Slide 1: Q4 2022
Q4 2022 January 31, 2023 Helena Hedblom, President and CEO Håkan Folin, CFO
Slide 2: Highlights 2022
Highlights 2022 • Strong performance in a challenging market – Supply-chain challenges – Stopped deliveries into Russia on March 1 • High demand – Many large equipment orders – Strong aftermarket • Great execution and profitable growth • Ground-breaking innovations – Broadest BEV offering in the mar
Slide 3: Highlights Q4 2022
Highlights Q4 2022 • Demand remained high – High customer activity but fewer large orders • Profitable growth – Easing supply challenges and good output level – Record-high operating profit • High acquisition pace – Four acquisitions finalized, corresponding to MSEK 1 905 in annual revenues • Innova
Slide 4: Key financials
Key financials Orders received, MSEK and change, % • Orders MSEK 13 705, -4% organic 15 000 +18% – Excl. Russia: organic +3% 14 000 13 705 13 000 +11% • Record revenues MSEK 13 936, +8% organic 12 000 11 643 +11% -4% • Operating profit MSEK 3 235 (2 594) 11 000 – Items affecting comparability of MSE
Slide 5: Leading productivity and sustainability partner
Leading productivity and sustainability partner • Successful live blasting with Avatel™ – Collaboration with Orica and Agnico Eagle – The world's first semi-automated charging solution – Increased safety • Mine truck made with fossil-free steel – Collaboration with SSAB – Battery-electric Minetruck
Slide 6: Film: The world’s largest autonomous mixed fleet
Film: The world’s largest autonomous mixed fleet Q4 2022
Slide 7: Acquisitions: Creating options for the future
Acquisitions: Creating options for the future • CR expands Epiroc’s offering of essential consumables and digital solutions. • Mernok Elektronik strengthens Epiroc’s position as a world leading provider of automation and safety solutions for mining operations. • Remote Control Technologies* makes Ep
Slide 8: Aftermarket
Aftermarket Revenues • High customer activity • Good growth in service 21% (24) T&A • Regional Parts & Services 35% (34) Equipment divisions Aftermarket • Somewhat weaker T&A 65% (66) 44% (42) Service Q4 2022
Slide 9: Operational excellence
Operational excellence • Regional Parts & Services divisions • Regional distribution center in Chile • Potential to improve working capital • New battery assembly organization Q4 2022
Slide 10: Sustainability
Sustainability • People • Planet – 16 996 employees – Lower CO2e from operations o Acquisitions o More renewable energy and installation of solar panels – Increased share of women o Employees up to 18.2% (17.1) – Higher CO2e from transport due to higher volumes o Managers up to 22.7% (22.5) o Lower
Slide 11: Operating profit and margin
Operating profit and margin 23.4 23.6 23.9 23.7 4 000 23.2 23.0 22.9 23.3 24 22.6 21.7 23.6 23.7 20.7 20.9 23.2 22.7 23.2 3 500 22.6 22.4 3 302 21 21.2 18.7 20.9 21.3 67 20.1 3 064 3 000 19.6 164 18 2 801 2 554 2 588 16.8 420 2 500 2 279 2 197 2 331 15 2 131 67 2 016 15 2 000 115 1 911 1 896 12 76 1
Slide 12: Epiroc Group: Profit bridge
Epiroc Group: Profit bridge Adj. Margin: Margin: margin: 23.2% 23.2% 23.7% 3 400 3 302 -121 +217 3 235 +67 3 200 -1.7pp -0.8pp 3 000 +545 2 800 +2.5pp 2 594 2 600 2 400 2 200 400 200 0 Q421 Organic Currency Structure/other Q422 LTI Adjusted operating profit Q4 2022
Slide 13: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % • Orders received MSEK 10 926, -2% organic +24% 10 926 – E&S, excl. Russia +7% organic 11 000 +14% 10 000 • Revenues +12% organic 9 000 8 799 +12% -2% • Reported operating profit MSEK 2 827 (2 323) • Adjusted operating profit MSEK 2 82
