Hexagon

Quarterly Report • May 5, 2010

Interim Report

1 JANUARY – 31 MARCH 2010

Strong order intake with 16 per cent organic growth in the first quarter.

• North America and Europe return to growth and the emerging markets continue their rapid expansion.
• The gross margin improvement in the quarter confirms profitability of newly launched products. With expected volume growth in combination with cost control - the foundation for an EBIT margin expansion is in place.
• Strong earnings and the continuous focus on working capital generated operating cash flow of 249 MSEK (-15) in the first quarter.

MSEK	Q1 2010	Q1 2009	Change %
Order intake	3,124	2,989	16 1)
Net sales	2,908	3,038	6 1)
Operating earnings (EBIT1)	478	405	18
Operating margin, %	16.4	13.3	3.1
Earnings before taxes excl. non-recurring items	443	350	27
Non-recurring items	-	-175	n.a.
Earnings before taxes	443	175	153
Net earnings	381	151	152
Earnings per share excl. non-recurring items, SEK	1.43	1.14	25
Earnings per share, SEK	1.43	0.56	155

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

COMMENTS FROM OLA ROLLÉN, PRESIDENT AND CEO HEXAGON AB

"The anticipated recovery is now clearly visible in our reported numbers. Hexagon is returning to growth in order intake and net sales and the activity level at our customers signals a return to more normal demand levels. We are, however, coming from a poor demand situation and we are still in the initial phases of the global recovery. Once our sales numbers close in on the growing order intake our profit will improve further. During the remainder of the year we will take advantage of our right sized organisation and strengthened market position to once again expand via organic growth and complementary acquisitions."

MARKET DEVELOPMENT

The first quarter of 2010 sees a recovery in demand from the very low levels recorded in the first quarter of 2009. The organic growth in order intake and net sales was 16 and 6 per cent respectively. This is the first quarter since the global crisis begun when Hexagon records organic growth in net sales and the second consecutive quarter in which the Group reports organic growth in order intake. Geosystems displays double digit organic sales growth and Metrology reports flat organic sales growth compared to the corresponding period 2009. Both report double digit organic growth in order intake. Technology saw a decline compared to the high net sales recorded in the first quarter 2009 – primarily due to a delayed contract in the US.

SALES BRIDGE Q1

MSEK	Order intake	Net sales
2009	2,989	3,038
Structure, %	0	0
Currency, %	-11	-10
Organic growth, %	16	6
Total, %	5	-4
2010	3,124	2,908

PRODUCT DEVELOPMENT

The launch of the new Absolute Arm and Absolute Tracker AT401 was received well by the market. Hexagon also launched a new agricultural machine control system – the "mojoMINI". A new enhanced version of Hexagon's GIS software product "Imagine" and three new versions of the popular laser distance meter DISTOTM was also launched during the quarter.

NEW GROUP MANAGEMENT

As of April 2010 Hexagon's Group

• Management Team consists of:
• Ola Rollén, President and CEO
• Håkan Halén, CFO
• William Gruber, EVP
• Jürgen Dold, President Hexagon Geosystems
• Norbert Hanke, President Hexagon Metrology
• Li Hongquan, President Hexagon Asia
• Frederick London, General Counsel
• Bo Pettersson, Chief Technical Officer

COST REDUCTION PROGRAMME

The cost reduction programme was concluded in the fourth quarter 2009 and savings are at the expected level. Since September 2008 when the programme was initiated, Hexagon's workforce has been reduced by 1 264 persons out of which 84 persons left the company in the first quarter 2010. Hexagon's capabilities in R&D, Assembly and Sales & Service are intact which is why the majority of the savings will help Hexagon to expand its long term EBIT margin.

MARKET TRENDS

All regions are now displaying positive organic growth in order intake and sales. Asia and South America are continuing to display strong growth. North America and Europe are recovering from the low levels in the first quarter 2009, both with double digit growth figures in order intake. Asia represents 30 per cent of sales in Measurement Technologies (MT).

