Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading...
Transcript of Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading...
![Page 1: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/1.jpg)
Husqvarna Group Capital Markets Day 2019
September 17, Huskvarna
![Page 2: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/2.jpg)
Agenda
10:00 Husqvarna Group’s transformation and next phase
11:30 Product demonstrations at Slottsvillan park incl. lunch
14:15 Divisional updates and future technology
CEO Kai Wärn
CFO Glen Instone
Husqvarna, Gardena and Construction
Husqvarna Division, Sascha Menges
Gardena Division, Pär Åström
Construction Division, Henric Andersson
Technology, CTO Anders Johansson
Closing remarks16:15
16:30 Factory tour – optional
CEO Kai Wärn
![Page 3: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/3.jpg)
Poised for
profitable growth
Kai Wärn
September 17, 2019
![Page 4: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/4.jpg)
Poised for profitable growth
• Attractive market – significant opportunity
for strong brands and technology
• We are well positioned after substantial
transformations and investments
• Next phase focus: customer experience,
robotics and battery, winning core and
services & solutions
• Value creation – above average industry
growth and profitability
(1) Defined as 2 percentage points above market growth, historically at 2-3%. Currency adjusted.(2) Weighted average industry profitability based on peer group benchmark.
Growth(1):(CAGR) 4-5%EBIT margin: >10%
GROW TH
”Profitability first”
“Above industry growth and margin(2)”
2020
“Expansion and profitable growth”
2016
PR
OF
ITA
BIL
ITY
2013
![Page 5: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/5.jpg)
Focus on
leading brands
and positionsEnd-customer
based strategy
and organizational
structure
Dissolving
Consumer Brands
Division
Market leadership supported by significant and
continuous transformation
Built a culture of strong
efficiency programs
funding strategic initiative
cost additions
Significant capability
expansion in software,
electronics and IoT
A market and tech
LEADERin our industry
2019
2013
![Page 6: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/6.jpg)
Year2013
Branded sales
65%
2019 12M rolling
Branded sales
85%
Transformation
Focus on strong brands
![Page 7: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/7.jpg)
Net sales
2013 12M rolling
Consumer brands / legacy
Winning core
Parts, services and solutions
Robotics and battery
(1)Sales CAGR of 3% is based on Group, growth adjusted for Consumer Brands exits.
Transformation
Focus on high growth segments and a winning core
![Page 8: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/8.jpg)
SEK1.5 bn
Efficiencyprograms
SEK1.5 bn
Additional cost for strategic growth
Transformation
Culture of strong efficiency programs to finance strategic initiatives
Note: savings and cost increases/investments during 2016-2019
![Page 9: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/9.jpg)
Transformation
Significant capability expansion
Tech leadership aspiration
• 300 new recruitments last
five years
• Software, electronics & IoT
![Page 10: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/10.jpg)
5,0%
5,5%
6,0%
6,5%
7,0%
7,5%
8,0%
8,5%
9,0%
9,5%
10,0%
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Q3
201
3
Q4
201
3
Q1
201
4
Q2
201
4
Q3 2
014
Q4
201
4
Q1
201
5
Q2
201
5
Q3
201
5
Q4
201
5
Q1
201
6
Q2
201
6
Q3
201
6
Q4 2
016
Q1
201
7
Q2
201
7
Q3
201
7
Q4
201
7
Q1
201
8
Q2
201
8
Q3
201
8
Q4
201
8
Q1 2
019
Q2
201
9
Operating income rolling 12 months* Operating margin rolling 12 months*
SEKm Group operating income and margin development
* Excluding items affecting comparability
Our profitability improvement trajectory
Absorbed increase of SEK 0.8 bn of raw materials and tariffs
![Page 11: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/11.jpg)
No. 1 – Robotic lawn mowers
Leading the way through innovation in high growth residential segments
Inventor and market leader
No. 1 – Watering & smart garden systems
![Page 12: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/12.jpg)
Growing through innovation in the professionalsegments
No. 2 – Pro handheld solutions No. 1 – Light construction products
![Page 13: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/13.jpg)
Capturing
growth in
our
MARKETS
![Page 14: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/14.jpg)
TRENDS
Growing professional segment
requesting productivity,
automation and connectivity
Strong demand for new
technology and innovation
Services / solutions
Evolving multichannel
distribution
Attractive market fundamentals
MARKET
A sizeable market of
SEK 245 bn
Overall market growth 2–3%, with
double digit growth potential in
several segments and geographies
A market which rewards innovation and
strong premium brands
![Page 15: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/15.jpg)
We are well positioned in the residential lawn mowing
market
