Interim / Quarterly Report • Apr 29, 2021
Interim / Quarterly Report
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FIRST QUARTER
| MEUR | Q1 2021 | Q1 2020 | Δ% |
|---|---|---|---|
| Net sales | 977.9 | 889.9 | 11 1) |
| Adjusted gross earnings2) | 629.6 | 571.6 | 10 |
| Adjusted gross margin, %2) | 64.4 | 64.2 | 0.2 |
| Adjusted operating earnings (EBITDA)2) | 366.7 | 287.2 | 28 |
| Adjusted EBITDA margin, %2) | 37.5 | 32.3 | 5.2 |
| Adjusted operating earnings (EBIT1)2) | 257.9 | 192.4 | 34 |
| Adjusted operating margin, %2) | 26.4 | 21.6 | 4.8 |
| Earnings before taxes, excluding | |||
| adjustments | 250.3 | 186.6 | 34 |
| Adjustments (before taxes)3) | -4.8 | - | n.a. |
| Earnings before taxes | 245.5 | 186.6 | 32 |
| Net earnings | 201.3 | 153.0 | 32 |
| Net earnings, excl. adjustments | 205.2 | 153.0 | 34 |
| Earnings per share, EUR | 0.54 | 0.41 | 32 |
| Earnings per share, excl. | |||
| adjustments, EUR | 0.56 | 0.41 | 37 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2)For definition, see page 16.
3)Adjustments in 2021 relate to a share programme (LTIP).
"We had a strong start to the year, with 11 per cent organic growth, first-quarter earnings at an all-time high and continued solid cash conversion. We saw acceleration in Europe and China – with China recording an impressive 73 per cent organic growth, supported by increased customer activities across all industries.
Geosystems continued its positive momentum, recording 22 per cent organic growth, supported by robust global activity in construction and infrastructure markets and increased demand for new solutions. The Manufacturing Intelligence division continued to improve,recording 12 per cent organic growth, mainly driven by the acceleration in China, a recovery in the automotive sector and solid growth in the software portfolio. The Safety and Infrastructure division faced a tough comparison, recording -2 per cent organic growth. As expected, PPM continued to face a challenging oil and gas market, leading to an organic decline of -4 per cent. However, the strategic diversification of PPM's business is progressing, reflected in solid growth in the asset information management, cyber security and AEC portfolios.
Although some sectors continue to face uncertainty, we remain confident in our continued growth trajectory. We are in a strong position to expand our focus and benefit from the transformative forces surrounding autonomy, electrification, safety and decarbonisation."
Ola Rollén, President and CEO, Hexagon AB
ADJUSTED OPERATING MARGIN 26 %
CASH CONVERSION
%
107
Net sales increased by 10 per cent to 977.9 MEUR (889.9). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 11 per cent. Regionally, organic growth was 27 per cent in Asia, 10 per cent in EMEA and 0 per cent in Americas. In Asia, China recorded 73 per cent organic growth, mainly driven by a strong recovery in manufacturing, infrastructure and construction. South Korea, South-Eastern Asia and Australia recorded solid growth, but Japan and India declined due to weak demand in the manufacturing sector in Japan and the power and energy sector in India. In EMEA, Western Europe recorded 7 per cent organic growth, fuelled by strong demand in the surveying, infrastructure and construction segments. The manufacturing and power and energy segments sequentially improved and recorded a low single-digit decline. Russia and Eastern Europe recorded high double-digit organic growth. In Americas, North America recorded -1 per cent organic growth, mainly hampered by weakness in the aerospace and power and energy segments. The surveying and infrastructure and construction segments recorded solid growth in the region. South America recorded high single-digit growth supported by a solid development in the agriculture, power and energy and public safety segments.
Adjusted operating earnings (EBIT1) increased by 34 per cent to 257.9 MEUR (192.4), which corresponds to an adjusted operating margin of 26.4 per cent (21.6). 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. Adjusted operating earnings (EBIT1) were negatively impacted by currency translation effects of -19.5 MEUR and positively impacted by currency transaction effects of 7.1 MEUR. Earnings before taxes, excluding adjustments, amounted to 250.3 MEUR (186.6) and were negatively impacted by currency translation effects of -19.5 MEUR.
