Annual Report • Feb 6, 2017
Annual Report
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| MEUR | Q4 2016 | Q4 2015 | Δ% | 2016 | 2015 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 849.5 | 815.7 | 1) 2 |
3,149.2 | 3,043.8 | 1) 2 |
| Gross earnings | 513.8 | 483.5 | 6 | 1,902.0 | 1,821.9 | 4 |
| Gross margin, % | 60.5 | 59.3 | 1.2 | 60.4 | 59.9 | 0.5 |
| Operating earnings (EBITDA) 2) | 273.7 | 264.9 | 3 | 970.0 | 912.3 | 6 |
| EBITDA margin, % | 32.2 | 32.5 | -0.3 | 30.8 | 30.0 | 0.8 |
| Operating earnings (EBIT1) 2) | 208.7 | 197.8 | 6 | 736.1 | 692.7 | 6 |
| Operating margin, % | 24.6 | 24.2 | 0.4 | 23.4 | 22.8 | 0.6 |
| Earnings before taxes excluding | ||||||
| non-recurring items | 202.6 | 192.0 | 6 | 714.3 | 666.2 | 7 |
| Non-recurring items 3) | - | - | e.t. | - | -36.6 | e.t. |
| Earnings before taxes | 202.6 | 192.0 | 6 | 714.3 | 629.6 13 | |
| Net earnings | 164.1 | 155.5 | 6 | 578.6 | 505.1 15 | |
| Net earnings, excl. non-recurring | ||||||
| items | 164.1 | 155.5 | 6 | 578.6 | 534.9 | 8 |
| Earnings per share, EUR | 0.45 | 0.43 | 5 | 1.59 | 1.39 14 | |
| Earnings per share, excl. | ||||||
| non-recurring items, EUR | 0.45 | 0.43 | 5 | 1.59 | 1.47 | 8 |
1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2) For definition, see page 20.
3) Non-recurring items in 2015 relate to the implementation of a savings programme.
"We ended the year with a quarter recording 2 per cent organic growth and a record operating margin of 25 per cent, which we attribute to a robust profit improvement from all divisions apart from PPM. Geographically, China recorded 12 per cent organic growth with strong demand across all segments. As in the previous quarter, performance in Manufacturing Intelligence was strong, especially in the automotive and electronics segments. PPM continued to face challenges in the oil and gas market and we are taking actions to enable future growth and reduce costs. In addition, we are launching a company-wide cost savings programme in Q1 2017 towards further improve profitability. Closing the year with both a strong cash flow and balance sheet enables us to take another step in our smart connected factory vision through the acquisition of MSC. We are well prepared to continue digitalizing the industries we serve, enabling customers to advance in key areas like connectivity, intelligence and visualization."
– Ola Rollén, President and CEO, Hexagon AB
Net sales increased by 4 per cent to 849.5 MEUR (815.7). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 2 per cent. Regionally, organic growth was 5 per cent in Asia, 1 per cent in Americas and flat in EMEA. Growth rates in Asia benefited from strong demand in China across all businesses within Hexagon but were hampered by decline in South Korea due to the weak shipyard market. Organic growth in China was 12 per cent in the quarter.
In Americas, North America had positive development, but strong demand in the manufacturing industry was offset by a weak oil and gas and public infrastructure market. The downturn in South America is bottoming out and the region recorded slight negative growth in the quarter. Excluding Brazil, organic growth in South America was 16 per cent. In EMEA, Western Europe recorded solid organic growth, especially in the UK, Italy, France and the Nordic countries. However, the Middle East recorded negative organic growth due to the weak oil-related economy and Eastern Europe declined after several sequential quarters of strong growth.
Operating earnings (EBIT1) grew by 6 per cent to 208.7 MEUR (197.8), which corresponds to an operating margin of 24.6 per cent (24.2). The operating margin benefited from organic growth, new high-value applications, acquisitions and cost control but was adversely impacted by unfavourable business mix. Operating earnings (EBIT1) were negatively impacted by exchange rate movements of -0.8 MEUR. Earnings before taxes amounted to 202.6 MEUR (192.0) and were negatively impacted by exchange rate movements of -0.8 MEUR.
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | Q4 2016 | Q4 2015 Δ% | 1) | Q4 2016 | Q4 2015 | Δ% |
| Geospatial Enterprise Solutions | 420.1 | 395.1 | 2 | 101.5 | 88.8 | 14 |
| Industrial Enterprise Solutions | 429.4 | 420.6 | 1 | 110.2 | 115.2 | -4 |
| Net sales | 849.5 | 815.7 | 2 | |||
| Group cost and eliminations | -3.0 | -6.2 | 52 | |||
| Operating earnings (EBIT1) | 208.7 | 197.8 | 6 | |||
| Operating margin, % | 24.6 | 24.2 | 0.4 | |||
| Interest income and expenses, net | -6.1 | -5.8 | -5 | |||
| Earnings before taxes | 202.6 | 192.0 | 6 | |||
| Taxes | -38.5 | -36.5 | -5 | |||
| Net earnings | 164.1 | 155.5 | 6 | |||
| 1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth. |
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Strengthened | 0% | Negative | Negative |
| USD | Strengthened | 1% | Positive | Positive |
| CNY | Weakened | -5% | Positive | Negative |
| EBIT1, MEUR | -0.8 |
1) Compared to Q4 2015.
| Net sales | |
|---|---|
| 2015, MEUR | 815.7 |
| Structure, % | 3 |
| Currency, % | -1 |
| Organic growth, % | 2 |
| Total, % | 4 |
| 2016, MEUR | 849.5 |
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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q4 2015 | 815.7 | |||||||
| China (14% of sales) | ||||||||
| North America (32% of sales) | ||||||||
| Western Europe (32% of sales) | ||||||||
| Asia excl. China (12% of sales) | >8% | |||||||
| EMEA excl. Western Europe (7% of sales) |
0-8% | |||||||
| South America (3% of sales) | Negative | |||||||
| Q4 2016 | 849.5 |
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 Positioning Intelligence.
