Husqvarna Division

Share of Group Net Sales

Husqvarna is a global leader in forest and garden products. Key strengths include a broad and competitive product range, global distribution through dealer partnerships built over many years, proven innovation capability and brand recognition. Husqvarna enjoys a heritage position in professional handheld products and robotic mowers. Target end-customers are professionals and demanding consumers that have high demands and expectations on product performance and quality.

The division incorporates the core brand Husqvarna and tactical/­regional brands such as Zenoah (Japan) and Jonsered (Nordic region and North America). The tactical/regional brands serve specific segments that the Husqvarna brand does not reach and also provide an opportunity to address the premium retail segment. Net sales in 2015 amounted to SEK 17.6bn (15.4), which represented 49 percent (47) of Group net sales, and the operating margin was 13.0 percent (13.0), excluding items affecting comparabiity.

The division operates globally, with the majority of sales in mature European and North American markets. This means that further opportunities exist in emerging markets, which offer relatively higher growth rates. Sustained technological and innovation leadership as well as maintained strong brand recognition is imperative for market acceptance of products and solutions. An opportunity to leverage the scale of the full Husqvarna Group to drive long-term cost efficiencies is a key strength.

Global dealer channel distribution

Husqvarna reaches its end-customers mainly through the dealer channel, which is a global network of thousands of small, local and independent stores. Given the dealer-centric model driving dealer channel business development in partnership with dealers is a priority.

Heritage position in handheld products and robotic mowers

End-customers are found in areas such as forestry, tree care, landscaping and commercial lawn and garden services, as well as among home- and landowners. The overall global market share is around 20 percent, with a relatively higher share in the European market. By product category, market positions are strong for handheld products, especially chainsaws, and for wheeled products. In the rapidly-growing market for robotic mowers, Husqvarna is the undisputed global market leader. A key priority is to leverage on lawn and garden ­application knowledge to build a leadership position in the market for battery-powered products as well. In addition, continued business ­development efforts are important to grow in the markets for spare parts, accessories and services.

Substantial R&D resources

Product innovation is critical for Husqvarna’s long-term competitiveness. The Husqvarna Division is the main research and development (R&D) driver in the Group. R&D has a broad, end-customer insight-driven approach. Resources are located primarily in Sweden, the US, China and Japan, with a specific focus and expertise at each site to serve the market with innovative products and solutions.

Questions for Pavel Hajman, President Husqvarna Division

Operating income and margin Husqvarna

Priorities

• Grow profit pool segments: professional handheld products, robotic mowers, parts and accessories
• Dealer channel development and expansion
• Capture commercial lawn and garden opportunity
• Expand in battery-powered products

Brands

  • Husqvarna
  • Zenoah
  • Jonsered

Product range

  • Petrol-powered handheld products such as chainsaws, brushcutters, trimmers and leaf blowers.
  • Wheeled products such as front riders, garden tractors, zero-turn mowers, walk-behind mowers and snow throwers.
  • Electric products, i.e. battery-powered and corded products, robotic mowers and handheld products such as trimmers, leaf blowers and chainsaws.
  • Accessories and spare parts.

End-customers

  • Professional users
  • Demanding consumers ("prosumers")

Distribution channels

  • Dealer-centric
  • Multi-channel

Main competitors

  • STIHL Group
  • Deere & Company
  • Honda
  • Toro
  • Yamabiko Corporation