Change in definition of adjusted operating earnings (EBIT1)
FRI, DEC 10, 2021 08:00 CET
Hexagon AB has changed its definition of adjusted operating earnings (EBIT1), with the purpose of bringing greater clarity to the operating result and to increase comparability with industry peers operating under different financial reporting practices. As of the fourth quarter 2021, adjusted operating earnings (EBIT1) will exclude amortisation of surplus values in the purchase price allocation (PPA).
The previously announced financial target of reaching an adjusted operating margin (EBIT1) of over 30 per cent by 2026 will continue to include amortisation of surplus values (PPA), i.e., there has been no change in the target or Hexagon’s confidence in reaching it.
Accounting impact of the acquisition of Infor’s EAM business
In the fourth quarter of 2021, amortisation of surplus values (PPA) is estimated to amount to approximately 23 MEUR, whereof 9 MEUR relates to the acquisition of Infor’s EAM business. In addition, the revenue recognition adjustment of deferred revenue related to the acquisition of Infor’s EAM business is estimated to amount to 14 MEUR over the next twelve months, of which 5 MEUR will impact the fourth quarter of 2021. As previously announced, total non-recurring transaction and integration costs, including non-cash impairments related to overlapping technologies, are estimated to amount to around 161 MEUR in the fourth quarter 2021.
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Restatement of financials |
|
|
Restated |
As reported |
Restated |
As reported |
Restated |
As reported |
Restated |
As reported |
|
MEUR |
|
|
Q3 2021 |
Q3 2021 |
Q2 2021 |
Q2 2021 |
Q1 2021 |
Q1 2021 |
9M 2021 |
9M 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
1077,2 |
1077,2 |
1075,6 |
1075,6 |
977,9 |
977,9 |
3130,7 |
3130,7 |
|
Adjusted gross earnings |
|
|
692,9 |
692,9 |
692,8 |
692,8 |
629,6 |
629,6 |
2015,3 |
2015,3 |
|
Adjusted gross margin, %/span>
|
|
|
64,3 |
64,3 |
64,4 |
64,4 |
64,4 |
64,4 |
64,4 |
64,4 |
|
Adjusted operating earnings (EBITDA) |
|
|
413,4 |
413,4 |
402,8 |
402,8 |
366,7 |
366,7 |
1182,9 |
1182,9 |
|
Adjusted EBITDA margin, % |
|
|
38,4 |
38,4 |
37,4 |
37,4 |
37,5 |
37,5 |
37,8 |
37,8 |
|
Adjusted operating earnings (EBIT1) |
|
|
310,6 |
296,8 |
314,6 |
301,1 |
271,3 |
257,9 |
896,5 |
855,8 |
|
Adjusted operating margin, % |
|
|
28,8 |
27,6 |
29,2 |
28,0 |
27,7 |
26,4 |
28,6 |
27,3 |
|
Earnings before taxes, excluding |
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
304,3 |
290,5 |
307,8 |
294,3 |
263,7 |
250,3 |
875,8 |
835,1 |
|
-Amortisation surplus values (PPA) |
|
|
-13,8 |
- |
-13,5 |
- |
-13,4 |
- |
-40,7 |
- |
|
-Share programme (LTIP) |
|
|
-9,4 |
-9,4 |
-4,9 |
-4,9 |
-4,8 |
-4,8 |
-19,1 |
-19,1 |
|
-Other non-recurring items |
|
|
- |
- |
- |
- |
- |
- |
- |
- |
|
Total adjustments (before taxes) |
|
|
-23,2 |
-9,4 |
-18,4 |
-4,9 |
-18,2 |
-4,8 |
-59,8 |
-19,1 |
|
Earnings before taxes |
|
|
281,1 |
281,1 |
289,4 |
289,4 |
245,5 |
245,5 |
816,0 |
816,0 |
|
Net earnings |
