Husqvarna Ab Class A · OMXSTO:HUSQ_A
Husqvarna Ab Class A — Q3 2023 Earnings Presentation
19 slides from Husqvarna Ab Class A's earnings presentation, Oct 20, 2023
Slide 1: Q3 Results – October 20, 2023
Q3 Results – October 20, 2023 Pavel Hajman, CEO Terry Burke, CFO
Slide 2: Strategy execution in challenging market conditions
Strategy execution in challenging market conditions • Challenging market conditions impacting our forest & garden segments • Improved operating result in Construction • Direct operating cash flow increased by SEK 1.5bn • Further cost reductions. Reduced manufacturing for the remainder of the year •
Slide 3: Q3 – solid cash flow in the quarter
Q3 – solid cash flow in the quarter • Good growth for battery- SEK powered products • Lower volumes • Significant decrease for • Price increase carry-over NET SALES petrol-powered wheeled OPERATING INCOME • Lower raw material and SEK 10,512m (12,206) products, lower demand and logistics costs exits
Slide 4: Building a stronger Husqvarna Group
Building a stronger Husqvarna Group *Operating income excluding items affecting comparability
Slide 5: Husqvarna Forest & Garden Division
Husqvarna Forest & Garden Division Q3: Organic sales declined 21%; operating margin * 4.8% • Strong growth for battery- powered products • Significant decline in wheeled products – exits and lower demand • Lower robotics volumes vs. 2022 – but higher than past * years average • Operating margin impa
Slide 6: Gardena Division
Gardena Division Q3: Organic sales declined * 8%; operating margin -1.8% • Sales decreased - lower demand • Orbit improved operating margin, however sales growth below division average • Positive effects from cost savings and price increases • Flat operating income. * SEK -35m in currency impact 9M:
Slide 7: Husqvarna Construction Division
Husqvarna Construction Division Q3: Organic sales declined 1%; operating * margin 10.9% • Good growth in North America and Emerging markets • Decline in Europe • Positive effects from price increases and cost savings * 9M: Organic sales declined 2%; operating margin 12.8% Note: Operating income excl
Slide 8: Q3 2023 EBIT bridge (excl. IAC)
Q3 2023 EBIT bridge (excl. IAC) -186m -31% 601 (4.9% margin) 415 -585 (3.9% margin) -55 +60 +305 +90 Q3 2022 Price / volume / Cost savings Raw materials Transformational Currency Q3 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 9: 9M 2023 EBIT bridge (excl. IAC)
9M 2023 EBIT bridge (excl. IAC) +272m +6% 5,138 -220 (11.5% margin) +415 +70 4,866 (11.1% margin) -260 +270 9M 2022 Price / volume / Cost savings Raw materials Transformational Currency 9M 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 10: Additional cost savings
Additional cost savings Placeholder photo • Expanding our cost saving initiatives by additionally SEK 400m, impacting approximately 300 positions • Combined with our existing programs, total targeted savings are now SEK 1.2bn with full effect in 2025 10
Slide 11: Consolidated balance sheet
Consolidated balance sheet SEKm Sept 30, 2023 Sept 30, 2022 Dec 31, 2022 Non-current assets 31 266 30 837 30 849 • Solid financial position Inventories 17 090 17 612 19 334 • Net debt reduction since year-end Trade receivables 6 562 6 896 6 267 Other current assets 2 474 2 658 2 858 • Lower inventor
Slide 12: Net debt / EBITDA
Net debt / EBITDA Average net debt / rolling 12 months EBITDA, excl. items affecting comparability
Slide 13: Strong cash flow generation
Strong cash flow generation Direct operating cash flow
Slide 14: Investing in our value creation areas
Investing in our value creation areas Battery- Watering Robotic Professional powered products mowers solutions products 14
Slide 15: Executing on our strategy
Executing on our strategy Double sales of Electrified solutions Double number of robotic mowers to reach 2/3 connected devices ~12 ~67% >6m Robotic mower sales ~8 45 Share of electrified ~41% 5,0 Million connected 4.4m (SEK bn) 40 products of total 4,5 devices motorized products 4,0 35 (value) 3,5 3
Slide 16: Strategic highlights
Strategic highlights High demand and delivery of Breakthrough Husqvarna battery deal in Automower BeNeLux NERA Growing range Strong of heavy-duty demand in machines on MicroDrip the Husqvarna systems PACE battery system 16
Slide 17: Progress on our Sustainovate 2025 targets
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 Q3 2023: Status Q3 2023: Status Q3 2023: -40% 22 1.7m
Slide 18: Strategy execution in challenging market conditions
Strategy execution in challenging market conditions • Challenging market conditions impacting our forest & garden segments • Improved operating result in Construction • Direct operating cash flow increased by SEK 1.5bn • Further cost reductions. Reduced manufacturing for the remainder of the year •
Slide 19: www.husqvarnagroup.com
Husqvarna Group www.husqvarnagroup.com