Husqvarna AB (publ) (HUSQ-B.ST) Earnings Call Transcript & Summary

Good morning. Welcome to Husqvarna Group's Capital Markets Day 2025. Thank you all for joining us here in Stockholm today. And thank you for watching us online. My name is Emelie Alm, and I am Head of Investor Relations. Our aim today is to increase the transparency level and also the understanding of the company. And we will also share a clear road map to our transformation to profitable growth. We have a full schedule today. And first, you will hear our CEO, Glen Instone, and also our CFO, Terry Burke. This will be followed by a Q&A session. And after that, we will head upstairs for our product exhibition. This product exhibition will mean a 1-hour break for those, who are watching online. After this, at 11:00, we will have our strategic deep dives with our divisional Presidents followed by a Q&A session. And after that, we will have a lunch to go and you will also be able to revisit the product exhibition if you are attending in Stockholm. So with that, I would like to invite our CEO, Glen Instone, to the stage.

Good morning.

Good morning. So Glen, you've been the CEO now for the company for a couple of months. Could you please share your first reflections?

Absolutely. So I think we come from a strong foundation. That's what we should say. We've been innovating our products for many centuries actually. And we've been investing in our brands. We've also been over delivering on our sustainability targets. . And of course, that's good. That's the very positive things. I believe we'll be changing the organization to really get closer to our end customers. So we've reorganized over the recent years. But the obvious elephant in the room is we've been underperforming on our financial targets, and that's what we've got to be very clear on. So we are underperforming. We have not been taking sufficient cost out of this organization. We haven't been competitive enough. That means we haven't been investing sufficiently in innovation and in our brands. So whilst we've done a lot of innovation and brand investments, we need to do more.

And we also have quite a new management team in place to execute on this strategy.

We do, and I'm really pleased that at least 6 of my 7 colleagues are here in the room today. And before I introduce the management team, we -- leadership is going to be key in this next phase. We're going to have to do a lot of change. The culture in the organization has got to change and got to be much faster. So execution and focus is something which we're going to speak a lot about during the course of the day. . So the new management team and some are actually less than 12 months with the company. But Terry Burke will be on stage soon, CFO, who I think many of you know. And then we have the 3 divisional presidents. We have Maha, Gardena, Omar Attar Forest & Garden; and Karin has on Construction. So all you'll get to meet today. And then we also have Sophie, our General Counsel and Robert, our CIO. The only one missing today is Maria, who is on our company trip in the U.S. But the other 6 colleagues, you'll get time to mingle with them.

All right. Thank you for that intro. Glen, With that, I will hand over the stage for your presentation.

