AB Electrolux (publ) Annual Report 2023

← All annual reports

FY2023 Annual Report · AB Electrolux (publ)

Loading PDF…

Shape living
for the better

Annual Report 2023

CEO statement

Governance and control

Financial reports

Additional information

The
navigation
is clickable

Electrolux Group Annual Report 2023

Contents

CEO statement

Strategy for proﬁ tability
- and growth

Driving innovation

Increasing eﬃ ciency

Broadening our climate goal

Summary 2023

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

110

111

Additional information

Eleven-year review

114

115

Operations by business area yearly 117

Quarterly information

Deﬁ nitions

Annual General Meeting

Reports and events

118

120

122

123

Our corporate reporting

Annual Report
The Annual Report for
AB Electrolux (publ), 556009-4178,
consists of pages 33-52, 69-110. The
Annual Report is adopted in Swedish.
The English version is a translation of
the Swedish original.

Remuneration Report
The Remuneration Report is available
online at: electroluxgroup.com/en/
category/corporate-governance/
remuneration-reports

Sustainability Reporting
The sustainability framework and exe-
cution are described in the Statutory
sustainability report on pages 49-50,
58-68. The full Sustainability report
is published online in March 2024 at:
electroluxgroup.com/en/category/
sustainability/sustainability-reports

electroluxgroup.com
Please ﬁ nd more information about
business development, strategy
and business areas on the
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

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Electrolux Group’s purpose is to shape living for the better by reinventing
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 our 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. Our 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.

62%

of sales

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

30%

of sales

Product categories: Washing machines,
tumble dryers and dishwashers.

of sales

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Electrolux Group 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.

Consistently increasing operational eﬃ ciency through digitalization,
automation and modularization is key to improve proﬁ tability and enable
proﬁ table growh. Sustainability is an integral part of Electrolux Group’s strategy.
A solid balance sheet facilitates proﬁ table growth.

Electrolux Group’s headquarters are located in Stockholm, Sweden, and the company’s shares are
listed on Nasdaq Stockholm.

Strategy for proﬁ table growth

Financial targets

Operating
margin

Return on net
assets

≥6%

>20%

Sales
growth

≥4%

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.

Sales in ~120 markets for a total of SEK 134bn in 2023

Sales by region

34%

21%

34%

Sales by brand

Other, 20%

39%

Driving sustainable
consumer experience
innovation

Increasing eﬃ ciency
through digitalization,
automation and
modularization

Solid balance sheet facilitates
proﬁ table growth

28%1)

1) Includes Frigidaire Gallery and Frigidaire Professional.

13%

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

“ Sharpened strategic
focus and further steps
to reduce costs”

2023 proved to be another challenging year with
continued weak consumer demand and increased
competitive pressure in our industry. To restore margins
and return to proﬁ table growth, we are therefore
stepping up cost reduction measures, simplifying our
organizational structure, and further sharpening our
strategic focus.

Net sales amounted to SEK 134bn in 2023 and organic
sales were down 4%. Operating income excluding non-
recurring items was SEK 414m (831). Operating cash
ﬂ ow after investments improved to SEK 3.1bn, compared
to SEK -6.1bn in 2022, mainly driven by a reduction in
inventories as well as lower capital expenditure.

Throughout the year, high inﬂ ation, rising interest
rates and geopolitical tensions continued to weigh
on consumer sentiment, which remained weak in
our major markets. Lower residential construction
and remodeling activity resulted in weaker market
demand in the all-important built-in kitchen category
in Europe, while overall reduced purchasing power led
to more consumers shifting to lower price points and
postponing purchases in discretionary categories.
Furthermore, price pressure increased in most of our
markets, particularly in North America, caused by
several factors, including the end of post-pandemic
supply chain constraints, signiﬁ cantly lower freight

rates, a strong U.S. dollar versus Asian currencies,
and substantial cost inﬂ ation discrepancies between
Europe and North America on the one hand, and
certain parts of Asia, on the other. Taken together,
these factors led to high promotional activity with
increased pressure on margins.

During the year, we continued to execute eﬀ ectively
on the Group-wide cost reduction and North America
turnaround program, launched in 2022. We delivered
cost savings of approximately SEK 5.5bn in 2023,
exceeding our original target of SEK 4–5bn. However, the
signiﬁ cant year-over-year cost improvement, especially
in North America, was insuﬃ cient to oﬀ set increasingly
challenging market conditions, with the industry’s high
degree of promotional activity and increased cost
competition negatively impacting both gross margin
realization and sales volumes. Hence, our North
American business area reported a loss in 2023, on a
similar level as in 2022.

To address the current challenging market conditions,
and even though the ongoing cost reduction program
is ahead of plan, we are stepping up our cost saving
eﬀ orts signiﬁ cantly, not just in our North American
operations, but for the Group as a whole. The cost
reduction target for 2024 vs 2023 is SEK 4–5bn. In
addition to these targeted cost savings, we aim to →

“ To address the current
challenging market
conditions, and even
though the ongoing
cost reduction program
is ahead of plan, we
are stepping up our
cost saving eﬀ orts
signiﬁ cantly.”

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

continue to reduce product costs at a similar annual
rate as for the period 2023–2024.

On a positive note, I am pleased with the strong
performance of our new products in higher value
categories enabled by our investment in new and
innovative modular product architectures and new
and more eﬃ cient production facilities. The increasing
share of sales of these well-received products
demonstrates that our strategy makes us competitive
when we leverage our global scale in terms of
innovation, Group-common product architecture,
modularization, and speed to market. In recent years,
product mix improvements have for the Group as a
whole contributed on average approximately SEK 1bn
a year to operating income. Despite weak consumer
demand in 2023, mix was positive for the Group also
this year, supported by our attractive product oﬀ ering
that is providing us with a solid platform to drive mix
improvements also going forward.

To restore proﬁ tability, it will be equally important to
drive commercial growth. Given the very competitive
environment, and increased consumer power fueled
by digitalization and enhanced opportunities for direct
interaction, we must as a Group become even more
focused in our commercial decisions. We are therefore
sharpening our strategic focus to grow proﬁ tably
in selected categories in the mid- and premium
segments under our main brands Electrolux, AEG, and
Frigidaire. To provide resources to execute our strategy
at speed and scale, we have initiated divestment of
non-core assets including mass appliance brands,
production of water heaters and non-strategic
real estate. Although the water heater business is
proﬁ table, and the mass appliance brands are well-
known in their respective markets, the assets targeted
for divestment do not have suﬃ ciently strong synergies
with our core strategy to warrant the necessary focus
and investment from Electrolux Group. →

Industry trends: By leveraging its global scale and focusing on consumer-centric
innovation, Electrolux Group is able to beneﬁ t from dominant long-term industry
trends and rapidly introduce new innovative and sustainable products that are
attractive in an increasingly competitive market.

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 both
social and environmen-
tal demands on manu-
facturers, to develop
and oﬀ er more sustain-
able products that meet
demands in areas such
as energy eﬃ ciency
and circularity.

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.

Global economies
of scale
In a competitive
environment with an
accelerating pace of
development, global
scale, and the ability to
modularize are becom-
ing increasingly import-
ant for innovation,
eﬃ cient manufacturing,
and marketing of sus-
tainable, high-quality
products at low costs.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

A new simpliﬁ ed organization is a key enabler to
execute successfully on our cost actions and targeted
commercial growth. We have therefore reorganized
the Group into three regional business areas and two
global product lines, Taste and Care, all reporting
directly to me. While North America and Latin America
remain two separate business areas as before, we have
combined the European business area and the Asia-
Paciﬁ c, Middle East, and Africa business area into one.
These measures will leverage our global scale with
fewer layers, resulting in increased focus and reduced
costs, as well as contributing to speed of innovation.

With all these combined measures, we remain
committed to achieving an operating margin of at
least 6% in the mid-term, executing on our strategy
with focus, speed, scale, and lower cost. These
measures are also expected to contribute positively to
cash ﬂ ow and thereby strenghten the balance sheet,
which is a prioritized area from the management
and the Board. The aim remains to maintain a solid
investment grade rating.

Strategy for proﬁ tability
– and growth

Electrolux Group 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 on industry trends that drive
the development of a changing household appliance
market. In terms of ﬁ nancial goals as part of our
strategy, our primary ﬁ nancial priority is achieving an
operating margin of at least 6%, as stated, and a return
on net assets of more than 20% over a business cycle. →

Strategy for proﬁ table growth

Financial targets

Operating
margin

Return on net
assets

≥6%

>20%

Sales
growth

≥4%

Driving sustainable
consumer experience
innovation

Increasing eﬃ ciency
through digitalization,
automation and
modularization

Solid balance sheet facilitates
proﬁ table growth

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Once these goals are achieved, our objective is sales
growth of at least 4% annually over a business cycle.

With an even sharper strategic focus, our global
scale takes on even greater signiﬁ cance. Through
our global innovation processes and modularized
product architectures, we have the ability to rapidly
and eﬃ ciently bring attractive products to market that
meet the needs and desires of our targeted consumer
groups. Digitalization and automation are additional
important elements in providing high-quality, cost-
competitive products.

Digitalization and sustainability are two major trend
drivers in our industry. In our dialogue with consumers,
sustainability is an increasingly vital component.
More environmentally friendly and resource-eﬃ cient
appliances are not only good for consumers and
society in general, but also for us as these products
typically have higher margins. At the same time, we are
increasing our focus on the aftermarket, which further
strengthens our relationship with consumers, as we are
able to provide service and solutions that maximize
product performance and lifespan. Our aftermarket
business contributes to both proﬁ table growth and
sustainable development.

Electrolux Group’s clear sustainability focus is crucial
for continued commercial success and for the
company’s social responsibility. Our sustainability
framework – For the Better 2030 – contributes to
several of the UN Sustainable Development Goals
(SDGs). We focus primarily on the four SDGs where
we see that we can contribute the most. These are:
Decent Work and Economic Growth; Responsible
Consumption and Production; Climate Action, and
Partnership for the Goals. Our long-term climate goal,
to have a net-zero value chain by 2050, is a ﬁ rmly
integrated part of our strategy. The way there involves
all colleagues in all parts of our global organization,

as well as close co-operation with a wide range of
suppliers and partners in various ﬁ elds. In order to
achieve our long-term climate goal, we also have
ambitious intermediate goals. We achieved our 2025
science-based target already in 2022 and have
therefore set a new science-based target, which
includes an even larger proportion of the value chain
than before.

Driving innovation

As we further deﬁ ne our strategic direction, we are
increasing our focus on our three main brands –
Electrolux, AEG, and Frigidaire – which together
represent 80% of total sales. Each brand has its
own distinct market position. The typical Electrolux
consumer wants a progressive, sustainable premium
brand, whereas AEG consumers seek innovation,
performance, and premium quality. The Frigidaire
consumer looks for practical and aﬀ ordable
household solutions that improve the lives of family
and friends. All three brands share the same ambition
to oﬀ er solutions that enable more sustainable living.

At Electrolux Group 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.

We focus our innovation eﬀ orts on three areas: Taste,
Care, and Wellbeing. Taste innovation includes our
kitchen appliances and is directed towards solutions
for preparing great-tasting, healthier and more
nutritious meals, and reducing food waste. Care
innovation focuses on user-friendly, resource-eﬃ cient
washing machines and tumble dryers that enable →

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

“ Our most resource-eﬃ cient
products also make good
business sense, accounting
for 29% of total units sold
and 38% of gross proﬁ t in
2023.”

clothes to be cared for, so they stay new longer; while
we target innovation eﬀ orts within Wellbeing on visually
appealing and eﬃ cient vacuum cleaners and air-
conditioning equipment that promote healthy homes.

Recognized as a sustainability leader in the appliance
industry, a substantial proportion of our innovation
eﬀ orts are aimed at developing new environmentally
friendly and resource-eﬃ cient products that can
be brought to market at scale. Our most resource-
eﬃ cient products also make good business sense: they
accounted for 29% of total units sold and 38% of gross
proﬁ t in 2023.

Resource-eﬃ cient products is our greatest contribution
to tackling climate change. Because we know that
the use phase accounts for approximately 85% of
the total carbon footprint of appliances, we work to
inspire conscious behavior and we design products
that intuitively help consumers to use them in ways that
reduce environmental footprint.

For example, with the launch of our EcoLine selection
in 2023, we have brought together Electrolux
and AEG’s most resource-eﬃ cient washing, food
preparation, dishwasher, and refrigeration products.
Washing machines that qualify as EcoLine, for
example, have several resource-saving functions
with programs that clean eﬀ ectively at 30°C, while
consuming 30% less energy than the corresponding
40-degree program. Responding to increased energy
awareness among consumers, these products are
excellent examples of how our consumer-driven
innovation creates conditions for consumers to
contribute to reduced carbon-dioxide emissions at
the same time as they save money and extend the
lifetime of their garments and keep them looking new
longer. Cutting edge innovation is crucial both for us
as a business driver and for achieving our long-term
sustainability goals.

Our innovation work also strives to strengthen
relationships with consumers throughout the entire
lifecycle of our products. An increased focus on the
aftermarket, with service and spare parts sales,
consumables, and accessories, contributes to
proﬁ table growth and supports consumers’ own
sustainability ambitions. Our investment in the
aftermarket also creates opportunities for improved
direct contact with consumers, which in turn increases
consumer loyalty and beneﬁ ts sales overall. →

Consumer direct interactions
broaden business potential and
deepen consumer loyalty

Purchase
experience

Annual
appliance
sales

Appliance
registration

Consumer
data

Extended
warranty

Proﬁ t through
B2B & D2C

Loyalty
sales

Recurring
purchase

Insights

Consum-
ables &
accessory
purchase

Repair

Feedback

Personalization

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Electrolux and AEG EcoLine highlight
energy-eﬃ cient solutions for consumers

With the launch of its Electrolux and
AEG EcoLine selection, Electrolux Group
is again responding to shifts in consumer
preferences and setting new levels of
sustainability performance. New research
highlights the value of the Group’s
consumer insight-driven innovation that
creates attractive products, which help
consumers reduce their climate footprint.

Sustainability is a key business driver for Electrolux
Group and a diﬀ erentiator for its brands. Globally,
2 out of 3 consumers consider sustainability an import-
ant factor when buying electrical appliances1 and
Electrolux Group’s most resource-eﬃ cient products
typically have a higher proﬁ t margin. As the main part of
an appliance’s climate impact occurs in the use phase,
sustainable consumer experience innovation is key for
the Group’s ability to help tackle climate change.

Responding to consumers’ increased energy
awareness
Consumer awareness and consideration for energy
usage has increased signiﬁ cantly. According to the
most recent Truth About Laundry2 report, commis-
sioned by Electrolux Group, in Europe 35 million
households have started washing at 30°C since
2020; 44% of households now wash at 30°C, and
a majority will do so by 2025 if this trend contin-
ues. Some 86% of households have tried to reduce
energy use in the past year.

In response, Electrolux Group in 2023 launched
Electrolux and AEG EcoLine. Activated in stores and
online in European markets, the EcoLine selection
includes the strongest energy labels of the Electrolux
and AEG brands per product category and high-
lights key features driving more eﬃ cient use of
resources.

Thoroughly cleans at 30°C while saving 30%
energy
The laundry appliances qualiﬁ ed for EcoLine include
models with an energy rating up to 30% better than
the best A rating3 with features such as AutoDose,
which saves detergent, and Ultrawash, which cleans
eﬃ ciently at 30°C and uses 30% less energy com-
pared to a 40°C cotton program. The ProSteam pro-
gram refreshes clothes in 25 minutes using up to 96%
less water than washing. Steam also reduces wrink-
les and the need to iron. Online, a converter4 helps
consumers translate energy eﬃ ciency into ﬁ nancial
savings. Overall, the new products launched have
been very well received, for example the new AEG
laundry range has an average 4.8 consumer star
rating on a 5-point scale. EcoLine also includes the
most energy-eﬃ cient Electrolux and AEG products
within cooking, dishwashers, and refrigeration.

1) Foresight Factory; 9,012 online respondents, global average, January 2022.
2) The research is based on data collected from 14,000 adults across 14 Euro-

pean markets between December 20, 2022, and January 16, 2023.

3) For products categorized with the EU energy label, Electrolux/AEG Eco-
Line products will always have the Group’s best energy labels as a mini-
mum criterion for selection.

4) Energy Savings Tool for websites provided by independent service pro-

vider Youreko.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Increasing eﬃ ciency

To be successful in today’s competitive market,
global scale is increasingly important. Our global size,
together with Group-wide technology and product
architecture, creates the necessary conditions to
eﬃ ciently manufacture innovative products with
high quality at competitive costs. With our detailed
consumer insights, we are able to identify early
changes in the needs and desires of our targeted
consumer groups to eﬃ ciently and rapidly introduce
new and attractive products to the market.

Modularization and automation are critical to increase
eﬃ ciency in our operations. Through modularization,
we optimize production and innovation by developing
technology and product architecture for our
appliances at Group level. This also means that we
shorten the path from innovation to product launch,
increase quality assurance, and reduce costs and
resource use in product development. Modularization
enables increased ﬂ exibility and lowers material costs,
while increased automation contributes to higher
productivity, improved quality, lower product costs
and improved workplace safety. The investment and
eﬃ ciency initiative totaling approximately
SEK 8bn, which is now in its ﬁ nal phase, further
increases eﬃ ciency in selected production facilities
in Europe and the Americas. In this way, we are able
to leverage our global scale and deploy 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-loading washing
machines.

In order to implement our strategy for proﬁ table
growth, we need to make investments that develop
innovative and sustainable digital consumer
experience solutions and eﬃ cient manufacturing. In
tougher economic times, it is even more important
to make the right investments. A better deﬁ ned and
sharpened strategic focus facilitates such decisions.

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.

A key focus for our production facilities is an even
greater degree of resource eﬃ ciency, which both
lowers costs and contributes to achieving our
sustainability goals. In addition to reduced energy
use, we have worked on lowering water use at our
factories for many years. Since 2015, we have reduced
water use by 48% and all our facilities have individually
developed plans to further reduce consumption. This
is particularly important for factories located in areas
with potential water risk, such as scarcity.

Another important initiative we are taking is to reduce
the amount of waste from our facilities. In 2023, we
recycled or recovered more than 98% of the waste
from our factories. The goal is to reach 100% and for all
our production facilities to be Zero Waste to Landﬁ ll-
certiﬁ ed by 2025. →

Signiﬁ cantly leverage our global scale and
technology deployment through global
modularized products

Refrigeration/freezers

Cooking

2018

2024

2018

2024

Dish care

Laundry1)

Non-global modularized products
Global modularized products

2018

Note: graphs show % of volume using global modules over total In-house production
volume. Global modularized products are used in more than one product and in more
than one region. The SEK 8bn re-engineering initiative was launched in 2018.

1) Front-load laundry

Executing on our global re-engineering
investments of SEK 8bn

Springﬁ eld
Anderson

Susegana

Sao Carlos
Curitiba

Refrigeration/freezers

Cooking

Investments in modularization and automation in selected factories.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Global scale and
new modular product
architectures drive
enhanced value share

Leveraging global scale is key for Electrolux Group
to drive proﬁ table growth. In North America, new
cooking products in higher value categories are
increasing their share of sales. Highly appreciated by
consumers and eﬃ ciently produced, the new ovens
and cookers are beneﬁ ting from the Group’s innovative
and modular global architectures.

Meeting consumers’ ever-evolving needs and desires, the new
Frigidaire Gallery wall ovens and front control cookers are equipped
with several new functions enhancing the user experience. Features
such as convection, air fry and no-preheat oﬀ er a variety of ways to
cook great-tasting, healthier meals. Well-received by consumers,
the new products belong to the higher-margin categories that have
increased their market share by value and grown their share of total
sales in North America.

New cooking facility in Springﬁ eld, U.S.
The latest wall ovens and new front control cookers are manufac-
tured at the new cooking facility in Springﬁ eld, U.S. Having replaced
two older plants in Springﬁ eld and Memphis, the new factory is part
of Electrolux Group’s SEK 8bn re-engineering investment initiative
along with investments in four other factories in the Group. Now in its
ﬁ nal phase, the initiative is aimed at leveraging global scale through
a high degree of modularization, automation and Group-wide inno-
vation and product development.

Increased eﬃ ciency and speed of innovation are major beneﬁ ts of

modularization. The new series of wall ovens and cookers in

North America are based on product architecture and technologies
that have already been proven to be beneﬁ cial in other plants in
the Group and successful in other markets. With common platforms,
the development of a broad variety of models, and adjustments to
speciﬁ c consumer target groups, is much faster and requires fewer
resources. Even though white goods in the U.S. are considerably
larger than those in Europe and Asia, they can still use the same
platforms, creating cost advantages that are beneﬁ ting the whole
Group.

Faster and more cost-eﬃ cient production
Modularization also brings substantial advantages on the assembly
line. Production is signiﬁ cantly faster and more cost-eﬀ ective as the
new cooking products have far fewer parts and weigh signiﬁ cantly

less than previous models. This results in reduced material costs
compared to the earlier models. Overall, the new Springﬁ eld facility
has reduced product variance by more than 70% and increased the
degree of automation to around 30% compared to 6% at the old
Springﬁ eld plant.

These enhancements enable Electrolux Group to signiﬁ cantly
improve products in a more cost-eﬃ cient way. In addition to their
value-adding cooking functions, the products’ higher quality, more
user-friendly design, and better ﬁ nishes are important diﬀ erentiators
cited by consumers. The positive reception is reﬂ ected in high
consumer star ratings. The wall ovens score a 4.6 rating and the
front control cookers 4.5 on a 5-point scale.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Broadening our climate goal

Electrolux Group was one of the ﬁ rst global
manufacturing groups to identify the environment
and climate as core issues for our common future.
We were also one of the ﬁ rst 100 companies globally
to set a science-based climate target and to have
this approved by the Science Based Targets initiative
in 2018. Not only did we set ambitious goals for
ourselves, we were also one of the ﬁ rst companies to
achieve the target. By 2022, we had reduced Scope 1
and Scope 2 carbon dioxide emissions from our own
operations by 82% from 2015 levels, and we reduced
emissions from product use, (Scope 3), by >25%. This
means that we achieved the 2025 target of an 80%
reduction of Scope 1 and Scope 2 emissions and a
25% reduction in Scope 3 emissions three years ahead
of schedule.

With these achievements behind us, we have set a new
science-based target, which by 2030 will see us further
signiﬁ cantly reduce carbon dioxide emissions in our
operations and from the value chain including the use
of our products. We have also broadened our target
for 2030 to include an even larger proportion of the
value chain than before, with the long-term ambition
of ensuring net-zero carbon emissions throughout our
value chain by 2050.

Today, Electrolux Group operates a business that
considers the climate in every aspect of its operations.
The additional emissions reductions that we are now
working towards are considerably more complex and
thus more diﬃ cult to achieve. Despite this, I am as CEO
conﬁ dent about the considerable commitment to the
climate that exists among my colleagues throughout
the organization. Sustainability is part of our corporate
identity and thereby a fundamental and integrated
part of our corporate culture. Since 2020, part of the →

Electrolux Group has set a new and expanded Science Based Target (SBT 2)

Carbon emission reduction targets

2015

Target achieved 2022

SBT 1

Scope 1 and 2

Scope 3

82%

>25%

2021

Goal 2025
80%

25%

SBT 2

Scope 1 and 2

Scope 3

Goal 2030
85%*

42%

Goal 2050

Net zero

*Compared to 2015 this corresponds to a reduction in scope 1 and 2 by 97%

SBT 1 (Base year 2015)
Scope 1, direct emissions, scope 2, indirect emissions, energy
Scope 3, other indirect emissions, including categories:
• Use of sold products

SBT 2 (Base year 2021)
Scope 1, direct emissions, scope 2, indirect emissions, energy
Scope 3, other indirect emissions, including categories:
• Purchased goods and services (new)
• Upstream transportation and distribution (new)
• Business travel (new)
• Use of sold products

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

“ The broadening of our science-
based target is a crucial step in
driving the organization even
more clearly in the direction of a
net-zero value chain by 2050.”

long-term incentive program for senior leaders is
linked to reduced carbon dioxide emissions.

More categories added to our science-based target
According to our new science-based target, Electrolux
Group will reduce Scope 1 and 2 emissions by 85%
by 2030 compared to the base year 2021 with the
aim of reaching zero emissions by 2033. While this
is three years later than originally planned, due to a
combination of challenging market conditions and
limitations in how quickly new scalable technical
solutions become available, our ambitions remain
as high as before. At our production facilities, eﬀ orts
continue to minimizing the use of energy. We are taking
further steps to raise the percentage of renewable
electricity used in our factories from the already high
96%. We have also begun to phase out the use of
fossil fuel, moving towards electrifying equipment and
processes.

For other indirect emissions, i.e. Scope 3, we have
broadened our target for 2030 by adding the
categories Purchased goods and services, Upstream
transportation and distribution, and Business travel.
The existing category Use of sold products has also
been expanded. We aim to reduce Scope 3 emissions
by 42% of 2021 levels by 2030. By including more
categories in Scope 3, we further build commitment in
parts of the value chain where we have the greatest
opportunity to drive progress together with our
partners and suppliers on the journey towards the goal
of a net-zero value chain.

Since the majority of emissions occur in the use
phase of our products, the most important thing we
can do within Scope 3 is to make our products even
more energy eﬃ cient and create the conditions for
consumers to be able - and willing - to use them
in ways that minimize climate impact. We are also
working to change our product mix so that highly
energy-eﬃ cient products constitute a growing
proportion of total sales, which also makes a positive
contribution to proﬁ tability. The rate of emissions
reduction in the use phase is also dependent on the
degree to which consumers have access to renewable
electricity in the countries where they live.

In order to reduce indirect emissions, it is also important
that the materials in our products are produced in a
climate-eﬃ cient manner and with as high a degree
of circularity as possible. Our ambition is to prioritize
collaborations with suppliers that have the most
carbon dioxide eﬃ cient steel production and that
use as large a proportion of recycled metal as quality
requirements allow. Similarly, we strive to increase
the proportion of recycled plastic in our products. For
example, our range includes fridges and freezers with
inner liner walls made from 70% recycled plastic.

Transport to and from our production facilities and
warehouses is an important part of our value chain. We
are working to move transport on land from road to
rail. In parallel, a transition to trucks powered by either
electricity or biofuel is underway, and we are currently
installing battery chargers at our manufacturing
facilities and warehouses. A change is also underway
in shipping, where we have partnerships with shipping
companies that oﬀ er ships with a lower climate impact.
In 2023, 34% of our sea transports were made with
ships powered with more sustainable fuels.

the inclusion of business travel in the science-based
target is an important signal within the organization
that everyone can and needs to be involved to ensure
that we achieve our climate goals. We aim to reduce
the number of ﬂ ights by 50% by 2030 compared to
2019, and our employees are therefore encouraged to
actively consider which ﬂ ights are genuinely necessary
and to have digital meetings where possible.

Eﬀ orts to achieve our climate goals and continuously
increase resource eﬃ ciency are underway across the
business. The broadening of our 2030 science-based
target with three new Scope 3 categories is a crucial
step in driving the organization even more clearly in
the direction of a net-zero value chain in 2050.

Leveraging global scale to
fulﬁ ll our long-term strategy

The challenging market environment that we are
experiencing emphasizes the importance of staying
agile and ready to adapt to rapidly changing conditions.

Our main priority remains delivering on our cost
reduction targets and to eﬃ ciently implement the new,
simpliﬁ ed organizational structure. We thereby aim to
successfully leverage our global scale and strengthen
our position in selected mid- and premium categories
to restore margins and return to proﬁ table growth.

Stockholm, February 2024

Even if business travel overall has a signiﬁ cantly
smaller climate impact than other Scope 3 categories,

Jonas Samuelson
President and CEO

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Summary 2023

The business environment in 2023 continued to be highly chal-
lenging. The consumer demand in most of Electrolux Group’s main
markets was negatively impacted by high general inﬂ ation, rising
interest rates, and geopolitical tensions. The reduced purchasing
power led to more consumers shifting to lower price points and
postponing purchases in discretionary categories. In addition,
lower residential construction and remodeling activity in Europe
resulted in weaker market demand in the important built-in kitchen
category. Lower sales volumes resulted in an organic sales decline
for Electrolux Group of 4.0% and impacted earnings negatively.
The operating margin amounted to 0.3%, excluding non-recurring
items, compared to 0.6% last year.

Price was slightly positive, mainly as a result of price increases
implemented in high inﬂ ation countries, while promotional activ-
ity increased signiﬁ cantly year-over-year due to lower consumer
demand, the resolution of supply chain constraints, and large input
cost discrepancies between Europe and North America on one
hand and certain parts of Asia on the other. External factors had
a negative impact on earnings, mainly driven by currency but also
by labor cost- and energy inﬂ ation.

Despite the general market shift to lower price points, the attrac-

tive product oﬀ ering delivered under well-established brands,
and a focus on high-value categories, generated a favorable mix,
enabled by the investments in modularized product platforms in
recent years. Aftermarket sales increased slightly and amounted to
7% of total sales for the year.

Operating income (EBIT) bridge1)
SEKbn
6
6

3
3

0
0

-3
–3

0.8

EBIT
2022

0.8

-2.8
Organic
contribu-
tion2)

Innovation
and
marketing

4.7

-3.0

-0.1

0.4

Cost
eﬃ ciency

External
factors

Acq/
Divest

EBIT
2023

1) Excluding non-recurring items, all numbers are rounded.
2) Excludes currency related price increases in Argentina as of Q4 2023, which are included in

External factors.

The Group-wide cost reduction and North America turnaround
program, initiated towards the end of 2022, resulted in a substan-
tial positive earnings eﬀ ect year-over-year of approximately
SEK 5.5bn. However, the signiﬁ cant cost improvement was in-
suﬃ cient to restore margins given the continued weak consumer
demand and intensﬁ ed price pressure in North America.
To address this, a signiﬁ cant step-up in cost reduction eﬀ orts
was announced in October 2023, including further sharpening
of the strategic focus and simpliﬁ cation of the organizational
structure.

Sales growth
SEKbn

150000
150

100000
100

50000
50

0
0

-50000

%1)

15
15

10
10

5
5

0
0

-5
-5

19
19

20
20

21
21

22
22

23
23

Net sales
Sales growth
Target: ≥4%

1) Total sales growth excluding currency translation eﬀ ects.

Operating margin
SEKbn

8000
8

6000
6

4000
4
2000
2
0
0
-2000
–2
-4000
–4

19
19

20
20

21
21

22
22

23
23

8
8

6
6

4
4
2

0
0
-2
–2
-4
–4

Return on net assets
SEKbn

60000
60

40000
40

20000
20

0
0

-20000
–20

30
30

20
20

10
10

0
0

-10
–10

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

19
19

20
20

21
21

22
22

23
23

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

Note: Financial targets are over a business cycle.

Carbon dioxide emissions
In late 2023, Electrolux Group set a new science-based
climate target to reduce carbon dioxide emissions in
products and operations. The new target comes after the
Group in 2022 achieved its previous science-based target
three years ahead of plan. The new science-based target
aims to reduce the company’s direct and indirect emissions
resulting from its own operations (scope 1 and 2) by 85% and
to reduce the Group’s absolute scope 3 emissions by 42%
between 2021 and 2030. Beyond the use of sold products
(which represents approximately 85% of the total climate
footprint) the new scope 3 target also includes emissions
from materials, transport of products and business travel. In
2023, the combined scope 1 and 2 emissions were reduced by
33% compared to 2021, mainly as a result of improved energy
eﬃ ciency and increased share of renewable energy. Scope 3
emissions related to ‘Use of sold products’, were reduced by
28% compared to 2021, through improved product energy
eﬃ ciency and product mix. The year-over-year decline in
sales volumes also impacted the result positively in 2023.

