Q4 2019 January 31, 2020 Per Lindberg, President and CEO Anders - - PowerPoint PPT Presentation

SLIDE 1

Interim report Q4 2019

January 31, 2020 Per Lindberg, President and CEO Anders Lindén, CFO

SLIDE 2

• Strong growth of our service business, but

negative development for equipment

• High interest for automation and information

management, and for battery-electric vehicles

• Three acquisitions
• Efficiency actions
• Financials

– Revenues increased 7% – Operating profit +10% – Reported operating margin 19.9% – Adjusted operating margin 21.0%

• Strong operating cash flow at MSEK 6 688
• Proposed dividend of SEK 2.40 (2.10) per share

Key highlights full-year 2019

2

Record revenues and profit in a strong 2019

28 663 27 102 31 364 38 285 40 849 18.1 16.8 18.9 19.3 19.9 19.4 17.8 19.4 20.3 21.0 5 10 15 20 25 30 35 40 45 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 2017 2015 2018 2016 2019 +9% Operating margin, % Revenues, MSEK Operating margin, %, adjusted

Revenues and operating margin

SLIDE 3

Key highlights Q4 2019

• Order intake at similar level as in Q3

– Equipment orders decreased year-on-year, but were stable sequentially – Solid service growth year-on-year

• Lower revenues
• Improved underlying margin
• Strong cash flow
• Continued focus on innovation
• Efficiency actions and adaptation of product

portfolio and production continued

3

Continued growth in service

SLIDE 4

19.1 18.6 20.0 18.1 18.4 18.4 19.7 20.5 19.7 21.3 19.0 19.6 19.7 19.3 20.2 18.6 19.6 20.2 21.0 20.4 20.3 21.7 21.3 20.7 10 20 30 40 50 2 000 4 000 6 000 8 000 10 000 12 000 1 468 Q1 2017 1 528 8 464 1 898 1 520 1 414 Q2 2018 Q2 2017 10 626 Q3 2018 Q3 2017 Q4 2017 7 411 1 515 Q1 2018 2 263 8 233 7 879 2 162 Q4 2018 1 930 Q1 2019 Q2 2019 1 927 Q3 2019 2 016 7 610 Q4 2019 9 843 9 651 10 558 9 785 10 158 10 280 1 810 Operating Profit, MSEK Operating margin, % Revenues, MSEK

• Adj. Operating margin, %

Key financials Q4 2019

• Order intake declined 2%, -7% organic
• Revenues declined 3%, -7% organic
• Operating profit at MSEK 2 016

– Items affecting comparability of MSEK -115 – Mainly restructuring costs and LTI – Positive contribution from currency

• Margin at 19.6% (20.5)

– Adjusted for items affecting comparability at 20.7% – Margin diluted by lower revenues and acquisitions

• Operating cash flow improved to MSEK 2 827

(2 242)

4

8 800 9 000 9 400 9 800 9 600 9 200 Q4 2018 Organic

• 7%

Currency Q4 2019 +2% Structure & Other 9 468 9 276 +3%

• 2%

Orders received, MSEK and change, % Revenues, operating profit and margin

SLIDE 5

Leading the way in innovation

• Continued focus on innovations
• Orders received to digitalize Pocubre’s mining operations
• Partnership with Orica to develop a semi-automated explosives

delivery system

• Pit Viper 270 XC series with advanced rig control system
• PowerROC D60 with Tier 4 engine
• New range of down-the-hole hammers
• No. of connected machines increasing

Q4 2019

Epiroc Pit Viper 270 XC series with several automation features.

SLIDE 6

• Workforce reduced by 521 in the quarter
• Efficiency improvements initiated and will

continue in the coming quarters and expected to give visible effects in the first half of 2020

• Rock drilling tools factory in China closed and

facility in Sweden sold

• Announcement in January 2020 to consolidate

dimension stone equipment manufacturing

• Safety and well-being – work related injuries

lower for full-year 2019

• Supply chain program progressing with gradual

improvements

• Reduction of CO2 emissions from transport

Q4 2019

Continuous strive to improve operational excellence

SLIDE 7

High proportion of recurring business

Per segment Q4 2019

36% 39% 25%

Revenues in the quarter

Equipment Service Tools & Attachments

64%

Aftermarket (59)

