Annual and Sustainability Report 2022
Making our customers’ work-life easier, more profitable
– and truly sustainable every day
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Contents
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
1
Introduction Our strategic
foundation
Global trends
& our markets
Business
segments
Operations &
our people
Sustainability
Governance
& risk management
Financial
information
Other information
This is Electrolux Professional
Group
The year in brief
2022 in figures
CEO comments
Our business model –
how we create value
Targets
Financial targets
Sustainability strategy
and targets
Strategies
Global external trends
The global professional
equipment industry
Customers
Sales
Customer Care
Our markets
Marketing and brands
Food & Beverage
Performance in 2022
Laundry
Performance in 2022
Our production
Quality
Logistics
Purchasing
Our people
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
Chairman’s comments
Corporate governance
report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
Financial information,
contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
6
3 54
1 2
7
8 9
Contents
The Annual Report for Electrolux Professional AB (publ) 556003-0354,
consists of the Administration Report on pages 91–95, the Financial
Statements and notes on pages 96–141, the Corporate Governance
Report on pages 68–79 and the Sustainability Report on pages 10,
49–65 and 150–161. 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.electroluxprofessional.com/corporate/annual-reports/
Electrolux Professional was part of Electrolux, founded in 1919, until
March 23, 2020 when the shares in Electrolux Professional were distributed
to the shareholders of Electrolux, and listed on Nasdaq Stockholm.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
P. 1Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 This is Electrolux Professional Group
1
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & 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 health-
care, educational and other service
facilities.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
P. 2Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 The year in brief
1
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The year in brief
Q1 Q2
Q4Q3
Electrolux Professional
Group in brief
Sales in approximately
110 countries
12
manufacturing units
in seven countries
Headquarters in Stockholm,
Sweden
Approximately
4,000
employees
Listed on NASDAQ
Stockholm since
2020
> Business still impacted by pandemic restrictions,
which were gradually lifted throughout the quarter.
> Russia’s invasion of Ukraine created disruption in
global supply chains and higher energy prices.
> A fully equipped kitchen was donated to Poland to
help refugees from Ukraine and a donation of EUR
25,000 was made to support the relief efforts of the
Red Cross in Ukraine.
> The OnE Customer Portal launched to customers.
> Safebox hold was launched – a unique holding
solution for food take away and delivery, devel-
oped during the pandemic based on an employee
innovation challenge.
> Q1 result – strong sales recovery in turbulent times.
> Announcement of new organization, with five
Business Areas, aimed at focusing on customer
categories and geographies to strengthen
business ownership.
> Integration of Unified Brands completed.
> Donation of products to a refugee center in Ukraine
and a Romanian orphanage.
> The first physical Annual General Meeting as a
standalone company was held in Stockholm.
> The company celebrated 120 years of laundry
solutions.
> LiberoPro and TrinityPro from Electrolux Professional
won Red Dot Design Award 2022.
> Q2 result - strong sales growth and improved EBITA.
> The operations in Russia were divested.
> A new EUR 140m syndicated term loan facility was
agreed.
> Camilla Monefeldt Kirstein appointed as President
Business Area Food Europe starting March 2023.
> Q3 result – continued growth and higher EBITA.
> Electrolux Professional Group was rated by
Sustainalytics as the top performer in the ESG risk
ranking among its listed, ranked competitors.
> Electrolux Professional Group received top
industry rating in Climate Change by CDP.
> Introduction of corporate brand - Electrolux
Professional Group.
> Investor Day focused on the US Food & Beverage
market was held in Italy.
> Q4 result – a solid fourth quarter.
LiberoPro and TrinityPro won
Red Dot Design Award 2022.
Safebox hold a unique holding solution
for food take away, which is based on
an Employee innovation Challenge.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
P. 3Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 2022 in figures
1
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2022 in figures
Operating cash flow
after investments
0
200
400
600
800
1,000
1,200
20222021202020192018
SEKm
EBITA and EBITA margin
0
200
400
600
800
1,000
1,200
20222021202020192018
SEKm %
EBITA EBITA margin
0
5
10
15
20
25
Total net sales
0
2,000
4,000
6,000
8,000
10,000
12,000
20222021202020192018
SEKm
SEK 11,037 m
Net sales, total
Food & Beverage
66%
Laundry
34%
Net sales by segment
Key ratios
SEKm
2022 2021 2020 2019 2018
Net sales 11,037 7,862 7,263 9,281 8,666
EBITA 1,111 663 456 1,058 1,188
EBITA margin, % 10.1 8.4 6.3 11.4 13.7
EBITA excl. items affecting comparability¹ 1,146 663 533 1,090 1,188
EBITA margin excl. items affecting comparability, %¹ 10.4 8.4 7.3 11.7 13.7
Operating income 955 592 387 992 1,143
Operating margin, % 8.7 7.5 5.3 10.7 13.2
Income after financial items 895 587 363 978 1,134
Income for the period 686 487 278 663 952
Earnings per share, SEK
2
2.39 1.69 0.97 2.31 3.31
Operating cash flow after investments 636 1,116 570 1,138 1,131
Operating working capital, % of net sales 16.7 14.9 19.9 17.7 16.2
1) 2019 includes items affecting comparability of SEK –32m, 2020 of SEK –77m, and 2022 of SEK –35m.
2) Basic number of outstanding shares.
Europe
58%
Asia-Pacific,
Middle East,
Africa
13%
Americas
29%
Net sales by region
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
P. 4Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 CEO comments
1
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
CEO comments
A solid 2022 –
despite the global turbulence
2022 has been a good year for Electrolux Professional Group despite the uncertain geopolitical
situation, high inflation, and widespread component shortages. Our post-pandemic recovery
has continued, and we have significantly strengthened our position in Food in the US through the
successful integration of Unified Brands. The Laundry segment has also remained strong. All in all,
it has been a solid year for the Group with record high sales and a substantial increase in profit.
The hospitality industry has seen a strong
recovery during the 2021-22 period, spear-
headed by the US and quick-service
restaurants, and the industry is now back to
pre-pandemic sales levels. This demonstrates
the resilience of the industry and confirms
that the underlying long-term factors influ-
encing growth are robust.
Strong in a turbulent time
Against the backdrop of macroeconom-
ic headwinds, a challenging supply chain,
increased raw material prices and a shortage
of components, we have managed to grow
both sales and profit significantly during
2022. Sales are now at a record high level
and EBITA is back to its pre-pandemic level.
Once again, this is testimony to the robust-
ness of the company. Nevertheless, volumes
in Food & Beverage have not yet fully re-
turned to previous levels since prices have
increased significantly. This also means that
there is plenty of room for volume growth in
the coming years.
Russia’s unlawful war against Ukraine
made it impossible for us to continue our op-
erations in Russia. Consequently, we divested
our operations
and had to
accept ending
the relation-
ship with many
highly regarded
team members.
To support the
refugees from
Ukraine, we have
donated kitchen
equipment to both Poland and Romania. In
addition, the company and our employees
have donated money to support the Red
Cross’ humanitarian response in Ukraine.
Long-term favorable trends
The trends driving the growth of our business
are still valid, and despite global turbu-
lence and a potential economic down-turn,
people continue to spend money on travel,
eating out and take-away. In addition to the
movement towards
sustainability,
the pandemic
has underlined
the importance
of hygiene which
has supported
the growth of the
Laundry market.
The significant
increase in energy
prices last year has made customers even
more conscious of the total cost of owner-
ship instead of the upfront investment cost
of products. This suits us well given our track
record as an industry benchmark in respect
of energy savings.
Digitalization and connected products
continue to be a major trend within the indus-
try. It enables more effective use of products
as well as higher uptime, for example through
preventive remote maintenance, which sup-
ports the operation and fleet control of the
appliances.
Progress within our strategic priorities
During the year we have made progress with-
in all our strategic pillars.
We have focused on driving sales of many
of the new products launched in 2021, but
with a special focus on our strong sustainabil-
ity offering which customers appreciate more
and more. In addition, we have many new
products already in the pipeline for launch
during 2023, which will further support our
profitable growth.
It has been a solid year
for the Group with record
high sales and a strong
increase in profit.
Alberto Zanata, President and CEO
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Operations
& our people
Contents
P. 5Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 CEO comments
1
Introduction
Contents
This is
Electrolux Professional Group
The year in brief
2022 in figures
CEO comments
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Growth in restaurant chains is one of our
strategic priorities. During the year we have
continued to improve our penetration in
restaurant chains, driven by the acquisition of
Unified Brands. Our US platform has become
a lot stronger and is now a solid base from
which we can grow profitably. This is import-
ant to us since the US is the single largest
market for Food & Beverage and home to
most of the large global food chains.
Customer care is crucial for our customers’
uptime, and at the same time is one of the
most profitable parts of our business, and
I am pleased to report that it continued to
grow during the year. Currently, Customer
care accounts for 18% of Group sales, exclud-
ing Unified Brands.
We have made significant investments in
digitalization, including connected prod-
ucts, exemplified by the launch of “The OnE”
Digital customer platform. Customers can
now more easily order products and services
directly via the platform. In addition, the OnE
platform brings the unique advantage of
encompassing all appliances in the kitch-
en and the launderette, giving us a “system
integrator” role. It is my belief that connect-
ed appliances will significantly improve our
customers’ way of operating, making their
work-life easier, more profitable, and truly
sustainable.
New Group Brand
To clarify Electrolux Professional’s role as
both a company and a business brand, the
corporate brand Electrolux Professional
Group was introduced in 2022. Today, the
Electrolux Professional brand name rep-
resents the majority of the sales. However,
our total portfolio consists of 18 other brands
which account for about 40% of Group sales.
The change enables these brands to continue
to build on their unique offering and identity
while benefiting from their association with
the strength of the Group.
New organization
Following the acquisition of Unified Brands in
the US, we saw a need to focus and simplify
our organization to be able to drive strategic
priorities faster and stay close to our custom-
ers. The new organization came into force on
July 1, 2022, and consists of five Business Ar-
eas beneath the two reportable segments of
Food & Beverage and Laundry. The structure
of the Business Areas is built around custom-
er categories and geographies. It is my firm
belief that this will reinforce business owner-
ship, move decisions closer to the customer,
and allow higher speed and agility.
Sustainability leader
Electrolux Professional Group is the sustain-
ability leader in our industry. Sustainability is
quite simply a part of our legacy, engrained
into our culture, day-to-day operations, and
strategy. This leadership was underlined
when we were ranked highest among the list-
ed companies in our industry on the climate
change list, in the Carbon Disclosure Project
(CDP), and on the environment, social, and
corporate governance (ESG) risk rating by
Sustainalytics.
Our sustainability targets center on 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 cli-
mate change and we support the ambitions
of the Paris Agreement.
Our overarching, and ambitious, target is
to become climate neutral in our own opera-
tions by 2030. In 2022, the carbon emissions
related to our industrial operations had
reduced by 45% (31) compared to 2015. See
more on page 61. Since product use consti-
tutes the majority of our emissions impact,
around 95%, we have developed a Science
Based Target for our scope 3 emissions which
is currently awaiting approval from the Science
Based Target Initiative (SBTi). Our target is
to continue developing products that have
lower consumption of resources. In practice
this means reducing impact from product-use
related to energy, water, and detergents. This
is good for both our customers’ running costs
as well as the environment.
Stronger today
Towards the end of 2022 and during the be-
ginning of 2023 we have noticed that supply
chain challenges have eased somewhat, and
order intake has remained at a good level.
At the same time, the general economic un-
certainty, inflation, and negative consumer
sentiment still gives reason for caution and
requires us to be prepared for various sce-
narios.
As we head into 2023 and face a poten-
tial economic downturn, it is important to
remember that Electrolux Professional Group
stands far stronger today than during the
global financial crisis in 2009. We have a
more balanced geographical exposure, a
proven ability to manage cost in a downturn,
and a stronger position in Food chains and
Laundry, which should support us during a
possible downturn.
Based on our progress over recent years
and the continued general positive market
conditions for our industry, we are cautiously
optimistic for 2023. We are fully committed to
our strategy and financial targets and have
full confidence in our ability to achieve the
targets over the mid-term.
We can do nothing without our greatest
asset, our people, and I would like thank
all our dedicated employees for their great
contributions to our results!
Alberto Zanata,
President and CEO
During the year we
have continued to im-
prove our penetration
in restaurant chains,
driven by the acquisi-
tion of Unified Brands.
Alberto Zanata, President and CEO
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 6Our strategic foundationElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our strategic foundation
Our business model – how we create value
7
Financial targets and dividend policy
8
Sustainability targets
10
Strategies
11
– Grow through innovation
12
– Expand in food service chains
15
– Boost Customer Care
17
– Leverage “The OnE Approach”
18
– Operational excellence
20
Our mission - making our customers’ work-life easier,
more profitable - and truly sustainable every day
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 7How we create valueElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
2
Operations
& our people
Our business model – how we create value
> Product development
and innovation of smart products
offering sustainable solutions.
Read more on page 12.
> Marketing
focused on making our customers’
work-life easier, more profitable and
truly sustainable.
Read more on page 29.
> Sales
mainly through dealers and distributors.
Read more on page 26.
> Production
World-class manufacturing focused
on lower environmental impact and an
excellent working environment.
Read more on page 40.
> Customer Care
and sales of chemicals, accessories,
spare parts and consumables.
Read more on page 27.
> 4,000 committed employees,
page 44.
>
12 manufacturing sites,
page 40.
>
More than 3,000 large customers
in 110 countries, page 24.
>
Long-term relations with
stakeholders in our value chain,
page 65.
>
Strong brand – known for
innovative, sustainable solutions
and the OnE offering,
page 18.
>
Raw materials and components
page 43.
For our customers
> Reduced energy consumption
and carbon footprint
>
Improved quality of the food,
beverage or laundry service
>
Ergonomic and human-centric
design
>
Enhanced hygiene
Read more on page 56.
.
For our employees
> Diversity and inclusion
>
Long-term employer
>
Good, safe work environment
>
Skills development
Read more on page 44.
For society
> Greater resource efficiency
>
Address social challenges
Our business modelOur resources Creating
financial value
Created value
SEK 10,799 m
Distributed value
Employees SEK 2,271 m
Suppliers SEK 6,973 m
Society, taxes SEK 869 m
Reinvested SEK 686 m
Creating
sustainable value
For our customers
Lower total costs over the lifecycle of
the equipment by
> Reduced energy consumption
>
Improved speed, flexibility and ease
of use in customer operations
>
Reliability of the overall equipment
system
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 8TargetsElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Financial targets and dividend policy
Electrolux Professional Group’s goal is to
create value for its stakeholders through
profitable growth. Our strategy focuses on
four pillars, built on a foundation of opera-
tional excellence to improve sales, produc-
tivity, and cost efficiency within the supply
chain. These four pillars are: grow via inno-
vative sustainable solutions, grow in chain
businesses, boost Customer Care for higher
margins, and leverage “The OnE” approach
and drive digital transformation.
Profitability
EBITA margin of
15%
Net sales growth
Organic annual growth of more than
4%
over time, complemented by
value-accretive acquisitions.
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.
Asset efficiency
Operating working capital below
15%
of net sales.
OUTCOME:
2022: 16.9% (10.6) Average 2017–2019: 3.1%
Comment on 2022 outcome
The hospitality industry is now back to pre-pandemic levels in
terms of sales, but not in volume. Laundry is back also in volume.
Sales of Food & Beverage increased organically by 17.4%
and Laundry by 16.2%.
OUTCOME:
2022: 10.1% (8.4) Average 2017–2019: 13.1%
Comment on 2022 outcome
Profit and profitability increased substantially during 2022
due to price, volume and the contribution from Unified Brands.
EBITA also includes cost for the divestment of the Russian
operations meaning the underlying margin is 10.4%
OUTCOME:
2022: 16.7% (14.9) Average 2017–2019: 15.9%
Comment on 2022 outcome
Operating working capital as a percent of annualized
net sales increased due to higher trade receivables and
inventory, partially due to higher material cost and
higher stock of components.
OUTCOME:
2022: 1.5x (1.9)
Comment on 2022 outcome
The net debt/EBITDA ratio was 1.5 at the end of 2022 which
means that we are better or in line with our target.. In total,
net debt amounted to SEK 2,050m on December 31, 2022
compared to SEK 1,705m as of December 31, 2021.
Dividend policy
Electrolux Professional’s target is for
the dividend to correspond to approx-
imately 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 requirements, and debt service
obligations.
Comment on 2022 outcomes
The Board proposes a dividend of
SEK 0.70 (0.50) per share which is in line with
the dividend policy.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 9TargetsElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Building blocks to achieve 15% EBITA margin
While margin expansion will mainly come from higher volumes
and an improved mix, cost efficiencies will also be important.
Volumes
Factory
and logistics
optimization
Stronger mix:
• New solutions
• Customer Care
• Food chains
• Grow in the US
Continuous
improvements,
processes and
digitalization
0
3
6
9
12
15
2022202120202019201820172016201520142013
EBITA-margin excluding items affecting comparability
Medium-term
expected
EBITA margin
15%
10.4%
9.2%
11.1%
13.2%
13.9%
14.2%
13.7%
11.7%
7.3%
8.4%
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 10TargetsElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
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 2022:
Number of accidents resulting in lost work
time decreased in 2022, and the lost time
injury rate improved to 0.6 (0.7).
Comment on 2022 outcome
The lost time injury rate improved by 7%
compared with 2021. During the year we
have continued to address root causes of
accidents, and worked preventively with
near misses, unsafe acts, and improving
conditions at our manufacturing sites.
We have a zero tolerance for
work related accidents.
OUTCOME 2022:
The percentage of women in all
managerial positions was
26% (26) in 2022.
Comment on 2022 outcome
Gender diversity across managerial
positions was unchanged compared to 2021.
During the year the company has carried
out activities related to diversity and inclu-
sion such as Guiding Principle workshop,
and education of hiring managers.
OUTCOME 2022:
Scope 1 and 2 CO
2
emissions in 2022
amounted to 6.2 kton, which is –45%
compared to 2015 with recalculated baseline*.
Comment on 2022 outcome
The total emission has increased due to
acquisition of Unified Brands in the US.
With recalculated baseline* the reduction
since 2015 is 45%. The decrease in 2022 is
mainly due to increased share of renewable
electricity in Rayong, reduced electricity
consumption in Louisville and Shanghai
and reduced natural gas consumption in
Rayong and Vallenoncello.
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>
70%
by 2030 (base year 2019)
Climate target for 2030
OUTCOME 2022:
With recalculated* baseline including
Unified Brands, reduction
since 2019 is 29%.
Comment on 2022 outcome
Electrolux Professional Group will continue
to increase its share of renewable energy
focusing on reducing natural gas consump-
tion through electrification and increasing
share of electricity from renewable sources
at sites located outside of Europe.
Remaining emission will be off-set
to reach climate neutral ambition.
Our climate ambition for 2030
To become climate neutral within our
industrial operations by 2030.
* Recalculation is made by distributing the first reported
emission footprint backwards to previous years.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 11StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Strategy for growth built on
a foundation of operational excellence
1
OPERATIONAL EXCELLENCE TO IMPROVE SALES, PRODUCTIVITY,
AND COST EFFICIENCY WITHIN THE SUPPLY CHAIN.
In addition to the four strategic growth and expansion pillars, Electrolux Professional Group aims to drive operational excellence
by further improving cost efficiency in production, to achieve world-class manufacturing and productivity.
GROW
the business by developing
sustainable and innovative solutions
that have low running costs.
EXPAND
in food service chains, especially in
North America, grow in beverage
and expand in emerging markets.
BOOST
sales of Customer Care
LEVERAGE
”The OnE Approach”
with digital transformation
Read more on page 12.
Read more on page 15.
Read more on page 17.
Read more on page 18.
Read more on page 20.
2
3
5
4
Our strategic targets
Our strategy for growth focuses on
four pillars, built on a foundation of
operational excellence to improve
sales, productivity, and cost effi-
ciency in the supply chain. In the
following pages we describe the
core activities within each pillar.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 12StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
GROW through innovation
We want to set the pace of industry
innovation in sustainability and
energy efficiency, underpinned by
a connected and digital platform.
Our aim is to cater to customer needs by continuously
developing new and improved products and services,
thereby adding value to our customers.
Part of our innovation strategy is to prioritize ap-
pliance digitalization. Our ambition is to address our
customers’ increased requirements for multi-functional
products, with low running costs, and reduced energy
and water consumption.
Investments in R&D 2022
SEK 381m
Yearly average R&D expenditure
as share of net sales 2018–2022
4.4%
1
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 13StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Research and development
One of our key competitive advantages is our focus on developing
new sustainable and innovative products that seek to cater to customers’
needs and increase customer productivity and efficiency.
Significant resources
invested in R&D
Electrolux Professional Group
invests significant resources into its
global R&D activities. From 2018 to
2022 the company’s R&D expen-
diture was an average of approxi-
mately 4.4% of net sales per year.
Growth through
sustainable solutions
Offering our customers truly sus-
tainable solutions is one of our key
strategies for growth. We aim to
be a sustainability role model in
our industry and continually find
new, more energy-efficient and
resource-efficient methods for food,
beverage and laundry. As a result,
not only do we help our customers
to reduce their operating costs, but
we also have a large 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 page 14.
Connected products
Most of the products manufactured
in 2022 have been connectable
to be able to provide their users
with useful information. Through
connected products, the customers
can monitor and steer any connect-
ed products, thereby maximizing
uptime, improving service, and
reducing consumption of energy,
water and consumables. Read
more on page 19.
2022 OUTCOME
Our focus has been on driving
sales of many of the new
products launched in 2021.
In addition, several prod-
ucts are under development
to be launched in 2023. All
new products are improving
our sustainability offering as
well as our profitability. To
strengthen the R&D capabil-
ities, an agreement has been
signed with HCLTech in India.
1
The TrinityPro tabletop slicer-cutter-mixer and the LiberoPro plug
and play cooking solution can proudly boast winning this presti-
gious design award. This was the first time Electrolux Professional
has received several Red Dot Awards in the same year. The
global mark of distinction is handed out by an international jury
that evaluates design and innovation prowess from thousands of
products submitted every year.
Electrolux Professional has maintained its strong track record
in this highly regarded, international competition aimed for all
companies who would like to distinguish their business through
excellent design.
LiberoPro and TrinityPro from
Electrolux Professional Red Dot Design
awarded 2022
The innovations LiberoPro and TrinityPro from Electrolux
Professional won the Red Dot Award 2022 for product
design. The award, which has the motto “Winning is the
beginning” is the most globally recognized accolade for
industrial design quality.
LiberoPro – Professional Plug & Play
Modular Cooking range
TrinityPro – Vegetable Slicer, Cutter
Mixer and Combined Cutter-Slicer
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 14StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Growth through sustainable solutions
1
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
Line 6000 Heat Pump Tumble Dryer
Advanced technology that consistently
reduces drying times with energy savings
up to 60%*.
*compared to conventional dryers
Thermaline Pressure Braising Pan
The reduction in cooking time with pressure
pans ensures higher productivity, while
saving up to 77% in energy.
Green&clean Rack-type dishwashing
High efficiency, lower running cost, up to
22%* less energy consumption compared
to other machines.
*Cost savings are calculated by accredited Lab.
Up to
60%
energy savings*
Energy
savings up to
77%
Energy
savings up to*
22%
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 15StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
EXPAND in food service chains
Organic increase in sales to food service chains
and potential M&A to support acceleration.
We have well-defined growth priorities, which mainly
include increasing sales to commercial restaurant and
food chains – large companies with multiple outlets
across several regions – in North America and emerg-
ing markets.
In addition, we aim to accelerate growth through
selective add-on acquisitions, primarily acquisition
targets that clearly align with the company’s strategic
road-map.
2022 OUTCOME
We have continued to improve our
penetration in restaurant chains.
Several product tests are currently
being carried out with customers,
which often leads to new roll-outs.
In addition, the acquisition of
Unified Brands has significantly
increased the US share of sales to
restaurant chains. Currently, sales
to chains amounts to approximately
20% of the Food & Beverage sales.
2
Chains, Food & Beverage,
sales in % of net sales
0
5
10
15
20
202220212020
%
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 16StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The Food & Beverage
market in the US
United States is truly the home of the largest global food &
beverage chains that are still growing in the US and heavily
expanding internationally.
Important and growing market
The size of the Food & Beverage
market in the US is about USD 10bn
(USD 30bn globally). Our acquisition
of Unified Brands at the end of 2021
shifted the global share of sales in
the US making it now approximately
one third of the global Group sales,
almost double compared to 2020.
Fragmented Food & Beverage
equipment market
In the US, a handful of large multi-
brand players represent about half
of the market, but there are also
many medium/small, single-brand
players, making this a fragmented
market. Consequently, Electrolux
Professional Group competes with
many single brand companies in
different segments, using some
of our specialty brands, such as
Groen or Randell.
Home of most major global
food service chains
Success with global food and
beverage service chains often
depends on the relationship built in
their home country. Since 24 of the
top 30 food service chains (such as
Subway, McDonald’s, Starbucks,
KFC, Burger King, and Pizza Hut)
are based in the US, the foundation
and brand recognition that has
been built in the US is vitally im-
portant to be able to grow outside
the US.
Acquisitions in the US
accelerates our strategy
While new within Electrolux
Professional Group, the recently ac-
quired US brands, Groen, Randell,
Power Soak, Capkold, and Avtec
from Unified Brands, have been
leading players in the Food service
industry since Groen’s founding in
1907. Together with Grindmaster,
which was acquired in 2017, the
acquisition of Unified Brands has
created a much stronger platform
in the US which supports our strate-
gy to grow in restaurant chains.
2
Electrolux Professional Group
aims to accelerate growth
through selective add-on ac-
quisitions, primarily acquisition
targets that clearly align with the
company’s strategic roadmap.
In December 2021, Electrolux
Professional acquired Unified
Brands, a leading US-based
manufacturer of food-service
equipment. The acquisition
has significantly strengthened
Electrolux Professional’s pres-
ence in the US and supports our
focus on growth in food service
chains.
