Who we are and what we do Every day we are making forestry, gardening and construction easier for people in more than 100 countries. This is how we do it Ride-on products Walk-behind products Handheld products Watering products Accessories and garden tools Construction products More than 320 years of innovation 1959 Chainsaws 1689 Weapons foundry 2006 Listed on NASDAQ OMX Stockholm 1918 1978 2010 Lawn mowers Part of Electrolux New production facility in Mielec, Poland Husqvarna today The world´s largest producer of outdoor power products for forestry, gardening, construction and the European leader in watering. Husqvarna today Financial data • Sales SEK 30 billion • Operating income SEK 1.6 billion • 16,000 employees • Listed on NASDAQ OMX Stockholm Data refers to full year 2010, excluding items affecting comparability. Husqvarna today Operating income Sales SEK bn 37% 54% 9% Data refers to full year 2011, excluding items affecting comparability and Group common cost. Our primary strengths • Strong brands • Efficient global distribution network • Broad product offering • Flexible supply chain Our strong brand portfolio Core Brands Tactical Brands Regional Brands Leading market positions Global no. Global no. Global no. Global no. Global no. European no. 1 1 1-2 2 1-2 1 Chainsaws Other petrolpowered, handheld products Garden tractors Lawn mowers Diamond tools for construction and stone industries Watering – consumer market 10 Our global presence Major production facilities Sales offices or distributors Distribution network • Homeowners Retailers • Landowners Endusers Dealers • Professional forest & tree care • Professional landscape & ground care • Construction industry Innovation is our heritage and future • 44% of capital expenditures in 2011 referred to new products. • R&D centers in US, UK, Sweden, Germany, Japan and China. • Primary development for exploring new technologies. Innovative technologies X-TORQ® technology AutoTune™ technology Hybrid technology Battery-powered tiller Automatic watering solutions Cobra wire Our core values Professionalism For “best in class” performance Customers first In our actions Core values Teamwork With open minds Always with passion and a sense of urgency Ownership structure* USA 8% Norway, 3% 10% 8% Others 8% Sweden Sweden 81% 79% *Source: SIS Ägarservice as of 30 dec 2011. Share of capital % Share of votes % 16.8 30.1 Alecta Mutual Pension Insurance 9.6 7.2 LE Lundbergföretagen AB 6.7 22.0 Nordea fonder 6.1 2.5 Swedbank Robur fonder 5.7 1.9 Largest shareholders Investor AB Organization President and CEO Hans Linnarson Product Management & Development Henric Andersson Finance & IT Legal Affairs Ulf Liljedahl Olle Wallén Purchasing Human Resources Martin Austermann Per Ericson Sales & Service Manufacturing & Logistics Europe & Asia/Pacific Sales & Service Sascha Menges Hans Linnarson (acting) Michael Jones Americas Construction Anders Ströby “Right PEOPLE in right jobs make great RESULTS” Our Code of Conduct By applying the Code in your daily work, you are helping to ensure that our business is conducted in a responsible and sustainable way. Our Code of Conduct Husqvarna believes in fair treatment of people and honest business relations based on our Code of Conduct. Opportunities for individual growth We promote our employees and help them to develop. Talent management ensures that the right person with the right talent is in the right position. We encourage mobility between functions, business units, countries and regions. Europe & Asia/Pacific • Sales & service, Demand chain, Trade marketing and Product care. Share of Group 2011 Sales • Global responsibility for Brands. • Approximately 30% market share in the region. 54% • Approximately 60% of sales are under the Husqvarna and Gardena brands. • Distribution network – Dealers Operating income* – Retail chains such as Bauhaus, bauMax, Homebase, castorama, Kesko, OBI etc. Brands * Excluding items affecting comparability and group common cost. Americas • Sales & service, Demand chain, Trade marketing and Product care. Share of Group 2011 Sales • Manufacturing (Americas). • Leading market positions, especially for chainsaws. 37% • Distribution network – Dealers – Sears, Lowe’s, Walmart and Home Depot. Operating income* Brands * Excluding items affecting comparability and group common cost. Operating income for the year was negative. Construction • Sales & service, Trade marketing, Demand & supply, R&D and Manufacturing. • Global leading market position with approximately 15% market share. Share of Group 2011 Sales 9% • Equipment and diamond tools for construction and stone industries. • Distribution network – Direct sales to construction contractors, construction retailers, rental companies and specialized dealers. Operating income* Brands * Excluding items affecting comparability and group common cost. Product Management & Development • Global function for R&D centers – Global categories – Design – R&D – Quality • A rapid pace of high quality, customerdriven product renewal with a high level of innovation and increased focus on battery-powered products. Products • Reduce time-to-market. • In order to make product development more effective, development resources are gathered in a few R&D centers in key locations. Ride-on Walk-behind Watering Accessories and garden tools Handheld Manufacturing & Logistics • Global function for Major production facilities – D & SC, Distribution – Manufacturing (Europe, Asia) – Manufacturing Engineering – Lean Program (HOS) – Environment • Industry specific challenges – Delivery accuracy, efficient and flexible manufacturing in a seasonal environment with short lead times. • A global platform for lean manufacturing and continuous improvement is one of the key priorities (Husqvarna Operating System, HOS). Production value by geographical area, 2011 Europe North America 41% 11% Rest of the world 48% www.husqvarnagroup.com