Hexagon

Quarterly Report • May 6, 2009

Interim Report 1 January ─ 31 March 2009

Press information 6 May 2009

First quarter 2009 1)

• Order intake decreased by -23 2) per cent to 2 989 MSEK (3 323).
• Net sales decreased by -20 2) per cent to 3 038 MSEK (3 175).
• Operating earnings amounted to 405 MSEK (560).
• Earnings before taxes, excluding non-recurring items 3) amounted to 350 MSEK (490). Including these items earnings before taxes amounted to 175 MSEK (490).
• Net earnings, excluding non-recurring items3) amounted to 302 MSEK (427). Including these items, net earnings amounted to 151 MSEK (427).
• Earnings per share, excluding non-recurring items3), amounted to 1.14 SEK (1.60). Including these items, earnings per share amounted to 0.56 SEK (1.60).

Comments from Hexagon's CEO Ola Rollén

"During the first quarter Hexagon has improved its market position and as governmental stimulus programmes around the world start to have an impact on infrastructural investments, Hexagon's growth is expected to resume

The first quarter of 2009 saw, as expected, a dramatic drop in demand. Hexagon's business was reduced in North America as well as in Europe whilst Asia continued its growth. During the past six months, we have adapted our organisation to the new demand levels, and, as a consequence, we can report a 14.7 per cent margin in our core business, Measurement Technologies, in spite of an 18 per cent volume drop. The cost reduction initiative is delivering savings in the range of 128 MSEK in the quarter. We are now, once again, turning our focus to opportunities for growth."

MSEK	Q1 2009	Q1 2008 1)	Change %
Order intake	2 989	3 323	-23 2)
Net sales	3 038	3 175	-20 2)
Operating earnings (EBIT1)	405	560	-28
Operating margin, % Earnings before taxes excl.	13.3	17.6	-4.3
non-recurring items	350	490	-29
Non-recurring items	-175	-	n.a.
Earnings before taxes	175	490	n.a.
Net earnings Earnings per share excl. non	151	427	n.a.
recurring items, SEK	1.14	1.60	-29
Earnings per share, SEK	0.56	1.60	-65

1) Excluding Hexpol AB which was de-consolidated from Hexagon AB as of 1 June 2008.

2) Adjusted to fixed exchange rates and a comparable group structure (organic growth).

3) Restructuring cost of 175 MSEK related to cost reduction programme.

Hexagon's performance excluding Hexpol 1)

The table below shows Hexagon's performance including and excluding non-recurring items and the subsidiary Hexpol, which was spun off during the second quarter 2008 to Hexagon's shareholders.

MSEK	Q1 2009	Q1 2008
Order intake excl. Hexpol	2 989	3 323
Order intake Hexpol	-	834
Order intake	2 989	4 157
Net sales excl. Hexpol	3 038	3 175
Net sales Hexpol	-	852
Net sales	3 038	4 027
Operating earnings (EBIT1)	405	560
Operating margin, %	13.3	17.6
Interest income and expenses, net	-55	-70
Earnings before taxes excl. non recurring items	350	490
Taxes	-48	-63
Net earnings excl. non-recurring items	302	427
Earnings per share excl. non recurring items	1.14	1.60
Non-recurring items	-175	-
Tax on non-recurring items	24	-
Net earnings excl. Hexpol	151	427
Earnings per share	0.56	1.60
Hexpol net earnings	-	51
Total net earnings	151	478
Earnings per share	0.56	1.79

1) Hexpol AB was de-consolidated from Hexagon as of 1 June 2008.

First quarter 2009

The first quarter of 2009 displays, as predicted, a significant decline in demand for Hexagon's products. The year had a weak start with a gradual recovery throughout the quarter. Construction and infrastructure related measurement products are showing signs of recovery whilst our industrial measurement products still suffer from a weak investment climate. We expect a slight improvement in order intake in the coming quarters as the inventory adjustment cycle is close to its end. The end-user demand will, however, remain at a lower level than last year.

