Hexagon

Quarterly Report • Oct 27, 2015

INTERIM REPORT

1 JANUARY – 30 SEPTEMBER 2015 THIRD QUARTER 2015

• Net sales increased by 14 per cent to 742.3 MEUR (648.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent
• Operating earnings (EBIT1) increased by 19 per cent to 167.8 MEUR (140.7)
• Earnings before taxes, excluding non-recurring items, amounted to 161.7 MEUR (132.0)
• Net earnings, excluding non-recurring items, amounted to 129.4 MEUR (105.7)
• Earnings per share, excluding non-recurring items, increased by 24 per cent to 0.36 EUR (0.29)
• Operating cash flow increased by 89 per cent to 138.3 MEUR (73.1)

MEUR		Q3 2015 Q3 2014	Δ%		Q1-Q3 2015 Q1-Q3 2014	Δ%
Net sales	742.3	648.6	1) 6	2,228.1	1,879.0	1) 5
Gross earnings	444.8	378.1	18	1,338.4	1,073.5	25
Gross margin, %	59.9	58.3	1.6	60.1	57.1	3.0
Operating earnings (EBITDA)	219.1	181.7	21	647.4	520.3	24
EBITDA margin, %	29.5	28.0	1.5	29.1	27.7	1.4
Operating earnings (EBIT1)	167.8	140.7	19	494.9	403.7	23
Operating margin, %	22.6	21.7	0.9	22.2	21.5	0.7
Earnings before taxes excluding
non-recurring items	161.7	132.0	23	474.2	378.7	25
Non-recurring items 2)	-	-18.6	n.a.	-36.6	-36.0	n.a.
Earnings before taxes	161.7	113.4	43	437.6	342.7	28
Net earnings	129.4	90.4	43	349.6	273.6	28
Net earnings, excl. non
recurring items	129.4	105.7	22	379.4	303.0	25
Earnings per share, EUR	0.36	0.25	44	0.96	0.76	26
Earnings per share, excl.
non-recurring items, EUR	0.36	0.29	24	1.04	0.84	24
				COMMENTS FROM THE CEO
				to enhance our underlying growth rate through acquisitions."
				– Ola Rollén, President and CEO, Hexagon AB

COMMENTS FROM THE CEO

"We recorded 6 per cent organic growth in the third quarter, which is an increase from the level in the first half of the year. This is despite a weaker world economy. The launch of our new software 'Captivate' fuelled growth in the Geosystems business to 7 per cent and a strategic win in the shipbuilding industry helped Intergraph PP&M post organic growth of 12 per cent. We do however see a weakening of the North American manufacturing sector, as well as continued weak demand in the oil and gas sector, leading to a slowdown of the order intake in Industrial Enterprise Solutions. Finally, it is pleasing to see a record cash flow in the quarter, which gives us the ability to continue to enhance our underlying growth rate through acquisitions."

SALES GROWTH 14%

Q3

OPERATING MARGIN 23%

GROUP BUSINESS DEVELOPMENT THIRD QUARTER

Net sales

Net sales increased by 14 per cent to 742.3 MEUR (648.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent. Regionally, organic growth was 7 per cent in EMEA, 2 per cent in Americas and 10 per cent in Asia. Western Europe recorded 9 per cent organic growth. The positives were Germany, Italy and Spain. Organic growth was seen in the Middle East and Russia, which returned to growth after four quarters of decline. However, Africa and Eastern Europe declined. In Americas, North America recorded another quarter of positive organic growth, though the growth rate is decelerating compared to first half of 2015. Organically, sales in South America fell by 15 per cent. Several key markets in South America are experiencing declining demand, among them Brazil which recorded an organic decline of 24 per cent. Growth rates in Asia benefited from strong demand in markets such as Japan, Australia and India. The organic growth in China amounted to 5 per cent.

Earnings

Operating earnings (EBIT1) grew by 19 per cent to 167.8 MEUR (140.7), which corresponds to an operating margin of 22.6 per cent (21.7). The operating margin benefited from organic growth, acquisitions and cost reductions but was adversely impacted by the strength of the Swiss franc. In absolute terms, operating earnings (EBIT1) were positively impacted by exchange rate movements of 8.3 MEUR. Earnings before taxes was 161.7 MEUR (113.4). Earnings before taxes were positively impacted by exchange rate movements of 8.3 MEUR.

Update on savings programme

On March 31 2015, Hexagon announced a savings programme to mitigate the negative impact on the operating margin from recent currency movements. The programme, which aims at lowering costs primarily in USA and Switzerland, is progressing according to plan. During the third quarter, the positive impact from the savings programme amounted to 6.9 MEUR. Once implemented, the savings programme is expected to generate approximately 35 MEUR of savings per annum with full effect as of 2016.

FINANCIAL SUMMARY THIRD QUARTER

	Net sales				Earnings
MEUR	Q3 2015	Q3 2014 Δ% 1)		Q3 2015	Q3 2014	Δ%
Geospatial Enterprise Solutions	371.4	334.7	6	78.6	67.2	17
Industrial Enterprise Solutions	370.9	313.9	7	95.2	78.1	22
Other Operations	-	-	n.a.	-	-	n.a.
Net sales	742.3	648.6	6
Group cost and eliminations				-6.0	-4.6	-30
Operating earnings (EBIT1)				167.8	140.7	19
Operating margin, %				22.6	21.7	0.9
Interest income and expenses, net				-6.1	-8.7	30
Earnings before non-recurring items				161.7	132.0	23
Non-recurring items				-	-18.6	n.a.
Earnings before taxes				161.7	113.4	43
Taxes				-32.3	-23.0	-40
Net earnings				129.4	90.4	43
1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.

