Epiroc Ab Class A · OMXSTO:EPI_A
Epiroc Ab Class A — Q1 2019 Earnings Presentation
19 slides from Epiroc Ab Class A's earnings presentation, Apr 30, 2019
Slide 1: Interim report Q1 2019
Interim report Q1 2019 April 30, 2019 Per Lindberg, President and CEO Anders Lindén, CFO
Slide 2: Key highlights
Key highlights Q1 2019 • Good customer demand – Strong development in service – Order intake of equipment in line with Q4 2018, but lower than strong Q1 2018 • Strong revenue and profit growth • Improved operating margin • Fordia acquisition closed in January – New Concept Mining closed in April • E
Slide 3: Key financials
Key financials Q1 2019 • Organic order decline of 5% 12,000 30% • Organic revenue growth of 14% 10,000 10,036 10,063 9,785 25% 8,233 • Reported operating profit SEK 1,930 million 8,000 20% (1,515) – Change in provision for long term incentive 6,000 15% programs (LTI) SEK -59 million (0) – Split cost
Slide 4: Segments
Segments Orders received, SEK million Revenues Organic order growth, % Q1 2019 - aftermarket 66% 12,000 10,000 -1% 2,550 2,760 8,000 6,000 +8% 3,388 3,806 4,000 -16% 2,000 4,054 3,442 0 Q1 2018 Q1 2019 Equipment Service Tools & Attachments Equipment Service Tools & Attachments © 2019 by Epiroc. All
Slide 5: Equipment & Service
Equipment & Service • Good activity 9,000 27% 8,000 24% • Organic order decline 5% vs. strong Q1 2018 7,000 21% – Equipment -16% 6,000 18% – Service +8% 5,000 15% • Organic revenue growth of 17% 4,000 12% • Operating margin increased to 24.2% (22.9) 3,000 9% • Business development in battery 2,000 6
Slide 6: Tools & Attachments
Tools & Attachments • Continued good business environment 3,000 16% • Organic order decline of 1% 2,500 14% – Rock drilling tools – order growth, but continued 12% impact of efficiency actions 2,000 10% – Hydraulic attachments – lower order intake than last year 1,500 8% • Organic revenue growth +7%
Slide 7: Financials
Financials C Epiroc
Slide 8: Orders received and revenues
Orders received and revenues Q1 2019 Sales bridge 12,500 Orders received Revenues SEK million SEK million Δ, % Δ, % 10,000 Q1 2018 10,036 8,233 Organic -5 +14 7,500 Currency +4 +4 5,000 Structure and other +1 +1 Total 0 +19 2,500 Q1 2019 10,063 9,785 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2018 201
Slide 9: Operating profit and margin
Operating profit and margin Q1 2019 Profit bridge 2,500 25% 2,000 20% +1.6% -0.1% 19.7% -0.2% 1,500 15% 222 5 18.4% 188 1,000 10% 1,930 500 5% 1,515 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2018 2018 2018 2018 2019 Split and incentive, SEK million* Operating profit, SEK million Q1 2018 Organic Cu
Slide 10: Costs, net financials and tax
Costs, net financials and tax Administration, marketing and R&D expenses 2,000 20% • Marketing and administration expenses 1,800 18% – Provisions for LTI, SEK -59 million 1,600 16% – Higher costs for IT and logistics 1,400 14% • Increased investments in R&D 1,200 12% • Net financial items SEK -100 m
Slide 11: Return on Capital Employed
Return on Capital Employed 35,000 35% • Capital employed increased 30,000 30% – Acquisitions – Currency 25,000 25% – IFRS 16 added SEK 2.0 billion 20,000 20% • Return on Capital Employed increased to 15,000 15% 31.2% (29.2) 10,000 10% 5,000 5% 0 0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Capital emp
Slide 12: Net debt
Net debt 4,000 0.40 • Net debt SEK 3,641 million • IFRS 16 3,000 0.30 – Net debt increased with SEK 2.0 billion • Net debt/EBITDA 0.39 2,000 0.20 • Last SEK 1,000 million of the bridge facility refinanced through an 8-year bilateral loan facility 1,000 0.10 0 0.00 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 13: Net working capital
Net working capital 15,000 40% • Net working capital increased – Volume, currency and acquisitions 12,000 32% • Average net working capital/revenues 9,000 24% 32.6% (31.8) 6,000 16% 3,000 8% 0 0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net working capital, end of period (SEK million) Average net wor
Slide 14: Operating cash flow
Operating cash flow 2,500 SEK million Q1 2019 Q1 2018 Operating profit 1,930 1,515 Depreciation, amortization and impairment 472 317 -84 -71 2,000 Capital gain/loss and other non-cash items 2,318 1,761 Net financial items received/paid -157 141 1,500 Taxes paid -651 -321 Change in working capital -7
Slide 15: Summary
Summary C Epiroc
Slide 16: Key highlights
Key highlights Q1 2019 • Good customer demand – Strong development in service – Order intake of equipment in line with Q4 2018, but lower than strong Q1 2018 • Strong revenue and profit growth • Improved operating margin • Fordia acquisition closed in January – New Concept Mining closed in April • E
Slide 17: Epiroc
C Epiroc
Slide 18: Slide 18
Slide 19: 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