Husqvarna — Interim / Quarterly Report 2012

Apr 26, 2012

INTERIM REPORT JANUARY - MARCH 2012

Stockholm April 26, 2012

Hans Linnarson, President and CEO:

"Husqvarna Group delivered a first quarter with higher sales and operating income for all three business areas. We have many new products reaching the market this year, including additional robotic mowers, upgraded riders and a new range of premium consumer products under the McCulloch brand, that have been received well by the trade. Together with operational improvements in our supply chain, we capitalized on increased demand.

The market in the U.S. was favorable, with increased consumer spending on lawn and garden equipment. The overall U.S. economic environment developed positively and the market for outdoor products was also fuelled by an early and warm spring. Improved factory delivery performance helped the Group to a strong sales development in the first quarter, with market share gains in several areas.

In Europe, the Group's development was stable, which was in line with the market trend. Demand in southern Europe and France was weaker than last year, while demand in Germany and northern Europe had a positive development. The operating margin for Europe & Asia/Pacific remained on the same high level, compared to the previous year's strong first quarter.

For Construction, the positive development continued. Sales, operating income and margin improved, also primarily driven by a strong U.S. development.

In the US market, the near term outlook is for the stronger demand year-on-year to continue, while the demand outlook for the European market is more difficult to assess.

Customer service and delivery reliability are some of the Group's top priorities for 2012, and I am pleased to note that so far into the season, we have improved in both. However, further efficiency improvements are needed."

• Net sales increased by 12% to SEK 9,811m (8,774). Adjusted for exchange rate effects, net sales increased by 9%.
• Strong sales performance and market share gains for Americas and Construction, stable development for Europe & Asia/Pacific.
• Operating income increased to SEK 915m (662). Higher operating income for Americas and Construction, stable for Europe & Asia/Pacific.
• Operating cash flow improved to SEK -2,443m (-2,809).
• Earnings per share increased to SEK 1.10 (0.84).

	Q1	Q1	Change, %			FY
SEKm	2012	2011	As rep.	Adj.1	LTM2	2011
Net sales, Group	9,811	8,774	12	9	31,394	30,357
Europe & Asia/Pacific	4,653	4,541	2	1	16,477	16,365
Americas	4,420	3,588	23	19	12,025	11,193
Construction	738	645	14	11	2,892	2,799
EBITDA	1,188	946	26	20	2,913	2,671
EBITDA margin, %	12.1	10.8	-	-	9.3	8.8
Operating income, Group	915	662	38	30	1,804	1,551
Europe & Asia/Pacific	833	815	2	2	2,295	2,277
Americas	81	-94	n.a	n.a	-479	-654
Construction	39	-17	n.a	58	186	130
Operating margin, %	9.3	7.5	-	-	5.7	5.1
Income after financial items	794	589	35	-	1,352	1,147
Income for the period	632	484	31	-	1,145	997
Earnings per share, SEK	1.10	0.84	31	-	1.99	1.73

¹ Adjusted for items affecting comparability (see table on page 10), currency translation effects and

acquisitions/divestments. 2 LTM = last 12 months rolling.

Address Visiting address Telephone Reg. No. Web site NASDAQ OMX Stockholm Regeringsgatan 28 +46 8 738 90 00 556000-5331 www.husqvarnagroup.com HUSQ A

HUSQ B

FIRST QUARTER

Net sales

Net sales for the first quarter increased by 12% to SEK 9,811m (8,774). Adjusted for exchange rate effects, net sales for the Group increased by 9%, for Europe & Asia/Pacific by 1%, for Americas by 19% and for Construction by 11%.

Operating income

Operating income for the first quarter increased by 38% and amounted to SEK 915m (662) and the corresponding operating margin rose to 9.3% (7.5). Operating income increased in all business areas.

Operating income was positively affected mainly by higher sales, lower production costs and changes in exchange rates.

Changes in exchange rates had a total positive effect on operating income of approximately SEK 67m, compared with the first quarter 2011, of which transaction effects amounted to SEK -3m (20), translation effects amounted to SEK 0m (-2) and change in value of currency hedging contracts amounted to SEK 25m (-63).

