Epiroc AB (publ)

Ladies and gentlemen, welcome to the Epiroc Q3 results presentation. My name is Karin Larsson, and I'm head of IR here at Epiroc, and today we have a strong set of results to present. I'm proud to be here with our CEO, Helge Mahed Blom, and our CFO, Anders Lindén. As always, they will briefly present results before we go into the Q&A session, and we will do the Q&A over phone only. So thank you everyone for taking the time today. And Helena, please, the stage is yours.

Thank you so much, Karin. So please let me start by sharing some of the Q3 highlights. The customer activity remained high and customers continued to take investment decisions. So the demand was strong, as expected. We had several large orders in the quarter and five of them over 100 million. Acquisitions also contributed strongly to the order numbers. In total, this resulted in record orders of 12.2 billion SEK. Revenues and profit increased as well, and our adjusted operating margin was well above 23%. So all in all, a really solid financial result. The external supply chain challenges increased during the quarter, but that said, our organization is managing the situation well, so the financial impact on revenues and profits was limited. So well done to everyone involved in the supply chain. You do a great job. We do, however, expect that these challenges will remain also in the coming quarters, but we will do our best to support our customers also going forward, of course. Another highlight in the quarter is automation. Many of the orders that we won include our most advanced technical solutions. And these solutions increase productivity and lower the total cost of ownership for our customers. And in addition, they also contribute to improved safety and lower CO2 emissions. We also work hard to improve diversity and inclusion. I'm convinced that diverse teams are stronger teams and deliver better results. And we foster workforce with a diverse set of nationalities and experiences. And it is a top priority for us to attract more women to the group. And one of our goals is to double the number of women in operational roles by 2030. And in 2021, we have added more than 350 women employees to EPPROC. So this is a good development. Last but not least, we create options for the future by investing in R&D and by acquiring new businesses. And I will dig deeper into this in a few minutes. So when looking into the financials, you can see the record high orders received at 12.2 billion. And this corresponds to 24% organic growth. Acquisitions contributed with 7 percentage points to the growth, with half of it coming from booking of orders on hand of the acquired businesses. Given the high customer activity level I just mentioned, we achieved strong organic growth rates in all businesses. Equipment achieved 43% organic growth and orders were in absolute terms even stronger than in Q1 and Q2. The aftermarket was up double digits organically for both service and tools and attachments. And this is very strong, given that we had solid development in the aftermarket also last year, especially in service. Revenues and profit increased both year on year and sequentially. And the adjusted margin was 23.4%, up nearly 2 percentage points over last year, despite dilution from both acquisitions and currency. Also, the operating cash flow was better than last year and came in at a solid level, given the strong growth. And Anders will, as always, tell you more about the financials later. As you know, we take great pride in being a leading productivity and sustainability partner to our customers, and we invest more than ever in R&D to safeguard that we stay ahead. And therefore, it was great that we, in September, finally could showcase many of our sustainable innovations in person to our customers that joined the world's largest mining fair by an expo. And some of the products that we showcased were the Pit Wiper 291 blast hole surface drill rig, which is one of the most powerful drill rigs for surface applications. And of course, it can be configured to be fully autonomous. We also demonstrated the automatic bit changer that will change rotary bits without any human interactions with the drill string. And this is really a game changer in fully autonomous drilling. Also the Avatel, a mechanized development charging unit that minimize manual work and increase operator safety. And finally, another innovation worth highlighting is the Reman program. In this program, a customer returns a used component to us in exchange for a remanufactured one, and this instead of buying a new component. So this is a true lifecycle perspective. As you heard, many of the innovations that we launch are contributing to higher safety and a better environment. And it's clear that our innovation agenda goes hand in hand with our customers' sustainability agenda. And before moving on to acquisitions, maybe you would like to see what MindExpo looked like. So please let me share a short recap and show a short video.

Thank you.