Interim / Quarterly Report • Jul 27, 2022
Interim / Quarterly Report
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| MEUR | Q2 2022 | Q2 2021 | Δ% | 6M 2022 | 6M 2021 | Δ% |
|---|---|---|---|---|---|---|
| Operating net sales2) | 1,288.7 | 1,075.6 | 6 1) |
2,452.1 | 2,053.5 | 8 1) |
| Revenue adjustment3) | -6.4 | - | n.a. | -10.1 | - | n.a. |
| Net sales | 1,282.3 | 1,075.6 | 6 1) |
2,442.0 | 2,053.5 | 8 1) |
| Adjusted gross earnings2) | 841.2 | 692.8 | 21 | 1,595.1 | 1,322.0 | 21 |
| Adjusted gross margin, %2) | 65.3 | 64.4 | 0.9 | 65.1 | 64.4 | 0.7 |
| Adjusted operating earnings (EBITDA)2) | 465.9 | 402.8 | 16 | 882.1 | 769.5 | 15 |
| Adjusted EBITDA margin, %2) | 36.2 | 37.4 | -1.2 | 36.0 | 37.5 | -1.5 |
| Adjusted operating earnings (EBIT1)2) | 378.5 | 314.6 | 20 | 713.6 | 585.9 | 22 |
| Adjusted operating margin, % | 29.4 | 29.2 | 0.2 | 29.1 | 28.5 | 0.6 |
| Earnings before taxes, excluding | ||||||
| adjustments | 372.9 | 307.8 | 21 | 702.2 | 571.5 | 23 |
| Adjustments (before taxes)3) | -43.9 | -18.4 | n.a. | -143.1 | -36.6 | n.a. |
| Earnings before taxes | 329.0 | 289.4 | 14 | 559.1 | 534.9 | 5 |
| Net earnings | 269.8 | 237.3 | 14 | 454.2 | 438.6 | 4 |
| Net earnings, excl. adjustments | 305.8 | 252.5 | 21 | 575.8 | 468.7 | 23 |
| Earnings per share, Euro cent | 9.9 | 9.2 | 8 | 16.6 | 16.9 | -2 |
| Earnings per share, excl. | ||||||
| adjustments, Euro cent | 11.2 | 9.8 | 14 | 21.2 | 18.1 | 17 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2)For definition, see page 19.
3)See more information on page 2.
"We continued to see strong customer demand for our solutions, resulting in 20 per cent sales growth of which 6 per cent was organic growth. The record gross margin, despite inflationary pressures, is a testament to the strength of our business model. The continued challenging supply chain situation impacted organic growth by approximately -6 per cent in the quarter. We are now starting to see improvements in the supply of certain components, and we expect a resolution by the end of the year.
After more than two years of restrictions related to the pandemic, we were finally able to host a very successful HxGN Live Conference, with three thousand participants in person and five thousand virtually. We introduced new and disruptive solutions to scale growth and further our vision.
During the quarter, we also announced several changes in the leadership of Hexagon, including my future successor, Paolo Guglielmini. I'm happy that we have found an internal successor, which will bring not only long-term stability and continuity but also well-needed rejuvenation in preparation for Hexagon's next big strategic leap."
Ola Rollén, President and CEO, Hexagon AB
88 CASH CONVERSION %
Operating net sales increased by 20 per cent to 1,288.7 MEUR (1,075.6). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent. Regionally, organic growth was 10 per cent in the Americas, 5 per cent in Asia and 4 per cent in EMEA. In the Americas, North America recorded 7 per cent organic growth, driven by solid demand across most industries. South America continued to record high double-digit organic growth driven by strong growth in mining, agriculture and power and energy. In Asia, China recorded 1 per cent organic growth, driven by growth in aerospace and general manufacturing, but hampered by component availability issues in infrastructure and construction, as well as COVID-19 related lockdowns. The rest of Asia performed well, primarily driven by strong demand for surveying solutions in India, Japan and South Korea. In EMEA, Western Europe recorded 7 per cent organic growth, fuelled by strong demand for surveying solutions, reality-capture solutions and solid growth in the aerospace, power and energy segments. Russia declined significantly, reflecting the impact of the sanctions imposed by the European Union and the U.S., Eastern Europe and the Middle East recorded strong organic growth.
Adjusted operating earnings (EBIT1) increased by 20 per cent to 378.5 MEUR (314.6), which corresponds to an adjusted operating margin of 29.4 per cent (29.2). The adjusted operating margin (EBIT1) was positively impacted by volume growth and currency movements. Adjusted operating earnings (EBIT1) were positively impacted by currency translation effects of 28.9 MEUR and positively impacted by currency transaction effects of 4.7 MEUR. Earnings before taxes, excluding adjustments, amounted to 372.9 MEUR (307.8) and were positively impacted by currency translation effects of 26.0 MEUR.
The adjustments for the quarter consist of share-based program expenses (LTIP) 8.9 MEUR (4.9), amortisation of surplus values (PPA) 28.6 MEUR (13.5) and acquired deferred revenue 6.4 MEUR (-).
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | Q2 2022 | Q2 2021 | Δ% 1) | Q2 2022 | Q2 2021 | Δ% |
| Geospatial Enterprise Solutions | 650.4 | 560.4 | 7 | 205.6 | 181.3 | 13 |
| Industrial Enterprise Solutions | 638.3 | 515.2 | 6 | 177.9 | 138.5 | 28 |
| Operating net sales | 1,288.7 | 1,075.6 | 6 | |||
| Revenue adjustment | -6.4 | - | n.a. | |||
| Net sales | 1,282.3 | 1,075.6 | 6 | |||
| Group cost | -5.0 | -5.2 | 4 | |||
| Adjusted operating earnings (EBIT1) | 378.5 | 314.6 | 20 | |||
| Adjusted operating margin, % | 29.4 | 29.2 | 0.2 | |||
| Interest income and expenses, net | -5.6 | -6.8 | 18 | |||
| Earnings before adjustments | 372.9 | 307.8 | 21 | |||
| Adjustments | -43.9 | -18.4 | n.a. | |||
| Earnings before taxes | 329.0 | 289.4 | 14 | |||
| Taxes | -59.2 | -52.1 | -14 | |||
| Net earnings | 269.8 | 237.3 | 14 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Strengthened | 7% | Negative | Negative |
| USD | Strengthened | 13% | Positive | Positive |
| CNY | Strengthened | 11% | Positive | Positive |
| EBIT1, MEUR | 28.9 |
1)Compared to Q2 2021
| Operating net sales1) | Region | Q2 2022 | |
|---|---|---|---|
| 2021, MEUR | 1,075.6 | Asia excl. China (13% of sales) | ↗ |
| Structure, % | 6 | South America (4% of sales) | ↗ |
| Currency, % | 8 | 2 North America (34% of sales) | → |
| Organic growth, % | 6 | Western Europe (27% of sales) | → |
| Total, % | 20 | China (15% of sales) | → |
| 2022, MEUR | 1,288.7 | EMEA excl. Western Europe (7% of sales) | ↘ |
1)Net sales from acquisitions and divestments during the last twelve months are reported as "Structure" in the table above. Percentages are rounded to the nearest whole per cent.
| Operating net sales1) | Region | Q2 2022 | ||
|---|---|---|---|---|
| 2021, MEUR | 1,075.6 | Asia excl. China (13% of sales) | ↗ | |
| Structure, % | 6 | South America (4% of sales) | ↗ | |
| Currency, % | 8 | 2 North America (34% of sales) | → | |
| Organic growth, % | 6 | Western Europe (27% of sales) | → | >8% ↗ |
| Total, % | 20 | China (15% of sales) | → | 0-8% → |
| 2022, MEUR | 1,288.7 | EMEA excl. Western Europe (7% of sales) | ↘ | Negative ↘ |
| 1)Net sales from acquisitions and divestments during the last twelve | Total | → |
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. Divisions reported in this segment include: (1) Geosystems, (2) Safety, Infrastructure & Geospatial and (3) Autonomy & Positioning.