In the first quarter 2011, operating income was negatively impacted by SEK -150m referring to costs directly related to production disturbances and SEK -40m referring to restructuring charges.

Financial items net

Net financial items for the first quarter amounted to SEK -121m (-73). The average interest rate on borrowings at the end of the quarter was 3.9% (4.0). Net financial items were negatively impacted mainly by higher net debt and negative mark-to-market valuation on the interest rate component of the Group's hedge contracts.

Income after financial items

Income after financial items amounted to SEK 794m (589) corresponding to a margin of 8.1% (6.7).

Taxes

Taxes amounted to SEK -162m (-105), corresponding to a tax rate of 20% (18) of income after financial items.

Earnings per share

Income for the quarter amounted to SEK 632m (484), corresponding to SEK 1.10 (0.84) per share.

OPERATING CASH FLOW

Due to the seasonality of the Group's operations, operating cash flow is normally negative in the first quarter. Operating cash flow for the first quarter amounted to SEK -2,443m (-2,809). The improved operating cash flow was mainly due to higher income after financial items, lower inventory build-up and lower investments compared to the corresponding quarter 2011.

Operating cash flow SEKm	Q1 2012	Q1 2011	Full year 2011
Cash flow from operations, excluding changes in
operating assets and liabilities	958	749	1,736
Changes in operating assets and liabilities	-3,247	-3,354	-1,239
Cash flow from operations	-2,289	-2,605	497
Cash flow from investments, excluding acquisitions	-154	-204	-969
Operating cash flow	-2,443	-2,809	-472

FINANCIAL POSITION

Group equity as of March 31, 2012, excluding non-controlling interests, amounted to SEK 11,700m (12,022), corresponding to SEK 20,4 (21.1) per share. Group equity was charged with dividend to shareholders in March 2012, compared with 2011 when equity was charged with dividend in April.

Net debt as of March 31 amounted to SEK 9,400m (8,305) of which liquid funds amounted to SEK 1,434m (1,985) and interest bearing debt amounted to SEK 10,834m (10,289). The higher net debt was mainly a result of an increase in working capital. The major currencies used for debt financing are SEK and USD. In the first quarter, net debt increased by SEK 140m as a result of changes in exchange rates.

The net debt/equity ratio amounted to 0.80 (0.69) and the equity/assets ratio to 35.0% (37.5).

Net debt	31 Mar	31 Mar	31 Dec
SEKm	2012	2011	2011
Interest-bearing liabilities		10,834 10,289	8,261
Liquid funds	1,434	1,984	1,340
Net debt	9,400	8,305	6,921

On March 31, 2012, long-term loans including financial leases amounted to SEK 6,883m (5,942) and shortterm loans including financial leases to SEK 3,708m (3,794). Long-term loans consist of SEK 3,158m (3,135) in issued bonds, and bank loans of SEK 3,725m (2,807). The issued bonds and the bank loans mature in 2012 and onwards. The group also has an unutilized SEK 6 bn syndicated revolving credit, with maturity in 2016.

PERFORMANCE BY BUSINESS AREA

Europe & Asia/Pacific

	Q1	Q1	Change, %					Full year
SEKm	2012	2011	As rep.	Adj.1	LTM2	2011
Net sales	4,653	4,541	2	1	16,477	16,365
Operating income	833	815	2	2	2,295	2,277
Operating margin, %	17.9	17.9	-	-	13.9	13.9

1 Adjusted for currency translation effects and items affecting comparability. 2 Last 12 months rolling.

Net sales for Europe & Asia/Pacific in the first quarter increased by 2%. Adjusted for exchange rate effects, net sales increased by 1%, compared to a strong first quarter of 2011.

Sales increased in major markets such as Germany, Austria and the Nordic region, while sales in France and southern Europe showed declines. The development for the Asia/Pacific region was in line with the previous year, although Australia had a weather driven decline.

New products, including robotic mowers, upgraded riders and a new range of premium consumer products under the McCulloch brand, performed well. Sales to the dealer channel grew as a percentage of the business area's total sales.

Operating income amounted to SEK 833m (815) and the operating margin remained at a high level, 17.9% (17.9). Changes in exchange rates had a positive year-on-year effect on operating income of SEK 72m.

