Hello everyone, and a warm welcome to Epiroc Q3 results presentation. My name is Karin Larsson. I'm head of IR here at Epiroc, and with me today, I have our CEO, Helena Hedblom, and our CFO, Håkan Folin. We will do like we always do, that means, that Helena and Håkan will briefly present the results before we do a short Q&A session, and that will be done over the phone. All in all, we have one hour for the presentation today, and I know you are all eager to hear more about this strong set of results. Without further ado, Helena, please, the stage is yours. Thank you so much, Karin, and also from my side, welcome. Yes, it was indeed a strong quarter. Demand remained high. Excluding Russia, the order intake increased 5% organically. The aftermarket developed well, with a particularly strong growth in service. Orders up 22% organic year-over-year. We also won a handful large equipment orders totaling more than SEK 1 billion, and many of them included automation, digitalization, and electrification solutions. These solutions help our customers to increase safety and productivity, as well as lower emissions, which is critical regardless of business climate. We have published three large orders, but we have also some smaller ones worth mentioning. In Africa, we got an order for our Collision Avoidance System for more than 60 underground machines to increase safety. In Australia, JTMEC, one of our recently acquired companies, got their largest order ever for electrical infrastructure solutions for a tunneling project, about SEK 70 million. We also successfully managed to increase the output in the quarter despite supply chain challenges, and this translated into record revenues. We also did well on compensating for increasing cost, and this led to a record adjusted margin. Profitable growth indeed. We are a productivity and sustainability partner to our customers, and together we drive the transformation in the industry. We emphasize innovation, and we continuously expand our offering. We also complement our innovations with acquisitions that accelerate our efforts. We have signed five acquisitions this quarter, which shows that we are executing well on our acquisition plan, and we have more in the pipeline. I will tell you more about innovations and acquisitions later on. Briefly then on the financials, as Håkan will present more details later on. Reported orders were SEK 12.3 billion, and all orders in Russia have now been removed from the order book. Excluding Russia, our orders were SEK 13.3 billion, corresponding to an organic order growth of 5%. Revenues increased 28% to record high SEK 12.8 billion, corresponding to 12% organic growth. Reported operating profit was also record high at SEK 2.9 billion. We took another provision related to Russia amounting to SEK 150 million, and the adjusted margin was 23.9%, up from 23.4%, also a record. The cash flow came in at SEK 1.8 billion versus SEK 1.6 billion last year. Not bad, but I think we can do better on working capital going forward. Now some comments on innovations, attractive acquisitions, and partnerships that strengthen our leading position. I will start off with innovations. We have launched our new Boomer E10 and E20 face drilling rigs, and they are suitable both for the mining and construction industry. With the teleremote features, the operator can now monitor the machine safely from a control room and still be as much as 25% more productive. Both rigs are available with optional battery-electric driveline for zero emission tramming, of course. Another interesting innovation is the Auto Bolt Reload. In short, it is automation for bolting, and it removes the need for manual interference, and this is key for operator safety. Since the end of June, we have been very active on the acquisition front with five completed or announced acquisitions. We started off with RNP México. They develops, manufactures, and sells rock drills and related components, serving both mining and the construction customers, mainly in Latin America. AARD Mining Equipment, they are specialized in low-profile underground machines, and they complement our underground offering and strengthen our position in Africa. We have Radlink. They provide wireless connectivity solutions. Robust wireless networks are vital to support mining automation, including autonomous and teleremote solutions and digitalization, which in turn strengthen safety and productivity. We have Geoscan. Geoscan provides digital geological imaging solutions to mining companies and complements our current offering within orebody knowledge. Orebody knowledge is very important to make the whole mining process more efficient. Finally, Wain-Roy will strengthen our presence in the North American construction market and increase our capacity for manufacturing advanced attachments in that region. All in all, this means that we are executing well on our acquisition strategy, which is very pleasing to see. All these companies will strengthen our market leading position and our aftermarket footprint. A warm welcome to our new colleagues. Before I move it to the next slide, I want to mention our green bonds. We issued green bonds amounting to SEK 2 billion in September, and there was considerable interest, and the proceeds will enable us to finance sustainable investments and achieve our sustainability goals for 2030, including halving our CO2 emissions. Now we will take a look at the aftermarket. The customer activity was high in the quarter, and our service business developed well, very well with strong growth. Excluding Russia, the orders for service increased 22% organically, and the growth reflects a high activity level, larger rebuilds, and a meaningful order within electrical infrastructure, as I mentioned in the beginning. For Tools & Attachments, the development on orders excluding Russia was more or less in line with the previous year. We do see a somewhat lower order intake for attachments and exploration tools, which were very strong last year. On the positive side, it's good to see that we are reducing our orders on hand and we are shortening our lead times. An enabler to grow our aftermarket is connectivity, and the number of machines delivered with connectivity is growing. Another way of growing our