7

2 306 2 517 3 761 4 104 3 355 2 606 Q4 2018 Q4 2019 Service Equipment Tools & Attachments 9 468 9 276

• 2% / -7%

Order intake, MSEK and growth, % (Total growth / Organic growth)

• 22% / -22%

+9% / +6% +9% / -4%

SLIDE 8

• Orders received -6%, -7% organic
• Service orders up 6% organic

– High customer activity

• Equipment orders down 22% organic

– Investment decisions postponed

• Revenues -4%, -6% organic
• Operating profit at MSEK 1 853, including costs

related to efficiency improvements of MSEK -28

• Margin increased to 23.9% (23.2)

– Supported by currency and mix – Negatively impacted by lower revenue volumes and restructuring costs – Sequentially, negative currency and mix

8

Segment: Equipment & Service

7 200 6 600 6 800 7 000 7 400 Q4 2018 7 116 6 710 Structure & Other Q4 2019 Organic

• 7%

Currency

• 1%

+2%

• 6%

Orders received, MSEK and change, %

6 200 6 323 6 263 5 788 7 442 7 947 7 190 7 116 7 248 7 677 6 874 6 710 5 220 5 495 5 406 7 325 7 178 8 094 7 115 7 702 7 334 7 740 5 10 15 20 25 30 35 40 2 000 4 000 6 000 8 000 10 000 23.0 Q4 2017 22.9 Q1 2018 23.9 Q2 2018 24.6 Q3 2018 22.3 23.2 Q4 2018 24.2 Q1 2019 25.6 Q2 2019 Q3 2019 Q4 2019 23.9 Q1 2017 23.3 22.6 6 262 5 943 Q3 2017 Q2 2017 26.3 Operating margin, % Order intake, MSEK Revenues, MSEK

Orders received, revenues and operating margin

SLIDE 9

• Orders received up 9%, -4% organic

– Rock drilling tools orders negatively impacted by exit

• f handheld rock drilling tools and optimization of

product offering – Hydraulic attachment tools decreased organically

• Revenues up 3%, -10% organic
• Margin of 11.8% (13.3)

– Costs related to efficiency improvements MSEK -17 – Adjusted operating margin 12.5%, supported by currency, but diluted by acquisitions – One-time costs related to acquisitions of MSEK -18

9

Segment: Tools & Attachments

2 400 2 200 2 500 2 300 2 600 2 700 Q4 2018

• 4%

Organic

+3%

Currency Structure & Other Q4 2019 2 306 2 517

+10%

+9% 2 341 2 270 2 239 2 197 2 550 2 470 2 285 2 306 2 760 2 826 2 665 2 517 2 161 2 297 2 141 2 245 2 452 2 382 2 440 2 605 2 926 2 765 2 503 5 10 15 20 25 30 35 500 1 000 1 500 2 000 2 500 3 000 3 500 14.8 14.8 Q2 2017 Q4 2019 14.3 Q2 2019 Q1 2017 14.3 13.0 13.0 Q3 2017 10.2 10.2 Q4 2017 Q2 2018 12.8 12.8 12.2 13.3 Q3 2018 2 139 Q3 2019 13.3 Q4 2018 14.2 Q1 2019 Q1 2018 14.6 5.7 12.5 11.8 12.4 12.4 13.6 13.6 14.2 14.6

• Adj. operating margin, %

Operating margin, % Order intake, MSEK Revenues, MSEK

Orders received, revenues and operating margin Orders received, MSEK and change, %

SLIDE 10

Financials

SLIDE 11

Profit impacted by items affecting comparability

Q4 2019

Operating profit and margin

11

* Q1 2017-Q4 2018 includes costs related to the split from Atlas Copco. * Q1 2017-Q4 2019 includes change in provision for long-term incentive plans. * Q4 2019 includes items affecting comparability of MSEK -115, including change in provision for long-term incentive plans of MSEK -42.

