Hexagon

Earnings Release • Jan 23, 2023

Press Release

Stockholm, Sweden, 23 January 2023

Hexagon announces a summary of its Q4 2022 results and changes the release date of its full year-end report following an isolated email incident

Due to an isolated event concerning unauthorised access of one specific email account that contained information related to Hexagon's Q4 2022 results, Hexagon is releasing a summary of its fourth quarter 2022 results ahead of its full year-end report. A swift investigation confirmed no impact to Hexagon's internal networks or operations, nor was any evidence found that confidential information was taken. The incident has been fully resolved.

Fourth quarter 2022 summary:

• Operating net sales increased by 15 per cent to 1,403.2 MEUR (1,216.7), reflecting organic growth of 8 per cent, a contribution from structure of 2 per cent and currency translation effects of 5 per cent.
• All regions saw healthy organic growth development (EMEA: 11 per cent, Americas: 7 per cent and Asia: 7 per cent).
• Geospatial Enterprise Solutions (GES) operating net sales amounted to 662.0 MEUR (586.5), reflecting organic growth of 5 per cent, led by a strong development in Autonomy & Positioning (15 per cent) and a stable trend in both Geosystems (4 per cent) and Safety, Infrastructure & Geospatial (3 per cent).
• Industrial Enterprise Solutions (IES) operating net sales amounted to 741.2 MEUR (630.2) reflecting organic growth of 12 per cent, with both Manufacturing Intelligence (13 per cent) and Asset Lifecycle Intelligence (8 per cent) contributing strongly.
• Adjusted operating earnings (EBIT1) increased by 12 per cent to 418.0 MEUR (373.1) with a corresponding margin of 29.8 per cent (30.7). The EBIT1 margin was positively impacted by healthy volume growth, favourable price-cost development, and new product introductions, reflected in a record gross margin of 66.2 per cent (65.0), but negatively impacted by net currency effects (translation impact: 23.5 MEUR, transaction impact: -20.5 MEUR).

Note: the fourth quarter 2022 summary has not been reviewed by the Company's auditors.

"Hexagon takes privacy and security seriously and we felt it prudent to report a summary of our fourth quarter numbers as soon as possible. Hexagon had a strong finish to 2022, moving into the new year with good momentum. I look forward to discussing the results in more detail on 24 January", says Hexagon President and CEO Paolo Guglielmini.

No additional information will be given ahead of Hexagon releasing its Year-End report for 2022 on the revised date of Tuesday, 24 January, at approximately 08:00 CET. A new invitation to the live webcast and telephone conference with time and call-in details will be announced separately.

For further information, please contact:

Anton Heikenström, Investor Relations and Business Analyst, Hexagon AB, +46 8 601 26 26, ir@hexagon.com Kristin Christensen, Chief Marketing Officer, Hexagon AB, +1 404 554 0972, media@hexagon.com

This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on 23 January 2023.

Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications.

Our technologies are shaping production and people related ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future.

Hexagon (Nasdaq Stockholm: HEXA B) has approximately 23,000 employees in 50 countries and net sales of approximately 5.2bn EUR. Learn more at hexagon.com and follow us @HexagonAB.