Half Year Statement

st th Interim Report January 1 - June 30 2000 The First six months 2000 * The Profit after financial items increased by 44% to 101,8 Msek (70,6) including a non-recurring pay back of surplus funds from SPP and capital gains * Order intake increased by 6% in comparable structure * Invoiced Sales increased by 3% in comparable structure Second quarter 2000 * Profit after financial items increased by 62% excluding non-recurring items (SPP) and capital gains * Hexagons subsidiary Dacke Hydraulik finalised its acquisition of Berendsen th PMC Norden on June 13 * Moteco Launches GigaAnt AB that will capitalise on Hexagons Blue Tooth antenna developments For further information, please call: Ola Rollén, President & C.E.O., Hexagon AB, Tel. No. +46 (0) 70-511 61 73 Subscriptions: Hexagon's financial information is available via e-mail at www.hexagon.se. Select Reports or Press Releases Hexagon AB (publ) Tel No. +46 (0) 418 - 44 92 00 Kronobryggan Fax No. +46 (0) 418 - 44 92 08 S-261 31 LANDSKRONA Website: www.hexagon.se Sweden E-mail: postmaster@hexagon.se The Second quarter 2000 The Income before taxes was 122,3 Msek (32,1). Hexagon received the awaited pay back of surplus funds from SPP during the second quarter. The total amount booked was 66 Msek. The gain is reflecting the net present value of projected cash payments during the next coming five years. The income before taxes rose by 62% to 56,6 Msek (35,0) excluding non-recurring items. The Profit improvement derives from lower operational costs as well as a marginally higher volume. The Group net revenue increased by 8% to 1289 Msek (1195). The Net revenue reflects an increase by +2% in a comparable group structure. The Order intake increased by 3% in a comparable structure to 1343 Msek (1307). Quarterly figures 1999 2000 Msek Q 1 Q 2 Q 3 Q 4Q 1 Q 2 Order intake 1 222 1 237 1 056 1 251 1 292 1 343 Invoiced Sales 1 207 1 195 1 019 1 246 1 210 1 289 Income before taxes 58 32 37 52 47 122 st th January 1 - June 30 2000 Group Income and Net Revenue The Income before taxes for the first six months was 169,2 Msek (90,0) including the pay back of surplus funds from SPP. Capital gains amounts to 1,8 Msek (19,4). The Income before taxes excluding capital gains and the SPP pay back rose to 101,8 Msek (70,6) reflecting an increase by 44%. The Group Net Revenue amounted to 2 499 Msek (2 402) reflecting a growth by 4%. The Berendsen acquisition has only had a marginal effect on the first six months. Order intake The Order intake rose by 6% in a comparable structure. In its current structure the order intake rose by 7% to 2635 Msek (2459). Acquisitions and divestitures On June the 13th 2000 Hexagon concluded the acquisition of Berendsen PMCs Hydraulics business in the Nordic countries Sweden, Denmark, Norway and Finland. The Business annual turn over is 1100 Msek. The Acquisition is expected to contribute to Hexagons earnings all ready this year. The Transaction value is 177 Msek, which is 26 Msek less than the acquired net assets book value. Hexagon has created a restructuring reserve in order to meet charges in order to restore the Berendsen businesses´profitability.A Transaction goodwill, amounting to 22 Msek, has been established. Hexagon will, thanks to the acquisition become the leading Hydraulics supplier in The Nordic region. During the first quarter of 2000 Nybro Stålprodukter, a subsidiary of Johnson Industries, acquired a small steel distributor, Euro steel AB, in order to develop an e-commerce solution for its products. Dacke Hydraulik acquired GL Hydraulik AB, a Swedish hydraulics service and maintenance company. During March the assets of AKA VVS AB were sold. .Profitability The Return on equity after tax was 21%(10). The Return on Capital employed was 16 % (11). Group financial position th The Solvency ratio was, as of June the 30 40% (45) after the dividend pay out of 74 Msek (74). The Book equity amounted to 1465 Msek (1344). Cash including non-utilised checking accounts amounted to 415 Msek (359). The Non-utilised portion of the syndicated bank loan amounted to 558 Msek (826). The Groups net debt amounted to 938 Msek (649). The Net gearing was 0,64 (0,48). Interest coverage ratio was 7,9 times (4,3). The Groups investments in fixed assets amounted to 87 Msek (79). The Group has sold assets for a net worth of 6 Msek (8). Group depreciations amount to 99 Msek (96). The Forecasted tax rate is estimated to 11%, due to the loss carry forward deductions in Sweden. Cash Flow The Cash Flow from operations before working capital changes was 234 Msek (87), which corresponds to a Cash earnings per share value of 15,84 SEK (5,84). The Net Cash flow from operations improved to 76 Msek (4). ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/01/20000801BIT00480/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/01/20000801BIT00480/bit0002.pdf The full report