1 414 1 468 1 520 1 528 1 515 1 810 1 898 2 162 1 930 2 263 1 927 2 016 181 233 19.1 18.6 20.0 18.1 18.4 18.4 19.7 20.5 19.7 21.3 19.0 19.6 19.7 19.3 20.2 18.6 19.6 20.2 21.0 20.4 20.3 21.7 21.3 20.7 500 9 1 000 3 3 000 2 500 1 500 2 000 6 21 12 15 3 500 4 000 18 24 Q3 2018 1 991 59 2 160 15 45 115 2 024 1 578 1 521 Q4 2019 53 Q1 2017 1 989 Q2 2017 Q3 2017 50 Q3 2019 Q4 2017 95 Q1 2018 Q2 2018 126

• 8

Q4 2018 Q1 2019 39 Q2 2019 1 535 1 610 2 154 2 302 2 131 1 459 Operating margin, % Operating margin, adj., %* Items affecting comparability*, MSEK Operating profit, MSEK

SLIDE 12

Epiroc Group – Profit bridge

Looking into the numbers

12

2 200 1 900 2 000 2 100 Currency Q4 2018

• 149
• 1.8 pp

Structure and other +73 2 162 LTI Organic 2 016 Q4 2019 Items affecting comparability, excl. LTI +42

• 172
• 0.3 pp

+175 +1.2 pp 2 131 Adjusted operarting profit

• 1%

Margin: 20.5 % Margin: 19.6%

• Adj. margin: 20.7 %

“Structure and other” includes operating profit/loss from acquisitions and contract manufacturing MSEK -15, including a one-time item of MSEK –18, costs of MSEK -45 related to efficiency improvements, costs of MSEK -28 related to the agreement with the departing President and CEO, split costs of MSEK +48 = -11-(-59), and change in provision for long-term incentive programs MSEK -109 = -42-(+67). “Items affecting comparability” includes change in provision for long-term incentive programs MSEK -42 , costs of MSEK -45 related to efficiency improvements, and costs of MSEK -28 related to the agreement with the departing President and CEO.

SLIDE 13

13

Equipment & Service – Profit bridge

28 1 800 1 900 1 700

• 139
• 0.4 pp

Q4 2018 1 876 Adjusted

• perating profit

Items affecting comparability 1 853 1 881 Q4 2019

• 29
• 0.1 pp

+145 +1.2 pp Currency Structure and other Organic 0%

Margin: 23.2% Margin: 23.9%

Looking into the numbers

• Adj. margin: 24.3%

SLIDE 14

14

Tools & Attachments – Profit bridge

Looking into the numbers

17 300 270 330 Organic Q4 2018

• 30
• 2.9 pp

Q4 2019 Items affecting comparability Adjusted

• perating profit

312 Structure and other 324 Currency 35 +1.2 pp

• 34

+0.2 pp 295

• 4%

Margin: 13.3% Margin: 11.8%

• Adj. margin: 12.5%

Operating profit including a one-time item of MSEK –18 related to acquisitions.

SLIDE 15

• Lower comparable costs

– Acquisitions and currency reason for the increase year-on-year – Expenses adjusted for change in provision for LTI and items affecting comparability

• Net financial items were MSEK -94 (-46)

– Interest net was MSEK -36 (-37)

• Tax expense MSEK -439 (-493)

– Effective tax rate 22.5% (23.3) – Guidance: below 25%

Q4 2019

Administration, marketing and R&D expenses

15

Costs, net financials and tax

1 239 1 277 1 169 1 348 1 386 1 569 1 482 1 637 1 663 1 745 1 671 1 708 16.7 16.2 15.4 15.9 16.8 15.9 15.4 15.5 17.0 16.4 16.5 16.6 5 10 15 20 25 30 500 1 000 1 500 2 000 Q1 2017 Q4 2018 Q4 2017 Q2 2017 Q2 2018 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q2 2019 Q4 2019 Q3 2019 Expenses in % of revenues A, M and R&D expenses, adj. for change in LTI provisions and restructuring, MSEK

SLIDE 16

Q4 2019

• Net debt was MSEK 483 (1 208)

– Post-employment benefits MSEK 596 (283)

• IFRS 16 increased net debt by MSEK 1 956
• Net debt/EBITDA ratio at 0.05 (0.14)
• Net debt/equity ratio was 1.2% (6.4)
• Proposed dividend for 2019, SEK 2.40

– To be paid in two instalments

16

Capital structure

Net debt and Net debt/EBITDA

2 550 3 027 3 146 1 208 1 659 2 092 404 483 1 982 2 125 2 012 0.35 0.40 0.39 0.39 0.43

• 0.2
• 0.1

0.0 0.1 0.2 0.3 0.4 0.5

• 2 000
• 1 000

1 000 2 000 3 000 4 000 5 000 6 000 Q2 2018 0.14 Q1 2018 Q4 2018 Q3 2018 Q3 2019 0.24 0.05 3 641 Q1 2019 Q2 2019

• 1 956

Q4 2019 2 416 4 217 Net debt/EBITDA ratio Net debt, incl. IFRS 16, end of period, MSEK Net debt, excl. IFRS 16, end of period, MSEK

* Numbers for 2018 not restated for IFRS 16.

