Husqvarna Ab Class A · OMXSTO:HUSQ_A
Husqvarna Ab Class A — Q4 2024 Earnings Presentation
22 slides from Husqvarna Ab Class A's earnings presentation, Feb 5, 2025
Slide 1: Q4 Results – February 5, 2025
Q4 Results – February 5, 2025 Pavel Hajman, CEO Terry Burke, CFO
Slide 2: Strong cash flow for the year
Strong cash flow for the year Q4 Summary • Results in line with our market guidance • Growth for seasonal products • Delivery on cost savings and operational efficiencies • Improved cash flow • Further structural changes in North America Full-year 2024 • Continued strategy execution and cost savings
Slide 3: Stable cash flow in Q4
Stable cash flow in Q4 • Challenging market conditions and restrained consumer SEK • Lower volumes and capacity spending utilization • Growth in handheld, wheeled, NET SALES • Higher promotional activities battery products and P&A OPERATING INCOME SEK 8,464m (8,605) • Delivering on cost savings ORGA
Slide 4: Husqvarna Forest & Garden Division
Husqvarna Forest & Garden Division Q4: Flat organic sales; operating margin at -5.2% • Growth for handheld, wheeled, battery products and P&A • Operating income impacted by lower capacity utilization, higher promotional activities and unfavourable mix • Partly offset by cost savings YTD 2024: Organi
Slide 5: Gardena Division
Gardena Division Q4: Organic sales declined 8%; operating margin at -30.7% • Growth in hand tools segment • Watering business decreased, following unfavourable weather in the season • Cautious retail partners • Negative volume and mix impacting profitability, partly offset by cost savings YTD 2024:
Slide 6: Husqvarna Construction Division
Husqvarna Construction Division Q4: Organic sales declined 9%; operating margin at 5.0% • Sales growth in Europe. Weak market and lower sales in North America • Good performance for power cutters, demolition robots and P&A • Lower volumes and capacity utilization impacting profitability, partly offs
Slide 7: Q4 2024 EBIT bridge (excl. IAC)
Q4 2024 EBIT bridge (excl. IAC) -526m -168 -694 (-1.9% margin) +300 (-8.2% margin) -694 (-8.2% margin) -705 +145 -75 -10 +125 Q4 2023 Price / volume / Cost savings Raw materials Transformational Currency Q4 2024 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 8: 2024 EBIT bridge (excl. IAC)
2024 EBIT bridge (excl. IAC) -1,775m -36% 4,970 (9.3% margin) -2,595 3,195 (6.6% margin) -145 -150 +375 +735 FY 2023 Price / volume / Cost savings Raw materials Transformational Currency FY 2024 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 9: Current savings programs on track, SEK 1.1bn realized
Current savings programs on track, SEK 1.1bn realized Expected savings: 2022 & 2023 programs Variable & fixed costs, production structure, SEK reduction of 1,300 positions 1,200m Realized 2023: 2024: savings: SEK 380m SEK 735m Expected savings: 2024 program SEK Fixed costs, >400 positions 500m Major
Slide 10: Entering strategic partnership with Flex
Entering strategic partnership with Flex • Priority to enhance competitiveness in the North American market • Divestment of manufacturing facility in Orangeburg to Flex • Long-term supply agreement to continue local wheeled manufacturing and assembly of hand-held products • 900 employees at the Oran
Slide 11: Consolidated balance sheet
Consolidated balance sheet SEKm Non-current assets Dec 31, 2024 31 942 Dec 31, 2023 30 592 • Solid financial position Inventories 13 828 17 184 Assets held for sale 1 410 - • Inventory reduction SEK 3.3bn (fx Trade receivables 5 552 5 289 adjusted) Other current assets 2 101 3 018 Cash and cash equi
Slide 12: Net debt / EBITDA (R12)
Net debt / EBITDA (R12) Net debt / EBITDA Note: average net debt / rolling 12 months EBITDA, excl. items affecting comparability
Slide 13: Inventory reduction of SEK 3.3bn (fx adjusted)
Inventory reduction of SEK 3.3bn (fx adjusted) -2.4bn Inventories, FX adj. -3.3bn SEK bn 19,3 18,7 17,9 17,1 17,2 17,1 14,7 14,7 13,5 SEK 0.9bn inventory held for sale Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024
Slide 14: Record direct operating cash flow
Record direct operating cash flow Trade receivables financing used in H1 2022 and H1 2023
Slide 15: Dividend proposal
Dividend proposal • Payout: 43% of reported EPS and 32% of adjusted EPS • Dividend policy >40% • Balanced view of current market conditions, financial position and focus on reducing net debt Board proposal for 2024 – SEK 1.00 (3.00) 15
Slide 16: Operational ambitions
Operational ambitions Electrified solutions Double number of Double sales of to reach 2/3 connected devices robotic mowers ~67% >6m ~12 Share of electrified 44% Million connected Robotic mower sales 4.9m products of total devices (SEK bn) 7.2 motorized products (value) 2015 2016 2017 2018 2019 2020
Slide 17: Husqvarna strengths anchored in professional & mid/high residential segments
Husqvarna strengths anchored in professional & mid/high residential segments Share of Husqvarna robotic sales Market position (SEK 7.2bn in 2024) • Golf, sports, private and public spaces etc. ~15% Professional • High service level, fleet software systems No. 1 segment • Expansion of professional de
Slide 18: Focus on our areas for value creation
Focus on our areas for value creation Battery- Watering Robotic Professional powered products mowers solutions products Entering a new strategic period Capital Markets Day in Q4 2025 18
Slide 19: Innovative product launches for 2025
Innovative product launches for 2025 Watering Robotic mowers GARDENA Automower NERA GARDENA AquaPrecise GARDENA AquaBloom BWF models Sileno Free BWF with systematic mowing Battery Professional solutions solutions New chainsaws and more Husqvarna battery Expansion of BWF Husqvarna Autogrinder: a new
Slide 20: Good progress on our Sustainovate 2025 targets
Good progress on our Sustainovate 2025 targets CARBON CIRCULAR PEOPLE Reduce absolute CO2 Launch 50 new Empower 5 million emissions by -35% circular innovations people to make sustainable choices Status 2024: Status 2024: Status 2024: -56% 37 3.9m
Slide 21: Strong cash flow for the year
Strong cash flow for the year Q4 Summary • Results in line with our market guidance • Growth for seasonal products • Delivery on cost savings and operational efficiencies • Improved cash flow • Further structural changes in North America Full-year 2024 • Continued strategy execution and cost savings
Slide 22: www.husqvarnagroup.com
Husqvarna Group www.husqvarnagroup.com