Capital structure

Husqvarna's target is for the capital structure of Husqvarna to correspond to a long-term creditworthiness at least equivalent to BBB rating, according to the principles for credit assessment of Standard & Poor's or a similar agency's.

This implies that seasonally adjusted net debt in proportion to the earnings before interest, tax, depreciations and amortizations (EBITDA) is not to exceed 2.5 in the long-term. This target for financial indebtedness may be adjusted in the event of changes to the macroeconomic situation, or allowed to deviate for a shorter period of time due to acquisitions.

Adjusted financial debt, when assessing the capital structure, is defined as net debt adjusted for pension liabilities. Given the seasonality of the business, this key ratio varies substantially during the year. Husqvarna has not breached any external capital requirements during the year.