 8 months (7).

Forecasted transaction ﬂ ows and hedges

AUD

BRL

CAD

CHF

CNY

EUR

GBP

PLN

THB

USD Other

Total

Maturity proﬁ le of ﬁ nancial liabilities and derivatives – undiscounted cash ﬂ ows

Loans

Net settled derivatives

Lease liabilities

Gross settled derivatives

whereof outﬂ ow

whereof inﬂ ow

Accounts payable

Financial guarantees

Total

≤ 0.5 year

–8,660

–32

–545

–332

–34,154

33,821

–38,357

–1,491

> 0.5 year
< 1 year

> 1 year
< 2 years

> 2 years
< 5 years

> 5 years

Total

–677

–5,466

–17,749

–8,979

–41,531

–498

–703

723

—

–87

–858

-112

115

—

–105

–1,795

–67

–979

—

–280

–4,675

–308

–34,969

34,659

–38,357

–1,491

–49,417

–1,143

–6,408

–19,649

–10,025

–86,642

Net gain/loss, fair value and carrying amount on ﬁ nancial instruments
The tables below and overleaf present net gain/loss on ﬁ nancial instruments, the eﬀ ect in the income
statement and equity, and the fair value and carrying amount of ﬁ nancial assets and liabilities. Net gain/
loss can include both exchange-rate diﬀ erences and gain/loss due to changes in interest-rate levels.

Net gain/loss, income and expense on ﬁ nancial instruments

2022

2021

Gain/loss
in proﬁ t
and loss

Gain/loss
in OCI

Interest
income

Interest
expense

Gain/loss
in proﬁ t
and loss

Gain/loss
in OCI

Interest
income

Interest
expense

Inﬂ ow of
currency, long
position

Outﬂ ow of
currency, short
position

Gross trans-
action ﬂ ow

4,150 3,561 4,295

3,112

403

1,051 3,865 2,858

3,961 6,373 12,129 45,758

–250 –563

0 –309 –2,204 –8,413

–954 –1,103 –5,412 –22,920 –3,629 –45,758

3,900 2,998 4,295 2,803 –1,801 –7,362

Hedges

–615 –668 –333 –295

964

–506

2,911

–166

1,754 –1,451 –16,547 8,500

–294

–328 2,436

–195

Net transac-
tion ﬂ ow

3,284 2,330 3,962 2,508 –837 –7,868

2,745

1,461 –1,779 –14,111 8,305

Maturity proﬁ le of ﬁ nancial liabilities and derivatives
The table below presents the undiscounted cash ﬂ ows of the Group’s contractual liabilities related to
ﬁ nancial instruments based on the remaining period at the balance sheet date to the contractual maturity
date. Floating interest cash ﬂ ows with future ﬁ xing dates are estimated using the forward-forward interest
rates at year-end. Any cash ﬂ ow in foreign currency is converted to Swedish krona using the FX spot rates
at year-end. The short-term liabilities from account payables are matched by positive cash ﬂ ow from trade
receivables. The loan maturities can be oﬀ set by the available liquidity and/or a combination by new issued
bonds, commercial papers or bank loans. On top of the other sources, Electrolux has unused committed
revolving credit facilities of SEK 16,622m (20,244), see details stated above under ‘Liquid funds’.

Recognized in operating
income

Financial assets and
liabilities at fair value
through proﬁ t and loss

Financial assets and
liabilities at amortized cost

Total net gain/loss,
income and expense

Recognized in ﬁ nancial
items

Financial assets and
liabilities at fair value
through proﬁ t and loss

Financial assets at
amortized cost

Other ﬁ nancial liabilities
at amortized cost

Total net gain/loss,
income and expense

–169

–219

–388

—

–37

–113

—

–78

–37

—

–727

—

–41

299

–1,001

–36

387

–1,728

–8

—

–8

–2

—

–5

–7

—

–76

—

–383

–459

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Fair value and carrying amount on ﬁ nancial assets and liabilities

Fair value
hierarchy level

Fair value Carrying amount

2022

2021

Financial assets

Financial assets at fair value through proﬁ t or loss

Whereof short-term investments

Whereof other ﬁ nancial assets

Financial assets at amortized cost

Whereof trade receivables

Whereof short-term investments

Whereof cash and cash equivalents

Derivatives

Whereof derivatives at fair value through proﬁ t or loss

Whereof derivatives in hedge relations

Total ﬁ nancial assets

Financial liabilities

Financial liabilities at amortized cost

Whereof long-term borrowings

Whereof short-term borrowings

Whereof accounts payable

Derivatives

Whereof derivatives at fair value through proﬁ t or loss

Whereof derivatives in hedge relations

Total ﬁ nancial liabilities

425

166

259

39,048

21,487

17,559

425

166

259

39,048

21,487

17,559

227

162

34,036

23,110

10,923

204

—

227

162

34,036

23,110

10,923

204

—

39,572

34,467

74,123

27,368

8,398

38,357

578

279

299

75,472

28,738

8,377

38,357

578

279

299

54,207

10,455

5,570

38,182

53,950

10,205

5,563

38,182

74,701

76,050

54,282

54,025

Fair value estimation
Valuation of ﬁ nancial instruments at fair value is done at the most
accurate market prices available. Instruments which are quoted on
the market, e.g. the major bond and interest-rate future markets, are
all marked-to-market with the current price. The foreign-exchange
spot rate is used to convert the value into Swedish krona. For instru-
ments where no reliable price is available on the market, cash ﬂ ows
are discounted using the deposit/swap curve of the cash ﬂ ow cur-
rency. If no proper cash ﬂ ow schedule is available, e.g. as in the case
with forward-rate agreements, the underlying schedule is used for
valuation purposes. To the extent option instruments are used, the
valuation is based on the Black & Scholes formula.

The carrying value less impairment provision of trade receivables
and payables are assumed to approximate their fair values. The fair
value of ﬁ nancial liabilities is estimated by discounting the future
contractual cash ﬂ ows at the current market-interest rate that is
available to the Group for similar ﬁ nancial instruments. The Group’s
ﬁ nancial assets and liabilities at fair value are measured according
to the following hierarchy:
• Level 1: Fair value is based on quoted prices in active markets for
identical assets or liabilities.
• Level 2: Fair Value is based on other than quoted prices included
in level 1 that are observable for assets or liabilities either directly
or indirectly such as interest rate curves and FX rates.
• Level 3: Inputs for Fair Value Calculations of the assets or liabilities
that are not entirely based on observable market data.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 19 Assets pledged for liabilities to credit institutions

Number of shares

Pledged assets

Total

Group
December 31

Parent Company
December 31

2022

2021

2022

2021

—

Note 20 Share capital, number of shares and earnings

per share

The equity attributable to equity holders of the Parent Company
consists of the following items:

Share capital
As per December 31, 2022 the share capital of AB Electrolux consisted
of 8,192,348 Class A shares and 274,885,045 Class B shares with a
quota value of SEK 5.46 per share. All shares are fully paid. One A
share entitles the holder to one vote and one B share to one-tenth of
a vote. All shares entitle the holder to the same proportion of assets
and earnings, and carry equal rights in terms of dividends.

Share capital

Share capital, December 31, 2021

8,192,498 Class A shares, quota value SEK 5

300,727,810 Class B shares, quota value SEK 5

Total

Share capital, December 31, 2022

8,192,348 Class A shares, quota value SEK 5.46

274,885,045 Class B shares, quota value SEK 5.46

Total

1,504

1,545

1,500

1,545

Owned by
Electrolux

Owned by other
shareholders

Total

Shares, December 31, 2021

Class A shares

Class B shares

Total

—

8,192,498

25,842,915

274,884,895

300,727,810

25,842,915

283,077,393

308,920,308

Conversion of Class A shares into Class B shares

Class A shares

Class B shares

Redemption of shares

Class A shares

Class B shares

Repurchase of shares

Class A shares

Class B shares

—

–25,842,915

—

–150

150

—

13,049,115

–13,049,115

–150

150

—

–25,842,915

—

Shares, December 31, 2022

Class A shares

Class B shares

Total

—

8,192,348

13,049,115

261,835,930

274,885,045

13,049,115

270,028,278

283,077,393

Other paid-in capital
Other paid-in capital relates to payments made by owners and
includes share premiums paid in connection with share issues.

Other reserves
Other reserves include the following items: cashﬂ ow hedges which
refer to changes in valuation of currency contracts used for hedging
future foreign currency transactions and exchange-rate diﬀ erences
on translation of foreign operations which refer to changes in
exchange rates when net investments in foreign subsidiaries are
translated to SEK. The amount of exchange-rate changes includes
the value of hedging contracts for net investments. Finally, other
reserves include tax relating to the mentioned items.

Retained earnings
Retained earnings, including income for the period, include the
income of the Parent Company and its share of income in subsid-
iaries and associated companies. Retained earnings also include
remeasurement of provision for post-employment beneﬁ ts, reversal
of the cost for share-based payments recognized in income, income
from sales of own shares and the amount recognized for the common
dividend.

Earnings per share

Income for the period attributable to
equity holders of the Parent Company

Earnings per share, SEK

Basic

Diluted

Average number of shares, million

Basic

Diluted

2022

2021

–1,320

4,678

–4.81

–4.75

16.31

16.21

274.7

278.0

286.9

288.5

Basic earnings per share is calculated by dividing the income for the
period attributable to the equity holders of the Parent Company with
the average number of shares. The average number of shares is the
weighted average number of shares outstanding during the year,
after repurchase of own shares. Diluted earnings per share is calcu-
lated by adjusting the weighted average number of ordinary shares
outstanding with the estimated number of shares from the share pro-
grams. Share programs are included in the dilutive potential ordinary
shares as from the start of each program. The dilution in the Group is
a consequence of the Electrolux long-term incentive programs.

The average number of shares during the year has been

274,658,318 (286,852,239) and the average number of diluted shares
has been 277,996,529 (288,472,807).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 21 Untaxed reserves, Parent Company

December 31,

2022 Appropriations

December 31,
2021

Accumulated depreciation
in excess of plan

Brands

Licenses

Machinery and equipment

Buildings

Other

Total

Group contributions

Total appropriations

382

168

118

668

396

161

586

–14

–22

Note 22 Post-employment beneﬁ ts

Post-employment beneﬁ ts
The Group sponsors pension plans in many of the countries in which
it has signiﬁ cant activities. Pension plans can be deﬁ ned contribution
or deﬁ ned beneﬁ t plans or a combination of both. Under deﬁ ned
beneﬁ t pension plans, the company enters into a commitment to
provide post-employment beneﬁ ts based upon one or several
parameters for which the outcome is not known at present. For
example, beneﬁ ts can be based on ﬁ nal salary, on career average
salary, or on a ﬁ xed amount of money per year of employment.
Under deﬁ ned contribution plans, the company’s commitment is to
make periodic payments to independent authorities or investment
plans, and the level of beneﬁ ts depends on the actual return on
those investments. Some plans combine the promise to make periodic
payments with a promise of a guaranteed minimum return on the
investments. These plans are also deﬁ ned beneﬁ t plans.

In some countries, Electrolux makes provisions for compulsory
severance payments. These provisions cover the Group’s commitment
to pay employees a lump sum upon reaching retirement age, or
upon the employees’ dismissal or resignation.

In addition to providing pension beneﬁ ts and compulsory sever-
ance payments, the Group provides healthcare beneﬁ ts for some of
its employees in certain countries, predominantly so in the U.S.

The cost for pension is disaggregated into three components;
service cost, ﬁ nancing cost or income and remeasurement eﬀ ects.
Service cost is reported within Operating income and classiﬁ ed as
Cost of goods sold, Selling expenses or Administrative expenses
depending on the function of the employee. Financing cost or
income is recognized in the Financial items and the remeasurement
eﬀ ects in Other comprehensive income. The Projected Unit Credit
Method is used to measure the present value of the obligations and
costs.

Net provisions for post-employment beneﬁ ts in the balance sheet

represent the present value of the Group’s obligations less market
value of plan assets. The remeasurements of the obligations are
made using actuarial assumptions determined at the balance
sheet date. Changes in the present value of the obligations due to
revised actuarial assumptions and experience adjustments on the
obligation are recorded in Other comprehensive income as remea-
surements. The actual return less calculated interest income on plan
assets is also recorded in other comprehensive income as remea-
surements. Past-service costs are recognized immediately in income
for the period.

Some features of the deﬁ ned beneﬁ t plans in the main countries

are described below.

U.S.
The number of pension plans in the U.S. has been signiﬁ cantly
reduced over the years through plan consolidation. In 2022, the
single remaining funded plan was terminated through a buyout
transaction with an external insurance company, and only a small
unfunded plan remains. Current employees participate in deﬁ ned
contribution plans.

United Kingdom
The deﬁ ned beneﬁ t plan is closed for future accruals and employees
are oﬀ ered deﬁ ned contribution. The funding position is reassessed
every three years and a schedule of contributions is agreed between
the Trustee and the company, if so required. The Trustee decides the
investment strategy and consults with the company. Beneﬁ ts are
paid from the plan assets.

