Group Management

Husqvarna Group has a brand-driven organization, with four separate reporting divisions: Husqvarna, Gardena, Consumer Brands and Construction. The Group Management consists of 13 members; the CEO, the four divisional presidents, the three Group Staff Functions heads, and the five Group Strategic Functions heads. Group Management, together, makes decisions on

• enhancing Group synergies,

• internal financial and business follow-up,

• external financial reporting for Board of Directors approval,

• Group governance,

• Group staffing plans,

• issue resolution,

• the Group’s strategic and business development,

• budgets,

• external affairs,

• Board reporting,

• risk management and mitigation, and

• Group policies and guidelines.

Group Management meetings are chaired by the CEO. Group Management meets monthly by video and/or telephone and quarterly in person.

Clear roles and responsibilities apply for each of the Group functions as well as for the divisions. A Group governance structure has been implemented to ensure that decisions are made as close to operations as possible. Clear guidance has been provided to identify the level on which different types of decisions should be made. Changes to the governance structure (including applicable roles and responsibilities) can only be made by the decision of Group Management.

The CEO

The CEO is appointed by the Board and is responsible for the ongoing management of the Company in accordance with the Board’s guidelines and instructions. These instructions include responsibility for financial reporting, preparation of information for decisions and ensuring that commitments, agreements and other legal documents do not conflict with Swedish or foreign laws and regulations. The CEO shall also ensure compliance with goals, policies and strategic plans, and also update these when necessary. The CEO appoints all members of Group Management.

The divisional presidents

Each division has its own President, who in turn reports to the CEO of Husqvarna AB. Each of the four division Presidents is responsible for the income statement and balance sheet for his/her respective division. However, all decisions made by a division are subject to the Group’s overall strategic goals and policies.

Group staff functions

Husqvarna has three “Group staff functions” as follows:

1. Finance, It & IR. This function is primarily responsible for the Group’s financial reporting as well as for Treasury, Tax, Internal Audit, Group IT and Investor Relations (IR).

2. Legal Affairs. This fuction is reponsible for the Group´s Legal Affairs, Enterprise Risk Management, Code of Conduct compliance, training and reporting, and sustainability strategy (with such sustainability function having been transferred to Group Operations, effective January 25, 2017).

3. People & Organization. THis function is responsible for the Group’s human resources, including compensation and benefit programs and talent management within the Group.

Group strategic functions

Husqvarna has five “Group strategic functions” as described below. These five functions, collectively, are responsible for designing the strategic framework under which each part of the value chain operates in order to secure synergies within the Group and to ensure that the four divisions execute their businesses in line with such framework.

1. Business Development. This function is responsible for Group strategy, acquisitions and divestments.

2. Communications, Brand & Marketing. This function is responsible for managing the Group’s brand portfolio, brand positioning, brand and customer insight, and business intelligence. It is also responsible for capturing group marketing synergies and establishing the Group’s framework for outbound licensing and pricing strategies. This function is also responsible for internal and external Group communications.

3. Technology Office. This function leads the Group's technology and innovation management, including as to intellectual property. In addition, it develops the product commonality strategy to ensure that the Group can capture product and technology synergies within and between the different divisions.

4. Group Operations. This function is responsible for ensuring that the Group can capture operational synergies across the different divisions such as in purchasing and supply-chain management. Effective January 25, 2017, Group Operations is also taking responsibility for leading the Group’s sustainability strategy.

5. Program Office - Efficiency programs and Quality. This function is responsible for tracking and follow-up actions to secure product quality and cross-divisional savings opportunities.