Husqvarna Group's presentation "Who we are and what we do"

1. Who we are and what we do

2. Vision
We envision a world where people can enjoy
well maintained gardens, parks and forests
and experience refined buildings and roads.
Mission
We provide innovative quality products and
solutions to make garden, park and forest
care as well as construction easier for
professionals and consumers around the
world.
Husqvarna Group
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3. Husqvarna Group today
• The world’s largest producer of
outdoor power products including
robotic lawn mowers, garden
tractors, chainsaws and trimmers.
• European leader in consumer
watering products.
• One of the world leaders in
cutting equipment and diamond
tools for the construction and
stone industries.
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4. Short facts
• Husqvarna was founded in 1689.
• Global brands:
Husqvarna, Gardena, McCulloch and
Diamant Boart.
• The Group’s products and solutions are
sold in more than 100 countries.
• Main distribution channels are dealers and
retailers.
• Head office is located in Stockholm, Sweden.
• The share is listed on NASDAQ OMX
Stockholm Exchange (HUSQ A and HUSQ B).
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5. Major production facilities
Sales by business area
EBIT by business area
SEKm
Financial data
Sales: SEK 30.3bn (30.8)
EBIT: SEK 1.6bn (1.9)
No. of employees: ~14,000
Financials 2013
Construction
10%
Europe & Asia/Pacific
49%
Americas
41%
1,514
Europe &
Asia/Pacific
Americas Construction
Excluding items affecting comparability
512
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1
North America
Latin America Europe
RoW
4 277
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6. Dividend should
normally exceed
40% of
income for the year
Seasonally adjusted
Net debt / EBITDA
< 2.5
Operating margin
of more than
10% over the
course of a
business cycle
Financial targets
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7. More than 325 years of innovation
1919
Lawn
mowersRifle factory
1689
1959
Chainsaws
2006
Listed on NASDAQ
OMX Stockholm
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8. Efficient
global
distribution
network
Competitive
product
offering
Strong global
brands
Flexible
supply chain
Our primary strengths
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9. Strong brand portfolio
Global
brands
Tactical
brands
Regional
brands
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10. Competitive product offering
Accessories
Watering products &
hand tools Construction products
Electric products Handheld productsWheeled products
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11. Leading global market positions
Chainsaws
Other handheld,
petrol-powered
products
Robotic lawn
mowers
Garden tractors
Cutting equipment
and diamond tools
for the construction
and stone industries
Lawn mowers
Consumer watering
products (Europe)

12. • Homeowners
• Landowners
• Professional forest
& tree care
• Professional
landscaping
& ground care
• Construction and
stone industries
Distribution network
End-
users
Dealers
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Retailers

13. Our global presence
Sales offices or distributors
Major production facilities
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14. Ownership structure
Largest shareholders
Share of
capital %
Share of
votes %
Investor AB 16.8 30.6
Lundbergs AB 6.8 22.4
Silchester International Investors 5.0 1.7
Nordea Funds 5.0 2.4
Alecta 4.3 4.4
Source: SIS Ägarservice as of 30 dec 2013
Others, 6%
Sweden, 72%
U.S., 9%
Great Britain, 11%
Norway, 2%
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15. Organization
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16. Organization
Product Management &
Development
Henric Andersson
Manufacturing &
Logistics
Sascha Menges
Global Purchasing
Martin Austermann
Brand Management &
Global Marketing
Sofia Axelsson *
President & CEO
Kai Wärn
People & Organization and
Communications
Per Ericson
Finance, IT & IR
Ulf Liljedahl
Legal Affairs
Olle Wallén
Quality
Francesco Franzé *
*Not part of Group Management 16
Americas
Alan Shaw
Construction
Anders Ströby
EMEA
Frida Norrbom
Sams
Asia/Pacific
Brian Belanger
(Acting**)
Business Development
Pär Åström*
**Acting until Pavel Hajman starts, June 1, 2014, at the latest.

