Electrolux

1
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)

3
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
9
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

10
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
17
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