2021

Annual Report

Husqvarna Group in brief

Husqvarna Group is a leading global producer of outdoor power products and solutions for forest, park and garden care, of watering products and of cutting and surface-preparation equipment for the construction industry.

Key figures

Employees

Production sites

Sales in number of countries

Sales distributon

29%

North America

57%

Europe

14%

Rest of the world

2021 was a successful year

In 2021 we executed on our strategy and delivered strong financial performance in an environment characterized by the pandemic. Focusing on increased customer value, we launched a number of new products, solutions and innovations that strengthened our offering and market positions, especially within areas such as robotics and electrification.

Key events

Record net sales and operating income for the year.
All financial targets were reached.
New financial targets launched.
Orbit Irrigation acquired in the U.S.
Increased share of electrified products.
Successful launch of the robotic mower CEORA^TM.
Introduction of Gardena EcoLine, a range of garden tools produced with recycled materials.
Launch of Husqvarna Construction’s high performance battery power cutter, K 1 PACE.

Financial targets All targets achieved 2021

Organic growth

0.0%

Operating margin

0.0%

Capital efficiency

Sustainability targets achievement as of 2021

Carbon

-0%

Reduction of CO₂ emissions

Circular

Approved innovations

People

Progress to be reported in 2022

CEO statement

This year we reinforced our leading positions and demonstrated our technology leadership.”

CEO statement

Well positioned for continued value creation after another record year.

2021 was a successful year for Husqvarna Group. Over the years, we have transformed the Group and built a stronger foundation, executing a clear customer-focused strategy while continuously contributing to a more sustainable society. This year we reinforced our leading positions and demonstrated our technology leadership in parallel with delivering record results. To reflect our profitable growth journey, we have raised our ambitions and presented new financial targets.

Henric Andersson

President and CEO

Read the CEO statement

Market trends are strengthening our business

Global market trends provide strong growth opportunities for Husqvarna Group. We are active in attractive markets with high growth such as robotic mowers, electrified products and smart watering systems.

Sustainability

Electrification

Servitization and Connectivity

Autonomous solutions

Global market trends shaping our future

Attractive markets with favorable growth opportunities

Husqvarna Group is active in attractive markets valued at approximately SEK 265bn. We see strong growth opportunities in segments such as robotic mowers, electrified products and smart watering systems.

SEKbn total global market value

Our strengths

Husqvarna Group’s ambition is to provide sustainable, profitable growth and thereby create value for the company, its owners and other stakeholders.

A stronger Husqvarna Group

Leading in sustainability

Market leader in high-growth segments

Innovation and technology leadership

Delivering on our strategy

A stronger Husqvarna Group

In recent years, we have built a stronger Husqvarna Group by making substantial changes to our business composition – and the journey is continuing. As a result we have strengthened our market positions and significantly improved the operating margin.

Leading in sustainability

We are driving developments through increased electrification of our products and through irrigation solutions that lead to a radical reduction in water consumption. We are actively working with innovations that support a circular economy. We encourage our customers and offer them an opportunity to make sustainable choices.

Market leader in high-growth segments

We are the global market leader in robotic mowers as well as in smart watering and garden systems. We hold strong market positions in battery-powered products for the forest, garden and light construction industries. All of these segments have achieved strong growth and continue to have long-term double-digit growth potential.

Innovation and technology leadership

We have been launching new innovations for 333 years and invest significant resources into R&D and our technology leadership. Through innovation, we have created new product segments and best-in-class user experience.

Delivering on our strategy

We create value by providing long-term growth, leveraging leadership positions, and by delivering on our financial and sustainability targets. Our strategy considers global trends with a clear focus on sustainability, electrification, autonomous solutions, servitization and connectivity.

A strategy for sustainable value creation

With a strategy firmly anchored in important prevailing market trends we aim to deliver long-term sustainable value and lead our industry in the transformation towards a low-carbon and resource-smart economy.

Market trends

Customer experience Robotics and battery A winning core Services and solutions

Sustainable value creation

Customer experience

Our mission – Shaping great experiences – clearly signals our focus on creating an outstanding customer experience. Closer customer relations and delivering excellent customer experiences are crucial factors for growing our business and winning in the markets where we operate.

Robotics and battery

Robotics mowers and battery-powered products are important components of our growth strategy. The market growth for these products including smart garden services, is significantly higher than for the market as a whole, and the future potential is substantial.

A winning core

The Group is powered by strong brands. One key component of our strategy is to continue to develop and strengthen market and brand positions in our core offerings. The strong brand equity and focus on high-performance products under the Husqvarna and Gardena brands allow us to combine a premium offering, solid profitability and increased investments in new-product development.

Services and solutions

Services and solutions provide new opportunities for us to drive growth and profitability. Expanding our offerings with services and solutions are also a logical consequence of our strategy to create an outstanding customer experience beyond the standalone product.

