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Hexagon
Interim / Quarterly Report • Jul 27, 2021
2919_ir_2021-07-27_a3c18262-6e8b-4af4-b0fe-bc41a4d88c78.pdf
Interim / Quarterly Report
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INTERIM REPORT
1 JANUARY - 30 JUNE 2021
SECOND QUARTER
- Net sales increased by 20 per cent to 1,075.6 MEUR (896.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 20 per cent
- Adjusted operating earnings (EBIT1) increased by 33 per cent to 301.1 MEUR (226.5)
- Earnings before taxes, excluding adjustments, amounted to 294.3 MEUR (220.1)
- Net earnings, excluding adjustments, amounted to 241.4 MEUR (180.5)
- Earnings per share, excluding adjustments, amounted to 0.09 EUR (0.07)
- Operating cash flow increased to 275.4 MEUR (239.2)
| MEUR | Q2 2021 | Q2 2020 | Δ% | 6M 2021 | 6M 2020 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 1,075.6 | 896.6 | 20 1) |
2,053.5 | 1,786.5 | 15 1) |
| Adjusted gross earnings2) | 692.8 | 550.7 | 26 | 1,322.0 | 1,122.3 | 18 |
| Adjusted gross margin, %2) | 64.4 | 61.4 | 3.0 | 64.4 | 62.8 | 1.6 |
| Adjusted operating earnings (EBITDA)2) | 402.8 | 362.6 | 11 | 769.5 | 649.8 | 18 |
| Adjusted EBITDA margin, %2) | 37.4 | 40.4 | -3.0 | 37.5 | 36.4 | 1.1 |
| Adjusted operating earnings (EBIT1)2) | 301.1 | 226.5 | 33 | 559.0 | 418.9 | 33 |
| Adjusted operating margin, % | 28.0 | 25.3 | 2.7 | 27.2 | 23.4 | 3.8 |
| Earnings before taxes, excluding | ||||||
| adjustments | 294.3 | 220.1 | 34 | 544.6 | 406.7 | 34 |
| Adjustments (before taxes)3) | -4.9 | -135.0 | n.a. | -9.7 | -135.0 | n.a. |
| Earnings before taxes | 289.4 | 85.1 | 240 | 534.9 | 271.7 | 97 |
| Net earnings | 237.3 | 70.6 | 236 | 438.6 | 223.6 | 96 |
| Net earnings, excl. adjustments | 241.4 | 180.5 | 34 | 446.6 | 333.5 | 34 |
| Earnings per share, EUR | 0.09 | 0.03 | 200 | 0.17 | 0.09 | 89 |
| Earnings per share, excl. | ||||||
| adjustments, EUR | 0.09 | 0.07 | 29 | 0.17 | 0.13 | 31 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2)For definition, see page 17.
3)Adjustments in 2021 relate to a share programme (LTIP).
COMMENTS FROM THE CEO
"The past quarter was Hexagons strongest ever, sales, operating earnings and margins are at an all-time high. We also report a solid cash conversion of 113 per cent. Continued high activities in the global construction and infrastructure markets coupled with increased demand for new solutions resulted in a stellar 31 per cent organic growth for Geosystems. Manufacturing in Europe and North America recovered while strong demand in China and the software portfolios continued, resulting in 24 per cent organic growth for Manufacturing Intelligence. The Safety and Infrastructure division recorded 2 per cent organic growth on the back of a tough comparison in public safety solutions and weakness in defence. The PPM division, hampered by the weakness in oil and gas, contracted organically by -4 per cent – although the operations and maintenance solutions and the AEC portfolio recorded doubledigit growth. As previously communicated, we expect PPM to gradually start growing again in the second half of the year.
Our long-term strategy – to be a global leader in digital reality solutions, combining sensors, software and autonomous technologies – was reinforced when we signed an agreement to acquire Infor's EAM business in July. The acquisition will serve the entire company, providing opportunities to further expand within operations and maintenance and boost efficiency, productivity, quality and safety in buildings, infrastructure, utilities, energy, manufacturing and much more."
– Ola Rollén, President and CEO, Hexagon AB
ADJUSTED OPERATING MARGIN 28 %
CONVERSION
GROUP BUSINESS DEVELOPMENT Q2
NET SALES
Net sales increased by 20 per cent to 1,075.6 MEUR (896.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 20 per cent. Regionally, organic growth was 27 per cent in EMEA, 18 per cent in Asia and 14 per cent in Americas. In EMEA, Western Europe recorded 25 per cent organic growth, mainly driven by strong demand in surveying, infrastructure and construction and a recovery in manufacturing. Eastern Europe, Russia, the Middle East and Africa also recorded strong doubledigit organic growth. In Asia, China recorded 25 per cent organic growth, mainly driven by strong demand in manufacturing, infrastructure and construction. Australia and India recovered and recorded strong growth; however, Eastern Asia remained weak. In the Americas, North America recorded 14 per cent organic growth, fuelled by a broad-based recovery in surveying, infrastructure, construction and manufacturing, but hampered by weakness in power and energy and defence. South America recorded high doubledigit growth supported by a strong development in surveying, power and energy and mapping segments.
EARNINGS
Adjusted operating earnings (EBIT1) increased by 33 per cent to 301.1 MEUR (226.5), which corresponds to an adjusted operating margin of 28.0 per cent (25.3). The adjusted operating margin (EBIT1) was positively impacted by volume growth, cost savings and a richer product mix but adversely impacted by currency movements. Adjusted operating earnings (EBIT1) were negatively impacted by currency translation effects of -17.5 MEUR and negatively impacted by currency transaction effects of -3.2 MEUR. Earnings before taxes, excluding adjustments, amounted to 294.3 MEUR (220.1) and were negatively impacted by currency translation effects of -17.5 MEUR.
FINANCIAL SUMMARY - SECOND QUARTER
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | Q2 2021 | Q2 2020 | Δ% 1) | Q2 2021 | Q2 2020 | Δ% |
| Geospatial Enterprise Solutions | 560.4 | 457.6 | 24 | 176.4 | 118.9 | 48 |
| Industrial Enterprise Solutions | 515.2 | 439.0 | 16 | 129.9 | 110.9 | 17 |
| Net sales | 1,075.6 | 896.6 | 20 | |||
| Group cost | -5.2 | -3.3 | -58 | |||
| Adjusted operating earnings (EBIT1) | 301.1 | 226.5 | 33 | |||
| Adjusted operating margin, % | 28.0 | 25.3 | 2.7 | |||
| Interest income and expenses, net | -6.8 | -6.4 | -6 | |||
| Earnings before adjustments | 294.3 | 220.1 | 34 | |||
| Adjustments2) | -4.9 | -135.0 | n.a. | |||
| Earnings before taxes | 289.4 | 85.1 | 240 | |||
| Taxes | -52.1 | -14.5 | -259 | |||
| Net earnings | 237.3 | 70.6 | 236 | |||
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2)Adjustments in 2021 relate to a share programme (LTIP).