Scope 1 and 2

Scope 3

33%

reduction compared
to 2021

28%

reduction compared
to 2021

For more information on Electrolux Group’s Science Based Target, see the Statutory
sustainability report on page 58.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 2023, page 17–32
Annual report 2023, page 33–52, 69–110
Climate risk disclosures 2023, page 53–57
Statutory sustainability report 2023, page 49-50, 58–68

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Corporate governance report

Chairman’s introduction

This corporate governance
report provides details of
the overall governance
structure of Electrolux
Group, 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 a strong
corporate culture.

Board’s focus areas during the year
2023 has been a turbulent year marked by increased geopolitical
tensions in the surrounding world with wars and overall macro-
economic uncertainty, continued high inﬂ ation and a rising interest
rate environment. This all together has resulted in a challenging year
for Electrolux Group, with continued weak consumer demand and a
shift towards lower price segments as well as increased competition
in the market, which in turn has led to a decrease in organic sales
and margins.

Considering the challenging macro environment, the overriding

priority for the Board during 2023 has been to ensure necessary
and rapid adaptations of the Group’s structure and operations.
The Board has regularly been following up on the execution of the
on-going Group-wide cost reduction and North America turnaround
program, as well as evaluating and initiating further cost reductions,
and decided to sharpen the Group’s strategic focus by initiating
divestments of certain non-core assets – all to as quickly as possible

restore margins, return to proﬁ table growth and achieve the targeted
capital structure.

The on-going Group-wide cost reduction and North America
turnaround program, initiated in September 2022, has progressed
well above target but it has not been suﬃ cient to compensate for the
diﬃ cult market conditions in which the Group operates. In October
2023, our on-going cost reduction eﬀ orts were therefore increased
signiﬁ cantly, not just in relation to the operations in North America
but Group-wide, to reduce structural and product costs. A new sim-
pliﬁ ed organization was also presented, by which Electrolux Group
as of January 1, 2024, has reorganized into three regional business
areas and two global product lines, leveraging the Group’s global
scale with fewer layers. This step-up of cost reduction actions and
simpliﬁ ed organizational structure are expected to result in cost sav-
ings of SEK 4-5bn in 2024 vs. 2023. Further in this challenging market,
focused and strategic portfolio management is more important than
ever. As part of the ongoing work to sharpen the strategic focus
on growing proﬁ tably in selected home appliance categories in
the mid- and premium segments, primarily under our main brands
Electrolux, AEG and Frigidaire, and to provide resources to execute
the strategy at speed and scale, preparations were initiated in July
2023 to divest non-core assets during the coming years, whereof
SEK 0.9bn were realized during 2023.

The Board’s objective is to maintain a solid investment grade
rating, as deﬁ ned by leading rating institutes, and according to
the dividend policy the target is for the dividend to correspond to
approximately 50% of the annual income. With the recorded net loss
in 2023, the Board has proposed that no payment of dividend is to
be made for the ﬁ scal year 2023. Although this proposal is aligned
with our dividend policy, it was an undesirable but necessary
precautionary measure for the Board in order to ensure long-term
value for our shareholders given the continued challenging macro
environment. The Board continues to support management in the
work to reduce costs and drive proﬁ tability, in order to return to
dividend-paying conditions as soon as possible.

At the upcoming Annual General Meeting in March 2024, the
time has come for me to step down as Chairman, and I would like
to take this opportunity to thank my fellow Board members for their
good cooperation during these years, constructive contributions
and engaged work. I would also like to thank Group Management
and all employees for their drive and hard work in this tough and
challenging market, and would like to thank all shareholders for the
conﬁ dence they have shown.

Reﬂ ecting on my time as the Chairman of the Board, it has indeed

been a dynamic and challenging period, both in the world and for
Electrolux Group. We have experienced a pandemic shutting down
the world, increased geopolitical tensions and wars, and material
macroeconomic uncertainties, leading to unbalances in the supply
chains, high inﬂ ation and an environment with rising interest rates.
Electrolux Group has experienced both proﬁ table growth and
rapidly declining consumer demand and price pressure.

Electrolux Group has executed the SEK 8bn re-engineering invest-
ments, initiated in 2018, focused on modularization and automation
of the production facilities. These previous investments, initiated
divestments of non-core assets and the now increased on-going
Group-wide cost reduction and North America turnaround program
enable us to signiﬁ cantly leverage our global scale by deploying
Group-wide technologies and product architecture and thus,
providing a foundation for the Group’s increased strategic focus on
its core brands, to decrease the overall costs level and the possibility
to regain its proﬁ tability and increase its margins. The Group was
also one of the ﬁ rst companies to meet its global science-based
climate target 2022 – three years ahead of plan. I am conﬁ dent
that these initiatives combined will make it possible for Electrolux
Group to compete successfully in an ever-changing and challenging
global market.

Staﬀ an Bohman
Chairman of the Board

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Governance structure

Shareholders by
the General Meeting

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 Accounts Act.
• Annual Reports Act
• Nasdaqs rulebook for issuers
• EU Market Abuse Regulation
• The Swedish Code of Corporate Governance
• Rules and recommendations from the Stock

Market Self-Regulation Committee

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 AB Electrolux

AB Electrolux strives to maintain strict norms and eﬃ cient gover-
nance processes to ensure that all operations create long-term
value for the 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.

Electrolux Group comprises 132 companies with sales in

approximately 120 markets. The parent company of the Group is
AB Electrolux, a public Swedish limited liability company with its
shares listed on Nasdaq Stockholm.

The governance of AB Electrolux is based on the Swedish
Companies Act, the Annual Accounts Act, Nasdaq Nordic Main
Market Rulebook for Issuers of Shares, the EU Market Abuse
Regulation and the Swedish Code of Corporate Governance (the
“Code”), as well as other relevant Swedish and foreign laws and
regulations and internal governing documents. The Code and a
description of the Swedish corporate governance model is available
on the website of the Swedish Corporate Governance Board,
www.corporategovernanceboard.se

This corporate governance report has been drawn up in accor-
dance with the Annual Accounts Act and the Code. AB Electrolux
had no deviations from the Code in 2023. There has been no infringe-
ment by AB Electrolux of applicable stock exchange rules and no
breach of good practice on the securities market reported by the dis-
ciplinary committee of Nasdaq Stockholm or the Swedish Securities
Council in 2023.

AB Electrolux’s formal governance structure is presented to

the right.

Electrolux Group 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
household products in approximately 120 markets every year. In 2023, Electrolux Group had
net sales of SEK 134bn and employed approximately 45,000 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 headquarter is S:t Göransgatan 143, SE-105 45 Stockholm, Sweden.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Highlights 2023

• Re-election of Staﬀ an Bohman as Chairman of
the Board at the Annual General Meeting 2023.
• No distribution of dividend for the ﬁ scal year 2022.
• Staﬀ an Bohman announces that he will not be
available for re-election at the Annual General
Meeting 2024 and the Nomination Committee
proposes Torbjörn Lööf as new Chairman of the
Board.
• Re-organization and simpliﬁ cation of the Group
structure leveraging the Group’s global scale
with fewer layers, resulting in increased focus
and reduced costs.

Shares and shareholders
AB Electrolux shares are listed on Nasdaq Stockholm. At year-end
2023, AB Electrolux had 75,049 shareholders according to Monitor
by Modular Finance AB. Of the total share capital, 54% was owned
by Swedish institutions and mutual funds, 32% by foreign investors
and 14% by Swedish private investors, see the chart to the right. Inves-
tor AB is the largest shareholder, holding 17.9% of the share capital
and 30.4% of the voting rights. The ten largest shareholders, exclud-
ing the company’s treasury shares, accounted for 44.9% of the share
capital and 53.1% 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 Class A share entitles the holder to one vote and one
Class B share to one-tenth of a vote. Owners of Class A shares can
request to convert their Class A shares into Class B shares. Conversion
reduces the total number of votes in the company. As of December 31,
2023, the total number of registered shares in the company amounted
to 283,077,393 shares, of which 8,191,804 were Class A shares and,
274,885,589 were Class B shares. The total number of votes in the com-
pany was 35,680,362.9. Class B shares represented 77.0% of the voting
rights and 97.1% of the share capital.

Dividend policy
AB Electrolux target is for the dividend to correspond to approxi-
mately 50% of the annual income.
The Annual General Meeting (“AGM”) in March 2023 decided to
adopt the Board’s proposal that no dividend should be distributed

for the ﬁ scal year 2022 and that AB Electrolux funds would be carried
forward in the new accounts.

Ownership structure

Swedish institutions and mutual funds, 54%
Foreign investors, 32%
Swedish private investors, 14%

Source: Monitor by Modular Finance AB. Compiled and processed
data from various sources, including Euroclear, Morningstar and the
Swedish Financial Supervisory Authority (Sw. Finansinspektionen)
as per December 31, 2023.

The foreign ownership was 32% at year-end 2023 and 25% at year-end 2022.

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.

The information on ownership structure is updated quarterly on the Group’s
website. For additional information regarding the shares and ownership structure,
see page 41.

General Meeting of shareholders
The decision-making rights of shareholders in AB 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 shareholders’ meetings may be held at the discre-
tion of the Board or, if requested, by the auditors or by shareholders
holding at least 10% of all shares in AB Electrolux.

Participation in decision-making requires the shareholder’s partici-
pation in 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 in the notice.

Individual shareholders requesting that a speciﬁ c issue be included

in the agenda of a shareholders’ meeting can request in writing the
AB Electrolux Board to do so, using a speciﬁ c email address pub-
lished 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 matters, the Swedish Com-
panies Act stipulates that proposals must be approved by a larger
number of the votes cast and the shares represented at the meeting.

The AGM resolves upon:
• The adoption of the Annual Report.
• Discharge from liability of the Board and President and CEO.
• Dividend.
• Election of Board members, Chairman of the Board and, if
applicable, auditors.
• Fees to Board members and auditors.
• Guidelines for remuneration to senior executives.
• The Remuneration Report.
• Other important matters.

Annual General Meeting 2023
The AGM 2023 was held at Münchenbryggeriet in Stockholm on
March 29, 2023. The shareholders had the option to either vote by
physical participation at the meeting venue or to vote in advance
through postal voting. The AGM was webcasted and an excerpt 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.

Decisions at the Annual General Meeting 2023:
• Discharge from liability of the Board members and the President
and CEO.
• Re-election of all Board members.
• Re-election of Staﬀ an Bohman as Chairman of the Board.
• Re-election of PricewaterhouseCoopers AB as auditor.
• Fees to the Board members and auditor.
• No distribution of dividend for the ﬁ scal year 2022.
• Authorization to acquire own shares and to transfer own shares on
account of company acquisitions and the share program for 2021.
• Implementation of a performance based, long-term share
program for 2023 and transfer of own shares to the participants.

Attendance at AGMs 2019–2023
%

80
80

60
60

40
40

20
20

0
0

% of share capital
% of votes
Shareholders

Attendance

1,200
1200

900
900

600
600

300
300

0
0

19
19

20
20

21
21

22
22

23
23

Shareholders present through postal voting at the AGM 2023 represented 12.8% of
the share capital present and 13.0% of the votes present.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

AGM 2024
The next AGM will be held on Wednesday, March 27, 2024 in
Stockholm. For additional information about the AGM 2024, see
page 122 and the notice convening the AGM.

Nomination Committee
The election and remuneration of the Board of Directors and auditors
are prepared by the Nomination Committee in accordance with the
Code. The AGM 2011 adopted an instruction for the Nomination Com-
mittee which applies until a new instruction is adopted by the AGM.
The current instruction for the Nomination Committee includes 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 Nomination Committee, together with the Chairman
of AB Electrolux’s Board and one additional Board member. The com-
position of the Nomination Committee shall be based on share-
holder statistics from Euroclear Sweden AB as of the last banking
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 in the
Nomination Committee shall be announced as soon as they have
been appointed. If the shareholder structure changes during the
nomination process, the composition of the Nomination Committee
may be adjusted accordingly.

The Audit Committee assists the Nomination Committee in prepar-

ing proposal for election of auditors, and the Nomination Commit-
tee’s proposal to the AGM on the election of auditors shall include
the Audit Committee’s recommendation.

The Nomination Committee’s complete proposals are announced

in the notice to the AGM. Shareholders may submit proposals for
nominees to the Nomination Committee, using a speciﬁ c email
address published on the Group’s website.

The Nomination Committee’s tasks include preparing
proposal for the next AGM regarding:
• Chairman of the AGM.
• Board members.
• Chairman of the Board.
• Fees to Board members.
• Remuneration for committee work.
• Amendments of instructions for the Nomination Committee,
if deemed necessary.
• Auditors and auditors’ fees, when applicable.

Nomination Committee for the AGM 2023
The Nomination Committee for the AGM 2023 was comprised
of six members. Johan Forssell of Investor AB led the Nomination
Committee’s work.

In the nomination work for the AGM 2023, the Nomination Com-
mittee assessed the composition and size of the current Board as
well as the Electrolux Group’s operations. Areas of particular interest
were the company’s strategies and goals and the demands on the
Board that are expected based on 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 the composition and size of the Board appropriate to
meet the Group’s needs and that there is a breadth and variety as
regards age, nationality, educational background, gender, expe-
rience, 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. Following the AGM 2023,
three out of seven (approximately 43%) Board members elected at
the shareholders’ meeting are women (in this calculation, the Pres-
ident and CEO has not been included in the total number of Board
members), which is no change from previous year.

The Nomination Committee also proposed, in accordance with the

recommendation by the Audit Committee, re-election of Pricewater-
houseCoopers AB as the company’s auditor for the period until the
end of the AGM 2024.

A report regarding the work of the Nomination Committee was
included in the Nomination Committee’s explanatory statement that
was published before the AGM 2023. Further information regarding
the Nomination Committee and its work can be found on the Group’s
website.

Nomination Committee for the AGM 2024
The Nomination Committee for the AGM 2024 was constituted
based on the ownership structure as of August 31, 2023, and was
announced by a press release on September 14, 2023.

The Nomination Committee’s members are:
• Johan Forssell, Investor AB, Chairman
• Marianne Nilsson, Swedbank Robur Fonder
• Carina Silberg, Alecta
• Anders Hansson, AMF Tjänstepension och Fonder
• Staﬀ an Bohman, Chairman of AB Electrolux
• Fredrik Persson, Board member of AB Electrolux

The Board of Directors
The Board of Directors has the overall responsibility for the Group’s
organization and administration.

Composition of the Board
According to the Articles of Association, the Board of Directors of AB
Electrolux shall consist of not less than ﬁ ve and not more than ﬁ fteen
members with not more than ten deputy members. The Board is com-
prised of eight members elected by the AGM 2023, without deputies,
and three members with deputies who are appointed by the Swedish
employee organizations in accordance with Swedish labor law. The
Nomination Committee has proposed to the AGM 2024 to expand
the Board to nine members elected by the AGM.

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 appointed, among other
things. The Chairman of the Board Staﬀ an Bohman has declined
re-election for the AGM 2024.

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 elected by the AGM are not Swedish citizens.
For additional information regarding the Board members, see

pages 26-27.

Independence
The Board complies with the Code’s requirements for independence.
The result of the assessment of each Board member’s independence
is presented in the table on page 27.

All Board members except for Petra Hedengran and Jonas
Samuelson have been considered independent in relation to the
company and its management as well as to major shareholders.
Petra Hedengran has been considered independent in relation
to the company and its management, but not in relation to major
shareholders of AB Electrolux. Jonas Samuelson has been consid-
ered independent in relation to major shareholders of AB Electrolux
but not, in his capacity as President and CEO, in relation to the com-
pany and its management. Jonas Samuelson has no major share-
holdings, and he is not a part-owner in companies having signiﬁ cant
business relations with Electrolux Group. Jonas Samuelson is
the only member of Group Management 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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 AB Electrolux are
available on the Group’s website.

Working procedures and Board meetings
The Board determines its working procedures each year. The work-
ing procedures describe the Chairman of the Board’s speciﬁ c role
and tasks, as well as the responsibilities delegated to the committees
appointed by the Board. In accordance with the working proce-
dures and the Code, the Chairman of the Board shall among other
things:
• Organize and distribute the Board’s work and ensure that the
board receives suﬃ cient information and documentation to enable
it to conduct its work.
• Ensure that the Board discharges its duties and has relevant
knowledge 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
instructions to the President and CEO and other corporate func-
tions regarding matters requiring the Board’s approval. Among
other things, these instructions specify the maximum amounts that
various decision-making functions within the Group are authorized
to approve as regards credit limits, investments and other capital
expenditure. The Board decides on all investments exceeding SEK
100m and receives reports on all investments exceeding SEK 25m.

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 appointment of mem-
bers of the committees of the Board and authorization to sign on
behalf of AB Electrolux. 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
publication of the Group’s full-year report and interim reports.
One or two meetings are to be held in connection with visits to
Group operations, subject to travel restrictions or other concerns.
Additional meetings are held when necessary.

The Board oversees and decides on Group-related matters
such as:
• Main goals.
• Strategic orientation.
• Material matters related to ﬁ nancing, investments, acquisitions
and divestments.
• Follow-ups and controls of operations, communication and
organization, including evaluation of the Group’s operational
and sustainability management.
• Appointment, evaluation and dismissal of the President
and CEO.
• Establishment of an eﬀ ective system of internal 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 2023
During the year, the Board held ten meetings. The attendance of each
Board member at these meetings is shown in the table on page 27.
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
Group’s General Counsel serves as secretary at the Board meetings.
Each ordinary Board meeting includes a review of the Group’s
results and ﬁ nancial position, as well as the outlook for the forth-
coming quarter, as presented by the President and CEO. In addition,
investments and the establishment of new operations, as well as
acquisitions and divestments, are handled. Normally, a member of

Group Management also presents a current strategic issue at the
board meeting. For an overview of the Board’s ordinary work over
the year, see the table below.

Key focus areas for the Board 2023
• Eﬀ ects and impacts of external factors such as increased geopo-
litical tensions and wars, high general inﬂ ation and interest rate
increases.
• Execution of the North America turnaround program and group
wide cost reductions to restore margins and return to proﬁ table
growth.
• Strategic portfolio management and initiation of divestment of
non-core assets.
• Global strategic focus on proﬁ table growth through structural
simpliﬁ cation and reduced complexity.

Ensuring quality in external reporting
The working procedures determined annually by the Board include
detailed instructions on the type of ﬁ nancial reports and ﬁ nancial
information which are to be submitted to the Board. In addition to
the interim reports including the full-year report, and the annual
report, the Board reviews and evaluates extensive ﬁ nancial infor-
mation regarding 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 its 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.

In accordance with the transitional provisions in the proposed

legislation regarding increased requirements for sustainability
reporting, the Board’s responsibility for formalized routines that

Overview of various items on the Board’s ordinary agenda and Committee meetings 2023

• Q4, Consolidated results.
• Report by external auditors.
• Proposal for 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 quarter.

January

February

March

April

May

June

July

August

September

October

November

December

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

ensure processes and compliance with internal control for the external
reporting will also include the sustainability reporting.

Remuneration to the Board of Directors 2021–2023
(applicable as from the respective AGM)

The Group’s external auditor reports to the Board as necessary,
but at least once a year. At least one of such reports is held without
the presence of the President and CEO or any other member of
Group Management. The external auditor also attends the meetings
of the Audit Committee

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

In 2023, 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 and the result of the evaluations has been pre-
sented to 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 Group.
The AGM 2023 decided to increase the fees to the Chairman and the
Board members, see the table to the right.

The Nomination Committee has recommended that Board members

appointed by the AGM acquire AB Electrolux shares and that these
are kept as long as they remain on the Board. A shareholding of a
Board member should after ﬁ ve years correspond to the value of
one gross annual fee, according to the recommendation from the
Nomination Committee.

Only board members elected by the AGM who are employed
by Electrolux Group are invited to participate in the AB Electrolux’s
long-term performance based share programs for senior managers
and key employees.

For additional information on remuneration to Board members,

see Note 27.

SEK

2023

2022

2021

Chairman of the Board

2,475,000 2,400,000 2,285,000

Board member

720,000

700,000 665,000

Chairman of the Audit
Committee

Member of the Audit
Committee

Chairman of the People
Committee

Member of the People
Committee

310,000 300,000

290,000

195,000

190,000

185,000

180,000

175,000

170,000

125,000

120,000

115,000

Member of ad hoc committees

60,000

Committees of the Board
The Board has established a People Committee and an Audit Com-
mittee. The major tasks of these committees are of preparatory and
advisory nature, but the Board may delegate decision-making
powers on speciﬁ c issues to the committees. The matters considered
at committee meetings are recorded in minutes of the meetings and
reported at the following Board meeting. The minutes from the Audit
Committee are also made available to the auditors. The members
and chairmen of the committees are appointed at the statutory
Board meeting following the AGM.

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

hoc committees dealing with speciﬁ c matters. In 2022, the Board
established one ad hoc committee, the Share Buyback Committee,
with the purpose of dealing with matters related to the share buy-
back programs. No ad hoc committee was established during 2023.

People Committee
One of the primary tasks of the People Committee is to prepare
decisions on matters concerning principles for remuneration, remu-
nerations and other terms of employment for the members of Group
Management. The Committee also reviews the Board’s report on
remuneration pursuant to Chapter 8, Section 53 a of the Swedish
Companies Act (the “Remuneration Report”).

The People Committee consists of 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 2023, the People Committee held ﬁ ve meetings. The attendance

of each Committee member at these meetings is shown in the table
on page 27. Signiﬁ cant matters 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 senior
executives, review of the Remuneration Report for 2023 and review
and preparation of long-term incentive program for 2024. The Head
of People & Communications participated in the meetings and was
responsible for meeting preparations.

The People Committee’s tasks include for example:
• To prepare and evaluate application of remuneration guide-
lines for Group Management and changes of remuneration to
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 AB 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 CEO 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 AB Electrolux’s 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. In accordance with
the transitional provisions in the proposed legislation regarding
increased requirements for sustainability reporting, the Audit Com-
mittee’s duties will also include monitoring processes and internal
control for sustainability reporting, including, among other things,
submitting recommendations and proposals to ensure the reliability
of sustainability reporting and informing the Board of Directors of the
results of the review of the sustainability report.

The Audit Committee consists of Board members Ulla Litzén

(Chairman), Staﬀ an Bohman, Petra Hedengran and Fredrik Persson.
The external auditor report to the Audit Committee at each ordinary
meeting. At least three meetings are held annually. Additional meet-
ings are held as needed.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

In 2023, the Audit Committee held seven meetings. The attendance
of each Committee member at these meetings is shown in the table
on page 27. Managers of Electrolux Group 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 half year report for the second quarter. The audit is conducted in
accordance with the Swedish Companies Act, Annual Accounts 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 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, for 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, pre-approve 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
The AGM 2023 re-elected Pricewaterhouse Coopers AB (PwC) as
AB Electrolux’s external auditor for one year, until the AGM 2024.
The election of PwC was preceded by recommendation 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 the company’s subsidiaries, the
consolidated ﬁ nancial statements for the Electrolux Group and the
administration of AB Electrolux. The auditor also conduct a review of

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

2023

2022

2021

—

Deloitte were the AB Electrolux external auditor for 2021. For details regarding fees paid to the
auditors and their non-audit assignments in the Group, see Note 28.

Group Internal Audit
The internal audit function (Group Internal Audit) is responsible for
independent, objective assurance, in order to systematically eval-
uate and propose improvements for more eﬀ ective 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 Com-
mittee. The audit plan is derived from an independent risk assess-

ment conducted by Group Internal Audit to identify and evaluate
risks associated with the execution of the company strategy, oper-
ations, and business 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.

In accordance with the transitional provisions in the proposed

legislation regarding increased requirements for sustainability
reporting, Group Internal Audit will also ensure internal control
processes and compliance for sustainability reporting.

For additional information on internal control, see pages 30-31.

Electrolux Group – Financial targets
Targeted growth and optimization of the product portfolio to
the most proﬁ table product categories and products with distinct
consumer beneﬁ ts, will strengthen the presence of Electrolux Group
in the product categories and channels where the Group is most
competitive. Electrolux Group’s objective is to grow with consistent
proﬁ tability, see the ﬁ nancial targets below.

Financial targets 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. The goal for capital turnover is at least four times over a
business cycle.

• Operating margin of at least 6%.
• Return on net assets >20%.
• Sales growth of at least 4% annually.
• Capital turnover-rate of at least 4.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

A sustainable business
To be a leader in sustainability is a prerequisite for realizing the
Electrolux Group’s strategy for long-term proﬁ table growth. In 2023,
Electrolux Group’s most resource-eﬃ cient products represented
29% of products sold and 38% of gross proﬁ t.

Electrolux Group takes a consistent approach to sustainability in
all of the countries where the Group 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 busi-
ness strategy.

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

framework of how Electrolux Group shall conduct its operations in an
ethical and sustainable way. The Code of Conduct, which has been
approved by the Board of Directors, serves as an introduction to
the Group policies and directives, and its purpose is to increase the
clarity on what the company’s principles mean for the employees.
There are regular trainings and communications of the Code of Con-
duct and Group policies and directives. In 2023 online trainings in
the workplace policy and the antitrust policy were rolled out to oﬃ ce
based employees. At year end the completion rates for the work-
place training were 80% for line managers and 84% for employees
respectively, and 75% for the antitrust training.

The Ethics Program encompasses a global whistle-blowing 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 2023
related to workplace conduct, verbal abuse and other types of
disrespectful behavior.

Since 2016, Electrolux Group works on human rights in line with the

UN Guiding Principles on Business and Human Rights. During 2023
the work was focused on preparing the Group for new and upcom-
ing legislation, such as increased sustainability reporting (CSRD), the
German Supply Chain Due Diligence Act (LkSG) and the Directive
on Corporate Sustainability Due Diligence (CSDD). In 2023 the local
impact assessment of the operations in China was completed and a
local impact assessment of the operations in Germany was initiated.
Electrolux Group’s sustainability performance strengthens rela-
tions with investors and AB Electrolux is recognized as a leader in
the household durables industry. In 2023, AB Electrolux was included
in the Dow Jones Sustainability Index (DJSI) World and Europe
indexes.

Electrolux Group as a tax payer
One important aspect of Electrolux Group’s purpose – Shape living
for the better – is to act as a good corporate citizen and taxpayer
wherever the Group operates. Electrolux Group plays an important
role in contributing to public ﬁ nances in all jurisdictions where the
Group operates. The Group has approximately 45,000 employees
with sales in approximately 120 markets.

Of Electrolux Group’s total tax contribution, as deﬁ ned in the

below chart, corporate tax represented approximately 8.5% in 2023.
Corporate income taxes are only a portion of the Group’s total
contribution to public ﬁ nances in the Group’s markets. In addition
to corporate income taxes, the Group pays indirect taxes, customs
duties, property taxes, employee related taxes, environmental
charges and a number of other direct or indirect contributions to
governments. Electrolux Group’s total contribution to public ﬁ nances
for 2023 amounted to approximately SEK 10.8bn whereof approxi-
mately half related to emerging markets.

Electrolux Group’s 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 2023, representing a global
eﬀ ective tax rate of the Group of -2.27%.

Electrolux Group total taxes 2023

Employer tax & fees, 29.9%
Corporate tax, 8.5%
Property tax, 1.8%
Customs, 19.3%
Indirect tax, 35.4%
Environmental tax & fees,5.1%

The President and CEO and Group Management
In recent year, important decisions have been made to simplify the
organization and leverage Electrolux Group’s global scale with
fewer layers, resulting in increased focus and reduced costs.

Group Management currently includes the President and CEO,

heads of the global product lines Taste and Care, heads of the
global functions Operations; Technology & Sustainability; Finance,
Legal & IT; and People & Communications, and heads of the three
regional business areas Europe, Asia-Paciﬁ c, Middle East and Africa;
North America; and Latin America.

The President and CEO is appointed by and receives instructions

from the Board of Directors. The Board also appoints the Group
Executive Vice President. 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
guidelines and instructions.

A diversiﬁ ed management team
The Electrolux Group Management represents seven nationalities
and all has extensive experience from various management positions
within Electrolux Group and many have previous experience of
predominantly multinational consumer goods companies. Following
re-organization as of November 1, 2023, three out of ten (30%)
members of Group Management are women.

Group Management 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 accor-
dance with the company’s strategy and goals as well as for the
demands that the Group’s future direction and continued challenges
are expected to place on Group Management.

Management and Group structure
Electrolux Group 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 re-organization of the Group into a simpliﬁ ed structure,
the organization consist of two global product lines, three regional
business areas, and four global functions, all reporting to the Presi-
dent and CEO. The new product line structure became eﬀ ective as of
November 1, 2023, and the new business area structure as of January
1, 2024. 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 25. Each body includes representatives from con-
cerned functions.

Changes in Group Management
As part of the re-organization of Electrolux Group eﬀ ective as of
November 1, 2023, the following changes were made in Group
Management.

Anna Ohlsson-Leijon, existing member of Group Management,

was appointed Group Executive Vice President and head of the
combined business area Europe, Asia-Paciﬁ c, Middle East and
Africa. Dan Arler was appointed head of product line Taste, Ian
Banes was appointed head of product line Care and Elena Breda
was appointed head of global function Technology & Sustainability.
Therese Friberg, existing member of Group Management, was
appointed head of the combined global function Finance, Legal &
IT. Carsten Franke remains as head of global function Operations
and Lars Worsøe Petersen remains as head of global function People
& Communications. Ola Nilsson left his position as head of the
organization area Consumer Experience & Product Lines.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

As of January 1, 2024, the new business area structure was eﬀ ective
and the business areas Europe and Asia-Paciﬁ c, Middle East and
Africa formed one regional business area under the leadership
of Anna Ohlsson-Leijon. Chris Braam left his position as head of
business area Europe and Adam Cich left his position as head of
business area Asia-Paciﬁ c, Middle East and Africa, but both remains
in other roles in the new organization for business area Europe,
Asia-Paciﬁ c, Middle East and Africa. The other two regional business
areas, North America under the leadership of Ricardo Cons and
Latin America under the leadership of Leandro Jasiocha, remain.
For details regarding members of Group Management, see

pages 28-29.

Key focus areas for the President and CEO and Group
Management during 2023
• Responding to the dynamic environment caused by continued
imbalances in the global supply chain, increased geopolitical
tensions, and high inﬂ ation.
• Group-wide cost reduction and execution of the North America
turnaround program.
• Strategic divestments of non-core assets.
• Continued focus on developing sustainable consumer experiences
under sharpened brands and maintaining a competitive product
and brand oﬀ ering in light of the challenges that consumers’
reduced purchasing power poses to demand.
• Strengthening consumer relations after product purchase,
including aftermarket business.
• Continued implementation of the new sustainability framework,
launched in 2020, and preparation for upcoming extended
sustainability reporting requirements (CSRD).

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

Remuneration to Group Management
Remuneration guidelines for senior Management are resolved
upon by the AGM, based on proposal from the Board of Directors.
Remuneration to the President and CEO is then resolved upon by
the Board, based on proposal 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.

Electrolux Group 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.

The current remuneration guidelines have been evaluated by the
People Committee during the year and will be submitted to the AGM
2024 for approval, in all material aspects corresponding with the
current guidelines adopted by the AGM 2020.

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

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

Each year, the Board of Directors evaluates whether a long-term

incentive program shall be proposed to the AGM. The AGM 2023
decided on a long-term performance based share program for up
to 900 senior managers and key employees in Electrolux Group
(LTI 2023).

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

Timeline for the long-term incentive program for senior management 2023

2023

2024

2025

2026

Performance period

Start

Year

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
reduction. Allotment of performance shares,
if any, to the participants will be made in 2026.

Invitations to partici-
pants in the program.

Performance shares
allotted.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Board of Directors and Auditors

Staﬀ an Bohman
Chairman
Born 1949. Sweden. B.Sc. in
Economics and Business
Administration. Elected
2018. Member of the Audit
Committee and the People
Committee.
Other assignments: Chairman
of the Board of the Research
Institute of Industrial Econom-
ics. Board Member of Åke
Wiberg Foundation. Member
of the Royal Swedish Acad-
emy of Engineering Sciences
(IVA).
Previous positions: President
and CEO of Sapa and
DeLaval, Chairman of the
German-Swedish Chamber of
Commerce, as well as Board
member of, inter alia, Atlas
Copco AB, Scania AB, Inter-
IKEA Holding NV and Rezidor
Hotel Group AB.
Holdings in AB Electrolux:
200,000 B-shares. 120,279 call
options, issued by Investor AB
entitling the right to purchase
AB 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 Group 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:
94,795 B-shares.

