Annual and Sustainability Report 2023
Making our customers’ work-life easier,
more profitable – and truly sustainable every day
Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Contents
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Contents
The Annual Report for Electrolux Professional AB (publ) 556003-0354, consists of the Administration Report on pages 89–93, the Financial Statements and notes on pages 94–140, the Corporate Governance Report on pages 69–79,
Remuneration report on pages 80–81, and the Sustainability Report on pages 7, 48–66 and 149–161. The Annual Report is published in Swedish and English. The Swedish version is the original.
The ESEF report (European Single Electronic Format) is available at www.electroluxprofessionalgroup.com/corporate/annual-reports/
Electrolux Professional was part of Electrolux, founded in 1919, until March 23, 2020 when the shares of Electrolux Professional were distributed to the shareholders of Electrolux, and listed on Nasdaq Stockholm.
Introduction Our strategic foundation
Global trends
& our markets
Business
segments
Our people
Sustainability Governance
& risk management
Financial
information
Other information
This is Electrolux Professional
Group
1
The year in brief
2
2023 in figures
3
CEO comments
4
How we create value
7
Sustainable targets
8
Strategies
9
Global external trends
19
The global professional
equipment industry
20
Customers
21
Sales
23
Customer Care
24
Our markets
25
Marketing and brands
26
Food & Beverage
30
Laundry
35
Our People
45
Guiding principles
46
Engagement
and development
47
2023 activities
49
Our sustainability framework
50
Materiality assessment
52
Strategies and targets
53
Sustainable Development Goals
54
Sustainable solutions
55
Sustainable operations
58
Ethics and relationships
63
Chairman’s comments
68
Corporate governance report
69
Board of Directors
76
Group Management Team
78
Remuneration report 2023
80
Risk and risk management
82
Financial information,
contents
88
Administration report
89
Financial statements
94
Notes
102
The Board’s assurance
141
Auditor’s report
142
Seven years in summary
145
Definitions
147
Sustainability notes
149
Auditor’s report on
the sustainability report
162
Share & shareholders
164
Our history
168
Production
Operational excellence
40
Quality
43
Logistics
43
Purchasing
43
P. 1Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 This is Electrolux Professional Group
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
This is Electrolux Professional Group
Electrolux Professional Group is one of the leading global providers
of professional food, beverage, and laundry solutions, serving a wide
range of customers globally, from restaurants and hotels to healthcare,
educational, and other service facilities.
19 Business brands
To meet our market needs, we use a portfolio of distinct brands
with Electrolux Professional as our master brand, targeting different
customers and stakeholders in different geographies. This is a unique
constellation that is experience-focused and “heritage for the future”
minded – our way of seeing sustainable business development.
13
manufacturing units
in eight countries
Sales in approximately
110 countries
Headquarters in Stockholm,
Sweden
Approximately
4,300
employees
Listed on NASDAQ
Stockholm since
2020
Top-of-Industry
rating for Climate Change
by CDP
Sustainalytics rating
”low risk”
Climate targets approved
by SBTi
P. 2Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 The year in brief
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The year in brief
> Molteni, the brand of luxury professional stoves,
celebrated a century of master craftsmanship.
> All of Electrolux Professional Group’s US Food
and Beverage brands were displayed together
at NAFEM, a food service exhibition in the US.
> UNIC launched the TANGO XP line, a new range
of super-automatic, high-performing espresso
machines.
> The Group received a silver rating certification
from EcoVadis, a global provider of business
sustainability ratings.
> Q1 RESULT - Healthy market and improved
profitability.
> Annual General Meeting was held in Stockholm.
Josef Matosevic was appointed as a non-execu-
tive member of the Board of Directors.
> Following the EU Single-Use Plastics Directive
that aims to reduce global reliance on certain
single-use plastics, Electrolux Professional an-
nounced that it would partner with several multi-
national brands, including Coca-Cola and Max
Burgers in Sweden, in a unique ‘circular econo-
my’ initiative.
> Q2 RESULT – Another positive step towards our
financial targets.
> Electrolux Professional Group’s near-term
targets to reduce greenhouse gas emissions
(Scope 1 and 2) and indirect use-phase emis-
sions (Scope 3) by 2030 were validated by the
Science Based Targets initiative (SBTi).
> In Italy in October, we welcomed 350 customers
from 30 countries to "The Hive" - a customer
event showcasing our vision of a sustainable
future of the food service industry.
> Q3 RESULT – Somewhat weaker sales and
profitability while cash generation increased.
> In December 2023 we announced the acquisi-
tion of TOSEI Corporation, a leading Japanese
manufacturer of professional laundry equipment
and vacuum packing machines for food. The ac-
quisition closed in January 2024. TOSEI will make
us a larger player in the resilient laundry market
in Japan which constitutes the second largest
laundry market in the world.
> Q4 RESULT – Solid results, despite slightly
declining sales.
Q1 Q2 Q4Q3
Molteni - a century of master craftsmanship
2023 marked a century of master craftsmanship for Molteni, the Electrolux Professional Group
brand of luxury professional stoves, used by famous Michelin chefs all over the world.
Few brands in the sphere of professional cooking are as highly respected as Molteni.
Each Molteni stove is hand-crafted and assembled in our workshop in Saint-Vallier, in
the south of France.
Molteni stoves are at the heart of many of the world’s most renowned restaurants,
and they are a popular choice for luxury hotels globally.
P. 3Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 2023 in figures
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2023 in figures
SEK 11,848 m
Net sales, total
Food & Beverage
64%
Laundry
36%
Net sales by segment
Europe
61%
Asia-Pacific,
Middle East,
Africa
12%
Americas
27%
Net sales by region
Key ratios
SEKm 2023 2022 2021 2020 2019
Net sales 11,848 11,037 7,862 7,263 9,281
EBITA* 1,317 1,111 663 456 1,058
EBITA margin, %* 11.1 10.1 8.4 6.3 11.4
EBITA excl. items affecting comparability*¹ 1,317 1,146 663 533 1,090
EBITA margin excl. items affecting comparability, %*¹ 11.1 10.4 8.4 7.3 11.7
Operating income* 1,154 955 592 387 992
Operating margin, %* 9.7 8.7 7.5 5.3 10.7
Income after financial items 1,033 895 587 363 978
Income for the period 775 686 487 278 663
Earnings per share, SEK² 2.70 2.39 1.69 0.97 2.31
Operating cash flow after investments* 1,453 636 1,116 570 1,138
Operating working capital, % of net sales* 18.1 16.7 14.9 19.9 17.7
*) Alternative performance measures used in this report are explained on pages 147–148.
1) Includes items affecting comparability of SEK –32m in 2019, SEK –77m in 2020, and SEK –35m in 2022.
2) Basic number of outstanding shares.
Total net sales
SEKm
0
2,000
4,000
6,000
8,000
10,000
12,000
20232022202120202019
%
EBITA EBITA margin
EBITA and
EBITA margin
SEKm
0
300
600
900
1,200
1,500
20232022202120202019
0
5
10
15
20
25
Operating cash flow
after investments
SEKm
0
300
600
900
1,200
1,500
20232022202120202019
Base year
Climate target: reduce Scope 1 and 2 CO₂ emissions by 50% by 2025*
2023
Outcome
–50%
0
1,000
2,000
3,000
4,000
5,000
202320222021202020192018201720162015
CO2e emissions (tons)
*Includes contributions from acquisitions made 2015-2019. Unified brands, acquired in December 2021 is not included.
P. 4Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 CEO comments
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
CEO comments
Building a stronger company step by step
The results of our key activities clearly show that we have taken another step on the journey
towards our long-term goals this year. Organic sales grew by 2.6%, EBITA was the highest ever
with an EBITA margin that rose from from 10.1% to 11.1%, and cash flow was the strongest we’ve
seen, despite challenging macroeconomic circumstances. We expanded the group further with
the acquisition of TOSEI in Japan, which was completed in January 2024.
After more than two years of strong growth since the pandemic,
market growth is now back to more normalized levels. The only vis-
ible, enduring change in trends since the pandemic is the increase
in remote working and the decline in business travel, both of which
influence when and how we consume food away from the home.
However, the underlying long-term factors influencing growth in the
hospitality industry are robust and stable, creating the conditions for
continued global market growth.
Focusing on our strategic pillars
Electrolux Professional Group has improved its performance in
recent years, and we constantly strive to keep developing and
improving. Our strategic pillars support these efforts.
We continue to grow through innovation and launched several
important new products during the year. Within the fast-growing
espresso coffee market, we have launched a new range of fully-
automatic, high-performing espresso machines, the TANGO® XP line.
Another step we’ve taken - which also is part of our sustain-
ability ambitions - was the launch of our energy-efficient dryer
“HeroDry” which can quickly dry reusable packaging. Together with
our ware washing solutions the dryer will facilitate the reduction of
certain single-use plastics, and thus enable hospitality outlets to
realize their circular ambitions faster. To meet the needs for compact
solutions that increase productivity in the kitchen, we have launched
GourmeXpress. This high-speed oven includes a combination of
microwave, convection, and impingement allowing rapid cooking,
grilling, and reheating, making it particularly well-suited for restau-
rant chains.
Growth in restaurant chains is another strategic priority. In the US
this segment has been somewhat soft during the year. At the same
time, we have been burdened by changes in some of our represen-
tatives’ channel partners, even though this now should be behind
us. We have a strong US platform in Food & Beverage from which
we can grow profitably. This is important to us since the US is the
single largest market for Food & Beverage and it is home to most of
the large global food chains.
Customer Care is crucial to our customers’ uptime and is also
one of the most profitable parts of our business. I am therefore
pleased to report that Customer Care grew more than product sales
during the year.
We want to generate greater customer value faster, enabled by
the digitalization of our company and our products. To that end, we
continued to make significant investments in digitalization in 2023,
including connected products. We are in the midst of launching
our product and service offering for connected products (“OnE
Connected”), thereby improving our customers’ processes and
effectiveness. We continue to improve and roll out our digital
customer platform through which customers can more easily order
P. 5Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 CEO comments
Introduction
INTRODUCTION
Contents
This is Electrolux Professional Group
The year in brief
2023 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
products and services directly. Our digitalization efforts also include
adopting artificial intelligence where we already see opportunities,
both in our operations and in our products.
Acquisition of TOSEI widens our footprint
Another key element of our strategy is to grow through acquisitions,
and we have now carried out two relatively large acquisitions since
we became an independent company in 2020, adding approxi-
mately 20% to our turnover. We acquired Unified Brands in the US
in 2021, and in January 2024 we closed the acquistion of TOSEI
Corporation in Japan. Both acquisitions have helped us widen our
footprint.
TOSEI is a leading company in laundry and vacuum packing
machines. Through this acquisition we will become a larger player in
Japan, which is the second largest laundry market and third largest
food-service market globally. In addition, we will be able to expand
the vacuum packing products that are already used globally in the
fast-growing segment of sous-vide cooking.
2025 CO
2
target already met – new targets set
Electrolux Professional Group is the sustainability leader in our
industry. Our sustainability targets center on the climate, health &
safety, and diversity. Electrolux Professional Group is a signatory of
the UN Global Compact, and our sustainability work is based on the
United Nations Sustainable Development Goals. We fully recognize
the importance of taking action to mitigate climate change and we
support the ambitions of the Paris Agreement.
Our overarching, and ambitious, target is to become climate
neutral in our own operations by 2030. I am therefore happy to
report that as a step along the way, we have already been able to
meet our 2025 target to reduce CO
2
emissions (base year 2015) by
50% during 2023 – two years ahead of plan. Not only this, through
our steady focus on energy use and waste and emissions manage-
ment, we improved all key environmental indicators compared to
previous years.
Having achieved our target to reduce CO₂ emissions by 50%,
we have developed new, near-term sustainability targets over the
last year that have now also been validated by the Science Based
Targets initiative (SBTi). Our new science-based targets are to re-
duce Scope 1 and 2 emissions by 70% by 2030, and to reduce indi-
rect use-phase emissions of sold products by 27.5% by 2030, in both
cases from a 2019 base year.
For many years, Electrolux Professional Group has followed
its clear strategy to develop and provide energy-efficient and
low-consuming products. Our main climate impact – approximately
95% – occurs during the product-use phase, with the primary con-
tributor being product energy consumption. For that reason, setting
a target that is related to the use-phase emissions of sold products
is another important part of our Group’s climate journey. Reducing
energy consumption and emissions from the product-use phase is
beneficial for our customers’ running costs and the environment.
Step-by-step improvement
As we enter 2024, we will continue to improve our performance
step-by-step. Electrolux Professional Group has a profitable busi-
ness with a stable cash flow in stable markets. Our brands and
market positions are strong, and we have talented and committed
employees that are proud of our company and our innovative and
sustainable products. The customer-centric organizational structure
we launched in 2022 is also proving that it delivers customer value
and enhances employee engagement.
All this makes me confident in saying that Electrolux Professional
Group stands strong. We have the foundation we need to further
develop and build the company for the benefit of our customers,
shareholders, and employees.
Alberto Zanata,
President and CEO
Electrolux Professional Group has a profitable business
with a stable cash flow in stable markets. Our brands
and market positions are strong, and we have talented
and committed employees that are proud of our
company and our innovative and sustainable products.
Alberto Zanata, President and CEO
Alberto Zanata, President and CEO
P. 6Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our strategic foundation
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our strategic foundation
Our mission - making our customers’ work-life easier,
more profitable - and truly sustainable every day
Our business model – how we create value 7
Sustainable targets 8
Strategies 9
– Grow through innovation 10
–
Expand in high-margin products,
segments, and geographies 13
– Boost Customer Care 15
– Invest in digitalization 16
P. 7Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 How we create value
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
How we create value
> Product development
and innovation of smart products
offering sustainable solutions,
page 10.
> Marketing
focused on making our customers’ work-life
easier, more profitable and truly
sustainable, page 26.
> Sales
mainly through dealers and distributors,
page 23.
> Production
World-class manufacturing focused on low-
er environmental impact and an excellent
working environment, page 40.
> Customer Care
and sales of chemicals, accessories, spare
parts and consumables,
page 24.
> 4,300 committed employees,
page 45.
>
13 manufacturing sites,
page 42.
>
A wide range of customers in 110
countries, page 21.
>
Long-term relations with
stakeholders in our value chain,
page 52.
>
A strong portfolio of 19 different
brands – known for innovative, sus-
tainable, and digital solutions target-
ing different customers and stake-
holders in different geographies,
page 26.
>
Raw materials and components
page 43.
For our customers
>
Lower total costs over the lifecycle of
the equipment
>
Reduced energy consumption
and carbon footprint
>
Improved quality of the food,
beverage or laundry service
>
Ergonomic and human-centric design
>
Enhanced hygiene
page 55.
.
For our employees
>
A diverse and inclusive culture
>
A long-term employer
>
A safe work environment
>
Skills development
page 45.
For shareholders
> Share development
> Dividend
page 164.
For society
>
Greater resource efficiency
>
Address social challenges
Our businessOur resources
Value created
SEK 11,883 m
Distributed value
Employees SEK 2,434 m
Suppliers SEK 7,860 m
Society, taxes SEK 814 m
Reinvested SEK 775 m
Value created
P. 8Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainable targets
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Capital structure
Net debt/EBITDA ratio below
2.5x
Higher levels may be temporarily
acceptable in the event of acquisitions,
provided there is a clear path
to de-leveraging.
Profitability
EBITA margin of
15%
Net sales growth
Organic annual growth of more than
4%
over time, complemented by
value-accretive acquisitions.
Asset efficiency
Operating working capital below
15%
of net sales.
OUTCOME: 2023: 2.6% (16.9)
Comment on 2023 outcome
There was good growth in the first half
of the year, while sales declined in the
second half. The somewhat weaker sales
compared to target was mainly driven
by the US. Food & Beverage declined
by 1% and Laundry grew by 9.7%.
OUTCOME: 2023: 11.1% (10.1)
Comment on 2023 outcome
Profit and profitability took another step
forward, mainly driven by price, but also
lower material and transportation cost.
OUTCOME: 2023: 18.1% (16.7)
Comment on 2023 outcome
Operating working capital as a percent
of annulized net sales is still high, but it
improved during the second half of the
year, mainly due to a substantial reduc-
tion in inventory.
OUTCOME: 2023: 0.9 (1.5)
Comment on 2023 outcome
Cash flow has been very strong during
the year which made it possible to sig-
nificantly reduce borrowings.
Dividend policy
Electrolux Professional’s target is
for the dividend to correspond to
approximately 30% of the income
for the year. The timing, declaration,
and number of future dividends will
depend on the company’s financial
situation, earnings, capital require-
ments, and debt service obligations.
Comment on 2023 outcome
The Board proposes a dividend of SEK
0.80 (0.70) per share which is in line with
the dividend policy.
Sustainable targets
Climate target for 2025 Health and safety target for 2025 Gender diversity target for 2030
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>50%
by 2025 (base year 2015)
Lost time injury rate (LTIR)
As measured by work-related
accidents per 200,000 work hours
<0.3
by 2025
Gender diversity
Distribution men/women
or women/men
40/60
Distribution across managerial
positions by 2030
OUTCOME 2023:
The number of accidents resulting in lost
work time decreased, bringing us closer
to our target, at 0.54 (0.64).
Comment on 2023 outcome
We continued to address the root
causes of accidents, working proactively
with near misses and unsafe actions.
OUTCOME 2023:
The percentage of women in all
managerial positions was 27% (26).
Comment on 2023 outcome
Gender diversity across managerial
positions improved somewhat.. Activities
related to diversity and inclusion, such
as training and support to hiring man-
agers, have increased during the year.
OUTCOME 2023:
Scope 1 and 2 CO₂ emissions in 2023
amounted to 4.25 (6.2) kton, which is
-62%* compared to 2015 with a recalcu-
lated baseline**.
Comment on 2023 outcome
Strong focus on switching to renewable
energy, and full capacity generation of
renewable electricity in Rayong, made
it possible to reach the 2025 target two
years ahead of time.
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>70%
by 2030 (base year 2019)
Science-based climate targets for 2030
OUTCOME 2023:
With a recalculated** baseline, the
reduction since 2019 is 50%.
Comment on 2023 outcome
A solar panel subscription in the
Mississippi plant, a reduction in natural
gas consumption, and improved pro-
duction efficiency helped us reduce our
emissions.
Reduce indirect use-phase
emissions of sold products
Scope 3 emissions
>27.5%
by 2030 (base year 2019)
OUTCOME:
In 2022 (2023 result not yet avail-
able) Scope 3 emissions, Category 11,
amounted to 5,302 kton, which is a
16% reduction compared to 2019 with a
recalculated baseline**.
Comment on 2023 outcome
During 2023, we developed our Scope 3
product-use emission reduction target,
and it was validated, and approved by
the Science-Based Targets initiative. The
reduction of emissons was due to lower
volumes and grid emission improvement.
*Including Unified Brands, acquired in 2021.
** Recalculation is made by distributing the first reported
emission footprint backwards to previous years.
P. 9Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
GROW
through innovation.
Read more on page 10
EXPAND
in high-margin products,
segments, and geographies.
Read more on page 13.
BOOST
Customer Care and
service-as-a-solution.
Read more on page 15.
INVEST
In digitalization to unlock
additional customer value.
Read more on page 16.
1
2
3
4
Strategy for growth: generate customer value
from a foundation of operational excellence
Our strategic targets
Our strategy for growth rests on four pillars, built on a foundation of
operational excellence in the supply chain. In the following pages
we describe the core activities within each pillar.
P. 10Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
1
We want to set the pace of industry innovation in sustainability
and energy efficiency, underpinned by a connected and digital
platform.
We develop new and improved products and services to add value to our customers and
grow our company profitably. Our ambition is to address our customers’ increasing require-
ments for multi-functional products, with low running costs, and reduced energy and water
consumption. In addition, we will prioritize appliance digitalization.
Investments in R&D 2023
SEK 388 m
Annual average R&D expenditure
as a share of net sales 2019–2023
3.7%
GROW
through
innovation
P. 11Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Research and development
One of our key competitive advantages is our focus on developing sustain-
able and innovative products that cater to customers’ needs and increase
customer productivity and efficiency.
Significant investments in R&D
Electrolux Professional Group invests significant resources into its
global R&D activities. From 2019 to 2023 the company’s R&D
expenditure was an average of approximately 3.7% of net sales
per year. During 2023, our partnership with HCL Tech in India has
progressed, creating several R&D deliverables to support our
innovation process.
Growth through sustainable solutions
Offering our customers truly sustainable solutions is one of our key
strategies for growth. We aim to be a sustainability role model in
our industry and continously find new, more energy-efficient and
resource-efficient methods for food, beverage, and laundry profes-
sionals. As a result, not only do we help our customers to reduce
their operating costs, but we also have a substantial impact on
their sustainability efforts. As our main environmental impact occurs
during the product-use phase (energy, water, detergents), low-
consuming and energy-efficient products become key. Read more
on pages 12, 31 and 36.
Digitally connected products
Through digitally advanced and connected products, customers
can monitor and steer any connected products, thereby maximizing
uptime, improving service, and reducing the consumption of energy,
water and consumables. Read more on page 15.
OUTCOME 2023:
New products launched during the year include: Tango XP
a fully automated espresso coffee machine, Hero Dry, a
free-standing blower for food chains, and GourmeXpress
a high-speed oven. Most of the products manufactured in
2023 are connectable to be able to provide their users with
useful information. In addition, focus has been on develop-
ing products using less energy and water.
1
GourmeXpress High-Speed Oven
The GourmeXpress is part of the Electrolux Professional High-Speed
cooking portfolio of fast, easy, and versatile solutions. It allows cus-
tomers to serve high-quality products consistently and speedily, day
after day, and can be operated by any member of the team. The
GourmeXpress includes a combination of microwave, convection,
and impingement allowing rapid cooking, grilling, and reheating.
Grand Prix Du Design
gold award winner
In 2023, the GourmeXpress was
awarded a gold certification from
Grands Prix Du Design, an interna-
tional, well-respected competition.
TANGO XP super-automatic espresso line
The new TANGO XP is a complete line of high-
performing super-automatic coffee machines.
The range includes single and double
group models dedicated to coffee pro-
fessionals who want and expect premi-
um coffee extraction.
Winning innovative products
P. 12Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high-margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Growth through sustainable solutions
Low running costs are more important than ever
> Our energy-saving solutions are at the forefront of their field
> Vital in times of high electricity prices and greater climate concern
> Momentum for our energy-saving heroes
> Support our customers in moving towards a circular economy
Food:
Hero dryer freestanding blower
A unique ‘circular economy’ initiative that meets the EU Single-Use Plastics Directive
aimed at reducing global reliance on certain single-use plastics.
This blower is designed to reduce the amount of waste generated by single-use
consumables in hospitality outlets. Electrolux Professional is partnering with
several multinational fast-food chains in this area.
1
Laundry:
ClarusVibe control
Our newest and best-performing interface guaran-
tees an intuitive experience and seamless interac-
tion, providing smart, effortless management of the
wash process.
Capable
of drying up to
750
cups/hr
Laundry:
Intelligent dosing: the easy
and green automatic dosing
The Intelligent Dosing feature automatically adds
the precise amount of detergent based on the
weight of the load. Thanks to this feature, the right
amount of detergent, softner, and chemicals are
automatically dosed avoiding any waste and
providing the best results.
"Integrated
savings" to
avoid over-
or under-
loading
Avoids
waste, saves
water, and
guarantees
better care of
garments.
P. 13Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
We will grow sales organically in laundry and in restaurant chains,
supported by potential M&A.
Our growth priorities include:
> increasing sales to commercial restaurant chains – large companies
with multiple outlets across several regions – in order to expand our
presence in North America and emerging markets,
> further growing the highly profitable Laundry business globally, and
> accelerating growth through selective add-on acquisitions that clearly
align with the Group's strategic road-map.
EXPAND in high-margin products,
segments, and geographies
OUTCOME 2023:
Growth in restaurant chains has been somewhat weak this year, mainly
due to softening sales in the US. However, several product tests are cur-
rently being carried out for restaurant chains, which often leads to new
roll-outs. At the same time, sales of the high-margin laundry products
have developed very well during the year, contributing to profitability.
2
0
5
10
15
20
25
2023202220212020
Chains, Food & Beverage, sales in % of net sales
%
P. 14Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Acquisitions to accelerate growth
Previous acquisitions include UNIC – a French producer of profes-
sional coffee solutions in 2019, Grindmaster-Cecilware – a North-
American coffee solutions producer in 2017, and in 2018 SPM Drink
Systems, an Italian manufacturer of frozen beverage equipment.
Veetsan, a manufacturer of professional dishwashers in China, was
acquired in 2015, and in 2018 we acquired Schneidereit, a supplier
of laundry rental solutions in Europe.
2
Electrolux Professional Group aims to accelerate growth through selective add-on acquisitions,
primarily acquisition targets that clearly align with our strategic roadmap.
2024 - TOSEI Corporation
In early 2024, Electrolux Professional Group acquired TOSEI
Corporation (“TOSEI”) – a leading Japanese manufacturer of pro-
fessional laundry equipment and vacuum packing machines for
food. The acquistion was closed in January 2024.
The acquisition is part of Electrolux Professional’s strategy to
further accelerate growth and enhance our presence globally. With
this acqusition, Electrolux Professional became a larger player in
Japan, which is the second largest laundry market and third largest
food-service market globally. The move widens the geograph-
ical presence of the Group and increases the size of Electrolux
Professional’s high-margin, resilient, global Laundry business. In
addition, the acquisition presents opportunities to expand the vac-
uum packing products that are used globally in the fast-growing
segment of sous-vide cooking, to other markets for vacuum packing
products outside Japan.
Electrolux Professional will be able to benefit from TOSEI’s
leading position in Food to expand in Japan, which is a large
market characterized by local players. TOSEI has a long history
(it was founded in 1950), robust brands, and strong reputation in
the marketplace, making it a high-quality platform for Electrolux
Professional's strategy deployment. Following the acquisition, ap-
proximately 70% of TOSEI will be reported as part of Electrolux
Professional’s Laundry segment, and approximately 30% of TOSEI
will come under the Food & Beverage segment.
TOSEI's main brands
TOSEI offers washers, dryers, combined washers and dryers, and
table-top and stationary vacuum packing machines under the main
brands TOSEI and TOSPACK.
About TOSEI Corporation
> TOSEI was founded in 1950 and is
a leading manufacturer of profes-
sional laundry and vacuum-packing
equipment in Japan.
> TOSEI has 340 employees who de-
velop, design, manufacture, and ser-
vice products. The company's head
office is in Tokyo and the factory is
in Izunokuni, Shizuoka. TOSEI has six
regional sales offices in Japan.
> TOSEI's annual sales were approx-
imately SEK 930m in 2023, approx-
imatley 70% of which is from pro-
fessional laundry and 30% from the
vacuum packing business.
In late 2021, Electrolux Professional acquired Unified Brands, a
leading US-based manufacturer of food-service equipment. The
acquisition significantly strengthened Electrolux Professional’s pres-
ence in the US and supports our focus on growth in food service
chains.
TOSEI professional laundry products
Washing machines, dryers, steamers,
coin-op washers and dryers, and a cash-
less laundromat payment system.
TOSEI vaccuum-packing
and cooking products
Small desktop vacuum-type machines
for the food business and large stationary
vacuum solutions for industrial use.
P. 15Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
We will further develop our global service network and competence as
a full-service provider while increasing sales of spare parts, accessories,
consumables, and service.
Our market is characterized by the heavy use of machines,
and a large replacement business. This requires us to have a
reliable and geographically well-distributed Customer Care
service that can support our customers throughout the life of
the product, which also ensures customer retention. We also
offer spare parts kits and performance-enhancing consum-
ables, and provide our customers remote guidance.
Sales of
Customer Care 2023
18.3%
Electrolux Professional Group
provides Customer Care via
2,200
service partners
BOOST Customer Care
and service-as-a-solution
offering
OUTCOME 2023:
Sales of Customer Care increased by approx-
imately 6% in 2023 and now accounts for ap-
proximately 18% of Group sales. Sales of service
contracts and detergents progressed well.
Customer care share of net sales
%
0
5
10
15
20
20232022202120202019
Post-service
recommendations
Spare parts
Preventive
maintenance
Repairs
End-of-life replacement
Accessories and
consumables
3
P. 16Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
We will accelerate the digitalization of our company and our products.
We have enhanced our global product and service offering, providing online
sales through the digital Customer platform and connected appliances. These
digital advancements enable us to help customers improve their processes
and effectiveness. Our digital offering can strengthen our market presence,
and our existing customer relationships create an opportunity for repurchases
and additional services. We are also automating our internal processes to
become more efficient and to provide better service to our customers.
Distributors'
online orders
65%
INVEST in digitalization to unlock
additional customer value
Connected appliance
of the future installations
50%
OUTCOME 2023:
We are currently launching "OnE Connected" which enables our customers
to digitally connect their products. Electrolux Professional thus becomes the
systems integrator for the operations of our customers. Our digital platform
has been launched in several countries to make it easier for customers to
order our products. 80% of orders in these countries now take place through
the digital platform.
Digital customer
interactions
50%
4
Our digital vision for 2024
P. 17Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy for growth
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
How we create value
Sustainable targets
Strategy for growth
– Grow through innovation
– Expand in high margin products,
segments, and geographies
– Boost Customer Care
– Invest in digitalization
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Digitalization of our industry
Electrolux Professional Group's global product and service offering encompasses single and
full solutions and services across Food, Beverage and Laundry. This allows our customers to
manage their operations through connectivity and a digital ecosystem.
Digital Customer Platform
The Digital Customer Platform is a seamless, self-service, one-stop
shop designed for our customers. From the portal, partners and
distributors can place orders for products, consumables, and spare
parts, track shipments in real time, search for documentation or
products, and digitally interact with us for all manner of support,
and cases are monitored through a ticketing system. The main plat-
form benefits are:
> Easy ordering of products and parts
> Tracking of shipments and support cases
> Customer insights into their business data
> Access 24/7
> Reduced number of support requests
> Improved communication through one single tool tomanage
the customer relationship
> Increased future sales
Connected appliances
Through our Connectivity offer, our customers monitor and steer
their connected products, thereby maximizing uptime, improving
service, and reducing the consumption of energy, water, and con-
sumables. This means that customers are offered better insights into
their equipment, and we can create an ongoing relationship with
customers throughout their equipment lifecycle, thereby supporting
them in their needs for repurchases and additional services.
Order value, manual
versus digital, 2023*
80% digital20% manual
Number of orders, manual
versus digital, 2023*
60% digital40% manual
* Orders to onboarded partners and distributors in the
countries where the platform has been launched.
4
Digital customer
platform deployed in
32
countries so far
P. 18Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Global trends and our markets
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Global trends and our markets
Global trends impacting our industry 19
The global professional equipment industry 20
Customers 21
Sales 23
Customer Care 24
Our markets 25
Marketing and brands 26
P. 19Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Global trends impacting our industry
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Global trends impacting our industry
Climate change and
effective use of resources
Climate change and a shortage of water, energy, and other re-
sources has created a need for sustainability and energy efficiency
in all parts of society. Since energy costs are a significant part of the
total cost of ownership, energy efficiency in professional solutions
is central to any investment decision. This is also driving the switch
to products that use electricity rather than gas. The ability to share
products is rising in importance as a way to facilitate more efficient
use of resources. In addition, a ban on the single use of plastic
packaging will be introduced in several markets, and the move to
reduce microplastics is becoming more prominent.
Increased demand for take-away
and home-deliveries
With the post-pandemic new normal, including the normal-
ization of hybrid work, there has been an increase in drive-
throughs, take-away, home-deliveries, and outdoor serving
in restaurants. This calls for new digital tools, smaller and
more user-friendly equipment, machines that are easier to
clean with stricter hygiene requirements, and new ways of
working in the industry.
Labor availability
There is still a shortage of labor in the hospitality industry
which drives the cost of labor up. This is accelerating autom-
atization and digitalization as there is a need to ensure high
productivity with fewer employees. At the same time, ease of
use and ergonomics are increasingly important to the users
of the products.
Digitalization
Digitalization and artificial intelligence affect the way we work
and interact, and are changing the eco-system of our custom-
ers’ businesses. There will be greater demand for connected
solutions, contactless payment, process optimization, and effi-
ciency driven by new technologies, which in turn requires future
investments and knowledge. Potential access to customer data
will enable this development.
Societal changes
An increase in workforce participation, the prolongation
of the working age, and higher disposable incomes allow
more people to spend more money on leisure activities such
as out-of-home eating, and less time on household chores.
There is consequently more demand for out-of-home profes-
sional services.
In addition, the aging of the population will lead to
greater investments in the healthcare segment, such as
hospitals and elderly homes.
The growth of the middle class and urbanization leads to
an increased number of potential end-customers, demand
for out-of-home food and beverage consumption, and other
application areas for professional equipment.
P. 20Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 The global professional equipment industry
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The global professional equipment industry
Electrolux Professional Group operates in the global professional equipment industry,
offering food service, beverage, and laundry products and solutions to a wide range
of customers. These include companies in the global hospitality industry as well as
other businesses and institutions.
In 2023, the food and beverage segment accounted for approxi-
mately USD 31bn* of the global market, and the professional
laundry segment accounted for USD 2.9bn*.
The industry is largely characterized by:
> Favorable general end-market trends with multiple catalysts
for structural growth.
> Product performance having a material impact on customer
productivity.
> The requirement for reliable and technologically advanced
products.
> Significant benefits from local presence and collaboration
with customers.
> Ongoing Customer Care and support through the equipment
lifecycle.
Major factors for success include
> Strong innovation capabilities
> Reliability and product quality
> Product design
> A well-developed distribution and service network
> Brand recognition
> Customer relationships as a key differentiating factor
Total cost of ownership
Total cost of ownership is an additional factor that drives com-
petition. This is because the initial equipment cost represents only
a fraction of the total cost of ownership during the lifetime of the
equipment. The majority of the costs are running costs for water,
electricity, and chemicals, maintenance costs, and health and safety
considerations. Reduced running costs are also a driver for custom-
ers wishing to make a positive contribution to the environment.
Competitive landscape
Electrolux Professional Group is one of the leading global players,
with a complete offering for both the food and beverage sector
and the global laundry equipment market. There are a number of
large global players in these markets but in local markets, we also
compete with significant local players and companies focused on
individual product lines.
* Own company estimates
The 6 largest professional food
and beverage equipment companies
Compan 1
Company 4
Company 3
Electrolux Professional Group
Company 2
Smaller companies
Company 5
USD 31bn*
The 6 largest
laundry companies
Company 1
Company 5
Company 4
Electrolux
Professional
Group
Company 3
Company 6
Smaller companies
USD 2.9bn*
End customers
> Restaurants and chains
> Hotels, bars, and cafés
> Roasters and ingredient producers
> Education, leisure, and sports
> Public institutions
> Business, transport, industry, and facility
managers
> Coin and apartment building laundries
> Care facilities and hospitals
> Retail and convenience stores
Food & Beverage
> Ali Group/
Welbilt
> Hoshizaki
> ITW
> Middleby
> Rational
Laundry
> Alliance
> Girbau
> Jensen
> Kannegiesser
> Miele Pro
Largest global players
Products
> Food service applications: cooking,
refrigeration, dishwashing, and dynamic
food preparation
> Beverage equipment for coffee, espres-
so, hot, cold and frozen beverages, and
soft-drink dispensing equipment
> Laundry products: washers, tumble
dryers, drying cabinets, and ironers
> Specialty accessories and consum-
ables
Market and competition
P. 21Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Customers
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Customers
Our end-customer base consists of large multinational, regional, chain, and
independent restaurants, catering providers, leisure and accommodation
facilities, healthcare facilities, customer-operated laundries, schools and
universities, as well as small businesses and large industrial customers.
HotelsRestaurants
Food
Distribution
Care
Restaurant chains Bars & Cafés
Self-Service
Laundries
Commercial
Laundries
Public
Institutions
Business,
Transport &
Industry
P. 22Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Customers
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Distribution per customer segment*
Consumer and customer operated laundries 18%
9% Hospitals and elderly homes
Restaurants 13%
Business, Industry and Transport 8%
Public institutions 8%
Restaurant chains 13%
2% Others
Hotels 13%
Bars and cafes 4%
Retail and convenience stores 6%
Laundry
Commercial laundries 6%
*Figures are partially estimates since Electrolux Professional
do not always have information about the end customer.
Food & Beverage and Laundry Food & Beverage
Long-standing relationships
As a food, beverage, and laundry equipment provider we generally
maintain long-standing relationships with our key customers and
distributors in order to increase our wallet share and overall growth.
Close customer relationships are particularly important for chains
in the food and beverage businesses. Read more about Customer
Care on page 24.
Customers
Our customer base is diverse, from small independent owners to
large chains. We also have many customers in elderly care homes,
government and private healthcare facilities, multi-housing laun-
dries, and coin-ops.
Large chain contracts
Even though we generally do not enter into long-term contracts,
large food-service chains usually authorize specific appliance
manufacturers as their “preferred vendors” for specific equipment.
Furthermore, many quick-service restaurant chains launch or refur-
bish a larger number of locations, or frequently change their menus,
requiring significant investments in new equipment over a relatively
short period of time.
Customers regularly require appliance upgrades. These allow
them to increase productivity and food safety, reduce labor costs,
and respond to hygiene, sustainability, and energy-efficiency trends.
These upgrades usually require customized equipment as customers
additionally endeavor to differentiate their offerings and services.
Individual needs and innovation
Individualization and equipment innovation are primary purchase
decision factors for the customer, making product innovation essen-
tial, and one of the key differentiators and competitive advantages
of Electrolux Professional Group's brands.
Our substantial investments in research and development drive
the production of innovative equipment and ensure the Group is
well positioned to serve its global customer base. Read more about
R&D on page 11.
Electrolux Professional Group has a diverse base of customers ranging from cafés to launderettes, restaurant chains and institutions.
Addressing customer needs
> Simplification, faster speed, and flexibility of overall
operations
> Improved quality of the food, beverage, and laundry service
> Reduced energy consumption and carbon footprint
> Lower total cost throughout the lifecycle of the equipment
> Handling post-pandemic labor shortages
> Reliability of the equipment
> Ergonomic and human-centric design
> Enhanced hygiene requirements
P. 23Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sales
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sales
Our products are mainly sold through a global network of dealers and distributors, but also directly to
end customers. The majority of the products sold are replacement products, meaning the end customer only
buys one or a few products to replace existing products. The rest of the sales is mainly comprised of Project
sales defined as full installations such as a launderette or a fully equipped restaurant kitchen that needs a
complete refurbishment, as well as new builds.
Sales via dealers/distributors
A distributor or dealer buys our ready-made products without any
specific customer specifications. We aim to to keep track of the
products through the dealers or through our service-partners who
perform installations, commissioning, warranty activation, service,
and maintenance. The distributors/dealers sell the solutions to end
customers (such as restaurant chains or launderettes).
Customized products via dealers/distributors
The end customer deals directly with us regarding their product
requirements. If needed, we customize their products and agree
on pricing. This can be for single products or full projects. The end
customer places the order with a distributor or dealer who in turn
orders the products from us.
Direct sales to end users
We talk to the end customers and agree on specifications and
pricing and we invoice the end customers. This sales process is used
in specific countries, for some large customers, or for large projects
where the distribution infrastructure is not well developed.
Digital sales
Our dealers and distributors can also place orders on our digital
customer platform, a customer portal combining e-commerce, ser-
vice digitization, and connectivity, now launched in 32 countries. It
is a seamless, one-stop, self-service way for customers to interact
with us. From this self-service portal, partners can place orders for
products, consumables and spare parts, track shipments in real
time, search for documentation or products, and digitally interact
with us on any support case, which can be monitored through a
ticketing system. In addition, they can see the status and use of their
connected products.
Channels to market - Food & Beverage
Our products are normally sold in three different ways:
Direct sales
Electrolux Professional
Group
Independent reps.
(only in the US)
Dealers
Distributors
Independent
Institutional
Chains
SERVICE / CUSTOMER CARE CHANNEL
Spare parts, Accessories
and Consumables
P. 24Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Customer Care
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Customer Care
To maintain the highest customer experience throughout the ownership period of
professional equipment, Customer Care assists customers with support services
and products throughout the entire lifetime of customer ownership.
Electrolux Professional Group offers Customer Care in more than 110
countries via 2,200 service partners in a hybrid model of our own
service technicians and contracted service partners.
Essentia - the heart of Customer Care
Our Customer Care services are brought to mar-
ket under a differentiated portfolio – Essentia.
The Essentia service offering is built on the
basis that the Original Equipment Manufacturer
is best suited to understand and handle require-
ments for supporting the efficiency and long life
of its own equipment. By offering sustainable
upgrade solutions to the marketplace we also
ensure that the initial customer investment in our
products endures for a longer time.
Two Pairs of Eyes
Through Two Pairs of Eyes, we provide our customers remote guid-
ance with a seamless connection between their field service engi-
neers and our technical experts.
Service Network
2,200 authorized service partners provide a unique service network
to make our customers’ work-life easier, supported by a full range of
original spare parts and digitally augmented tools to ensure faster
troubleshooting and issue resolution.
Service Agreements
Choice of flexible, tailor-made packages, based on the
customer’s business needs, offering a variety of maintenance
and support services throughout the customer ownership
lifetime.