CURRENCY TRANSLATION IMPACT COMPARED TO EUR - SECOND QUARTER
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Weakened | -3% | Negative | Positive |
| USD | Weakened | -9% | Positive | Negative |
| CNY | Strengthened | 0% | Positive | Positive |
| EBIT1, MEUR | -17.5 |
1)Compared to Q2 2020
SALES BRIDGE - SECOND QUARTER ORGANIC GROWTH1) PER REGION
| Net sales1) | Region | Q2 2021 | |
|---|---|---|---|
| 2020, MEUR | 896.6 | North America (30% of sales) | ↗ |
| Structure, % | 4 | Western Europe (30% of sales) | ↗ |
| Currency, % | -4 | 2 China (16% of sales) | ↗ |
| Organic growth, % | 20 | Asia excl. China (13% of sales) | ↗ |
| Total, % | 20 | EMEA excl. Western Europe (8% of sales) | ↗ |
1)Net sales from acquisitions and divestments during the last twelve months are reported as "Structure" in the table above. Percentages are rounded to the nearest whole per cent.
| Net sales1) | Region | Q2 2021 | ||
|---|---|---|---|---|
| 2020, MEUR | 896.6 | North America (30% of sales) | ↗ | |
| Structure, % | 4 | Western Europe (30% of sales) | ↗ | |
| Currency, % | -4 | 2 China (16% of sales) | ↗ | |
| Organic growth, % | 20 | Asia excl. China (13% of sales) | ↗ | >8% ↗ |
| Total, % | 20 | EMEA excl. Western Europe (8% of sales) | ↗ | 0-8% → |
| 2021, MEUR | 1,075.6 | South America (3% of sales) | ↗ | Negative ↘ |
| 1)Net sales from acquisitions and divestments during the last twelve | Total | ↗ |
1)Adjusted to fixed exchange rates and a comparable group structure (organic growth).
GEOSPATIAL ENTERPRISE SOLUTIONS – Q2 2021
Geospatial Enterprise Solutions includes a world-leading portfolio of sensors for capturing data from land and air as well as sensors for positioning via satellites. The sensors are complemented by software (GIS) for the creation of 3D maps and models which are used for decision-making in a range of software applications, covering areas such as surveying, construction, public safety and agriculture. This segment consists of Geosystems, Safety & Infrastructure and Autonomy & Positioning.
NET SALES
Geospatial Enterprise Solutions (GES) net sales amounted to 560.4 MEUR (457.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 24 per cent. Regionally, organic growth was 32 per cent in EMEA, 19 per cent in Asia and 17 per cent in Americas. In EMEA, Western Europe recorded 31 per cent organic growth, supported by strong demand in the surveying, infrastructure and construction segments. The rest of EMEA also recorded strong double-digit organic growth. In Asia, China recorded 12 per cent organic growth, despite tough comparatives, mainly driven by strong growth in surveying, infrastructure and construction. Australia and India recovered, recording solid organic growth; however, Japan and South Korea contracted. In the Americas, North America recorded 17 per cent organic growth, positively impacted by strong demand in surveying, infrastructure and construction and agriculture, but hampered by a tough comparison in defence. South America recorded double-digit organic growth, supported by strong demand for mining solutions.
Geosystems recorded 31 per cent organic growth, supported by a strong recovery in all regions and solid demand for surveying, infrastructure and construction solutions. The mining segment, which grew throughout 2020, also recorded good growth in the quarter. The Safety & Infrastructure division recorded 2 per cent organic growth, positively impacted by solid growth in infrastructure but hampered by a tough comparison in public safety and weakness in defence. The Autonomy & Positioning division recorded 18 per cent organic growth, fuelled by strong growth in agriculture, but hampered by a tough comparison in defence markets.
EARNINGS
Adjusted operating earnings (EBIT1) increased by 48 per cent to 176.4 MEUR (118.9), which corresponds to an adjusted operating margin of 31.5 per cent (26.0). The adjusted operating margin (EBIT1) was positively impacted by volume growth, cost savings measures and a richer product mix but adversely impacted by currency movements.
NET SALES, EARNINGS AND NUMBER OF EMPLOYEES
| MEUR | Q2 2021 | Q2 2020 | Δ% | 6M 2021 | 6M 2020 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 560.4 | 457.6 | 24 1) | 1,063.0 | 911.4 | 19 1) |
| Adjusted operating earnings (EBIT1) | 176.4 | 118.9 | 48 | 320.2 | 221.3 | 45 |
| Adjusted operating margin, % | 31.5 | 26.0 | 5.5 | 30.1 | 24.3 | 5.8 |
| Avg. number of employees | 9,154 | 9,064 | 1 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES PER REGION – SECOND QUARTER NET SALES PER CUSTOMER SEGMENT - SECOND QUARTER
INDUSTRIAL ENTERPRISE SOLUTIONS – Q2 2021
Industrial Enterprise Solutions includes metrology systems that incorporate the latest in sensor technology for fast and accurate measurements, as well as CAD (computer-aided design), CAM (computer-aided manufacturing) and CAE (computer-aided engineering) software. These solutions optimise design, processes and throughput in manufacturing facilities and create and leverage asset management information critical to the planning, construction and operation of plants and process facilities in a number of industries, such as automotive, aerospace and oil and gas. Industrial Enterprise Solutions consists of Manufacturing Intelligence and PPM.
NET SALES
Industrial Enterprise Solutions (IES) net sales amounted to 515.2 MEUR (439.0). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 16 per cent. Regionally, organic growth was 21 per cent in EMEA, 17 per cent in Asia and 10 per cent in Americas. In EMEA, Western Europe recorded 17 per cent organic growth, driven by a recovery in manufacturing, but hampered by continued weakness in power and energy. Russia, Eastern Europe and the Middle East recorded solid double-digit organic growth. In Asia, China recorded 29 per cent organic growth, mainly driven by continued strong demand in manufacturing. India saw a recovery in manufacturing but weakness in power and energy. Eastern Asia slightly declined. In the Americas, North America recorded 9 per cent organic growth, which was mainly driven by a recovery in the automotive segment but hampered by continued weakness in oil and gas. South America recorded strong double-digit growth.
Manufacturing Intelligence recorded 24 per cent organic growth, mainly driven by a broad-based recovery in Europe and North America and continued strong growth in China and the software portfolios. The PPM division recorded -4 per cent organic growth, hampered by a challenging oil and gas market. The operations and maintenance solutions and AEC (architecture, engineering and construction) software portfolios continued to record double-digit growth. PPM is expected to gradually start growing again from the second half of the year.