Thank you. So again, a warm welcome both those in the room but also those who are following online. So really pleased to stand here today and talk about our next phase for this amazing group, this amazing company. But it will be a miss of me not to talk about our existing environment where we're operating in. Of course, it is a challenging environment that we operate in today, and that is not new to anybody. The geopolitical tensions bring uncertainties and that affects the consumer buying power on the consumer sentiment. And that is a reality we have. Competition has changed in recent years. I think some 5 years or so ago, we started to see more of the powerhand tool players coming particularly into the battery space. And in more recent years, we've seen a lot more Chinese competition coming into the robotic space. But that is our competitive landscape. I mentioned geopolitical tensions causing some uncertainty. But of course, the knock-on effect of that is that we've had a lot of tariffs and tariffs are something which we've been talking about now for a few years. And I guess they're here to stay. So that's the environment we have, but also FX. FX is, of course, it swings both positive and negative, and certainly during the course of 2025, had been a negative impact to the Husqvarna Group. And of course, post the previous Capital Markets Day, we came into a very large period of uncertainty on supply chain disruptions, and that continues to play a part and continues to be the environment that we operate in. Now as such, we have been underperforming. Again, I mentioned this a few minutes ago, we have underperformed ourself financial targets. And today, I want to really give you some hope and credibility about our path forward to achieving the financial targets we set and the ambitions that we have. Emelie mentioned something once you kicked off to say we want to be much more transparent. And we go to market, and we have 3 autonomous divisions. Husqvarna Forest & Garden, Husqvarna Construction and Gardena. That is the 3 divisions, and they are our 3 reporting units, all autonomous P&Ls. That has enabled to get much closer to the different end customer groups that those 3 divisions operate with. However, what we would like to show now actually below the 3 divisions, how we govern this organization, how we govern this organization even more robustly going forward and that is by what we would call business portfolio units. Of course, given our underperforming margin performance right now, then all of our business portfolio units are not green, I guess you're not surprised about that. Within the Forest & Garden space, we have 4 business portfolio units, residential robotics, which we'll discuss a lot today. Professional robotics, a fairly new segment of ours. We only actually entered this market in 2019. Core handheld, which is really part of the heritage and what we bring forward for many, many decades and last but not least, our core wheel. The latter segment, the latter business portfolio unit where we have the most headwinds and the most challenges. What each of the divisional presidents will do is actually de dive on each one of these and actually what we're going to do. So whilst I will talk about what the divisional presidents will go much more into the how and what we're going to do to address these areas. Gardena likewise has 4 business portfolio units, watering, where we have a clear #1 position, hand tools where we also have a clear #1 position and both performing very well. And then we have what we call our powered garden, anything electric in the garden under the Gardena brand would be what we class as powered garden, including the Gardena branded robotic mowers, and they're actually what we would class as a turnaround case. And Maha will come back exactly what we're going to do to turn this around. And last but not least, by way of acquisition back in late '21, early '22, we acquired Orbit. This actually made us the #1 residential player in irrigation in the U.S. So was a strategic bet that we took, and we actually have some profitability uplift to make within the Orbit business portfolio unit. Sorry for the BPU, but it's very long to say business portfolio unit all day. So 3 BPUs. One is sowing and drilling, where we have a clear #1 position. but also it is profitable, EBIT margin accretive to the group. Then we have what we would call surface preparation, also a #1 position, but with some profitability improvement targets and uplift. And last but not least, compaction, concrete placement and demolition, actually quite a broad segment where we have a #4 when it comes to compation and placement of our #2 position in demolition. So some profitability uplift and turnaround required there. So we're going to take you through each of these business portfolio units and what we're going to do to really improve the margins going forward. In a slightly different view, that is how it looks. And that is, therefore, the circles are bubbles there being the Forest & Garden division, the Turquoise ones, Gardena and the gray ones Husqvarna Construction. So all playing either in a profitable growth where we want to get above GDP growth. These are clearly markets that we feel we can have growth beyond GDP. Very structural increases, we feel are possible. So on the profitable growth, we will drive even more focused and really drive our capital allocation towards those areas. In the middle section, which we call profitability, increased profitability is where we have a strong market position, #1 or #2, but we need to really work with our cost out and improve the profitability to really double down on our #1 or #2 positions. And on the left-hand side of the page is our clear turnaround cases. Just so happens as one per division. And it's very, very important that we turn these around. And just to be clear, if we execute on the turn actions and it is not sufficient, then of course, we will look at all end of actions, and that could mean we'll exit some segments. But right now, our focus is around turning around these areas. Orbit is a business we acquired in late 2021 and is the U.S. irrigation brand that we acquired. So as I mentioned, we have a strong foundation that we need to continue building on. And for those who are who know Husqvarna Group, this is going to be very repetitive to you. For the ones who are fairly new to the case, I'm going to give a very quick recap of the Husqvarna Group is. We are a global leader in the outdoor power equipment space. We're also a global leader in the light construction industry. So we come from a very strong starting position in terms of the industries we operate in. We have 2 extremely strong brands, Husqvarna brand and the Gardena brand, 2 extremely strong brands, and we'll talk more about that as we go through the course of the morning. As I mentioned in my introduction, innovation is going to be key going forward. We must continue to innovate, continue being the technology leader. We've been doing this now for 3 centuries and need to continue doing so as we take this next phase. Quality is everything to us. We must have the premium quality. By having premium quality, we become the trusted partner of our trade partners and our customers. And what we also have very, very strong is a very strong global reach. We have over 100,000 point of sale globally, where you can get our products and services. And that is a big, big asset to this company, and I'll come back to that later. Just geographically speaking, about 60% of our sales are in Europe, about 25% of our sales are in North America, leaving around 15% of our sales in what we call Rest of World. So moving over to our existing jump-off point. I mentioned that we want to have a #1 or #2 position. That is a market position. I'm very proud to say, actually, we have 80% of our sales today in #1 or #2 positions. So we come from a position of strength. We need to continue capitalizing on that. Very clear examples is robotic. We are global #1. Watering and smart watering systems, again, we are global #1 in both the Gardena and the Orbit brand. And in several of the light construction segments were also a global #1. Global #2, when it comes to professional handheld. I mentioned the importance of brands. We will continue investing in our brands. That's going to be very, very important to us. In fact, we'll go as far as saying we've been underinvesting in recent years. So we want to actually increase the investments in our brands. This is where we really connect with our end customers, particularly the consumer customers that we have. Our 2 core brands are Husqvarna and Gardena. Innovation. Innovation is what's been driving this company, as I said, for all 3 centuries. We started off and the page logo of course, is a gun sight. We started off making guns for the military, moving into applications like saw machines, bicycles, motorcycles, an order cycle into a chain saw, there's a lot of similarities. It's a 2-stroke engine, driving the drivetrain there and redriving this bucket and the bar and the chain. So a lot of similarities. And that brought us in 1959 to actually bringing the chain saw in the marketplace and then developing into becoming the outdoor leader in outdoor power equipment. What you will get to see today actually in the breakout, we have a product acquisition area, where we're going to showcase our next level of innovation. The next level of innovation is on the bottom right of the page here. Firstly, we have our AI-enabled vision robotic mowers. This we believe, is breakthrough for Season 2026. This will be available both for the residential users and our higher premium products, but also for our professional users, really making a difference to our customers. What we also have is the auto grinder. It is a big machine. So you're not going to get to see it and touch it in person, but you'll see it on the screen. This is a self-operating flow grounder again, market-leading breakthrough technology, really satisfying and serving a fantastic purpose towards our end users. So some great innovation coming through. And as I said, we must continue fueling the innovation pipeline. This is absolutely critical to this group. That's going to be a big part of what we talk about as we go through the day, investments in brand, as I mentioned, but also investments in R&D. And Terry will actually take you through some of those numbers later in the presentation. So we talked about transparency. We talked about the business portfolio units earlier in the presentation. And now we're really trying to just look at this in a more product category perspective. 40% of our sales are to professional users, people who are using our products for a working purpose. Not maybe like you and I who are more residential users, and that is 60% of our business, both very, very important. What we do want to do with this next phase of the strategy is to increase the weighting towards professional users. And the reason for that is pretty obvious. We believe there's more customer stickiness. We believe there's more parts and accessories possibility, and therefore, we get more recurring revenues. So we do want to overweight the growth towards professional products. But that does not undermine or underestimate the importance of our residential products where we have market-leading positions. Some 23% of our product assortment is handheld. And handheld, of course, means a lot to many, many people. It is where Husqvarna started for many, many people, and it continues to be a very strategic important area to us. Both from a combustion engine technology perspective, but also battery technology. We will be present with the applications that the customer wants, be it in combustion engine technology or battery technology. Wheeled represents around 18% of our business. It is actually a turnaround case. Much stronger in Europe, stronger profitability, I mean, by that, much weaker in North America. That is a turnaround case representing some 18% of our revenues. Robotics, we've been talking about this in each of our quarterly reports, now representing 16% of our business. so close to SEK 8 billion from a category we created in 1995. Watering, which happens to be about 60% of the Gardena business, I say, very, very strong global leader, #1 position. Like Construction, #1 or #2 position in most of our categories there, representing roughly 15% of our business. And last but not least, might deem a fairly small part, but hand tools, where we play with the Gardena brand, and we have a global #1 position, very, very strong in Europe, in particular. Underpinning all of this is aftermarket solutions. And this is something which we're going to talk a lot about today, particularly in Husqvarna Forest & Garden, Husqvarna Construction space. The aftermarket to us is going to be a differentiating factor. I mentioned the strong global reach. This is where we can really differentiate versus the competition. We cannot just have a good aftermarket solution. We're going to have travel world-class aftermarket solution. That enables us to be even closer to the customers, but of course, get those recurring revenues that we talked about. So that represents today around 20% of our business. Of course, it's part of all the product groups, but really on its own is about 20% of the business. I mentioned quality earlier, and quality to us is actually fundamental because poor quality products simply will not wow our customers. When we bring innovation to the marketplace, we hopefully make a difference to our customers. When we bring a premium quality product to the marketplace, then we really become the trusted supplier and a trusted partner to our customers, and that is what we aim to be. There's a proof point on the pitch there. We call it Ciara. Ciara, for those who were at the Capital Markets Day 4 years ago is a product we launched. You also see it in the breakout session. It's a fairly big product. And really, this was the first breakthrough product, capable of come up to 75,000 square meters. So really breakthrough in terms of large green spaces. What it actually did is create a big pull from the Golf business. In 2021, we actually said we were targeting sports facilities, sports and facilities. It's 2 areas. But golf became a very, very big pull in the past 4 years. So the golf industry is really being attracted to what we're offering. And why this is important is over 1,700 courses globally. I feel we are their trusted partner to satisfy their needs each and every day, and we continue to grow this 1,700, quite a rate of knots. Other proof points, 80% of our robotics fleet today is still in use after 9 years. I think that is a great proof point around a performance-driven solution. This is not a product that lasts 2 or 3 years. 80% of our products are still in use after 9 years on robotic mowers. I mentioned a differentiating point on aftermarket and the way we will satisfy our aftermarket differentiation is by utilizing our strong global network of trade partners. We are present today in over 100 countries. That is truly global market reach, but we also have over 100,000 points of sale. 65,000 points of sale in the retail business, around 25,000 points of sale in the dealer business and about another 10,000 points of sale in the more direct rental account type structure. That becomes quite different when you look at the sales profile, actually, 60% of our sales today going through the servicing dealers. And the reason I've seen servicing dealers is that will provide a servicing aspect. They all provide the aftermarket support that we need to make the true difference to our end customers, and that is absolutely critical to us going forward. 25% of our business is towards retail channels, the more modern channels. And today, about 10% is direct e-commerce. And for the extremely observant ones in the room, you've quickly added that up and said there's 5% missing. That's correct. That is actually other channels like the rental accounts. So 60% of the business going through our servicing dealers super important when it comes to creating that differentiation by way of aftermarket. Innovation. I will keep saying innovation numerous times throughout this day and throughout this morning, we must continue being the sustained technology leader. I'm sure many of the words on this page are not so surprising. There is a move from petrol-to-battery products. There is a move towards more autonomous solutions in many, many industries. Digital, AI, all bringing new breakthrough connectivity, if you like, towards the end customers and bring some new breakthrough advantages. And of course, sustainability and circularity become a very key pot, not just Husqvarna Group, but to this world, and we're going to cover that in more detail. We must continue being the technology leader, which is why the investments in innovation are also important to us. So we'll talk later in the presentation about the size of those investments, but this is a fundamental to us to succeed. What's going to be important for us to really succeed with innovation is to accept and embrace partnerships even more. partnerships will make us faster, make us faster to market, but faster will actually breakthrough innovation. So we will embrace partnerships at a much higher pace than we have in the past. That's going to be very, very important. So I now come to really the strategic page that we will start with now, and we will close with later in the morning. For those who have read the press quickly this morning, we want to transform to profitable growth. That is the clear ambition for Husqvarna Group, and we must transform to profitable growth. Three clear areas to our strategy. Firstly, operational excellence. And by this, I mean a true transformational cost-out program. Today, we announced a SEK 4 billion cost out program. I'll come back to the details on that. The reason this is so fundamentally important to us, this is the fuel. This is what's going to fuel this company in the coming period. One, to support the margin element, absolutely needed, but two, to support those investments that I referred to, innovation and brands, investments we must make to keep this growth engine, and we must get back to growth. Just to be very clear, we must get this company back to growth. We then have a very clear differentiator supported by that strong global reach, our aftermarket. Again, we've got to have world-class best-in-class in our industries when it comes to aftermarket. That is a differentiator. It's actually quite a high barrier to entry. Our competitors do not have 100,000 point of sale. We do. And that is a strong barrier to entry and something which we must capitalize upon. So aftermarket in Solutions will be a strong, strong differentiating point in the strategy phase. And last, but certainly not least, the third part of the strategy is that whole transparency topic I mentioned, but it's not just transparency, it's actually what's going to drive our capital allocation. And that means we're going to be much more strategic with our portfolio management, where I talk about that profitable growth segment, the profitability improvement segment and the turnaround segments. So much, much more focused when it comes to our product portfolios. And that is what will take us towards market leadership. And this is what we believe is a very execution-orientated growth strategy. Supporting those 3 areas that I mentioned, of course, sustainability is really at the heart of what we do. We can make a true difference in this world with our sustainability efforts, and I'm super proud of what we've done to date. And we'll show our next phase of ambitions as well. Innovation and brand, I think I've talked a lot about, but this, of course, is a fundamental. And last but not least, I mentioned this in the intro with Emelie. We must transform the culture in this company. We need to be faster, we need to be, we should be more agile. And that is going to be key to succeed. And as such, today, we launched new financial targets. In recent periods, we have not been growing sufficiently. It's been fairly flat our growth. And of course, we don't feel that is sustainable either. We must get this company back to growth. So we set a target of 3% to 5% over a business cycle. And this is applicable immediately. We must get this company to growth immediately. We have also adjusted our operating margin target. Previously, we started in the peak of COVID. That is what it is, and Terry's going to take you through some of the periodization of our performance. But what we said the financial targets that we feel are credible, and we have a very strong rodent to achieving them. And that is what I really want to bring through with the messaging. First of all, we need to get to 10%. That's a, and that is in the mid- to near term, we need to get 2%, so near to midterm. And then we need to operate consistently above 10%. That's what's going to be important to us. Last but certainly not least, we are adjusting our capital efficiency metric. We're going to talk about return on capital employed, very, very important. We want to have a strong balance sheet. We want to really be much more focused with our capital allocation towards the profitable areas, and therefore, get much more return when we look at this. And therefore, we set a return on capital employed target of some 15% over a business cycle. The cost-out program I referred to, and it's a really transformative cost-out program. Today, we launched what I believe is the biggest cost-out program in Husqvarna Group's history. SEK 4 billion cost-out program. This is needed, needed, as I mentioned, one, to expand our margin, to be more competitive but also to fuel the growth and the innovation need that we have, brands, innovation and really fuel our growth engine. SEK 4 billion is a minimum, let's call it, over SEK 4 billion. And this is a real prerequisite. Whilst we set a 2030 target for this, which seems quite a long time frame, 60% of this program is going to be achieved in the midterm. And Terry is going to take you through some more timing. When we look at the SEK 4 billion, there's really 5 key areas: sourcing, which will represent on 35% of this target, sourcing in the smarter way, getting much best cost suppliers. They don't say low-cost suppliers, they're best cost suppliers. It's really net cost reductions we're looking at here. Design to value working in a smarter way. How do we become more modularized, how do we take out low-performing SKUs? How do we really take out some of the noise in the system to be more -- even more focused that's representing around 20% of this new cost-out program. Manufacturing efficiency is also very, very important. We want to take out also a further 20%. What's a good example this year in Orangeburg, where we outsource to a contract manufacturer. And more recently, we announced the closure of a handheld component facility here in Sweden, where we can get more efficiencies into the supply chain. Logistics, very, very important to us. We must use people who do logistics part of the day job. People who are experts at logistics. And therefore, we will be using much, much more third-party logistics support, representing around 15% of this program. And last, but certainly not least, organizational efficiency. How we actually organize even smarter and more efficient, and that represents around 10% of this program. Truly underpinned by complexity reduction, where we're going to aim to take 20% of our product portfolio out, again, really increasing the focus on the good stuff. That's what we want to do. A differentiating point I mentioned was aftermarket. And all 3 divisions, but particularly the Forest & Garden and Construction divisions will give some good examples of this. The reason aftermarket is important to us, it is a differentiating point. Also on the graph here, you see it's been fairly sticky despite all of the headwinds we've had in recent years. Our parts and accessories aftermarkets have been growing very nicely. We need to continue this. About SEK 9 billion or 20% of our business today, ambition to grow to over SEK 12 billion in the coming phase. Super important to us, deeper customer engagement, really leverage that installed network we have and really work with our customers to be even more productive. That's what they need. When we look at the strategic portfolio management, again, to really put things in fewer buckets now to try and show that we have a very clear focus. We have 1 bucket which is robotics, both residential and professional, high growth potential, structural change in the marketplace beyond GDP growth. That is where we will clearly want to catch that strong market momentum. Aftermarket, I think I've talked a lot to need to continue with this momentum we've built and continue driving that towards the SEK 12 billion. Number three, these are product groups that are more growth in line. So slightly above GDP growth where we need to capitalize our #1 or #2 positions. Likewise, in the handheld segment, Again, we will be present, whether that's internal combustion engine technology or battery technology. The customer will decide, but we're going to strengthen our leadership positions in both. And last but not least, wheel basically a turnaround case, we must take drastic cost out of the system, and that will improve profitability. And by doing this, 2030 looks quite a different company. We've got more sales when it comes to Pro. I mentioned we're going to overweight towards Pro, which means we should have over SEK 25 billion of Pro sales by 2030. Stronger aftermarket business, but a much stronger mix. And this is going to be very, very important as we take this next phase. So this is the mix we anticipate for this company by 2030. Just doing a deep dive on one particular area, robotics. We will touch robotics a lot in the Forest & Garden presentation and the Gardena presentation, but I want to actually paint the picture of what the robotics market looks like. In our terms, around 15% of our sales today are professional robotics of SEK 8 billion, just over SEK 1 billion. That is in a market that we believe is going to grow even faster, above 30% market growth potential. The way we serve that market today is through what we call professional dealers. It is not the normal dealers. It is actually the premium servicing dealers. People who have people in the marketplace, selling, servicing on-site support, very, very important. Then we have the premium residential segment. And this is about 70% of our business today. 70% of our SEK 8 billion roughly SEK 6 billion. That is where we play predominantly with the Husqvarna brand, global #1 position, and we expect market growth of around 15%. Then in the more mid segment where we play with the Gardena brand, that is where we have even more competitive pressure. And that is where we actually only have a #3 or #4 position. We expect that market to continue growing. Competition is coming in there absolutely. So we see that. We expect this segment to continue growing. But again, I want to put it in a very clear context of where we play and how we go to market. At the lower end of our offering, much more in the residential space, of course, but going to market through retailers and e-commerce. At the premium end, where it needs more one-to-one, if you like, management really supporting the customer is where we use our dealer network and our premium dealer network in many places. Sustainability is something, which we believe is a differentiator as well. And we've been doing extremely well with our sustainability efforts. We've reduced our CO2 emissions since 2015 by 55%. Very, very proud of that, actually. Today, we launched a new financial -- sorry, new sustainability targets as well as the financial targets, and this is to actually improve our CO2 emissions to 60%. And -- so versus a baseline of 2015 improved by 60% by 2030. What I'm also proud about actually is that we've continued to contribute to society by way of circular offerings, how we can actually put more products into life for a second life, how we can have more reuse of material, how we can use more bio-grade material in our products. And we affected by 2030, some 25% of our sales are coming by way of circular offerings. On the left-hand side of the page, just some proof points. Actually, we've been in the -- the Time Magazine as one of the world's most sustainable companies in 2024 and again this year and a AA rated with the MSCI. So some clear proof points that we actually are very, very credible when it comes to our sustainability efforts. So before I pass over for a financial deep dive, I just want to then really come back to the summary slide. We have a clear strategy to transform this group to profitable growth. Three fundamental areas: operational excellence, which is our transformative cost-out program, SEK 4 billion, to support the margin, but also to support the investments needed in innovation and brand. We have a clear differentiator supported by our global reach, which aftermarket, we must have a best-in-class aftermarket. Why -- it drives deeper customer engagement and drive deeper recurring revenues, more recurring revenues. And we will have a much more clear capital allocation model to drive our strategic portfolio going forward. Three clear areas: profitable growth, profitability improvement or turnaround. So a very, very clear segmentation, how we look at our business portfolio units. And this, ladies and gentlemen, will take us towards profitable growth for the Husqvarna Group. Thank you.