Geospatial Enterprise Solutions (GES) operating net sales amounted to 650.4 MEUR (560.4). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 7 per cent. Regionally, organic growth was 11 per cent in the Americas, 6 per cent in Asia and 3 per cent in EMEA. In the Americas, North America recorded 7 per cent organic growth, driven by strong growth in infrastructure, construction and surveying, with reality capture solutions being a solid growth contributor. South America continued to record high double-digit organic growth driven by solid growth in mining and agriculture. In Asia, China recorded -4 per cent organic growth due to continued component availability challenges. The rest of Asia recorded double-digit organic growth, driven by strong demand for surveying solutions in Japan and South Korea, and for mining solutions in Indonesia. In EMEA, Western Europe recorded 8 per cent organic growth, fuelled by continued solid demand for infrastructure, construction and surveying solutions, with strong demand for reality capture solutions. Russia declined significantly, reflecting the impact of the sanctions imposed by the European Union and the U.S., and the actions taken to freeze all business operations in Russia. Excluding Russia, the rest of EMEA recorded single-digit organic growth.
Geosystems recorded 8 per cent organic growth, driven by continued strong demand across all industries but hampered by component supply constraints. The Safety, Infrastructure & Geospatial division recorded 1 per cent organic growth, driven by growth in infrastructure but adversely impacted by tough comparisons in defence. The Autonomy & Positioning division recorded 6 per cent organic growth, fuelled by strong growth in agriculture and a recovery in marine.
Adjusted operating earnings (EBIT1) increased by 13 per cent to 205.6 MEUR (181.3), which corresponds to an adjusted operating margin of 31.6 per cent (32.4). The adjusted operating margin (EBIT1) was positively impacted by volume growth and currency movements.
| MEUR | Q2 2022 | Q2 2021 | Δ% | 6M 2022 | 6M 2021 | Δ% |
|---|---|---|---|---|---|---|
| Operating net sales | 650.4 | 560.4 | 7 1) | 1,233.1 | 1,063.0 | 8 1) |
| Adjusted operating earnings (EBIT1) | 205.6 | 181.3 | 13 | 381.2 | 330.1 | 15 |
| Adjusted operating margin, % | 31.6 | 32.4 | -0.8 | 30.9 | 31.1 | -0.2 |
| Avg. number of employees | 9,897 | 9,154 | 8 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
Industrial Enterprise Solutions includes metrology systems that incorporate the latest in sensor technology for fast and accurate measurements, as well as CAD (computer-aided design), CAM (computer-aided manufacturing) and CAE (computer-aided engineering) software. These solutions optimise design, processes and throughput in manufacturing facilities and create and leverage asset management information critical to the planning, construction and operation of plants and process facilities in a number of industries, such as automotive, aerospace and oil and gas. Divisions reported in this segment include: (1) Manufacturing Intelligence and (2) Asset Lifecycle Intelligence.
Industrial Enterprise Solutions (IES) operating net sales amounted to 638.3 MEUR (515.2). Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 6 per cent. Regionally, organic growth was 9 per cent in the Americas, 6 per cent in EMEA and 4 per cent in Asia. In the Americas, North America recorded 8 per cent organic growth, driven by strong growth in aerospace and general manufacturing. South America recorded strong double-digit organic growth, driven by favorable demand in the power and energy segment. In EMEA, Western Europe recorded 6 per cent organic growth, driven by solid demand in aerospace, general manufacturing and power and energy. The rest of EMEA recorded single-digit organic growth, with the Middle East growing high double-digits and Russia declining substantially due to sanctions and the actions taken to freeze all business operations in the country. In Asia, China recorded 3 per cent organic growth, fuelled by strong growth in the manufacturing industry, but hampered by COVID-19 related lockdowns. The rest of Asia recorded solid growth due to strong demand for manufacturing solutions.
Manufacturing Intelligence recorded 6 per cent organic growth, driven by strong demand in the Americas with solid business momentum in aerospace and general manufacturing. The Asset Lifecycle Intelligence division (formerly known as the PPM division) recorded 5 per cent organic growth, fuelled by growth in design software, asset information management software and cyber security solutions, but hampered by COVID-19 related lockdowns in China.
Adjusted operating earnings (EBIT1) increased by 28 per cent to 177.9 MEUR (138.5), which corresponds to an adjusted operating margin of 27.9 per cent (26.9). The adjusted operating margin (EBIT1) was positively impacted by volume growth and currency movements.
| MEUR | Q2 2022 | Q2 2021 | Δ% | 6M 2022 | 6M 2021 | Δ% |
|---|---|---|---|---|---|---|
| Operating net sales | 638.3 | 515.2 | 6 1) | 1,219.0 | 990.5 | 8 1) |
| Adjusted operating earnings (EBIT1) | 177.9 | 138.5 | 28 | 343.6 | 265.6 | 29 |
| Adjusted operating margin, % | 27.9 | 26.9 | 1.0 | 28.2 | 26.8 | 1.4 |
| Avg. number of employees | 12,653 | 11,659 | 9 |
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
Operating net sales amounted to 2,452.1 MEUR (2,053.5) for the first six months of the year. Using fixed exchange rates and a comparable group structure (organic growth), net sales increased by 8 per cent.
Adjusted operating earnings (EBIT1) amounted to 713.6 MEUR (585.9), which corresponds to an adjusted operating margin of 29.1 per cent (28.5). Adjusted operating earnings (EBIT1) were positively affected by currency translation effects of 41.5 MEUR and positively affected by currency transaction effects of 6.7 MEUR.
The financial net amounted to -11.4 MEUR (-14.4) for the first six months of the year.
Earnings before taxes, excluding adjustments, amounted to 702.2 MEUR (571.5). Earnings before taxes, including these items, amounted to 559.1 MEUR (534.9) and were positively impacted by currency translation effects of 37.3 MEUR.
Net earnings, excluding adjustments, amounted to 575.8 MEUR (468.7) or 21.2 Euro cent (18.1) per share. Net earnings, including these items, amounted to 454.2 MEUR (438.6) or 16.6 Euro cent (16.9) per share.
| Net sales | Earnings | |||||
|---|---|---|---|---|---|---|
| MEUR | 6M 2022 | 6M 2021 | Δ% 1) | 6M 2022 | 6M 2021 | Δ% |
| Geospatial Enterprise Solutions | 1,233.1 | 1,063.0 | 8 | 381.2 | 330.1 | 15 |
| Industrial Enterprise Solutions | 1,219.0 | 990.5 | 8 | 343.6 | 265.6 | 29 |
| Operating net sales | 2,452.1 | 2,053.5 | 8 | |||
| Revenue adjustment2) | -10.1 | - | n.a. | |||
| Net sales | 2,442.0 | 2,053.5 | 8 | |||
| Group cost | -11.2 | -9.8 | -14 | |||
| Adjusted operating earnings (EBIT1) | 713.6 | 585.9 | 22 | |||
| Adjusted operating margin, % | 29.1 | 28.5 | 0.6 | |||
| Interest income and expenses, net | -11.4 | -14.4 | 21 | |||
| Earnings before adjustments | 702.2 | 571.5 | 23 | |||
| Adjustments3) | -143.1 | -36.6 | n.a. | |||
| Earnings before taxes | 559.1 | 534.9 | 5 | |||
| Taxes | -104.9 | -96.3 | -9 | |||
| Net earnings | 454.2 | 438.6 | 4 | |||
1)Adjusted to fixed exchange rates and a comparable group structure, i.e. organic growth.