As in the down turn of 2001/02, our industrial customers are delaying their purchases until the last month in the quarter forcing us to build up significant working capital at quarter end, which is why forecasting and capital rationalisation become a challenge. This behaviour in combination with a new, small lot size, ordering pattern obstructs the possibility of drawing conclusions comparing this year's order intake to the previous year for the group.

During the fourth quarter 2008 and the first quarter 2009 Hexagon has taken advantage of the weaker demand situation to accelerate rationalisations and extract synergies from acquisitions made in recent years. Previously decided rationalisation projects have, in view of the situation, been carried out in just six months time. All in all, the cost savings affect approximately 1 200 employees including both lay-offs and temporary leaves of absence. As a consequence, Hexagon reports restructuring charges of 175 MSEK in the first quarter 2009. Annualised savings amount to approximately 900 MSEK compared to the cost level seen in September 2008. Savings were 128 MSEK in the first quarter 2009. We expect to reach the full savings rate by the fourth quarter of 2009. The rationalisation programme implemented during the past six months enables Hexagon to improve its EBIT margins, especially once the volumes start to grow again.

Market trends

EMEA market trends

The demand for Hexagon's products in EMEA was significantly reduced during the first quarter. The organic growth in order intake and net sales was -33 and -29 per cent, respectively. For the Group's core business, Measurement Technologies (MT), order intake and net sales organic growth was -29 and -27 per cent, respectively.

Hexagon's customers continued to reduce inventory levels during the quarter. Reductions in sales volumes were recorded in both the industrial, as well as, construction related segments across Western Europe. Eastern Europe also recorded negative growth in the quarter. Russia, the Middle East and Africa continued to grow but at significantly lower growth rates. By the end of the quarter the Geosystems business saw signs of a bottoming out in demand decline. The Metrology business did not see such a pattern. Metrology is usually later in the cycle as well as more volatile in demand fluctuations. The construction sector is suffering from weak demand for residential housing products. The aerospace and the alternative energy industries showed continuous growth in the quarter. Hexagon's participation in the Galileo project continued according to plan.

Hexagon recorded its first orders from the various European stimulus programmes in the quarter.

Americas market trends

Americas displayed organic growth in order intake and net sales of -27 and -26 per cent, respectively, in the first quarter. A similar situation as in EMEA occurred, where customers reduced inventory levels thus reducing demand for Hexagon's products.

The negative trend within the residential housing and automotive segments continued during the first quarter. The Metrology business is experiencing a shift from new systems sales to after market services. The Airborne sensor business had an excellent quarter in the region. The UAV (Unmanned Airborne Vehicles) business in North America is continuing to grow at double digit levels. Hexagon recorded its first orders related to the US stimulus programme in the quarter.

South America, led by Brazil, is seeing a recovery in demand for Metrology and Geosystems products.

Asia market trends

Asia continued its organic growth during the first quarter. The organic growth in order intake and net sales was 7 and 11 per cent, respectively.

The growth was obtained from, primarily, infrastructural activities in China. Chinese car manufacturers recorded strong sales and are planning capacity increases. In the region several submarkets and industries, related to mining and agriculture, grew at double digit rates. Hexagon noted a slow down in demand from the electronics industries during the first quarter. India, Korea and China in total, however, all displayed strong growth.

MSEK	Q1 2009	Q1 2008	Change % 1)
EMEA	1 497	2 347	-29
Americas	753	995	-26
Asia	788	685	11
Total	3 038	4 027	-20

Net sales per region during the first quarter

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

Market outlook 2009

Europe and North America are expected to show negative organic growth for the first half of 2009. Hexagon expects an improved demand situation in these markets as infrastructural government stimulus funds are being spent and the inventory reduction cycle is concluded.

South America is expected to resume its organic growth already in the first half of 2009. Russia and Africa are expected to grow throughout the year.

Asia is expected to continue its growth due to the momentum Hexagon has in combination with good demand from the infrastructure related construction industry, primarily in China. Already presented stimulus programmes are expected to underpin this growth.

