Hexagon Q4 2022 summary results and an isolated email incident

STOCKHOLM, Jan. 23, 2023

Due to an isolated event concerning unauthorised access of one specific email account that contained information related to Hexagon's Q4 2022 results, Hexagon is releasing a summary of its fourth quarter 2022 results ahead of its full year-end report. An investigation confirmed that there was no impact to Hexagon's internal networks or operations, nor was any evidence found that confidential information was taken. The incident is reported to have been fully resolved.

Fourth quarter 2022 summary:         

• Operating net sales increased by 15 per cent to 1,403.2 MEUR (1,216.7), reflecting organic growth of 8 per cent, a contribution from structure of 2 per cent and currency translation effects of 5 per cent.
• All regions saw healthy organic growth development (EMEA: 11 per cent, Americas: 7 per cent and Asia: 7 per cent).
• Geospatial Enterprise Solutions (GES) operating net sales amounted to 662.0 MEUR (586.5), reflecting organic growth of 5 per cent, led by a strong development in Autonomy & Positioning (15 per cent) and a stable trend in both Geosystems (4 per cent) and Safety, Infrastructure & Geospatial (3 per cent).
• Industrial Enterprise Solutions (IES) operating net sales amounted to 741.2 MEUR (630.2) reflecting organic growth of 12 per cent, with both Manufacturing Intelligence (13 per cent) and Asset Lifecycle Intelligence (8 per cent) contributing strongly.
• Adjusted operating earnings (EBIT1) increased by 12 per cent to 418.0 MEUR (373.1) with a corresponding margin of 29.8 per cent (30.7). The EBIT1 margin was positively impacted by healthy volume growth, favourable price-cost development, and new product introductions, reflected in a record gross margin of 66.2 per cent (65.0), but negatively impacted by net currency effects (translation impact: 23.5 MEUR, transaction impact: -20.5 MEUR).

Note: The fourth quarter 2022 summary has not been reviewed by the Company's auditors.

"Hexagon takes privacy and security seriously and we felt it prudent to report a summary of our fourth quarter numbers as soon as possible. Hexagon had a strong finish to 2022, moving into the new year with good momentum. I look forward to discussing the results in more detail on 24 January", says Hexagon President and CEO Paolo Guglielmini.

Hexagon says that no additional information will be given ahead of releasing its Year-End report for 2022 on the revised date of Tuesday, 24 January, at approximately 08:00 CET. A new invitation to the live webcast and telephone conference with time and call-in details will be announced separately.