Epiroc Ab Class A · OMXSTO:EPI_A
Epiroc Ab Class A — Debt Investor Presentation (November 2020)
24 slides from Epiroc Ab Class A's debt investor presentation, November 2020
Slide 1: Epiroc Debt Investor Presentation
Epiroc Debt Investor Presentation November 2020
Slide 2: Epiroc's key strengths
Epiroc’s key strengths Leading Strong and High and resilient Driving the future History of value productivity proven operating aftermarket in intelligent creation for all partner in model exposure mining and stakeholders attractive niches infrastructure 2
Slide 3: Leading global productivity partner
Leading global productivity partner Epiroc in brief • We provide customers in selected niches of the global mining and infrastructure with – innovative, safe and sustainable drill rigs, rock excavation and construction equipment, and tools – world class service to enhance productivity – solutions fo
Slide 4: …in attractive niches
…in attractive niches Exposure to hard rock applications Mining Infrastructure 77% of order intake* 23% of order intake* Surface civil Underground civil Deconstruction and Underground mining Surface mining Exploration engineering and engineering recycling urban development Customer characteristics C
Slide 5: Strong and proven operating model
Strong and proven operating model Focused and High degree of Strong services Flexible Sharp focus on decentralized direct sales and business manufacturing innovation business services philosophy Quick and Close and Revenues largely Ability to Leadership in efficient collaborative driven by resilient
Slide 6: Focused and decentralized businesses
Focused and decentralized businesses Two reporting segments and five divisions Tools & Equipment & Service Attachments Technology & Digital Tools & Attachments Surface Division Underground Division Parts & Service Division Division Division Product companies, customer centers and distribution center
Slide 7: Always close to our customers
Always close to our customers Global presence with high degree of direct sales and service Sales in +150 countries Revenues by region* North Asia / America Australia 22% 28% Top 10 customers represented 17% South of revenues in 2019 America Africa / 13% Top 10 markets Middle % of revenues 2019 East
Slide 8: High proportion of recurring business
High proportion of recurring business Revenues Harsh environments leads to significant maintenance requirements Equipment Service Tools & Attachments 25% 32% 68% Aftermarket 43% Our service offering optimize our customer’s productivity and lowers the total cost of operations 12 months until Septembe
Slide 9: Attractive mix of revenues
Attractive mix of revenues Growing aftermarket making us more resilient 60 000 75 67 68 70 55 000 66 63 65 50 000 60 45 000 55 40 691 40 000 38 285 50 36 452 35 000 45 13 862 14 463 40 30 000 11 688 35 25 000 30 20 000 25 15 000 20 26 829 24 764 23 822 15 10 000 10 5 000 5 0 0 2018 2019 2020 RTM Sep
Slide 10: Sustainability is integrated
Sustainability is integrated Four focus areas We live by We invest in the highest safety and ethical well-being standards We grow We use together with resources passionate responsibly people and and efficiently courageous leaders For each focus area there are a number of targets and key performance
Slide 11: Long-term sustainability goals
Long-term sustainability goals 2030 goals • Health and safety • Operations – No work-related injuries. – Halve Co2 emissions in operations. • Balanced workforce – 90% renewable energy in own operations. – Double the number of women in operational roles. • Transport • Walk the talk – Halve Co2 emissi
Slide 12: History of value creation
History of value creation H1 2020 impacted by Covid-19 Solid revenue growth Resilient profitability 50 000 14 000 30 13 000 45 000 40 849 12 000 25 40 000 38 285 11 000 36 594 21,0 35 000 10 000 20,3 20,1 19,4 20 31 364 9 000 30 000 8 136 8 000 7 385 7 186 25 000 7 000 15 5 930 6 000 20 000 5 000 10
Slide 13: Strong operating cash flow
Strong operating cash flow Q3 2020 MSEK Q3 2020 Q3 2019 Operating profit 1 820 1 927 Depreciation, amortization and impairment 426 556 Capital gain/loss and other non-cash items 80 -104 2 326 2 379 Net financial items received/paid 114 -113 Taxes paid -544 -559 Change in working capital -32 126 Inve
Slide 14: Capital structure
Capital structure Q3 2020 Net debt and Net debt/EBITDA • Strong financial position 0,6 6 000 – Net cash MSEK 3 638 (net debt MSEK 2 416) 0,5 5 000 • Net debt/EBITDA ratio at -0.41 (0.24) 0,4 4 000 0,3 0.24 3 000 • Second dividend of SEK 1.20 per share for 0,2 2 000 the fiscal year 2019 proposed by B
Slide 15: Long term market dynamics
Long term market dynamics A growing world… Increases the underlying need for infrastructure and minerals We have a strong position and the right solutions to … with increasing challenges to meet customers’ challenges meet the demand… Driving cost of hard rock excavation Safe and sustainable solution
Slide 16: The right solutions to meet customers' challenges
The right solutions to meet customers’ challenges Service and maintenance We have a strong position and the right solutions to meet customers’ challenges Productivity enhancing solutions Safe and sustainable solutions, increased productivity and lower total cost of ownership Automation, electrificat
Slide 17: Mission, strategy and foundations for success
Mission, strategy and foundations for success Epiroc’s mission is to be the leading global productivity partner and to deliver profitable growth. To achieve our mission, our strategy is focused on five areas: Operational Focus on Innovation and Safety and Presence and People and and service Outperfo
Slide 18: Solid results
Solid results Q3 summary • Demand recovered, but Covid-19 restrictions still impacting • Service proving resilient • Customers investing for the future – with strong interest for automation • Efficiency actions executed according to plan • Solid results and strong cash flow • Second dividend propose
Slide 19: Key financials
Key financials Q3 2020 Orders received, MSEK and change, % • Order intake decreased 2%, +10% organic 11 000 -2% 10 500 – Equipment recovering, +25% organic 10 000 +10% -12% – Service proving resilient, +9% organic 9 600 9 500 9 373 0% • Revenues decreased 14%, -3% organic • Operating profit was MSEK
Slide 20: Covid-19
Covid-19 Current status • Fewer customers are temporarily closed or work with reduced capacity today compared to Q2 • Covid-19-related restrictions vary among countries, which results in large differences in activities • All distribution centers and manufacturing facilities are operational and capac
Slide 21: Epiroc
C Epiroc
Slide 22: Investor contacts
Investor contacts ir@epiroc.com +46 10 755 0106 Helena Hedblom Anders Lindén Mattias Olsson Karin Larsson Jimmy Kristoffersson (Swedish / born 1973) (Swedish / born 1962) (Swedish / Born 1968) (Swedish / Born 1983) (Swedish / Born 1985) CEO since 2020. +20 years CFO since 2017. +20 years SVP Corpora
Slide 23: 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 24: 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