Thank you, Glen, for sharing. Next up, I'm pleased to invite our CFO, Terry Burke, to the stage. So please, Terry?

Good morning, everybody. Nice to see you all. Maybe we should start with just having a little bit of a reflection of what has happened over recent years. Actually, a lot has happened over recent years. If we start in around 2018, 2019, we made a conscious decision to dissolve the Consumer Brand division and to consolidate into the 3 divisions we have today. We have the Husqvarna Forest & Garden division, Gardena division, the Construction division. At the same time, we exited around SEK 3.5 billion of consumer branded handheld and wheeled products. . So already back then, we were starting a transformation. Then we came into 2020. A lot of uncertainty as COVID started to take effect. And then we actually enjoyed a very positive impact from the pandemic. We have the stay-at-home trend. People were outside in their gardens. They were not traveling, they're not going to restaurants. They had disposable income, and they wanted to invest in Garden products. That was really in '21 was the peak of our positive effect from the pandemic, and we achieved an operating margin of 12.1%. Maybe also worth pointing out at the end of 2021, we acquired Orbit, which is a U.S. irrigation business. And that actually made us the group and that Gardena division the global #1 in residential watering. So that was a big important acquisition for us. Then we moved into the years of, I would say, a lot of turbulence. If we just reflect on 2022, we had a lot of supply disturbances, particularly in semiconductors, which restricted our ability to manufacture and supply robotic lawnmowers. There were other supply disturbances as well, but that was really the main one. At the same time, political tensions escalated and of course, we all know the Russia and the Ukraine situation, in particular, had quite an impact. And that impact really carried into '23 and '24 high energy prices, high inflation, high interest rates and a weakening consumer demand, and weaken consumer sentiment. And that really impacted our business. Maybe also worthwhile to point out at that time around '23, '24, we exited another SEK 1.5 billion of petrol wheeled product in a U.S. specific channel partner. So again, we exited some of our unprofitable business. Moving into 2025. And in the 9 months that we've had in '25, that continued uncertainty that continued weak sentiment has impacted our business as well. We've had the tariffs. U.S. implementing the tariffs has, of course, created a lot of disturbance with our supply chain and a lot of turmoil in the markets and in particular, a weak U.S. consumer sentiment. Also impacted was the weakening U.S. dollar. So in those 9 months of 2025, we have had a negative impact from currency and tariffs of more than SEK 500 million. Quarter 4, I'm sure people are thinking, how is quarter 4 shaping up. It is still a heavily uncertain market. We still have weak consumer demand. We will also still be impacted from currency pressures and tariff pressures in quarter 4. So I think it's important just to set that scene and to be clear. Really today is about looking ahead. It's about looking at the future, the longer term. Let's hope we get to some kind of more normalized situation and improved consumer sentiment. And our ambition is to get back to profitable growth, and we need to drive cost out to this organization to be cost competitive. And we need to be very targeted in specific actions on our business portfolio units, whether it be a turnaround, whether it be improved profitability or profitable growth. With that, we believe we can get to growth and an improved margin. As Glen has already shown, we have 3 new financial targets. We start with the growth. We have an ambition for organic growth of around 3% to 5%. That is above market. We've had 4 years of weak sales. I have explained a little bit of some of the reasoning behind that. But we need to get back to growth. This company needs profitable growth. We'll do that. We have great product innovation. Every year, we bring fantastic new products to the market. We play in attractive market segments, and we will continue to invest in our innovation and our brand and marketing to stimulate growth. Operating margin, we picked, as I said earlier, we picked up to 12.1% at the pandemic time. Since then, margins have declined. And now we need to turn that. We need to turn that trend around and that will be really driven through profitable growth and through the cost-out program. We aim to get to 10% in the next 3 to 4 years. And thereafter, and very important, we expect to continuously maintain above 10% on average over a business cycle. Return on capital employed, a new measurement for us, and this is really important to us to ensure we allocate the capital in the right areas to maximize our returns. We clearly can be double digit in this area. If you look at the chart for many years, we have been double digit. Of course, we have now dropped to a role in 12 of some 7.3%. And -- but through that profitable growth, through improving our margin and becoming more asset-light, we will get back into double digit. I expect us to reach 10% return on capital employed in the near to midterm and then to reach 15% by 2030. It's very important that we maintain our investments. We will drive the fuel for growth through a big cost-out program. And some of that cost-out program needs to be reinvested back into the business to stimulate the growth and to improve our margin. If we look at R&D, first of all, we currently invest around 5% of our sales goes back into R&D. We're actually quite pleased with that number. It's a big number. And as we grow our business, we will maintain 5% R&D ambitions. We have great innovation and we need to continue to bring innovation to the market to meet our customer demands. 80% of our sales come from market leadership position. And to stay a market leader, you have to innovate, you have to bring new products and technology to the market. Brand and marketing. We are currently only around 3% of our net sales in brand and marketing. We need to increase this. If we are serious about profitable growth, we also need to encourage and drive brand awareness and drive customers to buy our product. We will increase brand and marketing to 4% to 5%. We have 2 core brands, Husqvarna and Gardena, and they account for more than 90% of the group sales. So we will focus our brand and marketing investments in those 2 core brands. We will also have clear prioritization when it comes to our innovation and brand and marketing. And as you can see on the far right of the chart, priority is definitely in the profitable growth segments and profitable areas. We will invest more in the robotics in aftermarket and water and construction and hand tools. We will invest less below average, let's say in wheeled and less strategic areas. The SEK 4 billion cost-out program. We've actually already talked about it quite a bit and Glen gave a little bit of an analysis of where that comes from. The divisions will maybe even go a little bit further into the detail. I think what's important from my perspective to get the message across. This has to be sustainable cost reductions, and we really have to do that through improved operational efficiency. In the near to midterm, we expect to deliver 60% of that SEK 4 billion. And my definition of midterm is around 2 to 3 years. Then thereafter, we will deliver the remainder 40% meaning a full year effect, if you like, by 2030 full effect. There will be around SEK 1.5 billion. of nonrecurring costs, costs that we need to incur to generate the SEK 4 billion cost-out. Of that SEK 1.5 billion, around SEK 1 billion will be cash impacted and around SEK 0.5 billion noncash impairment write-downs, et cetera. The onetime costs, they will be mostly booked in '26, '27 and '28. So those 3 years will be the time when we really look to book that SEK 1.5 billion. We have the clear building blocks to get to a double-digit operating margin. We've talked quite a bit now around the profitable growth and we believe we can grow this business 3% to 5% a year. The profitable growth will have a positive volume impact and also a positive mix impact as we really grow in margin-accretive areas. In addition to that, we will deliver on the SEK 4 billion cost-out. But around half of that cost-out we'll get reinvested back into the business into R&D, into brand and marketing, into IT, AI, et cetera. So there's key strategic investments we need for the sustainable future of the group. The external factors that I referred to here are mostly around the inflationary pressures that we will, of course, see over the next 4, 5 years. So we get to 10% in 3 to 4 years, and we will maintain on average above 10% thereafter. We are a cash-generative business. The last 3 years, I think we have demonstrated that in a good way. We can continue to deliver and generate good cash and good liquidity. We have a solid financial position, and we have a well-managed net debt. Net debt at this moment in time after Q3 was below SEK 10 billion. We will also maintain our dividend policy of around 40% or above on net income. So we will maintain that. We've talked a bit about becoming more asset light. This is really important to the group. We have some capital intensive segments, which are not necessarily always the most attractive segments either. So we need to address that. I think we have got a couple of good examples off late. Orangeburg, we divested at the beginning of this year, which was a very capital intensive for our U.S. petrol wheeled, and we divested that around January this year. We also announced in Q3 the closure of Broasted, our handheld component factory and those components will then be sourced to a manufacturing partner. I think those are 2 good examples of how we will continue to lower our net assets. We've already got a positive trend, and we will look to continue to drive that. Our working capital efficiency also needs improving. We are currently rolling 12, 32%. I also want to be clear that's not good enough. 32% is too high and through operational excellence and through the 20% complexity reduction program, we expect to be around 25% by 2030. So this is, again, an important measurement for us that we will continue to drive. Maybe also worth pointing out today, of our finished products, 2/3 are still manufactured by ourselves. So I think that demonstrates there is still opportunity to become more asset-light and to address some of that. Return on capital employed, as I said, it's a new target for us. It's a new metric for us. It is really critical that we are clear on how we allocate our capital to get the best returns. And again, back to talking about the business portfolio units, it's really important. We focus in the right areas. We will improve our capital employed through the improved EBIT by becoming more asset-light, which I just talked about and improving our working capital. 10% in the near to midterm and then 15% by 2030. We wish to maintain investment grade. We have a healthy debt profile and our net debt-to-EBITDA ratio is currently at 2.2%. Our financial policy is 2.5%, so we are below and within our financial policy. It's really important that we continue to maintain a solid financial position. We have SEK 1 billion approximately SEK 1 billion of debt maturing in 2026. And you can see the profile that looks thereafter. So a good, healthy debt maturity profile as well. So we feel good about this situation. And of course, having this strong financial position allows us the flexibility under freedom to move quickly and to grasp opportunities for expansion and growth. Our capital allocation policy, it's disciplined and it's very clear it will support the long-term value creation of the group. We have 4 key areas of where we will allocate our capital. Investment for growth. We need to get back to growth. We will invest and deploy our capital to support that journey, getting back to growth. I've already demonstrated our ambitions with R&D, brand and marketing, et cetera. We will maintain a solid financial position and a solid balance sheet. And of course, our ambition is to maintain investment-grade credit rating. Shareholders, of course, our ambition is to sustainably grow our dividend to our shareholders. And again, we will maintain a 40% or above of net income dividend payout. M&A will be complementary and strategic. And really, we will address 4 areas in our M&A. It should be channel expansion, fuel and growth, technology or new interesting segments. But this will really be complementary and strategic as and when opportunities come around. So finally, to wrap up. We have the building blocks for profitable growth transformation. We will grow our business and we will improve our operating margin. Cost-out is a big part of improving our profitability and our increased investments in innovation and R&D will drive growth. The business portfolio units will be very specifically targeted in each of the buckets that they set for whatever we need to address in those areas. So it's very important we go back to these 11 business units and focus on each one in an individual way. We will improve our capital employed by becoming more asset-light, and improving our working capital efficiency, together with strong cash flow. So with that, Emelie.

Thank you, Terry. So now it's time for our -- the first Q&A session. So with that, please join us back on the stage, Glen.

Just before start, I would like to just remind you that our divisional presidents will share their targeted actions and road maps after our product exhibition. So if you could save some of the more specific questions to that section, that would be great. But anyhow, here we go. So we will start by opening up the floor for questions from the floor. [Operator Instructions] And those who are joining online, you can write your questions in the web and interface, and we will address them if time allows. So with that, do we have any questions? I think we have the first one here.