Sweden
The main deﬁ ned beneﬁ t plan in Sweden is the collectively agreed
pension plan for white collar employees, the ITP 2 plan. Beneﬁ ts

in payment are indexed according to decisions made by Alecta’s
Board of Directors. Indexation typically follow inﬂ ation. Electrolux
secures its obligation for old age pension (ITP 2) through a pension
foundation. The majority of employees are however covered by the
collectively agreed deﬁ ned contribution plan (ITP 1).

Germany
There are several deﬁ ned beneﬁ t plans based on ﬁ nal salary in
Germany. Beneﬁ ts in payment are indexed every three years
according to inﬂ ation levels. All plans are closed for new partici-
pants. Electrolux has arranged a Contractual Trust Arrangement
(CTA) and the funds are held by a local bank who acts as the trustee
for the scheme. The assets are managed by a fund management
company, Electrolux performs an oversight on the strategy via an
investment committee with members both from Group staﬀ functions
and the local German company. No minimum funding requirements
or regular funding obligations apply to CTAs. If there is a surplus
under both German GAAP and IFRS rules, Electrolux can take a
refund up to the German GAAP surplus. Beneﬁ ts are paid directly by
the company and Electrolux can refund itself for pension pay-outs.
Over time, Electrolux will have access to any residual funds after the
last beneﬁ ciary has left the plan.

Switzerland
In Switzerland beneﬁ ts are career average in nature, with indexation
of beneﬁ ts following decisions of the foundation board, subject to
legal minima. Contributions are paid to the pension foundation and
a recovery plan has to be set up if the plans are underfunded on the
local funding basis. Swiss laws do not state any speciﬁ c way of cal-
culating an employer‘s additional contribution and because of that
there is normally no minimum funding requirement. Beneﬁ ts are paid
from the plan assets.

Other countries
There is a variety of smaller plans in other countries and the most
important of those are in France, Italy and Canada. The pension
plans in France and Italy are mainly unfunded. In Canada there are
both funded and unfunded pension plans. A mix of ﬁ nal salary and
career average exists in these countries. Some plans are open for
new entrants.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Explanation of amounts in the ﬁ nancial statements relating to deﬁ ned beneﬁ t obligations.

Information by country December 31, 2022

Information by country December 31, 2021

U.S.
Medical

U.S.

UK Sweden Germany

Switzer-
land

Other

Total

U.S.
Medical

U.S.

UK Sweden Germany

Switzer-
land

Other

Total

Amounts included in the
balance sheet

Present value of funded and
unfunded obligations

Fair value of plan assets
(after change in asset ceiling)

Total (surplus)/deﬁ cit

Whereof reported as:

Pension plan assets

Provisions for post-employment
beneﬁ t plans

Total funding level for all
pension plans, %

Average duration of
the obligation, years

Amounts included in total
comprehensive income

Service cost

Net interest cost

Remeasurements (gain)/loss

Total expense (gain)
for deﬁ ned beneﬁ t plans

Expenses for deﬁ ned
contribution plans

Amounts included in the
cash ﬂ ow statement

Contributions by the employer

Reimbursement

–33

–28

—

313

1,589

5,693

2,334

3,623

2,517

154 16,223

–1,446 –1,573 –6,370 –2,302 –2,374 –2,522

119 –16,468

–1,133

–677

1,249

–5

273

–245

–1,446

—

–676

—

313

462

—

112

–5

—

–6 –2,133

279

1,888

1,249

100

–77

102

9.0

8.0

12.0

20.0

14.0

13.0

—

12.0

—

691

124

602

131

–9

236

–337

1,304

691

732

267

-322

1,426

—

141

—

282

—

–80

–507

—

137

Beneﬁ ts paid by the employer

6,086

Major assumptions for the
valuation of the liability
Longevity, years1)

Male

Female

Inﬂ ation, %2)

Discount rate, %

20.5

22.4

—

20.3

22.0

—

5.20

20.8

23.7

3.25

4.40

23.0

24.8

2.00

3.50

20.5

24.0

2.50

3.10

21.8

23.5

1.50

1.80

849

–587

6,659

21.0

23.4

2.54

3.66

—

Amounts included in the
balance sheet
Present value of funded and
unfunded obligations
Fair value of plan assets
(after change in asset ceiling)
Total (surplus)/deﬁ cit
Whereof reported as:
Pension plan assets
Provisions for post-employment
beneﬁ t plans
Total funding level for all
pension plans, %
Average duration of the
obligation, years
Amounts included in total
comprehensive income
Service cost
Net interest cost
Remeasurements (gain)/loss
Total expense (gain)
for deﬁ ned beneﬁ t plans
Expenses for deﬁ ned
contribution plans
Amounts included in the
cash ﬂ ow statement
Contributions by the employer
Reimbursement
Beneﬁ ts paid by the employer
Major assumptions for the
valuation of the liability
Longevity, years1)
Male
Female
Inﬂ ation, %2)
Discount rate, %

7,442

1,783

7,941

2,876

4,088

2,683

798

27,611

–8,316 –1,776 –7,929 –2,464 –3,065 –2,979
–296

1,023

–874

412

—

112

100

—

111

–191 –26,720
891
607

—

1,732

— 2,623

10.3

9.2

15.2

22.2

14.3

12.8

—

14.0

—
–16
–79

–95

—
—
48

—
—
12

23
—
—

—
3

159
19
–196 –1,889

23
9
–241

37
—
–355

222
3
2
17
2 –2,746

–193

–1,712

–209

–318

7 –2,507

—
—
—

—
–86
109

—
—
172

33
—
—

20.7
22.6
3.00
2.60

20.7
22.3
—
2.60

20.8
23.6
3.50
1.60

22.7
24.8
1.75
1.60

20.4
23.8
2.00
0.90

21.8
24.8
1.00
0.10

678

57
–86
355

21.2
23.6
2.62
1.67

1
—
26

—
—
—
—

1) Expressed as the average life expectancy of a 65-year-old person in number of years.
2) General inﬂ ation impacting salary and pensions increase. For USA Medical, the number refers to the inﬂ ation of healthcare beneﬁ ts.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Reconciliation of change in present value of funded and unfunded
obligations

Opening balance, January 1

Current service cost

Special events

Interest expense

Remeasurement arising from changes
in ﬁ nancial assumptions

Remeasurement from changes in
demographic assumptions

Remeasurement from experience

Contributions by plan participants

Beneﬁ ts paid 2)

Exchange diﬀ erences

Settlements and other

Closing balance, December 31

2022

2021

27,611

28,874

164

—

467

222

—

416

–6,902

–507

310

533

–234

–417

–6,914

–1,586

2,029

–1,114

16,223

1,867

–1,059

27,611

Reconciliation of change in the fair value of plan assets

Opening balance, January 1

Interest income1)

Return on plan assets, excluding amounts
included in interest1)

Eﬀ ect of asset ceiling

Net contribution by employer

Contribution by plan participants

Beneﬁ ts paid 2)

Exchange diﬀ erences

Settlements and other

Closing balance, December 31

2022

2021

26,720

25,194

492

399

–4,361

–853

–533

1,880

–292

–30

–6,658

–1,232

2,167

–545

1,945

–1,179

16,468 26,720

1) The actual return on plan assets amounts to SEK 3,869m (2,279).
2) During Q4 2022 a U.S. pension plan buyout was completed with pension obligations transferred

to a third party. This resulted in a reduction of gross pension liabilities and assets of SEK 6bn
respectively at year-end 2022.

Risks
There are mainly three categories of risks related to deﬁ ned beneﬁ t
obligations and pension plans. The ﬁ rst category relates to risks
aﬀ ecting the actual pension payments. Increased longevity and
inﬂ ation of salary and pensions are risks that may increase the future
pension payments and, hence, increase the pension obligation. The
second category relates to investment return. Pension plan assets
are invested in a variety of ﬁ nancial instruments and are exposed
to market ﬂ uctuations. Poor investment return may reduce the value
of investments and render them insuﬃ cient to cover future pension
payments. The third category relates to measurement and aﬀ ects
the accounting for pensions. The discount rate used for measuring
the present value of the obligation may ﬂ uctuate which impacts
the valuation of the Deﬁ ned Beneﬁ t Obligation (DBO). The discount
rate also impacts the size of the interest income and expense that
is reported in the Financial items and the service cost. When deter-
mining the discount rate, the Group uses AA rated corporate bond
indexes which match the duration of the pension obligations. In
Sweden, mortgage-backed bonds are used for determining the dis-
count rate. Expected inﬂ ation and mortality assumptions are based

on local conditions in each country and changes in those assump-
tions may also aﬀ ect the measured obligation and, therefore, the
accounting entries.

Investment strategy and risk management
The Group manages the allocation and investment of pension plan
assets with the aim of decreasing the total pension cost over time.
This means that certain risks are accepted in order to increase
the return. The investment horizon is long-term and the allocation
ensures that the investment port-folios are well diversiﬁ ed. In some
countries, a so called trigger-points scheme is in place, whereby
the investment in ﬁ xed income assets increases as the funding level
improves. The Board of Electrolux annually approves the limits for
asset allocation. The ﬁ nal investment decision often resides with
the local trustee that consults with Electrolux. The risks related to
pension obligations, e.g., mortality exposure and inﬂ ation, are mon-
itored on an ongoing basis. Buy-out premiums are also monitored
and other potential liability management actions are also considered
to limit the exposure to the Group.

Below is the sensitivity analysis for the main ﬁ nancial assumptions and the potential impact on the present value of the deﬁ ned pension
obligation. Note that the sensitivities are not meant to express any view by Electrolux on the probability of a change.

Sensitivity analysis on deﬁ ned beneﬁ t obligation

Longevity +1 year

Inﬂ ation +0.5%1)

Discount rate +1%

Discount rate –1%

U.S. U.S. Medical

—

–33

—

–117

130

370

148

–599

734

Sweden

Germany

Switzerland

Other

240

–405

507

219

212

–401

494

–253

313

–47

Total

828

639

–1,855

2,270

1) The inﬂ ation change feeds through to other inﬂ ation-dependent assumptions, i.e., pension increases and salary growth.

In the coming year, the Group expects to pay a total of SEK 274m in contributions to the pension funds and as payments of beneﬁ ts directly
to the employees.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 100

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Market value of plan assets by category

2022

2021

Fixed income, SEK 8,911m
Equity, SEK 2,836m
Real estate, SEK 2,014m
Hedge funds, SEK 1,218m
Infrastructure, SEK 739m
Private equity, SEK 244m
Cash, SEK 505m

Fixed income, SEK 15,805m
Equity, SEK 5,219m
Hedge funds, SEK 2,598m
Real estate, SEK 1,876m
Infrastructure, SEK 518m
Private equity, SEK 179m
Cash, SEK 525m

Market value of plan assets without quoted prices

Fixed income

Real estate

Infrastructure

Private equity

December 31

2022

1,629

2,014

739

244

2021

1,412

1,876

518

179

Governance
Deﬁ ned beneﬁ t pensions and pension plan assets are governed
by the Electrolux Pension Board, which resumes 3 to 4 times per
year and has the following responsibilities:
• Implementation of pension directives of the AB Electrolux
Board of Directors.
• Evaluation and approval of new plans, changes to plans or
termination of plans.
• Approval of the Group’s and local pension funds’ investment
strategies.
• Approval of the Group’s global and local benchmarks for follow
up of pension plan assets.
• Approval of the election of company representatives in the
Boards of Trustees.
• Approval of the ﬁ nancial and actuarial assumptions to be used
in the measurement of the deﬁ ned beneﬁ t obligations.

Parent Company
According to Swedish accounting principles adopted by the Parent
Company, deﬁ ned beneﬁ t liabilities are calculated based upon
oﬃ cially provided assumptions, which diﬀ er from the assumptions
used in the Group under IFRS. The pension beneﬁ ts are secured by
contributions to a separate fund or recorded as a liability in the bal-
ance sheet. The accounting principles used in the Parent Company’s
separate ﬁ nancial statements diﬀ er from the IFRS principles, mainly
in the following:
• The pension liability calculated according to Swedish accounting
principles does not take into account future salary increases.
• The discount rate used in the Swedish calculations is set by the
Swedish Pension Foundation (PRI) and was for 2022 3,0% (4,0).
The rate is the same for all companies in Sweden.
• Changes in the discount rate and other actuarial assumptions are
recognized immediately in the proﬁ t or loss and the balance sheet.
• Deﬁ cit must be either immediately settled in cash or recognized
as a liability in the balance sheet.
• Surplus cannot be recognized as an asset, but may in some cases
be refunded to the company to oﬀ set pension costs.