Petra Hedengran
Born 1964. Sweden. M. of
Laws. Elected 2014. Chairman
of the People Committee
and member of the Audit
Committee.
Other assignments: General
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 Ser-
vices including General Coun-
sel 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: Presi-
dent and CEO of H2 Green
Steel AB. Board member of
Creades AB, SAAB AB and
the Confederation of Swed-
ish Enterprise (Sw. Svenskt
Näringsliv).
Previous positions: Various
senior positions within Scania
including President and CEO
of Scania AB. Board member
of Hexagon 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
Audit Committee.
Other assignments: Board
member of Epiroc AB, Ratos
AB, and Stockholm 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.
Board member of Stockholm
School of Economics.
Holdings in AB Electrolux:
12,000 B-shares.

Karin Overbeck
Born 1966. Germany. Master’s
degree in Economics, Mar-
keting and Finance. Elected
2020. Member of the 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 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
A.Ahlström 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.
Previous positions: Head of
Microsoft Stores, Corporate
Vice President, Microsoft
Corp. Chairman of Serta
Simmons Bedding LLC. Head
of Worldwide Product Distri-
bution at DreamWorks Ani-
mation 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, 2023 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Employee representatives

Viveca Brinkenfeldt Lever
Born 1960. Representative of
the Federation of the Salaried
Employees in Industry and
Services. Elected 2018.
Board meeting attendance:
10/10
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:
9/10
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:
8/10
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 Electrolux Group.
Secretary of the AB Electrolux Board
since 2022.
Holdings in AB Electrolux:
3,042 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 2023, meeting attendance and independence

Total remuneration
20 23, ’000 SEK

Board meeting
attendance

People Committee
attendance

Audit Committee
attendance

Independence1)

Staﬀ an Bohman

Petra Hedengran

Henrik Henriksson

Ulla Litzén

Karin Overbeck

Fredrik Persson

David Porter

Jonas Samuelson

2,774

1,088

715

1,038

839

924

715

—

10/10

9/10

10/10

9/10

10/10

1) For further information about the independence assessment, see page 20.

5/5

7/7

Holdings in AB Electrolux are stated as of December 31, 2023 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 Group including CFO of AB
Electrolux, COO Global Operations Major Appli-
ances and Head of Major Appliances EMEA.
CFO 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: 94,795 B-shares.

Dan Arler
Head of Product Line Taste
Born 1969. Netherlands. B.Sc. in Management. In
Group Management since 2023 and employed
2002-2020 and since 2023.
Previous positions: Senior positions within
Electrolux Group including CEO of business area
Asia-Paciﬁ c, Middle East and Africa,
CEO of business area Europe, Middle East
and Africa, and Senior Vice President of the
Kitchen product line within business area
Europe, Middle East and Africa.
Holdings in AB Electrolux: 18,448 B-shares.

Ian Banes
Head of Product Line Care
Born 1968. United Kingdom. Masters Degree in
Manufacturing Engineering. In Group Manage-
ment since 2023 and employed since 2002.
Previous positions: Senior positions within
Electrolux Group including Senior Vice President
of the Fabric Care product line within business
area Europe, Senior Vice President CX
product line Care, Vice President of the Home
Comfort product line within business area
Europe, General Manager of the business in
several countries, and Head of Manufacturing
Operations in China. Positions prior to Electrolux
Group include various roles at John Crane.
Holdings in AB Electrolux: 15,966 B-shares.

Elena Breda
Chief Technology and Sustainability Oﬃ cer
Born 1973. Italy. Masters Degree in Electronics
Engineering and Ph.D. in Biomedical Engineering.
In Group Management since 2023 and
employed since 2002.
Previous positions: Senior positions within
Electrolux Group including Global Senior Vice
President CX product line Food Preservation,
Senior Vice President of Sales for Home Care &
Small Domestic Appliances Europe, Vice Pres-
ident of Food Preservation and Home Comfort
Asia-Paciﬁ c, and other positions in the Care
product line within business area Europe.
Holdings in AB Electrolux: 8,623 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 1997–2011 and since 2016.
Previous positions: Head of business area Latin
America. Management positions at Franke
in Latin America. Various senior positions at
Electrolux Group Brazil, including President
Small Appliances Latin America, Sales and Mar-
keting Director Major Appliances. Management
positions in Volvo Brazil.
Holdings in AB Electrolux: 23,741 B-shares.

Holdings in AB Electrolux are stated as of December 31, 2023 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Carsten Franke
Head of Operations
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 positions
within business area Europe including Chief
Operations Oﬃ cer, Vice President Supply Chain,
Vice President Industrial Operations and Vice
President Electrolux Lean Manufacturing System.
Positions prior to Electrolux Group include
management roles at Knorr-Bremse AG and
Maschinenfabrik Reinhausen
Holdings in AB Electrolux: 14,370 B-shares.

Therese Friberg
Chief Financial Oﬃ cer, Head of Finance,
Legal & IT
Born 1975. Sweden. B.Sc. in Business Adminis-
tration. In Group Management since 2018 and
employed since 1999.
Other assignments: Board member of AB SKF.
Previous positions: Senior positions within
Electrolux Group including CFO of Major
Appliances EMEA, Pricing Manager of Major
Appliances EMEA and Head of Group Business
Control.
Holdings in AB Electrolux: 22,541 B-shares.

Leandro Jasiocha
CEO and Head of business area Latin America
Born 1976. Brazil. Master in Business Administra-
tion, M.Sc. in International Supply Chain/Pur-
chasing. In Group Management since 2023 and
employed 1995-2000, 2002-2016 and since 2018.
Previous positions: Various senior positions
within Electrolux Group including Vice President
Consumer Journey Latin America and Vice
President Product Lines Latin America. Positions
prior to Electrolux Group include management
positions at Hyva Global B.V.
Holdings in AB Electrolux: 6,817 B-shares.

Anna Ohlsson-Leijon
Executive Vice President , CEO and Head of
business area Europe, Asia-Paciﬁ c, Middle East
and Africa, and Head of Group Consumer
Direct Interaction and product line Wellbeing
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: Senior positions within
Electrolux Group including Chief Commercial
Oﬃ cer of AB Electrolux, CEO of business area
Europe, CFO of AB Electrolux, CFO of Major
Appliances EMEA and Head of Electrolux Cor-
porate Control & Services. CFO of Kimoda. Vari-
ous positions within PricewaterhouseCoopers.
Holdings in AB Electrolux: 28,850 B-shares.

Lars Worsøe Petersen
Chief Human Resources Oﬃ cer &
Communication
Born 1958. Denmark. M.Sc. in Economics and
Business Administration. In Group Management
since 2011 and employed 1994–2005 and
since 2011.
Previous positions: CHRO, Senior Vice President
at Husqvarna AB, 2005–2011. Various senior
positions within Electrolux Group including Head
of Human Resources for Major Appliances North
America and Head of Electrolux Holding A/S in
Denmark.
Holdings in AB Electrolux: 34,456 B-shares.

Holdings in AB Electrolux are stated as of December 31, 2023 and includes
holdings of related natural and legal persons, when applicable.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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.
ECS is based on the Internal Control — Integrated
Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway
Commission. 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 ECS is the control environment, which determines
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 Group with clear responsibility
and authority based on collective values.

The AB 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 18.
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 Anti-corruption Policy, as well as in policies for information,
ﬁ nance, and in the accounting manual. Together with laws and

urth Q u arter

Risk
assessment

First

r
t

Improve

Inform and
communicate

Control
activities

i
r

Monitor

ontrol env i r o n m e
rter

n t

d Q u arter

external regulations, these internal guidelines form the control envi-
ronment and all Electrolux Group employees are held accountable
for compliance.

All entities within Electrolux Group must maintain adequate inter-

nal 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 28-29.
The ECS Program Management Oﬃ ce (PMO), a department
within the Group Internal Audit function, has developed the meth-
odology and is responsible for maintaining the ECS. To ensure timely
completion of these activities, speciﬁ c roles aligned with the com-
pany structure, with clear responsibilities regarding internal control,
have been assigned within the Group.

Control environment — Examples

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 Group’s 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 Accounting
Manual. The Accounting Manual is mandatory for all
reporting units.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Control activities
Control activities mitigate the risks identiﬁ ed and ensure accurate
and reliable ﬁ nancial reporting as well as process eﬃ ciency.

Monitor and Improve
Monitor and test of control activities is performed periodically to
ensure that risks are properly mitigated.

Risk assessment
Risk assessment includes identifying risks of not fulﬁ lling the funda-
mental criteria, i.e., completeness, 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, ECS PMO performs a

global risk assessment to determine the reporting units, data centers
and processes in scope for 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 include both general and detailed controls
aimed at preventing, detecting and correcting errors and irregular-
ities. In ECS, the following types of controls are implemented, docu-
mented 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 of incorrect
ﬁ nancial reporting.

Risk assessed

Control activity

Manage IT — Risks assessed

Order to Cash — Risks assessed

Manage IT

Risk of unauthorized/
incorrect changes in
the IT environment.

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.

Order to
Cash

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

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

Order to
Cash

Risk of incurring
bad debt.

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

The eﬀ ectiveness of control activities is monitored 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-performance indicators.

Within 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 proactively
proposes improvements to the control environment. The Head of
Group Internal Audit reports: to the President and CEO and the Audit
Committee for assurance activities, and reports to the Chief Financial
Oﬃ cer for other activities.

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 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 ECS.

The status of ECS activities is followed up continuously through
status meetings between ECS PMO and coordinators in the business
areas. Information about the status of ECS is provided periodically
to business area and Group Management, the Audit Board and the
Audit Committee.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Financial reporting and information
Electrolux Group routines and systems for information and commu-
nication aim at providing the market with relevant, reliable, correct
and up-to-date information concerning the development of the
Group and its ﬁ nancial position. Speciﬁ cally for purposes of con-
sidering the materiality of information, including ﬁ nancial reporting,
relating to Electrolux Group and ensuring timely communication to
the market, an Insider & Disclosure Committee has been formed.
AB 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, half-year reports and interim reports.
• 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 19, 2024

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 2023 on pages 17-32 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, 2024

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 Group Annual Report 2023

Report by the Board of Directors

• Net sales amounted to SEK 134,451m (134,880). Excluding currency translation
eﬀ ects, sales declined by 4.3%.
• Operating income amounted to SEK –2,988m (-215), corresponding to a margin
of –2.2% (-0.2). Excluding non–recurring items of SEK –3,401m (–1,046), operating
income amounted to SEK 414m (831), corresponding to a margin of 0.3% (0.6).
• Income for the period amounted to SEK –5,227m (-1,320), corresponding to
SEK –19.36 (-4.81) per share.
• Operating cash ﬂ ow after investments amounted to SEK 3,064m (-6,118).
• The Board of Directors proposes that no payment of dividend will be made
for 2023.

Key data

SEKm

Net sales

Sales growth, %1)

Organic growth, %

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, %

2023

134,451

2022

Change, %

134,880

-0

n.m.

–4.3

–4.0

–0.3

4.0

-2,988

–2.2

–5,111

–5,227

–19.36

3,064

–6.9

3.1

–3.6

–2.8

–0.8

10.9

–215

–0.2

–1,672

–1,320

–4.81

–6,118

–0.6

3.7

45,452

50,769

3.9

41.75

—4)

–33.7

3.8

60.92

—

–7.0

1) Change in net sales adjusted for currency translation eﬀ ects.
2) Operating income for 2023 included non-recurring item of SEK -3,401m (-1,046). Excluding these items, operating income for 2023 amounted to

SEK 414m (831), corresponding to a margin of 0.3% (0.6), see Note 7.

3) Basic, based on an average of 270.0 (274.7) 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

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Net sales and income

• Net sales decreased by 0.3%. Organic sales
decreased by 4.0% and divestments had a negative
impact of 0.3%. This was largely oﬀ set by a positive
currency translation eﬀ ect of 4.0%.
• Operating income amounted to SEK -2,988m (-215),
corresponding to a margin of -2.2% (-0.2).
• Excluding non–recurring items of SEK -3,401m
(-1,046), operating income amounted to SEK 414m
(831), corresponding to a margin of 0.3% (0.6).
• The decrease in operating income excluding non–
recurring items was primarily driven by lower volumes
following the weaker market demand, and intensiﬁ ed
price pressure in North America.
• Currency headwinds as well as inﬂ ation in labor cost
and energy cost impacted earnings negatively.
• Price was slightly positive, mainly as a result of price
increases implemented in high inﬂ ation countries,
while promotional activity signiﬁ cantly increased
year-over-year.
• A strong product oﬀ ering generated a favorable mix,
despite the general market shift to lower price points.
• The Group-wide cost reduction and North America
turnaround program resulted in a positive year-over-
year eﬀ ect of approximately SEK 5.5bn.
• Income for the period amounted to SEK -5,227m
(-1,320), corresponding to SEK -19.36 (-4.81) per share.

Net sales
Net sales in 2023 amounted to SEK 134,451m (134,880), a decrease
of 0.3%. Currency translation had a positive impact of 4.0%, while
organic sales decreased by 4.0% and divestments had a negative
impact of 0.3%. The organic sales decline was primarily due to the
weak market environment with lower consumer purchasing power
leading to signiﬁ cantly lower volumes for the Group. Price was
slightly positive, mainly as a result of price increases implemented in
high inﬂ ation countries, while promotional activity increased signiﬁ -
cantly year-over-year, in particular during the second half of 2023.
Despite the general market shift to lower price points, mix was posi-
tive, supported by the attractive product oﬀ ering. Aftermarket sales
increased slightly.

Sales growth

SEKm

150,000
150000

100,000
100000

50,000
50000

0
0

-50000

15
15

10
10

5
5

0
0

-5
-5

Net sales
Sales growth
Target: at least 4%

America turnaround program, initiated towards the end of 2022,
resulted in a positive year-over-year eﬀ ect of approximately
SEK 5.5bn from cost eﬃ ciency and reduced investment in innova -
tion and marketing combined. Cost reductions were however not
suﬃ cient to restore earnings in business area North America given
the current market environment. A signiﬁ cant step-up in cost reduc-
tion eﬀ orts for the Group was announced in October 2023, including
further sharpening of the strategic focus and simpliﬁ cation of the
For more information on the perfor-
organizational structure.
mance of each business area, see page 35-37.

Operating margin

SEKm

8,000
8000
6,000
6000
4,000
4000

2,000
2000

0
0

-2,000
-2000

-4,000
-4000

8
8
6
6
4
4

2
2

0
0

-2
-2

-4
-4

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 119.

Total sales growth excluding
currency translation eﬀ ects.

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.

19
19

20
20

21
21

22
22

23
23

19
19

20
20

21
21

22
22

23
23

Operating income
Operating income for 2023 amounted to SEK -2,988m (-215),
corresponding to a margin of -2.2% (-0.2). Operating income
included non-recurring items of SEK –3,401m mainly relating to the
closure and divestment of the Nyíregyháza factory in Hungary,
a provision for a French antitrust case, restructuring charges for
the expanded Group-wide cost reduction and North America
turnaround program and divestment of the factory in Memphis,
Tennessee, U.S. For more information, see Note 7. Excluding non-
recurring items, operating income amounted to SEK 414m (831),
corresponding to a margin of 0.3% (0.6).

Earnings were negatively impacted by lower sales volumes fol-
lowing the weaker market demand and intensiﬁ ed price pressure
in North America. Currency headwinds as well as inﬂ ation in labor
cost and energy cost also impacted earnings negatively. Mix was
favorable, supported by the attractive product oﬀ ering and focus
on high-value categories. The Group-wide cost reduction and North

Financial net
Net ﬁ nancial items amounted to SEK –2,123m (–1,457). 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 -5,111m (-1,672),
corresponding to -3.8% (-1.2) of net sales.

Taxes
Total taxes for 2023 amounted to SEK -116m (352), corresponding to
a tax rate of -2.3% (21.0).

Income for the period and earnings per share
Income for the period amounted to SEK -5,227m (-1,320), corre-
sponding to SEK -19.36 (-4.81) in earnings per share before dilution.
Income for the period was negatively impacted by a write down
related to U.S. tax credits of SEK 1,176m.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Operations by business area

• Market-driven volume drop in Europe.
• Substantial savings from North America turnaround
program. High price pressure resulting in
deteriorating price.
• Good organic contribution in Latin America oﬀ set
substantial currency headwinds.
• Lower volumes in Asia-Paciﬁ c, Middle East and
Africa due to weaker consumer demand.

Market demand overview
The consumer demand in most of Electrolux Group’s main markets
in 2023 was negatively impacted by high general inﬂ ation, rising
interest rates, and geopolitical tensions. Reduced purchasing power
led to more consumers shifting to lower price points. Promotional
activity increased year-over-year due to lower consumer demand,
the resolution of supply chain constraints, and large input cost
discrepancies between Europe and North America on one hand
and certain parts of Asia on the other.

Market demand for core appliances in Europe, excluding
Russia, decreased by 9% in 2023, where Eastern Europe and
Western Europe both declined by 9%. Lower residential construction
and remodeling activity particularly impacted demand in the built-in
kitchen category. In the U.S., market demand for core appliances
remained in line with 2022 in volume, driven by high price pressure.
In Latin America, overall consumer demand is estimated to have
decreased, driven by Brazil and Chile. In Argentina, consumer
demand is estimated to have increased as a result of the highly
inﬂ ationary environment that pushed consumer spending higher. In
Asia-Paciﬁ c, Middle East and Africa, consumer demand for appli-
ances is estimated to have decreased notably in 2023, especially in
Southeast Asia and Australia, compared to solid demand in 2022.

Industry shipments for core appliances in Europe
Million units

Share of sales by business area

110
110

100
100

90
90

80
80

70
70

A total of approximately
80 million core appliances
were sold in Europe in 2023.

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 2023.

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 Group’s operations are organized into four regional busi-
ness areas: Europe, North America, Latin America and Asia-Paciﬁ c,
Middle East and Africa. As of January 1, 2024, a new business area
structure was eﬀ ective and the business areas Europe and
Asia-Paciﬁ c, Middle East and Africa formed one regional business
area. The Group’s operations include products for consumers com-
prising major appliances, e.g. refrigerators, freezers, cookers, dryers,
washing machines, dishwashers, room air-conditioners and micro-
wave ovens. Floor-care products, heat pumps, small domestic appli-
ances as well as consumables, accessories and service are other
important areas for Electrolux.

Europe, 34%
North America, 34%
Latin America, 21%
Asia-Paciﬁ c, Middle East
and Africa, 11%

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)

2023

2022

Change, %

134,451

134,880

-0

n.m.

–65

–30

n.m.

-1,602

–2,341

1,624

460

–1,129

–2,988

–2.2

683

–2,394

1,058

1,308

–870

–215

–0.2

0.3

0.6

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 9% in
2023. Eastern Europe and Western Europe both declined by 9%.
The business area reported an organic sales decline of 7.8% in 2023,
driven by lower volumes across product categories mainly as a
result of declining consumer demand. Built-in kitchen products, a
key segment for the business area, were particularly impacted. Price
was positive, mainly as a result of list price increases implemented
during 2022, partly oﬀ set by increased promotional activities. Mix
was favorable.

Operating income and margin decreased year-over-year, pre-
dominantly due to lower volumes. Price oﬀ set the negative earnings
impact from external factors, driven by energy and labor cost inﬂ a-
tion. The Group-wide cost reduction program, initiated towards the
end of 2022, contributed positively to earnings. Non-recurring items

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

of SEK -2,705m (-774) were included in the operating income, mainly
relating to the closure and divestment of the Nyíregyháza factory in
Hungary, a provision for a French antitrust case, and a restructuring
charge for the expanded Group-wide cost reduction program, see
Note 7.

Europe, Net sales and operating margin
%

SEKm
60,000
60000

40,000
40000

20,000
20000

0
0

-20000

19
19

20
20

21
21

22
22

23
23

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 119.

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

12
12

8
8

4
4

0
0

-4
-4

2023

2022

45,349

46,573

–7.8

—

–1.0

-1,602

-3.5

2.4

3,783

-23.2

2,491

16,393

–8.6

0.1

–2.2

683

1.5

3.1

5,768

15.1

3,310

18,250

North America
Market demand for core appliances in the U.S. in terms of units and
market demand for all major appliances, including microwave ovens
and home-comfort products remained in line with 2022 in volume,
driven by high price pressure.

The business area reported an organic sales decline of 8.4%.

High price pressure in the market resulted primarily in a deteriorating
price but also contributed to lower volumes as the business area
had a selective promotional approach. During the year, the cooking
manufacturing in Springﬁ eld was transferred from the legacy factory
to the new one, which impacted product availability.

Operating income was negative. This was mainly a result of the
organic sales decline, primarily driven by price pressure but also
due to lower volumes. The strategy focusing on growth in targeted
high-value categories resulted in a positive mix, enabled by the
investments in new innovative modular product architectures. The
North America turnaround program, initiated towards the end of
2022, generated substantial savings during 2023. This was however
not suﬃ cient to restore earnings given the current market environ-
ment. In addition, the closure of the legacy factory in Springﬁ eld
resulted in temporarily higher costs. The impact on earnings from
external factors was negative, driven by currency. Non-recurring
items of SEK 148m (241) were included in the operating income relat-
ing to a restructuring charge for the expanded Group-wide cost
reduction and North America turnaround program and divestment
of the factory in Memphis, Tennessee, U.S. see Note 7.

North America, Net sales and operating margin
SEKm

60,000
60000

45,000
45000

30,000
30000

15,000
15000

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

19
19

20
20

21
21

22
22

23
23

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

2023

2022

45,072

47,021

–8.4

–0.9

–2,341

–2,394

–5.2

–5.5

11,593

–18.2

1,292

–5.1

–5.6

11,854

–20.5

1,738

Latin America
Overall consumer demand for core appliances in Latin America in
2023 is estimated to have declined. 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 15.2% in 2023, mainly driven by higher volumes in Brazil.
Currency related price adjustment in Argentina impacted sales posi-
tivley, while high promotional activity had a negative impact in other
markets. Well-received product launches contributed to a favorable
mix and aftermarket sales developed strongly.

Operating income and margin increased year-over-year. The
increase was driven by the strong volume growth. Proactive price
management in Argentina mitigated the signiﬁ cant currency head-
wind, mainly related to the depreciation of the Argentinan peso,
most notably following the sharp devaluation in December. The
Group-wide cost reduction program, initiated towards the end of
2022, contributed positively to earnings. Investments in brand build-
ing activities and consumer direct capabilities increased. A non-
recurring item of SEK -51m (-80) was included in the operating
income, relating to a restructuring charge for the expanded Group-
wide cost reduction program, see Note 7.

Latin America, Net sales and operating margin
SEKm

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

12
12
10
10
8
8
6
6
4
4
2
2
0
0

30,000
30000
25,000
25000
20,000
20000
15,000
15000
10,000
10000
5,000
5000
0
0

19
19

20
20

21
21

22
22

23
23

Latin America, Key ﬁ gures

SEKm

Net sales

Organic growth, %

Operating income

Average number of employees

10,887

12,995

Operating margin, %

1) For information on non-recurring items, see Note 7 and page 119.

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 119.

2023

2022

28,920

24,303

15.2

1,624

5.6

5.8

4.2

1,058

4.4

4.7

7,841

8,724

18.6

699

8,459

13.1

979

9,571

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Asia-Paciﬁ c, Middle East and Africa
Consumer demand for appliances is estimated to have decreased
notably in the region in 2023, especially in Southeast Asia and
Australia, compared to solid demand in 2022.

The business area reported an organic sales decline of 8.4%.
This was driven by lower volumes, mainly due to weaker consumer
demand. Price increases implemented in high-inﬂ ation countries
generated a favorable price development, although partly oﬀ set
by increased promotions in other markets.

Operating income and margin decreased year-over-year, due
to lower volumes while currency headwinds were oﬀ set by price.
Mix was slightly negative. The Group-wide cost reduction program,
initiated towards the end of 2022, contributed positively to earnings.
A non-recurring item of SEK -323m (-66) was included in the oper-
ating income, relating to a restructuring charge for the expanded
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

19
19

20
20

21
21

22
22

23
23

Asia-Paciﬁ c, Middle East and Africa, 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

1) For information on non-recurring items, see Note 7 and page 119.

2023

2022

15,109

16,984

-8.4

460

3.0

5.2

-0.5

1,308

7.7

8.1

5,471

6,370

7.2

651

21.9

850

7,704

8,040

Other facts

Changes in Group Management during 2023
As part of the re-organization of Electrolux Group eﬀ ective as of
November 1, 2023, the following changes were made in Group
Management.

Anna Ohlsson-Leijon, existing member of Group Management,

was appointed Group Executive Vice President and head of the
combined business area Europe, Asia-Paciﬁ c, Middle East and
Africa. Dan Arler was appointed head of product line Taste,
Ian Banes was appointed head of product line Care and
Elena Breda was appointed head of global function Technology
& Sustainability. Therese Friberg, existing member of Group Man-
agement, was appointed head of the combined global function
Finance, Legal & IT. Carsten Franke remains as head of global
function Operations and Lars Worsøe Petersen remains as head
of global function People & Communications. Ola Nilsson left his
position as head of the organizational area Consumer Experience
& Product Lines.

As of January 1, 2024, the new business area structure was eﬀ ec-
tive and the business areas Europe and Asia-Paciﬁ c, Middle East
and Africa formed one regional business area under the leadership
of Anna Ohlsson-Leijon. Chris Braam left his position as head of
business area Europe and Adam Cich left his position as head of
business area Asia-Paciﬁ c, Middle East and Africa, but both remain
in other roles in the new organization for Business area Europe,
Asia-Paciﬁ c, Middle East and Africa. The other two regional business
areas, North America under the leadership of Ricardo Cons and
Latin America under the leadership of Leandro Jasiocha, remain.

Statutory sustainability report
For sustainability related information, please see Statutory sustain-
ability report on page 49-50 and 58-68. 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 discon-
tinued 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, 2023, the Group had a total of 3,625 (3,365)
cases pending, representing approximately 3,630 (approximately
3,371) plaintiﬀ s. During 2023, 1,161 new cases with approximately
1,161 plaintiﬀ s were ﬁ led and 901 pending cases with approximately
902 plaintiﬀ s were resolved.

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 Group Annual Report 2023

Financial position

• Financial net debt position amounted to
SEK 20,871m (19,828).
• Net debt/EBITDA ratio was 3.9 (3.8).
• Equity/assets ratio was 10.8% (15.0).
• Return on net assets was –6.9% (-0.6).

Working capital and net assets
Working capital as of December 31, 2023, amounted to SEK –16,925m
(–13,731), corresponding to –13.2% (–9.9) of annualized net sales.
Operating working capital amounted to SEK 5,809m (7,504),
corresponding to 4.5% (5.4) of annualized net sales.

Average net assets were SEK 43,401m (36,684), corresponding

to 32.3% (27.2) of annualized net sales.
Return on net assets was -6.9% (-0.6).

Liquid funds
Liquid funds as of December 31, 2023, amounted to SEK 15,669m
(17,800), excluding back-up credit facilities. As per December
31, 2023, Electrolux Group had an unused committed back-up
multi-currency sustainability linked revolving credit facility of
EUR 1,000m, approximately SEK 11,100m, maturing in 2028, two
unused revolving credit facilities, each amounting to SEK 3,000m,
maturing in 2025.

Working capital and net assets

SEKm

Inventories

Trade receivables

Accounts payable

Dec. 31,
2023

% of net
sales1)

Dec. 31,
2022

% of net
sales1)

19,965

22,247

15.6 24,374

17.4

21,487

17.7

15.6

–36,402

–28.5 –38,357

–27.8

Operating working capital

5,809

4.5

7,504

5.4

Provisions

–10,730

–8,693

Prepaid and accrued income
and expenses

Taxes and other assets and
liabilities

–11,302

–12,567

-702

Working capital

–16,925

–13.2 –13,731

–9.9

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 121 for deﬁ nition.
2) Calculated at end of period exchange rates.
3) Calculated at average exchange rates.

28,730

29,876

4,337

6,579

7,086

7,694

3,906

7,081

6,224

6,940

37,500

29.4 40,297

29.2

127,750

138,040

43,401

32.3 36,684

27.2

134,451

–6.9

134,880

–0.6

Liquidity proﬁ le

SEKm

Liquid funds

% of annualized net sales1)

Net liquidity

Fixed interest term, days

Eﬀ ective annual yield, %

1) Liquid funds in relation to net sales, see page 121 for deﬁ nition.
For additional information on the liquidity proﬁ le, see Note 18.

Capital turnover-rate
Times/year

8
8

6
6

4
4

2
2

0
0

Dec. 31, 2023 Dec. 31, 2022

15,669

25.6

7, 744

3.0

17,800

24.9

8,724

0.8

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

Return on net assets
SEKm

60,000
60000

40,000
40000

20,000
20000

0
0

-20000

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

30
30

20
20

10
10

0
0

-10
-10

19
19

20
20

21
21

22
22

23
23

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Net debt
As of December 31, 2023, Electrolux had a ﬁ nancial net debt
position (excluding lease liabilities and post-employment provisions)
of SEK 20,871m, compared to the ﬁ nancial net debt position of
SEK 19,828m as of December 31, 2022. Net provisions for post-
employment beneﬁ ts were SEK 670m (-245) and lease liabilities
amounted to SEK 4,685m (4,264) as of December 31, 2023.
In total, net debt amounted to SEK 26,226m, an increase by
SEK 2,378m compared to SEK 23,848m per December 31, 2022.

Long-term borrowings and long-term borrowings with maturities

within 12 months amounted to a total of SEK 33,276m as of
December 31, 2023 with an average maturity of 3.5 years, compared
to SEK 31,343m and 4.0 years at the end of 2022. During 2024,
long-term borrowings amounting to approximately SEK 4.5bn
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 8,000m of the long-term borrowings is allowed
to mature in a 6-month period. The maximum amount of long-term
borrowings maturing in any given 6-months period was SEK 7,548m
at the end of 2023. At year-end, the average interest-ﬁ xing period
for long-term borrowings was 2.3 years (2.3).

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

bearing borrowings was 4.4% (3.4).

Net debt and equity ratios
The net debt/EBITDA ratio was 3.9 (3.8) and the net debt/equity
ratio was 2.33 (1.45). The equity/assets ratio was 10.8% (15.0).

Equity and return on equity
Total equity as of December 31, 2023, amounted to SEK 11,274m
(16,449), which corresponds to SEK 41.75 (60.92) per share. Return
on equity was -33.7% (-7.0).

Dec. 31, 2023 Dec. 31, 2022

Long-term borrowings, by maturity
SEKm

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)

2,864

4,476

7,388

253

285

7,925

28,800

36,725

5,732

2,605

8,377

445

254

9,076

28,738

37,813

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, %

15,331

17,559

167

155

168

15,669

17,800

20,871

4,685

19,828

4,264

670

–245

26,226

23,848

3.9

2.33

11,274

41.75

-33.7

10.8

3.8

1.45

16,449

60.92

–7.0

15.0

1) Whereof interest-bearing liabilities amounting to SEK 36,140m as of December 31, 2023 and

SEK 37,075m as of December 31, 2022.

10,000
10000

8,000
8000

6,000
6000

4,000
4000

2,000
2000

0
0

29-

Net debt/EBITDA ratio

In 2024, long-term borrowings
in the amount of approximately
SEK 4.5bn 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,
BBB with a stable outlook.

Long-term debt Outlook

Short-term
debt

Short-term
debt, Nordic

S&P Global
Ratings

BBB

Stable

A–2

K–2

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Capital expenditure
Capital expenditure in property, plant and equipment in 2023
amounted to SEK 4,069m (5,649). 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 5,699m (7,389), corresponding to
4.2% (5.5) of net sales.