aftermarket is to have the most skilled service technicians, and currently, we have roughly 6,600 around the globe. To increase customer focus and build even stronger relationships, we will establish regional parts and service divisions as from 2023. The regionalization of the service business will also improve internal performance and efficiency. In short, increase operational excellence. We are in a constant improvement mode, as you know. Over the last few years, we have changed our supply chain. We have created a more focused organization and realized our distribution network, and we have seen some good results despite the challenges within the supply chain. We have improved in availability, we have reduced environmental footprint as we ship less with air freight, and in Q3, we also successfully managed to increase equipment output from our factories. Our ambition going forward is to continue to improve availability, efficiency, and inventory cost. We always strive to do better. That leads me to the topic of sustainability. In a world where speed and digitalization are ever more important, it's vital that we attract the right people to future-proof our organization. This includes attracting and retaining people that are collaborative, creative, and adaptable. For this, we need to utilize the whole talent pool, and it's pleasing to see an increased share of women employees and women managers in Epiroc. It's less encouraging to see the development within safety. The total recordable injury frequency rate has increased compared to last year, and we are now increasing our efforts even further to bend this trend. This includes additional training and dedicated task force teams for certain entities. We must make sure that all Epiroc employees come home safe and sound after a working day. On carbon emissions, the trend is better. In our operations, we decreased our emissions, and in relation to sales, we also decreased our emissions in transport. However, in absolute numbers, the emissions from transport have increased as we deliver higher volumes. A few words on Russia. It has been more than eight months since the war started in Ukraine, and it is truly horrifying. We stopped all deliveries to Russia on March first, and it is our assessment that it's currently not possible to conduct business in the country. All orders in Russia have been removed from the order book, which impacted the reported orders received with SEK 1 billion. We also took a provision of SEK 150 million in the quarter, which is in addition to the provision taken in the second quarter of SEK 400 million, and the provision is related to receivables, inventories, and restructuring cost. Håkan, please guide us through the financials. Thank you very much, Helena. Let me start with the operating profit. It was very strong at SEK 2.9 billion, negatively impacted by the provisions related to Russia of SEK 150 million, and also a change in provision for the share-based long-term incentive program of SEK 40 million. Adjusted for this, the profit was above SEK 3 billion, which is the highest level ever for Epiroc. On the margin side, we had tailwind from the strong organic growth, but acquisitions and currency diluted. The adjusted operating margin was 23.9%, up from 23.4% last year, and this was also record high. Looking into the bridge, the profit is rather straightforward with a strong organic contribution. The margin impact from currency, however, might be different from what you had anticipated. Currency was positive in absolute contribution to profit, plus SEK 260 million, but negative on the margin side. This is largely explained by period-end effects when revaluing local inventory. If we move on to Equipment & Service, excluding Russia, the orders received were SEK 10.5 billion, corresponding to an organic order growth of 8%. Currency contributed with 12%, while there was no contribution from acquisition. Previous years included order on hand from acquired companies of approximately 3%, and then we reversed that in the bridge, and that's why we get to 0%. For equipment, excluding Russia again, the orders declined 7% organically. As Helena said, we had a handful of large order amounting to more than SEK 1 billion. The orders are rather diverse when it comes to market and geography, but it's clear that our customers seek solutions to increase their productivity, safety, as well as improving their carbon footprint. For service, excluding Russia, the orders increased 22%, and this is, of course, really strong. The growth reflected a high activity level in both the mining and the construction segment. Revenues were also strong at SEK 9.8 billion, as was the adjusted operating profit, both record high for Equipment & Service, and the adjusted margin was 26.2%. Acquisitions and the regional structure, Helena has already covered that, so I will move on to the next slide. Also here, the profit is rather straightforward. We started with SEK 1.9 billion last year. We add SEK 480 million in organic contribution and then another SEK 159 million from currency. We have the structure, which is mainly the provision related to Russia impacting negatively. Reported operating profit of SEK 2.4 billion, and adjusted for the provisions, it gives us a record high profit of close to SEK 2.6 billion. Adjusted margin of 26.2% was marginally lower than last year. Here, the positive contribution from organic growth was offset by a negative effect from currency. Dilution from acquisition was small, around 30 basis points. Moving on to Tools & Attachments, and if we exclude Russia here as well, orders received were SEK 2.9 billion, which correspond to an organic order decline of 2%. Last year, one should remember, we had a very strong organic growth of 14%, so comparables are rather tough here for Tools & Attachments. Currency contribute with 12%, while acquisitions were negative, -5%. Again, here, previous year in the bridge included orders on hand from acquired companies of approximately 7%, which we then reverse now in the bridge. Revenues increased 12% to SEK 3 billion, and this was almost entirely due to currency. The adjusted margin was record high at 19.2%. What has happened then if we look back a year in the bridge? Well, the positive effect year-on-year