Fredrik Ivarsson, ABG. First, on the 2/3 of in-house production, what do you vision for 2030 in that sense?

Terry?

I think it would be wrong to give any specific targets externally. Of course, we acknowledge we have further opportunities to become more asset light the days of manufacturing everything ourselves, those are behind us, and we've clearly demonstrated that of late. . So we will move to a more asset-light model in our manufacturing. But of course, we are not going to give more specifics into the detail behind that just yet. We're happy to share that as and when we feel ready and it's appropriate. But yes, there is definitely room for improvement there, Fredrik. I don't know, Glen.

I agree with that Absolutely. We're trending in the right direction.

Okay. Second one on the DTC share. You said 10% now. What do your vision going forward?

Minimum 15, but I think in many industries, you can easily say it's going towards 20 or 30. So we would expect probably over 20% in this coming period. .

And how do you sort of balance that with the retailers that you work with?

I think that's the key. Many retailers also have their own DTC. It's not just pure play online. It's also retailer.com or dealer.com. So we just need to work with our channel partners to make sure they are present.

We have Meanwhile, I can just take a question from the webcast. Is the day recorded and shared afterwards? Yes, it is.

Björn Enarson, Danske Bank. On sourcing, big part of savings, is it similar across the group or different actions between the business areas, et cetera? And can you give some tangible comments on how to save those money?

Yes, I can start, and Terry, you can complement. So about 35% of the program is sourcing the savings program. It is quite targeted. It is different per business portfolio unit and quite different per division. Some big areas of how we'll work with more partners on maybe some of the large electronic units, more or subsystems in that case. So we're really working with more third parties to get cost out. And we have a strong pipeline. I don't want to make this as just an ambition where we're a very, very strong pipeline of cost savings right now.

And a big share of those were, as I recall it, also to be midterm? .

Yes.60% midterm.

And Björn, maybe I can just add. Capital-intensive areas when we look at our business units, we will be, of course, more focused on capital-intensive areas where we would look to really drive our sourcing partners. And then we also have to have a vision on the strategic -- the really key strategic areas how do we want to keep that within ourselves on manufactured or whether we want to source it. I mean there's different ways of approaching this for the different segments.

And this also reflects the kind of the globalization that we are seeing now. So you are also adjusting sourcing for those reasons?

Yes, absolutely. One word, yes.

Let's be.

Henrik Christiansson from DNB Carnegie. I mean you've done exit in the past, I mean you highlighted that you did. And I guess, in that sort of portfolio overview that you showed, you have areas that are clearly underperforming. So my question is, how much patients will you have with those businesses? I mean one could argue that you could accelerate this lift your profitability faster by exiting these sort of underperforming areas and get much faster to your target? How is your reasoning there?

So we have very clear targeted actions for the turnaround cases. We have 3 clear turnaround cases. We have targeted actions. If they do not come to fruition to the level we need to, then we'll look at alternatives. And the reason we speak like that we need to keep the focus on the profitable growth. So I want to make sure the focus is on the right areas and not overspend time on the low areas. So patients will be limited in that case.

Limited. I take that as near term, so 2 to 3 years. Is that a reasonable way of thinking?

Reasonable.

Adela?

Adela Dashian from Jefferies. A question on competition, as Glen mentioned, real time now. And maybe some would argue that the reason for your margin pressure is, to some extent, also related to structural headwinds on that side. So it would be great to hear your vision on that going forward.

It's a great question. And obviously, the whole reason behind the margin improvement program and the competitive cost-out that we talk about is to ensure we're going to improve margin. Is it a competitive headwind? Of course, but that's always been the case. But I think taking out this SEK 4 billion is going to be key. We want to support the margin, but to also to support the investments that we mentioned. So I think it's fairly clear that, that SEK 4 billion is a need and why we're doing it and the urgency around that.

And would it be possible to maybe give a little bit of flavor on what proportion the Chinese manufacturers are contributing to the overall pie now on the robotics side?

I won't elaborate on market shares apart from we're a clear market leader in robotic mowers, and we continue to be that and continue to have that clear target. Of course, there is Chinese competition, and we embrace competition.

Can you elaborate on if you've lost market share?

We do not have the same level of market share that we had 5 years ago. That is for sure, but we're still a clear market leader.

Next question.

My name is Johan Eliason, SP1. I was curious about one of your edge is obviously your servicing dealer network. And now you talk about point of sales. Previously, you've talked about a number of dealers and partners and been somewhere between 5,000 and 25,000 or so. Of this 100,000 point of sales, how many are sort of related to your core strength in the servicing dealer part?

It's around 25,000 servicing dealers we have, Johan. That's still the same data point, and we see that's fairly static. But very important is we have different levels of servicing dealers at the real premium end. We have people who have much more people in the field, more online support, more on-site support in that case. And then we have many dealers, of course, who are really servicing in their stores. But we really try to differentiate those servicing dealers.

Good. And then just a question on the charges, SEK 1.5 billion. Is this sort of net of any potential divestments of a plant or a property or whatever -- how should we think about the cash? .

I think Johan, as I explained, to deliver on the SEK 4 billion savings, we need to incur nonrecurring costs of SEK 1.5 billion approximately SEK 1 billion of that would be cash impacted and SEK 0.5 billion noncash.

Do we have any further question. I can then take another 1 from the webcast. Martin. So in what product areas do you see the most aggressive or demanding competition from low-cost competitors at the moment?

Of course, we see competition coming -- let me reword that. The competitive landscape in the past 5 years has changed. We see that we saw more competitors coming into the battery field, particularly power hand tool base from adjacent industries. And then, of course, we're seeing a lot more competition coming into the robotic space. That's what's changed in the past 5 years versus our more traditional competitors that we've seen in the handheld and the construction and the watering space.

Thank you. Anyone else? Johan, again?

Maybe a follow-on up on the competitive space. I mean, we have seen the battery issue on the handhelds, where it's really important to have many different tools on your battery platform and you went for the Bosch platform, 18-volt platform a few years ago. But looking at these power tool players, they seem to be entering more and more into the professional side as well with 36 or 40 volt platforms and even higher. Do you see a risk that as the professional become more mature in the electric battery space that this tough competition will follow you into that core segment for you?

We do see, Johan, of course, battery ecosystems expanding. That's the way I like to look at this more from the lower voltage and occasional use to the more higher power output, if you like, and more intense use. But we've got to make sure we have the right right product or the right application for the right use and that's what we continue to do. Do we see more competition? Absolutely so. But we're seeing limited competition at the higher end of that sort of voltage game. The voltage game is also interesting that in most cases, some of the lower voltage is sufficient for the application needed. . In the Construction space, of course, we have a much higher voltage system, the 94 volt, which is very intense power need and energy need. So we just need to make sure that we stay relevant. That's what we need to do.

Maybe I can add to that as well. In the professional battery, I think it's less price sensitive, and it's more important about the application and the performance. So long as we have the right products, performing to meet the customer demands in professional, then I think we should not be too concerned around the price sensitivity in that area. It's really about the application. I think as you come down into the consumer segment and you talk about the Gardena and the power for all alliance. That's when it's a bit more price sensitive.

All right. Here's 1 from Alexander Siljeström, Pareto. Could you quantify the drag from strategic investment in percentage points and the drivers and then a follow up. If you could quantify the drag from external factors and elaborate on what's included?

I'm not sure I fully understand the question. But if I may, our strategic investments, we've talked about being roughly half of the Fuel for Growth program. So we have the SEK 4 billion and we have clear actions and pipeline to deliver on the SEK 4 billion and approximately half of that SEK 2 billion would be the strategic investments. And of course, they have to be aligned. We have to get strategic investments in the near to midterm, but then, of course, continuously thereafter. So I would say it's relatively closely linked to the Fuel for Growth timing of 60% in the near to midterm and 40% of the strategic investments thereafter.

Just add to that, I think the flavor Terry gave earlier was we're going to go from 3% brand and marketing to 4% to 5%. So there's a 1% to 2% investment headwind that we see. But we maintain our innovation pace, i.e., 5% of R&D to net sales. So there's a 1% to 2% we clearly call out for brand and marketing there.

Good. And the Fuel for Growth program is the name of our SEK 4 billion cost-out program.

Yes, absolutely.

Good. Is there any further price pressure included in the external factors in the bridge?

I think pricing going forward, we talk really low single-digit price increases for '26 and onwards. Of course, there are certain pockets of price pressure. We shouldn't forget some of the price pressure we have faced this year has been around sent out of old technology in our robots. And that technology sellout is really more or less coming to an end by the end of this year. So we're at a little bit more of a level playing field next year and then low single-digit price increases for the years ahead.

Yes, we have further questions. I think we have time for 1 or maybe 2 quick questions.

You said you have an increased focus on partnerships going forward. Where in the value chain will that be mostly R&D, manufacturing and so forth?

All of them actually Oscar. We need to look at partnerships across the value chain. We will look at some partnerships from a technology perspective to make us faster, but also in the supply chain, that could be logistics. It could be manufacturing, as Terry mentioned. So we look at partnerships much, much more than we have been.

We've got time for one final question, if you wanted one, Björn.

Do you have a view on the cost situation for Southeast Asian competition? I mean, our actions that you're presenting today? I mean, will that take you to a similar cost base as those guys are adjusted for where you are in terms of the offering? I mean you're targeting the range from not the low end, et cetera?

So we believe with our cost out program and our technology road map that will have the best products at the best offering in the marketplace. Now I can't comment completely on competition and how they're going to be in this coming phase, but we believe what we're bringing to market and the cost-out program we have will support our growth journey.

But you have a view -- I mean, you see the listing and what the price certain models, et cetera. So we have considered that when...

We're very mindful of what their offering is, yes.

But to be clear, we don't play in that really entry-level segment. That's not where we want to be.

All right. So thank you all for your questions. That concludes the Q&A session. So next on the agenda is our product exhibition. So now we will showcase our innovation in smart engineering and 4 of the group's strategic areas. First one being residential robotics, and we have professional robotics. We have smart watering and also our Pro range. So this means a short break for our online audience, and we will see you again at 11:00. Thank you for watching. [Break]

Welcome back. I hope you enjoyed the product exhibition. And a warm welcome back to our online viewers as well. So now it's time for the next session of today's agenda. It's time for the divisional presidents to present their road maps and in the transition to profitable growth. So with that, I would like to invite Interim President of the Husqvarna Forest & Garden division, Omar Attar to the stage, please.