Geospatial Enterprise Solutions (GES) sales amounted to 420.1 MEUR (395.1). Organic growth was 2 per cent. Regionally, organic growth was 13 per cent in Asia, 1 per cent in EMEA and -2 per cent in Americas.
GES benefited from continued strong demand in Asia. China grew at a double digit rate, driven by strong demand in infrastructure and construction as well as within the positioning market. Australia also performed well, especially within mining and surveying. In EMEA, Western Europe had solid development with strong contribution from the UK, Italy and Switzerland. However, the Middle East continued to decline due to the weak oil-related economy and Eastern Europe recorded negative growth after several quarters of strong performance. In Americas, North America recorded slight negative organic growth. However, South America improved from previous quarters and reported positive organic growth.
Regarding the business units within GES, Geosystems continued to see strong contribution from infrastructure and construction related business in China, recording 1 per cent organic growth. The private construction-related business continued to show solid performance in North America and Western Europe, however the public infrastructure market in North America continued to be weak. Safety & Infrastructure reported 2 per cent organic growth and was positively impacted by increased demand for public safety and smart city solutions in the Middle East, adversly impacted by poor order conversion in North America though. Positioning Intelligence reported 12 per cent organic growth, an improvement from the previous quarters, driven by continued strong performance in the GNSS business.
Operating earnings (EBIT1) increased by 14 per cent to 101.5 MEUR (88.8), which corresponds to an operating margin of 24.2 per cent (22.5). The operating margin was positively impacted by new high-value applications, increased software mix and good cost control.
| MEUR | Q4 2016 | Q4 2015 | Δ% | 2016 | 2015 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 420.1 | 395.1 | 1) 2 |
1,579.3 | 1,506.7 | 1) 3 |
| Operating earnings (EBIT1) | 101.5 | 88.8 | 14 | 354.8 | 308.3 | 15 |
| Operating margin,% | 24.2 | 22.5 | 1.7 | 22.5 | 20.5 | 2.0 |
| Average number of employees | 7,934 | 7,857 | 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 (computeraided 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 Manufacturing Intelligence and Process, Power & Marine (PPM).
Industrial Enterprise Solutions (IES) sales amounted to 429.4 MEUR (420.6). Organic growth was 1 per cent. Regionally, organic growth was 4 per cent in Americas, 1 per cent in Asia and -1 per cent in EMEA.
IES benefited from positive development in Americas driven by strong demand in the manufacturing industry in North America but was hampered by negative development in the oil and gas sector. In EMEA, markets such as the UK, Italy and the Middle East recorded solid growth. However, Eastern Europe declined by double digit in the quarter after several sequential quarters of good growth. Asia benefitted from strong demand in China related to manufacturing and power and energy, but was hampered by decline in South Korea related to the weak shipyard market.
Regarding the business units within IES, Manufacturing Intelligence recorded 5 per cent organic growth, mainly driven by strong demand from the automotive industry as well as new customer wins within the electronics sector. PPM continued to face challenging market conditions and recorded -8 per cent organic growth due to reduced activities in the the overall oil and gas sector. Growth was however solid in China driven by recent customer wins. Actions are being taken to enable future growth.
Operating earnings (EBIT1) decreased by -4 per cent to 110.2 MEUR (115.2), which corresponds to an operating margin of 25.7 per cent (27.4). The operating margin was negatively impacted by unfavourable business mix due to the decline in PPM.
| MEUR | Q4 2016 | Q4 2015 | Δ% | 2016 | 2015 | Δ% |
|---|---|---|---|---|---|---|
| Net sales | 429.4 | 420.6 | 1) 1 |
1,569.9 | 1,537.1 | 1) 1 |
| Operating earnings (EBIT1) | 110.2 | 115.2 | -4 | 399.1 | 409.6 | -3 |
| Operating margin,% | 25.7 | 27.4 | -1.7 | 25.4 | 26.6 | -1.2 |
| Average number of employees | 8,454 | 7,967 | 6 |
1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
* Q4 2016 numbers ** Full-year 2015 numbers
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | 2016 | 2015 Δ % | 1) | 2016 | 2015 | Δ% |
| Geospatial Enterprise Solutions | 1,579.3 | 1,506.7 | 3 | 354.8 | 308.3 | 15 |
| Industrial Enterprise Solutions | 1,569.9 | 1,537.1 | 1 | 399.1 | 409.6 | -3 |
| Net sales | 3,149.2 | 3,043.8 | 2 | |||
| Group cost and eliminations | -17.8 | -25.2 | 29 | |||
| Operating earnings (EBIT1) | 736.1 | 692.7 | 6 | |||
| Operating margin, % | 23.4 | 22.8 | 0.6 | |||
| Interest income and expenses, net | -21.8 | -26.5 | 18 | |||
| Earnings before non-recurring items | 714.3 | 666.2 | 7 | |||
| Non-recurring items 2) | - | -36.6 | n.a. | |||
| Earnings before taxes | 714.3 | 629.6 | 13 | |||
| Taxes | -135.7 | -124.5 | -9 | |||
| Net earnings | 578.6 | 505.1 | 15 |
1) Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2) Non-recurring items during 2015 relate to the implementation of a savings programme.
