Capital Markets Seminar
19 September 2007
Bengt Andersson
President and CEO
1
Key data 2006
Reported
Incl. acquisitions*
• Sales: SEK 29.4 bn
• EBIT margin: 10.6%
• Net debt/EBITDA: 1.1
• Sales: SEK 35.5 bn
• EBIT margin: 10.5%
• Net debt/EBITDA: 2.5
Sales by business area
Construction
Construction
Professional
38% Forestry
Commercial
Lawn & garden
North
America
Consumer
62%
RoW 6%
Professional
Forestry
37%
Commercial
Lawn & garden
ROW
Sales by region
Europe
40%
Sales by business area
North
North
America
America
Consumer
63%
ROW
ROW
Sales by region
North
America
54%
Europe
46%
RoW 7%
North
America
47%
2
*Full-year basis
Operating structure
Sales 2006: SEK 35.5 bn*
Business sectors
Consumer Products
Professional
37%
Consumer
63%
Construction
Forestry
North
America
Robert E. Cook
Rest of World, Mass-market
channel
Martin Bertinchamp
Rest of World, Dealer channel
Commercial
L&G
Dealer
North America
ROW
Massmarket
Hans Linnarson
Professional Products
Forestry
Bo Andreasson
Commercial Lawn and garden
Hans Linnarson
Construction
*Incl. acquisitions on
full-year basis
Anders Ströby
3
Product areas 2006
Professional
wheeled
5-15%
5-30%
25-40%
25-35%
Handheld
Consumer
wheeled
Construction
Market share
Push
ZTHs
Riders
Tractors
Walk-behinds
Accessories
Trimmers etc
Chainsaws
Power Cutters
Constr Equipment
Diamond Tools
Stone
4
Synergies between product areas
Construction
Handheld
5-30%
25-40%
Market share
Professional
wheeled
25-35%
5-15%
Push
ZTHs
Riders
Tractors
Walk-behinds
Accessories
Trimmers etc
Chainsaws
Power Cutters
Constr Equipment
Diamond Tools
Stone
Channel
&
Customer
Consumer
wheeled
Mass-market channels
Dealer channel
Husqvarna (+Jonsered)
Brand
Tactical and consumer brands
Product
cost
Component sourcing
Manufact.
Technology
Diamonds
2-stroke
engines
Grass cutting
5
Acquisitions since June 2006
Acquired
operation
Consumer
Gardena, Germany Garden equipment
Professional Komatsu Zenoah,
*) Full-year basis
Products
Sales 2006
SEK*
3,900
Japan
Chainsaws,
trimmers etc.
1,200
Dixon, USA
Lawn mowers
310
Klippo, Sweden
Lawn mowers
150
Jikai, China
Diamond tools
170
King Concepts,
Australia
Floor preparation,
concrete polishing
Soff-Cut, USA
Concrete saws
30
260
6
Acquisitions strengthen product portfolio
Construction
Handheld
Consumer
wheeled
5-30%
25-40%
25-35%
Market share
5-15%
5-15%
Push
Push
ZTHs
ZTHs
Riders
Riders
Tractors
Walk-behinds
-Soff-Cut
Accessories
Trimmers etc
Chainsaws
Power Cutters
Constr Equipment
Diamond Tools
Stone
Jikai
Professional
wheeled
Pro
Klippo
Klippo
Zenoah
Dixon
Dixon
-King
Concept
7
…and create synergies
Construction
Handheld
Consumer
wheeled
5-30%
25-40%
25-35%
Market share
5-15%
5-15%
Push
Push
ZTHs
ZTHs
Riders
Riders
Tractors
Walk-behinds
Accessories
Trimmers etc
Chainsaws
Power Cutters
Constr Equipment
Diamond Tools
Stone
Channel
&
Customer
Professional
wheeled
Pro
Mass-market channels
Dealer channel
Husqvarna (+Jonsered)
Brand
Tactical and consumer brands
Jikai
-Soff-Cut
Product
cost
LCC
Klippo
Klippo
Zenoah
Manufact.
LCC
Dixon
Dixon
Component sourcing
-King
Concept
Technology
Diamonds
2-stroke
engines
Grass cutting
8
Gardena adds new product categories
Construction
Handheld
Consumer
wheeled
5-30%
25-40%
25-35%
Market share
Professional
wheeled
5-15%
Irrigation &
hand tools
50%
Hand tools
Irrigation
Push
ZTHs
Riders
Tractors
Walk-behinds
Accessories
Trimmers etc
Chainsaws
Power cutters
Constr equipment
Diamond tools
Stone
9
…and creates synergies
Construction
Handheld
Consumer
wheeled
5-30%
25-40%
25-35%
Market share
5-15%
Irrigation &
hand tools
50%
Hand tools
Irrigation
Push
ZTHs
Riders
Tractors
Walk-behinds
Accessories
Trimmers etc
Chainsaws
Power cutters
Constr equipment
Diamond tools
Stone
Channel
&
Customer
Professional
wheeled
Mass-market channels
Dealer channel
Husqvarna (+Jonsered)
Brand
Tactical and consumer brands
Product
cost
Technology
Manufact.
