Hexagon Ab Class B · OMXSTO:HEXA_B
Hexagon Ab Class B — Q3 2005 Earnings Presentation
18 slides from Hexagon Ab Class B's earnings presentation, Oct 26, 2005
Slide 1: Interim Report 9 months
Interim Report 9 months 26 October, 2005
Slide 2: Agenda
Agenda • Summary Q3 and Q1 – Q3 • Leica integration • Questions & Answers
Slide 3: Recorded growth 2005 vs. 2004
Recorded growth 2005 vs. 2004 2005/2004 2004 Q1 Q2 Q3 Sweden 7% 10 % -2 % -17 % Europe 14 % 27 % 23 % -37 % NAFTA 49 % 85 % 42 % 17 % Asia 25 % 28 % 13 % 6% Other 2% - 28 % 18 % -21 % TOTAL 16 % 27 % 18 % - 19 % Adjusted growth 2005 vs. 2004 2005/2004 2004 Q1 Q2 Q3 Sweden 18 % 10% -2 % 4% Europe 7%
Slide 4: Q3 - Complicated to analyse
Q3 - Complicated to analyse Hexagon Automation Q3 2004 29 MSEK Capital gains Q3 2005 457 MSEK Non-recurring items Q3 2005 -109 MSEK -4-
Slide 5: Summary Q3 2005
Summary Q3 2005 Msek Q3 -05 Q3 -04 Change / Adjusted * Order intake 1 690 2 019 - 16 % / +9% Net sales 1 624 2 000 - 19 % / + 10 % OP (EBIT 1) 154 171 - 10 % % 9.5 % 8.6 % EBIT 502 166 +202 % % 30.9 % 8.3 % Financial, net -25 -29 PBT 477 137 +248 % % 29.4 % 6.9 % EPS 8.18 1.89 +333 % Investments - 8
Slide 6: Summary Q1 - Q3 2005
Summary Q1 - Q3 2005 Msek Q1-Q3 -05 Q1-Q3 -04 Change / Adjusted * Order intake 6 597 6 203 +6 % / +8% Net sales 6 372 5 886 +8 % / + 11 % OP (EBIT 1) 567 459 +24 % % 8.9 % 7.8 % EBIT 915 407 +125 % % 14.4 % 6.9 % Financial, net - 83 -66 PBT 832 341 +144 % % 13.1 % 5.8 % EPS 12.74 4.54 +181 % ROCE %
Slide 7: Cash flow Q1 – Q3 2005
Cash flow Q1 – Q3 2005 Q1-Q3 -05 Q1-Q3 -04 2004 Cash flow from operations 567 516 723 Change in working capital -Inventories -226 -159 -145 -Accounts Receivables -264 -405 -362 -Accounts Payables 145 313 319 -Others (Acq/Div/transl.diff) 91 117 107 -TOTAL - 254 -134 -81 Cash flow from operation 313
Slide 8: Non-recurring items in Q3 2005
Non-recurring items in Q3 2005 Amount Automation Capital gain + 457 MSEK Engineering restructuring - 69 MSEK Metrology prod. transfer - 25 MSEK Other - 15 MSEK TOTAL + 348 MSEK -8-
Slide 9: Update per business area
Update per business area O)) HEXAGON 9.
Slide 10: Development per business area Q1 – Q3 2005
Development per business area Q1 – Q3 2005 Adj. sales MSEK Inv.sales growth % Profit Margin % Automation 1 248 64 5 (5) Engineering 1 240 + 15 % 60 5 (6) Metrology 2 285 + 11 % 258 11 (9) Polymers 1 616 + 13 % 206 13 (14) Ass.companies 0 Group costs - 17 -21 EBIT 6 372 + 11 % 567 9 (8) - Financial,
Slide 11: Engineering
Engineering ¤ Good growth in the core business. ¤ Non core operations generated a loss amounting to -18 MSEK during the first nine months on a Sales turn over of app. 100 MSEK ¤ These entities have been disposed of or shut down in Q3, resulting in a non recurring cost of -69 MSEK. ¤ 2005 Outlook: Co
Slide 12: Metrology
Metrology ¤ Strong development in all segments Growth in EU fuelled by market share gains Strong order intake in the quarter USA – somewhat weaker due to crisis at “Big three” ¤ 6 % organic growth (Service and S/W + 14 %) in Q3, Order intake + 14 %. ¤ Launch of new products during H:2: Senso
Slide 13: Polymers
Polymers ¤ Strong organic growth in Q3 15 % incl. 5 % price increase. ¤ Raw material price increases continues ¤ So far we have managed to increase prices and rationalise operations in order to meet raw materials cost increases Price: + 5 % RM + 10 % Margin net: - 3 % Rationalisation savings
Slide 14: Leica Geosystems
Leica Geosystems ¤ 98,54 % (Official number) as of 12th October ¤ Cash paid out on the 14th October ¤ Shares distributed on the 26 October ¤ Secondary listing as of the 26th October ¤ Squeeze out process started ¤ De-listing as soon as Squeeze out is initiated ¤ Consolidation as of the14th October ¤
Slide 15: Leica Geosystems – status integration
Leica Geosystems – status integration Integration update: ¤ Integration committee consisting of Leica and Hexagon managers has been working for two weeks ¤ Business plan as presented during summer confirmed - 15 -
Slide 16: Outlook 2005
Outlook 2005 ¤ “ We will surpass our strategic target of an E.P.S. growth of at least 15 % per annum in 2005.” - 16 -
Slide 17: Thank you for your time - Questions?
Thank you for your time - Questions? - 17 -
Slide 18: Precision in everything
Precision in everything - 18 -