Epiroc AB (publ)

Hello and a warm welcome to the Epiroc Q3 results presentation. My name is Karin Larsson, 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 know the drill. Helena, please, the stage is yours.

Thank you, Karin. And also from my side, a very warm welcome to all of you. So before we dive into the numbers, I want to begin with something that lies at the heart of everything we do, safety. The past few months have been a sad reminder that mining remains a dangerous industry. One incident that stands out is the groundfall at the Red Chris mine in British Columbia in Canada this July. Three workers were trapped 280 meters underground and within just 24 hours Epprock was called in to deploy our RCT tele-remote automation kit on a non-Epprock loader. And we did it. And the machine was then operated remotely, digging through collapsed ground toward the refugee station. So after more than 60 hours underground, all three miners were safely rescued. So this moment is a powerful testament that fast action, automation and collaboration can save lives. Because at the end of the day, the best thing that comes out of a mine is the miner. During the quarter, we celebrated several important milestones. Since I just shared an example around safety, let me highlight three more that underscore our leadership in this area. First, we reached a major breakthrough at Hancock Iron Ore Roy Hill Mine in Australia. So all 78 mining trucks, non-Epprock ones, have now been converted from manual operation to fully autonomous using Epprock's LinkOA solution. And this is a great achievement which really positions Epprock at the forefront of mixed fleet automation globally. My second highlight is our strategic partnership with Hindustan Zinc Limited, the world's largest integrated zinc producer, which awarded us with a large contract for a collision avoidance system in the quarter. All of their mines in India will in the future be equipped with our collision avoidance system. And as with most of our solutions, it is OEM-agnostic, designed to work seamlessly across any vehicle platform, and is a cost-effective way to significantly enhance safety across existing fleets. And thirdly, I would also like to mention the celebration of our Pit Viper rig turning 25 successful years with a full decade of autonomous drilling. And the rig has revolutionized surface drilling by combining power, safety and energy efficiency. With over 90 million meters drilled autonomously and significant emission reductions, the pit viper has set a new benchmark for sustainable and productive mining operations worldwide. So turning to the customer activity then in Q3, the demand in mining remained high, especially within exploration. And after a prolonged period of subdued demand for construction-related attachments, we're now seeing a small recovery in order intake as the destocking phase nears completion. On the financial side, our operating margin declined, primarily due to tariffs and cost relating to efficiency measures. That said, the actions we've taken, particularly within tools and attachments, are beginning to show positive results. And Håkan will elaborate on EBIT and margin development shortly. Finally, I'm also pleased to report that our operating cash flow increased by 38% in the quarter to 2.5 billion, supported by an improvement in working capital. Looking into the details on the orders, in Q3 in total, orders received decreased 2%, hampered by currency, which impacted with minus 9%. In total, our orders amounted to 15.1 billion and organic order growth of 7%, despite tough comparisons of plus 6% in the previous year. That reflects a high mining activity. We achieved the strongest order growth in equipment, tools and exploration. Large mining equipment orders, which are lumpy in nature, amounted to 600 million SEK. And it's encouraging also in this quarter to see that many of our equipment orders include our latest technologies, both in automation and electrification, leading to higher productivity, increased safety, reduced energy consumption and a lower total cost of ownership for our customers. And again, we now see a recovery in the order intake for attachments as the destocking phase is largely complete. And that is both in Western Europe as well as in the US. Sequentially, compared to the previous quarter, orders received were unchanged organically. So let me turn to innovation, where we continue to lead the way. And I will start with Powerbit X, a revolutionary drill bit fortified with diamond protection. At Remote Goldmine in Canada, Machine Rogers International has tested our diamond-coated Powerbit X with outstanding results. Bitlife increased from just 5 to 10 meters to over 700 meters, boosting productivity by 125% per shift. Monthly bit usage dropped from 70 to just 12. And with no need for regrinding, carbon emissions fell by 90% per drill meter. And as autonomous drilling becomes more and more important globally, the demand for high-performance drill bits, such as the PowerBit X, is essential to unlock new levels of productivity and sustainability. I would also like to give you some more information about our collaboration with Hancock Iron Ore Roy Hill Mine in Australia, because it truly is a unique achievement. All 78 haul trucks have now been converted to fully autonomous operation, creating the world's largest OEM-agnostic automated mine. The non-Eproc fleet is operating seamlessly under Eproc's automation system, and the real-time traffic management is handled remotely from operations center located 1,100 kilometers away in Perth. And to date, this autonomous fleet has safely moved over 250 million tons of material and traveled more than 6 million kilometers, which corresponds to going around the globe 150 times. The final phase of the project is on track for completion by year end and to deliver these high-end mixed fleet automation projects you need the highest connectivity quality and that we have managed with the help of Radlink, a fully owned connectivity provider. In Q3, we recognized 300 million in revenues from this project, and we expect recurring revenues going forward. And after years of development and learning, we are confident that this solution is both productive and safe, and we are now ready to scale to more mines. So let me share a video of our Link OA offering. Link OA

The future of autonomous haulage is here. LinkOA for Haulage is the OEM-agnostic automation solution designed to maximize efficiency, flexibility, and performance in mixed fleets. Automation shouldn't limit your fleet choices. LinkOA works with any haul truck, regardless of OEM, and is backed by retrofit experience across dozens of makes and models. It offers the flexibility to scale without locking mining operations into a single truck supplier, whether you're upgrading existing fleets at brownfield sites or deploying new trucks at greenfield operations. Beyond automating trucks, this technology creates new opportunities in mine design by enabling narrower roads, tighter switchbacks, and optimized intersection choreography. LinkAway helps unlock more aggressive and efficient layout, ultimately improving site productivity. LinkAway for haulage is optimized to meet demanding KPIs, maximizing truck availability, improving productivity, and reducing costs to support aggressive business cases for autonomy. Epiroc is committed to delivering high performance in real mining environments, even those that are less than perfect. Built for the toughest mining environments, LinkAway for Haulage performs reliably in extreme heat, sub-zero temperatures and rugged terrain, all while meeting prevailing safety standards. With high system availability and minimal unplanned downtime, it keeps your operation productive under pressure. With nearly two decades of mining automation, LinkAway for Haulage has driven millions of kilometers autonomously and hauled hundreds of millions of tons. It's a proven leader, delivering reliability and results at scale.