Slide 14: Equipment & Service: Profit bridge
Equipment & Service: Profit bridge Margin: Margin: 27.3% 25.7% 3 200 3 000 +105 -192 -1.7pp -2.8pp 2 827 2 800 +591 2 600 +2.9pp 2 400 2 323 2 200 2 000 1 800 600 400 200 0 Q421 Organic Currency Structure/other Q422 Q4 2022 Q4 2021 includes a positive revaluation effect of the shares held prior to t
Slide 15: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % +5% • Orders received MSEK 2 940, -7% organic 3 000 +2% 2 940 – T&A excl. Russia, -4% organic 2 900 2 807 +10% • Revenues MSEK 2 984, +1% organic 2 800 -7% • Operating profit MSEK 523 (480) 2 700 – Operating margin of 17.5% (18.2) 0 Q4
Slide 16: Tools & Attachments: Profit bridge
Tools & Attachments: Profit bridge Margin: Margin: 18.2% 17.5% 550 +3 523 -0.1pp 500 480 +78 -38 +0.8pp 450 -1.4pp 400 50 0 Q421 Organic Currency Structure/other Q422 Q4 2022
Slide 17: Costs, net financials and tax
Costs, net financials and tax Administration, marketing and R&D expenses • Increased costs – Acquisitions and currency 3 000 45 – Growth and activity 40 2 500 2 367 – R&D 35 1 978 2 049 2 000 30 • Net financial items MSEK -189 (-27) 1 789 1 724 1 570 1 595 25 – Interest net MSEK -67 (-25) 1 500 1 38
Slide 18: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q4 22 Q4 21 2 500 2 415 350 Operating profit 3 235 2 594 2 156 300 Depreciation, amortization and impairment 651 491 2 000 1 814 Capital gain/loss and other non-cash items 124 -148 250 1 610 1 613 1 519 1 500 1 462 Net financia
Slide 19: Working capital
Working capital Net working capital Working capital • Inventory reflecting strong demand and supply chain 30 000 33.8 35 31.3 issues 25 000 29.0 30 • All time high for receivables 16 945 20 000 18 564 25 • Net working capital 11 861 15 000 20 MSEK 18 564 12 186 10 571 – Excl. acquisitions and fx +33
Slide 20: Capital efficiency
Capital efficiency Net debt and Net debt/EBITDA Capital employed and ROCE • Net debt at MSEK 3 691 1.0 8 000 45 000 44 534 60 – Acquisitions MSEK -4 201 0.8 55 6 000 40 000 – Dividend MSEK -1 809 35 329 50 0.6 34 700 3 691 35 000 4 000 45 – Working capital 0.4 0.28 30 000 40 2 000 0.2 35 • Net debt/
Slide 21: Proposed distribution to shareholders
Proposed distribution to shareholders Dividend and payout ratio (Year for payment) • Epiroc’s goal is to provide • Proposed distribution to 8 60 long-term stable and rising shareholders 56 7 55 dividends to its shareholders – Dividend of SEK 3.40 (3.00) 51 per share 6 49 49 50 • The dividend should
Slide 22: Summary
Summary • Strong but challenging 2022 • High customer activity in Q4 • Profitable growth • Dare to think new • Innovations that make a true difference • A stronger Epiroc than ever Q4 2022
Slide 23: Looking ahead
Looking ahead “We expect that underlying demand, both for equipment and aftermarket, will remain at a high level in the near term.” Q4 2022
Slide 24: See more of Epiroc!
See more of Epiroc! Capital Markets Day: June 1-2, 2023, Örebro, Sweden Q4 2022 ttps://www.epirocgroup.com/en/cmd2023
Slide 25: Q&A
Q&A
Slide 26: Appendix: Russia
Appendix: Russia Orders received, MSEK, excl. Russia • Q4 2022 – 3% organic order growth excl. Russia +28% – Assets in Russia of MSEK 240, majority cash 13 818 13 842 13 705 12 961 13 377 13 324 11 493 12 245 12 322 11 070 11 643 10 690 10 698 10 290 9 828 • Previous information – Q3: All Russian or
Slide 27: 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 28: 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