CURRENCY IMPACT – THIRD QUARTER AS COMPARED TO EUR

	Movement 1)	Income less cost	Earnings impact
CHF	Strengthened 13%	Negative	Negative 
USD	Strengthened 19%	Positive	Positive 
CNY	Strengthened 16%	Positive	Positive 
EBIT1, MEUR			8.3

SALES BRIDGE THIRD QUARTER ORGANIC GROWTH

	Net sales
2014, MEUR	648.6
Structure, %	1
Currency, %	8
Organic grow th, %	6
Total, %	14
2015, MEUR	742.3
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.

Analysis of organic growth1) per geographic region
Q3 2014	648.6
Western Europe (29% of sales)
Asia excl. China (13% of sales)
North America (31% of sales)
China (16% of sales)		>8%
EMEA excl. Western Europe (8% of sales)		0-8%
South America (3% of sales)		Negative
Q3 2015	742.3

1) Adjusted to fixed exchange rates and a comparable group structure (organic grow th).

GEOSPATIAL ENTERPRISE SOLUTIONS – THIRD QUARTER 2015

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 Hexagon Geosystems, Hexagon Safety & Infrastructure, Hexagon Positioning, Hexagon Geospatial and Hexagon Mining.

NET SALES

Geospatial Enterprise Solutions (GES) sales amounted to 371.4 MEUR (334.7). Organic growth was 6 per cent. Regionally, organic growth was 5 per cent in EMEA, 6 per cent in Americas and 8 per cent in Asia.

GES benefited from a strong demand in North America, while South America faced weak demand in several key markets. In EMEA, sales grew in Western Europe, Eastern Europe, Russia and the Middle East, while sales in Africa fell. Asia returned to growth, as strength in India, Australia and New Zealand offset the difficult market conditions in China. The Chinese market continued to decline and sales fell organically by 6 per cent.

Regarding the business units within GES, Hexagon Geosystems continued to see a positive contribution from the surveying business in regions such as North America and Western Europe. Growth rates increased compared to prior quarters due to initiatives such as the Hexagon Imagery Programme (CaaS) and the Q2 'Captivate' software release. Organic growth in Hexagon Geosystems amounted to 7 per cent. Hexagon Safety & Infrastructure (formerly known as Intergraph SG&I) reported 5 per cent organic growth. Safety & Infrastructure's growth rate increased as the improvement in order intake over the last couple of quarters has begun to impact sales. Organically, Hexagon Positioning recorded 0 per cent growth as recent customer wins offset an underlying weak market in agriculture.

OPERATING EARNINGS (EBIT1)

Operating earnings (EBIT1) increased by 17 per cent to 78.6 MEUR (67.2), which corresponds to an operating margin of 21.2 per cent (20.1). The operating margin saw a positive impact from organic growth, cost reductions and product releases.

NET SALES, OPERATING EARNINGS (EBIT1) AND NUMBER OF EMPLOYEES

MEUR	Q3 2015	Q3 2014	Δ%	Q1-Q3 2015 Q1-Q3 2014		Δ%
Net sales	371.4	334.7	1) 6	1,111.6	981.2	1) 3
Operating earnings (EBIT1)	78.6	67.2	17	219.5	189.7	16
Operating margin,%	21.2	20.1	1.1	19.7	19.3	0.4
Average number of employees	7,998	7,817	2	7,919	7,382	7

1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.

GES – NET SALES PER GEOGRAPHY* GES – NET SALES PER CUSTOMER SEGMENT**

* Q3 2015 numbers ** Full-year 2014 numbers

INDUSTRIAL ENTERPRISE SOLUTIONS – THIRD QUARTER 2015

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) and CAM (computer-aided manufacturing) 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 Hexagon Metrology and Intergraph PP&M.

NET SALES

Industrial Enterprise Solutions (IES) sales amounted to 370.9 MEUR (313.9). Organic growth was 7 per cent. Regionally, organic growth was 10 per cent in EMEA, -4 per cent in Americas and 11 per cent in Asia.

IES benefited from a strong performance in Asia, where the Chinese market grew organically by 8 per cent as it saw strength in the power and energy segment, as well as the electronics and automotive segment. Markets such as Japan, Australia and South Korea also recorded strong growth. In EMEA, Western Europe saw strong demand in Germany, Spain and Italy. Russia saw growth after several quarters of weak demand, while Eastern Europe declined. Organically, sales declined in Americas. North America saw a low-single digit decline in revenue, while South America fell by double-digits. The decline in North America was due to weak demand in the manufacturing segment.

Regarding the business units within IES, Hexagon Metrology recorded 4 per cent organic growth. Metrology did however experience a weaker order intake and the book to bill ratio was negative in the third quarter. Intergraph PP&M had strong performance in Western Europe and Asia, recording 12 per cent organic growth. However, when adjusting for a strategic software win from the shipbuilding industry, PP&M saw mid-single digit organic growth despite an underlying weaker market in the oil and gas industry.

OPERATING EARNINGS (EBIT1)

Operating earnings (EBIT1) increased by 22 per cent to 95.2 MEUR (78.1), which corresponds to an operating margin of 25.7 per cent (24.9). The operating margin (EBIT1) was again positively impacted by the strong performance of PP&M and the changing business model of Metrology, where higher-value added products such as software represents an increasingly larger portion of sales.

NET SALES, OPERATING EARNINGS (EBIT1) AND NUMBER OF EMPLOYEES

MEUR	Q3 2015	Q3 2014	Δ%	Q1-Q3 2015 Q1-Q3 2014 Δ%
Net sales	370.9	313.9	1) 7	1) 8 1,116.5 884.8
Operating earnings (EBIT1)	95.2	78.1	22	294.4 227.4 29
Operating margin,%	25.7	24.9	0.8	26.4 25.7 0.7
Average number of employees	7,993	7,358	9	7,857 7,145 10

1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.