Capital expenditure by business area

Cash ﬂ ow

• Operating cash ﬂ ow after investments amounted to
SEK 3,064m (-6,118).
• Capital expenditure amounted to SEK 5,699m
(7,389).
• R&D expenditure amounted to 3.4% (3.4) of net sales.

Operating cash ﬂ ow after investments
SEKm

10,000
10000

5,000
5000

0
0

-5,000
-5000

-10,000
-10000

Capital expenditure
SEKm

8,000
8000

6,000
6000

4,000
4000

2,000
2000

0
0

Operating cash ﬂ ow after
investments in 2023 amounted
to SEK 3,064m (-6,118).

8
8000

6
6000

4
4000

2
2000

0
0

Capital expenditure
Depreciation and
amortization

Capital expenditure in 2023
including product development
and software amounted to
SEK 5,699m (7,389).

19
19

20
20

21
21

22
22

23
23

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

Operating cash ﬂ ow after investments
Operating cash ﬂ ow after investments in 2023 amounted to
SEK 3,064m (-6,118). The year-over-year improvement reﬂ ects a
reduction in inventories after the increase caused by supply chain
imbalances and logistic constraints in 2022. In addition, a lower
level of investments impacted cash ﬂ ow positively.

Cash ﬂ ow

SEKm

Operating income adjusted for
non-cash items1)

Change in operating assets and liabilities

Operating cash ﬂ ow

2023

2022

6,825

6,845

597

–6,367

7,422

478

Investments in tangible and intangible assets

–5,699

–7,389

Changes in other investments

Operating cash ﬂ ow after investments

Acquisitions and divestments of operations

1,341

3,064

—

793

–6,118

–366

Financial items paid, net2)

Taxes paid

Cash ﬂ ow from operations and investments

Payment of lease liabilities

Dividend

Repurchase of shares

Share-based payments

–2,039

–1,380

-355

-1,111

—

–1,238

–1,514

–9,236

–960

–2,521

–2,138

–217

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

-1,449

–15,073

1) Operating income adjusted for depreciation and amortization and other non-cash items.
2) Interests and similar items received SEK 392m (71), interests and similar items paid SEK -2,349m

(–1,206) and other ﬁ nancial items paid SEK -82m (–103).

SEKm

Europe

% of net sales

North America

% of net sales

Latin America

% of net sales

Other

Total

% of net sales

Operating cash ﬂ ow after structural changes

3,064

–6,484

Asia-Paciﬁ c, Middle East and Africa

R&D expenditure
The expenditure for research and development in 2023 including
capitalization of SEK 602m (740), amounted to SEK 4,514m (4,640)
corresponding to 3.4% (3.4) of net sales.

2023

2,491

5.5

1,292

2.9

699

2.4

651

4.3

566

5,699

4.2

2022

3,310

7.1

1,738

3.7

979

4.0

850

5.0

512

7,389

5.5

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 25% in 2023,
underperforming the broader Swedish market index, OMX Stockholm,
which increased by 15% during the same period. The opening price
for the Electrolux B share in 2023 was SEK 141.86. The highest closing
price was SEK 173.70 on May 3, while the lowest closing price was
SEK 90.00 on October 27. The closing price for the B share at
year-end 2023 was SEK 108.10.

Total shareholder return during the year was -25%. Over the past

ten years, the average total return on an investment in Electrolux
B shares has been 1.8% annually. The corresponding performance
for the OMX Stockholm Return Index was 11.3%.

Share capital and ownership structure
As of December 31, 2023, 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 AB 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. 544 A shares were converted to B shares
in 2023.

The total number of registered shares in the company amounts
to 283,077,393 shares, of which 8,191,804 are Class A shares and
274,885,589 are Class B shares, and the total number of votes
amounts to 35,680,363. The dual share class system is common in
Sweden. The share structure and the rights attached to the diﬀ erent
classes of shares are determined in the articles of association, which
can be amended only by a special resolution of the shareholders
and are combined with minority protection rights set out in the
Swedish Companies Act.

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, 54%
Foreign investors, 32%
Swedish private investors, 14%

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, 2023.

Major shareholders

Investor AB

Silchester International Investors

Swedbank Robur Funds

Alecta Occupational Pension

Vanguard

Norges Bank

Black Rock, Inc.

Folksam

Lannebo Funds

Carnegie Funds

Share
capital, %

Voting
rights, %

17.9

6.3

5.9

3.1

2.9

2.1

1.9

1.7

1.6

1.5

30.4

5.0

4.7

3.7

2.3

1.6

1.5

1.4

1.3

1.2

Total, ten largest shareholders

44.9

53.1

According to Monitor by Modular Finance AB, there were 75,049
shareholders in AB Electrolux as of December 31, 2023. 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

4.6

6.0

1.3

88.2

100

68,091

6,403

246

309

75,049

90.7

8.5

0.3

0.4

100

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Distribution of funds to shareholders

Dividend 2022
The Annual General Meeting in March 2023 decided to
adopt the Board’s proposal that no dividend should be distributed
for the ﬁ scal year 2022 and that AB Electrolux funds would be carried
forward in the new accounts.

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 2023 was negative, the Board of
Directors proposes that no dividend shall be distributed for the
ﬁ scal year 2023.

Total distribution to shareholders
SEKm

Number of shares1)

10,000
10000

8,000
8000

6,000
6000

4,000
4000

2,000
2000

0
0

Dividend
Distribution of Electrolux
Professional AB
Redemption

Electrolux has a long tradition
of high total distribution to
shareholders.

A shares

B shares

Shares, total

Shares held
by Electrolux

Shares held by
other shareholders

Number of shares as of January 1, 2023

8,192,348

274,885,045

283,077,393

13,049,115

270,028,278

Change during the year

–544

544

Total number of shares as of December 31, 2023

8,191,804

274,885,589

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%

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Employees

Electrolux Group's 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
policies 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 2023
to 45,452 (50,769), of whom 1,699 (1,720) were in Sweden. Salaries
and remuneration in 2023 amounted to SEK 20,104m (19,644), of
which SEK 1,461m (1,561) refers to Sweden.

Employees
55000
55,000

50000
50,000

45000
45,000

40000
40,000

35000
35,000

19
19

20
20

21
21

22
22

23
23

SEKm
3,2
3.2

2,9
2.9

2,6
2.6

2,3
2.3

2,0
2.0

Average number of
employees
Net sales per employee

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 applicable,
remuneration to board members for work in addition to the board
assignment. The Group Management currently comprises ten
executives.

The guidelines shall be applied to employment and consultancy

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
remuneration 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
recommendation 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 mem-
bers 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.

The average number of
employees decreased to
45, 452 (50,769) in 2023.

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.

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

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
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.

Employment contracts governed by rules other than Swedish

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/

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Variable compensation shall mainly relate to ﬁ nancial perfor-
mance 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.

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
ownership 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
wholly-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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Events after year-end

January 11. Electrolux Group announces its second
science-based climate target.
Electrolux Group announces that it has set a new science-based
climate target to reduce greenhouse gas emissions in products and
operations in support of the Paris climate agreement. The new target
comes after the Group achieved its previous science-based target
three years ahead of plan.

The new target aims to reduce the company’s direct and indirect
emissions resulting from its own operations (scope 1 and 2) by 85%
and to reduce the Group’s absolute scope 3 emissions (use of sold
products, materials, transport of products and business travel) by
42% between 2021 and 2030.

January 12. Electrolux Group announced loss for the fourth quarter
2023 driven by North America
Electrolux Group announced that operating income in the fourth
quarter of 2023, excluding non-recurring items of SEK -2.5bn (-1.4),
was estimated to be approximately SEK -0.7bn (-0.6).

January 25. Geert Follens, Daniel Nodhäll and Michael Rauterkus
proposed as new Board members of AB Electrolux
The Nomination Committee of AB Electrolux proposes election
of Geert Follens, Daniel Nodhäll and Michael Rauterkus as new
members of the Board of Directors at the Annual General Meeting
of AB Electrolux on March 27, 2024. The Nomination Committee
further proposes re-election of Petra Hedengran, Ulla Litzén, Karin
Overbeck, David Porter, and Jonas Samuelson, as Board members.

As previously communicated, Torbjörn Lööf is proposed to
be elected as the new Chairman of the Board of Directors since
Staﬀ an Bohman, the current Chairman of the Board of Directors,
has announced that he will not be available for re-election. Board
members Henrik Henriksson and Fredrik Persson have also declined
re-election.

February 6. CDP awards Electrolux Group ‘’A’’ for climate leadership
Electrolux Group has once again been recognized for its lead-
ership in corporate transparency and performance on climate
change by global environment non-proﬁ t CDP, achieving an “A”
score. Electrolux Group is one of a small number of companies that
achieved an ‘’A’’ – out of more than 21,000 companies scored. This is
the seventh time Electrolux Group has achieved an A score for the
CDP Climate.

For more information, visit www.electroluxgroup.com

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Risk management

Overview and governance

Enterprise Risk Management (ERM) at Electrolux Group enhances
organizational resilience by proactively identifying, assessing, and
mitigating risks. In this way the Group safeguards long-term value
and fosters sustainable success and the capacity to reach ﬁ nancial
targets and strategic objectives. Electrolux Group is exposed to risks
that can impact its operations, ﬁ nancial stability and reputation,
hence ERM plays a critical role for navigating in a global market.
The ERM governance at Electrolux Group encompasses the
examination and continual surveillance of various risk categories,
adhering to the “three lines”1) model. It covers all Business Areas,
Operations, Product Lines and Functions within the Group. The
Group employs a decentralized global risk management approach,
where each function is responsible for managing its own risks. The
Electrolux Board of Directors is ultimately responsible for the gover-
nance of risk management. Electrolux Group has established inter-
nal bodies that regularly oversee and address risk exposure. This
includes the Enterprise Risk Management Board (ERM Board),
the Ethics & Human Rights Steering Group, the Audit Board, and
the Tax Board. Sustainability risk are managed in the Sustainability
Board.

ERM Board

Group Risk Management

Europe,
Asia Paciﬁ c,
Middle East
and Africa

North America

Latin America

The ERM Board has been strengthened since the beginning of 2023 by including
all members of the Group Management team in the ERM Board.

1) The “three lines” model deﬁ nes roles for operational management, risk functions,

and internal audit to ensure eﬃ cient risk oversight in an organization.

The ERM Board was established primarily to oversee and facilitate
that the Electrolux Group’s ERM activities are conducted in a holis-
tic and proactive manner to support the achievement of Electrolux
Group’s strategic ambitions. The overall purpose is to support and
strengthen the development of integrated risk assessment pro-
cesses. This ensures that timely and periodic assessments of risks
shall be assured and enables the management to monitor the
identiﬁ ed relevant risks within the Business or Group Functions.

Risk Transfer, Insurance Protection and Loss Prevention
Electrolux Group is proactively using diﬀ erent methods of risk trans-
fer. This includes tailored insurance programs that are continuously
evaluated, and actions to reduce insurable risks. The Group owns
two Captives to ensure customized insurance solutions and costs
eﬃ ciencies. Risk transfer is also done by the optimization of con-
tracts and hedging via the capital markets.

Electrolux Group’s Loss Prevention strategy is a backbone of its

global risk reduction activities. Electrolux Group is running a risk
management program, called Blue Risk, to implement loss preven-
tion solutions. This program minimizes the probability of major loss
(ﬁ re, natural catastrophe, machinery breakdown, etc.) that could
cause signiﬁ cant business interruption. To manage such events
Electrolux Group has a Business Continuity Management (BCM) pro-
gram to recover and maintain critical activities that aﬀ ect business
operations. The interlinkage of ERM work, Loss Prevention and
Business Continuity Management creates resilience and safeguards
the interests of Electrolux Group, its key stakeholders, reputation,
brand and value-creating activities.

Electrolux Group Risk Universe

Strategic risks
and opportunities

Manageable
business risks

Strategic risks

Innovation

Digital transformation

Disruptive Technologies

Sustainable development

M&A

Strategic directions

Continuous improvement

Emerging risks

External risks

Geopolitical

Competition

Customers

Raw Material Impact

Natural Hazards

Regulations

Internal risks

Supply Chain

Production

Human Resources

Quality

Cyber

Anti-Bribery

Litigation

Compliance

Ethics & Human Rights

Anti-Trust

Fraud

Sustainability

Manufacturing processes

Liquidity

Credit

Reﬁ nancing

Interests

Pension

Capital structure

Capital markets

Currency

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

ERM Framework
The ERM framework incorporates processes designed to identify,
mitigate, communicate and report risks, with a speciﬁ c emphasis
on key risks that can signiﬁ cantly impact the business, including
considerations of environmental, social, and governance matters.
Electrolux Group employs a risk mapping process as a management
tool for systematically collecting and integrating risk information into
decision-making and governance processes. These risk mappings
are integral to Electrolux Group’s ERM, emphasizing that eﬀ ective
risk management is crucial for decision-making and value creation.
At the core of the risk mapping process is the identiﬁ cation and

evaluation of existing and emerging risks. Risks are categorized
within the Electrolux Group Risk Universe (see illustration on the
previous page), encompassing strategic, external, and internal
risk categories. Strategic risks pose a threat to the execution of the
Group’s strategy and are inﬂ uenced by external factors, e.g. industry
shifts, macroeconomic developments or political instabilities. Exter-
nal risks include natural disasters, geopolitical risks, market risks, or
regulations that can negatively impact the Group’s performance.
Sustainability risks, cyber security risks, supply chain risks and talent
retention risks are examples of primary internal operational risks.

Electrolux Group also actively monitors emerging risks stemming
from macro-level changes e.g. examples are global warming, shifts
in consumer behavior, or the introduction of Artiﬁ cial Intelligence
(AI) that leads to increased cyber risk exposure. These emerging
risks may also originate from more localized factors, such as industry
prospects and trends.

Electrolux Group’s risk appetite is determined by assessing the

impact a risk has on the Group strategy if it materializes. Key risks are
linked to action plans aimed at closing risk management gaps, and
to continuously monitor tracks on how risks evolve after implement-
ing risk-mitigation measures. Risk ownership is assigned to business
executives or individuals formally appointed to handle speciﬁ c risks.
This approach fosters a risk culture that encourages engagement
and accountability within the organization.

Key risks for the Group

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

Major shifts in the industry
As society increasingly embraces digitalization, consumer behav-
ior undergoes transformations, causing signiﬁ cant structural shifts
across various industries, notably in consumer goods. The pace of
these changes has accelerated following the impact of the coro-
navirus pandemic. Electrolux Group recognizes numerous oppor-
tunities arising from these developments but is also proactively
addressing potential risks as lack of business agility or an inability
to foresee external developments. The Group monitors the evolving
competitive landscape, keeping a close eye on new market players,
evolving business models, shifts in alliances, and heightened com-
petition. Electrolux Group’s ability to invest in growth and innovation,
including new segments, is crucial for its strategy. Not executing
on the Group’s strategic priorities in a timely manner may aﬀ ect the
delivery of outstanding consumer experience and proﬁ table growth.

Digital transformation / Internet of Things (IoT)
In addition to the digital transformation in Operational Excellence,
Electrolux Group is also undertaking a digital transformation in IoT.
Premium segments of the market worldwide are increasingly relying
on connected products for better appliance performance, experi-
ence and more product features. Electrolux Group is now changing
how it develops connected products for improved, more scalable
and valuable experiences by creating electronics and software
platforms that span across product categories to enable this. This
will require state-of-the-art ways of working and more digital talent,
which is in high demand across industries and geographies. Key
risks in realizing the platform ambition is talent attraction, retention,
and the ability to upskill existing talent. Electrolux Group manages
this risk by seeking highly experienced IoT talent that strategically
drive execution and will closely monitor progress on launching
teams into digital projects.

IT and cyber risks
The digital transformation of the global economy, and of Electrolux
Group speciﬁ cally, leads to great opportunities. As Electrolux Group
leverages more technology to take advantage of the opportunities,
it also creates new risks and greater exposure. For example the new
ways of working digitally, accelerated by the pandemic and used

by many Electrolux Group employees, customers and suppliers,
have increased the cyber risks. Cyber security control failures have
become an emerging risk that is closely monitored. The Group con-
tinuously prepares for cyber attacks by assessing its cyber risk pro-
ﬁ le, remediating where needed and proactively managing its cyber
defenses. Speciﬁ c trainings are continuously being performed to
improve awareness, knowledge and skills. 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.

Geopolitical and security risks
Electrolux Group has adopted a systematic approach to political
risk management. With war in Europe, conﬂ ict in the Middle East
and growing tensions in Asia-Paciﬁ c, geopolitical uncertainties are
impeding global economic progress and fostering considerable
instability. In Europe, the war in Ukraine is ongoing. Hamas’ ter-
rorist attack on Israel and Israel’s response, risks spilling-over into
a broader regional conﬂ ict. In the Taiwan Strait and South China
Sea there is increasing military activity. Combined, these risks have
created a challenging business environment, in which Electrolux
Group must navigate. The Group monitors geopolitical events that
may negatively impact its operations, employees and customers.
In Ukraine, where Electrolux Group continues to operate, the risks
are regularly re-evaluated to ensure the security and safety of its
employees and their families. Electrolux Group aims to minimize
potential disruption to manufacturing, sourcing and supply chain,
through an integrated risk-management program. Geopolitical
factors are expected to continue to inﬂ uence global energy prices,
foreign exchange rates and dampen consumer sentiment in the
near-term. Electrolux Group undertakes business continuity planning
to minimize potential disruption, enable quicker recovery and create
a competitive advantage.

Regulatory risks
Electrolux Group must adhere to a wide spectrum of regulations,
laws and industry standards. As the regulatory landscape continues
to evolve, it becomes crucial to proactively monitor and address
risks associated with legal and product compliance, antitrust con-
cerns, trade regulations, supply chain due diligence, contractual
obligations, safeguarding intellectual property and patents, pre-
serving conﬁ dential information, ensuring personal data protection,
and handling insider information, among others. Failure to comply
with these regulations could result in penalties, ﬁ nes, increased
operational expenses, revocation of permits, or even the cessation

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

of certain product manufacturing. To mitigate these risks, Electrolux
Group employs in-house legal experts and governmental aﬀ airs
specialists across its business sectors to oversee regulatory changes
and handle compliance matters. Ongoing employee training plays
a vital role in ensuring adherence to these laws, regulations and
standards.

Market risks
Consumer behavior has been highly impacted by several abnor-
mal economic circumstances over the past few years, ranging from
pandemic distortions, war outbreaks and high inﬂ ation levels. Wors-
ening purchasing power and deteriorating economic growth have
dampened consumer spending, impacting Electrolux Group’s sales,
especially in Europe and North America. If economic conditions
continues to worsen and/or a ﬁ nancial crisis is triggered, Electrolux
Group’s sales could be further impacted.

To mitigate these risks, Electrolux Group closely follows market

and sales developments that could impact consumer behavior.
Electrolux Group also focuses on an agile manufacturing set-up to
mitigate and adapt to changes in demand. In times of strong market
demand, it is also essential that Electrolux Group can beneﬁ t from its
global scale by delivering new innovative products and outstanding
consumer experiences with a high speed to market.

Electrolux Group’s markets are also subject to price competition.
This is particularly evident in the low-cost segments and in product
categories with signiﬁ cant overcapacity. In markets with high inﬂ a-
tion combined with currency rate ﬂ uctuations, Electrolux Group has
greater opportunities 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 Group purchased raw materials and
components for approximately SEK 53 bn, of which approximately
SEK 24 bn referred to raw materials, in 2023. Logistics accounted for
approximately 10% of net sales in 2023. In order to mitigate increases
in prices for raw material, components and logistics, Electrolux
Group strives to raise the prices of its products, improve cost eﬃ -
ciency and negotiate more favorable purchasing contracts for com-
modities such as steel and chemicals.

Sensitivity analysis year-end 2023

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

PLN to EUR
Translation exposure to SEK3)

Change +/–

Pre-tax earnings
impact –/+, SEKm

10%

900

300

500

390

420

280

310

280

130

100

170

110

120

-94

Interest rate

1 percentage point

1) Changes in raw materials refer to Electrolux Group 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 2023

Carbon steel, 35%
Plastics, 22%
Stainless steel, 11%
Copper and aluminum, 9%
Other, 23%

Supply Chain risks
Electrolux Group is heavily dependent on deliveries of raw material
and components to its factories and a functioning global logistics
system that can deliver products from the supply and manufacturing
systems to its customers and consumers. In 2023, no notable disrup-
tion of the Group’s global supply chain or suppliers’ challenges to
manufacture to its needs was experienced. A few, temporary supply

challenges arose due to severe river/canal droughts (especially in
Brazil and Panama), intensiﬁ ed US border controls at the Mexico/
Texas borderline, and production issues at suppliers’ factories.
Nonetheless, the principal supply chain risks remain. These risks
include: potential cost impact and disturbances related to geo-
political tensions and crises, weather and climate related logistics
challenges, pandemic related business shutdowns, and potential
supply shortages for key materials and components. The needs for
electronics and special materials is also a risk. Shortages may cause
manufacturing and delivery disruptions which may impact custom-
ers signiﬁ cantly as well as increase costs associated with layoﬀ s,
manufacturing adaptation, etc. Electrolux Group builds and adapts
its business continuity plans to address these key risks and also
promotes continuous collaboration with selected large suppliers to
monitor their major risks.

Ethics related compliance risks
Electrolux Group faces a wide array of ethical and sustainability
considerations, including human rights, privacy, employment condi-
tions, and corruption. Non-compliance with anti-corruption law may
result in substantial ﬁ nes or various sanctions. Furthermore, breaches
of human rights and ethical norms have the potential to adversely
aﬀ ect the Group’s brands and corporate reputation. In response
to these risks, Electrolux Group has implemented thorough internal
governance procedures and policies, along with employee training
initiatives.

Key people and talent
Having the right people is essential for an organization’s success. A
risk in this regard refers to challenges such as key talent leaving, skill
shortages or failure to develop and retain crucial talent, especially in
times of ﬁ nancial constraints and re-organizations. It is essential to
attract and retain competences for the future. The Group has strate-
gies in place like succession planning, talent development programs
and a strong organizational culture to mitigate these risks and to
ensure continuity.

Electrolux Group strives to be recognized as an employer of

choice, a desired workplace and the ﬁ rst choice for talent.

By creating an outstanding experience throughout the talent jour-

ney, both internal pride and external awareness is built. The Group
is committed to be a responsible employer, providing a sustainable,
eﬃ cient, diverse, and healthy working environment with fair terms of
employment for the workforce.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Sustainability risks

Electrolux Group has well-deﬁ ned sustainability objectives in its
For the Better 2030 sustainability framework. The Group’s ability
to meet these objectives and accurately and transparently report
on its progress presents risks from operational, ﬁ nancial, legal and
other types of risk. There is growing concern for sustainability topics
and an increasing interest from legislators to regulate companies’
responsibilities for sustainability topics in their supply chains, which
adds legal exposure and may ultimately negatively aﬀ ect the ability
to sell products. Electrolux Group therefore closely monitors these
risks.

Environment risks
The main environmental risks are related to regulatory and con-
sumer requirements. Not meeting requirements could result in ﬁ nes
or limitations in production permits, reduced sales or product with-
drawal. Electrolux Group has processes in place to mitigate these
risks, including ISO management systems, internal audits, a Respon-
sible Sourcing program, and target setting in product development
plans.

two diﬀ erent climate scenarios outlined in the Climate Risk Disclosure
result in a variety of risks and opportunities for Electrolux Group
throughout its value chain as described below.

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

Carbon taxes – The Group is well prepared to meet the risks of

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

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

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
(Climate Change 2023: Synthesis Report), human activity is already
changing the climate in unprecedented ways. The report calls for
strong and sustained action to limit climate change.

As product energy use is responsible for approximately 85% of
Electrolux Group’s climate impact, product eﬃ ciency is where the
Group can make its greatest contribution to tackling climate change.
Electrolux Group is reducing carbon dioxide emissions from its man-
ufacturing facilities, product transport, and the energy consumed
during the use of its sold products.

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.

Risk Disclosure.

The ERM includes climate-related risks in line with the Climate
Read more on pages 53-57.
Electrolux Group has a thorough risk mapping and decision-
making process that manages all risks related to its business. The

Primary acute and chronic physical risks
Group operations – Electrolux Group has a well-established loss
prevention program called Blue Risk. The program has not found
that Group 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
modelling to better identify the long-term eﬀ ects will be conducted,
based on reputable external sources. Adequate insurances are in
place to mitigate this risk.

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

Transport systems – The global logistical systems Electrolux Group

relies on for the movement of its raw materials, components and ﬁ n-
ished goods are thought to be resilient to acute and chronic physical
risks as alternative logistical arrangements are likely found. More
investigation is required to mitigate the risk.

Social risks
Electrolux Group’s 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 labor rights at suppliers
and corruption.

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

Electrolux Group monitors performance and manages risks
through internal and external audits, annual audits for manufac-
turing 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,
training eﬀ orts and surveys as part of the Responsible Sourcing pro-
gram and the Conﬂ ict Minerals program.

The Group 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 framework for the assessments has been
aligned to ERM. It focuses on identifying the risk of harming people,
as a direct or indirect result of Electrolux Group operations.

Corruption poses a threat to sustainable economic and social
development around the world. Corruption could also have severe
negative impact for the Group by obstructing business growth,
increasing costs and imposing serious legal and reputational risks.
As it operates all around the world, including countries in emerging
markets, Electrolux Group 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 Group has zero
tolerance for corruption and works continuously to raise awareness
among employees in order 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. This
policy provides guidance to employees on how to do the right thing
and explains which actions constitute unlawful and inappropriate
behavior.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Employees can report ethical misconduct through a whistleblower
system. In 2023, 550 (478 1 ) reports were received, out of which
15 (12) reports in the area of business integrity were investigated.

Impacts throughout the value chain
Finally, a value chain perspective helps Electrolux Group 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 helps the com-
pany to understand how its actions and impacts are interrelated.
It identiﬁ es the degree of inﬂ uence throughout the value chain, and
the value created for the Group and the society. The following table
identiﬁ es the key sustainability risks and impacts throughout the
value chain, and how they are managed.

1) As of 2023, cases received but found to be outside the scope of the helpline are

no longer included.

7. End-of-life

1. Product
development

6. Consumer
use

5. Sales

2. Suppliers

3. Electrolux
Group
– operations

4. Transport

1. Product development
Close collaboration between Design, Marketing
and Product development 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 Group relies on thousands of ﬁ rst-tier
suppliers, many in emerging markets. The focus
is on safeguarding standards and developing
supplier capacity to improve their sustainability
performance.

The Group also requires all its suppliers to com-
ply with the Supplier Workplace Standard and the
Workplace Directive. These requirements are the
same as Electrolux Group 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 Group standards sup-
ports 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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Risks

How impacts are managed

Ability to inﬂ uence

Generating value

3. Electrolux Group operations
Electrolux Group has 34 factories world-wide and
sales in approximately 120 markets and approx-
imately 45,000 employees. The main focus areas
are to reduce the environmental footprint, main-
tain high ethical standards and working
conditions, and 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 Group 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 Group emits more carbon dioxide
transporting its goods than it emits through the
total energy used in its operations.

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

5. Sales
Electrolux Group sells in approximately 120 mar-
kets every year, primarily through retailers. Energy
and performance labeling, and sustainability
communication raise product eﬃ ciency aware-
ness 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 labor
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 Group carbon target. It also sup-
ports 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
Group and suppliers’ factories.

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Risks

How impacts are managed

Ability to inﬂ uence

Generating value

6. Consumer use
As the main environmental impacts of Electrolux
Group products occur when they are used, prod-
uct energy and water eﬃ ciency is a top priority.
Greater use of connected products in the

future will help optimize 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
introduced in an increasing number of markets.
On average, materials account for approximately
7% of a product’s life-cycle impact, and Electrolux
Group 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 carbon
dioxide 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 Group brand.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Climate risk disclosures

Governance

Strategy

Risk management

Disclose the
Electrolux
Group’s gover-
nance around
climate-
related risks and
opportunities.

Disclose the actual
and potential
impacts of climate-
related risks and
opportunities on
the business’s
strategy and
ﬁ nancial plan-
ning where such
information is
material.

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

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 report is based on the Task Force on Climate-related Financial
Disclosure (TCFD) recommendations. Assessments, ﬁ ndings and
conclusions in this Climate risk disclosure report replace earlier
ones. The purpose of the report is to assess how climate change
could aﬀ ect Electrolux Group in the long term, and the role the
Group 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 in the future. The main event in 2023 that had an
impact on this report was the 28th UN Climate Change Conference
of the Parties (COP28). The ﬁ nal COP28 pact called on countries to

transition away from fossil fuels speciﬁ cally for energy systems. This
includes limiting emissions and a new commitment to triple renew-
ables and energy eﬃ ciency by 2030. While there are uncertainties
on the timeframe for transitioning away from fossil fuels in the pact,
these actions can encourage societies to decarbonize, which would
also help to realize Electrolux Group’s scope 3 climate target.

The scenarios used for the assessment in this report 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 Group is committed to annu-
ally publish a climate report based on the TCFD recommendations
and the company plans to further develop its reporting going for-
ward, as climate science and more extensive analyses evolve. This
report is structured around the four TCFD elements describing how
organizations operate: governance, strategy, risk management,
and metrics and targets. All these elements are connected to
climate-related risks and opportunities.

Governance

During 2023, the Electrolux Group’s climate change strategy was
managed by Group Sustainability (GS) in close cooperation with
other Group functions and the business areas. From November 2023,
GS became part of the new Technology, Digital and Sustainability
(TDS) Group function. The scope of the function is to build consumer-
led, diﬀ erentiated experiences at competitive price points via a
platform approach to smartness/connectivity and sustainability, as
a core pillar of the Electrolux Group strategy. TDS is also responsible
for driving synergies and eﬃ ciencies through product development
excellence and cross product line scale. With this change, the
Head of GS role was merged into a function head role with the new
title Chief Technology and Sustainability Oﬃ cer, reporting to the
Electrolux Group CEO and being part of Group Management. Each
business area and function will own the execution of the sustain-
ability strategy. TDS will coordinate and ensure that objectives are
clearly communicated, and follow up on deliveries through regular
meetings and strong governance with all functions involved.

The Chief Technology and Sustainability Oﬃ cer has an annual
meeting with the Electrolux Group Board to report sustainability
progress and develop the strategic direction for sustainability work.

The Electrolux Sustainability Board, chaired by the CEO, is a Group

forum to raise sustainability topics and review the implementation
of the diﬀ erent sustainability programs. Other members of the Sus-
tainability Board are Group Management members and the General
Counsel. The CEO reports climate-related progress to the Electrolux
Group Board, which oversees the overall strategy.

Enterprise Risk Management (ERM) is the Group’s Framework
for risk management. ERM is led by ERM Board, which since 2023
includes all members of the Group Management team. ERM man-
ages, in compliance with the Loss Prevention Standard, among
others risks related to direct climate impacts and covers both iden-
tiﬁ ed and emerging risks, with a time-horizon of around three years.
Both physical and transitional climate risks are included in ERM
and the outcome is reported to the Sustainability Board and the
ERM Board.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Strategy

Climate change is a core element of the Electrolux Group sustain-
ability framework, which includes 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 products – from raw materials and manu-
facturing to product use and how Electrolux Group can contribute to
more sustainable living for consumers around the world.

For the Better 2030 includes the work with climate change and
its Climate Goals through the new and expanded science-based
climate target (see the illustration). Climate-related topics in the
sustainability strategy include the Goal “Drive 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 Group Annual Report 2023, Statutory Sus-

tainability Report, on page 58.

Electrolux Group new and expanded science-based climate target
The Group’s long-term ambition is to ensure that its entire value
chain achieves net-zero emissions by 2050. This supports the United
Nations Global Compact — Business Ambition for 1.5°C, which
Electrolux Group President and CEO Jonas Samuelson has signed.