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | Q1 2021 | Q1 2020 | Δ% 1) | Q1 2021 | Q1 2020 | Δ% |
| Geospatial Enterprise Solutions | 502.6 | 453.8 | 13 | 143.8 | 102.4 | 40 |
| Industrial Enterprise Solutions | 475.3 | 436.1 | 8 | 118.7 | 92.8 | 28 |
| Net sales | 977.9 | 889.9 | 11 | |||
| Group cost | -4.6 | -2.8 | -64 | |||
| Adjusted operating earnings (EBIT1) | 257.9 | 192.4 | 34 | |||
| Adjusted operating margin, % | 26.4 | 21.6 | 4.8 | |||
| Interest income and expenses, net | -7.6 | -5.8 | -31 | |||
| Earnings before adjustments | 250.3 | 186.6 | 34 | |||
| Adjustments2) | -4.8 | - | n.a. | |||
| Earnings before taxes | 245.5 | 186.6 | 32 | |||
| Taxes | -44.2 | -33.6 | -32 | |||
| Net earnings | 201.3 | 153.0 | 32 |
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).
| Movement 1) | Income less cost | Earnings impact | |
|---|---|---|---|
| CHF | Weakened -2% |
Negative | Positive |
| USD | Weakened -8% |
Positive | Negative |
| CNY | Weakened -1% |
Positive | Negative |
| EBIT1, MEUR | -19.5 |
1)Compared to Q1 2020
| Net sales1) | Region | Q1 2021 | |
|---|---|---|---|
| 2020, MEUR | 889.9 | China (15% of sales) | ↗ |
| Structure, % | 4 | EMEA excl. Western Europe (8% of sales) | ↗ |
| Currency, % | -5 | 2 South America (3% of sales) | ↗ |
| Organic growth, % | 11 | Western Europe (30% of sales) | → |
| Total, % | 10 | North America (30% of sales) | ↘ |
| 2021, MEUR | 977.9 | Asia excl. China (14% 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 | Q1 2021 | ||
|---|---|---|---|---|
| 2020, MEUR | 889.9 | China (15% of sales) | ↗ | |
| Structure, % | 4 | EMEA excl. Western Europe (8% of sales) | ↗ | |
| Currency, % | -5 | 2 South America (3% of sales) | ↗ | |
| Organic growth, % | 11 | Western Europe (30% of sales) | → | >8% ↗ |
| Total, % | 10 | North America (30% of sales) | ↘ | 0-8% → |
| 2021, MEUR | 977.9 | Asia excl. China (14% 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 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.
Geospatial Enterprise Solutions (GES) net sales amounted to 502.6 MEUR (453.8). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 13 per cent. Regionally, organic growth was 30 per cent in Asia, 17 per cent in EMEA and 3 per cent in Americas. In Asia, China recorded 79 per cent organic growth, mainly driven by strong growth in surveying, infrastructure and construction. South-Eastern Asia recorded solid organic growth, however, Japan and South Korea declined. In EMEA, Western Europe recorded 16 per cent organic growth, supported by solid demand in the surveying, infrastructure and construction segments. Russia, Eastern Europe and Africa recorded strong double-digit organic growth. In Americas, North America recorded 2 per cent organic growth, positively impacted by robust demand in surveying, infrastructure and construction but adversely impacted by weakness in defence. South America recorded high single-digit organic growth, supported by strong demand for agriculture and public safety solutions.
Geosystems recorded 22 per cent organic growth, supported by strong demand for surveying and construction solutions globally. The mining segment continued to grow. The Safety & Infrastructure division recorded -2 per cent organic growth, hampered by weakness in defence but offset by growth in public safety. The Autonomy & Positioning division recorded -2 per cent organic growth, negatively impacted by order delays in defence and a weak automotive market. The agriculture business continued to record strong growth.
Adjusted operating earnings (EBIT1) increased by 40 per cent to 143.8 MEUR (102.4), which corresponds to an adjusted operating margin of 28.6 per cent (22.6). 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.
| MEUR | Q1 2021 | Q1 2020 | Δ% |
|---|---|---|---|
| Net sales | 502.6 | 453.8 | 13 1) |
| Adjusted operating earnings (EBIT1) | 143.8 | 102.4 | 40 |
| Adjusted operating margin, % | 28.6 | 22.6 | 6.0 |
| Avg. number of employees | 9,166 | 9,068 | 1 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
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.