Acquisitions to
accelerate growth
Previous acquisitions includes
UNIC – a French producer of
professional coffee solutions in
2019, Grindmaster-Cecilware –
a North American coffee solu-
tions producer in 2017, and in
2018 SPM Drink Systems, an
Italian manufacturer of frozen
beverage equipment. In 2015,
Veetsan, a manufacturer of pro-
fessional dishwashers in China
was acquired, and in 2018
Schneidereit, a supplier of laun-
dry rental solutions in Europe.
50%
of Unified Brand’s sales
are to chains
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 17StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
BOOST Customer Care sales
We will further develop our global service network and
competence as a full-service provider while increasing sales
of spare parts, accessories, service, and consumables.
Electrolux Professional Group op-
erates in a market characterized by
the heavy use of machines, which
requires us to have a reliable and
geographically well-distributed
Customer Care service. We will
support our customers through-
2022 OUTCOME
Sales of Customer Care
increased by approximately
19%* in 2022 and now ac-
counts for approximately 18%*
of Group sales. Sales of ser-
vice contracts and detergents
progressed well.
* excluding Unified Brands.
out the life of the product via the
global sales and service network in
over 110 countries via 2,200 service
partners in a hybrid model of own
service technicians and contracted
service partners. In addition, we
offer spare parts kits and perfor-
mance-enhancing consumables,
including eco-certified detergents,
and we provide our customers
remote guidance – Two Pairs of
Eyes – with a seamless connection
between their Field Service Engi-
neers and our technical experts.
Sales of
Customer Care 2022 *
+19%
Electrolux Professional offers
Customer Care via
2,200
service partners
3
Customer care
share of net sales
10
15
20
2022202120202019
%
Incl Unified Brands
Excl Unified Brands
Post-service
recommendations
Spare parts
Preventive
maintenance
Repairs
End-of-life replacement
Accessories and
consumables
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 18StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
LEVERAGE ”The OnE approach”
We want to strengthen our global product
and service offering, including the digital
“OnE Connected” offer. Our broad market
presence can be further strengthened, and
our ongoing relationships with customers
create an opportunity for repurchases and
additional services.
2022 OUTCOME
We are currently the only global
player that offers food, beverage,
and laundry equipment under
one brand, Electrolux Professional.
In 2022, this offering has been
further enhanced with the launch
of “The OnE” Digital customer
platform in many countries. In
addition, the OnE Connected
is currently being launched,
making Electrolux Professional a
“system integrator” for the kitchen
or the launderette.
4
Our Digital vision 2024
Connected appliance
of future installations
50%
Distributors
on-line sales
65%
Digital customer
interactions
50%
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 19StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Digitalization is starting to shape our industry
4
The OnE
The OnE is Electrolux Professional’s global
product and service offering, with both
single and full solutions and services across
Food, Beverage and Laundry – under one
brand. This allows customers to manage
their operations through connectivity and
a digital ecosystem. The OnE also includes
management of the entire value chain, from
project planning and design to production,
installation, Customer Care, and service.
The OnE platform
The platform is a one-stop-shop for our
customers. From this self-service portal,
partners can place orders for products,
consumables and spare parts, track ship-
ment in real time, search for documentation
or products, and digitally interact with us
for any support case which can be moni-
tored through a ticketing system.
The OnE platform benefits
• Customer insights in their business
• One tool to manage customer relationship
• Partner access 24/7
• Reduce number of support requests
• Improve communication to dealers
• Increase future sales
• From manual to digital sales
Digital connectivity enables remote
control of the whole business
OnE Connected is a system that our cus-
tomers can use to 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.
Sales value, manual
versus online, 2022*
75% digital25% manual
Number of orders, manual
versus online, 2022*
57% digital43% manual
* Sales to onboarded partners and distributors in the countries
where the platform has been launched.
Control your operations from any device with
OnE Connected platform for all connected
appliances.
Increase uptime and maintain
top operation performances.
Introduction Our strategic
foundation
Global trends
& markets
Business
segments
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risk management
Financial
information
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information
Contents
P. 20StrategiesElectrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022
2
Operations
& our people
Our strategic
foundation
INTRODUCTION
OUR STRATEGIC FOUNDATION
Our business model –
how we create value
Financial targets
and dividend policy
Sustainability targets
Strategies
Grow through innovation
Expand in food service chains
Boost Customer Care
Leverage
“The OnE Approach”
Operational excellence
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
OPERATIONAL EXCELLENCE
We will improve agility and cost efficiency within
production by driving world-class manufacturing
best practices and productivity.
We strive to reduce production costs, improve our industrial foot-
print, and reinforce supplier excellence through a consolidated
supplier base. Read more about our production on page 40.
We want our operations to contribute to a more sustainable
society and our ambition is to become climate neutral in our
industrial operations by 2030. Read more about our sustainability
focus on pages 48–65.
2022 OUTCOME
The shortage of components and shipping
availability created pressure and increased cost.
Material and energy costs have also increased.
Productivity activities, including lean manufac-
turing, combined with process digitalization
contributed to significant improved quality and
energy efficiency during the year.
5
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 21Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Global trends and our markets
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Global trends and our markets
Global trends affecting our industry
22
The global professional equipment industry
23
Customers
24
Sales
26
Customer Care
27
Our markets
28
Marketing and brands
29
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 22Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Global trends affecting our industry
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Global trends affecting our industry
The post-pandemic new normal
• Health and hygiene are top-of-mind for consumers
everywhere.
• Drive-throughs, take-away, home-deliveries, and out-
door serving call for new digital tools.
• More user-friendly equipment, machines that are easier
to clean, hygienic surfaces, and new materials will be
required.
• There is a post-pandemic shortage of labor in the hos-
pitality industry. This is accelerating automatization and
digitalization as there is a need to ensure high produc-
tivity with fewer employees.
Digitalization
Global digitalization is affecting the way we work and in-
teract, and is changing the eco-system of our customers’
business. An increased demand for connected solutions,
process optimization, and efficiency will be driven by
new technologies, demanding future investments, strate-
gic focus, and knowledge.
Climate change and effective use of resources
Climate change and a shortage of water, energy, and
other resources has created a need for sustainability
and energy efficiency in all parts of society. Since energy
cost is a significant part of the total cost of ownership,
energy efficiency in professional solutions is central to
any investment decision. In addition, a ban on single
use of plastic packaging will be introduced in several
markets, and the fight against microplastic is becoming
more important.
Population growth
The growing population 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.
Increasing workforce participation
The increase in workforce participation and the
extension of the working age means that the time for
household chores, such as cooking and cleaning
has decreased.
Growing disposable household income
A higher disposable income allows more people to
spend more money on leisure activities such as out-of-
home dining, and less time on household chores, creat-
ing an increased demand for out of home, professional
services.
Urbanization
Increased urbanization drives demand for out-of-home
consumption, especially out-of-home dining. Urbaniza-
tion also increases the proportion of white-collar jobs,
which means more people require external food, bev-
erage, and laundry services to save time and space. In
addition, urbanization leads to increased traffic in public
places, such as shopping centers and train stations,
resulting in increased demand for fast-food and bever-
ages.
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 23Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 The global professional equipment industry
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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, including companies in the global hospitality
industry as well as other businesses and institutions.
In 2022, the food and beverage
segment accounted for approx-
imately USD 30bn* of the global
market, and the professional
laundry segment accounted for
USD 2.8bn*.
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 addi-
tional factor that drives competition.
This is because the initial equipment
cost represents only a fraction of
the total cost of ownership during
GLOBAL MARKET KEY
PL AYERS
Food & Beverage
• Ali Group/Welbilt
• Hoshizaki
• ITW
• Marmon Group
• Middleby
• Rational
Market and competition
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
PRODUCTS
Food service applications: cooking,
refrigeration, dishwashing, and dynamic
food preparation
Beverage equipment for coffee,
espresso, hot, cold and frozen beverages,
and soft-drink dispensing equipment
Laundry products: washers, tumble
dryers, drying cabinets, and ironers
Specialty accessories and consumables
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.
Competitive landscape
Electrolux Professional Group is
one of the leading global players
in terms of sales, with a complete
offering for both the food and bev-
erage sector and the global laun-
dry equipment market. There are a
number of large global players in
these markets but in local markets
we also compete with significant lo-
cal players and companies focused
on individual product lines.
Laundry
• Alliance
• Girbau
• Jensen
• Kannegiesser
• Miele Pro
The 7 largest professional food
and beverage equipment companies
Company 1**
Company 4
Company 3
Electrolux Professional Group
Company 2Smaller companies
Company 5
USD 30bn*
The 7 largest
laundry companies
Company 1
Company 4
Company 3
Electrolux
Professional
Group
Company 2
Company 5
Smaller companies
USD 2.8bn*
* 2022 markets, own company estimates. ** Pro forma
Our strategic
foundation
Business
segments
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risk management
Financial
information
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information
Contents
P. 24Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Customers
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Customers
Our end-customer base consists of large multinational,
regional chain and independent restaurants, catering
providers, leisure and accommodation facilities, health-
care facilities, customer-operated laundries, schools
and universities, as well as small businesses and large
industrial customers.
Staff canteens
Pubs & bars
Gyms
Manufacturing
industry
Fast-food
restaurants
Laundry rooms
in apartment
buildings
Beauty salonsSports halls and
sports clubs
Cafés
Train stations
Elderly care homes
School canteens
Supermarkets
Hotels
Laundromats
Gourmet restaurants
Hospitals
Swimming baths
Fire stations
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 25Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Customers
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Addressing customer needs
> Simplification, improved 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 labor shortages post coronavirus pandemic
> Reliability of the equipment
> Ergonomic and human-centric design
> Enhanced hygiene demands
Long-standing relationships
As a food, beverage, and laundry equipment
provider we generally maintain long-stand-
ing 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 27.
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 laundries, and coin-ops.
Large chains 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
refurbish a larger number of branches, 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 cus-
tomers 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
essential, and one of the key differentiators
and competitive advantages of Electrolux
Professional.
Our substantial investments in research
and development drive the production of in-
novative equipment and ensure the company
is well positioned to serve its global customer
base. Read more about R&D on page 13.
Distribution per customer segment*
Consumer and customer operated laundries 17%
Hospitals and elderly homes 10%
Restaurants 14%
Business, Industry and Transport 11%
Public institutions 6%
Restaurant chains 13%
1% Others
Hotels 12%
Bars and cafes 5%
Retail and convenience stores 7%
Laundry
Commercial laundries 4%
*Figures are partially estimates since Electrolux Professional
do not always have information about the end customer.
Food & Beverage and Laundry Food & Beverage
In 2022, sales to restaurant chains has increased
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 26Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sales
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Sales
Our products are mainly sold through a global network of dealers and distributors but sometimes
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. Project sales form
the rest of our sales. These are full installations such as a launderette or a fully equipped restaurant
kitchen that needs a complete refurbishment as well as new builds.
Channels to market - Food & Beverage
Our products are normally sold in three different ways:
Sales via dealers/distributors
A distributor or dealer buys our ready-made products
without any specific customer specifications. Normally
we keep track of the products through the dealers or
through our service-partners who perform installa-
tions, commissioning, warranty activation, service, and
maintenance. The distributors/dealers sell the solutions
to end customers (such as a restaurant chain or a
launderette).
Customized products via dealers/distributors
The end customer deals directly with us regarding their
product needs. 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 specifica-
tions 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 distri-
bution infrastructure is not well developed.
Digital sales
Our partners can now also place orders on our OnE
platform, a customer portal combining e-commerce,
service digitization and connectivity, that was launched
in more than 15 countries during 2022. It is a seamless,
one-stop, self-service way for customers to interact
with us. From this self-service portal, partners can place
MANUFACTURERS SELLERS RE-SELLERS
Direct Sales
Electrolux Professional
Independent Reps
END-USER
Dealers
Distributors
Independent
Institutional
Chains
orders for products, consumables and spare parts,
track shipments in real time, search for documentation
or products, and digitally interact with us for any sup-
port case which can be monitored through a ticketing
system. In addition, they can see the status and use of
their connected products.
SERVICE CHANNEL
Spare parts, Accessories
and consumables
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 27Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Customer Care
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Customer Care
Electrolux Professional Group offers
Customer Care in over 110 countries
via 2,200 service partners in a hybrid
model of own service technicians
and contracted service partners.
Detergents
In addition, performance-enhancing
consumables, including eco-
certified detergents, are developed
and sold under the Electrolux
Professional brand. These provide
a high level of quality, safety, and
effectiveness. 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
Spare parts kits are sets of spare
parts for the most common repairs
and maintenance needs, collated
in one box. Spare parts is the larg-
est part of Customer Care sales.
The maintenance and spare parts
kits contain all the preventive
maintenance parts to service the
equipment according to the main-
tenance schedule in the conditions
of normal usage. We also offer
refresher kits for longer service life
of our equipment.
Two Pairs of Eyes
Through Two Pairs of Eyes, we pro-
vide our customers remote guid-
ance with a seamless connection
between their field service engi-
neers and our technical experts.
Essentia - the heart
of Customer Care
All these services are brought to
market under a differentiated port-
folio – Essentia.
The Essentia service offering is
built on the basis that the Original
Equipment Manufacturer is best
suited to understand and handle
requirements for supporting the
efficiency and long life of its own
equipment. By offering sustainable
upgrade solutions to the market-
place we also ensure the initial cus-
tomer investment in our products
endures for a longer time.
Service Network
2,200 authorized service part-
ners providing a unique service
network to make our custom-
ers’ work-life easier, supported
by a full range of genuine
spare parts and digitally aug-
mented tools to ensure faster
troubleshooting and issue
resolution.
Service Agreements
Choice of flexible, tailor-made
packages, based on the
customer’s business needs, of-
fering a variety of maintenance
and support services through-
out the customer ownership
lifetime.
Original Accessories
& Consumables
Quick dispatch of original
accessories and consumables
rigorously tested by Electrolux
Professional experts to ensure
durability and performance of
customer equipment.
To maintain the highest customer experience
throughout the ownership period of professional
equipment, Customer Care assists customers
with support services and products throughout
the whole lifetime of customer ownership.
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 28Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our markets
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
EUROPE
One of the leaders in both Food, Beverage
and Laundry, with strong brand recognition.
Share of Group, 2022
58%
AMERICAS
Well-positioned in Food, Laundry,
and Cold Beverages in the US.
Share of Group sales, 2022
29%
APAC
One of the leaders in Laundry
and in Food & Beverage in China/
South-east Asia with strong brand
recognition in hotels and restaurant
segments 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, 2022
13%
Europe
In Europe, we have 24 sales com-
panies throughout the continent.
The largest countries are Italy,
France, Sweden, and Germany.
80% of sales are handled via dis-
tributors and agents. 20% of sales
are served by our own sales orga-
nizations, mainly via key accounts
and large projects.
Our business priority is to lever-
age our strong market presence in
Europe, to continue to grow both in
the markets where we are well po-
sitioned, and in the markets where
we see additional opportunities for
growth, such as in the UK, France
and Germany.
Americas
In 2022 Electrolux Professional
Group grew significantly in Food
in the US after the acquisition of
Unified Brands. In the Americas,
large chain accounts, including
our main distributor within Laundry,
are served through a direct-sales
team while the broad institutional
markets such as schools, health-
care, institutions, and independent
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 twelve sales compa-
nies in the region. The majority of
sales are handled via an indirect
distribution network, supplemented
by some of our own sales activities
when needed.
Our markets
Well-positioned in attractive markets
Electrolux Professional Group´s two reportable
segments Food & Beverage and Laundry includes five
business areas focused on customer categories and
geographies: Food Europe, Food Americas, Food APAC
& MEA, Beverage & Food Preparation, and Laundry.
Our strategic
foundation
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 29Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Marketing and brands
Operations
& our people
Introduction Global trends
& markets
3
Global trends
and markets
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
Global trends affecting
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
Marketing
and brands
Tailored marketing strategy
backed by global strength
Electrolux Professional’s marketing
efforts are tailored to each geog-
raphy and distribution channel.
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 merchandis-
ing, digital marketing, and market-
ing at a variety of industry events.
Brands
Electrolux Professional Group is our
corporate brand that is used when
presenting the company to external
stakeholders.
Our main business brand (“master
brand”) is Electrolux Professional,
which includes all categories within
Laundry, Food and Beverage.
In addition to our master brand,
we have specialty brands to gain
access to specific markets and cat-
egories. These are locally managed
brands, which have high brand
awareness and legacy amongst
the customers in their markets and
channels. The table here illustrates
these “specialty brands”, as distinct
from the “master brand”, Electrolux
Professional.
Introduction of Electrolux
Professional Group brand
To clarify the roles of Electrolux
Professional as both a company,
and a business brand, the corporate
brand Electrolux Professional Group
is being introduced in 2023. This will
also support 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 will add
a “part of Electrolux Professional
Group” when needed and to give
support from the strength of being
part of a larger Group. At the same
time, the introduction of the corpo-
rate brand will distinguish between
the company (Electrolux Professional
Group) and the main business brand
(Electrolux Professional).
Brand overview
Categories Segment Geographical market
All categories, full solution
The master brand is
approximately 60% of the
company sales within Food,
Beverage and Laundry
North America, Latin America,
Europe, APMEA
High-end Cooking
Food
North America, Latin America,
Europe, APMEA
Cooking, Dishwashing,
Refrigeration
Food Latin America, Europe, APMEA
Cooking
Food North America
Cook/Chill
Food North America
Food Preparation
Food Europe, APMEA
Dishwashing
Food North America, Europe, APMEA
Ware- and vegetable
washing
Food North America
Refrigeration/Preparation
Food North America
Refrigeration
Food Europe
Refrigeration
Food North America
Ventilation systems,
conveyors and utility
distribution solutions
Food North America
Drip Coffee,
Powder Instant Coffee
Beverage North America, Latin America
Espresso, Bean-to-Cup
Beverage North America, Europe, APMEA
Cold Beverages, Slush Ice,
Ice Cream
Beverage
North America, Latin America,
APMEA
Cold Beverages, Slush Ice,
Ice Cream
Beverage Latin America, Europe
Laundry
Laundry North America, Europe
Laundry
Laundry Europe
Our strategic
foundation
Global trends
& markets
Sustainability Governance &
risk management
Financial
information
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information
Contents
P. 30Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Business segments
Operations
& our people
Introduction Business
segments
4
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Food & Beverage
31
Laundry
35
Business segments
Our strategic
foundation
Global trends
& markets
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 31Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Food & Beverage
Operations
& our people
Introduction Business
segments
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
4
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.
66%
Food & Beverage, share of Group net sales
Our strategic
foundation
Global trends
& markets
Sustainability Governance &
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Financial
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Contents
P. 32Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Food & Beverage
Operations
& our people
Introduction Business
segments
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
4
Market size and growth
The total market for Food & Bever-
age equipment in 2022 is estimated
at approximately USD 30bn*. Ac-
cording 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 coronavirus
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 that affected
the hospitality industry heavily. In
terms of sales, but not volumes,
the global market returned to
pre-pandemic levels during 2022.
Besides this strong growth after
the pandemic, growth has been
affected by the push for energy
efficiency, increase in food safety,
environmental and food waste
requirements, a focus on healthy
products and menus, the drive for
automation and workforce optimi-
zation, product innovation, and the
rising importance of data manage-
ment and digitalization.
Our sales of food and bever-
age 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
USD
24bn
Beverage
USD
6bn
FOOD & BEVERAGE
USD 30bn
Food & Beverage equipment market 2022*
Food
The food market is seeing an in-
creasing 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 operations, requiring
versatile machines.
The supply chain issues and later
inflation experienced during 2021
and 2022 forced many restaurants
to downsize or increase prices on
their menus, as well as change the
composition of their menus to make
things cheaper.
Key drivers in the professional food and beverage market
Change in 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 equip-
ment. In addition, 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.
The cost mainly includes energy, maintenance, and food-waste related costs,
as well as labor costs for operating the equipment.
Connectivity
Product automation and connectivity will be able to 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 emerging. 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.
Our response
We have a wide range of multi-functional products for Food service & Beverage which allows
the operator to adapt easily to new trends. SpeeDelight, SkyLine Cook & Chill, SafeBox Hold,
and LiberoPro are excellent examples of our solutions that meet increasing demands for top
performance, flexibility, and mobility.
Our response
All our newly developed products significantly reduce the total cost of ownership and usage of
energy, water, and chemicals for the operator. This enables us to shorten the payback time of the
investment for our customers. Food waste is a significant cost factor, but the Thawing Cabinet and
the Cook & Chill system allow our customers to produce only the food they consume.
Our response
The OnE Connected solution allows users to monitor their entire kitchen or laundrette. It makes data avail-
able to our customers so that they can optimize the production flow and reduce the cost of operation.
Our response
Our beverage solutions have many practical benefits such as insulated bowls for visual slush
machines, and easy cleaning and operation for the Bubblers range. Our equipment ensures energy
savings, high performance, and efficiency.
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 aver-
age 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 attrac-
tive 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.
* Own company calculations and estimates
Our strategic
foundation
Global trends
& markets
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risk management
Financial
information
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information
Contents
P. 33Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Food & Beverage
Operations
& our people
Introduction Business
segments
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
4
Markets and customers
In Europe sales are particularly sig-
nificant 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, and the acquisitions in the
coffee and beverage 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 Amer-
icas. Beverage in the Asia-Pacific
& Middle East and Africa region is
focused on the QSR and Conve-
nience Store segments – building
on a strong history in cold bever-
ages in South-East Asia.
In the Americas the focus within
Food and Beverage has tradition-
ally been on fine dining, projects
and schools, and major chains.
2022 performance
Sales development
In 2022 Food & Beverage sales
were SEK 7,290m (4,704), an in-
crease of 55.0% compared to the
same period last year when sales
were still affected by the corona-
virus pandemic. Organic sales
increased by 17.4% (14.3) and cur-
rency had a positive effect of 10.3%
(–4.7). The acquisition of Unified
Brands contributed by 28.3% and
the divestment of the Russian oper-
ations had an impact of –0.9%.
Earnings development
Operating income excluding
amortization of intangible assets
(EBITA) amounted to SEK 679m
(299), corresponding to an EBITA
margin of 9.3% (6.4). Operating in-
come amounted to SEK 542m (244),
corresponding to an operating
margin of 7.4% (5.2).
0
500
1,000
1,500
2,000
Q4Q3Q2Q1Q4Q3Q2Q1
Net sales and EBITA margin
Sales EBITA margin
SEKm
%
0
5
10
15
20
20222021
EBITA margin
9.3%
(6.4)
EBITA
SEK 679 m
(299)
Net sales total, Food & Beverage
SEK7,290m
(4,704)
Our strategic
foundation
Global trends
& markets
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risk management
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information
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Contents
P. 34Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Food & Beverage
Operations
& our people
Introduction Business
segments
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
4
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
PREPARATIONS
• 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
• Waste and dishware
handling systems
• Accessories
DISHWASHING
• Cabinets and
cupboards
• Work tables and
shelves
STAINLESS STEEL
FABRICATION
Products for food Products for beverage
Our strategic
foundation
Global trends
& markets
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 35Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Laundry
Operations
& our people
Introduction Business
segments
4
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Laundry
Laundry provides equipment 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.
34%
Laundry segment, share of Group net sales
Our strategic
foundation
Global trends
& markets
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risk management
Financial
information
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information
Contents
P. 36Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Laundry
Operations
& our people
Introduction Business
segments
4
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Market size and growth
The total market for professional laundry equipment is esti-
mated to be approximately USD 2.8bn* in 2022. Prior to the
Corona virus pandemic, the market for global professional
laundry equipment experienced annual growth of 2–3%, and
this is expected to continue over the medium term. Already at
the end of 2021, the market was back to pre-pandemic levels
and has seen good growth in 2022.
Market growth is mainly being driven by an increased focus
on product sustainability and efficiency, energy labelling and
certification 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 intro-
duced, major equipment replacement cycles are expected
to take place. Customers are expected to demonstrate more
price flexibility as a result of lower ownership costs.
Customer service and after-market support are key com-
petitive factors.
Two major market segments in Laundry
The Laundry segment is divided into two main areas; the first is comprised of cus-
tomers 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
• Marines
• Sport & Leisure
• Public services
• Factories
• Prisons
Special
On-Premise
Laundry
• Hotels
• Restaurants
• Catering
HoReCa
(hotels, restau-
rants, catering)
• Small hotels/
B&B’s
• Hairdressers
• Beauty shops
• Sport centers
Small
businesses
PROFIT CENTER
• Heavy duty
• Commercial
laundries
B2B
• Dry-cleaning
shops (chains
and privately
owned)
B2C
• Coin-ops
• Laundrettes
• Camping/
Marinas
Self service
• Apartment
housing
laundry - route
operations
• Student
houses
• Dormitories
Multi
housing
COST CENTER
Main sub-segments per segment Main sub-segments per segment
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.
Our response
Our innovation and development has long been focused on continuous improvement of our
appliances to increase productivity and reduce the total cost of ownership. This means reduced
environmental impact through lower water, electricity and detergent consumption. The ability to
connect our machines in a digital eco system also makes them more efficient, and helps customers
gain a more flexible and efficient workflow.
* Own company calculations and estimates
Our response
Our Laundry products are often the best – or among the best – in the industry in terms of
environmental impact: Focus is on lower consumption of water, electricity, and detergents.
We also offer a detergent that is gentler on both the environment and textiles.
Our response
We provide rental solutions in some markets, offering everything the customer needs for hassle-free
operations – equipment, accessories, and cleaning products.
Our strategic
foundation
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& markets
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information
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Contents
P. 37Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Laundry
Operations
& our people
Introduction Business
segments
4
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Markets and customers
In Europe we are one of the lead-
ing laundry equipment players with
the most significant sales being in
Sweden, where the majority of
customers are property owners
with laundry rooms.
During and after the pandemic
we have seen an increased focus
on hygiene, in particular within
elderly care homes and hospitals,
which have contributed to our sales
growth.
In the Asia-Pacific, Middle East
and Africa Region, sales come from
an equal mix of launderettes, hotels
and recreation, and elderly care
homes and hospitals.
