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2016-02-08

Husqvarna AB: Year-End Report 2015

Kai Wärn, President and CEO:
"The Group's trend of improvement continued into the seasonally less
important fourth quarter. Currency adjusted sales were 2% higher than
prior year's corresponding quarter. Husqvarna, Gardena and
Construction divisions grew by 6%. The decline for Consumer Brands
was 10% which reflects our ambitions to prioritize value before
revenue. The normal seasonally generated operating loss, excluding
items affecting comparability, was reduced to SEK -212m (-265) and
the margin recovered to -3.7% (-5.0) despite unfavorable currency
impact. The Accelerated Improvement Program continued to yield
positive results, mainly related to further cost reductions.

For the full year, the Group's development was positive in several
dimensions. Operating income was 27% higher and reached SEK 2,980m,
excluding items affecting comparability, with all divisions
contributing to the improvement. Operating cash flow increased to SEK
1,668m (1,425) and the net debt declined to SEK 6,375m (7,234).

The Accelerated Improvement Program was successfully closed as of the
end of 2015. In two years, the Group's operating income has improved
by 85% and the margin has recovered from 5.3 to 8.2%, excluding items
affecting comparability, despite a dilution of more than 1 percentage
point due to currency translation effects on net sales.

Building on the success of the Accelerated Improvement Program and our
strong improvement momentum, we aim to capture further cost
reductions and efficiency improvements during 2016-17. The additional
efficiency measures will focus on continued product cost out
activities, reduction of indirect material and logistic costs,
capacity adjustments in the supply chain and improved efficiency in
terms of selling and administrative expenses.

The challenge now is to maintain enough momentum to offset the
currency head-wind in 2016, which is estimated to up to SEK -500m, as
well as to fund new activities related to our profitable growth
ambition. The challenge is especially pronounced in the first quarter
when we expect half of the full-year currency impact to materialize.

From a market point of view, we expect a stable to slightly higher
demand in the preseason of 2016."

Fourth quarter 2015

· Net sales increased 2% to SEK 5,672 (5,323), adjusted for exchange
rate effects.

· Operating income improved to SEK -212m (-265), excluding items
affecting comparability.

· Operating income includes restructuring charges amounting to SEK
-153m.

Full-year 2015

· Net sales increased to SEK 36,170m (32,838), but decreased 1%
adjusted for exchange rate effects.

· Operating income increased 27% to SEK 2,980m (2,348), excluding
items affecting comparability, corresponding to a margin of 8.2%
(7.2).

· Earnings per share after dilution rose to SEK 3.28 (1.43).
· Net debt decreased to SEK 6,375m (7,234) and the net debt/equity
ratio declined to 0.49 (0.60).

· The Board proposes a dividend of SEK 1.65 per share (1.65).
Telephone conference
A combined press and telephone conference, hosted by Kai Wärn,
President and CEO, and Jan Ytterberg, CFO, will be held at the
Scandic Anglais Hotel, Humlegårdsgatan 23, Stockholm at 10:00 CET on
February 5, 2016. To participate, please dial +46 (0) 8 5052 0110
(Sweden) or +44 (0)20 7162 0077 (UK) ten minutes prior to the start
of the conference. The conference call will also be audio cast live
on www.husqvarnagroup.com/ir (http://www.husqvarna.com/ir). A replay
will be available later the same day.

Contacts
Jan Ytterberg, CFO, +46 8 738 90 77
Tobias Norrby, Investor Relations Manager, +46 8 738 93 35

This interim report comprises information which Husqvarna Group is
required to disclose under the Securities Markets Act and/or the
Financial Instruments Trading Act. It was released for publication at
08:00 CET on February 5, 2016.

Husqvarna Group
Husqvarna Group is a world leading producer of outdoor power products
including chainsaws, trimmers, robotic lawn mowers and garden
tractors. The Group is also the European leader in garden watering
products and a world leader in cutting equipment and diamond tools
for the construction and stone industries. The Group's products and
solutions are sold under brands including Husqvarna, Gardena,
McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart
via dealers and retailers to end-customers in more than 100
countries. Net sales in 2015 amounted to SEK 36 billion, and the
Group had more than 13,000 employees in 40 countries.

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http://news.cision.com/husqvarna-ab/r/year-end-report-2015,c9908098
http://mb.cision.com/Main/996/9908098/473161.pdf

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