Annual Report 2009 - Husqvarna Group

More documents

Recommendations

Info

12 Husqvarna Annual Report 2009 Financial goals Restructuring costs Announced in September 2008 Announced in October 2009 Costs in 2008, SEKm Annual savings, SEKm (full effect as of Q3 2009) Costs in 2009, SEKm Annual savings, SEKm (full effect as of Q1 2012) 316 450 452 400 • Mainly referring to capacity adjustments and personnel cutbacks due to the recession. Referring to structural changes 2009–2011: • Consolidation of production in Sweden and US. • Rationalization of sales organization.
Financial goals Husqvarna Annual Report 2009 13 The Group’s long-term financial goals were defined in connection with the listing in 2006 and have not been revised. Both sales growth and operating margin have historically been in line with these goals. In 2008 and 2009, the Group’s performance was weaker due to the recession. Restructuring In September 2008 the Group announced a number of measures aimed at reducing operating costs and adjusting capacity to meet prevailing market conditions. The changes were finalized during 2009. In October 2009 the Group announced a number of restructuring measures to be implemented in 2009–2011. These are aimed primarily at consolidation of production in Sweden and the US, as well as of the sales organizations in Europe and Asia/Pacific. The table below shows the costs and savings related to these measures. Long-term financial goals Net sales • Annual organic growth of approximately 5% over the course of a business cycle. • Additional growth through complementary acquisitions. Profitability • Operating margin of more than 10% over the course of a business cycle. Capital structure • Capital structure should meet criteria for long-term credit rating corresponding to at least BBB. This is considered to require that seasonally adjusted net debt in relation to EBITDA should not exceed a multiple of 2.5 in the long term. Dividend • In the long term the dividend should correspond to 25–50% of income for the period. To be achieved by Organic growth • Maintain a high rate of product renewal. • Further strengthen the premium brands Husqvarna and Gardena. • Improve service to customers. • Increase number of retailers and strengthen positions with existing customers. Increased cost efficiency • Establish global processes for e.g. purchasing, demand flow and product development within the framework of the new organization. • Create an integrated global supply chain to enable e.g. lower inventory levels. • Concentrate production and warehousing to fewer, larger units. • Increase the share of production and purchasing in low-cost countries. • Implement the Group platform for lean manufacturing at all plants. • Reduce the number of product variants and platforms. Goal achievement 2009 Net sales • Adjusted for changes in exchange rates and acquisitions, net sales declined by 8% due to lower demand. • Average annual organic sales growth was –0.4% over the past five years, and 3.2% over the past ten years. Profitability • Operating margin declined to 5.9%, excl. restructuring costs, due to lower volumes and negative mix. • Average operating margin was 8.9% over the past five years, and 8.8% over the past ten years. Capital structure • Seasonally adjusted net debt/ EBITDA was 2.4 at year-end. Dividend • The Board proposes a dividend for 2009 of SEK 1, corresponding to 64% of income for the year. • The pay-out ratio has been within target every year except for 2008. Growth of net sales Operating margin Capital structure Dividend % 8 % 12 Times 5 % 75 50 4 0 –4 >5 8 4 >10 4 3 2 1
Page 1 and 2: Annual Report 2009
Page 3 and 4: Net sales Operating income and marg
Page 5 and 6: Husqvarna Annual Report 2009 1 High
Page 7 and 8: History Husqvarna Annual Report 200
Page 9 and 10: Report by the President Husqvarna A
Page 11 and 12: Strategy Husqvarna Annual Report 20
Page 13 and 14: Strategy Husqvarna Annual Report 20
Page 15: Strategy Husqvarna Annual Report 20
Page 19 and 20: Husqvarna Annual Report 2009 15 New
Page 21 and 22: Husqvarna Annual Report 2009 17 Con
Page 23 and 24: Consumer Products Husqvarna Annual
Page 25 and 26: Consumer Products Husqvarna Annual
Page 27 and 28: Husqvarna Annual Report 2009 23 Pro
Page 29 and 30: A new series of zero-turn mowers fo
Page 31 and 32: Professional Products Husqvarna Ann
Page 33 and 34: The Husqvarna share Husqvarna Annua
Page 35 and 36: Husqvarna Annual Report 2009 31 Rep
Page 37 and 38: Report by the Board of Directors Hu
Page 49 and 50: Husqvarna Annual Report 2009 45 Gro
Page 51 and 52: Husqvarna Annual Report 2009 47 Gro
Page 53 and 54: Husqvarna Annual Report 2009 49 Par
Page 55 and 56: Husqvarna Annual Report 2009 51 Par
Page 57 and 58: Notes Husqvarna Annual Report 2009
Page 67 and 68:
Notes Husqvarna Annual Report 2009
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Husqvarna Annual Report 2009 89 Pro
Page 95 and 96:
Husqvarna Annual Report 2009 91 Def
Page 97 and 98:
Five-year review Husqvarna Annual R
Page 99 and 100:
Quarterly data Husqvarna Annual Rep
Page 101 and 102:
New reporting structure Husqvarna A
Page 103 and 104:
Corporate Governance Husqvarna Annu
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Board of Directors and Auditors Hus
Page 117 and 118:
Husqvarna Annual Report 2009 113 Gr
Page 119 and 120:
Sustainable development Husqvarna A
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Factors affecting forward-looking s
show all

Annual Report 2009 - Husqvarna Group

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?