IES – NET SALES PER GEOGRAPHY* IES – NET SALES PER CUSTOMER SEGMENT**

FINANCIAL SUMMARY – FIRST NINE MONTHS FIRST NINE MONTHS -

		Net sales			Earnings
MEUR	Q1-Q3 2015	Q1-Q3 2014 Δ % 1)		Q1-Q3 2015	Q1-Q3 2014	Δ%
Geospatial Enterprise Solutions	1,111.6	981.2	3	219.5	189.7	16
Industrial Enterprise Solutions	1,116.5	884.8	8	294.4	227.4	29
Other Operations	-	13.0	-	-	0.4	n.a.
Net sales	2,228.1	1,879.0	5
Group cost and eliminations				-19.0	-13.8	-38
Operating earnings (EBIT1)				494.9	403.7	23
Operating margin, %				22.2	21.5	0.7
Interest income and expenses, net				-20.7	-25.0	17
Earnings before non-recurring items				474.2	378.7	25
Non-recurring items 2)				-36.6	-36.0	n.a.
Earnings before taxes				437.6	342.7	28
Taxes				-88.0	-69.1	-27
Net earnings				349.6	273.6	28

1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.

2) Non-recurring items during Q1-Q3 2015 relate to the implementation of a savings programme.

NET SALES AND EARNINGS

Net sales amounted to 2,228.1 MEUR (1,879.0) in the first nine months of the year. Using fixed exchange rates and a comparable group structure, net sales increased by 5 per cent.

Operating earnings (EBIT1) amounted to 494.9 MEUR (403.7), which corresponds to an operating margin of 22.2 per cent (21.5). Operating earnings (EBIT1) were positively affected by exchange rate movements of 36.5 MEUR.

During the first nine months of 2015, Hexagon posted non-recurring items of -36.6 MEUR (-36.0) related to a restructuring programme aimed at lowering costs in Switzerland and USA. The non-recurring items were recorded in the first quarter of 2015.

The financial net amounted to -20.7 MEUR (-25.0) in the first nine months.

Earnings before taxes, excluding nonrecurring items, amounted to 474.2 MEUR (378.7). Earnings before taxes, including these items, amounted to 437.6 MEUR (342.7). Earnings before taxes were positively affected by exchange rate movements of 36.4 MEUR.

Net earnings, excluding non-recurring items, amounted to 379.4 MEUR (303.0) or 1.04 EUR (0.84) per share. Net earnings, including these items, amounted to 349.6 MEUR (273.6) or 0.96 EUR (0.76) per share.

CURRENCY IMPACT – FIRST NINE MONTHS 2015 AS COMPARED TO EUR

	Movement 1)		Income less cost	Earnings impact
CHF	Strengthened	15%	Negative	Negative 
USD	Strengthened	22%	Positive	Positive 
CNY	Strengthened	20%	Positive	Positive 
EBIT1, MEUR				36.5

1) Compared to Q1-Q3 2014.

Fincantieri, the number-one European shipbuilding company, selected Hexagon to improve the execution of large-scale cruise, military and merchant shipbuilding projects. Fincantieri will replace existing in-house software with Smart Yard, Hexagon's integrated CAD/PLM suite. Smart Yard will be used in all Fincantieri shipbuilding projects.

GROUP SUMMARY

PROFITABILITY

Capital employed increased to 5,964.1 MEUR (5,538.7). Return on average capital employed for the last twelve months was 11.5 per cent (11.5). Return on average shareholders' equity for the last twelve months was 13.0 per cent (12.7). The capital turnover rate was 0.5 times (0.5).

FINANCIAL POSITION

Total shareholders' equity increased to 3,886.7 MEUR (3,278.9). The equity ratio was 54 per cent (49). Hexagon's total assets increased to 7,194.5 MEUR (6,644.1). The increase in total assets is driven primarily by the strengthening of the USD against the EUR.

Following a refinancing in 2014, Hexagon's main sources of financing consist of:

1) A multicurrency revolving credit facility (RCF) established during Q3 2014. The RCF amounts to 2,000 MEUR with a tenor of 5+1+1 years

2) A Swedish Medium Term Note Programme (MTN) established during Q3 2014. The MTN programme amounts to 10,000 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 30 September 2015, cash and unutilised credit limits totalled 1,246.6 MEUR (851.6). Hexagon's net debt was 1,769.7 MEUR (2,065.8). The net indebtedness was 0.41 times (0.59). Interest coverage ratio was 18.3 times (13.1).

CASH FLOW

During the third quarter, cash flow from operations before changes in working capital amounted to 177.8 MEUR (151.2), corresponding to 0.49 EUR (0.42) per share. Cash flow from operations in the third quarter amounted to 198.5 MEUR (139.2), corresponding to 0.55 EUR (0.39) per share. Operating cash flow in the third quarter, including non-recurring items, amounted to 138.3 MEUR (73.1).

For the first nine months, cash flow from operations amounted to 469.6 MEUR (369.5), corresponding to 1.31 EUR (1.04) per share.

The operating cash flow, including nonrecurring items, amounted to 280.4 MEUR (186.1).

INVESTMENTS, DEPRECIATION, AMORTISATION AND IMPAIRMENT

Hexagon's net investments, excluding acquisitions and divestitures, amounted to -58.4 MEUR (-56.2) in the third quarter and -173.5 MEUR (-169.8) in the first nine months.

