Who we are and what we do

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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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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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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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

5 12 4

1

North America

Latin America Europe

RoW

4 277

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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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More than 325 years of innovation

1919 Lawn

mowers Rifle factory

1689

1959 Chainsaws

2006 Listed on NASDAQ

OMX Stockholm

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Efficient

global

distribution

network

Competitive

product

offering

Strong global

brands

Flexible

supply chain

Our primary strengths

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Strong brand portfolio

Global

brands

Tactical

brands

Regional

brands

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Competitive product offering

Accessories Watering products &

hand tools Construction products

Electric products Handheld products Wheeled products

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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)

• Homeowners

• Landowners

• Professional forest

& tree care

• Professional

landscaping

& ground care

• Construction and

stone industries

Distribution network

End-

users

Dealers

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Retailers

Our global presence

Sales offices or distributors

Major production facilities

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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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Organization

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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.

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 17

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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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 19

Main brands

Share of Group

net sales

2013

10%

Net sales:

SEK 3.0bn

Operating income:

SEK 277m*

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 Handheld Wheeled

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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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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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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

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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Sustainable and responsible business

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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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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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Working at Husqvarna Group

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Our core values guide us

• Customers First

• Professionalism

• Personal Leadership

& Team Spirit

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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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www.husqvarnagroup.com

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