To leverage these opportunities and build a strong financial profile for shareholders, we constantly look for efficiencies and investment opportunities to strengthen our skills and focus on growth areas.

Therefore, Hexagon will take a one-off charge of approximately 200 MEUR in Q3 2023, with a similar cash impact. The program will be implemented over the next 6 quarters and is expected to generate annualised cost savings of 160-170 MEUR, reaching the full run-rate impact in early 2025.

• Reduction of Hexagon's office and facilities footprint by approximately 25%
• Extraction of cross-divisional efficiencies to reduce overall overhead costs
• Optimisation of development, manufacturing and digital processes through automation
• Rationalisation of non-core business areas and activities

The annualised savings generated will be used to underpin Hexagon's operating margin target[1] while countering inflationary pressures and allowing continued investments in organic growth.

"Hexagon has a significant market opportunity, driven by long-term and cross-industry megatrends. Over the last few quarters we have assessed our operations through the lens of this potential and this efficiency program will provide a solid foundation for delivery," said Paolo Guglielmini, President and CEO, Hexagon.

For further information, please contact:
Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, ir@hexagon.com
Madlen Nicolaus, Chief Marketing Officer, Hexagon AB, +44 207 068 6575, media@hexagon.com

This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 26 July 2023.

[1] Hexagon's target is to reach an operating margin of more than 30 per cent by the end of 2026.