Slides
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Q2 2025 July 18, 2025 Helena Hedblom, President and CEO Håkan Folin, CFO
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Highlights Q2 2025 High underlying mining demand, weak attachments • Largest contract ever for Epiroc, BSEK 2.2 over five years to deliver a fleet of fully autonomous and electric surface mining equipment to Fortescue in Australia • Solid growth for service and tools Focus on profitable growth, stability and long-term delivery Innovation that drives value • Automation in exploration • Success for BEV trolley truck, increasing productivity by 23% 2Q2 2025
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• Orders received -7% • MSEK 15 276 (16 349) Group orders received: High mining demand 0 250 14 750 15 000 15 250 15 500 15 750 16 000 16 250 16 500 16 750 17 000 17 250 Q224 +2% Organic -9% Currency +-0% Q225 16 349 15 276 Structure/other -7% 15 436 14 360 14 388 14 162 16 349 15 520 16 182 16 586 15 276 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 +1% organic • High mining demand • MSEK 500 (950) in large orders, incl. MSEK 100 from Fortescue • Weak construction -1 9 7 -3 1 6 5 10 2 -4 -4 -2 0 2 4 6 8 10 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Organic growth, %, y-o-y (reported) Organic growth, %, y-o-y (adj. for Russia) Orders received, MSEK • -9% currency • +2% organic Orders received Organic growth Orders received bridge Q2 2025 3
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Innovation Q2 2025 4 Great proof-points from BEV fleet in full production at Assmang Black Rock Mine in South Africa • Tonnes per hour +11% • Ventilation need -42% • Energy cost -18% • Net CO2e -8 216 tonnes*, despite coal-dominant electricity mix Automated rod magazine for our popular exploration rigs Diamec, keeping the operator away from danger while boosting productivity Success for BEV trolley truck for Boliden’s Kristineberg mine in Sweden • Productivity +23% • Speed up ramp +50% • Maintenance cost -25% * From Q322 until Q124. See page 30-31.
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Film: Diamec ARM – taking exploration automation to the next level 1m34s Q2 2025 5
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Aftermarket • High mining activity with solid demand for tools and service • Weak construction market impacting attachments Q2 2025 33% (34) Equipment 43% (42) Service 24% (24) T&A Revenue split Aftermarket 67% (66) 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 10 439 10 054 9 612 9 453 10 960 10 506 10 909 10 443 Q225 10 088 Tools & Attachments revenues, MSEK Service revenues, MSEK Recurring aftermarket revenues 6
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Operational excellence Focus: Profitable growth, agility and efficient global reach • Optimizing operations to achieve economies of scale, while minimizing mid-term effect of political decisions, such as tariffs • Consolidating sites • E.g. move a tools manufacturing site from Canada to Mexico • Discontinuing non-strategic product lines • Optimizing logistics and distribution • Leveraging global manufacturing • Exploring alternative suppliers • Implementing mitigating actions together with customers Q2 2025 7
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Commitment to stability and long-term delivery 8 37 168 63 564 Q218 Q225 +71% History of translating orders into EPS and cash growth Orders +71% since listing Revenues +86% since listing Adj. EBIT +87% since listing Basic EPS +97% since listing Operating cash flow +176% since listing EBIT +98% since listing Orders received MSEK, 12M 34 150 63 616 Q218 Q225 +86% Revenues MSEK, 12M 6 373 12 623 Q218 Q225 +98% Operating profit (EBIT) MSEK, 12M 6 714 12 574 Q218 Q225 +87% Adj. operating profit (EBIT) MSEK, 12M Q218 Q225 3.77 7.43 +97% Basic EPS 12M 3 051 8 418 Q218 Q225 +176% Operating cash flow MSEK, 12M 8% CAGR 9% CAGR 10% CAGR 9% CAGR 10% CAGR 16% CAGR