Net sales and earnings

Order intake, excluding Hexpol, amounted to 2 989 MSEK (3 323) and net sales amounted to 3 038 MSEK (3 175) in the first quarter. Using fixed exchange rates and a comparable group structure, order intake decreased by -23 per cent and net sales decreased by -20 per cent.

Operating earnings (EBIT1), excluding Hexpol, amounted to 405 MSEK (560), which corresponds to an operating margin of 13.3 per cent (17.6). Operating earnings were positively affected by exchange rate movements of 50 MSEK.

The financial net amounted to -55 MSEK (-81) in the first quarter. The decrease is mainly explained by lower interest rates.

Due to the deteriorating demand situation, Hexagon has accelerated its cost reduction programme. Reductions in workforce in combination with furloughs during the fourth quarter 2008 and during the first quarter 2009 are expected to bring annualised savings of approximately 900 MSEK with initial effect as of the first quarter. These measures result in non-recurring expenses of 175 MSEK in the first quarter 2009.

Earnings before taxes, excluding Hexpol and non-recurring items, amounted to 350 MSEK (490). Including these items, earnings before taxes was 175 MSEK (562). Earnings were positively affected by exchange rate movements of 45 MSEK.

Net earnings, excluding Hexpol, amounted to 151 MSEK (427), or 0.56 SEK (1.60) per share. Including Hexpol, net earnings amounted to 151 MSEK (478).

		Net sales and earnings per business area

	Net sales		Earnings
MSEK	Q1 2009	Q1 2008	Change % 1)	Q1 2009	Q1 2008	Change %
Hexagon MT	2 942	2 974	-18	433	566	-231)
Hexpol 2)	-	852	n.a.	-	83	n.a.
Other operations	96	201	-52	-15	8	n.a.
Group costs and eliminations				-13	-14	7
Operating earnings (EBIT1)				405	643	-37
Per cent of net sales				13.3	16.0
Interest income and expenses, net				-55	-81	-32
Earnings before non-recurring
items				350	562	-38
Non-recurring items				-175	-	n.a.
Net sales	3 038	4 027	-20
Earnings before taxes				175	562	n.a.

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

2) Hexpol AB was de-consolidated from Hexagon AB as of 1 June 2008.

	Movement 1)	Income - cost	Profit impact
CHF	Strengthened	Negative	Negative
USD	Strengthened	Positive	Positive
EUR	Strengthened	Positive	Positive
EBIT1, MSEK			50

Movements in the most important currencies and earnings impact in the first quarter

1) as compared to SEK.

Profitability

Capital employed, defined as total assets less non-interest bearing liabilities, increased to 23 658 MSEK (20 676). Return on average capital employed, excluding non-recurring items, for the last twelve months was 10.9 per cent (14.8). Return on average shareholders' equity for the last twelve months was 14.3 per cent (19.4). The capital turnover rate was 0.5 times (0.8).

Financial position

Shareholders' equity, including minority interests, increased to 12 191 MSEK (10 123). The equity ratio increased to 45 per cent (41). Hexagon's total assets increased to 26 967 MSEK (24 796).

Hexagon's primary source for financing the company's operations is a syndicated loan facility amounting to 1 billion EUR that expires in 2011. The loan facility includes certain financial covenants to be fulfilled in order to avoid additional financing cost. Hexagon met all its financial covenants in the first quarter 2009 and expects to meet them during the remainder of 2009.

On 31 March 2009, cash and unutilized credit limits totalled 2 526 MSEK (2 753). Hexagon's net debt was 10 158 MSEK (9 656). The net indebtedness was 0.83 times (0.95). Interest coverage ratio was 4.0 (7.2).

Cash flow

During the quarter, cash flow from operations before changes in working capital amounted to 357 MSEK (653), corresponding to 1.35 SEK (2.46) per share. The cash flow was adversely affected by the restructuring programme, amounting to -47 MSEK (-). Cash flow from operations was 266 MSEK (180), corresponding to 1.01 SEK (0.68) per share. The operating cash flow after restructuring was -15 MSEK (-30).

