Hexagon launches new financial plan at Capital Markets Day

Hexagon launches new financial plan at Capital Markets Day

Press Release, Stockholm, Sweden, 6 June 2011

Hexagon hosts its capital markets day in Orlando, Florida, where it
updates its commentary around the markets where the company is active
and launches a new financial plan.

Hexagon's new financial plan stretches to 2015 and includes a sales
target of 3.5 billion EUR and an EBIT margin target of 25 per cent. The
sales target in the base case scenario is built upon the assumption that
the Measurement Technologies market grows at approximately 8 per cent
per year over the period up until 2015. Hexagon has more than 30 per
cent of its sales in emerging markets and about 40 per cent of its sales
stems from growth technologies and Hexagon will therefore grow faster
than its peers in the marketplace. The sales target in the base case
will be reached primarily by organic growth, but it also includes an
element of acquisitions.

Hexagon has also simulated a more negative scenario as part of the
overall planning for the coming 4 year period. In this scenario the
world economy is assumed to face a recession during one year where
volumes for the Group would drop by approximately 20 per cent. In this
scenario Hexagon would make one or more strategic acquisitions to take
advantage of the lower price expectations from potential sellers.
Hexagon's experience is that prices could drop as much as 40 per cent in
a recession. These acquisitions would compensate for the shortfall in
revenue and Hexagon would still reach the targeted sales level of 3.5
billion EUR. The targeted EBIT margin is 25 per cent also in this
scenario.

The two scenarios that were described at the capital markets day are not
the only possible outcomes. Different combinations of the two are
conceivable depending on the macro environment.

"The outlook for our markets looks promising for the remainder of 2011
with a continued recovery in mature markets and structural growth in the
emerging markets. For 2012 and beyond we will be more dependent on
growth in emerging markets, as well as, our own ability to create new
business opportunities since one cannot trust the mature markets to grow
at similar rates as in the last 18 months. Our base case scenario is
continuous growth over the next four years. Hexagon has, however, learnt
its lesson from the down-turn in 2009. We will therefore reduce leverage
and prepare ourselves to be able to capitalise on any weakening in the
marketplace by making strategic acquisitions at favourable price
levels", says Ola Rollén, CEO and President of Hexagon AB.

A large group of investors, analysts and journalists participated at the
Hexagon Capital Markets Day 2011. During the 6-7th of June Hexagon will
present interesting products and technologies within the areas of
Geosystems, Metrology and Technology.

The presentation given by Ola Rollén will be available at Hexagon's
webpage www.hexagon.com

For further information please contact: Mattias Stenberg, IR Manager,
Hexagon AB, +46 8 601 26 27, ir@hexagon.se