Interim report January - September 2015

Kai Wärn, President and CEO:
“The solid improvement trend continued into the seasonally weaker third quarter.
Group operating income increased by 22% and the operating margin rose by 0.6
percentage points to 5.5%, despite adverse impact from changes in exchange
rates. The Accelerated Improvement Program (AIP) continues to deliver earnings
growth and margin recovery.

Net sales, adjusted for changes in exchange rates, increased in the higher
margin divisions Husqvarna, Gardena and Construction. For the Consumer Brands
Division, the decline in sales as a consequence of our prioritization of margin
before revenue continued, resulting in flat sales for the total Group.

The season for watering products was particularly strong, resulting in a 19%
sales increase for the quarter, and a subsequent operating income and margin
improvement for the Gardena Division. Consumer Brands reduced its seasonally
driven loss and the margin recovered as material cost reductions managed to
offset the negative impact from lower volume and currency developments.
Construction continued on its path of profitable growth, while Husqvarna
Division was negatively affected by lower production volumes, currency and an
unfavorable product mix resulting in a lower income for the quarter.

The Accelerated Improvement Program was launched two years ago with the object
of doubling the operating margin to 10% by 2016. The program will, from an
activity viewpoint, be completed this year and is delivering results beyond the
initial expectations. The rolling 12 month operating income has almost doubled,
and excluding the currency impact by using exchange rates from the start of the
program in 2013 the corresponding operating margin has improved to around 9.5%
compared to the reported 8.2%.

The negative currency impact will continue into next year as the currency hedges
will no longer offset the unfavorable transaction impact. This means that
despite the improvements already seen due to AIP we will not be able to reach
the operating margin target of 10% in 2016. Additional measures beyond AIP have
already been defined, such as the recently announced consolidation in
manufacturing and logistics, safeguarding a continued positive result
improvement in 2016 and beyond. The additional measures aims to compensate the
negative currency impact, further improve the operating margin and create the
foundation for the next step in Husqvarna Group’s development - investments in
activities to drive profitable growth.”

Third quarter:

  · Net sales increased 8% to SEK 7,307m (6,785). Adjusted for exchange rate
effects, net sales were unchanged.
  · Operating income increased 22% to SEK 405m (332), including around SEK -60m
of negative currency impact.
  · Operating margin rose to 5.5% (4.9).
  · Earnings per share after dilution amounted to SEK 0.34 (0.35).
  · Operating cash flow amounted to SEK 1,539m (1,330).
  · Net debt/equity ratio amounted to 0.50 (0.50).

Telephone conference
A combined press and telephone conference, hosted by Kai Wärn, President and
CEO, and Jan Ytterberg, CFO, will be held at Husqvarna’s office on
Regeringsgatan 28 in Stockholm at 10:00 CET on October 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 08:00 CET on October 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.