Presentation of HusqvarnaStockholm, May 29-30, 2006
Bengt AnderssonPresident and CEO
Global leader in outdoor power products and cutting equipment for construction and stone industries
ForestryLawn and garden Construction
The Husqvarna Group
Key data, 2005
Production facilities
Europe7
North America
5
Rest of world
1
Sales by region
• Sales: SEK 28.8bn• EBIT: SEK 2.9bn• Net debt/equity ratio: 1.12• No. of employees: 11,700
Financial data pro forma
Consumer64%
Sales by business area
Professional36%
Forestry
Lawn & garden
Construction
NorthAmerica
ROW
North America57%
Europe37%
ROW 6%
Latin America
1
Lawn and gardenForestry
Garden productsConstruction products Garden products
Interrelated end-user markets
Lawn and gardenForestry
Garden productsConstruction products Garden products
Interrelated end-user marketsInterrelated:• Portable products• Distribution• Husqvarna brand
Europe - Consumer Global
Garden productsConstruction USA - Consumer
Electric, high-end segment:
Petrol, mid-segment:
TARGET
Petrol, mid-and low-endsegments:
Professional and high-end consumer:
NA andEurope:
Strong brand portfolio
Time
Portable petrol –professional
Electric
Wheeled petrol
Portable petrol –consumer
Professionallawn & garden
Constructionproducts
HusqvarnaPartnerJonsered
PioneerJobu
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
Norlett
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
Marazzini
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
Marazzini
PartnerIndustrial
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
Marazzini
PartnerIndustrial Dimas
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
Marazzini
PartnerIndustrial Dimas
CushionCut
Magnum
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan
WeedEater
AmericanYard
Products
Allegretti
McCulloch
Marazzini
PartnerIndustrial Dimas
CushionCut
MagnumDiamant
Boart
HusqvarnaPartnerJonsered
PioneerJobu
Flymo
NorlettPoulan WeedEater 1986
American Yard Products1988
Allegretti1990
McCulloch1999
Marazzini2001
PartnerIndustrial
Dimas1987
CushionCut
Magnum 2000
DiamantBoart2002
Yazoo-Kees1999
Bluebird2000
Successful acquisitions
Leading global positions for 90% of sales
• Chainsaws
• Other portable petrol
• Tractors
• Lawn mowers
• Diamond tools for constructionand stone industries
Global no. 1
Global no. 1
Global no. 1-2
Global no. 1
Global no. 1
0
6
12
18
24
30
36
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Sale
s, S
EK b
n
0%
2%
4%
6%
8%
10%
12%
EBIT
mar
gin
EBIT margin
Sales
History of profitable growth
Organic growth driversGrowth in demandMarket share gainsProduct/market expansion
Sales CAGR 1996-2005: 7.5% (5.5% excl. acquisitions)EBIT CAGR 1996-2005: 10%
Note: As reported in Electrolux segment reporting. Corporate costs not included
Strong position for Husqvarna brandin high-end segments
Key drivers of performance
Successful product development
Global sales and service organization
Strong positions with leading retailers
Successful integration of acquisitions
1
2
3
4
5
9 5279 885
10 40815,4%15,8%
16,7%
2003 2004 2005
Sales Operating Margin
SEKm
4.5% annual sales growth 2003-2005
Key demand drivers:• Logging activities• ”Prosumers”• Private gardens maintained
by contractors• Construction – infrastructure
and commercial buildings
Key performance drivers:• Brand• Growth • Price management
Major competitors:Stihl, Toro, Tyrolit
Professional Products
2003 2004 200535.3% 36.7% 38.5%
RONA:
Sales and margin(In comparable currency)
16 430
17 967 18 360
8,6% 9,1%
7,3%
2003 2004 2005
Sales Operating Margin
Consumer Products
SEKm
Sales and margin(In comparable currency)
5.7% annual sales growth 2003-2005
Key demand drivers:• Housing starts• Consumer spending on
home improvement• Weather
Key performance drivers:• Cost-efficiency• Brand• Price management• Growth
Major competitors:MTD, GGP, TTI
2003 2004 200525.5% 27.8% 18.6%
RONA:
*) Includes provision of SEK 40m for closure of Parabiago plant, Italy
*)
1. Organic growth• Continued investments in product development• Expand distribution network• Make full use of Husqvarna brand’s potential
2. Maintain high margins• Focus on growing high-margin businesses• Price management• Cost-efficiency
