Interim report January - March 2015

Kai Wärn, President and CEO:
"Since January 1, Husqvarna Group operates under a new brand-driven divisional
structure. The new organization shall be seen as a proactive measure to position
Husqvarna Group for the next phase 2016 and beyond, with a stronger focus on
profitable growth. In 2015 however, the main focus will remain on operating
margin recovery through the Accelerated Improvement Program (AIP).

Overall, the year has started well for us. Group operating income increased by
22% to SEK 1,112m (908), despite a currency adjusted sales decline of -3%. The
corresponding operating margin rose to 10.2% (9.4). Even if total sales
declined, the development in terms of divisional mix was positive. Sales
increased 9% in both of our higher margin forest and garden divisions Husqvarna
and Gardena. Consumer Brands’ sales were down by -21% predominantly reflecting a
late start of the season due to another cold winter in the U.S., and our
ambition to prioritize value before revenue. Construction was off to a slow
start, mainly due to external reasons, but sales gradually improved and ended at
an increase of 2% but with a significantly higher run-rate in March.

AIP continues to deliver according to plan and the trend of improving gross and
operating margins for the Group remains. Margins were positively affected by
continued impact from the two main components in our improvement program;
Operational Excellence driven cost reductions and sales growth in our product
leadership areas - the latter having a favorable impact on the mix. Some of the
progress was offset by unfavorable volume impact due to the lower sales in
Consumer Brands. On the other hand, income for the Group was supported by a
positive impact from changes in exchange rates, as currency hedges offset most
of the negative transaction effects.

The recent currency movements have helped us short term, but the longer-term
impact, mainly referring to the strengthening of the USD, is expected to have a
negative impact. So whereas operating income and margin recovery have been solid
since the launch of the AIP program, additional improvement areas to balance the
negative currency impact have been identified, such as indirect material and
logistics as well as capacity and efficiency measures.”

First quarter, January - March

  · Net sales increased by 13% to SEK 10,928m (9,685). Adjusted for exchange
rate effects, net sales decreased -3%.
- Growth for Husqvarna, Gardena and Construction, while Consumer Brands declined
substantially.
  · Operating income rose 22% to SEK 1,112m (908).
- Operational Excellence cost reductions and favorable divisional mix.
  · Positive short-term impact from changes in exchange rates amounting to SEK
107m.
  · Earnings per share increased to SEK 1.37 (1.08).
  · Operating cash flow amounted to SEK -2,410m (-1,969).

Telephone conference
A telephone conference, hosted by Kai Wärn, President and CEO, and Jan
Ytterberg, CFO, will be held at 13:45 CET on April 21, 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 (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
Jan Ytterberg, CFO, +46 8 738 90 77
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 12:00 CET on April 21, 2015.
Husqvarna Group
Husqvarna Group is a world leading producer of outdoor power products including
chainsaws, trimmers, robotic lawn mowers and garden tractors. The Group is also
the European leader in garden watering products and a world leader in cutting
equipment and diamond tools for the construction and stone industries. The
Group’s products and solutions are sold under brands including Husqvarna,
Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart via
dealers and retailers to end-customers in more than 100 countries. Net sales in
2014 amounted to SEK 33 billion, and the Group had more than 14,000 employees in
40 countries.