Summary of Husqvarna Group's Capital Markets Day 2025 Company Overview - **Company**: Husqvarna Group (OTCPK:HSQV.Y) - **Event**: Capital Markets Day 2025 - **Date**: December 10, 2025 - **Location**: Stockholm Key Points Discussed Industry Context - **Challenging Environment**: The company operates in a challenging environment characterized by geopolitical tensions, supply chain disruptions, and changing competition dynamics, particularly from Chinese competitors in the robotics space [12][13][14] - **Market Position**: Husqvarna is a global leader in outdoor power equipment and light construction, with strong brand recognition for Husqvarna and Gardena [20][21] Financial Performance and Targets - **Underperformance**: The company has been underperforming against financial targets, with insufficient cost reductions and competitiveness [4][12] - **New Financial Targets**: - Aim for organic growth of 3%-5% over a business cycle [56] - Target operating margin of 10% in the near to mid-term, with a goal to consistently operate above 10% [39][57] - Return on Capital Employed (ROCE) target of 15% by 2030 [40][57] Strategic Initiatives - **Cost-Out Program**: Launch of a SEK 4 billion cost-out program aimed at improving margins and funding innovation and brand investments [35][40][61] - **Focus on Aftermarket**: Emphasis on developing a world-class aftermarket service to enhance customer engagement and generate recurring revenues, targeting growth from SEK 9 billion to over SEK 12 billion [43][51] - **Product Portfolio Management**: Clear segmentation of business units into profitable growth, profitability improvement, and turnaround categories [51][44] Innovation and Product Development - **Investment in R&D**: Commitment to maintain R&D investment at around 5% of sales, with a focus on innovation to sustain market leadership [58][59] - **New Product Launches**: Introduction of AI-enabled robotic mowers and other innovative products aimed at enhancing customer experience and operational efficiency [24][25] Market Dynamics - **Shift to Professional Users**: Strategy to increase the proportion of sales from professional users, which are seen as more stable and profitable [26] - **Robotics Market Growth**: Anticipated growth in the robotics segment, with a market growth potential of over 30% [47] Sustainability Efforts - **CO2 Emission Reduction**: Achieved a 55% reduction in CO2 emissions since 2015, with a new target of 60% reduction by 2030 [49] - **Circular Economy Initiatives**: Aim for 25% of sales to come from circular offerings by 2030 [49] Organizational Changes - **New Management Team**: Introduction of a new management team focused on cultural change and operational efficiency [6][4] - **Focus on Execution**: Emphasis on faster execution and agility within the organization to meet strategic goals [6][38] Conclusion - **Path Forward**: Husqvarna Group aims to transform into a profitable growth company through operational excellence, strong aftermarket services, and strategic capital allocation [51][35]