Depreciation, amortisation and impairment amounted to -51.3 MEUR (-56.6) in the third quarter and -152.5 MEUR (-144.1) during the first nine months. Hexagon recorded no impairment charges in the third quarter (-15.6) or in the first nine months of 2015 (-27.5).

TAX RATE

The Group's tax expense for the first nine months totalled -88.0 MEUR (-69.1).

The reported tax rate was 20.0 per cent (20.3) for the quarter and 20.1 per cent (20.2) for the first nine months. The tax rate, excluding nonrecurring items, was 20.0 (20.0) per cent for the quarter and 20.0 (20.0) for the first nine months.

EMPLOYEES

The average number of employees during the first nine months was 15,847 (14,646). The number of employees at the end of the quarter was 16,036 (15,743). The increase was primarily driven by acquisitions.

SHARE DATA

Earnings per share, excluding non-recurring items, for the third quarter amounted to 0.36 EUR (0.29). Earnings per share, including nonrecurring items, for the third quarter amounted to 0.36 EUR (0.25). Earnings per share, excluding non-recurring items, for the first nine months amounted to 1.04 EUR (0.84). Earnings per share, including non-recurring items, for the first nine months amounted to 0.96 EUR (0.76).

On 30 September 2015, equity per share was 10.77 EUR (9.18) and the share price was 255.30 SEK (229.0).

Hexagon's share capital amounts to 79,894,015 EUR, represented by 360,054,362 shares, of which 15,750,000 are of series A with 10 votes each and 344,304,362 are of series B with one vote each. Hexagon AB held no treasury shares.

In accordance with a decision by a Shareholders' General Meeting in May 2015, an incentive programme (2015/2019) was introduced, under which a maximum of 10,000,000 warrants can be issued. The dilutive effect at full utilization of the programme will be 2.8 per cent of the share capital and 2.0 per cent of the number of votes. The number of warrants that have been issued are 7,107,660. The incentive programme introduced in December 2011 (2011/2015) had on 30 September 2015 340,780 warrants outstanding.

ASSOCIATED COMPANIES

Associated companies affected Hexagon's earnings during the first nine months by 0.1 MEUR (-0.1).

PARENT COMPANY

The parent company's earnings after financial items for the first nine months was 2,750.3 MEUR (184.6). The equity was 4,570.8 MEUR (1,839.2). The equity ratio of the parent company was 59 per cent (37). Liquid funds including unutilised credit limits were 1,013.5 MEUR (653.6)

After five years under the Hexagon umbrella, Intergraph SG&I has undergone a change to become Hexagon Safety & Infrastructure.

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, their financial position and performance, and describes material risks and uncertainties facing the Company and companies within the Group.

Stockholm, Sweden, 27 October 2015 Hexagon AB (publ)

Melker Schörling Chairman of the Board

Ulrika Francke Gun Nilsson Board Member Board Member

Jill Smith Ulrik Svensson Board Member Board Member

Ola Rollén President and CEO Board Member

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 2014. New and amended standards applicable from 2015 have not had any significant impact on the financial statements.

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 2014 Annual Report.

RELATED PARTY TRANSACTIONS

No significant related party transactions have been incurred during the quarter.

NOMINATION COMMITTEE PRIOR TO THE ANNUAL GENERAL MEETING

The composition of the Hexagon Nomination Committee for the Annual General Meeting 2016 is: Mikael Ekdahl, Melker Schörling AB (Chairman), Anders Oscarsson, AMF Fonder, Jan Andersson, Swedbank Robur Fonder and Henrik Didner, Didner & Gerge Fonder.

SUBSEQUENT EVENTS

On 2 October 2015 Hexagon completed the acquisition of EcoSys.

AUDITORS' REVIEW REPORT

Introduction

We have reviewed the condensed interim report for Hexagon AB as at September 30, 2015 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the Swedish Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm, 27 October 2015

Ernst & Young AB

Rickard Andersson Authorised Public Accountant

Condensed Income Statement

MEUR	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	742.3	648.6	2,228.1	1,879.0	2,622.4
Cost of goods sold	-297.5	-270.5	-889.7	-805.5	-1,107.9
Gross earnings	444.8	378.1	1,338.4	1,073.5	1,514.5
Sales expenses	-134.2	-118.0	-419.3	-329.8	-457.0
Administration expenses	-67.3	-62.7	-212.6	-168.3	-239.9
Research and development expenses	-71.9	-77.7	-237.6	-205.5	-280.6
Earnings from shares in associated companies	0.0	-0.1	0.1	-0.1	0.0
Capital loss from sale of shares in Group companies	0.0	0.0	0.0	-1.5	-1.5
Other income and expenses, net	-3.6	2.5	-10.7	-0.6	6.6
Operating earnings 1)	167.8	122.1	458.3	367.7	542.1
Interest income and expenses, net	-6.1	-8.7	-20.7	-25.0	-33.6
Earnings before taxes	161.7	113.4	437.6	342.7	508.5
Taxes	-32.3	-23.0	-88.0	-69.1	-102.3
Net earnings	129.4	90.4	349.6	273.6	406.2
Attributable to:
Parent company shareholders	127.9	89.4	345.3	270.8	402.8
Non-controlling interest	1.5	1.0	4.3	2.8	3.4
1) of w hich non-recurring items	-	-18.6	-36.6	-36.0	-36.0
Earnings include depreciation, amortisation and impairments of	-51.3	-56.6	-152.5	-144.1	-192.9
- of w hich amortisation of surplus values	-8.0	-6.2	-23.7	-17.0	-24.7
- of w hich impairments	-	-15.6	-	-27.5	-27.5
Basic earnings per share, EUR	0.36	0.25	0.96	0.76	1.13
Earnings per share after dilution, EUR	0.36	0.25	0.96	0.76	1.13
Total shareholder's equity per share, EUR	10.77	9.18	10.77	9.18	9.68
Closing number of shares, thousands	360,055	356,039	360,055	356,039	357,389
Average number of shares, thousands	359,999	355,925	359,144	355,520	355,764
Average number of shares after dilution, thousands	360,222	357,750	359,536	356,983	357,225