Industrial Enterprise Solutions (IES) net sales amounted to 475.3 MEUR (436.1). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 8 per cent. Regionally, organic growth was 25 per cent in Asia, 1 per cent in EMEA and -4 per cent in Americas. In Asia, China recorded 70 per cent organic growth, mainly driven by broad-based strength in manufacturing. South Korea grew in the quarter, however, Japan and India declined. In EMEA, Western Europe recorded -3 per cent organic growth, due to weakness in the aerospace and power and energy segments. Russia and the Middle East recorded solid double-digit organic growth. In Americas, North America recorded -5 per cent organic growth, mainly driven by a weak development in aerospace and oil and gas markets. South America recorded double-digit growth.
Manufacturing Intelligence recorded 12 per cent organic growth, mainly driven by the acceleration in China and a recovery in the automotive sector. However, demand in the aerospace segment remained at low levels. The software portfolios continued to record favorable growth. The PPM division recorded -4 per cent organic growth, due to a challenging oil and gas market. The asset information management, cyber security and AEC (architecture, engineering and construction) design software portfolios recorded solid growth in the quarter.
Adjusted operating earnings (EBIT1) increased by 28 per cent to 118.7 MEUR (92.8), which corresponds to an adjusted operating margin of 25.0 per cent (21.3). The adjusted operating margin (EBIT1) was positively impacted by volume growth and cost savings measures.
| MEUR | Q1 2021 | Q1 2020 | Δ% |
|---|---|---|---|
| Net sales | 475.3 | 436.1 | 8 1) |
| Adjusted operating earnings (EBIT1) | 118.7 | 92.8 | 28 |
| Adjusted operating margin, % | 25.0 | 21.3 | 3.7 |
| Avg. number of employees | 11,642 | 11,374 | 2 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
Hexagon launched R-evolution, a new business venture to a sustainable economy, running profit-driven investments in green-tech projects where Hexagon's technology can be applied.
Capital employed increased to 9,030.6 MEUR (8,795.3). Return on average capital employed for the last twelve months was 11.8 per cent (11.2). Return on average shareholders' equity for the last twelve months was 10.8 per cent (11.8). The capital turnover rate was 0.4 times (0.4).
Total shareholders' equity increased to 6,410.6 MEUR (6,196.1). The equity ratio was 57.8 per cent (57.7). Hexagon's total assets increased to 11,091.3 MEUR (10,735.7). The increase in total assets was driven primarily by acquisitions. Hexagon's main sources of financing consist of:
1) A multicurrency revolving credit facility (RCF) established during 2014. The RCF amounts to 2,000 MEUR with maturity 2021
2) A Swedish Medium Term Note Programme (MTN) established during 2014. The MTN programme amounts to 20,000 MSEK with tenor up to 5 years
3) A Swedish Commercial Paper Programme (CP) established during 2012. The CP programme amounts to 15,000 MSEK with tenor up to 12 months.
On 31 March 2021, cash and unutilised credit limits totalled 1,961.6 MEUR (1,821.1). Hexagon's net debt was 2,175.6 MEUR (2,195.6). The net indebtedness was 0.31 times (0.32). Interest coverage ratio was 30.6 times (23.5).
During the first quarter, cash flow from operations before changes in working capital amounted to 298.7 MEUR (222.2), corresponding to 0.81 EUR (0.60) per share. Cash flow from operations in the first quarter amounted to 318.8 MEUR (248.6), corresponding to 0.87 EUR (0.68) per share. Operating cash flow in the first quarter, including non-recurring items, amounted to 211.9 MEUR (136.9).
Hexagon's net investments, excluding acquisitions and divestitures, amounted to -98.2 MEUR (-102.5) in the first quarter. Depreciation, amortisation and impairment amounted to -108.8 MEUR (-94.8) in the first quarter, whereof impairment charges amounted to -10.8 MEUR (-) in the first quarter.
The Group's tax expense for the first quarter totalled -44.2 MEUR (-33.6). The reported tax rate was 18.0 per cent (18.0) for the quarter. The tax rate, excluding adjustments, was 18.0 per cent (18.0) for the quarter.
The average number of employees during the first quarter was 20,898 (20,515). The number of employees at the end of the quarter was 20,905 (20,624).