Residential lawn mower market
Robotic and battery
Ride on
Petrol walk behind
2013 2014 2015 2016 2017 2018 2019
Value share
Next phaseCAGR
+15%
+1%
-2%
![Page 16: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/16.jpg)
Leveraging on our group strengths to accelerate growth
in our divisions
Vision, culture and
leadership
Strong brands and global
go-to-market expertise
Services and new
business models
Technology and
innovation
![Page 17: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/17.jpg)
Globally first forest and
garden company with CO2
reduction targets approved
by the Science Based
Targets Initiative
Sustainability – committed to the green path
Achieved 21% CO2 intensity
reduction since 2015
– well ahead of our
10% reduction target
![Page 18: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/18.jpg)
shaping
Greatexperiences
next phase
OUR STRATEGY
![Page 19: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/19.jpg)
OUR STRATEGY
(1) Defined as 2 percentage points above market growth, historically at 2-3%. (2) Weighted average industry profitability based on peer group benchmark
Growth(1):(CAGR) 4-5%EBIT margin: >10%
GROW TH
”Profitability first”
“Above industry growth and margin(2)”
2020
“Expansion and profitable growth”
2016
PR
OF
ITA
BIL
ITY
2013
![Page 20: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/20.jpg)
Operational &
commercial excellence
Customer
experience
Robotic
and
battery
Services
and
solutions
Winning
core
![Page 21: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/21.jpg)
Customer
experience
Robotic and
battery
Services
and
solutions
Winning
core
Construction
Customer focus
![Page 22: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/22.jpg)
Customer
experience
Robotic
and
battery
Services
and
solutions
Winning
core
Connectivity and AI bring us closer to, and create
value for the customer
Market leader
• >300k connected
products and users
• Residential and
Professional solutions
![Page 23: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/23.jpg)
Expanding services and solutions
• Expand from the
established P&A base
• XaaS and other new
business models
• Experimentation and
Eco-systems key
• Grow services business
Customer
experience
Robotic
and
battery
Winning
core
Services
and
solutions
![Page 24: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/24.jpg)
• Leverage our strong brands and
leadership positions
• Continue to develop and innovate
core categories and go-to-market
• Capture fair share of P&A and
aftermarket
Winning
core
Customer
experience
Services
and
solutions
Robotic
and
battery
HusqvarnaGardenaConstruction
Our winning core – continue to invest and innovate
![Page 25: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/25.jpg)
Robotic lawn mowers
![Page 26: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/26.jpg)
Residential robotic lawnmowers
– established segment
Robotic
and
battery
Customer
experience
Winning
core
Services
and
solutions
• Clear market leader since 1995 with
2 millions systems sold
• Strong product development pipeline
• Geographic expansion
• Exploring new go-to market
concepts and new business models
• Residential market size: SEK ~7bn
• Mid term annual growth rate: ~15%
![Page 27: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/27.jpg)
Next opportunity – solutions for green space
professionals
PRO Products Fleet & business management Dedicated sales organization
PRO service dealer
Robotic
and
battery
Customer
experience
Winning
core
Services
and
solutions
![Page 28: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/28.jpg)
Innovation leadership – providing flexible solutions for
Green Space Professionals
• Built on 25 years of robotic
lawnmowing experience
• Virtual boundary solution for flexible
multi-area use
• Provide centimeter accuracy
• Focused introduction 2020
• Part of demonstration today
![Page 29: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/29.jpg)
www.husqvarnagroup.com
![Page 30: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/30.jpg)
Financial
next phase
Glen Instone, CFO
September 17, 2019
![Page 31: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/31.jpg)
Our continued path to value creation
(1) Defined as 2 percentage points above market growth, historically at 2-3%. (2) Weighted average industry profitability based on peer group benchmark
Growth(1):(CAGR) 4-5%EBIT margin: >10%
GROW TH
”Profitability first”
“Above industry growth and margin(2)”
2020
“Expansion and profitable growth”
2016P
RO
FIT
AB
ILIT
Y
2013
![Page 32: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/32.jpg)
Our financial focus
Capital efficiency
Profitability
Growth
![Page 33: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/33.jpg)
Seasonality is predictable in our business
3234
19
15
Q1 Q2 Q3 Q4
Net sales (% by quarter) Operating income (% by quarter)
40
55
11
-5
Q1 Q2 Q3 Q4
Capital efficiency
Profitability
Growth
Note: based on 5 year average net sales and operating income by quarter.
