President and CEO Jonas Samuelson’s comments on the results for the second quarter 2016

Significant earnings improvement
Electrolux operating income for the second quarter increased significantly
compared to the same period previous year and amounted to SEK 1,564m. Of the
Group’s six business areas, four achieved an operating margin of above 6%. The
improvement was particularly strong in Major Appliances EMEA and Major
Appliances North America. Major Appliances Asia/Pacific and Professional
Products showed a stable development in earnings. Measures to restore
profitability within Small Appliances continued. A continued weak market
environment in Latin America impacted the performance in the region negatively.
Cash flow in the second quarter was at historically high levels and amounted to
SEK 4.1bn.

Earnings continued to improve within Major Appliances EMEA, driven by higher
sales volumes, positive contribution from product portfolio management and cost
efficiency measures. Electrolux continued to gain market share in our focus
categories and premium brands. The operating margin amounted to 6.4% in the
quarter. Market demand for appliances in Europe continued to grow, increasing by
4%. We now expect the European market demand to grow by 2-4% in 2016. Following
the Brexit referendum, the outlook for UK demand and the British Pound is
uncertain.

Positive contribution from the product mix and improved cost efficiency led to a
strong recovery in our North American operations, and our work to enhance
efficiencies in the production system is making progress. The operating margin
was 6.5% in the quarter. Market demand for core appliances increased by 3% in
the second quarter and 5% year-to-date. Sales of core appliances declined
somewhat, driven by products under private labels, while sales of products under
own brands increased. We expect market demand for appliances in North America to
grow by 4-5% in 2016.

Market demand for appliances in Latin America remained weak. Demand continued to
deteriorate in Brazil, and also Chile and Argentina contracted in the quarter.
Lower sales volumes and a deterioration of the mix impacted results negatively,
while price increases and cost reductions partly compensated for continued
currency headwinds. At current currency rates, the headwind is forecast to be
less significant in the second half of the year compared with the first half.
However, we expect the Latin American market to remain weak also in the second
half of 2016.

Earnings in Asia/Pacific improved 11% year-over-year. Growth continued at a
strong pace in Southeast Asia, partially offsetting the planned contraction in
China. This development contributed positively to the operating margin. In the
quarter, we announced the acquisition of Vintec, an Australia and Singapore
-based company which supplies a wide range of climate-controlled wine cabinets
throughout the region. Vintec has a good strategic fit with our major appliances
business and complements the product offering.

In Small Appliances, the work to restore profitability continued. Actions to
reposition operations and to exit unprofitable categories and markets continued
at a high pace. These measures will continue in the second half of the year.
Professional Products continued to generate stable operating results and margin.

The focus to achieve stability in all operations globally and to increase the
operating margin continues. These efforts will, together with the development of
innovative products delivering best-in-class consumer experiences, support cash
generation and shareholder value.
For further information, contact Daniel Frykholm, Electrolux Press Hotline, +46
8 657 65 07 or Catarina Ihre, Vice President Investor Relations +46 8 738 60 87

 This information is information that AB Electrolux is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, at 0800 CET on July 20, 2016.
Electrolux is a global leader in home appliances and appliances for professional
use, based on deep consumer insight. We offer thoughtfully designed, innovative
and sustainable solutions, developed in close collaboration with professional
users. The products include refrigerators, ovens, cookers, hobs, dishwashers,
washing machines, vacuum cleaners, air conditioners and small domestic
appliances. Under esteemed brands including Electrolux, AEG, Zanussi, Frigidaire
and Electrolux Grand Cuisine, the Group sells more than 60 million products to
customers in more than 150 markets every year. In 2015, Electrolux had sales of
SEK 124 billion and 58,000 employees. For more information go to
www.electroluxgroup.com