The programme to reduce the working capital developed according to plan displaying a small negative cash flow due to liquidation of accounts payables. The inventory level is beginning to drop as manufacturing plans are aligned with demand. We expect a positive result from the programme in the quarters to come.

Investments and depreciation

Hexagon's net investments, excluding acquisitions and divestitures, were -234 MSEK (-210). Depreciation and write-downs during the quarter was -194 MSEK (-178).

Tax rate

The Group's tax cost for the quarter totalled -24 MSEK (-84), corresponding to an effective tax rate of 14 per cent (15). The tax cost is affected by the fact that the majority of Hexagon's earnings is generated in foreign subsidiaries located in countries where the tax rates differ from the one in Sweden.

Employees

The average number of employees in Hexagon during the quarter was 8 036 (9 943). Excluding Hexpol, the average number of employees at the end of Q1 2008 was 7 628. The number of employees at the end of the quarter was 8 084 (10 314). Excluding Hexpol, the number of employees at the end of Q1 2008 was 7 977.

Share data

Earnings per share for the quarter amounted to 0.56 SEK (1.79). On 31 March 2009, equity per share was 45.93 SEK (37.98), and the share price was 40 SEK (121 SEK). At full exercise of existing stock option programmes, the dilution effect would be 1.0 per cent of the share capital and 0.7 per cent of the number of votes.

Business area net sales and earnings

Measurement Technologies

Order intake amounted to 2 934 MSEK (3 149) during the first quarter. Net sales amounted to 2 942 MSEK (2 974). Using fixed exchange rates and a comparable structure, order intake decreased by -21 per cent and net sales by -18 per cent. Operating earnings (EBIT1) amounted to 433 MSEK (566), which corresponds to an operating margin of 15 per cent (19).

The number of employees by the end of the quarter was 7 735 (7 552).

MSEK	Q1 2009	Q1 2008	Change %
Order intake	2 934	3 149	-21 1)
Net sales	2 942	2 974	-18 1)
Operating earnings (EBIT1)	433	566	-23
Operating margin, %	14.7	19.0	-4.3

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

Measurement Technologies applications

Measurement Technologies consist of Geosystems, that mainly serves the construction, infrastructural and geographic information systems (GIS) markets, it also serves industrial and consumer related applications with Metrology systems. Hexagon sells its proprietary technology to OEMs, below called Technology. The common denominator for these applications is the core technologies that tie them together. For definitions please refer to the 2008 Annual Report page 21.

	Order intake			Net sales
MSEK	Q1 2009	Q1 2008	Change % 1)	Q1 2009	Q1 2008	Change % 1)
Geosystems	1 727	1 842	-18	1 671	1 709	-18
Metrology	1 013	1 173	-29	1 090	1 131	-23
Technology	194	134	22	181	134	9
Total Hexagon MT	2 934	3 149	-21	2 942	2 974	-18

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

Other operations

Order intake amounted to 55 MSEK (174) during the first quarter. Net sales amounted to 96 MSEK (201). Using fixed exchange rates and a comparable structure, order intake and net sales decreased by -68 and -52 per cent, respectively. The negative trend is caused by the severe downturn the Swedish vehicle industry is enduring. Operating earnings (EBIT1) amounted to -15 MSEK (8).

The number of employees by the end of the quarter was 339 (414).

MSEK	Q1 2009	Q1 2008	Change %
Order intake	55	174	-681)
Net sales	96	201	-521)
Operating earnings (EBIT1)	-15	8	n.a.

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

Associated companies

Associated companies affected Hexagon's earnings during the quarter by -2 MSEK (1).

Parent company

The parent company's earnings after financial items were -51 MSEK (-428). The solvency ratio of the parent company was 36 per cent (33). The equity was 6 748 MSEK (6 347). Liquid funds including unutilised credit limits was 1 615 MSEK (2 026).

Accounting principles

Hexagon applies International Financial Reporting Standards (IFRS) as adopted by the European Union. Hexagon's report for the Group is designed 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 2008.

