Who we are and what we doHusqvarna Group 2016

Our Core Purpose –

Turning technology into opportunity

With a passion for innovation we create

performance, pride and improved results

for our customers.

We make a difference to those who shape

green spaces and urban environments

through our leadership in sustainable,

user-centered solutions.

Our Vision –

Shaping great experiences

Husqvarna Group today

• A global leading producer of

outdoor power products

including chainsaws, trimmers,

robotic lawn mowers and

ride-on mowers

• European leader in watering

products

• A global leader in cutting

equipment and diamond tools

for the construction and stone

industries

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Short facts

• Net sales in 2015 amounted to SEK 36 billion

• Core brands: Husqvarna, Gardena

• Supporting brands: McCulloch, Poulan Pro,

Weed Eater, Flymo, Zenoah, Diamant Boart

• Sales in more than 100 countries

• Leadership positions in products for forest,

park & garden care, as well as construction

• Main distribution channels are dealers and

retailers

• More than 13,000 employees in 40 countries

• The share is listed on Nasdaq Stockholm

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Fundamental strengths

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Ska bytas

mot

högupplöst

Leading market positions

Strong distribution channel positions

Strong brands

Product and technology leadership

Global R&D and supply capacity

325+ year heritage

Leading global market positions

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ChainsawsRobotic lawn mowers

Watering

products

(Europe)

Walk-behind

lawn mowers

Cutting equipment

and diamond tools

for the construction

and stone industries

Other handheld,

petrol-powered products

Ride-on

lawn mowers

Dealer Retailer

Multiple pre and post purchase

touch points Online

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Distribution network

Strong brand portfolio

Core brands

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Supporting brands

Global presence

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Major production

facilities

Sales offices or

distributors

Sales

by geographical

area

Rest of the world 11%

North

America

45%

Europe

44%

More than 325 years of innovation

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1919Lawn

mowersWeapons factory

1689

1959Chainsaws

1896

1903Motorcycles

1987Riders

1995

2009AutoTune™

2012Battery

products with

petrol

performance

Bicycles

1969Anti-vibration

1973Automatic

chain brake

2014

Sewing machines

1872

1874Kitchen

equipment

2009Remote controlled demolition robots

2013All-wheel-drive

mowerRobotic lawn

mower

1974Battery grass

shears

Financial goals

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0

500

1 000

1 500

2 000

2 500

3 000

3 500

15 000

20 000

25 000

30 000

35 000

40 000

2011 2012 2013 2014 2015

Sales Operating income

SalesSEKm

Operating incomeSEKm

Operating margin of more

than > 10% over the

course of a business cycle

Seasonally adjusted

Net debt / EBITDA

< 2.5x

Dividend shall normally

exceed > 40% of

income for the year

Financial performance

Ownership structure

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Largest shareholders

Share of

capital %

Share of

votes %

Investor AB 16.8 32.8

Lundbergs AB 7.5 24.9

Didner & Gerge Funds 4.8 2.8

Swedbank Robur Funds 3.7 1.3

SHB Funds 2.7 1.0

Source: Holdings/Euroclear as of March 31, 2016.

Others, 8%

Sweden, 69%

US, 10%

UK, 9%

Luxembourg, 2%

Norway, 2%

Sustainability

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We believe in combining

profitable growth with

respecting nature and

caring for people.

To us, sustainability is not

only a prerequisite for long-

term market leadership - it

is also the right thing to do.

Respecting nature – caring for people

• We participate in the UN Global Compact’s

initiative and supports ten principles in the areas

of human rights, labor, the environment and anti-

corruption.

• The Group’s Code of Conduct and

Environmental Policy are important guiding

documents

• Progress in environmental, social and ethical

conduct is measured according to GRI G4

reporting standard and published in the yearly

Sustainability Report.

• Husqvarna Group is included in sustainability

indexes for being recognized as a leading global

company in terms of meeting environmental,

social and governance criteria.

