HUS ANNUALHUSQVARNA REPORT HUS 2008 Contents 2008 Highlights of the year 1 Parent Company Report by the President 2 Income statement 42 QVARNA QVARNA Strategy 4 Balance sheet 43 Strong brands 6 Cash flow statement 44 Powerful global distribution network 7 Change in equity 45 Broad product offering 8 Definitions 46 Efficient supply chain 12 Notes 46–83 Financial goals 13 Proposed Distribution of Earnings 84 Business areas 14–25 Auditor’s Report 85 Annual Report 2008 Consumer Products 14 Five-year review 86 AN AN Professional Products 20 Quarterly data 88 Report by the Board of Directors 26–37 Corporate Governance Report 2008 90 Risk management 34 Board of Directors and Auditors 100 Financial Statements 38–45 Group Management 102 Group Sustainable development 104 Income statement 38 The Husqvarna share 110 Balance sheet 39 Annual General Meeting 2009 112 Cash flow statement 40 History 113 NUAL NUAL Statement of shareholders´ equity 41 REP REP Financial information 2009 Contacts 23 April Annual General Meeting Åsa Stenqvist 8 May Interim report January–March Head of Group Staff Communications and 17 July Interim report January–June Investor Relations 23 October Interim report January–September [email protected], +46 8 738 64 94 The Annual Report is distributed to all new Tobias Norrby ORT ORT shareholders for the year and to those who have Investor Relations Manager explicitly requested one. The Annual Report [email protected], +46 8 738 83 35 and other financial reports are also available at www.husqvarna.com/ir. Printed copies can be Press Hotline ordered from the web site. [email protected], +46 8 738 70 80 Head office Husqvarna AB (publ) • Mailing address: Box 30224, SE-104 25 Stockholm Visiting address: Lindhagensgatan 126 • Telephone: +46 36 14 65 00 • www.husqvarna.com Registered office Husqvarna AB (publ) Jönköping • Mailing address: SE-561 82 Huskvarna Visiting address: Drottninggatan 2 • Telephone: +46 36 14 65 00 • Telefax: +46 36 14 68 10 8 200 2008 HUS ANNUALHUSQVARNA REPORT HUS 2008 Contents 2008 Highlights of the year 1 Parent Company Report by the President 2 Income statement 42 QVARNA QVARNA Strategy 4 Balance sheet 43 Strong brands 6 Cash flow statement 44 Powerful global distribution network 7 Change in equity 45 Broad product offering 8 Definitions 46 Efficient supply chain 12 Notes 46–83 Financial goals 13 Proposed Distribution of Earnings 84 Business areas 14–25 Auditor’s Report 85 Annual Report 2008 Consumer Products 14 Five-year review 86 AN AN Professional Products 20 Quarterly data 88 Report by the Board of Directors 26–37 Corporate Governance Report 2008 90 Risk management 34 Board of Directors and Auditors 100 Financial Statements 38–45 Group Management 102 Group Sustainable development 104 Income statement 38 The Husqvarna share 110 Balance sheet 39 Annual General Meeting 2009 112 Cash flow statement 40 History 113 NUAL NUAL Statement of shareholders´ equity 41 REP REP Financial information 2009 Contacts 23 April Annual General Meeting Åsa Stenqvist 8 May Interim report January–March Head of Group Staff Communications and 17 July Interim report January–June Investor Relations 23 October Interim report January–September [email protected], +46 8 738 64 94 The Annual Report is distributed to all new Tobias Norrby ORT ORT shareholders for the year and to those who have Investor Relations Manager explicitly requested one. The Annual Report [email protected], +46 8 738 83 35 and other financial reports are also available at www.husqvarna.com/ir. Printed copies can be Press Hotline ordered from the web site. [email protected], +46 8 738 70 80 Head office Husqvarna AB (publ) • Mailing address: Box 30224, SE-104 25 Stockholm Visiting address: Lindhagensgatan 126 • Telephone: +46 36 14 65 00 • www.husqvarna.com Registered office Husqvarna AB (publ) Jönköping • Mailing address: SE-561 82 Huskvarna Visiting address: Drottninggatan 2 • Telephone: +46 36 14 65 00 • Telefax: +46 36 14 68 10 8 200 2008 husqvarna in brief Husqvarna Europe historY 10 6 IN BRIEF North America 300 Years 9 4 of INNOVATION Husqvarna IS the WorlD’S larGest ManuFACturer OF laWN MOWers anD ChaInsaWS as Well as hanDhelD, petrol-POWERED GarDen proD- Net sales 2008, SEKbn Rest of the World UCts suCH as trIMMers anD BloWers. the Group IS also the GloBal Consumer Products 1 2 leaDer IN CuttING equIPMent anD DIAMonD tools For the ConstruC- Professional Products TIon anD stone INDustrIes. The modern logotype reflects the past, but also signals that Husqvarna still aims for the future. The proDUCT ranGE INCluDes proDUCts For Both ConsuMers anD Production facilities proFessIonal users. The Group’S proDUCts are solD IN More than 100 Subsidiaries or distributors CountrIes WorlD WIDE. Husqvarna’s products are sold net sales IN 2008 AMounteD to SEK 32.3 BILLION anD the averaGE through 25,000 dealers world wide. Through the acquisition of Gardena the product range was nuMBer OF EMploYees Was approXIMatelY 15,700. 