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Weakened | -2% | Negative | Positive |
| USD | Strengthened | 0% | Positive | Positive |
| CNY | Weakened | -5% | Positive | Negative |
| EBIT1, MEUR | -17.0 |
1) Compared to 2015.
Net sales amounted to 3,149.2 MEUR (3,043.8) in 2016. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 2 per cent.
Operating earnings (EBIT1) amounted to 736.1 MEUR (692.7), which corresponds to an operating margin of 23.4 per cent (22.8). Operating earnings (EBIT1) were negatively affected by exchange rate movements of -17.0 MEUR.
During 2016, Hexagon posted no nonrecurring items. During 2015 non-recurring items amounted to -36.6 MEUR.
The financial net amounted to -21.8 MEUR (-26.5) in 2016.
Earnings before taxes, excluding nonrecurring items, amounted to 714.3 MEUR (666.2). Earnings before taxes, including these items, amounted to 714.3 MEUR (629.6). Earnings before taxes were negatively affected by exchange rate movements of -17.0 MEUR.
Net earnings, excluding non-recurring items, amounted to 578.6 MEUR (534.9) or 1.59 EUR (1.47) per share. Net earnings, including these items, amounted to 578.6 MEUR (505.1) or 1.59 EUR (1.39) per share.
Small, lightweight and user-friendly, the BLK360 is a revolutionary addition to Hexagon's reality capture sensor portfolio. It presents exciting potential for simplified scanning workflows for the AEC (Architect, Engineering, Construction) market and many other industries, enabling Hexagon to meet the 3D reality capture needs of markets in and outside of surveying.
Capital employed increased to 6,489.1 MEUR (6,158.6). Return on average capital employed for the last twelve months was 11.9 per cent (11.6). Return on average shareholders' equity for the last twelve months was 13.7 per cent (13.0). The capital turnover rate was 0.5 times (0.5).
Total shareholders' equity increased to 4,590.8 MEUR (4,102.3). The equity ratio was 58 per cent (55). Hexagon's total assets increased to 7,914.1 MEUR (7,432.1). The increase in total assets is driven primarily by acquisitions and currency movements.
Following a refinancing in 2014, 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 Q3 2021
2) A Swedish Medium Term Note Programme (MTN) established during 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 31 December 2016, cash and unutilised credit limits totalled 1,595.3 MEUR (1,242.5). Hexagon's net debt was 1,564.8 MEUR (1,743.6). The net indebtedness was 0.30 times (0.38). Interest coverage ratio was 27.9 times (20.3).
During the fourth quarter, cash flow from operations before changes in working capital amounted to 233.5 MEUR (219.6), corresponding to 0.65 EUR (0.61) per share. Cash flow from operations in the fourth quarter amounted to 261.6 MEUR (253.0), corresponding to 0.73 EUR (0.70) per share. Operating cash flow in the
fourth quarter, including non-recurring items, amounted to 192.0 MEUR (193.3).
For the full year, cash flow from operations amounted to 782.1 MEUR (722.6),
corresponding to 2.17 EUR (2.01) per share. The operating cash flow, including nonrecurring items, amounted to 516.6 MEUR (473.7).
Hexagon's net investments, excluding acquisitions and divestitures, amounted to -68.3 MEUR (-56.8) in the fourth quarter and -257.6 MEUR (-230.3) in the full year.
Depreciation, amortisation and impairment amounted to -65.0 MEUR (-67.1) in the fourth quarter and -233.9 MEUR (-219.6) during the full year.
The Group's tax expense for 2016 totalled -135.7 MEUR (-124.5).
The reported tax rate was 19.0 per cent (19.0) for the quarter and 19.0 per cent (19.8) for the full year. The tax rate, excluding non-recurring items, was 19.0 (19.0) per cent for the quarter and 19.0 (19.7) for the full year.
The average number of employees during the full year was 16,460 (15,891). The number of employees at the end of the quarter was 16,592 (16,132). The increase was primarily driven by acquisitions.
Earnings per share for the fourth quarter amounted to 0.45 EUR (0.43). Earnings per share, excluding non-recurring items, for the full year amounted to 1.59 EUR (1.47). Earnings per share, including non-recurring items, for the full year amounted to 1.59 EUR (1.39).
On 31 December 2016, equity per share was 12.70 EUR (11.36) and the share price was 325.50 SEK (314.80).
Hexagon's share capital amounts to 79,980,283 EUR, represented by 360,443,142 shares, of which 15,750,000 are of series A with 10 votes each and 344,693,142 are of series B with one vote each.
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 and may be exercised during 1 June 2018 - 31 December 2019.
Associated companies affected Hexagon's earnings during the full year by 0.4 MEUR (0.1).
The parent company's earnings before taxes for the full year was 38.4 MEUR (2,955.1). The equity was 4,688.7 MEUR (4,805.5). The equity ratio of the parent company was 58 per cent (61). Liquid funds including unutilised credit limits were 1,307.2 MEUR (1,023.3).
Hexagon hosted a Capital Markets Day on 1 December 2016 where Hexagon launched a new five-year financial plan. The target is to reach sales of 4.6-5.1 billion EUR and an operating margin of 27-28 per cent by 2021. Read more about the new financial plan on hexagon.com.
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 2015. New and amended standards applicable from 2016 have not had any significant impact on the financial statements.
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 offset 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 2015 Annual Report.
No significant related party transactions have been incurred during 2016.
The AGM will be held on 2 May 2017 at 17:00 CET at City Conference Center Stockholm (Norra Latin), Drottninggatan 71 B, Stockholm Sweden. The Annual Report for 2016 will be available from 6 April 2017 on the company's web page as well as at the head office.