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The organization

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Organization

The divisions

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Husqvarna Gardena Consumer Brands Construction

Forest and garden

49% of Group sales

13% of Group sales

27% of Group sales

11% of Group sales

Sales SEK 17.6bn

Margin 13.0%*

Sales SEK 4.7bn

Margin 12.7%*

Sales SEK 9.9bn

Margin -1.2%*

Sales SEK 3.9bn

Margin 11.8%*

Figures refer to full year 2015.

* Excluding items affecting comparability.

Husqvarna Division

1919

The Husqvarna Division offers a broad and competitive product range, including

• Chainsaws

• Trimmers

• Robotic lawn mowers

• Ride-on and walk-behind lawn mowers

• Accessories and spare parts

Global market leader in forest

and garden

Professional and prosumer

Dealer-centric, multi-channel

Share of Group

net sales

49%

Net sales, SEK

2015

17.6bn

Position End-customers Distribution channels

Gardena Division

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The Gardena Division offers the widest range of gardening systems in the market;

• From hand tools to electrical equipment

• From watering solutions to smart garden

The premium and powerful European gardening brand

Passionate gardeners

Retail-centric, multi-channel

Share of Group

net sales

13%

Net sales, SEK

2015

4.7bn

Position End-customers Distribution channels

Consumer Brands Division

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The Consumer Brands Division possesses a broad and strong product offering;

• Ride-on and walk-behind lawn mowers, snow throwers and tillers

• Chainsaws, trimmers, hedge trimmers and leaf blowers

• Accessories and spare parts

Recognized brands

and strong

product portfolio

Mass consumerRetail-centric,

multi-channel

Share of Group

net sales

27%

Net sales, SEK

2015

9.9bn

Position End-customers Distribution channels

Construction Division

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The Construction Division is a world leader in cutting equipment and diamond tools;

• Power cutters, floor, tile and masonry saws, wall-and wire saws

• Floor grinding machines

• Demolition robots

• Diamond tools for construction and stone industries

Market leading brand and productportfolio

Construction and stone industries

Direct/rental/dealer

Share of Group

net sales

11%

Net sales, SEK

2015

3.9bn

Position End-customers Distribution channels

Passionate about innovation

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Evolving end-customer demands

and new technology create new

business opportunities

R&D centers in the US, Sweden,

Germany, Japan and China

Ground-breaking innovations

paired with step-by-step changes

Primary development for

exploring new technologies

Everything starts with the end-customer

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Trends influencing product strategy

Demographics and consumer trends

• Aging population

• Changing buying behaviors

• Garden sizes are becoming smaller

Channels and product segments

• Commercial Lawn & Garden growing

• Increasing retail competition

Growing emerging markets

• With different needs

New technologies

• E.g. battery, robotic, connectivity

2525

Gardening is getting smarter

Building on experience and

current trends

• Provide convenience, freedom

and inspiration to passionate

gardeners

• Gardena‘s history of successful

system launches since 1968

• Dynamic development of Internet of

Things applications

• Unique offering of both automatic

watering and robotic lawn mowing

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Introducing

Gardena

smart system

in 2016

Top performance battery-powered

products

• New range consisting of a chainsaw, trimmer and hedge trimmer for

demanding consumers

• Complements the existing range for professional users

• 36V Lithium-ion technology, one battery fits all products

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Top

performance

A sustainable approach on product design

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Ergonomics, ease-of-use, energy

efficiency and high quality is important

when we design our products – and

improvements are continually made to

reduce our products’ environmental

footprint.

Working at

Husqvarna Group

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Strong corporate culture

• Passion for products and innovation

• Dedicated people with strong work ethics

• Openness and humbleness in relations

• Proud of our long history

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We contribute to the professional devel-

opment of each employee by creating

individual development plans with clear

targets and follow-up.

We encourage mobility between divisions,

functions, countries and regions.

Our Key Behaviors –

It starts with me. What can I do?

• Seek customer’s point of view in

all meetings and decisions.

• Demonstrate collaboration by

giving and seeking support.

• Maintain focus and simplicity.

www.husqvarnagroup.com

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