EMEA

The demand for Hexagon's products in EMEA improved during the first quarter. The organic growth in order intake and net sales was 14 and 1 per cent, respectively. For the Group's core business, MT, order intake and net sales organic growth was 10 and 0 per cent, respectively. The organic growth in order intake and sales for Other operations amounted to 131 per cent and 17 per cent, respectively. Inventories are now at the desired levels at Hexagon's distribution partners. Stock replenishment orders were booked during the quarter. The major markets in Western Europe experienced increased activity levels in the first quarter backed by improved demand for equipment used in connection to infrastructural investments. Spain, however, did not see such recovery. Eastern Europe, Russia, the Middle East and Africa continued to grow.

The Geosystems business recorded strong single digit sales growth compared to the first quarter 2009. The Metrology business reported negative sales growth but order intake is, once again, growing.

EMEA is expected to continue its recovery in 2010.

AMERICAS

Americas displayed organic growth in order intake and net sales of 19 and 8 per cent, respectively, in the first quarter. Hexagon's distribution partners are indicating that the inventory reduction phase is concluded.

Both Geosystems and Metrology were showing recovery in demand compared to the corresponding period 2009. Technology recorded negative growth in the quarter due to the postponement of a large order from the US government.

NAFTA is expected to continue its recovery in 2010.

South America, led by Brazil, is seeing strong demand for Geosystems, as well as, Metrology products. The mining and oil exploration activity is increasing and Hexagon is gaining market share in these segments.

The South American market is expected to deliver strong growth during 2010.

Asia grew throughout 2009 and has continued to grow in the first quarter of 2010. Americas has recovered faster than EMEA and is growing 8 per cent in the first quarter. EMEA's sales are flat compared to the corresponding period 2009.

Hexagon improved its operating margin from 5 per cent in 2001 to 20 per cent in 2008. In 2009 the margin decreased to approximately 17 per cent due to reduced volumes caused by the global economic downturn. In the first quarter 2010 the margin improved to 17.9 per cent (14.7).

ASIA

Asia displayed strong organic growth during the first quarter. The organic growth in order intake and net sales was 16 and 12 per cent, respectively.

The growth in the region was obtained from, primarily, infrastructural activities in China, as well as, strong demand from the Chinese automotive and aerospace industries. Chinese and Indian car manufacturers posted record sales and have continued to place orders to increase volume capacity and model capability. In addition to India and China several other markets and industries in the region are now growing again, as for example Korea, Australia and Japan.

Asia is expected to continue its growth during 2010 as the Chinese growth continues and other economies in the region return to growth.

NET SALES AND EARNINGS

		Net sales			Earnings
MSEK	Q1 2010		Q1 2009 Change % 1)	Q1 2010	Q1 2009	Change %
Hexagon MT	2,796	2,942	5	501	433	16
Other operations	112	96	17	-7	-15	-53
Group cost and eliminations				-16	-13	23
Operating earnings (EBIT1)				478	405	18
Per cent of net sales				16.4	13.3	3.1
Interest income and expenses, net				-35	-55	-36
Earnings before non-recurring items				443	350	27
Non recurring items				-	-175	n.a.
Net sales	2,908	3,038	6
Earnings before taxes				443	175	153
1) Organic growth

Order intake amounted to 3,124 MSEK (2,989) and net sales amounted to 2,908 MSEK (3,038) in the first quarter. Using fixed exchange rates and a comparable group structure, order intake increased by 16 per cent and net sales increased by 6 per cent.

Operating earnings (EBIT1) amounted to 478 MSEK (405), which corresponds to an operating margin of 16.4 per cent (13.3). Operating earnings were negatively affected by exchange rate movements of -56 MSEK.

The financial net amounted to -35 MSEK (-55) in the first quarter. The decrease is mainly explained by a lower net debt.

