Epiroc Ab Class A · OMXSTO:EPI_A
Epiroc Ab Class A — Investor Day (2024)
183 slides from Epiroc Ab Class A's investor day presentation, 2024
Slide 1: Epiroc CMD 2024
Epiroc CMD 2024 1
Slide 2: Film: Accelerate the transformation
Film: Accelerate the transformation 2m05m Highlights • Transition to a fossil-free society • Cities need to cope with a growing population in a sustainable way • Speed up shift towards a more sustainable mining and construction industry • Epiroc accelerate this transformation See full film here: htt
Slide 3: Karin Larsson
Karin Larsson “Mrs. Ballroom dancer” 2023: VP Investor Relations & Media 2019: VP Investor Relations, Epiroc 2017: Head of External Communications, Ahlsell 2011: IR Officer, Atlas Copco 2006: Equity Sales, SEB Enskilda, Germany 2006: M.Sc. Finance, Linköping University, Sweden 1983: Born in Hallsber
Slide 4: Alexander Apell
Alexander Apell “Mr. Head of Sports” 2023: Investor Relations Controller 2018: Controller, Epiroc 2015: Group Business Controller, Dometic Group 2013: Junior Controller, Skruf Snus 2013: M.Sc. Business and Economics, Linnaeus University, Sweden 1987: Born in Sävsjö, Sweden Employment in Sweden if no
Slide 5: Safety first!
Safety first! = QD —— : yl 5
Slide 6: Film: Safe blasting
Film: Safe blasting 0m30s Highlights • Ensure safe blasting, without losing time • Before blasting, you need to confirm that everyone is safe • Protect your people by knowing where everyone is with Epiroc’s blast support See full film here: https://www.youtube.com/watch?v=RcaZStDAyqY 6
Slide 7: Agenda
Agenda 08:00-12:15 - CMD presentation incl. break and Q&A (17:00-21:15 CEST) • CMD webcasted live • Questions will be answered in the Q&A session at the end of the presentation 12:15-13:30 - Seated management lunch • Free seating 13:30-14:00 - Bus transport to MINExpo • Make sure you have your ticke
Slide 8: Film: MINExpo with Anna Dahlman Herrgård, Surface division
Film: MINExpo with Anna Dahlman Herrgård, Surface division 2m50s Highlights • MINExpo with Anna Dahlman Herrgård, MINExpo Project Owner. • Global Brand and Communication Manager, Surface division. • Anna is interviewed by Ola Kinnander, Media Relations Manager. 8
Slide 9: Strategy for profitable growth
Strategy for profitable growth Operational Operational Attractive Focus on niches attractive niches Innovation Aftermarket Outperformance excellence excellence Our success is based on sustainability and a strong corporate culture 9
Slide 10: Investment case
Investment case We accelerate the productivity We have a high proportion We have a well-proven and sustainability transformation of recurring business business model in our industry Operational Operational Attractive niches Innovation Aftermarket Outperformance excellence excellence We focus on attr
Slide 11: Helena Hedblom
Helena Hedblom “Mrs. Handstand” 2020: President & CEO 2017: Senior Executive Vice President Mining and Infrastructure, Epiroc 2013: President, Rock Drilling Tools, Atlas Copco 2011: General Manager, Rock Drilling Tools, Atlas Copco 2008: Vice President R&D, Rock Drilling Tools, Atlas Copco 2000: Man
Slide 12: Håkan Folin
Håkan Folin “Mr. NBA” 2021: CFO, SVP Controlling, Finance & Sustainability 2013: CFO, SSAB 2010: CFO, Business area APAC, SSAB, China 2008: CFO, Tibnor 2006: Group Business Controller, SSAB 2005: Business Development, Newsec 2002: Senior Associate, McKinsey 2002: M. Sc. Engineering/Industrial Manage
Slide 13: We accelerate the productivity and sustainability transformation in our industry
Our mission We accelerate the productivity and sustainability transformation in our industry 13
Slide 14: Two attractive customer groups
Two attractive customer groups The world needs metals and minerals for the energy transition. We also need cities that can cope with a growing population in a sustainable way. To succeed we need to speed up the shift towards more sustainable mining and construction industries. We at Epiroc accelerat
Slide 15: Strong and lasting relationships
Strong and lasting relationships Customers in ~150 countries Orders received Strong customer relationships • 89% direct sales* Europe 13% Diverse customer base North America 27% • Top 10 customers represent 23% of revenues* Strong corporate culture and 19 000 employees Asia / Australia Africa/Middle
Slide 16: Sustainable profitable growth and shareholder value
Sustainable profitable growth and shareholder value Revenues and operating margin 90 000 23.3 23.0 24 22.6 80 000 20.8 20.5 20.6 22 Since IPO 19.7 20 June 18, 2018 70 000 18 61 219 60 000 +10% 56 516 16 Revenues 14 50 000 +79% 10% CAGR 44 095 40 620 12 40 000 38 030 37 036 34 150 10 30 000 8 Adj. op
Slide 17: Financial goals over a business cycle
Financial goals over a business cycle Since Q218 Annual revenue growth of 8% • CAGR 10% Industry-best operating margin, with strong resilience • EBIT margin 21.0% Improve capital efficiency and resilience. Investments and acquisitions shall create value • ROCE 24.3%. 27 acquisitions with BSEK 12.6 i
Slide 18: Our offering and reporting structure
Our offering and reporting structure Reporting segments, % of revenues Equipment & Service 79% Tools & Attachments 21% Revenue streams, % of revenues Equipment 34% Service 45% Tools & Attachments 21% Business types, % of revenues Equipment 34% Aftermarket 66% Divisions Parts & Parts & Parts & Attach
Slide 19: Adj. operating profit and margin development
Adj. operating profit and margin development Epiroc Equipment & Service Tools & Attachments +11% +12% 22.6% 23.3% 23.0% 26.3% 25.9% 20.8% 20.5% 20.6% 24.5% 25.1% 19.7% 23.2% 24.2% 23.3% +9% 18.3% 17.2% 12 982 12 634 15.6% 11 199 11 200 14.0% 13.6% 10 274 12.1% 12.2% 8 469 8 388 8 630 7 785 7 289 7 2
Slide 20: Looking ahead
Looking ahead Q2 2024 In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level, while the demand from construction customers is expected to remain weak 20
Slide 21: Strategy for profitable growth
Strategy for profitable growth Attractive niches Aftermarket Operational Outperformance Innovation excellence 21 Our success is based on sustainability and a strong corporate culture 21
Slide 22: Six years of achievements for people and planet
Six years of achievements for people and planet More women Improved in operational safety roles Good progress Science-based on CO2e targets reduction in validated in operations 2021 22
Slide 23: 2030 goals for people
2030 goals for people No work-related injuries • TRIFR 5.1 (6.0). Relentless focus on safety and safety awareness training Balanced workforce and double the number of women in operational roles • 23.4% (19.3) women managers • Women in operational roles 13.7% (11.0) Have all employees and business pa
Slide 24: Film: Meet Nozinhle Khumalo, Engineer Trainee