Thanks, Emelie. Hello, everyone. Great to be here. Today, I will share with you our plans to unlock the growth that we've talked about earlier this morning as well, how we will continue to lead in our robotics as well as how we will improve performance, both in our handheld as well as our wheeled business. I'll also share with you what we're doing in Husqvarna Forest & Garden division related to our transformational cost-out program, of course. . But before I start, let's set the stage by giving you a brief introduction to the Forest & Garden division. We're the global leader in residential and professional green space and term management, and we hold the #1 or 2 positions across all key categories. Our net sales rolling 12 is approximately SEK 28 billion with an operating margin of 7.9%. While margin improvements have not really met our ambitions, we're taking -- you will see later, we're taking clear targeted actions to unlock those profitability improvements going forward. Europe and North America remains still our largest regions in the division, while we also see some good growth opportunities in emerging markets as well as the Pacific. Our growth will be driven by innovation, as Glen has alluded to earlier, as well as leveraging our strong dealer network and expanding into both retail and online. We have today sales in over 100 countries, supported by 25,000 trusted and experienced dealer channel partners and 5,700 employees all dedicated and committed to deliver a premium customer service every day. So with that short introduction, let me walk you through in terms of how we will drive operational excellence in the Forest & Garden division. As Glen mentioned earlier, to deliver on our growth ambitions, it is critical that we also streamline our operations and deliver on our cost-out ambitions. We're therefore executing this Fuel for Growth program, as we call it, which is a cost-out program designed to strengthen our competitiveness and enable reinvestment in profitable growth. It builds on the same elements as Glen presented earlier, 3 areas: sourcing, design to value and manufacturing. And we start with sourcing, 80% of our product cost today is direct material. So this is naturally the biggest lever for us to drive. A great example here is the way we have changed our ways of working with electronics and sourcing related to subsystems as well as finished goods -- or sorry, other components, electronic components. And looking into -- and basically leveraging our scale. In terms of scale, purchasing power in those as well as consolidating our supplier base, including lower-tier suppliers. Within design to value, we're looking to simplify, continue to simplify our platforms and introducing modular design that will both drive complexity reduction in our portfolio as well as give us ability to scale. And that's a good example of that is what we have done with our electronics architecture in our new robotics. And within manufacturing, we have already presented earlier, our outsourcing of nonstrategic components. A good example of that was the recently announced closure of. We'll continue, of course, to optimize our footprint to best cost countries. And we will continue to leverage and scale partnerships such as we do have in North America with Flex. Now in addition to those, to enable that and to focus the sharpen our focus in the value chain, including our focus internally in the organization, we're also driving complexity reduction of our portfolio up to 20%. And we will do this by targeting underperforming models, as well as applying modular design as we build the product road map ahead. These initiatives together will help us to drive a better financial performance, free up funds to reinvest in the business as well as boost our return on capital employed. With that in mind, let's take a look at an area where we definitely will keep reinvesting and with an opportunity, a great opportunity of growth, our residential robotics. Sorry, before I do that, let me just refer back to the BPU mapping that Glen laid out earlier, and this is how it looks like for the Forest & Garden division. We have our core wheel business in the turnaround and then our core handout in the increased profitability segment and our Pro Robotics in the profitable growth. We will walk through each of those areas here, just to give you a recap of the mapping of our portfolio there. So let's start with the residential robotics side. Husqvarna pioneered this, the robotic lawnmower category 30 years ago. And today, we still remain the clear market leader. As a premium brand, our strengths are built on these 5 areas, as you can see here, from an unmatched performance and reliability to products that are built to last 30 years of domain experience and then complemented that with an experienced dealer channel network as well as our best-in-class premium aftermarket and service offering. These strengths are backed by decades of innovation as well as some real-world proof points. And Glen mentioned that earlier. I think it's worth mentioning again. In fact, 80% of our -- all our connected residential mowers installed in 2016 are still operating today. It's a great proof point of our quality and durability. Another proof point and also an important differentiator is our premium aftermarket and service offering, where we basically have lifetime service and support. We also guarantee parts availability 10 years after production, and we have industry-leading digital tools to help with diagnostics and maintenance. Let's now look at the growth opportunity within residential robotics. So despite our leadership in the residential robotics category, the market penetration remains low. As you can see here, Scandinavia leads the way with approximately 30% penetration rate, while most other markets still remain early in the adoption curve. And here, we see -- we expect the market -- the market is expected to grow by 15% -- more than 15% annually, creating a significant opportunity for growth in this category. So how will we capture the growth? Our plan is clear and focused and builds on these 5 areas that you can see here. Let me walk you quickly through each of those areas, and let's start with the channel development there at the top. So we will be driving an accelerating penetration as well as expanding our distribution. That means that we will continue to expand into both retail and online as well as we will continue to enhance our dealer network. Innovation is, of course, a core piece of our future growth. And through our innovation hubs, we are working very intensely now to speed up time to market as well as to boost our competitiveness by working closely with partners through those innovation hubs. And as you saw in the product exhibition out there in 2026, we'll also launch a new mower platform for the suburban consumers, which covers lawn sizes up to 1,200 square meters. It will -- it's a wire-free technology will feature vision and AI and will be offered at competitive prices. In addition to that, we'll also introduce the vision with nighttime capability at our 400 series and most of our 500 series mowers as well. In addition, we'll also introduce new dealer tools to make installation much faster and better going forward as well. Beyond 2026 and further, we will lead the next wave of autonomous lawn care with even smarter functionality and enhanced digital experiences. Moving on to the product cost. I think Terry and Glen mentioned that earlier. We have a very strong pipeline of cost reduction initiatives in this area in robotics. And that is very much needed to increase and strengthen our competitiveness in the market. With brand and marketing, we will use some of that cost-out and reinvest in amplifying our brand presence in the key markets, and we will continue to work with global sponsorships such as we have done in a very successful way with the Liverpool Football Club. And that helps to both increase awareness and increase the demand for our products. Finally, premium customer support. Again, this is a true differentiator for us. And here, we will continue to work with new digital tools to enable even better and smoother troubleshooting and maintenance. Together, these 5 execution levers, if you will, will help drive both profitable growth for Husqvarna and also sustain our leadership position in residential robotics. Now having covered residential robotics, let's move into the professional side and equally exciting, if you will, area and of growth for us in Husqvarna. The professional robotics market, we define that in 3 customer segments. We have the Gulf. We have the sports and we have facilities. And within facilities, we include housing, it could be education, it could be public spaces. It could be military, it could be anything basically outside of sports, which requires professional applications. And just want to pause here, Husqvarna is the chosen brand in professional robotics, and we are the undisputed #1 player in the professional robotics area. And our leadership is built on these 5 strengths truly matters for professionals. If we walk them through quickly our broad portfolio mowers covers all sizes and all major applications. But it's not only the mower itself, it's all the digital tools that come with it to make fleet maintenance and management much smoother. When it comes to uptime and durability, our machines, they're built for a long life and again, supported by digital tools, all to maximize productivity and uptime for our professional customers. And our superior cut quality and turf quality, our customers consistently report top playing conditions and aesthetics using our products. But our strength go beyond the product. It goes further. Like Glen mentioned earlier, we have a dedicated dealer network supporting these professional customers. We have our Pro partners in Europe and we have a GST golf sports and turf dealer network in the U.S., very strong, very experienced dealer network to provide best support our professional customers. And then our premium aftermarket and service offering as well, which -- which I've alluded to before, including things like extended warranty and also leasing -- the leasing solutions. I think the leasing solutions is also a very critical enabler for us to continue to grow in the professional robotics sphere. And as you can see, our proposition is -- our value proposition is strong and clear. So it's lower total cost of ownership, consistent cut quality and also clear sustainability benefits coming both from noise, noise reduction as well as CO2 emission reductions and also a solution is on labor shortages. And these are not just claims. As you can see here, our strength are endorsed by respected organizations such as the R&A, which is the golf governing body for golf outside North America and Mexico and also by the usage of our robotics at prestigious golf tournaments such as the AIG Women's Open, where we actually had our robotics mowing all 18 holes of that tournament, a historic first, I think, in the industry. So that is what makes Husqvarna the leading brand in professional robotics. Let's now look at the growth opportunities within the professional market. We've demonstrated a strong growth here already with -- we have 1,700 courses today use our products, robotic products at some scale, but that's just a fraction of the 38,000 courses globally. So you can -- you see the potential here is absolutely massive in this area. And the market is expected to grow by more than 30% annually, driven by the demand for sustainable solutions. This is what this map shows and golf is our -- one of the most demanding applications. With that, we also see now that we're getting a halo effect and a good sustainable foundation to accelerate growth in sports and facilities as well, which is really great to see. And the growth will come from increased penetration, market expansion and entry into adjacent applications. So massive growth opportunity, and I would be bold to say we're not just leading this. We're actually shaping a multibillion growth SEK opportunity here for Husqvarna. So how will we capture this growth? Our plan here again is focused and clear, and we will double down on these 4 areas. It's the Pro channel. It's rapid technology and innovation. And of course, it's brand and marketing that we talked about and our premium best-in-class after market. So let's quickly walk you through. Like I mentioned earlier, we will continue to invest and develop our Pro partners, the dedicated dealers for our professionals. We'll also rapidly advance in technology to improve both uptime for our professional customers, which is so important as well as ensure that we can deliver consistent turf quality across every climate and every surface. We'll amplify our brand presence by working closely with partnerships in those areas and those partnerships in the professional sphere, if you will, they create -- they strengthen our credibility in this area. But not only that, more importantly, they also give great insight, and we also get an opportunity to to create future plans, which will solve the challenges that the professional customers have today and tomorrow. So it's a great opportunity to work with those partnerships. And we keep differentiating ourselves through our aftermarket premium best-in-class support. And this again includes continued rollout of our leasing solutions that we offer to other professional customers. So these focus areas together will help to cement our position as continued as the global market leader of autonomous Zero imaging solutions. Now let's move into our handheld business. Our handheld range, including products such as chainsaws, trimmers and blowers remains a cornerstone in our overall portfolio. Looking at the market dynamics here, we see that the overall petro market is projected to decline in those single digits annually. But we still see strong demand in some key markets and also, especially in the Professional segment. That is driven both by infrastructure gaps as well as the need for power. So within -- within the petro segment, our plan and strategy is clear. We'll continue to gain share in some of those key markets. and will also lead with innovation in those. And a great example is that you can see here is our recently launched 564 Pro Petro chainsaw delivering high performance in a compact design and very well received in the market so far. In the battery segment of the handheld, the advancement in technology is growing fast, and we also see increased regulation, which then is turning an accelerated growth in the market, and we see that market to grow by mid- to high single digits going forward. Our plan here is to continue to accelerate our electrification offering in this space by working closely with partnerships to deliver, as we have in this Pro backpack here is also developed in a partnership. Now as electrification transition continues, just wanted to be clear here. Our priority in the handheld is to improve profitability. Coming back to the BPU that we saw earlier. So improving profitability is key in this and especially in the residential segment of the handled business. And we will do this via our transformational cost-out program looking at methodical material savings, product redesign, portfolio optimization and of course, leveraging those partnerships, as I mentioned earlier. So in summary, for handheld, we will increase profitability, continue to grow in key markets and accelerate our electrification portfolio going forward. Now let's shift gears to the wheeled business, if you will. Our real strategy is built on two priorities. The #1 priority or number one, I should say, is to protect our #1 leading position in front over in Europe. And number two, it's to really turn around profitability in North America in that assortment. The market dynamics here is similar but perhaps a little bit exacerbated versus the handheld. The petro-driven wheel we see there a continued market decline with low single digits annually going forward. While the battery platforms are going to increase at an impressive growth from up to middle to double-digits growth we see here in the battery segment. And that is mainly driven by the development in Europe. Therefore, in Europe, we'll continue to lead with innovation in the wheeled by extending the range and balancing it between both petro and battery, and that is to capture the growth and protect the profitability as that market transition going forward. And in 2026, we'll launch our first battery-powered Pro ride on, as you can see here. which is really a big milestone for the industry as well as the first professional battery powered. And that reinforces our position as the -- in innovation and also responds to the need for further electrification in the wheeled business in Europe. In North America, our real strategy, as I mentioned, is about turning around profitability. And we will do that through those initiatives in the transformational cost-out program, as I mentioned. For both regions, it's going to be key. The aftermarket and premium support will be key to drive competitiveness and profitability in this category. So in summary, we'll continue to lead with innovation in Europe, and we will turn around profitability in North America. Let's now take a closer look at our at our aftermarket and solutions. I mentioned that several times today, and I think will has come through quite clear that our premium aftermarket customer experience is a true key differentiator for us. It builds customer loyalty and in return, it also delivers profitable growth for Husqvarna. And we have a significant growth potential in this area. Today, if we look at our share of wallet for aftermarket sales and services, our share of wallet is approximately 20%. Our target for 2030 is to really increase that to 45%. Let's put that a little bit in context to you. In our chains of business today, we have a 40% share of wallet, which we have built by creating an ecosystem that really responds to the customer needs. That to me is a good example to show that we have the ability to scale. We have a great blueprint that we can use as a starting foundation, but it also represents the amazing opportunity ahead in terms of growth that we have here ahead of us. So how will we do this? We will take a global aftermarket approach on this, focusing on these 4 key areas. We will continue to elevate the dealer experience to premium standards, and we'll continue to expand our multichannel. We have a big focus on operational excellence, as we talked about. This includes spare parts availability and fast and reliable service. We'll also start leveraging more and more data in AI and move more from reactive to proactive maintenance, more predictive and also offering proactive service recommendations to our customers at the right time. And we'll continue to develop self-service tools and remote diagnostics to empower our customers to solve their problems in a quicker and smoother way. And to the right there, you can see examples that -- of our product and service offering that brings this strategy to life from the Uptime Center to the Husqvarna Service Hub our lease plus program and second life, all reinforcing our premium position and delivering measurable value to our customers. So together, these areas create an aftermarket ecosystem that really delivers delivers increased customer loyalty, accelerates our profitable growth and reinforces our competitive edge. So before I close, let's step back you look at some of the core build to deliver sustainable and profitable growth going forward. Our transformation is underway. We're executing on a clear strategy designed to increase competitiveness and to unlock growth. We'll continue to lead in robotics through innovation, leadership, through expanded distribution and increased market penetration. We will improve our performance in our wheeled and handheld categories as we -- as the transition for electrification is happening. Secondly, we'll expand our customer reach by enhancing our dealer network as well as expanding to new channels, such as online and retail, and we will strengthen our go-to-market capability as well to delight our customers every day, wherever they choose to engage with us. Third, we're executing a transformational cost-out program as we've talked about, our Fuel for Growth program, which is designed to increase our competitiveness and really free up funds to invest in future growth. And finally, we're delivering a premium aftermarket experience here again, that will increase customer loyalty drive profitable growth for Husqvarna and be a true differentiator for us as we go forward. This is how we -- this is how we create a more focused, more profitable and more resilient business in the Husqvarna division that will deliver sustainable value both to customers and to our shareholders. So I'll leave you with that, and I'll come back maybe later on any question -- Q&A session. So next, I would like to introduce Maha for the Gardena division. Welcome, Maha.

