Epiroc AB (publ)

Hello and welcome to the Epiroc Q1 results presentation. My name is Karin Larsson, Head of IR and Media here at Epiroc. With me today, I have Helena Hedblom, CEO, and Håkan Folin, CFO. They will very soon and briefly present the results before we do the Q&A. But before we start, if you have not already signed up to our Capital Markets Day in Örebro in Sweden in June, please do. There are limited seats and we are rapidly approaching the full capacity. As we are piggybacking on a global underground customer event the very same week, you will get to see exactly what our customers get to see when it comes to our solutions within automation, electrification, and digitalization. I'm convinced that this will be a very exciting tour, and we hope that you all can join. Helena, please. Thank you so much.

And yes, a warm welcome everyone to join us in Örebro. I think it will be a fantastic event. So we've had a strong start to this year. The customer activity in the quarter remained high and we achieved a record high order intake of more than 15 billion. Acquisitions contributed strongly to the order intake and our organic order growth, excluding Russia, was 1%. We won several large equipment orders and service continued to perform well, supported by mid-life upgrades of customers' equipment. So a wide and attractive offering in combination with the excellent work by our 7,300 committed service technicians contributed to the strong development in service. Our revenues increased 25% to 13.9 billion USD with strong contribution from both organic and acquired growth. And operating profit, EBIT, increased 20% to more than 3 billion. The adjusted operating margin was 23%, supported by organic growth and currency, while acquisitions diluted the margin. Supply chain challenges, mainly on the outbound transport side, were still constrained in the quarter, impacting inventory and cash flow negatively and more will come on this later. Acquisitions are an important contribution to our growth and year to date we have closed three acquisitions with combined revenues of 2.4 billion. So also on this topic you will get more information within shortly. So we are clearly leading the way in autonomous mining. For example, did you know that our autonomous surface drills reached another milestone? They have now successfully drilled the equivalent length of more than one lap around the world. So we are more than happy to showcase our market-leading solutions within automation for both loading, haulage and drilling, both on surface as well as on underground. And one project that is attracting a lot of attention is our collaboration with Roy Hill, the iron ore mine in Australia. to create the world's largest single autonomous mine. And this project is so interesting that it gets its own slide today. So in the quarter, this project resulted in our largest ever automation order, 500 million SEC. And we are converting Royce Hill's mixed fleet of almost 100 mine trucks to driverless operation. And the operators in Perth will be monitoring the trucks from a safe distance, 1,100 kilometers away from the mine site. So the autonomous haul trucks will run 24-7, and none of the trucks are from EPROC. They are Caterpillar and Hitachi trucks. So this project will make Roy Hill the world's largest autonomous mine. And in addition to these mine trucks, we will also convert around 200 utility vehicles to driverless operation. Another highlight is that we are going to the moon. We have signed a long-term collaboration agreement with a global lunar resource development company, iSpace, to provide them with technology for its future moon missions. And this is about being on the forefront of technology. And more details on this will come later this year. And that is also why we're acquiring innovative companies, because they support us in being on the technological forefront which contributes to growth. As I said, year to date, we have closed three acquisitions with combined revenues of 2.4 billion. So with acquisition of CER, Epiroc expands its offering of essential consumables and related digital solutions. And Mernock Electronics strengthened our position as a world-leading provider of automation and safety solutions for mining operations. And then ARD mining equipment adds an offering of low-profile underground machines for mines with low mining heights. I also would like to highlight the launch of our Scoop Tram ST18SG, which is a green series, and it's the most powerful loader yet in EPROC's growing fleet of battery electric vehicles. And compared to using a diesel loader with similar capacity, the ScoopTram ST18SG eliminates 365 tons of CO2 equivalent emissions annually, which corresponds to 100 diesel cars. And of course, with midlife upgrades, the machine life can of course be prolonged as well. So the ScoopTram ST18SG also reduces the need for ventilation, which is a major cost item for underground mines. But as you know, Epiroc is not only about mining, it is also about construction. And we are committed to take the construction industry to the next level. So at the ConExpo 2023 exhibit in Las Vegas, we showcased a full range of our latest innovations to make the construction industry more sustainable, efficient, and environmentally friendly. Products shown included two surface drill rigs in the Smart Rock series, smart grouting systems, a down-the-hole hammer, a V-shaped drum cutter and new digital tools as well as related aftermarket solutions. So please enjoy this video that shows how we lead by innovation within construction and aggregates. Thank you.

Thank you. Thank you. Thank you.