Slide 1: Q3 2021
Q3 2021 October 21, 2021 Helena Hedblom, President and CEO Anders Lindén, CFO
Slide 2: Highlights Q3 2021
Highlights Q3 2021 • Strong demand and record orders received – High customer activity – Investment willingness remains – Several large orders – Acquisitions • Increased revenues and profit – Supply-chain challenges increased, but limited financial impact • Automation gaining traction • Actions to i
Slide 3: Key financials
Key financials Orders received, MSEK and change, % • Orders received up 31% to 12 245, +24% organic 16 000 +31% – Equipment +43% organic 14 000 12 245 – Service +13% organic 12 000 0% +7% 9 373 +24% – Tools & Attachments +14% organic 10 000 • Organic revenue growth of 11% 0 • Operating profit increa
Slide 4: Leading productivity and sustainability partner
Leading productivity and sustainability partner Innovations, acquisitions and partnerships strengthen Epiroc’s position • Innovations – Pit Viper 291 – Automatic Bit Changer – Avatel – The Reman Program • Acquisitions – FVT Research – DandA Heavy Industries – Mining Tag – Meglab • Partnership – Epir
Slide 5: Solid aftermarket
Solid aftermarket Revenues • High customer activity • Strong and increasing 27% (25) 28% (31) offering T&A Equipment • Connected fleet growing Aftermarket • Improved availability, despite 72% (69) supply-chain challenges 45% (44) Service Q3 2021
Slide 6: Actions for operational excellence
Actions for operational excellence • Production excellence – Ramping up – Lead times somewhat longer • Supply-chain excellence – improvement program continues with higher availability and lower emissions – Positive financial effect offset by increased transport costs – Organization managing supply-c
Slide 7: Sustainability: People & planet
Sustainability: People & planet • People – +15 000 employees – Increased share of women – Initiatives to improve diversity and inclusion • Planet – Increased energy consumption in operations – Lower CO2 from transport Q3 2021
Slide 8: Operating profit and margin
Operating profit and margin 4 000 23.2 23.0 23.4 24 22.6 21.7 21.3 21.7 23.6 21.0 20.7 20.9 3 500 20.4 20.3 22.6 22.4 21 21.3 21.2 18.7 20.9 21.3 20.5 3 000 19.7 19.7 19.6 18 19.0 2 500 2 302 16.8 2 331 2 279 2 197 15 2 154 39 2 160 2 131 67 2 024 1 989 2 016 15 2 000 233 115 1 911 1 896 126 59 149
Slide 9: Epiroc Group – Profit bridge
Epiroc Group – Profit bridge Adj. Margin: Margin: margin: 20.9% 23.6% 23.4% 2 600 2 400 -133 2 352 2 331 +45 21 -1.3pp -0.1pp 2 200 +620 +4.1pp 2 000 1 820 1 800 1 600 1 400 400 200 0 Q320 Organic Currency Structure/other* Q321 LTI Adjusted operating profit Q3 2021
Slide 10: Segment: Equipment & Service
Segment: Equipment & Service Orders received, MSEK and change, % • Orders received up 26% organic 11 000 +32% – Equipment +43%, several large orders 10 000 9 336 9 000 0% +6% – Service +13%, high customer activity and strong 8 000 +26% service offering 7 068 7 000 • Revenues up 9% organic 0 • Operat
Slide 11: Equipment & Service – Profit bridge
Equipment & Service – Profit bridge Margin: Margin: 25.4% 26.4% 2 200 2 000 -116 -1.6pp -8 1 909 +387 -0.9pp 1 800 +3.5pp 1 646 1 600 1 400 400 200 0 Q320 Organic Currency Structure/other Q321 Q3 2021
Slide 12: Segment: Tools & Attachments
Segment: Tools & Attachments Orders received, MSEK and change, % • Orders received up 27% 3 200 +27% – 14% organic growth 3 000 2 866 2 800 +11% – Orders for both hydraulic attachments and 2 600 2% consumables increased 2 400 +14% 2 249 – Strong growth in exploration consumables 2 200 – 11% acquisit
Slide 13: Tools & Attachments – Profit bridge
Tools & Attachments – Profit bridge Margin: Margin: 11.6% 18.6% 550 -17 15 502 500 -0.7pp +0.3pp 450 400 250 +7.4pp 350 300 254 250 200 150 100 50 0 Q320 Organic Currency Structure/other Q321 Q3 2021
Slide 14: Costs, net financials and tax
Costs, net financials and tax • Good cost control Administration, marketing and R&D expenses – High growth and increased activity 2 000 30 – Positive effects from finalized initiatives 1 671 1 708 1 640 1 570 1 595 25 – Investments for the future – R&D at all time high 1 511 1 500 1 427 1 360 1 380
Slide 15: Capital structure
Capital structure Net debt and Net debt/EBITDA • Strong financial position 0.7 6 000 – Net cash MSEK 1 191 (3 638) 0.6 5 000 0.5 4 000 • Net debt/EBITDA ratio at -0.12 (-0.41) 0.4 3 000 0.3 0.24 • Second part of the annual dividend will be 2 000 0.2 2 416 0.05 1 000 paid in November 0.1 0.0 483 0 –
Slide 16: Capital efficiency
Capital efficiency • Net working capital up 2% to MSEK 12 104 (11 821) • ROCE improved to 25.0% (21.6) – Down 1% when excluding acquisitions and currency – Improved ratios Net working capital Capital employed and ROCE 25 000 36.1 35.9 40 40 000 36 816 60 34.3 34.4 35.3 34 583 35 244 34 700 33.8 33.1
Slide 17: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % MSEK Q3 2021 Q3 2020 3 000 300 Operating profit 2 352 1 820 2 827 Depreciation, amortization and impairment 462 426 2 500 250 Capital gain/loss and other non-cash items -51 80 2 156 2 763 2 326 2 000 1 963 200 1 883 Net financial it
Slide 18: Summary
Summary • Strong demand • Record orders • Increased revenues, profit and margin • Automation gaining traction • Sustainable innovations • Improved diversity • Acquisitions Q3 2021
Slide 19: Looking ahead
Looking ahead “We expect that demand, both for equipment and aftermarket, will remain at a high level in the near term.“ Q3 2021
Slide 20: Capital Markets Day
www.epirocgroup.com/en/cmd2021 Registration open Capital Markets Day December 1, 15:00 CET See you online! Q3 2021
Slide 21: Q&A
Q&A C Epiroc
Slide 22: 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 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