Hexagon Ab Class B · OMXSTO:HEXA_B
Hexagon Ab Class B — Q2 2009 Earnings Presentation
45 slides from Hexagon Ab Class B's earnings presentation, Aug 6, 2009
Slide 1: Interim Report Q2 2009
Interim Report Q2 2009 ©) HEXAGON
Slide 2: Agenda
Agenda 6 August 2009 Net sales and earnings Market overview Operations Going forward 2
Slide 3: Net sales and earnings
Net sales and earnings O)) HEXAGON 3
Slide 4: Highlights Q2
Highlights Q2 Cost reductions & emerging markets exposure enables decent performance in tough environment Volume drop in MT 20% 16.4 % EBIT margin in MT (21.8) Operating cash flow, before restructuring, of 501 MSEK (267) Demand situation Geosystems has bottomed out in EMEA & Americas. Asia growing M
Slide 5: Update on cost reduction programme
Update on cost reduction programme Proceeds according to plan Savings of 152 MSEK in Q2 280 MSEK in total savings so far By Q4 we expect to reach annualised rate of 900 MSEK in savings Total restructuring charges in Q4‘08 + Q1’09 of 275 MSEK 111 MSEK paid out as of Q2 No further major restructuring
Slide 6: Summary Q2 2009
Summary Q2 2009 MSEK Q2 2009 Q2 2008 1) Change % Order intake 2 951 3 425 -26 2) Net sales 3 068 3 337 -23 2) Operating earnings (EBIT1) 454 674 -33 Operating margin, % 14.8 20.2 -5.4 Earnings before taxes 411 604 -32 Net earnings 354 528 -33 Earnings per share, SEK 1.33 1.98 -33 1) Excluding Hexpol
Slide 7: Summary Q1-2 2009
Summary Q1-2 2009 MSEK Q1-2 2009 Q1-2 2008 1) Change % Order intake 5 940 6 748 -25 2) Net sales 6 106 6 512 -22 2) Operating earnings (EBIT1) 859 1 234 -30 Operating margin, % 14.1 18.9 -4.8 Earnings before taxes excl. NRI 761 1 094 -30 Non recurring items, net -175 - n.a. Earnings before taxes 586
Slide 8: Cash flow
Cash flow MSEK Q2 ‘09 Q2 ‘08 H1 ’09 H1 ‘08 FY ‘08 Cash flow from operations before changes in working capital 521 764 878 1 417 2 587 Changes in working capital 177 -264 86 -737 -832 Cash flow from operations 698 500 964 680 1 755 Ordinary investment activities -197 -233 -431 -443 -1 005 Operating c
Slide 9: Currency effects
Currency effects Q1-2 Movement 1) Income - cost Profit impact CHF Strengthened Negative Negative USD Strengthened Positive Positive EUR Strengthened Positive Positive CNY Strengthened Positive Positive EBIT, Q2 55 MSEK EBIT, Q1-2 105 MSEK 1) As compared to SEK. 9
Slide 10: Market overview
Market overview 10
Slide 11: Measurement Technologies – market development
Measurement Technologies – market development 1) Market size 2007: 100 000 MSEK Hexagon’s share 2007: 11 % or 10 900 MSEK BSEK Average market growth: app. 8% over the cycle rend Long-term t 100 Actual market size share Hexagon MT market ’07 ’07H1 ’08 ’08H1 ’09 ’09H1 2010 1) Hexagon estimates 11
Slide 12: EMEA market trends, Q2
EMEA market trends, Q2 Weak demand in Western Europe Share of sales 47 % Construction & industrial related segments Customers reduced inventory levels Aerospace & the alternative energy industries showed continuous growth Geosystems business signs of bottoming out Metrology still in declining trend
Slide 13: Americas market trends, Q2
Americas market trends, Q2 Weak demand in NAFTA Share of sales 24 % Customers reduced inventory levels Automotive segments still weak Residential housing signs of turnaround UAV business double digit growth No significant impact from stimulus programmes South America sees recovery in demand Q2 Q2 Gr
Slide 14: Asia market trends, Q2
Asia market trends, Q2 China: Share of sales 29 % Accelerated demand for infrastructural projects Chinese car industry growing significantly India, Japan & Korea displayed strong growth Australia & SEA still depressed Asia now represents Q2 Q2 almost 1/3 of sales Growth, % Group MT Order intake 1 1
Slide 15: Recorded and organic growth in sales
Recorded growth in sales 2007 2008 2009 % Year Q1 Q2 Q3 Q4 Year Q1 Q2 EMEA 4 6 10 -18 -25 -7 -36 -35 Americas 9 39 4 -10 -18 1 -24 -22 Asia 27 22 24 11 26 21 15 20 Total 8 15 11 -11 -16 -1 -25 -21 Organic growth in sales 2007 2008 2009 % Year Q1 Q2 Q3 Q4 Year Q1 Q2 EMEA 13 8 11 5 -15 3 -29 -35 Ameri
Slide 16: Business development
Business development O)) HEXAGON 16
Slide 17: Measurement Technologies Q2 2009