Having achieved its 2025 science-based climate target to reduce
absolute emissions in operations by 80% (scope 1 and 2) and reduce
emissions in the use phase of sold products by 25% (scope 3) with
baseline 2015, three years ahead of plan, Electrolux Group got its
second science-based target approved in 2023. The new target
aims to reduce the emissions from its operations (scope 1 and 2)
by 85% and scope 3 emissions by 42%, broardering the scope of
absolute scope 3 emissions, which now include the use of sold prod-
ucts, materials, transport of products and business travel, between
2021 and 2030. In addition, the Group aims at achieving zero
emissions in operations by 2033.

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

Electrolux Group has set a new and expanded Science Based Target (SBT 2)
Carbon emission reduction targets

2015

Target achieved 2022

SBT 1

Scope 1 and 2

Scope 3

82%

>25%

2021

Goal 2025
80%

25%

SBT 2

Scope 1 and 2

Scope 3

Goal 2030
85%*

42%

Goal 2050

Net zero

*Compared to 2015 this corresponds to a reduction in scope 1 and 2 by 97%

SBT 1 (Base year 2015)
Scope 1, direct emissions, scope 2, indirect emissions, energy
Scope 3, other indirect emissions, including categories:
• Use of sold products

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.

Electrolux Group’s Green Financing Framework
The Green Financing Framework which is used to ﬁ nance or reﬁ nance
projects that support the Electrolux Group sustainability framework
— For the Better 2030. Examples of investments include investments
in R&D to improve the energy or water eﬃ ciency of appliances,
improving the eﬃ ciency of manufacturing processes, developing
recycled materials and increasing the use of energy from renewable
sources at Electrolux Group factories.

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 climate
target, within the long-term share-related incentive programs for
senior managers, was implemented in 2023, in addition to the pro-
grams in 2022, 2021 and 2020.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 Scenario1).

The climate implications in this scenario are based on the IPCC Scenario
RCP 4.5 and the IEA STEPS Scenario2).

1) See the Reporting Principles on page 57 for more technical detail on the Rapid Transition Scenario.
2) See the Reporting Principles on page 57 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 Group
operations

Transport

Sales

Consumer use

End-of-Life

Changing Climate Scenario

Examples of Electrolux Group’s climate-related collaborations
United for Eﬃ ciency (U4E)
– Electrolux Group 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 label-
ling systems to help facilitate a complete market transformation to
energy-eﬃ cient cooling appliances. Currently, only 70% of the use
phase emissions from products sold by the Group are covered by
product eﬃ ciency standards.

The Cool Coalition
– The Cool Coalition, where Electrolux Group participate, was ini-
tiated by UNEP with the objective to improve the energy eﬃ ciency
and to reduce the environmental impact of cooling appliances.

Logistics
In 2023, the Group continued dialogue with the logistics industry to
share best practice in transport management. Electrolux Group is
a member of the U.S. Environmental Protection Agency-led Smart-
Way and the Smart Freight Centre initiative with commitments to
decrease road and sea transport-related emissions respectively.

The Electrolux Group’s climate scenarios
The Group 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 Group uses have diﬀ erent levels of pro-
jected 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 Group value chain
The Rapid Transition and Changing Climate scenarios would both
have material impact on the entire value chain. However, their major
impacts on the value chain would diﬀ er slightly (see the illustration).

1) Electrolux Group 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 The Group
based on this forecast. The Electrolux Group report for 2023 has been updated based on the
IPCC report “AR6 Climate Change 2021: The Physical Science Basis”, presented in August 2021.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Climate risk management

Electrolux Group 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 throughout the value chain.

Enterprise Risk Management
The Electrolux Group Enterprise Risk Management (ERM) frame-
work enhances organizational resilience by proactively identifying,
assessing and mitigating risks that may signiﬁ cantly impact the
business. The Group follows a risk mapping model for the collection
and incorporation of risk information 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 46.

The Rapid Transition Scenario
As a sustainability leader in its industry, Electrolux Group 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
Group can play a role in meeting the need for energy eﬃ cient appli-
ances that help mitigate the impact of climate change.

Primary rapid transition risks
• Increased costs related to designing resource-eﬃ cient products
– Electrolux Group has product development roadmaps with the
objective to meet forthcoming energy labelling standards, such as
the new EU labelling standards and stricter minimum energy per-
formance standards (MEPS) that was fully implemented in 2023.
• Carbon taxes – The Group is well prepared to meet the risks
of higher carbon tax, in 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.

Opportunities
• Industrial shift to renewable energy – The Group is aiming for
and well on its way to zero emissions in operations by 2033
(scope 1 and 2 emissions). Based on the projections in a study by
Bloomberg New Energy Finance¹), Electrolux Group 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 a competitive advantage.
• Product eﬃ ciency – More stringent product legislation and
higher energy prices could drive the demand for energy eﬃ cient
Electrolux Group products in the market. The International Mone-
tary Fund (IMF)²) has concluded that a carbon tax of USD 75 per
metric ton of carbon dioxide would increase the average electric-
ity price across G20 countries by 43%.
• A growing market – The growing middle class3), 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 (from a carbon emissions perspective).4)
Electrolux Group can help meet this demand for clean and eﬃ cient
appliances.

The Changing Climate Scenario
In this scenario, it is important to adapt to a changing climate in
terms of more severe weather systems and greater chronic physical
risks from changing climate conditions. Electrolux Group 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 Group to continue to create long-term shareholder value.

Primary acute and chronic physical risks
• Electrolux Group operations – Recent internal assessments have
not concluded that the Group factories have signiﬁ cant risks
related to greater acute and chronic physical risks due to more
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 Group suppliers – Signiﬁ cant risks exist among suppliers,
although ﬂ exibility in the Group’s supply chain, which can 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 Group
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 Group 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 cooking appliances (from a carbon emissions perspective).4)
Electrolux Group can help meet this demand for clean and eﬃ cient
appliances.

Future development
The Group will continue to develop its climate scenario analyses
and assess the potential impacts on its operations. Future develop-
ment includes to:
• Enhance climate risk understanding for speciﬁ c factory locations.
• Further develop the Group’s climate transition plan.

1) According to a third-party study discussed in International Monetary Fund (2019). Fiscal Monitor,

How to Mitigate Climate Change page 21.

2) According to a third-party study discussed in International Monetary Fund (2019). Fiscal Monitor,

How to Mitigate Climate Change page 9.

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

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

4) IEA, Sustainable recovery: buildings, https://www.iea.org/reports/sustainable-recovery/buildings

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Metrics and Targets

Electrolux Group has comprehensive reporting systems that include
various metrics and targets to assess and manage relevant climate-
related risks and opportunities.
2030 section on page 59.

Read more in the For the Better

The Group annually responds to the CDP Climate questionnaire
and the CDP Water questionnaire. Electrolux Group also reports
in accordance with the GRI Standards.

The following climate related KPIs are reported in the separate

Sustainability Report:
• Energy consumption within the Group
• Direct and Indirect carbon dioxide emissions, including fugitive
emissions
• Greenhouse gas emissions intensity in metric tons carbon dioxide
per million SEK
• Reduction of GHG emissions
• Emissions of ozone-depleting substances
• Science-based climate target results (scope 1, 2, and 3)
• Electrolux Group CDP report (www.cdp.net)

Details on the overall climate performance are found on page 58
detailed performance is reported in the

in the Annual Report and
standalone Electrolux Group Sustainability Report 2023.

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

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 Group 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 uncertain-
ties 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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Statutory Sustainability Report

Electrolux Group is a global leader in household
appliances and sustainability is an integral part of
the business model. This section presents the Group’s
sustainability work and its progress in 2023.

Global megatrends
Electrolux Group’s long-term strategy is based on key industry
trends that pose challenges for its business – as well as enormous
opportunities.

Electrolux Group 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 Group places the consumer
at the heart of everything it does. Through the company’s brands,
including Electrolux, AEG and Frigidaire, products are sold in approx-
imately 120 markets every year. In 2023, Electrolux Group had sales of
SEK 134 bn and employed approximately 45,000 people around the
world. For more information, visit www.electroluxgroup.com.

Business model and sustainable development
To achieve the purpose – Shape living for the better – and improve
proﬁ tability and enable proﬁ table growth, Electrolux Group uses a
business model that focuses on creating outstanding branded life-
time consumer experiences in Taste, Care and Wellbeing. The objec-
tive is to create a steady stream of consumer-relevant innovations
under well-established brands in key experience areas. By creating
desirable solutions and great experiences that enrich peoples’ daily
lives and the health of the planet. The Group 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.
The Group has long recognized its impact on the environment

and in society. Sustainability is a key part of its strategy, integrated in
everything the Group does, as the company recognizes the growing
importance of sustainability performance. This includes the impact
of Electrolux Group business operations and products on the planet
and in society.

Electrolux Group is continuously making progress on sustainability

and is acknowledged as a sustainability leader in the household
durables industry.

Consumer power
Greater consumer awareness and access to information increasingly
empower consumers. Consumers are increasingly choosing brands
with a purpose that they feel matches their own values.

Implications for Electrolux Group:
• Greater consumer empowerment and awareness requires trans-
parency and sustainable business practices.
• Ongoing need to improve the environmental performance of prod-
ucts to meet consumer demands.

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

Implications for Electrolux Group:
• Digitalization will drive the next wave of operational eﬃ ciency,
including closer integration with suppliers.
• Connectivity oﬀ ers opportunities for circular business models that
result in better resource eﬃ ciency.
• Internet of Things (IoT) enables a lifelong relationship between
producers and consumers but requires high standards of data
security and privacy.

Sustainability
Consumers and authorities are increasing the demands on man-
ufacturers to develop and oﬀ er more sustainable products. This
includes products and business models that are more resource
eﬃ cient and circular.

Implications for Electrolux Group:
• Continued need to improve the environmental performance of
products.
• Pressure to reduce water consumption in areas with water scarcity.
• Growing importance of circular solutions.
• Expectations to go beyond chemical legislation.

Global demographic trends
Population growth, the growing middle class, an aging population
and urbanization — are increasing the demand for home appliances.
By 2030, the global middle class is expected to increase by 1.3 billion
people compared with 20231). Globalization and the growth of
generation Z are leading to an increased focus on inequality in the
world.

Implications for Electrolux Group:
• Signiﬁ cant growth potential in emerging markets.
• Growing importance of older consumer groups and the increasing
number of smaller households.
• Potential for new business models, e.g. shared ownership.
• Growing focus on the fair treatment of employees.

Resource and planetary boundaries
Humans are causing irreversible damage to the planet’s fragile
systems and there is an urgent need to reduce greenhouse gas
emissions and adapt to a changing climate. Business must work
within planetary boundaries by developing circular business
models that promote resource eﬃ ciency.

Implications for Electrolux Group:
• Continued need to improve the environmental performance
of products.
• Pressure to reduce water consumption in areas with water scarcity.
• Growing importance of the circular economy.
• Expectations to go beyond chemical legislation.

1) European Commission - Supporting policy with scientiﬁ c evidence. https://knowledge4policy.

ec.europa.eu/growing-consumerism_en

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Average Carbon dioxide impact during the lifetime of appliances1)

For the Better 2030

Scope 1 & 2: 0.2%
Scope 3: Purchased goods

and services, 10%

Scope 3: Upstream transport

and distribution, 1%

Scope 3: Business Travel, 0.02%
Scope 3: Use of sold

products, 86%

Scope 3: Other, 2.8%

The product life cycle
perspective guides how
to best reduce climate
impacts. The greatest car-
bon emission impacts in
the Electrolux Group value
chain occur from energy
consumption when prod-
ucts are used. See page
54 for more details on the
company’s Climate Goals.

1) The graph is based on the Group’s total carbon dioxide impact in 2021 which was used for setting

it’s second Science Based climate Target.

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

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.

The Group 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.

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

For the Better 2030

Better Company

Better Solutions

Better Living

Drive resource-eﬃ cient
operations

Lead in energy and
resource-eﬃ cient
solutions

Make healthy and
sustainable eating the
preferred choice

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

Climate Goals

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

Operational resource eﬃ ciency
Index

120
120
100
100
80
80
60
60
40
40
20
20
0
0

Water consumption
Energy consumption
Carbon dioxide emissions

Year

Better Company
Electrolux Group 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.

Drive resource-eﬃ cient operations
Electrolux Group will continue to reduce its environmental footprint
by shifting to renewable energy and optimizing energy use and
other resources throughout its operations. The Group is in the ﬁ nal
phase of the SEK 8 bn re-engineering investment program, which is
focusing on the modularization and automation in select production
facilities in Europe and the Americas. These investments will drive
resource-eﬃ cient operations.

The new climate target aims to reduce scope 1 and 2 emissions by

85% by 2030 compared with 2021. With this new target, the Group
would achieve a 97% carbon emissions reduction in scope 1 and 2
by 2030 compared with 2015.

In 2023, the Group’s scope 1 and 2 greenhouse gas emissions
from its operations were reduced by 33% compared to 2021, and
85% compared to 2015. Some 60% (59) of the total energy used
in Electrolux Group operations came from renewable sources. In
addition, the Group has its own on-site solar photovoltaic systems in
seven countries.

Electrolux Group was recognized for its sustainability leadership
with a score of “A “for Climate change by the global non-proﬁ t CDP
in 2023.

Act ethically, lead in diversity and respect human rights
Electrolux Group strives to earn the trust of everyone impacted by
its operations, demonstrating its commitment to ethics, diversity and
human rights through its words and actions. This includes working to
ensure the health and safety of employees and promoting societal
beneﬁ t through community investment activities. The Group noted
a Total Case Injury Rate (TCIR) of 0.34 (0.36) per 100 employees in
2023, which compares favorably to other companies in the industry.
During the year, safety actions included the completion of pedres-
tian segregation from forklifts in assembly areas across all sites. A
digital ergonomic evaluation tool was tested at multiples sites with
the aim of enhancing ergonomic assessment capacity and speed.
in 2023, 550 (478) 2) ethics cases were reported through the Ethics
Helpline. 502 (453) of these cases led to further investigation
whereas 48 (25) lacked suﬃ cient detail to allow investigation. By the
end of the year, 457 of the 502 cases were concluded and closed.
There were 15 (12) cases of breaches of business integrity reported
and investigated, including allegations related to corruption, fraud,
theft, internal control and anti-trust.

2) As of 2023, cases received but found to be outside the scope of the helpline are no longer

included here.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

In the area of human rights during 2023, the Group focused on fur-
ther developing its processes and action plans for human rights in its
operations and supply chain to meet coming legislation.

parts of the business, promoting circularity training and awareness
raising among employees, and partnering with suppliers and other
innovative partners.

Drive supply chain sustainability
Electrolux Group takes its sustainability leadership agenda into the
supply chain by assuring that suppliers comply with the Group’s
high expectations, no matter where they are located. Suppliers are
encouraged and supported to make the transition to more sustain-
able practices. The Group continued to work with suppliers in 2023
to improve their sustainability performance through its Responsible
Sourcing Program and the auditing of their operations.

In 2023, 369 (306) supplier audits were conducted, including 142

(111) that were conducted virtually. A total of 115 (90) audits were
made by third-party auditors. Electrolux Group 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 emissions
throughout its supply chain by 2050.

Better Solutions
Electrolux Group will continuously improve the energy and water
performance of its appliances, raising the bar for product eﬃ ciency
around the world.

Lead in energy and resource-eﬃ cient solutions
Tackling climate change by reducing greenhouse gas emissions is
one of the most urgent global challenges facing society. As product
energy use is responsible for approximately 85% of Electrolux
Group’s climate impact, product energy eﬃ ciency is where it can
make the greatest contribution to tackling climate change. The
Group continued to roll out new resource-eﬃ cient products in 2023
that enable consumers to live more sustainably in terms of energy
and water eﬃ ciency. In 2023, the Group’s most eﬃ cient products
represented 29% of products sold but 38% of gross proﬁ t.

Oﬀ er circular products and business solutions
The aim is to contribute to the circular economy by integrating recy-
cled materials into product platforms, promoting recyclability, using
more sustainable packaging solutions, increasing the availability of
spare parts to repair the Group’s products, and developing circular
business solutions. During 2023, the Group continued to incorporate
more recycled materials into its products and develop its circular
business models. Electrolux Group is in the process of re-calibrating
its approach to circularity by reassessing its priorities in diﬀ erent

Eliminate harmful materials
Electrolux Group will protect people and the environment by manag-
ing chemicals carefully and continuing to replace those that cause
concern. The Group continues to implement its common process
for chemical management. New scientiﬁ c ﬁ ndings and stakeholder
requirements are used to update the Group’s Restricted Materials List.
The Group is working to expand the use of its Eco@web tool, which
is a tool to register and monitor the substances in the components
and parts used in its products. In 2023, Electrolux Group continued its
work to avoid the use of harmful substances in its products.

Better Living
Electrolux Group uses its global reach and presence to drive and
contribute 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 Group will promote sustainable eating by helping consum-
ers to reduce food waste, adopt more plant-based diets, minimize
nutrition loss in cooking, and enhance healthy and sustainable eating
experiences. Electrolux Group products can help consumers to eat
healthier and more sustainably. This includes nudging consumers to
try healthier and more sustainable diets and cooking techniques that
help preserve nutrients, while reducing food waste. By adopting
more plant-based diets and avoiding overeating, for example, con-
sumers can improve their health while reducing the burden on the
planet and global food system. The Group launched a new gen-
eration of hoods with motor technology that reduces energy con-
sumption by up to 48%. The hoods use Autosense technology that
automatically adjusts the extractor fan speed for optimized air quality
in the home.

Make clothes last twice as long with half the environmental impact
The Group 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 Group can promote more sustainable garment care. The
Group continued to deliver new solutions and raise consumer aware-
ness to promote better garment care. Electrolux Group innovates to
help consumers to adopt more sustainable laundry behavior. This

includes enabling them to take better care of their clothes — to make
them last longer while reducing environmental impact. In 2023, the
Group also developed software to optimize the energy use in several
laundry ranges to be better than the best energy class in Europe. This
includes improved capabilities to adjust the cycle parameters based
on the actual load, with tailored drum movements and the minimal
use of resources. These machines are part of the Electrolux and AEG
EcoLine range. The ColourCare system that treats the water to opti-
mize the detergent even at low temperatures, helping retain color
and shape for longer and reducing energy use by 30% compared
with A energy class in Europe, is featured in several of the Group’s
washing machines sold in 2023.

Make the home a healthier place to thrive in,
with half the carbon footprint
By leveraging adaptive technologies, new business models and
inspiration for smarter consumer habits, Electrolux Group aims to
spearhead solutions by 2030 that contribute to healthier homes with
half the carbon footprint. By fast-tracking the rollout of these solu-
tions in all markets, the Group will enable more people to sustainably
beneﬁ t from comfortable temperatures as well as cleaner air, water
and surfaces. In 2023, the Group focused on reﬁ ning its wellbeing
product development roadmaps to better reﬂ ect its sustainability
priorities. This involved bringing together a broad cross-functional
team to map all relevant sustainability attributes and use this to build
a detailed checklist that will ensure sustainability is an integral part
of all product development projects going forward.

In 2023, Electrolux UltimateHome 500 2-in-1 air puriﬁ er promoted

good air quality and humidity. The product is made primarily from
recycled plastics and in line with the Group’s Design for Wellbeing
strategy. It is molded in color to avoid the need to use surface paint
on any of its color variants.

The Electrolux Ultimate 700 & AEG Ultimate 7000 cordless vacuum

cleaners feature a removable and replaceable battery and an
upgraded motor to improve product longevity. The product, which is
the lightest ever Electrolux Group vacuum cleaner, is ergonomically
balanced and easy to maneuver. The product uses 60-70% recycled
plastic, depending on model and region.

The Ultimate 800 & 8000 series products oﬀ er a sealed ﬁ ltration
system to remove up to 99.9% of particles (between 0.3 µm–10 µm in
size) from the home environment.

All the above products won Red Dot design awards in 2023.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 Group 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 Group Sustainability Board, led by the CEO, is
tasked with assessing priorities, monitoring progress and evaluat-
ing risks. The Sustainability Board proposes actions and targets to
Group Management and will be essential in achieving Electrolux
Group sustainability targets.

Electrolux Group 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 and global Product Line 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 Opera-
tions, 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
During 2023, the Electrolux Group’s climate change strategy was
managed by Group Sustainability (GS) in close cooperation with
other Group functions and the business areas. As of November 1,
2023, GS became part of the new Technology, Digital and Sustain-
ability (TDS) Group function. The scope of the function is to build
consumer-led, diﬀ erentiated experiences at competitive price points
via a platform approach to smartness/connectivity and sustain-
ability, as a core pillar of the Electrolux Group strategy. TDS is also
responsible for driving synergies and eﬃ ciencies through product
development excellence and cross product line scale. With this
change, the Head of GS role was merged into a function head role
with the new title Chief Technology and Sustainability Oﬃ cer, who
reports directly to the Electrolux Group CEO and is part of Group
Management. Each business area and function will own the exe-
cution of the sustainability strategy, and TDS will coordinate and
ensure that objectives are clearly communicated and will follow up
on deliveries through regular meetings and strong governance with
all functions involved.

The Chief Technology and Sustainability Oﬃ cer has an annual
meeting with the Electrolux Group Board to report sustainability
progress and develop the company’s strategic direction for sustain-
ability work going forward.

The Electrolux Group 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 Sus-
tainability Board are Group Management members and the General

Counsel. The CEO reports climate-related progress to the Electrolux
Group Board, which oversees the overall company strategy.

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 Group has a rela-
tively large environmental impact – including energy consumption,
and the use of materials and chemicals. Generally, the most signif-
icant impacts occur during a product’s use phase, and the Group’s
strategy is to improve product environmental performance.

The Electrolux Group Environmental Policy outlines how the Group

aims to improve environmental performance in production and
product use, as well as how to design products for proper disposal.
Requirements on the Group’s operations and in the supply chain are
described in the Workplace Directive. All Electrolux Group 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 Group 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 Group has processes in place to mitigate
these risks, including ISO management systems, internal audits, a
Responsible Sourcing program, and targets in the product develop-
ment plans. The Group’s programs to reduce operational resource
consumption and to introduce more recycled materials in products
reduce costs.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Electrolux Group 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 Group 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 solar
energy at Electrolux Group’s factories.

Read more about the Electrolux Group 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 Group 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 Group 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 campaigns.
The Group’s human rights commitment is further detailed through a
Human Rights Directive. The Workplace Policy, the Supplier Work-
place Standard and the Workplace Directive contain mandatory
requirements relating to labor rights, health, safety and environment
within both Electrolux Group and its suppliers. Electrolux Group
continues to drive a company culture based on ethics, integrity and
respect by providing leadership that demonstrates and nurtures
inclusion and accountability.

Electrolux Group monitors performance and manages risks
through internal and external audits of 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
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 Group 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 and three business pro-
cesses constitute the Group’s salient human rights issues. The meth-
odology for the assessments focuses on identifying the risk of harming
people, as a direct or indirect result of Electrolux Group 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 Group 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 Group has zero tolerance for corruption and works con-
tinuously 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 inap-
propriate behavior.

Employees can report ethical misconduct through the Electrolux

Group’s whistle-blower system.

Group-wide e-learning courses on anti-corruption are provided.
These initiatives complement the tailored training that certain func-
tions such as sales, procurement and senior management 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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

EU Taxonomy Report

Introduction
This is the EU Taxonomy report by Electrolux Group, which is prepared
in accordance with the EU Taxonomy regulation.

As a global appliance company, Electrolux Group 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 for appliances but rather funda-
mental 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 (“taxonomy eligible activities”) and
the activities that qualify as environmentally sustainable (“aligned
economic activities”), by meeting the EU Taxonomy’s technical
screening criteria. For the Group’s products to be deemed “aligned”
with the screening criteria, activities must comply with certain EU
speciﬁ c standards (EU Regulation 2017/1369).

This year, additional taxonomy objectives were added to the
EU Taxonomy reporting requirements. Thus, the content and format
of this report will develop over time and in parallel with the progress
of the EU Taxonomy framework and its applicability.

Overview of KPIs for 2023

Taxonomy-aligned activities

Taxonomy-eligible but not aligned activities

Total taxonomy-eligible activities

Taxonomy-non-eligible activities

Electrolux Group

Turnover

CapEx

OpEx

mSEK

Share in %

mSEK

Share in %

mSEK

Share in %

6,587

90,590

97,178

37,273

134,451

100

381

3,546

3,927

1,772

5,699

100

416

3,558

3,975

1,424

5,399

100

technical screening criteria for taxonomy alignment. The following
products will act as numerators in the report’s tables:
• household appliances (washing machines, washer dryers, tumble
dryers, dishwashers, refrigerators/freezers, ovens)
• cooling and ventilation systems (hoods and air conditioners)
that are sold by the Group under its own brands.

Reporting on Key Performance Indicators
According to the EU Taxonomy framework, Electrolux Group is
considered to be a manufacturer of “energy eﬃ ciency equipment
for buildings” and “electrical and electronic equipment”. The ﬁ rst one
is related to the Climate change mitigation (CCM) and the second
to the Circular economy (CE) objectives. The Group’s current under-
standing of these two objectives’ reporting criteria is that they will be
based on the same eligible product categories.
The CCM technical screening criteria to assess the Group’s relevant
products as “aligned economic activities” or not is based on the EU
framework for the energy labelling of appliances and air conditioners
(under the “EU Labelling Framework”).1

This screening criteria further stipulate that only products that
are within “the highest two populated classes of energy eﬃ ciency”,
in accordance with EU Regulation 2017/1369, can be considered
as aligned economic activities.

Based on the above and for future comparability, Electrolux Group

only includes in this report products that could meet the applicable-

Increased scope of eligible activities this year
In its previous EU Taxonomy reports, Electrolux Group reported on
its economic activities in the EU market.2) The reason was that only
economic activities in the EU market could meet the applicable
screening criteria as EU Taxonomy aligned (see previous section).
This year, Electrolux Group has, however, expanded its reporting
scope to include both (a) the above-mentioned products sold in all
its markets, in which energy eﬃ cient standards exist and (b) economic
activities under the circular economy objective. This increased scope
is due to both further clariﬁ cations by the EU and additional EU Tax-
onomy objectives.

The increased scope only impacts the reporting of “taxonomy
eligible activities” but not what is considered “aligned economic
activities”. None of the products sold in non-EU markets will meet
the EU Taxonomy screening criteria for alignment. This is because
such criteria are based on EU-speciﬁ c energy eﬃ ciency standards,
which are not compatible with applicable energy eﬃ cient standards
or legislation for products sold in non-EU markets.

1) Regulation (EU) 2017/1369 of the European Parliament and of the Council of July 4, 2017.
.2) The European Union member states.

Comment on year over year development of alignment
The reporting of aligned economic activities for the Climate mitigation
objective shows that between 2022 and 2023:
• Turnover increased due to better product mix from increased
sales of the Group’s more eﬃ cient products. This development
was mainly driven by sales of frontloaded washing machines.
• CapEx and OpEx remained relatively ﬂ at compared to last year.
However, if only considering the EU market in relation to CapEx,
it increased due to investments in this region.

It shall be noted that the reporting of Turnover, CapEx and OpEx
for aligned economic activities in relation to the Circular economy
objective will be reported starting year 2024.

Electrolux Group 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 aligned economic
activities. A top priority is to bring more eﬃ cient products to consum-
ers. For instance, the Group is currently investing in the refrigeration
lines in the Italian Susegana factory.

The long-term ambition of the Group is to ensure that its entire
value chain is net-zero by 2050. To achieve this, improving product
eﬃ ciency is fundamental as carbon emissions result mainly from the
consumption of energy coming from non-renewable sources during
the product use phase.

Since 1997, Electrolux Group has internally tracked the most
resource eﬃ cient products sold, and each year the criteria have
become more stringent.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Turnover1)

Financial year 2023

2023

Substantial contribution criteria

DNSH criteria (Does Not Signiﬁ cantly Harm)

Economic activities

Code2,3)

Proportion
of Turnover,
year 2023

Turn-
over

Climate
change
mitiga-
tion

Climate
change
adapta-
tion

%; Y; N; N/

Water Pollution

Circular
economy

Bio-
diversity

Climate
change
mitigation

Climate
change
adaptation

Water Pollution

Circular
economy

Bio-
diversity

Minimum
safeguards

Proportion of
Taxonomy
aligned (A.1)
or eligible (A.2)
turnover,
year 2022

Category
(enabling
activity)

Category
( transitional
activity)

mSEK

EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

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

Manufacture of energy eﬃ cient equipment
for buildings/ Manufacture of electrical and
electronic equipment

CCM3.5
/CE1.2

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

6,587

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)

N/EL

–

N/EL

–

Manufacture of energy eﬃ cient equipment
for buildings/ Manufacture of electrical and
electronic equipment

CCM3.5
/CE1.2

90,590

675)

N/EL

EL;
N/EL

Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)

A. Turnover of Taxonomy-eligible activities
(A.1+A.2)4)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible
activities

TOTAL

675)

725)

90,590

97,178

37,273

134,451

675)

725)

100

1) Turnover is the proportion of net turnover that is derived from products or services, which equals Electrolux Group total Net Sales.

See the Consolidated statement of comprehensive income on page 70.

2) EU economic activity code.

3) Climate Change Mitigation: CCM — Climate Change Adaptation: CCA — Water and Marine Resources: WTR — Circular Economy: CE — Pollution

Prevention and Control: PPC — Biodiversity and ecosystems: BIO.

4) Eligible economic activities are those that have technical screening criteria to formally permit such activities to potentially being deemed as aligned

economic activity within the 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.

5) Electrolux Group has deemed that the eligible activities in this report should go beyond the EU market which was the previous scope for 2021

and 2022.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

CapEx1)

Financial year 2023

2023

Substantial contribution criteria

DNSH criteria (Does Not Signiﬁ cantly Harm)

Economic activities

Code2,3)

Turn-
over

Proportion
of CapEx,
year 2023

Climate
change
mitiga-
tion

Climate
change
adapta-
tion

%; Y; N; N/

Water Pollution

Circular
economy

Bio-
diversity

Climate
change
mitigation

Climate
change
adaptation

Water Pollution

Circular
economy

Bio-
diversity

Minimum
safeguards

Proportion of
Taxonomy
aligned (A.1)
or eligible (A.2)
turnover,
year 2022

Category
(enabling
activity)

Category
( transitional
activity)

mSEK

EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

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

Manufacture of energy eﬃ cient equipment
for buildings /Manufacture of electrical
and electronic equipment

CCM3.5
/CE1.2

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

381

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)

N/EL

–

N/EL

–

Manufacture of energy eﬃ cient equipment
for buildings /Manufacture of electrical
and electronic equipment

CCM3.5
/CE1.2

3,546

622)

N/EL

EL;
N/EL

CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)

A. CapEx of Taxonomy-eligible activities
(A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy-non-eligible activities

TOTAL

622)

692)

3,546

3,927

1,772

5,699

622)

692)

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.

CapEx refers to Electrolux Group’s investments in assets used to manufacture these products regardless of where they are located.
Goodwill is excluded. For CapEx and OpEx an allocation key has been used based on the turnover split between aligned and non-aligned products.
For CapEx and OpEx an allocation key has been used based on the turnover split between aligned and non-aligned products.

2) Electrolux Group has deemed that the eligible activities in this report should go beyond the EU market which was the previous scope for 2021

and 2022.

3) EU economic activity code.

