Profitable growth – the next step
Transcript of Profitable growth – the next step
Profitable growth – the next stepKai Wärn, President and CEO
The core message
2
• Significant profitability improvement delivered
• Customer focused and empowered organization– Three Divisions in profitable growth mode– Consumer Brands builds a profitable core
• Profitable growth initiatives launched and financed by efficiency improvements
• Accelerating innovation for future leadership
… then expansion & profitable growth
Profitability first…
ProfitableGrowth
Our definition of profitable growth
3
Outgrowing the market with 1-2
p.p. per year
Continuous improvement
of EBIT margin
2015Consequences of the chosen
strategy
2014Establishment
of strategy
2013Profitability
improvementprogram
2016Execution
of divisions’ business plans
The journey towards market leadership 2020
AIPAccelerated Improvement Program to restore profitability
Strategy 2020 Group• Market, customer
and technology studies
• Breadth and focus• Goals and definitions
New organization• Growth and
turnaround strategies
• AIP improvement program closed
Profitable growth initiativesand further improvement activities• Financing of growth
initiatives• Support margin target
4
The AIP – the vehicle to fix the profitability
• Launched 2013 and closed 2015
• Increased focus on product leadership
• Focus and resource allocation for larger direct material cost reductions
• Substantial complexity reduction
5
Great result improvements!
4%
5%
6%
7%
8%
9%
10%
11%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q32013
Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2
Operating income rolling 12 months Operating margin rolling 12 monthsSEKm
FOCUS EXECUTION
6
2015Consequences of the chosen
strategy
2014Establishment
of strategy
2013Profitability
improvementprogram
2016Execution
of divisions’ business plans
The journey towards market leadership 2020
AIPAccelerated Improvement Program to restore profitability
Strategy 2020 Group• Market, customer
and technology studies
• Breadth and focus• Goals and definitions
New organization• Growth and
turnaround strategies
• AIP improvement program closed
Profitable growth initiativesand further improvement activities• Financing of growth
initiatives• Support margin target
7
• Number 1 or 2 market share position by segment
• Innovation leader
• Outperform competition in terms of profitable growth
Market leadership 2020 – what do we mean?
8
9
Fixing the pre-requisites for success...
How to combine our breadth with the right focus…
One core question was
Organize according to the different end customer business models
The answer
The proof of concept is there…
Brand Divisions• Sharper business focus• Higher energy • Decision power and speed
Scale and synergies• Technology • Sourcing, manufacturing, logistics• Brand portfolio and online platforms
10
Key behaviors• Seek customer’s point of view
• Collaboration
• Maintain focus and simplicity
VisionWe make a difference to those who shape green spaces and urban environments through our leadership in sustainable, user-centered solutions.
Adding consistency and building on a winning culture
11
Core purposeWith a passion for innovation we create performance,pride and improved results for our customers.
2015Consequences of the chosen
strategy
2014Establishment
of strategy
2013Profitability
improvementprogram
2016Execution
of divisions’ business plans
The journey towards market leadership 2020
AIPAccelerated Improvement Program to restore profitability
Strategy 2020 Group• Market, customer
and technology studies
• Breadth and focus• Goals and definitions
New organization• Growth and
turnaround strategies
• AIP improvement program closed
Profitable growth initiativesand further improvement activities• Financing of growth
initiatives• Support margin target
Three accelerated initiatives• Sustainability• Digital opportunities• Battery products
12
An industry with attractive fundamentals
13
• Sizeable SEK 210 Bnaddressable market
• 2-3% CAGR growth
• Segments with high profitable growth potential
• High share professional customers and pro-grade consumers
• OEM aftermarket potential
• Innovation rewarded
Market size, growth andprofitability
Attractive segments/
characteristicsDistribution
• Multichannel landscape
• Stable servicing dealer base
• Important seasonal F&G retail category
• Large competitors with good performance
• Consolidated landscape
• Scale important
Competition
Our market participation is broad in F&G and niched in Construction
14
Forest and GardenSize SEK ~185 bn
Growth 2-3% long term
APAC
EMEA
Americas
Geographic Split
ConstructionSize SEK ~25 bn
Growth 3% long term
APAC
EMEA
Americas
Geographic Split
15
Key trends that will shape Husqvarna’s industry
New consumer groups, urbanization and change of economic gravity
Battery and electric technology
Digital revolution eg. Big Data, IoT, Robotics
Changing consumer values and purchasing behavior
Environment. Shortage of resources eg. water, raw materials, land etc.