Film: Meet Nozinhle Khumalo, Engineer Trainee 1m00s Highlights • Being an Epirocer means daring to think new • Epiroc is a big player in the energy transition and automation • We strive to make the mining industry greener, safer and more productive • Different challenges everyday See full film here:
Slide 25: 2030 goals for planet
2030 goals for planet Halve CO2e emissions in operations* • 96% completion 90% renewable energy in own operations • 61% renewable energy Halve transport CO2e emissions • 50% completion Offer a full range of emission-free products • 42% of fleet available in emission-free option Halve CO2e emissions
Slide 26: Strategy for profitable growth
Strategy for profitable growth Attractive niches Aftermarket Operational Outperformance Innovation excellence 26 Our success is based on sustainability and a strong corporate culture 26
Slide 27: Attractive niches with structural growth
Long term Attractive niches with structural growth Structural growth • Growing population and middle class • Urbanization • Energy transition and sustainable transformation Challenges for customers • Low utilization rates • Lower ore grades • Trend towards underground mining Sustainability focus • I
Slide 28: Attractive hard-rock exposure
Attractive hard-rock exposure Mining and construction/infrastructure Orders received 100 100 100 100 Supply deficits anticipated 90 17 in key minerals by 2030 24 29 Copper 80 70 21 Deficit expected 21 60 5 20 Gold 4 Iron 50 2 3 12 12 Platinum Balanced demand/supply 40 5 1 Zinc 21 3 4 3 3 30 5 2 Nick
Slide 29: Mining
Mining 81% of orders received Q224 12 months 29
Slide 30: Epiroc’s offering to mining customers
Epiroc’s offering to mining customers Surface Surface and underground • Complete range of rigs for blasthole drilling. • Spare parts and maintenance. Underground • Tools for rock drilling and rock reinforcement. • Complete range of rigs for blasthole drilling, • Solutions for automation and digitali
Slide 31: Epiroc’s mineral index
Long term Customer demand correlates well with Epiroc’s mineral index Short term Demand for mining equipment, services and tools • High mineral prices lead correlates well with Epiroc’s mining index to higher demand for 180 service and tools 160 Mid term 140 • Mineral prices are leading 120 indicato
Slide 32: Global exploration capex spend
Exploration is set for growth and Epiroc has an attractive mineral exposure to capture it 2024+ exploration capex 2000-2012 set for growth • • Current exploration capex run-rate at BUSD 13 Global exploration capex spend, BUSD Strong exploration capex growth • Peak in 2012 at BUSD 21 2017-2023 • Mine
Slide 33: We help customers tackle their challenges
We help customers tackle their challenges Low equipment utilization rate Trend towards underground mining Depletion of ore grades 3.0 Underground mining 48 2.5 71 64 2.0 75 74 Open pit mining 63 1.5 1.0 29 36 0.5 Crushing and grinding 85 25 26 0.0 2010 2020 2030 2040 1990 1995 2000 2005 2010 2015 20
Slide 34: Epiroc’s contribution to mining customers
Epiroc’s contribution to mining customers v Safer mines • Leadership in safety solutions for the full mining value chain v Higher productivity • Productivity-enhancing equipment (drill rigs, loaders and trucks), services and solutions, incl. OEM-agnostic digital solutions and mixed-fleet automation
Slide 35: In 2017: Creating the mine of the future
In 2017: Creating the mine of the future Helena Hedblom presenting at Atlas Copco CMD in Stockholm 35
Slide 36: Film: Transforming towards the mine of the future
Film: Transforming towards the mine of the future 2m02s Highlights • Sustainable mining – digitalization and automation are key enables • OEM-agnostic and scalable solutions • Safety is a priority. Everyone gets home safely every day in the mine of the future • Remotely control entire fleets • Movem
Slide 37: Construction and infrastructure
Construction and infrastructure 19% of orders received Q224 12 months 37
Slide 38: Epiroc’s offering to construction and infrastructure customers
Epiroc’s offering to construction and infrastructure customers Surface Surface and underground • Blasthole drill rigs, attachments and rock drilling tools. • Spare parts and maintenance. • Removing rock at urban construction sites or producing • Tools for rock drilling and rock reinforcement. aggreg
Slide 39: Construction demand
Short term Construction demand Short term Epiroc construction demand/orders, illustration • In Q2 2023, the construction 100 97 demand weakened 82 • The attachments business was particularly impacted • Efficiency actions have been taken • Manufacturing consolidation ongoing, impacting two sites (Ess
Slide 40: Attractive construction and infrastructure end-market exposure
Long term Attractive construction and infrastructure end-market exposure Infrastructure market growth Epiroc construction and infrastructure exposure • 4-5% CAGR long term Major end-market exposure and CAGR until 2032 • Tunneling: +7% Market CAGR • Other major civil engineering projects: +3% 4-5% •
Slide 41: Attractive infrastructure geographical exposure
Long term Attractive infrastructure geographical exposure North America • USA is expected to benefit from infrastructure investments following the Inflation Reduction Act. Europe • Large scale infrastructure projects and sustainable construction practices. Asia • India will benefit from rapid popula
Slide 42: Epiroc’s contribution to construction and infrastructure customers
Epiroc’s contribution to construction and infrastructure customers v Safer construction sites • A complete range of equipment for automated drilling • Leadership in safety solutions, such as Mobilaris Tunneling Intelligence v Higher productivity • Equipment for drilling and blasting, as well as remo
Slide 43: Strategy for profitable growth
Strategy for profitable growth Operational Attractive niches Innovation Aftermarket Outperformance excellence 43 Our success is based on sustainability and a strong corporate culture
Slide 44: Six years of achievements within innovation
Six years of achievements within innovation Making Offering a mixed-fleet complete automation electrification work in scale solution Enabling the Leadership in mine of the safety future 44
Slide 45: Leveraging innovation to remain technology leader
Leveraging innovation to remain technology leader 3.2% Leveraging innovation R&D expenses of revenues Internal R&D Collaboration for (Research & Development) success Acquisitions Supplier Innovation to gain speed Q224 12 months 45
Slide 46: Internal R&D and a strong innovation culture
Internal R&D and a strong innovation culture Internal R&D Research & Development • 9% of workforce in R&D 3 000 103% 3.5 3.2 3.2 • 1 950+ R&D engineers, incl. additional workforce 3.0 2.9 2.9 3.0 Automation 2 500 • R&D hubs on all continents 2.6 2.5 • Patented inventions 5x higher than in 2018 2.5 1
Slide 47: Market leader in mixed-fleet automation
