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Products & MarketingMartin Bertinchamp

EVP, Head of Products & Marketing

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AgendaNew organizationBrand strategyProduct strategyStrategy going forward

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3* Manufacturing quality** Product quality

• Manufacturing

• Purchasing

• Demand &Supply chain

• Quality*

• Global Categories**

• Brands

• Marketing

• Design

• R&D

• Sales & Service

• Demand chain

• Trade marketing

• Product care

• Sales & Service

• Demand chain

• Trade marketing

• Product care

• Sales/service

• Global categories

• Trade marketing

• Operations NA

• Joint venture China

EVP Supply chain

EVP Products & Marketing

EVP Europe / A/PSales

EVP NA / LA Sales

EVP Construction

Thomas Andersson Martin Bertinchamp Hans Linnarson Michael Jones Anders Ströby

Communication & IRBoel Sundvall

HRLars Worsøe-Petersen

Finance & ITBernt Ingman

Legal AffairsOlle Wallén

CEOMagnus Yngen

New organization as of January 2010

New organization

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New organization Products & Marketing

Global approachAlways acting strategicallyand internationally towards further integration and withintegrated actions

New organization

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New organization Products & Marketing

Customer firstCentralized global and strategic marketing• Strengthen consumer

insight (outside-in view) • Increase coordination

of marketing efforts

No. 1 in businessCoordinated productcategory management• Advanced portfolio and

product management

New organization

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New organization Products & Marketing

Innovation leader• Reinforced Research & Development• Primary Development independent from

specific new product projects for exploring advanced technologies

– Think “future”!

• Own development resources per category– Shorter time-to-market– Think “customer first”!

New organization

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Husqvarna brand strategy

• Number of brands need to be reduced

• Focus on core brands

• Innovations always first in core brands

• Depriorisation of tactical brands

Brand strategy

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• Branding - commitment in consistency and investments

• Increased marketing to strengthen core brands

• Globally coordinated and concerted marketing

activities to ensure the highest possible impact

Husqvarna brand strategy

Brand strategy

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• Consistency around the brands needed

• Uniform global market approach:

– across all channels

– across all regions

• Objective - global brand portfolio

Husqvarna brand strategy

Brand strategy

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Significant Core Brands

Tactical Brands:

Regional Brands:

Future brand classification

Brand strategy

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Targeted development:

51%

10%

Net sales share 2009 per brand cluster:

Significant Corebrands

Regional brands15%

24%

Tactical brands

Others

Brand strategy

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Size of the target group > 60 years is growing• power and mobility are more often restricted • they are often not able / not willing to maintain

especially bigger gardens manually

More and more double income families• enough money, but no time for garden care

Climate is changing• dry periods are getting longerEcological awareness is increasing• influence on the buying decision

Consumer trends

Product strategy

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convenient

Consumer trends

eco-friendly automated solutions

Offering comfort and mobility

The Gardener will seek for

Brand strategy

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Product strategy based on consumer trends

With ratchet function for more power to cut.

NEW 2010

230 –410 cm

Up to 6.5 m -without ladder,safe and comfortable!

TechLite Barwith ~20% less weight

Ratchet Helmeteasy to adaptto individual size

of head

optimummanoeuvrability

Uncutcircleapprox. 30 cm

the powerfulconvenient waygettig rid of the snow

convenient eco-friendly automated solutions

NEW 2011

Brand strategy

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Product strategy based on consumer trends

convenient eco-friendly automated solutions

Cordless, battery driven products

Brand strategy

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Product strategy based on consumer trends

convenient eco-friendly automated solutions

Automatic product solutions

Husqvarna can offer an Automated Garden package which combines

Automated Garden irrigation systems

Husqvarna Automower®+

Brand strategy

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Husqvarna

Husqvarna offers an exceptional broad range of products

Stihl / Viking

Toro

MTD/ Wolf

John Deere

GGP

Bosch

Rideon

Walkbehind

Hand-held

Water-ing

Acces-sories

Hand-tools

= relevant product range

Brand strategy

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Products & Marketing strategy going forward

Increased level of innovation

Focus on reducing technical platforms and increasingmodularityConsolidation

of brands incl. transition plans for phasingout to avoid loosing business

Focus on long term consumer trends as there are:• Ecology• Convenience• Automated solutions

Uniform global market approach:• Across all channels• Across all regions

Strategy going forward