To attend the AGM shareholders must be registered in the share register maintained by Euroclear on 25 April 2017. Notification of attendance should be made to Hexagon's head office no later than on 25 April. To participate in the AGM, shareholders with nominee-registered holdings should temporarily re-register their shares in their own names through the agency of their nominees so that they are recorded in the share register in good time before 25 April.
The Hexagon Board of Directors proposes a dividend of 0.48 EUR per share (0.43). The proposed record date will be 4 May and expected date for settlement is 11 May.
At Hexagon's Capital Markets Day (CMD) in December 2016 a new financial plan was launched to reach a sales target of 4.6-5.1 billion EUR and an EBIT margin of 27-28 per cent by 2021. The profitability will be improved through new applications, richer software mix and acquisitions.
Also, as discussed during the CMD, Hexagon will accelerate its solution-centric strategy by increasing R&D spend and investments in sales resources and reducing non-accretive operating expenses. Hence, Hexagon will launch a company-wide cost savings programme in Q1 2017 with a focus on reducing administration costs.
The programme will affect approximately 480 employees and is expected to drive cash cost savings of approximately 24 MEUR in 2017 and 43 MEUR per annum as of 2018 when fully implemented.
The cash flow impact of the programme amounts to approximately -34 MEUR. The restructuring costs will be reported as nonrecurring items (NRI) in Q1 2017.
On 2 February Hexagon announced that it entered into an agreement to acquire MSC Software (MSC). MSC is a leading provider of CAE (simulation) software. MSC is headquartered in Newport Beach, CA, United States and has over 1,200 professionals in 20 countries.
Purchase price of 834 MUSD on a cash and debt free basis
In 2016 MSC generated proforma sales of 230 MUSD, with strong profitability and a high percentage of recurring revenue
The acquisition will further strengthen Hexagon's smart connected factory strategy to deliver enterprise solutions within manufacturing verticals
The transaction will be fully financed via bank facilities and Hexagon's net debt to EBITDA target of 2.5 will not be exceeded
Completion of the transaction (closing) is subject to regulatory approvals and other
customary conditions which is expected in April Non-cash PPA adjustments of approximately 10 MEUR related to impairment of overlapping technologies and approximately 20-30 MEUR related to a revenue recognition adjustment of deferred revenue (haircut) will impact the income statement during 2017
Cash transaction costs will amount to approximately 2 MEUR
MSC will be accretive to Hexagon's earnings as of closing
The Board of Directors and the President and CEO declare that this year-end 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, 6 February 2017 Hexagon AB (publ)
Melker Schörling Chairman of the Board
Ulrika Francke Gun Nilsson Board Member Board Member
Jill Smith Ola Rollén
Board Member President and CEO Board Member
This Year-End Report has not been reviewed by the Company's auditors.
| MEUR | Q4 2016 | Q4 2015 | 2016 | 2015 |
|---|---|---|---|---|
| Net sales | 849.5 | 815.7 | 3,149.2 | 3,043.8 |
| Cost of goods sold | -335.7 | -332.2 | -1,247.2 | -1,221.9 |
| Gross earnings | 513.8 | 483.5 | 1,902.0 | 1,821.9 |
| Sales expenses | -149.4 | -142.4 | -573.3 | -561.7 |
| Administration expenses | -75.5 | -80.2 | -269.1 | -292.8 |
| Research and development expenses | -84.1 | -75.5 | -333.1 | -313.1 |
| Earnings from shares in associated companies | 0.1 | 0.0 | 0.4 | 0.1 |
| Capital gain (+) / loss (-) from sale of shares in Group companies | 0.7 | - | 0.7 | - |
| Other income and expenses, net | 3.1 | 12.4 | 8.5 | 1.7 |
| Operating earnings 1) | 208.7 | 197.8 | 736.1 | 656.1 |
| Financial income | 1.1 | 1.3 | 4.8 | 6.1 |
| Financial expenses | -7.2 | -7.1 | -26.6 | -32.6 |
| Earnings before taxes | 202.6 | 192.0 | 714.3 | 629.6 |
| Taxes | -38.5 | -36.5 | -135.7 | -124.5 |
| Net earnings | 164.1 | 155.5 | 578.6 | 505.1 |
| Attributable to: | ||||
| Parent company shareholders | 163.1 | 154.6 | 573.3 | 499.9 |
| Non-controlling interest | 1.0 | 0.9 | 5.3 | 5.2 |
| 1) of which non-recurring items | - | - | - | -36.6 |
| Earnings include depreciation, amortisation and impairments of | -65.0 | -67.1 | -233.9 | -219.6 |
| - of which amortisation of surplus values | -9.0 | -8.6 | -35.2 | -32.3 |
| Basic earnings per share, EUR | 0.45 | 0.43 | 1.59 | 1.39 |
| Earnings per share after dilution, EUR | 0.45 | 0.43 | 1.59 | 1.39 |
| Total shareholder's equity per share, EUR | 12.70 | 11.36 | 12.70 | 11.36 |
| Closing number of shares, thousands | 360,443 | 360,337 | 360,443 | 360,337 |
| Average number of shares, thousands | 360,443 | 360,114 | 360,433 | 359,387 |
| Average number of shares after dilution, thousands | 360,649 | 360,659 | 360,879 | 359,817 |
| MEUR | Q4 2016 | Q4 2015 | 2016 | 2015 |
|---|---|---|---|---|
| Net earnings | 164.1 | 155.5 | 578.6 | 505.1 |
| Other comprehensive income | ||||
| Items that will not be reclassified to income statement | ||||
