HUSQVARNA GROUP. Hans Linnarson CEO & President

Transcription

1 HUSQVARNA GROUP Hans Linnarson CEO & President

2 Husqvarna Group at a glance 2012 Financial data Sales by business area Sales: SEK 30.8bn (30.4) EBIT: SEK 1.9bn (1.6) Equity/assets: 0.42 No. of employees: ~15,000 % Construction 10% 50% Europe & Asia Pacific 40% Americas Major production facilities EBIT by business area North America 4 Latin America 12 Europe 5 RoW SEK mn 1, Europe & Asia Pacific -133 America s Constructio n Excluding items affecting comparability 2

3 Reflections on recent financial performance EBIT by quarter SEK bn Weaker 2012 driven by combination of weaker macro and weather conditions Cost improvement efforts underway 0.7 In coming year focus shifts even further towards activities that ensure sustained profitability Q1 Q2 Q3 Q4 Excluding items affecting comparability 3

4 Financial targets Operating margin of more than 10% over a business cycle Seasonally adjusted Net Debt / EBITDA < 2.5 Dividend should normally exceed 40% of income for the year 4

5 Strong starting point Strong global brands Efficient global distribution network Competitive product offering Flexible supply chain 5

6 Reflections Last three years from a strategic perspective Several efforts completed to improve footprint and structure North America on the right track Operating cash flow restored Leading in innovative product launches 6

7 Reflections Last three years from a strategic perspective Several efforts completed to improve footprint and structure North America on the right track Operating cash flow restored Leading in innovative product launches 20% reduction of factories 40% reduction of warehouses 25% reduction of suppliers 65% increased share LCC sourcing 7

8 Reflections Last three years from a strategic perspective Several efforts completed to improve footprint and structure North America on the right track Operating cash flow restored Leading in innovative product launches Orangeburg issues resolved Successful profiling towards US dealers Road map for margin improvement outlined and initiated 8

9 Reflections Last three years from a strategic perspective Several efforts completed to improve footprint and structure SEK bn 3.7 North America on the right track Operating cash flow restored Leading in innovative product launches

10 Reflections Last three years from a strategic perspective Several efforts completed to improve footprint and structure North America on the right track Operating cash flow restored Leading in innovative product launches 10

11 Context for strategy going forward More conservative mid-term market outlook, especially in Europe Sustaining/improving margin levels will require significant cost and quality focus Further meaningful opportunity to reduce complexity Short term focus on securing the foundation for profitable growth On-going restructuring efforts will be complemented by targeted performance improvement initiatives 11

12 Our strategic priorities Secure the foundation 2013 Safeguard high quality and reliability Reduce product cost and product range complexity Optimise footprint and increase flexibility Drive channel management in US and EU F&G Act for long-term success Continue product cost and complexity reduction Secure strong technology and product platforms in priority segments (incl. M&A) Accelerate emerging markets growth Grow online channel Leverage clear leadership position Our strategic pillars Strong global brands Efficient global distribution network Competitive product offering Flexible supply chain 12

13 3-year strategic ambition Wave 1 priorities Ensure sustainable improvement of gross margin 20% reduction of platforms Reduction of product cost Further consolidate footprint Reduction of lead times Achieve >5% EBIT in Americas Further improve EU retail profitability 13

14 SEK 1 bn investment in core technologies Plan to invest SEK ~1 bn over coming 3 years in saw chain and cylinder manufacturing Confirms long-term commitment to be a global leader of handheld forestry products Saw chains and cylinders critical for chainsaw performance Saw chains key in aftermarket offering 14

15 to ensure continued product leadership by gaining full control of innovation Chain saw manufacturing incl. engine technology is core Limited cylinder supplier base Exposure to a concentrated saw chain supplier market Continued leadership in chain saws requires full control of innovation in and also manufacturing of the cutting equipment Investment in own manufacturing of saw chain and cylinder necessary 15

16 and also creating substantial aftermarket opportunity Replacement chain is key for the accessory business High profitability and good growth potential Market currently dominated by two suppliers 16

17 Organization to support execution of strategy President & CEO Hans Linnarson Finance, IT & IR Ulf Liljedahl Legal Affairs Olle Wallén People & Organisation and Communication Per Ericson Quality Francesco Franzé * Brand Management & Global Marketing Sofia Axelsson * Manufacturing & Logistics Sascha Menges EMEA Asia/Pacific Americas Construction Frida Norrbom Sams Nicolas Lanus Earl Bennett (acting) Anders Ströby Global Purchasing Martin Austermann Product Management & Development Henric Andersson * Not part of Group Management 17

18 Redefined product segments to drive innovation and sales Wheeled Creating a new Electrical products category Electric Handheld Watering & Hand tools Accessories Creating a Wheeled products category by merging former Rideon and Walk-behind categories Moving Hand tools from Accessories category into the Watering category 18

19 Summary Group Strong starting point but challenging market conditions Prioritise margin before growth Execution-orient ed strategy focus on securing the foundation 19

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