The Hexagon Share SHARE CAPITAL HISTORY Increase Total Nominal Change in No. of Total No. of in share share Year Transaction Value A shares B shares A shares B shares capital capital 2000 10 – – 840,000 13,953,182 – 147,931,820 2002 Rights issue 10 210,000 3,488,295 1,050,000 17,441,477 36,982,950 184,914,770 2004 New issue, options exercised 10 – 10,170 1,050,000 17,451,647 101,700 185,016,470 2005 New issue, options exercised 10 – 722,635 1,050,000 18,174,282 7,226,350 192,242,820 2005 Bonus issue 12 – – 1,050,000 18,174,282 38,448,564 230,691,384 2005 Split 3:1 4 2,100,000 36,348,564 3,150,000 54,522,846 – 230,691,384 2005 New issue, options exercised 4 – 154,500 3,150,000 54,677,346 618,000 231,309,384 2005 Private placement*) 4 – 11,990,765 3,150,000 66,668,111 47,963,060 279,272,444 2005 Private placement*) 4 – 82,000 3,150,000 66,750,111 328,000 279,600,444 *) Contribution in kind coincident with the acquisition of Leica Geosystems. Dividends and Dividend Policy Hexagon’s earnings performance and equity ratio are decisive to dividend payouts. Hexagon’s dividend policy stipulates that 25–35 per cent of net earnings should be paid as dividends to shareholders, assuming the corporation satisfies its equity ratio objective. The Board of Directors is proposing that the Annual General Meeting of 4 May 2006 approves a 50 per cent increase in dividends to SEK 3.00 (2.00) per share, corresponding to MSEK 210 (115). This dividend would correspond to 29 per cent (27) of earnings per share after tax and 3.9 per cent (4.6) of consolidated shareholders’ equity. As of 31 December 2005, consolidated non-restricted reserves were MSEK 1,594 (1,405). The dividends approved by the AGM will be paid by VPC to those shareholders recorded in the share register on the record date. VPC anticipates that shareholders will have received dividends on 12 May 2006, assuming the AGM approves the Board’s proposal of 9 May 2006 as record date. KEY FINANCIAL RATIOS 2004 2004 SEK / share 2005 (IFRS) (RR) 2003 2002 2001 2000 Share price 237 106 106 65 46 41 37 Shareholders’ equity 77 45 42 41 40 37 35 Earnings 10.27 7.44 6.44 3.98 3.58 3.0 2.90 Cash flow 12.80 11.57 11.57 7.93 5.88 6.46 5.71 Dividends 3.001) 2.00 2.00 1.532) 1.53 1.53 1.53 Dividend yield, % 1.3 1.9 1.9 2.3 3.3 3.8 4.1 Dividend payout ratio, % 29 27 31 38 43 51 53 P/E ratio 23.1 14.2 16.4 16.4 12.8 13.6 12.8 1) Board proposal. 2) In addition to ordinary dividends (SEK 1.53), Hexagon’s total shareholding in VBG AB, quoted on the O-list, was spun off to Hexagon’s shareholders. 200220032004(RR) 2004(IFRS) 2005Earnings per share and dividendSEK20013.003.583.986.447.4410.27SEK1.531.531.532.002.003.002002200320042005Cash flow per shareSEK20016.465.887.9311.5712.80Geographical distribution of shareholdersSwedenUSAUKLuxembourgSwitzerlandOther 30 HEXAGON ANNUAL REPORT 2005