Hexagon Ab Class B · OMXSTO:HEXA_B

Hexagon Ab Class B — Q1 2006 Earnings Presentation

25 slides from Hexagon Ab Class B's earnings presentation, May 4, 2006

  1. Slide 1: Interim Report Q1 2006

    Interim Report Q1 2006

  2. Slide 2: Agenda

    Agenda 4 May 2006 • Summary Q1 2006 • Business areas • Events after end of Q1 2006 • Outlook 2006 2

  3. Slide 3: Summary Q1 2006

    Summary Q1 2006 ©) HEXAGON

  4. Slide 4: Summary Q1 2006

    Summary Q1 2006 ? Order intake increased by 43% to 3 408 MSEK ? Net sales increased by 49% to 3 335 MSEK ? Earnings before tax increased by 112% to 322 MSEK ? Earnings after tax increased by 139% to 263 MSEK ? Earnings per share increased by 92% to 3.73 SEK ? Cash flow per share was -1.90 SEK ? The

  5. Slide 5: Global development, evolution of GNP in %

    Global development, evolution of GNP in % 2 5.2 3.4 8.2 5.7 5.7 4.3 5,3 4,9 4,7 4,8 4,7 4 3,6 3 2,2 1999 2000 2001 2002 2003 2004 2005 2006* 2007* 5

  6. Slide 6: Invoiced Sales

    Invoiced Sales MSEK 2003 2004 2005 2006 14 000 13 500 13 000 12 500 12 000 11 500 11 000 10 500 10 000 9 500 9 000 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 3 month trend 6 month trend 12 month rolling average 6

  7. Slide 7: Recorded and adjusted growth 2006 vs. 2005 by region

    Recorded growth 2006 vs. 2005 2004 2005 Q1 Q2 Q3 Q4 2006 Sweden 7% -9% - 30 % Europe 14 % 9% 40 % NAFTA 49 % 65 % 136 % Asia 25 % 61 % 178 % Other 2% 47 % 550 % Total 16 % 17 % 49 % Adjusted growth 2006 vs. 2005 2004 2005 Q1 Q2 Q3 Q4 2006 Sweden 18 % 8% 3% Europe 7% 10 % 13 % NAFTA 13 % 19 % 19 % As

  8. Slide 8: Non-recurring items Q1 2006

    Non-recurring items Q1 2006 Q1 MSEK 2006 Tradimus capital gain + 97 Restructuring Leica Geosystems - 84 Total non-recurring gains and costs 13 8

  9. Slide 9: Summary Q1 2006

    Summary Q1 2006 Q1 Q1 MSEK 2006 2005 Change Adjusted* Order intake 3 408 2 382 43 % 14 % Net sales 3 335 2 241 49 % 15 % Operating earnings (EBIT1) 388 180 116 % EBIT1 margin, % 11.6 8.0 3.6 % Earnings before interest net 401 180 123 % Earnings before tax 322 152 112 % Earnings after tax 263 110 139

  10. Slide 10: Cash flow Q1 2006

    Cash flow Q1 2006 Q1 Q1 MSEK 2006 2005 Change Cash flow from operations 361 194 86 % Change in working capital - 494 - 242 - 104 % Net cash flow from operations - 133 - 48 - 177 % Net investments in fixed assets - 156 - 82 - 90 % Operating cash flow - 289 - 130 - 122 % 10

  11. Slide 11: Measurement Technologies

    Hexagon Measurement Technologies 11

  12. Slide 12: Measurement Technologies

    Hexagon Measurement Technologies Q1 Q1 Year MSEK 2006 2005 Change 2005 Order intake 2 303 739 212 % 4 525 Net sales 2 276 693 228 % 4 539 Operating earnings (EBIT1) 309 68 354 % 550 Margin, % 13.6 9.8 12.1 Employees at end of period 4 724 12

  13. Slide 13: Measurement Technologies

    Hexagon Measurement Technologies ? All regions and product areas grew significantly ? Organic growth 17 % ? Integration of Hexagon Metrology and Leica Geosystems according to plan ? Extensive market growth ? Europe 13 % ? NAFTA 16 % ? Asia 26 % ? Continued expansion in the Asian markets ? Factory fo

  14. Slide 14: Synergies Hexagon Metrology and Leica Geosystems

    Synergies Hexagon Metrology and Leica Geosystems MSEK MCHF 300 50 250 40 270 200 30 150 200 20 100 150 100 10 50 0 0 FY 2006E FY 2007E FY 2008E FY 2009E Synergies of around 270 MSEK p.a. to be realised over 3-4 years We will overachieve in 2006 14

  15. Slide 15: Polymers

    Hexagon Polymers ©) HEXAGON 15

  16. Slide 16: Polymers

    Hexagon Polymers Q1 Q1 Year MSEK 2006 2005 Change 2005 Order intake 652 542 21 % 2 213 Net sales 636 530 20 % 2 205 Operating earnings (EBIT1) 64 70 -9% 258 Margin, % 10.1 13.2 11.7 Employees at end of period 1 694 16

  17. Slide 17: Polymers

    Hexagon Polymers ? Strong volume growth, organic growth 14 % ? EBIT margin recovered from Q4 but still 1.6 % below -05 ? Continued increases in raw material prices ? Started construction of plant in Qingdao, China ? Will start operations Q1 2007 ? Started planning for establishing production facilit

  18. Slide 18: Engineering

    Hexagon Engineering ©) HEXAGON 18

  19. Slide 19: Engineering

    Hexagon Engineering Q1 Q1 Year MSEK 2006 2005 Change 2005 Order intake 453 441 3% 1 649 Net sales 424 436 -3% 1 665 Operating earnings (EBIT1) 23 22 5% 80 Margin, % 5.4 5.0 4.8 Employees at end of period 974 19

  20. Slide 20: Engineering

    Hexagon Engineering ? Strong surge in metals prices balanced with surcharges ? Organic growth 4 % ? Improvement in all entities except for EBP (-2.3 MSEK) ? EBP recovery plan: ? Improve productivity in new press line ? Continue successful market penetration ? Time plan: 18 months 20

  21. Slide 21: Events after end of Q1 2006

    Events after end of Q1 2006 ©) HEXAGON 21

  22. Slide 22: Rights issue 2006

    Rights issue 2006 Background ? To strengthen the capital structure after the acquisition of Leica Geosystems and to finance the continuous expansion of Hexagon Preferential rights ? Four (4) shares confer the right to subscribe for one (1) share Issue price ? SEK 155 per share Subscription period ?

  23. Slide 23: Outlook 2006

    Outlook 2006 ©) HEXAGON

  24. Slide 24: Outlook 2006

    Outlook 2006 ? Enable further growth in sales and earnings by strengthening: ? Market position ? Product portfolio ? Structure ? Result expected to increase by at least 15 % per share ? Proposed dividend is 3.00 SEK, an increase by 50 % 24

  25. Slide 25: Precision in everything

    Precision in everything 25

Hexagon — Q1 2006 Earnings Presentation on 6ix