Our business in North America
has traditionally been heavily
weighted towards laundromats,
with good growth also in the other
segments. We are one of the mar-
ket leaders in the US.
2022 performance
Sales development
Net sales in Laundry was SEK
3,747m (3,159) in 2022, which is
an increase of 18.6% compared to
the previous year. Sales increased
organically by 16.2%, and currency
had an effect of 3.2%. The divest-
ment of the Russian operations had
an effect of –0.7%.
Earnings development
Operating income excluding amor-
tization of intangible assets (EBITA)
amounted to SEK 608m (492),
corresponding to an EBITA margin
of 16.2% (15.6). Operating income
amounted to SEK 590m (475), cor-
responding to an operating margin
of 15.7% (15.0)
Net sales and EBITA margin
Sales EBITA margin
SEKm
%
0
200
400
600
800
1,000
1,200
Q4Q3Q2Q1Q4Q3Q2Q1
2021
2022
0
5
10
15
20
EBITA margin
16.2%
(15.6)
EBITA
SEK 608 m
(492)
Net sales total, Laundry
SEK 3, 747 m
(3,159)
Our strategic
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Global trends
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Contents
P. 38Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Laundry
Operations
& our people
Introduction Business
segments
4
Business
segments
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
Food & Beverage
Laundry
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainable laundry solutions
Investment in equipment is a smaller portion of the overall ownership cost
When purchasing a washing machine, the upfront investment cost 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.
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
• Tumbler dryers
• Drying cabinets
• Semi-professional dryers
DRYING
• Ironers
• Finishing machines
IRONING
Laundry products
Estimated total cost of ownership of a washing machine over its lifetime
Washing detergent and
other chemicals
35%
Energy
50%
Water
5%
Equipment
investment
10%
Calculation is based on a typical washer (20 kg) and typical prices within Europe. Note that the figures differ depending on
equipment, water, energy, and detergent costs in different markets. The figures refer to 2022.
Lower cost of ownership and
reduced environmental impact
for customers
We endeavor to provide the most
efficient laundry equipment on the
market. Our prime reasoning is
that an investment in our products
provides long-term savings by
reducing the cost of ownership and
decreasing the customer’s climate
footprint. New equipment also
increases customer productivity
and gives customers whose main
business is laundry an opportunity
to increase revenues. Our most
productive heat pump dryers in the
Line 6000 range provide energy
savings of up to 60% and have the
shortest drying time in the market.
All new washing machines are
equipped with the ability to have
automatic dispensing for deter-
gent, fabric softeners, and other
chemicals. Combined with the
Automatic Savings functionality
this can reduce detergent con-
sumption by up to 60%. We have
also developed lagoon® Advanced
Care, a water-based alternative
to dry-cleaning for laundering
sensitive garments such as leather
and shoes.
All product development ex-
pands on an existing intelligent
and modular product range of
appliances that can be connected
together for real-time and import-
ant user and performance data
provided to the end-user.
High level of user friendliness
and ergonomic certification
As washing equipment is an im-
portant component of the working
environment and customer expe-
rience for many, ergonomically
designed washing solutions with
ergonomic certification are an im-
portant part of our laundry product
innovation efforts. Professional
operators who work in commercial
laundries, and in institutions and
hotels with launderettes, load and
unload thousands of kg of washing
every day.
The new, intuitive, user-friendly
display simplifies the choice of
washing program, needs no spe-
cific language skills, and facilitates
smarter energy and water con-
sumption, fully automatically.
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foundation
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Business
segments
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Contents
P. 39Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Operations & Our people
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our production
40
Quality
43
Logistics
43
Purchasing
43
Our people
44
Operations & Our people
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 40Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our production
Operations
& our people
Introduction
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
5
Our production
The Group’s manufacturing units are organized mainly 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, with a significant potential to grow.
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
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information
Contents
P. 41Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our production
Operations
& our people
Introduction
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
5
Operational excellence
We have been focusing on agility in
our supply chain, resulting in a nor-
mal, standard manufacturing lead
time of three days, from production
to ready-to-deliver, for a significant
portion of our products. However,
during 2022 lead times were often
longer due to the shortage of
components as a result of global
uncertainties after the pandemic
and the war in Ukraine.
Our ability to adapt the produc-
tion capacity and structure of our
plants to customer demand, and
establish network abilities between
the sites, is key to maintaining con-
trol and generating cost savings.
Our network is built on common
standards and methods, based
on a world-class manufacturing
framework. The tools and the logic
are retained through this frame-
work, from choosing the right
priorities to creating tangible and
measurable results with a focus on
sustainability, customer satisfac-
tion, 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 modulariza-
tion are key factors for achieving
the highest level of customization
at the lowest cost and use of re-
sources. The modularization model
is based on product design and
creates 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.
Read more in the Sustainability
report.
Climate-neutral
operations by 2030
Sustainability is a key part of the
overall strategy and day-to-day
operations of our company. We
want our solutions and operations
to contribute to a more sustain-
able society and our ambition is
to become climate neutral in our
industrial operations by 2030.
ISO 9001
100%
ISO certification – share of production volume covered by third-party certification*
ISO 14001
98%
ISO 50001
75%
ISO 45001
75%
* Excluding Unified Brands’ production volumes.
All our manufacturing sites are
progressing with their sustainability
efforts. This includes a systematic
approach for 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 engagement
from our employees. One import-
ant future priority is to reduce
our impact from waste within our
manufacturing.
During 2022 Unified Brands man-
ufacturing sites has been included
in the environmental data, which
gives an increase of total consump-
tion reported. With a recalculated
baseline we have reduced energy
consumption by 2% and water
consumption by 10% from previous
year.
We are currently operating with
a 37% share of renewable energy.
All manufacturing sites in Europe
operates with renewable electric-
ity. For sites outside Europe focus
is to increase share of renewable
electricity.
Our strategic
foundation
Global trends
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Business
segments
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risk management
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information
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Contents
P. 42Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our production
Operations
& our people
Introduction
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
5
Vicksburg
Weidman
Rayong
Shanghai
Ljungby
Vallenoncello
Spilamberto
Sursee
Troyes
Aubusson
Saint-Vallier
Carros
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
Manufacturing sites
Food solutions
Beverage
Laundry
Global manufacturing site
Our strategic
foundation
Global trends
& markets
Business
segments
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information
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Contents
P. 43Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our production
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Quality
During 2022 we significantly im-
proved the quality of our products,
and product complaints were at a
record low level.
Our approach
Electrolux Professional’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 expecta-
tions. According to our quality
policy, we are committed to mar-
keting products that are of such
high quality that this alone would
be a defining reason why custom-
ers choose our products over the
competition, whether it’s a first-time
buy, recommendation, or repur-
chase.
Our framework
The Quality framework is focused
on making quality an integrated
part of the entire organization.
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 deliv-
ered through effective and prompt
customer order management, an
efficient global planning organiza-
tion, as well as a comprehensive
global distribution network, includ-
ing efficient management of finished
goods and spare part inventories.
This involves generating a mindset
that focuses on preventative and
proactive activities – to the point
of identifying unknown problems
before they even occur, rather than
a reactive approach.
The Quality framework supports
the use of standardized design
tools and practices as well as
performing product and process
audits.
The Quality framework is based
on the “power of zero”, meaning
zero quality defects, zero service
call rate, and zero safety issues.
Purchasing
Purchased materials represent
about 64% of our product costs.
Steel, both austenitic and carbon
steel, and mechanical components
are traditionally the largest com-
modities, while electronics have
increased substantially in recent
years.
Mitigating risks
In order to mitigate potential neg-
ative impacts due to price fluctua-
tions and to secure availability, we
negotiate annual prices in con-
tracts with the main producers for
the most important raw material,
such as steel. The vast majority of
our purchases are direct materials
such as mechanical, chemical, and
electrical components.
Electrolux Professional is
strategically focused on sourcing
raw materials from several suppli-
ers 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
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.
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 sup-
pliers not only on their capability
to deliver today, but also on their
ability to be partners in the journey
of continuous innovation.
Purchasing in 2022
In 2022, expenditure on direct ma-
terial and products totaled approx-
imately SEK 4.3bn, which accounts
for approximately 69% of total
purchasing. Raw material prices
increased substantially during 2022
due to higher world market prices.
This is a result of global uncertainty
after the pandemic and the war
in Ukraine. In addition, the global
Logistics hubs
The outbound infrastructure is
organized into four logistics hubs
that currently serve 110 countries.
The two main global logistics hubs,
distributing more than half of all
products, 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 mar-
ket in North America.
shortage of components has cre-
ated much higher costs as we have
been forced to buy more on spot
markets.
The direct materials bought in
2022 were primarily mechanical
materials such as steel, aluminum,
and cast iron, amounting to
approximately 36% of total direct
material expenditure.
Purchase categories
direct materials, 2022
Mechanical 53%
Electronics 33%
Chemical 14%
Our strategic
foundation
Global trends
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segments
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Contents
P. 44Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our people
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our people
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.
Europe
66%
Employees by region
Asia-Pacific,
Middle East,
Africa
15%
Americas
19%
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Governance &
risk management
Financial
information
Other
information
Contents
P. 45Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our people
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
On July 1, 2022, Electrolux Professional changed its organization
to a more business-focused structure, to enable faster execu-
tion of the company’s strategic priorities. The new organization
has five Business Areas focused on customer categories and
geographies: Food Europe, Food Americas, Food APAC & MEA,
Beverage & Food Preparation, and Laundry. The businesses are
fully integrated with end-to-end responsibility including product
development, manufacturing, and sales. Some central function
resources at Group level have been transferred to the Business
Areas, which are fully responsible for the business, to enable a
complete customer-centric business perspective.
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. Our Guiding Principles were initially implemented in 2021
and continued actions to drive the cultural evolution were taken during 2022.
Be customer obsessed
Our customers are at the heart of everything
we do. We recognize our customers as both
our external end customers, as well as the
colleagues that are impacted by our actions
and that benefit from our work – and we
value both.
Build trust
We believe that trust is an essential element
both for the business and for our people to
thrive. We welcome healthy debates and
honest conversations in which everyone has
a voice and is encouraged to use it, regard-
less of hierarchy. 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 de-
cision-making that inspires progress and
growth. We welcome new perspectives and
ideas and approach them with an open
mind, and we appreciate and respect our
cultural differences and embrace all people –
irrespective of race, ethnicity, or gender.
Act sustainably
We consider the development of our people
to be as important as preserving our envi-
ronment, and we take decisions that reflect
our efforts to build a better future. We aim
to reduce our negative environmental and
social impact by developing innovative and
sustainable solutions to enable future gener-
ations to live more sustainably.
Annual Survey
More than 3,300, 88% (91) of all
employees expressed their opin-
ions through the EES in October
2022. The Satisfaction rate, High
Performance Organization index
rose to 73 (71), excluding Unified
Brands employees. With these
comparable numbers it reflects
a positive rise in total employee
engagement.
For the first time the employees in
Unified Brands were included in the
survey, accounting for more than
15% of the total invited population.
With Unified Brands’ employees
included, the index was 70.
Since previous survey, progress
has been made in the areas of
employee commitment, customer
orientation, familiarity with strategy,
and employee development.
Based on the results of the EES
in 2021 the following areas were
prioritized for improvement: people
development, leadership, collab-
oration, and renewal climate, and
the results of the 2022 EES indicate
that they all developed positively.
Employee surveys
We conduct an extensive, company-
wide Employee Engagement Survey
(EES) annually, as well as quarterly
short satisfaction surveys, Employee
Net Promoter Score, (eNPS). The
eNPS is a one-question survey
measuring employee satisfaction to
assess current sentiment towards
the company. The annual Employee
Engagement Survey provides more
long-term and deep-dive insights
about the organization.
New business-focused organization from July 1, 2022
Employee satisfaction
survey rate,
satisfied or very satisfied
%
Excl. Unified Brands
Incl. Unified Brands
76%
0
20
40
60
80
20222021201920182016
76%
73%
71%
73%
70%
Our strategic
foundation
Global trends
& markets
Business
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Contents
P. 46Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our people
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
In 2022, we conducted eNPS three
times among non-production
employees with results remaining
stable and indicating good em-
ployee satisfaction levels.
A new and more flexible
work-life
As countries have opened up
post corona virus pandemic-lock-
downs we decided to take a stand
on how flexible we would be with
regards to the choice of work-
place (e.g. working from home).
We decided to be bold and to
show trust in our employees.
Those whose work activities allow
may choose where they work
a 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 col-
laboration, as well as for personal
and informal interactions.
Development Talks
Development Talks originated in
the long-standing performance
management process, in which
performance objectives are set
once per year and evaluated at
the end of each calendar year.
During 2022 we implemented an
evolved version of this process
which underlines the criticality of
employees’ development to the
company’s continued success.
It also captures the new way of
working with our focus on prior-
itization and deliverables, and
encompasses regular check-ins
to monitor progress and fine tune
priorities.
Development Talks is the
process to ensure accountability
from and contribution by each
employee, underpinned by the
principle 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. The
process encompasses regular di-
alogues between employees and
their managers, on key business
priorities, how employees can
contribute, and on opportunities
for employees to do things differ-
ently to strengthen their skills to
increase their impact and secure
their long-term success.
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 em-
ployees. In our annual Employee
Engagement Survey in 2022, 71%*
of our employees agree with the
statement “In my team, people
with diverse backgrounds, styles,
and approaches have equal
opportunities for development“,
which is an improvement of 1%-pt
since 2021. We monitor gender
diversity, and we have clear and
cascaded objectives to increase
gender diversity. All employees
are to be treated according to
their abilities and qualifications in
any employment decision, includ-
ing hiring, promotion, compensa-
tion, training, and termination. As
part of our commitment to having
a diverse and inclusive work-
place, 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 ap-
plying the Electrolux Professional
Code of Conduct.
Reporting misconduct
All employees can report conduct
that they believe, in good faith, to
be a violation of laws or our Code
of Conduct, to their manager or in
accordance with locally estab-
lished procedures. Misconduct
and violations of the Code of
Conduct or Group policies can
also be reported through the
third-party provider’s web tool,
called EthicsPoint. Anyone report-
ing a violation shall, to the extent
legally permissible, have the pos-
sibility to remain anonymous.
During 2022 all cases reported
through EthicsPoint were thor-
oughly assessed and as required
investigated under the instruc-
tions by the Code of Conduct
Steering Group consisting of
the CHRO, Head on Internal
Audit and General Counsel and
reported to the Audit Committee.
Most complaints were related to
HR related topics and workplace
conduct.
We also measure incidents of
discrimination and harassment
through our annual Employee
Engagement Survey (EES). Through
these results actions are planned
to address culture and behaviors
in the locations we deem neces-
sary.
* excluding Unified Brands.
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P. 47Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our people
Operations
& our people
Introduction
5
Operations
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
Our production
Quality
Logistics
Purchasing
Our people
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Age distribution employees
<30
>50
11%
36%
30–50
53%
Gender distribution
Women
31%
Men
69%
Worker distribution
Production workers
43%
Non-production workers
57%
Leadership diversity
Women
26%
Men
74 %
A safe and healthy workplace
Knowing that our employees are
the single most important factor in
achieving long-term success, we are
committed to continuously develop-
ing a work environment that enables
sustainable performance and devel-
opment so that all employees can
deliver their best.
Our commitment to health and
safety goes beyond ensuring com-
pliance with rules and legislation.
The Group Workplace Directive
describes the minimum requirements
for environmental and working con-
ditions for all employees. According
to our annual Employee engagement
survey in 2022, 81%* of our employ-
ees agree with the statement “Health
and safety is always considered in
the decisions and actions taken in
my team”, which is unfortunately
a decline of 1%-pt from the survey
result in 2021.
Number of employees
On December 31, 2022 Electrolux
Professional Group had 4,022 em-
ployees in 33 countries. We have
twelve manufacturing sites including
R&D centers. The biggest countries
in terms of number of employees are
Italy, the US, and Sweden.
*excluding Unified Brands.
December 31, 2022
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P. 48Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainability Report
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainability Report
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.
myLaundry Concept Store -
our game-changing retail laundry experience is a premium
laundry solution that stands out from the crowd.
2022 activities
49
Our sustainability framework
50
Strategy and targets
51
Sustainable Development Goals
53
The climate challenge
54
Sustainable solutions
56
Sustainable operations
59
Ethics and relationships
63
Our strategic
foundation
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& markets
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segments
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information
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information
Contents
P. 49Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 2022 activities
Operations
& our people
Sustainability
Introduction
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
6
2022 activities
> Retained B-score in our second participation in
the Carbon Disclosure Project ranking (CDP).
> Sustainalytics, Morningstar, ranked the Group
with a low ESG-risk rating.
> Developed targets for reduction of Scope 1, 2
and 3 greenhouse gas emissions which have
been submitted to Science Based Targets initia-
tive (SBTi) for validation.
> Support to Red Cross donation drive for the
relief efforts in Ukraine.
The 2022 Sustainability Challenge
The 2022 Sustainability Challenge was an
activity to collect ideas from employees
across the organization.
More than 110 ideas were submitted
through the challenge. The innovation
and sustainability teams came together
to prioritize the ideas and selected eleven
finalists in six different action areas:
manufacturing, our facilities, distribution,
product use, post-use, and out-of-the-box.
Finally, the finalists pitched their ideas
in a “dragons’ den” style presentation
to management executives who then
selected the winner. The sustainability
challenge winner’s idea was the “second
life program”, an initiative for the install
base refurbishment of SpeeDelight. This
concept, and a selection of other finalists’
ideas, will be prototyped to validate
whether further implementation is valid.
> Application to participate in I-REC
organization, to increase share of
renewable electricity in Thailand
operations.
> To generate innovative ideas
adressing sustainability topics,
a company-wide Sustainability
challenge was introduced.
Read more on this page.
> Training for Purchasing team on
responsible mineral sourcing.
> Identification of climate-related
transition risks, physical risks,
opportunities, and their financial
impact in accordance with the
TCFD framework.
> Launch of products for increased
hygiene and sanitization, such as
the Safe Box Hold and the hygiene
&clean commercial Dishwasher line.
> During the year, several digital
campaigns was launched, pro-
moting our many energy saving
solutions such as Heat Pump dryers,
washing machines, and eco-friendly
detergents.
> Company-wide recognition of Prod-
uct and Operations Water improve-
ments on UN World Water Day and
of Gender diversity on International
Women’s day.
> Common activities on Environmental
day and Global Safety Day, rein-
forcing the importance of building a
positive health and safety culture.
Silver certified by EcoVadis
In 2022, Electrolux Professional Group was evaluated
for the first time by EcoVadis, a global provider of
business sustainability ratings. After assessment in four
areas: Environment, Labor & Human Rights, Ethics, and
Sustainable Procurement, Electrolux Professional Group
received a silver rating certification from EcoVadis.
Being EcoVadis certified allows the company to be
considered as a preferred supplier to high profile customers as sustainability
disclosures are increasingly becoming a requirement in their procurement
processes.
Our strategic
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Contents
P. 50Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our sustainability framework
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
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 indicators 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 53.
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.
Electrolux Professional’s mate-
riality assessment is based on the
magnitude of our social, environ-
mental, and economic impacts and
value generation for our stakehold-
ers. We gain a deeper understand-
ing of stakeholder expectations
through stakeholder dialogue,
presented on page 65.
Our guiding principles
Be customer obsessed Build trust Be bold Act sustainably
Read more on page 45.
Our sustainability commitment
We act according to our
ethical principles.
We constantly strive for
improvement throughout
our value chain.
We act fairly and commit to
the trust we are given by our
stakeholders.
Making our customers’ work-life easier,
more profitable – and truly sustainable every day
Mission
Strategic framework and materiality
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
Our strategic
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& markets
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segments
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Contents
P. 51Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Strategy and targets
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
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 ap-
proach, with an emphasis on improving
our environmental and social perfor-
mance every day.
Sustainability strategy
Our climate ambition for 2030
To become climate
neutral within our
industrial operations
by 2030.
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 2022:
The number of accidents resulting in lost
work time decreased in 2022, and the lost
time injury rate improved to 0.6 (0.7).
Comment on 2022 outcome
The lost time injury rate improved by 7%
compared with 2021. During the year we
have continued to address root causes of
accidents, and worked preventively with
near misses, unsafe acts, and improving
conditions at our manufacturing sites.
We have a zero tolerance for work related
accidents.
OUTCOME 2022:
The percentage of women
in all managerial positions was
26% (26) in 2022.
Comment on 2022 outcome
Gender diversity across managerial posi-
tions was unchanged compared to 2021.
During the year the company has carried
out activities related to diversity and inclu-
sion such as Guiding Principle workshop,
and education of hiring managers.
OUTCOME 2022:
Scope 1 and 2 CO
2
emissions in 2022
amounted to 6.2 kton
, which is -45% com-
pared to 2015 with recalculated baseline*.
Comment on 2022 outcome
The total emission has increased due to
the acquisition of Unified Brands in the US.
With a recalculated baseline*, the reduction
since 2015 is 45%. The decrease in 2022 is
mainly due to the increased share of renew-
able electricity in Rayong, reduced electric-
ity consumption in Louisville and Shanghai,
and reduced natural gas consumption in
Rayong and Vallenoncello.
Reduce CO
2
emissions
Scope 1 and 2 emissions from
our industrial sites
>
70%
by 2030 (base year 2019)
Climate target for 2030
OUTCOME 2022:
With a recalculated baseline* including
Unified Brands, reduction since 2019 is 29%.
Comment on 2022 outcome
Electrolux Professional Group will
continue to increase its share of renewable
energy focusing on reducing natural gas
consumption through electrification and
increasing share of electricity from renew-
able sources at sites located outside of
Europe. Remaining emission will be off-set
to reach climate neutral ambition.
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 rela-
tionships with the stake holders impact-
ed by our business, and demonstrate
our commitment through actions and
procedures.
Sustainability targets
* Recalculation has been done by distributing the first reported emission footprint backwards to previous years.
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P. 52Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Strategy and targets
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our Sustainability framework “The OnE Sustainable Partner” frames how we work with our
material sustainability topics. We perform impact analyses and strategic assessments, which
together with stakeholder expectations and dialogues 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 pages 56-58.
Sustainable solutions
Material efficiency
Customer health,
safety, and wellbeing
Responsible use of
resources
Operational excellence
drives sustainability.
Read more on pages 59-62
Sustainable operations
Occupational health
and safety
Environmental
management
Enabling business through
trust and relationships.
Read more on pages 63-65
Ethics & relationships
Ethical practices
Stakeholder
relationships
1
2
3
The OnE Sustainable Partner
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P. 53Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable Development Goals
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Other SDG’s 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 afford
able energy &
SDG 13 Climate action
We can make a difference
throughout our value chain
by developing energy-effi-
cient 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 improve-
ments in all our operations
to reduce the overall energy
demand and switch to renew-
able 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 developing 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 prod-
uct safety integrated in prod-
uct development, including
third-party certifications
• Drive employee engagement
• Zero tolerance for slavery,
trafficking, and child labor
• Respect labor rights (ILO
conventions)
SDG 12 Responsible con-
sumption and production
To reduce the environmental
footprint related to our prod-
ucts 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 dis-
charge to control quality and
destination
SDG 5 Gender equality
We value diversity and inclu-
sion and has 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
Electrolux Professional Group uses the SDGs as our compass to guide what
we do to contribute to a better society. We have identified six SDGs where we
believe we have a greater impact and opportunity to make a difference.
We believe that the SDG’s are good indicators of the priorities and challenges
that the world is facing.
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P. 54Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 The climate challenge
Operations
& our people
Sustainability
Introduction
6
A
A–
B–
C
C–
D
D–
B
CDP questionnaire
for climate change 2022
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The climate challenge
Electrolux Professional Group recognizes that actions related to climate
change mitigation are highly important and we support the ambitions
of the Paris Agreement. Our products and operations generate emis-
sions. This is why we believe we can make a difference by reducing
emissions stemming from both our operations and our products.
Morningstar Sustainalytics rating
During 2022* Electrolux Professional Group received
a top rating from Sustainalytics, Morningstar, con-
firming our strong position in ESG work compared
to our competitors.
* November 23, 2022
Ranking Industry
group
Machinery, no. 3 out
of 558 companies.
Global ranking
1,048 out of 15,478
companies.
13.8
ESG risk rate “low”
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P. 55Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 The climate challenge
Operations
& our people
Sustainability
Introduction
6
Scope 1, 2 and 3 emissions
Definitions according to the GHG Protocol:
Scope 1 – are emissions produced directly by an organization,
for instance through the combustion of fuels, e.g. natural gas
combustion for heating.
Scope 2 – includes indirect emissions generated through the
consumption of purchased energy, e.g. through electricity use.
Scope 3 – other indirect emissions due to the activities of an
organization, but that are produced and controlled by a different
emitter, e.g. emissions resulting from the use of a company’s products.
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Distribution of our carbon
footprint (Scope 1, 2, 3), %*
Scope 3
Scope 2
Scope 3
* Based on 2019 data, inlcuding Unified Brands
99.87%
0.04%
0.09%
Impacts and targets
Scope 1 and 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 aimed at reducing emissions
by 50% by 2025 (including con-
tributions from acquisitions made
in 2015–2019). During 2022 we ex-
tended our scope 1 and 2 emission
target aimed at reducing emissions
by 70% by 2030 with a base year of
2019 (including contributions from
acquisitions made in 2022). Re-
maining emission is planned to be
off-set to reach our climate neutral
ambition.
Our scope 1 and 2 emissions
constitute only a small portion,
approximately 0.1%, of our total
carbon emissions. Our carbon
emissions mainly stem from energy
consumption, but some are related
to the use of HFC (Hydrofluorocar-
bon) gases. For our European sites
the focus is to find alternative solu-
tions for natural gas and for other
sites we also focus on increasing
share of renewable electricity.
During 2022 we have worked with
setting up science-based targets
of scope 1, 2 and 3 emissions,
which have been submitted to the
Science Based Target Initiative for
approval.