Market leader in mixed-fleet automation Autonomous load/haul Epiroc equipment (used mainly underground) that is fully autonomous in operation and other OEMs equipment that have ASI Mining and/or RCT’s Guidance Mixed-fleet +3 100 /Automation technology with fully autonomous autonomous load/haul drive
Slide 48: Leading electrification position in our niches
Leading electrification position in our niches Group revenues related to electrification 4% Active electric fleet of rigs, loaders and trucks* 600+ • Surface and underground equipment • Mining and construction Sites with BEVs globally 34 • BEVs operating on all continents • Recurring BEV orders from
Slide 49: Film: Minetruck MT66 S eDrive
Film: Minetruck MT66 S eDrive 1m21s Highlights • Faster, stronger, and carries more tonnes than the ones before • New electric drivetrain • This truck combines the best of two worlds (diesel and electric) • Keep on trucking • … and something (a loader) is coming that is perfectly matching this Minet
Slide 50: Epiroc’s digitalization in numbers
Epiroc’s digitalization in numbers Leadership within automation • 3 100+ driverless machines (mixed fleet) • Different types of machines automated 150+ Leadership within safety • 3 000+ CAS L7/8 systems delivered • 100+ CAS L9 systems delivered • Installations of situational awareness systems at 45+
Slide 51: How the industry trends contribute to profitable growth for Epiroc
How the industry trends contribute to profitable growth for Epiroc Higher portion of resilient, recurring and profitable revenue streams • Grow market share by offering superior equipment and solutions • Grow customer share by adding technologies, such as digitalization and automation (hardware, sof
Slide 52: Collaboration for success and supplier innovation
Collaboration for success and supplier innovation With Orica, we are developing With Luleå University of Technology solutions for With Smart Exploration and Algoryx, we improve autonomy in With Bluvein, we speed Collaboration to set a semi-automatic explosive Research Center, we critical mining oper
Slide 53: Acquisitions to gain speed and strengthen position
Acquisitions to gain speed and strengthen position 27 acquisitions since listing • Revenues of BSEK 12.6* and 5 600* employees • Focus on integration and leveraging synergies Well defined acquisition model with the following key criteria • Attractive stand-alone and well-run in attractive niches • C
Slide 54: Film: MINExpo with Schalk Janse van Rensburg
Film: MINExpo with Schalk Janse van Rensburg 2m11s Highlights • MINExpo with Schalk Janse van Rensburg, Collision Avoidance Expert and Mernok Elektronik Founding Partner. • GM Mernok Elektronik, Digital Solutions division. • Schalk was interviewed by Alexander Apell, IR Controller. 54
Slide 55: Surface
Surface 55
Slide 56: José M. Sanchez
José M. Sanchez “Mr. Sunshine” 2020: President Surface division, USA 2015: President Drilling Solutions division, Atlas Copco, USA 2007: General Manager, Atlas Copco, Chile 2002: General Manager, Atlas Copco, Mexico 1996: Product Manager Surface Drilling Exploration and Area Manager Americas, Atlas
Slide 57: Six years of achievements in the Surface division
Six years of achievements in the Surface division Automatic Bit The world- Changer for leading the Pit Viper Pit Viper series series Creating the New smart world’s rig platform to largest OEM- revolutionize agnostic construction autonomous mine 57
Slide 58: Creating the world’s largest OEM-agnostic autonomous mine
Creating the world’s largest OEM-agnostic autonomous mine Epiroc is converting Roy Hill’s mixed fleet to driverless operation in Australia • 78 autonomous haul trucks (Caterpillar and Hitachi) and 200+ utility vehicles to run 24/7 under contract Remote operations center in Perth • 1 100 km from mine
Slide 59: Film: MINExpo with Tim Ledbetter, Surface division
Film: MINExpo with Tim Ledbetter, Surface division 2m06s Highlights • MINExpo with Tim Ledbetter, Automation Authority. • VP R&D Automation, Surface division. • Tim is interviewed by Ola Kinnander, Media Relations Manager. 6. IR to make film 59
Slide 60: How automation enables productivity and sustainability transformation
How automation enables productivity and sustainability transformation For customers Example: Pit Viper diesel • Protecting people. Keeping them Manual vs. autonomous away from equipment and dangerous situations • Increasing productivity +22% productivity per meter drilled • Reducing energy consumpti
Slide 61: Automated drilling contributes to additional savings for people and planet
Automated drilling contributes to additional savings for people and planet 130 000 hours of drilling saved (the machine does the same job in shorter time) + 5 200 000 wasted over-drill meters avoided (the machine is more accurate) = 310 000 kg tricone bits and pipes saved (steel saved as the holes d
Slide 62: Our rigs have drilled autonomously for 2.2 million hours
Our rigs have drilled autonomously for 2.2 million hours = 250 years 63 578 494+ autonomous meters drilled Empire State Building Eiffel 1931 Tower First car 1889 Statue of patent Big Ben Liberty 1886 1859 1876 First vaccine United States 1796 1776 2000 1993 First 1983 Petronas Pit Viper WWW Towers 1
Slide 63: Film: MINExpo with Jonathan Torpy, Epiroc USA
Film: MINExpo with Jonathan Torpy, Epiroc USA 2m54s Highlights • MINExpo with Jonathan Torpy, Pit Viper Pro. • General Manager USA. • Jonathan is interviewed by Karin Larsson, VP IR & Media. 63
Slide 64: A legend in productivity
A legend in productivity Did you know? • Electric surface drill rigs since 1977 • Early 2000: the Pit Viper 351 D was launched with outstanding productivity increase, setting new standards in the market Today: All Pit Viper drills available in electric version • Electric Pit Viper drills represent 1
Slide 65: How automation and electrification enable productivity and sustainability transformation
How automation and electrification enable productivity and sustainability transformation Example: Pit Viper diesel Example: Pit Viper electric Manual vs. autonomous Manual vs. autonomous -38% cost +22% productivity per meter drilled per meter drilled -40% cost -23% kWh per cycle hour per meter drill
Slide 66: The energy transition requires lithium
The energy transition requires lithium An important part of the energy transition depends on battery-electric adoption, which in turn requires copper, nickel and lithium. Large equipment order for a lithium mine won in September • Fleet of 14 Epiroc SmartROC D65 • Pilbara Minerals in Australia, the
Slide 67: Film: Increased efficiency for Luck Stone
Film: Increased efficiency for Luck Stone 2m09s Highlights • Challenging conditions and manual work • By using the Hole Navigation System (HNS), the cost for explosives decreases and better fragmentation • Produce more in a shorter period of time 67 See full film here: https://www.youtube.com/watch?