Earnings before taxes, excluding non-recurring items, amounted to 443 MSEK (350). In the first quarter of 2009, non-recurring items amounted to 175 MSEK related to the cost reduction programme. Earnings before taxes, including non-recurring items, amounted to 443 MSEK (175). Earnings were negatively affected by exchange rate fluctuations of -54 MSEK. Net earnings, excluding non-recurring items, amounted to 381 MSEK (302), or 1.43 SEK (1.14) per share. Net earnings, including these items, increased to 381 MSEK (151), or 1.43 SEK (0.56) per share.

CURRENCY IMPACT Q1 2010

	Movement 1)	Income-cost	Profit impact
CHF	Weakened 	Negative 	Positive 
USD	Weakened 	Positive 	Negative 
EUR	Weakened 	Positive 	Negative 
CNY	Weakened 	Positive 	Negative 
EBIT1, MSEK			-56

1) Compared to Q1 2009 (Compared to SEK)

The weakening of the Swiss Franc did not fully compensate for the negative currency impact on EBIT1 coming from the weakening of primarily the Euro.

By using Hexagon's navigation system "Leica mojoMINI" farmers can significantly improve their productivity and efficiency.

PROFITABILITY

Capital employed, defined as total assets less non-interest bearing liabilities, decreased to 22,166 MSEK (23,658). Return on average capital employed, excluding non-recurring items, for the last twelve months was 8.3 per cent (7.8). Return on average shareholders' equity for the last twelve months was 12.1 per cent (14.3). The capital turnover rate was 0.5 times (0.5).

FINANCIAL POSITION

Total shareholders' equity increased to 12,753 MSEK (12,191). The equity ratio increased to 51 per cent (45). Hexagon's total assets decreased to 25,253 MSEK (26,967).

Hexagon's primary source for financing the company's operations is a syndicated loan facility amounting to 1 billion EUR that expires in June 2011. To differentiate the debt portfolio and to prepare for the refinancing of the syndicated loan facility, Hexagon issued a 2,000 MSEK five year bond during the fourth quarter 2009 to a Swedish institutional investor.

On 31 March 2010, cash and unutilised credit limits totalled 4,279 MSEK (2,526). Hexagon's net debt was 8,109 MSEK (10,158).

The net indebtedness was 0.64 times (0.83). Interest coverage ratio was 13.0 times (4.0).

CASH FLOW

Cash flow from operations before changes in working capital increased to 467 MSEK (357), corresponding to 1.77 SEK (1.35) per share. Cash flow from operations increased to 453 MSEK (266), corresponding to 1.71 SEK (1.01) per share. The cash flow was adversely affected by the settlement of restructuring programme obligations, amounting to -25 MSEK (-47). The operating cash flow in the first quarter after restructuring increased to 249 MSEK (-15).

INVESTMENTS AND DEPRECIATION

Hexagon's net investments, excluding acquisitions and divestitures, were -179 MSEK (-234) for the first quarter. Depreciation and write-downs were -204 MSEK (-194) for the first quarter.

TAX RATE

The Group's tax expense for the first quarter totalled -62 MSEK (-24), corresponding to an effective tax rate of 14 per cent (14). The tax expense is affected by the fact that the majority of Hexagon's earnings is generated in foreign subsidiaries located in countries where the tax rates differ from the enacted rate in Sweden.

EMPLOYEES

The average number of employees in Hexagon during the quarter was 7,278 (8,036). The number of employees at the end of the quarter was 7,391 (8,084).

SHARE DATA

Earnings per share for the first quarter amounted to 1.43 SEK (0.56). Excluding nonrecurring items, earnings per share for the quarter amounted to 1.43 SEK (1.14). On 31 March 2010, equity per share was 48.04 SEK (45.93) and the share price was 103 SEK (40). At full exercise of existing stock option programmes, the dilution effect would be 1.0 per cent of the share capital and 0.7 per cent of the number of votes.

ASSOCIATED COMPANIES

Associated companies affected Hexagon's earnings during the quarter by 0 MSEK (-2).

PARENT COMPANY

The parent company's earnings after financial items for the first quarter amounted to 71 MSEK (-51). The solvency ratio of the parent company was 38 per cent (36). The equity was 7,098 MSEK (6,748). Liquid funds including unutilised credit limits were 3,416 MSEK (1,615).