LCC
Diamonds
LCC
2-stroke
engines
Component sourcing
Grass cutting
10
Major product flows
Sweden
USA
•
•
•
•
Tractors
Lawnmowers
Trimmers
Lower specified
chainsaws
•
•
•
•
Chainsaws
Clearing saws
Riders
Power cutters
Sourcing
• Electrical
handheld
• Construction
products
11
Bob Cook
Head of Consumer Products North America
Consumer Products, North America
Share of Group sales, 2006*
34%
• Sales: Approx. 55%* of Consumer
Products
• Employees: Approx. 5,000
• US and Canada Market Share
approx. 35%
*Incl. acquisitions on full-year 2006 basis
COP NA has five U.S. manufacturing locations
within a day’s drive of 70% of the NA outdoor marketplace
Primary Engine Suppliers
Primary Steel Supplier
Major Port Locations
Strength of US Manufacturing Base
• High levels of utilization
• Output flexed to seasonality
• Low fixed/high variable cost structure
Product / Brand Portfolio
Products
Wheeled
Mowers
Tractors
Snow Throwers Tillers
Handheld
Electric
Brands
Gas Trimmers Gas Chain
Saws
Gas Blowers
Five Consumer Reports “ Best Buy” rated
tractors in Spring 07
• New tractor platform introduced in 2006
• New 46 inch deck introduced in 2007
US Industry shipments / Market Share
35
Industry Shipments
CAGR: 4%
(GDP 3%)
6020
34
4520
33
Husqvarna Market Share
3020
32
1520
31
20
30
1997
1998
1999
OPEI (weighted)
Traqline
2000
2001
2002
2003
2004
2005
2006
Market Data United States
• Market in Units
• Tractors 1.7 M
• Mowers 6.5 M
• Gas Handheld 10 M
• 2007 Lawn and Garden Season - Weak
• Trends
• Consumer Credit and Discretionary Income Constrained
• Key Demand Drivers
• Replacement Market/Features
• Regional Weather Patterns
• Major Competitors
•
•
•
•
•
John Deere (mowers, tractors)
Toro (mowers, tractors, trimmers and blowers)
Stihl (chainsaws, blowers and trimmers)
TTI (chainsaws, blowers, trimmers)
MTD (mowers, tractors, trimmers, chainsaws, and blowers)
Market Position
North American Retail Distribution Centered on “Big Four” Retailers –
Representing 70% of market
Sears
30
Unique Advantages
•Craftsman Brand
•Service Network
•Directed Sales Floor
•Heavy Advertising
20
Lowe’s
Home Depot
Independent
Dealers
Wal-Mart
10
MTD
0
Primary Suppliers
Husqvarna
Husqvarna
MTD
Primary Suppliers Primary Suppliers Primary Suppliers Primary Suppliers
Husqvarna
Husqvarna
Deere
Husqvarna
MTD
Deere
TTI
Deere
MTD
Toro
Stihl
MTD
Toro
MTD
Deere
Competitive Advantages
• Portfolio of strong brands to serve a variety of distribution
channels and retailers
• Delivery capability coupled with inventory management
• Supply chain management and ability to flex activity levels to
market seasonality
• North American production base provides competitive product
to rest of Group, based on scale and currency advantage
• Sears provides base-load for production system and product
development initiatives
The Sears Relationship
One of longstanding interdependence and co-management of the
industry’s leading top of mind Craftsman Brand
Up front Planning
Expected demand sets the table
for execution throughout the
production and delivery system
Demand Flow Process
Retail based point of sale
information drives supply chain
behavior
Dynamic system
of communication enables
collaborative category
management
Integrated Inventory
Fully transparent inventory
management optimizes in
season and end of season
inventories.
Product Offering
Broadest product offering
supported by directed selling
floor and
after the sale product service
Strategic Initiatives
• Expand North American retail distribution of whole goods, parts
and accessories. Main actions relate to additional retail placement
• Improve EBIT, margin and value creation in NA marketplace through
• Continued product cost reductions supported by LCC sourcing initiatives
• Continuance of inventory and operating cost reduction programs
• New gas and electric handheld product introductions
• Continued leverage of the scale and currency advantages of the
US production base to support the business in the rest of the world
Summary
• Operating environment
•
•
•
•
Low growth
Commodity inflation
Weak US dollar
Constrained Consumer
• Continued leverage of strong North America market position
which also supports profitable business in rest of world
Martin Bertinchamp
Head of Consumer Products Rest of World
mass-market channel
1
Consumer Products RoW, mass-market channel
Share of
Group Sales
Sales approx. 75 % of Consumer RoW
21%
CAGR, 2003-2006: 2 %
88%
Brands
*Acquisition of GARDENA has been closed March 20, 2007.
2
Why 1+1=3
Contribution GARDENA
Contribution HUSQVARNA
• Europe’s No. 1 consumer garden brand with
excellent market share. GARDENA has an aided
brand awareness of 95% in Germany, 61% in
France, 44% in Italy. Strong position in mass trade
channel.
• Almost full product range in basic forest and
garden product categories
• Large Dealer network, strong position in
professional dealer channel
• Strong brand in professional segment
• Highly profitable, stable growth. GARDENA’s longterm historical organic growth rate ranged between 5
– 8%. For the last period GARDENA has fulfilled the
expectations. Our CAGR in this FY will be 6%, which
was in line with the long-term historical growth rate.
• Innovation leader in the gardening business.
Value creation by innovation. Over 500 new products
in the last five years. More turnover by combining
components to a system.
• Strong regional brands in consumer segment /
tactical brands
• Economies of scale in purchasing, production,
logistics etc.
• Financial resources
Chances and opportunities
• GARDENA complete the product range of Husqvarna very well, especially in the area of irrigation
• Additional distribution channel for Husqvarna (DIY). Therefore further outstanding sales and
penetration opportunities in the garden market.
• Market differentiation with additional brands like Flymo, McCulloch and Partner.
• High possibility for natural hedging in DIY segment.
• Opportunity to become category leader
• No. 1 in the world in outdoor and garden segment.
3
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
4
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
5
Our consumer brands – A short description
Best garden tools, services and solutions
for all ambitious gardeners – wherever they
are in the world!
Brand Positioning
Easy to use (lightweight) electrical garden
tools for hobby (domestic) gardeners in
selected European markets.
Brand Mission
Practical, powerful and easy to maintain
products for different (selected) regional
mass trade-channels.
6
Best garden tools, services and solutions for all
ambitious gardeners – wherever they are in the world!
7
Product Segments
Watering
Garden Care
Pond/Pumps
8
Watering
9
Garden Care
10
Pond and Pumps
11
GARDENA is all about systems
12
Excellent consumer brand
Garden
Garden brands—aided
brands—aided brand
brand
awareness
awareness e.g.
e.g. Germany
Germany
Consumer
Consumer goods—aided
goods—aided brand
brand
awareness
awareness e.g.
e.g. Germany
Germany
95%
Selected
Selected brands—unaided
brands—unaided brand
brand
awareness
awareness e.g.
e.g. Germany
Germany
98%
94%
95%
97%
82%
90%
95%
85%
80%
95%
71%
75%
85%
51%
85%
71%
46%
84%
39%
66%
32%
26%
Source: ICON, McKinsey
83%
69%
48%
13
Easy to use (lightweight) electrical garden tools for
hobby (domestic) gardeners in selected European
markets.
14
Lawn Care
Mowers
Trimmers / Shredders
15
Hedge Care
16
Excellent consumer brand in UK
Spontaneous
Spontaneous awareness
awareness of
of lawnmower
lawnmower brands,
brands, 2007
2007
83%
56%
46%
11%
9%
6%
2%
Source: Flymo
17
Practical, powerful and easy to maintain products for
different (selected) regional mass trade-channels.