4) Climate Change Mitigation: CCM — Climate Change Adaptation: CCA — Water and Marine Resources: WTR — Circular Economy:

CE — Pollution Prevention and Control: PPC — Biodiversity and ecosystems: BIO.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

OpEx1)

Financial year 2023

2023

Substantial contribution criteria

DNSH criteria (Does Not Signiﬁ cantly Harm)

Economic activities

Code2,3)

Turn-
over

Proportion
of OpEx,
year 2023

Climate
change
mitiga-
tion

Climate
change
adapta-
tion

Water Pollution

Circular
economy

Bio-
diversity

Climate
change
mitigation

Climate
change
adaptation

Water Pollution

Circular
economy

Bio-
diversity

Minimum
safeguards

Proportion of
Taxonomy
aligned (A.1)
or eligible (A.2)
turnover,
year 2022

Category
(enabling
activity)

Category
( transitional
activity)

mSEK

% %; Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

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

Manufacture of energy eﬃ cient equipment
for buildings /Manufacture of electrical
and electronic equipment

CCM3.5
/CE1.2

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

416

Of which Enabling

Of which Transitional

A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)

N/EL

–

N/EL

–

Manufacture of energy eﬃ cient equipment
for buildings /Manufacture of electrical
and electronic equipment

CCM3.5

/CE1.2 3,558

662)

N/EL

EL;
N/EL

OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)

A. Turnover of Taxonomy-eligible activities
(A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities

TOTAL

662)

742)

3,558

3,975

1,424

5,399

662)

742)

100

1) Operating expenditure (OpEx) in this table, include only expenses associated with research and development and maintenance.

Other categories of operating expenditure as deﬁ ned within the EU Taxonomy framework are deemed non-material and thus not included.

2) ÅElectrolux Group has deemed that the eligible activities in this report should go beyond the EU market which was the previous scope for 2021
and 2022.

3) EU economic activity code.

4) Climate Change Mitigation: CCM — Climate Change Adaptation: CCA — Water and Marine Resources: WTR — Circular Economy:

CE — Pollution Prevention and Control: PPC — Biodiversity and ecosystems: BIO.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Turnover

CapEx

OpEx

Proportion of turnover / Total turnover

Proportion of CapEx/ Total CapEx

Proportion of OpEx / Total OpEx

CCM

CCA

WTR

PPC

BIO

Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

N/A

CCM

CCA

WTR

PPC

BIO

Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

N/A

CCM

CCA

WTR

PPC

BIO

Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

N/A

Only CCM and CE objectives are applicable for Electrolux
Group currently. No testing for CE alignment for 2023.

Excluded activities
As most of Electrolux Group’s products (approximately 70%) are sold
outside the EU market, such products are, by the Group, deemed not
to be in the scope of the EU framework regulation for energy label-
ling and will therefore not be directly compatible with the technical
screening criteria for EU Taxonomy alignment. Thus, although most
of the Group’s products sold outside of the EU market are included
in the eligibility calculation, they are not included in the calculation
for EU Taxonomy alignment (see further sections Reporting on Key
Performance Indicators and Increased scope of eligible activities
this year).

In addition, private brand products, produced by Electrolux
Group to third parties based on such third parties’ speciﬁ cations,
are not included in this report. Lastly, several product categories sold
by the Group, including vacuum cleaners and small appliances are
not included in any energy regulation framework and thus, are not
assessed in this report as either taxonomy eligible or aligned.
Read more in the Better Solutions section on page 60.

Minimum safeguards
Electrolux Group 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 Group that it
adheres to the Minimum safeguards.1)

Certain Electrolux Group processes and procedures related to
four core areas, which are relevant for adherence to the Minimum
safeguards, are further outlined below.

The Group assesses that adequate processes are in place in such
core areas, both to capture legal actions taken towards the com-
pany, its subsidiaries and senior management. It also works 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.

Human rights
Electrolux Group 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 62.

Corruption
Electrolux Group has zero tolerance for corruption and works con-
tinuously 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 62.

Taxation
One important aspect of the Electrolux Group company purpose
– Shape living for the better – is to act as a good corporate citizen
and taxpayer wherever Electrolux Group operates.
information, please see the Corporate Governance Report, section
“Electrolux Group as a taxpayer”, on page 24.

For more

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 Group’s Enterprise Risk Management (ERM) frame-
work and related processes identify, mitigate, communicate and
report risks that can signiﬁ cantly aﬀ ect the business – including
climate change. Electrolux Group follows a risk mapping process
for the collection and incorporation of risk information into decision
making and governance 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. The
Group has assessed two diﬀ erent climate scenarios that result in var-
ious risks and opportunities for Electrolux Group throughout its value
chain.

Read more in the Risk Management section, on page 46.

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

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

1) As deﬁ ned in Articles 3 and 18 of European Union Regulation (EU) 2020/852.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Nuclear and fossil gas related activities

Row

Nuclear energy related activities

The undertaking carries out, funds or has exposures to
research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy
from nuclear processes with minimal waste from the fuel cycle. NO

The undertaking carries out, funds or has exposures to con-
struction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes
of district heating or industrial processes such as hydrogen pro-
duction, as well as their safety upgrades, using best available
technologies.

The undertaking carries out, funds or has exposures to safe
operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.

Row

Fossil gas related activities

The undertaking carries out, funds or has exposures to
construction or operation of electricity generation facilities
that produce electricity using fossil gaseous fuels.

The undertaking carries out, funds or has exposures to con-
struction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels.

The undertaking carries out, funds or has exposures
to construction, refurbishment and operation of heat genera-
tion facilities that produce heat/cool using fossil gaseous fuels. NO

Pollution
In the EU, the Group complies with all relevant regulations related
to substances in products through the Electrolux Group 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 the Group’s products where there
is no technical alternative currently available. All European manufac-
turing sites have environmental permits to meet local environmental
legislation requirements. This includes controlling pollution.

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

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 Group and sustain-

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

Sustainability reporting and information
The Electrolux Group sustainability routines and systems for infor-
mation 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.

This report also highlights how the Group’s priorities reﬂ ect its

commitment to the ten principles of the UN Global Compact. Unless
otherwise indicated, sustainability disclosures include all operations
that contributed to Group performance for the calendar year 2023.
Sustainability information is shared regularly in the form of:
• Electrolux Group Sustainability Report, including the United
Nations Guiding Principles Reporting Framework
• Electrolux Group 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 Change and Water Security
• Reports, policies and press releases are available at
www.electroluxgroup.com.

Stockholm, February 19, 2024

AB Electrolux (publ)
Board of Directors

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 2023 on pages 49-50, 58-68
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.

Stockholm February 21, 2024

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.

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 12 Property, plant and equipment, owned

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

expenses

Note 26 Acquired and divested operations

Note 7 Material proﬁ t or loss items in

Note 27 Employees and remuneration

operating income

Note 8 Leases

Note 9 Financial income and

ﬁ nancial expenses

Note 10 Taxes

Note 11 Other comprehensive income

Note 28 Fees to auditors

Note 29 Shares and participations

Note 30 Transactions with related parties

Note 31 Proposed distribution of earnings

Auditor’s report

103

104

105

108

109

110

111

All amounts in SEKm unless otherwise stated.

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Consolidated statement of comprehensive income

2023

2022

SEKm

Note

2023

2022

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

Note

3, 4

5, 7

134,451

134,880

Income for the period attributable to:

–117,316

–117,177

Equity holders of the Parent Company

17,135

17,703

Non–controlling interests

Total

5, 7

6, 7, 29

–13,362

–6,977

217

3, 8

–2,988

388

–2,511

–2,123

–5,111

–12,997

–5,752

830

–215

–1,545

–1,457

–1,672

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:

-116

352

Diluted, SEK

–5,227

–1,320

Basic, SEK

-5,227

–1,320

-0

-5,227

–1,320

-5,295

2,567

-0

-5,295

2,568

-19.36

–4.81

270.0

272.7

274.7

278.0

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

11, 18

Other comprehensive income, net of tax

Total comprehensive income for the period

304

-57

246

-35

-301

-314

-68

-5,295

1,614

–411

1,204

2,643

2,684

3,887

2,568

Average number of shares1)

Basic, million

Diluted, million

1) Average numbers of shares excluding shares held by Electrolux.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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, 2023 December 31, 2022

SEKm

Note December 31, 2023 December 31, 2022

17, 18

28,730

4,337

6,579

5,377

8,268

263

1,514

1,610

56,699

19,965

22,247

1,180

167

4,297

167

15,331

63,354

120,053

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

EQUITY AND LIABILITIES

Equity attributable to equity holders of
the Parent Company

Share capital

Other paid-in capital

Other reserves

Retained earnings

Equity attributable to equity holders of
the Parent Company

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

–966

7,784

11,268

11,274

28,800

3,494

574

2,184

4,785

39,839

36,402

1,657

15,989

7,388

1,191

368

5,944

68,940

108,779

120,053

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Changes in consolidated equity

SEKm

Share capital

Other paid-in capital

Other reserves

Retained earnings

Total Non-controling interests

Total equity

Attributable to equity holders of the Parent Company

Opening balance, January 1, 2022

1,545

2,905

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

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

Total transactions with equity holders

Closing balance, December 31, 2023

For more information on share capital, number of shares and earnings per share, see Note 20.

—

129

–129

—

1,545

—

2,905

—

1,545

2,905

–3,335

—

2,644

—

2,684

—

–651

—

-35

-230

—

-50

-314

—

-966

17,489

–1,320

—

1,614

–411

1,203

–117

–72

–2,521

–129

129

–2,138

–4,729

12,644

-5,227

—

304

-57

246

-4,980

120

—

120

7,784

18,604

–1,320

2,644

1,614

–411

3,887

2,567

–72

–2,521

—

–2,138

–4,729

16,443

-5,227

-35

-230

304

-107

-68

-5,295

120

—

120

11,268

—

–0

—

18,610

–1,320

2,644

1,614

–411

3,887

2,568

–72

–2,521

—

–2,138

–4,729

16,449

-5,227

-35

-230

304

-107

-68

-5,295

120

11,274

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Consolidated cash ﬂ ow statement

Note

2023

2022

SEKm

Note

2023

2022

Financing

–215

Change in short-term investments

8, 12, 13

–2,988

6,277

3,535

–2,039

–1,380

5,390

1,670

–1,238

–1,514

Change in short-term borrowings

New long-term borrowings

Amortization of long-term borrowings

Payment of lease liabilities

Dividend

Repurchase of shares

Share-based payments

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

–2,527

4,691

–2,622

-1,111

—

-1,550

-1,905

17,559

-323

15,331

–4

5,355

22,244

–6,158

–960

–2,521

–2,138

–217

15,601

6,365

10,923

271

17,559

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

3,406

4,093

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

Cash ﬂ ow from operations and investments

3,459

– 1,543

–1,108

–211

597

4,003

–1,556

4,074

–4,026

–4,859

–6,367

–2,274

—

–367

–4,069

–5,649

–602

–1,028

1,341

–4,358

–355

–740

–1,001

795

–6,962

–9,236

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 1,053m (1,222). Liquid funds at the end of the period
amounted to SEK 9,969m, compared to SEK 12,899m at the start of
the year. Undistributed earnings in the Parent Company at the end
of the period amounted to SEK 5,735m, compared to SEK 9,353m
at the start of the year. Dividend payment to shareholders for 2022
amounted to SEK 0m. 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

Note December 31, 2023 December 31, 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

2023

2022

40,302

42,063

–37,507

–37,873

4,190

–3,320

–2,470

–1,860

–3,460

3,920

–1,073

2,847

–613

–60

–673

437

–236

2022

–236

2,795

–3,645

–3,601

-340

-4,791

2,572

–2,603

-31

-4,822

202

-4,620

894

-3,726

2023

-3,726

-2

SEKm

ASSETS

Non–current assets

Intangible assets

Property, plant and
equipment

Deferred tax assets

Financial assets

Total non–current assets

–1

Current assets

Inventories

Receivables from
subsidiaries

Trade receivables

Total comprehensive income for the period

-3,638

–219

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 2023
amounted to SEK 40,302m (42,063) of which SEK 33,292m (34,865)
referred to sales to Group companies and SEK 7,010m (7,198) to external
customers. Income after ﬁ nancial items was SEK -4,822m (-613), includ-
ing dividends from subsidiaries amounting to SEK 730m (3,167). Income
for the period amounted to SEK -3,726m (-236).

Derivatives

Other receivables

Prepaid expenses and
accrued income

Cash and bank

Total current assets

Total assets

3,087

293

1,870

37,503

42,753

3,363

18,700

595

200

163

182

503

9,969

33,675

76,428

SEKm

Note December 31, 2023 December 31, 2022

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

2,923

267

824

37,175

41,189

3,688

Total non–current liabilities

Current liabilities

17,622

Payable to subsidiaries

677

273

270

494

12,899

36,019

77,208

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

2,351

6,913

9,461

-3,726

5,735

12,648

565

479

3,148

3,627

25,765

3,005

28,868

22,140

1,927

414

4,467

281

1,430

30,720

63,215

76,428

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Parent Company change in equity

Restricted equity

Non-restricted equity

SEKm

Share capital

Statutory
reserve

Development
reserve

Fair value
reserve

Opening balance, January 1, 2022

1,545

3,017

1,551

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

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

Total transactions with equity holders

Closing balance, December 31, 2023
.

—

129

–129

—

1,545

—

3,017

—

1,545

3,017

—

700

—

700

2,251

—

100

2,351

—

–1

—

-2

—

113

Retained
earnings

14,995

–236

Total equity

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

-3,726

—

-2

-3,726

-3,638

120

-100

120

5,622

12,648

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

2023

2022

-4,822
699
504
120
99
-151

–613
549
1,821
–72
22
–79

-3,551

1,628

325
82
-3,180
12
1,268
-1,493
-5,044

–312
579
–6,317
173
88
–5,789
–4,161

-691
-933

–1,535
–1,119

-120
22
-1,722

–103
–360
–3,117

-6,766

–7,278

-11
4,266
4,555
-5,064
0
—
0
3,746
-3,020
12,899

4,885
–1,342
22,255
–7,680
–2,521
—
–2,138
13,459
6,181
6,705

90
9,969

13
12,899

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 Corporate 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 19, 2024. The balance sheets and income
statements are subject to approval by the Annual General Meeting
of shareholders on March 27, 2024.

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.

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 132 (133) companies with

176 (189) 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.

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

2023

2022

Exchange rate

Average

End of period

Average

End of period

ARS

AUD

BRL

CAD

CHF

CLP

CNY

EUR

GBP

HUF

MXN

THB

USD

0.0404

0.0124

0.0785

0.0589

7.03

2.12

7.85

11.78

0.0126

1.50

11.46

13.17

0.0300

0.5978

0.3044

10.59

6.82

2.07

7.58

11.98

0.0114

1.41

11.10

12.77

0.0290

0.5926

0.2922

10.04

7.00

1.95

7.73

10.59

0.0116

1.50

10.63

12.45

0.0272

0.5028

0.2881

10.09

7.09

2.00

7.70

11.29

0.0121

1.51

11.12

12.54

0.0277

0.5333

0.3019

10.43

New or amended accounting standards applied in 2023
The following new accounting standard and amended accounting
standards were applicable from January 1, 2023: IFRS 17 Insurance
contracts and amendments to this new standard; amendments to
IAS 12 Income taxes: ‘International Tax Reform – Pillar Two Model
Rules’; and ‘Deferred Tax related to Assets and Liabilities arising from
a Single Transaction’; IAS 1 Presentation of Financial Statements and
‘IFRS Practice Statement 2: Disclosure of Accounting policies’; and
IAS 8 Accounting policies, Changes in Accounting Estimates and
Errors: ‘Deﬁ nition of Accounting Estimates’. The new accounting
standard and the amendments listed above did not have any mate-
rial impact on Electrolux ﬁ nancial statements.

New or amended accounting standards to be applied after 2023
The following amendments to accounting standards are applicable
from January 1, 2024: IAS 1 Presentation of Financial Statements:
‘Classiﬁ cation of Liabilities as Current or Non-current’; IFRS 16
Leases: ‘Lease Liability in a Sale and Leaseback’. The amendments
have not been early adopted by Electrolux.

The following amendments to accounting standards have been
published but not yet endorsed by the EU: IAS 21 ‘The Eﬀ ects of
Changes in Foreign Exchange Rates’, IAS 7 ‘Statements of Cash
Flows’ and IFRS 7 ‘Financial Instruments: Disclosures’. The amend-
ments listed above are not expected to have a material impact on
Electrolux ﬁ nancial statements in the current or future reporting peri-
ods or on foreseeable future transactions
.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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.
The carrying amount of property, plant and equipment at year-end
2023 amounted to SEK 28,730m. The carrying amount for goodwill at
year-end 2023 amounted to SEK 6,579m.

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, 2023, Electrolux had a net amount of SEK 7,694m

recognized as deferred tax assets in excess of deferred tax liabilities.
As of December 31, 2023, the Group had tax loss carry-forwards and
other deductible temporary diﬀ erences of SEK 6,610m, 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 2023, trade receivables, net of provisions for

expected credit losses, amounted to SEK 22,247m. The total provi-
sion for expected credit losses at year-end 2023 was SEK 363m.

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 2023 was 3.66% 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 2023 was
SEK 3,712m.

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, 2023, Electrolux had a provision for warranty commit-
ments amounting to SEK 2,278m.

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.

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-

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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. For product development and software the
useful life is on average 3 to 5 years.

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.

Board of Directors approved updates to the limits and mandates in
the Financial Policy.

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 several ﬁ nancial risks:
• 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. In March 2023, to ensure ﬁ nancial
ﬂ exibility and to align with the capital structure of the Group, the

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 the ﬁ nancial risks by
using derivatives to hedge 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 10%
of annualized net sales, at year-end 2023 this level was 25.6% (24.9).
In addition, net liquid funds deﬁ ned as liquid funds less short-term
borrowings shall exceed zero, taking into account ﬂ uctuations arising
from acquisitions, divestments, and seasonal variations. At year-end
2023 the Group had net liquid funds of SEK 7,744m (8,724), 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 2023 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 152m (171). For
more information, see Note 18.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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 managed 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 inter-
est 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 -2m (5) during 2023. At
the end of 2023 long-term interest-bearing borrowings had an aver-
age interest ﬁ xing period of 2.3 years (2.3), a one percentage point
shift in interest rates would impact the Group’s interest expenses by
approximately SEK +/–124m (162) and the other comprehensive income
by approximately SEK +/-37m (1). This calculation is based on a par-
allel shift of all yield curves simultaneously by one percentage point.
Electrolux acknowledges that the calculation is an approximation
and does not take into consideration the fact that the interest rates on
diﬀ erent maturities and diﬀ erent currencies might change diﬀ erently.

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, 2023, the
Group’s capital amounted to SEK 11,274m (16,449). 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 credit rating within a safe margin from a non-investment
grade. During 2023, S&P Global Ratings downgraded the Group's
credit rating from A- to BBB, with stable outlook as shown in table
below.

Credit Rating

Long-term
debt

S&P Global Ratings

BBB

Outlook

Stable

Short-term
debt

Short-term
debt, Nordic

A–2

K–2

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 shareholders,
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 8,000m of the long-term borrowings may mature
during a 6-month period.

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. 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 also hedge
forecasted ﬂ ows. For those derivatives Electrolux practice hedge
accounting, which has aﬀ ected other comprehensive income by
SEK -33m (34) during 2023.

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 using
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.

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 exposures and
hedging, see Note 18.

Translation exposure from consolidation of entities outside
Sweden
Changes in exchange rates also aﬀ ect the Group in connection
with translation of income statements and balance sheet 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 deﬁ cit currencies that Electrolux is exposed to are the
U.S. dollar, the Chinese renminbi and the euro. The major net surplus
currencies that Electrolux is exposed to are the British pound, the
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 +/– 4m (320), as a static calculation. The
model assumes the distribution of earnings and costs eﬀ ective at
year-end 2023 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

CAD/SEK

BRL/SEK

CHF/SEK

AUD/SEK

GBP/SEK

THB/SEK

MXN/SEK

CNY/SEK

EUR/SEK

USD/SEK

Change

Proﬁ t or loss impact
2023

Proﬁ t or loss impact
2022

–10%

–441

–423

–316

–308

–290

132

144

149

555

1,567

–442

–378

–330

–457

–279

132

102

169

752

1,881

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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 Par-
ent Company. There were no outstanding net investment hedges at
year-end 2023.

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 +/– 2,847m (3,197), as a static calculation at
year-end 2023.

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 +/– 1,200m (1,300)
and in plastics with approximately SEK +/– 500m (600), based on
volumes in 2023.

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 credit rating of at least
A-, 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, 2023

Interest and currency risk
derivatives reported as assets

Interest and currency risk
derivatives reported as liabilities

December 31, 2022

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

167

-133

80%

368

–133

235

36%

–91

92%

578

–91

486

16%

Group Treasury manages a majority of the subsidiary ﬁ nancing
through internal loans from the Parent Company, resulting in a
material credit risk. The Parent Company calculates 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 2023 amounted to SEK 69m (74) primarily originating from inter-
nal loans to Argentina. The closing expected credit loss provision in
the Parent Company amounted to SEK 81m (69). ECL provision for
loans made to companies with a minority shareholding amounted
to SEK 7m (6).

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, independent stores and direct
to consumers. 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 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 assessment, 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 inconsistencies 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 Information; 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 8.3% (9.6) of total trade receiv-
ables at any time during the year. For more information, see Note 17.
The Group reports expected credit losses and applies the simpli-
ﬁ ed approach for trade receivables and uses a matrix to estimate
the expected credit losses. 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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

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

2023

2022

2023

2022

2023

2022

30,784 32,041
27,490 30,229
18,141
18,358

27,001 26,273
15,896 18,375
9,417
10,517

3,783 5,768
11,593 11,854
7,841 8,724

11,902
14,149

13,821
12,722

6,431
5,338

7,451
5,141

5,471 6,370
7,581
8,811

102,684 106,953
17,800

15,669

65,184 66,657 37,500 40,297
—

—

185

—

—
—

— 36,725 37,813
4,685 4,264
—

1,514
—
120,053

2,164
—

1,919
2,184
11,274 16,449
127,102 120,053 127,102

—

—
—

—
—
—

—

—
—

—
—
—

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.

All amounts in SEKm unless otherwise stated

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.

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East
and Africa

Group Common costs

Total

Net sales

Operating income

2023

2022

2023

45,349 46,573

-1,602

2022

683

45,072

47,021

–2,341

–2,394

28,920 24,303

1,624

1,058

15,109

16,984

134,451 134,880

—

460

-1,858

-1,129

134,451 134,880

-2,988

1,308

655

–870

–215

Financial items, net

Income after ﬁ nancial items

—

-2,123

–1,457

-5,111

–1,672

Inter-segment sales exist with the following split:

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Eliminations

2023

1,763

429

2,100

4,292

2022

1,904

500

1,917

4,321

Depreciation and
amortization

Capital
expenditure

Cash ﬂ ow1)

2023

2022

2023

2022

2023

2022

2,108
2,242
805

1,787
1,934
617

2,491
1,292
699

3,310
1,738
979

893 –2,776
-381 –2,365
-585
2,516

757
366

682
371

651
566

850
512

934
-898

214
–603

—

-367

—
—

—
—
6,277 5,390

—
—
5,699

— -2,039 -1,238
-1,514
— -1,380
-353 -9,236

7,389

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.

Geographical information

USA

Brazil

Germany

Australia

Canada

Switzerland

United Kingdom

Sweden (country of domicile)

Italy

France

Other

Total

Net sales1)

2023

2022

40,644 42,242

20,682

6,008

5,322

4,687

4,398

4,227

3,682

3,615

3,537

16,812

6,076

5,961

5,117

4,025

4,289

3,621

3,257

3,922

37,649 39,558

134,451 134,880

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 5,615m (5,287). Tangible and
non-tangible ﬁ xed assets located in all other countries amounted to
SEK 39,408m (40,799). Individually material countries in this aspect
are USA with SEK 12,094m (12,673), Italy with SEK 6,988m (6,977) and
Poland with SEK 3,975m (3,768) respectively.

No single customer of the Group represents 10% or more of the

external revenue.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 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. Revenues arise from sales of ﬁ nished products
and services.

Sales are recorded net of value-added tax, speciﬁ c sales taxes,

returns, and trade discounts.

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.

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.

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 liability

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.

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.

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
practice, 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.

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
recognized 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
product 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 war-
ranty 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 bun-
dled together and revenue is recognized over the warranty period.

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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 134,451m (134,880)
during the year consisted of product sales. Revenue from service
activities amounted to SEK 2,406m (2,240). The Group’s net sales
in Sweden amounted to SEK 3,682m (3,621). Exports from Sweden
during the year amounted to SEK 39,129m (41,307), of which SEK
35,098m (37,124) 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
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
attributes 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
product area Taste (cooking, refrigeration and freezer appliances),
Care (dish and laundry appliances) and Wellbeing (e.g. air con-
ditioners, cleaning appliances and small domestic appliances).
Products within all product areas are sold in each of the reportable
segments, i.e. the business areas, as presented in the graph to the right.

Revenue per product area

Business area revenue per product area

Disaggregation of revenue

2023

2022

2023

2022

Group

Parent Company

Product Areas

Taste

Care

Wellbeing

Total

84,061 85,895

20,889

22,871

39,984

38,661

10,406

10,324

17,108

2,305

16,625

2,567

134,451 134,880

40,302 42,063

100

2023

2022

2023

2022

2023

2022

2023

2022

Europe

North America

Latin America

Asia-Paciﬁc,
Middle East
and Africa

Taste

Care

Wellbeing

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, 2022

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

Gross increase during the period

Paid to/settled with customer

Revenue recognized during the year

Contracts cancelled during the year

Other changes to contract balances

Exchange-rate diﬀ erences

Closing balance, December 31, 2023

Advances from
customers

Customer bonuses/
incentives

Short-term

Long-term

Prepaid income – service & warranty

164

546

—

–517

—

–10

–14

170

456

—

-497

—

-13

117

7,106

22,332

–22,300

—

–337

–277

–126

693

7,091

21,283

-20,792

—

-756

-42

6,836

218

175

—

–3221)

–22

—

-37

-3

358

—

–2431)

—

–16

181

—

-1

—

-9

—

188

Total

7,846

23,112

–22,300

–1,082

–359

–287

–151

737

7,516

21,796

-20,792

-535

-759

-55

7,215

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 316m (275).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Note 7 Material proﬁ t or loss items in operating income

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

Direct material and components

Sourced products

Depreciation and amortization

Salaries, other renumeration and employer
contribution

Other operating expenses

Total

2023

2022

56,160

50,828

16,703

18,033

6,277

5,390

24,300

23,818

33,999

37,026

137,439 135,095

Operating expenses
Cost of goods sold includes direct material and components
amounting to SEK 56,160m (50,828) and sourced products amount-
ing to SEK 16,703m (18,033). The depreciation and amortization
charge for the year amounted to SEK 6,277m (5,390). Costs for
research and development amounted to SEK 4,400m (4,291).

Government grants relating to expenses have been deducted

in the related expenses by SEK 136m (65).

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 2023, amounted to SEK 17m (484).
The Group’s operating income includes net exchange-rate

Other operating income

2023

2022

2023

2022

Group

Parent Company

Gain on sale of property,
plant and equipment

Settlement arbitration U.S.
tariﬀ case
Pensions plan amendment

Recovery of overpaid sales tax

Asbestos litigation
Reversal of environmental
provision
Government grants
Other

Total

793

726

—

75
17

—

74
58
48

656

—
58

—
—
15

1,065

1,514

Other operating expenses

Russia divestment

US pension plan termination

Loss on sale of property,
plant and equipment

Fine to Competition Authority
Asbestos litigation

Impairment

Other

Total

Group

2023

—

-90

-647
-25

—

-86

2022

–350

–210

–37

—
—

—

—
—

—

—
—
—

—

—
—

—

—
—
—

—

Parent Company

2023

—

—
—

2022

–250

—

—
—

diﬀ erences in the amount of SEK –1,063m (–388). The Group’s Swed-
ish factories accounted for 0.1% (0.1) of the total value of production.

Other operating income
and expenses, net

217

830

-340

–1,860

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.

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
• Material items in 2023 amount to SEK -3,401m and contain divest-
ment of two factories, a legal antitrust case and a group-wide cost
reduction and North America turnaround program.

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 proﬁ t or loss items

Restructuring charge

2023

2022

–3,314

–1,536

Divestment of factories in Hungary and U.S.

556

Oﬃ ce sale, Switzerland

-340

–1,610

Arbitration/settlement U.S. tariﬀ case

–87

—

Russia divestment

-848

–684

-340

–1,860

U.S. pension plan termination

French antitrust case

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

—

394

656

–350

–210

—

–643

–3,401

–1,046

2023

–1,988

–192

–1,134

-87

2022

–863

–67

–547

431

–3,401

–1,046

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 8 Leases

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
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.

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 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 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 trans-
ferred 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
commencement 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.

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

Short-term leases

Leases of low-value assets

Variable lease payments

Depreciation of right-of-use assets

Group

2023

2022

-7

-20

–196

-1,162

–11

–36

–195

–997

Total lease expenses in operating income

–1,385

–1,239

Lease liability interest expense

–183

–143

Total cash outﬂ ow for lease contracts amounts to SEK 1,517m (1,345)
for the year. The calculated average lease interest rate for the year
was 4.0% (3.8). Lease commitments related to leases not yet com-
menced per December 31 amount to SEK 416m (73).

Maturity proﬁ le of lease liabilities is presented in Note 18.
For the Parent Company, lease expenses for the year amounted
to SEK 50m (64) and future lease payment obligations at year end
amount to SEK 282m (269). The most relevant lease agreement for
the Parent company during 2023 was IT equipment..

Property, plant and equipment, right-of-use

Group

Land Buildings Machinery

Other
equipment

Total

Carrying amount

Opening balance,
January 1, 2022

Acquisition of
operations

Additions

Cancellations

Depreciation

Other changes

Exchange rate
diﬀ erences

Closing balance,
December 31, 2022

Acquisition of
operations

Additions

Cancellations

Depreciation

Exchange rate
diﬀ erences

2,293

439

2,771

3,405

467

3,906

—

–1

—

–1

—

1,582

–17

–752

299

—

1,044

-29

-844

-80

—

1,819

–27

–997

—

232

–10

–12

–232

340

—

–17

-2

—

616

–13

—

1,728

-42

–299

-1,162

-12

-94

758

4,337

Closing balance,
December 31, 2023

3,495

Assets and liabilities arising from a lease are initially measured on

Lease expenses:

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

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

Group

Parent Company

2023

2022

2023

2022

—

388

—

388

—

1,636

204

730

723

3,167

—

2,572

3,920

Current taxes

Deferred taxes

Taxes in income for the
period

Taxes related to OCI

Taxes included in total
comprehensive income

Group

Parent Company

2023

2022

-1,099

–1,028

2023

-151

983

1,380

1,045

-116

-36

352

–409

894

2022

–79

516

437

–1

-152

–57

894

436

Deferred taxes 2023 include an eﬀ ect of SEK 0.1m (14) due to
changes in tax rates. The consolidated accounts include deferred
tax liabilities of SEK 116m (138) related to untaxed reserves in the
Parent Company.

Theoretical and actual tax rates

Group

Parent Company

—

-944

–1,833

–586

-1,434

–183

–143

-37

–241

–201

—

-17

For the Group in 2023, the majority of ‘Other changes in recognition
of deferred tax’ relate to a write-down of tax credits carry forward
in the U.S.

The theoretical tax rate for the Group is calculated on the basis

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, 2023, the Group had tax loss carry-forwards
and other deductible temporary diﬀ erences of SEK 6,610m (4,401),
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

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

2023

19.6

2022

19.6

2023

20.6

2022

20.6

as follows:

5.4

–2.7

0.8

39.3

-2.6

–4.4

0.3

1.2

-20.9

-3.4

-0.7

-2.3

7.3

–5.4

5.4

21.0

—

1.3

-3.3

—

19.3

—

17.9

–11.7

–1.2

64.9

Non-recognized temporary diﬀ erences

2023

2024

2025

2026

2027

2028

And thereafter

Without time limit

Total

Group

December 31

2023

2022

n/a

441

214

752

141

e/t

5,034

6,610

4,026

4,401

Other ﬁ nancial expenses

–500

–843

-208

–665

Total

–2,511

–1,545

-2,603

–1,073

Financial items, net

–2,123

–1,457

-31

2,847

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 392m (71),
interest and similar items paid amounted to SEK –2,349m (–1,206)
and other ﬁ nancial items received and paid amounted to
SEK –82m (–103).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

Note:

9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Deferred tax assets and liabilities,
net opening balance

Recognized in income statement

Recognized in other comprehensive income

Acquisitions of operations

Exchange rate diﬀ erences

Deferred tax assets and liabilities, net closing
balance

Group

2023

2022

6,940

983

–57

—

-172

5,269

1,380

–411

—

702

7,694

6,940

As per December 31, the Parent Company reported deferred tax
assets amounting to SEK 1,869m (824) which mainly relate to unused
tax losses carried forward, restructuring provisions and pensions.

