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Husqvarna Group 2016
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Catalog excerpts

Husqvarna Group 2016 - 1

Who we are and what we do Husqvarna Group 2016

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Husqvarna Group 2016 - 2

Turning technology into opportunity With a passion for innovation we create performance, pride and improved results for our customers.

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Husqvarna Group 2016 - 3

Shaping great experiences We make a difference to those who shape green spaces and urban environments through our leadership in sustainable, user-centered solutions.

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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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Husqvarna Group 2016 - 5

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

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Fundamental strengths Leading market positions Strong distribution channel positions Strong brands Product and technology leadership Global R&D and supply capacity 325+ year heritage

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Leading global market positions Robotic lawn mowers Walk-behind lawn mowers Chainsaws Ride-on lawn mowers Other handheld, petrol-powered products Cutting equipment and diamond tools for the construction and stone industries Watering products (Europe)

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Distribution network Dealer Multiple pre and post purchase touch points Online 8

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Global presence Major production facilities Sales offices or distributors Sales by geographical area

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More than 325 years of innovation 1974 Battery grass shears Remote controlled demolition robots Battery products with petrol performance Lawn mowers Weapons factory Sewing machines Automatic chain brake Robotic lawn mower

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Financial goals Operating margin of more than > 10% over the course of a business cycle Financial performance Sales Operating income Seasonally adjusted Net debt / EBITDA Dividend shall normally exceed > 40% of income for the year Operating income

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Husqvarna Group 2016 - 13

Ownership structure Didner & Gerge Funds Swedbank Robur Funds Largest shareholders Investor AB US, 10% UK, 9% Luxembourg, 2% Norway, 2% Others, 8% Source: Holdings/Euroclear as of March 31, 2016.

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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 longterm market leadership - it is also the right thing to do.

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Husqvarna Group 2016 - 15

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 anticorruption. • 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...

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Husqvarna Group 2016 - 17

Legal Affairs Brian Belanger People & Organization Business Development Communications, Brand & Marketing Sofia Axelsson Technology Office Anders Johanson Group Operations Valentin Dahlhaus Francesco Franze segment reporting Husqvarna Division Pavel Hajman Gardena Division Sascha Menges Consumer Brands Division Jeff Hohler Construction Division Henric Andersson

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The divisions Forest and garden Husqvarna Consumer Brands Sales SEK 17.6bn Margin 13.0%* Figures refer to full year 2015. * Excluding items affecting comparability.

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Husqvarna Division Position Global market leader in forest and garden 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 Distribution channels Dealer-centric, multi-channel 17.6bn Share of Group net sales

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Gardena Division Position The premium and powerful European gardening brand Passionate gardeners 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 Distribution channels Retail-centric, multichannel 4.7bn Share of Group net sales

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Consumer Brands Division Position Recognized brands and strong product portfolio Mass consumer 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 Distribution channels Retail-centric, multi-channel 9.9bn Share of Group net sales

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Construction Division Position Market leading brand and product portfolio Construction and stone industries The Construction Division is a world leader in cutting equipment and diamond tools; • Power cutters, floor, tile and masonry saws, walland wire saws Distribution channels 3.9bn Share of Group net sales • Floor grinding machines • Demolition robots • Diamond tools for construction and stone industrie

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Passionate about innovation 23

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Everything starts with the end-customer Evolving end-customer demands and new technology create new business opportunities Ground-breaking innovations paired with step-by-step changes R&D centers in the US, Sweden, Germany, Japan and China Primary development for exploring new technologies

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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, conne

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