18
Chain Saws – Petrol and electric
19
Trimmers & Brush Cutters /
Petrol Lawnmowers
20
Lawnmowers / Tractors
21
Hedge Trimmers / Brush Cutters
Chain Saws
22
Regional brand strategy
Tactical labels
Strong local brand
+ price-entry brand
for Europe
Strong global consumer brand
23
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
24
Worldwide presence
Australia
Austria
Belgium
Canada
China
Czech Republic
France
Germany
Greece
Hungary
Italy
Netherlands
Norway
Poland
Portugal
Russia
Turkey
Spain
Sweden
Switzerlad
Slovenia
South Africa
United Kingdom
Subsidiaries
Free agents
Manufacturing sites
25
Regional distribution and sales force
Region 1 (144)
D, A, CH, LUX
Region 2 (111)
F, I, E, P, B
Region 3 (59)
S, DK, N, ISL
EE, LT, LV
Region 4 (190)
Eastern Europe,
Rest of the World
3
More than
572 people
over Europe
5
1
4
2
Region 5 (68)
UK, IRL, NL
All sales force figures without resources from independent distributors.
26
Listed within all major DIY retailers in Europe
Position
Position Sector
Sector Consumer
Consumer Products
Products
within
Europe’s
top
DIY
retailers
within Europe’s top DIY retailers
Major
DIY
in
(approx.)
MajorTurnover
DIY retailers
retailers
in Europe
Europe by
by sales
sales (€bn)
(€bn)
Current customer
Currently not customer
Kingfisher, UK + F
B&Q
Castorama
Irrigation
Hand tools
Elect. tools
2
2
1
3
2
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
Brico Depot
OBI, D
Leroy Merlin, F
Praktiker, D
Bauhaus, D
2
3
2
2
2
3
3
1
Focus/Wickes, UK
Hornbach, D
Zeus/Hagebau, D
Homebase, UK
Bricomarche, F
Mr Bricolage, F
Toom, D
0
1
2
3
4
5
6
7
8
9
3
3
3
10
1
No. 1
2
No. 2
3
No. 3
Source: Fediyma, World DIY Report
27
We offer a full range of unique services
Best-in-class
Best-in-class delivery
delivery
Quick
Quick and
and reliable
reliable after
after sales
sales service
service
Source: GARDENA
High
High investment
investment in
in customer
customer training
training
Full
Full merchandising
merchandising service
service
28
We offer a full range of unique services
Call
Call Center
Center
Irrigation
Irrigation Planning
Planning
25
25 years
years warranty
warranty
29
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
30
Heuchlingen (240)
Vrbno pod Pradědem
Plastic moulding
Plastic moulding
Ulm (680*)
Assembly
Niederstotzingen (280)
Metal processing
Czech Republic
Republic
Czech
Germany
Germany
Manufacturing sites and workers
(560)
Brúntal
Assembly
Třinec (170)
Metal processing
United Kingdom
Kingdom
United
Aycliffe (130*)
Plastic moulding
Assenbly
Highly automated
*blue-collar workers only
Labour-intensive
31
Outsorcing to Assembly Service Providers (ASP)
Baden-Württemberg
Regional network of smallsized extended workbenches
(sheltered workshops and
correction facilities)
Heuchlingen
Niederstotzingen
Ulm
28 ASPs contribute labour
capacity of ~ 600 workers
corresponding to > 250 direct
healthy employees
Unique network of ASPs offers flexibility and cost efficiency.
Source: GARDENA
32
Flexible supply chain
• Production during season
possible at 24 hours per day,
7 days per week – even on
public holidays, if necessary
Strong ability to deliver
% of order value delivered
98%
Target = 96 %
94%
95%
• Short distances to customers
85%
• Short leadtimes for changing
demands
• Strong influence on quality
assurance during production
FY2003 FY2004 FY2005 FY2006
33
Efficiency – a comparison
Europe
China etc.
☺ Short distances / Logistics network
delivery in 1-2 days
Overseas cargo
delivery in 6-8 weeks
☺ High availability to deliver during all
season (replenishment)
Out of stock situations
☺ High quality standards
Quality assurance problems
☺ High innovation rate
Copycats / Legal violations
☺ System solutions with huge variety
of components to suit user’s demand
Limited range of products
☺ Marketing and service support
Cheap stuff, no support
A production close to the market is a better basis for reliable service.
34
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
35
Market data
Total European market for garden equipment
estimated at approx. SEK 50 bn
(not completely covered by sector’s product range / partly covered by Husqvarna-branded products)
Fruits and
woods
Furniture
16%
Market shares of
GARDENA
15%
15%
Plants
40%
Garden
equipment
7%
7%
Irrigation > 50%
(in Germany 80 – 90%)
Hand Tools 30 – 50%
Chemicals
Electrical Tools < 15 %
Decoration
Total European garden market*, 2005
100% = ~ SEK 374 bn / EUR 40 bn
36
Major competitors
Watering
Watering
Tools
Tools
manual watering
automatic underground irrigation
GGP
37
Market position
Spain
Netherlands
Austria
Sweden
Czech Rep.
Hungary
1
1
1
1
1
2
4
1
1
2
2
2
2
4
2
2
2
3
3
Non-powered
tools
1
2
4
3
3
1
1
2
1
1
Power tools (ex.
lawn mowers)
1
3
2
3
4
2
2
2
3
3
Electric lawn
mowers
4
4
1
4
4
3
3
3
4
4
UK
1
France
2
Germany
Italy
Tools
Watering
Sector
Sector brands
brands market
market position
position within
within gardening
gardening equipment
equipment
Irrigation
1
1
2
Pumps
1
Ponds
1 — Leadership
4 — Presence
Source: GARDENA, McKinsey
38
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
39
Innovations are key drivers of the business
Average share of new products
approx. 20%
approx. 80%
Assortment
New products
40
Environment for innovations
From the consumer’s point of view
• Properties become smaller.
Solve application problems.
• People have less time to spend.
Revolutionize procedures, save time.
• Population is becoming older. („Best Agers“)
Improve ergonomics, reduce weight.
Garden maintenance shall become quicker, easier and
more comfortable.
41
Preparing for an aging society
Product development using the
“Age Explorer”
Simulation of reduced physical abilities
of seniors regarding
• sight
• mobility
• sense of touch
Experience handicaps, learn to understand them and take
them into account when developing new products.