| Remeasurement of pensions | 25.4 | -32.0 | -9.4 | -36.8 |
| Taxes on items that will not be reclassified to income statement | -1.8 | 4.6 | 1.8 | 5.1 |
| Total items that will not be reclassified to income statement, net of taxes |
23.6 | -27.4 | -7.6 | -31.7 |
| Items that may be reclassified subsequently to income statement | ||||
| Exchange rate differences | 182.6 | 85.1 | 69.8 | 256.2 |
| Effect of hedging of net investments in foreign operations | 0.1 | 0.0 | -0.1 | -12.7 |
| Taxes on items that may be reclassified subsequently to income statement |
0.3 | -1.5 | 3.9 | -9.5 |
| Total items that may be reclassified subsequently to income statement, net of taxes |
183.0 | 83.6 | 73.6 | 234.0 |
| Other comprehensive income, net of taxes | 206.6 | 56.2 | 66.0 | 202.3 |
| Total comprehensive income for the period | 370.7 | 211.7 | 644.6 | 707.4 |
| Attributable to: | ||||
| Parent company shareholders | 369.4 | 210.8 | 639.5 | 701.5 |
| Non-controlling interest | 1.3 | 0.9 | 5.1 | 5.9 |
| MEUR | 31/12 2016 | 31/12 2015 |
|---|---|---|
| Intangible fixed assets | 5,870.8 | 5,567.1 |
| Tangible fixed assets | 294.8 | 287.9 |
| Financial fixed assets | 21.1 | 25.0 |
| Deferred tax assets | 55.0 | 59.4 |
| Total fixed assets | 6,241.7 | 5,939.4 |
| Inventories | 426.7 | 414.9 |
| Accounts receivable | 788.0 | 688.3 |
| Other receivables | 71.0 | 62.8 |
| Prepaid expenses and accrued income | 102.7 | 101.2 |
| Total current receivables | 961.7 | 852.3 |
| Cash and cash equivalents | 284.0 | 225.5 |
| Total current assets | 1,672.4 | 1,492.7 |
| Total assets | 7,914.1 | 7,432.1 |
| Equity attributable to parent company shareholders | 4,576.8 | 4,092.3 |
| Equity attributable to non-controlling interest | 14.0 | 10.0 |
| Total shareholders' equity | 4,590.8 | 4,102.3 |
| Interest bearing liabilities | 1,476.2 | 1,782.8 |
| Other liabilities | 12.3 | 3.9 |
| Pension liabilities | 132.0 | 124.0 |
| Deferred tax liabilities | 472.7 | 416.8 |
| Other provisions | 69.4 | 57.8 |
| Total long-term liabilities | 2,162.6 | 2,385.3 |
| Interest bearing liabilities | 237.2 | 57.5 |
| Accounts payable | 175.7 | 162.7 |
| Other liabilities | 134.9 | 123.4 |
| Other provisions | 73.6 | 92.8 |
| Deferred income | 254.3 | 235.7 |
| Accrued expenses | 285.0 | 272.4 |
| Total short-term liabilities | 1,160.7 | 944.5 |
| Total equity and liabilities | 7,914.1 | 7,432.1 |
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.
| MEUR | 2016 | 2015 |
|---|---|---|
| Opening shareholders' equity | 4,102.3 | 3,470.2 |
| Total comprehensive income for the period 1) | 644.6 | 707.4 |
| New share issues, warrants exercised - net of issuance costs | - | 38.9 |
| Dividend | -156.1 | -133.1 |
| Warrants issued | - | 18.9 |
| Closing shareholders' equity 2) | 4,590.8 | 4,102.3 |
| 1) Of which: Parent company shareholders Non-controlling interest |
639.5 5.1 |
701.5 5.9 |
| 2) Of which: Parent company shareholders Non-controlling interest |
4,576.8 14.0 |
4,092.3 10.0 |
.
| 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, warrants 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, warrants 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, 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 1) | 15,750,000 | 344,693,142 | 360,443,142 |
1) As per 31 December 2016, there were in total 360,443,142 shares in the Company, of which 15,750,000 are of series A with ten votes each and 344,693,142 are of series B with one vote each. Hexagon AB holds no treasury shares.
| MEUR | Q4 2016 | Q4 2015 | 2016 | 2015 |
|---|---|---|---|---|
| Cash flow from operations before change in working capital | ||||
| excluding taxes and interest | 260.2 | 248.2 | 941.9 | 890.4 |
| Taxes paid | -21.5 | -23.5 | -92.1 | -120.0 |
| Interest received and paid, net | -5.2 | -5.1 | -17.7 | -20.5 |
| Cash flow from operations before change in working capital | 233.5 | 219.6 | 832.1 | 749.9 |
| Cash flow from change in working capital | 28.1 | 33.4 | -50.0 | -27.3 |
| Cash flow from operations | 261.6 | 253.0 | 782.1 | 722.6 |
| Investments tangible assets, net | -13.1 | -5.2 | -50.9 | -35.7 |
| Investments intangible assets | -55.2 | -51.6 | -206.7 | -194.6 |
| Operating cash flow | 193.3 | 196.2 | 524.5 | 492.3 |
| Non-recurring cash flow 1) | -1.3 | -2.9 | -7.9 | -18.6 |
| Operating cash flow after non-recurring items | 192.0 | 193.3 | 516.6 | 473.7 |
| Cash flow from other investing activities 2) | -4.8 | -145.3 | -172.0 | -193.9 |
| Cash flow after other investing activities | 187.2 | 48.0 | 344.6 | 279.8 |
| Dividends paid | -0.9 | -0.7 | -156.1 | -133.1 |
| New share issues, warrants exercised - net of issuance costs | - | 4.6 | - | 38.9 |
| Warrants issued | - | 5.1 | - | 18.9 |
| Cash flow from other financing activities | -112.5 | -56.5 | -130.5 | -205.9 |
| Cash flow for the period | 73.8 | 0.5 | 58.0 | -1.4 |
| Cash and cash equivalents, beginning of period Effect of translation differences on cash and cash |
204.8 | 221.5 | 225.5 | 228.6 |
| equivalents | 5.4 | 3.5 | 0.5 | -1.7 |
| Cash flow for the period | 73.8 | 0.5 | 58.0 | -1.4 |
| Cash and cash equivalents, end of period | 284.0 | 225.5 | 284.0 | 225.5 |
1) Non-recurring cash flow consists of restructuring cost.