Detergents
Performance-enhancing consumables, including eco-certi-
fied detergents, are developed and sold under the Electrolux
Professional brand. A low environmental impact is ensured
through reduced water pollution, waste production, and
energy consumption compared to standard products on the
market.
Spare parts and maintenance kits
Maintenance and spare parts kits contain all the preventive
maintenance parts to service the equipment according to
the maintenance schedule under normal usage conditions. In
addition, refresher kits are provided to lengthen the service
life of our equipment.
Original Accessories & Consumables
Quick dispatch of original accessories and consumables
rigorously tested by our experts to ensure durability and
performance of customer equipment.
P. 25Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our markets
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our markets
Well-positioned in attractive markets
Electrolux Professional Group's two reportable
segments Food & Beverage and Laundry in-
cludes five business areas focused on customer
categories and geographies: Food Europe, Food
Americas, Food APAC & MEA, Beverage & Food
Preparation, and Laundry.
Europe
In Europe, we have 24 sales companies across the continent. The
largest countries are Italy, France, Sweden, and Germany.
80% of sales are handled via distributors and agents. 20% of
sales are served by our own sales organizations, mainly via key
accounts and large projects.
Our business priority is to leverage our strong market presence in
Europe, to continue to grow both in the markets where we are well
positioned, and in the markets where we see additional opportuni-
ties for growth, such as in the UK, France and Germany.
Americas
In the Americas, large chain accounts, including our main distrib-
utor within Laundry, are served through a direct-sales team while
the broad institutional markets such as schools, healthcare, insti-
tutions, and restaurants, are served through independent sales
representatives working in partnership with dealers and consultants.
Additionally, there is a network of distributors across the Americas
selling and stocking products locally for quick shipments.
Asia-Pacific, Middle East and Africa
We have sales companies in ten countries in the region. The major-
ity of sales are handled via an indirect distribution network, supple-
mented by some of our own sales activities when needed. After the
acquisition of TOSEI in January 2024, Japan is our largest market in
this region.
AMERICAS
Well-positioned in Food, Laundry,
and Cold Beverages in the US.
Share of Group sales, 2023
27%
EUROPE
One of the leaders in Food,
Beverage and Laundry, with strong
brand recognition.
Share of Group sales, 2023
61%
APAC
One of the leaders in Laundry and in Food &
Beverage in China/South-east Asia with strong
brand recognition in hotels and restaurant seg-
ments in the whole APAC region.
MIDDLE EAST AND AFRICA
One of the leaders in Food with strong brand
recognition in hotels and restaurant segments.
Share of Group sales, 2023
12%
P. 26Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Marketing and brands
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Marketing and brands
In order to meet the needs of the market, Electrolux Professional Group holds
a portfolio of 19 distinct brands targeting diverse customers in different parts
of the world. Electrolux Professional is our largest brand.
Tailored marketing strategy backed by global strength
Our marketing is tailored to each geography and distribution chan-
nel. Promoting and strengthening the Electrolux Professional Group's
brands and reputation through a targeted marketing strategy, com-
plemented by a structured sales process and organization, is key to
our success.
Marketing initiatives include marketing automation, performance
and brand building via a 360-degree approach and omni-channel
execution, collaboration with schools and industry associations,
cooperative distributor merchandising, digital marketing, and
marketing at industry events.
Brands
Electrolux Professional Group is our corporate brand which we
use when presenting the company to external stakeholders. The
main business brand (“master brand”) of the Group is Electrolux
Professional, which includes all categories within Laundry, Food,
and Beverage.
Electrolux Professional is our master brand
With our master brand, Electrolux Professional, we provide a
global product and service offering consisting of integrated
solutions and services across Food, Beverage, and Laundry –
under one brand – allowing customers to manage their oper-
ations through connectivity and one digital ecosystem.
This also includes management of the entire value chain,
from project planning and design to production, installation,
Customer Care, and service.
In addition to our master brand, we have specialty brands to
gain access to specific markets and categories. These are locally
managed brands that have high brand awareness and legacy
amongst customers in the local markets and channels.
The Electrolux Professional Group brand
The corporate brand Electrolux
Professional Group has been intro-
duced to clarify the roles of Electrolux
Professional as both a company and
a business brand. This will also sup-
port the development of the other brands in the Group.
The majority of sales remain under the Electrolux Professional
brand, with its integrated portfolio of products and services across
all categories. The other brands can add the tagline “part of
Electrolux Professional Group” to benefit from being part of a larger
Group. At the same time the corporate brand distinguishes the com-
pany (Electrolux Professional Group) from the main business brand
(Electrolux Professional).
P. 27Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Marketing and brands
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The Master brand of the Group
- the OnE trusted partner
For single and full solutions – in Food, Bever-
age, and Laundry. Electrolux Professional is
the OnE trusted partner making your work-life
easier, more profitable – and truly sustainable
every day.
Categories: All categories, full solution
Segment: The master brand is approximately
50% of the company sales
Geographical market: North America, Latin
America, Europe, APMEA
Your one and only
Craftsmanship and bespoke detail are the
hallmarks of Molteni. Each stove is a timeless
masterpiece, handmade and tailor-made
by expert artisans in our atelier to meet the
customer's precise requirements.
Categories: High-end Cooking
Segment: Food
Geographical market: North America, Latin
America, Europe, APMEA
Design that celebrates
Italian cooking heritage
Our products bring you know-how. Zanussi
Professional – The reliable best friend for your
kitchen solutions.
Categories: Cooking, Dishwashing,
Refrigeration
Segment: Food
Geographical market: Latin America, Europe,
APMEA
Born to last – since 1907
We help our customers build a reputation for
great, healthy food by building equipment
that stands the test of time. Not only does our
equipment handle the rigors of commercial
kitchens, but it also offers the industry’s most
comprehensive, free onboarding program.
Categories: Cooking
Segment: Food
Geographical market: North America
Reach the next level
of food quality and consistency with CapKold
sous-vide & cook-chill systems.
Categories: Cook/Chill
Segment: Food
Geographical market: North America
Your fresh experience
Whether customers want to peel, cut, slice,
mince, mix, blend, knead, or whip – Dito
Sama provides the desired output in less time.
Categories: Food Preparation
Segment: Food
Geographical market: Europe, APMEA
The dishwashing PROFESSIONAL
Good value for money, reliable, trustworthy,
honest, straight-forward, credible, account-
able, multi-cultural.
Categories: Dishwashing
Segment: Food
Geographical market: North America,
Europe, APMEA
A deeper clean - always
We are worldwide leaders in continuous mo-
tion washing. From produce to wares, we en-
sure proper sanitation, while helping reduce
food and labor costs to achieve a positive
ROI and a more sustainable future.
Categories: Ware and vegetable washing
Segment: Food
Geographical market: North America
Your perfect fit
Simply the best fitting, high-performing re-
frigeration for your specific kitchen. Whether
you need ready-made, custom, or anything
in-between, you can count on Randell when
you need it most.
Categories: Refrigeration/Preparation
Segment: Food
Geographical market: North America
Expertise and experience with respect for
the environment
For over 40 years Alpeninox has preserved
the heart of your kitchen, the food, with ex-
pertise and experience. Alpeninox is the ideal
solution for all refrigeration.
Categories: Refrigeration
Segment: Food
Geographical market: Europe
Synonymous with quality and performance
Kelvinator Commercial delivers a line of
food service refrigerators and freezers for
the Professional market, designed to provide
years of trouble-free service in demanding
commercial applications.
Categories: Refrigeration
Segment: Food
Geographical market: North America
Who we are
Electrolux Professional Group is one of the
leading global providers of professional food,
beverage, and laundry solutions.
19 trustworthy brands
In order to meet the needs of our markets,
we use a portfolio of distinct brands, target-
ing different customers and stakeholders in
different geographies.
P. 28Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Marketing and brands
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends impacting our industry
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Unique in coffee, since 1919
Uniquely crafting the evolution of custom-
and service-fit coffee machines – since 1919.
By transforming the Unic technology into the
perfect cup of coffee time after time, we are
making every customer location a unique
place to go and to grow.
Categories: Espresso, Bean-to-Cup
Segment: Beverage
Geographical market: North America,
Europe, APMEA
The Cool-To-Go experts in innovative
beverage systems
Feel our passion and savor the ultimate
chilling experience thanks to our cold
beverage dispensers. Whether you want
a straightforward solution or the most
advanced technology, our drink systems
deliver the perfect pour every time.
Categories: Cold Beverages, Slush Ice,
Ice Cream
Segment: Beverage
Geographical market: North America,
Latin America, APMEA
Passionately designed beverage dispensers
SPM, a front-runner in designing and man-
ufacturing premium professional beverage
equipment, from slush machines to soft-serve
machines and hot beverage dispensers.
Categories: Cold Beverages, Slush Ice,
Ice Cream
Segment: Beverage
Geographical market: Latin America, Europe
Built to last since 1955
Wascomat has earned its reputation through
60 years of reliability and solid performance
in Laundry. Technologically advanced
with relevant features, Wascomat is a solid
investment when replacing old equipment or
building a new business focused on long-
term profitability.
Categories: Laundry
Segment: Laundry
Geographical market: North America
A partner you can rely on
Innovation leader with more than 60 years
of knowledge in the field of commercial
washing and drying technology, Schneidereit
Professional is responsible for the process
reliability and optimal hygiene standards of
our customers.
Categories: Laundry
Segment: Laundry
Geographical market: Europe
Smart Japanese technology
creates technologies for life
TOSEI's laundromat equipment line-up
continues to evolve delivering even greater
convenience.
Categories: Washers and dryers
Segment: Laundry
Geographical market: Japan
The TOSEI acquisition was completed in
2024.
TOSPACK's line-up of vacuum packing
machines is great for food preservation and
is actively used in industry.
Categories: Vacuum packing machines such
as table-top, stationary, and fully automatic.
Segment: Food
Geographical market: Japan
The TOSEI acquisition was completed in
2024.
Increase efficiency, safety, and performance
in your commercial kitchen with Avtec
ventilation systems, conveyors, and utility dis-
tribution solutions. Avtec delivers outstanding
commercial ventilation equipment for the
professional food-service industry.
Categories: Ventilation systems, conveyors,
and utility distribution solutions
Segment: Food
Geographical market: North America
P. 29Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Business segments
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Business segments
Food & Beverage 30
Laundry 35
P. 30Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Food & Beverage
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Food & Beverage
Food & Beverage operates in the global professional equipment industry,
offering food-service and beverage equipment and solutions to a wide range
of customers, such as hotels, restaurants, retail points, schools, and hospitals.
64%
Food & Beverage, share of Group net sales
P. 31Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Food & Beverage
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainable food and beverage solutions
The future of the planet relies on our ability to create smart solutions that use resources
efficiently. Our solutions ensure that our customers can concentrate on their business,
knowing they are doing everything in the most sustainable way.
HeroDry free-standing dishwasher
blower
This is the ideal solution for the
washing area. It supports customers
who need to conform comply with
international directives targeting
a reduction in single-use consum-
ables. Internal tests performed in
our R&D laboratory comparing the
average standard programs com-
mon in the market with the eco cy-
cle program in HeroDry, show that
the HeroDry solution saves up to
60% in energy consumption.
ecostoreHP Premium
This solution reduces electricity con-
sumption significantly. The Electrolux
Professional ecostoreHP Premium
refrigerated counter has an A-rated
energy label, is climate class 5, and
consumes just 560 kWh per year.
Zanussi magistar oven series –
consumption under control
The Zanussi Magistar Combi ovens
give customers a graphic display of
water, gas, and electricity consump-
tion, so they can keep an eye on
progress in real time and schedule
cooking in a more responsible way.
The Cooking Optimizer is a new
logical function that uses artificial
intelligence to provide a set of op-
tions for different dishes. This allows
the oven to offer the most logical
cooking sequence in order to opti-
mize energy consumption while also
saving time.
SP Ultra sherbet and frozen ice
cream dispenser
The dispenser is built with patented
(EP2680708 and related family)
I-Tank technology which saves
energy, improves cooling power,
minimizes the effect of the external
temperature on the product, and
prevents the accumulation of ice
or condensation on the outside of
the bowl. R290 gas reduces the dis-
penser's environmental impact
and has a less aggressive effect on
components compared to tradi-
tional gas. The solution is sold both
under the Electrolux Professional
brand, and from SPM.
P. 32Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Food & Beverage
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Organization
Food & Beverage is divided into four business areas: Food Europe,
Food Americas, Food APAC & MEA, and Beverage & Food
Preparation.
Market size and growth
The total market for food and beverage equipment in 2023 is
estimated at approximately USD 31bn*. According to our estimates,
the food service and beverage segment experienced a compound
annual growth rate of around 3–4% from 2015 to 2019 before the
pandemic, with growth in beverage being slightly stronger than
food service.
In 2022, as in 2021, the food and beverage market increased
substantially after a decline of approximately 25% during 2020 due
to the pandemic, which affected the hospitality industry heavily. In
terms of sales, the global market returned to pre-pandemic levels
during 2022, and 2023 demonstrated relatively good market growth.
Besides this strong growth after the pandemic, growth has been
affected by the push for energy efficiency, an increase in food safe-
ty, environmental and food waste requirements, a focus on healthy
products and menus, the drive for automation and workforce
optimization, product innovation, and the rising importance of
data management and digitalization.
Our sales of food and beverage equipment largely depend on
the level of our customers’ capital expenditure for new equipment,
as well as expenditure related to appliance maintenance, refurbish-
ment, and overhaul.
Food
The food market is seeing an increasing demand for more versatile
food preparation equipment that can prepare a larger variety of
meals.
This is mainly due to a reduction in kitchen space and an
increase in menu variety. Also, restaurant owners are looking to
reduce the number of pieces of equipment used for daily opera-
tions, thus requiring versatile machines.
Recent years' economic downturns have forced many restau-
rants to downsize or increase the prices on their menus, as well as
change the composition of their menus to make things cheaper. In
addition, many restaurants have had difficulties to find qualified
kitchen staff.
Beverage
Growth rates are expected to be high in the beverage industry. This
mainly stems from the impact of seasonal trends, stronger product
diversification, and smaller average equipment size creating more
space for multiple machines that are operated simultaneously.
Within the beverage equipment sector, the market for espresso
equipment has the most attractive medium-term growth outlook,
while the market for non-frozen dispensers represents the largest
sub-segment of the industry. The hot and cold beverage segments
are largely equal in size.
Key drivers in the professional food and beverage market
Food
USD
25bn
Beverage
USD
6bn
FOOD & BEVERAGE
USD 31bn
* Own company calculations and estimates
Food & Beverage equipment market 2023*
Changing consumer food habits and delivery models
Restaurant owners have gradually increased the variety
in their menus in response to changing consumer food
habits, which demands more versatile kitchen equipment.
Furthermore, the take-away and delivery business models
are heavy growth drivers.
Total cost of ownership and environmental awareness
There is a greater focus on the total cost of ownership as
a purchase decision. Cost mainly includes energy, main-
tenance, and food-waste related costs, as well as labor
costs for operating the equipment.
Connectivity
Product automation and connectivity will help
customers optimize their workforce and reduce
labor costs, thus reducing total cost of ownership.
New and innovative beverage trends
Customers are moving towards healthier beverage
options, and new and innovative products are emerg-
ing. In mature markets particularly, such as Europe and
North America, customers are shifting toward customized
flavored beverages, with an increased demand for more
versatile equipment.
P. 33Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Food & Beverage
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Markets and customers
In Europe sales are particularly significant in Southern Europe where
we have a strong market position under the Electrolux Professional
brand, in addition to other well-known historical brands such as
Zanussi. We are also strong in this region in the coffee and bever-
age segment with UNIC in France and SPM in Italy.
In Asia-Pacific & Middle East and Africa our strength is in the
high-end project environment. This means we are involved in larger
installations in hotels and restaurants, and projects play a more
important role in this region compared to Europe or the Americas.
Beverage in the Asia-Pacific & Middle East and Africa region is fo-
cused on the QSR and Convenience Store segments – building on
a strong history in cold beverages in South-East Asia.
In the Americas the focus within Food & Beverage has tradition-
ally been on fine dining, projects, schools, and major chains.
Net sales and EBITA margin
Sales EBITA margin
SEKm
%
20232022
0
500
1,000
1,500
2,000
2,500
Q4Q3Q2Q1Q4Q3Q2Q1
0
5
10
15
20
25
Net sales total,
Food & Beverages
SEK 7,616m
(7,290)
EBITA
SEK 766m
(679)
EBITA margin
10.1%
(9.3)
Net sales per market
Europe
58%
Asia-Pacific,
Middle East,
Africa
10%
Americas
32%
P. 34Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Food & Beverage
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Products for food service & beverage
The key food-service applications of this segment are cooking, refrigeration, dishwashing,
and dynamic food preparation.
Our key products include ovens, blast chillers, cooking ranges, refrigerated cabinets and counters,
freezers, cutters, mixers, dishwashing equipment, and specialty accessories and consumables.
The key beverage applications of this segment consist of equipment for coffee,
espresso, hot, cold and frozen beverages, and soft drink dispensing equipment.
Our key products include, coffee machines for espresso, coffee brewing and grinders,
hot beverage dispensers, cold beverage and juice dispensers, frozen drink and soft-
serve products.
• Coffee grinders
• Coffee brewers
• Espresso machines
• Hot beverage
dispensers
HOT
• Cold beverage
dispensers
• Cold juice
dispensers
• Beer dispensing
systems
COLD
• Frozen granita
dispensers
• Frozen ice cream
dispensers
FROZEN
• Soft serve
• Soft ice cream
dispensers
SOFT
• Slicers & food
processors
• Vegetable washers
• Spin dryers
• Planetary mixers
• Vacuum packers &
sealers
• Multi-purpose
peeling machines
DYNAMIC FOOD
PREPARATION
• Fryers
• Boiling &
braising pans
• Grills & griddles
• Steamers
• Ventilation
equipment
• Modular cooking
ranges
• Fry tops
• Combi ovens
• Convection ovens
• Made-2-Measure
cooking suites
COOKING
• Refrigerated
cabinets
• Refrigerated
counters
• Saladettes
• Cold rooms
• Blast chillers
REFRIGERATION
Dishwashers:
• Under -counter
• Hood type
• Rack type
• Flight type
• Blow dryer
• Waste and dishware
handling systems
• Accessories
DISHWASHING
• Cabinets and
cupboards
• Work tables and
shelves
STAINLESS STEEL
FABRICATION
Products for food Products for beverage
P. 35Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Laundry
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Laundry
Laundry provides solutions designed for a range of professional users,
from self-service coin-ops and the hospitality industry to healthcare providers
and commercial laundries. Customers include hospital and hotel laundries,
laundries in apartment buildings, and launderettes.
36%
Laundry segment, share of Group net sales
P. 36Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Laundry
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainable laundry solutions
Clean linen demands the consumption of water, energy, and detergents. Our solutions use
technology and innovation to build resource-efficient products that have a low environmental
impact and keep customers ahead of the game in business sustainability.
The upfront investment cost when purchasing a washing machine is only a small part of the overall cost of ownership.
Operating costs accumulate year on year and in the end they make up the majority of the customer’s costs. Over the
long term, our washing machines and tumble dryers cost less than most of our competitors’ products, which makes the
initial investment more profitable.
Sustainability Hero Heat Pump
Tumble Dryer range
Tumble dryers consume the most
energy in a laundry. Electrolux
Professional’s advanced technol-
ogy behind the new heat pump
range delivers up to 60% savings
in energy consumption compared
to a traditional dryer, without
impacting the drying time. It
thereby lowers the laundry’s
carbon footprint without impact-
ing productivity. Further savings
in energy and drying time are
achieved through the Adaptive
Fan Control, a unique innovation
that adjusts fan speed automat-
ically.
Estimated total cost of ownership of a washing machine over its lifetime
Calculation is based on a typical washer (20 kg) and typical prices in Europe. Note that the figures differ depending on equipment, water, energy, and
detergent costs in different markets. The figures refer to 2022.
Equipment
investment
10%
Washing detergent and
other chemicals
35%
Energy
50%
Water
5%
Clarus Vibe laundry models
Lower chemical & detergent consumption
Detergents, chemicals, and utilities make up a large part of a
commercial washing machine’s lifecycle cost. Intelligent features
available on Clarus Vibe models eliminate over-dosing and
improve the total cost of ownership. The Intelligent Dosing feature
automatically adjusts the detergent based on load weight, while
the Integrated Savings function provides real-time data to avoid
over or underloading the machine.
P. 37Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Laundry
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Organization
Laundry is organized as one global business area since the custom-
er segment is global.
Market size and growth
The total market for professional laundry equipment is estimated
to be approximately USD 2.9bn* in 2023. Prior to the pandemic,
the market for global professional laundry equipment experienced
annual growth of 2–3%, and this is expected to continue over the
medium term.
Market growth is mainly being driven by an increased focus on
product sustainability and efficiency, energy labelling and certifica-
tion requirements, good ergonomics, and the demand for appliance
innovation and connectivity for better control, flexibility, and to be
able to reduce the cost of labor. While these trends are evident
worldwide, the importance of each varies from region to region.
As more technologically-advanced equipment is introduced,
major equipment replacement cycles are expected to take place.
As a result of lower ownership costs, customers are expected to
demonstrate more price flexibility.
Customer service and after-market support are key competitive
factors.
* Own company estimates
Two major market segments in Laundry
The Laundry segment is divided into two main areas; the first is comprised of customers whose main business
is professional laundry, and the second is made up of customers that consider laundry as a cost center.
• Health care
• Elderly care
CARE
• Building
service
companies
FACILITY
MANAGEMENT
• Marinas
• Sport &
Leisure
• Public ser-
vices
• Factories
• Institutions
SPECIAL
ON-SITE
LAUNDRY
• Hotels
• Restaurants
• Catering
HORECA
(HOTELS,
RESTAURANTS,
CATERING)
• Small
hotels/
B&B’s
• Hairdressers
• Beauty
shops
• Sport
centers
SMALL
BUSINESSES
PROFIT CENTER
• Heavy duty
• Commercial
laundries
BUSINESS
TO
BUSINESS
• Dry-clean-
ing shops
(chains and
privately
owned)
BUSINESS
TO
CONSUMERS
• Coin-ops
• Laundrettes
• Camping/
Marinas
SELF-SERVICE
• Apartment
housing
laundry
- route
operations
• Student
houses
• Dormitories
MULTI-
HOUSING
COST CENTER
Sub-segments Sub-segments
Key drivers in the professional laundry equipment market
Reduced cost of ownership – especially energy costs
Customers are increasingly looking for equipment that reduces operating costs. They are focusing
more on the total cost of ownership of equipment rather than the initial investment, for instance costs
for labor, electricity, water, and detergent.
Greater environmental and climate awareness
Many customers want to be able to meet
environmental standards and desire lower water
consumption, more efficient appliances, gentler
detergents, and less impact from chemicals.
Increased demand for flexible business models
Functional sales or equipment rentals are gaining
traction in the market. Demand for equipment
rental is rapidly accelerating, particularly in
Europe and especially from smaller companies.
P. 38Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Laundry
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Markets and customers
In Europe we are one of the leading laundry equipment players with the most significant sales being
in Sweden, where the majority of customers are property owners with laundry rooms.
During and since the pandemic we have seen an increased focus on hygiene, in particular within
elderly care homes and hospitals, which has been a contributing factor to our sales growth.
In the Asia-Pacific, Middle East and Africa region, sales come from an equal mix of laundrettes,
hotels and recreation, and elderly care homes and hospitals. After the acquisition of TOSEI in January
2024, Japan is the country in the region with the largest sales.
Our business in North America has traditionally been heavily weighted towards laundromats, with
good growth in the other segments too. We are one of the market leaders in the US.
EBITA
SEK 702 m
(608)
The most important products in the segment include equipment for laundry, drying, and ironing.
Our major products are washers, tumble dryers, drying cabinets, ironers, and related specialty
accessories and consumables.
• Front-load washers
• Efficient dispensing systems
• Barrier washers
• Semi-professional
washers
LAUNDRY
• Tumble dryers
• Drying cabinets
• Semi-professional dryers
DRYING
• Ironers
• Finishing machines
IRONING
Laundry products
Net sales and EBITA margin
Sales EBITA margin
SEKm
%
20232022
0
200
400
600
800
1,000
1,200
Q4Q3Q2Q1Q4Q3Q2Q1
0
5
10
15
20
Net sales total, Laundry
SEK 4,231 m
(3,747)
EBITA margin
16.6%
(16.2)
Net sales per market
Europe
66%
Asia-Pacific,
Middle East,
Africa
17%
Americas
17%
P. 39Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our production
Production
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our production
Operational excellence 40
Quality 43
Logistics 43
Purchasing 43
P. 40Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our production
Production
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
Operational excellence
- Quality
- Logistics
- Purchasing
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Operational excellence
The Group’s manufacturing units are organized by product category to ensure proximity
and agility to serve customers. Our three largest factories, Vallenoncello in Italy, Ljungby
in Sweden, and Rayong in Thailand, produce for the global markets. The other plants
mainly serve regional markets, some of them with solutions already adapted for the
global markets, and have significant growth potential.
OUTCOME 2023:
Several projects to improve productivity and decrease costs have been
carried out during the year. These include automatization, lean workshops,
improved quality, and greater consolidation of the supplier base. This has
resulted in an improved gross margin. In addition, several activities have
been implemented in the factories to decrease CO
2
emissions.
P. 41Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our production
Production
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
Operational excellence
- Quality
- Logistics
- Purchasing
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Highest possible efficiency, flexibility, and
performance standards
We have been focusing on agility in our supply chain, resulting in a
normal, standard manufacturing lead time of three days from pro-
duction to ready-to-deliver, for a significant portion of our products.
Our ability to adapt the production capacity and structure of our
plants to customer demand, and establish network abilities between
the sites, is key to maintaining control and generating cost savings.
Our network is built on common standards and methods, based
on the World-Class Manufacturing Framework. The tools and the
logic are retained through this framework, from choosing the right
priorities to creating tangible and measurable results with a focus
on sustainability, customer satisfaction, and cost reduction.
We continuously evaluate our manufacturing footprint to ensure
all processes meet the highest possible efficiency, flexibility, and
performance standards.
Modular production
Standardization and modularization are key factors for achieving
the highest level of customization at the lowest cost and use of
resources. The modularization model is based on product design
and brings about a new set-up for the supply chain, which improves
efficiency.
ISO-certified plants
Our target for all of our logistics, manufacturing, and R&D opera-
tions is to be third-party certified according to ISO (International
Organization for Standardization) standards ISO 9001 and ISO
14001. Some sites are also ISO 50001 and ISO 45001 certified.
Reduced energy and water consumption in operations
All our manufacturing sites are progressing with their sustainability
efforts. This includes a systematic approach to the responsible use
of resources, occupational health and safety, and environmental
management. We leverage a consolidated set of standard tools
and methods, and also encourage the highest possible engage-
ment from our employees. One of our important future priorities will
be to reduce our impact from waste within our manufacturing.
During 2023 we have reduced energy consumption by 10%, and
water consumption by 4.5% from the previous year.
We are currently operating with a 45% share of renewable
energy. All manufacturing sites in Europe operate with renewable
electricity. For sites outside Europe, our focus is on increasing the
share of renewable electricity.
ISO certification – share of production volume covered by third-party certification (Excluding Unified Brands)
ISO 9001
100%
ISO 14001
98%
ISO 50001
75%
ISO 45001
75%
P. 42Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our production
Production
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
Operational excellence
- Quality
- Logistics
- Purchasing
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Vicksburg
Weidman
Rayong
Shanghai
Ljungby
Vallenoncello
Spilamberto
Sursee
Troyes
Aubusson
Saint-Vallier
Carros
Izinuokuno Shizuoka*
Location Primary product category Products produced
Vallenoncello, Italy Food solutions • Refrigeration: counters, cabinets, blast chillers, roll-ins, saladettes
• Oven range
• Modular cooking: grills, fry tops, braising pans, fryers, pasta cookers, pans, neutral tops,
solid tops, burners, open bases, induction, hobs
• Dishwashers: hood types, rack types, under counters, glass washers
Ljungby, Sweden Laundry • Washers
• Dryers
Rayong, Thailand Beverage
Laundry
• Coffee brewers
• Cold beverage and juice dispensers
• Washers
• Dryers: single, stacked
Carros, France Beverage • Espresso coffee machines
Troyes, France Laundry • Washers, ironers
Aubusson, France Food solutions • Dynamic preparation: planetary mixers, cutters, peelers, vegetable cutters, display cooking
Saint Vallier, France Food solutions • Made-to-measure stoves
Sursee, Switzerland Food solutions • Modular cooking: grills, fry tops, braising pans, fryers, pasta cookers, pans, neutral tops,
solid tops, burners, open bases, induction, hobs
• High-capacity cooking: tilting, boiling, and braising pans
• Made to measure stoves
Spilamberto, Italy Beverage • Hot and frozen beverage dispensers
• Soft ice cream dispensers
Shanghai, China Food solutions • Dishwashers: hood types, rack types, under counters, flight types
Vicksburg, Mississippi, United
States
Food solutions • Preparation, cooking and washing systems (ware and vegetable washing)
• Steamers, kettles, and braising pans
Weidman, Michigan, United States Food solutions • Refrigeration and preparation tables; standard and made-to-measure solutions
Izinuokuno Shizuoka, Japan* Laundry,
Food solutions
• Washers and dryers, mainly for laundromats (Coin-ops)
• Vacuum packing machines such as table-top, stationary and fully automatic
Manufacturing sites
Food solutions
Beverage
Laundry
Global manufacturing site
*The acquisition of TOSEI was completed in January 2024
P. 43Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our production
Production
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
Operational excellence
- Quality
- Logistics
- Purchasing
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Purchase categories direct materials, 2023
Mechanical 52%
Electronics 34%
Chemical 13%
Quality
In 2023 we continued to focus on quality and we had a low rate of
product complaints.
Electrolux Professional Group’s zero quality-defect product
approach is part of the Electrolux Professional production system.
It embodies a philosophy of defect-free, reliable, cost-effective
appliances that exceed customers’ quality expectations. In accor-
dance with our quality policy, we are committed to marketing prod-
ucts that are of such high quality that this alone would be a defining
reason for customers to choose our products over the competition,
whether it’s a first-time buy, recommendation, or repurchase.
Logistics
The aim of the logistics organization is to serve customers with the
right products and parts, on time, at the lowest possible cost. This
is delivered through effective and prompt customer order manage-
ment, an efficient global planning organization, and a comprehen-
sive global distribution network, including efficient management of
finished goods and spare part inventories.
Logistics hubs
The outbound infrastructure is organized into four logistics hubs that
currently serve 110 countries. The two main global logistics hubs dis-
tribute more than half of all our products and are based in Europe,
one in Italy for Food & Beverage and one in Sweden for Laundry.
One regional hub is based in Singapore to cover the APAC region,
while a second regional hub, located in Louisville in the US, serves
the market in North America.
Purchasing
We purchase a wide range and large volumes of raw materials and
components from external suppliers. We monitor the quality and
reliability of these suppliers closely. Electrolux Professional Group
contracts around 3,300 suppliers.
Purchased materials represent about 68% of our product costs.
Steel, both austenitic and carbon steel, and mechanical compo-
nents are traditionally the largest commodities, while electronics
have increased substantially in recent years.
Mitigating risks
In order to mitigate potential negative impacts due to price fluctua-
tions and to secure availability, we negotiate annual prices through
contracts with the main producers for the most important raw ma-
terials, such as steel. The vast majority of our purchases are direct
materials such as mechanical, chemical, and electrical components.
Electrolux Professional is focused on strategic sourcing of raw
materials from several suppliers in order to minimize supplier risk
and dependency on certain suppliers. At the same time, there are
cost-saving opportunities from the planned consolidation of our
relatively large supplier base, which has increased due to recent
acquisitions.
Purchasing approach
Our purchasing approach is a balance between effectiveness,
quality, agility of deliveries, and the ability to reduce cost. This is a
core activity involving suppliers, R&D, and Industrial Operations.
We evaluate our preferred suppliers not only on their capability to
deliver today, but also on their ability to be partners in the journey
of continuous innovation.
Purchasing in 2023
In 2023, expenditure on direct materials and products was approx-
imately SEK 4.1bn, which accounts for approximately 58% of total
purchasing.
The direct materials bought in 2023 were primarily mechanical
materials such as steel, aluminum, and cast iron, amounting to ap-
proximately 36% of total direct material expenditure.
The Power-of-zero framework
Our quality framework supports the use of standardized design
tools and practices and the performance of product and process
audits.
The framework is based on the “power of zero”, meaning zero
quality defects, zero service call rate, and zero safety issues.
Making quality an integrated part of the entire organization involves
generating a mindset that focuses on preventative and proactive
activities – to the point of identifying unknown problems before they
even occur, rather than maintaining a reactive approach.
P. 44Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our people
Our people
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our people
Our people 45
Guiding principles 46
Engagement and development 47
P. 45Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our people
Our people
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
Our people
Guiding principles
Engagement & development
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our mission is to make our customers’ work-life easier, more
profitable – and truly sustainable every day. This can only be
accomplished through our greatest asset – our people.
Employees by region
Europe
68%
Asia-Pacific,
Middle East,
Africa
15%
Americas
17%
Satisfaction rate
73
(70)
Number of employees
3,978
Women/men, %
32/68
P. 46Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our people
Our people
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
Our people
Guiding principles
Engagement & development
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our Guiding principles
Our Guiding Principles aim to support our mission and strategy by giving direction to our
behaviors. By clearly stating the behaviors we want to see, we drive the company identity
and culture. Our actions and decisions throughout the company should reflect and be
aligned with these principles.
Be customer obsessed
Our customers are at the heart of everything we do. In
our definition, our customers are our external end cus-
tomers, as well as the colleagues who are impacted by
our actions and who benefit from our work – and we
value both.
Build trust
We believe that trust is an essential element for our busi-
ness and our people to thrive. We welcome healthy de-
bates and honest conversations in which everyone has
a voice and is encouraged to use it, regardless of hier-
archy. We are honest about our mistakes and learn from
our setbacks. We seek commitment and accountability,
and value honesty, integrity, and ownership.
Be bold
Everyone is empowered to take action to deliver
better outcomes at Electrolux Professional Group. We
take risks with confidence and support courageous
decision-making that inspires progress and growth. New
perspectives and ideas are welcomed and we approach
them with an open mind. We appreciate and respect our
cultural differences and embrace all people – irrespec-
tive of race, ethnicity, or gender.
Act sustainably
We consider the development of our people to be as
important as preserving our environment, and we take
decisions that reflect our desire to build a better future.
We aim to reduce our negative environmental and
social impact by developing innovative and sustainable
solutions to enable future generations to live more
sustainably.
Employee surveys
We conduct an extensive, company-wide Employee Engagement
Survey (EES) annually. The survey provides long-term and in-depth
insights about the organization by measuring a variety of
indices to provide a perspective on the health of the organization,
its employees, and its leaders.
In October 2023, 91% of our employees expressed their opinions
through the EES, compared to 88% in 2022. The satisfaction rate,
High Performance Organization index, rose to 73% (70).
Based on the results of the EES in 2022, the following areas were
prioritized for improvement: people development, collaboration,
and renewal climate. The results of the 2023 EES indicate that
there was progress in all these areas, and also in the area familiarity
with strategy.
Diverse and inclusive organization
We recognize and seek diversity in all its forms. It is paramount to
our business success that we have a wide and diverse perspective
on matters. We also believe that an open, fair, and inclusive work
environment will drive higher engagement and better growth and
development for our employees. In the 2023 EES, 74% of our em-
ployees agreed with the statement “In my team, people with diverse
backgrounds, styles, and approaches have equal opportunities for
development“, which is an improvement since 2022, when it was
69%.
We monitor gender diversity, and we have clear and cascaded
objectives to increase gender diversity. All employees must be treat-
ed according to their abilities and qualifications in any employment
decision, including hiring, promotion, compensation, training, and
termination. As part of our commitment to having a diverse and
inclusive workplace, we have zero tolerance for harassment and
bullying.
All employees must treat each other with respect, dignity, and
common courtesy. Our ethics framework has been designed to
provide guidance to our employees in applying the Electrolux
Professional Code of Conduct.
Employee satisfaction survey rate,
satisfied or very satisfied
%
76%
76%
73%
71%
70%
73%
0
20
40
60
80
202320222021201920182016
P. 47Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our people
Our people
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
Our people
Guiding principles
Engagement & development
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
A new and more flexible work-life
We have stayed with our bold decision to show trust in our em-
ployees with regards to their choice of place to work. Those whose
work activities allow may choose where they work for part of their
working time per month. We recommend and prefer that employees
come to their workplace at least half of the time since it is important
for team collaboration and for personal and informal interactions,
However, we do allow for less presence.
Development Talks
Development Talks originated in the long-standing performance
management process, in which performance objectives were set
once per year and evaluated at the end of each calendar year.
During 2022 we evolved and implemented a version of this
process which underlines the criticality of employees’ develop-
ment to the company’s continued success. It also reflects a new
way of working focused on prioritization and deliverables, and
encompasses regular check-ins to monitor progress and fine-tune
priorities. During 2023 we have further enhanced this process
by enabling system support through our HR information system,
PeoplePro.
Development Talks is a process to ensure accountability and
contributions from each employee. It is underpinned by the princi-
ple of trust and by the belief that highly engaged employees with a
growth mindset will take excellent care of their jobs, the company,
and our customers. It is an employee-driven process, where it is
up to the employee to take the initiative and act. The process en-
compasses regular dialog between employees and their managers
about key business priorities, how employees can contribute, and
opportunities for employees to do things differently to strengthen
their skills, increase their impact, and secure their long-term success.
Reporting misconduct
All employees can report conduct that they believe, in good faith,
to be a violation of laws or our Code of Conduct (CoC), to their
manager or in accordance with locally established procedures.
Misconduct and violations of the Code of Conduct or Group pol-
icies can also be reported through our third-party provider's web
tool called EthicsPoint. Anyone reporting a violation will, to the ex-
tent legally permissible, be able to remain anonymous if they wish.
In 2023, 12 reports were received via the whistleblowing tool,
EthicsPoint, and other channels. The reports mainly concerned
workplace conduct. All cases were thoroughly investigated accord-
ing to the established procedures, under the instruction of the Code
of Conduct Steering Committee consisting of the CHRO, the Head
of Internal Audit and the General Counsel, and reported to the Audit
Committee. The majority of the cases led to actions to mitigate
further discontent, although the majority were deemed not to be
violations of the
Code of Conduct.
We also measure incidents of discrimination and harassment
through our annual EES. Based on these results, actions are planned
to address the culture and behaviors in the locations we deem
necessary. During 2023, 82% of the employees completed the
CoC training.
A safe and healthy workplace
Given that our employees are the single most important factor in
achieving long-term success, we are committed to continuously
developing a work environment that enables sustainable perfor-
mance and development so that all employees can deliver their best.
Our commitment to health and safety goes beyond ensuring
compliance with rules and legislation. The Group Workplace
Directive describes the minimum requirements for environmental and
working conditions for all employees. According to our annual EES
in 2023, 82% of our employees agree with the statement “Health
and safety is always considered in the decisions and actions
taken in my team”, which is an improvement of one percentage
point since the survey result in 2022.
Number of employees
On December 31, 2023 Electrolux Professional Group had 3,978
employees in 33 countries. We had twelve manufacturing sites
including R&D centers. The biggest countries in terms of number
of employees are Italy, the US, and Sweden.
Age distribution employees
<30
>50
8%
42%
30–50
50%
Gender distribution
Women
32%
Men
68%
Worker distribution
Production workers
41%
Non-production workers
59%
Leadership diversity
Women
27%
Men
73%
31 December, 2023
Engagement and development
P. 48Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainability Report
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability Report
2023 activities 49
Our sustainability framework 50
Strategy and targets 53
Sustainable Development Goals 54
Sustainable solutions 55
Sustainable operations 58
Ethics and relationships 63
Sustainability notes 149
Sustainability is a key part of our strategy, culture, and day-to-day operations.
We want our solutions and operations, today and tomorrow, to support a more
sustainable world, and we use the UN’s Sustainable Development Goals (SDGs)
as our compass to guide what we do to contribute to a better society.
P. 49Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 2023 activities
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2023
activities
> The Science Based Targets initiative
validated our Scope 1, 2, and Scope 3,
Category 11 greenhouse gas emission targets.
> We retained B score in the Carbon
Disclosure Project Ranking (CDP).
> We retained a reduced ESG-risk rating by Sustainalytics,
Morningstar, Low risk 10.8 (13.8).
> Following the devastating earthquake in Turkey and Syria in the
beginning of the year, Electrolux Professional Group donated
EUR 10,000 to the Red Cross to support the organization's work
for earthquake survivors.
> We also donated cooking equipment in partnership with Mercy
Chefs US, an organization providing relief efforts for those
displaced in the Turkey-Syria region.
> On September 8, central Morocco was hit by an earthquake
causing widespread devastation. We donated products to support
humanitarian organizations in preparing food for survivors.
> Application submitted for our Shanghai operations to participate in
the I-REC system, targeting 100% use of renewable electricity plant.
> Signed contract for solar subscription for our Mississippi plant in
October to increase the share of renewable energy.
> Initiated pilot projects from the winner of the internal sustainability
challenge initiative, 2022, to make a positive impact on the
environment.
> Completed decarbonization project studies in 5 of our 12 plants,
with the objective of reaching our emission reduction targets.
