Slide 1: Q2 2023
Q2 2023 July 18, 2023 Helena Hedblom, President and CEO Håkan Folin, CFO
Slide 2: Highlights Q2 2023
Highlights Q2 2023 • Record quarter – High customer activity and several large equipment orders – Service performing well with support by larger rebuilds • Profitable growth – Record revenues and EBIT – Dilution and negative mix effect • Eventful quarter – Epiroc World Expo in Örebro – CMD in Örebro
Slide 3: Leading productivity and sustainability partner
Leading productivity and sustainability partner • Acquisition – AARD Mining Equipment complements offering within low-profile underground machines • Key assets for reverse circulation (RC) drilling acquired • MTVR (Multi Terrain Vehicle Reanimator) – Improve operational agility by reducing the relia
Slide 4: Video: SmartROC T25 R
Video: SmartROC T25 R A smart rig for smarter operators Q2 2023 4
Slide 5: Aftermarket
Aftermarket • High customer activity, especially in mining • Strong Services with many larger rebuilds • Hydraulic attachments somewhat weaker Revenues 21% (24) T&A 33% (30) Equipment Aftermarket 67% (70) 46% (46) Service Q2 2023
Slide 6: Operational excellence
Operational excellence • New Service Centers in Antofagasta, Chile and in Kathu, South Africa • Autonomous Haulage System Business Center in Australia • Top-modern heat treatment plant for rock drills in Örebro, Sweden Q2 2023
Slide 7: Sustainability
Sustainability People & Planet • Safety improved – TRIFR at 5.5 (5.6) • 18 056 employees (15 912) – Acquisitions • Increased share of women employees and managers – Employees 18.8% (17.9) and managers 23.1% (22.4) • CO2e from operations lower • CO2e from transport higher – Higher volumes • Financial
Slide 8: Key financials
Key financials Orders received, MSEK and change, % • Orders MSEK 15 436, -1% organic +15% – Excl. Russia: organic -4% 16 000 15 436 15 000 – Several large orders +12% 14 000 13 377 • Revenues MSEK 15 910, +17% organic 13 000 -1% +4% • Operating profit, EBIT, MSEK 3 413 (2 381) 0 – LTIP MSEK -16 (-42
Slide 9: Epiroc Group: Profit bridge
Epiroc Group: Profit bridge Adj. Margin: Margin: margin: 20.1% 21.5% 21.6% 3 600 3 413 3 429 3 400 +16 3 200 +580 3 000 -243 +1.7pp +695 -2.7pp 2 800 2 600 +2.4pp 2 381 2 400 2 200 2 000 1 800 1 600 800 600 400 200 0 Q222 Organic Currency Structure/other Q223 LTIP Adjusted operating profit Q2 2023
Slide 10: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % • Orders received MSEK 12 276, flat organic +13% – Equipment, -6% organic 12 500 12 276 12 000 – Service, +5% organic +9% 11 500 10 897 +4% • Revenues +22% organic 11 000 0% • Operating profit, EBIT, MSEK 2 995 (1 955) 0 Q222 Organic C
Slide 11: Equipment & Service: Profit bridge
Equipment & Service: Profit bridge Margin: Margin: 21.6% 23.9% 2 995 3 000 +505 -199 +2.3ppt 2 500 -2.9ppt +734 +2.9ppt 2 000 1 955 1 500 500 0 Q222 Organic Currency Structure/other Q223 Q2 2023
Slide 12: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % • Orders received MSEK 3 180, -1% organic 4 000 +27% – Acquisitions +25% 3 500 3 180 • Revenues MSEK 3 418, flat organic 3 000 +25% 2 495 • Operating profit, EBIT, MSEK 524 (436) 2 500 -1% +3% – EBIT margin of 15.3% (15.6) 0 Q222 Organ
Slide 13: Tools & Attachments: Profit bridge
Tools & Attachments: Profit bridge Margin: Margin: 15.6% 15.3% 550 524 500 450 436 +166 -28 +2.4ppt 400 -0.3ppt -50 -2.4ppt 350 300 250 100 50 0 Q222 Organic Currency Structure/other Q223 Q2 2023
Slide 14: Costs, net financials and tax
Costs, net financials and tax Administration, marketing and R&D expenses • Cost control – R&D investments at all-time high MSEK 497 (363) 3 000 45 – Growth and high activity levels 2 564 40 2 500 2 367 2 321 35 • Net financial items MSEK 15 (-89) 2 049 1 978 2 000 30 – Interest net MSEK -131 (-23) 1
Slide 15: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q2 23 Q2 22 2 500 105 2 415 110 Operating profit 3 413 2 381 99 97 100 Depreciation, amortization and impairment 644 487 90 2 000 82 81 80 1 814 Capital gain/loss and other non-cash items -254 -129 1 519 80 1 613 67 1 549 70 1
Slide 16: Working capital
Working capital Net working capital Working capital • Net working capital MSEK 22 420 – Excl. acquisitions and fx +29% 30 000 33.5 35 22 420 – 33.5% (29.5) of revenues 30.8 29.5 25 000 30 15 561 22 420 • Strong growth and higher 20 157 20 000 25 11 368 equipment volumes and supply- 15 119 15 561 cha
Slide 17: Capital efficiency
Capital efficiency Net debt and Net debt/EBITDA Capital employed and ROCE • Net debt at MSEK 9 099 1.0 10 000 50 000 49 523 60 9 099 (- 876) 0.8 45 000 55 8 000 – Acquisitions MSEK -7 728 0.6 0.60 40 000 38 295 50 6 000 45 – Working capital MSEK -4 611 0.4 35 000 4 000 31 698 40 – Dividend MSEK -3 8
Slide 18: 150-year-old start-up company
150-year-old start-up company Revenues • Some achievements during our first 5 years! Revenues – Successfully established the Epiroc brand +11% 56 516 – Innovation is thriving +65% 34 150 40 620 38 030 37 036 44 095 – High acquisition pace 11% CAGR – Set ambitious sustainability goals for 2030 o Vali
Slide 19: Summary
Summary • Record – and eventful - quarter • Profitable growth • Innovation is thriving • High acquisition pace • Safety improving • Climate leader • 150-year-old start-up company Q2 2023 20
Slide 20: Looking ahead
Looking ahead “We expect that underlying demand, both for equipment and aftermarket, will remain at a high level in the near term.” Q2 2023 21
Slide 21: Video: Epiroc World Expo
Video: Epiroc World Expo Q2 2023 22
Slide 22: il i SU)
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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