came mainly from currency, plus SEK 74 million. Once we add back the provision related to Russia, we have a profit of SEK 583 million. The adjusted margin increased to 19.2%, which is mainly then due to this positive currency contribution. There was no impact, dilution, or accretion from acquisition. Is this margin sustainable, you might ask? We don't provide guidance on margin, but we are very pleased to say that Tools & Attachments now have five quarters in a row with a margin above 18%. Looking into costs, they are higher. The reasons are a combination of currency, acquisition, and we also continue to invest in the business with more activity in marketing and R&D. The high activity level is also reflected in higher costs for logistics resources as these are including admin costs. However, if we look in relation to revenues, the costs are relatively stable, and they're actually somewhat lower than what we saw in Q2. Net financial items were minus SEK 24 million. Last year, they were positive, and there we had a positive exchange rate difference. The interest net was SEK 23 million, and given the overall higher interest rate level, this will be somewhat higher going forward. We have an effective tax rate of 22.0%. Looking ahead, an effective tax rate for us will be roughly between 22% and 24%. We continue to deliver solid cash flow, operating cash flow, and in this quarter, it amounted to SEK 1.8 billion, somewhat higher than last year. In the table, we see that the change in working capital was more negative than last year, and I will cover that also on the next slide. This is the main reason as to why the cash flow isn't even higher than Q3 last year. On the net working capital then, compared to the previous year and excluding acquisitions and currency, net working capital increased 23% to SEK 7.7 billion. The increase is mainly in inventories, is explained by growth and in combination with challenges in the supply chain. The average net working capital in relation to revenues in the last 12 months is now at 13.4%. It's up from 29.8% last year. You can trust me, this is very high on our agenda. I feel encouraged by the fact that we managed to increase our output in the factories this quarter, and we strive to continue to do that, also in the fourth quarter. Return on capital employed improved compared to last year to 27.9%, and that's an increase of almost 3 percentage points. Our financial position remains strong. We have a net cash position of SEK 1.5 billion, and a strong financial position allow us to invest in organic and inorganic growth, and we are quite active when it comes to acquisition, as you heard from Helena before. In the near term, we will close and pay for three acquisitions, and also we will pay for the second part of our annual dividend. Actually, this dividend will be distributed tomorrow, SEK 1.5 per share, and in total SEK 1.8 billion. Helena, that was it for me and back to you. Thank you so much. To briefly conclude then this strong quarter. We have won several large orders that improve safety, increase productivity and lower emissions. We have yet again a strong service business. We have successfully managed to increase our output despite the supply chain challenges, and we deliver profitable growth. We have acquired several companies, proving that we're executing well on our M&A strategy. Finally, by collaborating closely with our customers, partners and innovation leaders in other industries, we drive the transformation of the mining and construction industries. Together we make it happen. Also to conclude, a few words then on what to expect onwards. We expect that the underlying demand, both for equipment and aftermarket, will remain at a high level in the near term. That said, the economic uncertainty with rising inflation around the globe makes it increasingly important that we remain agile and resilient in Epiroc. Our long history of decentralization and our close customer relationships serves us well. Over to Karin then, and we will start the Q&A. Yes. Thank you, Helena. Thank you, Håkan. Well done as always. It's time for the Q&A session, and we will do it over the phone as we always do. To me, operational excellence in the Q&A session means that you keep your questions short, and we keep the answers clear. Operator, please open the line. Thank you. Just as a reminder to participants, if you do wish to ask a question, please dial zero one on your telephone keypads now. When it's your turn to speak, you'll be announced, and you can ask your question. If you find your question is answered before it's your turn, you can dial zero two to cancel. Our first question comes from the line of Klas Bergelind of Citi. Please go ahead. Your line is open. Thank you. Hi, Helena, Håkan. Klas at Citi. My first one is on the equipment side. Obviously it's great to see the service business yet again showing strong growth. I wanted to zoom in on the equipment business ex Russia. We know that orders typically are weaker quarter on quarter into the third. There is some seasonality in there, but you are singling out it seems like, Helena, North America now being weaker. Is that also linked to the construction infra side or is it mining? Also, did you say large orders were over SEK 1 billion? I think I heard same as second quarter around SEK 800 million when I caught up with Karin before, but might have been an equipment comment, not group. Thank you. No. I would say so. We have seen a softening of the construction market in North America, and as you know, that's a big portion of the equipment or a big portion of our market there. The softening both there as well as in China on the equipment side. Of course it's when you're comparing quarter by quarter, you know, with the previous quarter, you can always have these large orders that plays with the numbers, so to say. But if you look on the equipment orders in total, we continue to see, you know, roughly half is expansion orders, roughly half is replacement orders. If you look on it from a total perspective. Okay. It was SEK 1 billion total group and then, yeah, that was on the large side, right? Yeah. Okay. Yes. My second one is on services. I doubt that we have seen this already given the organic growth that you deliver at the moment. We're