EARNINGS
Adjusted operating earnings (EBIT1) increased by 17 per cent to 129.9 MEUR (110.9), which corresponds to an adjusted operating margin of 25.2 per cent (25.3). The adjusted operating margin (EBIT1) was negatively impacted by the product mix.
NET SALES, EARNINGS AND NUMBER OF EMPLOYEES
| MEUR | Q2 2021 | Q2 2020 | Δ% | 6M 2021 | 6M 2020 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 515.2 | 439.0 | 16 1) | 990.5 | 875.1 | 12 1) |
| Adjusted operating earnings (EBIT1) | 129.9 | 110.9 | 17 | 248.6 | 203.7 | 22 |
| Adjusted operating margin, % | 25.2 | 25.3 | -0.1 | 25.1 | 23.3 | 1.8 |
| Avg. number of employees | 11,659 | 11,292 | 3 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
NET SALES PER REGION – SECOND QUARTER NET SALES PER CUSTOMER SEGMENT – SECOND QUARTER
FINANCIAL SUMMARY – 6M 2021
NET SALES
Net sales amounted to 2,053.5 MEUR (1,786.5) for the first six months of the year. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 15 per cent.
EARNINGS
Operating earnings (EBIT1) amounted to 559.0 MEUR (418.9), which corresponds to an operating margin of 27.2 per cent (23.4). Operating earnings (EBIT1) were negatively affected by currency translation effects of -37.0 MEUR and by currency transaction effects of 3.9 MEUR.
The financial net amounted to -14.4 MEUR (-12.2) for the first six months of the year.
Earnings before taxes, excluding adjustments, amounted to 544.6 MEUR (406.7). Earnings before taxes, including these items, amounted to 534.9 MEUR (271.7) and were negatively impacted by currency translation effects of -37.0 MEUR.
Net earnings, excluding adjustments, amounted to 446.6 MEUR (333.5) or 0.17 EUR (0.13) per share. Net earnings, including these items, amounted to 438.6 MEUR (223.6) or 0.17 EUR (0.09) per share.
FINANCIAL SUMMARY - 6M 2021
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | 6M 2021 | 6M 2020 | Δ% 1) | 6M 2021 | 6M 2020 | Δ% |
| Geospatial Enterprise Solutions Industrial Enterprise Solutions |
1,063.0 990.5 |
911.4 875.1 |
19 12 |
320.2 248.6 |
221.3 203.7 |
45 22 |
| Net sales | 2,053.5 | 1,786.5 | 15 | |||
| Group cost | -9.8 | -6.1 | -61 | |||
| Operating earnings (EBIT1) | 559.0 | 418.9 | 33 | |||
| Operating margin, % | 27.2 | 23.4 | 3.8 | |||
| Interest income and expenses, net | -14.4 | -12.2 | -18 | |||
| Earnings before adjustments | 544.6 | 406.7 | 34 | |||
| Adjustments2) | -9.7 | -135.0 | n.a. | |||
| Earnings before taxes | 534.9 | 271.7 | 97 | |||
| Taxes | -96.3 | -48.1 | -100 | |||
| Net earnings | 438.6 | 223.6 | 96 | |||
| 1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth. |
2)Adjustments 2021 relates to a share programme (LTIP).
CURRENCY TRANSLATION IMPACT COMPARED TO EUR - 6M 2021
| Movement 1) | Income less cost | Earnings impact | |
|---|---|---|---|
| CHF | Weakened -3% |
Negative | Positive |
| USD | Weakened -9% |
Positive | Negative |
| CNY | Weakened -1% |
Positive | Negative |
| EBIT1, MEUR | -37.0 |
1)Compared to 6M 2020.
Hexagon acquired CADLM, a pioneer in powering computer-aided engineering (CAE) by applying artificial intelligence (AI) and machine learning to real-world sensor data and physics-based simulation data to produce accurate, predictive models of a product at efficient computing power levels. The combination enables faster, more efficient simulations of dynamic, multi-physics phenomena - such as automotive crash and safety - that fully characterise and understand real-world product behaviour.
GROUP SUMMARY
PROFITABILITY
Capital employed increased to 8,945.5 MEUR (8,673.5). Return on average capital employed for the last twelve months was 12.5 per cent (10.9). Return on average shareholders' equity over the previous twelve months was 13.4 per cent (10.1). The capital turnover rate was 0.5 times (0.4).
FINANCIAL POSITION
Total shareholders' equity increased to 6,379.6 MEUR (6,185.3). The equity ratio was 57.7 per cent (58.2). Hexagon's total assets increased to 11,051.5 MEUR (10,633.8). The increase in total assets is driven primarily by acquisitions. Hexagon's main sources of financing consist of:
1) A multicurrency revolving credit facility (RCF) established in 2014. The RCF amounts to 2,000 MEUR with maturity 2022
2) A Swedish Medium Term Note Programme (MTN) established in 2014. The MTN programme amounts to 20,000 MSEK with tenor up to 6 years
3) A Swedish Commercial Paper Programme (CP) established in 2012. The CP programme amounts to 15,000 MSEK with tenor up to 12 months.
On 30 June 2021, cash and unutilised credit limits totalled 1,753.3 MEUR (1,896.3). Hexagon's net debt was 2,153.2 MEUR (2,069.4). The net indebtedness was 0.31 times (0.30). Interest coverage ratio was 35.9 times (12.1).
CASH FLOW
During the second quarter, cash flow from operations before changes in working capital amounted to 338.9 MEUR (288.3), corresponding to 0.13 EUR (0.11) per share. Cash flow from operations in the second quarter amounted to 379.2 MEUR (344.2), corresponding to 0.15 EUR (0.13) per share. Operating cash flow in the second quarter, including non-recurring items, amounted to 275.4 MEUR (239.2).
For the first six months of the year, cash flow from operations amounted to 698.0 MEUR (592.8) corresponding to 0.27 EUR (0.23) per share. The operating cash flow, including nonrecurring items, amounted to 487.3 MEUR (376.1).
INVESTMENTS, DEPRECIATION, AMORTISATION AND IMPAIRMENT
Hexagon's net investments, excluding acquisitions and divestitures, amounted to -99.2 MEUR (-90.7) in the second quarter and -197.4 MEUR (-193.2) in the first six months of the year. Depreciation, amortisation and impairment amounted to -101.7 MEUR (-196.9) in the second quarter and -210.5 MEUR (-291.7) during the first six months of the year, whereof impairment charges amounted to 0.0 MEUR (-96.6) in the second quarter and -10.8 MEUR (-96.6) during the first six months of the year.
