Slide 1: Hexagon Q1 2023 Interim Report
Hexagon Q1 2023 Interim Report 28 April 2023 1 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 2: Agenda
Agenda • Financial highlights • Geographic and business review • Closing remarks and Q&A 2 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 3: Financial highlights
Financial highlights 3 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 4: Strong momentum into 2023
Strong momentum into 2023 Change Change Key financials, MEUR Q1 2023 Q1 2022 % % Sales bridge Operating net sales 1,286.6 1,163.4 81) Q1 2022, MEUR 1,163.4 Geospatial Enterprise Solutions net sales 617.0 582.7 51) Structure, % 2% Industrial Enterprise solutions net sales 669.6 580.7 111) Currency, %
Slide 5: Standout organic growth in IES, strong performance in Geosystems
Standout organic growth in IES, strong performance in Geosystems Industrial Enterprise Solutions Geospatial Enterprise Solutions (IES) (GES) +16% +9% +11% +10% +5% +4% IES Manufacturing Asset GES Geo - Autonomy & Total Intelligence Total systems Positioning Lifecycle -11% Q1 2023 % revenue growth Q1
Slide 6: Cash flow
Cash flow MEUR Q1 2023 Q1 2022 Cash flow from operations before changes in working capital excl. taxes and interest 452.4 409.3 Taxes paid -79.3 -28.5 Interest received and paid, net -23.8 -4.7 Cash flow from operations before changes in working capital 349.3 376.1 Change in working capital -59.6 -8
Slide 7: Geographic & business review
Geographic & business review 7 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 8: Geospatial Enterprise Solutions – Q1 2023 overview
Geospatial Enterprise Solutions – Q1 2023 overview Organic growth of 5 per cent • Geosystems: 9 per cent organic growth, driven by strong demand across customers in Asia and the Middle East, and solid demand for mining and surveying solutions. • Safety, Infrastructure & Geospatial: -11 per cent orga
Slide 9: Geosystems launches REVEAL – an AI-driven solution for heavy construction
Geosystems Geosystems launches REVEAL – an AI-driven solution for heavy construction • REVEAL is a new solution that significantly improves the accuracy and efficiency of point cloud editing for construction application. • By using AI, REVEAL recognizes the objects it captures on your job site and c
Slide 10: Immersal launches new smart city Visual Positioning System
Geosystems Immersal launches new city smart city Visual Positioning System • Combining Hexagon's Digital Reality platform HxDR and Immersal Spatial Anchoring allows our users to connect the Digital Reality to the Physical World and immerse themselves into a real world that is digitally augmented. •
Slide 11: Projectmates joins Hexagon to strengthen its construction software offering
Geosystems Projectmates joins Hexagon to strengthen its construction software offering • Projectmates, an owner-focused SaaS enterprise construction project management solution joined Hexagon. • Together with HxGN Smart Build, Projectmates provides a single source of truth for owners and ensures all
Slide 12: CES Best of Innovation Honoree: Leica BLK360 Imaging Laser Scanner
Geosystems CES Best of Innovation Honoree: Leica BLK360 Imaging Laser Scanner • The CES Innovation Awards program is an annual competition honoring outstanding design and engineering in consumer technology products. The program recognises honorees in a multitude of consumer technology product catego
Slide 13: Safety, Infrastructure & Government – Selected customer wins
Safety, Infrastructure & Government Selected customer wins • Alpharetta, Georgia, is a city in the Atlanta metropolitan area with a population of up to 120,000 people during workday hours. • The Alpharetta Department of Public Safety sought a new public safety platform that was cloud-based and could
Slide 14: Combating desertification with Hexagon technology
Safety, Infrastructure & Government Combating desertification with Hexagon technology • Saudi Arabia’s National Center for Vegetation Cover and Combating Desertification works to protect the environment, combat climate change and improve the quality of life for future generations. • The center selec
