Epiroc AB (publ)

Hello and a warm welcome to the Epiroc Q1 results presentation. My name is Karin Larsson, Head of IARN 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.

Thank you, Karin. EPROC delivered a strong start to the year with solid operational performance and record high orders received in the first quarter. Organically, orders increased 23% to 18.3 billion. This is a record which is meaningfully higher than both the previous year as well as previous peaks. The demand was supported by historically high mineral prices in segments to which we have a large exposure, such as copper and gold. The equipment orders increased 44% organically and the service orders increased 12% organically. We also noted double-digit growth in exploration and tools. The infrastructure demand improved somewhat, although geopolitical instability creates uncertainty. Revenues grew organically by 2% and the adjusted operating margin increased to 20%, supported by organic measures such as disciplined execution and cost-saving initiatives. As we had currency headwinds, tariffs and higher input costs for tungsten in the quarter, the improvement is particularly pleasing to see. Looking deeper into orders, in total orders increased 11% year on year. Currency was still a headwind and impacted negatively by 12%. The organic increase was 23% driven by strong demand from mining customers and was supported by several large mining equipment orders. The large orders amounted to 1.3 billion compared to roughly 300 million in the previous year. And please note, as from this quarter, we say that large orders are 150 million and above compared to 100 million previously. And the numbers presented on this slide are restated. Equipment growth was again very strong, and this time at 44% organically, despite tough comps of 29% organic in Q1 2025. Sequentially, compared to the previous quarter, group orders increased 17% organically, driven mainly by the high mining activity, but we also had a seasonal better demand from infrastructure customers. Our strong order intake shows that customers value our reliability, strong service, high parts availability and equipment that performs. So thank you to all 19,000 employees around the world for relentlessly delivering tangible value to our customers. Moving on to innovation. In the quarter, we noted that demand from autonomous surface drilling equipment was particularly strong. Link OA, our technical solution behind the world's largest fully autonomous mixed fleet mine, Roy Hill, was recognized as Engineering Product of the Year at the 2026 Digital Engineering Awards, further underlying EPROC's leadership in automation. Across our portfolio, innovation for improved safety and efficiency continues to support growth. In exploration, our new uphole brake improves safety in deeper and more technically demanding exploration drilling. And in surface drilling, the next generation PowerRock T25 delivers higher fuel efficiency, lower operating costs and simpler operation through an upgraded control system. And finally, in underground operations, customers have responded very positively to our MT66SE drive, the successor to the MT65, the world's highest payload underground truck. And compared with a conventional diesel truck in the same size class, it delivers up to 11% higher ramp speed, up to 7% lower fuel consumption and higher productivity through greater payload and more efficient cycles, all without any changes to the mine's infrastructure. So let me now show a short video from when we demonstrated its performance to customers in Australia.

It's excellent. It's really good to see it on the ground moving dirt.