Growth through innovation leadership

We are increasing our investments in R&D to gain technology leadership to take advantage of favorable market trends such as electrification, servitization, connectivity and autonomous solutions.

Electrification

Electrification Connected solutions Autonomous solutions

Connected solutions

Autonomous solutions

K 1 PACE – Charged with possibilities

The new Husqvarna K 1 PACE 94V battery-powered power cutter gives customers high performance with zero direct emissions, and lets them enjoy cleaner air, low vibrations and a quieter workday.

Power and performance – without the disturbance

Husqvarna’s new and complete range of Pro battery equipment is all about benefits: low noise, no direct emissions and less vibrations. With extremely low running costs and a long battery runtime, they offer high productivity – and the best-in-class results that our professional customers expect.

Intelligent garden care that saves water

The world-leading Gardena Smart System lets users take care of their garden remotely and automatically, connecting irrigation and robotic lawn mowing through a seamless customer experience. Using sensors, the system tracks temperature and soil moisture in the garden to optimize irrigation. Coupled with Gardena’s Micro-Drip watering solutions this means efficient watering with savings of up to an impressive 70 percent.

B-hyve^® Smart watering

B-hyve^® is an ecosystem of smart technology products from the newly acquired Orbit Irrigation, that provides smart water management for the garden. B-hyve^® products make customer's life easier, and help save water and money.

More than 2.8 million connected devices

Smart and intuitive digital services are an important part of the user experience and productivity linked to our products. With more than 2.8 million connected devices we continuously strengthen and add new services and functionality through the use of connectivity. We have one goal in mind – providing a best-in-class customer experience.

CEORA^TM Changing the game

CEORA^TM is a game-changing robotic mower for commercial turf care management. The innovative solution offers autonomous mowing of large areas (up to 75,000 m²) within virtual boundaries, constantly connected and managed through an innovative software solution. It gives turf managers and landscapers a new way of delivering great results with zero-emissions and low noise – at a strikingly low cost.

Power and control in perfect harmony

The new series of remote-controlled demolition robots are the very latest in demolition machines.

Autonomous solutions unlock hours of free time

The new Automower^® 415X is a high-performance premium robotic mower suited for the mid-sized lawn. Equipped with A.I.M, the latest mapping and navigation technology, it provides a great lawn exactly as you want it.

A quiet, versatile, and intelligent garden helper

The Gardena Sileno Minimo is ideal for small lawns, combining high performance and precision with convenient mowing and best-in-class low noise levels. Using the Gardena Bluetooth^® App the mowing robot works out the optimum grass cutting time and schedule to help you keep your garden just right.

Sustainable solutions fit for the future

Society is making a transformational shift to low-carbon, resource-smart solutions and we intend to lead our industry in that change. Through Sustainovate, we are challenging ourselves and inspiring others to transform and are pioneering solutions for step-change efficiency and smarter use of resources.

Our Sustainovate targets

Carbon

Drive the transition to low-carbon solutions

Target 2025

-0%

By 2025, reduce absolute CO₂ emissions across the value chain by –35% (scope 1, 2 & 3)

Circular

Rethink and redesign for a resource-smart customer experience

Target 2025

By 2025, launch 50 circular innovations

People

Inspire actions that make a lasting difference

Target 2025

By 2025, empower 5 million customers and colleagues to make sustainable choices.

Three strong and customer-centric divisions

Husqvarna Group operates on the principle of having strong customer-centric divisions with functions needed to achieve their goals.

Share of Group net sales*

Husqvarna Forest & Garden Division

A leader in forest and garden products for professionals and consumers. The undisputed market leader in robotic mowers.

Share of Group net sales*

Gardena Division

A leader in watering products, garden hand tools and smart garden systems for passionate gardeners.

Share of Group net sales*

Husqvarna Construction Division

A leader in the light construction industry for professionals.

* The divisions’ share of Group net sales adds up to less than 100 percent due to other Group items.

Husqvarna Forest & Garden Division

We aim to transform professional turf care with cost effective and sustainable solutions.”

Glen Instone

President

Husqvarna Forest & Garden Division

0.0

Net sales SEKbn

0.0%

Operating margin

Operating income and margin

SEKm

Gardena Division

It was another record year for the Gardena Division, where we continued our successful streak of many years of profitable growth.”

Pär Åström

President

Gardena Division

0.0

Net sales SEKbn

0.0%

Operating margin

Operating income and margin

SEKm

Husqvarna Construction Division

The K 1 PACE power cutter shows our ambition to lead the industry through innovation.”

Karin Falk

President

Husqvarna Construction Division

0.0

Net sales SEKbn

0.0%

Operating margin

Operating income and margin

SEKm