YEAR-END REPORT 2014

Kai Wärn, President and CEO:
“I am pleased to conclude that the fourth quarter continued the strong trend of improvements that we have seen throughout the year. Sales, which are seasonally low in the fourth quarter, were up 6 percent adjusted for exchange rate effects, with the largest increases for Americas and Construction. The seasonally generated operating loss was reduced from SEK -308m to -230m, despite a negative currency impact of SEK -81m, and excluding items affecting comparability. The improvement came from Americas where the loss was cut from SEK -146m to SEK -43m, mainly due to continued material cost reductions and productivity improvements.

In June 2014 we announced a new organizational structure and also highlighted the risk of impairment. The organization is fully implemented as of January 1, 2015 and we have concluded that there was a need for impairment of goodwill of SEK -767m that was charged to the fourth quarter results.

To briefly sum up the full-year, we have completed the initial step in our profitability improvement program. Operating income increased by 47% to SEK 2,358m (1,608) and the corresponding margin rose to 7.2% (5.3), excluding the impairment of goodwill. The improvement is a Group-wide effort, thus especially pleasing that all business areas improved their profitability. More than half of the improvement in the full-year results is attributable to our Accelerated Improvement Program. Main improvements relate to mix of products sold and reduced cost of materials. In addition to our own efforts, we enjoyed support from favorable weather conditions, early in the season in Europe respectively late in North America. The Board proposes that the dividend will be increased to SEK 1.65 per share (1.50). The dividend is also proposed to be paid in two installments, one third in April and two thirds paid in October, to better match the Group's cash flow profile.

We expect the new brand driven and business model differentiated organization to support growth in the medium and long-term. For now, we remain in the margin recovery mode, prioritizing margin before sales growth, aiming for 10% operating margin by 2016. Focus and execution of the Accelerated Improvement Program to continue to drive margin recovery is the Group-wide priority for 2015.”

Fourth quarter 2014

• Net sales increased to SEK 5,323m (4,707), an increase of 6% adjusted for exchange rate effects.
• Operating income, excluding impairment of goodwill, improved to SEK -230m (-308), despite negative impact from changes in exchange rates totaling SEK -81m.
• Operating income was charged with an impairment of goodwill amounting to SEK -767m.

Full-year 2014

• Net sales increased to SEK 32,838m (30,307), an increase of 6% adjusted for exchange rate effects.
• Operating income, excluding the impairment of goodwill, increased 47% to SEK 2,358m (1,608), corresponding to a margin of 7.2% (5.3).
• Earnings per share amounted to SEK 2.78 (1.60) excluding impairment and SEK 1.44 including impairment.
• Operating cash flow amounted to SEK 868m (1,813).
• The board proposes a dividend of SEK 1.65 per share (1.50) for 2014, divided into two payments. SEK 0.55 in April and SEK 1.10 to be paid in October.

Telephone conference
A combined press and telephone conference, hosted by Kai Wärn, President and CEO, and Ulf Liljedahl, CFO, will be held at Husqvarna’s office on Regeringsgatan 28 in Stockholm at 10:00 CET on February 6, 2015. To participate by phone, 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 year-end 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 February 6, 2015.

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 2014 amounted to SEK 33 billion, and the Group had 14,000 employees on average in more than 40 countries.