Condensed Comprehensive Income

MEUR	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net earnings	129.4	90.4	349.6	273.6	406.2
Other comprehensive income
Items that w ill not be reclassified to income statement
Remeasurement of pensions	2.7	-	-4.8	-	-39.6
Taxes on items that w ill not be reclassified to income statement	-0.2	-	0.5	-	4.9
Total items that w ill not be reclassified to income statement, net of taxes	2.5	-	-4.3	-	-34.7
Items that may be reclassified subsequently to income statement
Exchange rate differences	-81.3	236.5	171.1	283.2	373.4
Effect of hedging of net investments in foreign operations	-0.4	-23.2	-12.7	-26.8	-36.4
Cash flow hedges, net	-	-	-	0.0	-
Taxes on items that may be reclassified subsequently to income statement	3.0	-3.6	-8.0	-3.8	-4.4
Total items that may be reclassified subsequently to income statement, net of taxes	-78.7	209.7	150.4	252.6	332.6
Other comprehensive income, net of taxes	-76.2	209.7	146.1	252.6	297.9
Total comprehensive income for the period	53.2	300.1	495.7	526.2	704.1
Attributable to:
Parent company shareholders	51.8	298.5	490.7	522.9	699.6
Non-controlling interest	1.4	1.6	5.0	3.3	4.5

Condensed Balance Sheet

MEUR	30/9 2015	30/9 2014	31/12 2014
Intangible fixed assets	5,290.7	4,884.6	4,998.8
Tangible fixed assets	293.6	307.7	311.9
Financial fixed assets	23.7	18.5	24.6
Deferred tax assets	82.9	79.5	66.0
Total fixed assets	5,690.9	5,290.3	5,401.3
Inventories	448.1	424.6	403.9
Accounts receivable	643.5	581.9	615.4
Other receivables	67.2	64.9	60.4
Prepaid expenses and accrued income	123.3	88.4	102.4
Total current receivables	834.0	735.2	778.2
Cash and cash equivalents	221.5	194.0	228.6
Total current assets	1,503.6	1,353.8	1,410.7
Total assets	7,194.5	6,644.1	6,812.0
Equity attributable to parent company shareholders	3,876.9	3,268.8	3,458.8
Equity attributable to non-controlling interest	9.8	10.1	11.4
Total shareholders' equity	3,886.7	3,278.9	3,470.2
Interest bearing liabilities	1,783.5	1,448.0	1,573.3
Other liabilities	3.8	3.9	7.0
Pension liabilities	94.3	56.2	87.6
Deferred tax liabilities	406.0	362.2	361.8
Other provisions	46.4	57.9	66.0
Total long-term liabilities	2,334.0	1,928.2	2,095.7
Interest bearing liabilities	104.7	677.4	457.6
Accounts payable	149.7	147.7	166.6
Other liabilities	114.8	99.7	130.3
Other provisions	94.9	63.3	48.0
Deferred income	219.6	201.8	202.0
Accrued expenses	290.1	247.1	241.6
Total short-term liabilities	973.8	1,437.0	1,246.1
Total equity and liabilities	7,194.5	6,644.1	6,812.0

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 long-term securities holdings amount to insignificant numbers. 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	Q1-Q3 2015	Q1-Q3 2014	2014
Opening shareholders' equity	3,470.2	2,846.3	2,846.3
Total comprehensive income for the period 1)	495.7	526.2	704.1
New share issues, w arrants exercised - net of issuance costs	34.3	16.2	29.5
Dividend	-132.4	-110.1	-110.3
Warrants issued	18.9	-	-
Effect of acquisitions of subsidiaries	-	0.3	0.6
Closing shareholders' equity 2)	3,886.7	3,278.9	3,470.2
1) Of w hich: Parent company shareholders	490.7	522.9	699.6
Non-controlling interest	5.0	3.3	4.5
2) Of w hich: Parent company shareholders	3,876.9	3,268.8	3,458.8
Non-controlling interest	9.8	10.1	11.4

Number of Shares

	series A	series B	Total
2009-12-31 Total issued and outstanding	11,812,500	252,534,653	264,347,153
Sale of repurchased shares	-	20,070	20,070
Rights issue	3,937,500	83,845,572	87,783,072
2010-12-31 Total issued and outstanding	15,750,000	336,400,295	352,150,295
Rights issue	-	339,335	339,335
2011-12-31 Total issued and outstanding	15,750,000	336,739,630	352,489,630
Sale of repurchased shares	-	185,207	185,207
2012-12-31 Total issued and outstanding	15,750,000	336,924,837	352,674,837
Sale of repurchased shares	-	967,340	967,340
New issue, w arrants exercised	-	1,354,800	1,354,800
2013-12-31 Total issued and outstanding	15,750,000	339,246,977	354,996,977
New issue, w arrants exercised	-	2,392,236	2,392,236
2014-12-31 Total issued and outstanding	15,750,000	341,639,213	357,389,213
New issue, w arrants exercised	-	2,665,149	2,665,149
2015-09-30 Total issued and outstanding 1)	15,750,000	344,304,362	360,054,362

1) As per 30 September 2015, there were in total 360,054,362 shares in the Company, of which 15,750,000 are of series A with ten votes each and 344,304,362 are of series B with one vote each. Hexagon AB holds no treasury shares.