2)Reduction of acquired deferred revenue (haircut) related to acquisitions
Adjustments in 2022 relates to share programmes (LTIP), amortisation of surplus values and non-recurring items.
| Movement 1) | Income less cost | Earnings impact | ||
|---|---|---|---|---|
| CHF | Strengthened | 6% | Negative | Negative |
| USD | Strengthened | 10% | Positive | Positive |
| CNY | Strengthened | 10% | Positive | Positive |
| EBIT1, MEUR | 41.5 |
1)Compared to 6M 2021.
Hexagon acquired ETQ, a leading provider of SaaS-QMS (quality management system), EHS (environment, health and safety) and compliance management software. ETQ's advanced data management capabilities, driven by machine learning and artificial intelligence, this reduce defects, scrap, rework, and recalls, but it also enables an autonomous feedback loop, digital information trail and virtuous cycle of
Capital employed increased to 13,784.6 MEUR (8,945.5). Return on average capital employed for the last twelve months was 12.5 per cent (13.1). Return on average shareholders' equity over the previous twelve months was 9.8 per cent (13.4). The capital turnover rate was 0.4 times (0.5).
Total shareholders' equity increased to 9,637.9 MEUR (6,379.6). The equity ratio was 58.6 per cent (57.7). Hexagon's total assets increased to 16,435.1 MEUR (11,051.5). The increase in total assets is driven primarily by acquisitions. Following a refinancing in 2021, Hexagon's main sources of financing consist of:
1) A multicurrency revolving credit facility (RCF) established in 2021. The RCF amounts to 1,500 MEUR with a tenor of 5+1+1 years.
2) A Swedish Medium Term Note Programme (MTN) established in 2014. The MTN programme amounts to 20,000 MSEK with tenor up to 6 years
3) A Swedish Commercial Paper Programme (CP) established in 2012. The CP programme amounts to 15,000 MSEK with tenor up to 12 months.
On 30 June 2022, cash and unutilised credit limits totalled 1,208.5 MEUR (1,753.3). Hexagon's net debt was 3,673.9 MEUR (2,153.2). The net indebtedness was 0.36 times (0.31). Interest coverage ratio was 40.2 times (35.9).
During the second quarter, cash flow from operations before changes in working capital amounted to 350.0 MEUR (338.9), corresponding to 13.0 Euro cent (13.2) per share. Cash flow from operations in the second quarter amounted to 358.5 MEUR (379.2), corresponding to 13.3 Euro cent (14.8) per share. Operating cash flow in the second quarter, including non-recurring items, amounted to 228.1 MEUR (275.4).
For the first six months of the year, cash flow from operations amounted to 650.3 MEUR (698.0) corresponding to 24.1 Euro cent (27.2) per share. The operating cash flow, including nonrecurring items, amounted to 392.4 MEUR (487.3).
Hexagon's net investments, excluding acquisitions and divestitures, amounted to -125.9 MEUR (-99.2) in the second quarter and -246.4 MEUR (-197.4) in the first six months of the year. Depreciation, amortisation and impairment amounted to -116.0 MEUR (-101.7) in the second quarter and -219.6 MEUR (-210.5) during the first six months of the year, whereof impairment charges amounted to 0.0 MEUR (-) in the second quarter and 0.0 MEUR (-10.8) during the first six months of the year.
The tax expense for the first six months of the year amounted to -104.9 MEUR (-96.3). The reported tax rate was 18.0 per cent (18.0) for the quarter and 18.8 per cent (18.0) for the first six months of the year. The tax rate, excluding non-recurring items, was 18.0 per cent (18.0) for the quarter and 18.0 per cent (18.0) for the first six months of the year.
The average number of employees during the second quarter was 22,672 (20,907). The number of employees at the end of the quarter was 23,245 (21,078).
Earnings per share, including adjustments, for the second quarter amounted to 9.9 Euro cent (9.2). Earnings per share, excluding adjustments, for the second quarter amounted to 11.2 Euro cent (9.8).
Earnings per share, including adjustments, for the first six months of the year amounted to 16.6 Euro cent (16.9). Earnings per share, excluding adjustments, for first six months of the year amounted to 21.2 Euro cent (18.1).
On 30 June 2022, equity per share was 3.56 EUR (2.48) and the share price was 106.25 SEK (126.80).
Hexagon's share capital amounts to 85,761,450 EUR, represented by 2,692,927,888 shares, of which 110,250,000 are of series A with ten votes each and 2,582,677,888 are of series B with one vote each. Hexagon holds 12,550,000 treasury shares.
The parent company's earnings before taxes in the second quarter amounted to 138.7 MEUR (-6.5) and 277.2 MEUR (-4.5) for the first six months of the year. The equity was 6,577.4 MEUR (4,951.6). The equity ratio of the parent company was 47 per cent (46). Liquid funds including unutilised credit limits were 711.2 MEUR (1,344.1).
Hexagon announced the introduction of the all-new, next-generation Leica BLK360, which dramatically advances reality efficiency. The new BLK360 creates stunning, photorealistic, accurate digital twins within just 20 seconds. Like its predecessor, the new BLK360 encourages new users portability, and ease of use.
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 2021, see note 1 for further information.
As an international group, Hexagon is exposed to a number of business and financial risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity and the ability to raise funds. Risk management in Hexagon aims to identify, control and reduce risks. This work
begins with an assessment of the probability of risks occurring and their potential effect on the Group. There has been no change in the risks facing the Group compared to what was reported in the Annual Report 2021.
No significant related party transactions have been incurred during the quarter.
No significant events effecting the financial reporting have occurred during the period between quarter-end and date of issuance of this report.
The Board of Directors and the President and CEO declare that this Interim Report provides a true and fair overview of the Company´s and the Group´s operations, its financial position and performance, and describes material risks and uncertainties facing the Company and companies within the Group.