Amounts recognized in the balance sheet

Present value of pension obligations

Fair value of plan assets

Surplus/deﬁ cit

Limitation on assets in accordance with
Swedish accounting principles

Net provisions for pension obligations

Whereof reported as provisions for pensions

Amounts recognized in the income statement

Current service cost

Interest cost

Total expenses for deﬁ ned beneﬁ t pension plans

Insurance premiums

Total expenses for deﬁ ned contribution plans

Change in the present value of deﬁ ned beneﬁ t pension obligation
for funded and unfunded obligations

Special employer’s contribution tax

Cost for credit insurance FPG

Funded Unfunded

Total

Total pension expenses

440

2,255

Compensation from the pension fund

Total recognized pension expenses

December 31

2022

2021

–1,763

–1,393

2,278

2,464

515

1,071

–949

–434

–1,495

–424

2022

364

411

193

646

–80

566

2021

366

439

141

621

–1,264

–643

The Swedish Pension Foundation
The pension liabilities of the Group’s Swedish deﬁ ned beneﬁ t pension
plan (PRI pensions) are funded through a pension foundation
established in 1998. The market value of the assets of the foundation
amounted at December 31, 2022, to SEK 2,278m (2,464) and the
pension commitments to SEK 1,329m (969). The Swedish Group com-
panies recorded a liability to the pension fund as per December 31,
2022, in the amount of SEK 0m (0). Contributions to the pension
foundation during 2022 amounted to SEK 0m (0). Contributions from
the pension foundation during 2022 amounted to SEK 80m (1,264).

Opening balance, January 1, 2021

Current service cost

Interest cost

Beneﬁ ts paid

Closing balance, December 31, 2021

Current service cost

Interest cost

Beneﬁ ts paid

1,815

356

–1,258

969

331

–5

Closing balance, December 31, 2022

1,329

Change in fair value of plan assets

Opening balance, January 1, 2021

Actual return on plan assets

Contributions and compensation to/from the fund

Closing balance, December 31, 2021

Actual return on plan assets

Contributions and compensation to/from the fund

Closing balance, December 31, 2022

–43

424

–36

434

366

–1,301

1,393

364

–41

1,763

Funded

2,563

1,165

–1,264

2,464

–106

–80

2,278

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 101

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 23 Other provisions

Provi-
sions for
restructuring

Warranty
commit-
ments

Opening balance, January 1, 2021

1,486

2,039

Acquisitions of operations

Provisions made

Provisions used

Unused amounts reversed

Reclassiﬁ cations

Exchange-rate diﬀ erences

Closing balance, December 31, 2021

Of which current provisions

Of which non-current provisions

–282

–46

–52

1,240

566

674

—

544

–258

–13

2,427

1,201

1,226

Opening balance, January 1, 2022

1,240

2,427

Acquisitions of operations

Provisions made

Provisions used

Unused amounts reversed

Reclassiﬁ cations

Exchange-rate diﬀ erences

Closing balance, December 31, 2022

Of which current provisions

Of which non-current provisions

—

1,543

–520

–176

—

136

2,222

1,660

562

—

271

–307

–156

—

181

2,416

1,272

1,144

Group

Claims

1,153

—

366

–520

—

1,118

301

816

1,118

—

424

–293

—

144

1,391

346

1,045

Parent Company

Provi-
sions for
restructuring

Warranty
commit-
ments

Other

551

—

–184

–5

—

365

259

106

365

—

805

–146

–113

—

949

778

171

507

—

610

153

457

610

—

–180

—

460

111

349

—

–11

–15

—

Other

3,406

—

1,460

–872

–453

–1,104

146

2,584

635

1,948

Total

8,083

2,421

–1,932

–512

–1,112

413

7,368

2,704

4,664

2,584

7,368

—

994

—

3,231

–1,130

–2,250

–125

—

340

2,664

759

1,905

–457

—

801

8,693

4,037

4,657

Provisions are recognized when the Group has a present obliga-
tion as a result of a past event, and it is probable that an outﬂ ow
of resources will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount
recognized as a provision is the best estimate of the expenditure
required to settle the present obligation at the balance sheet date.
Where the eﬀ ect of time value of money is material, the amount
recognized is the present value of the estimated expenditures.

Provisions for warranty are recognized at the date of sale of the

products covered by the warranty and are calculated based on
historical data for similar products. Provisions for warranty commit-
ments are recognized as a consequence of the Group’s policy to
cover the cost of repair of defective products. Warranty is normally
granted for one to two years after the sale.

Restructuring provisions are recognized when the Group has

both adopted a detailed formal plan for the restructuring and either
started the plan implementation or communicated its main features
to those aﬀ ected by the restructuring. Provisions for restructuring
represent the expected costs to be incurred as a consequence of
the Group’s decision to close some factories, rationalize production
and reduce personnel, both for newly acquired and previously
owned companies. The amounts are based on management’s best
estimates and are adjusted when changes to these estimates are
known. The larger part of the restructuring provision as per December
31, 2022, is expected to be consumed in 2023 and 2024.

The provisions for claims refer to the Group’s insurance companies
and include technical provision for both unearned premium and out-
standing claims reserves including claims incurred but not reported
(IBNR). Further, these captive provisions are related to the diﬀ erent
insurance classes included in the Group’s insurance companies.
Other provisions include mainly provisions for environmental liabil-
ities, asbestos claims or other liabilities. The timing of any resulting
outﬂ ows for provisions for claims and other provisions is uncertain.

Total

1,110

—

140

–184

–5

—

1,072

424

648

1,072

—

813

–337

–128

—

1,492

897

595

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 102

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 24 Other liabilities

Group
December 31

Parent Company
December 31

Accrued holiday pay

Other accrued payroll costs

Accrued interest expenses

Contract liabilities1)

Other accrued expenses

Deferred government grants

Other prepaid income

VAT liabilities

Personnel related liabilities

2022

1,107

1,183

254

7,516

3,607

484

179

1,017

854

2021

1,100

2,233

7,846

4,023

634

109

908

979

Other operating liabilities

1,342

1,848

2022

314

156

249

—

443

—

205

—

2021

290

692

—

712

—

195

—

Total

17,543

19,745

1,367

1,951

1) Speciﬁ cation of the movement in contract liabilities is presented in Note 4.

Other accrued expenses include for example accruals for fees,
advertising and sales promotion. Other operating liabilities include
for example credit balances for costumers.

Note 25 Contingent assets and liabilities

Group
December 31

Parent Company
December 31

2022

2021

2022

2021

Guarantees and other
commitments

On behalf of subsidiaries

—

On behalf of external
counterparties

Total

1,491

1,309

1,097

996

A large part of the guarantees and other commitments on behalf of
external counterparties, is related to pension commitments.

In addition to the above contingent liabilities, guarantees for ful-
ﬁ llment of contractual undertakings are given as part of the Group’s
normal course of business. There was no indication at year-end
that payment will be required in connection with any contractual
guarantees.

Legal proceedings
Litigation and claims related to asbestos are pending against the
Group in the U.S. Almost all of the cases refer to externally supplied
components used in industrial products manufactured by discontin-
ued operations prior to the early 1970s. The cases involve plaintiﬀ s
who have made substantially identical allegations against other
defendants who are not part of the Electrolux Group.

It is expected that additional lawsuits will be ﬁ led against

Electrolux. It is not possible to predict the number of future lawsuits.
In addition, the outcome of asbestos lawsuits is diﬃ cult to predict
and Electrolux cannot provide any assurances that the resolution
of these types of lawsuits will not have a material adverse eﬀ ect on
its business or on results of operations in the future.

The Group is involved in a legal proceeding in Egypt relating to
the privatization of an Egyptian subsidiary. The proceeding is currently
on-going in the court of ﬁ rst instance in Cairo, Egypt. Electrolux
believes that the lawsuit is without legal merit.

In October 2013, Electrolux became subject of an investigation by

the French Competition Authority regarding a possible violation of
antitrust rules. The Authority has thereafter decided to conduct two
separate investigations whereof one was completed in December
2018. The other investigation is still ongoing, and the Authority has
so far not communicated any conclusions. Given the nature of the
investigation, it cannot be ruled out that the outcome could have a
material impact on Electrolux ﬁ nancial result and cash ﬂ ow. At this
stage it is however not possible to evaluate the extent of such an
impact.

In 2019 an order was issued by the Italian Environmental Authorities

for certain remediation actions connected to contamination at a
manufacturing site in Aviano (Italy), a site that Electrolux subsidiary
INFA s.p.a. (“INFA”) divested to the current operator of the site, Sarinox
s.p.a. (“Sarinox”), in 2001. Following certain court proceedings, the
order became ﬁ nal against Sarinox in the fourth quarter of 2021.
Pursuant to the order, Sarinox shall, inter alia, participate in projects
to improve the groundwater quality in the Friuli region, Italy (whereby
interventions for a cost of EUR 42m are mentioned in the order),

and take certain other measures to clean 42m cubic meters of con-
taminated groundwater in the region. Although INFA is not liable
to perform the obligations under the order from the Environmental
Authority, it is possible that the situation can evolve and result in
a liability for INFA in its capacity as former owner and operator or
seller of the site. However, it is at this stage not possible to evaluate
the extent of such a potential liability. No provision relating to this
matter has been set.

Note 26 Acquired and divested operations

Acquisistions in 2022
There were no acquisitions completed during 2022.

Divestments in 2022
Electrolux decided to exit Russia and has divested the business
to local management through a sale of its Russian subsidiary on
September 9, 2022. A capital loss of SEK 350m was recorded as a
non-recurring item aﬀ ecting the operating income for Business Area
Europe in the third quarter of 2022.

Divestment of Russia

Divested operations

Fixed assets

Other non-current assets

Current assets

Cash

Non-current liabilities

Current liabilities

Currency eﬀ ects

Other

Capital loss

Proceeds

Divested cash

Cash ﬂ ow eﬀ ect divested operations

2022

2021

546

–12

–20

–53

–10

–350

179

–546

–367

—

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 103

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Acquisitions in 2021
CSAV Group
On July 8, 2021, Electrolux acquired La Compagnie du SAV (CSAV)
a French service provider specialized in repairing domestic appli-
ances. Through the acquisition Electrolux strengthens its service net-
work in France. CSAV is headquartered in Lisses, south of Paris, and
employs around 200 people. Net sales in 2020 amounted to around
EUR 25m. The operations are included in Business Area Europe.

Gångaren 13 Holding AB
On December 7, 2021, Electrolux acquired 50% of the shares in the
Swedish company Gångaren 13 Holding AB. Before the acquisition,
Electrolux held 50% of the shares in the company. The acquired
company is accounted for as a fully owned subsidiary as from the
acquisition date. Gångaren 13 Holding AB is the owner of Electrolux
corporate head oﬃ ce in Stockholm. The purchase price for the
additional 50% amounts to SEK 990m and as the acquisition mainly
comprises a property, it has been classiﬁ ed as an asset acquisition,
which means that it is included in the group accounts at accumu-
lated cost, without eﬀ ects from deferred taxes.

Acquired operations

Consideration:

Cash paid for acquisitions made during the year

Fair value of holding

Total consideration

Recognized amounts of assets acquired and
liabilities assumed:

Total net assets acquired

Assumed net debt / cash

Goodwill

Total

Payments for acquisitions:

Cash paid for acquisitions of operations

Cash and cash equivalents in acquired
operations

Payments for acquisition of non-controlling
interest in CTI SA and Somela SA, Chile

Payment for acquisition of Gångaren 13
Holding AB

Total paid

Note 27 Employees and remuneration

Average number of employees, by geographical area

Employees and employee beneﬁ ts
In 2022, the average number of employees was 50,769 (51,590),
of which 31,350 (31,871) were men and 19,419 (19,719) were women.

A detailed speciﬁ cation of the average number of employees by
country has been submitted to the Swedish Companies Registration
Oﬃ ce and is available upon request from AB Electrolux, Investor
Relations. See also Electrolux website www.electroluxgroup.com.

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Total

Group

2022

2021

19,574

19,026

8,215

8,383

14,339

15,852

8,641

8,329

50,769

51,590

Salaries, other remuneration and employer contributions

Parent Company

whereof pension costs1)

Subsidiaries

whereof pension costs

Total

2022

2021

whereof pension costs

2022

Salaries and
remuneration

Employer
contributions

1,538

—

18,106

—

19,644

—

832

349

3,342

624

4,174

973

2021

Salaries and
remuneration

Employer
contributions

1,187

—

15,642

—

16,829

—

696

323

2,898

577

3,594

900

Total

2,370

349

21,448

624

23,818

973

1) Includes SEK 11m (5) refering to the President’s predecessors according to local GAAP.

Salaries and remuneration for Board members, senior managers and other employees

Parent Company

Other

Total

2022

Board mem-
bers and senior
managers1)

Other employees

467

538

1,467

17,639

19,106

2021

Board mem-
bers and senior

managers1) Other employees

309

396

1,100

15,333

16,433

Total

1,538

18,106

19,644

1) According to the deﬁ nition of Senior managers in the Swedish Annual Accounts Act.

Of the Board members in Group companies, 79 (84) were men and
25 (19) women, of whom 4 (5) men and 3 (3) women in the Parent
Company. According to the deﬁ nition of Senior managers in the
Swedish Annual Accounts Act, the number of Senior managers in the
Group consisted of 187 (189) men and 70 (82) women, of whom 5 (6)
men and 2 (2) women in the Parent Company. The total pension cost
for Board members and Senior managers in the Group amounted to
SEK 38m (27).