Profitable Growth – the next step
16
… then expansion & profitable growth
Profitability first…
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
Net sales for divisions in profitable growth
17Group excl. Consumer Brands Division, adjusted for changes in exchange rates
CAGR 2.5%
Achieved CAGR 2.5%2011-2015
2%
3%
5%
TargetOut-grow market by1-2 p.p.
Net sales growth CAGRSEK bn
Market Growth
Key elements of profitable growth respectively turnaround strategies
18
• Dealer channel business development• Commercial lawn and garden• Fully explore product leadership
areas e.g. Automower• Expand battery based products
• Geographic expansion• Further strengthen the brand• Multi-channel distribution• Product innovation and
Smart Garden expansion
• Financial turn-around situation• Relentless cost-out and efficiency
improvement approach• Account focus• Explore new product and channel
business opportunities
• Growth in key attractive segments• Continue drive product innovation• Develop service offers• Emerging markets
Husqvarna Gardena
Consumer Brands Construction
Creating headroom for profitable growth initiatives
19
2015EBIT
FXimpact
Costs for Profitable Growth
initiatives
Further efficiency measures
Volume and mix impact,
other
2016EBIT
• Continued direct material cost-out
• Indirect material costs, logistics costs
• Rightsizing of footprint • SG&A efficiency• Working capital
improvements
Further efficiency measures 2016-17
20
Our response to market trends
Sustainability Digital opportunities
Batteryproducts
Accelerated Initiatives
Respecting nature, caring for people
Acceleration SustainabilitySustainnovate – Our commitment!
Continuous improvement and innovation is our way to sustainable market leadership It forms the base for our green path commitment
Our Carbonchallenge
Decouple our business growth from carbon emissions
Our Teamchallenge
Be the best place to work
Our Supplierchallenge
Inspire and build a sustainable supplier base
Our Safetychallenge
Lead our industry on safety across the value chain
21
Acceleration Digital OpportunitiesCreating customer values beyond products
22
RoadmapCapabilities
• Acquisition of Koubachi
• Established Digital Services and Solutions
• IoT platform
• Smart products and solutions
• Improving customer productivity and engagement
Products
• Automower Connect
• Fleet Services
• Gardena Smart System
Acceleration Battery ProductsBuild battery market leadership
23
Best in class products
Leverage performance position to consumer segments
Application know-how
The core message
24
• Significant profitability improvement delivered
• Customer focused and empowered organization– Three Divisions in profitable growth mode– Consumer Brands builds a profitable core
• Profitable growth initiatives launched and financed by efficiency improvements
• Accelerating innovation for future leadership
… then expansion & profitable growth
Profitability first…
ProfitableGrowth
New financial targets
25
Purpose?
