Epiroc AB (publ)

Hello and a warm welcome to the EPIROC Q2 results presentation. My name is Karin Larsson, Head of Investor Relations and Media here at EPIROC and joining me today are our CEO Helena Hedblom and our CFO Håkan Folin. As this is a very busy reporting day in Sweden, we aim to keep this call shorter than usual and expect to wrap up already within around 45 minutes. And as always, we will have a Q&A session after Helena and Håkan have presented the results. You know the drill. Helena, please go ahead.

Thank you, Karin. So, we delivered a strong second quarter supported by continued high customer activity and strong demand in mining. Orders received increased 13% organically to 17.3 billion SEK. The organic equipment orders grew 30% and service orders increased 6%. Invoicing was, as anticipated, strong in the quarter and increased 11% organically to 16.7 billion. Our profitability improved further, up 17% year-on-year, translating into an EBIT margin of 19.9%. Adjusted, which is only the LTI program, the margin was 20.1%, compared to 19.7% last year. and the improvement was driven by efficiency measures implemented over recent quarters and high invoicing. Looking more into the details on the orders, we're up 13% both in total and organically to 17.3 billion and the growth was driven primarily by mining and our equipment orders increased organically by 30%. The large orders amounted to 720 million, and these are mainly brownfield and replacement orders. Exploration was one of the strongest growing businesses, and this is encouraging as exploration activity is an important indicator of long-term confidence in the mining industry and future project development. And the investment sentiment within infrastructure and construction projects has improved, which led to stable order development. So this is the ninth consecutive quarter in which we have achieved organic order growth, and I remain optimistic also on the pipeline onwards. Business cooking looks strong and there are many large tenders in which we are involved in. The tenders are mainly within copper and gold and within brownfield and replacement. We also continue to see encouraging adoption of our automation and digital solutions as customers increasingly integrate these technologies into their operations. Our relationships deepen and our position as a long-term productivity partner strengthens. So let me move on to innovation, an important driver of our long-term value creation. This is why customers choose us. And what is particularly encouraging is that our innovation agenda is very closely aligned with our customers' priorities. So in June, we welcomed around 150 customers from across the world to the EPROC World Expo, where we showcased how technology can help address some of the industry's most important challenges. Deeper mining, lower ore grades, increasing safety requirements and the need for higher productivity. A common theme across many of the solutions we presented was to increase safety. And the best way to increase safety is to remove people from dangerous environments. And we showed our customers that we continue to expand the boundaries of what can be done remotely and autonomously Thank you for your patience. We had some technical problems here in the studio and now we're back. So I would like to continue then on innovation. So electrification is another area where we continue to lead And during the EPROC World Expo, we showcased our growing battery electric offering, including the Mindtrak MT66S eDrive, as well as unique and appreciated charging and battery solutions. And finally, we continue also to focus on sustainable productivity, whether through circular solutions, smarter ground support, optimized mine design or advanced service offerings. And our ambition is to help customers produce more with fewer resources and a lower environmental footprint. The strong engagement level that we saw at EPROC World Expo is very encouraging. So please let me share a video from the event.

Epiroc World Expo is a convergence of mining knowledge and it's a convergence of technology and it's a place where we learn from our customers and hopefully our customers take something away from us.