Scope 3 emissions
Product use
During 2022 we investigated the
data regarding our greenhouse
gas emissions within scope 3 (year
2019). It showed that our scope 3
constitutes around 99.9% of our
total emissions. The data also high-
lights that our main climate impact
occurs during the product use
phase (~95%). The main source of
emissions within the usage phase
relates to the product’s energy
consumption. For many years,
we have had a clear strategy to
develop and offer energy-efficient
and low-consuming products. Read
more on pages 56–58.
As the energy cost often is a
significant part of the total cost
of ownership for our customers,
energy efficiency is also a core
argument for the customer’s invest-
ment decision.
As the company’s scope 3
emissions are highly significant, we
have also worked with setting up
science-based targets for scope
3, this has been submitted to the
Science Based Target Initiative for
approval.
Disclosure on climate
related topics
Climate change is already impact-
ing every region on Earth and fur-
ther warming continues to increase
the risk of extreme weather events.
The risk mitigation and transition
to a low carbon economy might
have an impact on all stakeholders
in society and have political, legal,
and technological impacts on or-
ganizations. During 2021 we issued
our first CDP disclosure (Carbon
Disclosure Project), receiving a
B rating in Climate Change and
during 2022 the company retained
the B score although the question-
naire this year was more extensive.
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 84.
Managing sustainability related
risks and opportunities
Fire, natural disasters, and ex-
treme weather conditions could
affect the Group’s manufacturing
capacity. All manufacturing sites
are surveyed annually through a
loss-prevention group standard
which includes risk management,
emergency procedures, business
continuity, and security. Read more
about operational risks on page 86.
Carbon taxes and/or borders
might impact material, energy, and
transportation costs, due to the
Distribution of our carbon footprint (Scope 3), %*
Capital Goods
Use of
sold products
0.2%
95.1%
Purchased
goods & services
3.7%
EOL treatment
of sold products
0.6%
Downstream
Transport & Distribution
0.2%
* Based on 2019 data, inlcuding Unified Brands
distribution of our carbon footprint.
Increased costs for energy might
further accelerate the demand for
energy-efficient and low energy
consuming products. We have
been investing in developing such
products for many years, and re-
source and material efficiency is an
integrated part of our sustainability
strategy.
There are very few energy-
labeling directives in the profes-
sional appliance industry. We
welcome more energy standards or
directives since they would improve
transparency and give customers
the opportunity to make informed
purchasing decisions.
In areas where water availability
and water supplies are becoming
more unpredictable or scarce, re-
quests 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.
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 56Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable solutions
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Sustainable solutions
We serve a wide range of customers globally,
from restaurants, hotels and launderettes to
healthcare and service facilities. Our solutions
consume energy, water, and detergents and
impact the users as well as the consumer of the
service they provide.
We want to set the pace within the
professional food, laundry, and
beverage industry through inno-
vation in sustainability and energy
efficiency, and offer connected and
digital platforms that meet customer
needs.
Product design influences or
determines numerous environmental
and social impacts throughout the
value chain. The choices made will
have an impact on materials use,
manufacturing, distribution, product
use, and end of life.
As our main environmental im-
pact occurs during the product-use
phase, integration of sustainability
into product development is essen-
tial to reduce our overall impact.
Focus on developing innova-
tive and sustainable solutions
For most of our products the main
climate impact occurs during the
product-use phase.
As there are few energy direc-
tives and certification schemes
externally, Electrolux Professional
has created an internal indicator
to reflect technical solutions that
can offer opportunities for carbon
reduction. The intention is to track
products that can technically sup-
port carbon reduction. For the pur-
pose of the indicators, we do not
benchmark against our competition
in the market as this might be pre-
carious due to the lack of objective
measurement methods. Further, we
1
Distribution of our
carbon footprint (Scope 3), %*
Capital Goods
Use of
sold products
0.2%
95.1%
Purchased
goods & services
3.7%
EOL treatment
of sold products
0.6%
Downstream
Transport & Distribution
0.2%
* Based on 2019 data, inlcuding Unified Brands
do not include technical solutions
that support, but do not actually
ensure, efficient user behaviors.
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 57Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable solutions
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
The majority 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 clos-
ing material loops, and reducing
waste. Material efficiency is sup-
ported by a circular transition.
Our products are used fre-
quently, either by professional
businesses or user-operated
within the sharing economy. By
designing durable and long-last-
ing products, material efficiency
can be increased. We invest in
lifetime testing and quality assur-
ance to verify that our products
meet durability and reliability
requirements. See more about
our approach to Zero defects on
page 43.
Service and maintenance
During the product lifetime we
offer a wide range of spare parts,
services, and customer support
that can help to prolong the prod-
uct lifespan. Maintenance and
service can also help to ensure
that efficiency and performance
are maintained during the prod-
uct lifetime. See more about our
service offering on page 27.
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 (Restric-
tion of Hazardous Substances)
compliant, meaning they do
not contain any toxic substance
prohibited under, or, if permissi-
ble, 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
contain recyclable materials, a
large proportion of materials
within our products (normally be-
tween 85–95%) can be recovered
and used in new material loops.
Our aim is to further improve on
material recovery and thereby
reduce our impact from waste
generation.
We have identified three priority areas
within sustainable solutions
Efficient and low-consuming
products
Our main environmental and
climate impact occurs during
the product-use phase. As our
products are used, they consume
resources such as energy, water,
and detergents. These resources
impact the product’s environmental
footprint as well as the customer’s
operating costs. The Group invests
significant resources into its global
R&D activities. During 2018–2022
the company’s R&D expenditure to-
taled an average of approximately
4.4% of net sales per year.
Around 95% of the company’s
climate impact occurs as the
products consume energy. For
many years, we have had a clear
strategy to develop and offer
energy-efficient and low-con-
suming products. This is positive
both for the environment and the
customers’ operating costs. Some
of our products use innovations
and technologies that help save
energy and/or reduce carbon
emissions.
As some of our products con-
sume water, we have set a target
to increase water efficiency within
96
97
98
99
100
2022202120202019
Product water consumption
efficency improvements
Dishwashing and Laundry category
Product water consumption
Efficency improvement since 2019
%
Efficient use of materialProduct performance and efficiency
1
our dishwashing and laundry
product ranges (base year 2019).
In 2022 we have improved water
consumption efficiency by 2.4%.
This corresponds to lifecycle
water savings of around 2 billion
litres of water (based on 2022
sales figures). Two billion litres of
water equal around 1.4 days of
consumption for the entire Swed-
ish population (ten million people
consuming 140 l/day). Read more
about our sustainable product of-
fering on pages 14, 38 and 56–58.
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 58Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable solutions
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Safety
Safety is critically important to
Electrolux Professional and its
customers as the use of our prod-
ucts frequently involves a mixture
of water, hot surfaces, moving
parts, and electricity. We aim to
ensure customer safety and re-
duce risks by focusing on product
safety starting from the product
development phase, passing
through a controlled production
process, and providing a profes-
sional maintenance service. In
order to improve the safety level
of our appliances, we also use
third-party laboratories to review
products from a safety standpoint.
Appliances are designed
considering ergonomic principles
around human functionality and
according to the user’s
natural workflow, to
achieve maximum ef-
ficiency with minimum
effort. We also started
to perform third-party
ergonomic certifica-
tions on certain prod-
ucts (ERGOCERT).
The safety performance of our
products, as well as their ability
to live up to our quality demands
and targets, is continuously
monitored. Alleged product safety
concerns are addressed through
a strict process that follows
international laws and standards,
including notification to the au-
thorities if need be. This process
is governed by the company’s top
management and those involved
are trained and their competence
registered.
Hygiene and Food safety
Our businesses include profes-
sional laundry or food service op-
erations in hospitality businesses
and within community businesses
such as elderly care homes or
hospitals. As people in these envi-
ronments can be more vulnerable,
hygiene and food safety are criti-
cally important. We offer solutions
for control and monitoring with
third-party certified disinfection
performance.
During 2022 we launched
the hygiene&clean commercial
Dishwasher line, the first full range
of dishwashing solutions within
the food service business that
disinfect and not just sanitize.
The hygiene&clean commercial
dishwasher line reduces the risk of
exposure to dangerous patho-
gens, making sure customers and
workers stay safe.
2022 saw the launch of the
SafeBox Hold, a unique holding
solution for take-away and de-
livery restaurants. Its “3-barrier”
technology guarantees hygiene
and sanitization for the customer.
Microplastics
Research has established 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 pre-
vent microplastics released from
textiles being emitted into the
oceans.
We are working intensively to
identify a microplastic filtration
technology suitable for a profes-
sional laundry setting. We have
therefore been developing meth-
ods to evaluate the performance
and the suitability of separation
technologies. For several years,
we have been actively partaking
in microplastic standardization
committees on a worldwide scale
to be able to contribute to the
development of meaningful and
strong standards – and based on
these standards meaningful and
strong legislation. This standard-
ization work is progressing fast
spurred on by the environmental
risks of microplastics. We are tak-
ing part in global efforts both as
a knowledge contributor and by
doing real-life tests of standard
test methods.
Customer health and safety
1
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 59Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable operations
Operations
& our people
Sustainability
Introduction
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
6
Sustainable operations
Electrolux Professional Group has a global presence and applies
the same high standards and principles of conduct globally: 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.
2
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 60Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable operations
Operations
& our people
Sustainability
Introduction
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
6
We place great emphasis on
reducing the environmental
impact of our business activities.
Our environmental management
focuses on reducing impacts
from resource use, emissions, and
waste.
The material topics within our
operations are integrated into
our Enterprise Production System.
The system provides a method
for minimizing all kinds of waste
and losses in our processes. Using
fewer resources is good for the
environment and for the long-
term profitability of the company.
Our Group environmental com-
mitment 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 chemi-
cals.
Environmental impact
and approach
A systematic environmental
approach is the basis for reduc-
ing our environmental impact.
Our greatest direct environmen-
tal impact relates to water and
energy consumption, wastewater,
waste, and transportation. From a
product life cycle perspective, the
main environmental impact occurs
in the product use phase at the
customer’s location.
The company complies with
environmental legislation and
is not involved in any environ-
mental disputes. As of December
31, 2022, the Group had man-
ufacturing operations in seven
countries. The Swedish factory
in Ljungby conducts notifiable
activities according to Swedish
legislation. Electrolux Professional
currently has no injunctions
under the Swedish Environmental
Legislation. The factories operate
according to national legislation,
apply for necessary permits, and
report to local authorities in ac-
cordance with applicable legisla-
tion. None of the operational sites
are managed in, or adjacent to,
protected areas or areas of high
biodiversity value, based on infor-
mation from the factories using a
Key Biodiversity Area (KBA) tool
for mapping location of sites.
All factories conduct systematic
environmental work that includes
action plans and monitoring of a
number of environmental aspects.
Our environmental work is an inte-
gral part of our operations and
environmental matters are taken
into account during decision mak-
ing. Evaluation and follow-up on
measures taken increases aware-
ness 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
and 60–62.
The GRI index for the sustain-
ability report can be found on
page 160–161.
ISO 14001 certifications
Our target is that all of our lo-
gistics, manufacturing, and R&D
operations should be third-party
certified according to ISO 9001
and ISO 14001. The Shanghai
manufacturing plant has yet to
obtain an ISO 14001-certification.
The Group is working towards
having the site certified in 2023.
Unified Brands will start the
process of being certified for ISO
14001 during 2023.
Our three largest manufacturing
sites (excluding Unified Brands),
covering around two thirds of our
production, are also ISO 50001
certified.
The sites report their results and
progress to the Group’s central
functions. Adherence to our cen-
tral policies is controlled through
internal and external audits.
See the ISO table in the Manu-
facturing section on page 41.
Environmental management
2
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 61Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable operations
Operations
& our people
Sustainability
Introduction
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
6
Energy
Electrolux Professional Group
places a strong emphasis on re-
ducing energy consumption in our
operations. We constantly monitor
our performance and have de-
veloped reduction targets. Our
improvement plan is based on
continuous improvement activ-
ities, projects, and investments
in energy-efficient equipment.
We are also active supporters of
the switch to renewable energy.
During 2022 a pilot project was
started to investigate solutions for
reducing natural gas consump-
tion through electrification at our
Italian sites.
Water
We use the World Wide 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 imple-
menting protective measures to
reduce our water footprint from
our operations.
Materials
We have adopted a restricted
materials list to restrict toxic and
hazardous substances in our
products and processes. Our
factories also work to reduce
material losses by improving the
scrap rate and using materials
efficiently. Read more on page 60.
CO
2
emissions
Scope 1 and 2 emissions in-
creased in 2022. The increase
was expected due to acquiring
two new sites in the United States.
For our European sites carbon
emissions are mainly driven by
gas consumption used for heat-
ing. The change in emissions for
these plants is related to heating
of the manufacturing sites. For
sites outside of Europe carbon
emissions are mainly driven by
electricity consumption. At the
Thailand factory an increase in
renewable electricity during 2022
has reduced carbon emission
from that site by 461 tCO
2
e (reduc-
tion by 64% from 2021 to 2022).
During the coming years, an im-
portant focus will be on increasing
the share of renewable energy at
our sites outside of Europe and
focusing on reducing natural gas
consumption through electrifica-
tion in our European sites. These
activities will enable us to better
decouple production volumes
from carbon emissions.
With a recalculated* baseline,
including acquisitions, emissions
have declined by 45% since 2015.
Our scope 1 and 2 emissions
constitute only a small portion,
approximately 0.1%, of our total
carbon emissions. Our carbon
emissions mainly stem from en-
ergy consumption, but some are
related to the use of HFC (Hydro-
fluorocarbon) gases. Our main
0
3,000
6,000
9,000
12,000
15,000
20222021202020192018
Scope 1 and 2 CO
2
emissions
Reported emissions
Recalculated baseline including acquisitions
tonnes
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 operations pose higher
risks, and we have established a
dedicated Health & Safety pillar
focused on maintaining a safe
work environment to protect our
employees. Within the Health &
Safety pillar we drive improve-
ments, develop health and safety
methods, and share best practic-
es and risks. Each manufacturing
site tracks and reports accidents
and incidents. Accidents results
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 conditions. Three
of our largest plants (excluding
Unified Brands) are third-party
certified according to ISO 45001.
We also collaborate with SOS In-
ternational to protect our people
during business travel.
0.0
0.3
0.6
0.9
1.2
1.5
20222021202020192018
Lost Time Injury Rate
Lost Time Injury Rate (LTIR) has im-
proved by 7% compared to 2021.
The total emissions have increased due to the
acquisition of two large sites in the US. With
a recalculated baseline* reduction since 2021
is 21%, and since 2015 it is 45%. The decrease
in 2022 is mainly due to the increased share
of renewable electricity in Rayong, reduced
electricity consumption in Louisville and Veet-
san, and reduced natural gas consumption in
Rayong and Vallenoncello.
Note: Numbers for 2021 have been corrected
*Recalculation have been made by distrib-
uting the first reported emission footprint
backwards to previous years.
Efficient use of resources Occupational health
and safety
challenge to achieving climate
neutrality is related to natural
gas use in some of our European
sites for scope 1, and purchased
electricity for our American
sites for scope 2. During 2022
we have worked with setting up
science-based targets for scope
1, 2 and 3, and these have been
submitted to the Science-Based
Target Initiative for approval.
2
Our strategic
foundation
Global trends
& markets
Business
segments
Governance &
risk management
Financial
information
Other
information
Contents
P. 62Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Sustainable operations
Operations
& our people
Sustainability
Introduction
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
6
Environmental KPIs
Share of renewable energy
Renewable
Non renewable
37%63%
0
10,000
20,000
30,000
40,000
50,000
20222021202020192018
Energy consumption
Energy consumption as reported
Recalculated baseline including acquisitions
MWh
Note: Numbers for 2021 have been corrected
* Recalculation has been done by distributing
the first reported energy consumption back-
wards to previous years.
0
1,000
2,000
3,000
4,000
5,000
20222021202020192018
Energy intensity
MWh
Consumption (MWh) per reported
SEKm net sales
Note: Introduction year of new acquisitions
in sustainability report and financial report
do not fully match. Unified Brands is includ-
ed from 2022.
Energy use
The total energy consumption has increased due to the
acquisition of Unified Brands, with two large sites in the
US. With a recalculated baseline* reduction since 2021 is
2% and since 2015 it is 13%. The decrease in 2022 is mainly
due to reduced electricity consumption in Louisville and
Shanghai, and reduced natural gas consumption in
Rayong and Vallenoncello. Electrolux Professional Group
will continue to prioritize energy reduction measures.
We are currently operating with a 37% share of
renewable energy. All manufacturing sites in Europe
operate with renewable 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. We will
continue to increase our share of renewable energy.
Water use
With a recalculated baseline* the water consumption has
reduced by 10% during the year. While this partially due
to the lower production volumes, there has nevertheless
been an improvement over the last few years.
0
20,000
40,000
60,000
80,000
100,000
120,000
20222021202020192018
Reported consumption
Recalculated baseline including acquisitions
m³
Water consumption
* Recalculation has been done by distrib-
uting the first reported water consumption
backwards to previous years.
0
2
4
6
8
10
12
20222021202020192018
Water intensity
m³
Consumption (m
) per reported
SEKm net sales
Note: the Introduction year of new
acquisitions in the sustainability report
and financial report do not fully match.
Unified Brands included from 2022.
Waste and hazardous waste
80% of our non-hazardous waste
generated is recovered while 9%
is sent to energy recovery.
11% goes to landfill or incineration
without energy recovery. 7% (7%)
of the waste generated is catego-
rized as hazardous waste.
Non-hazardous waste, 2022
Waste-to-energy
Recycling
9%
77%
Landfill
10%
Incineration (without energy recovery)
3%
Other recovery
1%
Share of hazardous waste, 2022
Hazardous
waste
Non-hazardous
waste
7% 93%
2
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P. 63Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Ethics and relationships
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Ethics and relationships
A good, sustainable relationship with stakeholders that are
impacted by our business is key to the delivery on our strategic
targets. We demonstrate our commitment, and seek stakeholder trust,
through a number of 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.
3
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P. 64Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Ethics and relationships
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Human rights statement
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 iden-
tify and remediate any negative
impact on people that is a direct or
indirect result of our operations.
We do not tolerate child labor,
forced labor, discrimination,
harassment, or abuse. We are com-
mitted to decent working hours and
compensation, freedom of associa-
tion, 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 accidents and illness. We aim
to have an open and transparent
dialog to engage with employees
directly and, when applicable,
their representatives.
Anti-corruption, bribery, and
unethical business
We do not tolerate corruption,
bribery, or unethical business
practices in any form. All opera-
tional units and suppliers, and their
employees, must refrain from offer-
ing, giving, demanding, or receiv-
ing bribes or any other improper
benefits.
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 coun-
try, and to be fair and resolve dif-
ferences in opinions with local tax
authorities and other governmental
organizations in a constructive and
positive manner.
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
company. Our online platform,
EthicsPoint, where employees can
report serious concerns, miscon-
duct or potential breaches of the
company’s Code of Conduct, has
been updated pursuant to the EU
Whistleblowing Directive and is
now also open to external report-
ers. During 2022 all cases reported
through EthicsPoint were thorough-
ly investigated. The investigations
were conclusive, and appropriate
actions have been taken.
Supply chain
Sustainability risks within our supply
chain are mitigated by stipulating
demands related to quality, product
safety, chemical compliance, social
responsibility, and the environment.
We expect our suppliers to adhere
to our Code of Conduct and Sup-
plier Workplace Standard. These
policies are aligned with require-
ments in frameworks 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. We also included
Environmental and Health & Safety
sections, in addition to the Quality
sections in our audits.
In 2022 our purchase team and
supplier quality assurance team
conducted training in responsible
mineral sourcing and supplier due
diligence.
Policies
Selected policies are available in
the Corporate website.
73
general supplier audits in 2022.
25 in Asia Pacific and 48 in Europe
73/73
audits included environment
and health & safety
73/73
audits included
quality
3
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P. 65Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Ethics and relationships
Operations
& our people
Sustainability
Introduction
6
Sustainability
Report
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
2022 activities
Our sustainability framework
Strategy and targets
Sustainable Development Goals
The climate challenge
Sustainable solutions
Sustainable operations
Ethics and relationships
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Our stakeholders
Electrolux Professional Group acknowledges the trust we are given by our stakeholders. Impact analysis and
strategic assessments, together with stakeholder expectations, serve as the basis for our sustainability work.
We monitor overall trends in society and collaborate with external partners to drive improvements.
2022 stakeholder engagement
Society and local communities
> Electrolux Professional products were
installed in a refugee center in Ukraine and
a Romanian orphanage in 2022, a donation
made in cooperation with Mercy Chefs, a
non-profit US relief organization.
> We joined the Electrolux Food Founda-
tion as part of a donation drive organized
to support the relief efforts in Ukraine.
Electrolux Professional matched employee
donations by EUR 25,000.
> In spring 2022, we donated a kitchen with a
full range of kitchen products to Poland to
support it in catering for Ukrainian refugees.
It was installed in a school canteen close
to the Ukraine border, providing meals to
refugees.
STAKEHOLDER FORM OF DIALOG IMPORTANT TOPICS GENERATED VALUE
Customers
and users
• Ongoing dialog to collect 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 24–29, 32,
36-38.
Employees
• Ongoing dialog with employees and
unions through our management
• Systematic dialog within our
people performance process
• Employee engagement surveys
• Health and safety
• Diversity and inclusion
• People development
• Competitive compensation,
sustainable working environment,
learning and development.
See more on pages 7, 44–47.
Investors
and owners
• We communicate through direct meet-
ings, questions, ESG surveys, capital
market days, and the Annual General
Meeting where a dialog can take place.
One of our investors is also represented
in 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
• Gathering of information about the
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, 45-47, 63–64.
Society and local
communities
• Contacts with local communities
regarding local environmental require-
ments
• Monitor of public opinions and changes
in legislation
• Environmental impact
• Social impact
• Contribution to local community
• Taxes and reduced carbon
footprint.
See more on pages
7, 54-55, 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 49, 65.
Sustainability governance and management, the GRI index, and our performance are described on pages 150-161.
3
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P. 66Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance
Operations
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Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and 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
67
Corporate governance report
68
Board of Directors
76
Group Management Team
78
Remuneration report 2022
80
Risk and risk management
82
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P. 67Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Chairman’s comments
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Chairman’s comments
Steady course in a turbulent world
In this environment, Electrolux Professional
Group managed to deliver record high sales
and a strong profit growth which is a sign of
the strength of the company.
Monitoring developments related to
geopolitical and macroeconomic uncer-
tainty has inevitably been high on the Board
agenda. It resulted in the decision to divest
our operations in Russia. Also related to the
global turmoil, challenges stemming from the
shortage of components continued last year,
and balancing inflation with price increases
was also followed closely.
Other important topics for the Board have
centered on the integration of Unified Brands
and investments in digitalization to future-
proof our capabilities and deliver greater
customer value. The Board also decided to
take up a new EUR 140m syndicated term
loan facility for general corporate purposes.
Organizational development was also
given a lot of airtime by the Board during
2022 turned out to be another year of global turmoil defined by
Russia’s war against Ukraine, component shortages, and rising
inflation. Despite the external challenges, it was a good year
financially for the Group and operationally as well as strategically,
important steps have been taken to reinforce and future-proof
the company.
the year. Within the two reportable segments
of Food & Beverage and Laundry, five Busi-
ness Areas have been established, focusing
on customer categories and geographies.
The objective of these Business Areas is
to strengthen business ownership, move
decision-making closer to the customer, and
thereby increase agility and speed.
Sustainability has continued to be an im-
portant topic for the Board, and it is reward-
ing to see that Electrolux Professional Group
is recognized as the sustainability leader
in our industry. To further embed this work
within the company, the proposed Long-Term
Incentive Program for key managers will also
include a sustainability target in 2023.
This year the Board has held almost all
meetings physically, including a visit to the
business in the US. It was truly rewarding to
visit units in both Food Service and Laundry,
including the recent, strategically acquired
Unified Brands.
It is rewarding to
see that Electrolux
Professional Group
is recognized as the
sustainability leader
in our industry.
Kai Wärn, Chairman of the Board
Despite the external challenges and uncer-
tainty, 2022 was a good year for Electrolux
Professional Group. Sales increased sub-
stantially, and although the margins have not
yet returned, profit is back to pre-pandemic
levels. Strategically and operationally import-
ant steps have been taken to reinforce and
future-proof the company. Consequently, the
Board proposes a dividend of SEK 0.70 (0.50)
per share, in line with the dividend policy.
The Board would like to express its grat-
itude to Electrolux Professional Group’s
management and employees for their great
contributions during the year.
Kai Wärn,
Chairman of the Board
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P. 68Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
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 responsi-
bilities 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 man-
agement, 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 2022. There were no infringements of appli-
cable 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 or the Swedish Securities Council
in 2022. This corporate governance report has been
drawn up as part of Electrolux Professional’s applica-
tion of the Code.
Corporate governance structure
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
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P. 69Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
tion about the shares and share-
holders, 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 2022 the Board of Direc-
tors proposes a dividend to the
shareholders of SEK 0.70 (0.50) per
share, corresponding around 30%
of the profit for the year.
General Meeting
of shareholders
Pursuant to the Swedish Compa-
nies Act, the General Meeting is the
supreme decision-making body in
a Swedish limited liability com-
pany, and shareholders exercise
their voting rights at such meet-
ings. The Annual General Meeting
(AGM) was held on April 28, 2022 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 Meet-
ings (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 confir-
mation of income statements and
balance sheets, the disposition of
the company’s profit or loss, dis-
charge of liability for the members
Shares
According to Electrolux Profes-
sional’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.
The Electrolux Professional
registered share capital is SEK
28,739,745, represented by
287,397,450 shares of which
8,045,314 are Class A shares and
279,352,136 are Class B shares (as
of December 31, 2022), each with
a quota value of SEK 0.1. 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
converted to Class B shares. During
2022, 2,668 Class A shares were
converted to Class B shares.
