No smoke without fire The Case of Ola

No smoke without fire: The Case of Ola Rollén Rebecca Huber | Linnéa Lindgren | Audrey-Ann B. Paquette

Hexagon at a glance Swedish company with HQ in Stockholm Founded in 1992 Develop sensors & software that enhance quality & productivity Assess current technological implementations & provide solutions to overcome challenges that industries are facing Agriculture, manufacturing, safety and infrastructure

What drives Hexagon Texte “to play a leading role in the effort to solve the challenges our world is facing by delivering information technology that fuel possibility” Profit-driven Engaged Profession al Customer focused Innovative Entreprene urial

From a small conglomerate to the market leader Technology market leader Small conglomerate from 1992 until 2000 Global IT solutions provider

Ola Rollén happened

The Ola Rollén phenomenon Texte 2000 2005 Emerged as new CEO Brought in structure, vision & strategy Transformed Hexagon into market leader Leader of the Year Award by the Business World 2014 & 2016 Named among the best-performing CEOs inthe world by the Harvard Business Review 2015 Geospatial Business Leader of the Year award by Geospatial Media and Communications

Ola Rollén: An exemplary leader 400 Market capitalization value: Increased from 1 billion SEK to approximately 150 billion SEK 300 200 100 0 -100 100 M 0 M 1994 (Source: Hexagon, 2018 e) 1997 2000 2003 2006 2009 2012 2015 2018

The Incident

What is insider trading? Insider trading refers to the buying or selling of a public company’s stock or other securities by someone who has access to nonpublic information or material about the security or the company. Investopedia, 2018

October 2015: A month to remember Texte Rollén made the following transactions: Ø 2 million shares under Greenbridge Ltd Ø 284, 000 shares under Iskossala Ltd So far, so good.

October 2015: A month to remember 83. 5 % Next Biometrics’ stock price jumped

The situation escalated one year later

March 2017: Rollén officially accused

So, what is the situation? 1 2 Rollén is seen as an exemplary leader, highly valued by internal and external stakeholders He is accused of insider trading and in the spotlight of Scandinavian media

Board of Directors: Your time to shine Taking the role of the Board of Directors, you are now to decide on the future of the company. How should you deal with the situation; should Ola Rollén be dismissed or retained as CEO of Hexagon? How will your decision affect Hexagon’s reputation? Why keep Rollén as CEO? Why dismiss Rollén as CEO?

The Swedish business hero in Oslo’s courtroom

Hexagon’s share price during the incident 1 Slight dip when the situation escalated in October 2016 2 Stronger ever since (Source: Avanza, 2018)

The Verdict • Prosecutor had access to Rollén’s text messages, emails and private computer • She did not manage to prove Rollén’s guilt • The burden of proof for insider trading cases is very high, The Oslo City Court finally acquitted Ola Rollén on January 10 th 2018, rejecting all charges of insider trading.

Dear Board of Directors: Does this change anything? 19

Hexagon’s Board Reaction 1 Board of Directors kept him 2 Showed faith and trust in Rollén from Day 1

“All this time, we have acted upon the basic principle that nobody is guilty until the contrary is proven. In retrospect, we can see that our actions were right both for the company and for the 21 shareholders. ”

To be continued… He was summoned to appear in court again and the case remains open…

Thank you Any questions? 23