New product development

Henric Andersson, Head of Technology Office

Strong starting point with

leading product positions

2

Innovation that consistently

outperforms competition

3

Pro & Dealer

Product & Service Innovation

Consumer & Retail

Small ”i” & Product excitement

Innovation

4

Professional all day performance

Up to 10 hours run time

Next step in pro battery segment

Innovative design

Husqvarna Fleet Services

5

System improving efficiency & fleet utilization while

reducing downtime

Unique system connecting operator

and machine data

Creating additional user value

6

Smart Feature – SmartSwitchTM

Innovating in a mature

segment

Addressing consumer

needs

Extension opportunities

Simplify service and increase parts sales

7

Proprietary blade design

Addressing consumer needs

Innovating in a mature segment

Innovating in a mature segment

8

Trimming capability

Vital for the Flymo brand

Innovative solution for

superb grass collection

Leading the development

of a new segment

9

Pioneered

From mowing to an automated

service

Staying ahead

3rd generation perfecting

the concept

Preparing for the future

Extensive technology

development

Small Robotic

Robotic Next

Gen

36V Battery

handheld

(7 products)

Articulated Pro Rider

Crossmower 30”

Fast

Tractor

Technical

Extreme

Pumps w/

protection

Leading performance

pro top handle saw

Leading performance

50/60cc pro saws

Leading

performance

pro trimmers

AWD Walk

Hose boxes

Strong record of innovation

10

2011 2013

Examples of product innovation during 2011-2013 and 2014 outlook

2014

RapidReplaceTM

BackPack Battery

BLi520/940X

Hedgetrimmer

536LiHD60/70X

Flymo UltraGlide

Forest Helmet

Technical

Pressure Tank Units

Garden Hoses

Power Grip

SmartSwitchTM

Differentiated approach

between brands and channels

Strategic, systematic

Primary Development

Consumer Insight

11

Enablers for innovation leadership

Industrial Design is key

Trends influencing product strategy

• Demographics and consumer trends

– Aging population

– Changing buying behaviors

– Garden size is becoming smaller

• Channels and product segments

– Commercial Lawn & Garden

growing

– Increasing retail competition

• Growing emerging markets

• New technologies, e.g. electronics,

battery, robotic, connectivity etc.

12 12

10

Foundation for future growth Battery still relatively small but strategically important & growing

13

Battery system

Key to offer a ”battery system”

Growth drivers

Ease of use, low noise and

environmental impact key

growth drivers

Market leader

Clear market leader in robotic

mowers, the fastest growing

segment

14

Emerging market focus Range tailored for emerging markets

Adapt compli-

mentary range of

wheeled products

Adapt handheld

range & design to

unique applications

Local production

of proven hand-held

pro platforms

Cutting equipment Chain range for inhouse production

15

Soon manufacturing

pilot of the first

chain type

State-of-the-Art

manufacturing

technology with

environmental focus

Significant R&D

with extensive

simulations, lab &

field testing

Cutting equipment Optimize chain and bar as a system

16

Extensive

simulation & testing

System approach to

optimize perfor-

mance and end-

user experience

Upgrading bars in

parallel

17

Summary

Continued high

rate of innovative

product

development

Short-term

shifted focus to

quality, cost and

complexity

reduction

Strong

foundation with

product

leadership

positions

Key to leverage

and build unique

positions NOW