TAX RATE
The tax expense for the first six months of the year totalled -96.3 MEUR (-48.1). The reported tax rate was 18.0 per cent (17.0) for the quarter and 18.0 per cent (17.7) for the first six months of the year. The tax rate, excluding non-recurring items, was 18.0 per cent (18.0) for the quarter and 18.0 per cent (18.0) for the first six months of the year.
EMPLOYEES
The average number of employees during the second quarter was 20,907 (20,431). The number of employees at the end of the quarter was 21,078 (20,508).
SHARE DATA
The share split 7:1 resolved by the Annual General Meeting was transacted on 20 May, 2021. All historical data has been restated except for the share price.
Earnings per share, including adjustments, for the second quarter amounted to 0.09 EUR (0.03). Earnings per share, excluding adjustments, for the second quarter amounted to 0.09 EUR (0.07).
Earnings per share, including adjustments, for the first six months of the year amounted to 0.17 EUR (0.09). Earnings per share, excluding adjustments, for first six months of the year amounted to 0.17 EUR (0.13).
On 30 June 2021, equity per share was 2.48 EUR (2.40) and the share price was 126.80 SEK (544.00).
Hexagon's share capital amounts to 81,557,432 EUR, represented by 2,566,905,614 shares, of which 110,250,000 are of series A with ten votes each and 2,456,655,614 are of series B with one vote each. Hexagon holds 5,950,000 treasury shares.
PARENT COMPANY
The parent company's earnings before taxes in the second quarter amounted to -6.5 MEUR (18.1) and -4.5 MEUR (24.7) for the first six months of the year. The equity was 4,951.6 MEUR (5,142.7). The equity ratio of the parent company was 46 per cent (56). Liquid funds including unutilised credit limits were 1,344.1 MEUR (1,433.3).
Hexagon launched HxGN Connect, a SaaS workspace for citywide collaboration enabling government agencies and other diverse organisations to share data and coordinate action for ad-hoc, routine and emergency situations. HxGN Connect brings a city's public safety, transportation, utilities and other related organisations together seamlessly which means safer cities, more effective services and happier residents
ACCOUNTING PRINCIPLES
Hexagon applies International Financial Reporting Standards (IFRS) as adopted by the European Union. Hexagon's report for the Group is prepared in accordance with IAS 34, Interim Financial Reporting and the Annual Accounts Act. Parent company accounts are prepared in accordance with the Annual Accounts Act. Accounting principles and calculation methods are unchanged from those applied in the Annual Report for 2020, see note 1 for further information.
RISKS AND UNCERTAINTY FACTORS
As an international group, Hexagon is exposed to a number of business and financial risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity and the ability to raise funds. Risk management in Hexagon aims to identify, control and reduce risks. This work begins with an assessment of the probability of risks occurring and their potential effect on the Group. There has been no change in the risks facing the Group compared to what was reported in the Annual Report 2020.
SHARE PROGRAMME
A Share Programme has been implemented for key employees in the company. Participants in the share programme are offered to be granted, free of charge, performance awards that may entitle to Class B shares if performance conditions are met during the measurement period. The performance condition is related to the development of Hexagon's earnings per share compared with the target level set by the Board
during the measurement period 1 January 2020 to 31 December 2023, where the last financial year during the measurement period is compared with the financial year preceding the measurement period. The purpose of the incentive programme is to strengthen Hexagon's ability to retain and recruit competent employees, provide competitive renumeration and align the shareholders' interests with the interest of the employees concerned.
The share programme is accounted for according to IFRS 2 and is classified as an equity-settled share-based payment transaction, which means the programme is reported within equity. Social fees are reported as a liability in the balance sheet. The total cost of the share-based incentive programme is estimated at 60 MEUR and is recognised as a personnel expense in profit or loss during the vesting period.
RELATED PARTY TRANSACTIONS
No significant related party transactions have been incurred during the quarter.
SUBSEQUENT EVENTS
On 6 July Hexagon announced an agreement to acquire Infor's global EAM (enterprise asset management) business for approximately 2,750 MUSD. Completion of the transaction is subject to regulatory approvals and other customary conditions, which are expected to be fully completed during the fourth quarter 2021. For more information, please visit hexagon.com.
The Board of Directors and the President and CEO declare that this Interim Report provides a true and fair overview of the Company´s and the Group´s operations, its financial position and performance, and describes material risks and uncertainties facing the Company and companies within the Group.
Stockholm, Sweden, 27 July 2021 Hexagon AB (publ)
Gun Nilsson Chairman of the Board
Ola Rollén President and CEO Board Member
Henrik Henriksson Board Member
John Brandon Board Member
Märta Schörling Andreen Board Member
Ulrika Francke Board Member
Sofia Schörling Högberg Board Member
Patrick Söderlund Board Member
This Interim Report has not been reviewed by the Company's auditors.