getting some questions on potential push outs of rebuilds should we enter recession. I appreciate that the miners are focusing on productivity right now, and this business is growing very fast for you. It has really been a positive decoupling versus production rates the last couple of years. I just wonder, Helena, if you could help us maybe a little bit with how much is rebuilt relative to spare parts and service contracts right now of your orders. It's contributing well. Not only, you know, normal rebuilds, but also the service products that we have developed over the years. I don't share that view that we see that customers are pushing that out in time. I would say it's the other way around that, you know, we see more and more rebuilds. That is of course to keep up productivity waiting for machines to be delivered and to keep productivity up for our customers. We have not seen, you know, delays when it comes to these type of rebuilds. Contrary, I would say. Yeah. If you look back on the previous downturns, I know that you don't see it now, it's the contrary. I mean, is this a risk to the service growth as we enter recession, or are we gonna see the decline more on the equipment side and then rebuilds keeps going? I think rebuilds will keep going, especially if you include, you know, it's not just rebuilds and you put the same machine back. When you include also new features, it's a way for our customers to improve productivity or safety, you know, much faster than waiting for new equipment. It's also the difference between OpEx and CapEx for our customers. I don't see that we will. I think this trend is clear. Also from a, you know, from a sustainability perspective and a circularity perspective, it's a win-win. Okay, very quick final one on the share of battery electric. If you could help us with how much of orders are now battery electric versus year ago, and we heard from one of your peers who are pretty big step up here in the theme. Mm-hmm. Also, if Battery as a Service is still around two-thirds of the order and your quotations, and to what extent you recognize the revenue stream in the equipment division more relative to service. I think that's the case, but would be good to get an update. Year to date, clearly, you know, electrification is taking off, both on the equipment side, and we have also other products now with electrical infrastructure, as we have talked about. It was really pleasing to see that large order of SEK 70 million that we landed in the quarter. It was the largest order ever, for those type of products. We continue to see a majority of our customers, they choose Battery as a Service. That is good. The revenue you see in equipment. Yeah. Mm-hmm. Okay. No share in total? I'm trying. No. Not yet. Okay. All right. Thank you. Thank you. Our next question comes from the line of Guillermo Peigneux of UBS. Please go ahead, your line is open. Thank you. Maybe a couple of questions from my side. One is a little bit of a bookkeeping one. With regards to your backlog margin after excluding Russia, is that accretive or dilutive to your backlog margins overall? I'll stop there and ask the second one later. You mean if we have managed to increase prices to, let's say, compensate for the increased cost? I think, you know, when we look at we have been very active now for many quarters, you know, since it has been so dynamic environment with increased cost. The organization has done a tremendous job in protecting the margin, as you can see. I feel very comfortable that we have done our homework when it comes to pricing, and we continue to be very active since it is a dynamic environment. I guess maybe if I understood you correctly, Guillermo, your question was more on the profitability in Russia and if we change now when we don't have Russian orders still being delivered. I mean, Russia was a big and large market for us, but we don't comment on profitability by specific end markets. That was my. I think Helena answered my second question, so I don't need to ask it anymore. Thank you. Okay. That's how good she is. Thank you. Our next question comes from the line of Max Yates at Morgan Stanley. Please go ahead, your line is open. Thank you. Just my first question was around your supply chains, and obviously you have a fairly outsourced business model. I just wanted to understand, where do you buy most of your components from? Because we're hearing across Europe quite a lot of increases in component costs and particularly from European suppliers. Mm-hmm. Given higher energy costs. I just wanted to understand a little bit around your supply chains, whether you are seeing any sharp increases in your component costs. I appreciate while we're not seeing any impact now, is there risk that maybe over the next couple of quarters, some of the the orders taken earlier in the year maybe see a bit of margin pressure and how you go about managing that. That's my first question. We have for a number of years now been, I would say, maximizing the potential with our footprint. We have a strong production base in U.S., one in Europe, then we have China and India. We have moved quite a lot of volumes from Europe actually over the years, especially on equipment to both China and India. Of course, the sub-suppliers are following that footprint to shorten lead times. I do see that, you know, that work will continue. I think we have a good spread from a risk perspective when it comes to the supplier base today. We're better positioned today than we were a couple of years ago. But I share your view that we are seeing, you know, steep increase of costs, mainly in Europe. So of course, this is something also to continue to work on and source closer to the end market, which we are busy doing in the supply chain set up for the aftermarket as well. And that, of course, reduce transports and lead time, et cetera, and tied capital, so it goes hand in hand. I really see that regionalization, both from production footprint as well as from a sourcing of the components into the aftermarket, that is the way forward, and it's something that we have been working with for a number of years now. Okay. Just my follow-up was around you talked about sort of changing the setup in Tools & Attachments to more of a regional one