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HEXAGON • • • • • INTERIM REPORT 1 JANUARY - 31 MARCH 2021 FIRST QUARTER Net sales increased by 10 per cent to 977.9 MEUR ( 889.9 ) . Using fixed exchange rates and a comparable group structure ( organic growth ) , net sales increased by 11 per cent Adjusted operating earnings ( EBIT1 ) increased by 34 per cent to 257.9 MEUR ( 192.4 ) Earnings before taxes , excluding adjustments , amounted to 250.3 MEUR ( 186.6 ) Net earnings , excluding adjustments , amounted to 205.2 MEUR ( 153.0 ) Earnings per share , excluding adjustments , amounted to 0.56 EUR ( 0.41 ) Operating cash flow increased to 211.9 MEUR ( 136.9 ) 11 % ORGANIC GROWTH 26 % ADJUSTED OPERATING MARGIN 107 % MEUR Net sales Q1 2021 Q1 2020 A % 977.9 889.9 111 ) Adjusted gross earnings² ) 629.6 571.6 10 CASH CONVERSION Adjusted gross margin , % ² ) 64.4 64.2 0.2 Adjusted operating earnings ( EBITDA ) 2 ) 366.7 287.2 28 Adjusted EBITDA margin , % ² ) 37.5 32.3 5.2 Adjusted operating earnings ( EBIT1 ) ² ) 257.9 192.4 34 Adjusted operating margin , % ² ) 26.4 21.6 4.8 Earnings before taxes , excluding adjustments 250.3 186.6 Adjustments ( before taxes ) ³ ) -4.8 Earnings before taxes 245.5 186.6 Net earnings 201.3 153.0 32 Net earnings , excl . adjustments 205.2 153.0 34 Earnings per share , EUR 0.54 0.41 32 Earnings per share , excl . adjustments , EUR 0.56 0.41 སྒྱུ་ 88 $ སྐྱ ཆ 34 n.a. 32 37 1 ) Adjusted to fixed exchange rates and a comparable group structure , i.e. organic growth . 2 ) For definition , see page 16 . 3 ) Adjustments in 2021 relate to a share programme ( LTIP ) . COMMENTS FROM THE CEO " We had a strong start to the year , with 11 per cent organic growth , first - quarter earnings at an all - time high and continued solid cash conversion . We saw acceleration in Europe and China - with China recording an impressive 73 per cent organic growth , supported by increased customer activities across all industries . Geosystems continued its positive momentum , recording 22 per cent organic growth , supported by robust global activity in construction and infrastructure markets and increased demand for new solutions . The Manufacturing Intelligence division continued to improve , recording 12 per cent organic growth , mainly driven by the acceleration in China , a recovery in the automotive sector and solid growth in the software portfolio . The Safety and Infrastructure division faced a tough comparison , recording -2 per cent organic growth . As expected , PPM continued to face a challenging oil and gas market , leading to an organic decline of -4 per cent . However , the strategic diversification of PPM's business is progressing , reflected in solid growth in the asset information management , cyber security and AEC portfolios . Although some sectors continue to face uncertainty , we remain confident in our continued growth trajectory . We are in a strong position to expand our focus and benefit from the transformative forces surrounding autonomy , electrification , safety and decarbonisation . " - Ola Rollén , President and CEO , Hexagon AB HEXAGON INTERIM REPORT 1 JANUARY - 31 MARCH 2021 1