AMERICAS. Earl Bennett Head of Americas (acting)

Transcription

1 AMERICAS Earl Bennett Head of Americas (acting)

2 Americas at a glance Sales by region Sales by channel Sales: SEK 12.5 bn Latin America North America Dealer Retail Husqvarna Group highlights: Full-line wheeled and petrol handheld product lines Strong market shares Margin improvement efforts Product and logistic cost needs further attention Investments to grow in Latin America 2

3 Housing starts enabler of market growth Housing starts Millions US petrol shipments Million units Existing home sales Millions F Source: OPEI F 3

4 Strong market positions Market share in selected product categories Percent; US market Chainsaws 4 Tractors 34 Walk-behind mower 34 Other handheld 27 Source OPEI Petrol Shipment Report December

5 Diversification to high margin channels Total equipment volumes Trend Independent Dealers Husqvarna Group equipment volumes All Others 5

6 Small but growing emerging markets Market growth; CAGR; Percent 8 Mature markets Emerging markets 6 Latin America 4 2 Canada USA Market size SEK billion 6

7 Consolidated market MTD And other private label brands 7

8 Americas brand portfolio Dealer Mass retail CORE TACTICAL 8

9 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 9

10 Margin improvement levers Region/channel mix Refocus portfolio of mass partnerships Increase share of dealers/distributors Price increases Outperform market pricing Leverage key relationships Leverage innovation Focus on high margin products Product cost and complexity Brand and product complexity reduction Product and conversion cost reduction Reduce cost-to-serve Optimise warehousing 10

11 Distinct channel strategies for retail and dealer Dealer Retail Margin improvement from mix, pricing, cost reductions and new products Leverage dealer profiling investment Continue new dealer growth Continue to invest in operational improvements Leverage new product offerings Continue to invest in Husqvarna brand Drive mix through innovation, features and marketing Execute defined cost-out programs to reduce cost-to-serve and COGS Continue customer diversification Improve pricing practices 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 Accelerate emerging markets growth Strong platform for growth in Latin America Husqvarna Group s position primarily dealer and distributors Latin American sales up 20% from 2009 to 2012 Handheld accounts for majority of market Priority to expand distribution and tailor product assortment to local market Brazil 70% of Latin American market, with 20% market share Factory strategic role 13

14 Summary Americas Several efforts to turn around negative trend, e.g., supply back on track Further margin improvement will be driven by: Mix: Cost: Product cost and cost to serve Grow dealer sales and rebalance retail sales Price realisation 14

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