SLIDE 17

Q4 2019

• Net working capital up 2%

– For comparable units and currency adjusted, net working capital decreased 6% – A reduction in both trade receivables and inventories – Trade payables and advance payments were also lower, which partly offset the improvement year-on- year

• ROCE at 27.6% (32.0)

– IFRS 16 impact 1.4 percentage points – Impacted by cash and acquisitions

17

Capital efficiency

Capital employed and ROCE Net working capital

9 991 12 158 14 062 12 897 13 153 31.9 31.8 34.4 31.8 34.4 10 20 30 40 5 000 10 000 15 000 20 000 2018 2019 2017 Q4 2018 Q4 2019

• Avg. NWC/revenues, %

Avg.NWC, MSEK End of period, NWC, MSEK

21 674 23 086 29 518 25 927 31 838 27.4 32.0 27.6 32.0 27.6 5 10 15 20 25 30 35 10 000 20 000 30 000 40 000 50 000 2017 2018 2019 Q4 2018 Q4 2019

ROCE, 12m, %

• Avg. capital employed, MSEK

End of period, capital employed, MSEK

SLIDE 18

MSEK Q4 2019 Q4 2018 Operating profit +2 016 +2 162 Depreciation, amortization and impairment +482 +350 Capital gain/loss and other non-cash items

• 28
• 18

+2 470 +2 431 Net financial items received/paid

• 25
• 24

Taxes paid

• 257
• 326

Change in working capital +1 062 +415 Investments, incl. rental equipment*

• 302
• 308

Pension funding and other**

• 121
• 68

Operating cash flow +2 827 +2 242 Acquisitions and divestments +10

• 64

Operating cash flow

Q4 2019

18

* Investments include rental investments, net, other PPE, net, and intangible assets, net. ** Other includes adjustments for currency hedges of loans and proceeds to/from other financial assets, adjusted for divestment of Payment Solutions credit portfolios.

1 111 1 313 1 242 944 666 199 777 2 242 472 1 506 1 883 2 827 1 067 1 104 1 081 1 321 1 412 1 623 1 374 1 680 1 511 500 1 000 1 500 2 000 2 500 3 000 Q1 2018 Q4 2018 1 341 Q2 2018 Q1 2019 Q3 2018 Q2 2019 Q3 2019 Q4 2019 Q1 2017 Q2 2017 Q3 2017 Q4 2017 1 049 1 078 Operating cash flow, MSEK Net proft, MSEK

Operating cash flow and Net profit

SLIDE 19

Summary and

• utlook

SLIDE 20

Key highlights Q4 2019

• Order intake at similar level as in Q3

– Equipment orders decreased year-on-year, but were stable sequentially – Solid service growth year-on-year

• Lower revenues
• Improved underlying margin
• Strong cash flow
• Continued focus on innovation
• Efficiency actions and adaptation of product

portfolio and production continued

• Helena Hedblom, new CEO from March 1

20

Continued growth in service

SLIDE 21

Demand expectations

“It is clear that our customers remain cautious in making investment

• decisions. In the near-term we expect that demand will remain largely at

the level seen in the fourth quarter.”

SLIDE 22

Q&A

SLIDE 23

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

• utcome 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.

SLIDE 24

Appendix

SLIDE 25

Geographical overview

25

North America 22%

Orders received excluding Common Group functions.