2/3 of net sales and 95% of EBIT in first half
![Page 34: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/34.jpg)
Key organic growth drivers
Next phase
Roboticsand battery
Parts,services & solutions
Further exits 2020 - legacy
segments
Winning core
Rolling12 months
Capital efficiency
Profitability
Growth
Illustrative
(1) Defined as 2 percentage points above market growth, historically at 2-3%. Year 2020 will be affected by previously communicated exit from legacy Consumer brands business
![Page 35: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/35.jpg)
Illustrative
Next phase EBIT margin development Capital efficiency
Growth
Profitability
8.9%
Strategic initiatives
Volume, price & mix
EfficienciesRolling12 months
![Page 36: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/36.jpg)
• Operational leverage
• COGS and SG&A
The continued transformation journey requires
further efficiency savings
Efficiencies and savings
• Robotics and Battery
• Services and solutions
Strategicgrowth initiatives
Capital efficiency
Growth
Profitability
![Page 37: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/37.jpg)
8.9%
>10%
Illustrative
Capital efficiency
Growth
Profitability
Next phase EBIT margin development
Next phase
Strategic initiatives
New business models
Volume, price & mix
EfficienciesRolling12 months
![Page 38: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/38.jpg)
Capital expenditures Net working capital to net sales
Continued investments into profitable growth.
Improved capital efficiency is a prerequisite.
0%
2%
4%
6%
8%
0
500
1 000
1 500
2 000
2 500
2013 2014 2015 2016 2017 2018
CAPEX CAPEX / net sales
SEK m CAPEX / net sales
Capital efficiency
Growth
Profitability
20%
22%
24%
26%
28%
30%
Q22016
Q42016
Q22017
Q42017
Q22018
Q42018
Q22019
Working capital / sales Target level <25%
![Page 39: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/39.jpg)
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
Times
Substantial headroom given strong balance sheet
Q22013
Q22014
Q22015
Q22016
Q22017
Q22018
Q22019
Average net debt / rolling 12 months EBITDA, excl. items affecting comparability.
Average net debt / EBITDA
Capital efficiency
Growth
Profitability
![Page 40: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/40.jpg)
0
50
100
150
200
250
300
2014 2015 2016 2017 2018 2019
Index
Husqvarna
OMX30
+131%
+53%
Proven track record of value creation
Including reinvested dividend, period 2014-01-02 – 2019-09-10
Total shareholder return
![Page 41: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/41.jpg)
Growth
EBIT
margin
Capital
efficiency
Capital
allocation
Net sales growth 4-5%(1)
EBIT-margin >10%
Average net working
capital / net sales ≤ 25%
Rating: BBB
Dividend: >40% of net profit
Next phase financial targets
(1) Defined as 2 percentage points above market growth, historically at 2-3%. Currency adjusted
![Page 42: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/42.jpg)
Poised for profitable growth
• Attractive market – significant opportunity
for strong brands and technology
• We are well positioned after substantial
transformations and investments
• Next phase focus: customer experience,
robotics and battery, winning core and
services & solutions
• Value creation – above average industry
growth and profitability
(1) Defined as 2 percentage points above market growth, historically at 2-3%. Currency adjusted.(2) Weighted average industry profitability based on peer group benchmark.