Hexagon has elected to account for the distribution of Hexpol to its shareholders as a reduction of shareholders' equity. Hexpol is consequently not treated as a discontinued operation in the Hexagon consolidated accounts.

Presentation of financial statements

An amendment to IAS 1 concerns the form for presentation of financial position, comprehensive income and cash flow and includes a requirement for statement of comprehensive income. As a consequence of the amendment, Hexagon reports an additional statement showing total comprehensive income for the period in connection with the income statement. The new statement includes items previously reported under 'Changes in shareholder's equity'.

Operating segments

As of financial year 2009 Hexagon applies the "IFRS 8 Operating Segments" standard. The new standard sets disclosure requirements for the Group's Operating Segments and replaces the need to define primary and secondary segments based on operating and geographical segments. Adoption of this standard has a minor impact on Hexagons financial reporting.

Hexagon's Board of Directors is responsible for determining the Group's overall objectives, developing and monitoring the overall strategy, decisions on major acquisitions, divestments and investments, and ongoing monitoring of operations.

The CEO is responsible for leading and controlling Hexagon's operations in accordance with the strategy determined by the Board. Group Management is responsible for overall business development, allocating financial resources between the business areas, and matters involving financing and capital structure. Group management is therefore equal to what IFRS 8 defines as the Group's chief operating decision maker and is the function that internally within the Hexagon Group allocates resources and evaluates results. The Group's chief operating decision maker assesses the performance in the operating segments based on earnings before financial items, excluding non-recurring items. Financial items and taxes are reported for the Group as a whole.

Hexagon's operations are organised, governed and reported on the basis of the two operating segments Hexagon Measurement Technologies and Other Operations. The two segments have separate product offerings, customer groups and geographical exposure and hence differentiated risk composition. No sales between the two operating segments exist. Both segments report using the same accounting principles as the Group. Hexagons internal reporting, representing the base for detailed review and analysis, is designed in alignment with the described division into operating segments. Sales are consequently analysed geographically.

The operating segment Hexagon Measurement Technologies comprises of the product areas Geosystems, Metrology and Technology and to that relating aftermarket services and support. The product portfolio consists of systems that are designed to measure in one, two or three dimensions, position and update objects. The portfolio's different measuring instruments are built upon common core technologies and have to a large extent coordinated development and production.

The operating segment Other Operations is mainly focused towards the transportation industry including cars as well as heavy vehicles. Other Operations has its business in the Nordic region.

Risks and uncertainty factors

As an international Group with a wide geographic scope, Hexagon is exposed to a number of business and financial risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity, the giving of credit, raw materials and financial instruments. Risk management in Hexagon aims to identify, control and reduce risks. This work begins with an assessment of the probability of risks occurring and their potential effect on the Group. For a detailed description of risks and risk management, refer to the Annual Report for 2008. Due to the financial crisis, there is a risk for increased cost for, and lack of availability of, refinancing. Hexagon will continuously monitor the credit market as well as safeguard the Group's financial position via release of working capital and improved cash flow to ensure access to credit. No significant risks other than the risks referred to above are deemed to be currently relevant.

Subsequent events

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

Outlook 2009

The first half of the year 2009 will be challenging. Hexagon is responding to the demand drop by cutting cost, reducing workforce and furloughing of personnel as well as delaying investments. As governmental stimulus programmes around the world start to have an impact on infrastructural investments, Hexagon's growth is expected to resume.

Telephone conference 6 May

The interim report will be presented on 6 May at 15:00 CET at a telephone conference. For participation, please see instructions at the Hexagon website.

Financial information

Hexagon gives financial information at the following occasions:

Interim Report Q2 2009	6 August 2009
Interim Report Q3 2009	28 October 2009
Year-end Report 2009	February 2010

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

Stockholm, Sweden, 6 May 2009

Ola Rollén President and CEO This Interim Report has not been audited by the company's auditors.

This interim report is a type of information that Hexagon AB (publ) is obliged to disclose in accordance with the Swedish Securities Market Act and /or the Financial Instruments Trading Act. The information was submitted for publication on 6 May 2009 at 12:00 CET.

