Slide 1: Q1 2021
Q1 2021 April 28, 2021 Helena Hedblom, President and CEO Anders Lindén, CFO
Slide 2: Record orders received
Record orders received Key highlights Q1 2021 • High customer activity and record orders received – Strong demand for all types of aftermarket solutions – Investment willingness remains – Several medium/large equipment orders • Strong demand for autonomous solutions • Improved profitability and stab
Slide 3: Key financials
Key financials Q1 2021 Orders received, MSEK and change, % • Order intake up 9% to 10 690, +21% organic 12 000 +9% – Equipment +55% organic 11 500 -12% 11 000 10 690 +21% – Service +4% organic 10 500 0% 10 000 9 772 – Tools & Attachments +14% organic 9 500 • Organic revenue growth of 6% 0 • Operatin
Slide 4: Covid-19
Covid-19 Current status • Aftermarket – Focus on safeguarding the availability in aftermarket – Distribution centers and manufacturing facilities operational – Transports challenging but manageable – A few customers working with reduced capacity • Equipment – Manufacturing facilities operational – S
Slide 5: Driving the future in intelligent mining and infrastructure
Driving the future in intelligent mining and infrastructure Q1 2021 • Strong demand for autonomous solutions • Boomer M20 – New generation of our most sold face-drilling rig – Unique features: protected hydraulics and sensors • Battery retrofit for existing equipment – Diesel engine replaced with el
Slide 6: Strong demand for all types of aftermarket solutions
Strong demand for all types of aftermarket solutions Q1 2021 Revenues • Strong focus on safeguarding customers’ continuous operations • Strong demand over the line – Consumables 27% (27) 29% (28) T&A Equipment – Hydraulic attachments – Services – e.g. midlife upgrades Aftermarket 71% (72) • Increase
Slide 7: Actions for operational excellence
Actions for operational excellence Q1 2021 • Actions for operational excellence – Supply-chain improvement program continues o Increased availability in aftermarket – Service excellence o Improved efficiency in the service organization – And more • Actions for cost savings – MSEK +500 savings progra
Slide 8: Sustainability: People & planet
Sustainability: People & planet Q1 2021 • New Code of Conduct • Improved sustainability results • People: – Increased proportion of women managers – Fewer work-related lost-time injuries • Planet: – MWh energy from operations decreased – The CO2 emissions, tonnes, from transport the last 12 months d
Slide 9: Financials
Financials CEpiroc
Slide 10: Operating profit and margin
Operating profit and margin Q1 2021 Operating profit and margin 4 000 23.2 23.0 24 21.7 21.3 21.7 21.0 20.4 20.7 20.9 3 500 20.2 20.3 22.6 21 19.6 21.3 21.2 18.7 20.9 21.3 20.5 3 000 19.7 19.7 19.6 18 18.4 18.4 19.0 2 500 2 302 16.8 2 279 15 2 154 39 2 160 2 131 67 1 991 2 024 1 989 1 911 1 896 2 01
Slide 11: Epiroc Group – Profit bridge
Epiroc Group – Profit bridge Q1 2021 Adj. Margin: Margin: margin: 21.2% 21.3% 23.0% 2 400 2 200 -192 +307 -0.0pp +2.2pp 2 016 2 000 1 932 -180 -2.1pp 1 867 149 1 800 1 600 200 0 Q120 Organic Currency Structure and other* Q121 LTI Adjusted operating profit *Structure and other” includes operating pro
Slide 12: Segment: Equipment & Service
Segment: Equipment & Service Q1 2021 Orders received, MSEK and change, % • Orders received up 25% organic 9 000 +13% – Equipment +55%: Several medium/large orders 8 500 -12% 7 991 8 000 25% 0% – Service +4%: High customer activity and strong 7 500 service offering 7 101 7 000 • Revenues up 7% organi
Slide 13: Equipment & Service – Profit bridge
Equipment & Service – Profit bridge Q1 2021 Margin: Margin: 24.1% 26.5% 2 000 1 800 -186 +262 -0.4pp 1 696 +2.3pp +34 +0.5pp 1 586 1 600 1 400 200 0 Q120 Organic Currency Structure Q121 and other 13
Slide 14: Segment: Tools & Attachments
Segment: Tools & Attachments Q1 2021 Orders received, MSEK and change, % +2% • Orders received up 14% organic 3 000 – Orders for both hydraulic attachments and 2 900 consumables increased -12% 2 800 +14% – Strong growth in exploration consumables 2 700 -0% 2 674 2 619 2 600 • Revenues up 4% organic
Slide 15: Tools & Attachments – Profit bridge
Tools & Attachments – Profit bridge Q1 2021 Margin: Margin: 13.5% 16.5% 450 -18 400 +0.8pp -7 386 +74 -0.3pp +2.5pp 350 337 300 250 50 0 Q120 Organic Currency Structure Q121 and other 15
Slide 16: Costs, net financials and tax
Costs, net financials and tax Q1 2021 • Lower costs (excl. LTI) Administration, marketing and R&D expenses – Full effect from savings program (MSEK +500 p.a.) 2 000 30 1 745 1 708 • Net financial items MSEK -33 (-46) 1 663 1 671 1 640 25 1 511 – Interest net MSEK -20 (-33) 1 500 1 360 1 380 1 427 18
Slide 17: Capital structure
Capital structure Q1 2021 Net debt and Net debt/EBITDA • Strong financial position 0.6 6 000 – Net cash MSEK 5 747 (1 191) 0.5 0.43 5 000 0.39 0.4 4 000 • Net debt/EBITDA ratio at -0.64 (-0.12) 0.3 0.24 3 000 0.2 4 217 • Proposed distribution to shareholders of 3 641 2 000 0.1 2 416 0.05 1 000 SEK 5
Slide 18: Capital efficiency
Capital efficiency Q1 2021 Net working capital was MSEK 11 245 (13 457) ROCE at 20.9% (26.2) – Down 16%, of which 6% currency – Increased capital employed mainly due to accumulation of cash Net working capital Capital employed and ROCE 25 000 36.1 35.9 40 40 000 36 816 60 34.3 34.4 35.3 34 583 35 24
Slide 19: Operating cash flow
Operating cash flow Q1 2021 Operating cash flow and cash conversion rate, % MSEK Q1 2021 Q1 2020 Operating profit 1 867 1 932 3 000 2 827 300 Depreciation, amortization and impairment 382 440 2 500 250 Capital gain/loss and other non-cash items 6 110 2 156 2 000 1 963 200 2 255 2 482 1 883 Net finan
Slide 20: Record orders received
Record orders received Q1 summary • High customer activity and investment willingness • Several medium/large equipment orders and strong demand for automation and aftermarket • Improved profitability and stable cash flow • Improved sustainability KPIs • We dare to think new • Creating options for th
Slide 21: Near-term demand outlook
“We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term. 21
Slide 22: Capital Markets Day
Save the date Capital Markets Day December 1, 15:00 CET See you online! 22
Slide 23: Q&A
Q&A
Slide 24: United. Inspired.
United. Inspired. Performance unites us, innovation inspires us, and commitment drives us to keep moving forward. Count on Epiroc to deliver the solutions you need to succeed today and the technology to lead tomorrow. epiroc.com
Slide 25: Disclaimer
Disclaimer - Some statements in this presentation, or in conclusion to it, are forward-looking and the actual outcome may be different. In addition to the factors explicitly commented upon, the actual outcome may be affected by other factors such as macroeconomic conditions, movements in foreign exc