Hexagon - Annual Report 2005

Hexagon in Brief 2005 in Brief • Hexagon’s acquisition of Leica Geosystems consolidated its status as the world-leading provider of multidimensional metrology. • The Hexagon Automation business area and SwePart Verktyg were divested, as a natural element of Hexagon’s strategy of focusing operations on metrology and polymers. • Net sales increased by 17 per cent to MSEK 9,637 (8,256). • Operating earnings excluding capital gains and other non-recurring items increased by 35 per cent to MSEK 923 (686). • Earnings per share rose 38 per cent to SEK 10.27 (7.44). • The share price increased by 124 per cent, and was SEK 237 (106) at year-end. • The Hexagon share was successfully listed on SWX Swiss Exchange. • The Board of Directors is proposing increased dividends of SEK 3.00 (2.00) per share. 2004 Amounts in MSEK unless otherwise stated 2005 (IFRS) Change Net sales 9,637 8,256 17% EBITA operating earnings 923 686 35% Earnings before tax 705 541 30% Net earnings 618 420 47% Operating margin, % 9.6 8.3 1.3% Return on equity, % 18.0 17.8 0.2% Return on capital employed, % 10.8 13.2 –2.4% Earnings per share, SEK 10.27 7.44 38% Equity ratio, % 29.0 33.7 –4.7% Share price as of 31 December 2005, SEK 237 106 124% Average number of employees in the year 6,111 5,935 3% 2002200320042005Average number of employees20015,0615,4285,4015,9356,1112002200320042005Cash flowMSEK2001310307440642764200220032004(IFRS) 2005Operating margin (EBITA) % 20015.67.36.88.39.6 3 HEXAGON ANNUAL REPORT 2005