—

2022

—

2021

–76

990

1,006

Total

1,883

323

18,540

577

20,423

900

Total

1,187

15,642

16,829

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 104

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Compensation to Board members

´000 SEK

Ordinary
compensation

Compensation for
committee work

Total
compensation

Ordinary
compensation

Compensation for
committee work

Total
compensation

2022

2021

Staﬀ an Bohman, Chairman

2,371

Petra Hedengran

Henrik Henriksson

Ulla Litzén

Karin Overbeck

Fredrik Persson

David Porter

Jonas Samuelson, President

Kai Wärn (up to AGM 2021)

Mina Billing (up to May 5 2022)

Viveca Brinkenfeldt Lever

Peter Ferm

Wilson Quispe (as from May 9 2022)

691

—

233

274

—

270

188

—

2,604

2,263

965

691

961

781

879

691

—

659

—

159

—

300

355

—

290

—

185

—

2,563

1,014

659

949

659

844

659

—

159

—

Total compensation

6,517

1,055

7,572

6,376

1,130

7,506

Compensation to the Board of Directors
The Annual General Meeting (AGM) determines the compensa-
tion to the Board of Directors for a period of one year until the next
AGM. The compensation is distributed between the Chairman, other
Board Members and remuneration for committee work. The Board
decides the distribution of the committee fee between the commit-
tee members. Compensation is paid out in advance each quarter.
Compensation paid in 2022 refers to one fourth of the compensation
authorized by the AGM in 2021 and three fourths of the compen-
sation authorized by the AGM in 2022. Total compensation paid in
cash in 2022 amounted to SEK 7.6m, of which SEK 6.5m referred to
ordinary compensation and SEK 1.1m to committee work.

Remuneration guidelines for Group Management
The current remuneration guidelines were approved by the AGM in 2020.
The guidelines apply until the AGM 2024 and are described below.
The detailed guidelines can be found on page 41 in the Annual Report.
Electrolux has a clear strategy to deliver proﬁ table growth and
create shareholder value. A prerequisite for the successful implemen-
tation of the Company’s business strategy and safeguarding of its
long-term interests, including its sustainability, is that the Company
is able to recruit and retain qualiﬁ ed personnel. To this end, it is nec-
essary that the Company oﬀ ers competitive remuneration in relation
to the country or region of employment of each Group Management
member. These guidelines enable the Company to oﬀ er the Group

Management a competitive total remuneration. The total remunera-
tion for the Group Management shall be in line with market practice
and may comprise the following components: ﬁ xed compensation,
variable compensation, pension beneﬁ ts and other beneﬁ ts. Follow-
ing the ‘pay for performance’ principle, variable compensation shall
represent a signiﬁ cant portion of the total compensation opportunity
for Group Management. Variable compensation shall always be
measured against pre-deﬁ ned targets and have a maximum above
which no payout shall be made. Variable compensation shall mainly
relate to ﬁ nancial performance targets. Non-ﬁ nancial targets may
also be used in order to strengthen the focus on delivering on the
Company’s business strategy and long-term interests, including its
sustainability. The targets shall be speciﬁ c, clear, measurable and
time bound and be determined by the Board of Directors.

Since 2004, Electrolux has oﬀ ered long-term performance share

programs for senior managers of the Group. The alignment of
Electrolux top management incentives with the interest of sharehold-
ers is a longstanding priority of the Board of Directors. Ownership of
Electrolux shares by the Group’s CEO and other Group Management
members is an important measure to strengthen this alignment.

Thus the Board recommends that the CEO shall build up a per-
sonal holding of B-shares in Electrolux representing a value of one
gross annual base salary and for Group Management members to
build up a personal holding of B-shares in Electrolux representing a
value of 50% of one gross annual base salary.

Remuneration and terms of employment for the President in 2022
The remuneration package for the President comprises ﬁ xed salary,
variable salary based on annual targets, a long-term performance-
share program and other beneﬁ ts such as pension and insurance.
For the President, the annualized base salary for 2022 has been

set at SEK 13.0m.

The variable salary is based on annual ﬁ nancial and non-ﬁ nancial
targets for the Group. Each year, a performance range is determined
with a minimum and a maximum. If the performance outcome for
the year is below or equal to the minimum level, no pay-out will be
made. If the performance outcome is at or above the maximum,
pay-out is capped at 100% of the annualized base salary. If the
performance outcome is between minimum and maximum, the
pay-out shall be determined on a linear basis.

The President participates in the Group’s long-term performance
based share programs. For further information on these programs,
see below.

The notice period from the company is 12 months, and from the
President 6 months. The President is entitled to 12 months severance
pay based on base salary with deduction for other income during
the 12 months severance period. Severance pay is applicable if the
employment is terminated by the company. It is also applicable if
the employment is terminated by the President provided serious
breach of contract on the company’s behalf or if there has been a
major change in ownership structure in combination with changes
in management and changed individual accountability.

Pensions for the President
The President is covered by the collectively agreed ITP plan, the
alternative rule of the plan, and Electrolux Pension Plan for CEO.
The Electrolux Pension Plan for CEO is a deﬁ ned contribution plan.
The employer contribution to the plan for the President is equivalent
to 35% of annual base salary, which also includes the contributions
for the beneﬁ ts of the ITP-plan, alternative ITP and any insurable
supplementary disability and survivor’s pension.

In addition, the Company provides a disability pension of maxi-
mum SEK 1.2m per year if long term disability occurs. The retirement
age for the President is 65.

The capital value of pension commitments for the President in
2022, prior Presidents, and survivors is SEK 185m (183), whereof
SEK 44m (42) relates to the current President.

Remuneration and terms of employment for other members of
Group Management in 2022
Like the President, other members of Group Management receive a
remuneration package that comprises ﬁ xed salary, variable salary
based on annual targets, long-term performance-share programs
and other beneﬁ ts such as pensions and insurance.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 105

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Base salary is revised annually per January 1. The average base-
salary increase for members of Group Management in 2022 was
7.9% (5.9).

Variable salary in 2022 is based on ﬁ nancial and non-ﬁ nancial targets

on business area and Group level. Variable salary for business area
heads and heads of Commercial and Consumer Journey, Operations
and Consumer Experience & Product Lines varies between a minimum
(no pay-out) and a maximum of 100% of annual base salary, which is
also the cap. Group Management members in the USA have a maxi-
mum of up to 150% of annual base salary.

Group Management members that are Group staﬀ heads receive
variable salary that varies between a minimum (no pay out) and a
maximum of 80%, which is also the cap.

The members of Group Management participate in the Group’s
long-term performance based share programs. For further informa-
tion on these programs, see below.

The notice period for Group Management members employed in
Sweden is 12 months for the company and 6 months for the employee.
Certain members of Group Management are entitled to 12 months’
severance pay based on base salary with deduction for other income
during the 12 months severance period. Severance pay is applicable
if the employment is terminated by the company. It is also applicable
if the employment is terminated by the Group Management member
provided serious breach of contract on the company’s behalf or if
there has been a major change in ownership structure in combination
with changes in management and changed individual accountability.
For members of Group Management employed outside of Sweden,

varying terms of employment and beneﬁ ts, such as company car,
may apply depending upon the country of employment.

Pensions for other members of Group Management
Group Management members employed in Sweden as from 2012
receive a pension entitlement where the aggregated contribution
is 35% of annual base salary. The retirement age is 65 years.

Group Management members employed in Sweden before 2012 are

covered by the Alternative ITP plan, as well as a supplementary plan.
The Alternative ITP plan is a deﬁ ned contribution plan where the

contribution increases with age. The contribution is between 20
and 40 % of pensionable salary, between 7.5 and 30 income base
amounts. The contribution to the supplementary plan is 35% of
annual base salary. Accrued capital is subject to a real rate of return
of 3.5% per year.
The retirement age (60) for one member employed prior to 2012 has
been amended. The member’s employment and pension entitlement
is continued post age 60.

For members of Group Management employed outside of Sweden,

varying pension terms and conditions apply, depending upon the
country of employment.

Share-based compensation
Over the years, Electrolux has implemented several long-term
incentive programs (LTI) for senior managers. These programs are
intended to attract, motivate, and retain the participating managers
by providing long-term incentives through beneﬁ ts linked to the
company’s share price. They have been designed to align manage-
ment incentives with shareholder interests.

For Electrolux, the share-based compensation programs are classi-
ﬁ ed as equity settled transactions, and the cost of the granted instru-
ment’s fair value at grant date is recognized over the vesting period
which is 3.0 years. At each balance sheet date, the Group revises the
estimates to the number of shares that are expected to vest. Electrolux
recognizes the impact of the revision to original estimates, if any, in
the income statement, with a corresponding adjustment to equity.
In addition, the Group provides for employer contributions

expected to be paid in connection with the share-based compensa-
tion programs. The costs are charged to the income statement over
the vesting period. The provision is periodically revalued based on
the fair value of the instruments at each closing date.

Performance-share programs 2020, 2021 and 2022
The Annual General Meeting in March 2022, approved a long-term
incentive program for 2022. The program is in line with the Group’s
principles for remuneration based on performance, and is an inte-
gral part of the total compensation for Group Management and
other senior managers. Electrolux shareholders beneﬁ t from this
program since it facilitates recruitment and retention of competent
executives and aligns management interest with shareholder interest
as the program drives executive shareholding and the participants
are more aligned with the long-term strategy of the company. The
General Meetings of Electrolux have also approved long-term
incentive programs for 2020 and 2021.

The allocation of shares in the 2020 and 2021 programs is deter-
mined by the position level and the outcome of three objectives; (1)
earnings per share, (2) return on net assets and (3) CO2 reduction.
Performance outcome of (1) and (2) is determined by the Board after
the expiry of the one-year performance period and (3) after the
expiry of the three-year performance period. The allocation of shares
in the 2022 program is determined by the position level and the out-
come of two objectives; (1) cumulative earnings per share and (2)
CO2 reduction. Performance outcome of (1) and (2) is determined by
the Board after the expiry of the three-year performance period.
For the 2020, 2021 and 2022 programs allocation is linear from
minimum to maximum. There is no allocation if the minimum level
is not reached. If the maximum is reached, 100% of shares will be
allocated. Should the achievement of the objectives be below the
maximum but above the minimum, a proportionate allocation will be
made. For the President and other members of Group Management

in the 2022 program the granted shares will be multiplied by 0.75-1.25
depending on the outcome of a relative total shareholder return
target. The shares will be allocated after the three-year period free
of charge.

If a participant’s employment is terminated during the three-year
program period, the participant will be excluded from the program
and will not receive any shares or other beneﬁ ts under the program.
However, under certain circumstances, including for example a
participant’s death, disability, retirement or the divestiture of the
participant’s employing company, a participant could be entitled
to reduced beneﬁ ts under the program.

2020 and 2021 program covers 253 respectively 282 senior man-
agers and key employees whilst the 2022 program covers 817 par-
ticipants in almost 30 countries. Participants in the 2020 and 2021
program comprise six groups, i.e., the President, other members of
Group Management, and four groups of other senior managers.
Participants in the 2022 program comprise seven groups, i.e., the
President, other members of Group Management, and ﬁ ve groups
of other senior managers. All programs comprise Class B shares.

The performance outcome for the ﬁ nancial targets and the CO2

target in the share program for 2022 will be determined after the
expiry of the three year performance period.

For 2022, LTI programs resulted in a cost of SEK 179m (including a
cost of SEK 19m in employer contribution) compared to a cost of SEK
138m in 2021 (including a cost of SEK 28m in employer contribution).
The total provision for employer contribution in the balance sheet
amounted to SEK 67m (52).

Repurchased shares for LTI programs
The Annual General Meeting in 2021 resolved that the company
shall be entitled to sell B shares in the company for the purpose of
covering costs, including social security charges, that may arise as
a result of the 2019 program, but this mandate has not been used by
the company.

Allocation of shares for the 2019 program
There was no allocation of the 2019 performance-share program
as the minimum level was not reached.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 106

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Remuneration to Group Management

2022

2021

’000 SEK

Annual
ﬁ xed
salary1)

Variable
salary2)

Long-
term PSP
(cost)3)

Other
remuner-
ation4)

Total pen-
sion con-
tribution

Social
contribu-
tion

Annual
ﬁ xed
salary1)

Variable
salary2)

Long-
term PSP
(cost)3)

Other
remuner-
ation4)

Total pen-
sion con-
tribution

Social
contribu-
tion

President and CEO

13,310

1,300

9,359

4,550

8,080

12,719

12,400

9,177

4,340

7,260

Other members of Group
Management5)

46,322

5,497

21,029

5,578

10,389

16,324

38,636

35,601

23,302

Total

59,632

6,797 30,388

5,587

14,939 24,404

51,355

48,001

32,479

2,750

2,758

9,649

12,801

13,989

20,061

1) The annual ﬁ xed salary includes vacation salary, paid vacation days and salary deductions for

company car.

and an income is recorded in the income statement. The cost includes social contribution
cost for the program.

2) For 2022: variable salary earned 2022 and to be paid in 2023, and for 2021: variable salary earned

4) Includes allowances and other beneﬁ ts such as gross-up of tax, housing, company car,

2021 and paid in 2022.

severance and termination pay, costs for extraordinary arrangements.

