Husqvarna Ab Class A · OMXSTO:HUSQ_A
Husqvarna Ab Class A — Q4 2023 Earnings Presentation
19 slides from Husqvarna Ab Class A's earnings presentation, Feb 2, 2024
Slide 1: Q4 Results – February 2, 2024
Q4 Results – February 2, 2024 Pavel Hajman, CEO Terry Burke, CFO
Slide 2: Improved operating margin and strong cash flow for the year
Improved operating margin and strong cash flow for the year Q4 Summary • Continued challenging market conditions • Delivery on cost savings and operational efficiencies • Negative currency effect • Improved cash flow Full-year 2023 • Higher operating margin, Group and in all divisions • Strong cash
Slide 3: Q4 – good cash flow and delivering on cost savings
Q4 – good cash flow and delivering on cost savings • Good growth in pro robotics & battery-powered products as SEK well as for watering in Europe • Lower volumes • Decline for petrol-powered • Delivering on cost savings NET SALES wheeled products, lower OPERATING INCOME • Lower logistics costs SEK 8
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 Q4: Organic sales declined 21%; operating margin at * -0.1% • Strong growth for pro robotics & battery-powered products • Reduced demand and exits in -7 wheeled products • Lower residential robotics volumes vs. 2022 – but higher than past years • Operating margin i
Slide 6: Gardena Division
Gardena Division Q4: Organic sales declined 4%; operating margin * -19.9% • Sales increased for Watering in Europe • Orbit margin accretive in the quarter despite lower sales • Positive effects from cost savings and lower logistics costs * • Improved operating income despite SEK -145m in currency im
Slide 7: Husqvarna Construction Division
Husqvarna Construction Division Q4: Organic sales declined 6%; operating * margin at 9.1% • Good growth in emerging markets, decline in Europe and North America • Strong margin improvement, driven by mix and effects from lower logistics costs and savings * • Acquisition of Total Diamond Products in
Slide 8: Q4 2023 EBIT bridge (excl. IAC)
Q4 2023 EBIT bridge (excl. IAC) -155m -13 (-0.1% margin) +300 -55 +165 -168 -105 (-1.9% margin) -270 +110 Q4 2022 Price / volume / Cost savings Raw materials Transformational Currency Q4 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 9: YTD 2023 EBIT bridge (excl. IAC)
YTD 2023 EBIT bridge (excl. IAC) +117m +2% -275 4,970 +580 (9.3% margin) -35 4,853 (9.0% margin) -530 +380 YTD 2022 Price / volume / Cost savings Raw materials Transformational Currency YTD 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 10: Consolidated balance sheet
Consolidated balance sheet SEKm Dec 31, 2023 Dec 31, 2022 Dec 31, 2022 Non-current assets 30 592 30 849 30 849 • Solid financial position Inventories 17 184 19 334 19 334 Trade receivables 5 289 6 267 6 267 • Net debt reduction Other current assets 3 018 2 858 2 858 • Lower inventory levels Cash and
Slide 11: Net debt / EBITDA
Net debt / EBITDA Average net debt / rolling 12 months EBITDA, excl. items affecting comparability
Slide 12: Record high cash flow
Record high cash flow Direct operating cash flow
Slide 13: Dividend proposal
Dividend proposal • Strong cash flow generation • Strengthened positions in value- creating areas • Continued strategy execution Board proposal for 2023 – SEK 3.00 (3.00) 13
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: Innovative product portfolio for 2024
Innovative product portfolio for 2024 Watering Robotic mowers Additional wire-free GARDENA battery-powered HSC – High Station Husqvarna Automower for Automower NERA models Hose Box Water Count Controller smaller commercial lawns for smaller gardens Battery Professional solutions solutions First full
Slide 16: Executing on our strategy – operational ambitions
Executing on our strategy – operational ambitions Double sales of Electrified solutions Double number of robotic mowers to reach 2/3 connected devices ~12 ~67% >6m Robotic mower sales 8.1 Share of electrified 42% Million connected 4.5m (SEK bn) products of total devices motorized products (value) 20
Slide 17: 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 2023: Status 2023: Status 2023: -44% 27 1.9m
Slide 18: Improved operating margin and strong cash flow for the year
Improved operating margin and strong cash flow for the year Q4 Summary • Continued challenging market conditions • Delivery on cost savings and operational efficiencies • Negative currency effect • Improved cash flow Full-year 2023 • Higher operating margin, Group and in all divisions • Strong cash
Slide 19: www.husqvarnagroup.com
Husqvarna Group www.husqvarnagroup.com