Husqvarna AB Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : This is Johan Eliason at Kepler Cheuvreux. I understand that robotics is really important for your growth and margin target. And I think the professional opportunity in my eyes is especially important for you going forward. In your presentation here, you mentioned sort of robotics is important, and then you have aftermarket and services. If you look at the professional business, isn't services a big driver of profitability in that segment? And I was just wondering how you see the professional business developing? I mean we see successful equipment companies generating up to 1/3 from their revenues from aftermarket and services. Do you think that will be the situation for you as well in the professional robotics business? And will the service and aftermarket drive margins to the 30% and above the target?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : It's Johan here again at Kepler Cheuvreux. Coming back to robotics, which is obviously a hot topic these days. Now you talk about you're happy with this 15% market growth, but it will be tough comps. You mentioned that some markets penetration you are reaching is 45%, 50%, and you are looking into the renewal market. But really, I mean, if you look at the penetration in the number of gardens in the world with robots, what sort of penetration are we talking about then? Is it 1%, 5%, 10% of all potential gardens that would have this today?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : Johan Eliason, Kepler Cheuvreux. One thing that struck me when -- in the construction division, you highlighted your acquisition agenda that basically meant your margin has been impacted by PPAs by 150 basis points. And just talking about your new EBIT margin target. And I guess we will see some PPAs coming from Orbit as well in the bigger scale. We had another company yesterday redefining their margin target from EBIT to EBITDA. Are you definitely looking at the EBIT margin target, including PPAs and restructuring, et cetera? I just want get that confirmed. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 01, 2021 / 7:30AM, HUSQb.ST - Husqvarna AB Capital Markets Day Glen Instone - Husqvarna AB (publ) - CFO, Acting President Husqvarna Division and Senior VP of Finance, IR & Communication Our EBIT margin targets include the PPAs, yes. Could it be a possibility to look at alternative measures going forward as we increase our M&A activity? Absolutely. But today, the target includes the PPAs of Karin's business and PSr's recent acquisition.