Risk management​ 

Risk: Hexagon engages in worldwide operations that are dependent on global economic and financial market conditions, as well as conditions that are unique to certain countries or regions. General economic and financial market conditions including the interest rate environment, affect the inclination and the capabilities of Hexagon’s existing and potential customers to invest in various technologies. Weak macroeconomic conditions globally or in part of the world may therefore result in lower market growth that falls below expectations and may reduce revenues for Hexagon, or it may have other effects, like extending the sales cycle.

The resurgence of a pandemic such as Covid-19 could have an impact on important Hexagon customer industries, and an increase of raw material and intermediate goods costs could impact Hexagon’s sales potential and cost structure. While the duration and severity of those impacts on Hexagon’s business are highly uncertain, they could have an adverse effect on the business, financial condition and results of operations in many ways, including disruptions in Hexagon’s supply chains. 

Risk management: Hexagon’s business is widely spread geographically, with a broad customer base within numerous market segments which may make the Group less sensitive to economic fluctuations in individual sectors, industries and geographical regions. Potential negative effects of a downturn in the developed world may, for example, be partially off-set by growth in emerging markets and vice-versa.

While Hexagon has developed and continues to develop plans intended to help mitigate the negative impact of economic downturns on the business, a protracted event would likely limit the effectiveness of those mitigation efforts.