and that work would start on that next year. Could you just elaborate a little bit just on how it's set up today, what the changes look like, and should we think about sort of the potential financial benefits here being kind of faster revenue growth? Or is this more something where you feel you can improve profitability? Just a little bit of color around that would be helpful. Thank you. For Tools & Attachments, we have already a very good footprint with factories in all regions. We have not really maximized the potential producing all different products, you know, in all these factories. That is what we are planning to do and executing on as well. It's not really to get the cost down. I think that is not the main purpose. It's really lead times. You know, shorter lead times since these are heavy products and you need to ship by sea. It's very much for, say, to consolidate those type of products so that you produce them closer to the end market. I would say another thing that we're also doing or preparing for is the regionalization of the parts and service division. As you have seen, we have announced that, and we are preparing everything now to be ready from first of January next year. That comes with the same logic, to be closer to our customers. That will give more focus, you know, when it comes to interacting with customers, better efficiency, and the supply chain will then follow the aftermarket and that regional structure as well. That is how we have transformed the supply chain over the last couple of years into a more regional setup. This is to enable, you know, continued focus, good growth in the parts and service business as well. Okay. Just a very quick housekeeping one. Can you quantify the FX revaluations that you had in the quarter, and so what FX there should have been excluding those? We don't go into exactly those details. Like I commented on before, you can say we were also expecting more contribution from the FX than what we had in the quarter. It's still positive in absolute terms, as mentioned, SEK 260 million, but then slightly dilutive on margin. Yeah. FX is always a bit. Okay. It's always a bit depending on the exact rate on the exchange date, et cetera, and what it's bridging with the comparison to last year as well, which makes it a bit more complicated than one might think. Yeah. Understood. Thank you. Thank you. Our next question comes from the line of Andre Kukhnin at Credit Suisse. Please go ahead. Your line is open. Good afternoon. Thank you very much for taking my questions. It's Andre from Credit Suisse. Firstly, on Tools & Attachments, the order run rate there kind of ticked down a little bit, and I understand this is due to your early pricing action and some selectivity. Could you help quantifying that impact, if possible at all? Primarily is competition following your early price move? First I think we should remember that we have quite tough comparison, as Håkan mentioned. We had really, you know, strong growth last year. I think, you know, there are certain segments and certain products in the tools attachment business where the cost increases for material have been material. We have compensated with pricing to protect the bottom line. That of course means that certain deals you have to walk away from, you know, to protect the margins. We are in the profitable growth business, and that is, you know, the way forward for us. It is, as I said, you know, also very dynamic when it comes to pricing. I think, you know, when you look at our performance in this division with that steep increase of the ingoing costs, I think they have done a tremendous job in protecting the margin. You also know that we have been working for many, many years to get up to this level where we are at right now. Yes. Got it. Thank you. On the connected remotely monitored devices, can you provide any numbers on that, on how many units you do have in that portfolio that are kind of connected and remotely monitored, and how that's evolved in the last six to 12 months? It's growing every quarter. We have more than 7,000 connected machines right now, which gives us very valuable insights, both when it comes to the activity levels out there, of course, but also the consumptions of tools, attachments and parts. It's growing every quarter. I think we started this journey four years ago, and then we were more or less at zero. It's growing fast. All machines that leaves the factories are prepared with connectivity, and then we also retrofit. Great. Thank you. The last one, just to follow up on Max's previous question. I wondered if that change to regionalization of your parts and services division and in Tools & Attachments does that differentiate you versus competition, or is this how competition is set up already? It's not to my knowledge how our competition have it set up. I strongly believe in focus. If you look on the last five years, the parts and service division has been growing in a tremendous way. Our ambition is to continue to grow with you know, with very good numbers. Then we strongly believe that regional setup will serve us well into the next phase here to continue this journey. Great. Thank you very much, Helena. Mm. Thank you. Our next question comes from the line of Vlad Sergiev skiy at Bank of America. Please go ahead. Your line is open. Yes. Hello. Thanks very much. A few questions on the outlook, if I may. First on new equipment, just thinking about the backdrop, right? The customers are seeing decline in earnings, plus uncertain macro. At the same time, costs of building new projects actually have gone up a lot. Under this backdrop, is it possible, is there a chance that customers just stop converting the pipeline and we see an air pocket in orders? Do you see any risk of that, and do you see any signs of that? That's the first one. When it comes to our order stock on equipment, mainly, we always look and do a risk assessment of that order stock. We don't see a risk related to that. With the lead times we have had, you know, many of these equipments are related to expansion projects that will move ahead. I don't see, you know, any larger risk in that order stock should the environment change. Yeah. Thanks. Thanks, Helena. I'm more asking you about the new projects, right? Mm. The