3) Cost for share-based incentive programs are accounted for according to IFRS 2, Share-based

5) Other members of Group Management comprised of 9 people at the end of 2022, and of

payments. If the expected cost of the program is reduced, the previous recorded cost is reversed

8 people at the end of 2021.

Number of potential shares per participant, per category and year

Group 1, President and CEO

Group 2, other members of Group Management

Group 3

Group 4

Group 5

Group 6

Group 7

Maximum number of B shares1),2)

Maximum value, SEK1),2)

2022

133,854

44,990

19,228

11,333

7,952

5,213

2,082

2021

59,702

18,213

10,609

6,029

4,437

2,841

—

2020

2022

2021

2020

69,637

16,249,876

12,400,000

11,693,460

21,148

12,576

7,394

5,318

3,604

—

5,461,725

3,782,796

3,551,120

2,334,331

2,203,430

2,111,712

1,375,778

1,252,228

1,241,534

965,312

632,840

252,709

921,495

590,054

—

892,922

605,219

—

1) The maximum performance value for the participant in Group 1 will be 100%, Group 2, 90%, Group
3, 80%, Group 4, 60%, Group 5, 50% and Group 6, 40% of the participants annual base salary in
2020-2022 programs. The maximum performance value for the participant in Group 7 in 2022 pro-
gram will be 20% of the participants annual base salary. For participants in Group 1 and 2 in 2022
program the granted number of shares will be multiplied by 0.75-1.25 depending on the outcome
of a relative total shareholder return target. At maximum performance the aggregated value
is converted to the average number of shares and average value per participant in respective
category. The calculation was based on a share price of SEK 184.84 for 2020, SEK 224.67 for 2021
and SEK 121.40 for 2022 which is the average closing price of the Electrolux Class B share on the
Nasdaq Stockholm during a period of ten trading days before the day participants were invited to

participate in the program, adjusted for net present value of dividends for the period until shares
are allocated. Due to the extra cash distribution that was distributed during 2021, it was decided
to adjust the maximum number of shares in the 2020 and 2021 programs. The maximum number of
shares in the above table represents the adjusted numbers.

2) For the 2020 program the outcome was 98,8 % resulting in 1,329,948 shares for allocation. For the 2021
program the outcome of the ﬁ nancial targets was 100% resulting in 1,143,820 shares, 285,956 shares
are still subject to the CO2 reduction target. Decision on ﬁ nal outcome and allocation of shares under
the 2021 program will be made after the expiry of the three year performance period for the CO2
reduction target. Maximum value refers to value at grant. For the 2022 program the allocation will be
determined by the Board in 2025 after the expiry of the three year performance period in 2024.

Performance-share program 2022

Cumulative earnings per share, SEK1)
CO2 Reduction, %1)
Total shareholder return (TSR) multiplier2)

Total allocation

Objectives

Allocation of shares

Minimum

Maximum

Actual 1)

TBD

Outcome, %

Weight, %

Allocation, %

TBD

100

1) Measured over 2022 – 2024, outcome will be presented in the 2024 annual report. Outcome of the
CO2 reduction for the 2021 program and ﬁ nal outcome for the 2021 program will be presented in
the 2023 annual report.

2) For Group Management members a multiplier is applied. The multiplier is relative Electrolux
B-share TSR to the TSR of the FTSE EMEA Consumer Discretionary Index during the period
2022 – 2024. The multiplier at maximum TSR performance is 1.25 times vested number of shares
and at minimum TSR performance 0.75 times vested number of shares.

Note 28 Fees to auditors

At the 2022 Annual General Meeting PwC was appointed auditor for
the period until the end of the 2023 Annual General Meeting.

PwC

Audit fees1)

Audit-related fees2)

Tax fees3)

All other fees4)

Total fees to PwC5)

Deloitte

Audit fees

Audit-related fees

All other fees

Total fees to Deloitte

Audit fees to other audit ﬁ rms

Total fees to auditors

Group

Parent Company

2022

2021

2022

2021

—

1) Audit fees consist of fees for the annual audit services engagement and other audit services, which
are those services that only the external auditors reasonably can provide, and include the Group
audit, statutory audits, comfort letters and consents, and attest services.

2) Audit related fees consist of fees for assurance and related services that are reasonably related

to the performance of the audit of the accounts and annual reports of the Group and group
companies traditionally performed by the external auditors, and include consultations concerning
ﬁ nancial accounting and reporting standards, internal control reviews as well as review of interim
reports.

3) Tax fees include for example tax compliance and tax consultation services.
4) All other fees include fees for transaction support services, ﬁ nancial advisory and other services.
5) Of audit-related fees, SEK 0m pertains to PwC Sweden, of tax fees, no amount pertains to PwC

Sweden and of all other fees, SEK 8m pertains to PwC Sweden.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 107

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 29 Shares and participations

Investments in associated companies
The holdings in the South African associated
companiy Llitha Solar remained unchanged
during the year. SYR Africa has been deregistered
during the year .

The holdings in Next-Tech BVBA/SPRL, Belgium,

has been impaired during the year. Next-Tech

Investments in associated companies

designs and provides software and hardware
solutions for domestic kitchen retailers.

Electrolux participation in Gångaren 13 Holding
AB, Sweden, increased from 50% to 100% through
an acquisition in December, 2021. Gångaren 13
Holding AB is a real estate company owning the
corporate head oﬃ ce in Sweden.

All associated companies are unlisted.

Company

Gångaren 13 Holding AB,
Sweden

SYR Africa (Pty), South Africa

Llitha Solar (Pty) LTD,
South Africa

Next-Tech BVBA/SPRL, Belgium

Vitality Ventures Group,
Hong Kong

Tradeplace B.V., The Netherlands

Total

2022

2021

Holding, %

Carrying
amount Net income1)

Holding, %

Carrying
amount Net income1)

n/a

—

–54

–3

–57

n/a

—

–3

1) Represents the Group’s share of net income and is reported in the line Other operating income and expenses in the consolidated statement of

comprehensive income. Regarding Gångaren 13 Holding AB net income refers to the Group’s share up until December 2021.

Group companies
The following table lists the major companies
included in the Electrolux Group. A detailed spec-
iﬁ cation of Group companies has been submitted

to the Swedish Companies Registration Oﬃ ce
and is available upon request from AB Electrolux
Investor Relations.

Subsidiaries
Major Group companies
Argentina
Australia
Austria
Belgium
Brazil
Canada
Chile
China

Denmark
Egypt
Finland
France

Germany

Hungary
Italy

Mexico

The Netherlands

Norway
Poland
Romania
Singapore
South Africa
Spain
Sweden

Switzerland
Thailand
Ukraine
United Kingdom
USA

Frimetal S.A.
Electrolux Home Products Pty. Ltd
Electrolux Austria GmbH
Electrolux Home Products Corporation N.V.
Electrolux do Brasil S.A.
Electrolux Canada Corp.
Electrolux de Chile S.A.
Electrolux (Hangzhou) Domestic Appliances Co. Ltd
Electrolux (China) Home Appliance Co. Ltd
Guangdong De Yi Jie Appliances Co., Ltd
Electrolux Home Products Denmark A/S
Electrolux Egypt for Home Appliances S.A.E.
Oy Electrolux Ab
Electrolux France SAS
Electrolux Home Products France SAS
Electrolux Deutschland GmbH
Electrolux Rothenburg GmbH Factory and Development
Electrolux Lehel Kft
Electrolux Appliances S.p.A.
Electrolux Italia S.p.A.
Electrolux de Mexico S.A. de C.V.

Electrolux Associated Company B.V.
Electrolux Home Products (Nederland) B.V.
Electrolux Home Products Norway AS
Electrolux Poland Spolka z.o.o.
SC Electrolux Romania SA
Electrolux SEA Pte Ltd
Electrolux South Africa (Pty) Ltd.
Electrolux España, S.A.U.
Electrolux HemProdukter AB
Electrolux Appliances AB
Electrolux AG
Electrolux Thailand Co. Ltd.
DC Electrolux LLC
Electrolux Plc
Electrolux Home Products, Inc.
Electrolux North America, Inc.

Holding, %

100
100
100
100
100
100
99.89
100
100
100
100
99.97
100
100
100
100
100
100
100
100
100

100
100
100
100
99.83
100
100
100
100
100
100
100
100
100
100
100

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 108

‘000 SEK

9,352,571

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

All amounts in SEKm unless otherwise stated

Note 30 Transactions with related parties

Note 31 Proposed distribution of earnings

Transactions with associated companies

Group

Parent Company

2022

2021

2022

2021

The Board of Directors proposes that income for the
period and retained earnings be distributed as follows:

Net sales to associates

Purchases from associates

Receivables on associates

Payables to associates

Loans to associates

—

The Group’s related parties are its associated companies, joint
ventures, the Parent company’s largest shareholder Investor AB,
Board members of AB Electrolux and Group Management members.
Commercial terms and market prices apply to all transactions with
related parties.

Investment details in associated companies are disclosed in
Note 29. Transactions and balances with associated companies
are disclosed in the table above.

Investor AB controls approximately 30% (28) of the voting rights in
AB Electrolux. The Group has not had any transactions with Investor
AB during the year, other than dividends declared, and there are no
outstanding balances with Investor AB. Investor AB has controlling
or signiﬁ cant inﬂ uence over companies with which Electrolux may
have transactions within the normal course of business. Commercial
terms and market prices apply to any such transactions.

Remuneration to members of the Board of Directors and Group

management are disclosed in Note 27.

To be carried forward

Total

According to the company’s dividend policy, Electrolux target is
for the dividend to correspond to approximately 50% of the annual
income. As the annual income for 2022 was negative, the Board
of Directors has proposed that the Annual General Meeting 2023
resolves that no payment of dividend will be made for the ﬁ scal year
2022 and that the company's available funds shall be carried forward
to the new accounts.

The Board of Directors declare that the consolidated ﬁ nancial

statements have been prepared in accordance with IFRS as
adopted by the EU and give a true and fair view of the Group’s
ﬁ nancial position and results of operations. The ﬁ nancial statements
of the Parent Company have been prepared in accordance with
generally accepted accounting principles in Sweden and give a true
and fair view of the Parent Company’s ﬁ nancial position and results
of operations.

The statutory Administration Report of the Group and the Parent
Company provides a fair review of the development of the Group’s
and the Parent Company’s operations, ﬁ nancial position and results
of operations and describes material risks and uncertainties facing
the Parent Company and the companies included in the Group.

Stockholm, February 17, 2023
AB ELECTROLUX (PUBL)
556009-4178

Staﬀ an Bohman
Chairman of the Board of Directors

Jonas Samuelson
Board member and President
and Chief Executive Oﬃ cer

Petra Hedengran
Board member

Henrik Henriksson
Board member

Ulla Litzén
Board member

Karin Overbeck
Board member

Fredrik Persson
Board member

David Porter
Board member

Viveca Brinkenfeldt Lever

Board member,
employee representative

Peter Ferm
Board member,
employee representative

Wilson Quispe
Board member,
employee representative

Our audit report was submitted on February 21, 2023
PricewaterhouseCoopers AB

Peter Nyllinge
Authorized Public Accountant
Partner in charge

Helena Kaiser de Carolis
Authorized Public Accountant

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 109

Auditor’s report

To the general meeting of the shareholders of
AB Electrolux (publ), corporate identity number
556009-4178

Report on the annual accounts and consolidated
accounts
Opinions
We have audited the annual accounts and consolidated accounts
of AB Electrolux (publ) for the year 2022. The annual accounts and
consolidated accounts of the company are included on pages
31–50 and 67-108 in this document.

In our opinion, the annual accounts have been prepared in

accordance with the Annual Accounts Act and present fairly, in all
material respects, the ﬁ nancial position of parent company as of
31 December 2022 and its ﬁ nancial performance and cash ﬂ ow for
the year then ended in accordance with the Annual Accounts Act.
The consolidated accounts have been prepared in accordance with
the Annual Accounts Act and present fairly, in all material respects,
the ﬁ nancial position of the Group as of 31 December 2022 and their
ﬁ nancial performance and cash ﬂ ow for the year then ended in
accordance with International Financial Reporting Standards (IFRS),
as adopted by the EU, and the Annual Accounts Act. The statutory
administration report is consistent with the other parts of the annual
accounts and consolidated accounts.

We therefore recommend that the general meeting of shareholders

adopts the income statement and balance sheet for the parent
company and the Group.

Our opinions in this report on the annual accounts and consol-
idated accounts are consistent with the content of the additional
report that has been submitted to the parent company's audit com-
mittee in accordance with the Audit Regulation (537/2014) Article 11.

Basis for Opinions
We conducted our audit in accordance with International Standards on
Auditing (ISA) and generally accepted auditing standards in Sweden.
Our responsibilities under those standards are further described in
the Auditor’s Responsibilities section. We are independent of the parent
company and the Group in accordance with professional ethics
for accountants in Sweden and have otherwise fulﬁ lled our ethical
responsibilities in accordance with these requirements. This includes
that, based on the best of our knowledge and belief, no prohibited
services referred to in the Audit Regulation (537/2014) Article 5.1 have
been provided to the audited company or, where applicable, its
parent company or its controlled companies within the EU.

