Slide 1: Q4 2024 report
Q4 2024 report 31 January 2025
Slide 2: Q4 & FY 2024 Performance update
Q4 & FY 2024 Performance update
Slide 3: Highlights Q4 & FY 2024
Highlights Q4 & FY 2024 • A good quarter delivering a return to growth, good margins and very strong cash conversion Category Achievement Category Achievement • Several exciting acquisitions, strengthening our market leadership positions Organic growth 1% Organic growth 0% • Björn Rosengren proposed
Slide 4: Key geographic trends
Key geographic trends Mixed demand environment across geographies Americas EMEA APAC 39% of revenues 36% of revenues 25% of revenues 1% Organic growth -5% Organic growth 11% Organic growth North America Western Europe China • Strong software growth in ALI and SIG • Challenging automotive market • Gr
Slide 5: Divisional performance
Divisional performance Mixed markets, tough comparatives, resilient margins Manufacturing Asset Lifecycle Autonomous Safety, Infrastructure Intelligence Intelligence Geosystems Solutions & Geospatial Hexagon Q4 2024, MEUR Revenue 530.0 228.8 400.1 146.5 140.8 1,448.0* Organic Growth -2% (7%) 10% (8%
Slide 6: Divisional performance
Divisional performance Division Category (MEUR) Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024F Revenue 1,435.3 5,440.0 1,299.9 1,353.4 1,299.8 1,448.0 5,401.1 Organic growth in revenue 5% 7% 3% 0% -2% 1% 0% Hexagon* EBIT1 438.4 1,596.7 376.5 399.5 376.6 450.3 1,602.9 EBIT1 margin % 30.5% 2
Slide 7: Manufacturing Intelligence
Manufacturing Intelligence Revenue by industry (FY 2024) General manufacturing 3% 3% 9% Automotive 9% 34% Aerospace & Defence Q4 2024, MEUR (Q4 2023) Business update Electronics Continued growth in aerospace, general 19% Energy & Power manufacturing broadly stable, offset by a weak 23% Revenue 530.0
Slide 8: Asset Lifecycle Intelligence
Asset Lifecycle Intelligence Revenue by industry (FY 2024) Oil & Gas Chemicals 23% 25% Heavy construction - Q4 2024, MEUR (Q4 2023) Business update industrial facilities 5% Energy & Power Strong sales in SaaS and perpetual software 10% 19% Mining Revenue 228.8 (207.6) Growth across regions, especial
Slide 9: Geosystems
Geosystems Revenue by industry (FY 2024) Heavy construction - infrastructure 12% Buildings 6% 28% Surveying Q4 2024, MEUR (Q4 2023) Business update 8% Mining Growth in new products & software offset by weak 18% Mapping construction markets 28% Revenue 400.1 (399.4) Other North America & EMEA remaine
Slide 10: Autonomous Solutions (AS)
Autonomous Solutions (AS) Revenue by industry (FY 2024) 7% Mining 6% Agriculture Q4 2024, MEUR (Q4 2023) Business update 17% Aerospace & Defense 53% Growth overall in Autonomy & Positioning, with the Marine marine and A&D segments offsetting weak precision 17% Revenue 146.5 (150.0) agriculture marke
Slide 11: Safety, Infrastructure & Geospatial
Safety, Infrastructure & Geospatial Revenue by industry (FY 2024) 5% 5% Public safety 10% Aerospace & Defense Q4 2024, MEUR (Q4 2023) Business update Utilities 12% 49% Transportation Strong growth in public safety, offset by continued weakness in the Federal services business Revenue 140.8 (126.1) 1
Slide 12: indurad
Autonomous Solutions Mining indurad Announced 21 November 2024 • Global leader in radar and Real-Time Location Systems (RTLS). • Enhances mine safety via its advanced radar-based collision avoidance system. • Increases productivity with real-time ore tracking and measurement enabling automated workf
Slide 13: Geomagic suite
Manufacturing Intelligence Geomagic suite Announced 12 December 2024 • A suite of software packages which create high quality 3D models from multiple sources, including laser scanning. • Automates the processing of 3D scan data to build digital models from physical objects, which can then be used to
Slide 14: Septentrio
Autonomous Solutions Autonomy & Positioning Septentrio Announced 7 January 2025 • Leading OEM provider of GNSS technologies. • Strong fit with existing Hexagon positioning portfolio, enables cutting-edge solutions for positioning technologies with low SWaP (size, weight & power) requirements. • Pote
Slide 15: CAD Service
Asset Lifecycle Intelligence CAD Service Acquired 21 January 2025 • Hexagon partner specialising in the development of advanced visualisation tools to integrate CAD, BIM and 3D reality capture data into EAM. • The flagship solution, OpenCAD, is an essential tool for around half of EAM customers alre
Slide 16: Q4 & FY 2024 Financial update
Q4 & FY 2024 Financial update
Slide 17: Income statement – Q4 2024
Income statement – Q4 2024 Strong margins despite challenging markets Adjusted income statement MEUR Q4 2024 Q4 2023 % Change Sales bridge 2023, MEUR 1,435.3 Net Sales 1,448.0 1435.3 1* COGS -481.7 -488.1 0 Structure, %* 0% Gross earnings 966.3 955.2 1 Currency, % 0% Gross margin 66.7% 66.5% 0.2 Org
Slide 18: Gross margin