42
Examples for recent innovations
Pac-a-shredder
AquaContour
43
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
44
Organic market growth
Category-specific market growth expectations
CAGR 2006 - 2009 (%)
3 - 7%
Irrigation
2 - 4%
Power tools
1 - 3%
Non-power tools
Electric lawn mowers
Pumps
1%
2%
3 - 7%
Ponds
Mix-weighted market
Source: GARDENA, McKinsey
4%
45
Industry trends
1. Category Management
advantages leading brands (“The winner takes it all.”)
2. International expansion of DIY
Europe: 50+ new outlets in 2007
3. Consolidation by M&A
e.g.
46
Consumer trends: Environmental issues
1. Saving energy
increased demand for
solar/battery-operated products
2. Non-toxic products
increased consumers’ concern
considerable problem with East Asia imports!
47
Consumer trends
3. Aging of the population
Senior sitizens have…
- more leisure time to spend for gardening
- increased demand for ergonomic and easy to use products
- considerable amounts of money to buy premium brands
4. Global warming
Longer periods of hot and dry weather.
increased demand for
– rain-water utilization
– irrgation systems
Since: 1980 +0.35°C / Until 2100: +2.5–4.1°C
48
Our answers
Automatic irrigation is getting a “must”
Yesterday
Yesterday
Today
Today
Tomorrow
Tomorrow
“Irrigation
prior to GARDENA”
“Irrigation today
due to GARDENA”
“Irrigation in the future
due to GARDENA”
• Value of installed equipment
~ €10 per garden
• Penetration rate¹ (prior to
GARDENA): N/A
¹ In Western Europe
Source: GARDENA, McKinsey
• Value of installed equipment
~ €160 per garden
• Current penetration
rate¹: 80%
• Value of installed equipment
~ €700 per garden
• Current penetration
rate¹: 2%
49
Our answers
Strong brand positions
all of Europe
expand to UK as premium
UK
establish as price-entry across Europe
Southern Europe
tactical labels
Northern and Eastern Europe
Broad product offering
Now covers all important segments and price levels in garden market
No single competitor covers comparable offering.
Innovation pipeline for all brands already laid out until 2010
New markets for the GARDENA brand: line extensions towards
power tools, e.g. lawn mowers, electric hedge trimmers (market
volume: ~ EUR 250 mn), etc.
50
Our answers
Strong European sales force in both dealer and mass-market channels
and extensive marketing support
– Own subsidiaries in all major markets
– First mover in emerging markets (e.g. Russia)
– Only company with ubiquitous distribution
– Cross-selling opportunities between dealer and mass-market channels
pole-position for category leadership
enforcing competition:
vs. Bosch, Hozelock, Wolf,
vs. Black & Decker
vs. GGP, MTD
Introduction of GARDENA brand to U.S. market
51
Key success factors
Strong growth
prospects
Innovation
frontrunner
Strong
brand names
Consumer Products
RoW, mass-market channel
Market
leadership
Strong
sales force &
service
Flexible
supply chain
52
Overall integration objectives and guidelines for successful integration
Targets of acquisition
PMI guidelines for safeguarding the
integration process
• Utilization of market synergies through an increasing
marketshare and penetration of the market.
Husqvarna was lacking exposure in irrigation
and GARDENA complements the product range
very well.
• Clear and in detail formulated integration process
• Optimizing operating efficiency (economies of scale
and scope). Synergies are expected in sales
product development, administration, purchasing
and manufacturing. Using our common expertise
in DIY and dealer business.
• Establish joint leadership organization
• Stable growth within both channels in order to get in
the no. 1 position in the world for the long-term.
Gardening in general is a growth area and
irrigation in particular has great potential.
• Ensure cultural integration and profit from its benefits
• Systematic assessment/measurement of synergy
progress
• Benefit from cross organizational collaboration
(mutual learning)
• Safeguard the current businesses and growth
strategy of both sectors
• Risk management through natural hedging
Our annual savings from integration are
approx. 20 Mio. € EBIT (OP II) from 2010.
That’s our contribution to value creation
53
PMI project: Current project status
D
219 6520 156
A
91 304 31
F
74 314 56
ES
22 94 24
NL
40 252 23
B
9 51
4
S
0
0
0
GB
0
0
0
CH
0
0
0
P
4 22
0
Summe insgesamt 459 7557 294
0 23
0
8
0
8
0
8
0 14
0 29
0 60
0 35
2
0
2
1
3 53
0 65
7 304
2
0
0
0
1
15
3
3
12
4
9
0
49
0
1
1
0
0
0
0
0
0
8
2
0
12
247 62
4 1547
736 23
1 1354
231 13
4
781
57 40
9
550
116 43
3
783
404 80 105 1416
500 115
3
983
369 70
2
740
294 108 339
688
250 83 11
634
519 181 17 1025
193 134 14
972
3916 952 512 11473
Anzahl Bund insgesamt
Anzahl Karton insgesamt
Anzahl Bund Anv.
Anzahl Pal. Insgesmat
Anzahl Karton Anv.
Anzahl Pal. Anv.
Sendung unvollst.
1
0
0
0
0
0
0
0
10
2
3
3
19
Sendung beschädigt
Zu viel geliefert
Sonstiges
Storno Kunde
Paketdienst UPS/U, DPD/D,
GP/G, POST/P
Falsche Ware geliefert/Versand
Falschbestellung ADM/Kunde
Eingabefehler Vertrieb
2
5
0
2
8
0
0
5
0
0
9
0
1
6
0
10 23
0
7 20 23
12 17 22
21 36 33
13 33 35
14 32 130
12
2 19
94 196 262
11 30
1
5
0 145
0
6
0
7
0
0
0
0
0
0
0
0
0
1
12 194
38
8 71
3
0 12
17
7 145
17 83 23
10
7 10
5 26
8
0
0
0
0
0
0
0
0
0
0
0
1
90 131 270
33 49
4
18 13
0
13 103 245
10 13 11
11 18
0
8
0
2
0
0
0
1
0
0
0
0
0
0
0
0
94 196 262
5 29
2
6
0 152
0 37
0 61
0 10
0
6
0
1
0
2
0
0
7 304
10
3
14
10
12
0
0
0
0
0
49
6
0
3
3
0
0
0
0
0
0
12
110
4
47
4
36
5
58 10
53
3
106 106
142
8
122
2
119 339
106 12
207 17
140 14
1246 524
589 136 20 7109
148 40 105
452
1273 434 31 1587
231 187 140
325
182 112 188
434
997 42 28 1048
432
0
0
432
13
0
0
13
46
0
0
46
5
1
0
27
3916 952 512 11473
Anzahl Bund insgesamt
Anzahl Karton insgesamt
Anzahl Bund Anv.