Good morning, everyone. Before I take you through the Gardena 2030 ambition and vision and our clear action plan, I first would like to start with the Gardena division today. Today, we are the #1 residential watering company in the world. We operate in a SEK 70 billion market. What we bring to our consumers is a fully gardening solution from water management to our smart watering, cutting tools as well as cleaning accessories. What does this mean? It means that we are part of our consumers' lives wherever they are in their consumer journey. Whether they're an apartment, and they're looking for a garden in their terrace or when they move on to a bigger home and they actually have a large garden. Our consumers know us quite well. We have over 80% brand awareness in our DACH region. What does this mean? It means we grow up with them in their parents' homes and in their grandparents' homes. By nature, when you're a consumer brand in your consumers' lives, this means you have a quite a strong hold in the retail market. So you can find us in 65,000 outlets globally. We also have a very strong presence in e-commerce as well as in a digital ecosystem. Well, what does that digital ecosystem mean? It means we actually have the largest used app in the gardening markets. So mygardenplanner is the largest planning app in the DACH region. Our consumers are able to communicate with us, build their own garden and actually, for us to have access to what they are thinking, and that's how we communicate with them. In the last 10 years, we grew our business. Today, in the last 12 months, we delivered SEK 12 billion. We clearly benefited from the COVID effect, and we grew significantly as well as we benefited from Orbit joining us and being part of the division. But that also came with an impact of their operating margin. We right now operated to 6.1% and before we operated at high single digit as well as even double digits. In the division, we have 3 BPUs; watering, which is 60% of our business today, and we go to market under the Gardena brand and the Orbit brand in the U.S. Hand tools 15% of our business. And we are mostly in the European market with the Gardena brands. Powered Garden, we actually have 2 segments under it. We have battery and electric with 15% and robotics with 10%. And as you can imagine, the reason we put them together is their product that requires a battery or electricity. That's why we call the powered garden. The 3 BPUs actually have quite different business models as well. With watering, we are very close in the market to our customers as well as our manufacturing, similar with hand tools. But powered garden, we actually have a diverse business model where battery and electric is actually 100% completely asset-light. We have clear plans for each one of these BPUs for us to grow by 2030 and to address our issues and our transformations. But before I take you through all of that into details what our focus plans are, I want to take you through our Fuel for Growth transformational program of how we are going to actually fund it. Similar to what Omar and Glen have mentioned earlier, we have the same exact program with 5 key pillars underlined by complexity reduction. Sourcing for us is a critical element of our growth, and it's actually pretty critical today. We have over -- we have a solid double-digit number of our finished goods product that is sourced today already. Sourcing is important because it gives us access to competitive pricing, but it also gives us access to innovation and technology, and we know how to do it. And our goal is for us to grow that percentage even higher, especially in categories where we do not need to have closeness to the market. Just think about it, watering, if it trains, less likely for us to sell product. But if it doesn't rain, then the market grows exponentially, and we need to be very close. And that's a different business model than for example, hand tools, where a consumer is willing to wait. Design for value platforms. If you have bought any Gardena product, you realize we always talk about platforms, whereas you have a house, you have, they off together or combi systems. So we believe in platforms. But let me be also very honest, I don't think we believe then it enough. We believe in differentiation. And having the value for creating a completely different product where we can, and that's one of our biggest points as we are going to have a very good understanding -- better understanding of where differentiation is required by our consumers. And our goal is to have more platforms, both on physical products as well as digital products. Manufacturing footprint. This is very important for us as well. We need to have the right print for the brand and for the product category depending on the requirements of the market. Complexity reduction, we are a consumer company. You can just imagine how many differentiate this product we have as well as brands. And our goal is to actually bring that into focus and to really focus on actually eliminating at least 20% of our portfolio and brands as well as even our core brands with our Gardena and Orbit. And to be able to do this, we have to have a differentiated plan for each one of our BPUs because they are fundamentally in different places in our portfolio. Watering and hand tools, the goal for us is to drive the -- continue to drive the profitable growth, which is a little bit different than where Orbit is whether we need to increase this profitability. And lastly, for our powered garden, we can need a complete transformation. Watering top right corner of the graph. We operate in a SEK 30 billion market. Being a company that's over 60-year heritage, we understand what the consumer needs are in watering. This is where our heritage started. Our innovations are all targeted to consumer needs today. We create systems for them. And we also now are creating a lot more on the smart innovation and smart solutions, which is what they need. We understand our consumers very well. And more importantly, we have external testing and consumer sentiment about how we are performing, if we are hearing them or not. What they tell us we are because they have rewarded us with the #1 market share in Europe as well as the #1 market share in the U.S. So one could argue, where is the growth? There's a lot of opportunities for us to grow. We have markets who are not #1, like in Eastern Europe. There are markets for us that we are not #1 like in France, U.K., we're not #1. Middle East and North Africa, we don't even exist. So there are opportunities for us to grow. The #1 growing segment is smart watering, whether that's in residential pro. Yes, we are #1, but the opportunity is significant. When there's significant, there's also competition. So we also have to make sure to stay on top of our game. So we do see a significant growth in this market, and we plan on making sure that we stay #1 in that segment in residential. We plan on doing that by focusing on innovation that matters in form of platforms, which is very important. E-commerce is critical. There was a question asked earlier about D2C. It's very important for us, for our customers, whether we're selling direct or we're selling on the Amazon platforms or our customers. I'm sure you've heard Lowe's Depot, will be everyone talking about the importance of the e-commerce. And lastly, for us, which is going to be an area where we're going to be devoting time and effort is professional. We want to grow in the professional market, but not where we would say it's more of a commodity or we don't have a competency. We want to focus on smart watering, where we have a significant competency. And the reason for this -- it's other than keeping our #1 position. We see a strong high single-digit growth in the watering market across mid-range premium as well as the professional. And this is where we see our growth coming from. Hand tools is actually quite a similar story as well for watering, where we're able to offer our consumer solutions across cutting as well as cleaning and very innovative accessories. Our performance is our differentiator. And we have that cutting performance in robotics, as Omar mentioned earlier, but also with our cutting tools. And that is why our consumers I can assure you, a German consumer that wants to live in their home for more than 30 years, they do not want to buy to a last season and replace it this season. Their expectation this is going to live for 8, 10, 15 years. And that's what we offer them. And when we cannot stand by that promise, we take care of them with our after sales. And our consumers have rewarded us for that as well with clear #1 market share in Europe, selected European markets actually. So the opportunity for us to grow is pretty simple. Other markets in Europe where we can become #1. We don't have any meaningful presence in the U.S., so that is also an opportunity for us. And the reason we want to do this is because this is a SEK 20 billion market. It is going to continue to grow solid single digits, and we believe we have the value to outperform the market by entering new markets, continuing with our innovations, especially in cutting and tools and driving our costs down as far as building more platforms and being more consumer-centric. So it makes sense for us to invest into these -- into the hand tools market and to continue with the leadership we have. I have to say, once we start to talk about the powered garden, this is where we have to pivot with our transformation. Battery and electric, as you know, is one of the largest segments in the market. The easiest answer would be, well, why stay? You have not been successful. So why leave the market? Well, as I mentioned earlier, we are in our consumers' lives. We offer them full solutions. They know our brands. They want to be into our product portfolio as a complete solution. We have pivoted with the battery and the electric segment in the last few years. We have joined the Bosch battery for all alliance and that has been a big benefit to us. We have updated and upgraded our partners to create our innovations. We have brought meaningful solutions at the right price points. So I would say battery and electric is definitely on the right pace. But we have still work to do, and we need to be more aggressive with our sourcing. And we have to also be selective with what innovations we bring in. Today, we are the #2 market holders, shareholders in selected markets like the U.K., like Germany and like with more opportunities in France with more opportunities in Europe. So we have opportunities for us to grow profitably, which is the keyword. So what are we going to be doing in the next 5 years is different today than today? We're going to continue to enhance our operating model for speed and for cost competitiveness. This is an area where there's a lot of competition because of the market size expected. But we also have a very good chance of winning in that market. We are going to focus where you're seeing the biggest growth in the market. It's coming from e-commerce, and we are going to focus to be the leaders in the e-commerce market in battery and electric. We also have to invest in building and reminding our consumers of the value we bring. So we're going to be investing in more brand marketing and having the right brand in the right market. So probably being in the U.S. is not in our near future over investment because it doesn't make sense for us. Gardena brand and battery and electric does not belong in the U.S. market. So that is not an investment we are going to be looking. Another decisive transformation for us is robotics. First and foremost, what value do we bring into the robotics market. Omar said this very well. We are about performance. We bring the best cutting performance into the market, relying on the Husqvarna platforms. We bring in quality and we bring in longevity. We have one of the best after-service retail program. We have a significant number of our consumers that bring in, sends us the robotic every year for us to clean and to winterize to send it back to them. They do not expect the robots to live for 2 to 3 years. They want them to live for 8, 10 years. And that's what we offer our customers. Quality, longevity, durability and after service. We have external test results that confirm the performance we have, and that's the differentiator. We work very closely with our retail partners on making sure that they are able to also deliver on their commitments to our customers and to have quite low number of returns, which is very important for them. That said, this is the most competitive market we have in the division. By nature is the one that's growing the most, right, solid double digit. So more competition coming in and we have to expand our operating model. Today, we are mostly European focused. And our goal is to expand by working closer with our partners, expanding our innovation hubs, working closer with our technology partners and also working closer with the manufacturing partners to help us become more cost competitive, because that is where the market is going today, and that's what we need to do as well. But we also need to focus, and we are going to be focusing on our leadership in e-commerce, that is the channel that's growing the most with robotics on the retail side of the business. And that's where we are also going to focus. We're also going to be focusing our brand and marketing spend to build our brands, but also to remind our customers, quality and durability and cutting performance is why you buy a robot. Technologies are still being developed and they're evolving. And our goal is to explain that to them and to help them understand that. But we have work to do. And lastly, we're also going to be investing in enhancing our aftermarket services to be able to have a profitable growth. But it is the market we need to be in, Yes. is the market our customers want us to be in with us. Yes, our consumers, absolutely, because we are part of their gardening journey from when they were at this little. So as a wrap-up, we have 4 clear pillars for our transformation and our growth for 2030. First and foremost, we have to protect what we have. We're in a very good position with having clear #1 positions with watering and hand tools. We have to transform, and we have to also figure out where we need to take our battery and electric and robotics business in regards to profitability, but it has to be profitable. We have to take care of our brands and our consumer centricity. We cannot not invest in our brands. This is very important, especially when we have a lot of competitors coming into the market. We have to remind our consumers of the value proposition we bring versus others. And we are going to selectively focus on growth markets like Eastern Europe, like Southern Europe, like Middle East and Africa, like the U.K. in selected segments like the Pro smart watering specifically. And with this, with the focus we're going to create, we believe we're going to be able to deliver on the ambition that we have. And with this, I hand over to Karin Falk for Construction.

