Epiroc AB (publ)

Hello and a warm welcome to the Epiroc Q1 results presentation. My name is Karin Larsson. I'm head of IR and media here at Epiroc. And by my side, I have our CEO Helena Hedblom and our CFO Håkan Folin. As always, they will briefly present the results before we do a Q&A session. You all know the drill. Helena, please, the stage is yours. Thank you.

So thank you, Karin, and a warm welcome to all of you. So before I dive into the Q1 results, I would like to spend a few words on a highlight from earlier this month in April, when we announced our largest ever order contract. So the contract size is 350 million Australian dollars, about 2.2 billion krona over five years. And this is not only a large contract, this is the future of mining making its entry in full scale. So we will provide a fleet of more than 50 machines fully autonomous and electric to Fortescue in Australia. The machines we will provide are cable electric pit wipers 271E and battery electric Smartrock D65BE. And if you joined us at Mine Expo in September, you might have seen the machines. So once the fleet is fully operational, it will reduce CO2 emissions by 90,000 tonnes annually, while also boosting safety and productivity. So well done to everyone involved and thank you, Fortescue, for your trust in EPROC. So coming to Q1 and highlights from the quarter. So the mining demand was strong and equipment orders were very strong. We're up 29% organically. We won 600 million in large orders. And this can be compared to 400 million in Q1 last year and 820 million in Q4. So among these orders here in Q1, we had a large one, 280 million from Hindustan Sink for underground trucks and rigs. And we had a large battery fleet order as well, 100 million from Hudbay Minerals in Canada. On the infrastructure side, the demand was more mixed. As in previous quarter, we enjoyed good demand from customers engaged in civil engineering and tunnelling projects. We also won a major contract to support the Western Harbour tunnel project in Sydney in Australia. For attachments, construction customers are still hesitant. That said, we did have a positive sequential seasonality for attachment in the quarter. In the quarter, we increased both our revenues and our operating profit. Our revenues were up 10% to 15.5 billion, of which 3% organic. Our adjusted EBIT increased by 7% to 3.1 billion. And if we look at the demand picture in Q1, orders received were strong both year-on-year and sequentially. Compared to the previous year, they increased 17%, of which 10% organic. So this is the strongest organic growth in three years. Very pleasing to see, and it was driven by strong mining demand. Moving on to our strategic focus areas and first out is innovation. So during the first quarter, we spent quite some time to prepare for Bauma 2025, the world's largest construction trade show, which was held in Germany in the beginning of April. And at the fair we showcased many exciting products for use in deconstruction, recycling, quarrying and tunnelling. So we have a strong offering and a position in the construction niches where we operate. Following the acquisition of AARD mining equipment in 2023, we have successfully integrated a new product family of reliable, durable and high-performance underground utility vehicles into our portfolio. And we have a strong demand for these utility vehicles, which are included in our Terra series. And speaking of a strong offering, so let me bring you to the topic of automation. So do you remember our collaboration on automated mixed fleet in underground operations that were announced in 2021? So let me show you a short film about the achievements.

Never before have we integrated other OEMs into the same system and multiple tasks so we can complete every activity in our extraction level autonomously without putting people at risk. The team should be incredibly proud. The Katie Rees project started in 2008. Our ore body is 1200 meters to 1400 meters deep. Block Caving gave us a mining method that let us mine a large ore body at a relatively low cost. And if we can mine at the right cost and keep our team safe, we can be here for decades to come.