Slide 68: Best seller in its class with outstanding productivity
Best seller in its class with outstanding productivity… … and sustainability, thanks to alternative power sources and flexible drilling technologies Biofuel solutions for all models • HVO100 fuel – up to 90% reduction in harmful emissions Battery-electric solutions • SmartROC D65 BE – zero tailpipe
Slide 69: Film: MINExpo with Robin Edsborn, Surface division
Film: MINExpo with Robin Edsborn, Surface division 1m18s Highlights • MINExpo with Robin Edsborn, SmartROC Expert. • Global Product Line Manager, Surface division. • Robin is interviewed by Alexander Apell, IR Controller. 69
Slide 70: The open pit mine of the future is smarter, safer and greener
The open pit mine of the future is smarter, safer and greener We make things smarter everyday and use innovation to stay ahead 70
Slide 71: Underground
Underground 71
Slide 72: Wayne Symes
Wayne Symes “Mr. Ironman” 2024: President Underground division 2020: Vice President Global Customer Relationships, Epiroc. Australia 2019: General Manager, Irrigation Tasmania Pty. Ltd., Australia 2017: Business Line Manager Parts & Services, Atlas Copco, Australia 2016: General Manager Underground,
Slide 73: Safety is a must in an underground environment
Safety is a must in an underground environment State-of-the-art battery safety Battery system designed to prevent thermal runaway, yet capable of handling one Incidents to date: * One battery (of three on site) started burning in a tunnel in 1* Norway in 2024. The Mechanical crash protection cause o
Slide 74: Six years of achievements in the Underground division
Six years of achievements in the Underground division First semi- automated Mixed-fleet mechanical automation blasting with underground Avatel Collaboration Complete for driving offering for innovation electrification 74
Slide 75: A complete electrification offer
A complete electrification offer Productivity-enhancing equipment Enabling services to optimize • Cable-electric equipment customer performance • High performing battery-electric equipment • Electric infrastructure (NMC) with universal/standard charging and • Batteries as a Service (BaaS) thermal ma
Slide 76: Electrification makes a positive difference that goes beyond our scope
Electrification makes a positive difference that goes beyond our scope Sources of carbon emissions in mining, % Example: Copper, underground, Australia; 13 Mt p.a. ore production • ~40%* 100 of opex cost of running an underground mine derive 35% 48% from ventilation • ~35% 15% of emissions derive fr
Slide 77: In 2040, 80% of underground mobile equipment is estimated to be powered by electricity
In 2040, 80% of underground mobile equipment is estimated to be powered by electricity Projected share of mobile equipment energy source, %, est. Open-pit mines Underground mines ~20% ~20% ~5% ~65% ~90% ~50% ~50% BEV and ~80% ~50% cabled EV, ~2% depending on mine / equipment ~33% ~25% ~2% ~8% 2020 2
Slide 78: Going electric requires a holistic approach
Going electric requires a holistic approach Electrification is more than just (B)EV machines Operations, Generation Power Chargers, batteries, (B)EV, cable- Recycle maintenance and distribution energy storage electric and hybrid competence systems Energy management All rights reserved by Epiroc. 78
Slide 79: Film: Drivers behind electrification
Film: Drivers behind electrification 2m6s Highlights • United goal to minimize global warming • General targets (not Epiroc specific): • Half by 2030 and net zero by 2050 • Carbon taxes and carbon declarations • Low carbon products are more valuable • Investments today will live beyond 2030 • Electr
Slide 80: How electrification enables productivity and sustainability transformation
How electrification enables productivity and sustainability transformation Proof-points from Boliden Rävliden mine (Sweden) Boliden, Epiroc and ABB make battery-electric trolley truck system for underground mining a reality. Test results: • Protecting people from toxic gases, noise and heat • Higher
Slide 81: How automation enables productivity and sustainability transformation
How automation enables productivity and sustainability transformation For customers Example: ST14 SG • Protecting people. Keeping them Manual vs. autonomous away from equipment and dangerous situations +30% productivity • Increasing productivity continuous operation and reduced downtime • Reducing e
Slide 82: High-quality drilling paves the way for automation in the mine process
High-quality drilling paves the way for automation in the mine process Manual drilling Automated drilling Misaligned holes Aligned and straight holes Overbreak Better tunnel profile Poor fragmentation Good fragmentation Cycle time reduction More meters drilled Reduced overbreak Manual drilling High-
Slide 83: Automation is not only good for single machines…
Automation is not only good for single machines… Automated drilling benefits the entire mine process Additional benefits • Lower fuel consumption Improved loading and hauling Development and Load and haul Crushing efficiency reduces the fuel production drilling consumption. • Lower maintenance cost
Slide 84: Film: ABC Total – the foundation of the automation journey
Film: ABC Total – the foundation of the automation journey 2m13s Highlights • Good results from drilling will have positive effects down the chain • It’s in the drilling you set the prerequisites for the rest of the cycle • First step: Digital drill plans and high-precision navigation • The quality
Slide 85: The Underground division in the future
The Underground division in the future Number one for every customer underground. Grow our business profitably by providing the best solutions for improved safety, sustainability, and Boomer M20 S productivity in underground operations. Maximized productivity and machine utilization with the world's
Slide 86: Film: MINExpo with Camilla Spångberg, Underground division
Film: MINExpo with Camilla Spångberg, Underground division 2m01 Highlights • MINExpo with Camilla Spångberg, Blast Safety Boss. • Global Product Manager Face Drilling Equipment and Avatel, Underground division. • Camilla is interviewed by Ola Kinnander, Media Relations Manager. 86
Slide 87: BREAK: More from Epiroc CMD in Las Vegas in…
BREAK: More from Epiroc CMD in Las Vegas in… 87
Slide 88: Strategy for profitable growth
Strategy for profitable growth Operational Attractive niches Innovation Aftermarket Outperformance excellence 88 Our success is based on sustainability and a strong corporate culture
Slide 89: Aftermarket
Aftermarket We have a high proportion of recurring business 89
Slide 90: Epiroc has two reporting segments, three revenue streams and eight divisions
Epiroc has two reporting segments, three revenue streams and eight divisions Revenue split Tools & Reporting segments Tools & Attachments Attachments Equipment Equipment & Service 21% 34% 21% of revenues 66% 79% of revenues After- 13.6% Adj. EBIT margin market 23.3% Adj. EBIT margin Service 45% Tool
Slide 91: Parts & Services
Parts & Services 91
Slide 92: Nelson Trejo
Nelson Trejo “Mr. Visionary” 2023: President Parts & Services division NASA, USA 2022: Regional President Parts & Services NASA, USA 2017: Vice President Marketing, Parts & Services, Atlas Copco and Epiroc since 2018, USA 2012: Business Manager Parts & Services, Atlas Copco, Chile 2008: Product Mana
