HEXAGON OVERVIEW JULY 2012

Transcription

1 HEXAGON OVERVIEW JULY 2012

2 CONTENTS HEXAGON IN BRIEF BUSINESS OPERATIONS FINANCIAL INFORMATION

3 HEXAGON IN BRIEF

4 HEXAGON S DEVELOPMENT Scandinavian conglomerate with no core business Ola Rollén joins as President and CEO and identifies measurement technologies as a focus area Strategic acquisition of Leica Geosystems expands Hexagon s measurement technologies to include both Metrology and Geosystems offerings Acquisition of Intergraph fulfils software gap, further strengthening measurement technology offerings Enables Hexagon to develop and provide integrated solutions Vision 2011 Multiple measurement technology acquisitions, including Brown & Sharpe, begin to align business to strategy Acquisition of NovAtel adds core competences in GPS and inertial technologies Pursuit to streamline business portfolio complete Now a leading global measurement technology firm Hexagon aspires to play a leading role in the effort to solve the challenges the world is facing through its design, measurement and visualisation technologies 4

5 MISSION Hexagon is dedicated to delivering actionable information through design, measurement and visualisation technologies that enable customers to create and share manageable multidimensional data. VISION Hexagon aspires to play a leading role in the effort to solve the challenges our world is facing through its design, measurement and visualisation technologies.

6 ABOUT HEXAGON Global, research-intensive technology company with an extensive line of hardware, software and services that spans customers and industries worldwide. Leading global provider of design, measurement and visualisation technologies REAL WORLD Design and visualise model of real world Hexagon s solutions work together to provide a constant flow of updated information, increasing productivity, enhancing quality and allowing for faster, better operational decisions Constant flow of updated information to gain quality and efficiency This complete, end-to-end workflow enables customers to transform raw data into useful information and actionable intelligence Measure and monitor real world DIGITAL WORLD 6

7 WHAT IS HEXAGON? Headquartered in Stockholm and London Turnover of MEUR and EBIT of 20.2 per cent in 2011 High-technology focus with about employees in R&D with nearly active patents in the patent portfolio Strategic acquisitions, innovative market approach and new market expansion has resulted in exponential growth The Hexagon share is listed at NASDAQ OMX Stockholm Market cap has increased more than 1 200% since % % Of net sales invested in R&D Employees in more than 40 countries Of employees engaged in R&D Patents & 200 patent applications/year 7

8 OUR LONG-TERM (ANNUAL) STRATEGIC TARGETS Financial Operational EPS growth of at least 15% P.A. Restrictions (Covenants): Solvency ratio of at least 25% Positive cash flow over a cycle ROCE > 15% over a cycle Net Debt / EBITDA < 3.5 No 1 or 2 in Industry Long-term cost leadership Being the innovator Industry's best management Speed management 8

9 OUR CUSTOMERS 2011 Thousands of customers across a large variety of industries Surveying Power and energy % 22 (24) 19 (18) Aerospace and defence Construction Safety and security Automotive Manufacturing Other 12 (13) 11 (10) 10 (11) 9 (9) 9 (7) 8 (8) Share of net sales, Hexagon MT, excluding Other Operations *Figures in parentheses refer to

10 NET SALES (MT) AND EMPLOYEES (GROUP) PER REGION 2011 WESTERN EUROPE CHINA NORTH AMERICA 35% Share of net sales (37%) Average number of employees (3 771) 14% Share of net sales (18%) Average number of employees (1 505) 28% Share of net sales (24%) Average number of employees (1 799) SOUTH AMERICA 4% Share of net sales (3%) 319 Average number of employees (172) EMEA 7% Share of net sales (7%) 267 Average number of employees (104) ASIA PACIFIC 12% Share of net sales (11%) Average number of employees (828) *Figures in parentheses refer to

11 GROUP MANAGEMENT Ola Rollén President and CEO Juergen Dold President, Hexagon Geosystems Håkan Halén Executive Vice President and CFO Norbert Hanke President, Hexagon Metrology Bo Pettersson Chief Technical Officer Li Hongquan Vice President and President Hexagon China Johnny Andersson General Counsel 11

12 BUSINESS OPERATIONS

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14 HEXAGON GEOSYSTEMS Wide array of measurement and positioning systems mainly used in the development and protection of infrastructure Customers are surveyors, governments, mapping corporations, construction companies, civil engineering and mining companies, architects, real estate agents and defence Growth drivers include the need to update terrestrial information, productivity and costs in construction processes and the need to update and plan for actions, developments and disasters Growth indicators include construction and infrastructure activity Surveying & Engineering Machine Control & Construction Interior & Geospatial % SW & services Recurring revenues Direct sales Emerging markets Profitability at group average 14

