Interim report January - March 2014

Kai Wärn, President and CEO:
“We are pleased to see that the first quarter performance is benefiting from the
Accelerated Improvement Program and a good market demand. The program that was
launched last year and which aims at substantially strengthening the
profitability of the Group is delivering encouraging results. In particular,
direct material costs have been reduced and the distinct focus on our premium
brands and product leadership areas is beginning to have a positive impact.

From a market perspective, the year has started well in Europe, affected
favorably by an early spring. Demand in North America developed positively,
driven by retail inventory stock-up, despite another long winter across much of
the region. Total currency adjusted net sales for the Group increased 7%, with
higher sales in all business areas. Operating income rose 31% to SEK 903m –
despite a negative currency development – and the operating margin increased to
9.3% (7.6).

Substantial profitability improvements were achieved in Americas. Direct
material costs were reduced and the channel mix developed favorably, supporting
a continued recovery of the operating income and margin to SEK 218m (142) and
4.8% (3.3) respectively. First experiences of the new organization, based on
separate profit centers for retail and dealer operations, is reinforcing our
view that this structure will be an important vehicle for further profitability
improvements.

In Europe & Asia/Pacific, we are especially pleased with the product mix. Sales
developed well for the prioritized areas, including robotic lawn mowers and
watering products. Total sales for the business area rose 5% adjusted for
currency, and operating income increased 22% to SEK 669m (550).

Construction reported another strong quarter with higher sales in all regions.
The margin rose to 9.8% (6.5), leveraging primarily on a sales growth of 11%.

Going forward, we will continue the execution of the Accelerated Improvement
Program. In addition, we are cautiously optimistic about the underlying demand.”

First quarter, January - March

  · Net sales increased to SEK 9,685m (9,024). Adjusted for exchange rate
effects, net sales increased 7%.
  · Operating income rose 31% to SEK 903m (688), including negative foreign
exchange impact of SEK -45m.
  · Higher sales and operating income for all business areas.
  · Operating income positively impacted by lower costs for materials, product
mix and channel mix.
  · Earnings per share increased to SEK 1.07 (0.81).
  · The net debt/equity ratio improved to 0.73 (0.90).

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 April 24, 2014. 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 (http://www.husqvarna.com/ir). A
replay will be available
at www.husqvarnagroup.com/ir (http://www.husqvarna.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 April 24, 2014.
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 2013 amounted to SEK 30 billion, and the Group had 14,000 employees
on average in more than 40 countries.