powerpoint presentation · launch of growth initiatives 2016 ... among others, sales, product...
TRANSCRIPT
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AGM 2017Kai Wärn, President & CEO
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Shaping great experiences
We make a difference to those who
shape green spaces and urban
environments through our leadership in
sustainable, user-centered solutions.
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2016 in brief, the Group
Figures refer to excluding items affecting comparability
Operating income increased 8% to
SEK 3,218m (2,980)
Operating margin increased to8.9% (8.2)
Consumer Brands reached break-
even
The three divisions in profitable growth
mode grew 3%
The Board proposes an increase of the
dividend to SEK 1.95 (1.65) per share
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We have demonstrated ability
to improve earnings
4Figures refer to excluding items affecting comparability
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Operating incomerolling 12 months
Operating marginrolling 12 months
SEKm
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At the same time, we have created headroom
for profitable growth investments!
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2015Operating
income
FXimpact
Costs for Profitable Growth
initiatives
Further efficiency measures
Volume and mix impact,
other
2016Operating
income
• Continued direct and indirect material cost-out
• Logistics and rightsizing of “footprint”
• Working capital improvements
Further
efficiency
measures
2016-17
3,218SEKm
2,980SEKm
Schematic bridge
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The journey to market leadership by 2020
New organization
and divisional strategy
Strategy 2020
established
Improvementprogram
AIP
2013 2014 2015 2017
Execution of growth
strategies
Launch of growth
initiatives
2016
1 Market share growth and profitable growth
2 A winning Consumer Brands
3 Leadership also in battery-powered products
Three prioritized initiatives
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New financial targetsAverage over the coming years from 2017
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Growth* CAGR Net Sales 3 – 5%
Capital efficiencyNet Operating Working
Capital / Net Sales ≤ 25%
Margin EBIT Margin ≥ 10%Profitable
growth
* Excluding Consumer Brands Division
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Priorities 20172016 in brief
• Sales increased by 2%
• Higher operating income, despite negative currency effects
• Strategic investments in, among others, sales, product development as well as accessories and spare parts
• Strong development in robotic lawn mowers, battery-powered products
• Profitable growth!
• Priority areas
‒ Robotic mowers
‒ Battery products
‒ Commercial lawn & garden and forestry
‒ Accessories and spare parts
‒ Business development support for dealers
Husqvarna Division
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Commercial lawn &garden
X-Cut saw chain
Innovation key to success
Rider Collection Battery-powered products
Pro chainsaws Connected services Robotic mowers
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Gardena Division
Priorities 20172016 in brief
• Sales increased by 8%
• Stable result but lower margin due to currency effects and costs for growth initiatives
• Many new product launches, such as Smart Garden, Fruit Collector and secateurs
• Profitable growth!
• Continued product launches
‒ City Gardening
‒ Further development of the Smart Garden concept
‒ Battery-powered mowers
• Continued geographical expansion, e.g. UK
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Our passion for the garden
strengthens the brand
Smart GardenNew generation of
mobile wateringCity GardeningFruit Collector
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Consumer Brands Division
Priorities 20172016 in brief
• Turned to break-even, despite decline in volume and unfavorable currency effects
• Extensive customer management and efficiency work behind the profit improvement
• New, automated warehouse at the Group's largest plant in Orangeburg, United States
• Continued margin improvement
‒ Mainly driven by cost reductions
‒ But also through gradual growth investments
• Introduction of robotic lawn mowers and battery-powered products
• Preparing for an increasing number of product introductions in 2018
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Products that make life easier for consumers
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Construction Division
Priorities 20172016 in brief
• Sales increased by 4%
• The positive sales development primarily driven by North America
• Operating margin rose to 13.9% (11.8)
• Launch of an innovative wall saw and a global product line of diamond tools
• Profitable growth!
• Supplementary services
‒ Husqvarna UpCare
• Focus on solutions for grinding and polishing of concrete floor surfaces
14Figures refer to excluding items affecting comparability
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Building market leadership in solutions for
polished concrete floors
Leading manufacturer of
diamond tools for polishing and
grinding of concrete, stone and
terrazzo
Market leader in solutions for
dust and slurry management
World leader in floor grinding
DTSNet sales SEK ~50m
Pullman ErmatorNet sales SEK ~300m
HTCNet sales SEK ~380m
15HTC acquisition expected to be finalized by mid-year
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Sustainability no longer optional
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Husqvarna takes responsibility for
sustainable development
• First Swedish listed company and
the world's first forest and garden
company that has been approved
• Independent initiative of the World
Wildlife Fund, the United Nations
Global Compact, the CDP and the
World Resources Institute
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Sustainovate
Our Carbon
challenge
Decouple our
business growth from
carbon emissions
- 33%Decrease absolute
emissions with 33%
by 2035- 10%
Decrease emissions
intensity with 10%
by 2020
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Market leadership in 2020
…then expansion andprofitable growth
Profitability and focus first…
Number 1 or 2; Leading innovation; Profitable growth
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www.husqvarnagroup.com
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