Hexagon AGM 2024 (Annual General Meeting)

Annual General Meeting of Hexagon AB for 2024

1. Annual general
meeting
Paolo Guglielmini| President and CEO

2. Hexagon is
the global
leader in
reality
technology.

3. We shape reality.
We help you transform data into
real world outcomes.
Empowering people to shape the
world responsibly.
10-13% of revenue
~5,000 R&D employees
5 divisions spread
across 50 countries
25,000+ employees
Innovation
at scale
Relevancy
that’s vital
Stability
that’s proven
+
+
+

4. Two realities,
one data flow.
An unmatched blend
of sensors and software for
delivering real world value.
Physical
Reality
Capture
Reality
Activation
Reality
Creation
Reality
Immersion
Digital
Data
Real world changes
Make reality digital
Availability at scale
From data to insights

5. Reality technology
in action.
of all car
manufacturing
95%
of all
smartphones
of all
airplanes
the tallest
building
Burj
Khalifa
the longest
railway
tunnel
Gotthard
Base Tunnel
one of the
widest
suspension
bridges
Sultan
Selim Bridge
protected
1 billion people
75%90%
Encourage
UNESCO
status
Qutub
Shahi tombs

6. Our divisional structure
Manufacturing
Intelligence
XX%
Automotive​
Aerospace​
Electronics​
Medtech
Machining ​
Autonomous
Solutions
Mining
Agriculture
Automotive
Defense
Marine positioning
Geosystems
Machine control Surveying Heavy construction Buildings Media & entertainment
Asset Lifecycle
Intelligence
Energy and power​
Petrochemical ​
Semi conductors ​
Pharmaceuticals​
Logistics Utilities
Communication
Public safety
Government
Mapping and geospatial
Safety Infrastructure
& Geospatial

7. Summary of the financial year 2023
Cash
conversion
80%
Recurring
revenues
7%
growth
Software and
services
60%
Acquisitions
6
Organic
growth
7%
5176
5440
2022 2023
Operating sales
MEUR
1518
1597
2022 2023
Adjusted operating earnings
MEUR
29,3
29,4
2022 2023
Adjusted operating margin
%

8. 28,9 29,0
Q1 2023 Q1 2024
371 377
Q1 2023 Q1 2024
1287
1300
Q1 2023 Q1 2024
First quarter 2024
Cash
conversion
88%
Software and
services
60%
Acquisitions
2
Organic
growth
3%
Recurring
revenues
6%
growth
Operating sales
MEUR
Adjusted operating earnings
MEUR
Adjusted operating margin
%

9. Acquisitions &
portfolio development

10. Acquisitions
LocLab
Market leader in 3D digital
twin content creation
Projectmates
SaaS-based enterprise
construction project
management software
CADS Additive
Provider of specialized
software for additive
manufacturing
HARD- LINE
Global leader in mine
automation, remote- control
technology and production
optimisation

11. PERI
Customer challenge
PERI required a solution to enable efficient
3D design and collaboration with an open
BIM approach. The transition needed to be
seamless to keep the 1,500-people user
base at highest performance.​
Customer background
PERI is a leading manufacturer and
supplier of framework and scaffolding
systems, and 3D construction printing
with more than 9,100 employees in
70 countries. ​
How Hexagon is helping
PERI now uses Hexagon’s design and engineering
software (BricsCAD) worldwide, and is developing a
new version of their PERI CAD, based on Hexagon’s
software, leveraging detailed planning, rich design
clarity and detailed drawing style.​

12. City of Hamburg,
Germany
Customer challenge
As part of its project (PERLE) to modernize its
public safety control room, Hamburg sought a
next-gen dispatching solution to support its
police, fire and EMS agencies.
Customer background
Hamburg has 1.85 million
inhabitants and is the second largest
city and the second smallest federal
state in Germany.
How Hexagon is helping
The HxGN OnCall portfolio provides a flexible,
reliable and modern core system for Hamburg’s
275 seats in its two command and control centers,
supporting the city well into the future.

13. Bayer AG
Customer challenge
Bayer AG needed to address siloed data
across engineering solutions, which negatively
affected the efficiency and quality of project
execution and increased time to market.
Customer background
Bayer is a global enterprise with
core competencies in the life
science fields of health care
and nutrition.
How Hexagon is helping
Bayer used a range of Hexagon’s solutions, including
HxGN SDx
®
, Intergraph Smart
®
P&ID and Intergraph Smart
3D, to introduce a digitalisation effort that allowed stakeholders
to access better quality data that contributed to better, faster
decision making, ultimately contributing to faster project delivery.

14. Mineral Resources Ltd.
(MinRes)
Customer challenge
MinRes needed to automate 120 road
trains, in order to overcome labour
shortages and safety concerns.
Customer background
Leading diversified resources
company, with extensive mining
operations across Western Australia.
How Hexagon is helping
Our autonomous road train solutions, impact
significant fuel & labour cost reduction and improve
safety for the first and largest road- train solution.

15. Featured partnerships

16. Sustainability

17. Sustainability reporting – progress in
increasing transparency
New ambitious targets for carbon emissions published
•95% reduced Scope 1 and 2 carbon emissions by 2030
•25% reduced carbon emissions in full value chain by 2030
Detailed CO2 yearly roadmap, describing associated levers
for change
Significantly increased number of reported ESG-related KPIs
from ~40 to ~250, following GRI and SASB standards
First double materiality analysis – assessing financial and
sustainability risks and opportunities of Hexagon’s business

18. Sustainability progress / KPIs
Defined the ESG governance house to ensure
proper oversight and sustainability’s link to
Hexagon’s business strategy.
Accomplished the goal of performing ESG
audits to all key suppliers in high-risk areas.
Decreased Scope 1 and 2 carbon emissions by
6% from 2022 to 2023.
Engaged more than 15,000 employees through
ESG trainings modules.

19. 2024 and beyond

20. Results and market cap summary
Organic growth Average annual growth of 5-7%
Growth via M&A Average annual growth of 3-5%
Operating margin
(EBIT1 incl. PPA)
More than 30% by the end of 2026
Conviction in
our existing
2022- 2026
targets
95% reduction of Scope 1 and 2 by 2030​
Net zero by 2050
Annual target range of 80-90%Cash conversion
ESG
Additional targets

21. 2024
Hexagon today
Positioned for long-term success
Strong track-record
Effective shift to SW centric solutions​
Conviction in
our financial
commitments
2026
Achieve
financial targets
Market leading tech brand
Automate and cloudify anything
Data capture is ‘asset light’
Connect Reality, assets and people
Analytics and AI at scale
Growth acceleration
Continued margin delivery
Stronger cash conversion
Highly recurring revenues
2030
Vision
and beyond
2024 and beyond