> We identified salient human rights issues through a human rights
due diligence process, in accordance with the EU Corporate
Sustainability Due Diligence Directive (CSDDD) and the EU
Taxonomy. Read about the outcomes on page 66.
> Preparations for implementation of a digital reporting platform
for sustainability data were carried out. This to ensure reporting
in accordance with ESRS (European Sustainability Reporting
Standards), starting from 2024.
> Launched the dishwashing Hero Dryer solution, a free-standing
blower to help dining-in or take-away restaurants to move away
from single-use plastics, in line with the EU regulations.
P. 50Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our sustainability framework
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our Sustainability framework shows how we work with our material sustainability topics.
We perform impact analyses and strategic assessments, which together with stakeholder
expectations and dialogs, serve as the basis for our sustainability efforts and materiality
analysis. Read more about our material topics on pages 56–65.
Product performance
and efficiency
Grow the business by developing
sustainable, innovative solutions that
have low running costs.
Read more on page 55.
Sustainable solutions
Material efficiency
Customer health,
safety, and wellbeing
Responsible use of
resources
Operational excellence
drives sustainability.
Read more on page 58.
Sustainable operations
Occupational health
and safety
Environmental
management
Enabling business through
trust and relationships.
Read more on page 63.
Ethics & relationships
Ethical practices
Stakeholder
relationships
1
2
3
The Sustainable Partner
P. 51Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our sustainability framework
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our guiding principles
Be customer obsessed Build trust Be bold Act sustainably
Read more on page 46.
Our sustainability commitment
We act according to our
ethical principles.
We constantly strive for
improvement throughout our
value chain.
We act fairly and uphold the
trust we are given by our
stakeholders.
Making our customers’ work-life easier,
more profitable – and truly sustainable every day
Mission
Strategic framework
We want to do our part to improve society and generate value
for our stakeholders. We believe that the Agenda 2030 and the
UN’s Sustainable Development Goals (SDG’s) are good indi-
cators of the priorities and challenges that the world is facing.
Electrolux Professional Group has identified six SDGs where we
believe we have a greater impact and opportunity to make a
difference. Read more on page 54.
We also believe that commitment to, and application of,
standardized frameworks such as the UN Global Compact, ILO
Convention, GRI, and ISO standards simplifies the understanding
and fulfillment of stakeholder expectations.
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Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Materiality assessment 2023
Stakeholder Form of dialog Important topics Generated value
Customers and users • Ongoing dialog to understand requirements. This dialog takes
place during customer visits, requests for quotations, fairs etc.
We also do more systematic studies and measure the Net
Promotor Score (NPS)
• Quality
• Energy consumption and carbon footprint
• Total cost of ownership
• Reliability of the overall equipment system
• Ergonomics and human-centric design
• Enhanced hygiene requirements
• Easier work life, profitability, low consumption, and
environmental footprint.
See more on pages 7, 21–28, 31, 36.
Employees • Ongoing dialog with employees and unions through our man-
agers
• Systematic dialog within our people performance and devel-
opment process
• Employee engagement surveys
• Health and safety
• Diversity and inclusion
• People development
• Competitive compensation, sustainable working
environment, learning and development.
• Strengthened leadership
See more on pages 7, 45–47.
Investors and owners • We communicate through direct meetings, questions,
ESG surveys, capital market days, and the Annual General
Meeting where a dialog can take place. Our largest sharehold-
er is also a member of the Board of Directors
• Ethical business practices
• Diversity and inclusion
• Health and safety
• Climate action
• Supply chain management
• Reduced risks and long-term value generation.
See more on pages 7, 164–167.
Suppliers • Dialog with suppliers is mainly conducted through supplier
meetings, negotiations, and discussions
• Information gathered about suppliers during the RFQ phase
• Signing of our supplier workplace standard
• Labor conditions
• Health and safety
• Environmental management
• Jobs, mutual benefits, and reduced risks.
See more on pages 7, 43, 64–65.
Society and local communities • Contacts with local communities regarding local environmental
requirements
• Monitor public opinion and changes in legislation
• Environmental impact
• Social impact
• Contribution to local community
• Taxes and reduced carbon footprint.
See more on pages 7, 60–62, 64–65.
Academia and NGO's • Participation in networks, meetings, and partnerships • Sustainable innovation
• Strategic partnerships
• Mutual benefits
• Mutual benefits and development of opportunities.
See more on pages 52, 59.
We based our materiality assessment on a stakeholder engagement process that encompassed workshops,
interviews, and other forms of dialog. By seeking perspectives from diverse stakeholders, we gained a deeper
understanding of different sustainability topics and their severity and likelihood. The 2023 sustainability report
is based on the material topics identified below:
P. 53Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Strategy and targets
Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainable operations
Improve sustainability performance within
our operations through proper management
and a systematic approach, with an em-
phasis on improving our environmental and
social performance every day.
Sustainability strategy
Sustainable solutions
Set the pace in the professional food,
beverage, and laundry industries, through
innovations in sustainability and energy
efficiency, underpinned by a connected and
digital platform to meet customer needs.
Ethics and relationships
Maintain strong and sustainable relation-
ships with the stake holders impacted by our
business, and demonstrate our commitment
through actions and procedures.
Our climate ambition for 2030
To become climate neutral
within our industrial operations
by 2030.
Sustainability targets
Climate target for 2025
Health and safety target
for 2025
Gender diversity target
for 2030
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>50%
by 2025 (base year 2015)
Lost time injury rate (LTIR)
As measured by work-related
accidents per 200,000 work hours
<0.3
by 2025
Gender diversity
Distribution men/women
or women/men
40/60
Distribution across managerial
positions by 2030
OUTCOME 2023:
The number of accidents resulting in lost
work time decreased bringing us closer
to our target, at 0.54 (0.64).
Comment on 2023 outcome
We continued to address the root
causes of accidents, working proactively
with near misses and unsafe actions.
OUTCOME 2023:
The percentage of women in all
managerial positions in 2023 was 27%
(26).
Comment on 2023 outcome
Gender diversity across managerial
positions improved somewhat.. Activities
related to diversity and inclusion, such
as training and support for hiring man-
agers have increased during the year.
OUTCOME 2023:
Scope 1 and 2 CO₂ emissions in 2023
amounted to 4.25 (6.2) kton, which is
-62%* compared to 2015 with a recalcu-
lated baseline**.
Comment on 2023 outcome
Strong focus on switching to renewable
energy, and full capacity generation of
renewable electricity in Rayong, made
it possible to reach the 2025 target two
years ahead of time.
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>70%
by 2030 (base year 2019)
Science-based climate target for 2030
OUTCOME 2023:
With a recalculated baseline** the
reduction since 2019 is 50%.
Comment on 2023 outcome
A solar panel subscription in the Missis-
sippi plant, a reduction in natural gas
consumption, and improved produc-
tion efficiency helped us reduce our
emissions.
Reduce indirect use-phase
emissions of sold products
Scope 3 emissions
>27.5%
by 2030 (base year 2019)
OUTCOME 2023:
In 2022 (2023 result not yet avail-
able) Scope 3 emissions, Category 11
amounted to 5,302 kt, a 16% reduction
compared to 2019, with recalculated
baseline**.
Comment on 2023 outcome
During 2023, we developed our Scope 3
product-use emission reduction target,
and it was validated and approved by
the Science Based Targets initiative. The
reduction in emissions was due to lower
volumes and grid improvement.
* Including Unified Brands, which was acquired in 2021.
** Recalculation is made by distributing the first reported
emission footprint backwards to previous years.
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Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
Materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Other SDGs relevant to us
SDG 3 – Health and wellbeing
SDG 11 – Sustainable cities and communities
SDG 16 – Peace, Justice and Strong Institutions
SDG 17 – Partnerships for the goals
SDG 7 Clean and affordable
energy
SDG 13 Climate action
We can make a difference
throughout our value chain by de-
veloping energy-efficient products
and working with energy efficiency
in our operations.
Our main actions
> Energy-efficient and low-
consuming products
> Implement alternatives to HFC
(Hydrofluorocarbon) gases
> Gradual shift from natural gas
to renewable energy use in our
operations.
> Energy efficiency improvements
in all our operations to reduce
the overall energy demand and
switch to renewable electricity.
SDG 8 Decent work and
economic growth
Knowing that our employees are
the single most important factor in
achieving long-term success, we
are committed to continuously de-
veloping a work environment that
enables sustainable performance
where all employees can deliver
their best.
Our main actions
> Occupational Health and Safety
program
> User ergonomics and product
safety integrated in product de-
velopment, including third-party
certifications
> Drive employee engagement
> Zero tolerance for slavery, hu-
man trafficking, and child labor
> Respect labor rights
(ILO conventions)
SDG 12 Responsible consumption
and production
To reduce the environmental
footprint related to our products
and operations, we have a major
focus on developing sustainable
products for our customers.
Our main actions
> Environmental performance
in operations (water, energy,
waste etc.)
> Efficient use of materials
> Sustainable innovations and
product efficiency
SDG 6 Clean water
and sanitation
As a number of our products
consume water, we can make
a difference by developing and
offering water-efficient products.
Our main actions
> Provide more water-efficient/
low-consuming products
> Improve water efficiency in our
own operations, with a special
focus in water-risk countries
> Management of water discharge
to control quality and destina-
tion
SDG 5 Gender equality
We value diversity and inclusion
and have zero tolerance for
discrimination and harassment.
We aim to increase the share of
female leaders at all levels of the
company.
Our main actions
> Anti-discrimination policies
> Actively promote diversity and
inclusion
Sustainable Development Goals (SDG)
Electrolux Professional Group uses the SDGs as our compass to guide what
we do to contribute to a more sustainable society. We have identified six
SDGs where we believe we have a greater impact and opportunity to make a
difference. We believe that the SDGs are good indicators of the priorities and
challenges that the world is facing.
P. 55Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainable solutions
Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
1
We serve a wide range of customers around the world, from restaurants, hotels, and launder-
ettes to healthcare and service facilities. Our solutions consume energy, water, and detergents
and thus impact our customers and the consumers of the services they provide.
We want to set the pace within the professional food, laundry, and
beverage industry through innovation in sustainability and energy
efficiency, and offer connected and digital platforms that meet
customer needs.
Product design influences or determines environmental and
social impact throughout the value chain. The choices made will
have an impact on materials used, manufacturing, distribution,
product use, and end of life.
As our main environmental impact occurs during the product-use
phase, embedding sustainability into product development is essen-
tial to reduce our overall impact.
Focus on developing innovative and sustainable solutions
As there are few energy directives and certification schemes exter-
nally, Electrolux Professional has created an internal indicator to
highlight technical solutions that can offer opportunities for carbon
reduction. Our intention is to track products that can technically
support carbon reduction. We do not benchmark the indicators
against our competition in the market, as this might be precarious
due to the lack of objective measurement methods. Further, we do
not include technical solutions that support, but do not actually en-
sure, efficient user behaviors.
Sustainable solutions
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Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
1
Three priority areas within sustainable solutions
Efficient and low-consuming products
As our products are used, they consume resources such as energy,
water, and detergents. These resources impact the product’s envi-
ronmental footprint as well as the customer’s operating costs. The
Group invests significant resources into its global R&D activities.
From 2019 to 2023 the company’s R&D expenditure was an average
of approximately 3.7% of sales per year.
Efficient use of material
Most of our material use is related to steel and other metals. As the
materials used and waste generated have a negative impact on the
environment, more efficient use is required to reduce our impact. An
efficient approach means using materials for as long as possible,
working towards closing material loops, and reducing waste.
Material efficiency is supported by a circular transition.
Our products are used frequently, either by professional busi-
nesses or as user-operated equipment in the sharing economy.
Material efficiency can be increased by designing durable products.
We invest in lifetime testing and quality assurance to verify that our
products meet durability and reliability requirements. For more infor-
mation about our approach to Zero defects, see page 43.
Service and maintenance
During the product's lifetime we offer a wide range of spare parts,
services, and customer support that can help to prolong the prod-
uct's lifespan. Maintenance and service can also help to ensure that
efficiency and performance are maintained during the product's life-
time. For more information about our service offering, see page 24.
End-of-life management and recovery
We have a restricted material list (RML) to facilitate the use of
non-hazardous and non-toxic substances in our materials and
components.
All components and materials used are RoHS-directive
(Restriction of Hazardous Substances) compliant, meaning they do
not contain any toxic substance prohibited under, or, if permissible,
do not exceed certain levels set out in, the RoHS Directive (2011/65/
EU). We also meet the requirements of WEEE, the Waste Electrical
and Electronic Equipment Directive (2012/19/EU). As most of our
products are designed for easy disassembly, include restrictions on
hazardous and toxic
materials, and mainly con-
tain recyclable materials, a
large proportion of materials
within our products (normally
between 85–95%) can be
recovered and used in new
material loops. Our aim is
to further improve material
recovery and thereby reduce
our impact from waste
generation.
Product performance and efficiency
%
Product water consumption efficency improvements
0
20
40
60
80
100
20232022202120202019
Product water consumption efficency compared to 2019
Efficency improvment
1.5% 2.3% 4.3% 4.5%
The sales volume for 2022 was incorrect so the efficiency
was recalculated based on the correct volume.
Around 94% of the company’s climate impact occurs as the
products consume energy. The Scope 3 emissions (category 11) from
the use phase of our products amounted to 5,302 kt in 2022 (2023
figures not yet available). The reduction of these emissions drives
our continous pursuit to innovate and to identify strategies to devel-
op and provide energy-efficient and low-consuming products. We
have set a target to increase the energy efficiency of our product
range (base year 2019). This is positive both for the environment and
for our customers’ operating costs. A number of our products use
innovations and technologies that help save energy and/or reduce
carbon emissions.
As some of our products consume water, we have set a target
to increase water efficiency within our dishwashing and laundry
product ranges (base year 2019). In 2023 we have improved water
consumption efficiency by 4.5%. Read more about our sustainable
product offering on pages 12, 31, 36, 60.
P. 57Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainable solutions
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
1
Safety
Safety is critically important to Electrolux Professional and its cus-
tomers as the use of our products frequently involves a mixture of
water, hot surfaces, moving parts, and electricity. We aim to ensure
customer safety and reduce risks by focusing on product safety
starting from the product development phase, passing through a
controlled production process, and providing a professional main-
tenance service. To improve the safety level of our appliances, we
also use third-party laboratories to review products
from a safety standpoint.
Appliances are designed with consideration for
ergonomic principles on human functionality and
according to the user’s natural workflow, to achieve
maximum efficiency with minimum effort. We also per-
form third-party ergonomic certifications on certain
products (ERGOCERT).
The safety performance of our products, as well as their ability
to live up to our quality demands and targets, is continuously moni-
tored. Product safety concerns raised are addressed through a strict
process that follows international laws and standards, including
notification to the authorities if need be. This process is governed
by the Group's top management and those involved are trained and
their competence registered.
Hygiene and food safety
Our businesses include professional laundry or food service opera-
tions in hospitality businesses and within community businesses such
as elderly care homes or hospitals. As people in these environments
can be more vulnerable, hygiene and food safety are critically
important. We offer solutions for control and monitoring with
third-party certified disinfection performance.
Microplastics
Research has demonstrated that microplastics can be found in all
areas of the environment and are increasingly contaminating our
oceans. Electrolux Professional Group has participated in several
research projects to investigate how our products can help prevent
microplastics released from textiles being emitted into the oceans.
We are working intensively to identify a microplastic filtration
technology that is suitable for a professional laundry setting. We
have therefore been developing methods to evaluate the perfor-
mance and the suitability of separation technologies. For several
years, we have been actively partaking in microplastic standard-
ization committees worldwide to contribute to the development of
meaningful and strong standards – and based on these standards
meaningful and strong legislation. This standardization work is pro-
gressing fast spurred on by the environmental risks of microplastics.
We take part in global efforts both as a knowledge contributor and
by doing real-life tests of standard test methods.
Customer health and safety
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Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2
Electrolux Professional Group has a global presence and applies the same high standards
and principles of conduct globally. These are respect, diversity, integrity, ethics, safety, and
environmental protection. We aim to improve sustainability performance in our operations
through proper management and a systematic approach, focusing on decreasing our
negative impact on the environment and society every day.
Sustainable operations
P. 59Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainable operations
Sustainability
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2023
Disclosure on climate-related topics
Climate change is already impacting every region on earth and
further warming continues to increase the risk of extreme weather
events. Risk mitigation and the transition to a low-carbon economy
might have an impact on all stakeholders in society and have
political, legal, and technological impacts on organizations.
We constantly strive to reduce our climate change impact
through the climate-neutral ambitions for our industrial operations
and by working relentlessly to achieve our SBTi Scope 1, 2, and
Scope 3, Category 11 emission reduction targets.
Our efforts have been recognized by various rating institutes.
Electrolux Professional Group is seeing an increased interest in
climate-related disclosures under the Taskforce on Climate-related
Financial Disclosure (TCFD). We have also identified climate-relat-
ed transition risks, physical risks, opportunities, and their financial
impact.
Read more in the Group Risk report on page 82.
Sustainability Ratings Score Date
EcoVadis Silver March 2023
CDP Climate Change B February 2024
Sustainalytics ESG
risk-rating
10.8
(low risk)
February 2024
We place great emphasis on reducing the environmental impact
of our business activities. Our biggest direct environmental impact
relates to water and energy consumption, wastewater, waste, and
transportation. From a product life cycle perspective, the main envi-
ronmental impact occurs in the product-use phase at the customer’s
location. The material sustainability topics within our operations are
integrated into our Enterprise Production System. The system pro-
vides a method for minimizing all types of waste and losses in our
Environmental management
processes. Using fewer resources is good for the environment and
for the long-term profitability of the company.
The Group complies with environmental legislation and the fac-
tories operate according to national legislation, apply for necessary
permits, and report to local authorities in accordance with applica-
ble legislation. Our Group environmental commitment is outlined in
our Code of Conduct, Group Work Policy, and Environmental Policy.
The Workplace Directive stipulates minimum requirements regarding
topics such as legal compliance, waste, and chemicals. Our suppli-
ers are assessed against sustainability parameters, as outlined
in our supplier workplace standard/directive.
Our target is for all of our logistics, manufacturing, and R&D
operations to become third-party certified according to ISO 9001
and ISO 14001. See all our ISO-certified sites on page 41. The
Group’s environmental policy and environmental work are
described in more detail on pages 56 and 60–62.
P. 60Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainable operations
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2
CO
2
emissions
In 2020 we communicated our ambition to become carbon neutral
in our industrial operations by 2030, as measured by Scope 1 and 2
emissions. During 2020 we also set a Scope 1 and 2 emission target
to reduce emissions by 50% by 2025 (including contributions from
acquisitions made in 2015–2019).
During 2023, we continued to reduce our Scope 1 and 2 emis-
sions and have already achieved our 2025 targets.
We have set science-based targets for Scope 1 and 2 which
were validated and approved by the Science Based Targets initia-
tive in 2023. Our SBTi target is to reduce Scope 1 and 2 emissions by
70% by 2030 from a 2019 base year.
The climate and environment
Our emissions are mainly driven by gas consumption used for
heating, use of HFCs, and electricity consumption. We have invest-
ed in renewable electricity during the year, which has reduced our
carbon emissions. Furthermore, to meet our Scope 1 and Scope 2
emission reduction targets, we have developed the following plan:
Roadmap Scope 1 and 2:
> Elimination of natural gas and electrification of heating
> Installation of on/near-site solar PV
> Purchasing of Renewable Energy Certificates (RECs), Guarantees
of Origin (GO), and renewable electricity subscriptions
> Improvement in both thermal and electrical efficiency
Scope 3 emissions
Product use
Analysis of our greenhouse gas emissions within Scope 1, 2, and
3 shows that our Scope 1 and 2 emissions constitute only a small
portion, approximately 0.1%, of our total carbon emissions. Scope 3
emissions actually constitute around 99.9% of our total emissions.
Our main climate impact occurs during the product-use phase
within Scope 3 (~94% in 2022). The main source of emissions within
the usage phase relates to the product’s energy consumption. In
2022 (2023 result not yet avalable) Scope 3 emissions, Category
11, amounted to 5,302 kt, a 16% reduction compared to 2019 with a
recalculated baseline. Recalculation is made by distributing the first
reported emission footprint backwards to previous years.
During 2022, we developed our Scope 3 product-use emission
reduction target of 27.5% by 2030 from a 2019 base year. This was
validated and approved by the Science-Based Targets initiative
(SBTi) in 2023. We have developed a clear plan to reduce our
Scope 3 product use emissions:
Roadmap Scope 3:
> Improve our product mix offering to our customers with an increae
in low-electricity-consumption products
> Continue developing highly energy-efficient products in line with
the Scope 3 product-use emission targets (SBTi)
> Continue developing cutting-edge technologies to further improve
product performance efficiencies
0
1,000
2,000
3,000
4,000
5,000
2023
2022
2021
2020
2019
2018
2017
2016
2015
CO2 emissions target 2015-2025
CO2e emissions (tons)
Distribution of our carbon footprint (Scope 3), %*
Capital Goods
Use of sold products
0.09%
94.3%
Purchased goods & services
4.32%
EOL treatmentof sold products
0. 87%
Upstream Transport & Distribution
0.18%
* Based on 2022 data, including Unified Brands*
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2
Energy management
Electrolux Professional Group places a strong emphasis on reducing
energy consumption in our operations. We constantly monitor our
performance and have developed reduction targets.
Total energy consumption has decreased in 2023, mainly due
to reduced electricity consumption and purchasing of solar sub-
scriptions and renewable energy certificates. Electrolux Professional
Group will continue to prioritize energy reduction measures.
We are currently operating with a 45% (37) share of renewable
energy. All manufacturing sites in Europe operate with renewable
Share of renewable energy
Renewable
Non renewable
45%55%
Energy consumption as reported
Recalculated baseline including acquisitions
MWh
Energy consumption
0
10,000
20,000
30,000
40,000
50,000
20232022202120202019
MWh
Energy intensity
0
1,000
2,000
3,000
4,000
5,000
20232022202120202019
Consumption (MWh) per reported SEKm net sales
Water management
During the year, both water withdrawal and water discharge has decreased.
Our water consumption has remained the same compared to last year.
We use the Worldwide Fund for nature's water risk filter to assess our
water risks. According to the water risk assessment, we do not have high
water risks related to our operations. We are implementing protective
measures to reduce our water footprint from our operations. In areas where
water availability and water supplies are becoming more unpredictable or
scarce, requests for water-efficient products can be expected to increase.
As some of Electrolux Professional Group’s products consume water when
operating, we have a clear strategy and targets to develop low-consuming
and water-efficient products.
Reported consumption
Recalculated baseline including acquisitions
m³
Water consumption
0
5,000
10,000
15,000
20,000
20232022202120202019
m³
Water intensity
0.0
0.5
1.0
1.5
2.0
2.5
20232022202120202019
Consumption m³ per reported SEKm net sales
The climate and environment
Water intensity has been
recalculated based on
water consumption, not water
withdrawal.
Earlier years water withdrawal
was reported as water
consumption. For this year's
report, we recalculated water
consumption by deducting
water discharge from water
withdrawal, using GRI 303-5.
Recalculation is made by
distributing the first reported
water consumption back-
wards to previous years.
electricity and we are focused on increasing the
share of renewable electricity in sites outside of
Europe. Solar panels have been installed at our sites
in Vallenoncello, Modena, and Rayong. In Mississippi
we have subscribed to a community solar program.
Our plan is based on continuous improvement
activities, projects, and investments in energy-effi-
cient equipment. We are also active supporters of the
switch to renewable energy. A pilot project has been
initiated to investigate solutions for reducing natural
gas consumption through electrification at our Italian
sites.
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2
Materials
Metal and metal parts are the materials we consume the most. We
have adopted a restricted materials list to restrict toxic and hazard-
ous substances in our products and processes. Our factories also
work to reduce material losses by improving the scrap rate and by
using materials efficiently. Read more on page 56.
Waste and hazardous waste
86% of the non-hazardous waste we generate is recovered while 4%
is sent to energy recovery. 8.5% goes to landfill or incineration with-
out energy recovery.
5% of the waste generated is categorized as hazardous waste.
Non-hazardous waste, 2023
Waste-to-energy
Recycling
4%
86%
Landfill
8.5%
Incineration (without energy recovery)
1%
Other recovery
0.5%
Share of hazardous waste, 2023
Hazardous
waste
Non-hazardous
waste
5% 95%
Occupational health and safety
We prioritize the wellbeing of all employees by providing a safe
and healthy work environment. We work with a ’zero accident’
mindset, putting safety at the top of the agenda.
Our Group health and safety guidelines are outlined in our Code
of Conduct and Group Workplace policy, and detailed requirements
are described in our Group Workplace Directive. Our industrial op-
erations pose higher risks, and we have established a dedicated
Health & Safety pillar focused on maintaining a safe work environ-
ment to protect our employees. Within the Health & Safety pillar we
drive improvements, develop health and safety methods, and share
best practices and risks.
Each manufacturing site tracks and reports accidents and inci-
dents. Accidents result in a root-cause analysis and corresponding
action plan. Each accident is followed up by the pillar team and
insight is shared between the different sites. The manufacturing sites
also work to identify and eliminate causes of unsafe acts and con-
ditions.
Three of our largest plants are third-party certified according to
ISO 45001, read more on page 41.
We also collaborate with SOS International to protect our
people during business travel.
The climate and environment
Lost Time Injury Rate
0.0
0.3
0.6
0.9
1.2
1.5
20232022202120202019
Material consumption, 2023
Supplier packaging material
Metal & metal parts
0%
81%
Semi-manufacturing goods or parts
12%
Packaging material for finished products
3%
Plastics & plastic parts
4%
Process materials (indirect material)
0%
P. 63Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Ethics and relationships
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
3
A good, sustainable relationship with the stakeholders that are impacted by our business is key
to delivering on our strategic targets. We demonstrate our commitment, and seek stakeholder
trust, through several actions and procedures. Electrolux Professional Group has signed the UN
Global Compact and commits to its 10 principles regarding human rights, labor, anti-corruption,
and the environment.
Ethics and relationships
P. 64Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Ethics and relationships
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Business ethics
Value generation for stakeholders
> Build product and employee branding
> Value generation for customers
> Reduced or mitigated risks
> Reduced costs through efficient use of resources
> Availability of sustainable and green investments
> Economic value, generated and distributed
> Improved environmental and social footprint within
our value chain
3
Anti-corruption, bribery, and unethical business
We do not tolerate corruption, bribery, or unethical business
practices in any form. All operational units and suppliers, and
their employees, must refrain from offering, giving, demanding,
or receiving bribes or any other improper benefits. During 2023 on-
line anti-corruption training was rolled out to a targeted group of
employees, with a completion rate of approximately 93%. In addi-
tion, face-to-face courses or webinars are regularly conducted on
legal compliance topics for employees likely to face such risks.
82%
(2023)
of employees
participated in Code
of Conduct training
93%
( approx. completion rate)
training on anti-corruption
for targeted employee groups
Whistleblowing - reporting of misconduct
Misconduct and violation of the Code of Conduct or Group Policies
can be reported anonymously online, via the whistleblowing web
platform, or directly to a suitable person or function within the
Group. Our online platform, EthicsPoint, where employees can
report serious concerns, misconduct, or potential breaches of
the company’s Code of Conduct, is also open to external report-
ers. In 2023, 12 reports were received via the whistleblowing tool,
EthicsPoint, and other channels. The reports received mainly con-
cerned workplace conduct. All cases were thoroughly investigated
according to the established procedures, under the instruction of
the Code of Conduct Steering Committeee consisting of the CHRO,
the Head of Internal Audit and the General Counsel, and reported
to the Audit Committee. The majority of the cases led to actions to
mitigate the issue, although the majority were deemed not to be
violations of the Code of Conduct.
P. 65Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Ethics and relationships
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Tax policy
Our Tax Policy outlines how we deal with tax-related matters. We
aim to always pay the correct amount of tax in the correct country,
and to be fair and resolve differences in opinions with local tax
authorities and other governmental organizations in a constructive
and positive manner.
Supply chain
Sustainability risks within our supply chain are mitigated by stipu-
lating demands related to quality, product safety, chemical com-
pliance, social responsibility, and the environment. We expect our
suppliers to adhere to our Code of Conduct and Supplier Workplace
Standard. These policies are consistent with requirements in frame-
works such as the International Labor Organization’s (ILO) core
conventions and the OECD guidelines for multinational enterprises.
Social and environmental requirements of our suppliers are
integrated into our Supplier Workplace Standard. Defined due
diligence activities are put in place based on specified risk levels.
The Group audits its existing supplier base. These audits include
environmental and health & safety aspects, in addition to the quality
aspects of our audits.
In 2023 we commenced the Conflict Mineral due diligence
process for selected suppliers (a pilot) to ensure that purchased
components that contain the four minerals tin, tantalum, tungsten,
and gold are sourced from responsible and conflict-free sourc-
es only. Our pilot showed that we meet the responsible sourcing
standards set by the Organization for Economic Co-operation and
Development (OECD).
Policies
Selected policies are available on our Corporate website.
74
general supplier audits in 2023,
34 in Asia Pacific,
2 in Africa and 38 in Europe
74/74
audits included environment
and health & safety
74/74
audits included quality
3
Business ethics
P. 66Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Ethics and relationships
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
2023 activities
Our sustainability framework
2023 materiality assessment
Strategy and targets
Sustainable Development Goals
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
3
We are a signatory of the UN Global Compact. We support the
OECD Guidelines for Multinational Enterprises, and we apply the
UN Guiding Principles on Business & Human Rights in our work, to
identify and remediate any negative impact on people that is a di-
rect or indirect result of our operations.
We do not tolerate child labor, forced labor, discrimination, ha-
rassment, or abuse. We are committed to decent working hours and
compensation, freedom of association, and collective bargaining.
The health and safety of our employees is a top priority, and we
work continuously to identify, manage, and mitigate any risks of ac-
cidents and illness. We aim to have an open and transparent dialog
to engage with employees directly and, when applicable, with their
representatives.
Source: OECD p21 https://mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf
Due diligence process and supporting measures
Communicate
How impacts are addressed
Identify & assess adverse impacts
In operations, supply chains & business relationships
Track
Implementation and results
Cease, prevent or mitigate
Adverse impacts
1
6
Provide for or cooperate
In remediation when appropriate
2
3
5
4
Embed responsible
business conduct
Into policies and
management
systems
Salient Human Rights Impacts
Group affected Salient human rights impacts
Own workforce • Health and Safety
Workers along the value
chain
• Health and Safety/Health impacts
• Freedom of association
• Fair wages
• Forced labor
• Child labor
• Discrimination
• Harm to livelihoods
• Working hours
• Access to clean water
Communities affected
• Forced labor
• Child labor
• Discrimination
• Harm to livelihoods
• Land-related impacts
• Health impacts
• Access to clean water
Impact on end users • Health and Safety
Human rights statement
Human Rights Due Diligence
In 2023, we conducted a Human Rights Due Diligence (HRDD)
assessment. The assessment involved collaborative workshops with
a diverse internal team representing various departments and ge-
ographies in manufacturing, Sustainability, Human Resources, and
Purchasing in APAC, US and Europe.
Through these workshops, we pinpointed potential human rights
impacts across our value chain, and prioritized key risks in a heat
mapping exercise. This strategic approach helps us focus on ad-
dressing the most crucial risks for both our stakeholders and our
operations.
P. 67Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Corporate governance
The Corporate Governance Report describes the organizational bodies, rules,
and other governance structures by which the Electrolux Professional Group
is controlled and operated. The Group’s external auditors have reviewed this
report and their opinion has been included in the Auditor’s Report.
Chairman’s comments 68
Corporate governance report 69
Board of Directors 76
Group Management Team 78
Remuneration report 2023 80
Risk and risk management 82
P. 68Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Chairman’s comments
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Chairman's comments
Robust strategic and financial progress
Despite high inflation, macroeconomic uncertainty, and continued geo-political tension,
our markets held up well, particularly during the first half of the year. Sales and profitability im-
proved, and cash generation was strong. Electrolux Professional Group took several important
strategic steps this year. Two examples I’d like to highlight are progress in sustainability and the
acquisition of TOSEI in Japan in January 2024, which will further strengthen the Group.
In parallel to general governance duties and monitoring of external
dynamics, the Board of Directors has given particular attention to
reviewing the business area plans over the last year. This has special
significance given the reorganization of the Group in 2022. It is re-
assuring to see that the plans are making good progress in most of
the relevant, attractive segments. In addition, Group Customer Care
grew more than product sales, and investments continued in dig-
italization and connected products focused on delivering greater
customer value.
The somewhat weaker development of the US Food and
Beverage business, after a strong 2022, has also featured on the
Board’s agenda. Many steps have been taken to create a more
streamlined and efficient organization, including managing channel
partner dynamics in Food Service.
Electrolux Professional Group’s ambition is to be the sustainabil-
ity leader in our industry and the results achieved during the year
continue to support this aspiration. One tangible example is the CO₂
emissions reduction, where we met our 50%-reduction target for
2025 already in 2023. In addition, the Group’s near-term targets to
reduce indirect greenhouse gas emissions from the use of our prod-
ucts by 2030 have been validated by the Science Based Targets
initiative (SBTi). The company and the Board have also made efforts
to establish governance and reporting readiness for the compre-
hensive Corporate Sustainability Reporting Directive (CSRD), due for
the 2024 reporting.
Towards the end of the year, the Group announced the strategic
acquisition of TOSEI Corporation, a move that is consistent with the
Board’s intention to use the strong cash generation to also expand
inorganically. With the acquisition of TOSEI, Electrolux Professional
will become a larger player in Japan, and further strengthen the
Group's position in Asia. In general, acquisition opportunities remain
on the Board agenda.
Besides regular Board meetings, the Board has carried out
two visits during the year. One meeting was in Milan, Italy where
we visited the trade fair HOST, and one Board meeting was held
in Ljungby, Sweden, the center of the Laundry operations.
At a business level, demand held up well in the first half of the
year but declined somewhat during the second half as markets
softened. Despite this, the Group has managed to increase sales
and profit, including improving the margin. Overall we have con-
tinued to build a stronger company, which is also reflected in the
Board’s proposal to increase the dividend to SEK 0.80 (0.70) per
share, in line with the dividend policy.
The Board would like to express its gratitude to Electrolux
Professional Group’s management and employees for their great
contributions during the year.
Kai Wärn,
Chairman of the Board
Towards the end of the year, the
Group announced the strategic
acquisition of TOSEI Corporation,
a move that is consistent with the
Board’s intention to use the strong
cash generation to also expand
inorganically. With the acquisition
of TOSEI, Electrolux Professional will
become a larger player in Japan,
and further strengthen the Group's
position in Asia.
Kai Wärn, Chairman of the Board
P. 69Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Corporate governance report
Good corporate governance is about ensuring that Electrolux Professional Group is managed
as responsibly and efficiently as possible to meet our obligations as a public company, and
also to create value for shareholders in an efficient, responsible, and sustainable manner.
Corporate governance determines how rights and responsibilities are distributed between a
company’s various bodies in accordance with internal processes and the laws and regulations
in effect.
External and internal rules
The governance of the Group is defined by external and internal
rules. The external rules comprise the Swedish Companies Act,
Nasdaq Stockholm’s Rule Book for Issuers, and the Swedish Code
of Corporate Governance (the “Code”), as well as other relevant
Swedish and foreign laws and regulations. The Code is available at
www.corporategovernanceboard.se and describes good practices
in the stock market.
The internal rules consist of the Articles of Association, the Rules
of Procedure of the Board of Directors, the Electrolux Professional
Code of Conduct, policies for information, finance, credit, internal
control, risk management, anti-corruption, and other group policies.
Application of the Code
Electrolux Professional applies the Code without deviations and
did not report any deviations from the Code in 2023. There were
no infringements of applicable stock exchange rules by Electrolux
Professional, and no breach of good practice on the securities
market were reported by the Disciplinary Committee of Nasdaq
Stockholm nor the Swedish Securities Council in 2023. This corpo-
rate governance report has been drawn up as part of Electrolux
Professional’s application of the Code.
Shares
According to Electrolux Professional’s Articles of Association, the
share capital shall not be less than SEK 20,000,000 and not be
more than SEK 80,000,000, divided into not less than 200,000,000
shares and not more than 800,000,000 shares.
Electrolux Professional registered share capital is SEK 28,739,745,
represented by 287,397,450 shares of which 8,031,461 are Class A
shares and 279,365,989 are Class B shares (as of December 31,
2023), each with a quota value of SEK 0.1.
Nomination Committee
Shareholders at
the Annual General Meeting
Group Management
Internal Audit
External Audit
Remuneration Committee
Audit Committee
Board of Directors
1
2
3
4
5
7
6
Corporate governance structure
P. 70Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Each Electrolux Professional Class A share entitles the holder to
one vote and each Electrolux Professional Class B share entitles the
holder to one tenth of a vote at the General Meeting.
The Class B shares of Electrolux Professional are listed on
Nasdaq Stockholm and traded on the Large Cap list.
Since September 2020, Class A shares have been delisted from
trading on Nasdaq Stockholm. Holders of Electrolux Professional
Class A shares have the right to require that Class A shares are con-
verted to Class B shares. During 2023, 13,853 Class A shares were
converted to Class B shares.
1
Shareholders
The number of registered shareholders at December 31, 2023 was
44,069. On December 31, 2023, Investor AB was the largest share-
holder, with a holding corresponding to 32.4% of the votes and
20.5% of the share capital in Electrolux Professional AB. For more
information about the shares and shareholders, see page 164-166.
Dividend Policy
Electrolux Professional’s target is for the dividend to correspond to
approximately 30% of the income for the period. For the financial
year of 2023 the Board of Directors proposes a dividend to the
shareholders of SEK 0.80 (0.70) per share, corresponding to around
30% of the profit for the year.
General Meeting of shareholders
Pursuant to the Swedish Companies Act, the General Meeting is the
supreme decision-making body in a Swedish limited liability compa-
ny, and shareholders exercise their voting rights at such meetings.
The Annual General Meeting (AGM) was held on April 26, 2023 in
Stockholm and in combination with advance postal voting.
The AGM of Electrolux Professional is held annually before the
end of June. In addition to the AGM, Extraordinary General Meetings
(EGM) can be convened when required. The General Meetings of
Electrolux Professional are held in the municipality of Stockholm,
where the company’s registered office is located. The date and
place of the AGM is communicated on the company’s external
website no later than the publication of the quarterly report for the
third quarter.
At the AGM, shareholders of Electrolux Professional resolve on
several matters, including confirmation of income statements and
balance sheets, the disposition of the company’s profit or loss, dis-
charge of liability for the members of the Board and the CEO, com-
position of the Nomination Committee, election of members of the
Board (including the Chairman of the Board) and auditor, remunera-
tion for the members of the Board and auditor, as well as guidelines
for remuneration for the CEO and other senior executives.
The shareholders of Electrolux Professional also resolve on other
matters that are important to the company, for example any chang-
es to the Articles of Association, at the General Meeting.
Shareholders who wish to have a matter dealt with must submit
a written request to the Board to that effect. The request must have
been received by Electrolux Professional no later than seven weeks
prior to the General Meeting.
Right to attend the General Meeting
All shareholders who are directly recorded in the share register
maintained by Euroclear Sweden five working days prior to the
General Meeting, and who have notified the company of their inten-
tion to participate, are entitled to attend the General Meeting and
vote in proportion to the number of shares they hold.
Shareholders whose shares are nominee registered through a
bank or other nominee must request that their shares be temporarily
registered in their own names in the register of shareholders main-
tained by Euroclear Sweden, in order to be entitled to participate in
the General Meeting.
The next AGM will be held on April 25, 2024, in Stockholm.
2
Nomination Committee
At the Extraordinary General Meeting held on December 5, 2019, the
current instruction for the Nomination Committee was adopted to
apply until further notice. No changes were proposed or adopted
during 2023.
The Nomination Committee shall comprise five members. The
members should be one representative of each of the four larg-
est shareholders, in terms of voting rights, that wish to participate
in the Committee, together with the Chairman of the Electrolux
Professional Board. The composition of the Nomination Committee
shall be based on shareholder statistics from Euroclear Sweden as
of the last banking day in August in the year prior to the AGM and
on other reliable shareholder information which is provided at such
time. The names of the representatives and the names of the share-
holders they represent shall be announced as soon as they have
been appointed. If the shareholder structure changes during the
term of office of the Nomination Committee, the composition of the
Nomination Committee may be adjusted accordingly. Changes in
the composition of the Nomination Committee shall be published
as soon as any such changes have been made.
The Nomination Committee’s task includes preparing
a proposal to the next AGM regarding:
> The Chair of the AGM
> The number of Board members
> The nominees for election to the Board
> The Chair of the Board
> Remuneration for Board members including work on
Board committees
> Auditors and auditor’s fees
> Amendments to instructions for the Nomination Committee
The Audit Committee assists the Nomination Committee in prepar-
ing proposals for auditors, and the Nomination Committee’s pro-
posal includes the Audit Committee’s recommendation on the elec-
tion of auditors. The Nomination Committee’s proposals are publicly
announced no later than on the date of notification of the AGM.
Shareholders may submit proposals for nominees to the Nomination
Committee.