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Sustainability: People Improved safety • Focus on a strong safety culture • Total recordable injury frequency rate decreased to 4.2 (4.7) Increased number and proportion of women • Women employees 20.1% (19.2) • Women managers 25.5% (23.6) Epiroc among the world’s most sustainable companies according to TIME Magazine and Statista Q2 2025 9
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Sustainability: Planet CO2e emissions from operations* -7% to 21 539 (23 269) • Higher share of renewable energy purchased • Installation of solar panels on own facilities • Energy efficiency activities in facilities and processes CO2e emissions from transport* -2% to 100 271 (102 339) State-of-the-art global logistics hub replacing existing distribution facilities in Örebro, Sweden by 2027 • Automated, efficient, safe, and with solar panels, energy storage, and backup power Q2 2025 10* Comparable units
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Group revenues and operating profit Revenues -8%, MSEK 15 130, +1% organic • 67% aftermarket (66), of which 43% service (42) EBIT -3%, MSEK 2 831, 18.7% (17.7) • IAC* -153 (-325), relating to efficiency actions 11Q2 2025 3 413 3 260 3 349 2 760 2 921 3 277 3 427 3 088 2 831 0 10 20 30 40 50 60 0 5 000 10 000 15 000 20 000 Q323 21.5 20.7 Q423 19.5 20.4 Q124 19.7 Q224 20.917.7 21.6 Q324 19.9 Q223 19.719.7 Q424 19.9 19.9 21.7 Q125 18.721.5 21.8 Q225 15 910 14 997 15 568 19.7 16 511 15 699 17 251 15 536 15 13014 143 Operating margin, EBIT, % Revenues, MSEK Operating profit, EBIT, MSEK Adj. operating margin, EBIT, % Revenues and EBIT Adj. EBIT -8%, MSEK 2 984, 19.7% (19.7) • Organic: Mix within service • Currency: Positive currency impact on internal profit • Structure: Efficiency actions Adjusted operating profit bridge 0 200 2 600 2 800 3 000 3 200 3 400 Adj. closing EBIT Structure/other 3 246 2 984 2 831 Currency -246 +0.3pp Organic -12 -0.2pp Reported EBIT -4 -0.1pp IACAdj. opening EBIT -153 -8% 19.7% 19.7% 18.7% Margin *IAC = Items affecting comparability
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• Orders received -7% • MSEK 11 506 (12 388) Equipment & Service: Orders received 12 400 12 800 0 11 600 12 000 +-0% Structure/other Q225Organic -9% Currency +2%12 388 11 506 Q224 -7% 12 276 11 311 11 551 11 025 12 388 11 830 12 180 12 377 11 506 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 +2% organic • High mining activity • Large orders MSEK 500 (950) 9 8 -2 3 9 5 12 2 -4 -1 -4 -2 0 2 4 6 8 10 12 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Organic growth, %, y-o-y (reported) Organic growth, %, y-o-y (adj. for Russia) Orders received, MSEK • -9% currency • +2% organic growth • +2% for equipment • +3% for service Orders received, MSEK and contribution in % Orders received Organic growth Orders received bridge 12Q2 2025
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Equipment & Service: Revenues and operating profit Revenues -9%, MSEK 11 435, +1% organic • 44% equipment (44), -1% organic • 56% service (56), +2% organic EBIT -7%, MSEK 2 577, 22.5% (22.1) • IAC* of MSEK -49 (-142) 13Q2 2025 Revenues and EBIT Adj. EBIT -10%, MSEK 2 626, 23.0% (23.2) • Organic: Lower volumes and mix within service • Currency: Positive currency impact on internal profit • Structure: Intensified efficiency actions Adjusted operating profit bridge 2 995 2 868 3 211 2 503 2 763 2 923 3 121 2 724 2 577 0 10 20 30 40 50 60 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 Q323 25.6 23.3 Q423 Q124 Q224 Q324 Q424 Q125 Q225 12 510 11 729 12 558 11 212 12 516 11 875 13 311 11 704 11 435 23.9 23.9 24.5 24.4 Q223 22.3 22.1 23.2 24.6 22.9 22.3 23.6 23.3 23.3 22.5 23.0 23.4 Operating margin, EBIT, % Revenues, MSEK Operating profit, EBIT, MSEK Adj. operating margin, EBIT, % 0 200 2 400 2 600 2 800 3 000 Adj. opening EBIT Adj. closing EBIT 2 905 2 626 2 577-13 -0.1pp Currency -210 +0.4pp Reported EBIT Organic IACStructure/other -56 -0.6pp -49 -10% 23.2% 23.0% 22.5% Margin *IAC = Items affecting comparability