A new generation of portable 3D measuring arms have been released to the market. It is the first measuring arm to have absolute encoders. This technology avoids the earlier need with all measuring arms to initialise the encoders – now the user can simply switch the machine on and start measuring.

BUSINESS AREA

MEASUREMENT TECHNOLOGIES

	Q1	Q1	Change
MSEK	2010	2009	%
Order intake	2,997	2,934	14 1)
Net sales	2,796	2,942	5 1)
Operating earnings (EBIT1)	501	433	16
Operating margin, %	17.9	14.7	3.2

1) Organic growth.

Order intake amounted to 2,997 MSEK (2,934) during the first quarter. Net sales amounted to 2,796 MSEK (2,942). Using fixed exchange rates and a comparable group structure, order intake increased by 14 per cent and net sales by 5 per cent.

Operating earnings (EBIT1) amounted to 501 MSEK (433), which corresponds to an

operating margin of 18 per cent (15). The number of employees by the end of the quarter was 7,083 (7,735).

OTHER OPERATIONS

	Q1	Q1	Change
MSEK	2010	2009	%
Order intake	127	55	131 1)
Net sales	112	96	17 1)
Operating earnings (EBIT1)	-7	-15	-53
Operating margin, %	-6.3	-15.6	9.3

1) Organic growth.

Order intake amounted to 127 MSEK (55) during the first quarter. Net sales amounted to 112 MSEK (96). Using fixed exchange rates and a comparable group structure, order intake increased by 131 per cent and net sales by 17 per cent.

Operating earnings (EBIT1) amounted to -7 MSEK (-15).

The number of employees by the end of the quarter was 297 (339).

MEASUREMENT TECHNOLOGIES APPLICATION AREAS

		Order intake			Net sales
	Q1	Q1	Change 1)	Q1	Q1	Change 1)
MSEK	2010	2009	%	2010	2009	%
Geosystems	1,773	1,727	13	1,680	1,671	10
Metrology	1,095	1,013	21	975	1,090	0
Technology	129	194	-20	141	181	-10
Total Hexagon MT	2,997	2,934	14	2,796	2,942	5

1) Organic growth

Geosystems is showing double digit growth again. Metrology has seen a turn-around in its markets but displays flat organic growth compared to the corresponding period 2009. The organic growth of 21 per cent in order intake in Metrology however signals growth in coming quarters.

NET SALES - ORGANIC GROWTH BY APPLICATION AREA (MT)

Geosystems experienced a shift in demand during 2009 sooner than Metrology. Geosystems has been steadily improving since the first quarter 2009 whereas Metrology's recovery was first seen in the fourth quarter 2009. Technology recorded negative growth in the first quarter 2010 due to the postponement of a large order from the US government.

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 2009.

RISKS AND UNCERTAINTY FACTORS

As an international Group with a wide geographic scope, 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, the giving of credit, raw materials and financial instruments. 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. For a detailed description of risks and risk management, refer to the Annual Report for 2009. Due to the financial crisis, there is a risk for increased cost for, and lack of availability of, refinancing. Hexagon will continuously monitor the credit market as well as safeguard the Group's financial position via release of working capital and improved cash flow to ensure access to credit. No significant risks other than the risks referred to above are deemed to be currently relevant.

RELATED PARTY TRANSACTIONS

No significant related party transaction have ocurred in the first quarter of 2010.

SUBSEQUENT EVENTS

No significant events have occurred during the period between quarter-end and date of issuance of this report.