2018 34% 66% 36% 8 814 64% 2017 69% 31% 2019 7 481 8 628

Orders received, MSEK and % of Group orders

South America 14%

86% 80% 2017 2019 20% 82% 2018 18% 14% 4 731 6 225 5 396 68% 32% 2018 2017 70% 30% 69% 31% 2019 8 337 9 298 9 005 4 584 5 468 70% 63% 30% 37% 2018 2017 72% 28% 2019 5 446

Europe 23% Africa/ Middle East 14%

81% 83% 19% 18% 2017 2018 82% 17% 2019 8 488 9 523 10 780

Asia/ Australia 27% Equipment & Service Tools & Attachments % of Group orders

SLIDE 26

Income statement

Q4 2019

26

2017 2018 2019 2018 2019 MSEK Full year Full year Full year Q4 Q4 Revenues 31 364 38 285 40 849 10 558 10 280 Cost of sales

• 20 101
• 24 317
• 25 547
• 6 721
• 6 377

Gross profit 11 263 13 968 15 302 3 837 3 903 Gross margin, % 35.9% 36.5% 37.5% 36.3% 38.0% Marketing expenses

• 2 280
• 2 574
• 2 797
• 668
• 690

Administrative expenses

• 2 121
• 2 589
• 3 261
• 621
• 848

Research and development expenses

• 795
• 977
• 1 035
• 281
• 262

Other operating income and expenses

• 136
• 443
• 73
• 105
• 87

Operating profit 5 930 7 385 8 136 2 162 2 016 Operating profit margin, % 18.9% 19.3% 19.9% 20.5% 19.6% Net financial items

• 137
• 184
• 293
• 46
• 94
• f which interest net
• 132
• 137
• 186
• 37
• 36

Profit before tax 5 793 7 201 7 843 2 116 1 922 Proft margin, % 18.5% 18.8% 19.2% 20.0% 18.7% Income tax expense

• 1 495
• 1 764
• 1 959
• 493
• 433

Tax rate, %

• 25.8%
• 24.5%
• 25.0%
• 23.3%
• 22.5%

Profit for the period 4 298 5 437 5 884 1 623 1 489 Items affecting comparability in operating profit

• 394
• 446

8

• 115

Equipment & Service

• 28
• 28

Tools & Attachments

• 196
• 17

Corporate items

• 394
• 222

8

• 70

Adjusted operating profit 7 779 8 582 2 154 2 131

• Adj. Operating profit margin

20.3% 21.0% 20.4% 20.7%

SLIDE 27

2017 2018 2019 2017 2018 2019 MSEK

• Dec. 31
• Dec. 31
• Dec. 31

% of BS MSEK

• Dec. 31
• Dec. 31
• Dec. 31

% of BS Intangible assets 3 121 3 620 4 226 10% Share capital 21 500 500 1% Rental equipment 1 215 1 233 1 213 3% Retained earnings 12 020 18 297 22 261 54% Other property, plant and equipment 2 271 2 473 4 613 11% Equity attributable to owners of the parent 12 041 18 797 22 761 55% Investments in associates and joint ventures 94 208 201 0% Non-contolling interest 6 50 52 0% Financial assets and other receivables 1 101 1 119 1 007 2% Total equity 12 047 18 847 22 813 56% Deferred tax assets 425 543 630 2% Interest bearing liabilities 2 250 5 095 7 724 19% Total non-current assets 8 227 9 196 11 890 29% Post-employment benefits 181 283 596 1% Inventories 8 440 10 516 10 508 26% Other liabilities and provisions 289 412 423 1% Trade receivables 6 271 8 005 7 287 18% Total non-current liabilities 2 720 5 790 8 743 21% Other receivables 1 362 1 289 1 597 4% Interest bearing liabilities 4 808 1 702 705 2% Income tax receivables 287 333 353 1% Trade payables 3 966 4 711 4 050 10% Financial assets 1 152 944 862 2% Income tax liabilities 436 605 507 1% Cash and cash equivalents 1 808 5 872 8 540 21% Other liabilities and provisions 3 570 4 500 4 219 10% Total current assets 19 320 26 959 29 147 71% Total current liabilities 12 780 11 518 9 481 23% Total assets 27 547 36 155 41 037 100% Total equities and liabilities 27 547 36 155 41 037 100%

Balance sheet

Q4 2019

27

SLIDE 28

2017 2018 2019 2018 2019 MSEK Full year Full year Full year Q4 Q4 Cash flow from operating activities Operating profit 5 930 7 385 8 136 2 162 2 016 Depreciation, amortization and impairment 1 254 1 369 1 978 350 482 Capital gain/loss and other non-cash items