1
Shareholders
The number of registered share-
holders at December 31, 2022 was
46,436. On December 31, 2022,
Investor AB was the largest share-
holder, with a holding correspond-
ing to 32.4% of the votes and 20.5%
of the share capital in Electrolux
Professional AB. For more informa-
2
Nomination Committee
At the Extraordinary General Meet-
ing held on December 5, 2019, the
current instruction for the Nomi-
nation Committee was adopted
to apply until further notice. No
changes were proposed or adopt-
ed during 2022.
The Nomination Committee
shall comprise five members. The
members should be one represen-
tative of each of the four largest
shareholders, in terms of voting
rights, that wish to participate in the
Committee, together with the Chair-
man 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 shareholders they
represent shall be announced as
soon as they have been appoint-
ed. If the shareholder structure
changes during the term of office
of the Nomination Committee, the
composition of the Nomination
Committee may be adjusted ac-
cordingly. Changes in the compo-
sition 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
of the Board and the CEO, compo-
sition of the Nomination Commit-
tee, 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 changes
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 direct-
ly recorded in the share register
maintained by Euroclear Sweden
five week days prior to the General
Meeting, and who have notified
the company of their intention 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 are temporarily
registered in their own names in the
register of shareholders maintained
by Euroclear Sweden, in order to
be entitled to participate in the
General Meeting.
The next AGM will be held on
April 26, 2023, in Stockholm.
• Remuneration for Board members
including work on Board commit-
tees
• Auditors and auditor’s fees
• Amendments to instructions for
the Nomination Committee
The Company’s Audit Committee
shall assist the Nomination Com-
mittee in preparing proposals for
auditors, and the Nomination Com-
mittee’s proposal shall include the
Audit Committee’s recommenda-
tion on the election 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 subse-
quent discussions, to assess the
Board’s composition, qualification,
efficiency, and work procedures.
The conclusions are presented to
the Nomination Committee. On this
basis and if deemed appropriate
after subsequent discussions and
interviews, the Nomination Commit-
tee determines whether the existing
Board should be strengthened with
additional expertise or if there are
any other reasons to make chang-
es to the composition of the Board.
In making such determinations and
(if applicable) evaluating poten-
tial new candidates for the Board,
the Nomination Committee takes
into consideration the objective to
achieve a gender balance in the
Board. The Nomination Commit-
tee applies rule 4.1 of the Swedish
Code as its diversity policy.
In addition, the Nomination Com-
mittee takes into consideration the
need to ensure that the indepen-
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P. 70Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
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 gov-
erned by the Rules of Procedure
of the Board of Directors, adopted
annually by the Board. The instruc-
tions 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 spec-
ify financial 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 Profes-
sional’s Articles of Association, the
Board of Directors shall be com-
prised 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,
dence requirements of the Swedish
Code are met. These requirements
stipulate that at least the majority
of Board members must be inde-
pendent from Electrolux Profession-
al’s management, and that at least
two (from such majority) are also
independent of Electrolux Profes-
sional’s largest shareholders. The
Nomination Committee also takes
into account any proposals made
to the Nomination Committee
about the composition of the Board
that may have been suggested by
other shareholders.
Nomination Committee
for the AGM 2022
The Nomination Committee for the
AGM 2022 was comprised of five
members, led by Petra Hedengran
of Investor AB. For the proposal
for the AGM 2022, the Nomination
Committee assessed the composi-
tion and size of the Board and the
demands on the Board that are
expected from the Group’s future
strategy. The Nomination Commit-
tee applied rule 4.1 of the Code as
diversity policy in its nomination
work.
The Nomination Committee
proposed re-election of all Board
members including reelection of
Kai Wärn as Chairman of the Board.
The Nomination Committee also
proposed, in accordance with the
recommendation by the Audit Com-
mittee, re-election of Deloitte AB as
the company’s auditors for the peri-
od until the end of the AGM 2023.
Nomination Committee
ahead of 2023 AGM
The Nomination Committee for the
2023 AGM is based on the owner-
ship structure as of August 31, 2022,
and was announced in a press
release on October 4, 2022.
be independent in relation to the
company and the Group Manage-
ment Team, but not in relation to
major shareholders of Electrolux
Professional.
Management of
the company’s affairs
The Board of Directors is re-
sponsible 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 Direc-
tors 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 requirements
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 sus-
tainability issues impact risks to,
and business opportunities for, the
employee organizations are enti-
tled to appoint employee repre-
sentatives. The Board of Directors
currently comprises seven members
elected by the 2022 AGM for a term
of office extending until the close of
the 2023 AGM, with no deputies, as
well as two ordinary members and
one 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 relation
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 independent in relation
to the company and the Group
Management Team must also be
independent in relation to the
major shareholders of the compa-
ny. 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. The independence is
to be assessed by the Nomination
Committee.
The Board is considered to be in
compliance with relevant require-
ments for independence. All Di-
rectors apart from Daniel Nodhäll
are considered to be independent.
Daniel Nodhäll is considered to
company, and defining appropriate
guidelines to govern the compa-
ny’s conduct in society with the
aim of ensuring its long-term value
creation capability. 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 com-
pany’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 infor-
mation necessary to effectively
perform their tasks. The Chairman
represents the company in relation
to its shareholders.
The Group’s external auditors re-
port to the Board as necessary, but
at least once a year. A minimum of
one such meeting is held without
the presence of the President 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 mem-
bers and to the auditors.
Board meetings in 2022
In 2022, the Board held eleven
meetings, nine of which were held
either as physical meetings or web
meetings. Two meetings were held
per capsulam.
All scheduled Board meet-
ings during the year followed an
agenda, which, together with the
Our strategic
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Global trends
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segments
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P. 71Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
and geographies: Food Europe,
Food Americas, Food APAC &
MEA, Beverage & Food Prepara-
tion, and Laundry. This also led to
changes in Group Management.
In September the company took
out a new EUR 140m syndicat-
ed term loan facility, for general
corporate purposes, restoring the
revolving credit facility to its full
EUR 200m capacity.
Evaluation of
the Board of Directors
The Board evaluates its work an-
nually 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. Evalua-
tion tools include questionnaires
and discussions. In 2022, Board
members responded to written
questionnaires. The evaluations
were 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 compen-
sation 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 AGM 2022 resolved that
the Board fees for the period up
until the next AGM should be SEK
1,630,000 for the Chairman of
the Board of Directors, and SEK
545,000 for each other Board
member (not employed by the
company) elected by the AGM. In
addition, it was resolved that a fee
of SEK 170,000 shall be paid to the
Chairman of the Audit Committee
and a fee of SEK 110,000 to each
of the other committee members,
while a fee of SEK 110,000 shall
be paid to the Chairman of the
Remuneration Committee and SEK
80,000 to each of the other com-
mittee members.
The compensation paid in 2022,
shown in the table on page 72 re-
fers to compensation until the AGM
in 2022 and three quarters of the
compensation authorized by the
AGM in 2022, see also note 26.
Board of Directors 2022 – AGM 2023
Name Position
Board mem-
ber of Electrolux
Professional since
Independent in relation 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
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
Ulf Karlsson
Member* 1998 – – – – –
Joachim Nord
Member* 2019 – – – – 110
Per Magnusson
3
Deputy* 1995 – – – – –
Jens Pierard
3
Deputy* 2022 – – – – –
* Employee representative.
1) Own holdings and holdings of related persons and affiliated companies. The Board members’ respective shareholding in Electrolux Professional as per March 13, 2022
2) Kai Wärn also has 778,816 call options issued by Investor AB entitling him to the right to purchase Electrolux Professional B shares
3) P er Magnusson resigned as Deputy Employee representative on August 15, 2022. Jens Pierard was elected as Deputy Employee Representative on August 15, 2022.
Gender distribution
Women, 43%Men, 57%
position, as well as the outlook for
the forthcoming quarters, as pre-
sented 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 com-
pany’s policies. The Board decides
on all 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 2022
At the beginning of 2022, the
business was still affected by the
coronavirus pandemic, and the
consequences continued to be
addressed and monitored including
the effects of increased raw mate-
rial costs and component short-
ages. Russia’s invasion of Ukraine
and the resulting macro-economic
effects, including general infla-
tion, affected the business and the
Board resolved to cease opera-
tions in Russia and to divest the
subsidiary in Russia to the local
management in July.
In June the board visited the US
operations including Unified Brands
and the production facility in Vicks-
burg, Mississippi.
On July 1 the company imple-
mented a new and simplified
organization to be able to execute
faster on the company´s strategic
priorities. The new organization
consists of the two reportable
segments Food & Beverage and
Laundry, with five Business Areas
focused on customer categories
documentation for each item on the
agenda, was sent to Board mem-
bers in advance of the meetings.
Ordinary Board meetings usually
last for half a day or one entire day
in order to allow time for presen-
tations and discussions. Electrolux
Professional’s General Counsel
serves as the secretary at the
Board meetings. Each scheduled
Board meeting includes a review
of the Group’s results and financial
Our strategic
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P. 72Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
• New term loan facility
• Visit US operations including
Vicksburg plant (Unified Brands)
• Q1 quarterly financial statements
• AGM, statutory board meeting
• Q4 quarterly and Year-end financial
statements
• Approval of 2021 Annual Report
• Q2 quarterly financial statements
• Implementation of new
organizational model
• Divestment of Russia Operations
• Budget 2023
• Board work evaluation
• Q3 quarterly financial statements
The work of the Board in 2022
J
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Board of Directors – remuneration and meeting attendance
Total remuneration
2022, ’000 SEK
Board meeting
attendance
Remuneration
Committee attendance
Audit Committee
attendance
Independence
1
Kai Wärn
1,693 11/11 5/5 Yes
Katharine Clark
539 11/11 Yes
Lorna Donatone
648 11/11 5/5 Yes
Hans Ola Meyer
705 11/11 5/5 Yes
Daniel Nodhäll
728 11/11 4/5 5/5 No
Martine Snels
648 11/11 5/5 Yes
Carsten Voigtländer
539 11/11 Yes
1) For further information about the independence assessment, see page 71.
4
Board committees
According to the Swedish Compa-
nies 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 inde-
pendent 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 commit-
tees are preparatory and advisory,
but the Board may delegate de-
cision-making powers on specific
issues to the committees. The issues
considered at committee meet-
ings 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 Com-
mittee 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. 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 ordinary meet-
ing. The CEO, CFO, Head of Group
internal audit, and General Counsel
participated in all the audit com-
mittee meetings in 2022.
During 2022 the Audit Committee
held five meetings. All audit com-
mittee members attended all the
meetings.
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P. 73Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
CEO
Remuneration Committee
One of the Remuneration Commit-
tee’s primary tasks is to propose
guidelines for the remuneration of
the members of the Group Man-
agement Team. The Committee also
proposes changes in remuneration
of the President, for resolution by the
Board, and reviews 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 Re-
sources Officer participated in the
meetings and was responsible for
the meeting preparations.
During 2022 the Remuneration
Committee held five meetings. The
attendance is presented in the
table in the previous page.
5
Group Management
Team
The Group Management Team cur-
rently includes the CEO and eleven
members. The CEO is appointed
by, and receives instructions from,
the Board of Directors. The CEO,
in turn, appoints other members of
the Group Management Team and
is responsible for the ongoing man-
agement of the Group in accor-
dance with the Board’s guidelines
and instructions.
The Group Management Team
holds monthly meetings online and
quarterly in-person meetings last-
ing two or three days to review the
previous month’s results, update
forecasts and plans, and discuss
strategic issues. During 2022 one of
the planned longer meetings was
replaced by web meetings and not
all members were able to travel to
the physical meetings as a result of
pandemic-related restrictions.
Key focus areas for the Group
Management Team during 2022:
• Creation and 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
• Integration of Unified Brands
• Continued development of sus-
tainability strategy
• Addressing the business and
macro-economic effects resulting
from Russia’s invasion of Ukraine
and its geopolitical consequences.
Electrolux Professional has estab-
lished procedures and internal bod-
ies (“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 Man-
agement Board, and the Sourcing
Board. In addition and as a result
of the new organizational model,
boards and forums have been
created to secure collaboration and
coordination between the newly
created Business Areas such as the
Chains and Food product board.
Management changes
As a result of the new organization,
the former Executive Team was re-
placed by the Group Management
teams consisting of the heads of
the group functions and the heads
of the five Business Areas.
Pending the recruitment of the
head of the Business Area Food
Europe, Alberto Zanata, Presi-
dent and CEO has been acting in
that position since July 1 2022. In
September 2022 it was announced
that Camilla Monefeldt Kirstein
was recruited to head the Business
Area Food Europe. She started this
position on March 6, 2023.
6
Auditors
The 2022 AGM re-elected Deloitte
AB for the period up and includ-
ing the 2023 AGM. Jan Berntsson,
authorized public accountant and
a member of FAR (the profession-
al institute for authorized public
accountants in Sweden), is the
auditor-in-charge.
Deloitte provides an audit
opinion regarding Electrolux
Professional AB, the financial state-
ments of the majority of its sub-
sidiaries, the consolidated finan-
cial statements for the Electrolux
Professional Group, and the admin-
istration 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, Interna-
tional 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 law
or applicable regulations in each
country, including issuance of
audit opinions for the various legal
entities.
7
Internal Audit
The Group Internal Audit function
provides independent, objective
assurance designed to add value
and improve Electrolux Professional’s
operations. Group Internal Audit
assists Electrolux Professional in
accomplishing its objectives by
bringing a systematic, disciplined
approach to evaluating and
improving the effectiveness 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 Com-
mittee. The audit plan is derived
from an independent risk assess-
ment conducted by Group Internal
Audit to identify and evaluate risks
associated with the execution of
the Company’s strategy, opera-
tions, and processes. The audits
are executed using a methodolo-
gy for evaluating the design and
implementation of internal controls
to ensure that risks are adequately
addressed, and processes operate
efficiently. Opportunities for improv-
ing the effectiveness of the gov-
ernance, internal control, and risk
management processes identified
in the internal audits are reported to
management 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
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
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Financial
information
Other
information
Contents
P. 74Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Financial
information
Other
information
Contents
P. 75Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Corporate governance report
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
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 pro-
cess and reporting to Group Manage-
ment and Audit Committee
Independently evaluate the efficiency
and effectiveness of internal control
Perform and
manage internal
controls
Internal control
self assessment
Support Audit
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
internal control, risk assessment,
control activities, information and
communication, and monitoring re-
garding the financial reporting are
designed to ensure reliable overall
financial reporting and external
financial statements in accordance
with IFRS, applicable laws and reg-
ulations, 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 Com-
mittee regularly reviews and eval-
uates the adequacy of the internal
control framework. It monitors con-
trol deficiencies identified within the
Group’s internal control environ-
ment and oversees implementation
of action plans if applicable. The
CEO and the Group Management
Team have the ultimate responsibil-
ity for internal controls within their
areas of responsibility.
All entities within the Group
must maintain adequate internal
controls. As a minimum require-
ment, control activities should
address 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-Cor-
ruption Policy, as well as in policies
for information, finance and in the
finance manual. Together with laws
and external regulations, 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, exis-
tence 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 ac-
curate and reliable financial report-
ing as well as process efficiency.
Control activities include ongoing
evaluations, self-assessments, and
internal audit to ascertain whether
the components 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 ensur-
ing 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 proper-
ly mitigated. The effectiveness
of control activities is monitored
continuously at three levels: Group,
legal unit, and process. Monitoring
involves both formal and informal
procedures applied by manage-
ment, 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 imple-
mentation 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
implements action plans to correct
weaknesses. The Audit Committee
reviews, evaluates and monitors
the internal control process for
financial reporting.
Our strategic
foundation
Global trends
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segments
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information
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information
Contents
P. 76Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Board of Directors
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Board of
Directors
KAI WÄRN KATHARINE CLARK LORNA DONATONE HANS OLA MEYER DANIEL NODHÄLL
Position & year elected
Chairman of the Board of Direc-
tors and Board member since
2019. Member of the Remuneration
Committee.
Board member since 2020. Board member since 2019.
Member of the Audit Committee.
Board member since 2019.
Chairman of the Audit Committee.
Board member since 2019.
Member of the Remuneration
Committee and the Audit Com-
mittee.
Year of birth
1959 1979 1957 1955 1978
Nationality
Swedish British American Swedish Swedish
Education
M.Sc. in Mechanical Engineering,
KTH Royal Institute of Technology,
Stockholm, Sweden.
B.Sc. (Hons) Business Infor-
mation Systems Management,
Bournemouth University, UK.
Professional Diploma, Chartered
Institute of Marketing, UK.
MBA, Texas Christian University,
USA. B.Sc. Tulane University, USA.
B.Sc. in Economics and Business
Administration from Stockholm
School of Economics, Sweden.
M.Sc. in Economics and Business
Administration, 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 Association
Educational Foundation, USA.
Board member of Azelio AB. Board member of Husqvarna AB
and Saab AB.
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 Sustainabil-
ity at Gunnebo. Previously VP Com-
mercial Development/CCO, ASSA
ABLOY Opening Solutions EMEAI.
Previously various senior positions
within the Sodexo Group
Previously CFO, Senior Vice Pres-
ident Controlling and Finance at
Atlas Copco AB.
Head of Listed Companies at
Investor AB.
Independence
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 Manage-
ment Team as well as the compa-
ny’s major shareholders.
Independent in relation to the
company and the Group Manage-
ment Team as well as the compa-
ny’s major shareholders.
Independent in relation to the
company and the Group Manage-
ment Team as well as the compa-
ny’s major shareholders
Independent in relation to the
company and the Group Manage-
ment Team, but not in relation to
the company’s major shareholders.
Shareholding at March 13,
2023
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. 20,000 Class B shares.
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Financial
information
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information
Contents
P. 77Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Board of Directors
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
MARTINE SNELS CARSTEN VOIGTLÄNDER JOACHIM NORD JENS PIERARD PER MAGNUSSON
Position & year elected
Board member since 2019.
Chairman of the Remuneration
Committee.
Board member since 2019. Board member since 2019.
Employee representative of
the Council for Negotiation and
Cooperation (PTK).
Board member since January 1,
2023. Employee representative
of the Swedish Confederation of
Trade Unions (LO).
Deputy board member since 2023.
Employee representative of the
Swedish Confederation of Trade
Unions (LO).
Year of birth
1969 1963 1966 1968 1964
Nationality
Belgian German Swedish Swedish Swedish
Education
M.Sc. Industrial engineering, K.U.
Leuven, Campus Geel, Belgium.
Studies in mathematics, Universite-
it Antwerpen, Belgium. Advanced
Finance, London Business School,
England. Finance for non-
financials, Singapore Institute of
Management, Singapore. B2B
Marketing, Vlerick Business School,
Belgium.
Degree in Mechanical Engi-
neering, Technical University of
Braunschweig, Germany. Doctoral
Degree/Dr.-Ing., Process Engineer-
ing, Technical University of Braun-
schweig, Germany. Advanced
Management Programme, INSEAD
Other board assignments
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 Tech-
nologies Group B.V.
Board member of Arbonia AG and
BBC Group AG. Non-Executive
Director of INNIO Group, OIKOS
International and STULZ GmbH.
Member of the Foundation Board
of Friedhelm Loh Stifung. Member
of the Supervisory Board of Testo
Management SE.
Current and
previous positions
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 in 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 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 shareholders.
Shareholding at March 13,
2023
7,000 Class B shares 10,000 Class B shares 130 Class B shares. –
ULF KARLSSON was board member Employee representative of the Swedish Confederation of Trade Unions (LO), from 1998 until December 31, 2022.
Our strategic
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Business
segments
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information
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Contents
P. 78Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Group Management Team
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Group Management Team
ALBERTO ZANATA JACOB BROBERG CARLO MARIO CARONI RICHARD FLYNN DAVE HERRING PIA HOVLAND
Position
President and Chief Executive
Officer since 2009.
Chief Communication and
Investor Relations Officer
since July 2022.
COO (Operations & R&D)
since 2014 (Operations) and
2019 (R&D) respectively.
President Business Area Food
APAC and MEA since July,
2022.
President Business Area Food
Americas, since July, 2022
Chief Human Resources
Officer since 2020.
Year of birth
1960 1964 1968 1980 1964 1965
Nationality
Italian Swedish Italian British American Swedish
Education
Master’s degree in Electronic
Engineering with Business
Administration, Padua Univer-
sity, Italy.
B.A., Political Science and
Economics, Lund University,
Sweden.
Master’s degree in Mechani-
cal Engineering in Economics
and Management, Politecni-
co di Torino, Italy.
Business management,
University of Gloucestershire,
England.
MBA, University of Southern
New Hampshire, USA. B.Sc
in Mechanical Engineering,
University of Iowa, USA.
Bachelor’s degree in
Computer Science, Stockholm
University, Sweden.
Other assignments
– Board member of Sveriges
Kommunikatörer AB.
– – – –
Previous positions
Head of Professional Prod-
ucts, Executive Vice President
within the Electrolux Group
Most recently, since 2019
SVP Investor Relations and
Corporate Communications
in Electrolux Professional.
Previously SVP Corporate
Communications and Investor
Relations, Cloetta AB.
SVP Global Operations
within the Professional
Products business area of the
Electrolux Group.
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.
Most recently President
Unified Brands, part of the
Group Management Team in
Electrolux Professional since
December 2021. VP/GM posi-
tions at Avery Dennison Inc.
Various senior HR positions
in Britannia Airways, Effnet
Group and Electrolux includ-
ing SVP HR, Communications
& Continuous Improvement
at Electrolux Business Area
Europe.
Shareholding at
March 13, 2023
114,803 Class B shares. 10,000 Class B shares. – – – 3,882 Class B shares.
Our strategic
foundation
Global trends
& markets
Business
segments
Sustainability Financial
information
Other
information
Contents
P. 79Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Group Management Team
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
CAMILLA MONEFELDT
KIRSTEIN GUILHEM SENEGAS PAOLO SCHIRA CAROLINA TENDORF FABIO ZARPELLON PHILIPPE ZAVATTIERO
Position
President Business Area Food
Europe since March 2023
Chief Information Officer and
Head of Digital Transforma-
tion, since 2020
President Business Area
Laundry, since July 2022.
General Counsel since July,
2022
CFO since 2009. President Business Area
Beverage and Food
Preparation, since 2021.
Year of birth
1972 1975 1975 1968 1967 1961
Nationality
Norweigan French Italian Swedish Italian French
Education
Master´s degree in Indus-
trial Economics, Norwegian
University of Science and
Technology. Master´s degree
in Operational Research,
London School of Economics
and Political Science.
Master’s degree in engineer-
ing from CentraleSupelec,
Paris and MBA from Le
Collège des Ingénieurs, Paris.
Master’s Degree, Engineering,
University of Trieste, Italy.
Master’s Degree of Law, Uni-
versity of Stockholm, Sweden
Degree, Business Administra-
tion, Ca’ Foscari University of
Venice, Italy.
Master’s Degree of Engi-
neering, National Institute
Polytechnique of Grenoble,
France. Master’s degree
ESSEC Business School Paris,
France.
Other assignments
Board member of Knowit AB. – – – President, La Vela srl. Board member of Institut Paul
Bocuse, France.
Previous positions
Recently President Personal
Equipment Protection Division
at Hultafors Group. Previously
Executive Vice President
Snickers Workwear and
Fristads AB, and various
management positions at
Oriflame Cosmetics,
SAS Group, K-World, and
Management consultant at
McKinsey & Company.
Various Senior IT roles for
bioMérieux & Mérieux
Nutrisciences, IT consultant
for Capgemini.
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.
Most recent, since 2019,
Head of Legal Electrolux
Professional Group, Senior
Group Legal Counsel,
Electrolux Group, Partner and
member of the Swedish Bar
Association (Advokat) Ashurst
law firm, General Counsel
Mandator, Lawyer/Advokat
Advokatfirman Södermark.
CFO of Professional Products
within the Electrolux Group.
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.
Shareholding at
March 13, 2023
- – 7,330 Class B shares. 2,000 Class B shares. 5,944 Class B shares. 8,084 Class B shares.
Our strategic
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Global trends
& markets
Business
segments
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information
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information
Contents
P. 80Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Remuneration report 2022
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
Electrolux Professional Group remuneration report 2022
Introduction
This report describes how the
guidelines for executive remunera-
tion of Electrolux Professional AB,
adopted by the Annual General
Meeting 2020, have been imple-
mented in 2022. The report also
provides information on remunera-
tion for the President and CEO. The
report has been prepared in accor-
dance with the Swedish Companies
Act and the Rules on Remuneration
of the Board and Group Manage-
ment 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 134–137 of the 2022 Annual
Report. Information on the work
of the Remuneration Committee in
2022 is set out in the corporate gov-
ernance report available on page
72 of the 2022 Annual Report.
Remuneration of the Board of
Directors is not covered by this re-
port. Such remuneration is resolved
annually by the Annual General
Meeting and disclosed in note 26 on
page 135 of the 2022 Annual Report.
Key business developments in
2022
The President and CEO summarizes
the company’s overall performance
in his statement on pages 4–5 of the
2022 Annual Report.
Group remuneration guidelines:
scope, purpose and deviations
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 per-
sonnel. To this end, the Group must
offer competitive remuneration in
relation to the country or region
of employment of each Group
Management member. The Group’s
remuneration guidelines 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 com-
pensation, pension benefits, and
other benefits.
Variable compensation consists
of both short-term cash compensa-
tion and long-term share related or
cash-based compensation.
The guidelines are found in the
administration report on pages
94–95 of the 2022 Annual Report.
During 2022, the Group has com-
plied with the applicable remuner-
ation guidelines adopted by the
Annual General Meeting. No devia-
tions from the guidelines have been
decided and no derogations from
Table 1 – Total remuneration of the President and CEO in 2022 (kSEK)
1
Fixed compensation Variable compensation
kSEK
Fixed cash
compensation
3
Other
benefits
4
One-year
variable
Multi-year
variable
5
Extraordinary
items
Pension
expense
6
Total
remuneration
Proportion of fixed and
variable remuneration
Alberto Zanata
(President and CEO)²
6,227 406 4,188 – – 510 11,331 63%/37%
1) Except for Multi-year variable compensation, the table reports remuneration earned in 2022 (irrespective of whether payments have been made the same year).