The Chairman of the Board conducts a yearly evaluation of the
Board by way of a survey to the Board members and subsequent
discussions, to assess the Board’s composition, qualifications,
efficiency, and work procedures. The conclusions are presented to
the Nomination Committee. On this basis and if deemed appropri-
ate after subsequent discussions and interviews, the Nomination
Committee determines whether the existing Board should be
strengthened with additional expertise or if there are any other rea-
sons to make changes to the composition of the Board. In making
such determinations and (if applicable) evaluating potential new
candidates for the Board, the Nomination Committee takes into
consideration the objective to achieve a gender balance in the
Board. The Nomination Committee applies rule 4.1 of the Swedish
Code as its diversity policy.
In addition, the Nomination Committee takes into consideration
the need to ensure that the independence requirements of the
Swedish Code are met. These requirements stipulate that at least
the majority of Board members must be independent from Electrolux
Professional’s management, and that at least two (from such
P. 71Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
majority) are also independent of Electrolux Professional’s largest
shareholders. The Nomination Committee also takes into account
any proposals it receives about the composition of the Board that
may have been suggested by other shareholders.
Nomination Committee for the 2023 AGM
The Nomination Committee for the AGM 2023 was comprised of
five members, led by Petra Hedengran of Investor AB. For the pro-
posal for the AGM 2023, the Nomination Committee assessed the
composition and size of the Board and the expected demands on
the Board based on the Group’s future strategy. The Nomination
Committee applied rule 4.1 of the Code as the diversity policy in
its nomination work.
The Nomination Committee proposed re-election of all Board
members including re-election of Kai Wärn as Chairman of the
Board and election of Josef Matosevic as a new member of the
Board. The Nomination Committee also proposed, in accordance
with the recommendation by the Audit Committee, re-election of
Deloitte AB as the company’s auditors for the period until the end
of the AGM 2024.
Nomination Committee ahead of the 2024 AGM
The Nomination Committee for the 2024 AGM is based on the
ownership structure as of August 31, 2023, and was announced in
a press release on September 21, 2023.
The Nomination Committee members are:
> Petra Hedengran, Chairman, appointed by Investor AB
> Joachim Spetz, appointed by Swedbank Robur Funds
> Jesper Wilgodt, appointed by Alecta
> Suzanne Sandler, appointed by Handelsbanken Funds
> Kai Wärn, Chairman of the Board of Electrolux Professional AB
3
Board of Directors
The Board of Directors has the overall responsibility for Electrolux
Professional’s organization and administration. The duties of the
Board of Directors are set forth in the Swedish Companies Act,
the company’s Articles of Association and the Code. In addition,
the work of the Board of Directors is governed by the Rules of
Procedure of the Board of Directors, adopted annually by the
Board. The instructions for the Board of Directors govern, among
other things, the division of work and responsibility between the
Board of Directors, its Chairman, and the CEO, and specify finan-
cial reporting procedures for the CEO. The Board of Directors also
adopts instructions for the Board committees.
Composition and Independence of the Board of Directors
According to Electrolux Professional’s Articles of Association, the
Board of Directors shall be comprised of no less than three and no
more than nine members, with no more than three deputy members,
elected by the shareholders at the AGM. In addition and by law,
employee organizations are entitled to appoint employee represen-
tatives. The Board of Directors currently comprises eight members
elected by the 2023 AGM for a term of office extending until the
close of the 2024 AGM, with no deputies, as well as two ordinary
members and two deputy appointed by Swedish employee
organizations.
The AGM elects the Chairman of the Board. Directly after the
AGM, the Board holds a meeting for formal constitution at which
the members of the committees of the Board are elected. The Chair-
man of the Board of Electrolux Professional is Kai Wärn. All current
members of the Board are non-executive members.
According to the Code, the majority of the Board members
appointed by the General Meeting must be independent in rela-
tion to the company and its Group Management Team. No more
than one Board member elected by the General Meeting may be
a member of the Group Management Team of the company or a
subsidiary. At least two of the Board members that are indepen-
dent in relation to the company and the Group Management Team
Board of Directors 2023 – AGM 2024
Name Position
Board member
of Electrolux
Professional since
Independent in rela-
tion to the company
and the Executive
Management Team
Independent in
relation to the
company’s major
shareholders
Audit
Committee
Remuneration
Committee
Share-
holding
1
Kai Wärn
2
Chairman 2019 Yes Yes – Member 104,000
Katharine Clark Member 2020 Yes Yes – – 9,000
Lorna Donatone Member 2019 Yes Yes Member – 9,000
Hans Ola Meyer Member 2019 Yes Yes Chairman – 9,000
Josef Matosevic Member 2023 Yes Yes – – –
Daniel Nodhäll Member 2019 Yes No Member Member 20,000
Martine Snels Member 2019 Yes Yes – Chairman 7,000
Carsten Voigtländer Member 2019 Yes Yes – – 10,000
Joachim Nord Member* 2019 – – – – 130
Jens Pierard Member* 2022 – – – – –
Per Magnusson Deputy* 2019 – – – – –
* Employee representative.
1) Own holdings and holdings of related persons and affiliated companies. Each Board member's shareholding in Electrolux Professional as per March 1, 2024
2) Kai Wärn also has 778,816 call options issued by Investor AB entitling him to the right to purchase Electrolux Professional B shares
Gender distribution
Women, 37. 5 %Men, 62.5%
P. 72Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
must also be independent in relation to the major shareholders
of the company. According to the Code, a major shareholder is a
shareholder that directly or indirectly controls 10% or more of the
shares or votes in the company. Independence is assessed by the
Nomination Committee.
The Board is considered to be in compliance with relevant
requirements for independence. All Directors apart from Daniel
Nodhäll are considered to be independent. Daniel Nodhäll is
considered to be independent in relation to the company and the
Group Management Team, but not in relation to major shareholders
of Electrolux Professional.
Management of the company’s affairs
The Board of Directors is responsible for the organization of
Electrolux Professional and the management of the company’s
affairs. The Board’s tasks include adopting strategies, targets, busi-
ness plans, budgets, interim reports, year-end financial statements,
and policies. The Board of Directors is also required to monitor the
company’s financial performance and ensure that the company
has good internal control, including formalized routines to ensure
that approved principles for financial reporting and internal control
are applied, and that financial reports are produced in accordance
with legislation, applicable accounting standards, and other re-
quirements for listed companies. Furthermore, the Board of Directors
decides on major investments and changes in the organization and
operations of the Group. The Board of Directors is responsible for
regularly evaluating the work of the CEO.
Moreover, the Board of Directors is to ensure that there is a satis-
factory process for monitoring the company’s compliance with laws
and other regulations relevant to operations, as well as the applica-
tion of internal guidelines, and to evaluate operations on the basis
of the objectives and policies set by the Board of Directors.
The Board of Directors is also tasked with identifying how
sustainability issues impact risks to, and business opportunities for,
the company, and defining appropriate guidelines to govern the
company’s conduct in society with the aim of ensuring its long-term
value creation capability. The Board shall ensure that the company
has formalized procedures to ensure that the established principles
for sustainability reporting are complied with and that Electrolux
Professional's sustainability reporting is prepared in accordance
with laws and applicable accounting standards. Read more about
sustainability governance on page 150.
The Chairman of the Board of Directors leads and organizes
the work of the Board, ensures that the Board fulfils its tasks, and
ensures that the Board’s decisions are implemented. The Chairman
of the Board of Directors shall, together with the CEO, monitor the
company’s performance and prepare and chair Board meetings.
The Chairman is also responsible for ensuring that the Board
members evaluate their work each year and continuously receive
the information necessary to effectively perform their tasks. The
Chairman represents the company in relation to its shareholders.
The Group’s external auditors report to the Board as necessary,
but at least once a year. A minimum of one such meeting is held
without the presence of the CEO, or any other member of the Group
Management Team. The external auditors also attend the meetings
of the Audit Committee. The Audit Committee reports to the Board
after each of its meetings. Minutes are taken at all meetings and are
made available to all Board members and to the auditors.
Board meetings in 2023
In 2023, the Board held twelve meetings, ten of which were held
either as physical meetings or web meetings. Two meetings were
held per capsulam.
All scheduled 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 meet-
ings. Ordinary Board meetings usually last for half a day or one
entire day in order to allow time for presentations and discussions.
Electrolux Professional’s General Counsel serves as the secretary
at the Board meetings. Each scheduled ordinary Board meeting
includes a review of the Group’s results and financial position, as
well as the outlook for the forthcoming quarters, as presented by
the CEO. The meetings also deal with investments, credit limits, and
other matters that are to be submitted to the Board under the Rules
of Procedure or the company’s policies. The Board decides on all
capital investments exceeding SEK 25m and receives reports on all
investments exceeding SEK 10m.
Finally, in most scheduled Board meetings a business function or
strategic item is presented and reviewed.
Key focus areas for the Board during 2023
As the effects of the pandemic declined, and despite the macro-
economic impact of Russia’s war on Ukraine in terms of inflation,
increased energy prices, and interest rates, overall market demand
held up well during the first half of the year. During the second half
of the year organic sales declined and market demand softened.
As a result of the implementation of the new and simplified
> Review of BA Food Americas
> Q1 quarterly financial
statements
> AGM, statutory board
meeting
> Review of BA Beverage
and Food Preparation
> Q4 quarterly and Year-end
financial statements
> Review of strategy BA
Laundry
> Approval of 2022 Annual
Report
> Q2 quarterly financial statements
> Budget 2024
> Group Strategic Plan
> Board Trip Ljungby, Sweden
> Board work evaluation
> Acquisition of TOSEI
> Board Trip Milan, Italy
> Review BA Food Europe
> Review BA Food APAC-MEA
> Q3 quarterly financial
statements
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The work of the Board in 2023
P. 73Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
organization to be able to execute faster on the company's strate-
gic priorities and strategic plans, five Business Areas, Food Europe,
Food Americas, Food APAC & MEA, Beverage & Food Preparation,
and Laundry, were presented and reviewed by the Board
The sustainability strategy continued to develop and in August
Electrolux Professional Group’s near-term targets to reduce green-
house gas emissions (Scope 1 and 2) and reduce indirect use-phase
emissions (Scope 3) by 2030 were validated by the Science Based
Targets initiative (SBTi). Another significant task consisted of estab-
lishing the governance and monitoring the preparations and readi-
ness for Corporate Sustainability reporting.
In October one Board meeting was held in Milan and the Board
visited the trade fair HOST. In December 2023 a board meeting was
held in Ljungby, Sweden and the Board visited the laundry plant.
Evaluation of the Board of Directors
The Board evaluates its work annually with regard to working pro-
cedures, the working climate, and the focus of the Board's work. This
evaluation also focuses on access to, and requirements for, special
competence on the Board. The evaluation is a tool for the develop-
ment of the Board work and also serves as input for the Nomination
Committee’s work.
Each year, the evaluation of the Board is initiated and led by the
Chairman of the Board. Evaluation tools include questionnaires and
discussions. In 2023, Board members responded to written ques-
tionnaires. The evaluations were subsequently discussed individually
and at a Board meeting. The result of the evaluations was presented
to the Nomination Committee.
Fees for Board Members
The AGM determines the compensation for the Board of Directors
for a period of one year until the next AGM. The compensation is
distributed between the Chairman, other members of the Board,
and remuneration for committee work.
The Annual General Meeting 2023 resolved on fees to the Board
of Directors in accordance with the Nomination Committee’s pro-
posal. Yearly fee to the Chairman of the Board of Directors of SEK
1,680,000 and SEK 560,000 to each of the other Directors appoint-
ed by the Annual General Meeting not employed by Electrolux
Professional. In addition to these fees, the Annual General Meeting
resolved on an additional fee of USD 4,000 per meeting to be
paid to each Director that resides outside Europe for attendance
at ordinary physical Board meetings in Sweden or Italy. Fees for
committee work to the members who are appointed by the Board
of Directors were approved as follows: SEK 175,000 to the Chairman
of the Audit Committee and SEK 115,000 to each of the other mem-
bers of the Audit Committee and SEK 115,000 to the Chairman of
the Remuneration Committee and SEK 85,000 to each of the other
members of the Remuneration Committee.
The compensation paid in 2023, shown in the table below, refers
to compensation until the AGM in 2023 and three quarters of the
compensation authorized by the AGM in 2023, see also note 26.
4
Board committees
According to the Swedish Companies Act and the Code, the Board
of Directors shall institute an audit committee and a remuneration
committee. The majority of each committee’s members are indepen-
dent in relation to the company and its Group Management. For the
Audit Committee, at least one of the members who is independent
in relation to the company and its Group Management team is also
to be independent in relation to the company’s major shareholders.
The major tasks of these committees are preparatory and ad-
visory, but the Board may delegate decision-making powers on
specific issues to the committees. The issues considered at com-
mittee meetings shall be recorded in minutes of the meetings and
continuously reported to the Board of Directors. The members and
Chairmen of the committees are appointed at the statutory Board
meeting following the election of Board members. The Board has
also determined that issues may be referred to ad hoc committees
dealing with specific matters.
Audit Committee
The main tasks of the Audit Committee are to oversee the process
of Electrolux Professional’s financial reporting, internal control,
and internal auditing in order to secure the quality of the Group’s
external reporting. During 2023 the tasks of the Audit Committee
have also included oversight of the preparations and readiness
for Corporate Sustainability reporting. The Audit Committee is also
tasked with supporting the Nomination Committee with proposals
when electing external auditors.
The Audit Committee consists of the following three Board
members: Hans Ola Meyer (Chairman), Lorna Donatone, and Daniel
Nodhäll. The external auditors report to the Committee at each or-
dinary meeting. The CEO, CFO, Head of Group internal audit, and
General Counsel participated in all the Audit Committee meetings
in 2023.
During 2023 the Audit Committee held five meetings. All Audit
Committee members attended all the meetings.
Remuneration Committee
One of the Remuneration Committee’s primary tasks is to propose
guidelines for the remuneration of the members of the Group
Management Team. The Committee also proposes changes in
remuneration of the CEO, for resolution by the Board, and reviews
Board of Directors – remuneration and meeting attendance
Total remuneration
2023, ’000 SEK
Board meeting
attendance
Remuneration
Committee attendance
Audit Committee
attendance Independence
1
Kai Wärn 1,751 12/12 4/4 Yes
Katharine Clark 556 11/12 Yes
Lorna Donatone 757 12/12 5/5 Yes
Josef Matosevic 507 7/8
2)
Yes
Hans Ola Meyer 730 12/12 5/5 Yes
Daniel Nodhäll 753 12/12 4/4 5/5 No
Martine Snels 670 11/12 4/4 Yes
Carsten Voigtländer 556 12/12 Yes
1) For further information about the independence assessment, see page 71.
2) Mr Matosevic was elected in April 2023.
P. 74Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
CEO
Our organization
Business Area
Food Europe
Finance
Communications,
Investor Relations,
Brand &
Digital Marketing
IT &
Digital
Transformation
Human
Resources
Business Area
Food Americas
Business Area
Laundry
Business Area
Beverage &
Food Preparation
Business Area
Food APAC & MEA
Legal
Operations &
Innovation
Competence Center
and resolves on changes in remuneration of other members of the
Group Management Team as proposed by the CEO.
The Remuneration committee consists of the following three
Board members: Martine Snels (Chairman), Kai Wärn, and Daniel
Nodhäll. The Chief Human Resources Officer participated in the
meetings and was responsible for the meeting preparations.
During 2023 the Remuneration Committee held four meetings,
one of which was per capsulum. Attendance is presented in the
table on the previous page.
5
Group Management Team
The Group Management Team currently includes the CEO and
eleven members. The CEO is appointed by, and receives instruc-
tions from, the Board of Directors. The CEO, in turn, appoints other
members of the Group Management Team and is responsible for the
ongoing management of the Group in accordance with the Board’s
guidelines and instructions.
The Group Management Team holds monthly meetings online,
and quarterly in-person meetings lasting two or three days, to re-
view the previous month’s results, update forecasts and plans, and
discuss strategic issues.
Key focus areas for the Group Management Team during 2023
> Continued implementation of the new organization consisting
of the two reportable segments Food & Beverage and Laundry,
with five Business Areas focused on customer categories and
geographies: Food Europe, Food Americas, Food APAC & MEA,
Beverage & Food Preparation, and Laundry.
> Digital transformation.
> Continued development of sustainability strategy including
readiness for the Corporate Sustainability Reporting Directive.
> To address global macro-economic effects, Electrolux Professional
has established procedures and internal bodies (“boards”) for the
preparation and execution of key activities and processes, such
as the Insider and Disclosure Committee, the Finance Governance
Board, the Code of Conduct Steering Group, the Audit Board, the
Enterprise Risk Management Board, and the Sourcing Board. In
addition boards and forums have been created to ensure collab-
oration and coordination between the Business Areas, such as the
Chains and Food Product Board.
> The Acquisition of TOSEI Corporation.
Management changes
Alberto Zanata, President and CEO acted as the head of the
Business Area Food Europe from July 1 2022 to March 6, 2023 when
Camilla Monefeldt Kirstein took up the position as President of the
Business Area Food Europe.
6
Auditors
The 2023 AGM re-elected Deloitte AB for the period up to and in-
cluding the 2024 AGM. Jonas Ståhlberg, authorized public accoun-
tant and a member of FAR (the professional institute for authorized
public accountants in Sweden), is the auditor-in-charge. During
2023 a tender process was conducted for the election of auditor at
the coming 2024 AGM. For specification of remuneration to auditors
refer to note 12.
Deloitte provides an audit opinion regarding Electrolux
Professional AB, the financial statements of the majority of its
subsidiaries, the consolidated financial statements for the Electrolux
Professional Group, and the administration of Electrolux Professional
AB. The auditors also conduct a review of the interim report for
the second quarter. The audit is conducted in accordance with
the Swedish Companies Act, International Standards on Auditing
(ISA), and generally accepted auditing standards in Sweden. Audits
of local statutory financial statements for legal entities outside of
Sweden are performed as required by laws or applicable regula-
tions in each country, including issuance of audit opinions for the
various legal entities.
7
Internal Audit
The Group Internal Audit function provides independent, objec-
tive assurance designed to add value and improve Electrolux
Professional’s operations. Group Internal Audit assists Electrolux
Professional in accomplishing its objectives by bringing a system-
atic, disciplined approach to evaluating and improving the effec-
tiveness of the organization’s governance, internal control, and risk
management processes.
Group Internal Audit assignments are conducted according
to a risk-based plan developed annually and approved by the
Audit Committee. The audit plan is derived from an independent
risk assessment conducted by Group Internal Audit to identify and
evaluate risks associated with the execution of the Company’s
strategy, operations, and processes. The audits are executed using
a methodology for evaluating the design and implementation of
internal controls to ensure that risks are adequately addressed, and
processes operate efficiently. Opportunities for improving the effec-
tiveness of the governance, internal control, and risk management
processes identified in the internal audits are reported to manage-
ment for action. A summary of audit results is provided to the Audit
Committee, as is the status of management’s implementation of
agreed actions to address findings identified in the audits.
The Head of Group Internal Audit reports to the Audit Committee
and is managed administratively by the CFO.
P. 75Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Corporate governance report
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Internal control over financial reporting
Electrolux Professional uses the COSO framework (Committee of
Sponsoring Organizations of the Treadway Commission) as a basis
for internal control over financial reporting. The processes for inter-
nal control, risk assessment, control activities, information and com-
munication, and monitoring regarding the financial reporting are
designed to ensure reliable overall financial reporting and external
financial statements in accordance with IFRS, applicable laws and
regulations, and other requirements. This process involves the Board
of Directors, the Audit Committee, the Group Management Team
and all employees.
Control environment
The Board has overall responsibility for establishing an effective
system of internal control. The Audit Committee regularly reviews
and evaluates the adequacy of the internal control framework. It
monitors control deficiencies identified within the Group’s internal
control environment and oversees implementation of action plans
if applicable. The CEO and the Group Management Team have the
ultimate responsibility for internal controls within their areas of re-
sponsibility.
All entities within the Group must maintain adequate internal
controls. As a minimum requirement, control activities should ad-
dress key risks identified within the Group. Limits of responsibilities
and authorities are provided in the Delegation of Authority Policy,
manuals, policies, and procedures and codes, including the Code
of Conduct, the Group Workplace Policy, and the Group Anti-
Corruption Policy, as well as in policies for information and finance,
and in the finance manual. Together with laws and external regu-
lations, these internal guidelines form the control environment and
all Electrolux Professional employees are held accountable for
compliance.
Risk assessment
Risk assessment is the assessment of risks in the various processes
and data points that feed into the Company’s financial reports. This
includes identifying risks of not fulfilling the fundamental criteria,
i.e., completeness, valuation, existence and occurrence, rights and
obligations, and presentation and disclosure of significant accounts
in the financial reporting for the Group, as well as the risk of loss or
misappropriation of assets and potential fraud.
Control activities
Control activities aim to mitigate the risks identified and ensure
accurate and reliable financial reporting as well as process
efficiency. Control activities include ongoing evaluations, self-
assessments, and internal audit to ascertain whether the compo-
nents of internal control are present and functioning.
Information and communication
Information and communication within the Group regarding
risks and controls helps to ensure that the right business decisions
are made. Guidelines for financial reporting are communicated to
employees, for instance by ensuring that manuals and policies are
published and accessible through the Group-wide intranet.
Monitoring
Monitoring and testing of control activities is performed periodically
to ensure that risks are properly mitigated. The effectiveness of con-
trol activities is monitored continuously at three levels: Group, legal
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,
and self-assessment results.
Internal audit independently evaluates the design and im-
plementation of controls based on the audit scope, and proactively
proposes improvement to the control environment. Controls that
have failed must be remediated. Management establishes and im-
plements action plans to correct weaknesses. The Audit Committee
reviews, evaluates, and monitors the internal control process for
financial reporting.
Responsible for internal control
Board of Directors
Review, evaluate, and monitor the adequacy and coherence of the Internal control framework
Audit Committee
Provide leadership and direction to local management and review the effectiveness of internal control
Group Management
Internal Control Function Local and Functional Management Internal audit
Coordinate and provide support for
internal control self assessment
process and reporting to Group
Management and Audit Committee
Independently evaluate the efficiency
and effectiveness of internal control
Perform and
manage internal
controls
Internal control
self assessment
Support Audit
P. 76Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Board of directors
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Board of
Directors
KAI WÄRN KATHARINE CLARK LORNA DONATONE JOSEF MATOSEVIC HANS OLA MEYER
Position & year elected
Chairman of the Board of
Directors and Board member
since 2019. Member of the
Remuneration Committee.
Board member since 2020. Board member since 2019.
Member of the Audit Com-
mittee.
Board member since 2023. Board member since 2019.
Chairman of the Audit
Committee.
Year of birth
1959 1979 1957 1971 1955
Nationality
Swedish British American American Swedish
Education
M.Sc. in Mechanical Engi-
neering, KTH Royal Institute
of Technology, Stockholm,
Sweden.
B.Sc. (Hons) Business Infor-
mation Systems Management,
Bournemouth University, UK.
Professional Diploma, Char-
tered Institute of Marketing,
UK.
MBA, Texas Christian Universi-
ty, USA. B.Sc. Tulane University,
USA.
B.Sc. in Mechanical
Engineering from Bayerische
Julius-Maximilian’s Universität
in Würzburg, Germany.
B.Sc. in Economics and
Business Administration
from Stockholm School of
Economics, Sweden.
Other board assignments
Board member of Sandvik AB,
Mälarhamnar AB, Sunstreet
Energy AB, Exandio Holding
AB, and Comparsio AB.
– Board member of Dawn Food
Products Inc., Sbarro, LLC and
National Restaurant Associa-
tion Educational Foundation,
USA.
Board member at Helios Tech-
nologies.
-
Current and previous positions
Previously CEO and President
Husqvarna AB, Partner at IK
Investment Partners Norden
AB, President and CEO of
Seco Tools AB, various
positions within ABB.
VP BD, Innovation and
Sustainability at Gunnebo.
Previously VP Commercial De-
velopment/CCO, ASSA ABLOY
Opening Solutions EMEAI.
Previously various senior posi-
tions within the Sodexo Group
President and CEO, Helios
Technologies. Previously
Executive Vice President and
Chief Operating Officer and
interim President and CEO of
Welbilt, Inc., Executive Vice
President of Global Operations
at The Manitowoc Company,
Inc., Executive Vice President
of Global Operations Oshkosh
Corporation, as well as various
executive positions with
Wynnchurch Capital.
Previously CFO, Senior Vice
President Controlling and
Finance at Atlas Copco AB.
Independence
Independent in relation to the
company and the Group Man-
agement Team as well as the
company’s major shareholders.
Independent in relation to
the company and the Group
Management Team as well as
the company’s major share-
holders.
Independent in relation to the
company and the Group Man-
agement Team as well as the
company’s major shareholders.
Independent in relation to the
company and the Group Man-
agement Team as well as the
company’s major shareholders.
Independent in relation to
the company and the Group
Management Team as well as
the company’s major share-
holders.
Shareholding at March 4, 2024
104,000 Class B shares and
778,816 call options issued by
Investor AB entitling him to the
right to purchase Electrolux
Professional B shares.
9,000 Class B shares. 9,000 Class B shares – 9,000 Class B shares.
P. 77Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Board of directors
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
DANIEL NODHÄLL MARTINE SNELS CARSTEN VOIGTLÄNDER
Position & year elected
Board member since 2019. Mem-
ber of the Remuneration Commit-
tee and the Audit Committee.
Board member since 2019.
Chairman of the Remuneration
Committee.
Board member since 2019.
Year of birth
1978 1969 1963
Nationality
Swedish Belgian German
Education
M.Sc. in Economics and
Business Administration,
Stockholm School of
Economics, Sweden.
M.Sc. Industrial engineering,
K.U. Leuven, Campus Geel,
Belgium. Studies in mathematics,
Universiteit Antwerpen, Belgium.
Advanced Finance, London Busi-
ness School, England. Finance for
non-financials, Singapore Insti-
tute of Management, Singapore.
B2B Marketing, Vlerick Business
School, Belgium.
Degree in Mechanical
Engineering, Technical University
of Braunschweig, Germany.
Doctoral Degree/Dr.-Ing.,
Process Engineering, Technical
University of Braunschweig,
Germany. Advanced Manage-
ment Programme, INSEAD
Other board assignments
Board member of Husqvarna AB. Board member of SIG Group AG,
member of the Audit Committee
and member of the Nomination
and Governance Committee,
Board member of Urus Group
LLC, Board member of Prodrive
Technologies Group B.V.
Board member of Arbonia AG
and BBC Group AG. Non-Exec-
utive Director of INNIO Group,
OIKOS International and STULZ
GmbH. Member of the Founda-
tion Board of Friedhelm Loh Sti-
fung. Member of the Supervisory
Board of Testo Management SE.
Current and previous positions
Head of Listed Companies at
Investor AB.
CEO and owner of L’Advance B.V.
Previous Non-Executive Director
of Resilux NV and Member of the
Supervisory Board of Vion Food
Group NV. Previous member
of the Executive Board of GEA
Group AG and various positions
within FrieslandCampina NV,
including Chief Operating Officer
on the Board and Executive
Director Ingredients.
CEO and owner of Voiglaender
Board Advisory. Previously CEO
of Vaillant Group.
Independence
Independent in relation to
the company and the Group
Management Team, but not in
relation to the company’s major
shareholders.
Independent in relation to
the company and the Group
Management Team as well as the
company’s major shareholders.
Independent in relation to
the company and the Group
Management Team as well as
the company’s major share-
holders.
*Shareholding at March 4, 2024
20,000 Class B shares. 7,000 Class B shares 10,000 Class B shares
JOACHIM NORD
Position & year elected Board member since
2019. Employee representative of the Council for
Negotiation and Cooperation (PTK).
Year of birth 1966 Nationality Swedish
Shareholding* 130 Class B shares.
PER MAGNUSSON
Position & year elected Deputy board mem-
ber since 2019. Employee representative of the
Swedish Confederation of Trade Unions (LO).
Year of birth 1964 Nationality Swedish
Shareholding* –
JENS PIERARD
Position & year elected Board member since
January 1, 2023. Employee representative of the
Swedish Confederation of Trade Unions (LO).
Year of birth 1968 Nationality Swedish
Shareholding* –
HELEN ÅKERMAN
Position & year elected Deputy board member
since 2024. Employee representative of Unionen
Year of birth 1982 Nationality Swedish
Shareholding* –
P. 78Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Group Management Team
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Group Management Team
ALBERTO ZANATA PAOLO SCHIRA
CAMILLA MONEFELDT
KIRSTEIN
DAVE HERRING PHILIPPE ZAVATTIERO RICHARD FLYNN
Position
President and Chief Executive
Officer since 2009.
President Business Area
Laundry, since 2022.
President Business Area Food
Europe since March 2023.
President Business Area Food
Americas, since 2022.
President Business Area
Beverage and Food Prepara-
tion, since 2021.
President Business Area Food
APAC and MEA since 2022.
Year of birth
1960 1975 1972 1964 1961 1980
Nationality
Italian Italian Norwegian American French British
Education
Master’s degree in Electronic
Engineering with Business
Administration, Padua
University, Italy.
Master’s Degree, Engineering,
University of Trieste, Italy.
Master's degree in Industri-
al Economics, Norwegian
University of Science and
Technology. Master's degree
in Operational Research,
London School of Economics
and Political Science.
MBA, University of Southern
New Hampshire, USA. B.Sc
in Mechanical Engineering,
University of Iowa, USA.
Master’s Degree of
Engineering, National Institute
Polytechnique of Grenoble,
France. Master’s degree
ESSEC Business School Paris,
France.
Business management,
University of Gloucestershire,
England.
Other assignments
– – Board member of Knowit AB. – Board member of Institut Paul
Bocuse, France.
–
Previous positions
Head of Professional
Products, Executive Vice
President within the Electrolux
Group
Most recently SVP & GM
Commercial Organization
Europe. Various senior posi-
tions within the Professional
Products business area of the
Electrolux Group, including
SVP Business Development
and Vice President Business
Unit Laundry.
Recently President Personal
Protection Equipment Division
at Hultafors Group. Previous-
ly Executive Vice President
Snickers Workwear and Fris-
tads AB. Various management
positions at Oriflame Cosmet-
ics, SAS Group, K-World, and
Management consultant at
McKinsey & Company.
Most recently President
Unified Brands, part of the
Group Management Team of
Electrolux Professional since
December 2021. VP/GM
positions at Avery Dennison
Inc.
SVP & GM Europe Electrolux
Professional, SVP of the
Commercial Organization
Europe within the Professional
Products business area of the
Electrolux Group. Board
member of Institut Paul
Bocuse, France.
Most recently, since 2021 SVP
& GM Commercial Organiza-
tion APAC & MEA. Previously
Sales Director Chains, APAC
& MEA. Various roles within
Electrolux Professional in
Europe and Asia.
Shareholding at
March 4, 2024
173,203 Class B shares. 26,411 Class B shares. – – 31,836 Class B shares. 7,843 Class B shares.
P. 79Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Group Management Team
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
FABIO ZARPELLON CARLO MARIO CARONI PIA HOVLAND CAROLINA TENDORF JACOB BROBERG GUILHEM SENEGAS
Position
CFO since 2009. COO (Operations & R&D)
since 2014 (Operations) and
2019 (R&D) respectively.
Chief Human Resources
Officer since 2020.
General Counsel since 2022. Chief Communication and
Investor Relations Officer
since 2019.
Chief Information Officer and
Head of Digital Transforma-
tion, since 2020.
Year of birth
1967 1968 1965 1968 1964 1975
Nationality
Italian Italian Swedish Swedish Swedish French
Education
Degree, Business Administra-
tion, Ca´Foscari University of
Venice, Italy.
Master’s degree in Mechani-
cal Engineering in Economics
and Management, Politecnico
di Torino, Italy.
Bachelor’s degree in
Computer Science, Stockholm
University, Sweden.
Master’s Degree of Law,
University of Stockholm,
Sweden
B.A., Political Science and
Economics, Lund University,
Sweden.
Master’s degree in Engineer-
ing from CentraleSupelec,
Paris and MBA from Le
Collège des Ingénieurs, Paris.
Other assignments
President La Vela srl. – – – Board member Sveriges
Kommunikatörer AB, Board
member Stiftelsen Svenska
Dagbladet, Board member
Swedish Investor Relations
Association.
–
Previous positions
CFO of Professional
Products within the Electrolux
Group.
SVP Global Operations within
the Professional Products
business area of the Electrolux
Group.
Various senior HR positions
in Britannia Airways, Effnet
Group and Electrolux includ-
ing SVP HR, Communications
& Continuous Improvement
at Electrolux Business Area
Europe.
Head of Legal Electrolux
Professional Group, Se-
nior Group Legal Counsel,
Electrolux Group, Partner and
member of the Swedish Bar
Association (Advokat) Ashurst
law firm, General Counsel
Mandator, Lawyer/Advokat
Advokat-
firman Södermark.
Most recently, since 2019
SVP Investor Relations and
Corporate Communications
in Electrolux Professional.
Previously SVP Corporate
Communications and Investor
Relations, Cloetta AB.
Various Senior IT roles for
bioMérieux & Mérieux
Nutrisciences, IT consultant
for Capgemini.
Shareholding at
March 4, 2024
32,378 Class B shares. 27,352 Class B shares. 19,844 Class B shares. 7,088 Class B shares. 20,685 Class B shares. 10,716 Class B shares.
P. 80Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Electrolux Professional Group remuneration report 2023
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Electrolux Professional Group remuneration report 2023
Introduction
This report describes how the guidelines for executive remunera-
tion of Electrolux Professional AB, adopted by the Annual General
Meeting 2020, have been implemented in 2023. The report also
provides information on remuneration for the President and CEO.
The report has been prepared in accordance with the Swedish
Companies Act and the Rules on Remuneration of the Board and
Executive Management and on Incentive Programs, issued by the
Swedish Corporate Governance Board.
Further information on executive remuneration is available in
note 26 (Employees and personnel costs) on pages 134–136 of the
2023 Annual Report. Information on the work of the Remuneration
Committee in 2023 is set out in the corporate governance report
available on pages 73 of the 2023 Annual Report.
Remuneration of the Board of Directors is not covered by this
report. Such remuneration is resolved annually by the Annual
General Meeting and disclosed in note 26 on page 134 of
the 2023 Annual Report.
Key business developments in 2023
The President and CEO summarizes the company’s overall perfor-
mance in his statement on pages 4–5 of the 2023 Annual Report.
Group remuneration guidelines: scope, purpose and deviations
A prerequisite for the successful implementation of the Group’s busi-
ness strategy and safeguarding of its long-term interests, including
its sustainability, is that the Group can recruit and retain qualified
personnel. To this end, the Group must offer competitive remuner-
ation in relation to the country or region of employment of each
Group Management member. The Group’s remuneration guide-
lines enable the company to offer executives a competitive total
remuneration. Under the remuneration guidelines, executive
remuneration shall be on market terms and may consist of the
following components: fixed cash compensation, variable
compensation, pension benefits, and other benefits.
Variable compensation consists of both short-term cash compen-
sation and long-term, share-related or cash-based compensation.
The guidelines are found in the administration report on pages
92–93 of the 2023 Annual Report. During 2023, the Group has com-
plied with the applicable remuneration guidelines adopted by the
Annual General Meeting. No deviations from the guidelines have
been decided and no derogations from the procedure for imple-
mentation of the guidelines have been made.
The auditor’s report regarding the Group’s compliance with the
guidelines is available on www.electroluxprofessional.com/corpo-
rate. No remuneration has been reclaimed.
Table 1 – Total remuneration of the President and CEO in 2023 (kSEK)¹
Fixed compensation
Variable
compensation
kSEK
Fixed cash
compensation³
Other
benefits⁴
One-year
variable
Multi-year
variable⁵
Extraordinary
items
Pension
expense⁶
Total
remuneration
Proportion of fixed and
variable remuneration
Alberto Zanata
President and CEO)²
7,269 394 2,717 5,635 – 583 16,599 50%/50%
1) The table reports compensation earned in 2023 (irrespective of whether payments have been made the same year), except for multi-year variable compensa-
tion which reports what was vested in 2023 (settlement in Q1 the following year).
2) The remuneration of the President and CEO is defined in EUR. The presented remuneration in SEK is therefore impacted by the currency exchange rate.
3) The annual fixed salary includes annual base salary, vacation salary, paid vacation days, and fixed non-compete components.
4) Company car and medical insurance.
5) Vested 2021 long-term incentive award.
6) Pension expense, consisting of defined contributions according to collective bargaining agreement entitlements, has been counted entirely as fixed remuneration.
Table 2 – Share-based remuneration (for the President and CEO)
Information regarding the reported financial year
Opening Balance
(Jan 1, 2023) During the year
Closing balance
(Dec 31, 2023)
The main conditions of share award plans Shares awarded⁴ Shares vested⁶
Specification
of plan¹
Performance
period
Award
date²
End of vesting
period
Share awards held
at the beginning
of the year³
No. of
shares
Value
(kSEK)⁵
No. of
shares
Value
(kSEK)⁷
Awards
subject to
vesting⁸
Awards
forfeited⁹
LTI 2021
10
Jan 1 – Dec
31, 2021
May 5,
2021
Dec 31, 2023 102,457 0 0 102,457 5,635 0 0
LTI 2022
11
Jan 1 – Dec
31, 2022
May 5,
2022
Dec 31, 2024 49,181 0 0 0 0 49,181 55,995
LTI 2023
12
Jan 1 – Dec
31, 2023
May 5,
2023
Dec 31, 2025 0 119,223 6,742 0 0 74,598 44,625
1) All plans have a three-year vesting period, including a one-year performance period.
2) Refers to the date when the share awards were awarded to the participant.
3) Refers to the number of share awards under vesting period at the beginning of the year. See column ‘End of vesting period’ for vesting date.
4) Assuming a maximum performance outcome.
5) Value at award date calculated as the market price per share multiplied by the number of awarded shares.
6) Actual number of shares based on performance outcome, and their value at vesting date.
7) The share value based on closing price on vesting date.
8) Refers to number of shares awarded based on actual performance outcome, but for which the vesting date is after the end of the reported financial year.
9) Refers to number of shares forfeited based on actual performance outcome.
10) The maximum number of shares that could be awarded under LTI 2021 for the CEO was 102,457 shares. Outcome was 100% and resulted in the maximum
numbers of shares for the CEO.
11) The maximum number of shares that could be awarded under LTI 2022 for the CEO was 105,176 shares. The outcome was 47% and resulted in 49,181 shares for the CEO.
12) The maximum number of shares that could be awarded under LTI 2023 for the CEO was 119,223 shares. The outcome was 63% and resulted in 74,598 shares for the CEO.
P. 81Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Electrolux Professional Group remuneration report 2023
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Share-based remuneration
The aim of Electrolux Professional’s long-term incentive plans (LTI) is
to attract and retain competent senior employees, and to increase
the commitment and the motivation of the program participants.
The plans have been designed to align management incentives
with shareholder interests.
During 2023, the company had three ongoing performance
share programs (LTI 2021, LTI 2022, and LTI 2023) for senior man-
agers and key employees, including the President and CEO. All
programs run over a three-year vesting period including a one-year
performance period. The allocation of shares in the 2021 and 2022
programs is determined by the position level and the outcome of
two objectives: (i) earnings per share and (ii) operating cash flow
after investments. The allocation of shares in the 2023 program is
determined by the position level and the outcome of three objec-
tives: (i) earnings per share, (ii) operating cash flow after invest-
ments and (iii) CO₂ emission reduction.
Performance outcome of the objectives in the three plans is de-
termined by the Board after the expiry of the respective one-year
performance period for each program.
Allocation of shares is based on performance, and performance
objectives are linear from minimum to maximum. If the maximum
is reached or exceeded, 100% of the maximum granted shares to
each participant will be allocated. If the performance is below the
maximum level but exceeds the minimum level, a proportionate
allocation of shares will be made. No allocation will be made if
performance does not reach the minimum level. The shares will be
allocated after the vesting period free of charge except for tax
liabilities.
If a participant’s employment is terminated during the respective
three-year vesting period of each program, the participant will be
excluded from the program and will not receive any shares or other
benefits under the program. However, in certain instances, including
a participant’s death, disability, retirement, or the divestiture of the
participant’s employing company, a participant could be entitled to
reduced benefits under the program.
All programs comprise Class B shares. Additional information
about the outstanding LTI programs can be found in Note 26 in the
Annual Report 2023.
Application of performance criteria
The performance measures for the President and CEO’s variable
compensation have been defined to deliver the Group’s strategy
and to encourage behavior that is in the long-term interest of the
Group. The strategic objectives and short-term and long-term busi-
ness priorities for 2023 have been taken into account in the defini-
tion of performance measures.
Descriptions of how the performance measures for payment
of variable short-term and long-term compensation have been ap-
plied during the financial year are set out in Tables 3(a) and 3(b) on
this page.
Table 3(a) – Performance of the President and CEO in the reported financial year: variable short-term cash compensation
kSEK
Description of the performance criteria
related to the remuneration component
Relative weighting of
the performance criteria
a) Measured performance
b) Actual award/remuneration outcome
Alberto Zanata
(President and CEO)
Group EBITA Growth (%)
1
55% a) 12%
b) 1,804 kSEK
Group Net Sales Growth (%)
2
15% a) 2%
b) 256 kSEK
Group Operating Working Capital (%)
3
15% a) 18%
b) 0
Group Customer Care Net Sales Growth (%)
4
15% a) 8%
b) 657 kSEK
1) Year-on-year EBITA value growth %, adjusted to budget rate 2023 in SEKm. EBITA = EBIT (absolute) plus amortization. Effects of acquisitions and divestments
excluded.