We believe that the audit evidence we have obtained is suﬃ cient

and appropriate to provide a basis for our opinions.

Our audit approach
We designed our audit by determining materiality and assessing the
risks of material misstatement in the consolidated ﬁ nancial statements.
In particular, we considered where management made subjective
judgements; for example, in respect of signiﬁ cant accounting estimates
that involved making assumptions and considering future events that
are inherently uncertain. As in all of our audits, we also addressed the
risk of management override of internal controls, including among
other matters consideration of whether there was evidence of bias that
represented a risk of material misstatement due to fraud.

We tailored the scope of our audit in order to perform suﬃ cient
work to enable us to provide an opinion on the consolidated ﬁ nan-
cial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in
which the Group operates.

The ﬁ nancial statements of the Electrolux Group consists of some

200 reporting units operating in 55 countries all over the world.
The operations are managed and monitored through the regional
Business areas – Europe, North America, Latin America and
Asia-Paciﬁ c Middle East and Africa. We have therefore scoped our
audit procedures for the reporting units within each Business area,
taking into account control environment and business processes
at the individual reporting unit level but also by assessing business
performance reviews and management oversight and follow-up
activities on Business area level.

In establishing the overall Group audit strategy and plan, we deter-
mined the type of work that needed to be performed at the reporting
units in scope by component auditors. For the most signiﬁ cant entities
we required a full audit on their complete ﬁ nancial reporting, for
others we required speciﬁ ed audit procedures for the most signiﬁ cant
proﬁ t and loss and/or balance sheet accounts depending on the
nature of operations conducted at the reporting unit.

The group consolidation, ﬁ nancial statement disclosures and

a number of complex transactions were audited by the Group
engagement team. These include pensions, tax provisions and
impairment of goodwill.

In addition, we have applied a centralized Group audit approach

with respect to the Electrolux Control System (ECS), where key pro-
cesses and controls are documented and tested by management
and quality assured by internal audit , all of which is evidenced in
a global internal control tool. The result from the centralized testing
regarding ECS and centralized IT systems was shared with local
auditors. Local teams was then instructed how to carry out their
audit procedures based on the shared information.

The reporting units in scope for the Group audit procedures rep-
resent approximately 75 percentage of Group net sales. In addition,
the Group audit team have carried out analytical procedures on
Business area level to include also smaller reporting units. Local
statutory audit procedures are conducted for all companies in the
Group subject to statutory audit requirements by law.

Our audit is carried out continuously during the year. In connection
with the issuance of the interim report for the second quarter, we
report our observations to Group management, Business area
management and the Audit Committee. At year end, we also report
our main observations to the entire Board of Directors. For the second
quarter, we issue a public interim review report.

The scope of our audit was inﬂ uenced by our application of
materiality. An audit is designed to obtain reasonable assurance
whether the ﬁ nancial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be
expected to inﬂ uence the economic decisions of users taken on the
basis of the consolidated ﬁ nancial statements.

Based on our professional judgment, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated ﬁ nancial statements. These, together
with qualitative considerations, helped us to determine the scope of
our audit and the nature, timing and extent of our audit procedures
and to evaluate the eﬀ ect of misstatements, both individually and in
aggregate on the ﬁ nancial statements as a whole.

Key Audit Matters
Key audit matters of the audit are those matters that, in our profes-
sional judgment, were of most signiﬁ cance in our audit of the annual
accounts and consolidated accounts of the current period. These
matters were addressed in the context of our audit of, and in forming
our opinion thereon, the annual accounts and consolidated accounts
as a whole, but we do not provide a separate opinion on these matters.

Revenue recognition in the appropriate period
Revenue is an important measure in terms of business follow-up and
execution on the Electrolux Group strategies and comprise mainly of
sales of appliances to retailers. Revenue also represents a signiﬁ cant
line item in the Group consolidated income statement amounting to
SEK 134.9bn in 2022. The vast majority of the Group’s revenue consists
of straight-forward product sales where revenue is recognized when
the signiﬁ cant risks and rewards connected with ownership of goods
have been transferred to the buyer. In our audit of revenue recogni-
tion, correct cut-oﬀ is considered a matter of high importance due to
the complexity in transaction ﬂ ows. Disclosures in Note 4 Net sales
and operating income, provides additional information on how the
Group accounts for its revenue.

Our audit included a combination of testing of selected internal
controls over ﬁ nancial reporting with respect to revenue recognition,
analytical procedures and detailed tests of signiﬁ cant customer
contracts. Diﬀ erent contracts may contain diﬀ erent delivery terms
that need to be considered in terms of revenue recognition. Our
audit also included, if considered, material a sample tests of proof
of delivery to conﬁ rm that risk had been transferred to the customer

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022 110

as well as data analytics relating to manual and automated journal
entries to ascertain reporting in the correct period.

supporting documentation and read the presentation of the costs
relating to programs for eﬃ ciency measures in the annual report.

Directors and the Managing Director intend to liquidate the company,
to cease operations, or has no realistic alternative but to do so.

Valuation of inventory
Electrolux keeps a signiﬁ cant stock of raw materials, components
and work-in-progress at its production units and stores ﬁ nished
goods mostly at its sales units and distribution centers. Valuation
of inventory is important for a fair presentation of gross margin.
Inventory is also a signiﬁ cant item in the consolidated balance sheet
and amounted to SEK 24.4bn as of December 31, 2022. In 2022 high
cost inﬂ ation and decreasing customer demand have been speciﬁ c
considerations. Valuation of inventory and provisions for obsoles-
cence requires clear policies and is subject to management’s esti-
mates. Note 15 Inventories, provides information about the Group’s
accounting principles for measuring inventory and additional infor-
mation on the line item.

Other opinions
The audit of the annual report and consolidated accounts for the
ﬁ nancial year 2021 has been performed by another auditor, who
has issued an auditor’s report dated 22 February 2022, with unqual-
iﬁ ed opinions in the Report of annual accounts and consolidated
accounts.

Other information than the annual accounts and
consolidated accounts
This document also contains other information than the annual
accounts and consolidated accounts and is found on pages 2-13,
51-55 and 112-121. The Board of Directors and the Managing Director
are responsible for this other information.

In our audit we have assessed the companies’ inventory processes

Our opinion on the annual accounts and consolidated accounts

including routines for valuation and assessment of obsolescence in
order to gain an understanding of risks and controls. Considering the
company’s operations, system support, inventory turnover and other
relevant factors we have tested the obsolescence models in the sub-
sidiaries against accounting principles. We have traced the disclo-
sures information included in Note 15 Inventories to the accounting
records and other supporting documentation and ensured that they
are in line with the disclosure requirements.

Costs for eﬃ ciency measures
Electrolux has announced a cost reduction and North America turn-
around program. The purpose of the program is to mitigate a slower
demand environment and to ensure optimized eﬃ ciency and cover
initiatives across all business areas. In 2022, the Group has recorded
costs for the program amounting to SEK 1.5bn. The vast majority of the
costs are provisions involving management estimates on the timing
and measurement of costs for reducing the number of employees. An
accurate reporting of an eﬃ ciency program involves management
estimates on the timing and measurement of costs for reducing the
number of employees. This includes impact on other costs that the
eﬃ ciency measures give rise to as well as the presentation of the
eﬀ ects on the business going forward. Note 23 Other provisions, pro-
vide information on the Group’s accounting principles for measuring
restructuring costs and additional information on the line item.
Our audit included reading the detailed plans for eﬃ ciency

measures presented to the board as documentation to support the
decisions. We also obtained evidence on a sample basis that the
criteria for recording provisions were met and properly recorded as
well as assessed management’s measurement of provisions through
evaluation of a sample of supporting documentation. In addition
we traced disclosure information to accounting records and other

does not cover this other information and we do not express any
form of assurance conclusion regarding this other information.

In connection with our audit of the annual accounts and con-
solidated accounts, our responsibility is to read the information
identiﬁ ed above and consider whether the information is materially
inconsistent with the annual accounts and consolidated accounts.
In this procedure we also take into account our knowledge other-
wise obtained in the audit and assess whether the information other-
wise appears to be materially misstated.

If we, based on the work performed concerning this information,
conclude that there is a material misstatement of this other informa-
tion, we are required to report that fact. We have nothing to report
in this regard.

Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are responsible
for the preparation of the annual accounts and consolidated
accounts and that they give a fair presentation in accordance
with the Annual Accounts Act and, concerning the consolidated
accounts, in accordance with IFRS as adopted by the EU. The Board
of Directors and the Managing Director are also responsible for such
internal control as they determine is necessary to enable the prepa-
ration of annual accounts and consolidated accounts that are free
from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, The
Board of Directors and the Managing Director are responsible for the
assessment of the company's and the Group's ability to continue as a
going concern. They disclose, as applicable, matters related to going
concern and using the going concern basis of accounting. The going
concern basis of accounting is however not applied if the Board of

The Audit Committee shall, without prejudice to the Board of
Directors’ responsibilities and tasks in general, among other things
oversee the company’s ﬁ nancial reporting process.

Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether
the annual accounts and consolidated accounts as a whole are
free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs and generally accepted
auditing standards in Sweden will always detect a material mis-
statement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they
could reasonably be expected to inﬂ uence the economic decisions
of users taken on the basis of these annual accounts and consoli-
dated accounts.

A further description of our responsibility for the audit of the annual

accounts and consolidated accounts is available on Revisor s-
inspektionen’s website: www.revisorsinspektionen.se/revisornsansvar.
This description is part of the auditor’s report.

Report on other legal and regulatory requirements
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the administration of the Board
of Directors and the Managing Director of AB Electrolux (publ) for
the year 2022 and the proposed appropriations of the company’s
proﬁ t or loss.

We recommend to the general meeting of shareholders that the

proﬁ t be appropriated in accordance with the proposal in the
statutory administration report and that the members of the Board
of Directors and the Managing Director be discharged from liability
for the ﬁ nancial year.

Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those stan-
dards are further described in the Auditor’s Responsibilities section.
We are independent of the parent company and the Group in accor-
dance with professional ethics for accountants in Sweden and have
otherwise fulﬁ lled our ethical responsibilities in accordance with
these requirements.

We believe that the audit evidence we have obtained is suﬃ cient

and appropriate to provide a basis for our opinions.

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022 111

Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors is responsible for the proposal for appropri-
ations of the company’s proﬁ t or loss. At the proposal of a dividend,
this includes an assessment of whether the dividend is justiﬁ able
considering the requirements which the company's and the Group's
type of operations, size and risks place on the size of the parent
company's and the Group’s equity, consolidation requirements,
liquidity and position in general.

The Board of Directors is responsible for the company’s organi-
zation and the administration of the company’s aﬀ airs. This includes
among other things continuous assessment of the company's and
the Group's ﬁ nancial situation and ensuring that the company’s
organization is designed so that the accounting, management of
assets and the company’s ﬁ nancial aﬀ airs otherwise are controlled
in a reassuring manner. The Managing Director shall manage the
ongoing administration according to the Board of Directors’ guide-
lines and instructions and among other matters take measures that
are necessary to fulﬁ ll the company’s accounting in accordance with
law and handle the management of assets in a reassuring manner.

Auditor’s responsibility
Our objective concerning the audit of the administration, and
thereby our opinion about discharge from liability, is to obtain audit
evidence to assess with a reasonable degree of assurance whether
any member of the Board of Directors or the Managing Director in
any material respect:
• has undertaken any action or been guilty of any omission which
can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act,
the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations
of the company’s proﬁ t or loss, and thereby our opinion about this,
is to assess with reasonable degree of assurance whether the pro-
posal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with generally
accepted auditing standards in Sweden will always detect actions
or omissions that can give rise to liability to the company, or that the
proposed appropriations of the company’s proﬁ t or loss are not in
accordance with the Companies Act.

A further description of our responsibility for the audit of the
administration is available on Revisorsinspektionen’s website:
www.revisorsinspektionen.se/revisornsansvar. This description is part
of the auditor’s report.

PricewaterhouseCoopers AB, Stockholm, was appointed auditor
of AB Electrolux by the general meeting of the shareholders on the
30 March 2022 and has been the company’s auditor since the
30 March 2022.

The auditor’s examination of the Esef report
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also examined that the Board of Directors and
the Managing Director have prepared the annual accounts and
consolidated accounts in a format that enables uniform electronic
reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of
the Swedish Securities Market Act (2007:528) for AB Electrolux (publ)
for the ﬁ nancial year 2022.

Our examination and our opinion relate only to the statutory

requirements.

In our opinion, the Esef report has been prepared in a format that,

in all material respects, enables uniform electronic reporting.

Basis for opinion
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the Esef report. Our
responsibility under this recommendation is described in more
detail in the Auditors’ responsibility section. We are independent
of AB Electrolux (publ) in accordance with professional ethics for
accountants in Sweden and have otherwise fulﬁ lled our ethical
responsibilities in accordance with these requirements.

