Update from Hexagons Capital Markets Day

Hexagon AB, leading global provider of design, measurement and visualisation technologies, hosts Capital Markets Day (CMD) in Las Vegas, Nevada and updates commentary around the existing financial plan and around the current business climate.

Hexagon's financial plan stretches to 2015 and includes a sales target of 3.5 billion EUR and an EBIT margin target of 25 per cent. At the CMD Hexagon specified that the sales target in the base case scenario is built upon the assumption that the core business Measurement Technologies grows at approximately 8 per cent per year over the period up until 2015. On top of this growth it is Hexagon's estimate that revenue synergies involving technologies from Intergraph will add another 100-200 MEUR in net sales over the period up until 2015. It was also disclosed that acquisitions may add between 200-600 MEUR in net sales over the planning period depending on the general business environment.

Hexagon also stated that the core business will improve its margin beyond today's level of 21 per cent and that the revenue synergies will have significantly higher margin than today's average margin since it primarily relates to software products. The acquisitions are in the model assumed to generate EBIT margins of above 15 per cent.

The calculations described above are not the only possible outcomes. Different combinations of the three elements are conceivable depending on the macro environment.

Commentary around current trading and outlook for the second quarter 2012 can be summarised as follows:

  · Hexagon believes that all major geographical regions will display growth in the second quarter 2012
  · The divisions Metrology and Intergraph PP&M will be the primary growth drivers in the second quarter 2012
  · Geosystems was said to be on the recovery after the expected bottoming out in China following the collapse of the high-speed rail segment last year
  · The business unit Intergraph SG&I is expected to stop displaying negative growth as of the second quarter 2012

The presentation given by Ola Rollén is available at Hexagon's website www.hexagon.com.