Earnings per share, including adjustments, for the first quarter amounted to 0.54 EUR (0.41). Earnings per share, excluding adjustments, for the first quarter, amounted to 0.56 EUR (0.41).
On 31 March 2021, equity per share was 17.44 EUR (16.82) and the share price was 805.60 SEK (424.00).
Hexagon's share capital amounts to 81,557,432 EUR, represented by 366,700,802 outstanding shares, of which 15,750,000 are of series A with ten votes each and 350,950,802 are of series B with one vote each. Hexagon holds 850,000 treasury shares.
The parent company's earnings before taxes in the first quarter amounted to 2.0 MEUR (6.6). The equity was 5,195.1 MEUR (5,130.6). The equity ratio of the parent company was 48 per cent (55). Liquid funds including unutilised credit limits were 1,515.6 MEUR (1,379.9).
Hexagon has partnered with Boston Dynamics Spot to develop an autonomous reality capture solution for the mobile robot Spot. The solution can help reduce time, cost and increase safety when working in potentially dangerous structures or hazardous areas within infrastructure, industrial facilities, public safety and more.
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.
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.
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 which may entitle to shares of Class B 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 to align the interest of the shareholders 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.
No significant related party transactions have been incurred during the quarter.
No significant events effecting the financial reporting have occurred during the period between quarter-end and date of issuance of this report.
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, 29 April 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.
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Net sales | 977.9 | 889.9 | 3,764.4 |
| Cost of goods sold | -348.7 | -318.3 | -1,390.1 |
| Gross earnings | 629.2 | 571.6 | 2,374.3 |
| Sales expenses | -181.7 | -181.4 | -687.3 |
| Administration expenses | -82.4 | -78.1 | -328.2 |
| Research and development expenses | -120.6 | -116.6 | -462.7 |
| Other income and expenses, net | 8.6 | -3.1 | -109.1 |
| Operating earnings 1) | 253.1 | 192.4 | 787.0 |
| Financial income | 0.7 | 2.5 | 6.3 |
| Financial expenses | -8.3 | -8.3 | -33.7 |
| Earnings before taxes | 245.5 | 186.6 | 759.6 |
| Taxes | -44.2 | -33.6 | -134.9 |
| Net earnings | 201.3 | 153.0 | 624.7 |
| Attributable to: | |||
| Parent company shareholders | 199.7 | 152.3 | 618.1 |
| Non-controlling interest | 1.6 | 0.7 | 6.6 |
| 1) of which adjustments | -4.8 | - | -169.2 |
| Earnings include depreciation, amortisation and impairments of | -108.8 | -94.8 | -534.2 |
| - of which amortisation of surplus values | -13.4 | -14.2 | -53.3 |
| Basic earnings per share, EUR | 0.54 | 0.41 | 1.68 |
| Earnings per share after dilution, EUR | 0.54 | 0.41 | 1.68 |
| Total shareholder's equity per share, EUR | 17.44 | 16.82 | 16.18 |
| Closing number of shares, thousands | 366,701 | 367,551 | 366,905 |
| Average number of shares, thousands | 366,814 | 367,544 | 367,540 |
| Average number of shares after dilution, thousands | 367,577 | 367,544 | 367,702 |
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Net earnings | 201.3 | 153.0 | 624.7 |
| Other comprehensive income | |||
| Items that will not be reclassified to income statement | |||
| Remeasurement of pensions | 23.9 | -44.7 | -29.4 |