CONDENSED INCOME STATEMENT
| MEUR | Q2 2021 | Q2 2020 | 6M 2021 | 6M 2020 | 2020 |
|---|---|---|---|---|---|
| Net sales | 1,075.6 | 896.6 | 2,053.5 | 1,786.5 | 3,764.4 |
| Cost of goods sold | -382.8 | -345.9 | -731.5 | -664.2 | -1,390.1 |
| Gross earnings | 692.8 | 550.7 | 1,322.0 | 1,122.3 | 2,374.3 |
| Sales expenses | -190.0 | -174.9 | -371.7 | -356.3 | -687.3 |
| Administration expenses | -83.4 | -91.0 | -165.8 | -169.1 | -328.2 |
| Research and development expenses | -123.1 | -126.5 | -243.7 | -243.1 | -462.7 |
| Capital gain (+) / loss (-) from sale of shares in Group companies | 0.3 | - | 0.3 | - | - |
| Other income and expenses, net | -0.4 | -66.8 | 8.2 | -69.9 | -109.1 |
| Operating earnings 1) | 296.2 | 91.5 | 549.3 | 283.9 | 787.0 |
| Financial income | 1.5 | 1.3 | 2.2 | 3.8 | 6.3 |
| Financial expenses | -8.3 | -7.7 | -16.6 | -16.0 | -33.7 |
| Earnings before taxes | 289.4 | 85.1 | 534.9 | 271.7 | 759.6 |
| Taxes | -52.1 | -14.5 | -96.3 | -48.1 | -134.9 |
| Net earnings | 237.3 | 70.6 | 438.6 | 223.6 | 624.7 |
| Attributable to: | |||||
| Parent company shareholders | 235.2 | 68.8 | 434.9 | 221.1 | 618.1 |
| Non-controlling interest | 2.1 | 1.8 | 3.7 | 2.5 | 6.6 |
| 1) of which adjustments | -4.9 | -135.0 | -9.7 | -135.0 | -169.2 |
| Earnings include depreciation, amortisation and impairments of | -101.7 | -196.9 | -210.5 | -291.7 | -534.2 |
| - of which amortisation of surplus values | -13.5 | -13.5 | -26.9 | -27.7 | -53.3 |
| Basic earnings per share, EUR | 0.09 | 0.03 | 0.17 | 0.09 | 0.24 |
| Earnings per share after dilution, EUR | 0.09 | 0.03 | 0.17 | 0.09 | 0.24 |
| Total shareholder's equity per share, EUR | 2.48 | 2.40 | 2.48 | 2.40 | 2.31 |
| Closing number of shares, thousands | 2,566,906 | 2,572,857 | 2,566,906 | 2,572,857 | 2,568,335 |
| Average number of shares, thousands | 2,566,906 | 2,572,857 | 2,567,302 | 2,572,836 | 2,572,780 |
| Average number of shares after dilution, thousands | 2,572,856 | 2,572,857 | 2,572,948 | 2,572,836 | 2,573,914 |
CONDENSED COMPREHENSIVE INCOME
| MEUR | Q2 2021 | Q2 2020 | 6M 2021 | 6M 2020 | 2020 |
|---|---|---|---|---|---|
| Net earnings | 237.3 | 70.6 | 438.6 | 223.6 | 624.7 |
| Other comprehensive income | |||||
| Items that will not be reclassified to income statement | |||||
| Remeasurement of pensions | 20.7 | 16.5 | 44.6 | -28.2 | -29.4 |
| Taxes on items that will not be reclassified to income statement | -2.1 | -1.7 | -4.5 | 2.8 | 3.6 |
| Total items that will not be reclassified to income statement, net | |||||
| of taxes | 18.6 | 14.8 | 40.1 | -25.4 | -25.8 |
| Items that may be reclassified subsequently to income statement | |||||
| Exchange rate differences | -51.0 | -94.6 | 208.3 | -94.2 | -468.5 |
| Taxes on items that may be reclassified subsequently to income | |||||
| statement | 4.8 | -1.2 | -5.6 | 4.8 | 23.3 |
| Total items that may be reclassified subsequently to income | |||||
| statement, net of taxes | -46.2 | -95.8 | 202.7 | -89.4 | -445.2 |
| Other comprehensive income, net of taxes | -27.6 | -81.0 | 242.8 | -114.8 | -471.0 |
| Total comprehensive income for the period | 209.7 | -10.4 | 681.4 | 108.8 | 153.7 |
| Attributable to: | |||||
| Parent company shareholders | 207.6 | -11.9 | 677.1 | 106.6 | 147.5 |
| Non-controlling interest | 2.1 | 1.5 | 4.3 | 2.2 | 6.2 |
CONDENSED BALANCE SHEET
| MEUR | 30/6 2021 | 30/6 2020 | 31/12 2020 |
|---|---|---|---|
| Intangible fixed assets | 8,173.0 | 7,791.8 | 7,941.8 |
| Tangible fixed assets | 504.7 | 488.6 | 480.1 |
| Right-of-use assets | 209.9 | 213.1 | 205.1 |
| Financial fixed assets | 66.2 | 65.7 | 80.4 |
| Deferred tax assets | 95.4 | 118.0 | 102.1 |
| Total fixed assets | 9,049.2 | 8,677.2 | 8,809.5 |
| Inventories | 408.1 | 425.4 | 371.1 |
| Accounts receivables | 896.1 | 847.2 | 884.7 |
| Other receivables | 143.6 | 117.5 | 113.3 |
| Prepaid expenses and accrued income | 141.8 | 147.7 | 127.6 |
| Total current receivables | 1,181.5 | 1,112.4 | 1,125.6 |
| Cash and cash equivalents | 412.7 | 418.8 | 397.4 |
| Total current assets | 2,002.3 | 1,956.6 | 1,894.1 |
| Total assets | 11,051.5 | 10,633.8 | 10,703.6 |
| Equity attributable to parent company shareholders | 6,365.5 | 6,170.4 | 5,934.8 |
| Equity attributable to non-controlling interest | 14.1 | 14.9 | 14.4 |
| Total shareholders' equity | 6,379.6 | 6,185.3 | 5,949.2 |
| Interest bearing liabilities | 1,750.0 | 1,479.3 | 1,995.4 |
| Lease liabilities | 156.8 | 159.2 | 153.5 |
| Other liabilities | 50.5 | 131.5 | 85.5 |
| Pension liabilities | 72.3 | 125.8 | 125.4 |
| Deferred tax liabilities | 469.2 | 454.6 | 460.2 |
| Other provisions | 15.4 | 9.2 | 14.7 |
| Total long-term liabilities | 2,514.2 | 2,359.6 | 2,834.7 |
| Interest bearing liabilities | 523.8 | 662.8 | 437.4 |
| Lease liabilities | 63.0 | 61.1 | 61.6 |
| Accounts payable | 231.9 | 195.2 | 207.4 |
| Other liabilities | 367.9 | 323.1 | 326.7 |
| Other provisions | 33.3 | 80.2 | 48.3 |
| Deferred income | 568.9 | 484.7 | 520.9 |
| Accrued expenses | 368.9 | 281.8 | 317.4 |
| Total short-term liabilities | 2,157.7 | 2,088.9 | 1,919.7 |
| Total equity and liabilities | 11,051.5 | 10,633.8 | 10,703.6 |
FINANCIAL INSTRUMENTS
In Hexagon's balance sheet derivatives and other long-term securities holdings are carried at fair value. Derivatives are measured at fair value based on valuation techniques with observable market data as input (level 2 according to definition in IFRS 13). Other longterm securities holdings amount to insignificant numbers. Liabilities for contingent considerations are measured at fair value and based on management's best estimation of the most probable outcome (level 3 according to definition in IFRS 13). Other assets and liabilities are carried at accrued cost.
For financial assets and liabilities that are carried at accrued cost, the fair value is deemed to be coincident with the carrying amount except for long-term liabilities to credit institutions. The difference between the fair value and the carrying amount for these long-term liabilities is deemed to be insignificant relative to the total balance sheet since the interest rate duration is short.