new orders to new equipment. Is it possible that there will be a slowdown in project sanctioning, the projects which are not sanctioned yet? Mm. Therefore obviously a slowdown in the inbound orders here? I think if we look on, you know, the commodity prices are still holding up well, then as we say, the cost for our customers are also going up. I think it will differ between the different commodities. If we look on some of the commodities, if we take copper, for example, you know, there must be more copper mines or copper assets coming on board in the coming years, also to keep production at the same level and to be able to deliver on the green transformation for the world. I still believe that there will be need for expansion projects. If you look also on the mix on the capital equipment side for us on orders, half of it is still expansion projects. As always, you know, in a tougher market environment, it's more likely to do brownfield expansion than a greenfield expansion. Yeah, makes sense. Thanks very much, Helena. Mm. Perhaps the last one from me on a more positive side on services side. Here is obviously exceptionally strong order levels, right? Mm. Another quarter. Obviously you are telling us the equipment is running hard. At the same time, if we look at the miners' production targets, they're all being missed. Mm. How do we reconcile those two things? Mm. Just maybe a question on sustainability of this SEK 6 billion plus of services orders this quarter going forward. Mm. Thank you very much. Of course, the equipment, the fleet out there is growing older. That consumes more parts. We also have a stronger offering now when it comes to rebuilds that we did not have before, so that is also supporting the growth. It's also this very hard work that we're actually taking customer share. It's not only. Of course, the activity level is not 22% up in the quarter if you look on the, you know, to compare with output in the mines. It's a combination of, you know, us doing a good job in capturing more shares, you know, our new products and also contribution then from everything we have been doing over the last couple of years. You know, investing in workshops, training our technicians, taking on more and more service contracts, et cetera. It's a combination of many different things. This is great to hear. Mm. Thank you very much. Thank you. Our next question comes from the line of Nicholas Green at Bernstein. Please go ahead. Your line is open. Hello there. Good afternoon. Thanks for taking my question. Nick Green at Bernstein. I'd like to talk about order intake, please. I'm just trying to get a little bit of clarity around the movement in order intake. The Russian adjustment has been done in quite an unconventional way, deducting the Russian sort of, you know, the removal from the order book, deducting it from intake does complicate the numbers quite a bit. I think in your table on page 22, where you show the European order intake's down 72% for the year, it would be nice to try and work out what that real data point should be. Because from my understanding of looking into it this morning, we're not comparing apples with apples here. The Q3 comparative last year does include Russia. The Q3 comparative this year doesn't include Russia. Maybe if you could just try and delve into this a bit. I would say roughly on our numbers, it looks like something like 16% year-on-year reduction in Europe, but that would include an FX benefit, presumably. Maybe that beneath this there is still quite a large reduction, decline in European order intake. Mm. Can you, clarify or validate whether that is the case? Thank you. Do you want to start, or? On the table, I think you got it right. Maybe we're just talking about it differently. It does include Russia, but then for Q3 this year, of course, Russia is negative with SEK 1 billion, as we said before. That's where you get this minus 72%. On the demand as such in Russia. The demand in Europe. Oh, sorry, in Europe. Yeah. I think what we have seen is, you know, when we look at the comparison also weaker for attachment in Europe, and you know, construction related in Europe. Do you feel that because the Tools & Attachments business didn't really have a great deal of exposure to Russia, to my understanding? No, not Russia. So the minus- Not Russia, but Europe. Europe. Yes. Okay. Europe. The -37% we're seeing in Europe Tools and Attachments, do you feel that's a fairly representative data point of the organic decline that you've seen in Europe in this quarter? I think we also need to remember we had extremely strong growth last year in Europe related to attachments. If you just look on that product line, we had tremendous growth in Europe. Maybe we can come back, you know, with more details to you off the call. Okay. Thank you very much. Mm. Thank you. Our next question comes from the line of James Moore at Redburn. Please go ahead. Your line is open. Yeah, good afternoon, everyone. Thanks for fitting me in. I've got one conceptual question and then one, some more technical on price. May I start with price? Is there any chance? I know you don't disclose it, but you did for 20 years in the old Atlas format. You could give us some of what the gross pricing is doing at the moment, given the current inflationary topics on the planet. Then also, could you just help us understand how the net price accretion dilution has been moving? I'm not expecting you to give a net number. That would be great. Just more. Was it more dilutive a couple of quarters ago, then now breakeven? If, say, at current inflationary prices move forward, you might expect to be more accretive. Just trying to understand how that's shifting and impacting margin. That's on price. Then my. Maybe come back on the second one. Mm-hmm. I think on pricing, of course, we are not sharing the numbers. If you look on, you know, over the last year, I would say, with the very dynamic situation we have been in, of course, it's much, you know, you can be quicker in adjusting pricing in the aftermarket. That also translates into an impact on the revenue side much quicker, compared to the equipment side, where we had longer lead times. I would say, you know, during the year, we have compensated now well also on the equipment