Growth(1):(CAGR) 4-5%EBIT margin: >10%
GROW TH
”Profitability first”
“Above industry growth and margin(2)”
2020
“Expansion and profitable growth”
2016
PR
OF
ITA
BIL
ITY
2013
![Page 43: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/43.jpg)
SHAPING CUSTOMER EXPERIENCES
Husqvarna Division
September 17, 2019
![Page 44: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/44.jpg)
HUSQVARNA SHAPING CUSTOMER EXPERIENCES
44
Leading global brand
for professionals and
consumers
Strong market positions
and leading in innovation
Privileged network of
servicing dealers
Continued growth
through customer
centricity
![Page 45: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/45.jpg)
MEET OUR END-CUSTOMERS
GREEN SPACE PROFESSIONALS
PRO-GRADEEXPERTS
TREE PROFESSIONALS
![Page 46: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/46.jpg)
BACK ON MARGIN IMPROVEMENT TRAJECTORY
46
0%
2%
4%
6%
8%
10%
12%
14%
2 000
7 000
12 000
17 000
22 000
27 000
32 000
2014 2015 2016 2017 2018 R12 months
Net sales EBIT margin (ex xo-items)
(1) Sales CAGR of 3% is based on Husqvarna Division prior to inclusion of Consumer Brands North America. Including -1%.
Net sales CAGR: 3%(1)SEKm NET SALES GROWTH
• High growth in robotics, parts &
accessories and battery products
• Exit of North American consumer
brands business in 2018 and 2019
EBIT
• Product mix and pricing
• Higher costs for raw materials /
logistics and tariffs
• Restructuring of Consumer Brands in
NA
![Page 47: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/47.jpg)
POSITIONED TO CAPITALIZE ON MARKET CHARACTERISTICS AND TRENDS
47
Urbanization shiftingcustomer needs
Robotization growth of automated/connectedoutdoor care
Shift in power sources high demand for battery products
Changing consumer behaviors distribution changes and new business models
Global 135 bn SEK market
Underlying market growth +2-3%
High growth segments include robotics
and battery products
Attractive aftermarket
MARKET SIZE AND POSITION TRENDS
![Page 48: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/48.jpg)
FIVE STRATEGIC GROWTH INITIATIVES AND DRIVERS
48
Customer centric solutions & services
Accessibility and go-to market
Pro battery leadership
Robotics leadership
Innovation in the core
![Page 49: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/49.jpg)
CUSTOMER CENTRIC SOLUTIONS AND SERVICES
49
AMC
![Page 50: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/50.jpg)
INNOVATION TO GROW AND WIN IN OUR CORE
50
![Page 51: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/51.jpg)
GLOBAL MARKET LEADER IN ROBOTICS
• Created and continue to shape the global
robotics market
• Broadest offering in the market
For both residential and commercial
segment
• Strong product pipeline of coming
launches Investing in Robotic R&D and
Go-to-market
• Mid term growth rates ~15% p.a. globally
51
![Page 52: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/52.jpg)
SIGNIFICANT LONG-TERM MARKET OPPORTUNITY
52
DACH
SWITZERLAND
UK
Robotics value
share of sales
(residential
lawn mowing
market)
SCANDINAVIA
SOUTHERN
EUROPE
NORTH AMERICA
HIGH
MEDIUM
LOW
![Page 53: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/53.jpg)
SOLUTIONS FOR GREEN SPACE PROFESSIONALS
53
PROFESSIONAL AUTOMOWER LINE-UP
Fleet ServicesTM
Husqvarna PRO
service dealer
• Expand Pro sales
organization
• Pipeline of new
products and
concepts
• Support with PR
and marketing
• Sustainability as a
business driver
HUSQVARNA EPOS TECHNOLOGY
• Virtual boundary solution
• Flexible multi-area use
• Provide centimeter accuracy
• Selective introduction 2020
![Page 54: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/54.jpg)
PRO ROBOTICS: SIGNIFICANT COMMERCIAL MARKET POTENTIAL
COST STRUCTURE FOR COMMERCIAL LAWN MOWING, ILLUSTRATIVE
TODAY FUTURE
![Page 55: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/55.jpg)
HIGH GROWTH IN PROFESSIONAL BATTERY PRODUCTS
55
• Leading pro portfolio,
single eco-system
• Supporting all three
target groups
• Fleet ServicesTM as
differentiator
• Direct distribution for
large accounts supported
by servicing dealer
network
![Page 56: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/56.jpg)
INCREASING ACCESSIBILITY AND EXPERIENCE -BUILDING ON SERVICING DEALER NETWORK
Servicing dealers
Pop-up stores Retail pilots
Pro sales E-commerce
Increasing accessibility
Integrated distribution and service
