Quarterly Report • Jan 31, 2023
Quarterly Report
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Epiroc AB Interim Report January – December 2022 1 (28)
January 31, 2023
| Epiroc interim report Q4 3 | |
|---|---|
| Financial overview 3 | |
| CEO comments 4 | |
| Orders and revenues 5 | |
| Profits and returns 6 | |
| Dividend 6 | |
| Balance sheet 7 | |
| Cash flow 7 | |
| Leading productivity and sustainability partner 8 | |
| Equipment & Service 9 | |
| Tools & Attachments 11 | |
| Sustainability: People & Planet 13 | |
| Full year 2022 in summary 14 | |
| Other information 15 | |
| Key risks 15 | |
| Signature of the President 15 | |
| Financial Statements 16 | |
| Condensed consolidated income statement 16 | |
| Condensed consolidated statement of comprehensive income 16 | |
| Condensed consolidated balance sheet 17 | |
| Condensed consolidated statement of changes in equity 18 | |
| Condensed consolidated statement of cash flows 19 | |
| Condensed parent company income statement 20 | |
| Condensed parent company balance sheet 20 | |
| Condensed segments quarterly 21 | |
| Geographical distribution of orders received 22 | |
| Geographical distribution of revenues 22 | |
| Group notes 23 | |
| Note 1: Accounting principles 23 | |
| Note 2: Acquisitions and divestments 23 | |
| Note 3: Fair value of derivatives and borrowings 25 | |
| Note 4: Share buybacks and divestments 25 | |
| Note 5: Transactions with related parties 25 | |
| Key figures 26 | |
| Epiroc in brief 27 | |
| About this report 27 | |
| Further information 28 | |
| Financial calendar 28 |
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| MSEK | Q4 | Q4 | Δ,% | FY | FY | Δ,% |
| Orders received | 13 705 | 11 643 | 18 | 53 222 | 45 648 | 17 |
| Revenues | 13 936 | 11 173 | 25 | 49 694 | 39 645 | 25 |
| Operating profit | 3 235 | 2 594 | 25 | 11 147 | 8 995 | 24 |
| Operating margin, % | 23.2 | 23.2 | 22.4 | 22.7 | ||
| Profit before tax | 3 046 | 2 567 | 19 | 10 778 | 8 964 | 20 |
| Profit margin, % | 21.9 | 23.0 | 21.7 | 22.6 | ||
| Profit for the period | 2 395 | 2 057 | 16 | 8 411 | 7 069 | 19 |
| Operating cash flow | 1 519 | 2 415 | -37 | 5 662 | 6 867 | -18 |
| Basic earnings per share, SEK | 1.98 | 1.70 | 16 | 6.96 | 5.85 | 19 |
| Diluted earnings per share, SEK | 1.98 | 1.70 | 16 | 6.95 | 5.84 | 19 |
| Return on capital employed, %, 12 months | 28.0 | 26.1 | 28.0 | 26.1 | ||
| Net debt/EBITDA, ratio | 0.28 | -0.12 | 0.28 | -0.12 |
** For further information, see page 6.
*** For further information, see pages 23-24.
Throughout 2022, Epiroc managed significant supply-chain challenges, including disruptions resulting from the war in Ukraine. In March we stopped deliveries into Russia, which at the time was our fourth largest market.
Customer activity remained high in 2022. We won many large equipment orders and we had strong development in the aftermarket.
We launched many ground-breaking innovations and made several acquisitions that help customers increase safety and productivity, and reduce emissions. Demand is continuously increasing for our electrification and automation solutions, and we strengthened our position as a market leader in these areas.
The organization executed well on the strategy and we delivered profitable growth. All in all, it was a record year for Epiroc.
The demand remained high in the fourth quarter. That said, large equipment orders are often lumpy and we did not receive as many large orders as in previous quarters. Service continued to grow well, supported by high customer activity. The order intake increased 18% to MSEK 13 705 (11 643).
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
The period of strong order growth, easing supplychain challenges and a good output level from our production sites led to record-high revenues. Organically, our revenues increased 8% to MSEK 13 936.
The adjusted operating profit increased 29% to MSEK 3 302 (2 554). The adjusted operating margin improved to 23.7% (22.9), supported by organic growth.
Following a period of strong equipment growth, with lead times of around 9-12 months and extended freight times, the quarter ended with a higher level of working capital. This in turn impacted the operating cash flow negatively and it amounted to MSEK 1 519 (2 415).
To continue to drive the industry's ongoing productivity and sustainability transformation, we are investing more than ever in R&D; MSEK 1 438 (1 172) for the full year. This is resulting in exciting new products and solutions. The acquired companies serve the same purpose, to provide customers with the best solutions available today and in the future.
Do you remember our collaboration with Roy Hill in Australia in creating the world's largest autonomous mine? In January, we announced that Epiroc will continue to support Roy Hill as they enter the final stage and convert their mixed fleet of 96 haul trucks to driverless operation. After a two-year testing phase, the solution Epiroc has developed in collaboration with ASI Mining has proved to be more productive and safe than conventional solutions.
Another highlight is that we in joint collaboration with Agnico Eagle Mines and Orica have successfully commenced live blasting using Avatel at the Kittilä mine in Finland. Avatel is the world's first semiautomated charging system for underground use. It is a game changer as safety is significantly improved during the charging cycle.
As we enter 2023, Epiroc stands stronger than ever. Our employees are our greatest asset and I am proud of the hard work and all achievements. We are committed to transform the industry and create value for all our stakeholders.
Helena Hedblom President and CEO
| 2022 | 2021 | ||
|---|---|---|---|
| MSEK | Q4 | Q4 | Δ,% |
| Orders received | 13 705 | 11 643 | 18 |
| Revenues | 13 936 | 11 173 | 25 |
| Operating profit | 3 235 | 2 594 | 25 |
| Operating margin, % | 23.2 | 23.2 |
Financial overview
Orders received increased to MSEK 13 705 (11 643), corresponding to an organic decrease of -4%. Excluding Russia, the organic order growth was 3%. Currency and acquisitions contributed with 11%, respectively. The orders received also included orders on hand from acquired companies. These had a positive impact of approximately 9%.
Compared to the previous year, orders received in local currency increased with double digits in Asia/Australia, South America and Africa/Middle East. It decreased with single digit in North America and decreased significantly in Europe, negatively impacted by Russia. Excluding Russia, Europe had a slightly positive order growth.
Mining customers represented 79% (76) of orders received in the quarter and infrastructure customers 21% (24).
Sequentially, compared to the previous quarter, orders received increased 4% organically.
Revenues increased 25% to MSEK 13 936 (11 173), corresponding to an organic growth of 8%. Currency and acquisitions impacted revenues positively with 13% and 4%, respectively. The book-to-bill ratio was 98% (104).