We believe that the evidence we have obtained is suﬃ cient

and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are responsible
for ensuring that the Esef report has been prepared in accordance
with the Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528), and for such internal control that the Board of Directors
and the Managing Director determine is necessary to prepare the Esef
report without material misstatements, whether due to fraud or error.

Auditor’s responsibility
Our responsibility is to form an opinion with reasonable assurance
whether the Esef report is in all material respects prepared in a for-
mat that meets the requirements of Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), based on the procedures
performed.

RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the Esef report is prepared in a format
that meets these requirements.

Reasonable assurance is a high level of assurance, but it is not a

guarantee that an engagement carried out according to RevR 18
and generally accepted auditing standards in Sweden will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to inﬂ uence the
economic decisions of users taken on the basis of the ESEF report.

The audit ﬁ rm applies ISQC 1 Quality Control for Firms that Perform
Audits and Reviews of Financial Statements, and other Assurance
and Related Services Engagements and accordingly maintains a
comprehensive system of quality control, including documented
policies and procedures regarding compliance with professional
ethical requirements, professional standards and legal and regula-
tory requirements.

The reasonable assurance engagement involves obtaining evi-
dence, through various procedures, that the Esef report has been
prepared in a format that enables uniform electronic reporting of the
annual accounts. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstate-
ment in the report, whether due to fraud or error. In carrying out this
risk assessment, and in order to design procedures that are appro-
priate in the circumstances, the auditor considers those elements of
internal control that are relevant to the preparation of the Esef report
by the Board of Directors and the Managing Director, but not for the
purpose of expressing an opinion on the eﬀ ectiveness of those internal
controls. The reasonable assurance engagement also includes an
evaluation of the appropriateness and reasonableness of assumptions
made by the Board of Directors and the Managing Director.

The procedures mainly include a technical validation of the Esef
report, i.e. if the ﬁ le containing the Esef report meets the technical
speciﬁ cation set out in the Commission’s Delegated Regulation (EU)
2019/815 and a reconciliation of the Esef report with the audited
annual accounts and consolidated accounts.

Furthermore, the procedures also include an assessment of

whether the Esef report has been marked with iXBRL which enables
a fair and complete machine-readable version of the consolidated
statement of ﬁ nancial performance, statement of ﬁ nancial position,
statement of changes in equity and the statement of cash ﬂ ow.

Stockholm, February 21, 2023

PricewaterhouseCoopers AB
Signature on Swedish original

Peter Nyllinge
Authorized Public Accountant
Partner in charge

Helena Kaiser de Carolis
Authorized Public Accountant

This is a translation of the Swedish language original.
In the event of any diﬀ erences between this translation and
the Swedish language original, the latter shall prevail.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 112

Additional
information

Eleven-year review

Operations by business area yearly

Quarterly information

Deﬁ nitions

Annual General Meeting

Reports and events

113

115

116

118

120

121

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 113

Eleven-year review

SEKm

Net sales and income

Net sales

Organic growth, %

Depreciation and amortization

Items aﬀ ecting comparability2)/ Non-recurring items6)

Operating income

Income after ﬁ nancial items

Income for the period

Cash ﬂ ow

Cash ﬂ ow from operations

Cash ﬂ ow from investments

20121)

2013

2014

2015

2016

20171)

2018

20187)

2019

2020

2021

2022

5 years

10 years

Compound annual
growth rate, %

109,994

109,151

112,143

123,511

121,093 120,771

124,129 115,463

118,981

115,960 125,631

134,880

2.2

2.8

5.5

4.5

1.1

2.2

–1.1

–0.4

1.3

1.2

–1.0

3.2

14.2

–2.8

3,251

3,356

–1,032

–2,475

4,000

3,154

2,365

1,580

904

672

3,671

–1,199

3,581

2,997

2,242

3,936

3,934

3,977

4,150

3,981

4,821

4,587

4,489

5,390

—

2,741

2,101

1,568

—

6,274

5,581

4,493

— –1,343

–1,343

–1,344

—

–727

–1,046

7,407

6,966

5,745

5,310

4,887

3,805

4,176

3,754

2,854

3,189

2,456

1,820

5,778

5,096

3,988

6,801

6,255

4,678

–215

–1,672

–1,320

n.m.

7,080

4,455

7,822

8,267

10,165

10,024

8,046

–4,702

–4,734

–3,759

–3,403

–2,557 –8,200 –6,506

—

7,314

— –6,994

11,932

–5,115

7,059

–2,274

n.m.

–6,815

–6,962

of which capital expenditure in property, plant and equipment

–4,090

–3,535

–3,006

–3,027

–2,830

–3,892

–4,650

— –5,320

–4,325

–4,847 –5,649

Cash ﬂ ow from operations and investments

2,378

–279

4,063

4,864

7,608

1,824

1,540

Cash ﬂ ow from operations and investments excluding acquisitions and
divestment of operations

Dividend, redemption and repurchase of shares

Capital expenditure in property, plant and equipment as % of net sales

2,542

–74

–1,868

–1,860

3.7

3.2

4,132

–1,861

2.7

4,955

7,432

5,229

2,149

–1,870

–1,868

–2,155

–2,385

–2,443

–2,012

–8,079 –4,659

2.5

2.3

3.2

3.7

3.9

4.5

3.7

3.9

4.2

—

321

6,816

244

–9,236

n.m.

348

6,824

1,250

–8,868

Margins3)

Operating margin, %

Income after ﬁ nancial items as % of net sales

Financial position

Total assets

Net assets

Working capital

Trade receivables

Inventories

Accounts payable

Total equity

Interest-bearing liabilities

Provisions for post-employment beneﬁ ts, net

Net debt

Footnotes, see next page.

4.6

3.8

3.7

3.1

3.2

2.7

2.2

1.7

5.2

4.6

6.1

5.8

4.3

3.9

3.6

3.3

2.7

2.1

5.0

4.4

5.4

5.0

–0.2

–1.2

75,194

76,001 85,688

83,471 85,848

89,542

97,312

— 106,808 99,604 107,607 127,102

25,890

24,961

26,099

21,412

18,098

20,678

23,574 20,306

26,172

20,265

27,201 40,297

–6,505

–5,800

–8,377 –12,234 –14,966 –15,873 –16,848 –17,077 –17,390

–19,191

–17,726 –13,731

18,288

12,963

19,441

20,663

17,745

19,408

20,747

21,482

19,824

20,847

19,944

23,110

21,487

12,154

14,324

14,179

13,418

14,655

16,750

15,451

16,194

13,213

20,478

24,374

20,590 20,607 25,705

26,467

28,283

31,114 34,443 32,996 33,892

31,306

38,182 38,357

15,726

14,308

16,468

15,005

17,738 20,480

21,749

— 22,574

18,709

18,610

16,449

13,088

14,905

14,703

13,097

10,202

4,479

2,980

10,164

10,653

4,763

9,631

4,509

6,407

4,169

360

9,537

2,634

197

9,982

3,814

1,825

— 10,989

15,412

15,681

37,075

—

3,866

7,683

3,679

1,556

891

–245

8,591

23,848

7.3

14.3

0.7

10.7

4.3

–4.3

31.2

n.m.

161.0

5.4

4.5

5.7

6.5

6.2

0.5

11.0

n.m.

8.9

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Annual Report 2022 114

SEKm

Data per share, SEK

Income for the period

Equity

Dividend4)

20121)

2013

2014

2015

2016

20171)

2018

20187)

2019

2020

2021

2022

5 years

10 years

Compound annual
growth rate, %

8.26

6.50

2.35

6.50

7.83

57.52

6.50

5.45

52.21

6.50

15.64

61.72

7.50

19.99

71.26

8.30

13.24

75.67

8.50

9.93

6.33

—

78.55

8.50

7.00

13.88

65.10

8.00

16.31

65.74

9.20

–4.81

60.92

—

0.8

1.3

4.2

8.4

–1.0

3.5

–1.9

Trading price of B-shares at year-end

170.50

168.50

228.80 205.20

226.30 264.30

187.10

229.90

191.35

219.50

140.78

–11.8

Key ratios

Return on equity, %

Return on net assets, %

Net assets as % of net sales5)

Trade receivables as % of net sales5)

Inventories as % of net sales5)

Net debt/EBITDA

Net debt/equity ratio

Interest coverage ratio

Dividend as % of total equity

Other data

Average number of employees

Salaries and remuneration

Number of shareholders

14.4

14.8

22.5

15.9

11.3

1.2

0.65

2.72

11.8

4.4

5.8

21.8

17.0

10.6

1.4

0.74

2.11

13.0

15.7

14.2

20.4

16.2

11.2

1.1

0.58

5.16

11.3

9.9

11.0

17.3

14.3

11.5

1.0

0.43

3.75

12.4

29.4

29.9

14.2

15.2

10.5

0.0

0.02

3.75

10.5

31.9

36.0

17.5

12.4

0.0

0.01

12.16

11.6

18.2

22.7

19.0

17.3

13.5

–

0.08

9.05

11.2

—

20.2

17.5

17.1

13.4

0.2

—

11.4

12.0

22.3

17.7

13.8

0.8

0.34

2.57

10.8

34.1

22.6

22.0

18.6

12.3

0.2

0.08

5.04

10.8

24.4

28.5

19.0

17.9

15.9

0.7

0.46

7.29

12.4

–7.0

–0.6

27.2

15.6

17.7

3.8

1.45

0.18

—

59,478 60,754 60,038 58,265 55,400 55,692

54,419

51,253 48,652 47,543

51,590

50,769

13,785

13,521

14,278

15,858

15,886

16,470

17,363

15,829

16,318

15,666

16,829

19,644

51,800

51,500 46,500 45,485 48,939 45,295 49,870 49,870 50,544

59,401

73,578 83,248

–1.8

3.6

12.9

–0.3

3.6

4.9

Average number of shares after buy-backs, million

Shares at year end after buy-backs, million

285.9

286.1

286.2

286.3

287.1

287.4

286.9

283.1

274.7

270.0

1) Amounts for 2012 have been restated where applicable as a consequence of the amended standard for pension accounting, IAS 19 Employee Beneﬁ ts and 2017 as a consequence of the introduction of IFRS 15 Revenue from Contracts with Customers.
2) As of 2015 the accounting concept of Items aﬀ ecting comparability is no longer in use. As from 2018, non-recurring items are presented, see page 118 for deﬁ nition.
3) Items aﬀ ecting comparability are excluded for the years 2012 och 2013. 2014 has been restated.
4) 2022: Proposed by the Board.
5) Annualized net sales, calculated at end of period exchange rates.
6) For more information, see Note 7.
7) Certain amounts have been restated for discontinued operations as a consequence of the distribution of the Professional business area in 2020.

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Electrolux Annual Report 2022 115

Operations by business area yearly

SEKm

Europe

Net sales

Operating income

Margin, %

North America

Net sales

Operating income

Margin, %

Latin America

Net sales

Operating income

Margin, %

Asia-Paciﬁ c, Middle East and Africa

Net sales

Operating income

Margin, %

Other

2018

20191)

2020

2021

2022

Non-recurring items1)

43,321

45,420

46,038

49,384

46,573

2,128

4.9

2,493

5.5

3,643

4,002

7.9

8.1

683

1.5

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Group common cost

Total Group

20182)

–747

–596

—

20193)

–752

–1,071

1,101

–398

–224

–1,343

–1,344

2020

—

20214)

—

–727

—

–727

20225)

–774

241

–80

–66

–367

–1,046

1) For more information, see Note 7 in the annual reports.
2) Non-recurring items 2018: SEK –596m refers to the consolidation of freezer production in North America, SEK –747m refers to business area Europe and

includes a ﬁ ne of SEK –493m, relating to an investigation by the French Competition Authority, and a cost of SEK –254m relating to an unfavorable court
ruling in France.

3) Non-recurring items 2019: SEK –829m relates to the consolidation of U.S. cooking production and SEK –225m to the closure of a refrigeration production

line in Latin America, recovery of overpaid sales tax in Brazil of SEK 1,403m, a legal settlement in the U.S. of SEK –197m and restructuring charges for
eﬃ ciency measures and outsourcing projects across business areas and Group common costs of SEK –1,496m.

4) Non-recurring items 2021: SEK -727m referes to business area North America and arbitration in U.S. tariﬀ case on washing machines imported in to the

U.S. from Mexico in 2016/2017.

5) Non-recurring items 2022: SEK 656m refers to a settlement regarding the arbitration in U.S. tariﬀ case, SEK – 350m to a loss from the exit from the Rus-

sian market, SEK -1,536m to restructuring charges across business areas and Group common cost for the Group-wide cost reduction and North Amer-
ica turnaround program, SEK 394m to the divestment of the oﬃ ce facility in Zürich, Switzerland, and SEK -210m to the termination of a U.S pension plan,
transferred to a third party.

39,804

38,954

38,219

40,468

1,104

2.8

–516

–1.3

1,215

3.2

688

1.7

47,021

–2,394

–5.1

17,963

19,653

16,915

492

2.7

1,821

9.3

666

3.9

19,958

1,336

6.7

24,303

1,058

4.4

14,375

14,954

979

6.8

446

3.0

14,788

1,038

7.0

15,820

1,511

9.6

16,984

1,308

7.7

Operating income, Group common costs, etc.

