Annual Report 2009 - Husqvarna Group

Sustainable development Husqvarna Annual Report 2009 123
Economic responsibility
Husqvarna’s goal is to create value for stakeholders. The Group strives
to generates long-term economic value by achieving its stated financial
goals, but also by contributing to sustainable development.
Stakeholders
Most of the economic value that is created by sale of the
Group’s products is distributed to various stakeholders. Part of
this value is retained by the Group to finance e.g. investments,
product development and marketing. Added value created by
the Group in 2009 amounted to SEK 8,013m (8,682).
Customers
Husqvarna products are sold through major retail chains and
25,000 servicing dealers, and directly to construction companies.
These products are sold world-wide, particularly in
Europe and North America. Net sales for Husqvarna in 2009
amounted to SEK 34,074 m (32,342).
Employees
At year-end 2009 Husqvarna had approximately 15,000
employees (15,720), of whom 37% were in North America, 43%
in Europe and 20% in other parts of the world. In 2009, salaries
and employee contributions amounted to SEK 5,148m (5,159).
Husqvarna aims at providing employees with competitive
wages and salaries as well as an attractive workplace and an
opportunity for personal development.
State and municipality
In 2009 Husqvarna paid taxes in the amount of SEK 191m (479).
Taxes are paid in the countries where the Group operates, and
contribute to social development.
Suppliers
Of the Group’s total cost, 76% refers to purchases of materials
and services. For many suppliers, Husqvarna is a major customer
and therefore an important source of revenue. The
Group builds long-term relations with suppliers in order to
ensure quality and sustainability. Price is usually the decisive
factor for choice of suppliers, on condition that they comply
with environmental and social requirements.
Shareholders
Husqvarna generates value for its shareholders through dividends
and the share price development. In 2009 the A-share
trading price rose by 53%, and the B-share by 51%. The Board
of Directors has proposed a dividend of SEK 1 per share for the
financial year 2009. The Group’s goal is for dividends to correspond
to 25–50% of net income.
Value added
Distribution of Group sales
Stakeholder SEKm 2009 2008
Customers Group sales 34,074 32,342
Suppliers Cost of materials –26,061 –23,660
and services
Value added 8,013 8,682
Distributed to stakeholders
Employees Salaries 3,988 4,037
Employer contributions 1,160 1,122
State and Taxes 191 479
municipality
Credit
Interest 466 594
institutions
Shareholders Dividend 0 862
Total 5,805 7,094
Investments, R&D,
marketing etc, 7%
Salaries, 12%
Interest, 1%
Taxes, 1%
Cost of materials
and service, 76%
Employer
contributions, 3%
Dividend, 0%