| Taxes on items that will not be reclassified to income statement | -2.4 | 4.5 | 3.6 |
| Total items that will not be reclassified to income statement, net of taxes | 21.5 | -40.2 | -25.8 |
| Items that may be reclassified subsequently to income statement | |||
| Exchange rate differences | 259.3 | 0.4 | -468.5 |
| Taxes on items that may be reclassified subsequently to income statement | -10.4 | 6.0 | 23.3 |
| Total items that may be reclassified subsequently to income statement, net of | |||
| taxes | 248.9 | 6.4 | -445.2 |
| Other comprehensive income, net of taxes | 270.4 | -33.8 | -471.0 |
| Total comprehensive income for the period | 471.7 | 119.2 | 153.7 |
| Attributable to: | |||
| Parent company shareholders | 469.5 | 118.5 | 147.5 |
| Non-controlling interest | 2.2 | 0.7 | 6.2 |
| MEUR | 31/3 2021 | 31/3 2020 | 31/12 2020 |
|---|---|---|---|
| Intangible fixed assets | 8,206.2 | 7,868.8 | 7,941.8 |
| Tangible fixed assets | 503.7 | 485.8 | 480.1 |
| Right-of-use assets | 196.9 | 218.0 | 205.1 |
| Financial fixed assets | 76.0 | 67.3 | 80.4 |
| Deferred tax assets | 106.2 | 84.3 | 102.1 |
| Total fixed assets | 9,089.0 | 8,724.2 | 8,809.5 |
| Inventories | 395.8 | 432.2 | 371.1 |
| Accounts receivables | 912.4 | 931.2 | 884.7 |
| Other receivables | 109.6 | 97.2 | 113.3 |
| Prepaid expenses and accrued income | 140.1 | 147.3 | 127.6 |
| Total current receivables | 1,162.1 | 1,175.7 | 1,125.6 |
| Cash and cash equivalents | 444.4 | 403.6 | 397.4 |
| Total current assets | 2,002.3 | 2,011.5 | 1,894.1 |
| Total assets | 11,091.3 | 10,735.7 | 10,703.6 |
| Equity attributable to parent company shareholders | 6,393.7 | 6,182.3 | 5,934.8 |
| Equity attributable to non-controlling interest | 16.9 | 13.8 | 14.4 |
| Total shareholders' equity | 6,410.6 | 6,196.1 | 5,949.2 |
| Interest bearing liabilities | 1,742.3 | 1,791.9 | 1,995.4 |
| Lease liabilities | 145.1 | 163.8 | 153.5 |
| Other liabilities | 68.1 | 187.7 | 85.5 |
| Pension liabilities | 103.1 | 141.8 | 125.4 |
| Deferred tax liabilities | 482.5 | 446.1 | 460.2 |
| Other provisions | 16.1 | 9.7 | 14.7 |
| Total long-term liabilities | 2,557.2 | 2,741.0 | 2,834.7 |
| Interest bearing liabilities | 568.5 | 440.1 | 437.4 |
| Lease liabilities | 61.0 | 61.6 | 61.6 |
| Accounts payable | 214.0 | 211.4 | 207.4 |
| Other liabilities | 324.5 | 290.3 | 326.7 |
| Other provisions | 38.4 | 26.1 | 48.3 |
| Deferred income | 591.5 | 504.9 | 520.9 |
| Accrued expenses | 325.6 | 264.2 | 317.4 |
| Total short-term liabilities | 2,123.5 | 1,798.6 | 1,919.7 |
| Total equity and liabilities | 11,091.3 | 10,735.7 | 10,703.6 |
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.
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Opening shareholders' equity | 5,949.2 | 6,076.9 | 6,076.9 |
| Total comprehensive income for the period1) Acquisition of treasury shares Dividend Share based programme (LTIP) |
471.7 -14.8 - 4.5 |
119.2 - - - |
153.7 -47.3 -234.1 - |
| Closing shareholders' equity2) | 6,410.6 | 6,196.1 | 5,949.2 |
| 1) Of which: Parent company shareholders Non-controlling interest 2) Of which: Parent company shareholders Non-controlling interest |
469.5 2.2 6,393.7 16.9 |
118.5 0.7 6,182.3 13.8 |
147.5 6.2 5,934.8 14.4 |
| 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 |
| Total amount of treasury shares | 850,000 | 850,000 | |
| 2021-03-31 Total issued | 15,750,000 | 351,800,802 | 367,550,802 |
Each share of series A carries entitlement to ten votes and each share of series B carries entitlement to one vote.
