Net Sales
Target: Hexagon’s target is to reach net sales of 3.5 billion EUR by the end of 2015. This target is to be achieved through a combination of organic growth, acquisitions and revenue synergies.
In 2012, operating net sales amounted to 2 380.0 MEUR (2 177.6), corresponding to an organic growth of 5 per cent. Asia was the fastest growing region with 9 per cent organic growth and Metrology was the fastest growing division with organic growth of 9 per cent.
Operating Margin
Target: Hexagon’s target is to reach an operating margin of 25 per cent by the end of 2015.
In 2012, the operating margin amounted to 20.6 per cent. This is an increase of 0.4 percentage points compared to 2011. For Hexagon's core business, Measurement Technologies, the operating margin increased by 0.5 percentage points to 21.8 per cent.
Earnings Per Share
Target: Hexagon’s target is to increase earnings per share by at least 15 per cent annually. Hexagon considers strong growth in earnings per share to be the best way to measure shareholder value.
In 2012, earnings per share increased by 20 per cent and amounted to 1.01 EUR. This outcome is above target.
Equity Ratio
Target: Hexagon’s target is to have an equity ratio of at least 25 per cent. A high equity ratio is a requirement for financing acquisitions by borrowings.
At the end of 2012, the equity ratio amounted to 51.0 per cent.
Cash Flow
Target: Hexagon’s target is to have a positive cash flow over a business cycle. A strong cash generation is necessary to pay for investments, servicing debt and paying dividends to shareholders.
In 2012, cash flow from operating activities amounted to 497.3 MEUR. This corresponds to cash flow of 1.41 EUR per share. Operating cash flow amounted to 325.5 MEUR.
Return on Capital Employed
Target: The long-term return on capital employed over a business cycle should amount to more than 15 per cent annually. The required return is based on an assumption of a long-term, risk-free interest rate of approximately 5 per cent and a risk premium of 10 per cent.
In 2012, capital employed increased by 2 per cent to 4 515.2 MEUR. Return on average capital employed was 11.0 per cent.