Presentation of HusqvarnaStockholm, May 29-30, 2006

Bengt AnderssonPresident and CEO

The Husqvarna GroupGlobal leader in outdoor power products and

cutting equipment for construction and stone industries

Lawn and garden Forestry Construction

Key data, 2005Sales by business areaFinancial data pro forma

• Sales: SEK 28.8bn• EBIT: SEK 2.9bn• Net debt/equity ratio: 1.12• No. of employees: 11,700

Consumer64%

Professional36%

Forestry

Lawn & garden

Construction

NorthAmerica

ROW

Sales by region Production facilities

Europe7

North America

5

Rest of world

1Latin America

1

North America57%

Europe37%

ROW 6%

Interrelated end-user marketsForestry Lawn and garden

Construction products Garden productsGarden products

Interrelated end-user marketsForestry Lawn and garden

Interrelated:• Portable products• Distribution• Husqvarna brand

Construction products Garden productsGarden products

Strong brand portfolioGlobal Europe - Consumer

Professional and high-end consumer: Electric, high-endsegment:

Petrol, mid-segment:

NA andEurope:

Construction Garden productsUSA - Consumer

Petrol, mid-and low-endsegments:

TARGET

Successful acquisitions

Time

Portable petrol –professional

Electric

Wheeled petrol

Portable petrol –consumer

Professionallawn & garden

Constructionproducts

HusqvarnaPartnerJonsered

PioneerJobu

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

Norlett

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

Marazzini

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

Marazzini

PartnerIndustrial

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

Marazzini

PartnerIndustrial Dimas

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

Marazzini

PartnerIndustrial Dimas

CushionCut

Magnum

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan

WeedEater

AmericanYard

Products

Allegretti

McCulloch

Marazzini

PartnerIndustrial Dimas

CushionCut

MagnumDiamant

Boart

HusqvarnaPartnerJonsered

PioneerJobu

Flymo

NorlettPoulan WeedEater 1986

American Yard Products1988

Allegretti1990

McCulloch1999

Marazzini2001

PartnerIndustrial

Dimas1987

CushionCut

Magnum 2000

DiamantBoart2002

Yazoo-Kees1999

Bluebird2000

Leading global positions for 90% of sales

• Chainsaws

• Other portable petrol

• Tractors

• Lawn mowers

• Diamond tools for constructionand stone industries

Global no. 1

Global no. 1

Global no. 1-2

Global no. 1

Global no. 1

History of profitable growth

0

6

12

18

24

30

36

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Sale

s, S

EK b

n

0%

2%

4%

6%

8%

10%

12%

EBIT

mar

gin

EBIT margin

Sales

Organic growth driversGrowth in demandMarket share gainsProduct/market expansion

Sales CAGR 1996-2005: 7.5% (5.5% excl. acquisitions)EBIT CAGR 1996-2005: 10%

Note: As reported in Electrolux segment reporting. Corporate costs not included

Key drivers of performance

1 Strong position for Husqvarna brandin high-end segments

Successful product development

Global sales and service organization

Strong positions with leading retailers

Successful integration of acquisitions

2

3

4

5

Professional Products

9 5279 885

10 40815,4%15,8%

16,7%

2003 2004 2005

Sales Operating Margin

SEKm

Key demand drivers:• Logging activities• ”Prosumers”• Private gardens maintained

by contractors• Construction – infrastructure

and commercial buildings

Key performance drivers:• Brand• Growth• Price management

Major competitors:Stihl, Toro, Tyrolit

2003 2004 200535.3% 36.7% 38.5%

RONA:

Sales and margin(In comparable currency)

4.5% annual sales growth 2003-2005

Consumer Products

16 430

17 967 18 360

8,6% 9,1%

7,3%

2003 2004 2005

Sales Operating Margin

SEKm

Sales and margin(In comparable currency) Key demand drivers:

• Housing starts• Consumer spending on

home improvement• Weather

Key performance drivers:• Cost-efficiency• Brand• Price management• Growth

Major competitors:MTD, GGP, TTI

2003 2004 200525.5% 27.8% 18.6%

RONA:

*)

5.7% annual sales growth 2003-2005

*) Includes provision of SEK 40m for closure of Parabiago plant, Italy

1. Organic growth• Continued investments in product development• Expand distribution network• Make full use of Husqvarna brand’s potential

2. Maintain high margins• Focus on growing high-margin businesses• Price management• Cost-efficiency

3. Complementary acquisitions

How to meet our targets

• Strong expertise - Engines for portable products- Working close to professional users