setup
![Page 57: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/57.jpg)
HUSQVARNA SHAPING CUSTOMER EXPERIENCES
57
Leading global brand
for professionals and
consumers
Strong market positions
and leading in innovation
Privileged network of
servicing dealers
Continued growth
through customer
centricity
![Page 58: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/58.jpg)
Realising your
gardening dreams
Capital Markets Day
September 17, 2019
![Page 59: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/59.jpg)
![Page 60: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/60.jpg)
Gardena – Passion and Growth
Preferred brand in
gardening
Gardening domain
expansion
opportunity
Unique leading
position in watering
and Smart Garden
Strong financial
track record and
potential
![Page 61: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/61.jpg)
A gardening super brand
The broadest branded product
range for gardeners
A true multichannel distribution
presence
Leading the evolution of the
garden industry
An integrated supply chain with
market proximity
A passionate team
Foundational strengths for growth momentum
![Page 62: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/62.jpg)
The passionate gardener is in focus
“We value our green space and want to create a beautiful result.”
![Page 63: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/63.jpg)
Watering systems Lawn care
Unrivalled product range for gardening
Tree and shrub care Ground and court care
GARDENA smart system
New concepts; City Gardening
![Page 64: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/64.jpg)
0%
2%
4%
6%
8%
10%
12%
14%
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
2014 2015 2016 2017 2018 Rolling12M
Net sales EBIT margin (as rep, excl IAC)
Net sales CAGR: ~10%(1)
Strong growth and EBIT performance
STRONG SALES GROWTH
• Innovation in core categories
• Category and channel expansion
• Focus markets growth
EBIT MARGIN >10%
• Value from innovation and new
products, mix
• Cost control to leverage growth
• Restructuring of Consumer Brands in
Europe
SEKm EBIT %
(1)Sales CAGR of 10% is based on Gardena Division prior to inclusion of Consumer Brands EUAP. Including 4%.
![Page 65: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/65.jpg)
TRENDS
Gardening as an area of passion in a growing community
Multichannel consumer engagement
Urbanization with city gardening
Connectivity and IoT
Sustainable gardening
MARKET SIZE AND POSITION
Global market size of SEK 65bn,
whereof ~50% in Europe
Leading market shares in all
categories in Europe
High growth segments include, watering,
robotics and smart garden systems
In a leadership position aligned with trends
![Page 66: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/66.jpg)
Priorities to drive continued growth
Geo and category expansion
Passionate Gardener engagement
Multichannel experience
Innovation leadership
![Page 67: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/67.jpg)
Market leadership both in Core and Focus
Markets with further growth potential
Core markets
Focus markets
• Germany
• Austria
• Switzerland
• Netherlands
• Belgium
• Southern Europe
• Nordics & UK
• Russia
• Australia
• China & Japan
~55%
~30%
![Page 68: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/68.jpg)
Shovel Rake - hand tools AquaBloom - watering
Innovation to grow and win in core categories
![Page 69: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/69.jpg)
Innovation to lead in new technology areas
![Page 70: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/70.jpg)
Gardena is the leader in the Smart Garden
Major app store ratings
above
> 100k SMART DEVICES CONNECTED
![Page 71: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/71.jpg)
Gardena – Passion and Growth
Preferred brand in
gardening
Gardening domain
expansion
opportunity
Unique leading
position in watering
and Smart Garden
Strong financial
track record and
potential
![Page 72: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/72.jpg)
Q&A
![Page 73: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/73.jpg)
www.husqvarnagroup.com
![Page 74: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/74.jpg)
Building tomorrow
Construction Division
Henric Andersson
September 17, 2019
![Page 75: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/75.jpg)
Building tomorrow