The aftermarket represented 65% (66) of revenues in the quarter.
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| Q4 2021 | 11 643 | 11 173 |
| Organic | -4 | 8 |
| Currency | 11 | 13 |
| Structure/other | 11 | 4 |
| Total | 18 | 25 |
| Q4 2022 | 13 705 | 13 936 |
Adjusted operating profit and margin
24 537 27 043 27 914 30 681 37 208 26.1 27.7 28.1 27.9 28.0 35 329 38 250 38 294 42 560 44 534 Q421 Q122 Q222 Q322 Q422 Capital employed and return on capital employed Capital employed, cash, MSEK, period end
Capital employed, excl. cash, MSEK, period end Return on capital employed, %, 12 months
Dividend and payout ratio
| Profit bridge | Operating profit | |
|---|---|---|
| MSEK,Δ | Margin,Δ,pp | |
| Q4 2021 | 2 594 | 23.2 |
| Organic | 545 | 2.5 |
| Currency | 217 | -0.8 |
| Structure/other* | -121 | -1.7 |
| Total | 641 | |
| Q4 2022 | 3 235 | 23.2 |
* Includes operating profit/loss from acquisitions and divestments and items affecting comparability (incl. change in provision for share-based long-term incentive programs).
Operating profit increased 25% to MSEK 3 235 (2 594). Items affecting comparability was MSEK -67 (40), including a change in provision for the share-based long-term incentive programs of MSEK -67 (-127). Previous year also included a positive revaluation effect of the shares held prior to the acquisition of the remaining shares of Mobilaris MCE of MSEK 167.
The operating margin was 23.2% (23.2). The adjusted operating margin, i.e. excluding items affecting comparability, was 23.7% (22.9). It was supported by organic growth but diluted by acquisitions and currency.
Net financial items amounted to MSEK -189 (-27). Previous year included a positive impact from exchange rate differences. The net interest was MSEK -67 (-25).
Profit before tax was MSEK 3 046 (2 567). Income tax expense amounted to MSEK -651 (-510), corresponding to an effective tax rate of 21.4% (19.9).
Profit for the period totaled MSEK 2 395 (2 057). Basic earnings per share were SEK 1.98 (1.70).
Return on capital employed was 28.0% (26.1) and the return on equity was 28.4% (29.5).
The Board of Directors proposes to the Annual General Meeting an ordinary dividend to shareholders of SEK 3.40 (3.00) per share, equal to MSEK 4 099 (3 619). The dividend is proposed to be paid in two equal installments with record dates May 25 and October 24, 2023.
Compared to the previous year, net working capital increased 52% to MSEK 18 564 (12 186). Excluding the effect of acquisitions and currency, the net working capital increased 33%. The increase is mainly explained by growth in combination with challenges in the supply chain. The average net working capital in relation to revenues in the last 12 months was 31.3% (29.0).
Epiroc ended the quarter with a cash and cash equivalents position of MSEK 7 326 (10 792) and a net debt position of MSEK 3 691 (-1 304). The change is mainly explained by acquisitions and dividend. The net debt/EBITDA ratio was 0.28 (-0.12).
Operating cash flow was MSEK 1 519 (2 415). It was supported by higher operating profit, but negatively impacted from change in working capital of MSEK -1 001 (247), mainly inventory and receivables, as well as higher taxes paid.
Four acquisitions were completed in the quarter leading to a net cash flow from acquisitions and divestments of MSEK -4 201 (-578).
Innovations, acquisitions, and partnerships strengthen Epiroc's position as a leading global productivity and sustainability partner. Below are some highlights from the quarter.
Since the end of September, Epiroc has announced and/or completed six acquisitions. Acquisitions of four companies with combined annual revenues of more than BSEK 1.9 and 700 employees were completed. The acquisition consideration corresponded to a net cash outflow of BSEK 4.2.
Epiroc continues to support Roy Hill in creating the world's largest autonomous mine. The previous two years of testing have proven that desired safety and productivity metrics are achieved and now Roy Hill's mixed fleet, consisting of 96 haul trucks, will be converted to driverless operation.
In partnership with steel manufacturer SSAB, Epiroc has prototyped a battery-electric Minetruck MT42 partly made of fossil-free steel. The result is a 10-tonne reduction of CO2e emissions per manufactured dump box.
Epiroc provides a wide range of electric vehicles and charging solutions. By becoming a member of CharIN, a leading global association promoting interoperability based on the Combined Charging System (CCS), Epiroc can better support customers when transitioning towards using battery electric vehicles.
Equipment & Service provides rock drilling equipment, equipment for mechanical rock excavation, rock reinforcement, loading and haulage, ventilation systems, drilling equipment for exploration, water and energy, as well as related spare parts and service for the mining and infrastructure industries. The segment also provides solutions for automation, digitalization and electrification.
| 2022 | 2021 | ||
|---|---|---|---|
| MSEK | Q4 | Q4 | Δ,% |
| Orders received | 10 926 | 8 799 | 24 |
| Revenues | 11 018 | 8 500 | 30 |
| Operating profit | 2 827 | 2 323 | 22 |
| Operating margin, % | 25.7 | 27.3 |
Orders received was MSEK 10 926 (8 799), corresponding to an organic decline of -2%. Excluding Russia, the orders received increased 7% organically. Acquisitions contributed with 14% and currency with 12%. The orders received also included orders on hand from acquired companies. These had a positive impact of approximately 11%.
Compared to the previous year, orders received in local currency increased with double digits in Asia/Australia, South America and Africa/Middle East. They decreased slightly in North America while they decreased significantly in Europe, negatively impacted by Russia.
For equipment, orders received was unchanged, and amounted to MSEK 3 826 (3 812), corresponding to an organic decline of -10%. The share of orders from equipment was 35% (43).
For service, orders received increased 42% to MSEK 7 100 (4 987), with a strong contribution from orders on hand from acquired companies. The organic growth was 4%. The organic growth reflected a high activity level. The share of orders from service was 65% (57).
Sequentially, orders received increased 6% organically for the segment.
Revenues increased 30% to MSEK 11 018 (8 500), corresponding to an organic growth of 12%. Currency contributed with 13% and acquisitions with 5%. The revenues for service increased 10% organically, while equipment revenues increased 12% organically. The share of revenues from service was 57% (55). The book-to-bill ratio was 99% (104).