Slide 93: Safety first
Safety first 7 400 employees in Service (of 20 800, incl. additional workforce) Reported injury by body part Creating a strong safety culture Head 8% • The power of daring to say no Eyes 9% • Awareness training Upper body 15% • Safety is a shared responsibility TRIFR Arm 9% 10 8.9 10 8 8 6.0 5.7 Han
Slide 94: Film: Safety by choice not by chance
Film: Safety by choice not by chance 1m10s Highlights • Life is full of precious moments • Our loved ones are normally the most attentive ones • Sometimes unexpected things happen • Work procedures are made to be followed • Safety is by choice, not by chance See full video here: https://www.facebook
Slide 95: Six years of achievements in the Parts & Services divisions
Six years of achievements in the Parts & Services divisions Doubled Improved share of safety female technicians Highly Strong educated adoption of service circular technicians services 95
Slide 96: Strong service growth
Strong service growth The service revenue stream Service revenues 28 000 26 960 25 801 26 000 24 000 +13% 22 000 20 000 19 455 18 000 15 878 15 795 16 000 15 218 14 000 13 030 12 000 10 000 8 000 6 000 4 000 2 000 0 Q218 Q219 Q220 Q221 Q222 Q223 Q224 Service revenues, MSEK Line/circle with figure =
Slide 97: A strong service offering
A strong service offering Service revenue stream: 45% of Group revenues Parts & Services 91% Digital 9% 1. Replacement 2. Service agreements 3. Circular services, 4. Other service 5. Digital solutions, parts and kits and audits incl. midlife solutions, incl. open and OEM- upgrades and custom-enginee
Slide 98: Creating customer value
Creating customer value Epiroc’s competitive edge Strong presence • Most feet on the ground • Regional focus to meet various demand Three service divisions Technological competence • Best feet on the ground • Rapid response and solutions High availability • High availability of parts at customer cen
Slide 99: Larger and aging fleet requires more maintenance
Larger and aging fleet requires more maintenance Addressable Epiroc fleet Average fleet age and % of fleet older than 10 years +28% 128 10 100 9 90 8.2 8.4 8.0 100 8 7.7 80 7.0 7.2 7 70 6 60 5 50 37 38 4 35 40 31 3 27 30 24 2 20 1 10 0 0 2018 Q224 2019 2020 2021 2022 2023 Aug-24 Fleet size, indexed
Slide 100: Automation leads to higher parts revenues
Automation leads to higher parts revenues Automation vs. manual For customers • Higher utilization and productivity +14% +33% • Reduced parts damage (7 years) (10 years) For Epiroc • Intensified use, e.g. more drilling per hour, day, week, month, etc., in a relatively shorter time span means higher
Slide 101: Maintenance on BEVs is a win-win
Maintenance on BEVs is a win-win Battery vs. combustion engine machines For customers • Customers save 15-35% in parts consumption (including engine maintenance). Other savings, such as diesel and ventilation, come on top For Epiroc • Epiroc gets 15%+ aftermarket revenues over 5 years thanks to new
Slide 102: 1. Replacement parts and kits
1. Replacement parts and kits Peace of mind for the customer What? Replacement parts and kits revenues • High-quality genuine parts 178 175 180 • Repair kits and preventive 160 +12% 150 maintenance kits 140 • Rock drills, feed and boom parts, 117 120 112 hydraulics, Rig Control Systems 100 107 100 (
Slide 103: Film: Service power
Film: Service power 1m06s Highlights • Wherever you are, whenever you need us, we are there for you See full video here: https://youtu.be/kAr9b5FxCoE 103
Slide 104: 2. Service agreements and audits
2. Service agreements and audits From parts provider to productivity partner What? Service agreements revenues • Wide portfolio of tailored-made service agreements 180 169 165 • Services that enable new 160 +11% 155 technology implementation, like 140 133 electrification, automation and 118 120 114
Slide 105: Presence is vital and a competitive advantage!
Presence is vital and a competitive advantage! 75+ VALE CANADA service workshops for repairs, components ~7 400 Nanjing and machine overhauls employees in service KAZAKHMYS 1 200+ 10* global/regional customer sites with distribution service agreements centers 300+ Major Epiroc workshop sites with se
Slide 106: The right feet on the ground
The right feet on the ground Build and keep competence 90% (86%) • 7 400 employees in service* of technicians with knowledge in • Focus on training and competence hydraulics, pneumatics and electrification (Certification Level 1) • ~300 apprentices in academies around the globe 65% (55%) of technici
Slide 107: Secure customer share (more per machine)
From parts provider to productivity partner Secure customer share (more per machine) Focus on the service agreement ratio • Increase customer satisfaction and loyalty by close collaboration • Increase Epiroc’s share of resilient, recurring and profitable revenues On average 2X more revenues from mac
Slide 108: 3. Circular services
3. Circular services Old becomes new again Revenues • Midlife services and remanufacturing solutions for components services, including battery conversion 12% CAGR 2018-2023 • Customers pay less than buying a new machine or component • Sustainable option and different Circular machine offering value
Slide 109: Film: MINExpo with Christian Précenth, Parts & Services division
Film: MINExpo with Christian Précenth, Parts & Services division 1m25s Highlights • MINExpo with Christian Précenth, Services Specialist • Global Product Portfolio Manager, Parts & Services • Christian was interviewed by Karin Larsson, VP IR & Media 109
Slide 110: Our service offering during a machine life cycle
Our service offering during a machine life cycle When does the machine create revenues to Epiroc? 100% Productivity of the machine 3. Circular services, incl. midlife and remanufacturing solutions for components Reported as Service 1. Replacement parts and kits Reported as Service Reported mainly as
Slide 111: Film Productos Reman – Fresnillo Mexico
Film Productos Reman – Fresnillo Mexico 1m27s Highlights • Fresnillo is one of Epiroc’s most important customers in Mexico • 80% of the mine’s equipment is Epiroc equipment • High availability of parts is very important • Reman parts on site has increased availability and enabled continuous operatio
Slide 112: Building a resilient, recurring and profitable service revenue stream
Building a resilient, recurring and profitable service revenue stream Size of business, current profitability level For customers For Epiroc and historical growth (illustration) • Recurring and resilient • Increased safety 40 revenues • Higher productivity • High Stronger customer 35 • Predicable co
Slide 113: The Parts & Services divisions in the future
The Parts & Services divisions in the future We will be the “Intelligent services company” and provide superior service through insights gained from data, resulting in reduced TCO and environmental impact for customers. 113
Slide 114: Digital Solutions
GC Epiroc Digital Solutions _
Slide 115: Paul Bergström
Paul Bergström ”Mr. Farmer” 2023: President Digital Solutions division 2017: Executive Vice President, Head of Global Services, Elekta 2014: President, Ericsson, Hong Kong & Macau 2011: VP Strategy and Marketing & Communications, Global Services, Ericsson 2007: Head of Commercial and Price Managemen
Slide 116: First day on the job!