75
Strong position
in attractive market
Large, recurring
revenues from
consumables and
services
Second core
established in
Concrete Surfaces
& Floors
Successful M&A
track record
with further
opportunities
![Page 76: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/76.jpg)
Key strengths in light construction products
76
Innovation and user centric
design and application capability
Broad and high performing
premium product offering
Industry leading brands with
relevant equity and heritage
Strong customer focus and
long lasting relationships
Proven track record of acquiring
and integrating new business
Capabilities optimized for light
equipment and consumables
![Page 77: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/77.jpg)
77
Concrete Sawing & Drilling Concrete Surfaces & Floors
Light Demolition Stone
▪ Civil contractors and tradesmen▪ Sawing and drilling contractors
▪ Abatement contractors▪ Demoltion contractors ▪ Stone quarries
▪ Flooring contractors
End-user focus in four business segments
▪ Compaction, placement & finishing contractors
▪ Natural stone processing companies
![Page 78: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/78.jpg)
Track record of profitable growth
78
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
6 000
6 500
2014 2015 2016 2017 2018 Rolling12M
Net sales EBIT margin (as rep, excl IAC)
Net Sales CAGR: 10%(1)
SEKm
NET SALES GROWTH
• Track record of organic growth
strategy
• Execution of acquisitions
EBIT IMPROVEMENT
• Sales growth, cost efficiency and
integration of acquisitions
• 19% CAGR in SEK
• 1.8 percentage points EBIT margin
improvement
(1)Currency adjusted growth
EBIT %
![Page 79: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/79.jpg)
In a leadership position to capitalize on trends
and market characteristics
79
79
TRENDS
Urbanization and
mega cities
Development of
emerging markets
New and sustainable
work techniques
New business models
(e.g. servitization)
MARKET SIZE AND GROWTH
Global SEK ~45 bn
market
Underlying global market growth
~3%, slightly above GDP growth
Large share of aftermarket
and consumables
![Page 80: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/80.jpg)
Strategic growth initiatives and drivers
Customer experience excellence
#1 in battery powered solutions
Enhance customer value through best-in-class services and after market
Accelerate growth in emerging markets
Growth through acquisitions
80
![Page 81: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/81.jpg)
Growth in services & solutions enhances both
customer loyalty and profitability
81
Parts Accessories
Service Offers
Service Connectivity
Diamond Tools
![Page 82: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/82.jpg)
High pace in service & solution launches
![Page 83: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/83.jpg)
Second core created in Concrete Surfaces & Floors
83
Concrete Sawing & Drilling Concrete Surfaces & Floors
Dirt CompactionConcrete Placement
Floor Creation1 2 3
Rammers
Forward
Plate
Compactors
Reversible
Plate
Compactors
Rollers
Trench
Compactors
Framework
Concrete
Vibration
Concrete
Levelling
Concrete
Surfacing
Concrete
Cutting
Floor
Grinding/
Polishing
![Page 84: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/84.jpg)
Strong brands sharing capabilities and synergies
84
▪ Successful integrations across the value chain with realized cost synergies
▪ Multi-brand organization established
▪ Strong platform for growth both in mature and emerging markets
![Page 85: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/85.jpg)
Building tomorrow
85
Strong position
in attractive market
Large, recurring
revenues from
consumables and
services
Second core
established in
Concrete Surfaces
& Floors
Successful M&A
track record
with further
opportunities
![Page 86: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/86.jpg)
www.husqvarnagroup.com
86
www.husqvarnacp.com
![Page 87: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/87.jpg)
Technology
Anders Johanson, Group CTO
September 17, 2019
![Page 88: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/88.jpg)
Focus on
leading brands
and positionsEnd-customer
based strategy
and organizational
structure
Dissolving
Consumer Brands
Division
Market and tech leadership supported by significant
and continuous transformation
Built a culture of strong
efficiency programs