Revenues and book-to-bill
Revenue split
| Equipment & Service | Equipment | Service | ||||
|---|---|---|---|---|---|---|
| Sales Bridge | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues |
| MSEK,Δ,% | MSEK,Δ,% | MSEK,Δ,% | MSEK,Δ,% | MSEK,Δ,% | MSEK,Δ,% | |
| Q4 2021 | 8 799 | 8 500 | 3 812 | 3 791 | 4 987 | 4 709 |
| Organic | -2 | 12 | -10 | 12 | 4 | 10 |
| Currency | 12 | 13 | 10 | 13 | 13 | 14 |
| Structure/other | 14 | 5 | 0 | 1 | 25 | 9 |
| Total | 24 | 30 | 0 | 26 | 42 | 33 |
| Q4 2022 | 10 926 | 11 018 | 3 826 | 4 766 | 7 100 | 6 252 |
Adjusted operating profit and margin
Operating profit increased 22% to MSEK 2 827 (2 323). It was supported by strong organic growth and currency, but negatively impacted by acquisitions. Previous year was impacted by a positive revaluation effect of the shares held prior to the acquisition of the remaining shares of Mobilaris MCE of MSEK 167.
The operating margin was 25.7% (27.3). Adjusted operating margin was 25.7% (25.4), supported by organic growth but diluted by acquisitions and currency.
| Profit bridge | Operating profit | |
|---|---|---|
| MSEK,Δ | Margin,Δ,pp | |
| Q4 2021 | 2 323 | 27.3 |
| Organic | 591 | 2.9 |
| Currency | 105 | -1.7 |
| Structure/other | -192 | -2.8 |
| Total | 504 | -1.6 |
| Q4 2022 | 2 827 | 25.7 |
Since September 30, Equipment & Service has announced and/or finalized several acquisitions. See pages 23-24.
Tools & Attachments provides rock drilling tools and hydraulic attachments that are attached to machines used mainly for drilling, deconstruction and recycling as well as rock excavation. It also provides related service and spare parts and serves the mining and infrastructure industries.
| 2022 | 2021 | ||
|---|---|---|---|
| MSEK | Q4 | Q4 | Δ,% |
| Orders received | 2 940 | 2 807 | 5 |
| Revenues | 2 984 | 2 644 | 13 |
| Operating profit | 523 | 480 | 9 |
| Operating margin, % | 17.5 | 18.2 |
Orders received was MSEK 2 940 (2 807), corresponding to an organic order decline of -7%. Excluding Russia, the orders received decreased -4% organically. Currency contributed with 10% and acquisitions with 2%. The orders received also included orders on hand from acquired companies. These have a positive impact of approximately 1%.
Compared to the previous year, orders received in local currency increased in Africa/Middle East and North America while Europe, Asia/Australia and South America decreased. Europe was negatively impacted by Russia, resulting in a significant decline.
Sequentially, orders received increased 4% organically.
Revenues increased 13% to MSEK 2 984 (2 644), corresponding to an organic increase of 1%. Currency contributed with 11% and acquisitions with 1%. The book-to-bill ratio was 99% (106).
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| Q4 2021 | 2 807 | 2 644 |
| Organic | -7 | 1 |
| Currency | 10 | 11 |
| Structure/other | 2 | 1 |
| Total | 5 | 13 |
| Q4 2022 | 2 940 | 2 984 |
Operating profit increased 9% to MSEK 523 (480). The operating margin was 17.5% (18.2). It was supported by currency, but negatively impacted by higher cost.
| Profit bridge | Operating profit | |
|---|---|---|
| MSEK,Δ | Margin,Δ,pp | |
| Q4 2021 | 480 | 18.2 |
| Organic | -38 | -1.4 |
| Currency | 78 | 0.8 |
| Structure/other | 3 | -0.1 |
| Total | 43 | -0.7 |
| Q4 2022 | 523 | 17.5 |
Since September 30, Tools & Attachments has announced and/or finalized two acquisitions. See page 23-24.
CO₂e operations, tonnes/Cost of sales, MSEK, 12 months
*
Transport CO₂e, tonnes/Cost of sales, MSEK, 12 months
The number of employees increased to 16 996 (15 529), mainly due to acquisitions. External workforce amounted to 1 630 (1 474). For comparable units, the total workforce increased with 322 compared to the previous year.
The proportion of women employees and women managers at the end of the period increased to 18.2% and 22.7%, respectively.
The total recordable injury frequency rate (TRIFR) the last 12 months was 5.7 (5.1). Lost time injury frequency rate (LTIFR) increased to 2.3 (2.1). Several actions have been taken to reduce injuries. The sick leave remained at 2.4%.
The CO2e emissions from operations and for comparable units* the last 12 months was 17 462 tonnes, a decrease of -31% compared to 25 372 tonnes for the full year 2021. This improvement is driven by several initiatives, including the installation of solar panels and a higher share of renewable electricity.
* In order to comply with Science Based Targets initiative's (SBTi) requirements to have a minimum 95% coverage of Scope 1 and Scope 2 emissions, 22 additional customer centers have reported CO2e emissions for full-year 2021. For comparability, Epiroc will report CO2e emissions for comparable units, i.e. excluding the additional customer centers, in the quarterly reports until year-end 2022.
The CO2e emissions from transport the last 12 months increased 11% to 91 168 (82 383) tonnes. The increase is mainly explained by higher volumes delivered. The emissions from transport were 38 954 tonnes lower compared to the base year emissions in 2019, which corresponds to 60% fulfilment of the 2030 goal to halve CO2e emissions from transport.
Orders received, Jan-Dec
Revenues and book-to-bill, Jan-Dec
Operating profit and margin, Jan-Dec
Orders received for 2022 increased 17% to MSEK 53 222 (45 648), corresponding to an organic growth of 2%. Excluding Russia, the organic order growth was 11%. Currency contributed with 10% and acquisitions with 5%. Revenues increased 11% organically to MSEK 49 694 (39 645).
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| FY 2021 | 45 648 | 39 645 |
| Organic | 2 | 11 |
| Currency | 10 | 11 |
| Structure/other | 5 | 3 |
| Total | 17 | 25 |
| FY 2022 | 53 222 | 49 694 |
Operating profit increased 24% to MSEK 11 147 (8 995), including items affecting comparability of MSEK -608 (-103). Provisions related to Russia were MSEK -550 and restructuring costs related to the relocation of manufacturing from Japan were MSEK -95. Previous year was impacted by a positive revaluation effect of the shares held prior to the acquisition of the remaining shares of Mobilaris MCE of MSEK 167. Change in provision for the share-based long-term incentive programs was MSEK 37 (-270). The operating margin was 22.4% (22.7) and the adjusted operating margin was 23.7% (22.9%) The margin was supported by organic revenue growth, but diluted by acquisitions and currency.
| Profit bridge | Operating profit | ||
|---|---|---|---|
| MSEK,Δ | Margin,Δ,pp | ||
| FY 2021 | 8 995 | 22.7 | |
| Organic | 1 932 | 2.0 | |
| Currency | 744 | -0.6 | |
| Structure/other | -524 | -1.7 | |
| Total | 2 152 | -0.3 | |
| FY 2022 | 11 147 | 22.4 |
Profit before tax was MSEK 10 778 (8 964). Income tax expense amounted to MSEK 2 367 (1 895), corresponding to an effective tax rate of 22.0% (21.1). Profit for the period totaled MSEK 8 411 (7 069). Basic earnings per share were SEK 6.96 (5.85).