Stockholm, Sweden, 27 July 2022 Hexagon AB (publ)
Gun Nilsson Chair of the Board
Ola Rollén President and CEO Board Member
Henrik Henriksson Board Member
John Brandon Board Member
Erik Huggers Board Member
Board Member Märta Schörling Andreen
Board Member
Ulrika Francke
Sofia Schörling Högberg Board Member
Patrick Söderlund Board Member
Brett Watson Board Member
This Interim Report has not been reviewed by the Company's auditors.
| MEUR | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | 2021 |
|---|---|---|---|---|---|
| Net sales | 1,282.3 | 1,075.6 | 2,442.0 | 2,053.5 | 4,341.1 |
| Cost of goods sold | -448.1 | -382.8 | -863.5 | -731.5 | -1,544.0 |
| Gross earnings | 834.2 | 692.8 | 1,578.5 | 1,322.0 | 2,797.1 |
| Sales expenses | -250.0 | -190.0 | -476.9 | -371.7 | -797.4 |
| Administration expenses | -99.8 | -83.4 | -200.5 | -165.8 | -357.4 |
| Research and development expenses | -153.0 | -123.1 | -294.7 | -243.7 | -510.8 |
| Capital gain (+) / loss (-) from sale of shares in Group companies | - | 0.3 | - | 0.3 | 0.3 |
| Other income and expenses, net | 3.2 | -0.4 | -35.9 | 8.2 | -122.0 |
| Operating earnings 1) | 334.6 | 296.2 | 570.5 | 549.3 | 1,009.8 |
| Financial income | 2.8 | 1.5 | 4.0 | 2.2 | 5.1 |
| Financial expenses | -8.4 | -8.3 | -15.4 | -16.6 | -31.3 |
| Earnings before taxes | 329.0 | 289.4 | 559.1 | 534.9 | 983.6 |
| Taxes | -59.2 | -52.1 | -104.9 | -96.3 | -173.6 |
| Net earnings | 269.8 | 237.3 | 454.2 | 438.6 | 810.0 |
| Attributable to: | |||||
| Parent company shareholders | 266.7 | 235.2 | 448.5 | 434.9 | 801.6 |
| Non-controlling interest | 3.1 | 2.1 | 5.7 | 3.7 | 8.4 |
| 1) of which adjustments | -43.9 | -18.4 | -143.1 | -36.6 | -259.8 |
| Earnings include depreciation, amortisation and impairments of | -116.0 | -101.7 | -219.6 | -210.5 | -578.9 |
| - of which amortisation of surplus values (included in adjustments) | -28.6 | -13.5 | -51.1 | -26.9 | -62.2 |
| Basic earnings per share, Euro cent | 9.9 | 9.2 | 16.6 | 16.9 | 30.8 |
| Earnings per share after dilution, Euro cent | 9.9 | 9.1 | 16.6 | 16.9 | 30.8 |
| Total shareholder's equity per share, EUR | 3.56 | 2.48 | 3.56 | 2.48 | 3.24 |
| Closing number of shares, thousands | 2,692,928 | 2,566,906 | 2,692,928 | 2,566,906 | 2,696,128 |
| Average number of shares, thousands | 2,694,555 | 2,566,906 | 2,695,133 | 2,567,302 | 2,599,293 |
| Average number of shares after dilution, thousands | 2,707,105 | 2,572,856 | 2,706,509 | 2,572,948 | 2,606,291 |
| MEUR | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | 2021 |
|---|---|---|---|---|---|
| Net earnings | 269.8 | 237.3 | 454.2 | 438.6 | 810.0 |
| Other comprehensive income | |||||
| Items that will not be reclassified to income statement | |||||
| Remeasurement of pensions | -0.3 | 20.7 | -0.4 | 44.6 | 43.7 |
| Taxes on items that will not be reclassified to income statement | 0.1 | -2.1 | 0.1 | -4.5 | -5.3 |
| Total items that will not be reclassified to income statement, net | |||||
| of taxes | -0.2 | 18.6 | -0.3 | 40.1 | 38.4 |
| Items that may be reclassified subsequently to income statement | |||||
| Exchange rate differences | 574.0 | -51.0 | 771.3 | 208.3 | 503.5 |
| Taxes on items that may be reclassified subsequently to income | |||||
| statement | -30.7 | 4.8 | -36.6 | -5.6 | -14.1 |
| Total items that may be reclassified subsequently to income | |||||
| statement, net of taxes | 543.3 | -46.2 | 734.7 | 202.7 | 489.4 |
| Other comprehensive income, net of taxes | 543.1 | -27.6 | 734.4 | 242.8 | 527.8 |
| Total comprehensive income for the period | 812.9 | 209.7 | 1,188.6 | 681.4 | 1,337.8 |
| Attributable to: | |||||
| Parent company shareholders | 809.4 | 207.6 | 1,181.9 | 677.1 | 1,326.8 |
| Non-controlling interest | 3.5 | 2.1 | 6.7 | 4.3 | 11.0 |
| MEUR | 30/6 2022 | 30/6 2021 | 31/12 2021 |
|---|---|---|---|
| Intangible fixed assets | 12,984.9 | 8,173.0 | 10,909.4 |
| Tangible fixed assets | 579.7 | 504.7 | 536.7 |
| Right-of-use assets | 213.7 | 209.9 | 201.7 |
| Financial fixed assets | 67.8 | 66.2 | 69.6 |
| Deferred tax assets | 114.6 | 95.4 | 105.9 |
| Total fixed assets | 13,960.7 | 9,049.2 | 11,823.3 |
| Inventories | 543.0 | 408.1 | 443.5 |
| Accounts receivables | 1,178.2 | 896.1 | 1,090.8 |
| Other receivables | 99.1 | 143.6 | 114.8 |
| Prepaid expenses and accrued income | 181.3 | 141.8 | 150.5 |
| Total current receivables | 1,458.6 | 1,181.5 | 1,356.1 |
| Cash and cash equivalents | 472.8 | 412.7 | 472.1 |
| Total current assets | 2,474.4 | 2,002.3 | 2,271.7 |
| Total assets | 16,435.1 | 11,051.5 | 14,095.0 |
| Equity attributable to parent company shareholders | 9,599.2 | 6,365.5 | 8,732.1 |
| Equity attributable to non-controlling interest | 38.7 | 14.1 | 32.6 |
| Total shareholders' equity | 9,637.9 | 6,379.6 | 8,764.7 |
| Interest bearing liabilities | 3,501.9 | 1,750.0 | 2,143.0 |
| Lease liabilities | 158.8 | 156.8 | 149.9 |
| Other liabilities | 114.2 | 50.5 | 116.0 |
| Pension liabilities | 76.0 | 72.3 | 75.0 |
| Deferred tax liabilities | 585.3 | 469.2 | 478.0 |
| Other provisions | 18.6 | 15.4 | 13.9 |
| Total long-term liabilities | 4,454.8 | 2,514.2 | 2,975.8 |
| Interest bearing liabilities | 343.3 | 523.8 | 582.3 |
| Lease liabilities | 66.7 | 63.0 | 62.7 |
| Accounts payable | 292.3 | 231.9 | 263.2 |
| Other liabilities | 340.8 | 367.9 | 307.1 |
| Other provisions | 105.8 | 33.3 | 54.8 |
| Deferred income | 771.4 | 568.9 | 655.1 |
| Accrued expenses | 422.1 | 368.9 | 429.3 |
| Total short-term liabilities | 2,342.4 | 2,157.7 | 2,354.5 |
| Total equity and liabilities | 16,435.1 | 11,051.5 | 14,095.0 |
In Hexagon's balance sheet derivatives and other long-term securities holdings are carried at fair value. Derivatives are measured at fair value based on valuation techniques with observable market data as input (level 2 according to definition in IFRS 13). Other longterm securities holdings amount to insignificant numbers. Liabilities for contingent considerations are measured at fair value and based on management's best estimation of the most probable outcome (level 3 according to definition in IFRS 13). Other assets and liabilities are carried at accrued cost.