–527

–1,055

–783

–737

–870

Total Group

Net sales

Operating income

Margin, %

115,463

118,981

115,960

125,631

134,880

4,176

3.6

3,189

2.7

5,778

5.0

6,801

5.4

–215

–0.2

1) Earlier years presented have been restated due to changes in the business area structure in 2019.

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Electrolux Annual Report 2022 116

Quarterly information

Net sales and income by business area per quarter

SEKm

Europe

Net sales

Operating income

Operating margin, %

North America

Net sales

Operating income

Operating margin, %

Latin America

Net sales

Operating income

Operating margin, %

Asia-Paciﬁ c, Middle East and Africa

Net sales

Operating income

Operating margin, %

Other

Q1
2022

11,535

602

5.2

9,940

752

7.6

4,761

1.8

3,882

284

7.3

Q2
2022

11,345

142

1.2

11,905

–270

–2.3

6,628

303

4.8

4,231

426

10.1

Q3
2022

11,107

0.7

12,909

–1.227

–9.5

6,518

440

6.8

4,710

511

10.8

Q4
2022

Full year
2022

12,586

–135

–1.1

12,266

–1,649

–13.4

6,755

229

3.4

4,162

2.1

46,573

683

1.5

47,021

–2,394

–5.1

24,303

1,058

4.4

16,984

1,308

7.7

Q1
2021

11,637

1,122

9.6

9,002

493

5.5

4,516

423

9.4

3,871

393

10.1

Q2
2021

11,721

1,013

8.6

10,132

558

5.5

4,782

327

6.8

3,668

312

8.5

Q3
2021

11,905

833

7.0

10,378

196

1.9

4,910

387

7.9

3,736

362

9.7

Q4
2021

Full year
2021

14,122

1,034

7.3

10,955

–559

–5.1

5,750

200

3.5

4,545

445

9.8

49,384

4,002

8.1

40,468

688

1.7

19,958

1,336

6.7

15,820

1,511

9.6

Operating income, common group costs, etc.

–148

–41

–184

–497

–870

–134

–226

–139

–237

–737

Total Group

Net sales

Operating income

Operating margin, %

Income for the period
Earnings per share, SEK1)

Number of shares after buy-backs, million

Average number of shares after buy-backs, million

1) Basic, based on average number of shares, excluding shares owned by Electrolux.

30,118

1,575

5.2

950

3.40

278.0

279.5

33,749

35,244

560

1.7

257

0.93

274.3

276.3

–385

–1.1

–605

–2.23

270.0

272.0

35,769

–1,964

–5.5

–1,922

–7.12

270.0

134,880

–215

–0.2

–1,320

–4.81

270.0

274.7

29,026

2,297

7.9

1,556

5.41

287.4

30,303

30,929

35,372

125,631

1,983

6.5

1,383

4.81

287.4

1,639

5.3

1,143

3.98

287.4

882

2.5

596

2.09

283.1

285.6

6,801

5.4

4,678

16.31

283.1

286.9

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Electrolux Annual Report 2022 117

Non-recurring items1)

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Common Group cost

Total Group

Q1
20222)

—

656

—

656

Q2
2022

—

Q3
20223)

–350

—

–350

Q4
20224)

–424

–415

–80

–66

–367

–1,352

Full year
2022

–774

241

–80

–66

–367

–1,046

Q1
2021

—

Q2
2021

—

Q3
2021

—

Q4
20215)

—

–727

—

Full year
2021

—

–727

—

–727

1) For more information, see Note 7.
2) The non-recurring item of SEK 656m in the ﬁ rst quarter of 2022 refers to business area North America and a settlement regarding the arbitration in U.S. tariﬀ case on washing machines imported into the U.S. from Mexico in 2016/2017.
3) The non-recurring item of SEK -350m in the third quarter of 2022 refers to the business area Europe and the exit from the Russia market.
4) The non-recurring items of SEK -1,352m in the fourth quarter of 2022 refer to restructuring charge of SEK -1,536m for the Group-wide cost reduction and North America turnaround program, a capital gain of SEK 394m for the divestment

of Electrolux oﬃ ce facility in Zürich, Switzerland, and SEK -210m from the termination of a U.S. pension plan, transferred to a third party.

5) Non-recurring item of SEK -727m in the fourth quarter of 2021 refers to business area North America and arbitration in U.S. tariﬀ case on washing machines imported into the U.S. from Mexico in 2016/2017.

CEO statement

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Additional information

Electrolux Annual Report 2022 118

Deﬁ nitions

This report includes ﬁ nancial measures as required by the ﬁ nancial
reporting framework applicable to Electrolux, which is based on
IFRS. In addition, there are other measures and indicators that are
used to follow up, analyze and manage the business and to provide
Electrolux stakeholders with useful ﬁ nancial information on the
Group’s ﬁ nancial position, performance and development in a con-
sistent way. These other measures and indicators are considered
essential in supporting the Group’s ﬁ nancial goals to achieve a
combination of continuous growth, high proﬁ tability, a stable cash
ﬂ ow, and an optimal capital base to generate a high total return for
Electrolux shareholders. Thus, there are measures related to growth,
proﬁ tability and capital, share-based measures and capital indica-
tors which are considered relevant to present on a continuous basis.
Below is a list of deﬁ nitions of all measures and indicators used,
referred to and presented in this report.

Computation of average amounts and annualized income
statement measures
In computation of key ratios where averages of capital balances
are related to income statement measures, the average capital
balances are based on the opening balance and all quarter-end
closing balances included in the reporting period, and the income
statement measures are annualized, translated at average rates
for the period. In computation of key ratios where end-of-period
capital balances are related to income statement measures, the
latter are annualized, translated at end-of-period exchange rates.
The calculation of Net debt/EBITDA is an exception, see deﬁ nition
below. Adjustments are made for acquired and divested operations.

Growth measures

Change in net sales
Current year net sales for the period less previous year net sales for
the period as a percentage of previous year net sales for the period.

Sales growth
Change in net sales adjusted for currency translation eﬀ ects.

Organic growth
Change in net sales, adjusted for changes in exchange rates,
acquisitions and divestments.

Return on net assets
Operating income (annualized) expressed as a percentage
of average net assets.

Return on equity
Income for the period (annualized) expressed as a percentage
of average total equity.

Capital measures
Net debt/equity ratio
Net debt in relation to total equity.

Acquisitions
Change in net sales, adjusted for organic growth, changes in
exchange rates and divestments. The impact from acquisitions
relates to net sales reported by acquired operations within 12 months
after the acquisition date.

Net debt/EBITDA
Net debt at end of period in relation to EBITDA, excluding
non-recurring items, calculated at average rates for the period.

Equity/assets ratio
Total equity as a percentage of total assets less liquid funds.

Divestments
Change in net sales, adjusted for organic growth, changes in
exchange rates and acquisitions. The impact from divestments
relates to net sales reported by the divested operations within
12 months before the divestment date.

Proﬁ tability measures

EBITA
Operating income excluding amortization of intangible assets.

EBITA margin
EBITA expressed as a percentage of net sales.

EBITDA
Operating income excluding depreciation and amortization.

Operating margin (EBIT margin)
Operating income (EBIT) expressed as a percentage of net sales.

Operating margin (EBIT margin) excluding non-recurring items
Operating income (EBIT) excluding non-recurring items, expressed
as a percentage of net sales.

Capital turnover-rate
Net sales (annualized) divided by average net assets.

Share-based measures

Earnings per share, Basic
Income for the period attributable to equity holders of the Parent
Company divided by the average number of shares excluding
shares held by Electrolux.

Earnings per share, Diluted
Income for the period attributable to equity holders of the Parent
Company divided by the average number of shares after dilution,
excluding shares held by Electrolux.

Equity per share
Total equity divided by total number of shares excluding shares
held by Electrolux.

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022 119

Capital indicators

Liquid funds
Cash and cash equivalents, short-term investments, ﬁ nancial
derivative assets1) and prepaid interest expenses and accrued
interest income1).

Liquid funds in relation to net sales
The sum of liquid funds and non-utilized credit facilities divided
by annualized net sales.

Operating working capital
Inventories and trade receivables less accounts payable.

Working capital
Total current assets exclusive of liquid funds, less non-current other
provisions and total current liabilities exclusive of total short-term
borrowings.

Net assets
Total assets exclusive of liquid funds and pension plan assets,
less deferred tax liabilities, non-current other provisions and total
current liabilities exclusive of total short-term borrowings.

Total borrowings
Long-term borrowings and short-term borrowings, ﬁ nancial
derivative liabilities1), accrued interest expenses and prepaid
interest income1).

Total short-term borrowings
Short-term borrowings, ﬁ nancial derivative liabilities1), accrued
interest expenses and prepaid interest income1).

Interest-bearing liabilities
Long-term borrowings and short-term borrowings exclusive
of liabilities related to trade receivables with recourse1).

Financial net debt
Total borrowings less liquid funds.

Net provision for post-employment beneﬁ ts
Provisions for post-employment beneﬁ ts less pension plan assets.

Net debt
Financial net debt, lease liabilities and net provision for post-
employment beneﬁ ts.

Other measures

Operating cash ﬂ ow after investments
Cash ﬂ ow from operations and investments adjusted for ﬁ nancial
items paid, taxes paid and acquisitions/divestments of operations.

Interest coverage ratio
Operating income plus interest income in relation to total interest
expenses.

Non-recurring items
Material proﬁ t or loss items in operating income2) which are relevant
for understanding the ﬁ nancial performance when comparing
income for the current period with previous periods.

1) See table Net debt on page 37.
2) See Note 7 for more information.

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022 120

Annual General Meeting

Electrolux Annual General Meeting will be held on March 29, 2023
at 4.00 p.m. CET at Münchenbryggeriet, Torkel Knutssonsgatan 2,
Stockholm, Sweden.

Proposal for resolution on acquisition of own shares
Electrolux has, for several years, had a mandate from the Annual
General Meetings to acquire own shares.

Additional information about the Annual General Meeting has
been published in the notice convening the Annual General Meeting.

Proposed dividend
According to the company’s dividend policy, Electrolux target
is for the dividend to correspond to approximately 50% of the
annual income. As the annual income for 2022 was negative,
the Board of Directors proposes that no dividend shall be distributed
for the ﬁ scal year 2022.

Even though the Board of Directors currently has no intention to

The purpose of the proposal is to be able to use repurchased

shares on account of potential company acquisitions, the company’s
share related incentive programs as well as to be able to adapt the
company’s capital structure.

As of December 31, 2022, Electrolux held 13,049,115 shares of
series B in Electrolux, corresponding to approximately 4.6% of the
total number of shares in the company.

Proposal for re-election of all board members
The Nomination Committee has proposed re-election of all board
members. Staﬀ an Bohman is proposed to be re-elected as Chairman
of the Board of Directors, and Petra Hedengran, Henrik Henriksson,
Ulla Litzén, Karin Overbeck, Fredrik Persson, David Porter and
Jonas Samuelson as Board members.

Kay dates regarding the AGM 2023

2022

September

23 Nomination Committee appointed

for AGM 2023

2023

February

9 Proposals from Nomination

Committee presented

March

1 Notice to AGM published at the

latest

21 Deadline for registration in share

23 Deadline for notice of intent to

participate in AGM

29 AGM 2023

CEO statement

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Financial reports

Additional information

Electrolux Annual Report 2022 121

Reports and events

The Electrolux website
www.electroluxgroup.com/ir contains
additional and updated information
about such items as business
development, strategy and the
Electrolux share, as well as a
platform for ﬁ nancial statistics.

Q4Results

2022

presentation

Jonas Samuelson, President and CEO
Therese Friberg, CFO
Sophie Arnius, Head of Investor Relations

How we create value
www.electroluxgroup.com/ir/create-value

Interim Reports
www.electroluxgroup.com/ir

Shape living
for the better

Sustainability Report 2022

Capital Markets Update
www.electroluxgroup.com/CMU

Sustainability Report
www.electroluxgroup.com/sustainabilityreport2022

Digital subscriptionservice can be accessed at
www.electroluxgroup.com/subscribe

Investor Relations www.electroluxgroup.com/ir

Remuneration
Report 2022

Remuneration Report 2022
www.electroluxgroup.com/en/remuneration-report-2022

Financial reports and
major events in 2023

Feb 2

Year-end report 2022

Mar 20

Capital Markets Update

Mar 29

Annual General Meeting

Apr 28

Interim report January–March

Jul 20

Interim report January–June

Oct 27

Interim report January–September

341

298

Printed matter

Larsson Offsettryck

Electrolux, AEG and Zanussi are registered trade-
marks of AB Electrolux. For further information about
trademarks, please contact Electrolux Group Intel-
lectual Property, Trademark.

Concept, text and production by Electrolux Investor
Relations and Hallvarsson&Halvarsson.

AB Electrolux (publ), 556009-4178
Mailing address: SE-105 45 Stockholm, Sweden | Visiting address: S:t Göransgatan 143, Stockholm
Telephone: +46 8 738 60 00 | Website: www.electroluxgroup.com