First day on the job! 116
Slide 117: Safety first: When the collision was not avoided
Safety first: When the collision was not avoided Incident Outcome Prevention • Collision Avoidance System • The heavy vehicle driver • Implementing CAS on all (CAS) installed on light vehicle, accidentally ran over the light mobile equipment. but not on heavy vehicle. vehicle while reversing. Fortun
Slide 118: How digitalization enables productivity and sustainability transformation
How digitalization enables productivity and sustainability transformation For customers Example: • Increasing safety and productivity Evacuation time • Providing insights and full control of fleet, equipment and people -25-50% • Improving mine planning, reducing traffic congestion • Optimizing mine
Slide 119: Offering the fully automated mine
Mitigate risks by removing personnel from Safe hazardous environments, ensuring their productivity well-being and reducing the potential for TODAY accidents. Increase utilization over shift changes to Offering the fully Operational Excellence boost production throughput, enhance plan consistency, op
Slide 120: Agnostic approach gives customers freedom to grow
Agnostic approach gives customers freedom to grow • Eco-system approach and vendor-agnostic • Modular and scalable • Utilize diverse equipment with the same controls and systems • Integrate best-in-class software for maximum outcomes 120
Slide 121: The key areas for mining transformation
The key areas for mining transformation CONNECT AUTOMATE PROTECT PLAN OPERATE SUSTAIN Agnostic network Agnostic Safety and Mine planning Data-driven and Sustainable and and connectivity equipment situational and management responsive decarbonized automation awareness operations mining 121
Slide 122: Safety solutions that protect people and equipment
PROTECT Safety solutions that protect people and equipment Did you know? • 30-40% of industry fatalities are related to failures of vehicle interaction controls Leadership in safety and situational awareness • Epiroc offers the highest level of collision avoidance solution: Level 9 • On-board machin
Slide 123: Epiroc has the highest Collision Avoidance Level for safer mining operations
Epiroc has the highest Collision Avoidance Level for safer mining operations Collision Avoidance Level 9: Intervention If the operator does not act, the system 100+ will take interventional control systems provided Level 8: Advisory The operator will be advised to 3 000+ slow down or stop systems pr
Slide 124: Leveraging innovations by combining acquired solutions
Leveraging innovations by combining acquired solutions A combined safety system • One display • Two functions Collision Avoidance System + Traffic awareness = Outstanding productivity and safety 124
Slide 125: Film: Quicker evacuations at Agnico Eagle
Film: Quicker evacuations at Agnico Eagle 0m48s Highlights • Quicker evacuation • Halved evacuation time (from 60 to 30 minutes). • Can see who has received emergency message in real time • Can see people moving in the mine • Enables safer evacuation See full film here: https://www.youtube.com/watch
Slide 126: Mine planning and management
PLAN Mine planning and management Integrated mine planning and management to maximize productivity and sustainability • Mine drafting • Mine design • Mine planning • Mine scheduling • Work management • Shift support 126
Slide 127: Film: Transforming planning at Rosh Pinah Zinc Mine
Film: Transforming planning at Rosh Pinah Zinc Mine 1m35s Highlights • Goal to reduce dilution • Under a period of three years, starting with a dilution of 20%, it has been reduced to 11% • Significant improvements in the planning process • Game changer in productivity • Annual record production See
Slide 128: Epiroc’s digitalization in numbers
Epiroc’s digitalization in numbers Leadership within automation • 3 100+ driverless machines (mixed fleet) • Different types of machines automated 150+ Leadership within safety • 3 000+ CAS L7/8 systems delivered • 100+ CAS L9 systems delivered • Installations of situational awareness systems at 45+
Slide 129: Digital Solutions’ growth potential at a glance
Digital Solutions’ growth potential at a glance The agnostic portfolio is geared up to scale with increasing customer demand CONNECT AUTOMATE PROTECT PLAN OPERATE SUSTAIN Current revenue Large Medium Small Scalability Projects Software & projects Software & Projects Growth potential Digital enabler
Slide 130: Film: Groundbreaking Intelligence
Film: Groundbreaking Intelligence 1m28s Highlights • IT, digitalization, automation and AI are all part of the modern mine • No mines are the same • Speed of change higher than ever • Improved safety and data-driven decisions • Are you drowning in siloed data? • Use what we have in smarter ways • Yo
Slide 131: Delivering customer value across all levels of mining operations
Delivering customer value across all levels of mining operations Larger customer engagements with mixed fleet and increased complexity Mine Fleet Complexity Machine Customer value: Provide a holistic view of the mine and data they can trust. Customer value: Reduce non-productive time, create visibil
Slide 132: The Digital Solutions division in the future
The Digital Solutions division in the future We accelerate the transformation of our industry by unlocking value through our agnostic digital solutions and mixed fleet automation. 132
Slide 133: Tools & Attachments
Tools & Attachments 133
Slide 134: Goran Popovski
Goran Popovski ”Mr. Turnaround” 2024: President Attachments division 2020: President Tools and Attachments division, Epiroc 2017: President Hydraulic Attachments Tools division, Atlas Copco and Epiroc since 2018 2012: Vice President Marketing, Surface Drilling division, Atlas Copco 2010: Regional Bu
Slide 135: Epiroc has two reporting segments, three revenue streams and eight divisions
Epiroc has two reporting segments, three revenue streams and eight divisions Revenue split Tools & Reporting segments Tools & Attachments Attachments Equipment Equipment & Service 21% 34% 21% of revenues 66% 79% of revenues After- 13.6% Adj. EBIT margin market 23.3% Adj. EBIT margin Service 45% Tool
Slide 136: Tools and attachments for hard rock excavation, deconstruction and recycling
Tools and attachments for hard rock excavation, deconstruction and recycling The perfect match for performance The best The best The best rock The best equipment service drilling tools performance The best The best The best The best equipment service attachment performance 136
Slide 137: Attachments
1) iJ (is ® = ts O se) > <x
