Slide 1: Q2 2021
Q2 2021 July 20, 2021 Helena Hedblom, President and CEO Anders Lindén, CFO
Slide 2: Highlights Q2 2021
Highlights Q2 2021 • Record orders received – High customer activity – Strong demand for both aftermarket and equipment • Covid-19 pandemic affects us all – Safety first – Limited impact on the business • Increased revenues – Limited impact from supply-chain challenges • Improved profitability • Bat
Slide 3: Key financials
Key financials Orders received, MSEK and change, % • Orders received up 37% to 11 070, +45% organic 12 000 +37% -9% 11 070 – Equipment +76% organic 11 000 +1% 10 000 – Service +26% organic +45% 9 000 8 105 – Tools & Attachments +42% organic 8 000 • Organic revenue growth of 22% 0 • Operating profit
Slide 4: Leading productivity and sustainability partner
Leading productivity and sustainability partner Innovations, acquisitions and partnerships strengthen Epiroc’s position • Innovations – Dynamic Tunneling Package – Essential Line working tools • Partnership – NEXGEN SIMS • Acquisitions - Creating options for the future – Kinetic Logging Services – M
Slide 5: Strong demand for all types of aftermarket solutions
Strong demand for all types of aftermarket solutions Revenues • High customer activity • Strong offering – Connected fleet growing 26% (24) • Training T&A 31% (33) Equipment • Supply chain Aftermarket 69% (67) 43% (43) Service Q2 2021 5
Slide 6: Actions for operational excellence
Actions for operational excellence • Supply-chain improvement program continues – Higher availability – Positive financial effect offset by supply-chain challenges • Supply-chain challenges – Limited effect on revenues • Previously announced initiatives finalized • RPA - Robotic Process Automation Q
Slide 7: Sustainability: People & planet
Sustainability: People & planet • Leadership conference Before: Diesel • Planet: – Battery-electric advancements – Lower CO2 emissions from transport • People: – Increased share of women – Higher sick leave due to Covid-19 After: Battery electric Q2 2021 7
Slide 8: Operating profit and margin
Operating profit and margin Operating profit and margin 4 000 23.2 23.0 22.6 24 21.7 21.3 21.7 21.0 20.4 20.7 20.9 3 500 20.2 20.3 22.6 22.4 21 21.3 21.2 18.7 20.9 21.3 20.5 3 000 19.7 19.7 19.6 18 18.4 19.0 2 500 2 302 16.8 2 279 15 2 197 2 154 39 2 160 2 131 67 1 991 2 024 1 989 1 911 1 896 2 016
Slide 9: Epiroc Group – Profit bridge
Epiroc Group – Profit bridge Adj. Margin: Margin: margin: 16.8% 22.4% 22.6% 2 182 2 197 2 200 -139 +137 15 -0.1pp +1.3pp 2 000 +766 1 800 +4.4pp 1 600 1 418 1 400 1 200 1 000 400 200 0 Q220 Organic Currency Structure/other* Q221 LTI Adjusted operating profit Q2 2021 9
Slide 10: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % +37% • Orders received up 46% organic 9 000 -10% 8 387 – Equipment +76%, a few large orders 8 000 +1% +46% – Service +26%, high customer activity and strong 7 000 service offering 6 129 6 000 • Revenues up 19% organic 0 • Operating pro
Slide 11: Equipment & Service – Profit bridge
Equipment & Service – Profit bridge Margin: Margin: 22.4% 26.2% 2 000 -125 +9 1 880 -0.1pp 0.0pp 1 800 +555 +3.9pp 1 600 1 441 1 400 1 200 400 200 0 Q220 Organic Currency Structure/other Q221 Q2 2021 11
Slide 12: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % • Orders received up 42% organic 3 000 +35% – Orders for both hydraulic attachments and -7% 0% 2 678 consumables increased 2 500 +42% – Strong growth in exploration consumables 1 980 2 000 • Revenues up 31% organic 0 • Operating profit
Slide 13: Tools & Attachments – Profit bridge
Tools & Attachments – Profit bridge Margin: Margin: 7.0% 16.5% 450 416 400 42 -18 +1.7pp -0.2pp 350 300 249 250 +8.0pp 200 150 143 100 50 0 Q220 Organic Currency Structure/other Q221 Q2 2021 13
Slide 14: Costs, net financials and tax
Costs, net financials and tax • Increasing costs Administration, marketing and R&D expenses – Growth and increased activity 2 000 30 – Investments for the future 1 745 1 708 1 671 1 640 1 570 25 – Positive effects from finalized initiatives 1 511 1 500 1 427 1 360 1 380 20 • Net financial items MSEK
Slide 15: Capital structure
Capital structure Net debt and Net debt/EBITDA • Strong financial position, despite distribution 0.6 6 000 to shareholders 0.5 0.43 5 000 – MSEK 5 127 paid in dividend and redemption 0.4 4 000 0.3 0.24 3 000 – Net cash MSEK 322 (1 819) 0.2 4 217 2 000 0.1 2 416 0.05 • Net debt/EBITDA ratio at -0.03
Slide 16: Capital efficiency
Capital efficiency Net working capital was MSEK 11 368 (12 084) ROCE at 23.4% (22.7) – Down 6%, of which 4% currency 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 35 244 34 700 33.8 33.8 33.1 33 800 35 35 000 31 838 31 698 30.8 31 101 50 20
Slide 17: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q2 2021 Q2 2020 3 000 300 Operating profit 2 182 1 418 2 827 Depreciation, amortization and impairment 411 441 2 500 250 Capital gain/loss and other non-cash items 1 49 2 156 2 000 1 963 200 2 594 1 908 1 883 Net financial item
Slide 18: Summary
Summary • High customer activity • Record high orders received • High revenue growth • Improved profitability • Several acquisitions • Good development for BEV • Dare to think new Q2 2021 18
Slide 19: Looking ahead
Looking ahead “We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term.“ Q2 2021 19
Slide 20: Capital Markets Day
Save the date Capital Markets Day December 1, 15:00 CET See you online! Q2 2021 20
Slide 21: Q&A
Q&A
Slide 22: 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 23: 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