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Cash flow from operations before change in working capital | |||
| excluding taxes and interest | 354.9 | 282.7 | 1,340.9 |
| Taxes paid | -50.8 | -56.1 | -163.2 |
| Interest received and paid, net | -5.4 | -4.4 | -24.5 |
| Cash flow from operations before change in working capital | 298.7 | 222.2 | 1,153.2 |
| Cash flow from change in working capital | 20.1 | 26.4 | 221.3 |
| Cash flow from operations | 318.8 | 248.6 | 1,374.5 |
| Investments tangible assets, net | -26.8 | -27.4 | -96.7 |
| Investments intangible assets | -71.4 | -75.1 | -286.6 |
| Operating cash flow before non-recurring items | 220.6 | 146.1 | 991.2 |
| Non-recurring cash flow 1) | -8.7 | -9.2 | -70.5 |
| Operating cash flow | 211.9 | 136.9 | 920.7 |
| Cash flow from acquisitions and divestments | -24.6 | -145.6 | -760.5 |
| Cash flow from other investing activities | 5.0 | -11.9 | -34.5 |
| Cash flow after other investing activities | 192.3 | -20.6 | 125.7 |
| Dividends paid | - | - | -234.1 |
| Repurchase of treasury shares | -14.8 | - | -47.3 |
| Cash flow from other financing activities | -142.2 | -45.2 | 92.7 |
| Cash flow for the period | 35.3 | -65.8 | -63.0 |
| Cash and cash equivalents, beginning of period | 397.4 | 468.3 | 468.3 |
| Effect of translation differences on cash and cash equivalents | 11.7 | 1.1 | -7.9 |
| Cash flow for the period | 35.3 | -65.8 | -63.0 |
| Cash and cash equivalents, end of period | 444.4 | 403.6 | 397.4 |
1) Non-recurring cash flow consists of restructuring costs.
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Adjusted operating margin, % | 26.4 | 21.6 | 25.4 |
| Profit margin before taxes, % | 25.1 | 21.0 | 20.2 |
| Return on shareholders' equity, 12-month average, % | 10.8 | 11.8 | 10.1 |
| Return on capital employed ,12-month average, % | 11.8 | 11.2 | 11.1 |
| Equity ratio, % | 57.8 | 57.7 | 55.6 |
| Net indebtedness | 0.31 | 0.32 | 0.37 |
| Interest coverage ratio | 30.6 | 23.5 | 23.5 |
| Average number of shares, thousands | 366,814 | 367,544 | 367,540 |
| Basic earnings per share excl. adjustments, EUR | 0.56 | 0.41 | 2.05 |
| Basic earnings per share, EUR | 0.54 | 0.41 | 1.68 |
| Cash flow per share, EUR | 0.87 | 0.68 | 3.74 |
| Cash flow per share before change in working cap, EUR | 0.81 | 0.60 | 3.14 |
| Share price, SEK | 805.60 | 424.00 | 749.80 |
| Share price, translated to EUR | 78.68 | 38.33 | 74.72 |
| MEUR | Q1 2021 | Q4 2020* | Q3 2020 | Q2 2020 | Q1 2020 | 2020* |
|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 502.6 | 535.3 | 487.3 | 457.6 | 453.8 | 1,934.0 |
| Industrial Enterprise Solutions | 475.3 | 508.8 | 452.6 | 439.0 | 436.1 | 1,836.5 |
| Group | 977.9 | 1,044.1 | 939.9 | 896.6 | 889.9 | 3,770.5 |
| MEUR | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 143.8 | 156.3 | 138.5 | 118.9 | 102.4 | 516.1 |
| Industrial Enterprise Solutions | 118.7 | 137.5 | 114.8 | 110.9 | 92.8 | 456.0 |
| Group costs | -4.6 | -6.6 | -3.2 | -3.3 | -2.8 | -15.9 |
| Group | 257.9 | 287.2 | 250.1 | 226.5 | 192.4 | 956.2 |
| Adjusted operating margin, % | 26.4 | 27.5 | 26.6 | 25.3 | 21.6 | 25.4 |
| MEUR | Q1 2021 | Q4 2020* | Q3 2020 | Q2 2020 | Q1 2020 | 2020* |
|---|---|---|---|---|---|---|
| EMEA | 370.9 | 395.7 | 340.4 | 307.9 | 330.9 | 1,374.9 |
| Americas | 327.2 | 341.0 | 325.9 | 319.4 | 336.3 | 1,322.6 |
| Asia | 279.8 | 307.4 | 273.6 | 269.3 | 222.7 | 1,073.0 |
| Group | 977.9 | 1,044.1 | 939.9 | 896.6 | 889.9 | 3,770.5 |
| Average | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
|---|---|---|---|---|---|---|
| SEK/EUR | 0.0988 | 0.0973 | 0.0965 | 0.0938 | 0.0938 | 0.0954 |
| USD/EUR | 0.8302 | 0.8393 | 0.8556 | 0.9092 | 0.9067 | 0.8777 |
| CNY/EUR | 0.1281 | 0.1267 | 0.1237 | 0.1283 | 0.1299 | 0.1271 |
| CHF/EUR | 0.9165 | 0.9279 | 0.9298 | 0.9425 | 0.9373 | 0.9343 |