Operating cash flow was MSEK 5 662 (6 867).
Effective March 1, Epiroc stopped deliveries into Russia. During the second and third quarter, Epiroc had order cancellations totaling BSEK 1.4 and provisions totaling MSEK 550. At the end of December, Epiroc had no orders on hand in the country and the net assets amounted to approximately MSEK 240, mainly cash.
Epiroc is exposed to strategic, operational, legal and compliance as well as financial risks. The key risks include market, competition, product development, supply chain, employees, environment and climate, reputation, corruption and fraud, safety and health. Further information on risks, opportunities and risk management can be found in Epiroc's Annual and Sustainability Report 2021.
As stated in the Annual and Sustainability Report 2021, operating in complex markets with various political, economic and social conditions can affect Epiroc. The situation in Russia and Ukraine is highly complex and fluid, and there are continuous changes in sanctions, logistical flows and the financial system. Epiroc is closely monitoring the situation and continuously evaluating the implications for employees, business and operations in the short and long term.
The President and CEO of Epiroc AB declares that the interim report gives a fair view of the business development, financial position and result of operation of the Parent Company and the consolidated Group, and describes significant risks and uncertainties that the Parent Company and its subsidiaries are facing.
Nacka, Sweden, January 31, 2023
Helena Hedblom President and CEO, Epiroc AB
This report has not been audited.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q4 | Q4 | FY | FY |
| Revenues | 13 936 | 11 173 | 49 694 | 39 645 |
| Cost of sales | -8 142 | -6 862 | -30 675 | -24 192 |
| Gross profit | 5 794 | 4 311 | 19 019 | 15 453 |
| Administrative expenses | -1 186 | -923 | -3 628 | -3 166 |
| Marketing expenses | -852 | -633 | -3 042 | -2 313 |
| Research and development expenses | -396 | -360 | -1 438 | -1 172 |
| Other operating income and expenses | -125 | 199 | 236 | 193 |
| Operating profit | 3 235 | 2 594 | 11 147 | 8 995 |
| Net financial items | -189 | -27 | -369 | -31 |
| Profit before tax | 3 046 | 2 567 | 10 778 | 8 964 |
| Income tax expense | -651 | -510 | -2 367 | -1 895 |
| Profit for the period | 2 395 | 2 057 | 8 411 | 7 069 |
| Profit attributable to | ||||
| - owners of the parent | 2 391 | 2 054 | 8 397 | 7 058 |
| - non-controlling interests | 4 | 3 | 14 | 11 |
| Basic earnings per share, SEK | 1.98 | 1.70 | 6.96 | 5.85 |
| Diluted earnings per share, SEK | 1.98 | 1.70 | 6.95 | 5.84 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q4 | Q4 | FY | FY |
| Profit for the period | 2 395 | 2 057 | 8 411 | 7 069 |
| Other comprehensive income | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | -76 | 218 | 687 | 697 |
| Income tax relating to items that will not be reclassified | 22 | -41 | -139 | -141 |
| Total items that will not be reclassified to profit or loss | -54 | 177 | 548 | 556 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Translation differences on foreign operations | -955 | 309 | 2 112 | 1 099 |
| Cash flow hedges | 13 | - | 119 | - |
| Income tax relating to items that may be reclassified | -3 | - | -25 | - |
| Total items that may be reclassified subsequently to profit or | ||||
| loss | -945 | 309 | 2 206 | 1 099 |
| Other comprehensive income for the period, net of tax | -999 | 486 | 2 754 | 1 655 |
| Total comprehensive income for the period | 1 396 | 2 543 | 11 165 | 8 724 |
| Total comprehensive income attributable to | ||||
| - owners of the parent | 1 387 | 2 536 | 11 144 | 8 707 |
| - non-controlling interests | 9 | 7 | 21 | 17 |
| 2022 | 2021 | |
|---|---|---|
| Assets, MSEK | Dec 31 | Dec 31 |
| Intangible assets | 13 073 | 7 233 |
| Rental equipment | 1 458 | 1 279 |
| Other property, plant and equipment | 5 429 | 4 587 |
| Investments in associated companies and joint ventures | 67 | 106 |
| Other financial assets and other receivables | 1 752 | 1 007 |
| Deferred tax assets | 1 526 | 1 469 |
| Total non-current assets | 23 305 | 15 681 |
| Inventories | 16 945 | 11 861 |
| Trade receivables | 9 581 | 7 174 |
| Other receivables | 3 195 | 2 057 |
| Current tax receivables | 315 | 190 |
| Financial assets | 1 010 | 828 |
| Cash and cash equivalents | 7 326 | 10 792 |
| Assets held for sale | 103 | - |
| Total current assets | 38 475 | 32 902 |
| Total assets | 61 780 | 48 583 |
| Equity and liabilities, MSEK | ||
| Share capital | 500 | 500 |
| Retained earnings | 32 520 | 25 229 |
| Total equity attributable to owners of the parent | 33 020 | 25 729 |
| Non-controlling interest | 488 | 56 |
| Total equity | 33 508 | 25 785 |
| Interest-bearing liabilities | 8 877 | 8 562 |
| Post-employment benefits | 149 | 356 |
| Other liabilities and provisions | 652 | 657 |
| Deferred tax liabilities | 1 215 | 785 |
| Total non-current liabilities | 10 893 | 10 360 |
| Interest-bearing liabilities | 1 999 | 628 |
| Trade payables | 6 375 | 5 512 |
| Current tax liabilities | 670 | 562 |