17. Europe & Asia/Pacific
• Sales & service of forest, park and garden products.
• Largest markets are Russia, Germany, France, Japan
and the U.K.
• Distribution network
– Dealers who sell to professional users and consumers who
demand high-performing products.
– Retail such as B&Q, Leroy merlin, OBI, Bauhaus etc.
Share of Group
net sales
2013
Main brands
49%
Sales by channel
Dealer
66%
Retail
34%
Net sales:
SEK 15.0bn
Operating income:
SEK 1.5bn*
*) Excl. items affecting comparability
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18. Americas
• Sales & service of forest, park and garden products.
• Largest markets are U.S. accounts for 85% of the market,
Canada around 10% and Latin America the rest with Brazil
as the largest market.
• Distribution network
– Dealers who sell to professional users and consumers who
demand high-performing products.
– Retailers such as Sears, Lowe’s, Walmart and Home Depot.
*) Excl. items affecting comparability
Main brands
Share of Group
net sales
2013
41%
Sales by channel
Retail
64%
Dealer
36%
Net sales:
SEK 12.4bn
Operating income:
SEK 4m*
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19. Construction
• Sales & service of equipment and diamond tools
for construction and stone industries.
• Most sales take place in Europe and North America, with
increasing business in the emerging markets.
• Distribution network
– Direct sales to construction contractors, construction retailers,
rental companies and specialized dealers.
*) Excl. items affecting comparability
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Main brands
Share of Group
net sales
2013
10%
Net sales:
SEK 3.0bn
Operating income:
SEK 277m*

20. Product Management & Development
• Global organization for:
– Product categories (incl. Category R&D)
– Design
– General R&D
• 35% of capital expenditures
in 2013 referred to new products.
• R&D centers in U.S., Sweden,
Germany, Japan and China.
• Primary development for exploring
new technologies.
Product Categories
Watering &
hand tools
Accessories
Electric HandheldWheeled
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21. Trends influencing product strategy
• Demographics and consumer trends
– Aging population
– Changing buying behaviors
– Garden size is becoming smaller
• Channels and product segments
– Commercial Lawn & Garden growing
– Increasing retail competition
• Growing emerging markets
• New technologies
– E.g. battery and robotic
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22. Manufacturing & Logistics
• Global organization for:
– Manufacturing
– Manufacturing Engineering
– Demand & Supply Management
– Warehousing & Transport
• Industry specific challenges
– Delivery accuracy, efficient and flexible
manufacturing in a seasonal environment
with short lead times.
Production value
by geographical area, 2013
North
America
49%
Europe
42%
Rest of
the world
9%
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23. Footprint, flexibility and HOS
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Footprint
• Balanced mix of global, regional
and local footprint of manufacturing
sites and warehouses
• Close to the market
Flexibility of
supply chain
Reduce impact of
market uncertainties
Driving performance with
Husqvarna Operating System,
HOS
• A global platform for lean
manufacturing and continuous
improvement
• Focus on cost, quality, flexibility
and delivery

24. Investment in core technologies
SEK ~1bn investment during 2013-2015
in chainsaw chain and cylinder
manufacturing
• Confirms long-term commitment to be a
global leader of handheld forestry
products
• Saw chains and cylinders critical for
chainsaw performance
• Saw chains key in aftermarket offering
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25. Sustainable and responsible business
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26. Sustainable and responsible business
• Husqvarna Group is a global company with
employees in more than 40 countries and
products sold in more than 100 countries.
• We honor our environmental and social
responsibility and are committed to
conducting business ethically.
• The Group’s Code of Conduct and
Environmental Policy are important guiding
documents.
• Progress in environmental, social and ethical
conduct is measured and published in the
yearly Sustainability Report, following GRI 3
guidelines.
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27. Long-term objectives
• Develop environmentally sound products
• More efficient use of energy and input
materials
• Select suppliers that operate in a
responsible manner
• Reduce workplace accidents toward zero
• Contribute to the professional development
of each employee
• Ensure employee adherence to the Code
of Conduct
• Contribute to the development of
communities
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28. Working at Husqvarna Group
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29. Our core values guide us
• Customers First
• Professionalism
• Personal Leadership
& Team Spirit
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30. Opportunities for individual growth
We contribute to the
professional
development of each
employee
by creating individual
development plans
with clear targets and
follow-up.
We encourage
mobility between
functions, business
units, countries and
regions.
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31. www.husqvarnagroup.com
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