For financial assets and liabilities that are carried at accrued cost, the fair value is deemed to be coincident with the carrying amount except for long-term liabilities to credit institutions. The difference between the fair value and the carrying amount for these long-term liabilities is deemed to be insignificant relative to the total balance sheet since the interest rate duration is short.
| MEUR | Q2 2022 | Q2 2021 | 2021 |
|---|---|---|---|
| Opening shareholders' equity | 8,764.7 | 5,949.2 | 5,949.2 |
| Total comprehensive income for the period1) | 1,188.6 | 681.4 | 1,337.8 |
| Issue in kind Acquisition of treasury shares |
- -35.9 |
- -14.8 |
1,751.4 -62.2 |
| Dividend | -295.8 | -243.3 | -244.2 |
| Acquisition of non-controlling interest | - | - | 12.7 |
| Share based programme (LTIP) | 16.3 | 7.1 | 20.0 |
| Closing shareholders' equity2) | 9,637.9 | 6,379.6 | 8,764.7 |
| 1) Of which: Parent company shareholders | 1,181.9 | 677.1 | 1,326.8 |
| Non-controlling interest | 6.7 | 4.3 | 11.0 |
| 2) Of which: Parent company shareholders | 9,599.2 | 6,365.5 | 8,732.1 |
| Non-controlling interest | 38.7 | 14.1 | 32.6 |
| series A | series B | Total | |
|---|---|---|---|
| 2014-12-31 Total issued and outstanding | 15,750,000 | 341,639,213 | 357,389,213 |
| New issue, warrants exercised | - | 2,947,929 | 2,947,929 |
| 2015-12-31 Total issued and outstanding | 15,750,000 | 344,587,142 | 360,337,142 |
| New issue, warrants exercised | - | 106,000 | 106,000 |
| 2016-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| New issue, warrants exercised | - | - | - |
| 2017-12-31 Total issued and outstanding | 15,750,000 | 344,693,142 | 360,443,142 |
| New issue, warrants exercised | - | 2,481,550 | 2,481,550 |
| 2018-12-31 Total issued and outstanding | 15,750,000 | 347,174,692 | 362,924,692 |
| New issue, warrants exercised | - | 4,614,610 | 4,614,610 |
| 2019-12-31 Total issued and outstanding | 15,750,000 | 351,789,302 | 367,539,302 |
| New issue, warrants exercised | - | 11,500 | 11,500 |
| Repurchase of treasury shares | - | -646,000 | -646,000 |
| 2020-12-31 Total outstanding | 15,750,000 | 351,154,802 | 366,904,802 |
| Repurchase of treasury shares | - | -204,000 | -204,000 |
| 2021-03-31 Total outstanding | 15,750,000 | 350,950,802 | 366,700,802 |
| Split 7:1 outstanding shares | 94,500,000 | 2,105,704,812 | 2,200,204,812 |
| 2021-06-30 Total outstanding | 110,250,000 | 2,456,655,614 | 2,566,905,614 |
| Repurchase of treasury shares | - | -1,400,000 | -1,400,000 |
| 2021-09-30 Total outstanding | 110,250,000 | 2,455,255,614 | 2,565,505,614 |
| Issue in kind | 132,622,274 | 132,622,274 | |
| Repurchase of treasury shares | -2,000,000 | -2,000,000 | |
| 2021-12-31 Total outstanding | 110,250,000 | 2,585,877,888 | 2,696,127,888 |
| Repurchase of treasury shares | - | -850,000 | -850,000 |
| 2022-03-31 Total outstanding | 110,250,000 | 2,585,027,888 | 2,695,277,888 |
| Repurchase of treasury shares | - | -2,350,000 | -2,350,000 |
| 2022-06-30 Total outstanding | 110,250,000 | 2,582,677,888 | 2,692,927,888 |
| Total amount of treasury shares | - | 12,550,000 | 12,550,000 |
| 2022-06-30 Total issued | 110,250,000 | 2,595,227,888 | 2,705,477,888 |
Each share of series A carries entitlement to ten votes and each share of series B carries entitlement to one vote.
| MEUR | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | 2021 |
|---|---|---|---|---|---|
| Cash flow from operations before change in working capital | |||||
| excluding taxes and interest | 450.4 | 398.7 | 859.7 | 753.6 | 1,590.9 |
| Taxes paid | -94.0 | -52.1 | -122.5 | -102.9 | -189.4 |
| Interest received and paid, net | -6.4 | -7.7 | -11.1 | -13.1 | -28.7 |
| Cash flow from operations before change in working capital | 350.0 | 338.9 | 726.1 | 637.6 | 1,372.8 |
| Cash flow from change in working capital | 8.5 | 40.3 | -75.8 | 60.4 | -21.4 |
| Cash flow from operations | 358.5 | 379.2 | 650.3 | 698.0 | 1,351.4 |
| Investments tangible assets, net | -28.9 | -21.6 | -60.3 | -48.4 | -107.2 |
| Investments intangible assets | -97.0 | -77.6 | -186.1 | -149.0 | -312.2 |
| Operating cash flow before non-recurring items | 232.6 | 280.0 | 403.9 | 500.6 | 932.0 |
| Non-recurring cash flow 1) | -4.5 | -4.6 | -11.5 | -13.3 | -27.8 |
| Operating cash flow | 228.1 | 275.4 | 392.4 | 487.3 | 904.2 |
| Cash flow from acquisitions and divestments | -1,124.3 | -9.6 | -1,152.6 | -34.2 | -748.1 |
| Cash flow from other investing activities | 1.6 | -0.4 | 2.0 | 4.6 | 1.4 |
| Cash flow after other investing activities | -894.6 | 265.4 | -758.2 | 457.7 | 157.5 |
| Dividends paid | -295.8 | -243.3 | -295.8 | -243.3 | -244.2 |
| Repurchase of Treasury shares | -25.7 | - | -35.9 | -14.8 | -62.2 |
| Cash flow from other financing activities | 991.4 | -56.9 | 1,082.4 | -199.1 | 219.9 |
| Cash flow for the period | -224.7 | -34.8 | -7.5 | 0.5 | 71.0 |
| Cash and cash equivalents, beginning of period | 698.2 | 444.4 | 472.1 | 397.4 | 397.4 |
| Effect of translation differences on cash and cash equivalents | -0.7 | 3.1 | 8.2 | 14.8 | 3.7 |
| Cash flow for the period | -224.7 | -34.8 | -7.5 | 0.5 | 71.0 |
| Cash and cash equivalents, end of period | 472.8 | 412.7 | 472.8 | 412.7 | 472.1 |
1) Non-recurring cash flow consists of restructuring costs.
| MEUR | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | 2021 |
|---|---|---|---|---|---|
| Adjusted operating margin, %2) | 29.4 | 29.2 | 29.1 | 28.5 | 29.2 |
| Profit margin before taxes, % | 25.7 | 26.9 | 22.9 | 26.0 | 22.7 |
| Return on shareholders' equity, 12-month average, % | 9.8 | 13.4 | 9.8 | 13.4 | 11.6 |
| Return on capital employed ,12-month average, %2) | 12.5 | 13.1 | 12.5 | 13.1 | 13.5 |
| Equity ratio, % | 58.6 | 57.7 | 58.6 | 57.7 | 62.2 |
| Net indebtedness | 0.36 | 0.31 | 0.36 | 0.31 | 0.27 |
| Interest coverage ratio | 40.2 | 35.9 | 37.3 | 33.2 | 32.4 |
| Average number of shares, thousands1) | 2,694,555 | 2,566,906 | 2,695,133 | 2,567,302 | 2,599,293 |
| Basic earnings per share excl. adjustments, Euro cent1) 2) | 11.2 | 9.8 | 21.2 | 18.1 | 38.8 |
| Basic earnings per share, Euro cent1) | 9.9 | 9.2 | 16.6 | 16.9 | 30.8 |
| Cash flow per share, Euro cent1) | 13.3 | 14.8 | 24.1 | 27.2 | 52.0 |
| Cash flow per share before change in working cap, Euro cent1) | 13.0 | 13.2 | 26.9 | 24.8 | 52.8 |
| Share price, SEK | 106.25 | 126.80 | 106.25 | 126.80 | 143.65 |
| Share price, translated to EUR | 9.90 | 12.54 | 9.90 | 12.54 | 14.02 |
1)All comparatives to per share data have been adjusted to reflect the split 7:1 during Q2 2021.