Slide 138: Six years of achievements within Attachments
Six years of achievements within Attachments More than doubled the Turnaround business by and new organic and business M&A opportunities activities Digital Stronger solutions for offering and increased value productivity propositions 138
Slide 139: Attachments division in the future
Attachments division in the future We dare to think new, driving innovation, customer focus, sustainability and financial resilience. By investing in talent and simplifying operations, we ensure efficiency, speed, and excellence in all we do. 139
Slide 140: Population growth and urbanization drive demand
Long term Population growth and urbanization drive demand Construction and Strong urbanization trend deconstruction equipment 68% are needed 12 000 64% 80 11 000 60% 75 70 • Around 3 million people move 10 000 56% 65 to urban areas every week +52% 9 000 60 8 000 55 • By 2050, 68% of the world 50 7 0
Slide 141: Attractive geographical exposure for the Attachments division
Long term Attractive geographical exposure for the Attachments division Americas Asia • Strong growth forecasted • Fastest-growing region • Infrastructure investments • Rapid urbanization • Shift to sustainable construction • Infrastructure megaprojects • Increased industrialization Europe Africa •
Slide 142: Urban mining has a strong growth trajectory
Urban mining has a strong growth trajectory Urbanization trend Urbanization and infrastructure renewal drive long-term demand. Waste to manage Sustainability push 2.2 billion tons of More regulations construction and make urban mining demolition waste essential. generated globally per year. Circular
Slide 143: Demand for more versatility
Demand for more versatility Attachments increase the versatility of “Swiss army knife” carrier machines • Flexible and cost efficient as one excavator handles several applications by having different attachments • Reduced need for capex and storage as the increased number of attachments require fewe
Slide 144: Building a position for future growth
Building a position for future growth Stanley Infrastructure ACB+ Supports our Expands our high- Significant sales Excellent Strengthen growth strategy end attachments synergies cultural fit offering of • Construction and portfolio • Stronger presence • Strong focus on attachments and deconstruction
Slide 145: Film: The Attachments division
Film: The Attachments division 1m03s Highlights • Develop, manufacture and market • Excavator attachments • Ground Engaging Tools • Cordless & hydraulic industrial handheld tools • We dare to think new • Advancing our business through innovation, customer understanding, financial resilience • Invest
Slide 146: Right value proposition to customers
Right value proposition to customers Tailored go-to-market strategy will increase business resilience Multi-brand approach for Direct sales deep market penetration channel Indirect sales channels Enable growth for business partners Addressing 2 700+ dealers close to end user Direct sales to end user
Slide 147: Attachment’s competitive edge
Attachment’s competitive edge OEM agnostic Increased productivity Aftermarket support Expanding our market potential Our solutions are designed to Focus on post-sale services while efficiently covering our boost customer efficiency and that enhance customer various customer demands operational produ
Slide 148: What are Ground Engaging Tools (GET)?
What are Ground Engaging Tools (GET)? Wing shrouds Side bucket protection Teeth Ground engagement Lip shrouds Lip protection Heel shrouds Rear bucket protection
Slide 149: Increased mine site productivity through GET
Increased mine site productivity through GET • The right GETs can increase excavator productivity by +5% • Payloads +3% and decreased fill times by 4% • Switching to cast lip systems can save up to USD 130 000 annually per machine • Advanced manufacturing techniques enhance GET durability and effici
Slide 150: Film: MINExpo with Michael Meidow, Attachments division
Film: MINExpo with Michael Meidow, Attachments division 1m28s Highlights • MINEXpo with Michael Meidow, Ground Engaging Genius. • VP Technical Support. • Michael was interviewed by Alexander Apell, IR Controller. 150
Slide 151: The Attachments division´s winning elements
The Attachments division´s winning elements Best people Tailored go-to-market strategy Global footprint One stop shop Multi-brand approach Diverse segments
Slide 152: Tools
Tools 152
Slide 153: Martin Hjerpe
Martin Hjerpe ”Mr. Diver” 2024: President Tools division 2023: Senior Vice President, Supply Chain & Strategy, Epiroc 2019: Senior Vice President, M&A and Strategy, Epiroc 2009: Partner, McKinsey & Company 2002: Consultant, McKinsey & Company, Sweden & USA 2000: Analyst, AB Gyllenhammar & Sahlin 200
Slide 154: Six years of achievements within Tools
Six years of achievements within Tools Innovations Higher such as availability Powerbit X Strengthening Manufacturing offering in footprint ground support 154
Slide 155: High-end offering for hard rock excavation
High-end offering for hard rock excavation • Consumables, tools and digital solutions for rock drilling and ground support used in mining and construction • Supply chain for spare parts and rock drilling tools Major revenue streams Tophammer DTH, Rotary and Ground support Other solutions, Raiseborin
Slide 156: Boosting productivity with diamonds
Boosting productivity with diamonds Powerbit X • Drill without interruption with the long-lasting drill string • Realize the full potential of automation and drill during shift and ventilation breaks • Save hundreds of hours by not changing the bit • Cut CO2 emissions by up to 90% 156
Slide 157: The ET drill string: An all-new solution
The ET drill string: An all-new solution Up to 100% Easy to see when it’s time to replace tubes 2x longer service life bending resistance Hassle-free uncoupling thanks The shoulder drive reduces wear to innovative thread geometry and material stress and ensures 3 kg more efficient energy transfer li
Slide 158: Film: MINExpo with Pieter de Bruin, Tools division
Film: MINExpo with Pieter de Bruin, Tools division 2m02s Highlights • MINExpo with Pieter De Bruin, Ground Support Guru. • Head of Strategic Marketing, Ground Support, Tools division. • Pieter was interviewed by Ola Kinnander, Media Relations Manager. 158
Slide 159: The Tools division in the future
The Tools division in the future We offer the best and most innovative drilling tools and ground support solutions, helping our customers reducing total drilling costs and improving safety and sustainability in all related applications.