Warrants exercised until 2015-09-30 have incurred a new share issue in progress as per 2015-09-30 of 48,000 new shares of series B. The new share issue will be finalized in the fourth quarter of 2015.

Condensed Cash Flow Statement

MEUR	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Cash flow from operations before change in w orking capital
excluding taxes and interest	221.7	176.7	642.2	514.0	731.9
Taxes paid	-38.4	-19.2	-96.5	-63.3	-84.5
Interest received and paid, net	-5.5	-6.3	-15.4	-19.5	-28.2
Cash flow from operations before change in w orking capital	177.8	151.2	530.3	431.2	619.2
Cash flow from change in w orking capital	20.7	-12.0	-60.7	-61.7	-55.8
Cash flow from operations	198.5	139.2	469.6	369.5	563.4
Investments tangible assets	-11.1	-19.7	-30.5	-57.8	-69.3
Investments intangible assets	-47.3	-36.5	-143.0	-112.0	-163.2
Operating cash flow	140.1	83.0	296.1	199.7	330.9
Non-recurring cash flow 1)	-1.8	-9.9	-15.7	-13.6	-14.2
Operating cash flow after non-recurring items	138.3	73.1	280.4	186.1	316.7
Cash flow from other investing activities 2)	0.2	-372.6	-48.6	-516.1	-550.0
Cash flow after other investing activities	138.5	-299.5	231.8	-330.0	-233.3
Dividends paid	-6.5	-	-132.4	-110.1	-110.3
New share issues, w arrants exercised - net of issuance costs	0.8	5.7	34.3	16.2	29.5
Warrants issued	13.8	-	13.8	-	-
Cash flow from other financing activities	-155.4	321.9	-149.4	437.9	353.4
Cash flow for the period	-8.8	28.1	-1.9	14.0	39.3
Cash and cash equivalents, beginning of period	241.1	165.8	228.6	176.0	176.0
Effect of translation differences on cash and cash equivalents	-10.8	0.1	-5.2	4.0	13.3
Cash flow for the period	-8.8	28.1	-1.9	14.0	39.3
Cash and cash equivalents, end of period	221.5	194.0	221.5	194.0	228.6

1) Non-recurring cash flow in third quarter of 2015 consists of restructuring cost of -1.8 MEUR.

2) Acquisitions and divestments in the third quarter of 2015 totalled 0.0 MEUR (-371.9) and other was 0.2 MEUR (-0.7).

Key Ratios

	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Operating margin, %	22.6	21.7	22.2	21.5	22.0
Profit margin before taxes, %	21.8	17.5	19.6	18.2	19.4
Return on shareholders' equity, 12 month average, %	13.0	12.7	13.0	12.7	13.1
Return on capital employed, 12 month average, %	11.5	11.5	11.5	11.5	11.6
Equity ratio, %	54.0	49.4	54.0	49.4	50.9
Net indebtedness	0.41	0.59	0.41	0.59	0.50
Interest coverage ratio	21.0	12.5	18.3	13.1	14.3
Average number of shares, thousands	359,999	355,925	359,144	355,520	355,764
Basic earnings per share excl. non-recurring items, EUR	0.36	0.29	1.04	0.84	1.21
Basic earnings per share, EUR	0.36	0.25	0.96	0.76	1.13
Cash flow per share, EUR	0.55	0.39	1.31	1.04	1.58
Cash flow per share before change in w orking cap, EUR	0.49	0.42	1.48	1.21	1.74
Share price, SEK	255.30	229.00	255.30	229.00	242.00
Share price, translated to EUR	27.14	25.04	27.14	25.04	25.76

Supplementary Information

NET SALES – NEW SEGMENT STRUCTURE

MEUR	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
Geospatial Enterprise Solutions	371.4	385.6	354.6	367.4	334.7	338.7	307.8	1,348.6
Industrial Enterprise Solutions	370.9	395.1	350.5	376.0	313.9	296.9	274.0	1,260.8
Other Operations	-	-	-	-	-	-	13.0	13.0
Group	742.3	780.7	705.1	743.4	648.6	635.6	594.8	2,622.4

OPERATING EARNINGS (EBIT1) – NEW SEGMENT STRUCTURE

MEUR	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
Geospatial Enterprise Solutions	78.6	74.6	66.3	80.5	67.2	67.0	55.5	270.2
Industrial Enterprise Solutions	95.2	109.5	89.7	98.5	78.1	77.2	72.1	325.9
Other Operations	-	-	-	-	-	-	0.4	0.4
Group costs	-6.0	-6.8	-6.2	-4.6	-4.6	-4.6	-4.6	-18.4
Group	167.8	177.3	149.8	174.4	140.7	139.6	123.4	578.1
Margin, %	22.6	22.7	21.2	23.5	21.7	22.0	20.7	22.0

NET SALES – FORMER SEGMENT STRUCTURE

MEUR	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
Hexagon MT - Of which	742.3	780.7	705.1	743.4	648.6	635.6	581.8	2,609.4
Geosystems	248.9	263.5	234.2	246.7	222.8	229.6	208.2	907.3
Metrology	253.1	272.1	240.1	260.9	214.1	196.4	179.4	850.8
Technology	240.3	245.1	230.8	235.8	211.7	209.6	194.2	851.3
Other Operations	-	-	-	-	-	-	13.0	13.0
Group	742.3	780.7	705.1	743.4	648.6	635.6	594.8	2,622.4

OPERATING EARNINGS (EBIT1) – FORMER SEGMENT STRUCTURE

MEUR	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
Hexagon MT	173.8	184.1	156.0	179.0	145.3	144.2	127.6	596.1
Other Operations	-	-	-	-	-	-	0.4	0.4
Group costs	-6.0	-6.8	-6.2	-4.6	-4.6	-4.6	-4.6	-18.4
Group	167.8	177.3	149.8	174.4	140.7	139.6	123.4	578.1
Margin, %	22.6	22.7	21.2	23.5	21.7	22.0	20.7	22.0