| Other liabilities and provisions | 8 335 | 5 736 |
| Total current liabilities | 17 379 | 12 438 |
| Total equity and liabilities | 61 780 | 48 583 |
| Equity attributable to | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | owners of the parent |
non-controlling interests |
Total equity | ||||
| Opening balance, Jan 1, 2022 | 25 729 | 56 | 25 785 | ||||
| Total comprehensive income for the period | 11 144 | 21 | 11 165 | ||||
| Dividend | -3 619 | -2 | -3 621 | ||||
| Transactions with non-controlling interests | -111 | 413 | 302 | ||||
| Acquisition and divestment of own shares | -116 | - | -116 | ||||
| Share-based payments, equity settled | -7 | - | -7 | ||||
| Closing balance, Dec 31, 2022 | 33 020 | 488 | 33 508 | ||||
| Opening balance, Jan 1, 2021 | 23 693 | 46 | 23 739 | ||||
| Total comprehensive income for the period | 8 707 | 17 | 8 724 | ||||
| Dividend/Redemption | -6 635 | -7 | -6 642 | ||||
| Acquisition and divestment of own shares | 64 | - | 64 | ||||
| Share-based payments, equity settled | -100 | - | -100 | ||||
| Closing balance, Dec 31, 2021 | 25 729 | 56 | 25 785 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q4 | Q4 | FY | FY |
| Cash flow from operating activities | ||||
| Operating profit | 3 235 | 2 594 | 11 147 | 8 995 |
| Depreciation, amortization and impairment | 651 | 491 | 2 130 | 1 746 |
| Capital gain/loss and other non-cash items | 124 | -148 | -183 | -192 |
| Net financial items received/paid | -263 | -17 | -561 | 139 |
| Taxes paid | -910 | -470 | -2 676 | -1 978 |
| Pension funding and payment of pension to employees | -8 | -16 | -45 | -57 |
| Change in working capital | -1 001 | 247 | -3 737 | -619 |
| Increase in rental equipment | -169 | -243 | -875 | -775 |
| Sale of rental equipment | 84 | 106 | 358 | 348 |
| Net cash flow from operating activities | 1 743 | 2 544 | 5 558 | 7 607 |
| Cash flow from investing activities | ||||
| Investments in other property, plant and equipment | -218 | -94 | -600 | -489 |
| Sale of other property, plant and equipment | 36 | 4 | 62 | 1 |
| Investments in intangible assets | -102 | -130 | -414 | -437 |
| Acquisition of subsidiaries and associated companies | -4 201 | -578 | -4 696 | -2 358 |
| Sale of subsidiaries and associated companies | - | - | 10 | 6 |
| Proceeds to/from other financial assets, net | 58 | -54 | -353 | -196 |
| Net cash flow from investing activities | -4 427 | -852 | -5 991 | -3 473 |
| Cash flow from financing activities | ||||
| Dividend | -1 809 | -1 508 | -3 619 | -3 016 |
| Dividend to non-controlling interest | -1 | -6 | -2 | -7 |
| Acquisition of non-controlling interest* | - | - | -175 | - |
| Redemption of shares | - | - | - | -3 619 |
| Sale/Repurchase of own shares | -118 | 2 | -116 | 64 |
| Change in interest-bearing liabilities | 230 | -1 149 | 686 | -1 858 |
| Net cash flow from financing activities | -1 698 | -2 661 | -3 226 | -8 436 |
| Net cash flow for the period | -4 382 | -969 | -3 659 | -4 302 |
| Cash and cash equivalents, beginning of the period | 11 879 | 11 745 | 10 792 | 15 053 |
| Exchange differences in cash and cash equivalents | -171 | 16 | 193 | 41 |
| Cash and cash equivalents, end of the period | 7 326 | 10 792 | 7 326 | 10 792 |
| 2022 | 2021 | 2022 | 2021 | |
| Operating cash flow** | Q4 | Q4 | FY | FY |
| Net cash flow from operating activities | 1 743 | 2 544 | 5 558 | 7 607 |
| Net cash flow from investing activities | -4 427 | -852 | -5 991 | -3 473 |
| Acquisitions and divestments, net | 4 201 | 578 | 4 686 | 2 352 |
| Other adjustments | 2 | 145 | 1 409 | 381 |
| Operating cash flow | 1 519 | 2 415 | 5 662 | 6 867 |
* In the third quarter 2022, Epiroc acquired the full remaining non-controlling interest of Epiroc Mining India Ltd for MSEK -173.
** Operating cash flow is not defined according to IFRS. See page 26.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q4 | Q4 | FY | FY |
| Administrative expenses | -72 | -75 | -231 | -258 |
| Marketing expenses | -7 | -8 | -32 | -26 |
| Other operating income and expenses | 51 | 121 | 112 | 148 |
| Operating profit/loss | -28 | 38 | -151 | -136 |
| Financial income and expenses | -22 | -10 | -29 | -24 |
| Appropriations | 6 638 | 4 837 | 6 638 | 4 837 |
| Profit/loss before tax | 6 588 | 4 865 | 6 458 | 4 677 |
| Income tax | -1 351 | -987 | -1 320 | -914 |
| Profit/loss for the period | 5 237 | 3 878 | 5 138 | 3 763 |
| 2022 | 2021 | |
|---|---|---|
| MSEK | Dec 31 | Dec 31 |
| Total non-current assets | 53 281 | 53 318 |
| Total current assets | 4 748 | 2 272 |
| Total assets | 58 029 | 55 590 |
| Total restricted equity | 503 | 503 |
| Total non-restricted equity | 48 885 | 47 489 |
| Total equity | 49 388 | 47 992 |
| Total provisions | 213 | 321 |
| Total non-current liabilities | 6 990 | 6 989 |
| Total current liabilities | 1 438 | 288 |
| Total equity and liabilities | 58 029 | 55 590 |
Epiroc has two reporting segments; Equipment & Service and Tools & Attachments. In addition, Epiroc reports common group functions, including Financial Solutions, Group management, support functions and eliminations.
