Financial goals

The group has a long history of stable growth and good profitability. The long-term financial goals that were established in connection with the stock-exchange listing in 2006 are unchanged.

Sales growth and operating margins have historically been in line with the Group's stated goals. Husqvarna's weaker performance in 2008 is was due primarily to the sharp, rapid downturn in demand during the year.

Growth in net sales

Husqvarna's long-term goal is to achieve annual organic growth of approximately 5% over the course of a business cycle. Husqvarna also aims at growth through complementary acquisitions.

Operating margin

Husqvarna's long-term goal is to achieve an operating margin of more than 10% over the course of a business cycle.

Capital structure

The goal is that Husqvarna's capital structure should correspond to the requirements of a long-term credit rating of at least BBB in accordance with the credit rating principles applied by standard & Poor's or similar institutions. It is considered that this currently requires that the long-term seasonally adjusted net debt in relation to operating income before depreciation and amortization (EBITDA) does not exceed a multiple of 2.5.

Dividend policy

It is the Board's intention to give shareholders a dividend that reflects a good direct yield as well as dividend growth, and to implement a policy in which the level of the dividend is linked to Husqvarna's earnings, financial position and other factors which the Board considers to be relevant. In the long term the annual dividend shall correspond to 25-50% of the Group's income for the period.