funding strategic initiative
cost additions
Significant capability
expansion in software,
electronics and IoT
A market and tech
LEADERin our industry
2019
2013
![Page 89: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/89.jpg)
The ongoing tech revolution provides opportunities
Petrol to battery shift
Manual operations to autonomous operations
Re-orientation from mechanics to digital / AI
Ability to scale at speed
![Page 90: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/90.jpg)
We transform our portfolio and hold a leading
position in battery for consumers and pro
• We innovate and capitalize on
technology shifts
• A leading professional offering
• Strength in application and battery
technology know-how
• Dedicated team for battery
technology with key partnerships
![Page 91: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/91.jpg)
Humans are already outsmarted
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015 2016
Vision error rates, %
ALGORITHMS
HUMANS
![Page 92: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/92.jpg)
We transform manufacturing operations- Example Huskvarna
Current level
• Vision cameras incorporating AI
– better than the human eye
Next level
• AI propose actions to operator to
address root causes to error
• Cameras combined with ultra sonic
sensors and AI address wider scope
Vision
• Self-optimizing autonomous system
![Page 93: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/93.jpg)
We explore on ECOSYSTEM level– Example the Gardena Smart System
Platforms Direct integrations
![Page 94: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/94.jpg)
We explore on SYSTEM level– Example the Husqvarna autonomous operations
• An edge to Green Space Professionals
• Start to push the technology frontier in
our industry
• Accelerated capability-building
including applied academic research
• Well connected to the key technology
& start-up community
• Partnerships, example Yeti
![Page 95: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/95.jpg)
Note 1) Mobile World Congress, Barcelona 2019
We explore on PRODUCT level– Great reactions from launch of the AI enabled 435X at MWC1
F8
![Page 96: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/96.jpg)
Predictive and
preventive decisions
support with AI in the
Cloud or on the edge,
i.e. the device
Green surface
intelligence using
e.g. satellites, drones,
ground sensors and AI
We start to push the frontier in our industry- Example AI Lab concepts
End customer
interaction through
Conversational AI
![Page 97: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/97.jpg)
We assess cities of the world against Husqvarna
Urban Green Space Index
Demonstrated
at Living City 2019▪ Benchmark Smart Green
Cities
- 98 cities in 51 countries,
including C40
- 6 KPI’s
- In depth insights
▪ Raise awareness for
importance of green cities
▪ Share our capability as green
data provider and committed
sustainability innovator
![Page 98: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/98.jpg)
• The DSP is established
• Has been a significant effort to
build it
– Including services like
Subscription, API1 mgmt. and
AI models
• A collaborative platform to
innovate with othersOpen
Ecosystem
Common
Services
Cross
Domain
Information
Cloud
Infra-
structure
Strong
Security
Digital Service Platform (DSP)
In position to scale services and solutions fast
Note 1) Application programming interface
![Page 99: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/99.jpg)
Our AI Lab and Venture ability play a key role to
find and explore new opportunities
• Group AI strategy and CoE
• Technology exploration and PoC
• Start-up collaborations
• Applied academic research
• Robotics
• IoT and AI
• New business models
![Page 100: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/100.jpg)
Petrol to
battery shift
Re-orientation
from
mechanics to
digital / AI
Manual
operations to
autonomous
operations
Ability to scale
at speed
Future technology shifts provide significant
opportunities for Husqvarna Group
![Page 101: Husqvarna Group€¦ · 2020 “Expansion and profitable growth” 2016 Y 2013. Focus on leading brands and positions End-customer based strategy and organizational structure Dissolving](https://reader034.fdocuments.us/reader034/viewer/2022050411/5f881554aca27145755cd32c/html5/thumbnails/101.jpg)
www.husqvarnagroup.com