side. All in all, I think that, you know, when you look at the performance of the company, of course, you know, it's because we have been active and been agile, I would say, when it comes to price management. Okay. Is the net price versus all inflationary topics broadly breakeven for the group these days? Or is it still a headwind, or is it even an accretion? It's not a headwind. If I say so. Nice. That's a help. The potential question is just about the cycle. Historically, when metal prices fall, I know they're holding up a bit, but we're still down 25% in copper, 15% in gold, April. Typically we see equipment orders roll over. Also, if we see an industrial economic downturn, which I would imagine we're going to see next year, typically equipment orders roll over. Yet you make good points. There's a lot of need on. There's all grade deterioration, there's permitting problems, etc., etc. I just wonder, when you talk to your customers, whether you have a flavor for whether they're gonna do what Rio says they're gonna do and invest through a downturn and just keep going. Mm-hmm. Or whether you'll see any of that discretionary pullback. I think, you know, as you say, you know, correctly, we see typically equipment going down in a downturn. I think what is different this time is, of course, also the opportunities with the technology and the push for ESG. For our customers to deliver upon their promises on ESG, you know, some of these technologies needs to be implemented. I think that is a different environment today, and it's much more focused, I would say, on a sustainable development of the industry rather than just maximizing output. Everything is about productivity and sustainability when it comes to discussions with our customers today. Thank you very much. Thank you. Our next question comes from the line of Anders Idborg of ABG. Please go ahead. Your line is open. Yeah. Hi, good afternoon. Yeah, most of my questions were answered. Could you come back, Helena, to what you said about exploration equipment or exploration tools rather being slightly weaker? I know you talked about this being strong earlier in, you know, in gold, copper, and sometimes you mentioned this, you know, just being a good leading indicator for spending. Yeah. We have seen a softening on the consumable side for exploration, and mainly related to the juniors in North America. And that is, of course, related to their financing situation. Not really among the mining companies doing exploration you know, from a brownfield perspective, more the juniors. That's where we are seeing a slowdown. Okay. You wouldn't really regard this as a signal, you know, that things are about to change? We are always watching all signals, so, but it's. That's what we have seen in the quarter, and we did not see that, you know, the previous quarters. Okay. I get it. Just a second one. You talked earlier about sort of some of these orders to Russia being possible to reroute, you know, perhaps to other places. Mm-hmm. Now that you've sort of effectively decided to let it go, do you think that this could sort of speed up deliveries and free up a few bottlenecks, or how do you feel about that? No, absolutely. You know, we have a long order book, and of course, this gives us opportunity to then reroute and, you know, change our production schedule to let's say, deliver quicker to other regions as well. Also, you know, we've been busy rebuilding the machines that we had in the flow to other regions as well. Okay. Got it. Thank you. Mm-hmm. Thank you. Our next question comes from the line of Joel Spungin at Berenberg. Please go ahead. Your line is open. Hi, good afternoon. Just a couple maybe I can start with a relatively simple one. Just coming back again on the question of Russia and the SEK 1 billion of orders that you pulled out. I was just wondering if you could give us the rough split of that SEK 1 billion between service orders, equipment and Tools & Attachments. Majority is equipment. Vast majority. The majority, the significant majority. Yes. Yes. Yeah. The vast majority is equipment. Vast majority. Right. Okay. Just so I've understood this correctly, presumably we'll see a similar effect when you report Q4 and Q1, Q2 next year in terms of there being this ex-Russia adjustment until it annualizes out. Yeah, I mean, in the next quarter, we will not have these cancellations from Russia then, given that we have now, for lack of a better word, cleaned out the order book in Russia. Of course, when you compare, when we compare Q4 this year, 2022, with Q4 2021, there will be an impact in 2021 of orders received from Russia. Of about the same level as Q3? Yes, I would say. I mean, not the difference, of course, but the orders received in Russia, likely the same level in Q4 as in Q3 2021, if that's what you meant, yes. Okay. Yeah, that's exactly what I meant. Yeah, exactly. Yeah, yeah. Maybe just sort of slightly different topic, but just, I was just rereading my notes from the Q2 call. I think you talked there, we were talking about the Tools & Attachments orders in Q2, and you talked about how you sort of deliberately slowed down some of the order intake to focus on service. Mm-hmm. things like that. Is that still something that affected Q3 in the same way? Is it different now? You know, I think in Q2 we had you know fairly high overstock for consumables, which is you know not a good thing to have because that needs to turn quickly and customers cannot wait. We have been focusing on stock going down in inventory and I'm also pleased to see that revenue is you know increasing in that division, so that is good. Output is going up. You know, that is what we have seen. It's more related to, I would say, in Q3, that we're protecting the bottom line. You know, certain segments have been impacted from the cost increases and input material increases. We have compensated for that, and that means also that you need to walk away from some deals to protect the bottom line. Got it. That's all. Thank you very much. Mm-hmm. Thank you. Our next question comes from the line of Mattias Holmberg of DNB. Please go ahead, your line is open. Hi, thank you for letting me in. I have a question on the mix in Equipment & S ervices, where a couple of quarters ago you used to mention