• R&D concentrated to few resource centers• High cost-efficiency based on large

volumes

Product development

Strong global sales network

Strong positions with leading retailers in both Europe and US• Sears – Husqvarna’s largest customer• Growing shares with other major retailers

Strong global dealer base• Loyalty and stability• Decades of investments to develop

LCC challenges and opportunities

Pricing pressureNew competitors

Industry is relocating

Cost benefits

LCC challenges and opportunities

Husqvarna´s strategy

• Continue to strengthen brand position

• Add value for retailers and consumers- Excellence in products and services

• Optimize pace of transfer to LCC manufacturing and sourcing

Long-term financial targetsAnnual organic growth of approx. 5% over abusiness cycle

Growth through complementary acquisitions

Operating margin of more than 10% over abusiness cycle

Dividend to correspond to 25-50% of net income

Presentation of HusqvarnaStockholm, May 29-30, 2006

Bernt IngmanCFO

Husqvarna Group, Q1 2006Pro forma

SEKm 1st QuarterChange,

%Adj.*)

Change2006 % of

sales2005 % of

sales

Full year2005 % of

sales

Net sales 9 338 7 880 18.5 8.2 28 768Gross Profit 2 218 23.8 1 935 24.6 7 659 26.6

EBIT 929 9.9 814 10.3 14.1 6.7 2 871 10.0

Income after fin. items 792 8.5 676 8.6 17.2 – 2 392 8.3

Income for the period 546 5.8 453 5.7 20.5 – 1 603 5.6

Key ratiosEarnings per share SEK 1.85 1.53 5.46Equity per share, SEK 17.80 12.07 16.07ROCE, % 23.4 27.1 23.5

*) In comparable currencies

Consumer Products, Q1 2006

• Strong pre-season sales inboth Europe and North America,based on improved shareswith retailers.

• Higher operating income,margin in line with previous year.

Q1 2006 SEKm

Sales 6,540 20.7% EBIT 503 19.5%Margin 7.7%

In comparable currencySales 9.1%EBIT 8.6%

Change

Professional Products, Q1 2006

• Higher sales and EBITfor chainsaws, in comparison with strong Q1 2005

• Strong sales and higher EBIT for both Lawn and gardenand Construction

• Overall, slightly lower margindue to product/countrymix effects

Q1 2006 SEKm

Sales 2,798 13.6% EBIT 455 7.8%Margin 16.3%

In comparable currencySales 6.3%EBIT 3.9%

Change

Mar 31 Mar 31 Dec 31SEKm 2006 2005 2005

Intangible assets 2 293 1 963 2 182Tangible assets 3 830 3 164 3 846Other fixed assets 1 019 952 931Inventories 6 240 6 022 6 264Accounts receivable 7 882 7 030 3 325Other assets 446 588 596Liquid funds 1 057 1 061 1 104Total assets 22 767 20 780 18 248

Total equity 5 264 3 567 4 717Int bearing liab. 10 983 10 469 6 404Provisions 1 450 1 631 1 473Accounts payables 3 036 2 999 4 222Oth non int. bearing liabilities 2 034 2 114 1 432Tot equity and liabilty 22 767 20 780 18 248

Net Debt 9 926 9 408 5 300Net Debt/Equity 1,89 2,64 1,12Investments 266 253 1 259

Balance Sheet, Pro forma

Seasonality

0

2 000

4 000

6 000

8 000

10 000

12 000

Q1 Q2 Q3 Q4

2003 2004 2005 2006

SEK mNet Sales

0

200

400

600

800

1 000

1 200

1 400

Q1 Q2 Q3 Q4

2003 2004 2005 2006

SEK m

Operating Profit

Average of Q1 Q2 Q3 Q4Total Year 29% 34% 21% 16%

Average of Q1 Q2 Q3 Q4Total Year 29% 39% 21% 11%

Strong seasonal variationsFirst half represents approx. 60% of sales and 65% of operating profit

SeasonalitySales, EBIT and operating cash flow

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec

-50 000

-40 000

-30 000

-20 000

-10 000

0

10 000

20 000

30 000

40 000

Distinct seasonal variation pattern:

Sales; approx. 60% in first half of the year

Operating profit; approx. 65% in first half

Operating cash flow; approx. 100% in second half

EBIT/ OP CFSEKm

Net SalesSEKm

Summary• Leading market positions

• Strong brand portfolio

• Expertise in product development

• Strong distribution network

• Organic growth

• Complementary acquisitions

• Strong, stable cash flow

Create value for shareholders through good growth, high profitability and strong cash flow

The Husqvarna GroupGlobal leader in outdoor power products and

cutting equipment for construction and stone industries

Lawn and garden Forestry Construction