• 134

101

• 252
• 81
• 28

Net financial items received/paid

• 344
• 483
• 410
• 24
• 25

Taxes paid

• 666
• 1 747
• 2 157
• 326
• 257

Pension funding and payment of pension to employees

• 90
• 52
• 61

4

• 18

Change in working capital

• 403
• 1 875

337 415 1 062 Increase in rental equipment

• 793
• 896
• 915
• 238
• 189

Sale of rental equipment 422 522 572 225 134 Net cash from operating activities 5 176 4 324 7 228 2 487 3 177 Cash flows from investing activities Investments in other property, plant and equipment

• 424
• 577
• 486
• 151
• 100

Sale of other property, plant and equipment 70 26 60 2 17 Investments in intangible assets

• 289
• 459
• 537
• 146
• 179

Sale of intangible assets

• 16
• 15

Acquisition of subsidiaries

• 137
• 546
• 1 137
• 64
• 3

Divestment of subsidiaries

• 153
• 13

Proceeds to/from other financial assets, net 6 323 219 276 118 244 Net cash from investing activities 5 543

• 1 337
• 1 655
• 241

7 Cash flows from financing activities Dividends paid

• 2 523
• 1 263

Dividends paid to non-controlling interest

• 8
• Dividends paid to Atlas Copco
• 5 178
• Acquisition of non-controlling interest

6

• Sale/ Repurchase of own shares
• 1 307

340

• 207

45 Change in interest-bearing liabilities

• 889

2 367

• 820
• 110
• 181

Net cash from financing activities

• 6 061

1 060

• 3 011
• 317
• 1 399

Net cash flow for the period 4 658 4 047 2 562 1 929 1 785 Cash and cash equivalents, beginning of the period 481 1 808 1 808 3 949 6 814 Exchange differences in cash and cash equivalents

• 39

17 106

• 6
• 59

Other cash flow from transactions with shareholders

• 3 292
• Cash and cash equivalents, end of the period

1 808 5 872 4 476 5 872 8 540

Cash flow

Q4 2019

28

2017 2018 2019 2018 2019 MSEK Full year Full year Full year Q4 Q4 Operating cash flow Net cash flow from operating activities 5 176 4 324 7 228 2 487 3 177 Net cash from investing activities 5 543

• 1 337
• 1 655
• 241

7 Acquisition and divestments of subsidiaries 137 546 984 64

• 10

Other adjustments

• 6 246

351 131

• 68
• 347

Operating cash flow 4 610 3 884 6 688 2 242 2 827

SLIDE 29

Key ratios

Q4 2019

29

2017 2018 2019 MSEK Full year Full year Full year Basic earnings per share, SEK 3.55 4.50 4.89 Diluted earnings per share, SEK

• 4.49

4.89 Basic number of shares outstanding, millions 1 212 1 206 1 201 Diluted number of shares outstanding, millions

• 1 206

1 202 Equity per share, period end, SEK 9.94 15.63 19.00 Operating cash flow per share, SEK 3.80 3.22 5.57 EBITDA, MSEK 7 183 8 753 10 049 EBITDA margin, % 22.9% 22.9% 24.6% Adjusted EBIT, MSEK 6 093 7 779 8 582 Adjusted EBIT margin, % 19.4% 20.3% 21.0% Net working capital, end of period, MSEK 10 173 12 897 13 153 Average net working capital 9 991 12 158 14 062 Average net working capital/revenues, % 31.9 31.8 34.4 Average capital employed, MSEK 21 674 23 086 29 518 Return on capital employed, 12 month % 27.4 32.0 27.6 Capital employed turnover ratio 1.4 1.7 1.4 Return on equity, 12 month % 29.1 33.2 28.4 Net debt, MSEK 5 424 1 208 483 Net debt/EBITDA ratio 0.75 0.14 0.05 Debt/equity ratio, period end, % 45.0 6.4 2.1 Equity/assets ratio, period end, % 43.7 52.1 55.6 Number of workrelated accidents per million working hours 4.3 3.4 2.7 Sick leave, % 2.2 2.2 2.1 MWh energy from operations/Cost of sales (MSEK); 12M 8.5 7.6 6.8 Transport CO2 (tonnes)/Cost of sales (MSEK); 12M 6.2 5.6 4.5 Number of employees, period end 12 948 13 847 14 268 Additional workforce, period end 1 397 1 610 1 366

SLIDE 30

• 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.

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