| 2021 | 2021 | 2022 | 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Orders received, MSEK | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
| Equipment & Service | 7 991 | 8 387 | 9 336 | 8 799 34 513 | 10 547 | 10 567 | 9 526 | 10 926 41 566 | |||
| Equipment | 4 028 | 4 031 | 4 532 | 3 812 | 16 403 | 5 244 | 4 682 | 3 437 | 3 826 | 17 189 | |
| Service | 3 963 | 4 356 | 4 804 | 4 987 | 18 110 | 5 303 | 5 885 | 6 089 | 7 100 24 377 | ||
| Tools & Attachments | 2 674 | 2 678 | 2 866 | 2 807 | 11 025 | 3 263 | 2 825 | 2 767 | 2 940 | 11 795 | |
| Common group functions | 25 | 5 | 43 | 37 | 110 | 8 | -15 | 29 | -161 | -139 | |
| Epiroc Group | 10 690 | 11 070 | 12 245 | 11 643 45 648 | 13 818 | 13 377 | 12 322 | 13 705 53 222 | |||
| Revenues, MSEK | |||||||||||
| Equipment & Service | 6 391 | 7 187 | 7 242 | 8 500 29 320 | 8 196 | 8 700 | 9 747 | 11 018 37 661 | |||
| Equipment | 2 562 | 3 052 | 2 792 | 3 791 | 12 197 | 3 410 | 3 190 | 3 832 | 4 766 | 15 199 | |
| Service | 3 829 | 4 135 | 4 450 | 4 709 | 17 123 | 4 786 | 5 510 | 5 915 | 6 252 22 462 | ||
| Tools & Attachments | 2 345 | 2 517 | 2 699 | 2 644 | 10 205 | 2 877 | 3 154 | 3 034 | 2 984 | 12 049 | |
| Common group functions | 37 | 29 | 25 | 29 | 120 | 15 | 14 | 21 | -66 | -16 | |
| Epiroc Group | 8 773 | 9 733 | 9 966 | 11 173 39 645 | 11 088 | 11 868 | 12 802 | 13 936 49 694 | |||
| Operating profit and profit before tax, MSEK | |||||||||||
| Equipment & Service | 1 696 | 1 880 | 1 909 | 2 323 | 7 808 | 2 142 | 1 891 | 2 417 | 2 827 | 9 277 | |
| Tools & Attachments | 386 | 416 | 502 | 480 | 1 784 | 520 | 500 | 571 | 523 | 2 114 | |
| Common group functions | -215 | -114 | -59 | -209 | -597 | -31 | -10 | -88 | -115 | -244 | |
| Epiroc Group | 1 867 | 2 182 | 2 352 | 2 594 | 8 995 | 2 631 | 2 381 | 2 900 | 3 235 | 11 147 | |
| Net financial items | -33 | -44 | 73 | -27 | -31 | -67 | -89 | -24 | -189 | -369 | |
| Profit before tax | 1 834 | 2 138 | 2 425 | 2 567 | 8 964 | 2 564 | 2 292 | 2 876 | 3 046 | 10 778 | |
| Operating margin, % | |||||||||||
| Equipment & Service | 26.5 | 26.2 | 26.4 | 27.3 | 26.6 | 26.1 | 21.7 | 24.8 | 25.7 | 24.6 | |
| Tools & Attachments | 16.5 | 16.5 | 18.6 | 18.2 | 17.5 | 18.1 | 15.9 | 18.8 | 17.5 | 17.5 | |
| Epiroc Group | 21.3 | 22.4 | 23.6 | 23.2 | 22.7 | 23.7 | 20.1 | 22.7 | 23.2 | 22.4 | |
| Items affecting comparability, MSEK* | |||||||||||
| Change in provision for LTIP** | 149 | 15 | -21 | 127 | 270 | -43 | -75 | 14 | 67 | -37 | |
| Items in Equipment & Service | - | - | - | -167 | -167 | - | 422 | 138 | - | 560 | |
| Items in Tools & Attachments | - | - | - | - | - | 73 | 12 | - | 85 | ||
| Epiroc Group | 149 | 15 | -21 | -40 | 103 | -43 | 420 | 164 | 67 | 608 | |
| Adj. margin for items affecting comparability, % Adjusted operating margin, E&S, % |
26.5 | 26.2 | 26.4 | 25.4 | 26.1 | 26.1 | 26.6 | 26.2 | 25.7 | 26.1 | |
| Adjusted operating margin, T&A, % | 16.5 | 16.5 | 18.6 | 18.2 | 17.5 | 18.1 | 18.2 | 19.2 | 17.5 | 18.3 | |
| Adjusted operating margin, % | 23.0 | 22.6 | 23.4 | 22.9 | 22.9 | 23.3 | 23.6 | 23.9 | 23.7 | 23.7 |
* Items affecting comparability are shown with reverse sign. I.e. a positive number indicates a cost and vice versa.
** Change in provision for long-term incentive programs is reported as administrative expenses.
| MSEK | 2021 | 2021 | 2022 | Δ,% | 2022 | Δ,% | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % currency adjusted | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | Y-o-Y | FY | Y-o-Y |
| Epiroc Group | 10 690 | 11 070 | 12 245 | 11 643 | 45 648 | 13 818 | 13 377 | 12 322 | 13 705 | 7% | 53 222 | 6% |
| North America | 2 226 | 2 542 | 2 974 | 2 843 | 10 585 | 3 358 | 3 753 | 3 438 | 3 147 | -5% | 13 696 | 12% |
| South America | 1 177 | 1 420 | 1 480 | 1 498 | 5 575 | 1 687 | 1 892 | 1 851 | 2 102 | 24% | 7 532 | 23% |
| Europe | 2 623 | 2 612 | 2 577 | 2 761 | 10 573 | 3 100 | 1 742 | 601 | 2 016 | -28% | 7 459 | -29% |
| Africa/Middle East | 1 629 | 1 495 | 1 793 | 1 553 | 6 470 | 2 125 | 1 962 | 2 312 | 1 900 | 12% | 8 299 | 15% |
| Asia/Australia | 3 035 | 3 001 | 3 421 | 2 988 | 12 445 | 3 548 | 4 028 | 4 120 | 4 540 | 39% | 16 236 | 19% |
| Equipment & Service | 7 991 | 8 387 | 9 336 | 8 799 | 34 513 | 10 547 | 10 567 | 9 526 | 10 926 | 12% | 41 566 | 10% |
| North America | 1 489 | 1 805 | 2 199 | 2 101 | 7 594 | 2 431 | 2 878 | 2 407 | 2 422 | -2% | 10 138 | 15% |
| South America | 911 | 1 165 | 1 220 | 1 243 | 4 539 | 1 375 | 1 629 | 1 553 | 1 814 | 30% | 6 371 | 29% |
| Europe | 1 824 | 1 819 | 1 882 | 1 930 | 7 455 | 2 149 | 1 178 | 182 | 1 348 | -31% | 4 857 | -34% |
| Africa/Middle East | 1 190 | 1 050 | 1 294 | 1 068 | 4 602 | 1 665 | 1 423 | 1 779 | 1 348 | 15% | 6 215 | 20% |
| Asia/Australia | 2 577 | 2 548 | 2 741 | 2 457 | 10 323 | 2 927 | 3 459 | 3 605 | 3 994 | 49% | 13 985 | 24% |
| Tools & Attachments | 2 674 | 2 678 | 2 866 | 2 807 | 11 025 | 3 263 | 2 825 | 2 767 | 2 940 | -5% | 11 795 | -2% |
| North America | 726 | 716 | 748 | 718 | 2 908 | 930 | 902 | 1 002 | 886 | 5% | 3 720 | 11% |
| South America | 267 | 256 | 258 | 255 | 1 036 | 312 | 263 | 299 | 287 | -4% | 1 161 | -1% |
| Europe | 787 | 813 | 683 | 819 | 3 102 | 943 | 553 | 424 | 665 | -21% | 2 585 | -17% |
| Africa/Middle East | 440 | 445 | 500 | 485 | 1 870 | 460 | 540 | 532 | 555 | 6% | 2 087 | 3% |
| Asia/Australia | 454 | 448 | 677 | 530 | 2 109 | 618 | 567 | 510 | 547 | -5% | 2 242 | -2% |
| MSEK | 2021 | 2021 | 2022 | Δ,% | 2022 | Δ,% | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % currency adjusted | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | Y-o-Y | FY | Y-o-Y |
