Funding structure

The debt financing of Husqvarna is managed centrally by Group Treasury in order to ensure efficiency and risk control. Debt is primarily raised at Parent Company level and transferred to subsidiaries as internal loans or capital injections. In this proc-ess, various derivatives are used to convert the funds to the required currency. Short-term financing is also undertaken lo-cally, mostly in countries in which there are legal restrictions preventing financing through the Parent Company.

The bulk of the Group's financing is currently conducted through bilateral loan agreements and through a Swedish Medium Term Note program. In addition, the Group has a SEK 8,000m guaranteed syndicated credit facility, of which SEK 1,500m was utilized as of December 31, 2008. The major part of this facility matures in 2013. Due to the nature of its business, the Group has major seasonal variations in its funding needs. These variations have during 2008 been managed primarily by the use of the Group's commercial paper program and, to a smaller extent, by utilizing the revolving credit facility