husqvarna group presentation
TRANSCRIPT
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
20
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
22
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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