Anzahl Pal. Insgesmat
Anzahl Karton Anv.
Anzahl Pal. Anv.
Sendung unvollst.
7
0
0
11
1
0
0
0
0
0
19
Sendung beschädigt
Zu viel geliefert
Paketdienst UPS/U, DPD/D, GP/G, POST/P
Sonstiges
Storno Kunde
Falsche Ware geliefert/Versand
Eingabefehler Vertrieb
Ware nicht bestellt
Anzahl genehmigte Bund
Anzahl genehmigte Paletten
4
2
5
3
5
3
3
0
5
4 20 14
4 10 18
7
0 38
9
4 23
11 23 21
22 23 40
8
3 44
3
5 51
12 36
8
90 131 270
Anahmeverweigerungen
Anzahl genehmigte Karton
genehmigte Retouren
Retouren
Auswertung nach Länder
Liefertermin nicht eingehalten
Ware nicht bestellt
0
7
3
3
1
5
1
4
0
4
1 61
5 67
0 18
0 10
1
6
0
6
0
3
12 194
Doppellieferung
Anzahl genehmigte Bund
Anzahl genehmigte Paletten
Anzahl genehmigte Karton
1300 48
618 24
550 23
493 18
667 10
1012 26
483 27
371 52
394 11
384 23
506 26
779
6
7557 294
Falschbestellung ADM/Kunde
29
38
29
31
35
49
43
49
41
47
39
29
459
Liefertermin nicht eingehalten
Okt 05
Nov 05
Dez 05
Jan 06
Feb 06
Mrz 06
Apr 06
Mai 06
Jun 06
Jul 06
Aug 06
Sep 06
Summe insgesam
292 31
71 106
490 31
211 140
135 188
46 28
0
0
0
0
0
0
1
0
1246 524
Structuring/
packaging
Objectives/
Timeline
Break down of
work packages
Prioritization:
- Leverage?
- Priority?
- Feasibility?
- Complexity?
Program
Management
setup finished
Work packages
Detailing of
synergies
Milestones
Synergies
Scheduling
depending on
resources, work
load
Phase 1
Kick-off + 1 month
Execution
Anahmeverweigerungen
Doppellieferung
genehmigte Retouren
Retouren
Auswertung nach Monat
Land
Projekt Set-up Sheet
Work
Packages/
Name
Milestones
Project
Manager
Team
Strategy Framework defined
Possible projects
identified
Critical Data
collected
Project initiatives
in consumer
sector merged
PMI Process
established and
ready for
communications
Kick-Off Meeting
held
Concept
Development
Definition and Planning
Phase
Structuring Phase
Definition of
KPIs
Monthly reviews
status reports
and discussions
with project
management
office starts
Adaptation of
activitites
Tracking of
synergies
(actuals vs plan)
starts
Implementation
of target
organization
finished
Operational
business is
harmonized
Phase 2
July
Phase 3
October
Phase 4
March 2008
54
Identified project areas and respective subprojects
Intention
Cross-Functional Projects: proposal for further concretion
Priority/
Projects:
1. Brand
Strategy
1.GARDENA
Power Tool
Product
Family
2. HCRoWStrategy
Key objectives:
Timing:
Develop future brand strategy (portfolio brand
strategy) on geographical, target group, and
technical dimensions
- Define and configurate brand guidelines
(vision/mission, positioning, values,
competences) within our brands and distribution
channels
- Evaluate brand fit (corporate fit, market fit,
product fit) and verify brand extension concepts
Deploy new product family for handheld and
wheeled power tools. Extent depending on the
outcomes of the brand strategy
- Define suitable positioning and strategy for the
new product category in the market place
- Develop advanced product and design concepts
and (strategic product and design planning)
- Estimate product-concept tests (prospects, risks,
opportunities, strengths, weaknesses)
Suggestedl
staffing:
Next steps:
- C. Walshaw
- Start after Kick- - M. Bertinchamp
Off
- H. Linnarson
- 3 months
-
- R. Pompe
- P. Carenborn
-
Meet C. Walshaw
Set up project
plan
Prepare Kick-OffMeeting
Ensuring the overall integration through standards
and common shared consumer sector targets.
Safeguard the information flow by using common
MIS and integrated IT systems
Prepare Kick-Off-
Meeting
- Start after Kick- M. Bowden
Supply Chain / Operations
integration
projects
- Set up project
Off – Key joint
- T. Ressman
- 8 months
- R. Pankalla
- P. Lameli
- B. Westesson
-
structure
Create project
plan
Map-out overall HCRoW-Strategy
- Set up and decide organizational framework
- M. Bertinchamp
- Set up project
Priority/Projects:
Key objectives:
Timing: - B. Jaeger Suggested staffing:
Next steps:
(product
driven organization)
and define the
structure
necessary process to fulfill our business
- Define roles and
- RD’s
- Assess
and prioritize
synergy
- Define growth targets within
the consumer
sector
- Start soon
responsibilities - First discussions with JT
- F.A. Reiber- K. Jakobsson
potentials
(best price
1. Capture
- Estimate
potential opportunities
with respect
to alignment,
- 7 months - Start- now
- Create project (May 8) and KJ (May 15)
R. Pompe - S. Menges
- J. Thompson
- ∼ 6 months
supplier
consolidation,
Purchasing
regions
(e.g. North America),
channels,
target specs
plan
- H. Laubheimer
- R. Sorg
consolidation, …; HCRoW… Total
synergies
groups
and products
- N.N. (tbd)
group)
- Derive short- and midterm targets for each region
- Capture synergies in priority
- Assess and improve currentsequence
business(quick
model
wins… hard
Assuring operational readiness by use of integrated
reporting and planning systems; identifying and
exploiting comprehensive synergy effects inside the
purchasing organization as well as optimizing the
goods flow
negotiations)
2. Establish joint
Manufacturing
footprint
3. Integrate
demand and
supply flows
- First discussion with FF
- F. Franzeconcretion
Identify, quantify
and implement
- Start now
R&D
Projects:
Proposal
for further
(May 30)
- S. Menges
quick win relocation moves
- 1 - 2 years?
-
N.N. (tbd)
-
Establish footprint vision and
roadmap for implementation
-
- A. Melin
- Start now with
Integrate current visions/concepts
- S. Menges
concept /
Establish robust proon HCRow for
- W. Eberhardt
strategy
2008 (pragmatic?)