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• Orders received -5% • MSEK 3 743 (3 947) Tools & Attachments: Orders received 200 3 800 0 4 000 4 200 4 400 4 600 3 600 3 947 3 743 CurrencyOrganic +2% -9% Q225Q224 Structure/other +2% -5%3 180 2 924 2 827 3 122 3 947 3 656 3 938 4 187 3 743 0 1 000 2 000 3 000 4 000 5 000 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 -1% organic • Mining activity high • Demand for construction attachments weak -1 2 -6 -1 -6 3 2 2 -2 -1 -8 -6 -4 -2 0 2 4 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 0 Q225 Organic growth, %, y-o-y (reported) Organic growth, %, y-o-y (adj. for Russia) Orders received, MSEK • -9% currency • +2% organic growth • +2% acquisition growth, ACB+ Orders received, MSEK and contribution in % Orders received Organic growth Orders received bridge 14Q2 2025
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Tools & Attachments: Revenues and operating profit Revenues -8%, MSEK 3 665, -2% organic • Currency -8% EBIT +33%, MSEK 376, 10.3% (7.1) • IAC* of MSEK -98 (-165) of which MSEK -70 relates to the move of the tools manufacturing site from Canada to Mexico 15Q2 2025 Revenues and EBIT Adj. EBIT +6%, MSEK 474, 12.9% (11.2) • Organic: Increased efficiency Adjusted operating profit bridge 524 481 335 429 326 461 376 0 5 10 15 20 25 30 35 40 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 Q223 15.1 15.1 Q323 8.1 243 13.4 Q423 11.4 15.6 Q124 7.1 283 11.2 Q224 11.3 11.3 Q324 8.4 8.4 Q424 12.1 12.1 Q125 10.3 12.9 15.3 15.3 3 418 3 195 2 985 2 949 Q225 3 809 3 891 3 811 3 665 3 991 Operating margin, EBIT, % Revenues, MSEK Operating profit, EBIT, MSEK Adj. operating margin, EBIT, % 400 600 0 Adj. opening EBIT +68 +2.1pp Organic -42 -0.1pp Currency +-0 -0.2pp Structure/other Adj. closing EBIT -98 Reported EBIT 448 474 376 IAC +6% 11.2% 12.9% 10.3% Margin *IAC = Items affecting comparability
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Costs, net financials and tax • Administration, marketing and R&D lower • Administration and marketing costs lower both y-o-y and sequentially • R&D costs 3.3% (3.3) of revenues • Net financial items MSEK -131 (-265) • Net interest MSEK -198 (-231) • Tax expense MSEK -597 (-612) • Effective tax rate 22.1% (23.0) 16 Administration, marketing and R&D expenses Q2 2025 2 564 2 410 2 557 2 411 2 746 2 552 2 742 2 714 2 565 0 5 10 15 20 25 30 0 500 1 000 1 500 2 000 2 500 3 000 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 16.1 16.1 16.4 17.0 16.6 16.3 15.9 17.5 17.0 -7% Expenses in % of revenues Admin, Marketing and R&D expenses, adj. for items affecting comparability, MSEK
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• Operating cash flow at MSEK 1 104 (1 609) • Build-up in working capital and lower operating profit impacted negatively • Cash conversion rate 94% (90) 17 Operating cash flow Operating cash flow and cash conversion rate, % 2 435 1 778 1 609 1 789 3 956 1 569 1 104 54 55 66 83 90 88 104 100 94 0 10 20 30 40 50 60 70 80 90 100 110 120 130 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 1 549 1 889 Cash conversion rate, %, 12 months (Operating cash flow / Net profit) Operating cash flow, MSEK Q2 2025