2007 extended to include equipment and garden tools. Consumer products product offering marKet position brands Husqvarna once again becomes an independent 2006 stock listed company. Lawn mowers, garden tractors, trimmers, chain- World’s largest producer of lawn mowers and 29%* saws, leaf blowers, hedge trimmers and snow chain saws, as well as handheld petrol-powered gar- Launch of Automower® the world’s first solar powered robotic AMERICA throwers. den equipment such as trimmers and leaf blowers. 1995 lawn mower. One of the two largest in garden tractors. Gardena is the market leader in Europe for irrigation prod- NORTH ucts and garden tools. 1986 Production start for the first riding lawn mower developed in-house. Lawn mowers, garden tractors, trimmers, chain- THE saws, leaf blowers, hedge trimmers and snow 32%* throwers. Products for irrigation and ponds as well OF Electrolux acquires Husqvarna, start of the expansion within as garden tools. 1978 WORLD outdoor products. REST Husqvarna starts production of chainsaws and engine-driven 1959 lawn mowers. professional products Product range is extended to include motor bikes, Premium chainsaws, clearing saws and accessories Husqvarna and Jonsered are two of the top three 1903 17%* which were manufactured until 1987. such as chains, blades, protective clothing and leading brands for professional chainsaws in the tools. global market, with a combined market share of approximately 40%. FORESTRY 1896 Production of bicycles starts, continues until 1962. 12%* Riders and walk-behind lawn mowers, zero-turn One of the world’s largest manufacturer of hand- Husqvarna starts production of sewing machines and mowers, specialty turf-care equipment, trimmers, held products. 1872 kitchen equipment in cast-iron. AND hedge trimmers and leaf blowers. GARDEN LAWN Husqvarna is founded as a weapons foundry for 1689 the Swedish armed forces. 10%* Floor saws, wall and wire saws, tile and masonry World leader in diamond tools and cutting equip- saws, drill motors, machines for surface prepar- ment for the construction and stone industries. ation, power cutters and diamond tools, diamond The oldest version of Husqvarna’s logotype symbolizes the tools for the stone industry. 1689sight and the barrel on the musket. CONSTRUCTION * The graphs show share of total Group sales. husqvarna in brief Husqvarna Europe historY 10 6 IN BRIEF North America 300 Years 9 4 of INNOVATION Husqvarna IS the WorlD’S larGest ManuFACturer OF laWN MOWers anD ChaInsaWS as Well as hanDhelD, petrol-POWERED GarDen proD- Net sales 2008, SEKbn Rest of the World UCts suCH as trIMMers anD BloWers. the Group IS also the GloBal Consumer Products 1 2 leaDer IN CuttING equIPMent anD DIAMonD tools For the ConstruC- Professional Products TIon anD stone INDustrIes. The modern logotype reflects the past, but also signals that Husqvarna still aims for the future. The proDUCT ranGE INCluDes proDUCts For Both ConsuMers anD Production facilities proFessIonal users. The Group’S proDUCts are solD IN More than 100 Subsidiaries or distributors CountrIes WorlD WIDE. Husqvarna’s products are sold net sales IN 2008 AMounteD to SEK 32.3 BILLION anD the averaGE through 25,000 dealers world wide. Through the acquisition of Gardena the product range was nuMBer OF EMploYees Was approXIMatelY 15,700. 2007 extended to include equipment and garden tools. Consumer products product offering marKet position brands Husqvarna once again becomes an independent 2006 stock listed company. Lawn mowers, garden tractors, trimmers, chain- World’s largest producer of lawn mowers and 29%* saws, leaf blowers, hedge trimmers and snow chain saws, as well as handheld petrol-powered gar- Launch of Automower® the world’s first solar powered robotic AMERICA throwers. den equipment such as trimmers and leaf blowers. 1995 lawn mower. One of the two largest in garden tractors. Gardena is the market leader in Europe for irrigation prod- NORTH ucts and garden tools. 1986 Production start for the first riding lawn mower developed in-house. Lawn mowers, garden tractors, trimmers, chain- THE saws, leaf blowers, hedge trimmers and snow 32%* throwers. Products for irrigation and ponds as well OF Electrolux acquires Husqvarna, start of the expansion within as garden tools. 1978 WORLD outdoor products. REST Husqvarna starts production of chainsaws and engine-driven 1959 lawn mowers. professional products Product range is extended to include motor bikes, Premium chainsaws, clearing saws and accessories Husqvarna and Jonsered are two of the top three 1903 17%* which were manufactured until 1987. such as chains, blades, protective clothing and leading brands for professional chainsaws in the tools. global market, with a combined market share of approximately 40%. FORESTRY 1896 Production of bicycles starts, continues until 1962. 12%* Riders and walk-behind lawn mowers, zero-turn One of the world’s largest manufacturer of hand- Husqvarna starts production of sewing machines and mowers, specialty turf-care equipment, trimmers, held products.