Americas

	Q1	Q1	Change, %					Full year
SEKm	2012	2011	As rep.	Adj.1	LTM2	2011
Net sales	4,420	3,588	23	19	12,025	11,193
Operating income	81	-94	n.a	n.a	-479	-654
Operating margin, %	1.8	-2.6	-	-	-4.0	-5.8

1 Adjusted for currency translation effects and items affecting comparability. 2 Last 12 months rolling.

Net sales for Americas in the first quarter increased by 23%. Adjusted for exchange rate effects, net sales increased by 19%, which is estimated to be higher than the development for the total market.

Sales growth in the U.S. market was high. Latin America had a modest increase, partly due to a slowdown in the economy in Brazil. Sales in the U.S. were driven by an early and warm spring, improvement in the overall economy as well as better production output. In terms of products, ride-on and walk-behind mowers had the best development. The Group's market shares increased in several areas. However, further efficiency improvements are needed.

Operating income for the first quarter amounted to SEK 81m (-94) and the corresponding operating margin was 1.8% (-2.6). Operating income was positively affected by the higher sales volumes, lower production costs and mix. Changes in exchange rates had a positive year-on-year effect on operating income of SEK 3m.

In the first quarter 2011, operating income was negatively impacted by SEK -132m referring to costs directly related to production disturbances.

Construction

	Q1	Q1	Change, %			Full year
SEKm	2012	2011	As rep.	Adj.1	LTM2	2011
Net sales	738	645	14	11	2,892	2,799
Operating income	39	-17	n.a	58	186	130
Operating margin, %	5.3	-2.6	-	-	6.4	4.6

1 Adjusted for currency translation effects and items affecting comparability. 2 Last 12 months rolling.

Net sales for Construction in the first quarter increased by 14%. Adjusted for exchange rate effects, net sales increased by 11%.

Total market demand increased in the U.S., as a result of increased construction activity and a continued product replacement need. Market conditions in Europe were mixed. Demand declined in southern Europe while the development in northern Europe was slightly positive. In the rest of the world, demand continued to grow.

Sales in the U.S. market developed positively in all product categories, and market shares are estimated to have increased.

Operating income for the first quarter increased to SEK 39m (-17) and the operating margin improved to 5.3 percent (-2.6), mainly as a result of higher sales volumes and restructuring charges of SEK -40m that were charged to operating income in Q1 2011. Changes in exchange rates had a negative year-on-year effect on operating income of SEK -10m.

PARENT COMPANY

Net sales in the first quarter 2012 for the Parent Company, Husqvarna AB, amounted to SEK 3,442m (3,141), of which SEK 2,836m (2,545) referred to sales to Group companies and SEK 606m (596) to external customers.

Income after financial items amounted to SEK 278m (152). Income for the period was SEK 222m (117). Investments in tangible and intangible assets amounted to SEK 83m (83). Cash and cash equivalents amounted to SEK 87m (285) as of March 31, 2012. Undistributed earnings in the Parent Company amounted to SEK 16,738m (17,626), after deduction of approved dividend amounting to SEK 859m.

CONVERSION OF SHARES

According to the company's articles of association, owners of A-shares have the right to have such shares converted to B-shares. Conversion reduces the total number of votes in the company.

In January 2012, 500,259 A-shares were converted to B-shares at the request of shareholders. The total number of registered shares in the company at March 31, 2012 amounted to 576,343,778 shares of which 128,960,080 were A-shares and 447,383,698 were B-shares.

In April 2012, another 1,183,434 A-shares was converted to B-shares at the request of shareholders. The total number of votes thereafter amounts to 172,633,359.2.

ANNUAL GENERAL MEETING 2012

The Annual General Meeting of Husqvarna AB (publ) was held on March 28, 2012, in Jönköping, Sweden. A dividend of SEK 1.50 (1.50) per share was resolved.

Notice, full proposals, minutes and other documents from the Annual General Meeting are found on www.husqvarnagroup.com/agm.

RISKS AND UNCERTAINTY FACTORS

A number of factors may affect Husqvarna's operations in terms of operational and financial risks. Operational risks are managed by the operative units, and financial risks by Group Treasury.