Slide 15: Industrial Enterprise Solutions – Q1 2023 overview
Industrial Enterprise Solutions – Q1 2023 overview Organic growth of 11 per cent • MI: 10 per cent organic growth, driven by strong growth across key industries including aerospace and general manufacturing, as well as the software portfolio. CAD CAM Stationary sensors • Asset Lifecycle Intelligence
Slide 16: Asset Lifecycle Intelligence – Selected customer wins
Asset Lifecycle Intelligence Selected customer wins • A major US-based social-media & technology corporation has selected HxGN EAM to to manage its global data-center facility assets and systems to maximize asset performance and productivity, create new operational efficiencies and support the compa
Slide 17: Asset Lifecycle Intelligence – Selected customer wins
Asset Lifecycle Intelligence Selected customer wins • Multinational chemical company BASF SE expanded their existing relationship with Hexagon, adding HxGN SDx® which is a modular, cloud-based solution that optimizes efficiency, improves profitability and ensures safety throughout the life of a faci
Slide 18: Manufacturing Intelligence – Selected customer wins
Manufacturing Intelligence Selected customer wins • Sealed Air (US) – global food safety & product protection company has chosen ETQ Reliance to consolidate disparate processes into one purpose built quality management system. • This enables consistent processes across the globe and provide data to
Slide 19: Product launch
Product launch • Nexus is Hexagon's new digital reality platform, designed to accelerate innovation. By connecting people, technologies and data, Nexus empowers manufacturers to bring their ideas to life faster than ever before. • Nexus offers a better way of working, connecting across disciplines w
Slide 20: Analysis of organic growth per geographic region and by industry
Analysis of organic growth per geographic region and by industry Share of W EU EMEA2) NA SA CN ASIA3) sales1) 27% (28) 7% (7) 33% (33) 4% (4) 15% (15) 14% (13) Surveying 18% Power, Energy & Mining 22% Electronics & Manufacturing 17% Infrastructure & Construction 13% Automotive 9% Aerospace & Defence
Slide 21: Closing remarks & QA
Closing remarks & QA 21 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 22: Don't miss your opportunity to view Hexagon's technologies in action
Don’t miss your opportunity to view Hexagon’s technologies in action Contact ir@hexagon.com if you’d like to attend
Slide 23: Appendices
Appendices 23 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 24: Seasonality in profit
Seasonality in profit Seasonal pattern: Q2 & Q4 tend to be the strongest quarters MEUR 35.0% 1 400 30.0% 1 200 Adjusted EBIT Margin % 25.0% 1 000 20.0% 800 Net Sales 15.0% 600 EBIT1 10.0% 400 200 5.0% 0 0.0% 24 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 25: Income Statement – Q1 2023
Income Statement – Q1 2023 MEUR Q1 2023 Q1 2022 Change % Operating net sales 1,286.6 1,163.4 81) Revenue adjustments -1.5 -3.7 n.a. Net sales 1,285.1 1,159.7 81) Adjusted operating earnings (EBITDA) 462.2 416.2 11 Adjusted operating margin, (EBITDA) % 35.9 35.8 0.1 Adjusted operating earnings (EBIT1
Slide 26: Working capital to sales
Working capital to sales 25% 20% Q1 2023 15% 7.9% 10% 5% 0% 26 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 27: Gross margin – R12M
Gross margin – R12M % 70 R12M 66% (65) 65 60 55 50 45 40 35 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 From Q3 2021 the gross margin excludes adjustments 27 | HEXAGON INTERIM REPORT 1 JANUARY – 31 MARCH 2023
Slide 28: Adjusted operating margin – R12M
Adjusted operating margin – R12M % 35 Target 2026: >30% 30 R12M adjusted 29.3% (29.4) 25 20 15 10 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 The 2026 target of reaching an adjusted operating margin of >30% is based on an older definition of EBIT1 where amortisation of surplus values
Slide 29: Global leader in digital reality solutions
Global leader in digital reality solutions that are empowering an autonomous, sustainable future by putting data to work