Consolidated Income Statement

MSEK	Q1 2010	Q1 2009	2009
Net sales	2,908	3,038	11,811
Cost of goods sold	-1,394	-1,609	-6,231
Gross profit	1,514	1,429	5,580
Sales and administration costs	-1,036	-1,197	-3,978
Earnings from shares in associated companies	0	-2	-2
Operating earnings 1)	478	230	1,600
Interest income and expenses, net	-35	-55	-158
Earnings before taxes	443	175	1,442
Taxes	-62	-24	-188
Net earnings 2)	381	151	1,254
1) of which non-recurring items	-	-175	-184
2) of which minority interest	3	2	9
Including depreciation and write-downs of 3)	-204	-194	-756
3) of which amortisation on excess values identified at acquisition	-27	-30	-116
Basic earnings per share, SEK	1.43	0.56	4.71
Earnings per share after dilution, SEK	1.43	0.56	4.71
Total shareholder's equity per share, SEK	48.04	45.93	47.03
Closing number of shares, thousand	264,347	264,208	264,347
Average number of shares, thousand	264,347	264,208	264,284
Average number of shares after dilution, thousand	264,425	264,817	264,511

Consolidated Comprehensive Income

MSEK	Q1 2010	Q1 2009	2009
Net earnings	381	151	1,254
Other comprehensive income:
Exchange rate differences	-207	-61	-953
Effect of hedging of net investments in foreign operations	127	135	430
Cash flow hedges, net	1	-4	1
Tax attributable to Other comprehensive income	-33	-40	-113
Other comprehensive income, net of tax	-112	30	-635
Total comprehensive income for the period	269	181	619
Attributable to:
Parent company shareholders	265	177	609
Minorities	4	4	10

Consolidated balance sheet

MSEK	31/3 2010	31/3 2009	31/12 2009
Intangible fixed assets	16,328	16,962	16,396
Tangible fixed assets	1,664	1,896	1,694
Financial fixed assets	147	104	129
Deferred tax assets	494	520	590
Total fixed assets	18,633	19,482	18,809
Inventories	2,663	3,249	2,597
Accounts receivable	2,608	2,928	2,630
Other receivables	333	416	306
Prepaid expenses and accrued income	364	310	290
Total current receivables	3,305	3,654	3,226
Cash and cash equivalents	652	582	794
Total current assets	6,620	7,485	6,617
Total assets	25,253	26,967	25,426
Attributable to the parent company's shareholders	12,698	12,134	12,433
Attributable to minority	55	57	51
Total shareholders' equity	12,753	12,191	12,484
Interest bearing liabilities	8,934	10,716	9,251
Other liabilities	13	19	14
Pension provisions	351	433	383
Deferred tax provisions	318	282	409
Other provisions	59	192	65
Total long-term liabilities	9,675	11,642	10,122
Other provisions	217	428	265
Interest bearing liabilities	62	71	117
Accounts payable	876	898	864
Other liabilities	468	525	477
Accrued expenses and deferred income	1,202	1,212	1,097
Total short-term liabilities	2,825	3,134	2,820
Total equity and liabilities	25,253	26,967	25,426

Changes in shareholders´equity

MSEK	31/3 2010	31/3 2009	31/12 2009
Opening shareholders' equity as of January 1	12,484	12,014	12,014
Total comprehensive income for the period 1)	269	181	619
Dividend	-	-4	-148
Effect of acquisitions and divestments of subsidiaries	0	-2	-3
Effect of share-based payments	-	2	2
Closing shareholders' equity 2)	12,753	12,191	12,484
1) of which: Parent company shareholders Minorities	265 4	177 4	609 10
2) of which: Parent company shareholders Minorities	12,698 55	12,134 57	12,433 51

Number of shares, analysis

	Nominal value, SEK	series A	series B	Total
2008-12-31 Total issued	2	11,812,500	253,707,270	265,519,770
Repurchase	2	-	-1,311,442	-1,311,442
2008-12-31 Total issued and outstanding	2	11,812,500	252,395,828	264,208,328
Options exercised	2	-	138,825	138,825
2009-12-31 Total issued and outstanding	2	11,812,500	252,534,653	264,347,153
2010-03-31 Total issued and outstanding	2	11,812,500	252,534,653	264,347,153