2)Historical numbers have been restated with the new definition of adjustments.
| MEUR | Q2 2022 Q1 2022 | 2022* | Q4 2021* | Q3 2021 | Q2 2021 | Q1 2021 | 2021* | |
|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 650.4 | 582.7 | 1,233.1 | 586.5 | 551.9 | 560.4 | 502.6 | 2,201.4 |
| Industrial Enterprise Solutions | 638.3 | 580.7 | 1,219.0 | 630.2 | 525.3 | 515.2 | 475.3 | 2,146.0 |
| Group | 1,288.7 | 1,163.4 | 2,452.1 | 1,216.7 | 1,077.2 | 1,075.6 | 977.9 | 4,347.4 |
| MEUR | Q2 2022 | Q1 2022 | 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | 2021 |
|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | 205.6 | 175.6 | 381.2 | 182.0 | 172.6 | 181.3 | 148.8 | 684.7 |
| Industrial Enterprise Solutions | 177.9 | 165.7 | 343.6 | 200.9 | 142.6 | 138.5 | 127.1 | 609.1 |
| Group costs | -5.0 | -6.2 | -11.2 | -9.8 | -4.6 | -5.2 | -4.6 | -24.2 |
| Group | 378.5 | 335.1 | 713.6 | 373.1 | 310.6 | 314.6 | 271.3 | 1,269.6 |
| Adjusted operating margin, % | 29.4 | 28.8 | 29.1 | 30.7 | 28.8 | 29.2 | 27.7 | 29.2 |
| MEUR | Q2 2022 | Q1 2022 | 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | 2021 |
|---|---|---|---|---|---|---|---|---|
| Geospatial Enterprise Solutions | -5.5 | -5.4 | -10.9 | -5.0 | -5.1 | -4.9 | -5.0 | -20.0 |
| Industrial Enterprise Solutions | -23.1 | -17.1 | -40.2 | -16.4 | -8.7 | -8.6 | -8.4 | -42.1 |
| Group costs | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | 0.0 | 0.0 | -0.1 |
| Group | -28.6 | -22.5 | -51.1 | -21.5 | -13.8 | -13.5 | -13.4 | -62.2 |
| MEUR | Q2 2022 Q1 2022 | 2022* | Q4 2021* | Q3 2021 | Q2 2021 | Q1 2021 | 2021* | |
|---|---|---|---|---|---|---|---|---|
| EMEA | 433.2 | 409.7 | 842.9 | 448.0 | 383.7 | 399.6 | 370.9 | 1,602.2 |
| Americas | 494.8 | 427.0 | 921.8 | 440.3 | 379.2 | 360.7 | 327.2 | 1,507.4 |
| Asia | 360.7 | 326.7 | 687.4 | 328.4 | 314.3 | 315.3 | 279.8 | 1,237.8 |
| Group | 1,288.7 | 1,163.4 | 2,452.1 | 1,216.7 | 1,077.2 | 1,075.6 | 977.9 | 4,347.4 |
| Average | Q2 2022 | Q1 2022 | 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | 2021 |
|---|---|---|---|---|---|---|---|---|
| SEK/EUR | 0.0955 | 0.0954 | 0.0954 | 0.0988 | 0.0981 | 0.0986 | 0.0988 | 0.0986 |
| USD/EUR | 0.9389 | 0.8914 | 0.9148 | 0.8744 | 0.8483 | 0.8293 | 0.8302 | 0.8459 |
| CNY/EUR | 0.1421 | 0.1405 | 0.1412 | 0.1368 | 0.1311 | 0.1284 | 0.1281 | 0.1312 |
| CHF/EUR | 0.9732 | 0.9648 | 0.9688 | 0.9481 | 0.9238 | 0.9109 | 0.9165 | 0.9250 |
| Closing | Q2 2022 | Q1 2022 | 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | 2021 |
| SEK/EUR | 0.0932 | 0.0967 | 0.0932 | 0.0976 | 0.0983 | 0.0989 | 0.0977 | 0.0976 |
| USD/EUR | 0.9627 | 0.9008 | 0.9627 | 0.8829 | 0.8636 | 0.8415 | 0.8529 | 0.8829 |
| CNY/EUR | 0.1436 | 0.1420 | 0.1436 | 0.1390 | 0.1336 | 0.1303 | 0.1302 | 0.1390 |
| CHF/EUR | 1.0040 | 0.9740 | 1.0040 | 0.9680 | 0.9234 | 0.9107 | 0.9033 | 0.9680 |
*Operating net sales, i.e. excluding revenue adjustment (haircut)
| MEUR | ETQ | Other | 6M 2022 | 6M 2021 |
|---|---|---|---|---|
| Fair value of acquired assets and assumed liabilities | ||||
| Intangible fixed assets | 258.4 | 18.4 | 276.8 | 14.7 |
| Other fixed assets | 1.8 | 4.9 | 6.7 | 1.9 |
| Total fixed assets | 260.2 | 23.3 | 283.5 | 16.6 |
| Total current assets | 26.3 | 12.1 | 38.4 | 15.4 |
| Total assets | 286.5 | 35.4 | 321.9 | 32.0 |
| Total long-term liabilities | -59.0 | -9.6 | -68.6 | -5.6 |
| Total current liabilities | -32.4 | -12.1 | -44.5 | -4.2 |
| Total liabilities | -91.4 | -21.7 | -113.1 | -9.8 |
| Fair value of acquired assets and assumed liabilities, net | 195.1 | 13.7 | 208.8 | 22.2 |
| Goodwill | 889.3 | 118.8 | 1,008.1 | 15.5 |
| Total purchase consideration transferred | 1,084.4 | 132.5 | 1,216.9 | 37.7 |
| Less cash and cash equivalents in acquired companies Adjustment for non-paid consideration and considerations |
-16.1 | -3.4 | -19.5 | -3.5 |
| paid for prior years' acquisitions | - | -44.8 | -44.8 | 0.3 |
| Cash flow from acquisition of companies/businesses | 1,068.3 | 84.3 | 1,152.6 | 34.5 |
During the first six months of the year 2022, Hexagon acquired the following companies:
Aside from ETQ, the acquisitions are individually assessed as immaterial from a group perspective which is why only aggregated information is presented. The analysis of the acquired net assets is preliminary and the fair value might be subject to change. Contingent considerations are recognised to fair value (level 3 according to definition in IFRS 13) each reporting period and based on the latest relevant forecast for the acquired company. The valuation method is unchanged compared to the previous period. The estimated liability for contingent considerations amounted to 181.9 MEUR (122.4) as of 30 June, whereof the fair value adjustment in 2022 amounted to 0.6 MEUR (11.2). In connection with the valuation of contingent considerations the assets acquired and liabilities assumed in the purchase price allocation are reviewed. Any indication of impairment due to the revaluation of contingent considerations is considered and adjustments are made to off-set the impact from revaluation.