| Epiroc Group | 8 773 | 9 733 | 9 966 | 11 173 | 39 645 | 11 088 | 11 868 | 12 802 | 13 936 | 12% | 49 694 | 14% |
| North America | 1 915 | 2 158 | 2 326 | 2 457 | 8 856 | 2 767 | 3 139 | 3 433 | 3 475 | 20% | 12 814 | 25% |
| South America | 1 156 | 1 378 | 1 368 | 1 395 | 5 297 | 1 565 | 1 597 | 1 810 | 1 873 | 17% | 6 845 | 17% |
| Europe | 1 992 | 2 172 | 2 172 | 2 481 | 8 817 | 2 172 | 2 177 | 1 832 | 2 146 | -16% | 8 327 | -8% |
| Africa/Middle East | 1 208 | 1 405 | 1 406 | 1 470 | 5 489 | 1 683 | 1 902 | 2 046 | 2 126 | 30% | 7 757 | 27% |
| Asia/Australia | 2 502 | 2 620 | 2 694 | 3 370 | 11 186 | 2 901 | 3 053 | 3 681 | 4 316 | 18% | 13 951 | 14% |
| Equipment & Service | 6 391 | 7 187 | 7 242 | 8 500 | 29 320 | 8 196 | 8 700 | 9 747 | 11 018 | 17% | 37 661 | 16% |
| North America | 1 233 | 1 453 | 1 587 | 1 772 | 6 045 | 1 934 | 2 154 | 2 484 | 2 681 | 28% | 9 253 | 32% |
| South America | 930 | 1 130 | 1 111 | 1 150 | 4 321 | 1 290 | 1 306 | 1 513 | 1 597 | 21% | 5 706 | 20% |
| Europe | 1 308 | 1 456 | 1 435 | 1 750 | 5 949 | 1 452 | 1 464 | 1 143 | 1 410 | -21% | 5 469 | -11% |
| Africa/Middle East | 825 | 941 | 896 | 1 008 | 3 670 | 1 174 | 1 355 | 1 491 | 1 607 | 43% | 5 627 | 37% |
| Asia/Australia | 2 095 | 2 207 | 2 213 | 2 820 | 9 335 | 2 346 | 2 421 | 3 116 | 3 723 | 21% | 11 606 | 14% |
| Tools & Attachments | 2 345 | 2 517 | 2 699 | 2 644 | 10 205 | 2 877 | 3 154 | 3 034 | 2 984 | 2% | 12 049 | 8% |
| North America | 659 | 693 | 731 | 669 | 2 752 | 813 | 976 | 944 | 878 | 13% | 3 611 | 14% |
| South America | 227 | 248 | 256 | 246 | 977 | 274 | 291 | 297 | 278 | -4% | 1 140 | 3% |
| Europe | 672 | 705 | 723 | 719 | 2 819 | 728 | 711 | 676 | 715 | -5% | 2 830 | -2% |
| Africa/Middle East | 384 | 465 | 510 | 463 | 1 822 | 509 | 547 | 556 | 522 | 3% | 2 134 | 8% |
| Asia/Australia | 403 | 406 | 479 | 547 | 1 835 | 553 | 629 | 561 | 591 | -0% | 2 334 | 17% |
The consolidated financial statements of the Epiroc Group are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. The interim report is prepared in accordance with IAS 34 Interim financial reporting. The accounting principles applied in the preparation of this interim report apply to all periods and comply with the accounting principles presented in the Annual and Sustainability Report 2021, in note 1 Significant accounting principles. No new and revised standards and interpretations effective from January 1, 2022, are considered to have any material impact on the financial statements.
The interim financial statements of Epiroc AB have been prepared in accordance with the Swedish Annual Accounts Act and the recommendation RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Board. The accounting principles applied in the preparation of this interim report apply to all periods and comply with the accounting principles presented in the Annual and Sustainability Report 2021, note A1 in the Parent Company accounts. No new and revised standards and interpretations effective from January 1, 2022, are considered to have any material impact on the Parent Company´s financial statements.
| Date | Completed acquisitions | Divestments | Segment | Revenues | Employees |
|---|---|---|---|---|---|
| 2022 Dec 1 | Remote Control Technologies (RCT) | E&S | 600 | 225 | |
| 2022 Nov 4 | Wain-Roy | T&A | 200 | 100 | |
| 2022 Nov 1 | Radlink | E&S | 1 040 | 330 | |
| 2022 Oct 14 | Geoscan | E&S | 65 | 50 | |
| 2022 Aug 2 | RNP México | E&S | 245 | 370 | |
| 2022 Jun 1 | JTMEC | E&S | 235 | 190 | |
| 2022 May 31 | Zhejiang GIA Machinery | ||||
| 2021 Nov 3 | FVT Research | E&S | 27 | 25 | |
| 2021 Nov 2 | Mobilaris MCE AB | E&S | 60 | 50 | |
| 2021 Aug 10 | DandA Heavy Industries | T&A | 210 | 60 | |
| 2021 Jul 7 | Mining Tag S.A. | E&S | 65 | 120 | |
| 2021 Jul 2 | Meglab | E&S | 335 | 240 | |
| 2021 Jun 7 | 3D-P | E&S | 110 | 50 | |
| 2021 Jun 1 | Kinetic Logging Services | E&S | 195 | 180 | |
| 2021 May 4 | MineRP | E&S | 135 | 200 | |
| 2021 Apr 6 | Epiroc Armenia LLC | -20 |
The table presents annual revenues in MSEK and employees at the time of the acquisition. Line indicates new quarter.
Geoscan provides digital geological imaging solutions to mining companies. The acquisition complements Epiroc's offering within orebody knowledge, which in turn strengthens productivity in customers operations. The company has approximately MSEK 65 in annual revenues and 50 employees. The acquisition was announced on October 7 and completed on October 14. The acquisition reports in "Equipment".
Radlink provides mines with wireless connectivity solutions. The acquisition of a majority stake of 53% strengthens Epiroc's offering in automation and digital solutions. The company has approximately MSEK 1 040 in annual revenues and 330 employees. The acquisition was announced on September 19 and completed on November 1. The minority share is reported as "non-controlling interests" and reports in "Service".
The completed acquisitions have had a total cash flow effect of MSEK 4 674. According to the preliminary purchase price allocation, intangible assets amount to MSEK 2 022 and goodwill amounts to MSEK 3 798. The acquired entities during 2022 have contributed to revenues with MSEK 599 and operating profit with MSEK 28 since the respective date of acquisition.
| Fair value of acquired assets and liabilities 2022, MSEK | whereof RCT | |
|---|---|---|
| Net assets identified | 404 | -18 |
| Non-controlling interest Radlink | -473 | |
| Intangible assets | 2 022 | 956 |
| Goodwill | 3 798 | 2 395 |
| Total consideration* | 5 751 | 3 333 |
| Net cash outflow | 4 674 | 2 895 |
* Of which probability weighted earn-out of 465 MSEK.