CONDENSED STATEMENT OF CHANGES IN EQUITY
| MEUR | Q2 2021 | Q2 2020 | 2020 |
|---|---|---|---|
| Opening shareholders' equity | 5,949.2 | 6,076.9 | 6,076.9 |
| Total comprehensive income for the period1) | 681.4 | 108.8 | 153.7 |
| Acquisition of treasury shares | -14.8 | - | -47.3 |
| Dividend | -243.3 | -0.4 | -234.1 |
| Share based programme (LTIP) | 7.1 | - | - |
| Closing shareholders' equity2) | 6,379.6 | 6,185.3 | 5,949.2 |
| 1) Of which: Parent company shareholders | 677.1 | 106.6 | 147.5 |
| Non-controlling interest | 4.3 | 2.2 | 6.2 |
| 2) Of which: Parent company shareholders | 6,365.5 | 6,170.4 | 5,934.8 |
| Non-controlling interest | 14.1 | 14.9 | 14.4 |
NUMBER OF SHARES
| series A | series B | Total | |
|---|---|---|---|
| 2014-12-31 Total issued and outstanding | 15,750,000 | 341,639,213 | 357,389,213 |
| New issue, warrants exercised | - | 2,947,929 | 2,947,929 |
| 2015-12-31 Total issued and outstanding | 15,750,000 | 344,587,142 | 360,337,142 |
| New issue, warrants exercised | - | 106,000 | 106,000 |
| 2016-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| New issue, warrants exercised | - | - | - |
| 2017-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| New issue, warrants exercised | - | 2,481,550 | 2,481,550 |
| 2018-12-31 Total issued and outstanding | 15,750,000 | 347,174,692 | 362,924,692 |
| New issue, warrants exercised | - | 4,614,610 | 4,614,610 |
| 2019-12-31 Total issued and outstanding | 15,750,000 | 351,789,302 | 367,539,302 |
| New issue, warrants exercised | - | 11,500 | 11,500 |
| Repurchase of treasury shares | - | -646,000 | -646,000 |
| 2020-12-31 Total outstanding | 15,750,000 | 351,154,802 | 366,904,802 |
| Repurchase of treasury shares | - | -204,000 | -204,000 |
| 2021-03-31 Total outstanding | 15,750,000 | 350,950,802 | 366,700,802 |
| Split 7:1 outstanding shares | 94,500,000 | 2,105,704,812 | 2,200,204,812 |
| 2021-06-30 Total outstanding | 110,250,000 | 2,456,655,614 | 2,566,905,614 |
| Total amount of treasury shares | 5,950,000 | 5,950,000 | |
| 2021-06-30 Total issued | 110,250,000 | 2,462,605,614 | 2,572,855,614 |
Each share of series A carries entitlement to ten votes and each share of series B carries entitlement to one vote.
CONDENSED CASH FLOW STATEMENT
| MEUR | Q2 2021 | Q2 2020 | 6M 2021 | 6M 2020 | 2020 |
|---|---|---|---|---|---|
| Cash flow from operations before change in working capital | |||||
| excluding taxes and interest | 398.7 | 322.8 | 753.6 | 605.5 | 1,340.9 |
| Taxes paid | -52.1 | -26.7 | -102.9 | -82.8 | -163.2 |
| Interest received and paid, net | -7.7 | -7.8 | -13.1 | -12.2 | -24.5 |
| Cash flow from operations before change in working capital | 338.9 | 288.3 | 637.6 | 510.5 | 1,153.2 |
| Cash flow from change in working capital | 40.3 | 55.9 | 60.4 | 82.3 | 221.3 |
| Cash flow from operations | 379.2 | 344.2 | 698.0 | 592.8 | 1,374.5 |
| Investments tangible assets, net | -21.6 | -24.0 | -48.4 | -51.4 | -96.7 |
| Investments intangible assets | -77.6 | -66.7 | -149.0 | -141.8 | -286.6 |
| Operating cash flow before non-recurring items | 280.0 | 253.5 | 500.6 | 399.6 | 991.2 |
| Non-recurring cash flow 1) | -4.6 | -14.3 | -13.3 | -23.5 | -70.5 |
| Operating cash flow | 275.4 | 239.2 | 487.3 | 376.1 | 920.7 |
| Cash flow from acquisitions and divestments | -9.6 | -110.0 | -34.2 | -255.6 | -760.5 |
| Cash flow from other investing activities | -0.4 | 0.2 | 4.6 | -11.7 | -34.5 |
| Cash flow after other investing activities | 265.4 | 129.4 | 457.7 | 108.8 | 125.7 |
| Dividends paid | -243.3 | -0.4 | -243.3 | -0.4 | -234.1 |
| Repurchase of Treasury shares | - | - | -14.8 | 0.0 | -47.3 |
| Cash flow from other financing activities | -56.9 | -99.5 | -199.1 | -144.7 | 92.7 |
| Cash flow for the period | -34.8 | 29.5 | 0.5 | -36.3 | -63.0 |
| Cash and cash equivalents, beginning of period | 444.4 | 403.6 | 397.4 | 468.3 | 468.3 |
| Effect of translation differences on cash and cash equivalents | 3.1 | -14.3 | 14.8 | -13.2 | -7.9 |
| Cash flow for the period | -34.8 | 29.5 | 0.5 | -36.3 | -63.0 |
| Cash and cash equivalents, end of period | 412.7 | 418.8 | 412.7 | 418.8 | 397.4 |
1) Non-recurring cash flow consists of restructuring costs.
KEY RATIOS
| MEUR | Q2 2021 | Q2 2020 | 6M 2021 | 6M 2020 | 2020 |
|---|---|---|---|---|---|
| Adjusted operating margin, % | 28.0 | 25.3 | 27.2 | 23.4 | 25.4 |
| Profit margin before taxes, % | 26.9 | 9.5 | 26.0 | 15.2 | 20.2 |
| Return on shareholders' equity, 12-month average, % | 13.4 | 10.1 | 13.4 | 10.1 | 10.1 |
| Return on capital employed ,12-month average, % | 12.5 | 10.9 | 12.5 | 10.9 | 11.1 |
| Equity ratio, % | 57.7 | 58.2 | 57.7 | 58.2 | 55.6 |
| Net indebtedness | 0.31 | 0.30 | 0.31 | 0.30 | 0.37 |
| Interest coverage ratio | 35.9 | 12.1 | 33.2 | 18.0 | 23.5 |
| Average number of shares, thousands1) | 2,566,906 | 2,572,857 | 2,567,302 | 2,572,836 | 2,572,780 |
| Basic earnings per share excl. adjustments, EUR1) | 0.09 | 0.07 | 0.17 | 0.13 | 0.29 |
| Basic earnings per share, EUR1) | 0.09 | 0.03 | 0.17 | 0.09 | 0.24 |
| Cash flow per share, EUR1) | 0.15 | 0.13 | 0.27 | 0.23 | 0.53 |
| Cash flow per share before change in working cap, EUR1) | 0.13 | 0.11 | 0.25 | 0.20 | 0.45 |
| Share price, SEK2) | 126.80 | 544.00 | 126.80 | 544.00 | 749.80 |
| Share price, translated to EUR2) | 12.54 | 51.84 | 12.54 | 51.84 | 74.72 |
1)All comparatives to per share data have been adjusted to reflect the split 7:1 during Q2 2021.