NET SALES PER GEOGRAPHY

MEUR	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
EMEA	273.0	291.9	261.6	290.3	248.2	259.4	245.3	1,043.3
Americas	257.7	270.5	242.3	251.9	228.3	203.8	186.1	870.1
Asia	211.6	218.3	201.2	201.2	172.1	172.3	163.4	709.0
Group	742.3	780.7	705.1	743.4	648.6	635.6	594.8	2,622.4

EXCHANGE RATES

Average	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
SEK/EUR	0.1060	0.1075	0.1066	0.1079	0.1086	0.1105	0.1129	0.1099
USD/EUR	0.8988	0.9056	0.8888	0.8002	0.7544	0.7291	0.7299	0.7539
CNY/EUR	0.1426	0.1460	0.1425	0.1302	0.1224	0.1170	0.1196	0.1224
CHF/EUR	0.9322	0.9608	0.9337	0.8303	0.8254	0.8202	0.8173	0.8234
Closing	Q3 2015	Q2 2015	Q1 2015	Q4 2014	Q3 2014	Q2 2014	Q1 2014	2014
SEK/EUR	0.1063	0.1085	0.1076	0.1065	0.1093	0.1090	0.1118	0.1065
USD/EUR	0.8926	0.8937	0.9295	0.8237	0.7947	0.7322	0.7253	0.8237
CNY/EUR	0.1404	0.1442	0.1499	0.1327	0.1294	0.1180	0.1166	0.1327
CHF/EUR	0.9162	0.9603	0.9557	0.8317	0.8290	0.8226	0.8201	0.8317

Acquisitions

			Acquisitions
MEUR	Q-DAS	Other	Q1-Q3 2015	Q1-Q3 2014
Fair value of acquired assets and assumed liabilities
Intangible fixed assets	22.7	3.7	26.4	158.0
Other fixed assets	0.5	0.2	0.7	26.5
Total fixed assets	23.2	3.9	27.1	184.5
Total current assets	5.2	1.4	6.6	101.3
Total assets	28.4	5.3	33.7	285.8
Total long-term liabilities	0.8	1.0	1.8	80.4
Total short-term liabilities	4.0	0.6	4.6	64.9
Total liabilities	4.8	1.6	6.4	145.3
Fair value of acquired assets and assumed liabilities, net	23.6	3.7	27.3	140.5
Long-term securities holdings	-	-	-	-42.9
Shares in associated companies	-	-	-	-3.1
Non-controlling interest in equity	-	-	-	-0.3
Goodw ill	29.5	4.8	34.3	554.3
Total purchase consideration transferred	53.1	8.5	61.6	648.5
Less cash and cash equivalents in acquired companies Adjustment for non-paid consideration and considerations paid for			-3.7	-50.2
prior years' acquisitions			-6.4	-69.7
Cash flow from acquisition of companies/businesses			51.5	528.6

During the first nine months of 2015, Hexagon acquired the following companies:

• Ohmtech, a Norwegian software development company

• Q-DAS, a German provider of statistical process control software

• Blue Iron Systems, a Canadian provider of material handling solutions

• Technet-Rail, a German provider of mobile mapping technology for the rail industry

The acquisitions included in the column "Other" are individually assessed as immaterial from a group perspective why only aggregated information are presented. The analysis of the acquired net assets is preliminary and the fair value might be subject to change. Further information related to the acquisitions of Q-DAS is presented in the acqusition analysis on page 17.

ECOSYS

On September 10 2015, Hexagon announced the acquisition of EcoSys Management LLC, a provider of best-in-class enterprise planning and project controls software. EcoSys helps customers address the time and cost challenges of capital project management on a global scale.

Headquartered in Broomfield, Colorado, with offices in New York City, Houston, London and Sydney, EcoSys has implemented enterprise planning and cost control solutions for over 250 leading organisations around the world. Its web-based platform helps customers implement best practices for planning and managing project portfolios, controlling project costs and improving project performance. Additionally, the integration of project scheduling (4D) and cost management (5D) with Intergraph PP&M's 3D design and construction solutions will strengthen Hexagon's capabilities in the BIM (Building Information Modelling) market. EcoSys recorded strong growth in 2014 with a turnover of approximately 29 MUSD.

Hexagon has obtained regulatory approvals for EcoSys, which will be consolidated as of October 2 2015. EcoSys will contribute positively to Hexagon's earnings from start.

Acquisition analysis

ACQUISITION OF Q-DAS

As of April 14th 2015, after regulatory approvals, Hexagon became the owner of Q-DAS. Based in Germany, Q-DAS has offices and partner distribution companies around the world. Already compatible with both Hexagon and third-party solutions, the Q-DAS software portfolio is widely used in manufacturing sectors where high production volumes and dimensional quality needs require statistical analysis – like the automotive sector where Q-DAS is the de-facto standard.

Background and reasons for the transaction

Software solutions have become a vital part of optimizing the manufacturing process. Furthering Hexagon's strategy to expand its software portfolio in this area, the Q-DAS acquisition adds software to support the data management needs of a factory. While people, materials and methods can all lead to fluctuations in machine and process capability, Hexagon's solutions will now provide the means to more accurately observe and evaluate the production process in real time, enabling workers to control and suppress fluctuations as they occur. This helps customers avoid costly mistakes, align with global industry standards and achieve manufacturing efficiencies with high-quality output.