2) Acquisitions and divestments in the full year 2016 totalled -170.6 MEUR (-194.3) and other was -1.4 MEUR (0.4).
| Q4 2016 | Q4 2015 | 2016 | 2015 | |
|---|---|---|---|---|
| Operating margin, % | 24.6 | 24.2 | 23.4 | 22.8 |
| Profit margin before taxes, % | 23.8 | 23.5 | 22.7 | 20.7 |
| Return on shareholders' equity, 12 month average, % | 13.7 | 13.0 | 13.7 | 13.0 |
| Return on capital employed, 12 month average, % | 11.9 | 11.6 | 11.9 | 11.6 |
| Equity ratio, % | 58.0 | 55.2 | 58.0 | 55.2 |
| Net indebtedness | 0.30 | 0.38 | 0.30 | 0.38 |
| Interest coverage ratio | 29.1 | 27.3 | 27.9 | 20.3 |
| Average number of shares, thousands | 360,443 | 360,114 | 360,433 | 359,387 |
| Basic earnings per share excl. non-recurring items, EUR | 0.45 | 0.43 | 1.59 | 1.47 |
| Basic earnings per share, EUR | 0.45 | 0.43 | 1.59 | 1.39 |
| Cash flow per share, EUR | 0.73 | 0.70 | 2.17 | 2.01 |
| Cash flow per share before change in working cap, EUR | 0.65 | 0.61 | 2.31 | 2.09 |
| Share price, SEK | 325.50 | 314.80 | 325.50 | 314.80 |
| Share price, translated to EUR | 34.07 | 34.26 | 34.07 | 34.26 |
| MEUR | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 420.1 | 390.6 | 399.2 | 369.4 | 1,579.3 | 395.1 | 371.4 | 385.6 | 354.6 | 1,506.7 |
| Industrial Enterprise Solutions | 429.4 | 389.1 | 396.6 | 354.8 | 1,569.9 | 420.6 | 370.9 | 395.1 | 350.5 | 1,537.1 |
| Group | 849.5 | 779.7 | 795.8 | 724.2 | 3,149.2 | 815.7 | 742.3 | 780.7 | 705.1 | 3,043.8 |
| MEUR | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 101.5 | 88.7 | 88.9 | 75.7 | 354.8 | 88.8 | 78.6 | 74.6 | 66.3 | 308.3 |
| Industrial Enterprise Solutions | 110.2 | 96.3 | 103.0 | 89.6 | 399.1 | 115.2 | 95.2 | 109.5 | 89.7 | 409.6 |
| Group costs | -3.0 | -5.2 | -4.8 | -4.8 | -17.8 | -6.2 | -6.0 | -6.8 | -6.2 | -25.2 |
| Group | 208.7 | 179.8 | 187.1 | 160.5 | 736.1 | 197.8 | 167.8 | 177.3 | 149.8 | 692.7 |
| Margin, % | 24.6 | 23.1 | 23.5 | 22.2 | 23.4 | 24.2 | 22.6 | 22.7 | 21.2 | 22.8 |
| MEUR | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 326.5 | 292.2 | 304.5 | 270.5 | 1,193.7 | 320.8 | 273.0 | 291.9 | 261.6 | 1,147.2 |
| Americas | 294.9 | 264.1 | 270.0 | 247.5 | 1,076.5 | 278.6 | 257.7 | 270.5 | 242.3 | 1,049.2 |
| Asia | 228.1 | 223.4 | 221.3 | 206.2 | 879.0 | 216.3 | 211.6 | 218.3 | 201.2 | 847.4 |
| Group | 849.5 | 779.7 | 795.8 | 724.2 | 3,149.2 | 815.7 | 742.3 | 780.7 | 705.1 | 3,043.8 |
| Average | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| SEK/EUR | 0.1025 | 0.1051 | 0.1078 | 0.1072 | 0.1056 | 0.1075 | 0.1060 | 0.1075 | 0.1066 | 0.1069 |
| USD/EUR | 0.9267 | 0.8960 | 0.8855 | 0.9069 | 0.9040 | 0.9136 | 0.8988 | 0.9056 | 0.8888 | 0.9015 |
| CNY/EUR | 0.1356 | 0.1344 | 0.1355 | 0.1386 | 0.1360 | 0.1430 | 0.1426 | 0.1460 | 0.1425 | 0.1435 |
| CHF/EUR | 0.9260 | 0.9183 | 0.9123 | 0.9122 | 0.9174 | 0.9219 | 0.9322 | 0.9608 | 0.9337 | 0.9369 |
| Closing | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | 2015 |
| SEK/EUR USD/EUR |
0.1047 0.9487 |
0.1039 0.8960 |
0.1061 0.9007 |
0.1084 0.8783 |
0.1047 0.9487 |
0.1088 0.9185 |
0.1063 0.8926 |
0.1085 0.8937 |
0.1076 0.9295 |
0.1088 0.9185 |
| CNY/EUR | 0.1366 | 0.1343 | 0.1356 | 0.1360 | 0.1366 | 0.1416 | 0.1404 | 0.1442 | 0.1499 | 0.1416 |
| MEUR | 2016 | 2015 |
|---|---|---|
| Fair value of acquired assets and assumed liabilities | ||
| Intangible fixed assets | 52.2 | 69.2 |
| Other fixed assets | 7.2 | 1.9 |
| Total fixed assets | 59.4 | 71.1 |
| Total current assets | 42.3 | 14.7 |
| Total assets | 101.7 | 85.8 |
| Total long-term liabilities | 13.6 | 1.9 |
| Total current liabilities | 27.1 | 9.1 |
| Total liabilities | 40.7 | 11.0 |
| Fair value of acquired assets and assumed liabilities, net | 61.0 | 74.8 |
| Shares in associated companies | -1.9 | - |
| Goodwill | 149.1 | 170.6 |
| Total purchase consideration transferred | 208.2 | 245.4 |
| Less cash and cash equivalents in acquired companies | -8.9 | -3.9 |
| Adjustment for non-paid consideration and considerations paid for prior years' acquisitions |
-15.8 | -47.2 |
| Cash flow from acquisition of companies/businesses | 183.5 | 194.3 |
During 2016, Hexagon acquired the following companies:
GPS Solutions Inc., an American based software company within high precision positioning
Paul MacArthur Limited (SCCS), a British supplier of Leica Geosystems surveying equipment
SigmaSpace Corporation, an American 3D mapping company
The acquisitions are individually assessed as immaterial from a group perspective why only aggregated information is 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 SCCS, SigmaSpace Corporation, FTI, AICON 3D Systems, GeoRadar and Multivista is presented in the acquisition analysis on page 16 and 17.