2)The share price for Q2 2021 reflects the adjustment of the split 7:1. Historic data has not been restated.
SUPPLEMENTARY INFORMATION
NET SALES PER SEGMENT
| MEUR | Q2 2021 | Q1 2021 | 2021 | Q4 2020* | Q3 2020 | Q2 2020 | Q1 2020 | 2020* |
|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 560.4 | 502.6 | 1,063.0 | 535.3 | 487.3 | 457.6 | 453.8 | 1,934.0 |
| Industrial Enterprise Solutions | 515.2 | 475.3 | 990.5 | 508.8 | 452.6 | 439.0 | 436.1 | 1,836.5 |
| Group | 1,075.6 | 977.9 | 2,053.5 | 1,044.1 | 939.9 | 896.6 | 889.9 | 3,770.5 |
ADJUSTED OPERATING EARNINGS (EBIT1) PER SEGMENT
| MEUR | Q2 2021 | Q1 2021 | 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 176.4 | 143.8 | 320.2 | 156.3 | 138.5 | 118.9 | 102.4 | 516.1 |
| Industrial Enterprise Solutions | 129.9 | 118.7 | 248.6 | 137.5 | 114.8 | 110.9 | 92.8 | 456.0 |
| Group costs | -5.2 | -4.6 | -9.8 | -6.6 | -3.2 | -3.3 | -2.8 | -15.9 |
| Group | 301.1 | 257.9 | 559.0 | 287.2 | 250.1 | 226.5 | 192.4 | 956.2 |
| Adjusted operating margin, % | 28.0 | 26.4 | 27.2 | 27.5 | 26.6 | 25.3 | 21.6 | 25.4 |
NET SALES BY REGION
| MEUR | Q2 2021 | Q1 2021 | 2021 | Q4 2020* | Q3 2020 | Q2 2020 | Q1 2020 | 2020* |
|---|---|---|---|---|---|---|---|---|
| EMEA | 399.6 | 370.9 | 770.5 | 395.7 | 340.4 | 307.9 | 330.9 | 1,374.9 |
| Americas | 360.7 | 327.2 | 687.9 | 341.0 | 325.9 | 319.4 | 336.3 | 1,322.6 |
| Asia | 315.3 | 279.8 | 595.1 | 307.4 | 273.6 | 269.3 | 222.7 | 1,073.0 |
| Group | 1,075.6 | 977.9 | 2,053.5 | 1,044.1 | 939.9 | 896.6 | 889.9 | 3,770.5 |
EXCHANGE RATES
| Q2 2021 | Q1 2021 | 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
|---|---|---|---|---|---|---|---|
| 0.0986 | 0.0988 | 0.0987 | 0.0973 | 0.0965 | 0.0938 | 0.0938 | 0.0954 |
| 0.8777 | |||||||
| 0.1271 | |||||||
| 0.9343 | |||||||
| Q2 2021 | Q1 2021 | 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
| 0.0997 | |||||||
| 0.8149 | |||||||
| 0.1246 | |||||||
| 0.9107 | 0.9033 | 0.9258 | 0.9258 | 0.9256 | 0.9389 | 0.9447 | 0.9258 |
| 0.8293 0.1284 0.9109 0.0989 0.8415 0.1303 |
0.8302 0.1281 0.9165 0.0977 0.8529 0.1302 |
0.8298 0.1283 0.9137 0.0997 0.8149 0.1246 |
0.8393 0.1267 0.9279 0.0997 0.8149 0.1246 |
0.8556 0.1237 0.9298 0.0946 0.8541 0.1254 |
0.9092 0.1283 0.9425 0.0953 0.8930 0.1262 |
0.9067 0.1299 0.9373 0.0904 0.9127 0.1286 |
*Operating net sales, i.e. excluding revenue adjustment (haircut)
ACQUISITIONS
| MEUR | 6M 2021 | 6M 2020 |
|---|---|---|
| Fair value of acquired assets and assumed liabilities | ||
| Intangible fixed assets | 14.7 | 28.0 |
| Other fixed assets | 1.9 | 1.5 |
| Total fixed assets | 16.6 | 29.5 |
| Total current assets | 15.4 | 12.5 |
| Total assets | 32.0 | 42.0 |
| Total long-term liabilities | -5.6 | -7.6 |
| Total current liabilities | -4.2 | -5.9 |
| Total liabilities | -9.8 | -13.5 |
| Fair value of acquired assets and assumed liabilities, net | 22.2 | 28.5 |
| Goodwill | 15.5 | 164.2 |
| Total purchase consideration transferred | 37.7 | 192.7 |
| Less cash and cash equivalents in acquired companies | -3.5 | -6.3 |
| Adjustment for non-paid consideration and considerations | ||
| paid for prior years' acquisitions | 0.3 | -40.8 |
| Cash flow from acquisition of companies/businesses | 34.5 | 145.6 |
During the first six months of the year 2021, Hexagon acquired the following companies:
-
Mecadat, a distributor of CAD and CAM software
-
CADLM, a provider of computer-aided engineering (CAE) software
The acquisitions are individually assessed as immaterial from a group perspective which is why only aggregated information is presented. The analysis of the acquired net assets is preliminary and the fair value might be subject to change. Contingent considerations are recognised to fair value (level 3 according to definition in IFRS 13) each reporting period and based on the latest relevant forecast for the acquired company. The valuation method is unchanged compared to the previous period. The estimated liability for contingent considerations amounted to 122.4 MEUR (163.6) as of 30 June, whereof the fair value adjustment in 2021 amounted to 11.2 MEUR (37.7). In connection with the valuation of contingent considerations the assets acquired and liabilities assumed in the purchase price allocation are reviewed. Any indication of impairment due to the revaluation of contingent considerations is considered and adjustments are made to off-set the impact from revaluation.
