PRODUCT MANAGEMENT & DEVELOPMENT

Henric AnderssonHead of Product Management &Development

Starting point: Leading global markets positions

2

1

Chainsaws

Other handheld petrol-powered products Garden tractors Lawn mowers

Consumer watering products (Europe)

Robotic Mowers

1 1-2 2 1 1

Consistently outperforms competition

3

Drwal Poland 2012

Norsk Landbruk Norway 2012

Landwirt Germany 2012 Forestry Journal UK 2012

Small Robotic

Robotic Next Gen

36V Battery handheld (7 products)

Articulated Pro RiderConsumer Rider

Crossmower 30”

Fast Tractor

Technical Extreme

#1 Power blower

Pumps w/ protection

Leading performance pro top handle saw

Leading performance 50/60cc pro saws

Leading performance pro trimmers

AWD Walk

Hose boxes

Strong record of innovation

4

2010 2012

Example product innovation during 2010-2012 and 2013 outlook

2013

Continuous strive for perfection

5

Reduced emissions and

fuel consumption

Unmatched performance in

its class

Reduced complexity

Increasing customer value

6

AWD –increasing

customer value by addressing a

need

Differentiate in a mature segment

Increase profitability

Changing the market

7

Pioneer - From mowing to an

automated service

Staying ahead -Perfecting

the concept

Prepare for the future

Leverage clear leadership position

Our strategic priorities

8

Our strategic pillars• Strong global brands• Efficient global

distribution network• Competitive product

offering• Flexible supply chain

Secure the foundation

• Safeguard high quality and reliability

• Reduce product cost and product range complexity

• Optimise footprint and increase flexibility

• Drive channel management in US and EU F&G

• Continue product cost and complexity reduction

• Secure strong technology and product platforms in priority segments (incl. M&A)

• Accelerate emerging markets growth

• Grow online channel

2013

Act for long-term success

2014 – 2015

Ambition to reduce platforms by 20%

Positive effects on product cost, working capital, flexibility and quality

Reduce product complexity

9

Detailed activities to drive savings

• Modular systems

• Standardisedinterfaces

• Optimisedmodules to customer (market), function (performance/ innovation) or operations (cost)

Modularisation

• Common parts within and across platforms

• Common R&D solutions throughout the company

• Common specification and production processes

Standardisation

• SKU reduction

• Platform consolidation

• Selective exits of non-core segments

Range management

Time

10

Reduce product cost

Direct material costreduction

Conversion cost reduction

Logistics costreduction

Opportunity to reduceproduct cost

Valueengineering

Featuring

Specification and material

Design for cost

Complexityreduction

Range management

Standardisation

Modularisation

Leverage clear leadership position

Our strategic priorities

11

Our strategic pillars• Strong global brands• Efficient global

distribution network• Competitive product

offering• Flexible supply chain

Secure the foundation

• Safeguard high quality and reliability

• Reduce product cost and product range complexity

• Optimise footprint and increase flexibility

• Drive channel management in US and EU F&G

• Continue product cost and complexity reduction

• Secure strong tech-nology and product platforms in priority segments (incl. M&A)

• Accelerate emerging markets growth

• Grow online channel

2013

Act for long-term success

2014 – 2015

Trends influencing product strategy

• Demographics and consumer trends– Aging population– Changing buying behaviors– Garden size is becoming smaller

• Channels and product segments– Commercial Lawn & Garden

growing– Increasing retail competition

• Growing emerging markets

• New technologies, e.g., battery & robotic

12

Continued focus on core products

Increase activity and investment in selected products

Long-term investments in core technologies

Targeted technology & product investmentsInvestments tied to refined product strategy

13

14

Foundation for future growthBattery small but growing

Key to offer ”one batterysystem” for all applications

Clear market leader in robotic mowers, the fastest growing segment

Ease of use, noise and environmental awareness keygrowth drivers

Positioned for double digit growthAssortment tailored for emerging markets

15

Adapt complimentary range of wheeled products

Adapt handheld range & design to unique applications

Local production of proven hand-held pro platforms

Product differentiation

between brands and channels

Primary DevelopmentTime-to-market Industrial design

is key

Enablers for innovation leadership

16

17

SummaryPM & D

Refined product strategy and

reduced product cost & complexity

Continued high rate of innovative

product development

Global market leadership