Growth
Margin
Capital efficiency
Keeping focus on profitability to make sure our growth creates value
Aspiration to grow faster than the market to reach market leadership 2020
Growing in a capital efficient way
www.husqvarnagroup.com
New financial targetsJan Ytterberg, CFO
Profitability first!Financial targets 2014 (CMD 2014)
Dividend
Net debt / EBITDA
Operating margin >10% business cycle
< 2.5seasonally adjusted
+ 40%of income
28
10% EBIT margin over a cycle – not there yet
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q32013
Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2
SEKm Operating income rolling 12 months (SEKm) Operating margin rolling 12 months (%)
29
40
26
9 3
22
0
5
10
15
20
25
30
35
40
45
USD EUR SEK CAD Other
Net sales, distribution by currency%
Currency exposure, net sales and transaction
30
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
EUR CAD AUD CHF Other USD CNY
Transaction exposure before hedgingSEKm
Currency effect on the 10 % EBIT margin target
5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%10.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q32013
Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2
Operating income rolling 12 months (SEKm)
Operating margin rolling 12 months (%)
Operating margin rolling 12 months (%) FX adjusted*SEKm
31*FX adjusted only on net sales
Seasonality fully predictable – Weather is the unknown
32
-20
-10
0
10
20
30
40
50
60
70
Q1 Q2 Q3 Q4
EBIT
-150
-100
-50
0
50
100
150
Q1 Q2 Q3 Q4
Operating cash flow%%
Average distribution per quarter for the Group 2013–2015, %
Profitable Growth – the next step
33
… then expansion & profitable growth
Profitability first…
New financial targetsAverage over the coming years from 2017
34
Growth* CAGR Net Sales 3 – 5%
Capital efficiencyNet Operating WorkingCapital / Net Sales ≤ 25%
Margin EBIT Margin ≥ 10%
Profitable growth
* Excluding Consumer Brands Division
Operating income rolling12 months (SEKm)
Operating margin rolling12 months (%)SEKm
Past performance in relation to target 10% EBIT margin
4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%10.0%
0
500
1,000
1,500
2,000
2,500
3,000
Q32013
Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2
Target >10 %
35
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
Net sales for divisions in profitable growth
36Group excl. Consumer Brands Division, adjusted for changes in exchange rates
CAGR 2.5%
Achieved CAGR 2.5%2011-2015
2%
3%
5%
TargetOut-grow market by1-2 p.p.
Net sales growth CAGRSEK bn
Market Growth
20%
22%
24%
26%
28%
30%
32%
34%
2011 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Q2 Q3 Q4 Q12016
Q2
Target ≤ 25%
Net operating working capital / net sales ≤ 25%
37
Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2Q1 Q2 Q3 Q4
New financial targetsAverage over the coming years from 2017
38
Growth* CAGR Net Sales 3 – 5%
Capital efficiencyNet Operating WorkingCapital / Net Sales ≤ 25%
Margin EBIT Margin ≥ 10%
Profitable growth
* Excluding Consumer Brands Division
Profitably growing our professional and prosumer businessPavel Hajman, President of Husqvarna Division
40
Profitably growing our professional and prosumer business
Dealer business
development
Petrol, battery and
robotic leadership
Professional focus
Stable profitable
growth trajectory
Continuedstrategic
investments in innovation and growth
A large global SEK ~80 Bn market segment
Addressable marketSEK 80 Bn
NorthAmerica
EMEA
Rest of World
Regional split of market potential
41
An attractive performance and service driven market
Market characteristics• Pro’s and prosumers
with performance and productivity demands
• Fragmented and traditional dealer channel
• Attractive aftermarket
Market trends• Urbanization and
sustainability• Robotics and battery
acceptance• E-commerce and
IoT emerging
Growth and Profitability• Stable growth with
pockets of high growth• Good profitability
due to performance differentiation and aftermarket service
42
Global divisional presence with further growth opportunities
Division’s sales split Global market share
~21%
43
34%
NorthAmerica
49%
EMEA
17 %
Rest of the world
Dedicated segment focus supported by dealers
Channels
• Long term relationship with thousands of dealers globally
• Dealers providing application advice and service
• On-line impacting dealer market
44
Competitors
Customer segments
ProfessionalForestry
ProsumerProfessional CLG
• Strong development of product leadership areas and geographical mix
• Volume and cost out benefits
• Investments in growth initiatives
• Challenging FX impact
Strong foundation for profitable growth
45
6%7%8%9%10%11%12%13%14%15%
10,00011,00012,00013,00014,00015,00016,00017,00018,00019,000
Q4 2014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Net sales (FX adj) EBIT margin (as rep, excl IAC)
Investments in future growth funded by operational improvements
SEKm
Husqvarna DivisionRolling 12 months
Increased professional focus since start of the division
• Commercial Lawn and Garden key account sales force created
• Robotics expansion into commercial applications
• Accelerated focus on battery powered products sales and development
• Accelerated digitalization development• Operational excellence
46
RoboticsLeading portfolio now with connectivity
A strong innovation capability!
47
Battery and FleetSupports sustainability and productivity
Pro handheldNew professional chainsaw platforms
Collecting ridersGrowth opportunity in European markets
Parts and AccessoriesNew X-cut saw chain and X-force bars
Zero Turn RadiusStand on completesthe Commercial Lawn and Garden offer
Core elements of our profitable growth strategy
48
Dark blue left side?