Measurement Technologies Q2 2009 MSEK Q2 2009 Q2 2008 Change % Order intake 2 884 3 227 -23 1) Net sales 2 983 3 135 -20 1) Operating earnings (EBIT1) 489 683 -28 Operating margin, % 16.4 21.8 -5.4 1) Adjusted to fixed exchange rates and a comparable group structure (organic growth). 17
Slide 18: Measurement Technologies Q1-2 2009
Measurement Technologies Q1-2 2009 MSEK Q1-2 2009 Q1-2 2008 Change % Order intake 5 818 6 376 -22 1) Net sales 5 925 6 109 -19 1) Operating earnings (EBIT1) 922 1 249 -26 Operating margin, % 15.6 20.4 -4.8 1) Adjusted to fixed exchange rates and a comparable group structure (organic growth). 18
Slide 19: Measurement Technologies net sales
Measurement Technologies net sales MSEK Q2 ‘09 Q2 ‘08 Change %1) Geosystems 1 806 1 830 -16 Metrology 976 1 168 -32 Technology 201 137 18 Total Hexagon MT 2 983 3 135 -20 MSEK Q1-2 ‘09 Q1-2 ‘08 Change %1) Geosystems 3 447 3 539 -17 Metrology 2 066 2 299 -27 Technology 382 271 14 Total Hexagon MT 5 9
Slide 20: Measurement Technologies applications - organic growth yoy
Measurement Technologies applications - organic growth yoy % 80 Area Weight% 60 Technology 7% Geosystems 61% 40 Metrology 32% 20 Total 100% 0 -20 -40 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 20
Slide 21: Orders and product releases
Orders and product releases 21
Slide 22: Product release: Leica T30 total station
Product release: Leica T30 total station for surveying & monitoring Geosystems Geomatics Construction GIS TS 30 Redefining precise surveying by offering unmatched accuracy and quality Most precise angle measurements (0.5”) New direct drives using Piezo technology for higher productivity Long service
Slide 23: Product release: Leica SmartNet Europe
Product release: Leica SmartNet Europe Geosystems Geomatics Construction GIS SmartNet Europe website serves as a new gateway to commercial GNSS Network services Connects all Hexagon reference networks and stations in Europe Interactive map with over 1000 Hexagon reference stations installed 23
Slide 24: Product Release GeoMax ZPG800 Pro in China
Product Release GeoMax ZPG 800 Pro in China Geosystems Geomatics Construction GIS Launch of a new GeoMax ZPG800 PRO GPS Surveying System in China. Released to the worldwide market in July 2009. 24
Slide 25: Customer order for total stations
Customer order for total stations Geosystems Geomatics Construction GIS Leica TPS1200+ and the new Leica TS30 total stations Tunnel construction Paris Metro Underground construction in Rome Integrated monitoring system for the control of underground excavation in the most important historical area 2
Slide 26: Customer order: monitoring system for bridge over Amazon river
Customer order: monitoring system for bridge over Amazon river Geosystems Geomatics Construction GIS 3.505 meters length, 73 spans between the pillars, each one with 45 meters length The length of the stayed span is 400 meters and its central tower will be 182 meters high Hexagon instruments will pe
Slide 27: Customer order for Opticell white light measuring system
Customer order for Opticell white light measuring system Geosystems Geomatics Construction GIS Shanghai VW quality control project Measurements of different parts: doors, hood, chassis Precision: <+/-0.1mm Challenge: installation on the workshop, beside the production line, no foundation 27
Slide 28: American Recovery and Reinvestment Act of 2009 (ARRA)
American Recovery and Reinvestment Act of 2009 (ARRA) Geosystems Geomatics Construction GIS Hexagon actively pursues ARRA projects ARRA includes several large concrete paving jobs Hexagon offers automation for concrete paving machines: increasing production and reducing material waste Several projec
Slide 29: 1st Reference Stations Technology Center in Asia-Pacific region
1st Reference Stations Technology Center in Asia-Pacific region Geosystems Geomatics Construction GIS 4th Reference Stations Technology Center after Switzerland, USA and Australia Provides an overall service to our customers – product demo and testing, training, support Based in Wuhan, China 29
Slide 30: Product release: SmartRod