In April 2022, Hexagon acquired ETQ, a leading provider of SaaS-based QMS (quality management system), EHS (environment, health and safety) and compliance management software.
ETQ's SaaS QMS solution provides the data backbone for automating the collection and delivery of manufacturing quality control data, non-conformance reports, customer feedback and more. It provides an enterprise view of quality management across the entire product lifecycle. ETQ's broad portfolio of best-in-class applications comes with out-of-the-box functionality and no-code configurability, enabling customers to tailor the solution to their unique needs and optimise critical business processes to achieve their quality, safety and environmental goals. Given the strong fit across Hexagon's manufacturing and process industries and the significant scope for geographical expansion, the transaction is expected to generate sales synergies of over 40 MUSD, with very strong incremental margins, by 2026.
From the date of acquisition, ETQ has contributed 15.7 MEUR of net sales in 2022. If the acquisition had taken place at the beginning of the year, the contribution to net sales would have been 30.3 MEUR. The contribution to the group operating margin has been accretive.
| Restated | As | reported Restated | As | reported Restated | As | reported Restated | As reported |
|
|---|---|---|---|---|---|---|---|---|
| MEUR | Q3 2021 Q3 2021 Q2 2021 Q2 2021 Q1 2021 Q1 2021 9M 2021 9M 2021 | |||||||
| Net sales | 1,077.2 | 1,077.2 | 1,075.6 | 1,075.6 | 977.9 | 977.9 | 3,130.7 | 3,130.7 |
| Adjusted gross earnings | 692.9 | 692.9 | 692.8 | 692.8 | 629.6 | 629.6 | 2,015.3 | 2,015.3 |
| Adjusted gross margin, % | 64.3 | 64.3 | 64.4 | 64.4 | 64.4 | 64.4 | 64.4 | 64.4 |
| Adjusted operating earnings (EBITDA) |
413.4 | 413.4 | 402.8 | 402.8 | 366.7 | 366.7 | 1,182.9 | 1,182.9 |
| Adjusted EBITDA margin, % | 38.4 | 38.4 | 37.4 | 37.4 | 37.5 | 37.5 | 37.8 | 37.8 |
| Adjusted operating earnings (EBIT1) | 310.6 | 296.8 | 314.6 | 301.1 | 271.3 | 257.9 | 896.5 | 855.8 |
| Adjusted operating margin, % | 28.8 | 27.6 | 29.2 | 28.0 | 27.7 | 26.4 | 28.6 | 27.3 |
| Earnings before taxes, excluding | ||||||||
| adjustments | 304.3 | 290.5 | 307.8 | 294.3 | 263.7 | 250.3 | 875.8 | 835.1 |
| -Amortisation surplus values (PPA) | -13.8 | - | -13.5 | - | -13.4 | - | -40.7 | - |
| -Share programme (LTIP) | -9.4 | -9.4 | -4.9 | -4.9 | -4.8 | -4.8 | -19.1 | -19.1 |
| -Other non-recurring items | - | - | - | - | - | - | - | - |
| Total adjustments (before taxes) | -23.2 | -9.4 | -18.4 | -4.9 | -18.2 | -4.8 | -59.8 | -19.1 |
| Earnings before taxes | 281.1 | 281.1 | 289.4 | 289.4 | 245.5 | 245.5 | 816.0 | 816.0 |
| Net earnings | 230.6 | 230.6 | 237.3 | 237.3 | 201.3 | 201.3 | 669.2 | 669.2 |
| Net earnings, excl. adjustments | 249.6 | 238.3 | 252.5 | 241.4 | 216.2 | 205.2 | 718.3 | 684.9 |
| Earnings per share, Euro cent | 8.9 | 8.9 | 9.2 | 9.2 | 7.8 | 7.8 | 25.9 | 25.9 |
| Earnings per share, excl. | ||||||||
| adjustments, Euro cent | 9.6 | 9.2 | 9.8 | 9.3 | 8.4 | 7.9 | 27.8 | 26.4 |
| Restated | As | reported Restated | As | reported Restated | As | reported Restated | As | reported Restated | As reported |
|
|---|---|---|---|---|---|---|---|---|---|---|
| MEUR | Q4 2020 Q4 2020 Q3 2020 Q3 2020 Q2 2020 Q2 2020 Q1 2020 Q1 2020 | 2020 | 2020 | |||||||
| Operating net sales | 1,044.1 | 1,044.1 | 939.9 | 939.9 | 896.6 | 896.6 | 889.9 | 889.9 | 3,770.5 | 3,770.5 |
| Revenue adjustment | -6.1 | -6.1 | - | - | - | - | - | - | -6.1 | -6.1 |
| Net sales | 1,038.0 | 1,038.0 | 939.9 | 939.9 | 896.6 | 896.6 | 889.9 | 889.9 | 3,764.4 | 3,764.4 |
| Adjusted gross earnings | 652.3 | 652.3 | 599.7 | 599.7 | 550.7 | 550.7 | 571.6 | 571.6 | 2,374.3 | 2,374.3 |
| Adjusted gross margin, % | 62.5 | 62.5 | 63.8 | 63.8 | 61.4 | 61.4 | 64.2 | 64.2 | 63.0 | 63.0 |
| Adjusted operating earnings (EBITDA) |
414.6 | 414.6 | 347.2 | 347.2 | 362.6 | 362.6 | 287.2 | 287.2 | 1,411.6 | 1,411.6 |
| Adjusted EBITDA margin, % | 39.7 | 39.7 | 36.9 | 36.9 | 40.4 | 40.4 | 32.3 | 32.3 | 37.4 | 37.4 |
| Adjusted operating earnings (EBIT1) | 299.7 | 287.2 | 263.2 | 250.1 | 240.0 | 226.5 | 206.6 | 192.4 | 1,009.5 | 956.2 |
| Adjusted operating margin, % | 28.7 | 27.5 | 28.0 | 26.6 | 26.8 | 25.3 | 23.2 | 21.6 | 26.8 | 25.4 |
| Earnings before taxes, excluding | ||||||||||
| adjustments | 292.4 | 279.9 | 255.3 | 242.2 | 233.6 | 220.1 | 200.8 | 186.6 | 982.1 | 928.8 |
| -Amortisation surplus values (PPA) | -12.5 | - | -13.1 | - | -13.5 | - | -14.2 | - | -53.3 | - |
| -Other non-recurring items | -34.2 | -34.2 | - | - | -135.0 | -135.0 | - | - | -169.2 | -169.2 |
| Total adjustments (before taxes) | -46.7 | -34.2 | -13.1 | - | -148.5 | -135.0 | -14.2 | - | -222.5 | -169.2 |
| Earnings before taxes | 245.7 | 245.7 | 242.2 | 242.2 | 85.1 | 85.1 | 186.6 | 186.6 | 759.6 | 759.6 |
| Net earnings | 202.5 | 202.5 | 198.6 | 198.6 | 70.6 | 70.6 | 153.0 | 153.0 | 624.7 | 624.7 |
| Net earnings, excl. adjustments | 239.8 | 229.5 | 209.3 | 198.6 | 191.6 | 180.5 | 164.6 | 153.0 | 805.3 | 761.6 |
| Earnings per share, Euro cent | 7.8 | 7.8 | 7.6 | 7.6 | 2.7 | 2.7 | 5.9 | 5.9 | 24.0 | 24.0 |
| Earnings per share, excl. | ||||||||||
| adjustments, Euro cent | 9.2 | 8.8 | 8.1 | 7.6 | 7.4 | 6.9 | 6.4 | 5.9 | 31.1 | 29.3 |
| MEUR | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | 2021 |
|---|---|---|---|---|---|
| Net sales | 4.3 | 2.5 | 8.5 | 7.6 | 15.4 |
| Administration expenses | -6.5 | -5.7 | -15.0 | -11.3 | -29.0 |
| Operating earnings | -2.2 | -3.2 | -6.5 | -3.7 | -13.6 |
| Earnings from shares in Group companies | 61.7 | 0.6 | 202.5 | 0.6 | 0.6 |
| Interest income and expenses, net | 79.2 | -3.9 | 81.2 | -1.4 | -8.7 |
| Appropriations | - | - | - | - | 7.3 |
| Earnings before taxes | 138.7 | -6.5 | 277.2 | -4.5 | -14.4 |
| Taxes | -16.0 | 1.3 | -15.7 | 1.0 | 2.9 |
| Net earnings | 122.7 | -5.2 | 261.5 | -3.5 | -11.5 |
| MEUR | 30/6 2022 | 30/6 2021 31/12 2021 | |
|---|---|---|---|
| Total fixed assets | 12,414.3 | 9,007.9 | 11,252.5 |
| Total current receivables | 1,485.6 | 1,792.3 | 1,738.7 |
| Cash and cash equivalents | 18.5 | 41.1 | 93.0 |
| Total current assets | 1,504.1 | 1,833.4 | 1,831.7 |
| Total assets | 13,918.4 | 10,841.3 | 13,084.2 |
| Total shareholders' equity | 6,577.4 | 4,951.6 | 6,647.6 |
| Untaxed reserves | - | 7.5 | - |