2) Year-on-year External Net Sales growth (%), adjusted to budget rate 2023 in SEKm. Effects of acquisitions and divestments excluded.
3) Operating Working Capital (OWC) % = OWC (excluding factoring contribution) divided by External Net Sales. OWC: 12-month average OWC (Acc. Receivables
excluding factoring contribution + Inventory + Acc. Payable) adjusted to average rate 2023. External Net Sales: 12-month External Net sales adjusted to average
rate 2023. Effects of acquisitions and divestments excluded.
4) Year-over-year External Net Sales growth (%), adjusted to budget rate 2023 in SEKm. Effects of acquisitions and divestments excluded.
Table 3(b) – Performance of the President and CEO in the reported financial year: variable long-term share-based compensation
kSEK Name of plan
Description of the performance criteria
related to the remuneration component
Relative weighting of the
performance criteria
a) Measured performance
b) Actual award/remuneration
outcome
4
Alberto Zanata
(President and CEO) LTI 2023
Earnings per share¹ 50% a) 2.70 SEK
b) 26,694
Operating cash flow after investments
2
30% a) 1,453 mSEK
b) 24,059
CO₂ emission reduction
3
20% a) 680 tonnes
b) 23,845
1) Income for the period (attributable to equity holders of Electrolux Professional) divided by the weighted average number of basic shares outstanding during
the period.
2) Cash flow from operations and investments shall be adjusted for financial items paid, taxes paid, and acquisitions/divestments of operations.
3) CO
2
emission reduction refers to Year-on-Year greenhouse gas reductions measured in absolute values within the following areas: (i) Scope 1 and (ii) Scope 2,
in accordance with the Greenhouse Gas (GHG) Protocol.
4) The vesting period ends on December 31, 2025 and shares will be paid in the following year (subject to continued employment).
Table 4 – Comparative information on the change of remuneration and company performance¹
Actual Value and Annual Change² 2023 2022 2021 2020
President and CEO Remuneration in kSEK (change in %)³ 16,599 (+46%)
4
11,331 (-9%) 12,453 (+102%)
2
6,163
Group EBITA in SEKm (change in %) 1,330 (+16%)
5
1,146 (+72%) 665 (+25%) 533
Average remuneration on a full-time equivalent basis of employees of
the parent company, Electrolux Professional AB in kSEK (change in %)
6
552 (+2%) 539 (+10%) 489 (-4%) 509
1) The table presents the actual value for the reported financial year and, in parentheses, the annual change vs the previous year.
2) The increase in 2021 compared to 2020 is due to close to maximum outcome for 2021 incentive programs and zero outcome for 2020 programs.
3) The remuneration of the President and CEO is defined in EUR. The presented remuneration in SEK is therefore impacted by the currency exchange rate.
4) The increase in 2023 compared to 2022 is due to the vesting of the first LTI program (LTI 2021) in Electrolux Professional AB.
5) EBITA adjusted to budget foreign exchange rates for 2023, excluding costs for acquisitions.
6) Total remuneration, excluding Board members and members of the Group Management Team, of Electrolux Professional AB.
P. 82Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Risk and risk management
Risk and risk
management
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Risk and risk management
Electrolux Professional Group is an international company which means that
we are exposed to strategic, operational, and financial risks at a micro and
macro level. Risks are managed through a systematic risk management frame-
work to enhance resilience and empower the Group to achieve its goals.
P. 83Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Risk and risk management
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Risk Governance
Electrolux Professional’s Board of Directors has the ultimate
responsibility for risk oversight. The ERM governance structure is
based on the three lines of defense model, which determines the
roles, responsibilities, and relationships between risk management
functions.
The CEO, Group Management, Business and Group functions
form the first line of defense with ownership of risks, ensuring moni-
toring of risks, and the responsibility for addressing risk.
The role of the second line of defense, fulfilled by the ERM Board
is to provide risk management oversight, support, facilitation, and
consultation. The ERM Board oversees and facilitates Electrolux
Professional Group’s ERM activities, ensuring that they are conduct-
ed in a holistic and proactive manner, to strengthen the develop-
ment of integrated risk assessment processes, thus supporting the
achievement of the Group’s strategic goals. The ERM Board con-
sists of the President and Group CEO, the Group CFO, the General
Counsel, and the Group Risk Manager.
Internal audit is the third line of defense. It provides independent
assurance by evaluating the efficiency and effectiveness of the
Group’s risk governance model and risk management processes,
including the implementation of internal control and other risk
mitigation actions.
Electrolux Professional Group transfers certain risks to estab-
lished and internationally recognized commercial insurance mar-
kets. Further actions are also taken to reduce insurable risks as part
of the Group’s loss prevention strategy, to reduce the potential for
significant losses, and to ensure the Group’s ability to produce and
deliver to customers without interruptions.
Risk Governance
3
rd
line of defense
Independent assurance
2
nd
line of defense
Risk Management oversight, support, facilitation,
and consultation
1
st
line of defense
Ownership of risk taking and
addressing risk
Compliance/LegalRisk Management
CEO and
Group Management
Audit Committee
Board of Directors
ERM Board
Business and
Group functions
Internal Audit
Enterprise Risk Management
The purpose of the Enterprise Risk Management (ERM) process is
to proactively manage risks that have the greatest potential to
impact Electrolux Professional Group’s ability to fulfill the compa-
ny's mission, strategy, and business goals. The foundation for the
ERM process is bi-annual workshops with Group Management and
Business Area Management Teams as well as continuous support
for risk mitigation actions.
ERM objectives and process
> Promote integration of risk management processes with business
strategy, project management processes, and decision making.
> Ensure continuity and transparency in methodology, assessment,
and management processes.
> Establish appropriate, consistent, and transparent risk coordina-
tion and accountability for risk mitigation.
Identified risks are assessed by management teams through a
combination of potential impact on the company and current level
of risk management. This assessment determines the degree of
materiality for each risk, which in turn sets the prioritization for
risk mitigation and guides identification of appropriate actions to
improve the specific risk management. The process setup ensures
strong risk ownership and highlights the ability to act to improve risk
management as the core component in the ERM process.
Risk materiality scale
Low Moderate Substantial Critical
P. 84Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Risk and risk management
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Materiality Risk Management
Economic climate
Demand for Electrolux Professional Group´s products depends on the
general economic climate within the professional equipment industry, which
in turn is affected by macroeconomic factors in the countries and regions
where the Group conducts operations, including the rate of growth in the
global and local economy.
Strategic risks are managed through the normal course of business, i.e. strategic
plans and business decisions taken by the Board of Directors, the Group
Management Team, and management teams throughout the Group.
Political instability
Market accessibility is impacted by geopolitical decisions, aggressions, sanc-
tions, export controls, etc. as well as the general prevailing political discourse,
e.g. globalization or protectionism, which ultimately affects the legal possibili-
ties to do business in certain areas of the world as well as general supply and
demand.
Close monitoring of the geopolitical developments in countries with political risk
exposure. Readiness to act to ensure continuity of business.
Climate change
Climate change is expected to drive global geographic shifts affecting tourism/
business travel, and is a chronic physical risk. In a 4-degree climate change
scenario, a large part of our customer base could become exposed to significant
risks due to climate change in 2050.
Geographic shifts in global tourism/business travel could have a financial impact
in terms of reduced demand for products and a shift to new geographies to-
wards the higher latitudes, unless we keep up with this shift in demand. A shift in
peak season tourism to shoulder seasons could open up future business oppor-
tunities and increase sales in these currently off-peak seasons. Read more about
actions taken in the Sustainability report on pages 48–66.
Strategic risks
Strategic risks relate to macro-economic factors and geopolitical conditions resulting in changes in the
business environment that potentially have a significant effect on operations and business objectives.
Read about climate scenario analysis in Note 31 on page 139.
Risks
The Group’s most significant strategic, operational, financial, and sustainability risks
are described on the following pages.
Low Moderate Substantial Critical
P. 85Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Risk and risk management
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Materiality Risk Management
Manufacturing
The Group has 13 manufacturing plants in eight countries and manufacturing
is a chain of processes. Unfavorable geopolitical developments, fire, natural
disasters, extreme weather conditions, epidemics, pandemics, systems failure,
mechanical failure, or equipment failure could affect the Group’s manufacturing
capacity.
Any extensive outages or disruptions due to such events could have an adverse
effect on the Group’s business and financial position.
Disruption to the Group’s manufacturing capacity in operations and supply chain
due to extreme weather events has been identified as a changed physical risk.
Electrolux Professional’s manufacturing and supplier sites may become increas-
ingly affected by extreme weather events in the coming years.
Manufacturing units continuously monitor the production process, test the safety
and quality of products, conduct risk assessments, and train employees. The
Group works in a structured manner to ensure the health and wellbeing of its
employees and by regularly assessing and managing safety and health risks in
operations.
Manufacturing sites are surveyed annually through a group-wide loss prevention
standard which includes risk management, emergency procedures, business con-
tinuity, and security. The program ensures continuous improvement and sharing
lessons learned between sites.
The Group has transferred part of its property damage and business interruption
risks to the direct insurance market.
The long-term view of the location of sites is managed through strategic plans
and business decisions taken by the Board of Directors, the Group Management
Team, and management teams throughout the Group. Read more about produc-
tion and logistics on pages 40–43.
Supply chain
Manufacturing depends on the availability and timely supply of components
and raw materials, sourced and purchased primarily from external suppliers.
A shortage of electronics and raw materials poses risks related to product
costs and timely delivery to customers.
Some key parts and customized components are available only from a single
supplier or a limited group of suppliers and there is a risk that the Group will
be unable to obtain these products for a certain period, which could have an
adverse effect on the Group’s ability to manufacture single types or catego-
ries of products within a reasonable time or at an acceptable cost. Potentially
increased costs for materials, energy, and transportation as a knock-on effect
of carbon pricing has been identified as a climate change transition risk.
Proactive efforts are being made to establish a robust and flexible supply chain
with multiple sourcing that complies with laws and the Group’s business princi-
ples, which is having a positive effect. We perform regular supplier audits and
continuous monitoring of supplier performance and financial stability, and long-
term agreements are in place with single-source suppliers. In addition, we are
establishing more dual-sourcing for key components and raw materials.
Products
Most of Electrolux Professional Group’s products and product lines are subject
to regulations that set out basic health and safety requirements applicable to
products released onto the market. Should any of the Group’s products have
defects that lead to serious accidents or ill-health when used, there is a risk that
competent authorities could decide to prohibit sales, require recall of the product
from the market, or provide warning information. Such market interventions and
any product liability claim from contracting parties or third parties could have
an adverse effect on the Group’s business, reputation, results of operations, and
financial position.
The Group aims to ensure customer safety and reduce risks by focusing on
product safety during the product development phase and the manufacturing of
its products. Tests are performed on products during the manufacturing process
as well as through field tests at customer sites. The Group also uses third-party
laboratories to review products from a safety standpoint. In recent years we
have started to perform ergonomic certifications on certain products (ERGO-
CERT). The Group has transferred part of its product liability risk to the direct
insurance market.
Operational risks
Operational risks stem from business operations and have a potential impact on the Group's financial position
and performance. Risks are mainly associated with the development, design, and manufacturing of the Group’s
products, the supply chain, and sales of products and services worldwide. Read about climate scenario analy-
sis in Note 31 on page 139.
Low Moderate Substantial Critical
P. 86Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Risk and risk management
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2023
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Materiality Risk Management
Legal and
compliance
Electrolux Professional Group conducts its business in many jurisdictions with
different legislation, rules, and regulations. Non-compliance with trade compli-
ance rules, product certification requirements, privacy rules, and so on could
result in fines and penalties, trade restrictions, and reputational impact.
In addition to the Code of Conduct, the Group has issued policies and proce-
dures on legal compliance that are applicable to all employees worldwide.
The procedures are regularly reviewed and followed up, and whistleblowing
procedures have been implemented. Regular training is held for relevant
employees (face-to-face, via video or e-learning).
IT systems and
cyber security
The Group is dependent on information technology and systems. Cyber security
risks are increasing globally, and the risk of a cyber intrusion is continuously on
the rise. A cyber security breach could disrupt manufacturing processes and IT
systems, which could impact the Group’s financial position and result.
The Group has an IT security strategy including information security policies and
procedures, and IT General Controls (ITGC). There are different levels of access
controls for internal employees and contractors, and regular vulnerability testing
is carried out. Internet security training for employees is conducted regularly. The
system landscape is based on well-proven products and market-leading service
providers. There is a designated Chief Information Security Officer function at
Group level.
Human resources
A prerequisite for the successful implementation of the Group’s business strategy
and safeguarding of its long-term interests, including its sustainability, is that the
Group can recruit and retain qualified personnel. Difficulties in recruiting and
retaining qualified personnel could result in a diminished competitive edge and
increased costs.
To offer attractive positions and personal and professional development, a good
working environment and competitive compensation and benefits are prioritized
within the Group. Salaries and other conditions are adapted to the market and
linked to business priorities. The Group strives to maintain good relationships with
unions.
Financial risks
The Group is exposed to several risks from liquid funds, trade re-
ceivables, borrowings, commodity prices, tax, foreign exchange etc.
These risks are categorized as financial risks, some of which are
presented below. More information about financial risks and man-
agement of the risks can be found in Note 1 Accounting Principles
on page 102, Note 2 Financial risks on page 104 and Note 17 Trade
receivables on page 120.
Foreign exchange risk
Electrolux Professional’s solutions and products are manufactured
in thirteen facilities located in eight countries around the world
and sold in approximately 110 countries. Accordingly, the Group is
exposed to currency risks. Foreign exchange risk is defined as the
risk that fluctuations in currency exchange rates have a negative
impact on the Group’s financial position, profitability, or cash flow
and includes transaction exposure and translation exposure.
Credit risk
Credit risk on financial transactions is the risk that the counterpart
is not able to fulfill its contractual obligations related to the Group’s
investments of liquid funds and derivatives. Credit risks also arise in
connection with trade receivables. Electrolux Professional’s client
base is characterized by a mix of repeat customers such as dis-
tributors and one-time customers, as well as multi-operator stores
or spare-part customers. If Electrolux Professional is unable to fully
collect its trade receivables from major customers, the Group’s result
would be adversely affected.
Interest-rate risk
Interest-rate risk refers to the adverse effects of changes in interest
rates on the Group’s income. The main factor determining this risk is
the interest-fixing period. In 2023, the Group’s average interest-
fixing period was 1.1 years.
Tax risk
The Group is comprised of subsidiaries that are subject to taxa-
tion in approximately 30 jurisdictions. There is a risk that Electrolux
Professional’s understanding and interpretation of tax laws, tax
treaties, and other provisions are not correct in all aspects. There is
also a risk that tax authorities in the relevant jurisdictions make as-
sessments and decisions that differ from Electrolux Professional’s un-
derstanding and interpretation, which could negatively impact the
Group’s tax expense and effective tax rate. In addition, valuation of
deferred taxes is based on projections of future taxable income and
there is a risk that changes in assumptions or erroneous estimates
result in significant differences in the valuation of deferred taxes.
Sustainability risks
Electrolux Professional Group’s global operations expose the
Group to risks related to sustainability factors such as environmen-
tal impact, human rights, employment conditions, and corruption.
These risks could arise in several phases of the value chain, such
as in purchasing and sales, and also in connection with third-party
service partners providing preventive and corrective maintenance
services to end customers.
Countries are increasingly adopting new rules and regulations
aimed at imposing mandatory rules on sustainability-related areas,
particularly in human rights and modern slavery. Failure to comply
with standards and regulations on the work environment, anti-
corruption, human rights, and business ethics could have an
adverse effect on the Group’s reputation, results of operations,
and financial position.
Operational risks, continued
Low Moderate Substantial Critical
P. 87Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Financial information
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
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SUSTAINABILITY
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FINANCIAL INFORMATION
OTHER INFORMATION
Financial information
P. 88Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Financial information, contents
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Financial information, contents
Note 1
Accounting principles
102
Note 2
Financial risk management
104
Note 3
Segment information
107
Note 4
Revenue recognition
108
Note 5
Operating expenses
110
Note 6
Other operating income
and expenses
110
Note 7
Material profit and loss items
110
Note 8
Leases
111
Note 9
Financial income and financial expenses
112
Note 10
Taxes
112
Note 11
Other comprehensive income
113
Note 12
Property, plant and equipment
114
Note 13
Goodwill and
other intangible assets
116
Note 14
Other non-current assets
119
Note 15
Inventories
119
Note 16
Other current assets
119
Note 17
Trade receivables
120
Note 18
Financial instruments
120
Note 19
Assets pledged for liabilities to
credit institutions
128
Note 20
Share capital, number of shares,
and earnings per share
128
Note 21
Post-employment benefits
129
Note 22
Other provisions
131
Note 23
Other liabilities
132
Note 24
Contingent liabilities
132
Note 25
Acquired and divested operations
132
Note 26
Employees and remuneration
133
Note 27
Fees to auditors
136
Note 28
Transactions with related parties
136
Note 29
Untaxed reserves, Parent Company
136
Note 30
Shares and participations
137
Note 31
Climate
139
Note 32
Events after the balance sheet date
140
Note 33
Proposed distribution of earnings
140
Administration report
89
Consolidated statement of total comprehensive income
94
Consolidated balance sheet
95
Change in consolidated equity
96
Consolidated cash flow statement
97
Parent Company income statement
98
Parent Company balance sheet
99
Parent Company change in equity
100
Parent Company cash flow statement
101
Notes
102
The Board's assurance
141
Auditor’s report
142
Seven years in summary
145
Definitions and reconciliation of
alternative performance measures
147
Financial information Notes to the financial statements
P. 89Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Administration report
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Administration report
The Board of Directors and President and CEO of Electrolux
Professional AB (publ), corporate identity number 556003-0354 and
registered office in Stockholm, Sweden , hereby submit the annual
report and consolidated accounts for the financial year January 1,
2023 to December 31, 2023.
Information on operations
Markets
Electrolux Professional’s solutions and products are sold in more
than 110 countries. Our commercial activities focus on three main
geographical regions – Americas, Europe, and Asia Pacific &
Middle East and Africa (APAC & MEA). Our products are sold
through a global network of dealers and distributors.
Production
On December 31, 2023, Electrolux Professional’s production units
operated through twelve manufacturing sites, organized mainly by
product category to ensure proximity and agility to serve customer
needs. All manufacturing sites commit to a systematic approach for
the responsible use of resources, occupational health and safety,
and environmental management. Our factories are specialized by
product categories, with food and laundry plants producing the
majority of the appliances to order, while for the beverage plants
there is a mix between make-to-order and make-to-stock.
Significant events during
the financial year
All US Food & Beverage brands on show at NAFEM
For the very first time since the acquisition of Unified Brands in 2021,
all of Electrolux Professional Group’s Food and Beverage brands
in the US were displayed together at the NAFEM Show, the largest
food-service exhibition in the US. All these brands combined creates
a stronger than ever platform in the US – which supports the Group
strategy for growth in the US and through restaurant chains.
The Group’s sustainability targets validated by Science-based
targets initiative (SBTi)
Electrolux Professional Group’s near-term targets to reduce green-
house gas emissions (Scope 1 and 2) and reduce indirect use-phase
emissions (Scope 3) by 2030 were validated by the Science Based
Targets initiative (SBTi). The new Science Based Target is to reduce
Scope 1 and 2 emissions by 70% by 2030 from a 2019 base year.
In addition, a further Science Based target to reduce indirect use-
phase emissions of sold products by 27.5% by 2030 from a 2019
base year was also approved.
CO
2
emission target reached
The target to reduce CO
2
(Scope 1 and 2) emissions from our in-
dustrial sites with >50% by 2025 (base year 2015, excluding Unified
Brands) was achieved already during 2023 – two years ahead of
plan.
Acqusition of TOSEI Corporation
In December 2023 Electrolux Professional Group entered into an
agreement to acquire TOSEI Corporation (“TOSEI”), a leading
Japanese manufacturer of professional laundry equipment and
vacuum packing machines. The acqusition was completed on
January 10, 2024. Through this acquistion Electrolux Professional
became a larger player in Japan, which is the second largest
laundry market and third largest food-service market globally. The
Group will also be able to expand the vacuum packing products
that are already used globally in the fast-growing segment of
sous-vide cooking.
Commercial paper program launched
The Commercial paper program has a framework amount of
SEK 2,000m, and is mainly used for short-term financing of working
capital needs and to replace other short-term financing.
Conversion of shares
According to Electrolux Professional's Articles of Association,
owners of A shares have the right to convert such shares to
B shares. Conversion reduces the total number of votes in the
company. 13,853 shares were converted during 2023. On December
31, 2023, the company’s registered share capital amounted to
SEK 28,739,745, represented by 287,397,450 shares of which
8,031,461 were Class A shares and 279,365,989 were Class B shares.
The total number of votes amounted to 35,968,059.9.
P. 90Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Administration report
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
SEKm
Operating cash flow after investments
0
300
600
900
1,200
1,500
20232022202120202019
SEKm
EBITA and EBITA margin
0
300
600
900
1,200
1,500
20232022202120202019
%
EBITA EBITA margin
0
5
10
15
20
25
SEKm
Total net sales
0
2,000
4,000
6,000
8,000
10,000
12,000
20232022202120202019
Includes items affecting comparability of SEK -32m in
2019, SEK –77m in 2020, and SEK –35m in 2022.
Financial targets
Electrolux Professional’s financial targets are as follows:
Organic sales growth
Organic annual growth of more than 4% over time, complemented
by value-accretive acquisitions.
EBITA margin
EBITA margin of 15%.
Operating working capital
Operating working capital below 15% of net sales.
Net debt/EBITDA
Leverage ratio below 2.5x Net debt/EBITDA. Higher levels may be
temporarily acceptable in the event of acquisitions, provided there
is a clear path to deleveraging.
Dividend policy
Approximately 30% of net income.
Operational and financial review
Net sales
Net sales for 2023 amounted to SEK 11,848m (11,037), an increase of
7.3% compared to the same period last year. Organically, sales in-
creased by 2.6%, changes in exchange rates contributed 4.9% while
the divestment of the Russian operations had an effect of –0.2%.
Sales of Food & Beverage decreased organically by 1.0%. Sales
of Laundry increased organically by 9.7%. Sales in Europe increased
organically by approximately 7% and in Asia-Pacific, Middle East
and Africa by 4%. Sales declined by 6% in the Americas.
Changes in net sales
% 2023 2022
Organic growth 2.6 16.9
Acquisitions – 17.2
Divestments –0.2 –0.8
Changes in exchange rates 4.9 7.1
Total 7.3 40.4
Operating income and EBITA
Operating income excluding amortization of intangible assets
(EBITA) amounted to SEK 1,317m (1,111), corresponding to a margin
of 11.1% (10.1). Operating income amounted to SEK 1,154m (955),
corresponding to a margin of 9.7% (8.7). The improved operating
income is mainly due to price, but also lower material and transpor-
tation costs.
Performance per segment
The Group’s operations are reported to the President and CEO
under two segments, Food&Beverage and Laundry, which have
been identified based on the monitoring and reporting structures.
Food & Beverage
Sales for Food & Beverage were SEK 7,616m (7,290), an increase of
4.5% compared to last year. Organically sales decreased by –1.0%
(17.4) and changes in exchange rates had an effect of 5.6% (10.3).
The divestment of the operations in Russia had an effect of –0.1%.
Operating income excluding amortization of intangible assets
(EBITA) amounted to SEK 766m (679), corresponding to a margin of
10.1% (9.3). Operating income amounted to SEK 620m (542), corre-
sponding to a margin of 8.1% (7.4).
Laundry
Sales for Laundry were SEK 4,231m (3,747), an increase of 12.9%
compared to last year. Organically, sales increased by 9.7% (16.2)
and changes in exchange rates had an effect of 3.5% (3.2).
Key ratios Food & Beverage performance
SEKm 2023 2022 Change
Net sales 7,616 7,290 4.5
Organic growth, %* –1.0 17.4 –
Acquisitions, %* – 28.3 –
Divestments* –0.1 –0.9 –
Changes in exchange rates, % 5.6 10.3 –
EBITA* 766 679 12.7
EBITA margin, %* 10.1 9.3 –
Operating income* 620 542 14.4
Operating margin, %* 8.1 7.4 –
Key ratios Laundry performance
SEKm 2023 2022 Change
Net sales 4,231 3,747 12.9
Organic growth, %* 9.7 16.2 –
Divestments* –0.3 –0.7 –
Changes in exchange rates, % 3.5 3.2 –
EBITA* 702 608 15.6
EBITA margin, %* 16.6 16.2 –
Operating income* 686 590 16.2
Operating margin, %* 16.2 15.7 –
*) Alternative performance measures are explained on pages 147-148.
P. 91Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Administration report
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FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Operating income excluding amortization of intangible assets
(EBITA) amounted to SEK 702m (608), corresponding to a margin
of 16.6% (16.2). Operating income amounted to SEK 686m (590),
corresponding to a margin of 16.2% (15.7).
Seasonal variation
No seasonal variations exist.
Financial net
Net financial items amounted to SEK –121m (–61). The increase in
financial net is due to higher interest rates and indebtedness as a
result of the acquisition of Unified Brands.
Income for the period
Income for the period amounted to SEK 775m (686), corresponding
to SEK 2.70 (2.39) in earnings per share. Income tax for the period
amounted to SEK –259m (–209). The effective tax rate was 25.0%
(23.3).
Group common cost
Group common cost was SEK –152m (–177).
Cash flow
Operating cash flow after investments amounted to SEK 1,453m
(636). Cash conversion continues to be good with a positive
contribution from reduced inventory.
Operating working capital
Operating working capital as a percent of annualized net sales was
18.1% compared to 16.7% at the end of 2022. Inventory is starting to
come down, but is still at a high level. Inventory has decreased by
SEK 289m compared to the end of 2022.
Financial position
Net debt
As of December 31, 2023, Electrolux Professional Group had a
financial net debt position (excluding lease liabilities and post-
employment provisions) of SEK 973m compared to SEK 1,643m as of
December 31, 2022. Lease liabilities amounted to SEK 319m and net
provisions for post-employment benefits amounted to SEK 98m.
In total, net debt amounted to SEK 1,390m as of December 31,
2023, compared to SEK 2,050m as of December 31, 2022. Long-
term borrowings amounted to SEK 1,192m. Short term borrowings
amounted to SEK 771m. Total borrowings amounted to SEK 1,963m
compared to SEK 2,894m as of December 31, 2022.
Liquid funds as of December 31, 2023, amounted to SEK 989m
compared to SEK 1,251m as of December 31, 2022.
During 2023 Electrolux Professional Group executed voluntary
pre-payment of EUR 140m to its syndicated term loan facility. This
means that the loan facility has now been fully repaid and
cancelled.
Credit facilities and loans
Electrolux Professional Group has a term loan of SEK 600m with a
tenure of seven years from 2020, a sustainability-linked loan of EUR
60m with a tenure of seven years from 2021, a commercial paper
program with a framework amount of SEK 2,000m, and a revolving
credit facility of EUR 200m with a tenure until 2027. None of the
loan facilities contain any financial covenants. As of December
31, 2023, the revolving credit facility was unutilized and Electrolux
Professional Group had SEK 650m issued under its commercial
paper program.
Related-party transactions
See Note 28 on page 136.
Employees
The number of employees at year-end was 3,983 (4,022).
Corporate governance report
Electrolux Professional has prepared the Corporate Governance
report presented on pages 69-79.
Sustainability Report
Electrolux Professional Group has prepared a Sustainability Report
in accordance with the updated Global Reporting Initiative (GRI)
Standards from 2021. The sustainability report has been prepared
in accordance with disclosure requirements set out in the Swedish
Annual Accounts Act, chapter 6 paragraph 11. The Sustainability re-
port is presented on pages 48–66 and 149–162 of this report.
Environmental impact and approach
A systematic environmental approach is the basis for reducing
Electrolux Professional Group’s environmental impact. The greatest
direct environmental impact relates to water and energy con-
sumption, wastewater, waste, and transportation. From a product
lifecycle perspective, the main environmental impact occurs in the
product-use phase at the customer’s location. The company com-
plies with environmental legislation and is not involved in any envi-
ronmental disputes. As of December 31, 2023, Electrolux Professional
had manufacturing operations at twelve sites in seven countries.
The Swedish factory in Ljungby conducts notifiable activities
according to Swedish legislation. There are no injunctions under the
Swedish Environmental Legislation. The factories operate according
to national legislation, apply for necessary permits, and report to
local authorities in accordance with applicable legislation.
All factories conduct systematic environmental work that in-
cludes action plans and monitoring of a number of environmental
aspects. Our environmental work is an integral part of our opera-
tions and environmental matters are taken into account during deci-
sion making. Evaluation and follow-up of measures taken increases
awareness of the impacts the business has on the environment.
The Group’s environmental policy and environmental work are
described in more detail on pages 54–55, 59–62, and 150.
Other disclosures
Risk and uncertainty factors
The Group is exposed to several risks from liquid funds, trade
receivables, borrowings, commodities, tax, foreign exchange,
credit, and other financial risks. Electrolux Professional’s Board of
Directors has the ultimate responsibility for risk oversight. The ERM
Governance Structure is based on the three-lines-of-defense model.
Risk and risk management is described on pages 82-86 and in note
2 on pages 104-106.
Research and development
A key factor for Electrolux Professional’s success is its ability to
develop new products that serve customer needs and increase
their productivity. This is mainly driven by management decisions to
make investments in product development and the right technolo-
gies, leading to a stronger and more competitive range of products,
which makes it possible for Electrolux Professional to retain its com-
petitiveness and pricing.
Product development starts and ends with the customer in mind.
The Group’s sales organization has continuous interaction with cus-
tomers in order to understand their needs. Continued investments in
research and development are paramount to the company’s future
profitability.
Electrolux trademark license agreement
Since the separation from the AB Electrolux group, the “Electrolux”
component of the Electrolux brand and trademark (to be used
exclusively in combination with “Professional”, i.e. “Electrolux
Professional”) and the “Zanussi” brand and trademark are licensed
from AB Electrolux to Electrolux Professional pursuant to a license
granted to Electrolux Professional under a trademark license agree-
ment. The license agreement has an initial term of 50 years, which
is automatically renewed with two consecutive ten-year periods,
unless terminated with two years’ notice by either party. For the
first 15 years of the term, the licenses will be royalty-free. Thereafter,
Electrolux Professional will pay a royalty for the licenses amounting
to 0.1% of the net sales of licensed products and services, subject to
more detailed calculation principles set forth in the agreement.
The trademark license agreement is subject to a change-of-
control clause, which gives AB Electrolux a right to terminate the
agreement or any licenses therein, with immediate effect, in the
event that Electrolux Professional is subject to a change of control.
Such change of control is deemed to occur if, for example, any sale
or transfer of the ownership of a controlling interest or majority stake
in Electrolux Professional (or a parent company) takes place to an-
other entity which has a substantial consumer appliances business
(meaning a consumer appliance business with an annual sales
revenue of more than SEK 10bn) in the first twelve-month period of
the term of the agreement, and thereafter increasing annually in line
with the Swedish Consumer Price Index (Sw. konsumentprisindex),
decided at the sole reasonable discretion of AB Electrolux.
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FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
The company’s expected future progress
For the next few years the company will remain focused on its
strategic pillars to grow sales and profit.
In the short term, the company may be affected by the general
economic uncertainty, inflation, and negative consumer sentiment,
which gives us reason for caution and to be prepared for various
scenarios.
Remuneration
Remuneration Guidelines for Group Management
The 2024 Remuneration Guidelines for Group Management will
be proposed to the 2024 Annual General meeting. The proposal
contains only minor editorial changes.
The guidelines set forth below were resolved by the 2020 Annual
General Meeting and apply to the remuneration and other terms
of employment of the President and CEO and other members of
the Group Management of Electrolux Professional Group (“Group
Management”). The Group Management currently (December, 31,
2023) comprises twelve executives, including the CEO.
The principles are applied to employment agreements entered
into after the Annual General Meeting in 2021 and to changes made
to existing employment agreements thereafter.
The guidelines will be in force until new guidelines are adopted
by the General Meeting. These guidelines do not apply to any
remuneration decided or approved by the General Meeting.
Remuneration for the President and CEO is resolved upon by
Electrolux Professional AB’s Board of Directors, based on the rec-
ommendation of the Remuneration Committee.
Remuneration for other members of Group Management is
resolved upon by the Remuneration Committee and reported to
the Board of Directors. The Remuneration Committee also monitors
and evaluates programs for variable remuneration for the Group
Management, the application of the guidelines for executive
remuneration, as well as the current remuneration structures and
compensation levels in the company.
Based on the recommendation from the Remuneration
Committee, the Board of Directors prepares a proposal for new
guidelines at least every four years and submits it to the Annual
General Meeting.
The President and CEO and other members of the Group
Management do not participate in the Board of Directors’ process-
ing of, and resolutions regarding, remuneration-related matters
insofar as they are affected by such matters.
Electrolux Professional has a clear strategy to deliver profitable
growth and create shareholder value. A prerequisite for the success-
ful implementation of the company’s business strategy and safe-
guarding of its long-term interests, including its sustainability, is
that the company is able to recruit and retain qualified personnel.
To that end, it is necessary that the company offers competitive
remuneration in relation to the country or region of employment of
each Group Management member. These guidelines enable the
company to offer the Group management a competitive total
remuneration.
More information on the company’s strategy can be found on
the company’s website and in the Annual Report.
The remuneration terms must emphasize ‘pay for performance’,
and vary with the performance of the individual and the Group. The
total remuneration for the Group Management must be in line with
market practice and may comprise the following components: fixed
compensation, variable compensation, pension benefits, and other
benefits.
Employment contracts governed by rules other than those in
Sweden may be duly adjusted for compliance with mandatory rules
or established local practice, taking into account, to the extent
possible, the overall purpose of these guidelines.
Fixed compensation
The Annual Base Salary (“ABS”) must be competitive relative to the
relevant market and reflect the scope of the job responsibilities.
Salary levels are to 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 (“LTI programs”) can be cash
based or share-related.
Share-related LTI 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 adopted or, in the case of a share-related LTI
program, proposed to the General Meeting.
LTI programs are to be distinctly linked to the business strategy
and must always be designed with the aim of further enhancing
the common interest of participating employees and Electrolux
Professional shareholders of good long-term development for
Electrolux Professional Group.
Consistent with the ‘pay for performance’ principle, variable
compensation must represent a significant portion of the total
compensation potential for Group Management.
Variable compensation must always be measured against
pre-defined targets and have a maximum above which no payout
can be made.
The extent to which the criteria for awarding variable cash
remuneration has been satisfied is determined by the Remuneration
Committee when the measurement period has ended. For financial
objectives, the evaluation will be based on the annual financial
result in accordance with the most recent interim report for the
fourth quarter made public by the company.
Short-Term Incentive (STI)
Members of the Group Management participate in an STI plan
under which they may receive variable compensation. The objec-
tives set in the STI plan must be financial and the measurement
period must be one year. The objectives may include EBITA Growth
and Net Sales Growth.
The maximum STI entitlements are dependent on position and
may amount to no more than 100% of the ABS.
Cash-based LTI programs
Variable remuneration may also be paid as part of cash-based LTI
programs. The objectives for cash-based LTI programs must be fi-
nancial and aim to measure the company’s growth and profitability.
The objectives may include Earnings per Share and Operating
Cash Flow. The measurement period for the satisfaction of the
objectives must be one year, however, any payout under the pro-
gram must not be awarded until two years after the expiry of the
measurement period, provided that the conditions for payout are
fulfilled.
Any payout is to be used by the participant to purchase shares
in Electrolux Professional, and the participant is required to hold
such shares for a holding period of two years after the payout. The
purpose of a cash based LTI program is thus for the participants to
build up a shareholding in the company in order to create a com-
mon ownership interest between the participants and the share-
holders.
Cash-based LTI programs must always be designed with the
aim of further enhancing the common interest of participating
employees and Electrolux Professional shareholders of good long-
term growth for Electrolux Professional.
The maximum LTI entitlements are dependent on position and
may amount to no more than 100% of the ABS.
Extraordinary arrangements
Additional variable compensation may be approved in extra-
ordinary circumstances under the condition that such extraordinary
arrangements are made for recruitment or retention purposes, are
agreed on an individual basis, do not exceed three (3) times the
ABS, and are earned and/or paid out in instalments 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 in these situations must
not exceed 30% of the ABS and be paid in one instalment.
Right to reclaim variable remuneration
Terms and conditions for variable remuneration should be devised
to enable the Board, under exceptional financial circumstances,
to limit or cancel payments of variable remuneration provided that
such action is deemed reasonable (malus). The Board also has
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 incorrect
grounds (claw-back).
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Pension and Benefits
Old age and survivor’s pension, disability benefits, and health-
care benefits are designed to reflect home-country practices and
requirements.
When possible, pension plans are to be based on defined
contribution. In individual cases, depending on provisions in collec-
tive agreements, tax and/or social security legislation to which the
individual is subject, other schemes and mechanisms for pension
benefits may be approved.
For the Group Management, the defined pension contributions
must not exceed 40% of the ABS unless the entitlement is higher
under applicable collective agreements.
Other benefits, such as company cars and housing, may be
provided on an individual level or to the entire Group Management.
Costs relating to such benefits must not amount to more than 20%
of the ABS.
Members of the Group Management who are expatriates or
relocated permanently to another country, may receive additional
remuneration and other benefits to the extent reasonable in light of
the special circumstances associated with the relocation arrange-
ment.
Such benefits must be determined in line with the Group’s
Directive on International Assignments or applicable local reloca-
tion policy, 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 for the President and CEO is twelve months if
Electrolux Professional takes the initiative to terminate the employ-
ment and six months if the President and CEO takes the initiative to
terminate the employment.
For other members of the Group Management the notice period
is between six to twelve months if Electrolux Professional takes the
initiative to terminate the employment and three to 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 Professional’s termination of the employment arrange-
ment 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 for instance in the event of a substantial change in ownership
of Electrolux Professional in combination with a change in reporting
line and/or job scope.
Contractual severance pay for the individual may include the
continuation of the ABS for a period of up to twelve months follow-
ing termination of the employment agreement; no other benefits
shall be included. These payments must be reduced by the equiv-
alent value of any income that the individual earns during a 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 may be awarded for
any non-compete undertaking. Such compensation must 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.
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.
These are included in the Remuneration Committee’s and the Board
of Directors’ basis for decision when evaluating whether the guide-
lines and the limitations set out herein are reasonable.
Deviations from the guidelines
The Board of Directors may temporarily resolve to deviate from the
guidelines, in whole or in part, if in a specific 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 financial viability.
The Remuneration Committee’s tasks include preparing the
Board of Directors’ resolutions in remuneration-related matters. This
includes any resolutions to deviate from the guidelines.
Note 26 of the Annual Report includes a detailed description
of existing remuneration arrangements for the Group Management
Team.
Variable long-term share programs
The LTI 2021, LTI 2022 and LTI 2023 programs are described in
note 26.
Parent Company
The Parent Company’s activities include head office as well as
production and sales in and from Sweden.
Net sales for the Parent Company, Electrolux Professional AB,
for the period amounted to SEK 3,218m (2,963) of which SEK 1,228m
(1,158) referred to sales to Group Companies and SEK 1,990m (1,805)
to external customers. Income after financial items was SEK 509m
(431). Income for the period amounted to SEK 454m (392).
Capital expenditure in tangible and intangible assets was SEK
47m (21).
Cash and cash equivalents at the end of the period, including
short term investments, amounted to SEK 778m, compared to SEK
877m in the beginning of the year.
Undistributed earnings in the Parent Company at the end of the
period amounted to SEK 6,740m, compared to SEK 6,495m at the
beginning of the year.
The income statement and balance sheet for the Parent
Company are presented on pages 98–99.