The group is within the scope of the OECD Pillar Two model rules.

Pillar Two legislation was enacted in Sweden, the jurisdiction in
which the Parent Company is incorporated, and is eﬀ ective as of
January 1, 2024. Since the Pillar Two legislation was not eﬀ ective at
the reporting date, the group has no related current tax exposure.
The group applies the exception to recognizing and disclosing
information about deferred tax assets and liabilities related to Pillar
Two income taxes, as provided in the amendments to IAS 12 issued
in May 2023. Under the legislation, the group is liable to pay a
top-up tax for the diﬀ erence between its GloBE eﬀ ective tax rate per
jurisdiction and the 15% minimum rate. The Group does not expect
material top-up tax costs, if any.

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, owned

Property, plant and equipment, right-of-use

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, owned

Property, plant and equipment, right-of-use

Other provisions

Inventories

Other deferred tax liabilities

Deferred tax liabilities before netting of
deferred tax assets and liabilities

Netting of deferred tax assets and liabilities

Deferred tax liabilities, net

Group

2023

2022

465

754

223

735

812

131

411

2,045

2,317

2,190

374

653

334

466

888

107

616

994

3,650

2,262

10,082

10,342

–1,814

8,268

–2,670

7,672

543

678

592

541

952

588

622

1,176

2,388

3,402

–1,814

–2,670

574

731

Deferred tax assets and liabilities, net

7,694

6,940

Note 11 Other comprehensive income

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

Remeasurement of provisions for
post-employment beneﬁ ts

Opening balance, January 1

Group

2023

2022

3,537

2,333

Gain/loss taken to other comprehensive income

304

1,614

Income tax relating to items that will not be
reclassiﬁ ed

Closing balance, December 31

–57

–410

3,783

3,537

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

-2

-33

-16

–21

–660 –3,303

–72

-230

–961

–41

2,684

–660

–10

–11

–7

–10

Other comprehensive income, net of tax

-68

3,887

Income taxes aﬀ ecting other comprehensive income during the year
amounted to a total of SEK –36m (-409) of which SEK –57m (–410)
related to remeasurement of provisions for post-employment beneﬁ ts
and SEK 22m (1) related to ﬁ nancial instruments for hedging.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 3m
(6) on buildings and land, and SEK 248m (19) on
machinery and other equipment and SEK 10m (—)
on plants under construction. The impairment 2023
relates to business areas Asia-Paciﬁ c, Middle East
and Africa, Europe and North America and 2022
to business areas Europe and North America.

Group

Acquisition costs
Opening balance, January 1, 2022
Acquired during the year
Divestment of operations
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Acquired during the year
Divestment of operations
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2023

Accumulated depreciation
Opening balance, January 1, 2022
Depreciation for the year
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Divestment of operations
Impairment
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Depreciation for the year
Transfers and reclassiﬁ cations
Sales, scrapping, etc.
Divestment of operations
Impairment
Exchange-rate diﬀ erences
Closing balance, December 31, 2023
Net carrying amount, December 31, 2022
Net carrying amount, December 31, 2023

Land
and land
improve-
ments

Machinery
and
technical
installations

Plants under
construc-
tion and
advances

Other
equipment

Buildings

Total

Parent Company

Land
and land
improve-
ments

Machinery
and
technical
installations

Plants under
construc-
tion and
advances

Other
equipment

Buildings

Acquisition costs
Opening balance, January 1, 2022
Acquired during the year
Transfer of work in progress and advances
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Acquired during the year
Transfer of work in progress and advances
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2023

Accumulated depreciation
Opening balance, January 1, 2022
Depreciation for the year
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Depreciation for the year
Sales, scrapping, etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2023
Net carrying amount, December 31, 2022
Net carrying amount, December 31, 2023

1
—
—
—
—
1
—
—
—
—
1

1
—
—
—
1
—
—
—
1
0
0

1
4
—
—
—
5
—
—
—
—
5

1
—
—
—
1
1
—
—
2
4
3

308
6
85
–20
8
387
3
38
—
—
428

183
80
–14
8
257
76
—
—
333
130
95

455
23
—
–23
6
461
4
2
-80
—
387

368
25
–23
5
375
17
-80
—
312
86
75

61
70
–85
—
1
47
113
-40
—
—
120

0
—
—
—
0
—
—
—
0
47
120

2,700
5
0
11
–100
176
2,792
4
—
43
-267
0
2,572

398
34
1
0
–1
0
43
476
36
31
-150
—
0
7
400
2,317
2,172

13,931
317
–1
533
–194
1,426
16,012
319
—
884
-1,648
65
15,632

6,614
541
–2
–167
—
6
706
7,699
629
-31
-1,090
—
3
25
7,235
8,314
8,397

40,555
968
0
3,160
–2,136
4,794
47,342
828
—
2,788
-3,365
-570
47,023

30,829
2,551
–168
–1,912
—
19
3,584
34,903
2,889
0
-3,349
—
244
-364
34,323
12,438
12,700

3,282
259
–4
198
–286
283
3,733
227
—
210
-259
-58
3,853

2,545
355
6
–259
-14
0
217
2,849
395
0
-242
—
4
-44
2,962
883
891

5,712
4,100
0
–3,912
–6
583
6,478
2,691
—
-3,959
-109
-22
5,079

374
—
162
—
—
0
18
554
—
—
-8
—
10
-47
509
5,924
4,570

66,181
5,649
–5
-10
–2,721
7,262
76,356
4,069
—
-34
-5,648
-585
74,158

40,759
3,481
-1
–2,337
–15
25
4,568
46,480
3,949
0
-4,839
—
261
-423
45,428
29,876
28,730

Total

826
103
0
–43
15
901
120
0
-80
—
941

553
105
–37
13
634
94
-80
—
648
267
293

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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, 2023, had a total carrying value
of SEK 6,579m. 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 2023 were within a range of
11.3% (10.6) to 18.1% (16.0). 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 9.3 to 16.1%.

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

2023

2022

Goodwill

Electrolux
trademark

Discount

rate, % Goodwill

Electrolux
trademark

Discount
rate, %

Europe

North America

Latin America

Asia-Paciﬁ c,
Middle East
and Africa

Total

530

1,788

927

3,334

6,579

—

410

—

410

11.3

12.4

18.1

14.8

531

1,857

1,008

3,685

7,081

—

410

—

410

10.6

11.5

16.0

11.9

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Goodwill and other intangible assets

Acquisition costs
Opening balance, January 1, 2022
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
Acquired during the year
Acquisition of operations
Internally developed
Reclassiﬁ cation
Fully amortized
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2023

Accumulated amortization
Opening balance, January 1, 2022

Amortization for the year
Reclassiﬁ cation
Fully amortized
Impairment
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2022
Amortization for the year
Reclassiﬁ cation
Fully amortized
Impairment
Sales, scrapping etc.
Exchange-rate diﬀ erences
Closing balance, December 31, 2023
Carrying amount, December 31, 2022
Carrying amount, December 31, 2023

Goodwill

Product
development

Software

Other

Total other
intangible assets

Trademarks,
software, etc.

Group
Other intangible assets

Parent Company

6,690
—
–101)
—
—
—
—
401
7,081
—
—
—
—
—
—
-502
6,579

—
—
—
—
—
—
0
—
—
—
—
—
—
0
7,081
6,579

2,981
—
—
740
–1
–76
–111
394
3,927
—
—
602
-107
-49
-25
-52
4,296

1,385

390
—
–76
–58
–48
178
1,771
487
—
-49
—
-24
-27
2,158
2,156
2,138

3,335
409
—
592
7
–353
–56
341
4,275
480
—
548
142
-45
-20
-137
5,243

1,688

466
1
–353
—
–49
174
1,927
628
0
-45
181
-9
-32
2,650
2,348
2,593

2,216
—
—
—
—
—
–7
77
2,286
—
—
—
0
0
0
-140
2,146

1,459

56
—
—
—
—
52
1,567
53
0
0
—
0
-120
1,500
719
646

8,532
409
0
1,332
6
–429
–174
812
10,488
480
—
1,150
35
-94
-45
-329
11,685

4,532

912
1
–429
–58
–97
404
5,265
1,168
0
-94
181
-33
-179
6,308
5,223
5,377

4,191
—
—
1,119
—
–126
–67
182
5,299
—
—
933
—
—
—
-7
6,225

1,990

444
—
–126
—
–14
82
2,376
605
—
—
170
—
-13
3,138
2,923
3,087

1) Including adjustment of provisional value within the measurement period related to acquisition with a value of SEK -10m for 2021.

Included in the item Other are trademarks of SEK 518m (554) and
customer relationships etc. amounting to SEK 128m (165). Amortiza-
tion of intangible assets is included within Cost of goods sold with
SEK 577m (412), Administrative expenses with SEK 327m (297) and
Selling expenses with SEK 264m (203) in the income statement. Total
net impairment for the year was SEK 181m (-) on software and relates
to business area Europe.

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

2023

2022

2023

2022

—

1,610

904

34,075 33,727

3,338

3,359

37,503

37,175

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Note 16 Other current assets

Group
December 31

Parent Company
December 31

2023

2022

2023

2022

Raw materials

Products in progress

Finished products

Advances to suppliers

Total

4,877

7,023

344

369

—

VAT receivable

Other tax recoverable

14,740

16,962

3,363

3,688

Miscellaneous short-term receivables

—

Provisions for doubtful accounts

19,965

24,374

3,363

3,688

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. 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 obsoles-
cence are included in the value for inventory.

The cost of inventories recognized as expense and included in
Cost of goods sold amounted to SEK 102,295m (90,219) for the Group
and SEK 37,507m (37,873) for the Parent Company.

Write-downs due to obsolescence amounted to SEK 165m (352)

for the Group and SEK 0m (75) for the Parent Company.

Reversals of previous write-downs, due to inventories either
scrapped or sold, amounted to SEK 149m (42) for the Group and
SEK 43m (0) for the Parent Company.

The amounts have been included in the item Cost of goods sold

in the income statements.

Group
December 31

2023

947

370

1,705

-72

1,330

2022

1,692

254

1,905

–113

1,339

4,297

5,098

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 reassess-
ment. 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 2023, the loss allowance on trade
receivables would have increased/decreased SEK 0.6m (0.7). If
trade receivables past due between 61 and 180 days had been 10%
higher/lower as of December 2023, the loss allowance on trade
receivables would have increased/decreased SEK 4.3m (6.5).

Provision for accounts receivable

Provision, January 1

New/released provisions

Receivables written oﬀ
against provision

Sold operations

Exchange-rate diﬀ erences
and other changes

Provision, December 31

Group

Parent Company

2023

-493

-173

297

2022

–466

–93

114

-363

–49

–493

2023

2022

-17

—

-4

–9

–8

—

–17

New /released provisions of SEK -173m (-93) are mainly due to
increased provisions for higher credit risk in Latin America 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 42.6% (40.4)
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

Group

Parent Company

Trade receivables

Provision for expected
credit losses

2023

2022

22,610

21,980

-363

–493

Trade receivables, net

22,247

21,487

2023

599

-4

595

2022

694

–17

677

Provisions in relation to trade
receivables, %

1.6

2.2

0.7

2.4

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 forward 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 protec-
tion. The Group’s internal guidelines to the companies is to at least
reserve 0.11 % for current trade receivables and for receivables max-
imum 15 days past due. For trade receivables past due between 16

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

2023

2022

2023

2022

21,037

19,269

507

637

1,210

2,218

512

456

199

598

783

518

275

363

493

694

Total trade receivables

22,610

21,980

599

Past due, in relation to trade
receivables, %

7.0

12.3

15.4

8.2

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
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.

Financial assets
The Group classiﬁ es its ﬁ nancial assets in the following measurement
categories:
• Fair value through proﬁ t or loss (FVPL); or
• Amortized cost.

The classiﬁ cation requirements for debt 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.

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.

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.

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
remeasured 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).

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Net debt
At year-end 2023, the Group’s ﬁ nancial net debt amounted to SEK
20,871m (19,828). 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

2023

2022

2,864

4,476

5,732

2,605

7,388

8,377

253

445

285

254

7,925

9,076

28,800 28,738

36,725

37,813

185

15,331

17,559

167

155

168

15,669

17,800

20,871

19,828

4,685

4,264

670

–245

26,226 23,848

17,096

16,622

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)

Net liquidity

Fixed interest term, days

Eﬀ ective yield, % (average per annum)

1) Liquid funds in relation to annualized net sales, page 121 for deﬁ nition.

December 31

2023

2022

15,331

17,559

167

155

168

15,669

17,800

25.6

24.9

7,744

8,724

3.0

0.8

For 2023, liquid funds, including unused committed revolving credit
facilities amounted to 25.6% (24.9) of annualized net sales, well
above the Financial Policy target of 10%. Net liquidity is calculated
by deducting short-term borrowings from liquid funds. Unused
committed revolving credit facilities as per December 31, 2023
consists of, multi-currency sustainability linked facility of EUR 1,000m
(1,000), maturing 2028, SEK 3,000m (2,500), maturing 2025, and SEK
3,000m (3,000), maturing 2025.

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 2023, SEK 2,622m (6,158) of long-term borrowings matured
or were amortized. These maturities were partly reﬁ nanced to the
amount of SEK 4,691m (22,244).

At year-end 2023, the Group’s total interest-bearing liabilities
amounted to SEK 36,140m (37,075), of which SEK 33,276m (31,343)
referred to long-term borrowings including maturities within 12 months.
Long-term borrowings with maturities within 12 months amounted
to SEK 4,476m (2,605). 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 33,236m (31,277), is raised at Parent Company
level. Electrolux also has unused committed revolving credit facilities
of SEK 17,096m (16,622) (details stated above under “Liquid funds”).
Electrolux expects to meet any future requirements for short-term
borrowings through bilateral bank facilities and capital market
programs such as commercial paper programs.

At year-end 2023, the average interest ﬁ xing period for long-term
borrowings was 2.3 years (2.3). 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 4.4% (3.4) at year-end.
The fair value of the interest-bearing borrowings was SEK 32,620m
(32,409). The fair value including swap transactions used to manage
the interest ﬁ xing was approximately SEK 32,685m (32,662).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Changes in liabilities arising from ﬁ nancing

2023

Long-term borrowings (including short-term part of long-term)

Short-term borrowings (excluding short-term part of long-term)

Lease liabilities

Total

2022

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

31,343

5,772

4,264

41,379

14,392

1,375

3,055

18,823

Cash Flow

Non Cash ﬂ ow

Amortization

New debt

Net cash
change

Acquisitions

Reclassi-
ﬁ cations

Additions/
Cancellations

Exchange rate
diﬀ erences

Closing
Balance

-2,622

—

–1,139

-3,761

–6,158

—

–948

–7,106

4,691

—

4,691

22,244

—

22,244

—

-2,901

—

-2,901

—

4,148

—

4,148

—

1,711

—

1,782

-136

-150

-245

864

249

374

1,487

33,276

2,912

4,685

40,873

31,343

5,772

4,264

41,379

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

Description of loan

Issue/maturity date
Bond loans
2017–2024
2018–2025
2019–2024
2019–2024
2019–2024
2020–2025
2020–2027
2022–2027
2022–2027
2022–2025
2022–2026
2022–2024
2022–2024
2022–2027
2022–2025
2022–2025
2022–2030
2023–2028
2023–2028
2023–2028
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

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)
2018–20234)
2018–20234)
2020–20234)
2020–20234)

Euro MTN Programme
Euro MTN Programme
Euro MTN Programme
Euro MTN Programme

Interest rate, %

Currency

Nominal
value (in
currency)

Floating1) 2)
Fixed1)
1.103
0.885
Stibor 3M + 0.75
Fixed1) 3)
Fixed1)
Stibor 3M + 0.62)
1.705
Stibor 3M + 0.85
4.1253)
Stibor 3M + 1.15
4.363
4.838
Stibor 3M + 1.4
4.42
2.53)
Stibor 3M + 1.45
4.913
Fixed1)

SEK
USD
SEK
SEK
SEK
NOK
USD
SEK
SEK
SEK
EUR
SEK
SEK
SEK
SEK
SEK
EUR
SEK
SEK
EUR

350
73
1,000
750
750
500
150
1,250
750
1,000
500
750
750
1,500
1,000
2,000
500
700
550
300

Fixed 6)
Fixed

USD
USD

75
282

Carrying amount,
December 31

2023

2022

350
—
761
733
1,000
—
750
—
753
—
502
474
1,564
1,506
1,249
1,249
749
749
1,000
1,000
5,507
5,596
750
—
750
—
1,500
1,500
1,000
1,000
2,000
2,000
5,270
5,403
—
700
—
550
3,305
—
25,765 25,455

174
2,831
30
3,035

301
2,939
42
3,282

28,800 28,738

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

Issue/maturity date
2017–20244)
2019–20244)
2019–20244)
2019–20244)
2022–20244)
2022–20244)

2017–20264)

Description of loan
Euro MTN Programme
Euro MTN Programme
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 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

Interest rate, %
Floating1) 2)
1.103
0.885
Stibor 3M + 0.75
Stibor 3M + 1.15
4.363

Currency
SEK
SEK
SEK
SEK
SEK
SEK

Carrying amount,
December 31

Nominal
value (in
currency)
350
1,000
750
750
750
750

2023
350
1,000
750
751
750
750

2022
—
—
—
—
—
—

Fixed6)

USD

116

120

9
4,476

24
2,605

CAD
BRL

THB
CLP

30
716

227
1,485

231
1,946

1,897
17,734

555
203

221
230

394
2,864
48
7,388
36,188
253

3,105
5,732
40
8,377
37,114
445

285

254
36,725 37,813

1) Private placement
2) The interest rate ﬁ xing proﬁ le of the loans has been adjusted with interest rate swaps, 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 2023
was SEK -2m (5).

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 2023 was
SEK -243m (299).

4) Long-term borrowings raised on Parent Company level amount to a total of SEK 33,236m (31,277).
5) Long-term borrowings with maturities within 12 months are classiﬁ ed as short-term borrowings in the Group’s balance sheet..
6) In April 2023, the interest rate was converted from ﬂ oating to ﬁ xed.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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 3.5 years (4.0), at the end of 2023. 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

2024

2025

2026

2027

2028

2029—

Total

—

4,476

5,206

5,596

5,005

4,555

5,403

25,765

146

—

2,831

—

3,035

4,476

5,353

5,654

5,005

4,555

8,233

33,276

Commercial ﬂ ows
The table below shows the forecasted commercial ﬂ ows, imports and exports, for the 12-month period
of 2024 and hedges at year-end 2023.

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 2023 amounted to SEK –419m (–169).
At year-end 2023, the unrealized fair value of forward contracts for hedging of forecasted commercial
ﬂ ows amounted to SEK -33m (34). Nominal amount of forecasted commercial ﬂ ows hedged as per
December 31, 2023, was SEK -13m (-689). The hedge accounting relations have an average maturity
period of 3 months (8).

Forecasted commercial ﬂ ows and hedges

AUD

BRL

CAD

CHF

CLP

CNY

EUR

GBP

MXN

USD Other

Total

Inﬂ ow of
currency, long
position

Outﬂ ow of
currency, short
position

Net commer-
cial ﬂ ows

3,235 4,239 3,917 3,777 1,140

480 3,753

4,172

187

6,182 18,047 49,130

–173 –662

— –214

-58 –2,134 –8,280

-887 –1,868 –21,358 –13,495 –49,130

3,063 3,577 3,917 3,563 1,082 –1,655 -4,527 3,285 –1,681 –15,176 4,552

Hedges

–646 –1,006 –296

–321

-207

251

2,784

-108

131

2,865 –3,448

Net transac-
tion ﬂ ow

2,417 2,571 3,621 3,242

875 –1,404 -1,743

3,177 –1,550 –12,311

1,105

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. In addition Electrolux has unused committed revolving credit
facilities of SEK 17,096 (16,622), see details stated above under ‘Liquid funds’.

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

> 0.5 year
< 1 year

> 1 year
< 2 years

> 2 years
< 5 years

> 5 years

Total

-4,316

–4,205

–6,284

-16,860

–8,668

–40,333

–110

–649

–159

-37,442

37,284

–36,402

–1,525

–43,161

–620

–359

367

—

–9

–5

–64

–1,102

-2,080

–1,239

-5,690

—

–151

-37,801

37,651

-36,402

–1,525

-4,778

-7,365

–18,949

-9,912

–84,166

Net gain/loss, fair value and carrying amount on ﬁ nancial instruments
The tables below 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

2023

2022

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

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

–419

-33

–644

—

–1,063

-33

—

–169

–219

–388

—

-2

—

231

–659

388

—

–72

— –1,906

–74

619

–2,565

—

–727

—

–41

299

–1,001

–36

387

–1,728

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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

2023

2022

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

427

164

263

37,580

22,247

15,331

167

-76

243

427

164

263

37,580

22,247

15,331

167

-76

243

425

166

259

39,048

21,487

17,559

425

166

259

39,048

21,487

17,559

38,174

39,572

71,976

28,308

7,266

36,402

368

333

72,590

28,800

7,388

36,402

368

333

74,123

27,368

8,398

38,357

578

279

299

75,472

28,738

8,377

38,357

578

279

299

72,344

72,958

74,701

76,050

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 Group Annual Report 2023

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

2023

2022

2023

2022

—

Owned by
Electrolux

Owned by other
shareholders

Total

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

Conversion of Class A shares into Class B shares

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.

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, 2023 the share capital of AB Electrolux consisted
of 8,191,804 Class A shares and 274,885,589 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, 2022

8,192,348 Class A shares, quota value SEK 5.46

274,885,045 Class B shares, quota value SEK 5.46

Total

Share capital, December 31, 2023

8,191,804 Class A shares, quota value SEK 5.46

274,885,589 Class B shares, quota value SEK 5.46

Total

1,500

1,545

1,500

1,545

Class A shares

Class B shares

Shares, December 31, 2023

—

Class A shares

Class B shares

Total

8,191,804

13,049,115

261,836,474

274,885,589

13,049,115

270,028,278

283,077,393

–544

544

–544

544

Earnings per share

Income for the period attributable to
equity holders of the Parent Company

Earnings per share, SEK

Basic

Diluted

Other paid-in capital
Other paid-in capital relates to payments made by owners and
includes share premiums paid in connection with share issues.

Average number of shares, million

Basic

Diluted

2023

2022

-5,227

–1,320

-19.36

–4.81

270.0

272.7

274.7

278.0

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.

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

270,028,278 (274,658,318) and the average number of diluted shares
has been 272,651,397 (277,996,529).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023

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,

2023 Appropriations

December 31,
2022

Accumulated depreciation
in excess of plan

Brands and other intangible
assets

Licenses

Machinery and equipment

Buildings

Other

Total

Group contributions

Total appropriations

361

136

565

-21

-32

-50

-103

-99

-202

382

168

118

668

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 severance
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. The deﬁ ned beneﬁ t plans are closed for
future accruals and employees are oﬀ ered 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. The pension
is based on ﬁ nal salary. Beneﬁ ts in payment are indexed according
to decisions of the Alecta insurance company, typically those follow
inﬂ ation. The plan is semi-closed, meaning that only new employees
born before 1979 can be covered by the ITP 2 solution. Electrolux has
chosen to secure the pension obligation (ITP 2) by a pension foun-
dation. A deﬁ ned contribution solution (ITP 1) is oﬀ ered to new hires
provided they fulﬁ ll the criteria for this.

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.

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
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 Group Annual Report 2023 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

Explanation of amounts in the ﬁ nancial statements relating to deﬁ ned beneﬁ t obligations.

Information by country December 31, 2023

Information by country December 31, 2022

U.S.
Medical

U.S.

UK Sweden Germany

Switzer-
land

Other

Total

U.S.
Medical

U.S.

UK Sweden Germany

Switzer-
land

Other

Total

446

1,507

5,713

2,646

3,478

2,781

735 17,306

-302

–1,905 -5,924 –2,544 –2,422 -3,377

-163 –16,636

Amounts included in the
balance sheet

Present value of funded and
unfunded obligations

Fair value of plan assets
(after change in asset ceiling)

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

144

-398

-211

103

1,057

–596

572

670

Total (surplus)/deﬁ cit

–1,133

–677

1,249

–5

273

–245

—

-398

-211

—

-596

— -1,205

Pension plan assets

–1,446

—

–676

—

Whereof reported as:

144

—

103

1,057

—

572

1,876

126

104

121

11.4

7.7

11.4

19.1

11.6

11.2

—

12.2

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

—

-309

–293

—

-31

512

-1

285

-242

-575

481

381

-188

-540

151

Service cost

Net interest cost

-304

Remeasurements (gain)/loss

-117

798

Total expense (gain)
for deﬁ ned beneﬁ t plans

Expenses for deﬁ ned
contribution plans

Amounts included in the
cash ﬂ ow statement

—

-1,037

—

153

—

327

—

-5

—

-182

—

190

103

Contributions by the employer

— -1,224

Reimbursement

691

Beneﬁ ts paid by the employer

6,086

Major assumptions for the
valuation of the liability
Longevity, years1)

—

141

—

282

—

–80

–507

—

137

20.6

22.6

—

20.6

22.6

—

5.00

21.6

24.2

3.25

4.50

21.2

23.4

2.00

3.20

20.7

24.1

2.20

3.20

21.8

23.5

1.50

1.30

—

21.3

23.8

2.43

3.53

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

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 U.S.Medical, the number refers to the inﬂ ation of healthcare beneﬁ ts.

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

912

131

–9

236

–337

1,614

691

1,042

267

-322

1,736

–33

–28

—

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, %

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 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

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

2023

2022

16,223

27,611

152

-1

612

164

—

467

–6,902

258

310

533

-1,012

–6,914

186

775

2,029

–1,114

17,306

16,223

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. Expected
inﬂ ation and mortality assumptions are based on local conditions in
each country and changes in those assumptions may also aﬀ ect the
measured obligation and, therefore, the accounting entries.

Investment strategy and risk management
The Group supervises 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.

Reconciliation of change in the fair value of plan assets

Below is the sensitivity analysis for the main actuarial 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.

Opening balance, January 1

Interest income1)

2023

2022

16,468 26,720

611

492

Sensitivity analysis on deﬁ ned beneﬁ t obligation

Return on plan assets, excluding amounts
included in interest1)

Longevity +1 year

-232

–4,361

Inﬂ ation +0.5%1)

Discount rate +1%

Discount rate –1%

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

1,309

-1,162

–853

–533

-691

–6,658

267

2,167

–545

16,636

16,468

1) The actual return on plan assets amounts to SEK 379m (3,869).
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.

U.S. U.S. Medical

—

–30

—

–107

121

265

140

–587

685

Sweden

Germany

Switzerland

Other

262

–446

550

200

190

-370

436

–290

341

-45

Total

709

631

–1,875

2,221

1) The inﬂ ation change feeds through to other inﬂ ation-dependent assumptions, for example future pension increases and salary growth.

In the coming year, the Group expects to pay a total of SEK 343m (274) 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 Group Annual Report 2023 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

Market value of plan assets by category

2023

2022

Fixed income, SEK 8,845m
Equity, SEK 2,778m
Hedge funds, SEK 2,303m
Real estate, SEK 1,260m
Infrastructure, SEK 862m
Private equity, SEK 304m
Cash, SEK 284m

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

Market value of plan assets without quoted prices

Fixed income

Real estate

Infrastructure

Private equity

December 31

2023

1,577

1,268

862

304

2022

1,629

2,014

739

244

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 2023 3,0% (3,0).
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.

Change in the present value of deﬁ ned beneﬁ t pension obligation
for funded and unfunded obligations

Funded Unfunded

Opening balance, January 1, 2022

Current service cost

Interest cost

Beneﬁ ts paid

Closing balance, December 31, 2022

Current service cost

Interest cost

Beneﬁ ts paid

969

331

–5

1,329

206

-9

Closing balance, December 31, 2023

1,569

Change in fair value of plan assets

424

–36

434

-39

480

Opening balance, January 1, 2022

Actual return on plan assets

Contributions and compensation to/from the fund

Closing balance, December 31, 2022

Actual return on plan assets

Contributions and compensation to/from the fund

Closing balance, December 31, 2023

Total

1,393

364

–41

1,763

277

–48

2,049

Funded

2,464

–106

–80

2,278

185

-5

2,458

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

Special employer’s contribution tax

Cost for credit insurance FPG

Total pension expenses

Compensation from the pension fund

Total recognized pension expenses

December 31

2023

2022

–2,049

–1,763

2,458

2,278

409

515

-889

–480

-480

–949

–434

2023

277

334

153

547

-5

542

2022

364

411

193

646

–80

566

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 founda-
tion amounted at December 31, 2023, to SEK 2,458m (2,278) and
the pension commitments to SEK 1,569m (1,329). The Swedish Group
companies recorded a liability to the pension fund as per December
31, 2023, in the amount of SEK 0m (0). Contributions to the pension
foundation during 2023 amounted to SEK 0m (0). Contributions from
the pension foundation during 2023 amounted to SEK 5m (80).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 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

Note 23 Other provisions

Provi-
sions for
restructuring

Warranty
commit-
ments

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

1,118

—

424

–293

—

144

1,391

346

1,045

Other

2,584

—

994

Total

7,368

—

3,231

–1,130

–2,250

–125

—

340

2,664

759

1,905

–457

—

801

8,693

4,037

4,657

Opening balance, January 1, 2023

2,222

2,416

1,391

2,664

8,693

Acquisitions of operations

Provisions made

Provisions used

Unused amounts reversed

Reclassiﬁ cations

Exchange-rate diﬀ erences

Closing balance, December 31, 2023

Of which current provisions

Of which non-current provisions

—

3,117

-1,253

-301

—

-75

3,712

3,024

688

—

164

-186

-44

—

-73

2,278

1,194

1,084

—

436

-490

—

-40

1,296

334

962

—

1,929

–1,011

-56

-3

-78

—

5,646

–2,940

-401

-3

-266

3,443

10,729

1,392

2,051

5,944

4,785

Parent Company

Provi-
sions for
restructuring

Warranty
commit-
ments

Other

365

—

805

–146

–113

—

949

778

171

949

—

1,935

-656

-79

—

-37

2,112

1,748

364

610

—

–180

—

460

111

349

460

—

-95

—

367

270

—

–11

–15

—

644

-60

—

669

643

Total

1,072

—

813

–337

–128

—

1,492

897

595

1,492

—

2,579

-811

-79

—

-33

3,148

1,871

1,277

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 his-
torical data for similar products. Provisions for warranties are based
on the Group’s commitment 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, 2023, is expected to be consumed in 2024 and 2025.

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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 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

Note 24 Other liabilities

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

Other operating liabilities

Group
December 31

Parent Company
December 31

2023

1,259

1,182

285

7,215

2,982

1,047

956

951

2022

1,107

1,183

254

7,516

3,607

484

179

1,017

854

1,342

2023

329

149

279

316

357

—

2022

314

156

249

275

371

—

Total

15,989

17,543

1,430

1,367

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

2023

2022

2023

2022

Guarantees and other
commitments

On behalf of subsidiaries

—

On behalf of external
counterparties

Total

1,525

1,491

1,120

1,097

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.

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 addi-
tional lawsuits will be ﬁ led against Electrolux Group. It is not possible
to predict the number of future lawsuits. In addition, the outcome
of asbestos lawsuits is diﬃ cult to predict and AB 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.