For more information on risk than stated below, see the Annual Report, which is available at www.husqvarnagroup.com under Investor Relations.

Operational risks

Operational risks include general economic conditions, as well as trends in consumer and professional spending, particularly in North America and Europe, where the majority of the Group's products are sold. An economic downturn in these markets may have an adverse effect on Group sales and earnings. Shifts in product technology as well as shifts in distribution structure could also have a negative impact on Group sales and earnings.

Demand for the Group's products is also dependent on weather conditions. Dry weather can reduce demand for such products as lawn mowers and tractors, but can stimulate demand for watering products. Demand for chainsaws normally increases after storms and during cold winters.

Husqvarna's operations are also subject to seasonal variations. Demand for consumer garden products and commercial lawn and garden products normally peaks in the second quarter, while the peak season for chainsaws is normally in the third quarter. Husqvarna has adapted its production processes and supply chain to respond to these conditions. However, parameters such as cash flow and production levels follow the seasonal variations in demand, which results in relatively greater risk exposure for the Group over short periods of time.

The Group is currently implementing a number of structural changes as well as an adjusted organization. Restructuring and organizational changes always involve the risk of creating higher costs than anticipated and loosing key personnel.

In the ordinary course of business, Husqvarna is exposed to legal risks such as commercial, product liability and other disputes.

Financial risks

Financial risks refer primarily to exchange rates, interest rates, financing, and credit risks. Risk management within the Husqvarna Group is regulated by a financial policy established by the Board of Directors. A higher indebtedness resulting from the seasonality of the Group's operations involve greater exposure to changes in exchange rates and interest rates, as well as financing risks.

Acquisitions

Husqvarna has completed a number of acquisitions. Although the Group has historically demonstrated ability to successfully integrate acquired businesses, such integration always involves certain risks. Net sales can be adversely affected and costs can be higher than anticipated.

ACCOUNTING PRINCIPLES

Husqvarna's consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups. The financial statement of the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities.

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

Husqvarna has in all material aspects presented its interim report in accordance with the accounting and valuation principles presented in the Annual Report which is available at www.husqvarnagroup.com under Investor Relations.

A description of new and amended standards and the potential effect on the Group's financial statements can be found in the Annual report for 2011, note 1. Current assessment of the effect from the amended IAS 19 is described on page 60.

AUDITORS' REVIEW REPORT

This interim report has not been subject to review by the auditors.

Stockholm April 26, 2012

Hans Linnarson President and CEO

Consolidated income statement

	Q1	Q1	Full-year
SEKm	2012	2011	2011
Net sales	9,811	8,774	30,357
Cost of goods sold	-7,193	-6,444	-21,948
Gross income	2,618	2,330	8,409
Margin, %	26.7	26.6	27.7
Selling expense	-1,326	-1,298	-5,332
Administrative expense	-377	-375	-1,530
Other operating income/expense	0	5	4
Operating income1	915	662	1,551
Margin, %	9.3	7.5	5.1
Financial items, net	-121	-73	-404
Income after financial items	794	589	1,147
Margin, %	8.1	6.7	3.8
Income tax	-162	-105	-150
Income for the period	632	484	997
Attributable to:
Equity holders of the Parent Company	629	480	990
Non-controlling interest in income for the period	3	4	7
Basic earnings per share, SEK	1.10	0.84	1.73
Diluted earnings per share, SEK	1.10	0.84	1.73
Basic w eighted average number of shares
outstanding, millions	572.5	572.4	572.5
Diluted w eighted average number of shares,
millions	572.7	573.3	572.6

Consolidated comprehensive income statement

	Q1	Q1	Full-year
SEKm	2012	2011	2011
Income for the period	632	484	997
Other comprehensive income, net of tax:
Exchange differences on translating foreign
operations	-333	-618	-39
Cash flow hedges	-73	0	77
Other comprehensive income, net of tax	-406	-618	38
Total comprehensive income for the period	226	-134	1,035
Attributable to:
Equity holders of the Parent Company	224	-136	1,027
Non-controlling interest	2	2	8
1 Of which depreciation, amortization and
impairment	-273	-284	-1,120