- Increasing efficiency
within the HCRoW
- N.N (tbd)
integration
Develop and establish harmonized
R&D
- 1 - 2 years?
planning/order management/
goods responsibilities
- Clarifying
and decision
flow Harmonization
and organization
routes
ofwarehouse
the
- Start now
Streamline
structure
- Evaluate competences in respect of
-
-
Projects:
innovation
process
Key objectives:
sector strategy
- Derive target organization including
technology process
Timing:
- 8 months
- Identify potential Quick Wins
HCRoW
Product
Roadmap
Sector
innovation
strategy
- Set up priorities, project
structure / org.
Suggested
Next steps:
staffing:
- First
discussions with AM
(May 31)
- Set up priorities, project
structure
/ org.
P. Lameli
M. Bowden
M. Souchon
B. Aigner
E. Renn
E. Wenzel
Ensuring overall competitive advantage through
excellent process and spanning innovation strategy
- Build team
- Establish project
structure
- Create project plan
P. Lameli
- Quick
Sales
forWins
further
concretion
- Create Projects:
an overall procedureProposal
and
M. Bowden
- Build team
project already
common templates
started
- Define product roadmap for next years
- Roadmap
- HarmonizeKey
roadmap
and HCRoW overall
Projects:
objectives:
starts soon
strategy (cross functional projects)
- Identify and qualify cross selling
- 8 potentials
months
(market synergies):
Quick
Wins
- Key
accounts
- Generate
final strategy
and
harmonize
on Market
- Channels
(e-commerce)
with HCRoW overall
strategy (cross
Side functional projects)
- Brands
- Promotions (Bundles)
- Set technology prioritization
- Conduct SWOT-analysis due to the
- Start now
innovations skills
- 8 months
- Ensuring
operational
readiness to work on
- Safeguard current
and check
additional
following topics:
first mover (fm)the
positions
- Consolidate GARDENA and Husqvarna
subsidiaries
- Evaluate business process, resource
Functional
allocation, contracts and conditions
Strategy on
- Derive and address potential synergic
Local Level
effects
- Create growth strategy for local market
place with respect to: products, pricing,
brands and service
- Deploy/establish target organization
- Optimize most important distributor
penetration in order to improve overall sales
power in HCRoW-countries by
Distributor
- Identifying overlaps and gaps in
strategy in
distributor penetration
HCRoWs
- Check handing over in Italy and Spain to
World
GARDENA Sales Forces
- Screen the options for common
distributors in Eastern Europe ( e.g.
Romania or Ukraine)
P. Roughead
- Establish project
F.A. Reiber
structure
R. Pompe
- Create
project plan
Timing:
Suggested
staffing:
O. Locher
To be in charge are
HCRoW RD’s:
- Start now
- A. Disch
- 3 months
- V. Rinié
P. Lameli
- - Build
P. Uhnbom
team
M. Bowden
- - Establish
T. Koerner
project
C. Schiedt
- structure
C. Middlebrook
W. Arndt
- Create project plan
Responsible are Managing Directors (GARDENA
- Start soon
and Husqvarna) in the
following countries:
- June 14, 2007
Austria, Czech Republic,
- Final target
Hungary, France,
organization
Germany, Netherlands,
2008
Poland, South Africa,
Switzerland, United
Kingdom, Nordic
Countries (Norway,
Sweden etc.)
Start now
3 months
T. Koerner’s team has to
be defined
Next steps:
- Build team
- Set up detailed
action plan.
- Activities
- Turnover
- Investments
- Responsibilities
- Time schedule
-
Brief MD’s through
RD’s
Build local teams
Set up a project
plan
Summarize and
aggregate projects
on regional level
Final target organization business process and
furthermore a clearly defined product-brand
strategy for the future enabling excellent customer
service
- Build team
- Establish project
structure
- Create project plan
55
Status quo – Identified synergies (first scan)
•
•
•
Economies of scope
Optimizing
product/brand mix
New products
(GARDENA branded)
- Electric mowers
- Petrol mowers
- Electric hedge
trimmers
- Electric chain saws
•
•
•
Process improvement
Use multiple sourcing
Extended purchasing power
Purchasing
New products
Approx.
20 MEUR.
Savings
Additional turnover
•
•
•
•
Increased sales
Cross selling
Extended sales power
•
Internal savings
(reducing headcounts)
Organizational synergies
56
Lawn & garden
Forestry
Construction
Hans Linnarson
Head of Consumer Products Rest of World
and Commercial Lawn and Garden
Consumer Products Rest of World,
Dealer Channel
Premium, high performance products for Demanding/Enthusiastic
‘Homeowner’ consumers, who prefer to purchase these
through service orientated outlets.
Consumer Products, Rest of World
Total market
Market Value Consumer 2006
Market by region
Estimated market size=
SEK 25-30 billion
34%
RoW
66%
Western
Europe
Market split :
45% Mass trade
55% Dealers
Consumer Products Rest of World,
Dealer Channel
Share of Group sales, 2006
• Sales: Approx. 25% of Consumer RoW
Western
Europe
• CAGR, 2003-2006: 22%
All figures incl. acquisitions on 2006 full-year basis
Brands
Products
Dealer
Consumer Products Rest of World,
Dealer Channel
Products
Tractors
Position
Competitors
No.1
Honda
Viking
John Deere
MTD
Lawnmowers
No. 1-2
Honda
Viking
John Deere/Sabo
Hand-held
Automatic mowers
No. 2
No.1
Stihl
Ambrogio
Distribution
Servicing dealers
World-wide network of approx. 20,000
servicing dealers out of totally 50,000
Product development
Examples of new launches
2006 Trimmer range
Sales +300%
2007 Tractor range
Sales +7%
2007 Extended Automower range Sales +45%
2008 Solar Hybrid Automower
2008
Range of ”casual”
chainsaws
2008
First models in range of
premium lawn mowers
Consumer Products Rest of World,
Dealer Channel
• Potential for further growth
-Market growth and improved position
• Strong premium brand
• Strong and broadening product portfolio
-New product launches
• Global sales organization with strong dealer network
-Investments to grow existing network
• Efficient high-volume production
Professional Products,
Lawn and Garden
High performance products for
professional maintenance of ‘green areas’.