Hi, everyone. I'm looking forward to share with you today how we are building a stronger, more focused and more profitable business for the future. As you might know, we are a full service provider in the light construction industry. We operate globally with sales in over more than 100 countries with a turnover of approximately SEK 7 billion in an addressable market of roughly SEK 40 billion. As many others, we have been hit by inflation, but thanks to our really dedicated and disciplined price and cost management and also most recently, our product cost-out program, we have largely managed to preserve our EBIT margins, and you can see that they have really followed the business cycle and stayed in the high single digit or in the low double-digit range. But we have clearly a lot more to do. And our demand is driven mainly by GDP, also the development in interest rates as well as the construction spending. Geographically, as you can see, we have our largest market in North America, where we have seen a softer demand since early 2024, but we now see a stabilizing trend in combination with a more positive development also in Europe. In margin -- in emerging markets, we see interesting growth opportunities due to the adoption of modern construction techniques as well that high construction spending, but we have also experienced more tough competition from low-cost Asian manufacturers. But despite this geographical expansion and especially then in emerging markets is still a key priority for us. Our market is still fragmented with many smaller specialist players, which actually opens up for targeted acquisitions and something we have done successfully in the past. And in this fragmented environment, we are a global leader, thanks to our high-performing premium and innovative solutions. And that also can help our customers become more productive, which then means, of course, also more profitable. And an important part of this offering is also our aftermarket services, which creates loyalty as well as recurring revenues. And in addition to this, we have a strong and diverse channel network that gives us a broad market access and also keeps us close to our customers and their needs. And I'm proud to say that our customers tells us that our sales force is truly appreciated and something that differentiates us from competition. And these actually come back to our overarching ambition to be the trusted partner. We are active in different areas of construction, as you see here, residential, commercial and infrastructure and operate in 3 segments or 3 business portfolios then in this environment, which is sawing and drilling, surface preparation and compaction concrete placement and light demolition. And we sell through dealers, our own sales force, direct sales force as well as through the rental companies. And our diversified customer base provides something like a natural hedge since in recessions, our contract or direct business tends to hold up a little bit better often supported by infrastructure investment. And this is an advantage that can somewhat mitigate the downturn in one construction segment with some better stability in another. And that is also related to that we are part of both renovation and demolition, so not only then to new build. And for us, this stuff actually provides a good platform for growth together then. So it really creates for us some reach resilience and also a platform for growth. But to fully capitalize on this platform, we need to further simplify and focus how we operate. And despite continuous portfolio management that we really have done, we still have products with lower sales contribution and also overlapping products due to past acquisitions. And this tail and this overlaps adds cost and complexity. Fewer models means easier demand planning, less complexity in our factories, more focused sales execution and over time, also more efficient after market. So that's why we really have taken now an aggressive end-to-end approach to cut this tail and also to eliminate overlaps. And to start with, we will remove at least 20% of our equipment models by mid-2027. But it's also about embedding and lasting mindset, not only doing this over and over again and also then to shift to a more modular platform-based approach. And a good example of what we mean with a platform-based approach is actually our new dust extractor range, the DE range where we have taken the best of breed from several overlapping portfolios from past acquisitions. And where we have fully executed, we would have reduced complexity here from 55 to 17 models. And at the same time, we have consolidated several acquired brands under the Husqvarna brand. So by cutting the tail and reducing this overlaps, we will be easier to do business with we will also be faster and more efficient. In addition to this, we also work with product cost-out. As you have heard many say before, to increase our competitiveness and also to enable reinvestments in growth. And this cross-functional initiative has clear targets to standardize, simplify, but also to take out costs across the whole value chain. It focuses material cost out, platform alignment and manufacturing, as you can see on this high-level summary. And our biggest savings will come from platform changes as well as direct material cost-out. And this is a structure, long-term end-to-end approach on how we design, source and manufacture in order to safeguard that each new product platform is leaner and more efficient from the start. This is what we call operational excellence for us. And this is a key area to a Fuel the Growth across our 3 BPUs. And as a reminder, you know the drill now. This slide comes up. This is the slide that Glen showed earlier that shows the performance of our different product portfolios within Construction. And I will, of course, also comment on all 3 of them. Starting then with sawing and drilling. This is our largest business where Husqvarna is a global leader with strong positions in power cutters, diamond tools as well as sawing solutions. And here, our priority is to protect and also to grow the core with focus on productivity, safety and sustainability. We will also continue to invest in combustion engine solutions for power cutters when it comes to -- when it relates to emission regulations as well as alternative fuels. But in parallel, we will also drive electrification since that is something that contributes to our customers' reduction of carbon emissions, while it also delivers lower noise, vibrations and a better handling. And electrification, as I mentioned now, is actually expands over all of these 3 business -- portfolios that I will talk about, and not only sawing and drilling. And already today, we have more than 40% of Husqvarna Construction's equipment portfolio that runs on electricity, either a battery or a. In our second segment, surface preparation, I think we are well positioned to capitalize on the modern portfolio that we have from our acquisitions. Here, we are improving margins by reducing product complexity, but also by gradually phasing out our acquisitions, amortizations that still burden our results. We see good growth potential in this segment where we really are a leader due to also the -- that we now have access to complementary surface preparation techniques that we got from the Blastrac acquisition. And we will strengthen our position in this segment through innovation, complete solutions, and also new launches. And I think that you perhaps noticed outside in the exhibition the Husqvarna auto grinder, we will, of course, also have new diamond tools and also dust management solutions that all are focused on increasing our customers' productivity and also operator safety. Thirdly, moving into compaction, concrete placement and light demolition. And this is our smallest business, and it's also quite broad. So therefore, I have divided it into since they are a bit different. But let's start with light demolition. And here, we have a strong global #2 position. And we will drive growth here through our own direct sales force, but also to have good and agile after sales services and with new -- entering into new applications. As you hopefully met our demolition robot out in the exhibition that was a DXR95, which is one of our new additions to the portfolio that takes us into new segments. Besides this, we will also enter some selected and are entering some selected industrial segment, which also makes us having good growth opportunities and takes us a bit outside of the clear of our normal sort of concrete segments. If I then talk about compaction and concrete placement. This is a segment with lower profitability than the divisional average, but it's still important since its offer a key complement to our channel partners and also addresses important customer groups. Here, we actually have a low market share in a quite big addressable market. And we have a close follower position as #4, which also gives us a good growth opportunity. The issue here is, of course, profitability, as you heard. And what we are doing then is focusing on aggressive product cost-out together with strengthening the channel partnerships in order to be more profitable, but also have the possibility to grow. And all these 3 product portfolios are supported by a strong aftermarket that, of course, builds recurring revenues, but also by that and strengthening our business resilience. For our customers, uptime and productivity is key since the earned a living from the performance of our products. So by offering a fast support and a broad range of services, we help them to improve their productivity and profitability. And going forward, we are enhancing the customer experience by having a stronger service footprint more better proactive maintenance, also improved parts availability and also a fast and efficient field support. And these efforts will strengthen customer loyalty as well as building predictable revenue streams. And at the same time, they are actually improving our customers' productivity and profitability. So it's a clear win-win. But so to summarize, we are starting from a clear position of strength. We have a strong brand. We have high-performing premium, innovative, sustainable solutions that are based on customer insights. We have a broad and diverse network, a good aftermarket that our customers truly appreciate, but we will also then strengthen as you have heard. But what defines our transformation is how we run the business. So we are simplifying the portfolio. We are shifting to a platform-based design. We are taking out structural cost, and we are enhancing our sales and aftersales execution. And all these long-term activities are making us more focused, faster and more efficient. And this will help us contribute to that we can grow and be more profitable in a still very challenging business environment. And to execute, we have a dedicated team with clear road maps, but above all, we keep our focus on the customer. If we help them succeed, we will succeed too. And that's why our overarching ambition is clear, to be the trusted partner. Thank you.

Thank you, Karin. Now it's time for the final Q&A session. So the rest of the team, please join the stage. Good. So everyone's here. Great. So we will again open up the floor for questions. [Operator Instructions] So do we have the first question?

I have maybe 2 or 3 questions. On Gardena and growing in professional irrigation, if you can add some comments on what kind of market size you are aiming for, et cetera? And then secondly, on Construction, I mean it is a pretty sound business in a attractive market. But I mean, how quickly will diamond tools be electrified? And typically, we see a little bit of margin pressure when products are being electrified?

You want to see a start Yes. You can talk. Okay. I start. So taking on the question, as you said, what is happening with profitability when we get more electrified. I can also say that when we talk about electrified, we talk both about corded and battery we have quite a high degree of corded products. When it comes to battery, we see that it's what we talked about before that we are really focusing on having this really specialized products for the heavy users. I think it was mentioned before, we are both capitalizing on the 36-volt platform from Forest & Garden, but also our own 94 volt, which is a really high power solution. And there, we see that it's from a profitability point of view, that there is at least a possibility to have somewhat higher margins than what you have in other battery segments. But what we can say in general is that the uptake of battery is quite slow still in our segments.

So for the professional irrigation, specifically, we are estimating that market to be in the United States around SEK 20 billion and in Europe, somewhere between SEK 10 billion to SEK 15 billion. Of this market in the United States, we are estimating the smart watering control to be around somewhere between 8% to 12% market. And that's the market that we want to focus specifically on we are not interested in any of the drip irrigation or underground irrigation. That for us is more or less well saturated market with the competition. So our goal is to target the smart watering, somewhere between 8% to 12% with a very solid double-digit growth over the next few years. And that's where we are going to be focusing and we are there already in that market.

Do we have any further questions. Henrik?

Henrik Christiansson from DNB Carnegie. Question on the service market growth. Obviously, you have clear ambitions there. And I guess it varies widely between Pro and residential and between the product categories, groups, et cetera. So how do plan to grow there? Because my impression was that a lot of the service is actually provided by the dealers. I mean, yes, of course, you get the parts part, but the service part perhaps it's done by someone else. Is it like service contract type of business? Are you going to have more interactions through apps, et cetera, direct sales? And how will that compete with the important dealer channel?