Multi-year variable compensation is reported if vested in 2022. In 2022 no multi-year variable compensation has vested.
2) As the compensation for the President and CEO is set in Euro, any fluctuations in the currency exchange rate will affect the reported compensation in SEK.
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 long-term incentive awards. The 2021 and 2022 long-term incentive programs currently running vest in 2024 and 2025, respectively.
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, 2022) During the year Closing balance (Dec 31, 2022)
The main conditions of share award plans Shares awarded
4
Shares vested
6
Specification
of plan
1
Performance
period Award date
2
Vesting date
and end of
retention period
Share awards held
at the beginning
of the year
3
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 0 0 102,457 0
LTI 2022
11
Jan 1 – Dec 31, 2022 May 5, 2022 Dec 31, 2024 0 105,176 5,811 0 0 49,181 55,995
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 ‘Vesting date and end of retention 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.
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P. 81Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Remuneration report 2022
Operations
& our people
Governance &
risk management
Introduction
7
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
the procedure for implementation
of the guidelines have been made.
The auditor’s report regarding
the Group’s compliance with the
guidelines is available on the
corporate website.
No remuneration has been
reclaimed.
Share-based remuneration
The intention with Electrolux Profes-
sional’s long-term incentive plans
(LTI) is to be able to attract and re-
tain competent senior employees,
and to increase the commitment
and the motivation of the program
participants. The plans have been
designed to align management in-
centives with shareholder interests.
The company had during 2022
two ongoing performance share
programs (LTI 2021 and LTI 2022)
for senior managers and key
employees, including the President
and CEO. Both programs run over a
three-year vesting period including
a one-year performance period.
The allocation of shares in the 2021
and 2022 program is determined by
the participant´s position level and
the outcome of two objectives: (i)
earnings per share and (ii) operat-
ing cash flow after investments.
Performance outcome of the two
financial objectives in the two plans
has been determined 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
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) 38.6%
b) 2,904 kSEK
Group Net Sales Growth (%)² 15% a) 16.9%
b) 765 kSEK
Group Operating Working Capital (%)³ 10% a) 16.7%
b) – kSEK
Group Customer Care Net Sales Growth (%)⁴ 20% a) 13.6%
b) 519 kSEK
1) Year on year EBITA value growth %, adjusted to average rate 2022 in SEKm. EBITA = EBIT (absolute) plus amortization. Effects of acquisitions and divestments excluded.
2) Year on year External Net Sales growth (%), adjusted to average rate 2022 in SEKm. Effects of acquisitions and divestments excluded.
3) Operating Working Capital (OWC) % = OWC (excluding factoring contribution) divided by External Net Sales. OWC: 12 months average OWC (Acc. Receivables excluding factoring contribution
+ Inventory + Acc. Payable) adjusted to average rate 2022. External Net Sales: 12 months External Net sales adjusted to average rate 2022. Effects of acquisitions and divestments excluded.
4) Year over year External Net Sales growth (%), adjusted to average-rate 2022 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
Alberto Zanata
(President and CEO)
LTI 2022
Earnings per share¹ 60% a) 2.39 SEK
b) 49,181 shares
3
Operating cash flow after
investments
2
40% a) 636 mSEK
b) –
1) Income for the period (attributable to equity holders of Electrolux Professional) shall be 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) Shares will vest after January 1, 2025 subject to continued employment.
shares will be made. No alloca-
tion 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. How-
ever, in certain instances, including
for example a participant’s death,
disability, retirement or the divesti-
ture 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 pro-
grams can be found in Note 26 in
the Annual Report 2022.
Application of performance
criteria
The performance measures for the
President and CEO’s variable com-
pensation have been defined to
deliver the Group’s strategy and to
encourage behavior which is in the
long-term interest of the Group. In
the definition of performance mea-
sures, the strategic objectives and
short-term and long-term business
priorities for 2022 have been taken
into account.
Set out in Tables 3(a) and 3(b)
above are descriptions of how the
performance measures for payment
of variable short-term and long-
term compensation have been
applied during the financial year.
Table 4 – Comparative information on the change
of remuneration and company performance
1
Actual Value and Annual Change² 2022 2021 2020
President and CEO Remuneration in kSEK
(change in %)
11,331
(-9%)
12,453
(+102%)³
6,163
Group EBITA in mSEK (change in %)
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 %)
4
539
(+10%)
489
(-4%)
509
1) Electrolux Professional AB was listed on the NASDAQ Stockholm on March 23, 2020 and
consequently comparative information for previous financial years is not provided.
2) The table presents the actual value for the reported financial year and, in parenthesis, the
annual change vs the previous year.
3) The increase in 2021 compared to 2020 is due to close to maximum outcome for 2021 incen-
tive programs and zero outcome for 2020 programs.
4) Total remuneration, excluding Board members and members of the Group Management
Team, of Electrolux Professional AB.
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P. 82Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Risk and
risk management
Electrolux Professional Group is an international company with a wide
geographical presence, entailing exposure to various forms of strategic,
operational, and financial risks. Risks are managed through a systematic
and enterprise-wide risk management framework to enhance resilience
and empower the Group to achieve its goals and objectives.
Our strategic
foundation
Global trends
& markets
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segments
Sustainability Financial
information
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information
Contents
P. 83Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Risk Governance
Electrolux Professional’s Board of
Directors has the ultimate respon-
sibility for risk oversight. The ERM
governance structure is based on
the three lines of defense model,
which determines the roles, respon-
sibilities, and relationships between
risk management functions.
The CEO, Group Management,
Business and Group functions form
the first line of defense with owner-
ship of risks, ensuring monitoring of
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
risk treatment
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 the risks that,
in management´s opinion, have
the greatests potential to affect
Electrolux Professional Group’s
ability to fulfill the company´s mis-
sion, strategy, and business goals.
The ERM process objectives
and process
• Promote an enterprise-wide
approach by integrating risk man-
agement processes with business
strategy, project management
processes, and decision making.
• Ensure continuity and transparen-
cy in methodology, assessment,
and management processes.
• Establish appropriate, consistent,
and transparent risk ownership
and accountability for risk miti-
gation.
The Group’s ERM process includes
the following risk activities: context
definition, risk assessment, risk
treatment, monitoring and review,
and communication and consulta-
tion of risks.
ment of the Group’s strategic
goals. The ERM Board consists 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 indepen-
dent 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 treat-
ment actions.
risks, and the responsibility for risk
treatment.
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 over-
sees and facilitates the Electrolux
Professional Group’s ERM activities,
ensuring that they are conducted
in a holistic and proactive manner,
to strengthen the development of
integrated risk assessment process-
es, thus supporting the achieve-
Electrolux Professional Group
transfers certain risks to commer-
cial insurance markets, with a
minimum financial security equal to
Standard & Poor’s A minus rating
or equivalent to AM Best’s ratings.
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 deliver to its customers
without interruptions.
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P. 84Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Risks
The Group’s most significant strategic, operational, financial,
and sustainability risks are described in the following pages.
Sustainability risks
Electrolux Professional Group’s global oper-
ations expose the Group to risks related to
sustainability factors such as environmental
impact, human rights, employment condi-
tions, and corruption. These risks could arise
in several phases of the value chain, such as
in purchasing and sales, but also in connec-
tion with third-party service partners provid-
ing 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 mod-
ern 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.
Climate scenario analysis
The purpose of a scenario analysis is to analyze future events by consid-
ering possible alternative outcomes. It is meant as a tool for companies
to make strategic risk management decisions, and it provides insights and
clarifies predictable and uncertain elements in different futures. It is meant
to help frame and evaluate the strategic and financial consequences of cli-
mate change. Electrolux Professional Group have made a climate scenario
risk and opportunity analysis for 2022 according to the recommendations
from Taskforce on Climate-related Financial Disclosures (TCFD). On the
following risk pages, transition risks and physical risks have been included.
A. Transition risks are related to the financial risk of not being prepared for
the socio-economic changes of a world striving to meet the Paris ambi-
tion of limiting global warming to well below 2°C.
B. Physical risks are related to the financial risk 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.
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P. 85Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
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Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
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.
Climate change is expected to drive global tourism/business travel geographic
shifts due to changing climate as a chronic physical risk. A large part of the
customer base might become exposed to a high risk of climate change in 2050
in a 4-degree scenario.
Strategic risks are managed through strategic plans and business decisions tak-
en by the Board of Directors, the Group Management Team, and management
teams throughout the Group.
Changes to global tourism/business travel geographic shifts could have a finan-
cial impact in terms of reduced demand for products and a shift to new geogra-
phies towards the higher latitudes, unless we keep up with this shift in demand.
Shifting peak season tourism to shoulder seasons could open a future business
opportunity and increase sales in these current off-peak seasons.
Opportunity for acquisitions Part of the Group’s strategy is to accelerate growth through acquisitions. Mergers
and acquisitions generate risks related to the ability to achieve expected growth
synergies and profitability and to retain key employees.
Mergers and acquisitions are decided by the Board of Directors, and managed
and implemented by dedicated teams of senior executives and employees
during the acquisition and integration process. External expert support and
advice are obtained as required and according to customary practices.
Pandemics The effect of the coronavirus pandemic continues to affect the economic situa-
tion and business environment in parts of the world. The subsequent uncertainty
affects both markets and manufacturing mainly in APAC.
The Group is closely monitoring developments and based on previous experience,
is prepared to take necessary measures to mitigate potential new impacts from
the coronavirus pandemic.
Political instability Denial of access to markets due to geopolitical decisions, aggressions, sanc-
tions, export controls, etc. as well as the general currently prevailing political
discourse, e.g. globalization or protectionism, that ultimately affects the legal
possibilities 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.
Energy legislation Potential energy labeling and circular economy legislation changes have been
identified as transition risks associated with climate change. This transitional risk
can demand a change in product mix and drive increases in product cost..
We have a clear strategy for developing low carbon and water/energy efficient
solutions given the EU’s potential regulations in 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, com-
pared to our competitors, we can reduce complexity for our customers, thereby
reducing greenhouse gas emissions.
Other Other strategic risks include increased market competition, inability to adopt
new technologies or new business models, and the inability to find suitable
targets for a merger or acquisition to leverage as an accelerator in line with
market expectations.
Electrolux Professional Group develops its technologies through continuous
investments in research and development with a strong focus on development
of products and services.
Strategic risks
Strategic risks are related to macro-economic factors and geopolitical conditions resulting
in changes in the business environment with potential significant effects on operations and
business objectives. Read about climate scenario terms on page 84 and in Note 31 on page
140.
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P. 86Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Risk Management
Manufacturing The Group has 12 manufacturing plants in seven countries and manufacturing
comprises a chain of processes. Geopolitically unfavorable developments, fire,
natural disasters, extreme weather conditions, epidemics, pandemics, systems
failure, mechanical failure, or equipment failure could affect the Group’s manu-
facturing 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 an acute climate change
physical risk. Electrolux Professional’s manufacturing and supplier sites may
become increasingly 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
continuity, 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 The Group´s manufacturing process depends on the availability and timely
supply of components and raw materials, sourced and purchased primarily from
third-party suppliers. A shortage of electronics and raw materials poses risks
related to product costs and to 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 follows laws and the Group’s business princi-
ples. We carry out regular supplier audits and continued surveillance of supplier
performance and financial stability, and long-term agreements are in place
with single-source suppliers. In addition, dual-sourcing is in place 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 prod-
uct 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 the products during the manufacturing
process as well as through field tests on 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
(ERGOCERT). The Group has transferred part of its product liability risk to the
direct insurance market.
Operational risks
Operational risks are risks that stem from business operations with a potential impact on the finan-
cial position and performance. These risks are mainly associated with the development, design,
and manufacturing of the Group’s products, the supply chain, and the sales of these products and
services worldwide. Read about climate scenario terms on page 84 and in Note 31 on page 140.
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P. 87Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Risk Management
Legal and compliance Electrolux Professional Group conducts its business in many jurisdictions with dif-
ferent legislation, rules and regulations. Non-compliance with trade compliance
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 whisleblowing proce-
dures are 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
increasing. 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 regularly conducted. 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 Electrolux Professional Group is dependent on technical experts and industry
talent, mainly for its production facilities and research and development depart-
ments, and it is also dependent on key personnel for certain Group functions.
Difficulties in recruiting and retaining qualified personnel could result in a loss of
competitive edge and increased costs.
To offer attractive positions, 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.
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P. 88Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Risk and risk management
Operations
& our people
Governance &
risk management
Introduction
Corporate
governance
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
Chairman’s comments
Corporate governance report
Board of Directors
Group Management Team
Remuneration report 2022
Risk and risk management
FINANCIAL INFORMATION
OTHER INFORMATION
7
Financial risks
The Group is exposed to several risks from liquid funds,
trade receivables, borrowings, commodity prices, tax,
foreign exchange etc. These risks are categorized as fi-
nancial risks, some of which are presented below. More
information about financial risks and management of
the risks can be found in Note 1 Accounting Principles
on page 104 , Note 2 Financial risks on page 107 and
Note 17 Trade receivables on page 120.
Foreign exchange risk
Electrolux Professional’s solutions and products are
manufactured in twelve facilities located in seven
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, prof-
itability 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 obliga-
tions 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 recurring customers
such as distributors 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 chang-
es in interest rates on the Group’s income. The main
factors determining this risk include the interest-fixing
period. In 2022, the Group’s average interest-fixing
period was 0.42 years.
Tax risk
The Group is comprised of subsidiaries that are subject
to taxation in approximately 30 jurisdictions. There is
a risk that Electrolux Professional’s understanding and
interpretation of tax laws, tax treaties, and other provi-
sions are not correct in all aspects. There is also a risk
that tax authorities in the relevant jurisdictions make
assessments and decisions that differ from Electrolux
Professional’s understanding 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.
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P. 89Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Financial information
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Introduction
8
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
Financial information
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P. 90Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Financial information, contents
Financial
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Introduction
8
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
Financial information, contents
Financial information Notes to the financial statements
Note
Accounting principles
Note
Financial risk management
Note
Segment information
Note
Revenue recognition
Note
Operating expenses
Note
Other operating income
and expenses
Note
Material profit and loss items
Note
Leases
Note
Financial income and financial
expenses
Note
Taxes
Note
Other comprehensive income
Note
Property, plant and equipment
Note
Goodwill and
other intangible assets
Note
Other non-current assets
Note
Inventories
Note
Other current assets
Note
Trade receivables
Note
Financial instruments
Note
Assets pledged for liabilities to
credit institutions
Note
Share capital, number of shares,
and earnings per share
Note
Post-employment benefits
Note
Other provisions
Note
Other liabilities
Note
Contingent liabilities
Note
Acquired and divested operations
Note
Employees and remuneration
Note
Fees to auditors
Note
Transactions with related parties
Note
Untaxed reserves,
Parent Company
Note
Shares and participations
Note
Climate
Note
Events after the balance sheet date
Note
Proposed distribution of earnings
8
Administration report
Consolidated statement of total comprehensive income
Consolidated balance sheet
Change in consolidated equity
Consolidated cash flow statement
Parent Company income statement
Parent Company balance sheet
Parent Company change in equity
Parent Company cash flow statement
Notes
Auditor’s report
Six years in summary
Definitions and reconciliation of alternative performance measures
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P. 91Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Administration report
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Introduction
Financial
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
8
Administration report
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.
The Board of Directors and
President and CEO of Electrolux
Professional AB (publ), corporate
identity number 556003-0354
and registered office in Stockholm,
report and consolidated accounts
for the financial year January 1,
2022 to December 31, 2022.
Information on
operations
Electrolux Professional Group is
one of the leading global provid-
ers of food service, beverage, and
laundry equipment for professional
users. Our innovative products and
worldwide service network make
our customers’ work-life easier,
more profitable and truly sustain-
able every day. The Group serves a
wide range of customers globally,
from restaurants and hotels to
healthcare, educational, and other
service facilities.
Electrolux Professional has
two segments; Food & Beverage
and Laundry. The segments are
regularly reviewed by the President
and CEO, who is the Group’s chief
operating decision maker.
• Food & Beverage offers equip-
ment to various professional users
within the hospitality industry.
Products within Food & Beverage
are mainly comprised of modular
New organization
A new organization was imple-
mented on July 1, consisting of the
two reportable segments Food &
Beverage and Laundry, with five
Business Areas focusing on cus-
tomer categories and geographies:
Food Europe, Food Americas, Food
APAC & MEA, Beverage & Food
Preparation, and Laundry.
The purpose of the new orga-
nization is to be able to focus and
faster execute on the company´s
strategic priorities. The new organi-
zaton also led to changes in Group
Management.
Integration of Unified Brands
Unified Brands, which was acquired
on December 1, 2021, was fully inte-
grated into Electrolux Professional
Group during the year. Electrolux
Professional is now operating as
one organization in the US, and
over time this is expected to create
synergies in both cost and sales.
New term loan facility
On September 29, Electrolux
Professional AB took out a new
EUR 140m syndicated term loan
facility. The facility is for general
corporate purposes. The loan has
a tenure of 18 months, with the
possibility of two 6-month exten-
sions. The loan has no financial
covenants.
Production
On December 31, 2022, Electrolux
Professional’s production units
operated through 12 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 ma-
jority of the appliances on order,
while for the beverage plants there
is a mix between make-to-order
and make-to-stock.
Significant events
during the financial
year
Operations in Russia divested
Following the assessment that busi-
ness continuity in Russia was not
feasible after the Russian invasion
of Ukraine, the Group decided to
divest its operations in Russia to
local management. This incurred
a cost of SEK 35m.
Electrolux Professional had 25
employees in Russia, and in 2021
sales in the country were approxi-
mately 1% of Group sales.
New Group brand
To clarify the role of Electrolux
Professional as both a company,
and a business brand, the
Electrolux Professional Group
corporate brand was introduced in
2022. The majority of sales remain
under the Electrolux Professional
brand, while the other brands can
add “part of Electrolux Professional
Group” when needed to benefit
from the strength of being part of
a larger Group. The introduction of
the corporate brand is also a way
to make a distinction between the
company (Electrolux Professional
Group) and the main business
brand (Electrolux Professional).
Conversion of shares
According to Electrolux
Professional´s Articles of Associa-
tion, owners of A shares have the
right to have such shares converted
to B shares. Conversion reduces
the total number of votes in the
company. 2,668 shares were
converted during 2022. On De-
cember 31, 2022, the company’s
registered share capital amounted
to SEK28,739,745, represented
by 287,397,450 shares of which
8,045,314 were Class A shares and
279,352,136 were Class B shares.
The total number of votes amounted
to 3 5 ,98 0 , 527.6.
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P. 92Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Administration report
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Financial
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SUSTAINABILITY
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FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
8
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.
Coronavirus pandemic
The global coronavirus pandemic
continued to affect the hospitality
industry at the beginning of the
year, but as restrictions gradually
were eased, the hospitality industry
saw a return to pre-pandemic lev-
els. At the end of 2022, only China
was still being affected by restric-
tions, affecting sales in the country.
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.
higher operating income is due to
higher sales volumes, higher prices,
and the contribution from Unified
Brands. Operating income also
includes SEK –35m related to the
divestment of the Russian business.
Performance per segment
The Group’s operations are
reported in two segments which
have been identified based on the
monitoring and reporting structures
to the President and CEO
Food & Beverage
Sales for Food & Beverage were
SEK 7,290m (4,704), an increase of
55% compared to last year. Organi-
cally sales increased by 17.4% (14.3)
and currency had a n effect of 10.3%
(–4.7). The acquisition of Unified
Brands contributed 28.3%, and the
divestment of the operations in Rus-
sia had an effect of -0.9%.
Operating income excluding
amortization of intangible assets
(EBITA) amounted to SEK 679m
(299), corresponding to a margin of
9.3% (6.4). EBITA improved mainly
due to prices and the inclusion of
Unified Brands. Operating income
amounted to SEK 542m (244),
corresponding to a margin of
7.4% (5.2).
Laundry
Sales for Laundry were SEK 3,747m
(3,159), an increase of 18.6% com-
pared to last year. Organically,
sales increased by 16.2% (5.5) and
currency had a negative effect of
3.2% (–2.5).
Operating income excluding
amortization of intangible assets
(EBITA) amounted to SEK 608m
(492), corresponding to a margin
of 16.2% (15.6). Operating income
amounted to SEK 590m (475), corre-
sponding to a margin of 15.7% (15.0).
Operational and
financial review
Net sales
Net sales for 2022 amounted to
SEK 11,037m (7,862), an increase
of 40.4% compared to the same
period last year. Organically, sales
increased by 16.9%, acquisitions
contributed 17.2%, currency con-
tributed 7.1% while the divestment
of the Russian operations had an
effect of –0.8%.
The organic sales increase was
driven by an increased demand as
pandemic restrictions were eased
at the beginning of the year, the
comeback in the hospitality indus-
try, and price increases.
Sales of Food & Beverage
increased organically by 17.4%.
Sales of Laundry increased organ-
ically by 16.2%. Sales increased in
Europe by approximately 15%, in
the Americas by 29% excluding the
acquisition of Unified Brands, and
in Asia-Pacific, Middle East and
Africa by 11%.
Changes in net sales
% 2022 2021
Organic growth
16.9 10.6
Acquisitions
17. 2 1.4
Divestments
–0.8 –
Changes in
exchange rates
7.1 –3.7
Total
40.4 8.2
Operating income and EBITA
Operating income excluding amor-
tization of intangible assets (EBITA)
amounted to SEK 1,111m (663),
corresponding to a margin of 10.1%
(8.4). Operating income amounted
to SEK 955m (592), correspond-
ing to a margin of 8.7% (7.5). The
Operating cash flow
after investments
0
200
400
600
800
1,000
1,200
20222021202020192018
SEKm
EBITA and EBITA margin
0
200
400
600
800
1,000
1,200
20222021202020192018
SEKm %
EBITA EBITA margin
0
5
10
15
20
25
Total net sales
0
2,000
4,000
6,000
8,000
10,000
12,000
20222021202020192018
SEKm
2019 includes items affecting comparability
of SEK -32m, 2020 of SEK –77m and 2022 of
SEK –35m.
Key ratios Food & Beverage performance
SEKm 2022 2021 Change
Net sales
7,290 4,704 +55
Organic growth, %
17.4 14.3
Acquisitions, %
28.3 2.5
Divestments
–0.9 –
Changes in exchange rates, %
10.3 –4.7
EBITA
679 299 +127.3
EBITA margin, %
9.3 6.4
Operating income
542 244 +121.9
Operating margin, %
7.4 5.2
Key ratios Laundry performance
SEKm 2022 2021 Change
Net sales
3,747 3,159 +18.6
Organic growth, %
16.2 5.5
Divestments
–0.7 –
Changes in exchange rates, %
3.2 –2.5
EBITA
608 492 +23.6
EBITA margin, %
16.2 15.6
Operating income
590 475 +24.2
Operating margin, %
15.7 15.0
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P. 93Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Administration report
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Introduction
Financial
information
INTRODUCTION
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OPERATIONS & OUR PEOPLE
SUSTAINABILITY
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FINANCIAL INFORMATION
Financial information, contents
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Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
8
Financial position
Net debt
As of December 31, 2022, Electrolux
Professional Group had a financial
net debt position (excluding lease
liabilities and post-employment
provisions) of SEK 1,643m com-
pared to SEK 1,418m as of De-
cember 31, 2021. Lease liabilities
amounted to SEK 304m and net
provisions for post-employment
benefits amounted to SEK 103m.
In total, net debt amounted to
SEK 2,050m as of December 31,
2022, compared to SEK 1,705m
as of December 31, 2021.
Long-term borrowings amounted
to SEK 2,824m. Short-term borrow-
ings amounted to SEK 69m.
Total borrowings amounted
to SEK 2,894m compared to SEK
2,268m as of December 31, 2021.
Total borrowings have been
negatively impacted by currency
revaluations.
Liquid funds as of December
31, 2022, amounted to SEK 1,251m
compared to SEK 849m as of
December 31, 2021.
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 syndicated loan facility
of EUR 140m with a tenure of 18
months from September 2022 with
the possibility of two 6-month
extensions, and a revolving credit
facility of EUR 200m with a tenure
until 2027. As of December 31, 2022,
the revolving credit facility was
unutilized.
Related-party transactions,
See Note 28 on page 137.
Seasonal variation
No seasonal variations exist.
Financial net
Net financial items amounted to
SEK –61m (–4). The increase in fi-
nancial 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 686m (487), corresponding
to SEK 2.39 (1.69) in earnings per
share. Income tax for the period
amounted to SEK 209m (101). The
tax rate was 23.3% (17.1). The tax
rate in 2021 was positively affected
by a fiscal revaluation of assets in
Italy.
Group common cost
Group common cost was SEK 177m
(128). The increase is mainly due to
projects and increased
employee and advisory costs.
Cash flow
Operating cash flow after invest-
ments amounted to SEK 636m
(1,116). Cash flow was negatively
affected by an increase in operat-
ing working capital. Both trade
receivables and inventory in-
creased, partially due to higher
material cost and a higher stock
of components.
Operating working capital
Operating working capital as a
percent of annualized net sales
was 16.7% compared to 14.9% at
the end of 2021. The change is due
to higher trade receivables and
inventory, partially due to higher
material cost and a higher stock of
components in relation to net sales.
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 includes
action plans and monitoring of a
number of environmental aspects.
Our environmental work is an inte-
gral part of our operations and en-
vironmental matters are taken into
account during decision making.
Evaluation and follow-up of mea-
sures taken increases awareness of
the impacts the business has on the
environment. The Group’s environ-
mental 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 receiv-
ables, 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 Gover-
nance Structure is based on the
three-lines-of-defense model. Risk
and risk management is described
on pages 82–88 and note 2 on
page 107–108.
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 develop-
ment and the right technologies,
leading to a stronger and more
competitive range of products,
Employees
The number of employees at year-
end was 4,022 (3,973).
Corporate governance
report
Electrolux Professional has pre-
pared the Corporate Governance
report presented on pages 68–79.
