AB Electrolux, a leading global company selling household and
professional
appliances, today announced that it is preparing for the
separation of its
Professional Products business area from the Group. The
Electrolux Board of
Directors has initiated work intending to propose that a
shareholders meeting
decides to split the Group into two listed companies,
“Electrolux” for household
appliances and “Electrolux Professional” for
professional appliances, and to
distribute Electrolux Professional to the
shareholders of AB Electrolux in 2020.
Electrolux Board of Directors believes
that such a split has the potential to
create substantial shareholder value
over time, given that the two businesses
have different end markets, customers
and success drivers.  A split will enable
both companies to focus on their
respective opportunities to drive profitable
growth, with distinct strategies
for innovation and customer focus, as well as a
high level of capital
efficiency. The separation costs are expected to be
relatively low.

Electrolux
Professional is a leading provider of food service, beverage and
laundry
solutions to a wide range of customers, from restaurants and hotels
to
healthcare and other service facilities. It is a global operation with
business
in EMEA, North America and APAC. Its market is characterized by high
demands on
quality and efficient solutions, which requires offering a full set
of best-in
-class products, superior customer care as well as innovation and
investments in
connectivity.

The Electrolux Group’s core consumer business
offers household appliances under
a range of well-established brands including
Electrolux, Frigidaire and AEG. It
holds leading market positions in targeted
areas. Electrolux has a strong track
record and emphasis on innovation for
outstanding consumer experiences. Its
market is characterized by increased
consumer power, sustainability,
digitalization, a growing middle class driving
demand and industry
consolidation.

“Electrolux Professional is the only
supplier in the professional appliances
space with a full and integrated offer
of solutions under one brand. As such, it
has significant potential for
long-term value creation as an agile stand-alone
company, which can pursue
growth through market consolidation and innovation,”
said Staffan Bohman,
Chairman of the Board of Directors of AB Electrolux.
”Electrolux believes its
core consumer business also stands to benefit both in
terms of growth and
margins from a sharpened focus on consumer experience
innovation, the
aftermarket and emerging markets. Electrolux financial targets
will remain
unchanged following a separation of Electrolux Professional.”

The preparations
have been initiated and the Board intends to present a proposal
for the
distribution and listing of Electrolux Professional to a shareholders
meeting.
If the shareholders decide in favor of such a proposal, AB
Electrolux
shareholders will receive shares in Electrolux Professional in
proportion to
their shareholding in AB Electrolux. The intention is to list
Electrolux
Professional on Nasdaq Stockholm during the first half of 2020. The
Board
expects to provide an update on the preparations and a more detailed time
plan
around mid-year 2019.

A distribution of Electrolux Professional is
expected to meet the requirements
of Lex Asea, which in brief means that there
should not be any immediate tax
consequences for Sweden-based shareholders of
AB Electrolux since they should
only be taxed on the value of the shares
received in Electrolux Professional
when they sell them.

Electrolux will
publish its results for the fourth quarter on February 1, 2019,
at 08.00 CET. A
telephone conference will be held following the release of the
results,
starting at 09.00 CET and continuing until 10.30 CET to allow time
for
questions also relating to the contemplated split.

The conference will be
chaired by Jonas Samuelson, President and CEO of
Electrolux. Mr. Samuelson will
be accompanied by Therese Friberg, CFO. The
details for participation by
telephone are as follows:

Participants in Sweden should call +46 8 566 426
62

Participants in UK/Europe should call +44 203 008 9806

Participants in US
should call +1 855 831 5945
For further information, please contact:


Daniel
Frykholm, Electrolux Press Hotline, +46 8 657 65 07.

This is information that
AB Electrolux is obliged to make public pursuant to the
EU Market Abuse
Regulation. The information was submitted for publication,
through the agency
of the contact person set out above, at 1800 CET on January
31,
2019.
Electrolux shapes living for the better by reinventing taste, care and
wellbeing
experiences, making life more enjoyable and sustainable for millions
of people.
As a leading global appliance company, we place the consumer at the
heart of
everything we do. Through our brands, including Electrolux, AEG,
Anova,
Frigidaire, Westinghouse and Zanussi, we sell more than 60 million
household and
professional products in more than 150 markets every year. In
2017 Electrolux
had sales of SEK 122 billion and employed 56,000 people around
the world. For
more information go to www.electroluxgroup.com.