Gross margin Continued strong gross margin progression Rolling 12-months gross margin Gross margin by quarter 70% 67.3% 67.1% • Richer software mix in 66.5% 66.7% 65% 66.5% 66.5% portfolio through innovation 66.2% 65.6% and M&A 65.5% 60% • Innovation drives higher GM% for next generation 55% sensors
Slide 19: Q4 Revenue & profitability bridge
Q4 Revenue & profitability bridge Resilient margin development through cost controls MEUR Q4 2023 Currency Structure Organic Q4 2024 Operating Net Sales 1,435.3 1 -3 15 1,448.0 Growth 0% 0% 1% 1% Adjusted Operating Earnings (EBIT1) 438.4 21 -1 -8 450.3 Adjusted Operating Margin 30.5% n.a.% 25% -54%
Slide 20: Income statement – FY 2024
Income statement – FY 2024 Solid year despite mixed markets Adjusted income statement MEUR 2024 2023 % Change Sales bridge 2023, MEUR 5,440.0 Net Sales 5,401.1 5,440.0 0* COGS -1 787.3 -1 846.6 -3 Structure, %* 0% Gross earnings 3,613.8 3,593.4 1 Currency, % -1% Gross margin 66.9% 66.1% 0.8 Organic
Slide 21: 2024 Revenue & profitability bridge
2024 Revenue & profitability bridge Resilient margin development through cost controls MEUR 2023 Currency Structure Organic 2024 Operating Net Sales 5,440.0 -41 -11 13 5,401.1 Growth 0% -1% 0% 0% Adjusted Operating Earnings (EBIT1) 1,596.7 1 3 2 1,602.8 Adjusted Operating Margin 29.4% -3% -24% 16% 2
Slide 22: Cash flow
Cash flow Seasonally strong cash conversion Cash Flow Statement Q4 24 Q4 23 Change % MEUR • Strong cash generation Adjusted operating earnings (EBIT1) 450.3 438.4 3 D&A (Excluding adjustments) 136.7 145.2 -6 • Significant release in working capital Adjusted EBITDA 587.0 583.6 1 Non-cash items -37.1
Slide 23: Working capital to sales
Working capital to sales Returning to trend WC/Sales, % 25% WC Bridge Q4 2024 Receivables & 20% 35.2 Prepaid expenses Q4 2024 Inventories -36.0 15% 6.0% Liabilities -63.8 10% Deferred revenue -72.0 Accrued expenses -4.0 5% Change in WC -140.6 0% Working capital to net sales (on a rolling basis) 23 |
Slide 24: Seasonality
Seasonality Seasonal pattern: Q2 & Q4 tend to be the strongest quarters MEUR 32% 1,400 30% 28% Adjusted EBIT1 Margin % 1,200 26% 24% 22% 1,000 20% 18% 800 16% Net Sales 14% 600 12% 10% 400 8% 6% 200 4% 2% EBIT1 0 0%
Slide 25: Q4 & FY 2024 Customer, product and conclusions
Q4 & FY 2024 Customer, product and conclusions
Slide 26: SEAT S.A.
SEAT S.A. Customer background Customer challenge Part of the Volkswagen Group, After a successful implementation at Martorell in Seat S.A. is a Spanish car 2023, the customer plans to enhance manufacturer based in measurement capabilities at its Zona Franca Martorell, Spain. site, enabling digitised
Slide 27: A global data centre hyperscaler
A global data centre hyperscaler Customer background Customer challenge This top 5 global data centre hyperscaler They looked to extend their EAM had successfully deployed HxGN EAM to deployment to their hardware design all of their 35 data centre campuses facilities globally to coordinate asset glo
Slide 28: Leica iCON trades
Leica iCON trades Robotic sensors to perform simple and complex layout and 3D measurement tasks for the construction industry. Focused on usability, speed and accuracy to deliver a market leading solution. Industry-tailored workflow The new solution complements the industry-leading Leica iCON build
Slide 29: Strong world-wide adoption of Leica iCON trades in Q4
Strong world-wide adoption of Leica iCON trades in Q4 RBB Construction Mizarstvo Cestnk Swissaufmass New Zealand Slovenia Switzerland RBB Construction, a renovation and construction Mizarstvo Cestnk, a carpenter specialising in Swissaufmass precisely measures kitchens, bathrooms company uses Leica i
Slide 30: Williamson County, TX
Williamson County, TX Customer background Customer challenge A rapidly growing area north of Williamson County leaders sought to Austin. Its 13 fire, police and replace its end-of-life public safety software EMS agencies protect more than with a next-gen computer-aided dispatch 600K people. (CAD) so
Slide 31: Conclusions
Conclusions Quarter of Innovation Investigation Future Dividend progress driving results continues ready increase Delivering growth, Resilience in Into potential spin-off New leadership Board proposes resilient margins & challenging markets of the ALI division and appointments dividend of 0.14 stron
Slide 32: for the calendar
for the calendar 1 April Hannover-Messe Hannover 7-13 April Bauma Munich 6-7 May Control Stuttgart 16-19 June Hexagon Live Las Vegas
Slide 33: Cautionary statement
Cautionary statement 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,
Slide 34: Appendix
Appendix
Slide 35: Our key targets
Our key targets Organic growth Average annual growth of 5-7% Conviction in our existing Growth via M&A Average annual growth of 3-5% 2022-2026 targets Operating margin More than 30% by the end of 2026 (EBIT1 incl. PPA) Cash conversion Annual target range of 80-90% Additional targets 95% reduction of