Capital structure

Husqvarna's target is to have a capital structure corresponding to a long-term creditworthiness at least equivalent to BBB rating, according to the principles for credit assessment of Standard & Poor's or a similar agency's.

This implies that seasonally adjusted net debt in proportion to the earnings before interest, tax, depreciations and amortizations (EBITDA) is not to exceed 2.5 in the long-term. This target for financial indebtedness may be adjusted in the event of changes to the macroeconomic situation, or allowed to deviate for a shorter period of time due to acquisitions. Seasonally adjusted net debt, when assessing the capital structure, is defined as a 4 quarter rolling net debt adjusted for IAS 19 revaluation impact on pension liabilities.