Slide 1: Q1 2022
Q1 2022 April 25, 2022 Helena Hedblom, President and CEO Håkan Folin, CFO
Slide 2: Highlights Q1 2022
Highlights Q1 2022 • Strong start to 2022 – Record order intake at SEK 13.8 billion – Strong demand for both equipment and aftermarket o Automation, digitalization and electrification • Solid revenues and record profit – Supply-chain challenges • Impact from the war in Ukraine Q1 2022
Slide 3: Key financials
Key financials Orders received, MSEK and change, % • Orders received up 29% to 13 818, +18% organic +29% 15 000 366 13 818 – Equipment +18% organic 14 000 866 +3% 13 000 – Service +22% organic +8% 12 000 1 896 11 000 10 690 +18% – Tools & Attachments +11% organic 10 000 • Revenues of MSEK 11 088, +1
Slide 4: Leading productivity and sustainability partner
Leading productivity and sustainability partner Innovations, acquisitions and partnerships strengthen Epiroc’s position • Innovations – DM30 XC surface blasthole drill – Mobius for Drills • Partnerships with customers – Example: Canadian Malartic Partnership – “Over the years, Epiroc has clearly dem
Slide 5: Aftermarket
Aftermarket Revenues • High customer activity • Record orders received 26% (27) T&A 31% (29) • Successful structured work Equipment towards our customers Aftermarket • Connected fleet growing 69% (71) 43% (44) Service Q1 2022 5
Slide 6: Operational excellence
Operational excellence • Supply-chain excellence – Improvement program continues – Regional distribution center set up in Belgium • Administration excellence – Simplify and increase process effectiveness – Established Regional Centers of Excellence to simplify and align administration processes • Se
Slide 7: Sustainability
Sustainability • People • Planet – Increased share of women – Partnership with SSAB for and women managers fossil-free steel o Women managers 23.0% – Lower CO2e from operations o Women employees 17.6% o More renewable energy and – Several activities to installation of solar panels reduce injuries –
Slide 8: Ukraine and Russia
Ukraine and Russia General Information • Focus on the safety and well-being of our • Ukraine employees – Revenues 2021: MSEK 294, 0.7% of Group • Exposure – Employees: 111 – Revenues 2021: MSEK 2 715, 6.8% of Group – Limited service operations and parts deliveries – No manufacturing, no major direct
Slide 9: Operating profit and margin
Operating profit and margin 4 000 23.2 23.0 23.4 22.9 23.3 24 22.6 21.7 21.3 21.7 23.6 23.7 20.7 20.9 23.2 3 500 20.3 22.6 22.4 21 21.3 21.2 18.7 20.9 21.3 3 000 19.7 19.6 18 19.0 2 554 2 588 16.8 2 500 2 302 2 279 2 197 2 331 15 39 2 160 2 131 67 1 989 2 016 15 2 000 233 115 1 911 1 896 12 59 149 7
Slide 10: Epiroc Group: Profit bridge
Epiroc Group: Profit bridge Adj. Margin: Margin: margin: 21.3% 23.7% 23.3% 2 800 2 631 2 588 2 600 +179 43 +142 +1.0pp 2 400 -0.2pp 2 200 +443 2 000 +1.6pp 1 867 1 800 1 600 1 400 600 400 200 0 Q121 Organic Currency Structure/other Q122 LTI Adjusted operating profit Q1 2022 10
Slide 11: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % +32% • Orders received up 20% organic 11 000 10 547 – Equipment +18%, strong underlying growth +4% 10 000 +8% – Service +22%, high customer activity, 9 000 +20% strong service offering and presence 7 991 8 000 • Revenues up 17% organic
Slide 12: Equipment & Service: Profit bridge
Equipment & Service: Profit bridge Margin: Margin: 26.5% 26.1% 2 200 109 -49 2 142 -0.3pp -1.3pp 2 000 386 +1.2pp 1 800 1 696 1 600 1 400 200 0 Q121 Organic Currency Structure/other Q122 Q1 2022 12
Slide 13: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % +22% • Orders received up 22% 3 400 3 263 – 11% organic growth 3 200 +3% +8% – Orders for both hydraulic attachments and rock 3 000 drilling tools increased, with higher growth rate for 2 800 +11% 2 674 hydraulic attachments • Revenues
Slide 14: Tools & Attachments: Profit bridge
Tools & Attachments: Profit bridge Margin: Margin: 16.5% 18.1% 550 520 +36 500 +0.6pp +34 450 +0.1pp +64 400 386 +0.9pp 350 300 100 50 0 Q121 Organic Currency Structure/other Q122 Q1 2022 14
Slide 15: Costs, net financials and tax
Costs, net financials and tax • Higher costs Administration, marketing and R&D expenses – Growth, increased activity, R&D, and acquisitions 2 500 35 • Net financial items MSEK -67 (-33) 30 2 000 – Interest net MSEK -16 (-20) 1 789 1 724 25 1 640 1 595 1 511 1 570 • Tax expense MSEK -564 (-444) 1 500
Slide 16: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q1 2022 Q1 2021 2 500 2 415 350 Operating profit 2 631 1 867 Depreciation, amortization and impairment 2 156 466 382 300 2 000 1 963 Capital gain/loss and other non-cash items -196 6 250 Net financial items received/paid -269 2
Slide 17: Capital efficiency
Capital efficiency • Net working capital up 23% to MSEK 13 793 • ROCE improved to 27.7% (20.9) – Up 14% when excluding acquisitions and currency – Improved to 28.9% (33.1) of revenues Net working capital Capital employed and ROCE 25 000 40 40 000 38 250 60 35.3 36.1 35.9 36 816 33.8 34 583 35 244 34
Slide 18: Capital structure
Capital structure Net debt and Net debt/EBITDA • Strong financial position 0.7 6 000 – Net cash MSEK 1 844 (5 747) 0.6 5 000 0.5 • Net debt/EBITDA ratio at -0.16 (-0.64) 4 000 0.4 3 000 0.3 • Proposed distribution to shareholders 2 000 0.2 1 000 – Dividend of SEK 3.00 (2.50) per share 0.1 0.0 0 – Tw
Slide 19: Summary
Summary Strong start Record orders received Revenue growth Record operating profit Challenges – war in Ukraine and disruptions in the supply-chain Q1 2022 19
Slide 20: Looking ahead
Looking ahead “We expect that demand, both for equipment and aftermarket, will remain at a high level in the near term.“ Q1 2022 20
Slide 21: Q&A
Q&A
Slide 22: United. Inspired. epiroc.com
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 23: 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