As of 13 January 2016, after customary regulatory approvals were received, Hexagon became the owner of SCCS, one of the UK's leading suppliers of surveying equipment to the engineering and infrastructure market and a Leica Geosystems distributor. SCCS offer customers rent, purchase and service options.
As the UK continues to fund major infrastructure projects with more stringent processes related to Building Information Modelling (BIM), collaboration between the construction and software sectors becomes increasingly vital. SCCS's local market expertise and relationships coupled with Hexagon's digital technologies that enable new, data-enabled ways of working will strengthen adoption of Hexagon's solutions in this area.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognized. Synergies have primarily been identified to arise by increasing Hexagon's total market in excess of SCCS's own market.
From the date of acquisition, SCCS has contributed 19.2 MEUR of net sales during 2016. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 19.2 MEUR.
As of 18 February 2016, after customary regulatory approvals were received, Hexagon became the owner of SigmaSpace, a provider of next-generation technologies used to rapidly deliver high-quality 3D maps of the Earth. SigmaSpace offers a unique LiDAR technology – Single Photon LiDAR (SPL) – which enables 3D data collection at much higher speed and resolution than conventional systems.
Today, accurate and geo-referenced 3D visualisations have become an absolute necessity in real-world situations due to the insight they can provide – from urban planning and emergency services to aviation safety and disaster response. SigmaSpace has been enabling private and government clients, including NASA and the U.S. Department of Defense, respond to the growing need for this kind of data.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognised. Synergies have primarily been identified to arise by i) combining Geosystems and SigmaSpace's technologies and solutions ii) increasing Hexagon's total market in excess of SigmaSpace's own market.
The acquired intangible assets, were assigned to trademarks that are not subject to amortization and capitalized development expenses with useful lives of 10-12 years. The intangible assets have been valued using a discounted cash flow method.
From the date of acquisition, SigmaSpace has contributed 11.7 MEUR of net sales during 2016. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 13.9 MEUR.
On 23 March 2016, after customary regulatory approvals were received, Hexagon acquired FTI, a provider of manufacturing software solutions designed to reduce the development time and material costs of sheet metal components. FTI serves original equipment manufacturers (OEMs) and suppliers in the automotive, aerospace, electronics, and appliance industries with sheet metal design, simulation, feasibility and costing solutions.
Sheet metal is used extensively in the production of car bodies, aircraft, electronics enclosures and many other applications. Rapid, cost-efficient design and manufacturing of sheet metal components is key to addressing the rising challenges of manufacturing efficiencies. FTI's technology portfolio coupled with its engineering services and years of expertise in the sheet metal industry, enables customers to validate designs before they go into production and immediately reduce labour and material costs.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognised. Synergies have primarily been identified to arise by i) combining Manufacturing Intelligence's and FTI's technologies and solutions ii) increasing Hexagon's total market in excess of FTI's own market.
The acquired intangible assets, were assigned to trademarks that are not subject to amortization, capitalized development expenses and customer relationships with useful lives of 12-15 years. The intangible assets have been valued using a discounted cash flow method.
From the date of acquisition, FTI has contributed 6.0 MEUR of net sales during 2016. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 7.2 MEUR.
On 30 March 2016, after customary regulatory approvals were received, Hexagon acquired AICON 3D Systems, a leading provider of optical and portable non-contact 3D measuring systems for industrial manufacturing.
AICON meets measurement needs of renowned automotive manufacturers and companies in the aerospace, shipbuilding, renewable energy and mechanical engineering markets. Its technology portfolio includes portable coordinate measuring machines for universal applications and specialised optical 3D measuring systems that enable efficient, high-precision monitoring, quality assurance and control in manufacturing production.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognised. Synergies have primarily been identified to arise by i) combining Manufacturing Intelligence's and AICON's technologies and solutions ii) increasing Hexagon's total market in excess of AICON's own market.
The acquired intangible assets, were assigned to trademarks that are not subject to amortization, capitalized development expenses and customer relationships with useful lives of 12-15 years. The intangible assets have been valued using a discounted cash flow method.
