Husqvarna — Audit Report / Information 2014

Apr 10, 2015

Correction of balance sheet and income statement 2014

Husqvarna Group has established a new brand-driven organization for its forest and garden operations, which was fully effective as of January 1, 2015. The new organization includes three global divisions for the forest and garden operations; Husqvarna, Gardena and Consumer Brands. The Construction division was not affected by the reorganization. The business area reporting for 2014, restated into the new divisions, is included in the Group's annual report for 2014.

Furthermore, the Group has revisited the calculation model for elimination of internal profits in inventory. The application of the new model results in a correction of the opening balance of Group inventory as of January 1, 2015, by SEK -245m before tax. The impact on Group income for the period 2014 is limited to SEK -7m, with differences between the four individual quarters and divisions. In addition, there has also been a minor correction of prior years' reported equity, primarily related to income tax.

The full restatement is attached to this press release.

For additional information, please contact

+46 8 738 90 80 or press@husqvarnagroup.com

The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. It was released for publication at 08:30 CET on April 10, 2015.

Husqvarna Group

Husqvarna Group is a world leading producer of outdoor power products including chainsaws, trimmers, robotic lawn mowers and garden tractors. The Group is also the European leader in garden watering products and a world leader in cutting equipment and diamond tools for the construction and stone industries. The Group's products and solutions are sold under brands including Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart via dealers and retailers to end-customers in more than 100 countries. Net sales in 2014 amounted to SEK 33 billion, and the Group had more than 14,000 employees in 40 countries.

Group Income Statement

	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Full-year 2014	Full-year
SEKm	restated Q1 2014		restated Q2 2014		restated Q3 2014		restated Q4 2014		restated	2014
Cost of goods sold	-7 128	-7 133	-7 620	-7 609	-4 819	-4 850	-3 921	-3 886	-23 488	-23 478
Gross income	2 557	2 552	3 425	3 436	1 966	1 935	1 402	1 437	9 350	9 360
Operating income	908	903	1 373	1 384	332	301	-1 032	-997	1 581	1 591
Income tax	-192	-191	-296	-299	-63	-55	119	110	-432	-435
Income for the period	620	616	967	975	199	176	-962	-936	824	831
Earnings per share before dilution, SEK	1,08	1,07	1,68	1,70	0,35	0,31	-1,68	-1,63	1,43	1,44
Earnings per share after dilution, SEK	1,08	1,07	1,68	1,70	0,35	0,31	-1,68	-1,63	1,43	1,44
Other comprehensive income	606	602	1 434	1 442	311	288	-731	-705	1 620	1 627

Group Balance Sheet

	March 31, 2014		June 30, 2014		Sept 30, 2014		Dec 31, 2014
SEKm		restated Mar 31, 2014		restated Jun 30, 2014		restated Sep 30, 2014		restated Dec 31, 2014
Property, plant and equipment	3 704	3 686	3 878	3 860	4 094	4 076	4 481	4 463
Deferred tax assets	1 276	1 221	1 326	1 268	1 281	1 231	1 644	1 585
Inventories	7 277	7 507	6 704	6 945	6 577	6 787	7 709	7 954
Total assets	31 482	31 639	31 301	31 466	28 827	28 969	29 176	29 344
Total equity	11 923	11 994	12 497	12 576	12 816	12 872	12 088	12 170
Tax liabilities	186	272	438	524	231	317	50	136
Total liabilities	19 559	19 645	18 804	18 890	16 011	16 097	17 088	17 174
Total equity and liabilities	31 482	31 639	31 301	31 466	28 827	28 969	29 176	29 344

Husqvarna Division

	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Full-year 2014	Full-year
SEKm	restated Q1 2014		restated Q2 2014		restated Q3 2014		restated Q4 2014		restated	2014
Net sales	4 358	4 358	5 038	5 038	3 264	3 264	2 789	2 789	15 449	15 449
Operating income	667	653	818	818	432	400	91	145	2 008	2 016
Operating margin, %	15,3	15,0	16,2	16,2	13,2	12,2	3,3	5,2	13,0	13,0
Assets	10 720	10 845	10 696	10 827	9 715	9 826	10 025	10 189	10 025	10 189
Liabilities	3 404	3 404	3 356	3 356	2 754	2 754	2 942	2 942	2 942	2 942
Net assets	7 316	7 441	7 340	7 471	6 961	7 072	7 083	7 247	7 083	7 247

Gardena Division

	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Full-year 2014	Full-year
SEKm	restated Q1 2014		restated Q2 2014		restated Q3 2014		restated Q4 2014		restated	2014
Net sales	1 152	1 152	1 712	1 712	879	879	469	469	4 212	4 212
Operating income	177	186	399	401	- 7	2	-186	-207	383	382
Operating margin, %	15,4	16,1	23,3	23,4	-0,8	0,3	-39,7	-44,2	9,1	9,1
Assets	7 285	7 321	7 441	7 473	6 841	6 873	6 449	6 460	6 449	6 460
Liabilities	804	804	867	867	563	563	639	639	639	639
Net assets	6 481	6 517	6 574	6 606	6 278	6 310	5 810	5 821	5 810	5 821

Consumer Brands Division

SEKm	Q1 2014 restated Q1 2014		Q2 2014 restated Q2 2014		Q3 2014 restated Q3 2014		Q4 2014 restated Q4 2014		Full-year 2014 restated	Full-year 2014
Net sales	3 393	3 393	3 410	3 410	1 776	1 776	1 259	1 259	9 838	9 838
Operating income	44	48	97	102	-138	-148	-158	-156	-155	-154
Operating margin, %	1,3	1,4	2,8	3,0	-7,8	-8,3	-12,5	-12,4	-1,6	-1,6
Assets	7 330	7 325	6 194	6 193	5 350	5 336	5 645	5 635	5 645	5 635
Liabilities	2 599	2 599	2 068	2 068	1 514	1 514	1 723	1 723	1 723	1 723
Net assets	4 731	4 726	4 126	4 125	3 836	3 822	3 922	3 912	3 922	3 912

Construction Division

	Q1 2014		Q2 2014		Q3 2014		Q4 2014		Full-year 2014	Full-year
SEKm	restated Q1 2014		restated Q2 2014		restated Q3 2014		restated Q4 2014		restated	2014
Net sales	782	782	885	885	866	866	806	806	3 339	3 339
Operating income	81	77	117	121	107	109	49	49	354	356
Operating margin, %	10,4	9,8	13,2	13,7	12,4	12,6	6,0	6,0	10,6	10,7
Assets	3 023	3 080	3 179	3 240	3 226	3 288	3 215	3 278	3 215	3 278
Liabilities	507	507	565	565	558	558	538	538	538	538
Net assets	2 516	2 573	2 614	2 675	2 668	2 730	2 677	2 740	2 677	2 740

Liquid assets, interest bearing liabilities, deferred tax and equity are not included in the tables above.

Tax liabilities and tax receivables have also been excluded as they will be excluded in the interim reports going forward (starting January 1, 2015).

Address Visiting address Telephone Fax Reg. No. Web site Husqvarna AB (publ) Box 7454 SE-103 92 Stockholm Sweden