Summary from Hexagon’s Capital Markets Day

Regulatory News:

Hexagon (STO:HEXAB), a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise solutions, is holding a Capital Markets Day in London today, 4 December 2015. Hexagon’s President and CEO, Ola Rollén, will comment on the company’s operational development and announce that the company’s financial plan remains intact. In addition, Rollén will give an update on the market conditions for the current quarter, for which reported growth is expected to be 6-9 per cent.

Financial plan

Hexagon’s current financial plan was launched in 2011 and most recently updated in connection with the company’s 2014 Capital Markets Day to extend through 2016. The sales target of 3.5bn EUR and EBIT margin target of 25 per cent remain unchanged. A combination of organic growth focused on new solutions and acquisitions focused on software will be used to reach these targets.

"The question is not if, but when we will reach these targets,” comments Ola Rollén, President and CEO of Hexagon. "While achievement in 2016 remains a possibility, the momentum that we’ve built up since 2011 that will lift the company higher than the financial targets for 2016, is much more significant. To date, our long-term growth strategy, centered around innovative and high-tech solutions, has enabled us to achieve higher organic growth than the underlying market. Our financial position is strong, which is also enabling us to continue expanding and strengthening our software portfolio through innovations and acquisitions.”

In pace with the company’s business model shift to a higher share of software and solutions, Hexagon’s cost structure has improved considerably. The greater proportion of revenues coming from subscription-based contracts continues to increase the stability of business.

Fourth quarter update

Reported growth for the fourth quarter is expected to be 6-9 per cent. The underlying trend of rising operating margins is expected to continue during the fourth quarter.

Update from Hexagon’s divisions

During the Capital Markets Day, senior executives from Hexagon’s divisions will give presentations on operational progress and provide insight into product development.

Geospatial Enterprise Solutions will present how Hexagon’s unique sensor portfolio is enabling a virtual world and maps of the future, made available to a much wider audience than just professional users. Hexagon’s role in the world’s autonomous future, which relies heavily on accuracy and precision, will also be discussed.

Industrial Enterprise Solutions will describe the manufacturing plant of the future – the smart connected factory – which will rely heavily on increasing amounts of automation and information connectivity to achieve quality and productivity improvements. Cloud solutions that boost efficiency for customers and opportunities for Hexagon to apply its oil and gas technologies in new areas, like Building Information Modelling (BIM).

You can follow Hexagon’s Capital Markets Day live here (http://investors.hexagon.com/sv). An audio recording of the presentation will also be available afterwards at hexagon.com.

Hexagon is a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications. Hexagon's solutions integrate sensors, software, domain knowledge and customer workflows into intelligent information ecosystems that deliver actionable information. They are used in a broad range of vital industries. Hexagon (Nasdaq Stockholm: HEXA B) has more than 16,000 employees in 46 countries and net sales of approximately 2.6bn EUR. Learn more at www.hexagon.com.

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