From the date of acquisition, AICON 3D Systems has contributed 17.0 MEUR of net sales during 2016. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 20.0 MEUR.
On 14 July 2016, after customary regulatory approvals were received, Hexagon acquired the GeoRadar division of the Italian-based company Ingegneria dei Sistemi S.p.A. The GeoRadar division provides radar solutions for structural health monitoring and underground utility detection.
GeoRadar's structural health monitoring solutions enable engineers to remotely monitor movements and vibrations of the earth. Its underground utility detection solutions provide engineers with dimensional information such as size and location of buried pipes and/or the health condition of roads and rail tracks. GeoRadar's solutions complement Hexagon's reality capture solutions, enriching the portfolio across a wide variety of segments like surveying, construction and mining.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognised. Synergies have primarily been identified to arise by i) combining Geosystem's and GeoRadar's technologies and solutions ii) increasing Hexagon's total market in excess of GeoRadar's own market.
The acquired intangible assets, were assigned to trademarks that are not subject to amortization, capitalized development expenses and customer relationships with useful lives of 12-15 years. The intangible assets have been valued using a discounted cash flow method.
From the date of acquisition, GeoRadar has contributed 8.9 MEUR of net sales during 2016. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 16.9 MEUR.
On 15 August 2016, after customary regulatory approvals were received, Hexagon acquired Multivista, a leading provider of visual, cloud-based construction documentation solutions.
Multivista's visual construction documentation enables visibility of construction progress throughout the life cycle of a built asset. Its construction photography and video services provide progressive, digital records of ground-up development. The acquisition strengthens Hexagon's breadth of expertise in the changing construction landscape and offers opportunities to augment Multivista's documentation portfolio with 3D reality capture solutions.
The goodwill comprises expected synergies arising from the acquisition and the assembled workforce, which is not separately recognised. Synergies have primarily been identified to arise by i) combining Geosystem's and Multivistas's technologies and solutions ii) increasing Hexagon's total market in excess of Multivista's own market.
The acquired intangible assets, were assigned to trademarks that are not subject to amortization, capitalized development expenses and customer relationships with useful lives of 12-15 years. The intangible assets have been valued using a discounted cash flow method.
The acquisition has no significant impact on Hexagon's earnings.
| MEUR | 2016 | 2015 |
|---|---|---|
| Carrying value of divested assets and liabilities, net | ||
| Intangible fixed assets | 8.7 | - |
| Other fixed assets | 1.5 | - |
| Total fixed assets | 10.2 | - |
| Total current assets | 13.6 | - |
| Total assets | 23.8 | - |
| Total long-term liabilities | 0.1 | - |
| Total current liabilities | 1.7 | - |
| Total liabilities | 1.8 | - |
| Carrying value of divested assets and liabilities, net | 22.0 | - - |
| Capital gain (+) / loss (-) | 0.7 | - |
| Total purchase consideration transferred | 22.7 | - |
| Less cash and cash equivalents in divested companies | -9.8 | - |
| Cash flow from divestment of companies/businesses | 12.9 | - |
In December 2016, Hexagon divested Prim' Tools Ltd. that was reported within the segment Geospatial Enterprise Solutions.
| MEUR | Q4 2016 | Q4 2015 | 2016 | 2015 |
|---|---|---|---|---|
| Net sales | 11.9 | 5.1 | 20.2 | 12.6 |
| Administration cost | -14.1 | -14.1 | -26.9 | -32.0 |
| Operating earnings | -2.2 | -9.0 | -6.7 | -19.5 |
| Earnings from shares in Group | ||||
| companies | - | 186.5 | - | 2,849.1 |
| Interest income and expenses, net | 52.4 | 27.2 | 43.3 | 125.4 |
| Group contribution | 1.8 | - | 1.8 | - |
| Earnings before taxes | 52.0 | 204.7 | 38.4 | 2,955.1 |
| Taxes | -0.2 | 0.0 | -0.2 | 0.0 |
| Net earnings | 51.8 | 204.7 | 38.2 | 2,955.0 |
| MEUR | 31/12 2016 | 31/12 2015 |
|---|---|---|
| Total fixed assets | 7,203.6 | 7,662.1 |
| Total current receivables | 803.3 | 223.1 |
| Cash and cash equivalents | 15.6 | 24.1 |
| Total current assets | 818.9 | 247.2 |
| Total assets | 8,022.5 | 7,909.3 |
| Total shareholders' equity | 4,688.7 | 4,805.5 |
| Total long-term liabilities | 1,469.4 | 1,775.3 |
| Total short-term liabilities | 1,864.4 | 1,328.5 |
| Total equity and liabilities | 8,022.5 | 7,909.3 |
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 |
| Amortization 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 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 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 |
| Gross margin | Gross earnings divided by net sales |
| Interest coverage 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 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 |
| 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 non-recurring items |
| Operating earnings (EBITDA) | Operating earnings (EBIT 1) excluding amortisation and depreciation of fixed assets |
| Operating margin | Operating earnings (EBIT1) as a percentage of net sales |
| Organic growth | Net sales compared to prior period excluding acquisitions and divestments and adjusted for currency exchange movements |
| 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. 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 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 3.1bn EUR. Learn more at hexagon.com.
Hexagon gives financial information at the following occasions:
Interim report Q1 2017 2 May 2017 Interim report Q2 2017 27 July 2017 Interim report Q3 2017 31 October 2017 Year-End report 2017 6 February 2018
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 fourth quarter 2016 will be presented on 6 February at 10:00 CET at a telephone conference. Please view instructions at Hexagon's website on how to participate.
Maria Luthström, Investor Relations Manager, Hexagon AB, +46 8 601 26 27, [email protected]
This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on February 6 2017.
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.
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