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OTHER INFORMATION
Consolidated statement
of total comprehensive income
SEKm | Note | 2023 | 2022 |
Net sales | 3, 4 | ||
Cost of goods sold | 5, 7 | – | – |
Gross operating income | |||
Selling expenses | 5, 7 | – | – |
Administrative expenses | 5, 7 | – | – |
Other operating income/expenses | 5, 6 | – | – |
Operating income | |||
Financial items, net | 9 | – | – |
Income after financial items | |||
Taxes | 10 | – | – |
Income for the period |
SEKm | Note | 2023 | 2022 |
| Items that will not be reclassified to income | |||
| for the period: | |||
Remeasurement of provisions for post-employment benefits | 21 | – | |
Income tax relating to items that will not be reclassified | – | ||
Total | – | ||
| Items that may be subsequently reclassified | |||
| to income for the period: | |||
Cash flow hedges | – | ||
| Exchange-rate differences on translation | |||
of foreign operations | – | ||
Income tax relating to items that may be reclassified | |||
Total | – | ||
Other comprehensive income, net of tax | 11 | – | |
Total comprehensive income for the period | |||
| Income for the period attributable to: | |||
Equity holders of the Parent Company | |||
Total | |||
| Total comprehensive income for the period | |||
| attributable to: | |||
Equity holders of the Parent Company | |||
Total | |||
Earnings per share, SEK | 20 | ||
| For income attributable to the equity holders | |||
| of the Parent Company: | |||
Basic, SEK | |||
Diluted, SEK | |||
Average number of shares | 20 | ||
Basic, million | |||
Diluted, million |
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OTHER INFORMATION
Consolidated
balance sheet
| December 31 | December 31 | ||
SEKm | Note | 2023 | 2022 |
| Assets | |||
| Non-current assets | |||
Property, plant and equipment, owned | 12 | ||
Property, plant and equipment, right-of-use | 8 | ||
Goodwill | 13 | ||
Other intangible assets | 13 | ||
Deferred tax assets | 10 | ||
Pension plan assets | 21 | ||
Other non-current assets | 14 | ||
Total non-current assets | |||
| Current assets | |||
Inventories | 15 | ||
Trade receivables | 17, 18 | ||
Tax assets | |||
Other current assets | 16 | ||
Short-term financial assets | 18 | ||
Cash and cash equivalents | 18 | ||
Total current assets | |||
Total assets |
| December 31 | December 31 | ||
SEKm | Note | 2023 | 2022 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to equity holders | |||
| of the Parent Company | |||
Share capital | 20 | ||
Other paid-in capital | 20 | ||
Other reserves | 20 | ||
Retained earnings | 20 | ||
| Equity attributable to equity holders | |||
of the Parent Company | |||
Total equity | |||
| Non-current liabilities | |||
Long-term borrowings | 18 | ||
Long-term lease liabilities | 18 | ||
Deferred tax liabilities | 10 | ||
Provisions for post-employment benefits | 21 | ||
Other provisions | 22 | ||
Total non-current liabilities | |||
| Current liabilities | |||
Trade payables | 18 | ||
Tax liabilities | |||
Other liabilities | 23 | ||
Short-term borrowings | 18 | ||
Short-term lease liabilities | 18 | ||
Other provisions | 22 | ||
Total current liabilities | |||
Total equity and liabilities |
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Change in consolidated equity
| Attributable to equity holders of the Parent Company | ||||||
| Share | Other | Other | Retained | Total | ||
SEKm | Note | capital | paid-in capital | reserves | earnings | equity |
Opening balance, January 1, 2022 | ||||||
Income for the period | ||||||
Cash flow hedges | ||||||
Remeasurement of provisions for post-employment benefits | – | – | ||||
Exchange differences on translation of foreign operations | ||||||
Income tax relating to other comprehensive income | ||||||
Other comprehensive income, net of tax | – | |||||
Total comprehensive income for the period | ||||||
Dividend | – | – | ||||
Share-based incentive program | ||||||
Equity swap for share-based incentive program | – | – | ||||
Total transactions with equity holders | – | – | ||||
Closing balance, December 31, 2022 | ||||||
Opening balance, January 1, 2023 | ||||||
Income for the period | ||||||
Cash flow hedges | – | – | ||||
Remeasurement of provisions for post-employment benefits | ||||||
Exchange differences on translation of foreign operations | – | – | ||||
Income tax relating to other comprehensive income | – | |||||
Other comprehensive income, net of tax | – | – | ||||
Total comprehensive income for the period | – | |||||
Dividend | – | – | ||||
Share-based incentive program | ||||||
Equity swap for share-based incentive program | – | – | ||||
Total transactions with equity holders | – | – | ||||
Closing balance, December 31, 2023 | ||||||
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Consolidated
cash flow statement
SEKm | Note | 2023 | 2022 |
| Operations | |||
Operating income | |||
Depreciation and amortization | |||
Other non-cash items | |||
Interest and similar items received | |||
Interest and similar items paid | – | – | |
Taxes paid | – | – | |
Cash flow from operations, excluding change in operating assets and liabilities | |||
| Change in operating assets and liabilities | |||
Change in inventories | – | ||
Change in trade receivables | – | ||
Change in trade payables | – | ||
Change in other operating assets, liabilities and provi- sions | – | – | |
Cash flow from change in operating assets and liabili- ties | – | ||
Cash flow from operations | |||
| Investments | |||
Acquisition of operations | 25 | ||
Divestment of operations | 25 | – | |
Capital expenditure in property, plant and equipment | 12 | – | – |
Capital expenditure in product development | 13 | – | |
Capital expenditure in other intangibles | 13 | – | – |
Other | |||
Cash flow from investments | – | – | |
Cash flow from operations and investments |
SEKm | Note | 2023 | 2022 |
| Financing | |||
Change in short-term investments, net | 18 | – | |
Change in short-term borrowings, net | 18 | – | |
New long-term borrowings | 18 | ||
Amortization of long-term borrowings | 18 | – | – |
Payment of lease liabilities | 18 | – | – |
Dividend | – | – | |
Equity swap for share-based incentive program | – | – | |
Cash flow from financing | – | – | |
Total cash flow | |||
Cash and cash equivalents at beginning of period | |||
| Exchange-rate differences pertaining to cash | |||
and cash equivalents | – | ||
Cash and cash equivalents at end of period |
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Parent Company
income statement
SEKm Note 2023 2022
Net sales 4 3,218 2,963
Cost of goods sold –2,264 –2,078
Gross operating income 954 885
Selling expenses –434 –405
Administrative expenses –219 –222
Other operating income/expenses 6 –17 –20
Operating income 284 238
Financial income/expenses 9 304 660
Impairment of shares in subsidiaries 14 –79 –467
Income after financial items 509 431
Appropriations 29 10 12
Income before taxes 519 443
Taxes 10 –65 –51
Income for the period 454 392
Parent Company statement of
total comprehensive income
SEKm Note 2023 2022
Income for the period 454 392
Items that may be subsequently reclassified
to income for the period:
Cash flow hedges –15 –
Exchange-rate differences on translation
of foreign operations –1 3
Income tax relating to items that may be reclassified 3 –
Other comprehensive income, net of tax –13 3
Total comprehensive income for the period 441 395
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Parent Company
balance sheet
SEKm Note
December 31
2023
December 31
2022
Assets
Non-current assets
Property, plant and equipment, owned 12 233 216
Intangible assets 13 15 38
Deferred tax assets 10 16 14
Shares in subsidiaries 14, 30 5,866 5,946
Long-term receivables from subsidiaries 14 1,644 2,890
Total non-current assets 7,774 9,104
Current assets
Inventories 15 289 303
Receivables from subsidiaries 1,446 746
Trade receivables 17 300 332
Tax assets 12 -
Other current assets 84 208
Short-term financial assets – 200
Cash and cash equivalents 18 778 677
Total current assets 2,909 2,466
Total assets 10,683 11,570
SEKm Note
December 31
2023
December 31
2022
Equity and liabilities
Restricted equity
Share capital 20 29 29
Statutory reserve 5 5
Development reserve 2 6
36 40
Non-restricted equity
Retained earnings 6,286 6,103
Income for the period 454 392
6,740 6,495
Total equity 6,776 6,535
Untaxed reserves 88 97
Non-current liabilities
Other provisions 121 104
Other non-current loans 1,192 2,824
Total non-current liabilities 1,313 2,928
Current liabilities
Payables to subsidiaries 1,152 1,301
Trade payables 351 388
Tax liabilities - 5
Other liabilities 287 315
Short-term borrowings 716 –
Other provisions – 1
Total current liabilities 2,506 2,010
Total equity, untaxed reserves, and liabilities 10,683 11,570
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Parent Company change in equity
Restricted equity Non-restricted equity
SEKm Note
Share
capital
Statutory
reserve
Development
reserve
Fair value
reserve
Retained
earnings
Total
equity
Opening balance, January 1, 2022 29 5 10 0 6,263 6,307
Income for the period - - - - 392 392
Cash flow hedges - - - - – –
Exchange differences on translation of foreign operations - - - - 3 3
Income tax relating to other comprehensive income - - - - – –
Total comprehensive income for the period - - - - 395 395
Dividend - - - - –144 –144
Share-based incentive program - - - - 10 10
Equity swap for share-based incentive program - - - - –33 –33
Development reserve - - –4 - 4 –
Total transactions with equity holders - - –4 - –163 –167
Closing balance, December 31, 2022 29 5 6 0 6,495 6,535
Income for the period - - - - 454 454
Cash flow hedges - - - - –15 –15
Exchange differences on translation of foreign operations - - - - –1 –1
Income tax relating to other comprehensive income - - - - 3 3
Total comprehensive income for the period - - - - 441 441
Dividend - - - - –201 –201
Share-based incentive program - - - - 28 28
Equity swap for share-based incentive program - - - - –27 –27
Development reserve - - –4 - 4 0
Total transactions with equity holders - - –4 - –196 –200
Closing balance, December 31, 2023 29 5 2 0 6,740 6,776
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Parent Company
cash flow statement
SEKm Note 2023 2022
Operations
Operating income 284 238
Depreciation and amortization 12, 13 67 64
Other non-cash items – 10
Financial items paid, net –1 26
Taxes paid –81 –41
Cash flow from operations, excluding change
in operating assets and liabilities 269 297
Change in operating assets and liabilities
Change in inventories 14 –94
Change in trade receivables 31 –66
Change in trade payables –38 51
Change in other operating assets,
liabilities and provisions 97 –63
Cash flow from change in operating assets
and liabilities 104 –172
Cash flow from operations 373 125
Investments
Capital expenditure in property, plant and equipment 12 –47 –21
Cash flow from investments -47 –21
Cash flow from operations and investments 325 104
SEKm Note 2023 2022
Financing
Change in short-term investments 200 –200
Change in internal lending and borrowing 324 –564
Change in external short-term borrowing 18 810 –1,129
New long-term borrowing 18 –1,633 1,610
Equity swap for share-based incentive program –27 –33
Dividend to shareholders –201 –144
Dividend from subsidiaries 304 642
Cash flow from financing –224 182
Total cash flow 102 286
Cash and cash equivalents at beginning of period 677 391
Cash and cash equivalents at end of period 778 677
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NOTE 2 FINANCIAL RISK MANAGEMENT, CONT.
average credit duration of the total debt portfolio exceeds two
years and at any given point in time, liquidity reserves are moni-
tored and kept in line with the Policy.
Foreign exchange risk
Foreign exchange risk is defined as the risk that fluctuations in cur-
rency exchange rates have a negative impact on the company’s
financial position, profitability or cash flow. In order to manage such
effects, the Group covers these risks within the framework of the
Financial Policy, and the Group’s overall currency exposure is man-
aged centrally by Group Treasury.
As general rule, financing is to be made in each company’s local
currency, and net foreign exchange exposures on financial assets
and liabilities are to be hedged by Group Treasury. After hedging,
the foreign exchange exposure on financial items is immaterial.
Transaction exposure from commercial flows
Transaction exposure is defined as the confirmed future net of
operational and financial inflows and outflows of currencies. The
Financial Policy stipulates the extent to which commercial flows are
to be hedged.
The Group’s geographically widespread production reduces the
effects 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.
If the currency exposure is significant based on long-term con-
tracts in foreign currencies, Group Treasury be is contacted for
decisions on potential hedges. Group Treasury is the sole party
authorized to execute financial hedge transactions and derivative
contracts with external parties.
Translation exposure from consolidation
of entities outside Sweden
Translation exposure is defined as the risk that fluctuations in cur-
rency exchange rates have a negative impact on the balance sheet
or consolidated equity. This occurs when a portion of consolidated
equity, net assets, or a financial asset or liability are denominated in
a foreign currency. Electrolux Professional does not hedge such ex-
posure. The translation exposures arising from income statements of
foreign subsidiaries are included in the sensitivity analysis below.
Foreign-exchange sensitivity from transaction
and translation exposure
The major net export currencies that Electrolux Professional is ex-
posed to are the EUR, THB, and SEK. The major import currencies
that Electrolux Professional is exposed to are the USD, GBP, JPY,
DKK, NOK, and CNY. These currencies represent the majority of the
exposures of the Group.
The currency exposure from foreign investments should, when
possible, be mitigated by loans in local currency. The remaining
foreign net investment should not generally be hedged by financial
derivatives. In exceptional cases the Group CFO may decide to use
financial derivatives to hedge net investments in foreign subsidiaries.
The table below shows the effect from a change in exchange
rates for the Group's major currencies. The analysis takes into con-
sideration the net transaction flow as disclosed in Note 18 and op-
erating income (EBIT – i.e. before tax) by functional currency as per
the end of each year. The table does not cover the equity effect of
changes in FX rates. The model assumes the distribution of earnings
and costs effective at year-end and does not include any dynamic
effects, such as changes in competitiveness or consumer behavior
arising from such changes in exchange rates.
Exposures Profit or Loss Impact
Currency Change
12m net
flows (in
and out) Hedge
12m net
flows includ-
ing Hedges EBIT
12m net
flows and
EBIT
Transaction
exposure
EBIT
Translation
exposure
Profit or
loss impact
2023
Profit or
loss impact
2022
USD/SEK –10% 649 – 649 290 939 –65 –29 –94 –92
GBP/SEK –10% 183 – 183 10 193 –18 –1 –19 –23
EUR/SEK –10% –333 – –333 501 168 33 –50 –17 8
JPY/SEK –10% 72 – 72 26 99 –7 –3 –10 –5
DKK/SEK –10% 90 – 90 7 97 –9 –1 –10 –11
TRY/SEK –10% 37 – 37 55 91 –4 –5 –9 –6
NOK/SEK –10% 72 – 72 7 79 –7 –1 –8 –8
CZK/SEK –10% 37 – 37 1 38 –4 0 –4 –4
AUD/SEK –10% 25 – 25 4 29 –3 0 –3 –3
THB/SEK –10% –317 – –317 73 –244 32 –7 24 21
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NOTE 2 FINANCIAL RISK MANAGEMENT, CONT.
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NOTE 3 SEGMENT INFORMATION
Geographical information, net sales¹
SEKm 2023 2022
United States 2,913 3,048
Italy 1,589 1,377
France 961 861
Sweden 901 851
Germany 689 675
Great Britain 447 407
Finland 408 302
Spain 314 241
Switzerland 306 278
Denmark 294 273
Turkey 220 152
Japan 204 201
China 193 195
Norway 155 161
Netherlands 146 127
Australia 131 121
Austria 114 109
Malaysia 110 48
Belgium 107 114
Greece 94 74
Other 1,552 1,422
Total 11,848 11,037
1) Net sales attributable to countries on the basis of customer location.
Property, plant and equipment and intangible assets located in the
Group’s country of domicile, Sweden, amounted to SEK 278m (270).
Property, plant and equipment and intangible assets located in all
other countries amounted to SEK 5,717m (5,978). Individually, mate-
rial countries in this regard are the US with SEK 3,143m (3,380), Italy
with SEK 879m (895) and France with SEK 524m (537).
No single customer of the Group represents 10% or more of the
external revenue.
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NOTE 4 REVENUE RECOGNITION
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NOTE 4 REVENUE RECOGNITION, CONT.
Parent Company Contract liabilities
SEKm
Advances
from
customers
Customer
bonuses/
incentives
Prepaid income
– service/
warranty
Contract
liabilities,
total
Opening balance, January 1, 2022 30 22 50 102
Gross increase during the period 16 49 14 79
Paid to/settled with customer – –49 – –49
Revenue recognized during the year –23 – –14 –37
Other – – –1 –1
Closing balance, December 31, 2022 23 22 49 94
Opening balance, January 1, 2023 23 22 49 94
Gross increase during the period 7 54 18 79
Paid to/settled with customer – –54 – –54
Revenue recognized during the year –18 – –26 –44
Other – – – –
Closing balance, December 31, 2023 12 22 41 75
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NOTE 5 OPERATING EXPENSES
NOTE 7 MATERIAL PROFIT AND LOSS ITEMS
This note summarizes events and transactions that have a signifi-
cant effect and are therefore relevant for understanding financial
performance 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 significant down-sizing of major units or activities
• Larger cost-saving programs
• Significant impairment
• Other major cost or income items
There were no material profit and loss items in 2023. Material profit
and loss items in 2022 consists of the costs related to the divestment
of the operation in Russia.
Material profit and loss items
SEKm 2023 2022
Loss from divesting the operation in Russia – –35
Total – –35
Material profit and loss items per function
SEKm 2023 2022
Other operating income and expenses – –35
Total – –35
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NOTE 8 LEASES
Property, plant and equipment, right-of-use
SEKm Buildings Machinery Vehicles
Other
equipment Total
Carrying amount
Opening balance, January 1, 2022 267 1 48 2 318
Divestment of operations –1 – – – –1
Additions 5 – 32 –0 37
Cancellations –9 – – – –9
Depreciation –54 –1 –26 –1 –82
Reclassification – – – – –
Exchange rate differences 28 0 3 0 31
Closing balance, December 31, 2022 236 0 57 1 294
Opening balance, January 1, 2023 236 0 57 1 294
Divestment of operations – – – – –
Additions 44 1 61 3 109
Cancellations –0 – –1 – –2
Depreciation –51 –0 –34 –1 –86
Reclassification – – – – –
Exchange rate differences –6 0 –0 –0 –6
Closing balance, December 31, 2023 222 1 83 3 309
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NOTE 8 LEASES, CONT.
Lease expenses
SEKm 2023 2022
Lease expenses
Short-term leases –10 –0
Leases of low-value assets –1 –1
Depreciation –86
–82
Variable lease payments –4 –4
Total –100 –87
Lease liability, interest expense –11 –10
Total cash outflow from lease contracts for 2023 amounts to SEK
112m (97). There were no committed lease contracts for which the
commencement date has not yet occurred neither at year-end 2023
nor 2022.
For information on maturity profile, see note 18.
NOTE 9 FINANCIAL INCOME AND
FINANCIAL EXPENSES
NOTE 10 TAXES
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NOTE 10 TAXES, CONT.
SEKm 2023 2022
Items that will not be reclassified to income
for the period:
Remeasurement of provisions for post-em-
ployment benefits
Opening balance, January 1 23 161
Gain/loss to other comprehensive income 4 –152
Income tax relating to items that will not be
reclassified –1 14
Closing balance, December 31 26 23
Items that may subsequently be reclassified
to income for the period:
Cash flow hedges
Opening balance, January 1 – –
Gain/loss to other comprehensive income –15 –
Closing balance, December 31 –15 –
Exchange differences on translation
of foreign operations
Opening balance, January 1 517 157
Translation differences –88 360
Extended net investment –50 –
Closing balance, December 31 379 517
Income tax relating to items that may sub-
sequently be reclassified to income for the
period
Opening balance, January 1 – –
Cash flow hedges 3 –
Extended net investment 10 –
Closing balance, December 31 13 –
Other comprehensive income, net of tax –137 223
NOTE 11 OTHER COMPREHENSIVE INCOME
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NOTE 12 PROPERTY, PLANT AND EQUIPMENT
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NOTE 12 PROPERTY, PLANT AND EQUIPMENT, CONT.
Parent company
SEKm
Land and land
improvements Buildings
Machinery and
technical installations Other equipment
Plants under construction
and advances Total
Acquisition costs
Opening balance, January 1, 2022 8 86 494 88 36 712
Acquired during the year – – – – 21 21
Transfer of work in progress and advances 2 9 10 11 –32 –
Closing balance, December 31, 2022 10 95 504 99 25 733
Acquired during the year - - - - 47 47
Transfer of work in progress and advances – – 19 6 -25 -
Sales, scrapping, etc. - - -30 - - -30
Closing balance, December 31, 2023 10 95 493 105 47 750
Accumulated depreciation
Opening balance, January 1, 2022 4 24 377 82 0 487
Depreciation for the year – 3 21 6 – 30
Closing balance, December 31, 2022 4 27 398 88 0 517
Depreciation for the year 1 2 22 5 - 30
Sales, scrapping, etc - - -30 - - -30
Closing balance, December 31, 2023 5 29 390 93 0 517
Net carrying amount, December 31, 2022 6 68 106 11 25 216
Net carrying amount, December 31, 2023 5 66 103 12 47 233
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NOTE 13 GOODWILL AND OTHER INTANGIBLE ASSETS
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NOTE 13 GOODWILL AND OTHER INTANGIBLE ASSETS, CONT.
Group
Other intangible assets
Parent
Company
SEKm
Goodwill
Product
development
Customer
relations Trademarks Other
Total other
intangible assets
Total
intangible assets
Acquisition costs
Opening balance, January 1, 2022 3,068 108 682 206 326 1,321 115
Acquired during the year – – – 0 22 22 –
Acquisition of operations¹ –73 – – – –0 –0 –
Internally developed – – – – – – –
Reclassification – – – –0 0 – –
Sales, scrapping etc. – – – – –3 –3 –
Exchange rate differences 386 9 92 28 48 178 –
Closing balance, December 31, 2022 3,381 117 774 234 394 1,519 115
Acquired during the year – – – 0 19 19 –
Acquisition of operations¹ – – – – – – –
Internally developed – 9 – – – 9 –
Reclassification – – – –0 –1 –1 –
Sales, scrapping etc. – – – –0 –2 –2 –
Exchange rate differences –92 2 –22 –7 –14 –41 –
Closing balance, December 31, 2023 3,290 127 753 227 397 1,503 115
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NOTE 13 GOODWILL AND OTHER INTANGIBLE ASSETS, CONT.
Group
Other intangible assets
Parent
Company
SEKm Goodwill
Product
development
Customer
relations Trademarks Other
Total other
intangible assets
Total
intangible assets
Accumulated amortization
Opening balance, January 1, 2022 – 85 122 38 76 322 54
Amortization for the year – 10 59 23 63 155 23
Reclassification – – – – – – –
Sales, scrapping etc. – – – – – – –
Impairment – – – 3 – 3 –
Exchange rate differences – 8 17 6 12 43 –
Closing balance, December 31, 2022 – 104 198 70 151 522 77
Amortization for the year – 9 62 21 70 163 23
Reclassification – – – – –1 –1 –
Sales, scrapping etc. – – – – –2 –2 –
Impairment – – – – – – –
Exchange rate differences – 2 –7 –3 –8 –16 –
Closing balance, December 31, 2023 – 115 253 88 211 667 100
Carrying amount, December 31, 2022 3,381 13 576 164 243 997 38
Carrying amount, December 31, 2023 3,290 12 500 139 186 837 15
1) For more information about the reduction in acquired goodwill in 2022, see note 25.
Amortization of intangible assets has been included in Cost of goods sold in the amount of SEK 71m (69). Administrative expenses of SEK 8m (5) and Selling expenses of SEK 83m (82) are included in the consol-
idated statement of comprehensive income. No borrowing costs
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NOTE 14 OTHER NON-CURRENT ASSETS
Group Parent Company
SEKm 2023 2022 2023 2022
Shares in subsidiaries – – 5,866 5,946
Long-term financial
receivables from
subsidiaries – – 1,644 2,890
Long-term operational
receivables 17 19 – –
Total 17 19 7,510 8,836
financial receivables from subsidiaries include loans and expected
credit loss of SEK 5m (5).
Shares in subsidiaries
Parent Company
SEKm 2023 2022
Accumulated cost
Opening balance, January 1 8,451 8,461
Investments – –
Divestments – –10
Shareholders’ contribution – –
Closing balance, December 31 8,451 8,451
Accumulated impairment
Opening balance, January 1 2,505 2,039
Impairment 79 467
Closing balance, December 31 2,584 2,505
Total 5,866 5,946
In the fourth quarter of 2023, Electrolux Professional AB impaired
SEK 79m (467) related to some of its investments in subsidiaries. The
main reason for the impairment is lower future statutory expected
profit generation.
NOTE 15 INVENTORIES
Group Parent Company
SEKm 2023 2022 2023 2022
Raw materials 657 752 78 70
Work in progress 64 71 16 26
Finished products 966 1,151 195 207
Advances to suppliers 4 7 – –
Total 1,692 1,981 289 303
The cost of inventories recognized as expense and included in
Cost of goods sold, amounted to SEK 6,479m (5,981) for the Group.
Write-downs due to obsolescence amounted to SEK 102m (98)
and reversals, due to scrapping or sale of previous write-downs
amounted to SEK 190m (65) for the Group. The amounts have been
included in the item Cost of goods sold in the Statement of compre-
hensive income.
NOTE 16 OTHER CURRENT ASSETS
SEKm 2023 2022
VAT receivable 142 167
Prepaid expenses and accrued income 74 71
Prepaid interest expenses and
accrued interest income 1 1
Derivatives 29 152
Miscellaneous short-term receivables 19 27
Total 266 416
Miscellaneous short-term receivables include advances to
employees and receivables from tax agencies.
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NOTE 17 TRADE RECEIVABLES
Group Parent Company
SEKm 2023 2022 2023 2022
Trade receivables 1,980 2,116 313 343
Provisions for expected
credit loss –76 –88 –13 –11
Trade receivables, net 1,904 2,028 300 332
Provisions in relation to
trade receivables, % 3.8 4.2 4.2 3.2
Provisions for expected credit loss
Group Parent Company
SEKm 2023 2022 2023 2022
Provisions, January 1 –88 –93 –11 –11
Acquisition of operations – – – –
Divestment of
operations – 1 – –
Charged/released to
PL, net 7 –4 –2 –
Actual credit losses 5 15 – –
Exchange rate
differences and other
changes 1 –7 – –
Provisions, December 31 –76 –88 –13 –11
Aging analysis of trade receivables past due
Group Parent Company
SEKm 2023 2022 2023 2022
Trade receivables not
overdue 1,647 1,772 313 343
Past due date 1–15 days 122 115 – –
Past due date 16–60
days 88 93 – –
2–6 months overdue 65 72 – –
6–12 months overdue 25 22 – –
More than 1 year 33 43 – –
Provison for expected
credit loss –76 –88 –13 –11
Total trade receivables 1,904 2,028 300 332
For accounts receivable that are not yet due and those past their
due date by up to 60 days, 0% of the amount is reserved. For ac-
counts receivable that are past their due date by between 2 and 6
months, 28% is reserved. Accounts receivable that are past their due
date by between 6 and 12 months, and accounts receivable that
are more than 12 months past their due date are reserved at 100%.
The percentages refer to the 2023 year end. Based on historical ex-
perience, default is not considered until after 6 months past due.
NOTE 18 FINANCIAL INSTRUMENTS
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
Changes in liabilities arising from financing
Group Cash flow Non-cash flow
2023
SEKm Opening balance Amortization New debt Acquisitions
Additions/
cancellations Reclassification
Exchange rate
differences
Closing
balance
Long-term borrowings (including short-term part of long-term) 2,824 –1,543 – – – – –15 1,266
Short-term borrowings (including factoring with recourse) 7 –717 1,359 – – –7 – 642
Lease liabilities 304 –86 109 – –2 – –6 319
Total 3,135 –2,346 1,468 – –2 –7 –21 2,227
Group Cash flow Non-cash flow
2022
SEKm Opening balance Amortization New debt Acquisitions
Additions/
cancellations Reclassification
Exchange rate
differences
Closing
balance
Long-term borrowings (including short-term part of long-term) 1,215 –0 1,534 – – – 75 2,824
Short-term borrowings (including factoring with recourse) 1,045 –6,617 5,255 – – – 324 7
Lease liabilities 326 –79 38 –1 –9 – 29 304
Total 2,586 –6,696 6,827 –1 –9 – 428 3,135
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
Parent Company Cash flow Non-cash flow
2023
SEKm Opening balance Amortization New debt
Change in
financial liabilities,
subsidiaries Acquisitions
Additions/
cancellations
Exchange rate
differences
Closing
balance
Long-term borrowings (including short-term part of long-term) 2,824 –1,543 – – – – –15 1,266
Short-term borrowings (including factoring with recourse) 7 – 642 7 – – – 656
Total 2,831 –1,543 642 7 – – –15 1,922
1) Of the SEK 656m, SEK 642m is presented as short-term borrowings in the balance sheet and SEK 14m is disclosed as part of payables to subsidiaries.
Parent Company Cash flow Non-cash flow
2022
SEKm Opening balance Amortization New debt
Change in
financial liabilities,
subsidiaries Acquisitions
Additions/
cancellations
Exchange rate
differences
Closing
balance
Long-term borrowings (including short-term part of long-term) 1,215 – 1,534 – – – 75 2,824
Short-term borrowings (including factoring with recourse) 1,288 –1,039 – –249 – – 7 7¹
Totalt 2,503 –1,039 1,534 –249 – – 82 2,831
1) Of the SEK 7m, SEK 0m is presented as short-term borrowings in the balance sheet and SEK 7m is disclosed as part of payables to subsidiaries.
Parent Company Carrying amount
SEKm, borrowings
Description of loan Duration Interest rate Currency
Nominal
amount 2023 2022
AB Svensk Exportkredit 2020–2027 Floating, 3 months SEK 600 600 600
Nordic Investment Bank 2021–2028 Floating, 6 months EUR 60 592 667
Syndicated loan facility 2022–2024 Floating, 3 months EUR 140 – 1,557
Long-term borrowings 1,192 2,824
Commercial paper 3 months 4.54% – 4.72% SEK 650 642 –
Loan from subsidiaries 2024 Fixed rate EUR 1.3 14 –
Loan from subsidiaries 2023 Fixed rate EUR 0.6 – 7
Short-term part of long-
term loans 74 -
Short-term borrowings 730 7
Total borrowings 1,922 2,831
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OTHER INFORMATION
NOTE 18 FINANCIAL INSTRUMENTS, CONT.
Repayment schedule for long-term borrowings, December 31, 2023
SEKm 2024 2025 2026 2027 2028 2029– Totalt
Bank and other loans 724 148 148 748 148 – 1,916
Total 724 148 148 748 148 – 1,916
Commercial flows
The Electrolux Professional Financial Policy states that:
• Currency exposure in operational units may be hedged on a case
by case basis. Forecasted flows should normally not be hedged,
as these exposures should be mitigated with natural hedges and
price adjustments.
• The Head of Group Treasury is authorized to approve hedging of
known flows, such as internal dividends or M&A related payments,
that due to timing reasons cause a temporary exposure to the
Group.
The table below shows the forecasted transaction flows, imports
and exports, for the 12-month period of 2024, at year-end 2023.
As of December 31, 2023, no financial instruments were in place to
hedge transaction flows.
Forecasted transaction flows and hedges
SEKm SEK EUR THB CZK CNY NOK JPY DKK GBP USD Other Total
Inflow of currency, long
position 1,399 1,333 107 48 44 72 72 95 184 842 221 4,417
Outflow of currency, short
position –1,980 –1,666 –423 –12 –1 – – –5 0 –192 –138 –4,417
Net transaction flow –581 –333 –317 37 43 72 72 90 183 649 84 0
P. 125Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
P. 126Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
P. 127Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
2023
1
2022
1
Parent Company
SEKm
Hierarchy
level
Carrying
amount
Hierarchy
level
Carrying
amount
Trade receivables 410 534
Financial assets at amortized cost 300 333
Financial assets at amortized cost, subsidiaries 110 201
Derivatives 29 152
Financial assets at fair value through profit or loss 29 2 152
Long-term financial assets 1,644 2,890
Financial assets at amortized cost, subsidiaries 1,644 2,890
Short-term financial assets 1,280 517
Financial assets at amortized cost, subsidiaries 1,280 517
Cash and cash equivalents 778 677
Financial assets at amortized cost 778 677
Total financial assets 4,141 4,770
Financial liabilities
Long-term borrowings 1,192 2,824
Financial liabilities at amortized cost 1,192 2,824
Trade payables 550 578
Financial liabilities at amortized cost 351 388
Financial liabilities at amortized cost, subsidiaries 199 190
Short-term borrowings² 1,660 1,106
Financial liabilities at amortized cost 716 –
Financial liabilities at amortized cost, subsidiaries 944 1,106
Derivatives 40 54
Financial liabilities at fair value through profit or loss 40 2 54
Total financial liabilities 3,442 4,562
1) Carrying amount equals fair value except for long-term and short-term borrowings with a combined fair value of SEK
1,934m (2,846). The calculation of fair value of the Group’s borrowings is level 2 in the fair value hierarchy.
2) Of the SEK 1,660m (1,106), SEK 716m (0) is presented in the balance sheet as short-term borrowings and SEK 1,142m
(1,296) is disclosed as part of payables to subsidiaries.
P. 128Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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Seven years in summary
Definitions
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NOTE 18 FINANCIAL INSTRUMENTS, CONT.
NOTE 19 ASSETS PLEDGED FOR LIABILITIES
TO CREDIT INSTITUTIONS
There are no pledged assets to be disclosed for 2023 nor for 2022.
NOTE 20 SHARE CAPITAL, NUMBER OF SHARES, AND EARNINGS PER SHARE
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Seven years in summary
Definitions
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NOTE 21 POST-EMPLOYMENT BENEFITS
Post-employment benefits
The Group sponsors pension plans in many of the countries in
which it has activities. Pension plans can be defined contribution
The majority of the funded pension obligation is attributable to
the Swiss pension plan, where benefits are career average in nature.
Contributions are paid to a pension foundation and a recovery plan
has to be set up if the plan is underfunded on a local funding basis.
Swiss laws do not state any specific way of calculating an employ-
er‘s additional contribution and because of that there is normally
no minimum funding requirement. Benefits are paid from the plan
assets.
In France and Italy, provisions are made for compulsory sever-
ance 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, these plans are unfunded.
Unfunded pension plans also exist in other countries within the
Group, such as Austria, Thailand, and Japan.
Commitments for retirement pension for salaried employees
in Sweden related to ITP2 are guaranteed through insurance with
Alecta. In accordance with a statement from the Swedish Financial
Reporting Board, UFR10, this is a defined benefit multi-employer
plan. For the 2023 financial year, the company did not have access
to information that would enable it to report its proportional share
of the plan’s obligation, plan assets and costs, which means that
the plan could not be reported as a defined benefit plan, therefore
reported as a defined contribution plan. On December 31, 2023,
Alecta’s surplus, which can be distributed between the policy holder
and/or the persons insured in the form of the collective consolida-
tion rate, preliminary amounted to 157% (172). The collective con-
solidation rate comprises the market value of Alecta’s assets as a
percentage of the insurance commitments produced in accordance
with Alecta’s actuarial calculation assumptions, which are not in
agreement with IAS 19. The collective consolidation level is normally
allowed to vary between 125 to 175%. If the collective consolidation
level falls below 125%, one measure could be raising the contractual
premiums for taking up new insurance and expanding existing ben-
efits. If collective consolidation exceeds 150%, one action could be
to implement premium reductions. Expected fees for the next report-
ing period for ITP2 insurance with Alecta amount to SEK 13m (9).
The discount rate used for the calculation of expenses during
2023 was 2.42% on average, which was the same rate used to
estimate liabilities at the end of 2022.
An explanation of the amounts in the financial statements relat-
ing to defined benefit obligations is presented in the following table.
SEKm
December 31,
2023
December 31,
2022
Amounts included in
the balance sheet
Funded plans
Present value of funded obligations 880 739
Fair value of plan assets –1,057 –970
Effect of asset ceiling 175 231
Net amount (surplus)/deficit,
funded plans –2 0
Average duration of the obligation,
years 11.9 11.6
Unfunded plans
Present value of unfunded
obligations 100 103
Average duration of the obligation,
years 8.4 8.1
Total net amount (surplus)/deficit 98 103
Of which reported as
Pension plan assets 2 0
Provisions for post-employment
benefit plans 100 103
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NOTE 21 POST-EMPLOYMENT BENEFITS, CONT.
SEKm 2023 2022
Pension cost
Service cost –13 –8
Interest income/expense, net –3 0
Pension cost, defined benefit plans –16 –8
Pension cost, defined contribution plans –70 –65
Pension cost included in income
for the period –86 –73
Remeasurement gain/loss attributable to
defined benefit plans 1 –152
Total pension cost included in other
comprehensive income –85 –225
Amounts included in the
cash flow statement
Contributions by the employer –12 –10
Benefits paid by the employer –7 –5
Major assumptions for the valuation
of the liability
Funded plans
Longevity, years,
1
Male 21.8 21.8
Female 23.6 23.6
Inflation, %
2
1.3 1.3
Discount rate, % 1.3 2.2
Unfunded plans
Inflation, %
2
2.1 2.4
Discount rate, % 3.7 3.8
1) Expressed as the average life expectancy of a 65-year-old person in num-
ber of years.
2) General inflation impacting salary and pensions increases.
Reconciliation of change in present value of funded
and unfunded obligations
SEKm 2023 2022
Opening balance, January 1 842 935
Current service cost 13 13
Special events –1 –6
Interest expense 20 3
Remeasurement arising from changes in
financial assumptions 78 –206
Remeasurement from changes in
demographic assumptions 0 2
Remeasurement from experience 14 24
Contributions by plan participants 12 10
Benefits paid –43 –50
Exchange differences 45 110
Settlements and other 0 7
Closing balance, December 31 980 842
Reconciliation of change in the
fair value of plan assets
SEKm 2023 2022
Opening balance, January 1 970 974
Interest income
1
22 2
Return on plan assets, excluding amounts
included in interest
1
20 –111
Net contribution by employer 12 10
Contribution by plan participants 12 10
Benefits paid –37 –45
Exchange differences 58 129
Settlements and other – 1
Closing balance, December 31 1,057 970
1) The actual return on plan assets amounts to SEK 42m (-113).
Risks
There are three main categories of risks related to defined benefit
obligations and pension plans. Increased longevity and inflation
of salary and pensions may increase the future pension payments
and, hence, increase the pension obligation. Pension plan assets
are invested in a variety of financial instruments and are exposed
to market fluctuations. The discount rate used for measuring the
present value of the obligation may fluctuate, which impacts the
valuation of the Defined Benefit Obligation (DBO). The discount rate
also impacts the size of the interest income and expense that is re-
ported in the Financial items and the service cost. Expected salary
increase and mortality assumptions are based on local conditions
in each country and changes in those assumptions affect the mea-
sured obligation.
Below is the sensitivity analysis for the main financial assump-
tions and the potential impact on the present value of the defined
pension obligation. Note that the sensitivities are not meant to ex-
press any view by Electrolux Professional Group on the probability
of a change.
Sensitivity analysis on defined benefit obligation
SEKm 2023 2022
Longevity +1 year 26 21
Inflation +0.5%¹ 12 11
Discount rate +1% –99 –79
Discount rate –1% 120 94
1) The inflation change feeds through to other inflation-dependent
assumptions, i.e., pension increases and salary growth.
In 2024, the Group expects to pay a total of SEK 15m (16) in contri-
butions to the pension funds and as payments of benefits directly to
the employees.
Market value of plan assets by category
SEKm 2023 2022
Fixed income 274 234
Equity 323 284
Other alternative assets 129 138
Real estate 327 306
Cash 4 8
Total value of plan assets 1,057 970
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NOTE 21 POST-EMPLOYMENT BENEFITS, CONT.
Investment strategy and risk management
The assets held in funds are managed professionally by asset man-
agers who propose portfolio allocations based on a framework de-
cided by the fund boards. Risks related to pension obligations, e.g.,
mortality and inflation, are monitored on an ongoing basis by the
Group Finance Governance Board.
Governance
Defined-benefit pensions and pension plan assets are governed by
the Group Finance Governance Board, which meets 3 to 4 times per
year and has the following responsibilities:
• Approve the financial and actuarial assumptions to be used in the
calculations of the Pension Funds’ assets and liabilities.
• Initiate processes for new plans, changes to plans, or termination
of plans if such actions are found necessary.
• Approve the election of company representatives in the local
Board of Trustees (or equivalent).
Parent Company
Commitments for retirement pensions for salaried employees in
Sweden related to ITP2 are guaranteed through insurance with
Alecta, hence reported as a defined-contribution plan, equal to
ITP1.
Total pension expense for the Parent Company amounted SEK
34m (33). Expected fees for the next reporting period for ITP2 insur-
ance with Alecta amount to SEK 13m.
NOTE 22 OTHER PROVISIONS
P. 132Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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Seven years in summary
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NOTE 25 ACQUIRED AND
DIVESTED OPERATIONS
Acquisitions in 2023
No acquisitions were made in 2023.
See note 32 for acqusition in 2024.
Acquisitions in 2022
No acquisitions were made in 2022.
During the year an adjustment of the purchase price for Unified
Brands was agreed with the seller. The amount was SEK 4m and
has decreased the recognized goodwill. An additional adjustment
to the opening balance has been made reducing goodwill by SEK
69m and other operating liabilities by the same amount.
Divested operations in 2023
No divestments were made in 2023.
Divested operations in 2022
The Group concluded that under the current circumstances business
continuity in Russia is no longer feasible. As a consequence of this,
the legal entity Electrolux Professional Russia was divested to former
local management as of July 14, 2022. See Note 7 for more informa-
tion.
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Seven years in summary
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NOTE 26 EMPLOYEES AND REMUNERATION
P. 134Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
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NOTE 26 EMPLOYEES AND REMUNERATION, CONT.
Of the Board members in Group companies, 21 were men and 3
women, of which 5 men and 3 women were in the Parent Company,
excluding 3 union members. In accordance with the definition of
total pension costs for Board members and Senior managers in the
Group amounted to SEK 5m.