| Closing | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | 2020 |
| SEK/EUR | 0.0977 | 0.0997 | 0.0946 | 0.0953 | 0.0904 | 0.0997 |
| USD/EUR | 0.8529 | 0.8149 | 0.8541 | 0.8930 | 0.9127 | 0.8149 |
| CNY/EUR | 0.1302 | 0.1246 | 0.1254 | 0.1262 | 0.1286 | 0.1246 |
*Operating net sales, i.e. excluding revenue adjustment (haircut)
| MEUR | Q1 2021 | Q1 2020 |
|---|---|---|
| Fair value of acquired assets and assumed liabilities | ||
| Intangible fixed assets | 10.6 | 28.0 |
| Other fixed assets | 1.8 | 1.5 |
| Total fixed assets | 12.4 | 29.5 |
| Total current assets | 14.8 | 12.5 |
| Total assets | 27.2 | 42.0 |
| Total long-term liabilities | -5.1 | -7.6 |
| Total current liabilities | -3.6 | -5.9 |
| Total liabilities | -8.7 | -13.5 |
| Fair value of acquired assets and assumed liabilities, net | 18.5 | 28.5 |
| Goodwill | 12.1 | 164.2 |
| Total purchase consideration transferred | 30.6 | 192.7 |
| Less cash and cash equivalents in acquired companies | -3.3 | -6.3 |
| Adjustment for non-paid consideration and considerations | ||
| paid for prior years' acquisitions | -2.7 | -40.8 |
| Cash flow from acquisition of companies/businesses | 24.6 | 145.6 |
During the first quarter 2021, Hexagon acquired the following company:
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 121.9 MEUR (210.0) as of 31 March, whereof the fair value adjustment in 2021 amounted to 11.2 MEUR (2.2). 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.
| MEUR | Q1 2021 | Q1 2020 | 2020 |
|---|---|---|---|
| Net sales | 5.1 | 4.3 | 10.5 |
| Administration expenses | -5.6 | -3.4 | -20.9 |
| Operating earnings | -0.5 | 0.9 | -10.4 |
| Earnings from shares in Group companies | - | - | 360.1 |
| Interest income and expenses, net | 2.5 | 5.7 | -19.8 |
| Appropriations | - | - | 31.9 |
| Earnings before taxes | 2.0 | 6.6 | 361.8 |
| Taxes | -0.3 | 0.7 | -1.6 |
| Net earnings | 1.7 | 7.3 | 360.2 |
| MEUR | 31/3 2021 | 31/3 2020 31/12 2020 | |
|---|---|---|---|
| Total fixed assets | 9,348.5 | 7,614.2 | 9,275.6 |
| Total current receivables | 1,395.7 | 1,626.3 | 1,494.3 |
| Cash and cash equivalents | 32.9 | 10.5 | 2.6 |
| Total current assets | 1,428.6 | 1,636.8 | 1,496.9 |
| Total assets | 10,777.1 | 9,251.0 | 10,772.5 |
| Total shareholders' equity | 5,195.1 | 5,130.6 | 5,208.2 |
| Untaxed reserves | 7.4 | 38.7 | 7.5 |
| Total long-term liabilities | 1,742.9 | 1,786.4 | 1,995.5 |
| Total short-term liabilities | 3,831.7 | 2,295.3 | 3,561.3 |
| Total equity and liabilities | 10,777.1 | 9,251.0 | 10,772.5 |
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.
| 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 |
| 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 | Operating net sales less cost of goods sold excluding adjustments related to cost of goods sold |
| Adjusted gross margin | 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 adjustments 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 |
| 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 sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, and quality across industrial, manufacturing, infrastructure, safety, 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.
Hexagon gives financial information at the following occasions:
| Interim Report Q2 2021 | 27 July 2021 |
|---|---|
| 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]
The Interim Report for the first quarter 2021 will be presented on 29 April at 14:00 CET at a telephone conference.
Please view instructions at Hexagon's website on how to participate.
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. The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CET on 29 April 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
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