15 HEXAGON METROLOGY A complete range of stationary and portable industrial metrology systems and one of the industry s strongest service organisations Customers are automotive, aerospace, electronics, design, energy and medical technologies industries Growth drivers include the need for improved quality, productivity enhancement in manufacturing processes and cost reduction in production processes Growth indicators include automotive and aerospace production, industrial capex Automotive & Aerospace Industry, Medtech & Energy Software & Services % SW & services Recurring revenues Direct sales Emerging markets Profitability below group average 15 15

16 HEXAGON TECHNOLOGY A world-leading supplier of enterprise engineering, geospatially powered software solutions and high-precision positioning equipment Customers are security and defence, utilities and communications, oil and gas, metals and mining, nuclear and power generation, marine, offshore and shipbuilding Growth drivers include an increased need for energy (oil price and capex) as well as for public safety Power, Process & Marine Security, Government & Infrastructure High-precision positioning (GNSS) % SW & services Recurring revenues Direct sales Emerging markets Profitability above group average 16 16

17 HEXAGON MULTICULTURAL & MULTIBRANDED The Hexagon brand is the parent brand to a portfolio of design, measurement and visualisation providers that represent high quality and reliability 17

18 FINANCIAL INFORMATION

19 OVERVIEW Q Organic growth of 6% Growth in the quarter primarily came from the ongoing recovery in North America and northern parts of Western Europe Metrology had another record quarter, with strong demand in the automotive and aerospace markets Geosystems was adversely affected by the lack of investment in the high-speed rail network in China Intergraph PP&M experienced sales at an alltime high and another double-digit growth quarter Intergraph SG&I reported negative growth Strong Gross and EBIT margin in MT In spite of negative currency effects of -1.8 MEUR, gross margin was 55% and EBIT margin was 21% EBIT margin was also burdened by the restructuring programme in the Intergraph SG&I business unit Around 190 employees were considered redundant Charge amounts to -4.9 MEUR Full payback as of the third quarter

20 KEY FIGURES Q MEUR Q Q Change % Operating net sales ) Revenue adjustments 2) n.a. Net sales ) Operating earnings (EBIT1) ) Operating margin, % Earnings before taxes Net earnings Earnings per share, EUR Earnings per share excl. non-recurring items, EUR ) Adjusted to fixed exchange rates and a comparable Group structure (organic growth). 2) Non-recurring reduction of acquired deferred revenue in Q related to the acquisition of Intergraph. 3) Includes restructuring cost of -4.9 MEUR for redundancies in SG&I. 20

21 KEY FIGURES 2011 MEUR Change % Operating net sales 2, , ) Revenue adjustments 2) n.a. Net sales 2, , ) Operating earnings (EBIT1) Operating margin, % Earnings before taxes excl. non-recurring items Non-recurring items n.a. Earnings before taxes Net earnings Earnings per share, EUR Earnings per share excl. non-recurring items, EUR ) Adjusted to fixed exchange rates and a comparable group structure (organic growth) 2) Non-recurring reduction of acquired deferred revenue related to the acquisition of Intergraph 21

22 CASH FLOW MEUR Q Q Cash flow from operations before changes in working capital Changes in working capital Cash flow from operations Ordinary investment activities Operating cash flow Non-recurring cash flow Operating cash flow after non-recurring items Operating cash flow increased by 15 per cent in the quarter Cash flow and net debt position in line with plan to deleverage 22

23 CURRENCY EFFECTS AS COMPARED TO EUR Movement Income - cost Profit impact CHF Strengthened Negative Negative USD Strengthened Positive Positive CNY Strengthened Positive Positive EBIT, Q MEUR Sales, Q MEUR 23

24 ORGANIC GROWTH 1) PER GEOGRAPHIC REGION (MT) % Share of sales Q1 America 32% Total 100 % Asia 26% EMEA 42% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1) Adjusted to fixed exchange rates and a comparable Group structure. 24

25 EBIT MARGIN (MT) QUARTERLY DATA % Trend line EBIT MT Q1 25

26 HEXAGON S GROWTH PER CUSTOMER SEGMENT IN Q1 Q >8% 0-8% Negative Share of sales 1) W EU 36% MEA 5% NA 30% SA 3% CN 13% APAC 13% Surveying 22% Power & Energy 19% Aerospace & Defence 12% Construction 11% Public Safety & Security 10% Automotive 9% Manufacturing 9% Other 8% TOTAL 1) Sales per customer segment is per December 31, 2011 and sales by region is as of Q

27 THANK YOU

28 DISCLAIMER "This presentation contains forward-looking statements. When used in this presentation, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forwardlooking statements reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Hexagon disclaims any intention or obligation to update these forwardlooking statements. This communication is directed only at persons who (i) have professional experience in matters relating to investments or (ii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) or to whom it may otherwise lawfully be communicated (all such persons together being referred to as relevant persons). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. It should be noted, that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full year results. Persons requiring advice should consult an independent adviser. THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS." 28