Sustainability Report
Electrolux Professional Group has
prepared a Sustainability Report
in accordance with the updated
Global Reporting Initiative (GRI)
Standards from 2021. The sustain-
ability report has been prepared
in accordance with disclosure
requirements set out in the Swedish
Annual Accounts Act, chapter 6
paragraph 11. The Sustainability
Report is presented on pages
48–65 and 149–161 of this report.
Environmental impact and
approach
A systematic environmental ap-
proach is the basis for reducing
Electrolux Professional Group’s
environmental impact. The greatest
direct environmental impact relates
to water and energy consumption,
wastewater, waste, and transporta-
tion. From a product lifecycle per-
spective, the main environmental
impact occurs in the product-use
phase at the customer’s loca-
tion. The company complies with
environmental legislation and is
not involved in any environmental
disputes. As of December 31, 2022,
Electrolux Professional had manu-
facturing operations at 12 sites in 7
countries.
The Swedish factory in Ljung-
by conducts notifiable activities
according to Swedish legislation.
There are no injunctions under the
which makes it possible for
Electrolux Professional to retain its
competitiveness and pricing.
The product development starts
and ends with the customer in
mind. The Group’s sales organiza-
tion has continuous interaction with
customers 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 princi-
ples set forth in the agreement.
The trademark license agree-
ment 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 change of
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P. 94Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Administration report
Financial
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Introduction
Financial
information
INTRODUCTION
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BUSINESS SEGMENTS
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SUSTAINABILITY
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FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
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The Board’s assurance
Auditor’s report
OTHER INFORMATION
8
The principles shall be applied to
employment agreements entered
into after the Annual General Meet-
ing in 2021 and to changes made to
existing employment agreements
thereafter.
The guidelines shall 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 recom-
mendation of the Remuneration
Committee.
Remuneration for other members
of Group Management is resolved
upon by the Remuneration Com-
mittee and reported to the Board of
Directors. The Remuneration Com-
mittee shall also monitor and evalu-
ate programs for variable remuner-
ation 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.
The Board of Directors shall,
based on the recommendation
from the Remuneration Committee,
prepare a proposal for new guide-
lines at least every fourth year and
submit it to the Annual General
Meeting.
The President and CEO and
other members of the Group Man-
agement do not participate in the
Board of Directors’ processing of
and resolutions regarding remu-
neration-related matters insofar as
they are affected by such mat-
ters. Electrolux Professional has a
clear strategy to deliver profitable
growth and create shareholder
value.
control. Such change of control is
deemed to occur if, for example,
any sale or transfer of the own-
ership of a controlling interest
or majority stake in Electrolux
Professional (or a parent compa-
ny), to another 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 pe-
riod of the term of the agreement,
and thereafter increasing annually
in line with the Swedish Consumer
Price Index (Sw. konsumentprisin-
dex), decided at the sole reason-
able discretion of AB Electrolux.
The company’s expected
future progress
For the coming 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 guidelines set forth below
were resolved by the 2020 Annual
General Meeting and shall apply to
the remuneration and other terms
of employment for the President
and CEO and other members
of the Group Management of
Electrolux Professional Group
(“Group Management”). The Group
Management currently (December
2022) comprises eleven executives,
including the CEO.
Variable compensation
Variable compensation consists
of both short-term and long-term
incentives. Long-term incentives
(“LTI program”) can be cash based
or share-related.
Share-related LTI programs
are resolved upon by the General
Meeting and are therefore exclud-
ed from these guidelines. Each
year, the Board of Directors will
evaluate whether or not an LTI pro-
gram shall be adopted or, in case
of a share-related LTI program,
proposed to the General Meeting.
LTI programs shall be distinctly
linked to the business strategy and
shall always be designed with the
aim to further enhance the common
interest of participating employees
and Electrolux Professional share-
holders of good long-term devel-
opment for Electrolux Professional
Group.
Following the ‘pay for perfor-
mance’ principle, variable compen-
sation shall represent a significant
portion of the total compensation
opportunity for Group Management.
Variable compensation shall
always be measured against
pre-defined targets and have a
maximum above which no payout
shall be made.
The extent to which the criteria
for awarding variable cash remu-
neration has been satisfied shall be
determined by the Remuneration
Committee when the measurement
period has ended. For financial
objectives, the evaluation shall 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 Manage-
ment shall participate in an STI
A prerequisite for the successful
implementation of the company’s
business strategy and safeguarding
of its long-term interests, including
its sustainability, is that the com-
pany is able to recruit and retain
qualified personnel. To this end,
it is necessary that the company
offers competitive remuneration in
relation to the country or region of
employment of each Group Man-
agement member.
These guidelines enable the
company to offer the Group
management a competitive total
remuneration.
More information on the com-
pany’s strategy can be found on
the company’s website and in the
Annual Report.
The remuneration terms shall em-
phasize ‘pay for performance’, and
vary with the performance of
the individual and the Group. The
total remuneration for the Group
Management shall be in line with
market practice and may comprise
the following components: fixed
compensation, variable compen-
sation, pension benefits, and other
benefits.
Employment contracts governed
by rules other than those in Sweden
may be duly adjusted for compli-
ance with mandatory rules or es-
tablished local practice, taking into
account, to the extent possible, the
overall purpose of these guidelines.
Fixed compensation
The Annual Base Salary (“ABS”)
shall be competitive relative to the
relevant market and reflect the
scope of the job responsibilities.
Salary levels shall be reviewed
periodically (usually annually) to
ensure continued competitiveness
and to recognize individual perfor-
mance.
plan under which they may receive
variable compensation. The objec-
tives in the STI plan shall be finan-
cial and the measurement period
shall be one year. The objectives
may include EBITA Growth and Net
Sales Growth.
The maximum STI entitlements
shall be dependent on job position
and may amount to no more than
100% of ABS.
Cash-based LTI programs
Variable remuneration may also
be paid as a part of cash-based
LTI programs. The objectives for
cash-based LTI programs shall be
financial 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
shall be one year, however, any
payout under the program shall not
be awarded until two years after the
expiry of the measurement period
provided that the conditions for
payout are fulfilled.
The payout, if any, shall be used
by the participant to purchase
shares in Electrolux Professional
and the participant shall be re-
quired 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 share-
holding in the company in order
to create a common ownership
interest between the participants
and the shareholders.
Cash based LTI programs shall
always be designed with the aim to
further enhance the common inter-
est of participating employees and
Electrolux Professional sharehold-
ers of good long-term develop-
ment for Electrolux Professional.
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P. 95Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Administration report
Financial
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Introduction
Financial
information
INTRODUCTION
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BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
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RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
8
When possible, pension plans
shall be based on defined contribu-
tion. In individual cases, depending
on provisions in collective agree-
ments, 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 shall
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 may amount to no
more than 20% of the ABS.
Members of the Group Man-
agement 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 arrangement.
Such benefits shall be deter-
mined in line with the Group’s
Directive on International Assign-
ments or applicable local reloca-
tion policy, and may for example
include relocation costs, housing,
tuition fees, home travel, tax sup-
port, and tax equalization.
Notice of Termination
and Severance Pay
The notice period for the President
and CEO shall be twelve months
if Electrolux Professional takes the
initiative to terminate the employ-
ment and six months if the Presi-
dent and CEO takes the initiative
to terminate the employment.
For other members of the Group
Management the notice period
shall be between six to twelve
The maximum LTI entitlements
shall be dependent on job position
and may amount to no more than
100% of ABS.
Extraordinary arrangements
Additional variable compensation
may be approved in extraordinary
circumstances under the condition
that such extraordinary arrange-
ments 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 instal-
ments 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 individu-
al’s ordinary tasks and shall in these
situations 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 designed
to enable the Board, under excep-
tional financial circumstances, to
limit or cancel payments of vari-
able remuneration provided that
such action is deemed reasonable
(malus). The Board shall also have
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).
Pension and Benefits
Old age and survivor’s pension,
disability benefits, and health-
care benefits shall be designed to
reflect home-country practices and
requirements.
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 includ-
ing information on the employees’
total income, the components of
the remuneration and increase
and growth rate over time, in the
Remuneration Committee’s and the
Board of Directors’ basis of deci-
sion when evaluating whether the
guidelines and the limitations set
out herein are reasonable.
Deviations from the guide-
lines 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 remuner-
ation-related matters. This includes
any resolutions to deviate from the
guidelines.
Note 26 of the Annual Report
includes a detailed description of
existing remuneration arrange-
ments for the Group Management
Team.
Variable long-term share
programs
The LTI 2021 and LTI 2022 programs
are described in note 26.
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 termi-
nate 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 arrangement or where
an Group Management member
gives notice as the result of an
important change in the working sit-
uation, 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 con-
tinuation of the ABS for a period
of up to twelve months following
termination of the employment
agreement; no other benefits shall
be included. These payments shall
be reduced by the equivalent value
of any income that the individual
earns during that period of up to
twelve months from other sources
of income, either from employment
or from other business activities.
In addition to the above, com-
pensation for any non-compete
undertaking may be awarded. Such
compensation shall be based on
the ABS at the time of notice of ter-
mination 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.
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 Com-
pany, Electrolux Professional AB,
for the period amounted to SEK
2,963m (2,364) of which SEK 1,158m
(908) referred to sales to Group
Companies and SEK 1,805m (1,456)
to external customers. Income after
financial items was SEK 431m (519).
Income for the period amounted to
SEK 392m (489).
Capital expenditure in tangible
and intangible assets was SEK 21m
(42). Cash and cash equivalents
at the end of the period, including
short term investments, amounted
to SEK 877m, as against SEK 391m
in the beginning of the year.
Undistributed earnings in the
Parent Company at the end of the
period amounted to SEK 6,495m,
year against SEK 6,263m at the
beginning of the year.
The income statement and bal-
ance sheet for the Parent Company
are presented on pages 100–101.
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P. 96Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Financial statements
Financial
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INTRODUCTION
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SUSTAINABILITY
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FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
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Financial
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Introduction
Operations
& our people
Consolidated statement
of total comprehensive income
SEKm | Note | 2022 | 2021 |
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 | 2022 | 2021 |
| 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: | |||
| Exchange-rate differences on translation | |||
| of foreign operations | |||
| 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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P. 97Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Financial statements
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INTRODUCTION
OUR STRATEGIC FOUNDATION
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OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
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Financial
information
Introduction
Operations
& our people
Consolidated
balance sheet
| December 31 | December 31 | ||
SEKm | Note | 2022 | 2021 |
| 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 | 2022 | 2021 |
| 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, 2021 | ||||||
Income for the period | – | – | – | |||
| 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, 2021 | ||||||
Opening balance, January 1, 2022 | ||||||
Income for the period | – | – | – | |||
| 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 | ||||||
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Consolidated
cash flow statement
SEKm | Note | 2022 | 2021 |
| 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 accounts payable | |||
| Change in other operating assets, liabilities and provisions | – | ||
Cash flow from change in operating assets and liabilities | – | ||
| Cash flow from operations | |||
| Investments | |||
| Acquisition of operations | 25 | – | |
| Divestment of operations | 25 | – | |
| Capital expenditure in property, plant and equipment | 12 | – | – |
| Capital expenditure in other intangibles | 13 | – | – |
| Other | |||
Cash flow from investments | – | – | |
| Cash flow from operations and investments | – |
SEKm | Note | 2022 | 2021 |
| 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 2022 2021
Net sales 4
2,963
2,364
Cost of goods sold
–2,078 –1,691
Gross operating income
885 673
Selling expenses
–405 –349
Administrative expenses
–222 –185
Other operating income/expenses
6 –20 11
Operating income
238 150
Financial income/expenses
9 660 369
Impairment of shares in subsidiaries
14 –467 –
Income after financial items
431 519
Appropriations
29 12 5
Income before taxes
443 524
Taxes
10 –51 –35
Income for the period
392 489
SEKm Note 2022 2021
Income for the period
392 489
Items that may be subsequently reclassified
to income for the period:
Exchange-rate differences on translation
of foreign operations
3 –
Other comprehensive income, net of tax
3 –
Total comprehensive income for the period
395 489
Parent Company statement of
total comprehensive income
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balance sheet
SEKm Note
December 31
2022
December 31
2021
ASSETS
Non-current assets
Property, plant and equipment, owned
12 216 225
Intangible assets
13 38 61
Deferred tax assets
10 14 13
Shares in subsidiaries
14, 30 5,946 6,422
Long-term receivables from subsidiaries
14 2,890 2,560
Total non-current assets 9,104 9,281
Current assets
Inventories
15 303 209
Receivables from subsidiaries
746 584
Trade receivables
17 332 265
Tax assets
59 44
Other current assets
208 41
Short-term financial assets
200 –
Cash and cash equivalents
18 677 391
Total current assets 2,525 1,534
Total assets 11,629 10,815
SEKm Note
December 31
2022
December 31
2021
EQUITY AND LIABILITIES
Restricted equity
Share capital
20 29 29
Statutory reserve
5 5
Development reserve
6 10
40 44
Non-restricted equity
Retained earnings
6,103 5,774
Income for the period
392 489
6,495 6,263
Total equity 6,535 6,307
Untaxed reserves 97 108
Non-current liabilities
Other provisions
104 95
Other non-current loans
2,824 1,215
Total non-current liabilities 2,928 1,310
Current liabilities
Payables to subsidiaries
1,301 1,418
Trade payables
388 337
Tax liabilities
64 38
Other liabilities
315 253
Short-term borrowings
– 1,039
Other provisions
1 5
Total current liabilities 2,069 3,090
Total equity, untaxed reserves, and liabilities 11,629 10,815
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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, 2021 29 5 13 – 5,794
5,841
Income for the period
– – – – 489
489
Total comprehensive income for the period
– – – – 489 489
Share-based Incentive program
– – – – 7
7
Equity swap for share-based incentive program
– – – – –30
–30
Development reserve
– – –3 – 3
–
Total transactions with equity holders
– – –3 – –20 –23
Closing balance, December 31, 2021
29 5 10 – 6,263 6,307
Income for the period
– – – – 392
392
Exchange differences on translation of foreign operations
– – – – 3
3
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 – 6 495 6 535
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Parent Company
cash flow statement
SEKm Note 2022 2021
Operations
Operating income
238 150
Depreciation and amortization
12, 13 64 63
Other non-cash items
10 –
Financial items paid, net
26 –4
Taxes paid
–41 –74
Cash flow from operations, excluding change
in operating assets and liabilities 297 135
Change in operating assets and liabilities
Change in inventories
–94 –15
Change in trade receivables
–66 –18
Change in accounts payable
51 84
Change in other operating assets, liabilities and provisions
–63 13
Cash flow from change in operating assets and liabilities –172 64
Cash flow from operations
125 199
Investments
Capital expenditure in property, plant and equipment
12 –21 –42
Cash flow from investments –21 –42
Cash flow from operations and investments
104 157
SEKm Note 2022 2021
Financing
Change in short-term investments
–200 –
Change in internal lending and borrowing
–564 –1,515
Change in external short-term borrowing
18 –1,129 635
New long-term borrowing
18 1,610 615
Equity swap for share-based incentive program
–33 –30
Dividend to shareholders
–144 –
Dividend from subsidiaries
642 104
Cash flow from financing 182 –191
Total cash flow
286 –34
Cash and cash equivalents at beginning of period
391 425
Cash and cash equivalents at end of period
677 391
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| The consolidated financial statements include Electrolux | |
| Professional AB and all companies over which the Parent Company |
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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 2022-01-01
–2022-12-31. The annual accounts and consolidated accounts of the
company are included on pages 91–141 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 2022 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 2022 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
committee in accordance with the Audit Regulation (537/2014/EU)
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/EU) Article 5.1 have been provided to the audited com-
pany or, where applicable, its parent company or its controlled
companies 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 11,037 MSEK and consists of a
large number of transactions that mainly comprises sales of appli-
ances and spare parts. Revenue recognition cut off constitutes a
key audit matter in our audit.
The Group’s accounting principles and disclosures related to
revenue 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 1,981 MSEK and is held by several
production and sales units in different countries. Valuation of inven-
tory requires clear policies among other things related to provisions
for obsolescence which is subject to management’s estimates
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
inventory 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
obsolescence.
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 1–9,
11–47, 67, 80–88, 145–148, 164–169. 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.
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Financial
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INTRODUCTION
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OPERATIONS & OUR PEOPLE
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Financial information, contents
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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 2022-01-01 – 2022-12-31 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,
liquidity 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 2022-01-01 – 2022-12-31.
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
responsibilities 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.
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8
Financial
information
Introduction
Operations
& our people
Financial
information
INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
Financial information, contents
Administration report
Financial statements
Notes
The Board’s assurance
Auditor’s report
OTHER INFORMATION
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.
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
report.
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 68-79 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
accordance with the Annual Accounts Act.
Deloitte AB, was appointed auditor of Electrolux Professional AB
(publ) by the general meeting of the shareholders on 28 April 2022
and has been the company’s auditor since 1 June 2018.
Stockholm 29 March 2023
Deloitte AB
Jan Berntsson
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.
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P. 145Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Six years in summary
Introduction Operations
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Other
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
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Share & shareholders
Our history
9
Six years in summary
SEKm
2022 2021 2020 2019 2018 2017
Food & Beverage
Net sales
7,290 4,704 4,198 5,895 5,399 4,922
EBITA*
679 299 87 568 629 607
EBITA, %*
9.3 6.4 2.1 9.6 11.7 12.3
Operating income*
542 244 35 522 599 572
Operating margin, %*
7.4 5.2 0.8 8.9 11.1 11.6
Laundry
Net sales
3,747 3,159 3,065 3,386 3,267 2,801
EBITA*
608 492 467 507 573 502
EBITA, %*
16.2 15.6 15.2 15.0 17.6 17.9
Operating income*
590 475 452 488 558 499
Operating margin, %*
15.7 15.0 14.7 14.4 17.1 17.8
Group shared cost
Operating income*
-177 –128 –100 –18 –14 –11
Total Group
Net sales
11,037 7,862 7,263 9,281 8,666 7,723
EBITA*
1,111 663 456 1,058 1,188 1,098
EBITA, %*
10.1 8.4 6.3 11.4 13.7 14.2
Operating income*
955 592 387 992 1,143 1,060
Operating margin, %*
8.7 7.5 5.3 10.7 13.2 13.7
*) Alternative performance measure.
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P. 146Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Six years in summary
Introduction Operations
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Other
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Introduction
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SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
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Sustainability notes
Auditor’s report on
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Our history
SEKm, if not otherwise stated
2022 2021 2020 2019 2018 2017
Net sales
11,037 7,862 7,263 9,281 8,666 7,723
Organic growth, %*
16.9 10.6 –21.0 –0.3 4.1 5.6
EBITA*
1,111 663 456 1,058 1,188 1,098
EBITA, %*
10.1 8.4 6.3 11.4 13.7 14.2
Operating income*
955 592 387 992 1,143 1,060
Operating margin, %*
8.7 7.5 5.3 10.7 13.2 13.7
Income after financial items
895 587 363 978 1,134 1,052
Income for the period
686 487 278 663 952 786
Items affecting comparability*
–35 – –77 –32 – –
Capital expenditure*
–139 –159 –273 –257 –169 –167
Operating cash flow after investments*
636 1,116 570 1,138 1,131 1,167
Operating working capital, % of net sales*
16.7 14.9 19.9 17.7 16.3 13.8
Earnings per share, SEK¹
2.39 1.69 0.97 2.31 3.31 2.74
Dividend per share, SEK
1,
²
0.70 0.50 – – – –
Equity per share, SEK, ¹
,
³
14.86 12.27 9.74 9.43 31.91 8.43
Net debt*
2,050 1,705 549 1,025 –226 –481
EBITDA*
, 4
1,369 886 684 1,280 1,363 1,253
Net debt/EBITDA ratio*
1.5 1.9 0.8 0.8 –0.2 –0.4
Average number of shares, million¹
287 287,4 287,4 287,4 287,4 287,4
Number of employees, end of period
4,022 3,973 3,515 3,624 3,555 3,183
*) Alternative performance measure.
1) Basic number of outstanding shares.
2) 2022; proposed by the Board.
3) Year 2020 has been restated.
4) Rolling four quarters.
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P. 147Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Definitions & glossary
Introduction Operations
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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 the Net sales are mainly in
other currencies. Organic growth is dependent on fluctuations in SEK versus
other currencies, and acquired or divested business can additionally have
an impact on reported net sales. Organic growth adjusted for acquisitions
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 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, regard-
less of the method of financing (then 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 that 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 down or signifi-
cant down-sizing of major units or activities, significant impairment,
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 below. 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/
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P. 148Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Definitions & glossary
Introduction Operations
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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 Company.
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 receiv-
ables 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 equiva-
lents, 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 percentage of 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.
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Operations
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GLOBAL TRENDS & MARKETS
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OPERATIONS & OUR PEOPLE
SUSTAINABILITY
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FINANCIAL INFORMATION
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9
Sustainability notes
Sustainability notes
150
Auditor’s report on the sustainability report
162
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Operations
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
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FINANCIAL INFORMATION
OTHER INFORMATION
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Auditor’s report on
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Share & shareholders
Our history
9
About this report
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 Report-
ing 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 highlight our ambitions in
a number of significant areas. As a
signatory of the UN Global Com-
pact, Electrolux Professional uses
this report to highlight progress
regarding the 10 principles.
External assurance
Our auditors, Deloitte, have per-
formed a limited assurance of this
Sustainability Report. See page 162
for the limited assurance report.
Scope of the report
The Sustainability Report is pub-
lished annually. This report covers
data that has been collected for
the 2022 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 in page 41 and page
60 in the Annual report.
The environmental data in this
report covers 12 (11) manufacturing
sites and all R&D, logistic centers,
and offices where we have manu-
facturing sites. It also includes the
former manufacturing site in Louis-
ville 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 rele-
vance and/or data availability. His-
torical baselines for performance
indicators are not fully comparable
as acquired operations are inte-
grated within the report.
Re-statements
Due to error found in reported
energy data for Troyes site in 2021,
this has been updated in 2022
report. Resulting in a higher direct
CO
2
emission by 9% in 2021.
Assumptions and calculations
Emission factors are based on the
“Emission factors 2022 edition” pro-
vided by the International Energy
Agency (IEA). Values used in the
report are offset by a three-year
period (2022 using figures for 2019).
The company uses zero as the
emission factor for use of renew-
able energy.
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 footnotes.
Deviations from GRI Standards
GRI 201-1 Direct economic value
generated and distributed: Direct
economic value distributed is
based on operating cost instead of
actual value distributed (payments)
during the period.
GRI 2-21 Annual total compen-
sation ratio: Information on ratio
according to 2-21-a and 2-21-b not
disclosed, since too extensive to
collect information from the various
systems to calculate.
GRI 301 Material: No topic-spe-
cific disclosures are included in the
report. The reason for exclusion is
mainly related to poor availability
of data for part of the reporting
scope. Information about spend per
category is disclosed on page 43.
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.
GRI 306 Waste: Only reporting
on topic disclosure.
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 in-
cluded based on local selection.
On some sites a small number of
the white-collar employees is not
included, depending on local re-
porting practices.
GRI 405-1 Diversity of gover-
nance 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.
Sustainability management and governance
The Board of Directors decides on the strategy, direction, and over-
all targets of the Group’s sustainability work. The Group Manage-
ment Team further defines and implements procedures. Each local
management and business function has a delegated responsibility
for the implementation of group policies and risk mitigation and
performance.
The Group Sustainability function supports the business by identi-
fying the prioritized and strategic sustainability issues and helps in-
tegrate them into the business. The function also monitors the overall
performance through dialog, performance data, and audit results.
Performance is reported to the Group Management Team.
Sustainability Board
During 2022 a Sustainability Board was established to share the sus-
tainability information, collect feedback, oversee the implementation
of the Group’s sustainability strategy across the whole organization,
and strengthen the governance of the sustainability work. Sustain-
ability board is chaired by Group Sustainability Vice President who
reports the performance of the Sustainability Board to the Group
Management and the Board of Directors.
The Sustainability Board has taken decision on:
- Creating a sustainability network
- Allocate resources for conflict mineral compliance
- Evaluate software platform for digitalizing sustainability data
reporting
Code of Conduct governance
Business ethics and code of conduct expectations of managers
and employees are published on the Group’s intranet. A Code of
Conduct Steering Group has been established and meets regularly
to follow up on the effectiveness of the program, in particular our
whistleblowing procedures.
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Operations
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OPERATIONS & OUR PEOPLE
SUSTAINABILITY
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FINANCIAL INFORMATION
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Definitions & glossary
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Our history
9
Contextual information
The Taxonomy should support a
transition to an economy that is
consistent with the environmental
objectives of the European Union
(EU). The Taxonomy includes defi-
nitions of economic activities that
are considered eligible, as well as
technical screening criteria for eco-
nomic activities that are classified
as environmentally sustainable.
Electrolux Professional pro-
vides professional food service,
beverage, and laundry solutions,
serving a wide range of customers
globally, from restaurants and ho-
tels to healthcare, educational and
other service facilities. There are no
specific screening criteria defined
for manufacturing of professional
food, laundry and beverage ap-
pliances related to climate change
mitigation and adaptation (includ-
ing enabling economic activity
within other sectors). Electrolux
Professional recognizes that the
EU Taxonomy framework is in
development and that our report-
Reporting in accordance with the EU Taxonomy regulation
ing will evolve as more targets are
adopted and more guidance/
practices are established. The com-
pany takes into account that the
European Commission is consider-
ing the introduction of additional
technical screening criteria. At this
point none of Electrolux Profession-
als product or service offerings are
classed as economic activeties that
are considered eligible according
to the EU Taxonomy regulation.
Assessment of compliance
with the regulation
The Taxonomy includes definitions
of economic activities that are con-
sidered eligible, as well as techni-
cal screening criteria for economic
activities that are classified as envi-
ronmentally sustainable. Electrolux
Professional has screened activities
that may potentially be considered
environmentally sustainable, based
on available technical screening
criteria. Electrolux Professional
considers economic activities that
are eligible where such technical
screening criteria are available.
