Year-End Report 2015

Kai Wärn, President and CEO:
“The Group’s trend of improvement continued into the seasonally less important
fourth quarter. Currency adjusted sales were 2% higher than prior year’s
corresponding quarter. Husqvarna, Gardena and Construction divisions grew by 6%.
The decline for Consumer Brands was 10% which reflects our ambitions to
prioritize value before revenue. The normal seasonally generated operating loss,
excluding items affecting comparability, was reduced to SEK -212m (-265) and the
margin recovered to -3.7% (-5.0) despite unfavorable currency impact. The
Accelerated Improvement Program continued to yield positive results, mainly
related to further cost reductions.

For the full year, the Group’s development was positive in several dimensions.
Operating income was 27% higher and reached SEK 2,980m, excluding items
affecting comparability, with all divisions contributing to the improvement.
Operating cash flow increased to SEK 1,668m (1,425) and the net debt declined to
SEK 6,375m (7,234).

The Accelerated Improvement Program was successfully closed as of the end of
2015. In two years, the Group’s operating income has improved by 85% and the
margin has recovered from 5.3 to 8.2%, excluding items affecting comparability,
despite a dilution of more than 1 percentage point due to currency translation
effects on net sales.

Building on the success of the Accelerated Improvement Program and our strong
improvement momentum, we aim to capture further cost reductions and efficiency
improvements during 2016-17. The additional efficiency measures will focus on
continued product cost out activities, reduction of indirect material and
logistic costs, capacity adjustments in the supply chain and improved efficiency
in terms of selling and administrative expenses.

The challenge now is to maintain enough momentum to offset the currency head
-wind in 2016, which is estimated to up to SEK -500m, as well as to fund new
activities related to our profitable growth ambition. The challenge is
especially pronounced in the first quarter when we expect half of the full-year
currency impact to materialize.

From a market point of view, we expect a stable to slightly higher demand in the
preseason of 2016.”

Fourth quarter 2015

  · Net sales increased 2% to SEK 5,672 (5,323), adjusted for exchange rate
effects.
  · Operating income improved to SEK -212m (-265), excluding items affecting
comparability.
  · Operating income includes restructuring charges amounting to SEK -153m.

Full-year 2015

  · Net sales increased to SEK 36,170m (32,838), but decreased 1% adjusted for
exchange rate effects.
  · Operating income increased 27% to SEK 2,980m (2,348), excluding items
affecting comparability, corresponding to a margin of 8.2% (7.2).
  · Earnings per share after dilution rose to SEK 3.28 (1.43).
  · Net debt decreased to SEK 6,375m (7,234) and the net debt/equity ratio
declined to 0.49 (0.60).
  · The Board proposes a dividend of SEK 1.65 per share (1.65).

Telephone conference
A combined press and telephone conference, hosted by Kai Wärn, President and
CEO, and Jan Ytterberg, CFO, will be held at the Scandic Anglais Hotel,
Humlegårdsgatan 23, Stockholm at 10:00 CET on February 5, 2016. 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 (http://www.husqvarna.com/ir). A replay
will be available 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 Group 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 5, 2016.
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
2015 amounted to SEK 36 billion, and the Group had more than 13,000 employees in
40 countries.