Husqvarna (HUSQ) investor relations material

Strategic transformation and financial targets

• Launched a SEK 4 billion cost-out program, the largest in company history, aiming for annual run-rate savings by 2030, with about 60% of savings realized within 2-3 years and SEK 1.5 billion in non-recurring costs expected.

• New financial targets: 3-5% organic sales growth per year, operating margin above 10% in the near to mid-term and over the cycle, and 15% ROCE by 2030, with margin and ROCE targets excluding items affecting comparability.

• Capital allocation focuses on profitable growth, turnaround segments, and disciplined M&A, with strong cash flow supporting reinvestment and a net debt/EBITDA below 2.5.

• Investments in R&D will remain at 5% of sales, with brand and marketing spend increasing from 3% to 4%-5%.

• Dividend policy is set at or above 40% of net income, maintaining investment grade credit rating.

Business portfolio, divisional roadmaps, and operational excellence

• Three autonomous divisions (Forest & Garden, Gardena, Construction) manage business portfolio units with clear strategies for growth, profitability, or turnaround.

• Forest & Garden focuses on robotics leadership, premium aftermarket services, and expanding aftermarket share of wallet from 20% to 45% by 2030.

• Gardena aims to protect leadership in watering and hand tools, transform powered garden and robotics for profitability, and drive growth through innovation and e-commerce.

• Construction will simplify its portfolio, shift to platform-based design, and reduce product complexity by at least 20% by 2027, leveraging aftermarket and product innovation.

• Operational excellence initiatives target over SEK 4 billion in cost savings by 2030, with complexity reduction, optimized sourcing, and manufacturing improvements.

Market dynamics, innovation, and sustainability

• Facing increased competition, especially in battery and robotics segments, with some market share loss but maintaining leadership.

• Portfolio management prioritizes robotics, aftermarket, and services for double-digit growth, with ambitions to exceed SEK 12 billion in aftermarket sales by 2030.

• New product innovations include AI-enabled robotic mowers and self-operating floor grinders, with a focus on partnerships across the value chain.

• Sustainability targets: reduce CO2 emissions by 60% by 2030 (vs. 2015) and achieve 25% of sales from circular offerings.

• Cost savings and investments will focus on supply chain, product platform, and organizational efficiency.