Consolidated balance sheet

	31 Mar	31 Mar	31 Dec
SEKm	2012	2011	2011
Assets
Property, plant and equipment	3,712	3,830	3,922
Goodw ill	5,872	5,758	6,029
Other intangible assets	3,940	3,925	3,956
Investments in associated companies	5	5	5
Derivatives	1	0	0
Deferred tax assets	1,067	648	1,024
Other financial assets	277	162	272
Total non-current assets	14,874	14,328	15,208
Inventories	8,526	7,442	8,078
Trade receivables	7,982	7,729	3,660
Derivatives	229	614	257
Tax receivables	193	163	217
Other current assets	603	565	600
Other short term investments	328	330	327
Cash and cash equivalents	876	1,040	756
Total current assets	18,737	17,883	13,895
Total assets	33,611	32,211	29,103
Pledged assets	75	39	68
Equity and liabilities
Equity attributable to equity holders of the Parent Company	11,700	12,022	12,332
Non-controlling interests	48	51	56
Total equity	11,748	12,073	12,388
Long-term borrow ings	6,883	5,942	6,941
Deferred tax liabilities	1,626	1,627	1,598
Provisions for pensions and other post-employment benefits	933	927	959
Derivatives	77	35	78
Other provisions	734	675	730
Total non-current liabilities	10,253	9,206	10,306
Trade payables	4,076	3,995	2,797
Tax liabilities	379	179	313
Other liabilities	2,068	2,132	1,691
Dividend payable	859	-	-
Short-term borrow ings	3,708	3,794	968
Derivatives	166	518	274
Other provisions	354	314	366
Total current liabilities	11,610	10,932	6,409
Total equity and liabilities	33,611	32,211	29,103
Contingent liabilities	155	101	154

Consolidated cash flow statement

2011 2011 SEKm 2012 Operations Income after financial items 794 589 1,147 Depreciation/amortization and impairment 273 284 1,120 Restructuring provision* -13 -46 -123 Capital gain and losses 0 -5 -6 Change in accrued and prepaid interest 5 11 11 Taxes paid -101 -84 -413 Cash flow from operations, excluding change in operating assets and liabilities 958 749 1,736 Change in operating assets and liabilities Change in inventories -598 -744 -1,045 Change in trade receivables -4,426 -4,371 -99 Change in trade payables 1,359 1,352 -29 Change in other operating assets/liabilities 418 409 -66 Cash flow from operating assets and liabilities -3,247 -3,354 -1,239
Cash flow from operations -2,289 -2,605 497
Investments
Capital expenditure in property, plant and equipment -91 -146 -702
Capitalization of intangible assets -73 -70 -292
Sale of fixed assets 10 10 25
Other 0 2 0
Cash flow from investments -154 -204 -969
Cash flow from operations and investments -2,443 -2,809 -472
Financing
Change in short-term investments 21 -177 39
Change in interest-bearing liabilities 2,564 2,600 518
Dividend to shareholders - - -859
Dividend to non-controlling interests - 0 -1
Cash flow from financing 2,585 2,423 -303
Total cash flow 142 -386 -775
Cash and cash equivalents at beginning of period 756 1,476 1,476
Exchange rate differences referring to cash and cash equivalents -22 -50 55
Cash and cash equivalents at end of period 876 1,040 756

* Paid restructuring provision previous included in "Change in other operating assets/liabilities".

Change in Group equity

		January - March 2012	January - March 2011
		Non	Non
	Equity	controlling	Total	Equity	controlling	Total
SEKm	holders	interests	equity	holders	interests	equity
Opening balance	12,332	56	12,388	12,154	49	12,203
Share-based payment	3	-	3	4	-	4
Dividend / Dividend payable	-859	-10	-869	-	-	-
Total comprehensive income	224	2	226	-136	2	-134
Closing balance	11,700	48	11,748	12,022	51	12,073