Compensation to Board members
2023 2022
SEK thousand
Ordinary
compensation
Compensation for
committee work
Total
compensation
Ordinary
compensation
Compensation for
committee work
Total
compensation
Kai Wärn, Chairman 1,668 84 1,752 1,613 80 1,693
Lorna Donatone 643 114 757 539 109 648
Hans Ola Meyer 556 174 730 539 166 705
Daniel Nodhäll 556 198 754 539 189 728
Martine Snels 556 114 670 539 109 648
Carsten Voigtländer 556 – 556 539 – 539
Katharine Clark 556 – 556 539 – 539
Josef Matosevic 505 – 505 – – –
Jens Pierard – – – – – –
Joachim Nord – – – – – –
Per Magnusson – – – – – –
Total compensation 5,596 684 6,280 4,845 653 5,498
Compensation for the Board of Directors
The Annual General Meeting (AGM) determines the compensation
for the Board of Directors for a period of one year until the next
AGM, including the compensation for committee work. The com-
pensation is distributed between the Chairman and other Board
Members and is paid out quarterly. The compensation paid in 2023
encompasses one quarter of the compensation authorized by the
AGM in 2022 and three quarters of the compensation authorized by
the AGM in 2023. Total compensation paid in cash in 2023 amount-
ed to SEK 6.3m, of which SEK 5.6m included ordinary compensation
and SEK 0.7m was for committee work.
Remuneration guidelines for the Group Management Team
The current guidelines were approved by the AGM in 2020. The
guidelines apply until the AGM 2024.
The remuneration terms emphasize ‘pay for performance’ and
vary with the performance of the individual and the Group. The total
remuneration for the Group Management Team is to be strongly tied
to the position held, consistent with market practice, and may com-
prise the following components: annual fixed compensation, variable
compensation, and other benefits such as pension and insurance.
The following describes the guidelines for determining the amount
of remuneration (the detailed guidelines can be found on page 92).
• Fixed compensation must be competitive relative to the relevant
country market and reflect the scope of the job responsibilities.
Fixed compensation consists of annual base salary and may, if
locally stipulated by mandatory collective agreement provisions,
also include a fixed non-compete component. Base salary levels
are to be reviewed periodically (usually annually) to ensure contin-
ued competitiveness and to recognize individual performance.
• Variable compensation may consist of short-term and long-term
incentives. Following the ‘pay for performance’ principle, variable
compensation must represent a significant portion of the total po-
tential compensation for the Group Management Team. Variable
compensation must always be measured against pre-defined tar-
gets and have a maximum above which no payout is to be made.
Both short-term incentives' and long-term incentives' entitlement
must be dependent on job level and the variable compensation
must not amount to more than 100% of the annual base salary.
• Pension and Benefits such as old-age and survivor’s pension,
disability benefits, and healthcare benefits must be designed to
reflect home-country practices and requirements. When possible,
pension plans are to be based on defined contribution. In indi-
vidual cases, depending on provisions in collective bargaining
agreements, tax and/or social security legislation to which the
individual is subject, other schemes, and mechanisms for pension
benefits may be approved. Other benefits may consist of a com-
pany car, housing, and private health insurance.
• The notice period for the President and CEO must be 12 months if
Electrolux Professional initiates termination of the employment and
6 months if the President and CEO initiates termination of the em-
ployment. For other members of the Group Management Team the
notice period is between 6 to 12 months if Electrolux Professional
initiates termination of the employment and 3 to 6 months if the
Group Management Team member initiates termination of the em-
ployment. In individual cases, contractual severance pay may be
approved in addition to the notice periods.
The Board of Directors may temporarily resolve to deviate from
the guidelines, in whole or in part, if in a specific case there is spe-
cial 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 financial viability.
President and CEO
The remuneration package for the President and CEO comprises
fixed cash compensation, variable compensation, and other bene-
fits such as pension and insurance. For the President and CEO, the
annualized base salary for 2023 was set at EUR 600,000 (approxi-
mately SEK 6,800k).
The variable compensation for the President and CEO consists
of both short-term cash-based incentive (STI) and long-term share-
based incentive (LTI). STI is based on fixed financial targets at
Group level and LTI is based on fixed financial and ESG targets at
Group level. STI can give a maximum of 100% of annual base salary
and LTI can give a maximum of 100% of annual base salary.
The notice period for the Company is 12 months and for the
President and CEO it is 6 months. The President and CEO is entitled
to 12 months' severance pay.
The President and CEO accrues pension entitlements in accor-
dance with Italian social security legislation for pensions. A vol-
untary defined contribution pension scheme is offered (Previndai)
through which the Company matches contributions of up to EUR
7,200 per year. In addition, the company also contributes to the
Italian statutory TFR.
Healthcare benefits are provided in accordance with the collec-
tively agreed plan rules of FASI and Assidai designed for Executives
(Dirigenti).
Other Members of the Group Management Team
Like the President and CEO, other members of the Group
Management Team receive a remuneration package that comprises
fixed cash compensation, variable compensation, and other bene-
P. 135Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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NOTE 26 EMPLOYEES AND REMUNERATION, CONT.
Remuneration to Group Management
2023
SEK thousand
Annual
fixed salary¹
Short-term
variable salary²
Long-term
variable salary³
Pension
contribution
Other
benefits⁴
Social security
contribution Total⁶
President & CEO 7,269 2,717 5,676 583 394 2,872 19,511
Other members of
Group Management⁵ 33,205 9,755 17,182 4,142 5,216 11,381 80,881
Total 40,474 12,472 22,858 4,725 5,610 14,253 100,392
1) The annual fixed salary includes annual base salary, vacation salary, paid vacation days, and fixed non-compete components.
2) Variable salary earned in 2023, to be paid in 2024.
3) Cost incurred in 2022 for the long-term share-based incentive programs. At the closing of the books the actual outcome wasn't known and the cost for 2023
is based on an outcome of 66%. The adjustment to 63% will be made during 2024.
4) Includes allowances and other benefits such as housing, company car, medical insurance, and retention bonus.
5) Other members comprised of 11 people at the end of 2023.
6) The remuneration of the President and CEO is defined in EUR, hence the presented remuneration in SEK is impacted by the currency exchange rate.
2022
SEK thousand
Annual
fixed salary¹
Short-term
variable salary²
Long-term
variable salary³
Pension
contribution
Other
benefits⁴
Social security
contribution Total
President & CEO 6,227 4,188 2,563 510 406 3,626 17,520
Other members of
Group Management⁵ 29,697 14,556 7,862 3,056 3,102 12,613 70,886
Total 35,924 18,744 10,425 3,566 3,508 16,239 88,406
1) The annual fixed salary includes annual base salary, vacation salary, paid vacation days, and fixed non-compete components.
2) Variable salary earned in 2022, paid in 2023.
3) Cost incurred in 2022 for the long-term share-based incentive programs. At the closing of the books the actual outcome wasn't known and the cost for
2022 is based on an outcome of 39%. The adjustment to 47% will be made during 2023.
4) Includes allowances and other benefits such as housing, company car, medical insurance, and retention bonus.
5) Other members comprised 10 people at the end of 2022. Remuneration for other members of Group Management included the SVP & GM Commercial orga-
nization America, John Evans and SVP Product & Marketing, Torsten Urban until June 2022, SVP Business Development, Douglas Walker until March 2022, and
General Counsel, Carolina Tendorf, as of July 2022.
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The Board’s assurance
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Seven years in summary
Definitions
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NOTE 26 EMPLOYEES AND REMUNERATION,
CONT.
NOTE 27 FEES TO AUDITORS
At the 2023 Annual General Meeting Deloitte was appointed as
auditor for the period until the end of the 2024 Annual General
Meeting.
Group Parent Company
SEKm 2023 2022 2023 2022
Deloitte
Audit fees
1
18 17 6 6
Audit-related fees
2
0 0 - –
Tax fees
3
0 0 - –
All other fees 0 0 - –
Total fees to Deloitte 18 18 6 6
Audit fees to other audit
firms 0 2 - –
Total fees to auditors 18 20 6 6
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 includes 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 financial
accounting and reporting standards, internal control reviews, and reviews
of interim reports.
3) Tax fees include tax compliance and tax consultation services.
NOTE 28 TRANSACTIONS WITH RELATED PARTIES
NOTE 29 UNTAXED RESERVES
AND APPROPRIATIONS,
PARENT COMPANY
SEKm
December 31,
2023
Appropria-
tions
December 31,
2022
Accumulated
depreciation in
excess of plan
Brands 8 – 8
Licenses – – –
Machinery and
equipment 76 –9 85
Buildings – – –
Other 4 – 4
Total 88 –9 97
Group contributions -1
Total
appropriations -10
P. 137Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
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Seven years in summary
Definitions
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NOTE 30 SHARES AND PARTICIPATIONS
Group companies
The following table lists the companies included in the Electrolux Professional Group, split into direct and indirect shareholdings by the Parent Company.
Carrying amount
Parent Company
Subsidiaries, direct shareholdings Corp. ID no. Country
City of registered
office Holding, % Legal form 2023 2022
Electrolux Professional Australia Pty Ltd 634 149 250 Australia Scoresby 100% Limited Liability Company 22 22
Electrolux Professional Austria GmbH FN516160 i Austria Brunn Am Gebirge 100% Limited Liability Company 0 0
Electrolux Professional Belgium B.V. 0729.704.769 Belgium Brussels 100% Limited Liability Company 5 5
Electrolux Profissional do Brasil 3563041087-8 Brazil São Paulo 100% Limited Liability Company 0 0
Electrolux (Shanghai) Professional Appliances Co., Ltd. 91310120332328256Q China Shanghai 100% Limited Liability Company 114 114
Electrolux Professional d.o.o 081259831 Croatia Zagreb 100% Limited Liability Company 0 0
Electrolux Professional Czech Republic s.r.o. 08340226 Czech Republic Prague 100% Limited Liability Company 1 1
Electrolux Professionals A/S 24622428 Denmark Hvidovre 100% Limited Liability Company 7 7
Electrolux Professional Oy 0816444-8 Finland Helsinki 100% Limited Liability Company 0 0
Electrolux Professionnel SAS 996750030 France Saint-Denis 100% Limited Liability Company 294 294
UNIC SAS² 958 806 408 France Carros 100% Limited Liability Company 0 0
Electrolux Professional GmbH HRB20581 Germany Nürnberg 100% Limited Liability Company 252 252
Electrolux Professional Hellas SA AME 322157 Greece Athens 100% Limited Liability Company 0 0
Electrolux Professional Hungary Kft Cg.16-09-018699 Hungary Jászberény 100% Limited Liability Company 0 0
Electrolux Professional India Private Limited U31909HR2019-FTC082077 India Gurgaon 100% Limited Liability Company 2 2
Electrolux Professional S.p.A. 00072220932 Italy Pordenone 99%
1
Limited Liability Company 3,105 3,105
S.P.M Drink Systems S.p.A. 03195610369 Italy Spilamberto 100% Limited Liability Company 179 258
Electrolux Professional Japan Limited 01040103326 Japan Tokyo 100% Limited Liability Company 32 32
Electrolux Professional Korea Co., Ltd. 110111-7179248 Korea Seoul 100% Limited Liability Company 0 0
Electrolux Professional Sdn Bhd 147661P Malaysia Petaling Jaya 100% Limited Liability Company 3 3
Electrolux Professional B.V. 33269220 The Netherlands Rotterdam 100% Limited Liability Company 53 53
Electrolux Professional New Zealand Limited 7497977 New Zealand Wellington 100% Limited Liability Company 3 3
Electrolux Professional AS 923830197 Norway Oslo 100% Limited Liability Company 66 66
Electrolux Professional Poland Sp. z o.o. 0000786645 Poland Warsaw 100% Limited Liability Company 0 0
Limited Liability Company Electrolux Professional Rus³ 1197746476806 Russia Moscow 99%
1
Limited Liability Company 0 0
Electrolux Professional Singapore Pte. Ltd. 201919595D Singapore Singapore 100% Limited Liability Company 0 0
Electrolux Professional s.r.o. 31 358 446 Slovakia Bratislava 99%
1
Limited Liability Company 6 6
Electrolux Professional S.A. ESA28238947 Spain Madrid 100% Limited Liability Company 80 80
P. 138Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
NOTE 30 SHARES AND PARTICIPATIONS, CONT.
Carrying amount
Parent Company
Subsidiaries, direct shareholdings Corp. ID no. Country
City of registered
office Holding, % Legal form 2023 2022
Electrolux Professional Sweden AB 556025-2081 Sweden Stockholm 100% Limited Liability Company 61 61
Electrolux Professional Holding AB 559006-2278 Sweden Stockholm 100% Limited Liability Company 0 0
Electrolux Professional AG CHE-105.957.638 Switzerland Sursee 100% Limited Liability Company 197 197
Crathco Ltd 105541040522 Thailand Rayong 100% Limited Liability Company 275 275
Electrolux Professional (Thailand) Co., Ltd. 0105562090821 Thailand Bangkok 100% Limited Liability Company 65 65
Electrolux Professional Durable Consumer Goods Industry
and Trade Joint Stock Company 223730/5 Turkey Istanbul 100% Limited Liability Company 10 10
Electrolux Professional Middle East DMCC DMCC176056 United Arab Emirates Dubai 100% Limited Liability Company 0 0
Electrolux Professional Ltd. 00637383 United Kingdom Luton 100% Limited Liability Company 495 495
Electrolux Professional US Holdings, Inc. EIN 84-3103055 USA Wilmington, Delaware 100% Limited Liability Company 539 539
Carrying amount, December 31 5,866 5,945
1) Electrolux Professional Sweden AB holds 1%
2) Merged into Electrolux Professionnel SAS during 2022
3) Divested during 2022
Subsidiaries, indirect shareholdings Country City of residence Holding, %
Electrolux Professional Laundry Systems France SNC France Rosères-Près-Troyes 100%
Exefem France Saint-Denis 100%
Schneidereit GmbH Germany Solingen 100%
UNIC Japan KK Japan Tokyo 100%
GCS Mexico SA de CV Mexico Ciudad Juárez 100%
Schneidereit UK Ltd. United Kingdom Luton 0%
1
Electrolux Professional LLC USA Louisville 0%²
Grindmaster Corporation USA Louisville 0%³
Electrolux Professional Inc USA Delaware 100%
1) Liquidated in 2023
2) Merged into Grindmaster in 2023
3) Merged into Unified Brands in 2023 which was renamed to Electrolux Professional Inc in 2023.
P. 139Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
NOTE 31 CLIMATE
In preparing the financial statements the management has consid-
ered the potential impact of climate change. Our target is to reduce
CO
2
emissions of Scope 1 & 2 by at least 50% by 2025 compared to
2015. During 2023, we continued to reduce our Scope 1 and 2 emis-
sions and have already achieved our 2025 targets.
Our climate ambition for 2030 is to become climate neutral
within all our industrial operations by 2030. During 2023 our scope
1, 2, and 3 targets were validated by the Science Based Targets
initiative (SBTi). The new targets reduce Scope 1 and 2 emissions by
70% by 2030 from a 2019 base year and reduce indirect use-phase
emissions of sold products by 27.5% by 2030 from a 2019 base year.
Read more in the Sustainability Report on pages 48–66.
Climate-related risks
Climate-related risks may impact the below areas and the financial
statements, but are not considered to be key areas of judgments or
sources of estimation uncertainty in the current financial year.
The purpose of a scenario analysis is to analyze future events by
considering possible alternative outcomes. It is meant as a tool for
companies to make strategic risk management decisions, providing
insights and clarifying predictable and uncertain elements in differ-
ent futures. It is meant to help frame and evaluate climate change's
strategic and financial consequences. We have carried out a cli-
mate scenario risk and opportunity analysis in accordance with the
TCFD recommendations for 2022.
The two scenarios help to identify transition risks and
physical risks:
A. Transition risks are related to the financial risks of not being
prepared for the socio-economic changes of a world striving to
meet the Paris Agreement ambition of limiting global warming to
well below 2°C.
B. Physical risks are related to the financial risks of not being
prepared for the physical changes of a world where ambitious
climate policies fail or fall short, and the global warming of the
world pushes towards 4°C.
Transition risks identified:
• Increased prices due to carbon prices.
• Increased transport prices due to low carbon emission transport.
• Energy price volatility due to energy decarbonization.
• Increased steel prices due to leftover carbon.
• Energy labeling and circular economy legislation impacting the
increase in prices.
Physical risks identified:
• Asian sites are more prone to climate risks.
• Suppliers located in Asia are more prone to climate risks.
Read more in the Sustainability Report on pages 48–66 and Risk
Management on pages 82–86.
Products
Our main environmental impact occurs during the product-use
phase (energy, water, detergents), we therefore have a clear
strategy to develop and offer energy-efficient and low-resource-
consuming products. Over the years, Electrolux Professional Group
has invested in new product ranges which are energy efficient
and lower in running costs, and also have less of an impact on the
environment in the form of lower water, energy, and detergent con-
sumption. We have a clear strategy for developing low-carbon and
water/energy-efficient solutions given the EU’s potential regulations
on Eco-design and/or energy labeling, and we continue to be the
market leader in sustainability. By offering integrated products and
services, including logistics and transportation, compared to our
competitors we can reduce complexity for our customers, thereby
reducing greenhouse gas emissions. This has been taken into con-
sideration when assesing the need for impairment of existing prod-
ucts and product development.
For the development of new products we invest above historical
levels to reach our sustainability targets and this is considered in our
forecasts underpinning the 2023 financial statements.
Production
The Group's factories are modern and efficient and in the short-
term, energy efficiency is the main focus area. This includes using
less energy and converting to renewable energy sources, reviewing
the replacement of heating systems, ventilation, lighting, insulation,
compressed air, windows, doors etc. and streamlining production
processes. The climate targets for 2025 were already achived during
2023 within normal running costs and investments. To reach our cli-
mate ambition for 2030, we initiated a plant decarbonization study
project in five of our plants worldwide. The project resulted in sever-
al initiatives and required investments to achieve the Scope 1 and 2
reduction targets. The necessary investments are covered as part of
normal investment levels. The initiatives also resulted in operational
cost-saving opportunities.
P. 140Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Notes
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
NOTE 32 EVENTS AFTER THE BALANCE SHEET DATE
Acquisitions in 2024
TOSEI Corporation
On January 10, 2024, Electrolux Professional acquired 100% of the
shares in TOSEI Corporation in a cash deal. The enterprise value
amounted to JPY 23,006m corresponding to SEK 1,620m.
TOSEI, founded in 1950, had sales of approximately SEK 940m
during 2023. After synergies, the EBITA margin is expected to be well
in line with Electrolux Professional’s EBITA target of 15%. The compa-
ny has approximately 340 employees and is based in Tokyo. TOSEI
operates one manufacturing facility in Izunokuni, Shizuoka and has
six regional sales offices in Japan. The company supplies washers,
dryers, combined washers and dryers, tabletop vacuum packing
machines, and stationary vacuum packing machines under the main
brands TOSEI and TOSPACK.
The acquisition of TOSEI will make Electrolux Professional a larg-
er player in Japan, which is the second largest laundry market and
third largest food-service market globally. In addition, Electrolux
Professional will be able to expand the vacuum packing prod-
ucts that are already used globally in the fast-growing segment of
sous-vide cooking.
Goodwill mainly represents the value of increasing Electrolux
Professional's presence in Japan. Goodwill will not be deductible for
income tax.
TOSEI's net sales and operating income from January 1, 2024 to
the completion of the deal is immaterial and will be included fully in
the consolidated financial statements of Electrolux Professional in
quarter one, 2024.
Approximately 70% of the business will be included in the
Laundry segment and 30% in Food & Beverage.
Transaction costs
Transaction costs related to the acquisition amounted to SEK 7m
and have been expensed as incurred during the acquisition process
in 2023.
The costs have been reported in operating income within Group
Common Costs.
Acquired operations
SEKm 2024
TOSEI Corporation
Enterprise value 1,620
Less financial debt –628
Cash paid for the acquisition 992
Recognized amount for assets acquired
and liabilities assumed
Assets less liabilties –291
Goodwill 1,283
Total 992
The purchase price allocation is preliminary and will be subject to
changes. Part of the value of goodwill will be reclassified to assets
with definite useful lives, e.g. customer relationships and trademarks.
NOTE 33 PROPOSED DISTRIBUTION
OF EARNINGS
The Board of Directors proposes that income for the year and
retained earnings be distributed as follows.
‘000 SEK
Dividend to the shareholders 229,918
To be carried forward 6,510,006
Total 6,739,924
P. 141Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 The Board’s assurance
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
The Board of Directors give their assurance that the consolidated financial statements and annual report have been prepared in
accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, on the Application of International
Accounting Standards and Generally Accepted Accounting Standards, and give a true and fair view of the financial position and results of opera-
tions of the Group. The financial statements of the Parent Company have been prepared in accordance with generally accepted accounting princi-
ples in Sweden and give a true and fair view of the Parent Company’s financial position and results of operations. The administration report for the
Group and the Parent Company gives a true and fair view of the business activities, financial position and results of operations of the Group and
the Parent Company, and describes the significant risks and uncertainties to which the Parent Company and the Group companies are exposed.
Stockholm March 27, 2024
Electrolux Professional AB (publ)
556003-0354
Kai Wärn
Chairman of the Board
Katharine Clark
Board member
Lorna Donatone
Board member
Josef Matosevic
Board member
Hans Ola Meyer
Board member
Daniel Nodhäll
Board member
Martine Snels
Board member
Carsten Voigtländer
Board member
Joachim Nord
Employee representative
Jens Pierard
Employee representative
Alberto Zanata
President and CEO
The Auditor's report was issued on March 27, 2024
Deloitte AB
Jonas Ståhlberg
Authorized Public Accountant
P. 142Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Auditor’s report
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Auditor’s report
To the General Meeting of the Shareholders of Electrolux Professional AB (publ), corporate identity number 556003-0354.
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts
of Electrolux Professional AB (publ) for the financial year 2023-01-
01 - 2023-12-31. The annual accounts and consolidated accounts of
the company are included on pages 89-141 in this document.
In our opinion, the annual accounts have been prepared in ac-
cordance with the Annual Accounts Act and present fairly, in all ma-
terial respects, the financial position of the parent company as of 31
December 2023 and its financial performance and cash flow 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
financial position of the group as of 31 December 2023 and their
financial performance and cash flow for the year then ended in ac-
cordance 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 consol-
idated accounts are consistent with the content of the additional
report that has been submitted to the parent company's audit com-
mittee in accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International
Standards on Auditing (ISA) and generally accepted auditing stan-
dards in Sweden. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in accordance
with professional ethics for accountants in Sweden and have other-
wise fulfilled our ethical responsibilities in accordance with these re-
quirements. 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.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in our pro-
fessional judgment, were of most significance 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
Revenues in the Group amounts to SEK 11,848 million and consists of
a large number of transactions that mainly comprises sales of ap-
pliances and spare parts. Revenue recognition cut off constitutes a
key audit matter in our audit.
The Group’s accounting principles and disclosures related to rev-
enue recognition can be found in note 4.
Our audit procedures
Our audit procedures included, but were not limited to:
• evaluation of the Group’s accounting principles for revenue recog-
nition and its compliance with IFRS,
• test of identified key controls, within the revenue process, including
relevant IT controls
• analytical procedures, and
• detailed testing of sales transactions on a sample basis to confirm
proper revenue cut off.
Valuation of inventory
Inventory in the Group amounts to SEK 1,692 million and is held by
several production and sales units in different countries. Valuation
of inventory requires clear policies among other things related to
provisions for obsolescence which is subject to management’s esti-
mates especially given large price variances related to raw material
and components. Processes for valuation of inventory constitutes a
key audit matter in our audit.
The Group’s accounting principles and disclosures related to in-
ventory can be found in note 15.
Our audit procedures
Our audit procedures included, but were not limited to:
• evaluation of the Group’s accounting principles for inventory to
verify compliance with IFRS,
• evaluation of the internal control environment regarding valuation
of inventory and test of design and implementation of identified
key controls including relevant IT controls,
• attending physical inventory counts,
• on sample basis testing for example purchase prices, and
• evaluating management’s estimates related to provisions for ob-
solescence.
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 1-7,
9-47, 80-86, 145-148, 164-168. 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 consol-
idated accounts, our responsibility is to read the information iden-
tified above and consider whether the information is materially in-
consistent with the annual accounts and consolidated accounts. In
this procedure we also take into account our knowledge otherwise
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.
P. 143Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Auditor’s report
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
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 ac-
counts and that they give a fair presentation in accordance with the
Annual Accounts Act and, concerning the consolidated accounts,
in accordance 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 prepa-
ration 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 responsi-
ble 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 intends
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
Director’s responsibilities and tasks in general, among other things
oversee the company’s financial 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 accept-
ed 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 influence the economic decisions
of users taken on the basis of these annual accounts and consoli-
dated accounts.
An additional description of our responsibility for the audit of the
annual accounts and the consolidated accounts is located at the
Swedish Inspectorate of Auditors’ web page: www.revisorsinspek-
tionen.se/revisornsansvar. This description is a 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 Electrolux Professional AB
(publ) for the financial year 2023-01-01 – 2023-12-31 and the pro-
posed appropriations of the company’s profit or loss.
We recommend to the general meeting of shareholders that the
profit to be appropriated in accordance with the proposal in the
statutory administration report and that the members of the Board
of Directors and the Managing Director be discharged from liability
for the financial 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 ac-
cordance with professional ethics for accountants in Sweden and
have otherwise fulfilled 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.
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 profit or loss. At the proposal of a dividend,
this includes an assessment of whether the dividend is justifiable
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, li-
quidity and position in general.
The Board of Directors is responsible for the company’s organi-
zation and the administration of the company’s affairs. This includes
among other things continuous assessment of the company’s and
the group’s financial situation and ensuring that the company's or-
ganization is designed so that the accounting, management of as-
sets and the company’s financial affairs otherwise are controlled in
a reassuring manner. The Managing Director shall manage the on-
going administration according to the Board of Directors’ guidelines
and instructions and among other matters take measures that are
necessary to fulfill 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 profit 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 profit or loss are not in
accordance with the Companies Act.
An additional description of our responsibilities for the au-
dit of management’s administration is located at the Swedish
Inspectorate of Auditors website: www.revisorsinspektionen.se/revi-
sornsansvar. This description forms part of the auditor’s report.
The auditor’s examination of the Esef report
Opinion
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 Electrolux Professional
AB (publ) for the financial year 2023-01-01 - 2023-12-31.
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 Electrolux
Professional AB (publ) in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled our ethical re-
sponsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sufficient 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 respon-
sible for the preparation of the Esef report 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 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 per-
formed.
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.
P. 144Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Auditor’s report
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
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 influence
the economic decisions of users taken on the basis of the Esef re-
port.
The firm applies International Standard on Quality Management
1, which requires the firm 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 prepara-
tion of the Esef report by the Board of Directors and the Managing
Director, but not for the purpose of expressing an opinion on the
effectiveness of those internal controls. The examination also in-
cludes an evaluation 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 financial performance, fi-
nancial position, changes in equity, cash flow and disclosures in the
Esef report have been marked with iXBRL in accordance with what
follows from the Esef regulation.
The auditor’s examination of the corporate governance statement
The Board of Directors is responsible for that the corporate gover-
nance report on pages 69-79 has been prepared in accordance
with the Annual Accounts Act.
Our examination of the corporate governance report is conduct-
ed in accordance with FAR’s standard RevR 16 The auditor’s exam-
ination of the corporate governance statement. This means that our
examination of the corporate governance report is different 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 sufficient basis for our opinions.
A corporate governance report has been prepared. Disclosures
in accordance with chapter 6 section 6 the second paragraph
points 2-6 of the Annual Accounts Act and chapter 7 section 31 the
second paragraph the same law are consistent with the other parts
of the annual accounts and consolidated accounts and are in ac-
cordance with the Annual Accounts Act.
Deloitte AB, was appointed auditor of Electrolux Professional AB
by the general meeting of the shareholders on the 2023-04-26 and
has been the company’s auditor since 2018-06-01.
27 March, 2024
Deloitte AB
Jonas Ståhlberg
Authorized public accountant
This is a translation of the Swedish language original. In the event of any
differences between this translation and the Swedish language original, the
latter shall prevail.
P. 145Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Seven years in summary
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Seven years in summary
SEKm 2023 2022 2021 2020 2019 2018 2017
Food & Beverage
Net sales 7,616 7,290 4,704 4,198 5,895 5,399 4,922
EBITA* 766 679 299 87 568 629 607
EBITA, %* 10.1 9.3 6.4 2.1 9.6 11.7 12.3
Operating income* 620 542 244 35 522 599 572
Operating margin, %* 8.1 7.4 5.2 0.8 8.9 11.1 11.6
Laundry
Net sales 4,231 3,747 3,159 3,065 3,386 3,267 2,801
EBITA* 702 608 492 467 507 573 502
EBITA, %* 16.6 16.2 15.6 15.2 15.0 17.6 17.9
Operating income* 686 590 475 452 488 558 499
Operating margin, %* 16.2 15.7 15.0 14.7 14.4 17.1 17.8
Group shared cost
Operating income* –152 –177 –128 –100 –18 –14 –11
Total Group
Net sales 11,848 11,037 7,862 7,263 9,281 8,666 7,723
EBITA* 1,317 1,111 663 456 1,058 1,188 1,098
EBITA, %* 11.1 10.1 8.4 6.3 11.4 13.7 14.2
Operating income* 1,154 955 592 387 992 1,143 1,060
Operating margin, %* 9.7 8.7 7.5 5.3 10.7 13.2 13.7
*) Alternative performance measure.
P. 146Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Seven years in summary
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
SEKm, if not otherwise stated 2023 2022 2021 2020 2019 2018 2017
Net sales 11,848 11,037 7,862 7,263 9,281 8,666 7,723
Organic growth, %* 2.6 16.9 10.6 –21.0 –0.3 4.1 5.6
EBITA* 1,317 1,111 663 456 1,058 1,188 1,098
EBITA, %* 11.1 10.1 8.4 6.3 11.4 13.7 14.2
Operating income* 1,154 955 592 387 992 1,143 1,060
Operating margin, %* 9.7 8.7 7.5 5.3 10.7 13.2 13.7
Income after financial items 1,033 895 587 363 978 1,134 1,052
Income for the period 775 686 487 278 663 952 786
Items affecting comparability* – –35 – –77 –32 – –
Capital expenditure* –191 –139 –159 –273 –257 –169 –167
Operating cash flow after investments* 1,453 636 1,116 570 1,138 1,131 1,167
Operating working capital, % of net sales* 18.1 16.7 14.9 19.9 17.7 16.3 13.8
Earnings per share, SEK¹ 2.70 2.39 1.69 0.97 2.31 3.31 2.74
Dividend per share, SEK
1,
² 0.80 0.70 0.50 – – – –
Equity per share, SEK, ¹
,
³ 16.37 14.86 12.27 9.74 9.43 31.91 8.43
Net debt* 1,390 2,050 1,705 549 1,025 –226 –481
EBITDA*
, 4
1,581 1,369 886 684 1,280 1,363 1,253
Net debt/EBITDA ratio* 0.9 1.5 1.9 0.8 0.8 –0.2 –0.4
Average number of shares, million¹ 287.4 287 287 287,4 287,4 287,4 287,4
Number of employees, end of period 3,978 4,022 3,973 3,515 3,624 3,555 3,183
*) Alternative performance measure.
1) Basic number of outstanding shares.
2) 2023, proposed by the Board.
3) Year 2020 has been restated.
4) Rolling four quarters.
P. 147Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Definitions
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
Definitions and reconciliation of alternative performance measures
Electrolux Professional Group presents certain measures that
are not defined under IFRS (alternative performance measures –
“APMs”). These are used by management to assess the financial
and operational performance of the Group. Management believes
that these APMs provide useful information regarding the Group’s
APM Definition Reason for use
Organic growth % Change in sales growth excluding net FX impact and acquisitions. The Group’s presentation currency is SEK while net sales are mainly in other
currencies. Organic growth is dependent on fluctuations in SEK versus other
currencies, and acquired or divested businesses can have a further impact
on reported net sales. Organic growth adjusted for acquisitions, divest-
ments and currency shows the underlying sales development without these
parameters.
Acquisitions % Change in net sales during the current period attributable to ac-
quired operations in relation to prior year sales, following a period
of 12 months commencing on the acquisition date.
See "Organic growth" above.
Divestments % Change in net sales during the current period attributable to
divested operations in relation to the prior period’s sales, following
a period of 12 months commencing on the divestment date.
See "Organic growth" above.
Operating income (EBIT) Earnings before interest and tax. Used as an indicator that shows the Group's ability to make a profit,
regardless of the method of financing (determines the optimal use of debt
versus equity).
Operating margin (EBIT margin) Operating income expressed as a percentage of net sales. Operating margin shows the operating income as a percentage of net
sales. Operating margin is a key internal measure as the Group believes it
provides users of the financial statements with a better understanding of
the Group’s financial performance both short and long term.
Items affecting comparability Material profit or loss items such as capital gains and losses from
divestments of product groups or major units, close-downs or
significant down-sizing of major units or activities, significant im-
pairment, and other major costs or income items.
Summarizes events and transactions with significant effects, which are rele-
vant for understanding the financial performance when comparing income
for the current period with previous periods.
Operating margin excluding items affecting
comparability
Operating income less items affecting comparability as a percent-
age of net sales.
Operating margin excluding items affecting comparability shows the oper-
ating income as a percentage of net sales adjusted for the items affecting
comparability defined above. This is a key internal measure as the Group
believes that it provides users of the financial statements with a better un-
derstanding of the Group’s financial performance both short and long term.
Capital expenditure Investments in property, plant and equipment, product develop-
ment, and other intangible assets.
Used to ensure that cash spending is in line with the Group's overall
strategy for the use of cash.
financial 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 considered in isolation or as a substitute for related financial
measures prepared in accordance with IFRS. The APMs have been
derived from the Group’s internal reporting and are not audited.
The APM reconciliations can be found on the Group's website
www.electroluxprofessional.com/corporate/interim-reports/
P. 148Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Definitions
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Seven years in summary
Definitions
OTHER INFORMATION
APM Definition Reason for use
EBITA Operating income less amortization and write-down related to
intangible assets (excluding right-of-use assets).
EBITA gives an indication of the operating income less amortization and
write-down related to intangible assets (excluding right-of-use assets),
mainly used to follow up operating income without the impact of amortiza-
tion of surplus values related to acquisitions.
EBITA margin EBITA expressed as a percentage of net sales. Used to evaluate business performance in relation to net sales in order to
measure the efficiency of the Group.
EBITA excluding items affecting comparability Operating income less amortization and write-down related to
intangible assets (excluding right-of-use assets) and less items
affecting comparability.
Items affecting comparability vary between years and periods and are
excluded from EBITA in order to analyze trends.
EBITA margin excluding items
affecting comparability
EBITA excluding items affecting comparability, expressed as a
percentage of net sales.
Items affecting comparability vary between years and periods and are
excluded from EBITA margin in order to analyze trends.
EBITDA EBITA less depreciation. This is an indicator of the cash-generating capacity of the business in
relation to sales.
Operating cash flow after investments Cash flow from operations and investments adjusted for financial
items paid net, taxes paid, and acquisitions/divestments of opera-
tions.
To monetarize the cash from core operations.
Net debt Shows short-term borrowings (short-term loans and trade re-
ceivables with recourse), accrued interest expenses and prepaid
interest income and long-term borrowings, lease liabilities, net
provisions for post-employment benefits less liquid funds (cash and
cash equivalents, prepaid interest expenses, and accrued interest
income).
Net debt describes the Group's total debt financing and is monitored by
management.
Net debt/EBITDA Net debt in relation to EBITDA (Net debt is based on the end-of-
period balance. EBITDA is calculated based on last four rolling
quarters).
A measurement of financial risk, showing net debt in relation to cash
generation.
Operating working capital, % of net sales Sum of currency-adjusted last twelve months’ average of inven-
tories, trade receivables, and trade payables (Operating working
capital) as a percentage of the currency-adjusted last twelve
months’ average net sales.
All months of the period are currency adjusted by applying the
end-of-period average currency rate.
Used to evaluate how efficient the Group is in generating cash in relation
to net sales.
P. 149Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainability notes
Other
information
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
About this report 150
The EU Taxonomy regulation 151
Environmental data 155
People data 157
GRI index 160
Auditor’s Report on Sustainability Report 162
P. 150Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainability notes
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Reporting framework
This report has been prepared in accordance with the Swedish
Annual Accounts Act related to statutory sustainability reporting. The
main audiences for the report are shareholders and other stake-
holders. Electrolux Professional’s main stakeholders are identified
by assessing the magnitude of the impacts from, or on, our business
and operations. The Sustainability Report has been prepared in ac-
cordance with the Global Reporting Initiative (GRI) 2021. See page
160–161 for the GRI Index. Electrolux Professional has performed a
materiality analysis to determine the most relevant sustainability
topics within our value chain. We have also established sustainability
targets to emphasize our ambitions in a number of significant areas.
As a signatory of the UN Global Compact, Electrolux Professional
uses this report to highlight progress regarding the 10 principles.
External assurance
Our auditors, Deloitte, have performed a limited assurance of this
Sustainability Report. See page 162 for the limited assurance report.
Scope of the report
The Sustainability Report is published annually. This report covers
data that has been collected for the 2023 calendar year.
Unified Brands, acquired by Electrolux Professional Group in
December 2021, has been included in the sustainability reporting
since 2022, excluding ISO-certification, as described on page 41
and page 59 in the Annual report.
The environmental data in this report covers 12 (11) manufactur-
ing sites and all R&D, logistic centers, and offices where we have
manufacturing sites. It also includes the former manufacturing site in
Louisville now turned into a logistics center.
The people data disclosed relating to GRI topics 2-7, 2-8, 2-24,
and 2-30, covers the full scope of the company. As people data is
collected from different systems, minor variations in the total number
of employees might exist at any specific point in time.
Performance indicators normally cover the last five years.
Variations might occur, depending on relevance and/or data avail-
ability. Historical baselines for performance indicators are not fully
comparable as acquired operations are integrated within the report.
Re-statements
An error was discovered in our water consumption data reporting.
In the past, we mistakenly reported water withdrawal as water con-
sumption. However, water withdrawal only represents the amount
of water taken out of its source, and it does not indicate how much
water is actually available for use by the ecosystem or local com-
munity. This year, we have corrected this mistake and calculated our
water consumption using the GRI 303-5 standard.
Assumptions and calculations
Emission factors are based on the “Emission factors 2022 edition”
provided by the International Energy Agency (IEA). Values used in
the report are offset by a three-year period (i.e. 2023 uses figures
for 2020). The company uses zero as the emission factor for use of
renewable energy.
To calculate emissions in Scope 3, category 11, "Use of Sold
Products," we utilize the average useful life of products sold from the
EUP LOT studies to ensure fair comparisons. We group the products
based on their loading capacity and type of energy source using
the EUP LOT studies. The volume is based on the products in mar-
kets served. The emission factor for electricity is calculated using the
weighted average of the IEA emission factor in the market served. For
natural gas, we use the DEFRA CO2e value. Since steam is not truly
the energy input, we use the electricity emission factor for steam.
The emissions that occur during the use of a product are reported in
the year the product was sold, and not over its estimated useful life.
However, the reported Scope 3 sold product-use emissions may not
be entirely accurate due to the uncertainties involved in obtaining
precise primary data. The level of uncertainty could vary by up to
10%, although we are dedicated to minimizing these uncertainties as
much as possible.
Electrolux Professional applies the Precautionary principle for
its sustainability reporting and management, this means we are
cautious wherever estimates are applied. Wherever estimations are
made, this is indicated as foot notes.
Omissions from GRI Standards
GRI 2-21 Annual total compensation ratio: Information on the ratio
per 2-21-a and 2-21-b is not disclosed, since collecting information
from the various systems for calculation is an extensive process.
GRI 201-1 Direct economic value generated and distributed: Direct
economic value distributed is based on operating costs instead of
actual value distributed (payments).
GRI 205-2 Communication and training on anti-corruption policies:
Information on training by region is not disclosed.
GRI 303-3 Water withdrawal: Sea water and Produced water are
not reported.
GRI 303-4 Water discharge: Storm water that is not collected or
used is not considered as water discharge if it goes into our storm
drains. Ground water and sea water are not reported.
GRI 306 Waste: Only reporting on topic disclosure.
GRI 306-3 Waste generated: Topic management disclosures
excluded.
GRI 403-9 Work-related injuries: Includes lost time due to injuries.
Employees and temporary hires are included. Employees working at
manufacturing sites are included based on local selection. On some
Sustainability management and governance
The Board of Directors decides on the strategy, direction, and
overall targets of the Group’s sustainability work. The Group
Management Team further defines and implements proce-
dures. Each local management and business function has a
delegated responsibility for the implementation of Group pol-
icies and risk mitigation and performance.
The Group Sustainability function supports the business by
identifying the prioritized and strategic sustainability issues
and helps integrate them into the business. The function also
monitors the overall performance through dialog, perfor-
mance data, and audit results. Performance is reported to the
Group Management Team.
Sustainability Board
A Sustainability Board was established in 2022 to share
sustainability information, collect feedback, oversee the
implementation of the Group’s sustainability strategy across
the whole organization, and strengthen the governance of
the sustainability work. The Sustainability Board is chaired
by the Group Sustainability Vice President who reports
the performance of the Sustainability Board to the Group
Management and the Board of Directors. In 2023, the focus
of the Sustainability Board has been on;
> Implementation of the Sustainability network
> Allocating resources for conflict mineral compliance
> Final selection of Sustainability reporting platform
> CSRD gap analysis and preparations
Code of Conduct governance
Information about the business ethics and conduct expected
of managers and employees is published on the Group’s
intranet. A Code of Conduct Steering Group has been estab-
lished and meets regularly to follow up on the effectiveness of
the program, in particular our whistleblowing procedures.
