Electrolux AB

In Sweden, we are masters of our own time. If we need, hmm, to enjoy a sunrise, we take five hours. With the market's only quick-select display, the Electrolux dishwasher lets you simply slide to the time you need while saving energy too. Electrolux. For better living. Designed in Sweden.

Welcome to Electrolux Group and the presentation of our Q1 report. I'm Ann-Sofie Jönsson, Head of Investor Relations and Sustainability Reporting. I'm here with our CEO, Jannick Föland, and Therese Friberg, our CFO. We will run through the presentation, and after that, we will open up for the Q&A. With that, I hand over to Jannick.

Thank you very much, Anne-Sophie, and good morning, good day to all of you. Very glad to be with you for this Q1 2026 report. We have been making some significant announcements last night. 2025 was the year of progress and strategic building. We are now executing this strategy. We have been announcing a series of initiatives I would like to remind you this morning. The first one is about a partnership we announced in the North American region with MIDEA. This partnership will be driving growth, We'll be driving better profit thanks to saving and share of CapEx. And certainly it will represent a very strong platform to move forward in this region. We have been announcing as well that we'll be optimizing our footprint and gaining efficiency across our organization. We are planning to expand in terms of product and geography moving forward. In order to finance these major initiatives and strengthen our balance sheet, we have been announcing a fully underwritten rights issue. Let me now deep dive into Q1. We had to face two very different realities. The first one was about Europe, Middle East and Africa, APAC and Latin America, where we have been delivering in this first quarter strong results, results which were significantly better than last year. On the other hand, North America has been declining significantly. The market has been down more than 10%. The food preservation business unit has been down more than 14% from a market perspective. In terms of operating margin, we have been delivering 198 million SEC, excluding non-recurring items. In the operating income, we have been including minus 463 million SEC due to the closure of our factory in Chile, in Santiago. We have been delivering in this first quarter 700 million SEC in terms of cost reduction, which is placing us well to deliver the year-end target, which is between 3.5 and 4 billion SEC. Let me now deep dive into Europe, Middle East and Africa, and APAC. strong quarter for this region. We have been once again gaining market share with our main brands, Electrolux and AG in a market which has been flat in this first quarter. We have been growing organically by 3.6%, delivering 4.1% of EBIT. This EBIT has been supported by strong delivery in terms of cost reduction. And yes, we have been investing in marketing in order to fuel all the innovation we have been launching in this first quarter. As I mentioned previously, the market was once again flat in this first quarter. Actually, it was flat in Western Europe, which represents 80% of the volume, and it was up 1% in Eastern Europe, with 20% of the volume in the market. The market was mainly replacement-driven. Once again, but if you look at this curve, it has been the lowest quarter in the 12 last year. We're in a 12 year low volume figure in Europe here. So if you take into account that a normal organic growth in this industry is 2 to 3 percent, we are down between 20 and 30 percent versus where we should be today. Now, as I said, we have been investing in marketing. We are dusting the Electrolux brand, and I'm very proud to show you one of our latest commercials.