Consolidated income statement in summary

MSEK	Q1 2009	Q1 2008	2008
Net sales	3 038	4 027	14 479
Cost of goods sold	-1 609	-2 328	-7 881
Gross profit	1 429	1 699	6 598
Sales and administration costs	-1 197	-1 057	-4 151
Earnings from shares in associated companies	-2	1	1
Operating earnings 1)	230	643	2 448
Interest income and expenses, net	-55	-81	-319
Earnings after financial items	175	562	2 129
Taxes	-24	-84	-270
Net earnings 2)	151	478	1 859
1) of which non-recurring items	-175	-	-100
2) of which minority interest	2	2	12
Including depreciation and write-downs of 3)	-194	-178	-719
3) of which amortization on excess values identified at acquisition	-30	-24	-99
Earnings per share, SEK	0.56	1.79	6.96
Earnings per share after dilution, SEK	0.56	1.79	6.95
Shareholder's equity per share, SEK	45.93	37.98	45.26
Closing number of shares, thousand	264 208	265 350	264 208
Average number of shares, thousand	264 208	265 350	265 317
Average number of shares after dilution,
thousand	264 817	265 733	265 768

Consolidated comprehensive income

MSEK	Q1 2009	Q1 2008	2008
Net earnings	151	478	1 859
Other comprehensive income:
Exchange rate differences	-61	226	3 688
Effect of hedging of net investments in foreign operations	135	-859	- 2 653
Cash flow hedges, net	-4	8	1
Tax attributable to Other comprehensive income	-40	226	607
Other comprehensive income, net of tax	30	-399	1 643
Total comprehensive income for the period	181	79	3 502
Attributable to:
Parent company shareholders	177	77	3 483
Minority interest	4	2	19

Consolidated balance sheet in summary

	31/3	31/3	31/12
MSEK	2009	2008	2008
Intangible fixed assets	16 962	14 367	16 832
Tangible fixed assets	1 896	2 270	1 903
Financial fixed assets	104	71	109
Deferred tax assets	520	661	587
Total fixed assets	19 482	17 369	19 431
Inventories	3 249	2 747	3 294
Accounts receivable	2 928	3 142	3 161
Other receivables	416	451	439
Prepaid expenses and accrued income	310	274	257
Total current receivables	3 654	3 867	3 857
Cash and cash equivalents	582	813	919
Total current assets	7 485	7 427	8 070
Total assets	26 967	24 796	27 501
Attributable to the parent company's shareholders	12 134	10 077	11 957
Attributable to minority	57	46	57
Total shareholders' equity	12 191	10 123	12 014
Interest bearing liabilities	10 716	9 720	10 509
Other liabilities	19	20	26
Pension provisions	433	436	452
Deferred tax provisions	282	638	331
Other provisions	192	179	174
Total long-term liabilities	11 642	10 993	11 492
Other provisions	428	220	339
Interest bearing liabilities	71	186	500
Accounts payable	898	1 378	1 185
Other liabilities	525	779	545
Accrued expenses and deferred income	1 212	1 117	1 426
Total short-term liabilities	3 134	3 680	3 995
Total equity and liabilities	26 967	24 796	27 501

Changes in shareholders' equity

MSEK		31/3 2009	31/3 2008	31/12 2008
Opening shareholders' equity		12 014	10 046	10 046
Total comprehensive income for the period 1)		181	79	3 502
Dividend		-4	-	-1 514
Stock option payments		-	-	27
Effect of acquisitions and divestments of subsidiaries		-2	-3	-1
Share-based payments		2	1	6
Repurchase of shares		-	-	-52
	Closing shareholders' equity 2)	12 191	10 123	12 014
1) of which:	Parent company shareholders	177	77	3 483
	Minorities	4	2	19
2) of which:	Parent company shareholders	12 134	10 077	11 957
	Minorities	57	46	57