Professional Lawn and Garden
Relatively new market and product area for Husqvarna
Total market, all categories: > SEK 30 billion
‘Landscape
Maintenance’
Hand-held
‘Turf-care’
ZTRs/Riders
‘Speciality Turf’
Aerators/
Sod cutters
• Market for Husqvarna’s products: Approx. SEK 15 billion
• Annual growth rate: 5-6%
• North America: ~ 50%; RoW: ~ 50%
‘Sports
&
Golf’
Professional Lawn and Garden
Dealer
Share of Group sales, 2006
• Sales: Approx. 30% of Professional Products
Western
Europe
• CAGR, 2003-2006: 6%
12%
All figures incl. acquisitions on 2006 full-year basis
Brands
Plants
USA, Sweden, Japan, China
Distribution Global network of 25,000 servicing dealers of totally 70,000
Professional Lawn and Garden
Products
Position
Competitors
‘Landscape Maintenance’
Hand-held
‘Turf-care’
ZTRs/Riders
‘Speciality Turf’
Aerators/Sod cutters
No.2
No. 4/5 ZTRs
No. 1 Riders
N.A.
Stihl
Echo
Shindaiwa
Toro
GGP
John Deere
Scag, B&S
Textron
John Deere
Wheeled Product Areas
Commercial Turf Care/Sports and Golf
Com
No1
Zero Turns
e
r
a
C
rf
New 08
u
T
l
a
merci
Stand-On Z
Integrated Collection
No4/5
Intermediate Walks
Wing Mower
Outfront Rider*
No1
Small Outfront Rider
Compact Tractor
Sports and Golf
Push Mower*
Fairway Mower
Wide Area Mower
Trim & Utility Mower
Riding Green Mower
Green Mower
No1
Speciality
Turf
Dethatcher
Over-Seeder
Aerator
Sod Cutter
Stump Grinder
Bed Shaper
Trencher
Blower
Utility Vehicles
Bunker Rake/Groomer
Core Harvester
Sprayer
Irrigation Systems
Utility Vehicles
Skid Steers
Product development
Examples of new launches
2006/
New Trimmer/Brushcutter
2007
Sales +15%
2007 New Front Rider range
Sales +12%
2007 New larger Front Rider
Sales +45%
Professional Lawn and Garden
Acquisitions
• Acquired 2006: Strengthened position in ZTR market in US
-Production integrated into one plant
• Acquired 2007: Strengthened position in US & Japan
-Strengthened product portfolio = Now No.1 in blowers
• Acquired end of 2006: Market leader within ‘Premium’/Commercial
lawnmower market in Scandinavia
-Fully integrated into Husqvarna organization for 2008
Professional Lawn and Garden
• Relatively new market area for Husqvarna
• Professional premium products
• Strong ‘Professional’ premium brand
• Global sales organization with strong dealer network
• Strong in handheld products and Riders
• Building positions in other wheeled product areas
Bo Andreasson
Head of Forestry
Forestry
Share of Group sales, 2006
15%
• Sales: Approx. 40% of Professional Products
• CAGR, 2003-2006: 7%
All figures incl. acquisitions on 2006 full-year basis
Brands
Market position World's largest chainsaw manufacturer in total volume
Leading technologies and strong patent portfolio
Products
High-performance chainsaws, forestry clearing saws
and accessories
Major plants
Sweden
Product range & consumer segments
Chainsaws
Accessories
Forestry and farmer customers
Demanding consumers
Forestry clearing saws
Accessories
Protective gear
Lubricants and fuels
Forestry tools
Cutting equipment
Forestry market
Trends
Key Growth Drivers
•
Historical market growth: 3-5%
• Logging activity
•
“Prosumers” account for
increasing part of market for
professional products
• GDP growth
•
Servicing dealers still key
channel for professional users
and demanding consumers
• Energy prices
• Increasing demanding
consumer usage
• Extended distribution
Market - first half 2007
Down in volume, flat in value
Chainsaws
-
US
Southern Europe
+ Eastern Europe
Up in volume/up in value
Clearing saws
Canada
+ New Husqvarna and Jonsered models
have created higher demand
+ Price on wood increases
Continued growth
Accessories
-
US market slightly down
+ European storm January
+ General development in Europe
Key competitors and distribution channels
Chainsaws
Stihl
Clearing saws
Stihl
Accessories
Stihl, Blount/ Oregon,
Many niche competitors
World wide network of approximately 25,000 servicing dealers
• Developed during 50 years - difficult to copy for new competition
• Continued high investment in merchandising, training and profiling
Other channels
• Limited range with Lowe’s and Sears (US)
Zenoah
Acquisition of leading Japanese company in petrol handheld
• Full-year net sales of approx. SEK 1,200 million
• Market leader in Japan
• Strong presence in Far East including manufacturing and sourcing
Significant synergy opportunities and limited overlap
• Cross-selling
• R&D
• Purchasing
• Manufacturing
Integration project proceeding well
• Common product platforms already introduced
• Several opportunities identified within purchasing and manufacturing
Strategic initiatives
1. Accelerated product development
•
•
•
•
Engine technologies
Extended product range
Features and accessories
Synergy opportunities with Zenoah
2. Grow distribution network
3. Cost reductions
•
•
•
LCC sourcing
Synergies with Zenoah
Productivity improvements
Summary
• Leading brand and market positions in
premium segments
• Strong global sales organization and
wordwide servicing dealer network
• High technological competence, leading
patent portfolio and strong product pipeline
Anders Ströby
Head of Construction
Construction
Share of Group sales, 2006
• Sales: Approx. 30% of Professional Products
10%
• CAGR, 2003-2006: 3%
All figures incl. acquisitions on 2006 full-year basis
Brands
Market position
Global no.1, approx. 12% market share
Products
Power cutters, Construction equipment, Construction
diamond tools and Stone diamond tools
Major plants
Sweden, Belgien, USA, China
Strategic Brand change 2006 -2007
Power cutters
Equipment
Diamond tools, Construction
Diamond tools, Stone
Market data
Total market, Group products:
Approx. SEK 27 billion
- Construction: SEK 21 billion, annual growth: ~3%
- Stone: SEK 5.5 billion, annual growth:~ 4-5%
Construction market by region
ROW
North
America
27%
36%
• Trends
- Good growth in Eastern Europe and Asia
- Low steady growth in Western world
• Key demand drivers
- Infrastructure development
- Rental distribution development
- Labour cost
• Major competitors
- Hilti, Tyrolit, Stihl, Wheelabrator
Europe 37%
Stone market by region
North
America
20%
ROW
47%
Europe
33%
Market position
Professional Construction Equipment Market
Light/General
Compactors
Concrete Laying
Sawing/Drilling/
Grinding
Demolition/Breaking
Pumps
Utilities
Fastening
Platforms
Light & Heating
Lifting
Earth moving
Paving
Distribution channels
•
Rental/Retail distribution
-
•
Direct Sales - Construction
-
•
Strong global rental distribution network, relationship
built over many years.
