Slide 1: Q2 Results – July 18, 2023
Q2 Results – July 18, 2023 Pavel Hajman, CEO Terry Burke, CFO
Slide 2: Good performance in Q2
Good performance in Q2 • Strong growth for robotic mowers and battery- powered products. Watering returned to growth during the quarter • EBIT* increased by 11% - all three divisions strengthened their operating margin • Strong cash flow - driven by operating income, inventories and trade receivable
Slide 3: Strong growth for robotic mowers
Strong growth for robotic mowers • Strong growth for robotic • Price increase carry-over. SEK mowers and battery-powered Favorable product mix products • Lower raw material and NET SALES • Gardena returned to growth in logistics costs OPERATING INCOME SEK 16,976m (15,792) the latter part of the quar
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 Q2: organic sales growth 3%; operating margin * 13.0% • Strong growth for robotic mowers and battery- powered products • Successful product launches including NERA, MAX and ASPIRE • Higher operating margin – price, mix & lower raw * materials and logistics costs •
Slide 6: Gardena Division
Gardena Division Q2: organic sales declined * 2%; operating margin 17.0% • Watering returned to growth in the quarter • Good performance in Orbit Irrigation • Higher margin driven by price increases and lower costs for raw materials and logistics • Currency effect of * SEK -115m on operating income
Slide 7: Husqvarna Construction Division
Husqvarna Construction Division Q2: organic sales declined 5%; operating * margin 14.1% • Good growth in North America • Strong performance for Concrete Surface & Floors segment • Price increases and cost efficiency • Positive currency effect of * SEK 60m on operating income H1: organic sales declin
Slide 8: Q2 2023 EBIT bridge (excl. IAC)
Q2 2023 EBIT bridge (excl. IAC) +238m +11% 2,313 -90 -30 (13.6% margin) +225 2,075 +100 (13.1% margin) +35 Q2 2022 Price / volume / Cost savings Raw materials Transformational Currency Q2 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 9: H1 2023 EBIT bridge (excl. IAC)
H1 2023 EBIT bridge (excl. IAC) +458m +11% 4,723 +110 -165 +10 (13.8% margin) +175 +330 4,265 (13.5% margin) H1 2022 Price / volume / Cost savings Raw materials Transformational Currency H1 2023 mix / other & logistics initiatives Note: Numbers are rounded to nearest 5 or 0.
Slide 10: Consolidated balance sheet
Consolidated balance sheet • Solid financial position SEKm June 30, 2023 June 30, 2022 Dec 31, 2022 • Net debt reduction since year end Non-current assets 32 338 29 776 30 849 Inventories 17 949 16 455 19 334 • Lower inventory levels since year end Trade receivables 9 373 8 204 6 267 Other current a
Slide 11: Net debt / EBITDA
Net debt / EBITDA Average net debt / rolling 12 months EBITDA, excl. items affecting comparability
Slide 12: Strong cash flow generation
Strong cash flow generation Direct operating cash flow
Slide 13: Product highlights
Product highlights High demand on updated New Battery GARDENA chainsaw for Micro-Drip- System PRO Husqvarna Husqvarna NERA Construction - launched The complete partner in Rewilding surface mode preparation available 13
Slide 14: Investing in our sustainable value creation levers
Investing in our sustainable value creation levers Battery- Watering Robotic Professional powered products mowers solutions products 14
Slide 15: Increasing operational efficiencies, Husqvarna Forest & Garden Division
Increasing operational efficiencies, Husqvarna Forest & Garden Division Placeholder photo • Acceleration program progressing as planned • Optimizing our manufacturing footprint to reflect the petrol-to-battery shift • Exiting 2 bn SEK of low-margin petrol-powered consumer business (primarily wheeled
Slide 16: Sustainovate 2025 targets – good progress
Sustainovate 2025 targets – good progress CARBON CIRCULAR PEOPLE Reduce absolute CO2 Launch 50 new Empower 5 million emissions by -35% circular innovations people to make sustainable choices Status Q2 2023: Status Q2 2023: Status Q2 2023: -38% 20 1,4m
Slide 17: Good performance in Q2
Good performance in Q2 • Strong growth for robotic mowers and battery- powered products. Watering returned to growth during the quarter • EBIT* increased by 11% - all three divisions strengthened their operating margin • Strong cash flow - driven by operating income, inventories and trade receivable
Slide 18: www.husqvarnagroup.com
Husqvarna Group www.husqvarnagroup.com