Key data, Group

	Q1	Q1	Full-year
	2012	2011	2011
Net sales, SEKm	9,811	8,774	30,357
Operating income, SEKm	915	662	1,551
Net sales grow th, %	12	-3	-6
Gross margin, %	26.7	26.6	27.7
Operating margin, %	9.3	7.5	5.1
Working capital, SEKm	7,901	7,677	5,699
Return on capital employed, %	8.4	10.6	7.4
Return on equity, %	9.3	13.6	8.0
Earnings per share, SEK	1.10	0.84	1.73
Capital-turnover rate, times	1.6	1.7	1.6
Operating cash flow , SEKm		-2,443 -2,809	-472
Net debt/equity ratio	0.80	0.69	0.56
Capital expenditure, SEKm	164	216	994
Average number of employees	17,543 17,344		15,698

Items affecting comparability

SEKm		Q1	Q2	Q3	Q4	Full year
Restructuring charges	2012	-
	2011	-40	-	-24	-	-64
	2010	-	-157	-	-	-157
	2009	-	-	-59	-340	-399
Costs for personnel cut-backs	2009	-35	-18	-	-	-53
Legal settlement cost	2010	-50	-	-	-	-50
Total	2012	-
	2011	-40	-	-24	-	-64
	2010	-50	-157	-	-	-207
	2009	-35	-18	-59	-340	-452

SEKm		Q1	Q2	Q3	Q4	Full year
Net sales	2012	9,811
	2011		8,774 10,179	6,410	4,994	30,357
	2010		9,082 11,457	6,907	4,794	32,240
Operating income	2012	915
	M argin, %	9.3
	2011	662	1,012	113	-236	1,551
	Margin, %	7.5	9.9	1.8	-4.7	5.1
	2010	778	1,319	411	-63	2,445
	Margin, %	8.6	11.5	5.9	-1.3	7.6
Income after financial items	2012	794
	M argin, %	8.1
	2011	589	897	24	-363	1,147
	Margin, %	6.7	8.8	0.4	-7.3	3.8
	2010	690	1,250	310	-199	2,051
	Margin, %	7.6	10.9	4.5	-4.2	6.4
Income for the period	2012	632
	2011	484	681	55	-223	997
	2010	535	936	402	-124	1,749
Earnings per share, SEK	2012	1.10
	2011	0.84	1.18	0.10	-0.39	1.73
	2010	0.92	1.62	0.70	-0.21	3.03

Net sales and income by quarter, Group

Net sales and operating income, 12 months rolling, Group

SEKm		Q1	Q2	Q3	Q4
Net sales	2012	31,394
	2011	31,932	30,654	30,157	30,357
	2010	32,004	31,980	32,178	32,240
Operating income	2012	1,804
	M argin, %	5.7
	2011	2,329	2,022	1,724	1,551
	Margin, %	7.3	6.6	5.7	5.1
	2010	1,552	1,755	1,993	2,445
	Margin, %	4.8	5.5	6.2	7.6

	2011	2010	2009	2008	2007
Net sales, SEKm	30,357	32,240	34,074	32,342	33,284
Operating income, SEKm	1,551	2,445	1,560	2,361	3,564
Net sales grow th, %	-6	-5	5	-3	13
Gross margin, %	27.7	28.5	25.4	29.0	29.4
Operating margin, %	5.1	7.6	4.6	7.3	10.7
Return on capital employed, %	7.4	11.0	6.6	10.7	17.6
Return on equity, %	8.0	13.9	7.5	15.8	28.6
Capital turn-over rate, times	1.6	1.7	1.6	1.5	1.8
Operating cash flow , SEKm	-472	962	3,737	2,013	1,843
Capital expenditure, SEKm	994	1,302	914	1,163	857
Average number of employees	15,698	14,954	15,030	15,720	16,093

Net sales by business area

SEKm		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2012	4,653
	2011	4,541	5,752	3,430	2,642	16,365
	2010	4,459	5,845	3,708	2,609	16,621
Americas	2012	4,420
	2011	3,588	3,692	2,241	1,672	11,193
	2010	4,028	4,863	2,482	1,571	12,944
Construction	2012	738
	2011	645	735	739	680	2,799
	2010	595	749	717	614	2,675
Total Group	2012	9,811
	2011		8,774 10,179	6,410	4,994	30,357
	2010		9,082 11,457	6,907	4,794	32,240