Product reliability key to maintain position.
Separate global sales force with application
knowledge selling directly to large contractors.
Strong customer relationship, support and service level
Direct Sales - Stone market
-
Separate global sales force selling directly to stone quarry
and processing industry.
Strong customer relationship, support and service level.
Distribution strategy
Low Cost
Importers
DIY
Power tool
Manufacturers
Construction
Servicing Retailer
Local
Specialists /
Distributors
Diamond Tool
& Equipment
Manufactures
Rental
Direct
Husqvarna
Generalist
Tradesman
Large Contractor
Diamond Drilling
Sawing Contractors
Floor Preparation
Contractors
Product development Examples of New launches
2006
Low emission power cutter
2007
Cut and Break, new cutting method
2007
Full range of small floor saws
2007
Range of large diesel floor saws
2008
Range of drill motors and drill stands
2008
High frequency electric wall saw
Acquisitions
Jikai, China, December 2006 - Sales SEK 170m*
- Low-cost manufacturing company of size in China
- Enable us to compete in lower-price segment
- Expands product range - sintered blades, grinding wheels
- Access to Chinese market through domestic sales organization
- Manufacturing base for Soff-Cut and floor-grinding diamond tools
* 2006 full-year
Acquisitions
King Concepts, Australia, March 2007- Sales SEK 30m
- Entry in high growth floor-grinding market
- Patented drive-system technology
- Products rebranded to Husqvarna brand
- Products introduced through our sales network during 2007
-Transfer of diamond tool sourcing to Jikai, China 2007/2008
-Transfer of manufacturing to Xiamen, China factory 2008
Acquisitions
Soff-Cut, USA, June 2007- Sales SEK 260m*
- Patented early-entry floor-sawing system
- 95% of sales in North America, opportunities in ROW
- Integration of sales organization in USA completed
- Introduction in our global sales organisation 2007
- Transfer of externally sourced diamond tools to Jikai, China
completed 2008.
* 2006 full-year-basis
Competitive advantages
• Strong brand position in premium segments
• Strong global sales organization, with both
rental/retail and direct sales network
• Broad product offering, quality reputation
• High technological competence, strong R&D
• Strong global manufacturing position
Lawn & garden
Forestry
Construction
Bengt Andersson
President and CEO
Summary
1
Sales and EBIT margin*
1996 - 2006
Sales, SEKm
EBIT margin, %
12%
40
EBIT margin
10%
30
8%
6%
20
Annual sales
4%
10
2%
0
0%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Incl.
acquisitions**
2006 2006, inc.
acq.
*As reported in Electrolux segment reporting. Corporate costs not included.
** Acquisitions included on 2006 full-year basis.
2
Sales and earnings, first half 2007
H1
SEKm
Net sales
EBIT
1)
2)
3)
4)
2007
Change
Adj.
change1)
H1
2006
21,262
9%
3%
19,471
2,742
24%
5%
2,204
EBIT margin, %
12.9
11.3
Earnings per share, SEK2)
4.36
Return on capital employed, % 4)
22.8
24.2
Net debt/equity
1.82
1.15
25%
Including both transaction and translation effects, excluding acquisitions.
Figures for 2006 and 2007 are based on no. of shares as of 30 June 2007, i.e. 385,136,895.
Prof forma.
Calculated as rolling 12 months.
3.49
3
Seasonality
Incl. acquisitions on full-year 2006 basis*
Net Sales
Operating Profit
40%
50%
35%
45%
40%
30%
35%
25%
30%
20%
25%
15%
20%
15%
10%
10%
5%
5%
0%
0%
Q1
Old Husqvarna
Q2
Q3
Q4
Including acquisitions
Q1
Old Husqvarna
Q2
Q3
Q4
Including acquisitions
4
*) Average for period 2004-2006
Balance sheet
June 30
2007
June 30
2007
excl
acquisitions
June 30
2006
Pro forma
Non-current assets
Inventories
Trade receivables
Other current assets
Liquid funds
Total assets
15,030
6,157
8,371
702
1,862
32,122
6,402
4,989
6,436
491
1,597
19,915
6,776
4,762
6,647
606
1,382
20,173
6,746
5,165
3,106
498
840
16,355
Total equity
Int. bearing liab.
Provisions
Trade payables
Other current liabilities
Tot equity and liab
7,334
15,239
3,303
3,490
2,756
32,122
7,041
6,135
1,646
2,954
2,139
19,915
5,892
8,155
1,487
2,442
2,197
20,173
6,264
5,090
1,463
2,209
1,329
16,355
SEKm
Dec 31
2006
5
Cash flow*
3,000
2006
2,000
2005
1,000
0
-1,000
-2,000
Jan
Feb
Mar
Apr
Maj
Jun
Jul
Aug
Sep
Okt
Nov Dec
2007
-3,000
-4,000
-5,000
-6,000
2005
CF-05
*Total cash flow from operations and investments,
excluding payments for acquisitions
2006
CF-06
2007
CF-07
6
Long-term financial targets
Annual organic growth of approx. 5% over a
business cycle
Growth through complementary acquisitions
Operating margin of more than 10% over a
business cycle
Dividend to correspond to 25-50% of net income
7
How to reach our targets
• Investments in product development
• Utilize Husqvarna and Gardena brand positions
• Expand distribution network
• Further explore LCC opportunities in sourcing
and manufacturing
8
Consumer products under
the Husqvarna brand
(Outside North America)
200
150
Sales
Annual growth
of approx. 22%
100
50
Operating
income
Annual growth
of approx. 35%
0
-50
2003
2006
9
Share of sales under the
Husqvarna brand
%
40
30
20
10
0
2004
2005
2006
10
Building on our strengths
•
Leading market positions
•
Strong brand portfolio
•
Strong distribution network and retail relations
•
Economies of scale
•
High flexibility and cost efficiency in US consumer
operation
•
Strong cash flow
•
Opportunities for acquisitions
11
Lawn & garden
Forestry
Construction
Capital Markets Seminar
19 September 2007
12