|
|
230,6 |
230,6 |
237,3 |
237,3 |
201,3 |
201,3 |
669,2 |
669,2 |
|
Net earnings, excl. adjustments |
|
|
249,6 |
238,3 |
252,5 |
241,4 |
216,2 |
205,2 |
718,3 |
684,9 |
|
Earnings per share, euro cent |
|
|
8,9 |
8,9 |
9,2 |
9,2 |
7,8 |
7,8 |
25,9 |
25,9 |
|
Earnings per share, excl. |
|
|
|
|
|
|
|
|
|
|
|
Adjustments, euro cent |
|
|
9,6 |
9,2 |
9,8 |
9,3 |
8,4 |
7,9 |
27,8 |
26,4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated |
As reported |
Restated |
As reported |
Restated |
As reported |
Restated |
As reported |
Restated |
As reported |
|
MEUR |
Q4 2020 |
Q4 2020 |
Q3 2020 |
Q3 2020 |
Q2 2020 |
Q2 2020 |
Q1 2020 |
Q1 2020 |
2020 |
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net sales |
1044,1 |
1044,1 |
939,9 |
939,9 |
896,6 |
896,6 |
889,9 |
889,9 |
3770,5 |
3770,5 |
|
Revenue adjustment |
-6,1 |
-6,1 |
- |
- |
- |
- |
- |
- |
-6,1 |
-6,1 |
|
Net sales |
1038,0 |
1038,0 |
939,9 |
939,9 |
896,6 |
896,6 |
889,9 |
889,9 |
3764,4 |
3764,4 |
|
Adjusted gross earnings |
652,3 |
652,3 |
599,7 |
599,7 |
550,7 |
550,7 |
571,6 |
571,6 |
2374,3 |
2374,3 |
|
Adjusted gross margin, % |
62,5 |
62,5 |
63,8 |
63,8 |
61,4 |
61,4 |
64,2 |
64,2 |
63,0 |
63,0 |
|
Adjusted operating earnings (EBITDA) |
414,6 |
414,6 |
347,2 |
347,2 |
362,6 |
362,6 |
287,2 |
287,2 |
1411,6 |
1411,6 |
|
Adjusted EBITDA margin, % |
39,7 |
39,7 |
36,9 |
36,9 |
40,4 |
40,4 |
32,3 |
32,3 |
37,4 |
37,4 |
|
Adjusted operating earnings (EBIT1) |
299,7 |
287,2 |
263,2 |
250,1 |
240,0 |
226,5 |
206,6 |
192,4 |
1009,5 |
956,2 |
|
Adjusted operating margin, % |
28,7 |
27.5 |
28,0 |
26.6 |
26,8 |
25.3 |
23,2 |
21,6 |
26,8 |
25,4 |
|
Earnings before taxes, excluding |
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
292,4 |
279,9 |
255,3 |
242,2 |
233,6 |
220,1 |
200,8 |
186,6 |
982,1 |
928,8 |
|
-Amortisation surplus values (PPA) |
-12,5 |
- |
-13,1 |
- |
-13,5 |
- |
-14,2 |
- |
-53,3 |
- |
|
-Other non-recurring items |
-34,2 |
-34,2 |
- |
- |
-135,0 |
-135,0 |
- |
- |
-169,2 |
-169,2 |
|
Total adjustments (before taxes) |
-46,7 |
-34,2 |
-13,1 |
- |
-148,5 |
-135,0 |
-14,2 |
- |
-222,5 |
-169,2 |
|
Earnings before taxes |
245,7 |
245,7 |
242,2 |
242,2 |
85,1 |
85,1 |
186,6 |
186,6 |
759,6 |
759,6 |
|
Net earnings |
202,5 |
202,5 |
198,6 |
198,6 |
70,6 |
70,6 |
153,0 |
153,0 |
624,7 |
624,7 |
|
Net earnings, excl. adjustments |
239,8 |
229,5 |
209,3 |
198,6 |
191,6 |
180,5 |
164,6 |
153,0 |
805,3 |
761,6 |
|
Earnings per share, euro cent |
7,8 |
7,8 |
7,6 |
7,6 |
2,7 |
2,7 |
5,9 |
5,9 |
24,0 |
24,0 |
|
Earnings per share, excl. |
|
|
|
|
|
|
|
|
|
|
|
Adjustments, euro cent |
9,2 |
8,8 |
8,1 |
7,6 |
7,4 |
6,9 |
6,4 |
5,9 |
31,1 |
29,3 |
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For further information, please contact:
Maria Luthström, Head of Sustainability and Investor Relations, Hexagon AB, +46 8 601 26 27, ir@hexagon.com
Anton Heikenström, Investor Relations and Business Analyst, Hexagon AB, +46 8 601 26 26, ir@hexagon.com
- Number of shares Dec14 (ENG)
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