Consolidated cash flow analysis

MSEK	Q1 2010	Q1 2009	2009
Cash flow from operations before change in working capital	467	357	2,003
Cash flow from change in working capital	-14	-91	618
Cash flow from operations	453	266	2,621
Cash flow from ordinary investing activities	-179	-234	-821
Operating cash flow	274	32	1,800
Cash flow from restructuring	-25	-47	-190
Operating cash flow after restructuring	249	-15	1,610
Cash flow from other investing activities 1)	-52	-46	-268
Cash flow after other investing activities	197	-61	1,342
Dividends paid	-	-4	-148
Cash flow from other financing activities	-339	-282	-1,327
Change in liquid assets 2)	-142	-347	-133

1) Acquisitions -32 MSEK and other -20 MSEK in the first quarter 2010.

2) The currency effect in liquid assets was 0 MSEK (10) in the first quarter.

Key ratios

	Q1 2010	Q1 2009	2009
Operating margin, %	16.4	13.3	15.1
Profit margin before taxes, %	15.2	5.8	12.2
Return on shareholders' equity, %	12.1	14.3	10.3
Return on capital employed, %	8.3	10.9	7.8
Equity ratio, %	50.5	45.2	49.1
Net indebtedness	0.6	0.83	0.66
Interest coverage ratio	13.0	4.0	9.5
Average number of shares, thousands	264,347	264,208	264,284
Basic earnings per share excl. non-recurring items, SEK	1.43	1.14	5.31
Basic earnings per share, SEK	1.43	0.56	4.71
Cash flow per share, SEK	1.71	1.01	9.92
Cash flow per share before change in working capital, SEK	1.77	1.35	7.58
Share price, SEK	103	40	106

Order intake

MSEK	Q1 2009	Q2 2009	Q3 2009	Q4 2009	2009	Q1 2010
Hexagon MT	2,934	2,884	2,651	3,043	11,512	2,997
- Of which Geosystems	1,727	1,783	1,598	1,752	6,860	1,773
Metrology	1,013	936	867	1,143	3,959	1,095
Technology	194	165	186	148	693	129
Other operations	55	67	106	102	330	127
Group	2,989	2,951	2,757	3,145	11,842	3,124

Net sales

MSEK	Q1 2009	Q2 2009	Q3 2009	Q4 2009	2009	Q1 2010
Hexagon MT	2,942	2,983	2,556	2,977	11,458	2,796
- Of which Geosystems	1,671	1,806	1,559	1,775	6,811	1,680
Metrology	1,090	976	844	1,066	3,976	975
Technology	181	201	153	136	671	141
Other operations	96	85	73	99	353	112
Group	3,038	3,068	2,629	3,076	11,811	2,908

Operating earnings (EBIT1)

MSEK	Q1 2009	Q2 2009	Q3 2009	Q4 2009	2009	Q1 2010
Hexagon MT	433	489	391	592	1,905	501
Other operations	-15	-22	-22	-15	-74	-7
Group costs and eliminations	-13	-13	-10	-11	-47	-16
Group	405	454	359	566	1,784	478
Margin, %	13.3	14.8	13.7	18.4	15	16.4

Net sales

MSEK	Q1 2009	Q2 2009	Q3 2009	Q4 2009	2009	Q1 2010
EMEA	1,497	1,455	1,207	1,570	5,729	1,404
Americas	753	741	678	710	2,882	680
Asia	788	872	744	796	3,200	824
Group	3,038	3,068	2,629	3,076	11,811	2,908

Acquisitions and divestments

MSEK	Q1 2010 Acquisitions	Q1 2009 Acquisitions
Intangible fixed assets	1	12
Other fixed assets	19	5
Total fixed assets	20	17
Total current assets	-	7
Total assets	20	24
Shareholders' equity incl. minority interests	-	-
Total long-term liabilities	-7	-27
Total short-term liabilities	-5	1
Total liabilities	-12	-26
Total net assets	32	50
Total acquisition cost/ divestment income	-20	-17
Adjustment for cash and bank balances in acquired entities	-	-
Adjustment for non-paid part of acquisition cost/ divestment income incl. payment of items from prior year	-12	-33
Cash flow from acquisitions	-32	-50

Acquired entities have converted to IFRS at the acquisition date, which has entailed a change compared to the accounting standards previously applied. Due to the fact that results from operations and financial position in accordance with IFRS are not available, as well as the absence of materiality of the acquisitions, Hexagon does not present information as to how Hexagon's results would have appeared if the acquisitions were made as of the commencement of the reporting period. There were no divestments in the first quarter 2010 or in the first quarter 2009.