| Total long-term liabilities | 3,353.1 | 1,750.8 | 1,993.9 |
| Total short-term liabilities | 3,987.9 | 4,131.4 | 4,442.7 |
| Total equity and liabilities | 13,918.4 | 10,841.3 | 13,084.2 |
In addition to the financial measures as required by the financial reporting framework based on IFRS, this report also includes other measures and indicators that are used to follow-up, analyze and manage the business. These measures also provide Hexagon stakeholders with useful financial information on the Group's financial position, performance and development in a consistent way. Below is a list of definitions of measures and indicators used in this report.
| Americas | North, South and Central America |
|---|---|
| Asia | Asia, Australia and New Zealand |
| EMEA | Europe, Middle East and Africa |
| GES | Geospatial Enterprise Solutions |
| IES | Industrial Enterprise Solutions |
| Amortisation of surplus values | When a company is acquired, the purchase consideration is allocated to the identified assets and liabilities of the company. Intangible assets are most often allocated the substantial part of the purchase consideration. The amortisation of surplus values is defined as the difference between the amortisation of such identified intangible assets and what the amortisation would have been in the acquired company had the acquisition not taken place at all |
|---|---|
| Adjusted gross earnings | Operational net sales less cost of goods sold excluding adjustments related to cost of goods |
| Adjusted gross margin | sold Adjusted gross earnings divided by operating net sales |
| Adjusted operating earnings (EBIT1) |
Operating earnings excluding capital gains on shares in group companies and adjustments. Adjustments are excluded to facilitate the understanding of the Group´s operational development and to give comparable numbers between periods |
| Adjusted operating earnings (EBITDA) |
Adjusted operating earnings (EBIT 1) excluding amortisation, depreciation and impairment of fixed assets. The measure is presented to give depiction of the result generated by the operating activities |
| Adjusted EBITDA margin | Adjusted operating earnings (EBITDA) as a percentage of operating net sales |
| Adjusted operating margin | Adjusted operating earnings (EBIT1) as a percentage of operating net sales |
| Adjustments | Adjustments consists of expenses related to the share programme (LTIP), amortisation of surplus values (PPA) and non-recurring items which refers to income and expenses that are not expected to appear on a regular basis and impact comparability between periods |
| Capital employed | Total assets less non-interest-bearing liabilities |
| Capital turnover rate | Net sales divided by average capital employed |
| Cash conversion | Operating cash flow excluding interest, tax payments and non-recurring items divided by operating earnings (EBIT1) |
| Cash flow per share | Cash flow from operations, after change in working capital, excluding non-recurring items divided by average number of shares |
| Earnings per share | Net earnings excluding non-controlling interest divided by average number of shares |
| Equity ratio | Shareholders' equity including non-controlling interests as a percentage of total assets |
| Interest coverage ratio | Earnings before taxes plus financial expenses divided by financial expenses |
| Investments | Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestitures of subsidiaries |
| Net debt | Interest-bearing liabilities including pension liabilities and interest-bearing provisions less cash and cash equivalents |
| Net indebtedness | Interest-bearing liabilities less interest-bearing current receivables and liquid assets divided by shareholders' equity excluding non-controlling interests |
| Organic growth | Net sales compared to prior period excluding acquisitions and divestments and adjusted for currency exchange movements |
| Operating net sales | Net sales adjusted by the difference between fair value and book-value of deferred revenue regarding acquired businesses. |
| Profit margin before taxes | Earnings before taxes as a percentage of net sales |
| Return on capital employed (12-month average) |
Twelve months to end of period earnings after financial items, excluding adjustments, plus financial expenses as a percentage of twelve months to end of period average capital employed. The twelve months average capital employed is based on average quarterly capital employed |
| Return on shareholders' equity (12-month average) |
Twelve months to end of period net earnings excluding non-controlling interests as a percentage of twelve months to end of period average shareholders' equity excluding non controlling interests last twelve months. The twelve months average shareholders' equity is based on quarterly average shareholders' equity |
| Shareholders' equity per share | Shareholders' equity excluding non-controlling interests divided by the number of shares at year-end |
| Share price | Last settled transaction on Nasdaq Stockholm on the last business day for the period |
Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications. Our technologies are shaping urban and production ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future. Hexagon (Nasdaq Stockholm: HEXA B) has approximately 22,000 employees in 50 countries and net sales of approximately 4.3bn EUR. Learn more at hexagon.com and follow us @HexagonAB.
Hexagon gives financial information at the following occasions:
Interim Report Q3 2022 27 October 2022 Year-End Report 2022 1 February 2023
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 second quarter 2022 will be presented on 27 July at 10:00 CET at a telephone conference.
Please view instructions at Hexagon's website on how to participate.
Maria Luthström, Head of Sustainability and Investor Relations, Hexagon AB +46 8 601 26 27, [email protected]
This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 27 July 2022.
This communication may contain forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Hexagon disclaims any intention or obligation to update these forward-looking statements.
Hexagon AB [publ] P.O. Box 3692 SE- 103 59 Stockholm Fax: +46 8 601 26 21 Phone: +46 8 601 26 20 Registration number: 556190-4771 Registered Office: Stockholm Sweden hexagon.com
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