Target to outperform the market
• Dealer development• Commercial Lawn and Garden
reconnect• Parts and Accessories focus• Expansion:
– Robotics – Battery products– Emerging markets
Dealer growth enhanced by 20-30% when implemented!
Dealer business development is the base…
Strengthen Dealers commercial ability and expand network• Deploy Dealer Business and Service
Excellence Program• Implementing Shop profiling and
developing E-commerce• Expand dealer network in urban
areas mainly
49
…and Commercial Lawn and Garden is our largest professional opportunity…
Organization supported by battery products, robotics and fleet services• New business operating model with dealer
inclusion and local Key Account organizations• Differentiating by productivity improvements
and sustainability• Silent city promotional events
50
Good momentum gained with CLG operators and municipalities!
…and robotic lawn mower is our largest prosumer opportunity…
Continued leadership through product innovation and go-to-market strategy• New mowing concept• Connectivity• Technical support capability• Urban sales network
51
Continued strong growth in existing markets and fast acceptance in newly developed markets
…together with our battery powered products
Lead the way and gain both application and battery recognition!• Competitive assortment• Global go-to-market plan• Accelerate next generation
product development
52
Global sales above market growth!
53
Profitably growing our professional and prosumer business
Dealer business
development
Petrol, battery and
robotic leadership
Continuedstrategic
investments in innovation and growth
Professional focus
Stable profitable
growth trajectory
www.husqvarnagroup.com
Gardena – Passion and GrowthSascha Menges, President Gardena Division
56
Gardena – Passion and Growth
Strong growth and EBIT performance
Continued brand investments funded by efficiency measures
Geo expansion and automated garden as key
growth platforms
The premium brand for
passionate gardeners
Gardena has a SEK ~35 Bn market opportunity
Addressable marketSEK 35 Bn
NorthAmerica
EMEA
Rest of World
Regional split of market potential
57
Positioned to capitalize on characteristics and trends
Market characteristics• Polarization of premium
branded and private label• Evolving multichannel
distribution• Passionate gardeners
value innovation and quality
Market trends• Urbanization,
Sustainability, Aging population and IoT
• Automatic garden, incrobotic and digitization
• Smaller gardens and City-gardening
Growth and Profitability• Growth varies by segment
and region• Segments and players
with high variation of profitability
58
A European market leader
59
Division’s sales split Market position
EU markets
~25 %
NorthAmerica
Rest of the world
EMEA
90%5%5%
Gardena is the brand for passionate gardeners
60
Customer segments Channels
• Strong presence with key DIY and garden centre chains
• Stronger online presence / growth
Competitors
Strong net sales developmentOutpacing average market growth, across regions as well as profit pools
Translating into growing EBIT
Efficiency measuresOffset FX pressure and provide funds for investments into strategic growth such as new products, capabilities and brand building
Strong growth and EBIT performance
61
0%
2%
4%
6%
8%
10%
12%
14%
3,000
3,500
4,000
4,500
5,000
5,500
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Net sales (FX adj) EBIT margin (as rep, excl IAC)SEKm
Gardena DivisionRolling 12 months
Achievements since launch of the division
62
• Expanded distribution: new customers, channels and geo-expansion
• Successful innovation and launch of new products – New watering range– New range of Robotic mowers (Sileno)– GARDENA smart system
• Multiple design awards for new products • Excellent supply chain performance• Built a passionate and dedicated team
Market share gain!