Operating income by business area

SEKm		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2012	833
Excl. items affecting comparability	2012	833
	2011	815	1,079	291	92	2,277
Excl. items affecting comparability	2011	815	1,079	291	92	2,277
	2010	732	1,145	511	-5	2,383
Excl. items affecting comparability	2010	732	1,145	511	-5	2,383
Americas	2012	81
Excl. items affecting comparability	2012	81
	2011	-94	-98	-172	-290	-654
Excl. items affecting comparability	2011	-94	-98	-172	-290	-654
	2010	81	202	-92	-39	152
Excl. items affecting comparability	2010	131	312	-92	-39	312
Construction	2012	39
Excl. items affecting comparability	2012	39
	2011	-17	75	50	22	130
Excl. items affecting comparability	2011	23	75	74	22	194
	2010	1	11	42	28	82
Excl. items affecting comparability	2010	1	58	42	28	129
Group common costs	2012	-38
	2011	-42	-44	-56	-60	-202
	2010	-36	-39	-50	-47	-172
Total Group	2012	915
Excl. items affecting comparability	2012	915
	2011	662	1,012	113	-236	1,551
Excl. items affecting comparability	2011	702	1,012	137	-236	1,615
	2010	778	1,319	411	-63	2,445
Excl. items affecting comparability	2010	828	1,476	411	-63	2,652

Operating margin by business area

%		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2012	17.9
Excl. items affecting comparability	2012	17.9
	2011	17.9	18.8	8.5	3.5	13.9
Excl. items affecting comparability	2011	17.9	18.8	8.5	3.5	13.9
	2010	16.4	19.6	13.8	-0.2	14.3
Excl. items affecting comparability	2010	16.4	19.6	13.8	-0.2	14.3
Americas	2012	1.8
Excl. items affecting comparability	2012	1.8
	2011	-2.6	-2.7	-7.7	-17.3	-5.8
Excl. items affecting comparability	2011	-2.6	-2.7	-7.7	-17.3	-5.8
	2010	2.0	4.2	-3.7	-2.5	1.2
Excl. items affecting comparability	2010	3.3	6.4	-3.7	-2.5	2.4
Construction	2012	5.3
Excl. items affecting comparability	2012	5.3
	2011	-2.6	10.3	6.7	3.3	4.7
Excl. items affecting comparability	2011	3.6	10.3	9.9	3.3	6.9
	2010	0.1	1.5	5.9	4.6	3.1
Excl. items affecting comparability	2010	0.1	7.8	5.9	4.6	4.8
Total Group	2012	9.3
Excl. items affecting comparability	2012	9.3
	2011	7.5	9.9	1.8	-4.7	5.1
Excl. items affecting comparability	2011	8.0	9.9	2.1	-4.7	5.3
	2010	8.6	11.5	5.9	-1.3	7.6
Excl. items affecting comparability	2010	9.1	12.9	5.9	-1.3	8.2

Net assets by business area

	Assets		Liabilities		Net Assets
	31 Mar	31 Mar	31 Mar	31 Mar	31 Mar	31 Mar
SEKm	2012	2011	2012	2011	2012	2011
Europe & Asia/Pacific	19,274	18,520	4,894	4,943	14,380	13,577
Americas	8,496	7,823	1,852	1,938	6,644	5,885
Construction	3,233	3,140	651	618	2,582	2,522
Other	1,175	743	3,633	2,349	-2,458	-1,606
Total	32,178	30,226	11,030	9,848	21,148	20,378

Liquid assets, interest-bearing liabilities and equity is not included in the above table.

Other includes deferred taxes and Husqvarna's common group services such as Holding, Treasury and Risk M anagement.

PARENT COMPANY

Income statement

	Q1	Q1	Full-year
SEKm	2012	2011	2011
Net sales	3,442	3,141	11,121
Cost of goods sold	-2,677	-2,511	-8,537
Gross operating income	765	630	2,584
Selling expense	-185	-220	-981
Administrative expense	-126	-128	-553
Other operating income/expense	0	1	2
Operating income	454	283	1,052
Financial items, net 1	-176	-131	-606
Income after financial items	278	152	446
Appropriations	7	10	307
Income before taxes	285	162	753
Taxes	-63	-45	-16
Income for the period	222	117	737

¹ Group contributions are accounted for in Financial items, net.