3. Complementary acquisitions
How to meet our targets
• Strong expertise - Engines for portable products- Working close to professional users
• R&D concentrated to few resource centers• High cost-efficiency based on large
volumes
Product development
Strong global sales network
Strong positions with leading retailers in both Europe and US• Sears – Husqvarna’s largest customer• Growing shares with other major retailers
Strong global dealer base• Loyalty and stability• Decades of investments to develop
LCC challenges and opportunities
Pricing pressureNew competitors
Industry is relocating
Cost benefits
• Continue to strengthen brand position
• Add value for retailers and consumers- Excellence in products and services
• Optimize pace of transfer to LCC manufacturing and sourcing
Husqvarna´s strategy
LCC challenges and opportunities
Long-term financial targetsAnnual organic growth of approx. 5% over abusiness cycle
Growth through complementary acquisitions
Operating margin of more than 10% over abusiness cycle
Dividend to correspond to 25-50% of net income
Presentation of HusqvarnaStockholm, May 29-30, 2006
Bernt IngmanCFO
Husqvarna Group, Q1 2006Pro forma
SEKm 1st QuarterChange,
%
Net sales 9 338 7 880 18.5 8.2 28 768Gross Profit 2 218 23.8 1 935 24.6 7 659 26.6
EBIT 929 9.9 814 10.3 14.1 6.7 2 871 10.0
Income after fin. items 792 8.5 676 8.6 17.2 – 2 392 8.3
Income for the period 546 5.8 453 5.7 20.5 – 1 603 5.6
Key ratiosEarnings per share SEK 1.85 1.53 5.46Equity per share, SEK 17.80 12.07 16.07ROCE, % 23.4 27.1 23.5
Adj.*)
Change2006 % of
sales2005 % of
sales
Full year2005 % of
sales
*) In comparable currencies
• Strong pre-season sales inboth Europe and North America,based on improved shareswith retailers.
• Higher operating income,margin in line with previous year.
Q1 2006 SEKm
Sales 6,540 20.7% EBIT 503 19.5%Margin 7.7%
In comparable currencySales 9.1%EBIT 8.6%
Change
Consumer Products, Q1 2006
Professional Products, Q1 2006
• Higher sales and EBITfor chainsaws, in comparison with strong Q1 2005
• Strong sales and higher EBIT for both Lawn and gardenand Construction
• Overall, slightly lower margindue to product/countrymix effects
Q1 2006 SEKm
Sales 2,798 13.6% EBIT 455 7.8%Margin 16.3%
In comparable currencySales 6.3%EBIT 3.9%
Change
Mar 31 Mar 31 Dec 31SEKm 2006 2005 2005
Intangible assets 2 293 1 963 2 182Tangible assets 3 830 3 164 3 846Other fixed assets 1 019 952 931Inventories 6 240 6 022 6 264Accounts receivable 7 882 7 030 3 325Other assets 446 588 596Liquid funds 1 057 1 061 1 104Total assets 22 767 20 780 18 248
Total equity 5 264 3 567 4 717Int bearing liab. 10 983 10 469 6 404Provisions 1 450 1 631 1 473Accounts payables 3 036 2 999 4 222Oth non int. bearing liabilities 2 034 2 114 1 432Tot equity and liabilty 22 767 20 780 18 248
Net Debt 9 926 9 408 5 300Net Debt/Equity 1,89 2,64 1,12Investments 266 253 1 259
Balance Sheet, Pro forma
0
2 000
4 000
6 000
8 000
10 000
12 000
Q1 Q2 Q3 Q4
2003 2004 2005 2006
0
200
400
600
800
1 000
1 200
1 400
Q1 Q2 Q3 Q4
2003 2004 2005 2006
Average of Q1 Q2 Q3 Q4Total Year 29% 34% 21% 16%
Average of Q1 Q2 Q3 Q4Total Year 29% 39% 21% 11%
SEK m SEK m
Operating ProfitNet Sales
Strong seasonal variationsFirst half represents approx. 60% of sales and 65% of operating profit
Seasonality
-5 000
-4 000
-3 000
-2 000
-1 000
0
1 000
2 000
3 000
4 000
Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec
-50 000
-40 000
-30 000
-20 000
-10 000
0
10 000
20 000
30 000
40 000
Distinct seasonal variation pattern:
Sales; approx. 60% in first half of the year
Operating profit; approx. 65% in first half
Operating cash flow; approx. 100% in second half
EBIT/ OP CFSEKm
Net SalesSEKm
SeasonalitySales, EBIT and operating cash flow
Summary
Create value for shareholders through good growth, high profitability and strong cash flow
• Leading market positions
• Strong brand portfolio
• Expertise in product development
• Strong distribution network
• Organic growth
• Complementary acquisitions
• Strong, stable cash flow
Global leader in outdoor power products and cutting equipment for construction and stone industries
ForestryLawn and garden Construction
The Husqvarna Group