Q4 2022
The carrying value and fair value of the Group's outstanding derivatives and borrowings are shown in the tables below. The fair values of bonds are based on level 1 and the fair values of derivatives and other loans are based on level 2 in the fair value hierarchy. Compared to 2021, no transfers have been made between different levels in the fair value hierarchy for derivatives and borrowings and no significant changes have been made to valuation techniques, inputs or assumptions.
| Outstanding derivatives recorded to fair value | 2022 | 2021 | ||
|---|---|---|---|---|
| MSEK | Dec 31 | Dec 31 | ||
| Non-current assets and liabilities | ||||
| Assets | 30 | - | ||
| Liabilities | 1 | - | ||
| Current assets and liabilities | ||||
| Assets | 296 | 46 | ||
| Liabilities | 200 | 94 | ||
| Carrying value and fair value | 2022 | 2022 | 2021 | 2021 |
| MSEK | Dec 31 | Dec 31 | Dec 31 | Dec 31 |
| Carrying value | Fair value | Carrying value | Fair value | |
| Bonds | 5 125 | 5 170 | 3 992 | 4 137 |
| Other loans | 5 751 | 5 508 | 5 198 | 5 222 |
| Total interest-bearing loans | 10 876 | 10 678 | 9 190 | 9 359 |
The Board of Directors has been authorized to purchase, transfer and sell Epiroc shares in relation to Epiroc's share-based long-term incentive programs.
| A share | B share | Total | |
|---|---|---|---|
| Total number of shares | 823 765 854 | 389 972 849 | 1 213 738 703 |
| Whereof shares held by Epiroc | 8 168 377 | ||
| Change in the quarter | |||
| Purchased (+) / divested (-) shares, number | 612 289 | ||
| Value of purchased (+) / divested (-) shares, SEK | 118 083 666 |
In the quarter, no material changes have taken place and no significant related-party transactions were made.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Q4 | Q4 | FY | FY | |
| Growth | ||||
| *Orders received, MSEK | 13 705 | 11 643 | 53 222 | 45 648 |
| Revenues, MSEK | 13 936 | 11 173 | 49 694 | 39 645 |
| *Total revenue growth, % | 25 | 14 | 25 | 10 |
| *Organic revenue growth, % | 8 | 9 | 11 | 12 |
| Profitability | ||||
| *Gross margin, % | 41.6 | 38.6 | 38.3 | 39.0 |
| *EBITDA margin, % | 27.9 | 27.6 | 26.7 | 27.1 |
| *Adjusted operating margin, % | 23.7 | 22.9 | 23.7 | 22.9 |
| *Operating margin, % | 23.2 | 23.2 | 22.4 | 22.7 |
| *Profit margin, % | 21.9 | 23.0 | 21.7 | 22.6 |
| Capital efficiency | ||||
| *Return on capital employed, % | 28.0 | 26.1 | 28.0 | 26.1 |
| *Net debt / EBITDA, ratio | 0.28 | -0.12 | 0.28 | -0.12 |
| *Net debt / equity, %, period end | 11.0 | -5.1 | 11.0 | -5.1 |
| *Average net working capital / revenues, % | 31.3 | 29.0 | 31.3 | 29.0 |
| Cash generation | ||||
| *Operating cash flow, MSEK | 1 519 | 2 415 | 5 662 | 6 867 |
| *Cash conversion rate, %, 12 months | 67 | 97 | 67 | 97 |
| Equity information | ||||
| Basic number of shares outstanding, millions | 1 206 | 1 206 | 1 206 | 1 206 |
| Diluted number of shares outstanding, millions | 1 207 | 1 208 | 1 208 | 1 208 |
| *Equity per share, SEK, period end | 27.8 | 21.4 | 27.8 | 21.4 |
| Basic earnings per share, SEK | 1.98 | 1.70 | 6.96 | 5.85 |
| *Return on equity, % | 28.4 | 29.5 | 28.4 | 29.5 |
| *Operating cash flow per share, SEK | 1.26 | 2.00 | 4.69 | 5.69 |
| People & Planet | ||||
| Employees, period end | 16 996 | 15 529 | 16 996 | 15 529 |
| Women employees, %, period end | 18.2 | 17.1 | 18.2 | 17.1 |
| Women managers, %, period end | 22.7 | 22.5 | 22.7 | 22.5 |
| Total recordable injury frequency rate, TRIFR, 12 months | 5.7 | 5.1 | 5.7 | 5.1 |
| Sick leave, %, 12 months | 2.4 | 2.4 | 2.4 | 2.4 |
| CO2e emissions from operations, tonnes, 12 months | 17 462 | 25 372 | 17 462 | 25 372 |
| CO2e emissions from transport, tonnes, 12 months | 91 168 | 82 383 | 91 168 | 82 383 |
Several key figures in this report are not defined according to IFRS. The alternative performance measures are marked with a *. They provide complementary information aiming to help readers to analyze the company's operations and facilitate an evaluation of the performance. Since not all companies calculate financial performance measures in the same manner, these are not always comparable with measures used by other companies. These financial performance measures should therefore not be regarded as a replacement for measures as defined according to IFRS. For a list of financial definitions, non-IFRS measures and calculations, visit the Epiroc Group website.
Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. With ground-breaking technology, Epiroc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK 50 billion in 2022, and has around 17 000 passionate employees supporting and collaborating with customers in around 150 countries.
Epiroc has four prioritized areas within sustainability:
For each area there are several targets and key performance indicators, including the long-term goals for 2030 that further advance the Group's ambitions on e.g. climate change and diversity.
Some statements in this report are forward looking, and the actual outcomes could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcomes.
In the event of inconsistency or discrepancy between the English and the Swedish version of this publication, the Swedish version shall prevail.
Dare to think new.
Drive the productivity and sustainability transformation in our industry.
Innovation, Commitment and Collaboration.
By being in attractive niches and prioritizing innovation, aftermarket and operational excellence, we strive to achieve outperformance. Our success is reinforced by our strong company culture and our integrated approach to sustainability.
See Epiroc's Annual and Sustainability report for more information.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
This information is information that Epiroc AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons on the next page, at 11:30 CET on January 31, 2023.
Karin Larsson Vice President Investor Relations E-mail: [email protected] Tel: +46 10 755 0106
Ola Kinnander Media Relations Manager E-mail: [email protected] Tel: +46 70 347 2455
Reg. No. 556041-2149 Box 4015 SE-131 04 Nacka, Sweden Tel: +46 10 755 0000
www.epirocgroup.com/en/investors
At 14.00 CET on January 31, Epiroc will host a report presentation and Q&A-session for investors, analysts and media. The report will be presented by President and CEO Helena Hedblom and CFO Håkan Folin.
Webcast link and presentation material can be found here: www.epirocgroup.com/en/investors/financialpublications
* Proposal by the Board
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