Interim report January - June 2013

Kai Wärn, President and CEO:
“Group sales improved over the course of the quarter, albeit from a slow start of the season due to unusually cold weather in both Europe and North America. Sales for Europe & Asia/Pacific increased 2%, Construction 7% while Americas’ sales decreased -3%, mainly as a result of the Group’s continued sales channel management to prioritize margin.
    Group operating income for the quarter declined, impacted mainly by negative currency effects within Europe & Asia/Pacific. The operating income was also affected by under-absorption due to inventory reductions. The stable earnings improvement for Americas continued, benefiting from dealer channel growth and improved cost efficiency. The positive earnings trend for Construction was supported by higher sales volumes and improved mix. As a result of the inventory reductions, Group operating cash flow for the second quarter was strong.
    We have a continued cautious demand outlook for Europe, while the outlook for North America remains more positive for lawn and garden as well as for construction products.
    During the second half of the year we will review how we can further accelerate key improvement programs in order to realize our financial goals.”

Second quarter

• Net sales amounted to SEK 10,227m (10,706). Adjusted for exchange rate effects, net sales were unchanged.
• Operating income amounted to SEK 1,022m (1,152). Adjusted for changes in exchange rates, operating income improved slightly.
• Changes in exchange rates negatively impacted operating income by SEK -156m year over year.
• Strong operating cash flow amounting to SEK 1,915m (2,535).
• Earnings per share decreased to SEK 1.15 (1.36).
• Kai Wärn new President and CEO as of July 1, 2013.

Telephone conference
A telephone conference, hosted by Kai Wärn, President and CEO, and Ulf Liljedahl, CFO, will be held at 10:00 CET on July 19, 2013. To participate, please dial +46 (0) 8 5052 0110 (Sweden) or +44 (0)20 7162 0077 (UK) ten minutes prior to the start of the conference. The conference call will also be audio cast live on www.husqvarnagroup.com/ir. A replay will be available at www.husqvarnagroup.com/ir later the same day.

Contacts
Ulf Liljedahl, CFO, +46 8 738 94 42
Tobias Norrby, Investor Relations Manager, +46 8 738 93 35

This interim report comprises information which Husqvarna is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08:00 CET on July 19, 2013.

Husqvarna Group
Husqvarna Group is the world’s largest producer of outdoor power products including robotic lawn mowers, garden tractors, chainsaws and trimmers. The Group is also the European leader in consumer watering products and one of the world leaders in cutting equipment and diamond tools for the construction and stone industries. The Group’s products and solutions are sold via dealers and retailers to both consumers and professional users in more than 100 countries. Net sales in 2012 amounted to SEK 31 billion, and the Group had 15,400 employees on average in more than 40 countries.