Product release: SmartRod Geosystems Geomatics Construction GIS Telescoping laser rod with an inbuilt non-mechanic measuring “tape” and a linear laser receiver at it’s top. Measures below 1 meter up to above 4 meters Time saving, no more measuring errors 30
Slide 31: Product release: Leica Roteo
Product release: Leica Roteo Geosystems Geomatics Construction GIS Rotating laser for interior construction First green laser beam within Hexagons history 4 times increased visibility Three models for every application 31
Slide 32: Customer orders for Terrestrial Scanning Systems
Customer orders for Terrestrial Scanning Systems v Geosystems Geomatics Construction GIS Strategic applications: Oil company Saudi Aramco, Saudi Arabia Metro Police, Washington DC Department of Transportation, South Carolina, USA Brazilian software company Char*Pointer Technologies uses Scanners in
Slide 33: Customer order for Airborne Laser Scanners in Japan
Customer order for Airborne Laser Scanners in Japan Geosystems Geomatics Construction GIS Several ALS60 Airborne Lidar Scanners sold for the project disaster protection in Japan 14 ALS will fly for the project With the new customer order, Hexagon is the No. 1 LIDAR supplier in Japan 33
Slide 34: Product release: Leica Ortho Express Bundle
Product release: Leica Ortho Express Bundle Geosystems Geomatics Construction GIS Fastest large-format processing solution for orthophotos (geometrically corrected aerial photographs) 1200km2 in only 7 hours processing time compared to 70 hours before Suitable airborne imaging platform for Disaster
Slide 35: Significant defense contracts renewed
Significant defense contracts renewed v Geosystems Geomatics Construction GIS Two key annual software maintenance agreements from US defense department agencies were renewed Signifying their continued commitment 35
Slide 36: Customer orders in South Africa and Turkey
Customer orders in South Africa and Turkey Metrology Stationary Portable First DEA „Prima“ CMMs sold in South Africa to Volkswagen Port Elizabeth In total six arms along 21 meters First ultra high accuracy (UHA) Leitz PMM-C sold in Turkey for national communication satellite production National Sate
Slide 37: Customer order for Leica T-Probe system
Customer order for Leica T-Probe system Metrology Stationary Portable Dacia Rumania ordered Leica Absolute Tracker with T-Probe Used for inspecting of parts, tools and cars 37
Slide 38: Contract award US Federal Aviation Authority
Contract award US Federal Aviation Authority Technology Contract to develop a Third Generation WAAS Ground Reference Receiver WAAS = wide area augmentation system, the North American augmentation to GPS, that makes it safe for air transportation use Contract over three years Includes support for mod
Slide 39: Contract award for WAAS receivers in Japan
Contract award for WAAS receivers in Japan Technology Contract for delivery of WAAS Generation 2 Reference Receivers to Japan Delivery will be in Q3 and Q4 39
Slide 40: Going forward
Oo S = S Tall o/ & \@) Se) 40 O)) HEXAGON
Slide 41: Expected market conditions 2009
Expected market conditions 2009 EMEA Western Europe expected to show negative growth in 2009 Middle East expected to slow down Russia and Africa expected to grow throughout 2009 Demand situation expected to improve further Americas as infrastructural North America expected to show government negativ
Slide 42: Seasonality in profit Q3
Seasonality in profit Q3 Prolonged vacations in Q3 puts pressure on already seasonally weak quarter Activity level for the global construction & infrastructural industry to improve during late autumn Adjusted for seasonality, main markets has bottomed out Q1 Q2 Q3 Q4 42
Slide 43: Summary Q2 2009 and Outlook 2009
Summary Q2 2009 Strong earnings & cash flow despite volume drop EBIT of 16 % in core business Organisation adapted to demand level – turning focus to opportunities for growth Outlook 2009 Experienced challenging first half of 2009 As stimulus programmes have an impact on infrastructural investments,
Slide 44: Hexagon – precision in everything
O)) HEXAGON precision in everything O)) HEXAGON 44
Slide 45: Disclaimer
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 tech