In October 2013, Electrolux Group became subject of an inves-
tigation 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. In February 2023, the Authority issued a State-
ment of Objections relating to the other investigation and Electrolux
France is alleged to have breached the antitrust rules by conducting
resale price maintenance in the home appliance sector between
2009 and 2014 and by exchanging with other parties competitively
sensitive information relating small appliances in France between
2009 and 2014. During the second quarter 2023, a settlement has
been agreed with the Competition Authority and Electrolux Group
has therefore in accordance with accounting principles set a pro-
vision of SEK 643m. A minor part of the provision relates to the set-
tlement of another legal matter in Europe. The ﬁ nal amount will be
decided at the end of the procedure.

In the fourth quarter 2023 the Brazilian Supreme Federal Court

issued a ruling regarding a speciﬁ c state value added tax for the ﬁ scal
year 2022. It cannot be ruled out that the consequences of this ruling
could have a material impact on Electrolux Group’s ﬁ nancial result. As
the written ruling has not yet been released, it is however at this stage
not possible to evaluate the consequences of this ruling for Electrolux
Group’s subsidiaries in Brazil. No provision relating to this matter has
been set.

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

Acquisitions
There were no acquisitions completed during 2023 or 2022.

Divestments
Electrolux decided to exit Russia and divested the business to local
management through a sale of the 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

2023

2022

—

546

–12

–20

–53

–10

–350

179

–546

–367

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 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

Note 27 Employees and remuneration

Average number of employees, by geographical area

Employees and employee beneﬁ ts
In 2023, the average number of employees was 45,452 (50,769),
of which 27,901 (31,350) were men and 17,551 (19,419) 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

2023

2022

17,878

19,574

6,830

8,215

12,514

14,339

8,230

8,641

45,452

50,769

Salaries, other remuneration and employer contributions

Parent Company

whereof pension costs1)

Subsidiaries

whereof pension costs

Total

whereof pension costs

2023

Salaries and
remuneration

Employer
contributions

1,449

—

18,655

—

20,104

—

726

271

3,470

678

4,196

949

2022

Salaries and
remuneration

Employer
contributions

1,538

—

18,106

—

19,644

—

832

349

3,342

624

4,174

973

Total

2,175

271

22,125

678

24,300

949

1) Includes SEK 25m (11) 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

2023

Board mem-
bers and senior
managers1)

Other employees

472

545

1,376

18,183

19,559

2022

Board mem-
bers and senior

managers1) Other employees

467

538

1,467

17,639

19,106

Total

1,449

18,655

20,104

Total

2,370

349

21,448

624

23,818

973

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, 69 (79) were men and
24 (25) women, of whom 4 (4) 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 172 (187) men and 79 (70) women, of whom 5 (5)
men and 3 (2) women in the Parent Company. The total pension cost
for Board members and Senior managers in the Group amounted to
SEK 31m (38).

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 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

Compensation to Board members

´000 SEK

Ordinary
compensation

Compensation for
committee work

Total
compensation

Ordinary
compensation

Compensation for
committee work

Total
compensation

2023

2022

Staﬀ an Bohman, Chairman

2,456

Petra Hedengran

Henrik Henriksson

Ulla Litzén

Karin Overbeck

Fredrik Persson

David Porter

Jonas Samuelson, President

Mina Billing (up to May 5 2022)

Viveca Brinkenfeldt Lever

Peter Ferm

Wilson Quispe (as from May 9 2022)

715

—

318

372

—

322

124

209

—

2,774

1,087

715

1,037

839

924

715

—

2,371

691

—

233

274

—

270

188

—

2,604

965

691

961

781

879

691

—

Total compensation

6,746

1,345

8,091

6,517

1,055

7,572

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 2023 refers to one fourth of the compensation
authorized by the AGM in 2022 and three fourths of the compen-
sation authorized by the AGM in 2023. Total compensation paid in
cash in 2023 amounted to SEK 8.1m, of which SEK 6.7m referred to
ordinary compensation and SEK 1.3m 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 pages 43-44 in the Annual
Report..

Electrolux Group has a clear strategy to deliver proﬁ table growth

and create shareholder value. A prerequisite for the successful
implementation of the The Goups business strategy and safe-
guarding of its long-term interests, including its sustainability, is that
Electrolux Group is able to recruit and retain qualiﬁ ed personnel.
To this end, it is necessary that Electrolux Group oﬀ ers competitive
remuneration in relation to the country or region of employment of
each Group Management member. These guidelines enable The

Group to oﬀ er the Group Management a competitive total remu-
neration. The total remuneration 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. Following the ‘pay for performance’
principle, variable compensation shall represent a signiﬁ cant por-
tion of the total compensation opportunity for Group Management.
Variable compensation shall always be measured against pre-de-
ﬁ ned targets and have a maximum above which no payout shall be
made. Variable compensation shall mainly relate to ﬁ nancial per-
formance targets. Non-ﬁ nancial targets may also be used in order
to strengthen the focus on delivering on Electrolux Group 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, AB Electrolux has oﬀ ered long-term performance

share programs for senior managers. The alignment of Electrolux top
management incentives with the interest of shareholders is a long-
standing 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 representing a value of one gross annual
base salary and for Group Management members to build up a per-
sonal holding of B-shares representing a value of 50% of one gross
annual base salary.

Remuneration and terms of employment for the President in 2023
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 2023 has been

set at SEK 13.3m.

The variable salary is based on annual ﬁ nancial and non-ﬁ nancial

targets for The Group. Each year, a performance range is deter-
mined 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 employer 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 employer. It is also applicable
if the employment is terminated by the President provided serious
breach of contract by the employer 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, a disability pension is provided of maximum 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
2023, prior Presidents, and survivors is SEK 207m (185), whereof
SEK 52m (44) relates to the current President.

Remuneration and terms of employment for other members of
Group Management in 2023
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 Group Annual Report 2023 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

Base salary is revised annually per January 1. The average base-
salary increase for members of Group Management in 2023 was
2.8% (7.9).

Variable salary in 2023 is based on ﬁ nancial and non-ﬁ nancial targets

on business area and Group level. Variable salary for Business Area
heads and head of Group Operations 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 maximum 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 employer 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 employer. It is also applicable
if the employment is terminated by the Group Management member
provided serious breach of contract by the employers 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. New members of Group Management
employed in Sweden as of 2023 receive a pension entitlement where
the aggregated contribution is 30% of annual base salary. The
retirement age is 65 years. One member employed in Sweden before
2012 is covered by the risk beneﬁ ts provided with the ITP plan, as
well as a supplementary plan. 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) has been
amended and 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, AB 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
share price. They have been designed to align management incen-
tives with shareholder interests.

For AB Electrolux, the share-based compensation programs are
classiﬁ ed as equity settled transactions, and the cost of the granted
instrument’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.

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 and 2023 programs the granted shares will be multiplied
by 0.75-1.25 depending on the outcome of a relative total share-
holder 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.

In addition, The Group provides for employer contributions expected

2021 and 2022 program covers 282 respectively 817 senior man-

to be paid in connection with the share-based compensation
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 2021, 2022 and 2023
The Annual General Meeting in March 2023, approved a long-term
incentive program for 2023. 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 Electrolux Group.
The General Meetings of AB Electrolux have also approved long-
term incentive programs for 2021 and 2022.

The allocation of shares in the 2021 program is determined 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
and 2023 programs 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 2021, 2022 and 2023 programs allocation is linear from
minimum to maximum. There is no allocation if the minimum level

agers and key employees whilst the 2023 program covers 846
participants in almost 30 countries. Participants in the 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 and 2023 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 2023 will be determined after the
expiry of the three year performance period.

For 2023, LTI programs resulted in a cost of SEK 84m (including a cost
of SEK 3m in employer contribution) compared to a cost of SEK 179m in
2022 (including a cost of SEK 19m in employer contribution). The total
provision for employer contribution in the balance sheet amounted
to SEK 29m (67).

Repurchased shares for LTI programs
The Annual General Meeting in 2022 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 2022 program, but this mandate has not been used by
the company.

Allocation of shares for the 2020 program
The 2020 performance-share program met 98.8% of the maximum
performance and performance shares were allocated during 2020
to the participants according to the terms and conditions of the 2020
share program in 2023 .

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 108

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 PwC

Audit fees to other audit ﬁ rms

Total fees to auditors

Group

Parent Company

2023

2022

2023

2022

—

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.

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

’000 SEK

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

13,757

2,484

5,554

4,664

4,736

Annual
ﬁ xed
salary1)

13,310

Variable
salary2)

Long-
term PSP
(cost)3)

Other
remuner-
ation4)

Total pen-
sion con-
tribution

Social
contribu-
tion

1,300

9,359

4,550

8,080

2023

2022

Other members of Group
Management5)

53,789 12,809

12,084

15,202

10,490

14,192

46,322

5,497

21,029

5,578

10,389

16,324

Total

67,546

15,293

17,638

15,210

15,154

18,928

59,632

6,797 30,388

5,587

14,939 24,404

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 2023: variable salary earned 2023 and to be paid in 2024, and for 2022: variable salary

4) Includes allowances and other beneﬁ ts such as gross-up of tax, housing, company car,

earned 2022 and paid in 2023.

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 2023, and of

payments. If the expected cost of the program is reduced, the previous recorded cost is reversed

9 people at the end of 2022.

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)

2023

142,251

53,061

22,960

12,364

8,865

6,095

2,394

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

—

2023

2022

2021

16,656,170

16,249,876

12,400,000

6,212,952

5,461,725

3,782,796

2,688,397

2,334,331

2,203,430

1,447,657

1,375,778

1,252,228

1,037,985

713,691

280,283

965,312

632,840

252,709

921,495

590,054

—

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 2021
program. The maximum performance value for the participant in Group 7 in 2022 and 2023 pro-
gram will be 20% of the participants annual base salary. For participants in Group 1 and 2 in 2022
and 2023 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 respec-
tive category. The calculation was based on a share price of SEK 224.67 for 2021 and SEK 121.40
for 2022 and SEK 117.09 for 2023 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 2021 program. The maximum number of
shares in the above table represents the adjusted numbers.

2) For the 2021 program the outcome of the ﬁ nancial targets was 100%. The outcome under the 2021
program for the CO2 reduction target was 77,3 % after the expiry of the three year performance
period which resulted in a total allocation of 1.023.587 shares. Maximum value refers to value at
grant. For the 2022 and 2023 program the allocation will be determined by the Board in 2025 and
2026 after the expiry of the three year performance period in 2024 and 2025.

Performance-share program 2023

Cumulative earnings per share, SEK1)
CO2 Reduction, %1)
Total shareholder return (TSR) multiplier2)

Total allocation

1) Measured over 2023 – 2025, outcome will be presented in the 2025 annual report.

Objectives

Allocation of shares

Minimum

Maximum

Actual 1)

TBD

Outcome, %

Weight, %

Allocation, %

TBD

100

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
2023 – 2025. 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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 109

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. The holdings in Next-Tech BVBA/SPRL, Belgium, was impaired during 2022 and sold 2023.
The holding in Mila Cares was reduced to 17% in 2022 thus no longer associated. Mila Cares changed
name during 2023 from Vitality Ventures.
All associated companies are unlisted.

Investments in associated companies

Company

Llitha Solar (Pty) LTD,
South Africa

Next-Tech BVBA/SPRL, Belgium

Mila Cares, Hong Kong

Tradeplace B.V., The Netherlands

Total

2023

2022

Holding, %

Carrying
amount Net income1)

Holding, %

Carrying
amount Net income1)

n/a

—

-1

n/a

-1

n/a

—

–54

–3

–57

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.

Group companies
The following table lists the major companies included in the Electrolux Group. A detailed speciﬁ 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 Group Annual Report 2023 110

‘000 SEK

5,735,425

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

2023

2022

2023

2022

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% (30) of the voting rights in

AB Electrolux. The Group has not had any transactions with Inves-
tor AB during the year and there are no outstanding balances with
Investor AB. Investor AB has controlling or signiﬁ cant inﬂ uence over
companies with which Electrolux Group 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 2023 was negative, the Board
of Directors has proposed that the Annual General Meeting 2024
resolves that no payment of dividend will be made for the ﬁ scal year
2023 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 19, 2024
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, 2024
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 Group Annual Report 2023 111

Auditor’s report

We believe that the audit evidence we have obtained is suﬃ cient
and appropriate to provide a basis for our opinions.

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 2023. The annual accounts and
consolidated accounts of the company are included on pages
33-52 and 69-110 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 2023 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 2023 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 sharehold-
ers adopts the income statement and balance sheet for the parent
company and the Group.

Our opinions in this report on the annual accounts and consolidated

accounts are consistent with the content of the additional report
that has been submitted to the parent company's audit committee
in accordance with the Audit Regulation (537/2014) Article 11.

Basis for Opinions
We conducted our audit in accordance with International Stan-
dards 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 inde-
pendent 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 require-
ments. 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 compa-
nies within the EU.

Our audit approach
We designed our audit by determining materiality and assessing
the risks of material misstatement in the consolidated ﬁ nancial state-
ments. In particular, we considered where management made sub-
jective 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 consist 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 per-
formance reviews and management oversight and follow-up activi-
ties on Business area level.

In establishing the overall Group audit strategy and plan, we
determined the type of work that needed to be performed at the
reporting units in scope by component auditors. For the most sig-
niﬁ 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, restructuring provision
for the new restructuring program announced in Q4 2023, tax provi-
sions 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 repre-
sent approximately 77 percent 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 judgement, 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 pro-
fessional judgement, 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. 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 recognition, management judgements and estimates of
discounts and rebates is considered a matter of high importance
also considering the increasing amounts for these in 2023. Disclo-
sures 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,

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 112

analytical procedures and detailed tests of signiﬁ cant customer
contracts. Diﬀ erent contracts may contain diﬀ erent delivery and
pricing terms that need to be considered in terms of revenue recog-
nition. Our audit also included, if considered material, a sample tests
of proof of delivery to conﬁ rm that risk had been transferred to the
customers. We also perform data analytics relating to manual and
automated journal entries to ascertain accuracy in the reporting of
discounts and rebates.

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 centres. 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 20bn as of December 31, 2023. In 2023 high
cost inﬂ ation and decreasing customer demand have been speciﬁ c
considerations. Provisions for obsolescence are subject to manage-
ment’s estimates and of high importance in our audit enhanced
the importance of having an appropriate method for estimating
reserves for slow-moving and obsolete goods. Provisions for obso-
lescence require clear policies and are subject to management’s
estimates. Note 15 Inventories, provides information about the
Group’s accounting principles for measuring inventory and
additional information on the line item.

In our audit we have assessed the companies' inventory processes

including routines for valuation and methods used to estimate
reserves for slow-moving and obsolete goods 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 subsidiaries
against accounting principles. We have traced the disclosures infor-
mation 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 organisational
simpliﬁ cation program in Q4 2023. The purpose of the program is
to step up its cost reduction eﬀ orts to restore margins. In 2023, the
Group recorded costs for the program amounting to SEK 2.8bn. The
vast majority of the costs are provisions involving management esti-
mates on the timing and measurement of costs for reducing the num-
ber 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, provides information on the Group’s accounting

principles for measuring restructuring costs and additional informa-
tion 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
supporting documentation and read the presentation of the costs
relating to programs for eﬃ ciency measures in the annual report.

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 2-16,
53-57 and 114-124. Other information also refers to the remuneration
report to which we had access prior to the date of this auditor's report.
The Board of Directors and the Managing Director are responsible

for this other information.

Our opinion on the annual accounts and consolidated accounts

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
otherwise 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 accor-
dance 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 preparation 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
Directors and the Managing Director intend to liquidate the company,
to cease operations, or has no realistic alternative but to do so.
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 Revisors-
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 2023 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 stat-
utory 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

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 113

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 l 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 29 March 2023 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 2023.

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 rec-
ommendation RevR 18 Examination of the Esef report. Our respon-
sibility 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 obtain a reasonable assurance whether the
Esef report is in all material respects prepared in a format 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 ﬁ rm applies International Standard on Quality Management 1,
which requires the ﬁ rm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.

The examination involves obtaining evidence, through various
procedures, that the Esef report has been prepared in a format that
enables uniform electronic reporting of the annual accounts and
consolidated accounts. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material
misstatement in the report, whether due to fraud or error. In carrying
out this risk assessment, and in order to design audit procedures that
are appropriate 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 examination also includes an evalu-
ation of the appropriateness and reasonableness of assumptions
made by the Board of Directors and the Managing Director.

The procedures mainly include a validation that the Esef report
has been prepared in a valid XHMTL format 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 consolidated statement of ﬁ nancial performance,
statement of ﬁ nancial position, statement of changes in equity and
the statement of cash ﬂ ow and disclosures in the Esef report have
been marked with iXBRL in accordance with what follows from the
Esef regulation.

Stockholm, February 21, 2024

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 Group Annual Report 2023 114

Additional
information

Eleven-year review

Operations by business area yearly

Quarterly information

Deﬁ nitions

Annual General Meeting

Reports and events

115

117

118

120

122

123

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 115

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

2013

2014

2015

2016

20171)

2018

20187)

2019

2020

2021

2022

2023

5 years

10 years

Compound annual
growth rate, %

109,151

112,143

123,511

121,093 120,771

124,129 115,463

118,981

115,960 125,631

134,880 134,451

1.6

2.1

4.5

3,356

–2,475

1,580

904

672

1.1

2.2

–1.1

–0.4

1.3

1.2

–1.0

3.2

14.2

–2.8

–4.0

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

6,277

—

2,741

2,101

1,568

—

6,274

5,581

4,493

— –1,343

–1,343

–1,344

—

–727

–1,046

–3,401

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

-2,988

–1,672

–5,111

–1,320

–5,227

-189.1

-200.9

-206.6

n.m.

4,455

7,822

8,267

10,165

10,024

8,046

–4,734

–3,759

–3,403

–2,557 –8,200 –6,506

—

7,314

— –6,994

11,932

–5,115

7,059

–2,274

4,003

-13.0

-1.1

–6,815

–6,962

-4,358

of which capital expenditure in property, plant and equipment

–3,535

–3,006

–3,027

–2,830

–3,892

–4,650

— –5,320

–4,325

–4,847 –5,649 –4,069

Cash ﬂ ow from operations and investments

–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

–74

–1,860

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

—

3.0

—

321

6,816

244

–9,236

-355

-174.6

2.4

348

6,824

1,250

–8,868

-355

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.

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

–2.2

–3.8

76,001 85,688

83,471 85,848

89,542

97,312

— 106,808 99,604 107,607 127,102 120,053

24,961

26,099

21,412

18,098

20,678

23,574 20,306

26,172

20,265

27,201 40,297 37,500

–5,800

–8,377 –12,234 –14,966 –15,873 –16,848 –17,077 –17,390

–19,191

–17,726 –13,731 –16,925

19,441

20,663

17,745

19,408

20,747

21,482

19,824

20,847

19,944

23,110

21,487

22,247

12,154

14,324

14,179

13,418

14,655

16,750

15,451

16,194

13,213

20,478

24,374

19,965

20,607 25,705

26,467

28,283

31,114 34,443 32,996 33,892

31,306

38,182 38,357 36,402

14,308

16,468

15,005

17,738 20,480

21,749

— 22,574

18,709

18,610

16,449

11,274

14,905

14,703

13,097

10,202

2,980

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

36,140

—

3,866

7,683

3,679

1,556

891

–245

670

8,591

23,848

26,226

4.3

9.7

0.7

3.6

1.1

-12.3

29.3

-29.4

70.4

4.7

4.2

1.4

5.1

5.9

-2.4

9.3

-13.9

9.4

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 116

SEKm

Data per share, SEK

Income for the period

Equity

Dividend4)

2013

2014

2015

2016

20171)

2018

20187)

2019

2020

2021

2022

2023

5 years

10 years

Compound annual
growth rate, %

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

—

–19.36

41.75

—

-207.9

-11.2

n.m.

–10.4

n.m.

–1.8

n.m.

–4.3

Trading price of B-shares at year-end

168.50

228.80 205.20

226.30 264.30

187.10

229.90

191.35

219.50

140.78

108.10

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

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

—

33.7

-6.9

32.3

17.4

15.6

3.9

2.33

-0.63

—

60,754 60,038 58,265 55,400 55,692

54,419

51,253 48,652 47,543

51,590

50,769 45,452

13,521

14,278

15,858

15,886

16,470

17,363

15,829

16,318

15,666

16,829

19,644

20,104

51,500 46,500 45,485 48,939 45,295 49,870 49,870 50,544

59,401

73,578 83,248 75,049

–3.5

3.0

8.5

–2.9

4.0

3.8

Average number of shares after buy-backs, million

Shares at year end after buy-backs, million

286.2

286.3

287.1

287.4

286.9

283.1

274.7

270.0

1) Amounts for 2017 have been restated 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 year 2013. 2014 has been restated.
4) 2023: 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.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 117

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

20191)

2020

2021

2022

2023

Non-recurring items1)

45,420

46,038

49,384

46,573

2,493

5.5

3,643

4,002

7.9

8.1

683

1.5

45,349

-1,602

-3.5

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Group common cost

Total Group2)

20193)

–752

–1,071

1,101

–398

–224

–1,344

2020

—

20214)

—

–727

—

–727

20225)

–774

241

–80

–66

–367

–1,046

20236)

-2,705

148

–51

-323

-470

–3,401

38,954

38,219

40,468

–516

–1.3

1,215

3.2

688

1.7

47,021

–2,394

–5.1

45,072

–2,341

–5.2

19,653

16,915

1,821

9.3

666

3.9

19,958

1,336

6.7

24,303

28,920

1,058

4.4

1,624

5.6

14,954

446

3.0

14,788

1,038

7.0

15,820

1,511

9.6

16,984

1,308

7.7

15,109

460

3.0

1) IFRS 16 was applied from 2019 without restatement of comparatives, see Annual Report 2018 for more information.
2) For more information, see Note 7.
3) Non-recurring items 2019 include SEK -829m related to the consolidation of North America cooking production and SEK -225m to the closure of a refrig-
eration 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 restructur-
ing charges for eﬃ ciency measures and outsourcing projects across business areas and Group common costs of SEK -1,496m.

4) 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.

5) Non-recurring items of SEK -1,046m in 2022 whereof SEK 656m refers to a settlement regarding the arbitration in a U.S. tariﬀ case, SEK -350m to a loss
from the exit from the Russian market, SEK -1,536m to restructuring charges across business areas and Group common cost for the Group-wide cost
reduction and North America turnaround program, SEK 394m to the divestment of the oﬃ ce facility in Zürich, Switzerland, and SEK -210m to the termi-
nation of a U.S pension plan, transferred to a third party.

6) Non-recurring items of SEK -3,401m in 2023 whereof SEK -561m refers to a restructuring charge related to the discontinuation of production at the Nyír-
egyháza factory in Hungary, SEK-643m refers to a provision mainly related to a French antitrust case, SEK 294m to the gain from the divestment of the
Nyíregyháza factory, SEK -2,548m to a restructuring charge for the expanded Group-wide cost reduction and North America turnaround program, SEK
262m to a capital gain from the divestment of the factory in Memphis, USA, and SEK -205m to impairment of assets driven by the formation of the new
business area Europe, Asia-Paciﬁ c, Middle East & Africa.

Operating income, Group common costs, etc.

–1,055

–783

–737

–870

-1,129

Total Group

Net sales

Operating income

Margin, %

118,981

115,960

125,631

134,880

134,451

3,189

2.7

5,778

5.0

6,801

5.4

–215

–0.2

-2,988

–2.2

1) Earlier years presented have been restated due to changes in the business area structure in 2019.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 118

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
2023

11,339

-41

-0.4

11,504

-439

-3.8

6,196

236

3.8

3,695

124

3.3

Q2
2023

10,791

-346

-3.2

11,238

–160

–1.4

6,915

333

4.8

3,709

200

5.4

Q3
2023

10,618

483

4.5

11,896

–440

–3.7

7,193

405

5.6

3,720

245

6.6

Q4
2023

Full year
2023

12,601

-1,697

-13.5

10,434

–1,302

–12.5

8,616

649

7.5

3,985

-108

-2.7

45,349

-1,602

-3.5

45,072

–2,341

–5.2

28,920

1,624

5.6

15,109

460

3.0

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

Operating income, common group costs, etc.

–136

–150

–86

-757

-1,129

–148

–41

–184

–497

–870

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.

32,734

32,653

33,427

-256

-0.8

-588

-2.18

270.0

272.3

-124

-0.4

-648

-2.40

270.0

272.1

608

1.8

123

0.46

270.0

273.4

35,636

-3,215

-9.0

-4,113

–15.23

270.0

273.0

134,451

-2,988

–2.2

-5,227

-19.36

270.0

272.7

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

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 119

Non-recurring items1)

Europe

North America

Latin America

Asia-Paciﬁ c, Middle East and Africa

Common Group cost

Total Group

Q1
20232)

-561

—

Q2
20233)

-643

—

Q3
20234)

294

—

Q4
20235)

-1,795

148

-51

-323

-470

Full year
2023

-2,705

148

-51

-323

-470

-561

-643

294

-2,491

-3,401

Q1
20226)

—

656

—

656

Q2
2022

—

Q3
20227)

–350

—

–350

Q4
20228)

–424

–415

–80

–66

–367

–1,352

Full year
2022

–774

241

–80

–66

–367

–1,046

1) For more information, see Note 7.
2) The non-recurring item of SEK -561m in the ﬁ rst quarter of 2023 refers to business area Europe and the restructuring charge related to the discontinuation

6) 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. The positive NRI is included in Other operating income/expenses.

of production at the Nyíregyháza factory in Hungary from the beginning of 2024. The cost is included in Cost of goods sold.

7) The non-recurring item of SEK -350m in the third quarter of 2022 refers to business area Europe and the exit from the Russian market. The cost is

3) The non-recurring item of SEK-643m in the second quarter of 2023 refers to business area Europe and a provision mainly related to a French antitrust

included in Other operating income/expenses.

case. The cost is included in Other operating income/expenses.

4) The non-recurring item of SEK 294m in the third quarter of 2023 refers to business area Europe and the gain from the divestment of the Nyíregyháza

factory in Hungary. The gain is included in Other operating income/expenses.

5) The non-recurring items of SEK -2,491m in the fourth quarter of 2023 refer to a restructuring charge of SEK -2,548m for the expanded Group-wide

cost reduction and North America turnaround program, a capital gain of SEK 262m for the divestment of the factory in Memphis, U.S., and SEK -205m
in impairment of assets driven by the formation of the new business area Europe, Asia-Paciﬁ c, Middle East & Africa. The gain is included in Other
operating income/expenses. The costs related to restructuring and impairment of assets are included in the applicable functional lines of the income
statement.

8) The non-recurring items of SEK -1,352m in the fourth quarter of 2022 refer to a 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. The capital gain from the facility divestment and the cost for the pension plan
termination are included in Other operating income/expenses, the restructuring costs for the Group-wide cost reduction and North America turnaround
program are included in the applicable functional lines of the income statement.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 120

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, Electrolux presents certain measures that are not
deﬁ ned under IFRS (alternative performance measures – ”APMs”).
These are used by management to assess the ﬁ nancial and opera-
tional performance of the Group. Management believes that these
APMs provide useful information regarding the Group’s ﬁ nancial and
operating performance. Such measures may not be comparable
to similar measures presented by other companies. Consequently,
APMs have limitations as analytical tools and should not be con-
sidered in isolation or as a substitute for related ﬁ nancial measures
prepared in accordance to IFRS. The APMs have been derived from
the Group’s internal reporting and are not audited. The APM recon-
ciliations can be found on the Group’s website
www.electroluxgroup.com/ir/deﬁ nitions

Computation of average amounts and annualized income state-
ment 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.
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.

Operating margin (EBIT margin) excluding non-recurring items
Operating income (EBIT) excluding non-recurring items, expressed
as a percentage of net sales.

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.

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.

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

Capital measures

Net debt/equity ratio
Net debt in relation to total equity.

Net debt/EBITDA
Net debt at end of period in relation to 12-months rolling EBITDA,
excluding non-recurring items.

Equity/assets ratio
Total equity as a percentage of total assets less liquid funds.

Capital turnover-rate
Net sales (annualized) divided by average net assets.

EBITA
Operating income excluding amortization of intangible assets.

Share-based measures

EBITA margin
EBITA expressed as a percentage of net sales.

EBITDA
Operating income excluding depreciation and amortization.

Operating income excluding non-recurring items
Operating income adjusted for non-recurring items.

Operating income excluding non-recurring items for the period
Operating income adjusted for non-recurring items for the period.

Operating margin (EBIT margin)
Operating income (EBIT) expressed as a percentage of net sales.

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

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 121

Total short-term borrowings
Short-term borrowings, ﬁ nancial derivative liabilities1), accrued
interest expenses and prepaid interest income1).

Operating cash ﬂ ow after structural changes
Operating cash ﬂ ow adjusted for structural changes.

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.

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.

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 debt
Financial net debt, lease liabilities and net provision for post-
employment beneﬁ ts.

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.

Other measures

Operating cash ﬂ ow
Operating income adjusted for depreciation, amortization and other
non-cash items plus/minus change in operating assets and liabilities.

Total borrowings
Long-term borrowings and short-term borrowings, ﬁ nancial
derivative liabilities1), accrued interest expenses and prepaid
interest income1).

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.

Cash ﬂ ow excluding change in loans and short-term investments
for the period
Cash ﬂ ow adjusted for change in loans and short-term investments
for the period.

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 39.
2) See Note 7 for more information.

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 122

Annual General Meeting

AB Electrolux Annual General Meeting will be held on March 27,
2024 at 4.00 p.m. CET at Nalen, Regeringsgatan 74, Stockholm,
Sweden.

Additional information about the Annual General Meeting and

instructions for participation have been published in the notice
convening the Annual General Meeting.

Proposed dividend
According to the company’s dividend policy, AB Electrolux target
is for the dividend to correspond to approximately 50% of the
annual income. As the annual income for 2023 was negative,
the Board of Directors proposes that no dividend shall be
distributed for the ﬁ scal year 2023.

Proposal for election of board
The Nomination Committee has proposed re-election of
Petra Hedengran, Ulla Litzén, Karin Overbeck, David Porter, and
Jonas Samuelson, as Board members and has proposed election of
Torbjörn Lööf, Geert Follens, Daniel Nodhäll and Michael Rauterkus
as new members of the Board of Directors. Torbjörn Lööf is proposed
to be elected as the new Chairman of the Board since Staﬀ an Bohman
has announced that he will not be available for re-election. Board
members Henrik Henriksson and Fredrik Persson have also declined
re-election.

The Nomination Committee’s complete proposals is presented in

the notice convening the Annual General Meeting.

Kay dates regarding the AGM 2024

2023

September

14 Nomination Committee appointed

for the AGM 2024

October

25 Proposal from the Nomination
Committee for election of
Chairman of the Board of Directors
was published

2024

January

25 Proposal from the Nomination

Committee regarding election of
members of the Board of Directors
was published

February

28 Notice to AGM published at the

latest

March

19 Deadline for registration in share

21 Deadline for notice of intent to

participate in AGM

27 AGM 2024

CEO statement

Governance and control

Financial reports

Additional information

Electrolux Group Annual Report 2023 123

Reports and events

The Electrolux Group website
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.

How we create value
electroluxgroup.com/ir/create-value

Interim Reports
electroluxgroup.com/ir

Shape living
for the better

Sustainability Report 2023

Sustainability Report
electroluxgroup.com/en/category/sustainability/
sustainability-reports

Digital subscriptionservice can be accessed at
electroluxgroup.com/subscribe

Investor Relations electroluxgroup.com/ir

Capital Markets Update
electroluxgroup.com/CMU

Remuneration
Report 2023

Remuneration Report 2023
electroluxgroup.com/en/category/remuneration/
remuneration-reports

Financial reports and
major events in 2024

Feb 2

Year-end report 2023

Mar 27

Annual General Meeting

Apr 26

Interim report January–March

Jul 19

Interim report January–June

Oct 25

Interim report January–September

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: electroluxgroup.com