About this report
sites a small number of the white-collar employees is not included,
depending on local reporting practices.
GRI 405-1 Diversity of governance bodies and employees: The
average number of employees is used for gender distribution. Year-
end data collected from local/regional HR systems is used for age
distribution data.
P. 151Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainability notes
Other
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
The Taxonomy supports a transition to an economy that is consis-
tent with the environmental objectives of the European Union (EU).
The EU Taxonomy includes definitions of economic activities that
are considered eligible, as well as technical screening criteria for
the six environmental objectives. These activities must also avoid
causing significant harm to any of the other objectives and adhere
to minimum social safeguards e.g., related to protection of human
rights, and social and labor standards.
In the year 2023, Electrolux Professional assessed its econom-
ic activities to determine significant contributions to at least one
of the EU's environmental goals, as outlined in the Environmental
Delegated Act (Commission Delegated Regulation (EU) 2023/2486)
and NACE code information. Electrolux Professional manufactures
professional equipment and offers services in food service, bev-
erage, and laundry, with a strong emphasis on energy efficiency,
durability, and repairability, ensuring that our products contribute to
the transition to a circular economy.
Assessment of compliance
with the regulation
Assessment of eligibility
Electrolux Professional has identified taxonomy-eligible activities
by screening the economic activities in the Commission Delegated
Regulation (EU) 2023/2486). Regulation (EU) 2020/852, Article 9,
Annex II sets out criteria for which an economic activity qualifies as
contributing substantially to the transition to a circular economy and
for determining whether that economic activity causes no significant
harm to any of the other environmental objectives. Four activities
have been qualified as contributing substantially to the transition to
a circular economy for Electrolux Professional:
Manufacture of electrical and electronic equipment
Electrolux Professional's core business relates to the manufacturing
of electrical and electronic equipment for professional food service,
beverages, and laundry.
Product as a service and other circular use
and result-oriented service models
Electrolux Professional offers rental services for some of the prod-
ucts. For the product we develop, we are responsible for production,
leasing, maintenance, and environmentally responsible disposal.
Repair, refurbishment, and remanufacturing
Electrolux Professional offers refurbished products to our customers
in exchange for their old products. We take their old products, re-
place key components, and update the latest improvements.
We provide customer care including repair and replacement of
wear and tear parts through our Essentia program.
Sale of spare parts:
Electrolux Professional sells spare parts for the appliances it has
sold in the market.
Assessment of alignment
(significant contribution / Do No Significant Harm (DNHS))
DNHS assessment is yet to be conducted. For circular economy ac-
tivities, an in-depth assessment (on climate change adaptation and
mitigation, pollution, biodiversity, and water) will be conducted at
each site for the next year. For climate change mitigation activities,
we still lack the information required to conclude this year.
Assessment of Minimum Safeguard
Minimum safeguards are yet to be assessed in detail. In 2024, we
will perform a gap analysis to determine compliance with four core
topics: Human rights, Bribery/corruption, Taxation, and Fair compe-
tition.
Accounting policies
According to Article 8 of the EU Taxonomy Regulation (the taxon-
omy), turnover, capital expenditure, and operational expenditure
are defined as described below. For capital expenditure opera-
tional expenditure, these definitions are different compared with
Electrolux Professional Group’s financial reporting. The Company’s
financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB,) and as endorsed by the EU.
The basis of the preparation of the financial statements is explained
in note 1 to the consolidated financial statements.
Turnover
Turnover is defined as net sales as disclosed in the Consolidated
statement of total comprehensive income. See page 94.
Capital expenditure
Capital expenditures are additions to tangible, intangible, and
right-of-use assets during the year including additions from business
combinations. Acquired goodwill is not included. See Notes 8, 12,
and 13. Capital expenditure for eligible activities in 2023, includes
certain capitalized assets as found on the balance sheet related to
the activities assessed as eligible.
Operational expenditure
Operational expenditure includes direct non-capitalized costs relat-
ed to R&D costs, costs for renovating buildings and offices, short-
term lease costs, and costs for maintaining or repairing buildings/
offices/production equipment/forklifts/warehouse equipment.
Eligible turnover, capital expenditure,
and operational expenditure
Turnover, capital expenditure, and operational expenditure in ac-
cordance with the above definition and which is associated with
eligible activities constitutes the basis for calculating the share of
eligible turnover, capital expenditure, and operational expenditure.
amounts recorded on product codes and/or legal entities related to
eligible activities have been used as the basis to calculate amounts
of eligible turnover, capital expenditure, and operational expendi-
ture. A reconciliation of amounts has been performed to avoid any
double counting.
Reporting in accordance with the EU Taxonomy regulation
Nuclear and fossil gas related activities
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 construction 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 production, as well as their safety upgrades, using best available
technologies.
No
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.
No
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or opera-
tion of electricity generation facilities that produce energy using fossil gaseous
fuels.
No
The undertaking carries out, funds or has exposures to construction, refurbish-
ment, and operation of combined heat/cool and power generation facilities
using fossil gaseous fuels.
No
The undertaking carries out, funds or has exposures to construction, refurbish-
ment, and operation of heat generation facilities that produce heat/cool fusing
fossil gaseous fuels.
No
P. 152Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Sustainability notes
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PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Proportion of turnover from products or services associated with taxonomy-aligned economic activities
- disclosure covering 2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria (Do No Significant Harm)
Economic activities Code(s) Turnover
Propor-
tion of
Turnover,
year N
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Minimum
safe-
guards
Proportion
of Taxonomy
aligned (A.1.)
or eligible
(A.2.) turn-
over, 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 Y/N YN/ Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
Turnover of environmentally
sustainable activities
(Taxonomy-aligned (A.1) 0 0% 0% 0% 0% 0% 0% 0% – – – – – – – 0%
Of which enabling 0 0% 0% 0% 0% 0% 0% 0% – – – – – – – 0% E
Of which transitional 0 0% 0% – – – – – – – 0% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and
electronic equipment CE 1.2 8,390 72% N/EL N/EL N/EL N/EL EL N/EL –
Product-as-a-service and other
circular use and result-oriented
service models CE 5.5 266 2% N/EL N/EL N/EL N/EL EL N/EL –
Sale of spare parts CE 5.2 1,839 16% N/EL N/EL N/EL N/EL EL N/EL –
Turnover of taxonomy-eligible but not
environmentally sustainable activities (not
taxonomy-aligned activities) (A.2) 10,495 90% 0% 0% 0% 0% 90% 0% 0%
Total (A.1 + A.2) 10,495 90% 0% 0% 0% 0% 90% 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy-non-eligible
activities (B) 1,353 11%
Total (A + B) 11,848 100%
Proportion of turnover/Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 0%
CCA 0% 0%
WTR 0% 0%
CE 0% 90%
PPC 0% 0%
BIO 0% 0%
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Proportion of CapEx from products or services associated with taxonomy-aligned economic activities - disclosure covering 2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria (Do No Significant Harm)
Economic activities Code(s) CapEx
Proportion
of CapEx,
year N
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Minimum
safe-
guards
Proportion
of Taxonomy
aligned (A.1.)
or eligible
(A.2.) CapEx,
2022
Category
(enabling
activity)
Category
(transitional
activity)
MSEK 0% Y; N; N/EL Y; N; N/EL Y; N; N/E Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N YN/ Y/N Y/N Y/N Y/N 0% E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
CapEx of environmental
sustainable activities
(Taxonomy-aligned) (A.1) 0 0% 0% 0% 0% 0% 0% 0% – – – – – – – 0%
Of which enabling 0 0% 0% 0% 0% 0% 0% 0% – – – – – – – 0% E
Of which transitional 0 0% 0% – – – – – – – 0% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and
electronic equipment CE 1.2 121 51% N/EL N/EL N/EL N/EL EL N/EL –
Product-as-a-service and other
circular use and result-oriented
service models CE 5.5 5 2% N/EL N/EL N/EL N/EL EL N/EL –
Sale of spare parts CE 5.2 0 0% N/EL N/EL N/EL N/EL EL N/EL –
Installation, maintenance and repair
of energy efficiency equipment CCM 7.3 0 0% N/EL N/EL N/EL N/EL EL N/EL 12
Installation, maintenance and repair
of instruments and devices for mea-
suring, regulation and controlling
energy performance of buildings CCM 7.5 0 0% N/EL N/EL N/EL N/EL EL N/EL 1
Acquisition and ownership of
buildings CCM 7.7 44 18% EL N/EL N/EL N/EL N/EL N/EL 6
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 170 71% 18% 0% 0% 0% 53% 0% 10%
A. CapEx of Taxonomy eligible activities
(A.1+A.2) 170 71% 18% 0% 0% 0% 53% 0% 10%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 69 29%
Total 239 100%
Proportion of CapEx/Total CapEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 18%
CCA
0% 0%
WTR
0% 0%
CE
0% 53%
PPC
0% 0%
BIO 0% 0%
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Proportion of OpEx from products or services associated with taxonomy-aligned economic activities - disclosure covering
2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria (Do No Significant Harm)
Economic activities Code(s) OpEx
Proportion
of OpEx,
year N
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Climate
change
mitigation
Climate
change
adaption Water Pollution
Circular
economy Biodiversity
Minimum
safe-
guards
Proportion
of Taxonomy
aligned (A.1.)
or eligible
(A.2.) OpEx,
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 Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
OpEx of environmental
sustainable activities
(Taxonomy-aligned (A.1) 0 0% 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0%
Of which enabling 0 0% 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E
Of which transitional 0 0% 0% Y Y Y Y Y Y Y 0% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and
electronic equipment CE 1.2 543 98% N/EL N/EL N/EL N/EL EL N/EL 0%
Product-as-a-service and other
circular use and result-oriented
service models CE 5.5 1 0% N/EL N/EL N/EL N/EL EL N/EL 0%
Sale of spare parts CE 5.2 0 0% N/EL N/EL N/EL N/EL EL N/EL 0%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2) 544 98% 0% 0% 0% 0% 98% 0% 0%
A. OpEx of Taxonomy eligible activities
(A.1+A.2) 544 98% 0% 0% 0% 0% 98% 0% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 10 2%
Total 554 100%
Proportion of OpEx/Total OpEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 0%
CCA 0% 0%
WTR 0% 0%
CE 0% 98%
PPC 0% 0%
BIO 0% 0%
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Environmental data
Energy consumption within the organization
1)
GRI 302-1
Energy use by type (MWh) Renewable energy use (MWh)
Year
Natural
gas LPG
District
heating Electricity Total
Renewable
energy
Non-renew-
able energy Total
2019 10,147 0 3,938 19,133 33,218 15,197 18,021 33,218
2020 8,777 0 3,550 16,484 28,811 13,777 15,033 28,811
2021 9,519 905 4,426 17,675 32,525 14,560 17,964 32,525
2022
Electrolux Professional
excl. Unified Brands 9,430 987 3,936 17,156 31,509 15,592 15,917 31,509
Unified Brands 2,772 254 0 7,230 10,256 0 10,256 10,256
Total 12,202 1,241 3,936 24,386 41,765 15,592 26,173 41,765
2023
9,657 1,059 4,123 22,829 37,668 16,967 20,702 37,668
1) Electrolux Professional has not previously reported on-site generated electricity when the company was part of the Electrolux Group. On-site generated Elec-
tricity is included in the above figures.
Note: The baseline is not fully comparable as five acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as two acquired plants were added in 2022 (Unified Brands, US).
Note: Data for 2021 has been corrected due to an error in previously reported data.
Own disclosure - Product water consumption
2020 2021 2022* 2023
Product water consumption
efficiency compared to 2019
1.5% 2.3% 4.3% 4.5%
Only includes dishwashing and laundry. Target to improve efficiency by 8% by year-end 2025 (base year 2019).
Calculation is based on annual sales figures, consumption data, and the expected number of cycles during the prod-
uct life time.
*Data for 2022 has been corrected due to an error in sales volume.
Water
GRI 303-3
Total water withdrawal from all areas in megaliters
1, 2, 3
Year
Municipal water supply
– Purchased Ground water Surface water Total
2019 94 94
2020 83 1 84
2021 67 1 1 69
2022
Electrolux Professional
excl. Unified Brands
60 1 1
62
Unified Brands 1 0 0 1
Total 61 1 1 63
2023 61 1 0 62
1) 1 megaliter equals 1,000 m³.
2) Internal risk area defined using WWF’s water risk filter.
3) EPR operations have no water withdrawal from areas with water risks.
Note: The baseline is not fully comparable as five acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as two acquired plants were added in 2022 (Unified Brands, US).
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Water
GRI 303-4
Total water discharge to all areas in megaliters
1, 2
Third-party destinations Fresh surface water
Year Untreated Pre-treated Untreated Pre-treated Total
2019 50 25 0 0 74
2020 42 33 0 0 75
2021 36 26 0 0 62
2022
Electrolux Professional
excl. Unified Brands
5 51 0 0 56
Unified Brands 1 0 0 0 1
Total 6 51 0 0 57
2023 26 30 56
1) Figures are based on engineering estimates and data provided from the sites.
2) Electrolux Professional operations have no water discharge in water stressed areas.
Note: Storm water that is not collected or used is not considered as water discharge if it goes into our storm drains.
Note: The baseline is not fully comparable as five acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as two acquired plants were added in 2022 (Unified Brands, US).
Waste
1, 2
GRI 306-3 and 306-4
2023
Metric
kiloton
% of non-
hazardous waste
Recovery
(%)
Disposal
(%)
Landfill 0.5 8.5% 8.5%
Incineration (without energy recovery) 0.03 0.5% 0.5%
Waste-to-energy 0.2 4% 4%
Recycling 4.9 86% 86%
Other recovery 0.1 1% 1%
Total non-hazardous waste 5.7 100% 87% 13%
Waste
1, 2
GRI 306-3 and 306-4
2023
Metric
kiloton
% of non-
hazardous waste
Recovery
(%)
Hazardous waste
Disposal without energy recovery 0.1 23%
Recycling 0.2 68% 68%
Other/Unspecified 0.0 9%
Total hazardous waste 0.3 100% 14%
2023 (metric kiloton)
Non-hazard-
ous waste
Hazardous
waste Total % of total
Total
Disposal without energy recovery 0.5 0.1 0.6 10%
Waste-to-energy 0.2 0.2 0.4 7%
Recovery 5.0 5.0 83%
Other/unspecified 0.0 0.0 0%
Total 5.7 0.3 6.0 100%
Percentage of total 95% 5% 100%
1) All waste is directed to and diverted from disposal off-site.
2) Only disclosing data for 2023.
Emissions
GRI 305-1 and 305-2
GRI 305-1 GRI 305-2 Own disclosure
Year
Direct CO2e
emissions
1), 2)
(metric kton)
Indirect CO2e
emissions (metric
kton)
Total CO2e
(metric kton)
Use of HFC/HFO
gases (ton)
2019 2.0 1.9 3.8 18.6
2020 1.7 1.4 3.1 16.1
2021 2.0 1.7 3.7 17.5
2022
Electrolux Professional
excl. Unified Brands
2.0 0.9 2.9 15.3
Unified Brands 0.6 2.7 3.3 2.45
Total 2.6 3.6 6.2 17.8
2023
2.0 2.2 4.2 17.7
1) Includes contributions from energy use and Green House Gas emissions.
2) Natural gas emission factors defined as combustion of gas with zero CO₂ content.
3) Emissions from use of renewable energy calculated as zero.
Note: The baseline is not fully comparable as five acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as two acquired plants were added in 2022 (Unified Brands, US).
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People data
General
Gender balance, employees
Gender balance, employees
in managerial positions Production/non-production
Covered by collective
bargaining agreements
1
Total number of employees
Male Female Male Female Production Non-production Coverage
68% 32% 73% 27% 41% 59% 44%
2,714 1,264 403 152 1,616 2,362 1,750
1) For employees who are not covered by collective bargaining, contractual conditions are defined in agreement with local legislation requirements.
GRI 2-7 and GRI 2-8
Breakdown by gender Female Male
Other
(Gender as specified by
the employees themselves)
Not disclosed Total
Number of employees¹ 1,264 2,714 0 0 3,978
Number of permanent employees 1,234 2,669 0 0 3,903
Number of temporary employees 30 45 0 0 75
Number of non-guaranteed-hours, employees Unavailable Unavailable Unavailable Unavailable Unavailable
Number of full-time employees 1,225 2,705 0 0 3,930
Number of part-time employees 39 9 0 0 48
Breakdown by region
Europe US APAC MEA Total
Number of employees¹ 2,722 656 567 33 3,978
Number of permanent employees 2,653 655 562 33 3,903
Number of temporary employees 69 1 5 0 75
Number of non-guaranteed-hours, employees Unavailable Unavailable Unavailable Unavailable Unavailable
Number of full-time employees 2,674 656 567 33 3,930
Number of part-time employees 48 0 0 0 48
Workers who are not employees
2
Total number of workers who are not employees and whose work is controlled by the organization 784
1) Total number of employees according to GRI 2-7.
2) This number includes contractors, agency workers, and interns.
Note: All people-data figures are reported in headcount. These data refer to the end of the reporting period (December 31, 2023).
We do not hold information regarding non-guaranteed-hours employees.
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New employee hires and employee turnover
GRI 401-1
By gender By age group By region
Female Male
Other
(Gender as specified by the
employees themselves)
Not
disclosed
Under
30 years
30-50
years
Over
50 years Europe US APAC EMEA Total
Total number of new employee hires
during the reporting period
159 284 0 0 132 221 90 255 112 69 7 443
Rate of new employee hires during
the reporting period
13% 10% 0% 0% 36% 11% 6% 9% 16% 12% 22% 11%
Total number of employee turnover during
the reporting period
135 334 0 0 130 196 143 212 172 79 6 469
Rate of employee turnover during
the reporting period
11% 12% 0% 0% 35% 10% 9% 8% 25% 14% 18% 12%
Training and development
GRI 2-24, 404-1, 404-3, 412-2
By gender By employee category
Female Male
Other
(Gender as specified by the
employees themselves)
Not
disclosed Total Non-production Production Total
Average hours of training 14 19.5 0 0 17.7 22.7 10 17.7
Number of training hours
1)
17,335 52,882 0 0 70,217 53,558 16,659 70,217
Number of training hours, Code of Conduct only
3)
866 1,564.5 0 0 2,430 1,700 731 2,430
Number of employees who received a performance review
in 2023
2)
897 2,169 0 0 3,066 2,308 758 3,066
Percentage of employees who received a performance
review in 2023
71% 80% 77% 98% 47% 77%
Number of employees participating in
Code of Conduct training in 2023
3)
1,154 2,086 0 0 3,240 2,266 974 3,240
Percentage of employees participating in
Code of Conduct training in 2023
3)
91% 77% 82% 96% 60% 82%
1) Number of hours is to some extent based on engineering estimates.
2) Including production and non-production employees. Ratio of performance and career development reviews is significantly higher for non-production employees.
3) Training includes anti-corruption and human rights topics.
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Occupational health and safety
GRI 403-9 Work-related injuries
2023 2022 2021 2020 2019
Number of work-related fatalities 0 0 0 0 0
Number of high-consequence injures, >6 months 0 1 0 0 1
Total number of work-related lost time injuries 15 18 14 19 25
Working hours (in thousands of hours) 5,576 5,588 4,062 3,453 3,569
Rate of fatalities as a result of work-related injury 0 0 0 0 0
Rate of high-consequence work-related injuries
(excluding fatalities)
0 1 0 0 0.1
Lost Time Injury rate
1)
0.54 0.64 0.69 1.10 1.40
1) Own definition (Lost time injuries per 200,000 worked hours)
Note: The number of accidents resulting in lost work time decreased in 2023 and the lost time injury rate improved to 0.5 (0.6). No high-con-
sequence injury occurred in 2023. The most common injures are lacerations and contusions (7 of 15). The most commonly injured body parts
were the hand and fingers (7/15). More severe risks are related to forklift vehicles and machines. Most lost time injuries in 2023 occurred in our
assembly stations and warehouses. Reactive, preventive, and proactive measures are managed within our health and safety pillar (page 47).
Diversity and equal opportunities
405-1 Diversity of governance bodies and employees
1)
Gender distribution Age distribution
2023 Female Male <30 30–50 >50
Board of Directors
1)
38% 63% 25% 75%
Group Management 25% 75% 25% 75%
Employees
2)
32% 68% 8% 50% 42%
Managerial positions 27% 73% 1% 55% 44%
1) Does not include employee representatives.
2) Age distribution data is based on year-end data collected from central or local/regional HR systems.
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GRI index
The Global Reporting Initiative (GRI) index provides guidance on where information within this report is disclosed.
General information (2021)
Page/Information
2-1 Organizational details 89
2-2
Entities included in the organization’s sustainability
reporting 137-138
2-3 Reporting period, frequency, and contact point 150
2-4 Restatements of information
150
Contact point: Swapnil S
Choudhari, VP Group Sustainability
& Quality (swapnil.s.choudhari@
electroluxprofessional.com)
2-5 External assurance 162
2-6 Activities, value chain, and other business relationships 7
2-7 Employees 44–47, 157–159
2-8 Workers who are not employees 45 ,157
2-9 Governance structure and composition 67–74, 76-79, 159
2-10
Nomination and selection of
the highest governance body 69–70
2-11 Chair of the highest governance body 76
2-12
Role of the highest governance body in overseeing the
management of impacts 68–74
2-13 Delegation of responsibility for managing impacts 68–74
2-14
Role of the highest governance body in sustainability
reporting 150
2-15 Conflicts of interest 74
Page/Information
2-16 Communication of critical concerns 46
2-17 Collective knowledge of the highest governance body 150
2-18
Evaluation of the performance of the highest
governance body 150
2-19 Remuneration policies 92-93
2-20 Process to determine remuneration 80–81, 93
2-22 Statement on sustainable development strategy 4–5
2-23 Policy commitments 64–66, 150
2-24 Embedding policy commitments 64–65
2-25 Processes to remediate negative impacts 46, 52, 59, 64, 82–86, 150
2-26 Mechanisms for seeking advice and raising concerns 47
2-27 Compliance with laws and regulations 59, 64, 75
2-28 Membership associations Not followed at group level
2-29 Approach to stakeholder engagement 52, 64–66
2-30 Collective bargaining agreements 157
3-1 Process to determine material topics 50, 52, 55-65
3-2 List of material topics 50–52, 161
3-3 Management of material topics 50–52, 161
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GRI - topic specific indicators
Page/Information
GRI 201 Economic performance (2016)
GRI 201-1 Direct economic value,
generated and distributed
7
GRI 205 Anti-corruption (2016)
GRI 205-2 Communication and training
on anti-corruption policies
66, 150, 158
GRI 302 Energy (2016)
GRI 302-1 Energy consumption within
the organization
Included from 2022: Unified Brands
in Michigan and Mississippi. Includ-
ed from 2019: Spilamberto, Carros
and Louisville. Included from 2018:
Rayong (beverage) and Shanghai.
Other sites included 2016 or earlier.
61, 150-151, 155
GRI 303 Water and effluents (2018)
GRI 303-3 Water withdrawal Included from 2022: Unified Brands
in Michigan and Mississippi. Includ-
ed from 2019: Spilamberto, Carros
and Louisville. Included from 2018:
Rayong (beverage) and Shanghai.
Other sites included 2016 or earlier.
61-62, 155
GRI 303-4 Water discharge 156
GRI 303-5 Water Consumption 61-62, 150
GRI 305 Emissions (2016)
GRI 305-1 Direct (Scope 1) GHG emissions Included from 2022: Unified Brands
in Michigan and Mississippi. Includ-
ed from 2019: Spilamberto, Carros
and Louisville. Included fron 2018:
Rayong (beverage) and Shanghai.
Other sites included 2016 or earlier.
60-61, 156
GRI 305-2 Energy indirect (Scope 2) GHG
emissions
61, 150, 156
GRI 305-3 Other indirect (Scope 3) GHG
emissions Category 11
61, 150
Page/Information
GRI 306 Waste (2020)
GRI 306-3 Waste generated Included from 2022: Unified Brands
in Michigan and Mississippi. Only
disclosing data from 2022.
156
GRI 306-4 Waste diverted from disposal 156
GRI 401 Employment (2016) 157
GRI 401-1 New employee hires and em-
ployee turnover
158
GRI 403 Occupational health and safety
(2018)
GRI 403-9 Work-related injuries Sites above refer to the full scope
of operations located on the site
(manufacturing, R&D, office func-
tions, etc.)
63, 159
GRI 404 Training and education (2016)
GRI 404-1 Average hours of training per
year per employee
158
GRI 404-3 Percentage of employees
receiving regular performance
and career development re-
views
158
GRI 405 Diversity and equal opportunity
(2016)
GRI 405-1 Diversity of governance bodies
and employees
46, 159
Gender distribution 159
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FINANCIAL INFORMATION
OTHER INFORMATION
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Auditor’s Limited Assurance Report on Sustainability Report
and statement regarding the Statutory Sustainability Report
To Electrolux Professional AB (publ), corporate identity number 556003-0354
Introduction
We have been engaged by the Board of Directors and Executive
Management of Electrolux Professional AB (publ) to undertake
a limited assurance engagement of the Electrolux Professional
Sustainability Report for the year 2023. The Company has defined
the scope of the Sustainability Report in connection to the table of
content in the Annual Report and the Statutory Sustainability Report
on page 91.
Responsibilities of the Board of Directors and the Executive
Management
The Board of Directors and the Executive Management are respon-
sible for the preparation of the Sustainability Report including the
Statutory Sustainability Report in accordance with the applicable
criteria and the Annual Accounts Act respectively. The criteria are
defined on page 150 in the Sustainability Report, and are part of
the Sustainability Reporting Standards published by GRI (Global
Reporting Initiative), which are applicable to the Sustainability
Report, as well as the accounting and calculation principles that
the Company has developed. This responsibility also includes the
internal control relevant to the preparation of a Sustainability Report
that is free from material misstatements, whether due to fraud or
error.
Responsibilities of the auditor
Our responsibility is to express a conclusion on the Sustainability
Report based on the limited assurance procedures we have
performed and to express an opinion regarding the Statutory
Sustainability Report. Our engagement is limited to historical in-
formation presented and does therefore not cover future-oriented
information.
We conducted our limited assurance engagement in accor-
dance with ISAE 3000 (revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information. A limited
assurance engagement consists of making inquiries, primarily of
persons responsible for the preparation of the Sustainability Report,
and applying analytical and other limited assurance procedures.
Our examination regarding the Statutory Sustainability Report has
been conducted in accordance with FAR’s accounting standard
RevR 12 The auditor’s opinion regarding the Statutory Sustainability
Report. A limited assurance engagement and an examination ac-
cording to RevR 12 is different and substantially less in scope than
an audit conducted in accordance with International Standards on
Auditing and generally accepted auditing standards in Sweden.
The firm applies International Standard on Quality Management
1, which requires the firm 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. We are independent
of Electrolux Professional in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled our ethical re-
sponsibilities in accordance with these requirements.
e limited assurance procedures performed and the examination
according to RevR 12 do not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. The conclusion based on a limited assurance
engagement and an examination according to RevR 12 does not
provide the same level of assurance as a conclusion based on an
audit.
Our procedures are based on the criteria defined by the Board
of Directors and the Executive Management as described above.
We consider these criteria suitable for the preparation of the
Sustainability Report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our conclusion below.
Conclusion
Based on the limited assurance procedures we have performed,
nothing has come to our attention that causes us to believe that
the Sustainability Report, is not prepared, in all material respects, in
accordance with the criteria defined by the Board of Directors and
Executive Management.
A Statutory Sustainability Report has been prepared.
Stockholm 27 March 2024
Deloitte AB
Jonas Ståhlberg
Authorized Public Accountant
Adrian Fintling
Expert Member of FAR
P. 163Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Share and shareholders
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Other information
Share and shareholders 164
Our history 168
P. 164Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Share and shareholders
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Owner distribution, % of capital
Swedish Institutional
Owners 65.3%
Foreign Institutional
Owners 23.7%
Swedish Private Individuals 6.7%
Other 1.3%
Anonymous ownership 3.0%
Share price performance, 2023
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
DecNovOctSepAugJulJunMayAprMarFebJan
Closing price, SEK
40
50
60
70
80
Electrolux Professional No. of shares traded, thousands per weekOMX Stockholm_PI
Share and shareholders
Share price and trading
Between January 1, 2023 and December 31, 2023 a total of 66 million
Electrolux Professional shares were traded, amounting to a value of
SEK 3,473m. This corresponds to a daily volume of 261,232 shares.
Trading on Nasdaq Stockholm accounted for 52% and Cboe
Europe accounted for 40%.
The highest bid price (last price paid) during 2023 was SEK
61.40 on May 08, 2023. The lowest last price paid was registered on
October 27, 2023 at SEK 40.56.
During the period, the Electrolux Professional B share price in-
creased by 25.5% while Nasdaq OMX Stockholm PI increased by
15.5%.
Share ownership structure
At December 31, 2023 Electrolux Professional AB had 44,069
registered shareholders.
At December 31, 2023, Investor AB was the largest share-
holder with a holding representing 32.5% of the votes and 20.5% of
the capital in the company. The second largest shareholder was
Swedbank Robur with 8.4% of the votes and 10.5% of the capital.
Alecta Pension was the third largest shareholder with 6.8% of the
votes and 7.1% of the share capital.
Share information
According to Electrolux Professional’s Articles of Association, the
share capital shall not be less than SEK 20,000,000 and not be
more than SEK 80,000,000, divided into not less than 200,000,000
Class A shares and not more than 800,000,000 Class B shares. There
are two classes of shares issued in the company, Class A and Class
B shares.
As of December 31, 2023, the company’s registered share capital
amounted to SEK 28,739,745, represented by 287,397,450 shares, of
which 8,031,461 were Class A shares and 279,365,989 were Class
B shares, each with a quota value of SEK 0.1. The total number of
votes amounted to 35,980,527.6.
The shares in Electrolux Professional were issued in accordance
with Swedish law, are fully paid and denominated in SEK. The shares
are not subject to any restrictions on transferability. The rights of the
shareholders may only be changed pursuant to the procedures set
out in the Swedish Companies Act or the Articles of Association.
Dividend policy and history
Electrolux Professional’s target is for the dividend to correspond
to approximately 30% of the income for the year. Any dividend is
normally resolved upon by the Annual General Meeting. The Annual
General Meeting of Electrolux Professional will be held on April 25,
2024.
The Board of Directors proposes distribution of a dividend to the
shareholders of SEK 0.80 (0.70) per share for the 2023 financial year
corresponding to approximately 30% of the profit for the year. This
is in line with the policy to pay approximately 30% of net income in
dividends. The proposed record date is April 29, 2024 and payment
is expected to be made on May 3, 2024.
Delisting of Class A shares
In September 2020, the Company’s series A shares were delisted
from Nasdaq Stockholm.
P. 165Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Share and shareholders
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Marketplaces, %
2023
Cboe Global Markets 40.0%
ITG 2.0%
LSE Group 1.7%
Nasdaq 52 .3%
Aquis Stock Exchange 0.9 %
Sigma-X 0.7%
Liquidnet EU Limited Equity MTF 0.9%
Instinet Blockmatch Europe 0.8%
Conversion of Class A shares
Shareholders who hold Class A shares are entitled to convert
their shares to Class B shares. In 2023, 13,853 Class A shares were
converted to Class B shares.
Central securities depository
The Company’s shares are book-entry registered in a securities reg-
ister in accordance with the Swedish Central Securities Depository
and Financial Instruments Accounts Act (Sw. lagen (1998:1479) om
värdepapperscentraler och kontoföring av finansiella instrument).
The register is operated by Euroclear Sweden (Euroclear Sweden
AB, P.O. Box 191, SE-101 23 Stockholm, Sweden). The shares are
registered by person. No share certificates have been issued for
the shares or will be issued for the new shares.
Trading 2023
EPRO B Large Cap Stockholm
Average daily turnover, SEK 13,836,987 112,279,227
Average daily turnover rel. mcap 0.09% 0.18%
Average daily shares traded 261,232 1,243,093
Number of shares traded 65,569,255 47,933,665,937
Average trades per day 503 2,119
Number of trades 126,373 81,725,441
Average value per trade, SEK 27,483 37,539
High, SEK 61.40 –
Low, SEK 40.56 –
Volume-Weighted Average Price (VWAP) 52.97 –
Ownership structure
On December 31, 2023, Electrolux Professional Group had 44,069 registered shareholders.
The table below shows Electrolux Professional Group’s ownership structure on December 31, 2023.
Owners EPRO A EPRO B Capital, % Votes, % Δ Capital, %
Investor 6,420,771 52,520,883 20.51% 32.45%
Swedbank Robur Funds 30,172,403 10.50% 8.39%
Alecta Tjänstepension 453,900 20,025,098 7.13% 6.83%
Handelsbanken Funds 19,484,922 6.78% 5.42% –0.05%
Second Swedish National Pension Fund 12,149,652 4.23% 3.38%
First Swedish National Pension Fund 12,000,000 4.18% 3.34% 0.07%
Nordea Funds 9,929,280 3.45% 2.76% 0.47%
AMF Pension & Fonder 1,000,000 7,609,567 3.00% 4.90% 1.45%
Vanguard 8,154,699 2.84% 2.27% 0.02%
ODIN Fonder 7,000,000 2.44% 1.95% –0.59%
Investering & Tryghed A/S 6,327,685 2.20% 1.76%
Didner & Gerge Funds 5,827,301 2.03% 1.62% 0.04%
C WorldWide Asset Management 5,400,000 1.88% 1.50%
Norges Bank 5,040,846 1.75% 1.40% –0.05%
BlackRock 3,930,365 1.37% 1.09%
Total top 15 7,874,671 205,572,701 74.27% 79.05% 1.36%
Others 156,790 73,793,288 25.73% 20.95% –1.36%
Total 8,031,461 279,365,989 100.00% 100.00%
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream
Owner distribution by country
December 31, 2023
Country
Number of
shares Capital, % Votes, %
Number of
known owners
Share of known
owners, %
Sweden 209,366,329 72.85% 78.27% 42,335 96.07%
United States 24,849,892 8.65% 6.91% 153 0.35%
Denmark 14,122,380 4.91% 3.93% 393 0.89%
Norway 12,280,783 4.27% 3.41% 285 0.65%
Finland 10,814,891 3.76% 3.01% 161 0.37%
Other countries 7,325,742 2.55% 2.04% 740 1.68%
Unknown country 8,637,433 3.01% 2.42% 2 0.00%
Total 287,397,450 100.00% 100.00% 44,069 100.00%
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream.
P. 166Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Share and shareholders
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Owner distribution by holdings
December 31, 2023
Size class
Number of
shares Capital, % Votes, %
Number of
known owners
Share of known
owners, %
1–1,000 8,442,966 2.94 2.51 40,157 91.12
1,001–10,000 9,278,736 3.23 2.63 3,675 8.34
10,001–20,000 1,158,104 0.40 0.32 80 0.18
20,001– 259,880,699 90.43 92.12 157 0.36
Unknown holding size 8,636,945 3.01 2.42 0 0.00
Total 287,397,450 100.00 100.00 44,069 100.00
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream.
Share capital development
The table below shows the devlopment of the company’s share capital since January 1, 2017.
Year Event
Class A
shares
Class B
shares
Change in
share capital,
SEK
Class A
shares
Class B
shares
Total number
of shares
Total share
capital,
SEK
Quota value,
SEK
Input value – – – 25,000 – 25,000 25,000,000 1,000
2020 Bonus issue
1
8,167,539 279,204,911 3,739,745 8,192,539 279,204,911 287,397,450 28,739,745 0.1
Sep 30–Dec 31 2020 Conversion –70,012 +70,012 8,120,527 279,276,923 287,397,450
Jan 1–Dec 31 2021 Conversion –72,545 +72,545 8,047,982 279,349,468 287,397,450
Jan 1–Dec 31 2022 Conversion –2,668 +2,668 8,045,314 279,352,136 287,397,450
Jan 1–Dec 31 2023 Conversion –13,853 13,853 8,031,461 279,365,989 287,397,450
1) On February 18, 2020, the Annual General Meeting resolved on a bonus issue. The purpose of the bonus issue was to increase the share capital as well as
the number of shares to reflect the share capital structure of Electrolux ahead of the separation of Electrolux Professional from Electrolux.
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream.
Other information
Ticker Class B share: EPRO B
ISIN code Class A share: SE0013720018
ISIN code Class B share: SE0013747870
LEI code: 254900KI62Q46ZWD8084
Analyst coverage
At the end of 2023 the following analysts had active
coverage of Electrolux Professional Group:
DnB NOR Markets, Hanna Lindbo
Handelsbanken Capital Markets, Karri Rinta
Nordea, Stefan Stjernholm
Carnegie, Henrik Christiansson
SEB, Gustav Hagéus
Kepler Cheuvreux, Johan Eliason
Contact
IR contact Jacob Broberg
Chief Communication
and Investor Relations Officer
Telephone: +46 70 190 00 33
jacob.broberg@electroluxprofessional.com
P. 167Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Share and shareholders
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
These key strengths and competitive advantages drive our development
and performance, and they all provide a strong foundation for us to
execute our strategy.
Strong positions in structurally
growing underlying
end-markets.
Geographically balanced busi-
ness with a large part being
recurring sales. Relatively resil-
ient to economic downturns.
Track record of delivering
solid EBITA, cash flow and
cash conversion.
Solid balance sheet
Focused plan to expand
in high-margin products,
segments, and geographies,
supported by potential M&A.
Innovation-focused with
attractive pipeline of product
launches.
Committed to be the sustain-
ability leader in our industry.
Why invest in Electrolux Professional?
Annual General Meeting 2024
The Annual General Meeting of Electrolux Professional will be
held on April 25, 2024, at 3pm, at hotel Courtyard by Marriott,
Rålambshovsleden 50, Stockholm.
To order a printed annual report
To order a printed version, please send an email to:
ir@electroluxprofessional.com and provide your full name and
address details, together with the preferred language version,
Swedish or English.
Financial calendar 2024
Date
Interim report Q1, January – March 2024 April 24, 2024
Annual General Meeting 2024 April 25, 2024
Proposed dividend record date April 29, 2024
Proposed dividend payment May 3, 2024
Interim report Q2, April – June 2024 July 19, 2024
Interim report Q3, July - September 2024 October 25, 2024
P. 168Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023 Our history
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Electrolux Professional’s history
Electrolux Professional’s heritage dates back more than 100 years to the period when companies such as
Wascator, Zanussi, and Cecilware were formed (subsequently acquired by Electrolux). Until March 23 2020,
Electrolux Professional was part of the Electrolux Group.
1960s
Entered
Professional
food
equipment.
2010s
A stronger position in China and the Asia-Pacific region. Entered Professional
beverage solutions with a strengthened position in the US.
2020s
Strengthened position in the
US primarily in restaurant chains.
Continued expansion in Asia.
Swedish professional
Food company.
Founded in 1909
Acquired in 1962
Wascator
Heating system
and washing
machines.
Founded in 1902
Acquired in 1972
Zanussi
Homes and profes-
sional solutions.
Founded in 1916
Acquired in 1984
Dito Sama
French producer
of food prepara-
tion equipment.
Founded in 1945
Acquired in 1987
Alpeninox
Italian producer of
refrigeration equip-
ment.
Founded in 1974
Acquired in 1988
Shanghai
Veetsan
Professional
dishwashers in
China.
Founded in 2003
Acquired in 2015
Grindmaster
Cecilware
American
hot, cold, and
frozen bever-
age dispensing
equipment.
Founded in 1933
Acquired in 2017
Schneidereit
Laundry rental
solutions for pro-
fessional custom-
ers in Germany
and Austria.
Founded in 1957
Acquired in 2018
SPM
Italian manufacturer
of frozen beverage
solutions.
Founded in 1996
Acquired in 2018
UNIC
French manufac-
turer of automat-
ic and traditional
espresso coffee
machines.
Founded in 1929
Acquired in 2019
Unified
Brands
A leading US-based
manufacturer of
food-service
equipment.
Founded in 1907
Acquired in 2021
2020
Electrolux Professional listed
on Nasdaq Stockholm as an
independent company.
Company history
1990s
Business streamlined and refined. Opera-
tional headquarters established in Italy in
1990. Focus on food-service and laundary
systems.
2000s
International expansion. Operatiional offices
in North America, India, Brazil, Dubai and
others. Industrial facility for laundry equip-
ment opened in Thailand in 2005.
TOSEI
A leading manufacturer
of laundry and vacuum
packing machines in
Japan. Acquisiton was
announced in 2023,
and completed in 2024.
Founded in 1950
1980s
Business grew significantly through organic growth and
major acquisitions.
Acquisitions
1970s
Entered
Professional
laundry
equipment.
Food
Beverage
Laundry
Corporate
P. 169Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2023
Other
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
PRODUCTION
OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability notes
- About this report
- EU Taxonomy regulation
- Data
- GRI index
Auditor’s report on
the sustainability report
Share and shareholders
Our history
Electrolux Professional AB (publ), 556003-0354
Postal and visiting address: Franzéngatan 6,
SE-112 51 Stockholm, Sweden
Telephone: +46 8 41056450
Website: www.electroluxprofessionalgroup.com