Electrolux 85 years of making life a little easier

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Driving Market Penetration ofEnergy Efficient
Appliances
Henrik Sundström Vice President Environmental
AffairsAB Electrolux
2
The Electrolux Group in brief Year 2004

• Sales EURm 13,200- Europe 47-
  North America 39- RoW 14
• Approx. 72,300 team members
• 55 million products sold every year
• Products in over 400 million homes
• (for details see www.electrolux.com)

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Electrolux environmental strategy

• Lead the development of environmentally sound
  products and processes
• Actively develop demand for these products

ER 8100B, winner of the European competition
Energy the most energy-efficient
refrigerator/freezer in Europe 2001
4
Large saving potential by replacing old
appliances
Total CO2 emissions in Europe
5
Cold appliances

• LabelingCouncil Directive 92/75 EEC of 22
  September 1992 on the indication by labelling
  standard product information on the consumption
  of energy other resources by Household
  Appliances
• Energy Efficiency (Sept. 1997)Directive 96/57/EC
  of the European Parliament and of the Council of
  3 September 1996 on energy efficiency
  requirements for household electric
  refrigerators, freezers and combinations thereof
• Unilateral Industrial Commitments (2002)CECED
  voluntary commitment on reducing energy
  consumption of household refrigerators, freezers
  and their combinations
• Unilateral Industrial Commitments (2002) Code of
  Conduct for using A / A declaration
• Labeling (2003)Directive 2003/66 EC to divide
  the existing energy efficiency class A into three
  new categories A, A and A

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Cold appliances energy class development
60
EEI
A
50
40
Market Penetration
30
B
20
C
10
A
D
0
1992
1994
1996
1998
2000
2002
2004
2006
Year
7
Electrolux fleet average 1998 - 2004
Reference year 1998 100
110
1998
100
1999
90
2000
2001
80
2002
70
2003
60
2004
50
Dishwasher
Laundry
Refrigerator
Freezer
Ref/freez.
Chest freez.
3.7/year
3.8/year
4.2/year
4.3/year
4.9/year
1.7/year
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Life cycle cost optimisation
Life Cycle Cost - LCC
A
100
75
50
25
Energy Efficiency Index - EEI
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The Energy (2000 - 2004)

• A promotion program by the European Commission
• and 13 national energy and environmental
  agencies.
• Helping retailers and consumers to identify most
  efficient products- at least 25 better that
  energy class A
• Promoting the development of ultra efficient
  appliances- competition to develop most
  efficient products

• About 40 of the 866 products were produced by
  Electrolux
• Electrolux winning four of the five Energy awards

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Market mechanisms

• Information campaigns
• Labeling
• Reduced VAT on energy efficient products
• Green procurement
• Rebate schemes for energy efficient products
• White certificates
• Tax incentives for producers

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Energy class distribution- by country
Cold appliances Q1 Q2 2005
100
A

• gtA
• 8

80
A
60
40
gtA 66
20
B
C
0
EU(9)
AT
BE
DE
ES
FR
NL
GB
IT
PT
DM
FI
SWE
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The untapped potential- outdated appliances
Large household appliances Total634 m units
Products older than 10 years
Refrigerators 265 m units
Washing machines163 m units
Annual market 58 m units
188 m
88 m
40 m
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Environmental saving potential with best
available product
Comparison between refrigerator/freezer over 15
years
10 year old product, 582 kWh/year
5,000
ERB 3105, 194 kWh/year
4,000
3,000
GWP kg CO2-eq.
2,000
1,000
Electrolux ERB 3105
0
Energy winner
Production
Use
End of Life
Total
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Cold appliances scenario EU(15)
15 years life time
120
100
22 TWh
80
6 TWh
Energy Consumption TWh/year
60
Zero Progress
40
Realistic Scenario
20
Ambitious Scenario
0
1970
1980
1990
2000
2010
2020
MEEuP Report, Van Holsteijn en Kemna 2005
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Environmental break-evenCED fridge-freezers
CED - Cumulative Energy Demand
90,000
1980
80,000
1985
1990
70,000
1995
60,000
2000
2005
50,000
CED MJ
40,000
30,000
20,000
10,000
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Environmental and economic evaluation of the
accelerated replacement of domestic appliances,
June 2005
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Economic break-even pointsCumulated cost
fridge-freezers
1,800
1980
1,600
1985
1990
1,400
1995
1,200
2000
2005
1,000
Cost Euro
800
600
400
200
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Environmental and economic evaluation of the
accelerated replacement of domestic appliances,
June 2005
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Electrolux sales of green range products
Electrolux Green Range 2000-2004
25
2000
2001
20
2002
2003
15
2004
10
5
0
Quantity
Gross Profit
Note! The Green Range is defined to include
10-20 of the Electrolux products with the best
environmental performance. It is revised annually.
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To conclude

• The European household appliance industry has
  been successful with market transformation
  programs, i.e. the CECED Unilateral Industrial
  Programs (UIC)
• UICs have had the objective to achieve a
  productions weighted average of the Lowest Life
  Cycle Cost (LLCC)
• Necessary to involve all actors to promote energy
  efficient products
• Incentives are necessary to promote products
  higher efficiency than LLCC
• The largest environmental savings would be
  accomplished by replacing old, inefficient
  products with new, efficient products

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For more information .
www.electrolux.com/environment