Comparative period 2011 has been restated.

Balance sheet

	31 Mar	31 Mar	31 Dec
SEKm	2012	2011	2011
Non-current assets	30,403	30,238	30,413
Current assets	11,126	8,163	7,454
Total assets	41,529	38,401	37,867
Equity	17,912	18,801	18,624
Untaxed reserves	696	1,000	703
Provisions	139	103	146
Interest-bearing liabilities	18,429	14,318	15,118
Current liabilities	4,353	4,179	3,276
Total equity and liabilities	41,529	38,401	37,867

Number of shares

	Outstanding A	Outstanding B	Re-purchased
	shares	shares	B-shares	Total
Number of shares as of 31 December 2011	129,460,339	443,060,066	3,823,373	576,343,778
Conversion of A-shares into B-shares	-500,259	500,259
Number of shares as of 31 March 2012 1	128,960,080	443,560,325	3,823,373	576,343,778

1) After March 31, 2012, another 1 183 434 A-shares have been converted to B-shares.

DEFINITIONS

Capital indicators
Capital employed	Total liabilities and equity less non-interest-bearing debt, including deferred tax liability.
Equity/assets ratio	Equity as a percentage of total assets.
Liquid funds	Cash and cash equivalents, short term investments and fair-value derivative assets.
Net assets	Total assets exclusive of liquid funds and interest-bearing financial receivables, less operating liabilities, non-interest-bearing provisions and deferred tax liabilities.
Net debt	Total interest-bearing liabilities less liquid funds.
Net debt/equity ratio	Net debt in relation to total adjusted equity.
Operating working capital	Inventories and trade receivables less trade payables.
Working capital	Current assets exclusive of liquid funds and interest-bearing financial receivables, less operating liabilities and non-interest-bearing provisions.
Other definitions
Adjusted	As reported adjusted for items affecting comparability, translation effects due to changes in exchange rates and acquisitions/divestments.
Average number of shares	Weighted number of outstanding shares during the period, after repurchase of own shares.
Capital expenditure	Property, plant and equipment and capitalization of product development and software.
Earnings per share	Income for the period divided by the average number of shares.
EBITDA	Earnings before interest, taxes, depreciation, amortization and impairment.
Gross margin	Gross operating income as a percentage of net sales.
LTM	Last twelve months.
Net sales growth	Net sales as a percentage of net sales in the preceding period.
Operating cash flow	Total cash flow from operations and investments, excluding acquisitions and divestments.
Operating margin	Operating income as a percentage of net sales.
Return on capital employed	Operating income plus financial income as a percentage of average capital employed.
Return on equity	Income for the period as a percentage of average equity.

TELEPHONE CONFERENCE

A combined press and telephone conference, hosted by Hans Linnarson, President and CEO, and Ulf Liljedahl, CFO, will be held at the Anglais Hotel in Stockholm at 11:00 CET on April 26, 2012. To participate, please Dial +46 (0) 8 5052 0110 (Sweden) or +44 (0)20 7162 0077 (UK) ten minutes prior to the start of the conference. The conference call will also be audio cast live on www.husqvarnagroup.com/ir. A replay will be available at www.husqvarnagroup.com/ir later the same day.

DATES FOR FINANCIAL REPORTS

July 19, 2012: Interim report for January-June 2012 October 26, 2012: Interim report for January-September 2012

CONTACTS

• Ulf Liljedahl, CFO, +46 8 738 94 42
• Tobias Norrby, Investor Relations Manager, +46 8 738 93 35
• Husqvarna Press Hotline, +46 8 738 90 80

This interim report comprises information which Husqvarna is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08:00 CET on April 26, 2012.

Factors affecting forward-looking statements

This report contains forward-looking statements in the sense referred to in the American Private Securities Litigation Reform Act of 1995. Such statements comprise, among other things, financial goals, goals of future business and financial plans. These statements are based on present expectations and are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, a material reduction in sales by important distributors, success in developing new products and in marketing, outcome of product responsibility litigation, progress in terms of reaching the goals set for productivity and efficient use of capital, successful identification of growth opportunities and acquisition objects, integration of these into the existing business and successful achievement of goals for making the supply chain more efficient.