Slide 1: Q1 2023
Q1 2023 April 28, 2023 Helena Hedblom, President and CEO Håkan Folin, CFO and Sustainability
Slide 2: Capital Markets Day
Capital Markets Day June 1-2, 2023 Örebro, Sweden Last day to register April 30 www.epirocgroup.com/en/cmd2023 Q1 2023
Slide 3: Highlights Q1 2023
Highlights Q1 2023 • Strong start to 2023 – High customer activity – Strong demand for Services – Record-high order intake with several large equipment orders • Profitable growth • Acquisitions expanding our offering • Leading the way in autonomous mining – Autonomous surface drills have drilled mor
Slide 4: Creating the world's largest single autonomous mine
Creating the world’s largest single autonomous mine • Largest-ever automation order, MSEK 500 • Converting Roy Hill’s mixed fleet to driverless operation in Australia • Remote Operations Centre in Perth, 1 100 km from mine • 96 autonomous haul trucks and 200 utility vehicles to run 24/7 Q1 2023
Slide 5: Leading productivity and sustainability partner
Leading productivity and sustainability partner • To the Moon with ispace • 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 saf
Slide 6: Movie: Innovates in construction
Movie: Innovates in construction Q1 2023
Slide 7: Aftermarket
Aftermarket Revenues • High customer activity • Good growth in Services 23% (23) • Strong demand for mid-life T&A 28% (34) Equipment upgrades • 7 300 committed service Aftermarket 72% (66) technicians • Somewhat weaker T&A 49% (43) Service Q1 2023
Slide 8: Operational excellence
Operational excellence • New top-modern heat treatment plant for rock drills in Örebro, Sweden • Regional distribution centers Heat treatment is essential in rock drill manufacturing. The new plant (1 400 m2), will be able to run 24/7 thanks to automation. Energy efficiency is key; for example, resi
Slide 9: Sustainability
Sustainability • People • Planet – 17 586 employees – CO2e from operations lower o Acquisitions – CO2e from transport higher – New parental leave policy o Higher volumes o Min. 12 weeks of paid leave – Increased share of women o Employees up to 18.6% (17.6) o Managers up to 23.5% (23.0) – Increased
Slide 10: Key financials
Key financials Orders received, MSEK and change, % • Orders MSEK 15 148, -6% organic 16 000 +10% – Excl. Russia: organic +1% 15 000 15 148 +10% – Several large orders 14 000 13 818 -6% +6% • Revenues MSEK 13 868, +8% organic 13 000 • Operating profit, EBIT, MSEK 3 161 (2 631) 0 – LTIP MSEK -26 (43)
Slide 11: Epiroc Group: Profit bridge
Epiroc Group: Profit bridge Adj. Margin: Margin: margin: 23.7% 22.8% 23.0% 3 161 3 187 3 200 +4 +26 +205 -1.9pp 3 000 +0.2pp 2 800 +321 +0.8pp 2 631 2 600 2 400 200 0 Q122 Organic Currency Structure/other Q123 LTIP Adjusted operating profit Q1 2023
Slide 12: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % • Orders received MSEK 11 570, -5% organic +7% – E&S, excl. Russia +2% organic 12 000 11 570 11 500 – Equipment, excl. Russia -7% organic 11 000 10 840 +6% – Service, excl. Russia +11% organic 10 500 -5% +6% 10 000 • Revenues +10% orga
Slide 13: Equipment & Service: Profit bridge
Equipment & Service: Profit bridge Margin: Margin: 25.8% 25.3% 2 800 2 718 +62 +165 -1.3pp 2 600 +0.1pp 2 400 +303 +0.7pp 2 188 2 200 2 000 1 800 400 200 0 Q122 Organic Currency Structure/other Q123 Q1 2023
Slide 14: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % • Orders received MSEK 3 535, -10% organic 4 000 +19% – T&A excl. Russia, -7% organic 3 535 3 500 • Acquisitions +24% 2 970 +24% 3 000 – of which 13ppt was orders-on hand from CR -10% +5% • Revenues MSEK 3 125, +3% organic 0 • Operatin
Slide 15: Tools & Attachments: Profit bridge
Tools & Attachments: Profit bridge Margin: Margin: 18.3% 17.0% 550 532 +10 -1.6pp +33 500 +0.2pp +15 474 +0.1pp 450 50 0 Q122 Organic Currency Structure/other Q123 Q1 2023
Slide 16: 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 3 000 45 – Growth and high activity levels 40 2 500 2 367 2 321 35 • Net financial items MSEK -197 (-67) 2 049 1 978 2 000 30 – Interest net MSEK -89 (-16) 1 789 1 724 1 570 1 5
Slide 17: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q1 23 Q1 22 2 500 2 415 140 Operating profit 3 161 2 631 130 132 120 Depreciation, amortization and impairment 635 466 2 000 105 110 99 97 1 814 Capital gain/loss and other non-cash items -226 -196 100 1 610 1 613 1 462 82 81 1
Slide 18: Working capital
Working capital Net working capital Working capital • Net working capital MSEK 20 442 – Excl. acquisitions and fx +32% 30 000 35 33.1 32.8 – 32.8% (28.9) of revenues 25 000 28.9 30 • Strong growth in Services 20 442 18 930 supported by good availability 20 000 25 13 245 • Inventory reflecting strong
Slide 19: Capital efficiency
Capital efficiency Net debt and Net debt/EBITDA Capital employed and ROCE • Net debt at MSEK 7 281 (-1 844) 1.0 7 281 8 000 50 000 47 401 60 – Acquisitions MSEK -7 947 0.8 45 000 55 6 000 – Dividend MSEK -3 619 50 0.6 0.52 40 000 38 250 36 816 – Working capital MSEK -4 407 4 000 45 0.4 35 000 40 2 0
Slide 20: 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 21: Summary
Summary • Strong start to 2023 • High customer activity • Profitable growth • Improvement potential • working capital • cash flow • Acquisitions expanding our offering • Market-leading solutions within automation • Dare to think new Q1 2023
Slide 22: Looking ahead
Looking ahead “We expect that underlying demand, both for equipment and aftermarket, will remain at a high level in the near term.” Q1 2023
Slide 23: Q&A
Q&A C Epiroc
Slide 24: Appendix: Russia
Appendix: Russia Orders received, MSEK, excl. Russia • Q1 2023 – 1% organic order growth excl. Russia +17% – Net assets in Russia of MSEK 240, majority cash 15 148 13 818 13 842 13 377 13 324 13 705 12 961 12 322 • Previous information – Q322: All Russian orders (BSEK 1) removed from order book – Q3
Slide 25: 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 26: 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