Interim report January - September 2013

Kai Wärn, President and CEO:
“The good sales momentum from the end of the second quarter held up well over
the third quarter. Demand in both Europe and North America was supported by
favorable weather conditions and a delayed garden season. Group sales for Europe
& Asia/Pacific increased 8%, Americas 20% and Construction 6%, adjusted for
changes in exchange rates.

Group operating income for the third quarter was largely on the same level as
prior year. A positive development for Europe & Asia/Pacific was offset by a
decline for Americas, as the majority of the strong sales growth in North
America referred to low margin consumer products in the retail channel. In
addition, operating income was impacted by inefficiencies in the supply chain,
caused by inability to benefit from scale.

Cash flow for the quarter had a strong development, driven by continued working
capital initiatives related to right sized inventory levels.

Although we see positive signs in our work towards our strategic goals, there is
a need to further accelerate and broaden the scope for ongoing programs to
reduce product cost and business complexity. From a top-line perspective, we
will focus resources on our core premium brands Husqvarna and Gardena and
product leadership areas like professional handheld, robotic mowers and
watering. Additionally, we will review how to further differentiate the dealer
and retail business models which we see as a key measure to drive margin
recovery, especially in the U.S.”

Third quarter

  · Net sales amounted to SEK 6,349m (5,841). Adjusted for exchange rate
effects, net sales increased 12%.
  · Operating income amounted to SEK 206m (197).
  · Continued strong operating cash flow amounting to SEK 2,001m (1,503).
  · Net debt/equity ratio improved to 0.57 (0.68).
  · Earnings per share decreased to SEK 0.16 (0.19).

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 October 24, 2013. 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 October 24, 2013.
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 2012 amounted to SEK 31 billion, and the Group had 15,400 employees
on average in more than 40 countries.