Number of shares, analysis

		Nominal value, SEK	Series A	Series B	Total
	2008-12-31 total issued	2	11 812 500	253 707 270	265 519 770
Repurchase		2	-	-1 311 442	-1 311 442
	2008-12-31 total issued and outstanding	2	11 812 500	252 395 828	264 208 328
	2009-03-31 total issued and outstanding	2	11 812 500	252 395 828	264 208 328

Consolidated cash flow analysis

	Q1	Q1
MSEK	2009	2008	2008
Cash flow from operations before change in
working capital	357	653	2 587
Cash flow from change in working capital	-91	-473	-832
Cash flow from operations	266	180	1 755
Cash flow from ordinary investing activities	-234	-210	-1 005
Operating cash flow	32	-30	750
Cash flow from restructuring	-47	-	-
Operating cash flow after restructuring	-15	-30	750
Cash flow from other investment activities	-46 2)	-249	-1 048
Dividend	-4	-	-634
Stock option payments	-	-	27
Repurchase of shares	-	-	-52
Cash flow from other financing activities	-282	-459	262
Change in liquid assets 1)	-347	-738	-695

1) The currency effect in liquid assets was 10 MSEK (-61) during the quarter.

2) Acquisitions -50 MSEK and other 4 MSEK.

Key ratios

	Q1	Q1
	2009	2008	2008
Operating margin, %	13.3	16.0	17.6
Profit margin before taxes, %	5.8	14.0	14.7
Return on shareholders' equity, %	14.3	19.4	18.2
Return on capital employed, %	10.9	14.8	12.5
Solvency ratio, %	45.2	40.8	43.7
Net indebtedness	0.83	0.95	0.89
Interest coverage ratio	4.0	7.2	7.0
Average number of shares, thousands	264 208	265 350	265 317
Earnings per share excl. Hexpol, SEK	0.56	1.60	6.63
Earnings per share excl. non-recurring items, SEK	1.14	1.79	7.28
Earnings per share, SEK	0.56	1.79	6.96
Cash flow per share, SEK	1.01	0.68	6.61
Cash flow per share before change in working
capital, SEK	1.35	2.46	9.75
Share price, SEK	40	121	38

Order intake

	2009	2008
MSEK	Q1	Q1	Q2	Q3	Q4	Year
Hexagon MT	2 934	3 149	3 227	3 008	3 167	12 551
- Of which Geosystems	1 727	1 842	1 827	1 628	1 757	7 054
Metrology	1 013	1 173	1 246	1 156	1 263	4 838
Technology	194	134	154	224	147	659
Hexpol 1)	-	834	591	-	-	1 425
Other operations	55	174	198	201	44	617
Group	2 989	4 157	4 016	3 209	3 211	14 593

Net sales

	2009	2008
MSEK	Q1	Q1	Q2	Q3	Q4	Year
Hexagon MT	2 942	2 974	3 135	2 913	3 334	12 356
- Of which Geosystems	1 671	1 709	1 830	1 628	1 779	6 946
Metrology	1 090	1 131	1 168	1 162	1 421	4 882
Technology	181	134	137	123	134	528
Hexpol 1)	-	852	567	-	-	1 419
Other operations	96	201	202	157	144	704
Group	3 038	4 027	3 904	3 070	3 478	14 479

Operating earnings (EBIT1)

	2009	2008
MSEK	Q1	Q1	Q2	Q3	Q4	Year
Hexagon MT	433	566	683	561	659	2 469
Hexpol 1)	-	83	60	-	-	143
Other operations	-15	8	10	1	-13	6
Group costs and eliminations	-13	-14	-19	-19	-18	-70
Group	405	643	734	543	628	2 548
Margin, %	13.3	16.0	18.8	17.7	18.1	17.6

Net sales

	2009	2008
MSEK	Q1	Q1	Q2	Q3	Q4	Year
EMEA	1 497	2 347	2 232	1 630	1 797	8 006
Americas	753	995	947	767	880	3 589
Asia	788	685	725	673	801	2 884
Group	3 038	4 027	3 904	3 070	3 478	14 479

1) Hexpol AB was de-consolidated from Hexagon AB as of 1 June 2008.