Now I think, as I mentioned earlier, I think what we will do is we will continue to pass availability is a critical aspect of that, of course. And that were where -- and that comes back to the operational excellence, which we've talked about before. So we're putting a lot of effort and investments into making sure that parts are available at the right time at the right place. That's one aspect. And then we're also lifting up the the dealer standards in terms of getting a premium standards across and also a standard service wherever you go. So you recognize yourself if you're a service here or a service here it's the same high standard across all our dealer networks. So we're lifting up with dealer development programs that we're putting in place. So those are two aspects that I think about. And then we're also coming back to this predictive maintenance and service recommendations. I think that is also a very important element where we can leverage AI and data at much more scale than we're doing today. So those are three, I don't know if you want to add something.

Karin, anything to add?

Yes. I think from a dealer point of view, it's very similar. I would say that, of course, we have our service network through the dealers. But on top of that, in Construction, since it's so extremely key for our customers that we can give them fast support and then I'll talk especially on the bigger machines. We have our own service centers also. And this is something that we -- is a necessity for us and also sometimes mobile services when we, for instance, have the light demolition robots. And that we do sometimes ourselves and sometimes together with partners. Then you mentioned the parts availability is, of course, really key, but also the competence and the technicians and how to work with it. Service contract is also an important part on the bigger machines, both to make sure that they are serviced and maintain in a good way to have uptime or not to have downtime. So I think there are several of these aspects that we are constantly working on how to improve and also have this close relationship with our customers that is so key for us.

Perhaps on the residential side as well.

Anything to say?

Sure. So obviously, spare parts is a very big topic for us as well and providing that to our consumers, but also specifically with robotics, where we actually offer special services like the winterization where consumers send in their product, and we have our own service centers in Germany, Eastern Europe as well as Southern Europe. So we actually do the service ourselves as well. And for me, I think the biggest eyeopening is that consumers are sending the product and not because it's broken, but to make sure it does not break down. And that is the opportunity for us in the future, how to have more maintenance service versus just a consumer experience that's not positive.

at the back?

Is Johan again here. I was curious about the Forest & Garden, you talked about increasing the share of wallet from 20% to 4% to 5% and sort of mentioned that the handheld were already at 40%. I think it touches a little bit on Henrik's question. But what do you mean? I can imagine in handhelds, you sell some fuels, I think, et cetera. Is that sort of adding products? Or what is included in this bullet you talk about?

Yes. I mean it's in the change of specific, which I mentioned here, -- and it's really creating the whole ecosystem for what the customer needs. So it could be like you mentioned some examples, it could be fuels. It could parts. It could be accessories. I mean it's basically providing that, again, the same standard is available wherever the customer is needing it. I think that is one aspect that we need to lift across, I think, more across the full dealer network basically. So we don't have pockets of weakness. We had the same premium standards across scaling that up that we did with the change to do the same in the other product categories as well.

And that could be sort of adding partner -- third-party products to your sort of aftermarket product?

Yes. It could be using a partner-based dealer network as well to get those out yes.

Yes. And on Construction, just in the aftermarket, are you including your consumables or...

You mean the diamond tools. No. No. So that is, of course, also a big area for us with for recurring revenues and something that is very important to us. And we have diamond tools in the sawing and drilling obviously, but also in the surface preparation area with the surfaces tools. And this is a key part and something that is very important to us.

Okay. And then the SEK 4 billion in cost savings, have you said anything how you aim to split it between these 3 different businesses?

It's actually largest in Forest & Garden, given it's the largest size, but all 3 divisions have a similar, let me call it, ambition. But as I said, 35% of the total weighting of the program from sourcing, which is important to all 3, 20% design to value, 20% manufacturing, 15% logistics and 10% organizational efficiency. So all actually a very similar weighting, I would point.

Anyone else?

I had a question on -- let me see, yes, Forest & Garden. And I mean, over the years, we heard that you try to avoid retail space and now you are expanding to -- back into the retail space. What's the new game here that we should understand?

The new game is is simple. We need to be where the customers are shopping. And we will continue to expand into retail as well as online. We're going to expand in the multichannel. We need to be where the customers are.

Are the risk of being -- I mean, pricing is perhaps differently, et cetera, and the dealers are more profitable for you, most likely different mix, et cetera. But I mean, will this change your margin profile? Or how should we think about that? .

Maybe I can just say, first of all, to be clear, there is a dedicated retail Husqvarna-branded robotic range. So it would be a slightly different range to the dealer channel in that sense. I mean there will be a force overlap, but it's a dedicated retail specific set of models. .

And maybe if I can ask one last question on savings. I mean, you talked about 60% near midterm and then the rest by the end of 2030. Could we get some flavor on like '26, '27? Or are there -- can you shed some light on net impact?

I don't think we're going to go into that level of detail just yet. Of course, more transparency will come as we go into the years ahead. But I think 60% of the SEK 4 billion within the next 2 to 3 years, I think, is quite some ambition. And I think what it really clearly demonstrates is we've already started on this, the actions, the activities, they are clear. And we have to execute on those now. That's the important message. We're not talking about a hockey stick effect where this happens in the last 4, 5 years of this program. This will happen quickly in the next 2 or 3 years, 60%.

We have a question from the webcast from Adela Dashian from Jefferies for you, Maha. So if you can give an update on how the Gardena brand has been received among U.S. retailers.

Yes, that's a very good question. So obviously, the U.S. retailer have had quite an interesting year to say the least, with all the tariffs that has been coming through as well as post-COVID. And where we're seeing right now, the American retailers is their focus, and they have been very public about it as well, is to be able to offer value to their consumers. So we have seen quite a significant growth in private label and their focus has been into that space, especially this past year, and they have indicated also in their line of views that is where they're going to focus in the future as well. The Gardena brand in the U.S. is mostly an online brand. So we are mostly on Amazon.com as well as in specialty gardening stores. We have slight presence in the retail in flow specifically. The perception has been well. We are still going to maintain our presence there as well. But it's really an online brand where we're building the brand story, the quality, the heritage, the German manufacturing. So retailers per se for us with Gardena is not as big of a topic in the U.S. like it is in Europe.

Very clear. And another question for the divisions, perhaps, if we can expect a significant innovation and new product launch that could be seen as a game changer or as a world's first. Maybe you Karin.

Could I start? Yes. We just saw some of it perhaps not online, of course. Now as I mentioned, Husqvarna Auto grinder is, of course, a really good innovation where it increases productivity a lot for our customers since they can do other things when the machine operates instead of keeping control of the machine. So if I should choose one, I would just say that self-operated floor grinder is one of them.

Good. Anything to add from you?

I mean in terms of -- you've seen some of the innovations that we're launching today, and we've also presented some -- we're very confident. These are really strong innovations and we'll deliver great value in '26 and forward. And of course, we're confident as well in terms of the pipeline that we're setting out, but that will come back to in due that.

And on the Gardena side, it's all about water savings and water management and doing it in a smart digital way. and the capabilities that are coming down the pipeline about management of large-scale environments, whether it's a garden or public spaces, that is where all the innovations are going to be coming in that space.

Bjorn?

So I can have one on the cost savings there as well, the SEK 1.5 billion that you take and do you expect. I mean that's pretty solid delivery there. So I was just wondering that SEK 1.5 billion. Is it right to think about it is that, that has to do with the 20% efficiencies, so the product out, so basically right on our old products, a potential closure of footprint, et cetera. Just to get an understanding of that SEK 1.5 billion where that would come from. Because a lot of it sourcing, design to value is more a behavioral change or cultural change of the way of working, operating what is driving the SEK 1.5 billion?

It's a number of different factors. Of course, addressing our manufacturing footprint is one of them. And we did talk about already that we would close and of course, that generates a onetime cost. I think we said some SEK 140 million cost to close the blasted manufacturing site. So that -- it's that type of thing. But it's really a broad spectrum of costs. I mean we want to drive administration efficiency. So of course, there's impact there with complexity reduction itself, of course, generates costs as well. So it's really across the board. There's not one specific area that stands out it's in all kind of pockets of the business.

How would start logistics footprint is another key area that we're going to look at in a lot more detail, generating some 15% of those savings. So that will incur some onetime costs.

Now we have a question from the webcast regarding tariffs. So you mentioned seeing low single-digit price increases going forward. Does that include your outlook on on further headwinds from tariff?

Yes, tariffs, of course, they started to kick in around May, June time, if I remember correctly, during this year. So there is a little bit of a -- from a year-over-year perspective. There is a little bit of a carryover into the first half of the year, next year. And we expect tariffs to probably have another SEK 200 million to SEK 300 million impact in the first half of next year growth. And then, of course, we are doing some price increases. We've already implemented price increases to mitigate a lot of that tariff pressure, but the tariff pressure will carry over into the first half of next year. I think that's really a message we want to get across. And then yes, low single digit is our price ambitions for the years ahead at least at the moment.

Do we have any final questions from the audience? No. All right. So with that, we will close the Q&A session for now. And thank you all for all your questions and also for attending here in Stockholm today. And to our online viewers, thank you for watching. There will be a replay available online shortly. So we will finish today with a to go lunch for those of you who are attending in person. It will be a mingle lunch or you can choose if you want to bring it or if you want to stay. So with that, thank you from my end. And also thank you again to the online audience.

So just to conclude now, you're running too early, save the best to last. Now just to conclude, first and foremost, thanks for joining us today. It's been an amazing morning, high energy, and I think particularly felt it out in the product exhibition area when you feel the real products we're bringing to market. So thank you for joining us. We started the day off actually talking about the transformation journey really towards profitable growth. And I used 2 words a lot at the beginning, is focused on is execution. And the whole intent of the presentation was our but we're going to be focused in the next phase, and we're going to execute. The strategy has 3 clear areas: operational excellence, which is our transformational cost-out. It is a fundamental fueling engine for our journey. Some of the colleagues even used the term for growth. That is our internal branding of this program. It is already up and running. Do not see it as a program that is out there somewhere. It is happening today. And I'm very, very pleased with our pipeline of savings activities. So the SEK 4 billion we are shooting for with high ambition. By doing that, that's going to give us the investment possibility, the investment engine into the innovation that we've been talking about and into 2 amazing brands. We talked a lot today, particularly in 2 divisions, we're actually covering all 3 visions that we have an aftermarket is a key differentiating point. High barriers to entry, having so many points of sale that we have, and that's a strength that we've got to capitalize on. We will continue to do so. For obvious reasons, really getting that closeness to the customer, the recurring revenues and really delighting our customers and solving their productivity and uptime issues. So all 3 divisional presidents started using very similar terminology there. It was preventive and proactive maintenance. That is what we will drive more and more of. And by doing this, hopefully, we start to show we've got even more focus. And the focus is really on the product range that we have. We lifted the lid today and give more transparency, very purposely so, where 11 business portfolio units. All in different stages, some imposable growth that we need to capitalize on, so when we need to increase the profitability and somewhere we have a turnaround case, but very clear transparency. What I do want to say is someone asked how much patience do you have, I think, is you, Henrik. We've got to do this with a sense of urgency, and I hope that comes through throughout the course of the day. If we cannot turn around these businesses, then we need to put the focus on the profitable growth. So we will do this with a sense of urgency. And as such, today, we launched 3 new financial targets supported by 2 sustainability targets. We need to get back to growth. Hopefully, that can through very loud and clear. Some segments where we can grow beyond GDP, some segments where you can grow with GDP. We've got to get back to profitable growth, and that starts today. Also, we have a very clear operating margin ambition. First, we've got to get to 10%. Terry described this in the midterm. That's what we're going to get to. And once we get there, we operate consistently above 10%. And that is critical to this group, and we continue fueling that engine to investing in our brands and our innovation. And last but not least, we must be more capital efficient than we've been. We start from a low base at 7%. We get to 10% and then we get to 15% through 2030, both supported by 2 strong sustainability targets that we feel are a clear differentiator to Husqvarna Group operating in our 2 industries. So really, I hope I leave you with that strong sense of urgency, a strong sense of focus and a strong sense of execution ability to deliver on our profitable growth journey. With that, I wish you a fantastic rest of day. Thank you.