The Q-DAS portfolio will strengthen Hexagon's metrology planning solution, MMS (Metrology Management System), which is designed to provide easy access to measurement data – from any source or supplier – all in one place. The application of statistical procedures will improve measurement accuracy and consistency while also helping to automate the analysis of measurement results – making quality data fully actionable throughout the production process.

The goodwill of 29.5 MEUR comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognized. Synergies have primarily been identified to arise by i) combining Hexagon and Q-DAS technologies and ii) increasing Hexagon's total market in excess of Q-DAS own market.

Of the 22.7 MEUR of acquired intangible assets, 8.2 MEUR was assigned to trademarks that are not subject to amortization. The remaining 14.5 MEUR was assigned to capitalized development expenses and other assets with useful lives of 12-15 years. The intangible assets have been valued using a discounted cash flow method.

From the date of acquisition, Q-DAS has contributed 6.3 MEUR of net sales in 2015. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 9.9 MEUR.

The analysis of the acquired net assets is preliminary and the fair values might be subject to changes.

Divestments

	Divestments
MEUR	Q1-Q3 2015	Q1-Q3 2014
Carrying value of divested assets and liabilities, net
Intangible fixed assets	-	0.0
Other fixed assets	-	7.8
Total fixed assets	-	7.8
Total current assets	-	22.4
Total assets	-	30.2
Total long-term liabilities	-	1.3
Total current liabilities	-	22.3
Total liabilities	-	23.6
Carrying value of divested assets and liabilities, net	- -	6.6
Capital gain (+) / loss (-)	-	-1.5
Total purchase consideration transferred	-	5.1
Plus repayment of intercompany loan	-	14.0
Cash flow from divestment of companies/businesses	-	19.1

In March 2014, Hexagon divested SwePart Transmission AB that was reported within the former business area Other Operations. Following this divestment, Hexagon hasn't recorded any further activity within the Other Operations business area.

Condensed Parent Company Income Statement

MEUR	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	2.5	2.8	7.5	11.6	16.8
Administration cost	-6.1	-2.6	-18.0	-11.4	-15.4
Operating earnings	-3.6	0.2	-10.5	0.2	1.4
Earnings from shares in Group companies	-	0.0	2,662.7	146.5	146.6
Interest income and expenses, net	8.7	26.9	98.1	37.9	53.2
Earnings before taxes	5.1	27.1	2,750.3	184.6	201.2
Taxes	0.0	-5.9	0.0	-8.4	-6.2
Net earnings	5.1	21.2	2,750.3	176.2	195.0

Condensed Parent Company Balance Sheet

MEUR	30/9 2015	30/9 2014	31/12 2014
Total fixed assets	7,487.1	4,616.9	4,640.3
Total current receivables	229.0	308.2	223.3
Cash and cash equivalents	6.0	12.7	13.2
Total current assets	235.0	320.9	236.5
Total assets	7,722.1	4,937.8	4,876.8
Total shareholders' equity	4,570.8	1,839.2	1,885.2
Total long-term liabilities	1,775.7	1,452.5	1,564.6
Total short-term liabilities	1,375.6	1,646.1	1,427.0
Total equity and liabilities	7,722.1	4,937.8	4,876.8

Definitions

FINANCIAL DEFINITIONS

Amortization of surplus values	When a company is acquired, the purchase consideration is allocated to the identified assets and liabilities of the company. The amortization of surplus values is defined as the difference between the amortization of such identified intangible assets and what the amortization would have been in the acquired company had the acquisition not taken place at all.
Capital employed	Total assets less non-interest bearing liabilities
Capital turnover rate	Net sales divided by average capital employed
Cash flow	Cash flow from operations, after change in working capital, excluding non-recurring items
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 cover ratio	Earnings after financial items 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 indebtedness	Interest-bearing liabilities less interest-bearing current receivables and liquid assets divided by shareholders' equity excluding non-controlling interests
Non-recurring items	Income and expenses that are not expected to appear on a regular basis
Operating earnings (EBIT1)	Operating earnings excluding capital gains on shares in group companies and other non-recurring items
Operating earnings (EBITDA)	Operating earnings excluding non-recurring items and amortisation and depreciation of fixed assets
Operating margin	Operating earnings (EBIT1) as a percentage of net sales
Profit margin before taxes	Earnings after financial items as a percentage of net sales
Return on capital employed (12 month average)	Twelve months to end of period earnings after financial items, excluding non-recurring items, plus financial expenses as a percentage of twelve months to end of period average capital employed
Return on 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.
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
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
MT	Measurement Technologies, the former core business segment

Hexagon is a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications. Hexagon's solutions integrate sensors, software, domain knowledge and customer workflows into intelligent information ecosystems that deliver actionable information. They are used in a broad range of vital industries. Hexagon (Nasdaq Stockholm: HEXA B) has more than 16,000 employees in 46 countries and net sales of approximately 2.6bn EUR. Learn more at www.hexagon.com.

FINANCIAL REPORT DATES

Hexagon gives financial information at the following occasions:

Year-end report 2015 5 February 2016 Interim report Q1 2016 10 May 2016 Interim report Q2 2016 8 August 2016 Interim report Q3 2016 28 October 2016

FINANCIAL INFORMATION

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 ir@hexagon.com

TELEPHONE CONFERENCE

The interim report for the third quarter 2015 will be presented on 27 October at 10:00 CET at a telephone conference. Please view instructions at Hexagon's website on how to participate.

CONTACT

Mattias Stenberg, Chief Strategy Officer, Hexagon AB, +46 8 601 26 27, ir@hexagon.com

This interim report is a type of information that Hexagon AB (publ) is obliged to disclose in accordance with the Swedish Securities Market Act and /or the Financial Instruments Trading Act. The information was submitted for publication on 27 October 2015 at 08:00 CET.

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.