quite often the difference in profitability between service and equipment and flagging. We should expect a dilutive effect on the margin as the sales mix change in favor of equipment. Would be curious if you have a status update on this. Also, sort of when should we expect this mix headwind to be fully reflected in the P&L phase? It is so that there is, you know, profitability difference between Equipment & Service. Of course, we had for many quarters very strong growth on the equipment side. If you look now at what we turn into revenue, of course, we have also been growing over the last quarters in a really nice way on the service side. That has more or less compensated this expected mix shift that we expected or that we thought we were going to have. At the same time, it's a fact, you know, the day we start to invoice more of this equipment, of course you will have an impact from a mix at the standpoint. With the strong service growth- Thank you. -that we have had, like Helena said, you know, if we invoice more of equipment but we still continue to invoice more of services as well, then that's not gonna give a negative impact on the margin. That's clear. Thanks. Mm-hmm. Thank you. We have one further question in the queue, and it's from the line of Lars Brorson of Barclays. Please go ahead. Your line is open. Yeah. Hi, Helena. A couple of quick follow-ups from me, if I can. It's a bit late in the call, so I apologize if you have talked through this. Just on TNA margin, I mean, you've obviously pushed through some selectivity, lots of footprint savings coming through. Where are we in this margin journey? I I mean, last year you talked about keeping the 17% level. Now we're closing in at 20%. Mm-hmm. I'm also curious on the downside in TNA, if we see a more material sustained downturn, how to think about the drop through or the decrementals. There's obviously a business that struggled quite a lot back in 2015, 2016. Mm-hmm. Obviously big structural changes since then, but just trying to sort of scope where we might be in the margin story here for TNA and- Right. -What the downside risks might be- Yeah. -going into a downturn. No, but you know, we have been working for at least five years now to bring the margins up to this level where we are at right now. I'm pleased you know that now that they have been above 18% now for several quarters. I think you know that's a good level to be at. If we look on from a resilience standpoint, you know, especially the we'll say the consumer side is very resilient over a cycle. So I don't see any reason why we would not be able to we'll say protect bottom line. Of course, you need to be mindful then that sometimes you need to sacrifice growth to protect the bottom line, like we have been doing now in Q3. Because I think the key here, what we have addressed is the portfolio, and we have addressed the efficiency part, efficiency potential in that division. So that's, we'll say, not really related on cycle or anything extraordinary. It's many years of hard work addressing the efficiency and weak product lines that we had historically in these divisions. I think, you know, we will do our utmost to stay on this level. I think it's a solid level. I would say it's also best in class if you compare with other competitors. Briefly, if I can, on electrification, it stood out to me, Sandvik seeing, just in terms of percentage of load and haul order intake in the quarter, sort of team's contribution from battery electric. I appreciate it's just a quarter, but that was a lot higher than I thought. Wonder whether you can help us a bit with where you are, whether you see some market share shifts there. Also, if you could, please, in terms of electrification impact on your services business, can you help us a little bit with what, sort of battery as a service, is as part of your broader service business? Thank you. When we look year to date, we had a very strong set of orders in Q2 on electric vehicles, and that is very much reflected in on the LHD side. That's where you see the greatest benefits from a TCO standpoint and you know that's where the big saving comes from being able to reduce ventilation. It's quite normal that customers want to go on the LHD side rather than on drilling. I think on your second question there on Battery as a Service, can you repeat that one? I was trying to get some numbers, really. Oh. I was trying to understand where the- Yeah. Yeah Battery as a Service is similar to Sandvik's sort of teams as a percentage of your new order intake in load and haul new orders for the quarter, and similarly for services, please. We don't share the numbers for different products in our service in parts of service. That's generally we don't share those numbers. It's growing as we speak, and as I said, roughly 2/3 of what we have on orders for our battery machines comes with Battery as a Service. Thank you. Mm-hmm. Thank you. So- As there are no further questions at this time, I'll hand back to our speakers. Wonderful. Thank you everyone for good questions. I just wanna add on to what Håkan said about Russia in Q4. The order book, the existing order book has been cleaned out. Basically in Q4 you can anticipate the year-on-year effect mainly. On page eight in the PowerPoint presentation, you can actually see per quarter the Russia orders. In Q4 last year it was about SEK 1 billion. That's what we were referring to when we speak about Q4 onwards. Then it's time to end this presentation. To those of you that actually see me on the screen, you have noticed my very yellow jacket. It is a beautiful color. If you wanna see more yellow and hear more about how our yellow equipment drives the transformation for the construction and mining industries onwards, please add the dates June first and June second, 2023 to your calendar. We will then host our Capital Markets Day in Örebro in Sweden. Those of you that are very eager to see more of Epiroc, they can come to Munich tomorrow. Håkan and myself, we will go to bauma, the world's largest construction fair, and we will be in the Epiroc booth between 12 and 3. Thank you very much, everyone, and reach out if you have any questions. We're happy to help you, and we wish you successful investments. Thank you. Thank you. Thank you.