A profitable growth agenda
63
• Geographic expansion
• Further strengthen the Gardena brand, e.g.− Innovation− Automated Garden
• Multichannel distribution
• Operational excellence
Successful geographic expansion
64
• Focused investments in innovation, front-end and marketing
• Strengthen international KAM organization• Successful expansion of listings with
existing customers• Expanded distribution with new customers• Stronger sell-through
Above market growth in core markets with an already strong position…
…complemented by double digit growth rates in priority European markets outside the core
Automatic garden – Successful launch of SMART
65
• Koubachi team integrated and launch of new “Smart” category• Continue to invest in product / feature roadmap and development resources
• Full range launched in DACH and BeNe
• Good customer and consumer acceptance
• Further markets roll-out
66
Innovation – 60 new products for 2017 season
67
68
Gardena – Passion and Growth
Strong growth and EBIT performance
Continued investments into
brand building and growth funded by
efficiencymeasures
Geo expansion and automated garden as key
growth platforms
The premium brand for
passionate gardeners
www.husqvarnagroup.com
Road to 5% and beyondJeff Hohler, President Consumer Brand Division
71
Road to 5% and beyond
Value before volume
Profitable core
Cost-out, operationalexcellence and top line
improvement
Beyond 5% from high value segment focus
Addressable market
A large SEK ~70 Bn market segment
SEK 70 Bn
NorthAmerica
EMEA
Rest of World
72
• Competitive, high stakes retail - value exclusivity and a steady stream of new features
• Retailer consolidation; more emphasis on “house brands”
Market characteristics
• Consumers seeking easy access to parts, accessories and service needs
• Connected products appearing • Increasing number of women buying, using OPE products
Market trends
• Shift from lower value product segments to higher value, e.g. Z-turn, Robotics, Cordless
• Growth of online, both e-commerce and influencing offline sales
• Feature innovation for margin up-lift
Growth and Profitability
Regional split of market potential
Competitors
Global market share
Channels
Consumer brands attractive given the right mix, scale and innovation capability
Division’s sales split
~14%
73
82%
NorthAmerica
17%
EMEA
1 %
Rest of the world
• Significant share shifting between large North American retailers
• European retail remains fragmented by country; slowly consolidating
• Continuing growth of e-commerce and importance of online presence
Customer segments
• Value before volume strategy
• Majority of sales drop behind us!− Season 2016 heavily impacted
by weather
− Begin sales trough emergence in 2017
• Favorable EBIT margin trend, despite volume decline and currency headwind− Brand, product and customer
mix management
− Strong continued momentum in cost reduction and efficiency improvements
Getting to the profitable core
74
-3.0%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Net sales (FX adj) EBIT margin (as rep, excl IAC)
Consumer Brands DivisionRolling 12 months
SEKm
Achievements since launch of the division• Stabilized large, volatile North American
account relationships
• Aggressive EUAP portfolio clean-up leads to positive profit improvement
• Commercial progress on ecommerce, parts and accessories, battery product development
• Shift from OEM to own Brands
• Successful execution of AIP creating a culture of continued cost and efficiency improvements
• New Management Team with solid turn-around experience
75
2014 2016
Cost-out
2014
2.5%
2015
2.0%
2016
>2.0%
Own Brands
Private label
Consumer Brands Division – Brand Mix +14 point shift
in mix toward “owned” brands
Two drivers of the turn-around plan
76
Continued cost-out and
efficiency momentum
Capturingtop-line
opportunities
Consumer Brands Division Schematic margin bridge to 5%
77
2015 Cost-out Capture new opportunities
FX / Other 2018-1.2%
5.0%
Sustaining the cost-out and efficiency momentum
78
Organization and momentum for continued cost-outDesign direct materials and production efficiency
Supply Chain Sustainability Drivers
Productivity InvestmentsCreating conditions for an efficient and successful consumer business
Immediate focus• Continued cost out inspired by AIP• Footprint Projects and Logistics
improvement• Capture labor efficiencies• Automation investments• Supply and Demand forecasting
improvements• Supply chain for E-commerce
and digital• Sustainability focus
ZeroLandfill Waste
Emissions Reduction
Lower Energy Use
Orangeburg Footprint Project
• 7 outside DC’s to 1 adjacent to production• 513K sqft. warehouse with 36 outbound
loading docks• Automated Guided Vehicle finished
product delivery to warehouse• Reduction:
– Of 328,000 km interplant trucking
– Of 317 metric tons CO2 emissions
– Of 180,000 product inventory transactions
