President and CEO Keith McLoughlin’s comments on the results for the third quarter of 2012

Strong performance in an uncertain macro environment

In the third quarter, Electrolux recorded a significant year-on-year improvement
in its sales and earnings despite considerable uncertainty in markets across the
globe. In North America, improvements in price and mix along with operational
efficiency contributed to an operating margin that exceeded 6%. Latin America
reported strong results based on a continuing positive volume trend. Our
appliances business in Europe is suffering from weak consumer confidence with
falling volumes in some of our key markets.
Net sales in comparable currencies grew by more than 10% in the third quarter.
Half of the growth was attributable to acquisitions while the remainder was
generated by organic growth. Operations in Latin America recorded organic growth
of close to 25% during the third quarter, partly driven by government tax
incentives in Brazil, which have been extended to the end of 2012.

Market demand for core appliances in North America in the third quarter was
slightly positive and we expect this trend to continue to improve, supported by
a gradual recovery in the housing market. We will utilize the positive momentum
and invest more in brand building activities with the aim of further
strengthening the Group’s position.

During the quarter, five of our six business areas delivered an EBIT margin at
or above our target of 6%, with only Major Appliances Europe falling short. The
soft performance in Europe is primarily attributable to weak consumer
confidence, which is spreading throughout Europe and impacting appliance demand
in many of our important markets, such as Southern Europe, the Nordic countries
and Benelux.

The market situation in Europe is likely to get worse before it gets better and
we are minimizing the negative effect by launching new products and eliminating
costs. We are continuing to launch the next generation of high-end appliances
under the Electrolux brand for the European market. Together with AEG products
and the re-launch of Zanussi products for the mass-market segment, we will
deliver a highly competitive product offering in all segments for the entire
European market. Late last year, we announced our aim to further improve our
manufacturing footprint to remain cost competitive. In line with this strategy,
we today present a number of actions that will have a positive impact on the
European cost position going forward.

On a nine-month basis, Electrolux generated a sales growth of more than 10%,
almost equally divided between organic and acquired growth. We expect that
Electrolux will exceed its target for organic sales growth of 4% in 2012. It
would be the first time Electrolux achieved an organic growth of more than 4%
since 2005, when the appliance market in Europe and North America peaked. The
diversification of our revenue base through expansion in emerging markets as
well as through launches of new product innovations, which increased market
share in our core markets, is having a positive impact on Electrolux sales and
earnings growth.

Stockholm, October 22, 2012

Keith McLoughlin
President and Chief Executive Officer