CONDENSED PARENT COMPANY INCOME STATEMENT
| MEUR | Q2 2021 | Q2 2020 | 6M 2021 | 6M 2020 | 2020 |
|---|---|---|---|---|---|
| Net sales | 2.5 | 4.3 | 7.6 | 8.6 | 10.5 |
| Administration expenses | -5.7 | -4.0 | -11.3 | -7.4 | -20.9 |
| Operating earnings | -3.2 | 0.3 | -3.7 | 1.2 | -10.4 |
| Earnings from shares in Group companies | 0.6 | - | 0.6 | - | 360.1 |
| Interest income and expenses, net | -3.9 | 17.8 | -1.4 | 23.5 | -19.8 |
| Appropriations | - | - | - | - | 31.9 |
| Earnings before taxes | -6.5 | 18.1 | -4.5 | 24.7 | 361.8 |
| Taxes | 1.3 | -5.9 | 1.0 | -5.2 | -1.6 |
| Net earnings | -5.2 | 12.2 | -3.5 | 19.5 | 360.2 |
CONDENSED PARENT COMPANY BALANCE SHEET
| MEUR | 30/6 2021 | 30/6 2020 31/12 2020 | |
|---|---|---|---|
| Total fixed assets | 9,007.9 | 7,914.3 | 9,275.6 |
| Total current receivables | 1,792.3 | 1,329.0 | 1,494.3 |
| Cash and cash equivalents | 41.1 | 2.7 | 2.6 |
| Total current assets | 1,833.4 | 1,331.7 | 1,496.9 |
| Total assets | 10,841.3 | 9,246.0 | 10,772.5 |
| Total shareholders' equity | 4,951.6 | 5,142.7 | 5,208.2 |
| Untaxed reserves | 7.5 | 40.7 | 7.5 |
| Total long-term liabilities | 1,750.8 | 1,474.2 | 1,995.5 |
| Total short-term liabilities | 4,131.4 | 2,588.4 | 3,561.3 |
| Total equity and liabilities | 10,841.3 | 9,246.0 | 10,772.5 |
DEFINITIONS
In addition to the financial measures as required by the financial reporting framework based on IFRS, this report also includes other measures and indicators that are used to follow-up, analyze and manage the business. These measures also provide Hexagon stakeholders with useful financial information on the Group's financial position, performance and development in a consistent way. Below is a list of definitions of measures and indicators used in this report.
BUSINESS DEFINITIONS
| Americas | North, South and Central America |
|---|---|
| Asia | Asia, Australia and New Zealand |
| EMEA | Europe, Middle East and Africa |
| GES | Geospatial Enterprise Solutions |
| IES | Industrial Enterprise Solutions |
FINANCIAL DEFINITIONS
| Amortisation of surplus values | When a company is acquired, the purchase consideration is allocated to the identified assets and liabilities of the company. Intangible assets are most often allocated the substantial part of the purchase consideration. The amortisation of surplus values is defined as the difference between the amortisation of such identified intangible assets and what the amortisation would have been in the acquired company had the acquisition not taken place at all |
|---|---|
| Adjusted gross earnings | Operational net sales less cost of goods sold excluding adjustments related to cost of goods |
| Adjusted gross margin | sold Adjusted gross earnings divided by operating net sales |
| Adjusted operating earnings (EBIT1) |
Operating earnings excluding capital gains on shares in group companies and adjustments. Adjustments are excluded to facilitate the understanding of the Group´s operational development and to give comparable numbers between periods |
| Adjusted operating earnings (EBITDA) |
Adjusted operating earnings (EBIT 1) excluding amortisation, depreciation and impairment of fixed assets. The measure is presented to give depiction of the result generated by the operating activities |
| Adjusted EBITDA margin | Adjusted operating earnings (EBITDA) as a percentage of operating net sales |
| Adjusted operating margin | Adjusted operating earnings (EBIT1) as a percentage of operating net sales |
| Adjustments | Adjustments consists of expenses related to the share programme (LTIP) and non-recurring items which refers to income and expenses that are not expected to appear on a regular basis and impact comparability between periods |
| Capital employed | Total assets less non-interest-bearing liabilities |
| Capital turnover rate | Net sales divided by average capital employed |
| Cash conversion | Operating cash flow excluding interest, tax payments and non-recurring items divided by operating earnings (EBIT1) |
| Cash flow per share | Cash flow from operations, after change in working capital, excluding non-recurring items divided by average number of shares |
| Earnings per share | Net earnings excluding non-controlling interest divided by average number of shares |
| Equity ratio | Shareholders' equity including non-controlling interests as a percentage of total assets |
| Interest coverage ratio | Earnings before taxes plus financial expenses divided by financial expenses |
| Investments | Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestitures of subsidiaries |
| Net debt | Interest-bearing liabilities including pension liabilities and interest-bearing provisions less cash and cash equivalents |
| Net indebtedness | Interest-bearing liabilities less interest-bearing current receivables and liquid assets divided by shareholders' equity excluding non-controlling interests |
| Organic growth | Net sales compared to prior period excluding acquisitions and divestments and adjusted for currency exchange movements |
| Operating net sales | Net sales adjusted by the difference between fair value and book-value of deferred revenue regarding acquired businesses. |
| Profit margin before taxes | Earnings before taxes as a percentage of net sales |
| Return on capital employed (12-month average) |
Twelve months to end of period earnings after financial items, excluding adjustments, plus financial expenses as a percentage of twelve months to end of period average capital employed. The twelve months average capital employed is based on average quarterly capital employed |
| Return on shareholders' equity (12-month average) |
Twelve months to end of period net earnings excluding non-controlling interests as a percentage of twelve months to end of period average shareholders' equity excluding non controlling interests last twelve months. The twelve months average shareholders' equity is based on quarterly average shareholders' equity |
| Shareholders' equity per share | Shareholders' equity excluding non-controlling interests divided by the number of shares at year-end |
| Share price | Last settled transaction on Nasdaq Stockholm on the last business day for the period |
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 urban and production ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future. Hexagon (Nasdaq Stockholm: HEXA B) has approximately 21,000 employees in 50 countries and net sales of approximately 3.8bn EUR. Learn more at hexagon.com and follow us @HexagonAB.
FINANCIAL REPORT DATES FINANCIAL INFORMATION TELEPHONE
Hexagon gives financial information at the following occasions:
Interim Report Q3 2021 28 October 2021 Year-End Report 2021 2 February 2022
Financial information is available in Swedish and English at the Hexagon website and can also be ordered via phone +46 8 601 26 20 or e-mail [email protected]
CONFERENCE
The Interim Report for the second quarter 2021 will be presented on 27 July at 10:00 CET at a telephone conference.
Please view instructions at Hexagon's website on how to participate.
CONTACT
Maria Luthström, Head of Sustainability and Investor Relations, Hexagon AB +46 8 601 26 27, [email protected]
This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act . The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 27 July 2021.
This communication may contain forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Hexagon disclaims any intention or obligation to update these forward-looking statements.
Hexagon AB [publ] P.O. Box 3692 SE- 103 59 Stockholm Fax: +46 8 601 26 21 Phone: +46 8 601 26 20 Registration number: 556190-4771 Registered Office: Stockholm Sweden hexagon.com