– To a one finished goods Inventory Systems
– Of export warehouse for EU shipments
79
80
2015 Cost-out Capture new opportunities
FX / Other 2018-1.2%
5.0%
Consumer Brands Division Schematic margin bridge to 5%
New opportunities – product focus
Expanded zero turn assortment
Battery products
Robotic mowers
81
Radio E-commerceExpanded assortments and
improved content
Parts and AccessoriesImproved cross-selling along with whole goods
New opportunities – channel and marketing focus
* Based on comparison vs. prior year in test markets compared to national
Investment in Marketing Activation
+9%improvement
in test markets
82
83
Adding new top-line opportunities to continued cost-out will get us to 5%
…foundation being laid NOW for new market opportunity capture
0.0%0.5%1.0%1.5%2.0%2.5%3.0%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Cost-out and Operational Excellence Capture sales opportunities
84
Road to 5% and beyond
Value before volume
Profitable core
Cost-out, operationalexcellence and top line
improvement
Beyond 5% from high value segment focus
www.husqvarnagroup.com
Strong position and continued expansionHenric Andersson, President Construction Division
Customers’ preferred choice
87
Strong profitable
growth foundation
Continued investments funded by efficiency
improvements
Service Offerings and
Emerging Markets focus
Market leadership
An attractive SEK ~25 Bn market segmentThe market is generally attractive due to its growth and profitability
• Urbanization• Emerging markets• Work technique modernization
• Internet of Things• Stricter regulations• Petrol to Battery
Activity
Time
Total construction
HusqvarnaConstructionrelevant
• Financially dependent • Segment somewhat
less cyclical than greater Construction market overall
88
Paving
Earth moving
Lifting
Light/General
Key trends
Cyclical business
Market
Husqvarna Construction – a market leader
Division’s sales split Global market share
>15%
89
43%
NorthAmerica
38%
EMEA Rest of the world
19 %
CompetitorsMany segment specialistsFew broad players
Customer focus in a diverse market
Channels
• Distribution• Contractor direct• Rental• Forest and Garden
dealers• E-Commerce
90
Customer segments
Demolition Contractors
Specialty markets (eg. rescue, rail, military)
Natural stone quarries and processing
Concrete Sawing and Drilling ContractorsBuilding TradeContractorsGeneral Contractors
Successful profitable growth journey
91
Side business Organic growthConsolidation
Acquisition growth
8781 0907060200
Partner acquired Dimas acquired Demolitionrobot
4 Acquisitions1999–2001
6 Acquisitions2006- 2008
Husqvarna brand
Diamant Boartacquired
Track record of profitable growth
• +5% net sales CAGR over period
• +15% EBIT CAGR improvement
• Investments in growth initiatives partially offset by benefits from cost-out activities
• Favorable foreign exchange
0%
2%
4%
6%
8%
10%
12%
14%
3,000
3,200
3,400
3,600
3,800
4,000
4,200
4,400
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Net sales (FX adj) EBIT margin (as rep, excl IAC)
Construction DivisionRolling 12 months
SEKm
92
Positioned for continued profitable growth
• Trend of outgrowing the market, taking shares
• Adapted structure for growth– Restructuring– Investments
• Acquired key technology relating to resin bonded diamond tools (DTS)
• Multiple key product launches• Implemented innovative sales
process and tools• Highly engaged team
93
The innovation leader
94
Distribution range repositioning
Contractor Direct range improvements
Metallic floor grinding tools
New wires
New Stone blades
Power cutter updates
Additional PRIME machines
More versatile wall saw system
Remote controlled floor grinders
New tier 4 floor saws
Service contracts, upCare
The innovation leader – Unmatched PRIMETM
95
Customers’ preferred choice
Core elements of profitablegrowth strategy:
• Continuously improve our solid foundation
• Generating funding for strategic investments
• Focus on key attractive segments
• Expanding into Service Offers
• Stepping up in Emerging Markets
96
• Above average growth and profitability
• Emerging segment, fragmented competitive landscape
• Sustainable method, environmental benefits
• Husqvarna unique with full in-house capabilities of both machines and tools
Surface Preparation, one key focus segment
97
Create new, repetitive revenue streams
Capitalizing our broad product offering
Create additional customer value
Grow through expansion into Service Offers
98
• Accelerate the establishment of local footprint in sales, service and distribution
• Tailor product offering
• Educate on new work techniques
Step up in Emerging Markets
99
BRANDPRODUCT PEOPLEPOSITION PREPARED
Construction and Stone industry professionals’ preferred choicethrough market and innovation leadership where we play
Strong position and continued expansion
100
www.husqvarnagroup.com