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Net working capital • Net working capital -9% to MSEK 22 739 (25 045) • Excluding currency and acquisitions, net working capital increased slightly • 37.5% (37.8) of revenues Net working capital 22 420 25 045 22 739 5 10 15 20 25 30 35 40 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 Q223 Q224 Q225 33.5 37.8 37.5 Net working capital, % of revenues, 12 months Net working capital, period end 11 082 11 271 11 790 20 157 21 373 18 018 -8 819 -7 599 -7 069 Q223 Q224 Q225 22 420 25 045 22 739 Working capital Inventories Receivables Payables (trade and advanced) 18Q2 2025
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Capital efficiency • Net debt MSEK 13 284 (15 801) • Cash generation • Net debt/EBITDA 0.82 (1.04) • ROCE 20.2% (22.4) • Higher intangible assets, such as goodwill and lower profit Net debt and Net debt/EBITDA 9 099 15 801 13 284 -15 000 -10 000 -5 000 0 5 000 10 000 15 000 20 000 25 000 -1.25 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 0.60 Q223 1.04 Q224 0.82 Q225 Net debt/EBITDA ratio Net cash (-) / net debt (+), end of period, MSEK Capital employed and ROCE 0 5 10 15 20 25 30 35 40 45 50 55 60 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 Q223 Q224 Q225 49 523 60 750 60 113 28.6 22.4 20.2 Return on capital employed, %, 12 months Capital employed, goodwill, MSEK, period end Capital employed, cash, MSEK, period end Capital employed, ex cash and goodwill, MSEK, period end 19Q2 2025
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Summary 20Q2 2025 • High mining demand • Largest contract ever for Epiroc • Solid growth for service and tools • Weak attachments • Focus on profitable growth • Innovation that drives value • Committed to stability and long-term delivery
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Looking ahead In the near term, we expect mining demand to remain at a high level, while demand from construction customers is expected to remain weak. 21 Q2 2025
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Q&A ir@epiroc.com Q1 2025 22
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Eager to know more about Epiroc? Karin Larsson VP IR & Media +46 10 755 0106 ir@epiroc.com Useful links • Financial publications incl. Key figures and pre- results mail • Calendar • Annual and Sustainability Report • CMD 23 Alexander Apell IRO +46 10 755 0719 ir@epiroc.com Gustaf Bratt IR Coordinator +46 76 163 8700 ir@epiroc.com
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Appendix Q1 2025 24
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Leading productivity and sustainability partner with roots from 1873 North America 29% South America 13% Europe 13% Africa/ Middle East 16% Asia / Australia 29% Orders receivedOrders received 2018 2019 2020 2021 2022 2023 2024 12M Q225 39 400 39 492 36 579 45 648 53 222 58 899 62 213 63 564 Equipment Aftermarket Revenues in ~150 countries ~ 19 000 employees Adj. EBIT margin* 19.8% Equipment* 34% Aftermarket* 66% Aftermarket consists of ”Service” and ”Tools & Attachments” * 12 months 25Q2 2025
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Attractive niches OutperformanceOperational excellence Our strategy is our investment case Attractive niches Innovation Our success is based on sustainability and a strong corporate culture AftermarketAftermarket Operational excellence We focus on attractive niches with structural growth We accelerate the productivity and sustainability transformation in our industry We have a well-proven business model We create value for our stakeholders We have a high proportion of recurring business
