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Hexagon Launches New Financial Plan at Capital Markets Day

NACKA STRAND, Sweden — (BUSINESS WIRE) — December 1, 2016 — Regulatory News:

Hexagon (STO: HEXAB) hosts its Capital Markets Day in London, United Kingdom, today and launches a new five-year financial plan stretching to 2021. The plan includes two scenarios, one base case and one opportunity case.

Base case scenario: Sales targets of 4.6 billion EUR and EBIT margin of 27 per cent. The sales target is built upon the assumption that Hexagon achieves an average sales growth of 8 per cent per year, comprised by a combination of organic growth and acquisitions, whereof approximately 5 per cent is assumed to be organic growth.

Opportunity case scenario: Sales target of 5.1 billion EUR and EBIT margin of 28 per cent. The sales target is built on the assumption that Hexagon reaches an average sales growth of 10 per cent per year, comprised by a combination of organic growth and acquisitions and M&A is assumed to be the swing factor compared to the base case.

The organic growth is to be reached through a combination of new initiatives/applications and development of existing portfolios, supported by higher sales growth of software and solution-centric business. Hexagon will continue to invest in new innovations and thereby expand its addressable market.

"Due to the expected low GDP growth it is more important than ever to continue our focus on new initiatives for future growth. Hexagon has all the tools to generate profitable growth and we will continue to invest in innovation to expand our addressable market. Additionally, Hexagon’s financial position is stronger than ever which will enable continued M&A activity. We are fully committed to driving revolutionary change in the industries we serve, transforming Hexagon’s future and realizing our new five-year financial plan," says Ola Rollén, President and CEO of Hexagon.

The two scenarios outlined are not the only possible outcomes – different combinations of the two are conceivable depending on the macro environment.

In light of Hexagon’s Capital Markets Day and introduction of the Company’s next five-year financial plan, the Board would like to reiterate its full support for Ola Rollén to continue as President and CEO for Hexagon following the ongoing insider trading investigation.

“Our lawyers and independent legal experts in Norway have now got the opportunity to study the prosecutor’s complete material of the investigation and their assessment stands firm – the allegations against Ola are meritless and he should therefore be completely cleared of charges. It is of course up to the prosecutor to decide if the investigation will be closed or if an indictment will be issued. However, we want to make it clear that Ola has our full support whether indicted or not. You are innocent until proven guilty,” says Melker Schörling, Chairman of the Board of Hexagon.

The Capital Markets Day presentations will be available at Hexagon's webpage hexagon.com ( http://www.hexagon.com/).

This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, approximately at 15:15 CET on 1 December 2016.

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: HEXAB) has more than 16,000 employees in 46 countries and net sales of approximately 3.0bn EUR. Learn more at hexagon.com ( http://www.hexagon.com/) and follow us @HexagonAB.

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Contact:

Hexagon AB
Maria Luthström, Investor Relations Manager
+46 8 601 26 27, Email Contact
or
Kristin Christensen, Chief Marketing Officer
+1 404 554 0972, Email Contact