The EU Taxonomy under the cat-
egory 3.5 Manufacture of energy
efficiency equipment for build-
ings, specifies technical screening
criteria for household appliances
with energy labeling requirements
in accordance with Regulation (EU)
2017/1369. Electrolux Professional
sells some limited number of prod-
ucts that fall under this definition
but is not the manufacturer of them.
Only products manufactured in-
house are considered eligible ac-
cording to Electrolux Professional’s
interpretation of the EU Taxonomy.
Electrolux Professional has not
identified any economic activities
that generate eligible turnover,
according to the Taxonomy.
CAPEX/OPEX
As none of Electrolux Professional’s
turnover is considered eligible,
none of its CAPEX/OPEX for assets
or processes are associated with
Taxonomy-aligned economic
activities. Furthermore, the Com-
pany does not have any CAPEX/
OPEX that allows Taxonomy-eligi-
ble economic activities to become
Taxonomy-aligned.
However, we have identified pur-
chases of taxonomy-eligible prod-
ucts and services corresponding to
6% of CAPEX. These are related to
categories 7.3 (roof refurbishment),
7.5 (HVAC management system)
and 7.7 (office leases) of Annex 1 to
the Climate Delegated Act.
Due to lack of more granular
information from suppliers these
identified activities are not verified
according to the substantial con-
tribution criteria, DNSH criteria or
minimum safeguards, but only listed
as taxonomy-eligible.
Accounting policy
Turnover
Turnover is defined as net sales
from products and services
which equals the total net sales
as disclosed in the Consolidated
statement of total comprehensive
income. See page 96.
Capital expenditure
Capital expenditure are addi-
tions 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 2022, includes certain
capitalized assets as found on the
balance sheet.
Operational expenditure
Operational expenditure includes
direct non-capitalized costs related
to R&D costs including variances,
costs for renovating buildings and
offices, short-term lease costs,
costs for maintaining or repair-
ing buildings/offices/production
equipment/forklifts/warehouse
equipment.
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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities - disclosure covering 2022
Substantial contribution criteria DNSH criteria (Does Not Significantly Harm)
Economic activities Code(s)
Absolute
turnover
Proportion
of turnover
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safe-
guards
Taxonomy
-aligned
proportion
of turnover,
2022
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE
ACTIVITIES
A.1 Environmental sustainable
activities (Taxonomy-aligned)
Turnover of environmental
sustainable activities
(Taxonomy-aligned (A.1) 0 –%
–%
A.2 Taxonomy-Eligible but not
environmental sustainable
activities (not Taxonomy-
aligned activities)
Turnover of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2) 0 –%
Total (A.1 + A.2) 0 –%
B. TAXONOMY-NON-
ELIGIBLE ACTIVITIES
Turnover of Taxonomy-
non-eligible activities (B) 11,037 100%
Total (A + B) 11,037 100%
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Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering 2022
Substantial contribution criteria DNSH criteria (Does Not Significantly Harm)
Economic activities Code(s)
Absolute
CapEx
Proportion
of CapEx
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safe-
guards
Taxonomy
aligned
proportion
of CapEx,
2022
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE
ACTIVITIES
A.1 Environmental sustainable
activities (Taxonomy-aligned)
CapEx of environmental
sustainable activities
(Taxonomy-aligned (A.1) 0 -% -%
A.2 Taxonomy-Eligible but not
environmental sustainable
activities (not Taxonomy-
aligned activities)
Installation, maintenance and re-
pair of energy efficiency equipment
7.3 12 6%
Installation, maintenance and
repair of instruments and devices
for measuring, regulation and
controlling energy performance of
buildings
7.5 1 0%
Acquisition and ownership of
buildings
7.7 6 3%
CapEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2) 18 10%
Total (A.1 + A.2) 18 10%
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
CapEx of Taxonomy-
non-eligible activities (B) 172 90%
Total (A + B) 190 100%
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Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering 2022
Substantial contribution criteria DNSH criteria ( Does Not Significantly Harm)
Economic activities Code(s)
Absolute
OpEx
Proportion
of OpEx
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaption
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safe-
guards
Taxonomy
aligned
proportion
of OpEx,
2022
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE
ACTIVITIES
A.1 Environmental sustainable
activities (Taxonomy-aligned)
OpEx of environmental
sustainable activities
(Taxonomy-aligned (A.1) 0 –%
–%
A.2 Taxonomy-Eligible but not
environmental sustainable
activities (not Taxonomy-
aligned activities)
OpEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2) 0 –%
Total (A.1 + A.2) 0 –%
B. TAXONOMY-NON-
ELIGIBLE ACTIVITIES
OpEx of Taxonomy-
non-eligible activities (B) 508 100%
Total (A + B) 508 100%
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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
2018
9,044 0 4,391 18,453 31,888 15,563 16,325 31,888
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
2,773 254 0 7,230 10,256 0 10,256 10,256
Total 12,202 1,241 3,936 24,386 41,765 15,592 26,172 41,765
1) Electrolux Professional did not previusly report on site generated electricity to the Electrolux Group. On site generated Electricity is included
in above values.
Note: The baseline in not fully comparable as 5 acquired plants were added during 2018 and 2019.
Note: The baseline in not fully comparable as 2 acquired plants were added during 2022 (Unified Brands US).
Note: Data for 2021 has been corrected due to an error in previously reported data.
Own disclosure - Product water consumption
2019 2020 2021 2022
Product water consumption efficiency
compared to 2019 0% 1.5% 2.3%
2.4%
Only includes dishwashing and laundry. Target to improve efficiency by 8% by year-end 2025
(base year 2019).
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
2018
96 96
2019
94 94
2020
83 1 84
2021
67 1 1 69
2022
Electrolux Professional
exl. Unified Brands
60 1 1 62
Unified Brands
1 0 0 1
Total 61 1 1 63
1) 1 megaliter equals 1,000 m
3
.
2) Internal risk area defined by 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 5 acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as 2 acquired plants were added during 2022 (Unified Brands US).
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Waste
1, 2
GRI 306-3 and 306-4
2022
Metric
kiloton
% of non-
hazardous
waste
Recovery
(%)
Disposal
(%)
Landfill
0.5 10% 10%
Incineration (without energy recovery)
0.0 1% 1%
Waste-to-Energy
0.5 9% 9%
Recycling
4.2 77% 77%
Other recovery
0.2 3% 3%
Total non-hazardous waste 5.4 100% 81% 19%
2022
Metric
kiloton
% of non-
hazardous
waste
Recovery
(%)
Hazardous waste
Disposal without energy recovery
0.1 25%
Recycling
0.2 52% 52%
Other/Unspecified
0.1 22%
Total hazardous waste 0.4 100% 52%
2022 (metric kiloton)
Non-
hazardous
waste
Hazardous
waste Total % of total
Total
Disposal without energy recovery
0.6 0.1 0.7 11%
Waste-to-energy
0.5 0.2 0.7 12%
Recovery
4.4 4.4 75%
Other/unspecified
0.1 0.1 2%
Total 5.4 0.4 5.8 100%
Percentage of total 93% 7% 100%
1) All waste is directed to and diverted from disposal offsite.
2) Only disclosing data for 2022.
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
2018
48 29 0 0 77
2019
50 25 0 0 74
2020
42 33 0 0 75
2021
36 26 0 0 62
2022
Electrolux Professional
exl. Unified Brands
5 51 0 0 56
Unified Brands
1 0 0 0 1
Total 6 51 0 0 57
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 5 acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as 2 acquired plants were added during 2022 (Unified Brands US).
Emission
GRI 305-1 and 305-2
GRI 305-1 GRI 305-2 Own disclosure
Year
Direct CO
2
e
emissions
1), 2)
(metric kton)
Indirect CO
2
e
emissions
(metric kton)
Total CO
2
e
(metric kton)
Use of HFC/HFO
gases
(ton)
2018
1.7 1.7 3.5
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
exl. 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
1) Includes contributions from energy use and Green House Gas emissions.
2) Natural gas emission factors defined as combustion of gas with zero CO content.
3) Emissions from use of renewable energy calculated as zero.
Note: The baseline is not fully comparable as 5 acquired plants were added during 2018 and 2019.
Note: The baseline is not fully comparable as 2 acquired plants were added during 2022 (Unified Brands US).
Note: Direct CO
2
emission 2021 updated, as it was incorrect, corrected in 2022 report. +9% (Troyes site).
With a re-calculated baseline from 2015 (incl UB), Total CO
2
emissions reduced by 45%.
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People data
General
Gender balance employees
Gender balance employees
in managerial position
Production/
non-production
Covered by collective
bargaining agreements
1
Total number of
employees Male Female Male Female Production
Non-
production Coverage
4,022
69% 31% 74% 26% 43% 57% 44%
2,775 1,247 417 144 1,734 2,288 1,773
1) For employees who are not covered by collective bargaining, contractual conditions are defined in agreement with local legislation requirement.
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 employees
¹
1,247 2,775 0 0 4,022
Number of permanent employees
1,222 2,747 0 0 3,969
Number of temporary employees
25 28 0 0 53
Number of non-guaranteed-hours employees
Unavailable Unavailable Unavailable Unavailable Unavailable
Number of full-time employees
1,110 2,747 0 0 3,857
Number of part-time employees
137 28 0 0 165
Breakdown by region Europe US APAC EMEA Total
Number of employees
2,638 773 579 32 4,022
Number of permanent employees
2,593 770 574 32 3,969
Number of temporary employees
45 3 5 0 53
Number of non-guaranteed-hours employees
Unavailable Unavailable Unavailable Unavailable Unavailable
Number of full-time employees
2,479 769 579 32 3,859
Number of part-time employees
159 4 0 0
163
Workers who are not employees
2
Total number of workers who are not employees and whose work is controlled by the organization
634
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, 2022). 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
257 417 0 0 239 350 85 305 296 67 6 674
Rate of new employee hires during the
reporting period
21% 15% 0% 0% 74% 16% 6% 11% 41% 11% 20% 17%
Total number of employee turnover
during the reporting period
195 398 0 0 139 291 163 288 221 80 4 593
Rate of employee turnover during the
reporting period
16% 14% 0% 0% 43% 13% 11% 11% 31% 14% 13%
15%
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
9.3 10.8 0 na 10.4 9.8 11 10.4
Number of training hours
1)
11,635 29,838 0 473 41,945 22,504 19,441 41,945
Number of training hours only
Code of Conduct
3)
260 552 0 1 813 350 464 813
Percentage of employees who received
a performance review in 2022
2)
57% 60% 0 0 59% 85% 25% 59%
Number of employees who received a
performance review in 2022
708 1,673 0 0 2,381 1,943 438 2,381
Percentage of employees participating
in Code of Conduct training in 2022
3)
28% 27% 0 0%
27%
20% 36%
27%
Number of employees participating in
Code of Conduct training in 2022
347 736 0 1
1,084
466 618
1,084
Note: * The number of not-disclosed employees is not available, so the correct average cannot be provided.
1) Number of hours is to some extent based on engineering estimates.
2) Including production and non-production employees. Ratio of perfomance 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
2022 2021 2020 2019 2018
Number of work-related fatalities
0 0 0 0 0
Number of high-consequence injures > 6
month
1 0 0 1 0
Total number of work-related lost time
injuries
18 14 19 25 16
Working hours (in thousands of hours)
5,588 4,062 3,453 3,569 3,770
Rate of fatalities as a result of work-related
injury
0 0 0 0 0
Rate of high-consequence work-related
injuries (excluding fatalities)
1 0 0 0,1 0
Lost Time Injury rate
1)
0.64 0.69 1.10 1.40 0.85
1) Own definition (Lost time injuries per 200 000 worked hours)
Note: One high-consequence injury occurred in 2022 in the Vallenoncello site, involving a lifting platform that hit an
employee on the leg when it was being driven. The employee required surgery. The most common injures are
lacerations and contusions (7 out of 18). The most commonly injured body part was the hand or arm (7 out of 18).
More severe risks are related to forklift traffic and machines. Most lost time injuries in 2022 occurred in our assem-
bly stations.
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
2022 Female Male <30 30–50 > 50
Board of Directors
2)
43% 57% -% 29% 71%
Group Management 18% 82% -% 27% 73%
Employees
2)
31% 69% 11% 53% 36%
Managerial positions 26% 74% 2% 60% 38%
1) Does not include employee representatives.
2) Age distribution data is based on year-end data collected from central or local/reginal 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 91
2-2 Entities included in the organization’s sustainability reporting 138–139
2-3 Reporting period, frequency and contact point 150
Contact point: Swapnil
S Choudhari, VP Group
Sustainability & Quality
(swapnil.s.choudhari@elec-
troluxprofessional.com)
2-4 Restatements of information 150
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 44 ,157
2-9 Governance structure and composition 67–69, 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
68–73
2-13 Delegation of responsibility for managing impacts 68–73
2-14 Role of the highest governance body in sustainability reporting 150
Page/Information
2-15 Conflicts of interest 75–79
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 80–81, 94
2-20 Process to determine remuneration 80–81, 94
2-22 Statement on sustainable development strategy 4–5
2-23 Policy commitments 64–65
2-24 Embedding policy commitments 64–65
2-25 Processes to remediate negative impacts 46, 52, 58, 64, 83–87, 150
2-26 Mechanisms for seeking advice and raising concerns 46
2-27 Compliance with laws and regulations 64, 75
2-28 Membership associations Not followed at group level
2-29 Approach to stakeholder engagement 64–65
2-30 Collective bargaining agreements 157
3-1 Process to determine material topics 50
3-2 List of material topics 50–52, 161
3-3 Management of material topics 50–51, 161
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Auditor’s report on
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9
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 64, 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 prior to 2016
Other sites included 2016 or prior. 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 fron 2018:
Rayong (beverage) and Shanghai
Other sites included prior to 2016
Other sites included 2016 or prior
155
GRI 303-4 Water discharge
156
GRI 304 Biodiversity
GRI 304-1 Operational sites owned, leased,
managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protect-
ed areas 60
GRI - topic specific indicators
Page/Information
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 prior
156
GRI 305-2 Energy indirect (Scope 2) GHG
emissions
156
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)
GRI 401-1 New employee hires and
employee turnover 158
GRI 403 Occupational health and safety (2018)
GRI 403-9 Work-related injuries Sites above is referred to the full
scope of operations located on
the site (manufacturing, R&D, office
functions etc.) 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 reviews 158
GRI 405 Diversity and equal opportunity (2016)
GRI 405-1 Diversity of governance bodies
and employees 159
Gender distribution 157
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Operations
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
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 2022. 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 93.
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 inter-
nal 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
information presented and does therefore not cover future-oriented
information.
We conducted our limited assurance engagement in accordance
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 according to
RevR 12 is different and substantially less in scope than an audit con-
ducted 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.
The limited assurance procedures performed and the examina-
tion 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 29 March 2023
Deloitte AB
Jan Berntsson Adrian Fintling
Authorized Public Accountant Expert Member of FAR
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
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Our history
Share and shareholders
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Global trends
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P. 164Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Share and shareholders
Operations
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
Share price and trading
Between January 1, 2022 and De-
cember 31, 2022 a total of 159 mil-
lion Electrolux Professional shares
were traded, amounting to a value
of SEK 8,592m. This corresponds to
a daily volume of 631,723 shares.
Trading on Nasdaq Stockholm
accounted for 48%, Cboe Europe for
45% and Turquoise Europe for 4%.
The highest bid price (last price
paid) during 2022 was SEK 70.20
on January 31, 2022. The lowest
last price paid was registered on
November 11, 2022 at SEK 39.24.
During the period, the Electrolux
Professional B share price de-
creased by 31.96%, while Nasdaq
OMX Stockholm PI decreased by
25.15%.
Share ownership structure
At December 31, 2022 Electrolux
Professional AB had 46,436 regis-
tered shareholders.
At December 31, 2022, Investor
AB was the largest shareholder
with a holding representing 32.4%
of the votes and 20.5% of the
capital in the company. The second
largest shareholder was Swedbank
Robur with 8.2% of the votes and
10.3% of the capital. Alecta Pension
was the third largest shareholder
with 7.4% of the votes and 7.8% of
the share capital.
Share information
According to Electrolux Profes-
sional’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, 2022, the
company’s registered share cap-
ital amounted to SEK28,739,745,
represented by 287,397,450 shares
of which 8,045,314 were Class A
shares and 279,352,136 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 accor-
dance 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
Owner distribution,
% of capital
Swedish Institutional
Owners 64.5%
Foreign Institutional
Owners 20.5%
Swedish Private Individuals 7. 3%
Other 1.4%
Anonymous ownership 6.3%
Share price performance, 2022
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
approximately 30% of the in-
come for the year. Any dividend
is normally resolved upon by the
Annual General Meeting. The An-
nual General Meeting of Electrolux
Professional will be held on April
26, 2023.
The Board of Directors proposes
to distribute a dividend to the share-
holders of SEK 0.70 (0.50) per share
for the 2022 financial year corre-
sponding to approximately 30% of
the profit for the year. This is in line
with the policy to pay approximate-
ly 30% of net income in dividends.
The proposed record date is April
28, 2023 and payment is expected
to be made on May 4, 2023.
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
Delisting of Class A shares
In September 2020, the Company’s series A
shares were delisted from Nasdaq Stockholm.
Conversion of Class A shares
Shareholders who hold Class A shares are
entitled to convert their shares to Class B
shares. In 2022, 2,668 Class A shares were
converted to Class B shares.
Ownership structure
On December 31, 2022, Electrolux Professional Group had 46,436 registered shareholders.
The table below shows Electrolux Professional Group’s ownership structure on December 31 ,2022.
Owners EPRO A EPRO B Capital, % Votes, % ∆ Capital, %
Investor
6,420,771 52,520,883 20.51 32.44
Swedbank Robur Funds
29,503,708 10.27 8.20 0.52
Alecta Tjänstepension
453,900 22,025,098 7.82 7.38
Handelsbanken Funds
22,295,858 7.76 6.20 0.13
Second Swedish National Pension Fund
12,732,997 4.43 3.54
ODIN Funds
10,500,000 3.65 2.92
First Swedish National Pension Fund
10,307,235 3.59 2.86
Nordea Funds
9,841,288 3.42 2 .74 0.25
C WorldWide Asset Management
7,350,000 2.56 2.04
Investering & Tryghed A/S
6,327,685 2.20 1.76 0.62
Norges Bank
5,779,238 2.01 1.61 0.13
Didner & Gerge Funds
4,931,320 1.72 1.37 0.09
BlackRock
3,941,950 1.37 1.10 0.01
Cliens Funds
3,819,506 1.33 1.06
Länsförsäkringar Funds
2,739,771 0.95 0.76 0.02
Total top 15
6,874,671 204,616,537 73.59 75.98 1.78
Others
1,170,643 74,735,599 26.41 24.02 -1.78
Total
8,045,314 279,352,136 100.00 100.00 0.00
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream.
Owner distribution by country
December 31, 2022
Country
Number of
shares Capital, % Votes, %
Number of
known owners
Share of known
owners, %
Sweden 208,450,248 72.53 78.02 44,640 96.13
Norway 17,054,247 5.93 4.74 296 0.64
Denmark 15,559,907 5.41 4.33 423 0.91
United States 22,167,131 4.40 3.51 160 0.34
Finland 10,784,675 3.75 3.00 165 0.36
Other countries 4,709,229 1.64 1.32 750 1.62
Unknown country 8,672,013 6.33 5.07 2 0.00
Total 287, 397,450 100.00 100.00 46,436 100.00
Data compiled by Modular Finance. Sources: Euroclear, Morningstar, Finansinspektionen, Millistream.
Trading 2022
EPRO B Large Cap Stockholm
Average daily turnover 16,203,675 122,862,285
Average daily turnover rel. mcap 0.11% 0.25%
Average daily shares traded 299,850 1,326,393
Number of shares traded 75,861,977 56,179,364,829
Average trades per day 765 2,799
Number of trades 193,601 118,530,910
Average value per trade 21,175 33,987
High 70.20 –
Low 39.24 –
Volume-Weighted Average Price (VWAP) 54.04 –
Central securities depository
The Company’s shares are book-entry reg-
istered in a securities register in accordance
with the Swedish Central Securities Deposi-
tory and Financial Instruments Accounts Act
(Sw. lagen (1998:1479) om värdepappers-
centraler och kontoföring av finansiella in-
strument). 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.
Marketplaces, %
2022
Cboe Global Markets 45.03%
ITG 4.46%
LSE Group 2.32%
Nasdaq 47.56%
Nomura Group 0.01%
Sigma-X 0.62%
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P. 166Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Share and shareholders
Operations
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information
Introduction
9
Other
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
Owner distribution by holdings
December 31, 2022
Size class
Number of
shares Capital, % Votes, %
Number of
known owners
Share of known
owners, %
1–1,000
8,925,183 3.11 2.65 42,224 90.93
1,001–10,000
10,132,521 3.53 2.87 3,955 8.52
10,001–20,000
1,379,081 0.48 0.41 100 0.22
20,001–
258,289,140 86.56 89.00 157 0.34
Total
287, 397,450 100.00 100.00 46,436 100.00
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
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 2022, 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
Pareto Securities, Magnus Behm
Contact
IR contact Jacob Broberg
Chief Communication
and Investor Relations Officer
Telephone: +46 70 190 00 33
jacob.broberg@electroluxprofessional.com
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
Annual General Meeting
The Annual General Meeting of Electrolux Professional will be
held on April 26, 2023,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 2023
Date
Interim report Q1, January – March 2023
April 25, 2023
Annual General Meeting
April 26, 2023
Proposed dividend record date
April 28, 2023
Proposed dividend payment
May 4, 2023
Interim report Q2, April – June 2023
July 21, 2023
Interim report Q3, July – September 2023
October 27, 2023
Year-end report, Q4, October – December 2023
February 1, 2024
These key strengths and competitive advantages drive our development and per-
formance, and they all provide a strong foundation for us to execute our strategy.
Strong position in structurally
growing underlying end-markets
(before and after the corona
virus pandemic).
Well positioned
to meet customer needs.
Differentiated market position
as a full-solution provider.
Innovation-focused with
attractive pipeline of product
launches.
Global manufacturing base
and local salesforce to support
customers.
Further upside to financial
profile from growth in restaurant
chains.
Why invest in Electrolux Professional?
Our strategic
foundation
Global trends
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segments
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risk management
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Contents
P. 168Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our history
Operations
& our people
Other
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Introduction
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OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & 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.
Electro Helios in 1962
The kitchen operations
were created as a result of
the merger with Swedish
Elektro-Helios in 1962.
Elektro-Helios was estab-
lished in Sweden in 1919.
Acquisitions
Wascator in 1972
Wascator
was founded in
Stockholm in 1902
as a heating sys-
tem and washing
machine specialist.
Zanussi in 1984
Zanussi was established in
1916 producing wood-burn-
ing stoves and grew into an
important player in products
for homes and professional
establishments. A greater fo-
cus on professional activities
followed in 1967 through
the creation of a dedicated
division. In 1968, Zanussi
bought F. Zoppas.
Alpeninox in 1988
Alpeninox, one of
the leading Italian
producers of refrig-
eration equipment
for hotels and
restaurants.
Corporate history
Entered
Professional food
equipment
Entered
Professional
laundry equipment
The business grew
significantly
Business area streamlined
A value creation phase
began in 1996 when
Electrolux Professional
was streamlined and
approximately 20 smaller
plants were closed.
In addition, several other
operations, were divested.
Operational headquarters
in Pordenone, Italy
In 1999, an operational
headquarter for the profes-
sional business area was
established in
Pordenone, Italy.
The business area focused
on two main
product lines, food service
and laundry systems
The international expansion took off
In 2004, Electrolux Professional began to focus
once more on international expansion, establish-
ing and incorporating operational offices in
North America and, in 2005, the industrial facility
in Thailand, where the production of laundry
equipment would cater to the Asia-Pacific region
and other regions. Additional commercial oper-
ations were opened in other parts of the world
such as India, Brazil, and Dubai, UAE.
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P. 169Electrolux Professional Group – ANNUAL AND SUSTAINABILITY REPORT 2022 Our history
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Other
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Introduction
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INTRODUCTION
OUR STRATEGIC FOUNDATION
GLOBAL TRENDS & MARKETS
BUSINESS SEGMENTS
OPERATIONS & OUR PEOPLE
SUSTAINABILITY
GOVERNANCE &
RISK MANAGEMENT
FINANCIAL INFORMATION
OTHER INFORMATION
Six years in summary
Definitions & glossary
Sustainability notes
Auditor’s report on
the sustainability report
Share & shareholders
Our history
Shanghai
Veetsan
Commercial
Machinery in
2015
Shanghai Veet-
san Commercial
is a manufactur-
er of profession-
al dish washers
in China.
Grindmaster-
Cecilware in 2017
Grindmaster-
Cecilware was
a US-based
manufacturer of
hot, cold, and
frozen bever-
age dispensing
equipment,
including coffee
machines.
Schneidereit
in 2018
Schneidereit,
a supplier of
laundry rental
solutions
for professional
customers in
Germany and
Austria.
Unic in 2019
A French
manufacturer
of automat-
ic as well as
traditional
espresso coffee
machines.
SPM in 2018
SPM, an Italian
manufacturer of
frozen bever-
age equipment.
A stronger
position in
China and the
Asia-Pacific
region.
Entered
Professional
beverage
equipment and a
stronger position
in the US market.
An independent
company
In 2020 Electrolux
Professional was
listed on Nasdaq
Stockholm as an
independent
company.
Expansion
in beverage
equipment.
Unified Brands
in 2021
A leading
US-based
manufacturer
of food-service
equipment.
A stronger
position in the
US.
2022 Electrolux
Professional Group
To clarify the roles of
Electrolux Professional
as both a company,
and a business brand,
the corporate brand
Electrolux Professional
Group is introduced.
PRODUCTION: Electrolux Professional Group in collaboration with Addira. PHOTOS: Per-Erik Berglund, Znapshot
and Electrolux Professional Group. PRINTING: åtta45 TRANSLATION: Lisa Cockette, Anything English
Operations
& our people
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