Slide 160: Strategy for profitable growth
Strategy for profitable growth Operational Focus on attractive niches Innovation Aftermarket Outperformance excellence Our success is based on sustainability and a strong corporate culture 160
Slide 161: Six years of achievements within operational excellence
Six years of achievements within operational excellence Sourcing and Good progress manufacturing on 2030 goals excellence Fast paced Centers of organization excellence in during Covid- Finance and 19 HR 161
Slide 162: Well proven business model
Well proven business model Focus and decentralization since 1976 • Quick and efficient decision making • Accountability and results-driven organization High degree of direct sales • Strong customer relationships • Customer feedback leads to innovation Strong aftermarket business • Resilient, recurri
Slide 163: Long-lasting customer relationships
Long-lasting customer relationships Direct sales 89% Direct sales lead to long-lasting relationships • Direct interaction allows for better understanding of customer challenges and needs • Strong presence and close relationships lead to trust and repeat business and referrals • Immediate feedback to
Slide 164: Growth has implications on the working capital
Growth has implications on the working capital Large equipment orders Net working capital • Direct sales imply ”higher” 1 200 45 000 40 37.8 working capital as we do not 40 000 36.1 1 000 1 000 33.8 33.5 35 have distributors holding 950 35 000 31.7 30.8 25 045 900 29.5 22 420 inventory 30 000 30 800
Slide 165: The profit bridge currency effect has not been straight forward…
The profit bridge currency effect has not been straight forward… … let’s look at an example Q2 2023 827 756 611 500 393 254 314 205 179 187 49 -105 -72 Orders received -189 -161 -243 Revenues -425 -393 Operating profit 450 400 350 300 268 402 314 393 250 -148 254 255 -63 205 138 144 170 200 32 49 15
Slide 166: The profit bridge currency effect has not been straight forward…
The profit bridge currency effect has not been straight forward… … four things impact the FX effect on operating profit What you see in What you get in The details you our report our key figures cannot see… Income statement effect 1a. Translation converting subsidiaries to SEK 1. Translation Total I
Slide 167: Revaluation currency effect disrupted the bridge figures
Revaluation currency effect disrupted the bridge figures Detailed information Q2 2023 611 Example Example USA Sweden Example Example Australia Sweden Chile Australia Russia South Africa 32 70 35 -38 -243 -275 -310 Currency Currency Translation 1a. 1b. Transaction 2a. 2b. effect effect Translation In
Slide 168: Strong aftermarket business
Strong aftermarket business 66% of revenues A broad global aftermarket offering • Service, incl. digital solutions, tools, and attachments Potential to grow an even larger resilient, recurring and profitable revenue stream • Service agreements, circular offerings and increased technological height o
Slide 169: Benefits with flexible manufacturing
Benefits with flexible manufacturing 75% of product cost for equipment is purchased • We produce equipment to order, which enables quick and smooth adjustments in manufacturing in the event of changed demand • We only produce core components to safeguard a flexible manufacturing set-up whilst protec
Slide 170: Produce once. Sell twice.
Produce once. Sell twice. Our circular approach enables double revenue streams. Example: Battery 1st life: Batteries as a Service • Offering customers increased productivity and reduced ventilation cost 2nd life: Energy storage solutions • Offering customers (mining and beyond) energy for other rele
Slide 171: Film: Epiroc batteries supporting the Swedish grid
Film: Epiroc batteries supporting the Swedish grid 1m09s Highlights • We need more renewable energy, and we also need predictability in power supply • Battery storage solution built of Epiroc 2nd life batteries • 80% of available power utilized • Use for the Swedish national grid as well as in opera
Slide 172: Focused R&D requires discipline on the intangible assets
Focused R&D requires discipline on the intangible assets 3.2% Leveraging innovation R&D expenses of revenues Focused R&D Collaboration for (Research & Development) success Acquisitions Supplier Innovation to gain speed Total internally generated intangible assets BSEK 1.4 1.7% of total assets Q224 1
Slide 173: Strategy for profitable growth
Strategy for profitable growth Attractive niches Aftermarket Operational Outperformance Innovation excellence 173 Our success is based on sustainability and a strong corporate culture 173
Slide 174: Financial goal: Annual revenue growth of 8% over a business cycle
Financial goal: Annual revenue growth of 8% over a business cycle 10% revenue growth per year since listing Whereof 3% acquired revenues 61 219 56 516 +10% 44 095 40 620 38 030 37 036 34 150 Q218 Q219 Q220 Q221 Q222 Q223 Q224 Revenues, MSEK, 12 months 174 Line/circle with figure = CAGR
Slide 175: Financial goal: Industry-best operating margin, with strong resilience over the cycle
Financial goal: Industry-best operating margin, with strong resilience over the cycle Operating profit increased 12% per year since listing with industry-leading margin +12% 14 000 12 709 25 22.6 22.5 21.8 12 290 12 000 20.3 20.1 18.7 19.2 20 9 958 10 000 8 253 8 081 15 8 000 6 373 7 293 12.7 11.0 1
Slide 176: Financial goal: Improve capital efficiency and resilience
Financial goal: Improve capital efficiency and resilience. Investments and acquisitions shall create value. Building a more resilient company Capital employed at high levels, but impacted by cash and acquisitions • Wider offering leads to higher recurring resilient revenues and drives profitable gro
Slide 177: Financial goal: Efficient capital structure and flexibility for acquisitions
Financial goal: Have an efficient capital structure and have the flexibility to make selective acquisitions. The goal is to maintain an investment grade rating. S&P rating: BBB+ Stable outlook Strong balance sheet despite recent high M&A activity 1.2 30 000 1.04 1.0 25 000 0.8 0.60 0.6 20 000 0.40 0
Slide 178: Financial goal: Long-term stable and rising dividends
Financial goal: Provide long-term stable and rising dividends to its shareholders. The dividend should correspond to 50% of net profit over the cycle. Priorities for use of cash Dividend and payout ratio 1. Continuously invest in 8 60 organic profitable growth 56 7 55 2. Invest in acquisitions that
Slide 179: Cash is king…
Cash is king… Operating cash flow and cash conversion rate, % 9 000 155 160 8 205 8 000 7 711 140 7 000 6 350 6 357 120 105 6 000 4 997 5 220 100 5 000 82 82 90 80 4 000 67 3 051 60 3 000 54 40 2 000 1 000 20 0 0 Q218 Q219 Q220 Q221 Q222 Q223 Q224 Cash conversion rate, %, 12 months (Operating cash f
Slide 180: Investment case
Investment case We accelerate the productivity We have a high proportion We have a well-proven and sustainability transformation of recurring business business model in our industry Operational Operational Attractive niches Innovation Aftermarket Outperformance excellence excellence We focus on attr
Slide 181: Q&A
Q&A
Slide 182: 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 183: Slide 183