	Q1 2009		Q1 2008
MSEK	Acquisit.	Divest.	Acquisit.	Divest.
Intangible fixed assets	12	-	244	-
Other fixed assets	4	-	10	-
Total fixed assets	16	-	254	-
Total current assets	7	-	160	-
Total assets	24	-	414	-
Shareholders' equity incl. minority interests	-	-	-3	-
Total long-term liabilities	-27	-	29	-
Total short-term liabilities	1	-	115	-
Total liabilities	-26	-	141	-
Total net assets	50	-	273	-
Total acquisition cost/ divestment income	-17	-	-292	-
Total acquisition cost/ divestment income	-17	-	-292	-
Adjustment for cash and bank balances in acquired/ divested entities	-	-	17	-
Adjustment for non-paid part of acquisition cost/ divestment income incl. payment of items from
prior year	-33	-	19	-
Cash flow from acquisitions/ divestments	-50	-	-256	-

Acquisitions and divestments during the quarter

Acquired entities have converted to IFRS at the acquisition date, which has entailed a change compared to the accounting standards previously applied. Due to the fact that results from operations and financial position in accordance with IFRS are not available, as well as the absence of materiality of the acquisitions, Hexagon does not present information as to how Hexagon's results would have appeared if the acquisitions were made as of the commencement of the reporting period.

Parent company income statement in summary

	Q1	Q1
MSEK	2009	2008	2008
Net sales	8	6	28
Administration cost	-14	-15	-75
Operating earnings	-6	-9	-47
Earnings from shares in Group companies	-	-	1 688
Interest income and expenses, net	-45	-419	-197
Earnings after financial items	-51	-428	1 444
Tax	13	120	54
Net earnings	-38	-308	1 498

Parent company balance sheet in summary

	31/3	31/3	31/12
MSEK	2009	2008	2008
Total fixed assets	17 750	18 279	17 696
Total current receivables	918	974	828
Cash and cash equivalents	135	204	507
Total current assets	1 053	1 178	1 335
Total assets	18 803	19 457	19 031
Total shareholders' equity	6 748	6 347	6 786
Total long-term liabilities	8 632	9 322	8 315
Total short-term liabilities	3 423	3 788	3 930
Total equity and liabilities	18 803	19 457	19 031

Definitions

Financial definitions

Amortization on excess values	Amortization on the difference between carrying value of intangible fixed assets in acquired subsidiaries and the value Hexagon assigned those assets upon date of acquisition.
Capital employed	Total assets less non-interest bearing liabilities.
Capital turnover rate	Net sales divided by average capital employed
Cash flow	Cash flow from operating activities after change in working capital.
Cash flow per share	Cash flow from operating activities after change in working capital, divided by average number of shares.
Earnings per share	Net earnings divided by average number of shares.
Equity ratio	Shareholders' equity including minority interests as a percentage of total assets.
Interest cover ratio	Earnings after financial items plus financial expenses divided by financial expenses.
Investments	Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestitures of subsidiaries.
Net indebtedness	Interest-bearing liabilities less interest-bearing and liquid assets divided by shareholders' equity excluding minority interests.
Operating earnings (EBIT1)	Operating earnings excluding capital gains on shares in group companies and other non-recurring items.
Operating margin	Operating earnings (EBIT1) as a percentage of net sales.
Profit margin before tax	Earnings after financial items as a percentage of net sales.
Return on capital employed	Twelve months to end of period earnings after financial items, excluding non-recurring items, plus financial expenses as a percentage of twelve months to end of period average capital employed.
Return on equity	Twelve months to end of period net earnings excluding minority interests as a percentage of twelve months to end of period average shareholders' equity excluding minority interests last twelve months.
Shareholders' equity per share	Shareholders' equity excluding minority interests divided by the number of shares at year-end.
Share price	Last settled transaction on NASDAQ OMX Nordic Exchange on the last business day for the period.
Business definitions
Americas	North, South and Central America.
Asia	Asia, Australia and New Zealand.
EMEA	Europe, Middle East and Africa.