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Financial goals at a glance Goals Description Q2 2025 2024 2015-2024 Growth Annual revenue growth of 8% over a business cycle. -8% 5% 9% Profitability (EBIT) Industry-best operating margin, with strong resilience over the cycle. 18.7% Adj. 19.7% 19.5% Adj. 19.8% 20.3% Adj. 20.8% Capital efficiency (ROCE) Improve capital efficiency and resilience. Investments and acquisitions shall create value. 20.2% 20.6% 25.0% Capital structure Have an efficient capital structure and have the flexibility to make selective acquisitions. The goal is to maintain an investment grade rating. Rating BBB+ Dividend policy Provide long-term stable and rising dividends to its shareholders. The dividend should correspond to 50% of net profit over the cycle. Dividend for 2024, paid in 2025: SEK 3.80 in two installments 50% pay out (2018-2024) 27Q2 2025
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2030 goals for people and planet • No work-related injuries • Balanced workforce and double the number of women in operational roles • Have all employees and business partners comply with our Code of Conduct and Responsible Sales Assessment Process implemented • Halve CO2e emissions in operations* • 90% renewable energy in own operations • Halve transport CO2e emissions • Offer a full range of emission-free products • Halve CO2e emissions from machines sold* • Require 50% reduction of CO2e emissions from relevant suppliers Base Year 2019 * Q1 2025
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Debt information and maturity profile 29 • Net debt/EBITDA: 0.82x • S&P rating: BBB+ Stable outlook • External financing: BSEK 17.4 • 85% long term financing ** • 48% green or sustainability linked • 4.2 years average tenor (long-term) • Average interest duration: 18 months • Average interest rate: 4.06% • 61% SEK financing 631 2 000 1 000 1 500 1 000 2 000 5 519 1 237 948 2 000 500 2025 2026 2027 2028 2029 4 000 2030 2031 2032 2033 2034 1 579 3 000 1 500 6 000 Loans in Group subs. Com papers, SEK Bonds, SEK RCF, unutilized * Green Bonds, SEK Bonds, EUR Bilateral loans sustainability linked, SEK Bilateral loans, SEK Bilateral loans sustainability linked, AUD Maturity profile (MSEK) Q2 2025 * RCF not included in calculations (unutilized) ** SEK bonds of 2 BSEK maturing in May 2026 are now reported as current portion of long-term debt
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BEV’s are just one part of reducing the operation’s footprint CO2 emissions and energy consumption • South Africa relies heavily on coal fired power plant, with high CO2e emissions (83%) • 725 g CO2e / kWh for South Africa • 23 g CO2e / kWh for Sweden • BEVs move emissions from Scope 1 to Scope 2 for end user • Decarbonization depends on energy mix
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CO2e balance since introduction of BEV fleet in South Africa Q3 2022 until Q1 2025 BEVs have consumed 3 178 MWh + 2 240 tCO2e in Scope 2 ICE would have consumed 1 127m³ of diesel - 3 653 tCO2e in Scope 1 Reduced vent rates from 575 m³/s to 480 m³/s reduced energy consumption with MWh 9 384 MWh - 6 803 tCO2e in Scope 2 Net carbon: - 8 216 tCO2e -10000 -8000 -6000 -4000 -2000 0 2000 4000 Net CO2e savings
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The profit bridge currency effect 32 Total operating profit currency effect in the bridge 1. Translation 2. Transaction 1a. Translation 1b. Internal profit Income statement effect converting subsidiaries to SEK Income statement effect from balance sheet from internal profit revaluation 2b. Revaluation Income statement effect from balance sheet accounts receivables and accounts payables revaluation 2a. Payment flows Income statement effect sales or purchases in foreign currencies What you see in our report What you get in our key figures The details you cannot see… Q2 2025 Impact Q225 MSEK -92 MSEK -154 MSEK -246
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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
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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 exchange- and interest-rates, political risks, competitor behavior, supply- and IT-disturbances.