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

Continued margin improvement
Electrolux operating income for the third quarter increased by more than 20%
compared to the same period previous year. Operating income reached SEK 1.8
billion, corresponding to a margin of 5.9% (4.8). Results improved in most
business areas, although Latin America continued to be impacted by weak market
demand.  Four of the Group’s six business areas achieved an operating margin of
above 7%. EMEA and North America continued to increase operating income and
margin. Moreover, the performance in Asia/Pacific was strong. Cash flow for the
Group continued the strong trend and was SEK 3 billion.

Higher sales volumes, better mix and cost efficiency contributed to Major
Appliances EMEA’s margin improvement in the quarter. The operating margin
reached 7.1%, which is the highest level for an individual quarter since 2010.
Electrolux continued to gain market share in focus categories and premium
brands. During the quarter, we introduced a range of new AEG branded products,
with solutions delivering the world’s most responsive kitchen experience, and
unprecedented care for fabrics. Market demand remained positive, although there
are signs of weakening in some markets in Western Europe, including the UK. We
confirm our expectations of European market demand growth of 2-4% in 2016,
however, likely in the lower end of the range.

Earnings in Major Appliances North America continued to improve in the quarter
and the margin increased to 7.4%. The result was positively impacted by improved
operational efficiency and lower raw material costs, which more than offset
continued price pressure. Sales volumes of core appliances under own brands
increased, whereas private label sales weakened, to a large extent driven by
channel inventory reductions. Market demand for core appliances was weak in the
first two months of the quarter, followed by a strong September, resulting in
unchanged market volumes for the quarter as a whole. We now expect market demand
for appliances in North America to grow by 3-4% in 2016.

Major Appliances Asia/Pacific posted strong organic growth in the quarter driven
by sales growth in Southeast Asia and a strong season for air-conditioning in
China. Electrolux development in the important Australian market was stable.
Operating income improved significantly with an operating margin of 8.3%. The
integration of the recently acquired wine cabinet company Vintec is proceeding
well. During the quarter, appliances under the AEG brand were introduced in the
Chinese market.

The macro-economic environment in Brazil and Argentina remained weak, which had
a negative impact on the financial performance in Major Appliances Latin
America. Price increases and cost reductions only partly compensated lower sales
volumes and a deterioration of the mix, impacting results negatively. We have
reinforced the ongoing measures to structurally adapt costs to the current
market environment.

The performance within Professional Products continued to improve at high
profitability levels. In Small Appliances, the program to restore profitability
made progress according to plan. Operating income includes costs related to the
continued refocusing of the business area, and the underlying operations showed
progress.

We are focused on achieving sustainable profitability in all our operations,
with the target to secure an operating margin over a business cycle of at least
6% as high priority. Through continued development of innovative products and
services delivering best-in-class consumer experiences for profitable growth, in
combination with cost productivity, we will continue to increase shareholder
value.
For further information, please contact:

Catarina Ihre, Vice President Investor Relations, +46 (0)8 738 60 87

Daniel Frykholm, Electrolux Press Hotline, +46 8 657 65 07.

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 October 28, 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