Parent company income statement

MSEK	31/3 2010	31/3 2009	31/12 2009
Net sales	18	8	31
Administration cost	-14	-14	-48
Operating earnings	4	-6	-17
Earnings from shares in Group companies	-	-	549
Interest income and expenses, net	67	-45	-230
Earnings after financial items	71	-51	302
Tax	-19	13	61
Net earnings	52	-38	363

Parent company balance sheet

MSEK	31/3 2010	31/3 2009	31/12 2009
Total fixed assets	17,439	17,750	17,433
Total current receivables	915	918	965
Cash and cash equivalents	158	135	171
Total current assets	1,073	1,053	1,136
Total assets	18,512	18,803	18,569
Total shareholders' equity	7,098	6,748	7,046
Total long-term liabilities	7,394	8,632	7,683
Total short-term liabilities	4,020	3,423	3,840
Total equity and liabilities	18,512	18,803	18,569

Definitions

FINANCIAL DEFINITIONS

Amortisation on excess values	Amortisation on the difference between carrying value of intangible fixed assets in acquired subsidiaries and the value Hexagon assigned those assets upon date of acquisition.
Capital employed	Total assets less non-interest bearing liabilities.
Capital turnover rate	Net sales divided by average capital employed.
Cash flow	Cash flow from operating activities, excluding non-recurring items, after change in working capital.
Cash flow per share	Cash flow from operating activities, excluding non-recurring items, after change in working capital, divided by average number of shares.
Earnings per share	Net earnings divided by average number of shares.
Equity ratio	Shareholders' equity including minority 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 and liquid assets divided by shareholders' equity excluding minority interests.
Operating earnings (EBIT1)	Operating earnings excluding capital gains on shares in group companies and other non-recurring items.
Operating margin	Operating earnings (EBIT1) as a percentage of net sales.
Profit margin before tax	Earnings after financial items as a percentage of net sales.
Return on capital employed	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	Twelve months to end of period net earnings excluding minority interests as a percentage of twelve months to end of period average shareholders' equity excluding minority interests last twelve months.
Shareholders' equity per share	Shareholders' equity excluding minority interests divided by the number of shares at year-end.
Share price	Last settled transaction on NASDAQ OMX Nordic Exchange 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.

Hexagon AB is a global measurement technologies company with strong market positions. Hexagon's mission is to develop and market leading technologies and services to measure in one, two or three dimensions, to position and update objects and to time processes. The group has about 7 500 employees in 39 countries and net sales of about 12 000 MSEK.

FINANCIAL REPORT DATES 2010

Hexagon gives financial information at the following occasions:

Interim Report Q2 2010 5 August 2010 Interim Report Q3 2010 28 October 2010 Year-End Report 2010 February 2011

FINANCIAL INFORMATION

Financial information is available in Swedish and English at the Hexagon website and can be ordered via phone +46 8 601 26 20 or e-mail ir@hexagon.se

TELEPHONE CONFERENCE

The interim report for the first quarter 2010 will be presented 5 May at 15:00 CET at a telephone conference. Please view instructions on how to participate at Hexagon's website.

CONTACT

Mattias Stenberg, IR Manager, Hexagon AB, +46 8 601 26 27, ir@hexagon.se

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 5 May 2010 at 12:00 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.

This Interim Report has not been audited by the company's auditors.

Hexagon AB (publ), P.O. Box 3692, SE- 103 59 Stockholm, Sweden Fax: +46 8 601 26 21 Phone: +46 8 601 26 20 Registration number: 556190-4771 Registered office: Stockholm, Sweden www.hexagon.se