Quarterly Report • Oct 26, 2022
Quarterly Report
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October 26, 2022
| Epiroc interim report Q3 3 | |
|---|---|
| Financial overview 3 | |
| CEO comments 4 | |
| Orders and revenues 5 | |
| Profits and returns 6 | |
| Russia 6 | |
| Balance sheet 7 | |
| Cash flow 7 | |
| Leading productivity and sustainability partner 8 | |
| Equipment & Service 9 | |
| Tools & Attachments 11 | |
| Sustainability: People & Planet 13 | |
| January – September 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 24 | |
| 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 | ||||||
| Q3 | Q3 | Δ. % | Jan-Sep | Jan-Sep | Δ. % | |
| Orders received, excl. Russia | 13 324 | 11 493 | 16 | 40 127 | 31 610 | 27 |
| Orders received | 12 322 | 12 245 | 1 | 39 517 | 34 005 | 16 |
| Revenues | 12 802 | 9 966 | 28 | 35 758 | 28 472 | 26 |
| Operating profit | 2 900 | 2 352 | 23 | 7 912 | 6 401 | 24 |
| Operating margin, % | 22.7 | 23.6 | 22.1 | 22.5 | ||
| Profit before tax | 2 876 | 2 425 | 19 | 7 732 | 6 397 | 21 |
| Profit margin, % | 22.5 | 24.3 | 21.6 | 22.5 | ||
| Profit for the period | 2 243 | 1 929 | 16 | 6 016 | 5 012 | 20 |
| Operating cash flow | 1 814 | 1 613 | 12 | 4 143 | 4 452 | -7 |
| Basic earnings per share, SEK | 1.86 | 1.60 | 16 | 4.98 | 4.15 | 20 |
| Diluted earnings per share, SEK | 1.85 | 1.59 | 16 | 4.97 | 4.14 | 20 |
| Return on capital employed, %, 12 months | 27.9 | 25.0 | ||||
| Net debt/EBITDA, ratio | -0.12 | -0.12 |
* For further information, see page 6.
*** For further information, see page 24.
The third quarter was a strong quarter in many ways. The order intake remained high and we successfully managed to increase output, despite supply-chain challenges. This translated into record revenues and profit.
Demand remained high. Excluding Russia, the order intake increased 5% organically to MSEK 13 324 (11 493). We won several large equipment orders and the aftermarket developed well, with a particularly strong growth in service.
Many orders included automation, digitalization and electrification solutions, which help our customers to increase safety and productivity, and lower emissions. One example is an order we received for collision avoidance system for more than 60 underground machines in Africa. Another example is an order won by our recently acquired company JTMEC that will provide the electrical infrastructure to a major tunnelling project in Australia. These solutions are critical for customers regardless of business climate.
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
Revenues increased 12% organically to a record MSEK 12 802. A large portion of our revenues comes from the aftermarket. To further enhance our focus and build even stronger customer relations, we will establish regional Parts & Services divisions in 2023.
The adjusted operating profit increased 31% to MSEK 3 064 (2 331). The adjusted operating margin improved to 23.9% (23.4), supported by the organic growth. The reported operating profit was MSEK 2 900 (2 352), including a provision related to Russia of MSEK -150.
The operating cash flow increased to MSEK 1 814 (1 613), supported by higher operating profit, but negatively impacted by working capital.
Q3 2022
Innovation is one of our strategic focus areas. We continuously expand our offerings and complement our growth with acquisitions that accelerate realization of our strategy. For example, AARD Mining Equipment widens our range of underground machines for mines with low mining heights, and Radlink and Geoscan strengthen our digital offerings. Radlink offers robust wireless networks that are vital for both automation and digitalization. Geoscan enhances the knowledge of the ore body, which in turn increases productivity throughout the mining process.
By collaborating closely with customers, partners and innovation leaders also in other industries, we drive the transformation of the mining and construction industries. Together, we make it happen.
Helena Hedblom President and CEO
Equipment Service Tools & Attachments
| 2022 | 2021 | ||
|---|---|---|---|
| MSEK | Q3 | Q3 | Δ,% |
| Orders received | 12 322 | 12 245 | 1 |
| Revenues | 12 802 | 9 966 | 28 |
| Operating profit | 2 900 | 2 352 | 23 |
| Operating margin, % | 22.7 | 23.6 |
Excluding Russia, the orders received was MSEK 13 324 (11 493), corresponding to an organic growth of 5%. Reported orders received was MSEK 12 322 (12 245), corresponding to an organic decline of -10%. All orders in Russia have been removed from the order book, which impacted the orders received with MSEK -1 002. Currency contributed with 12% and acquisitions with -1%. The previous year's orders received included orders on hand from acquired companies. These have a negative impact of approximately -3% in the sales bridge.
Compared to the previous year, orders received in local currency increased in Africa/Middle East, South America and Asia/Australia. They decreased slightly in North America while Europe was negatively impacted by Russia, resulting in a significant decline.
Mining customers represented 81% (78) of orders received in the quarter and infrastructure customers 19% (22).
Sequentially (compared to the previous quarter) orders received decreased -12% organically, mainly explained by Russia.
Revenues increased 28% to MSEK 12 802 (9 966), corresponding to an organic growth of 12%. Currency and acquisitions impacted revenues positively with 14% and 2%, respectively. The book-to-bill ratio was 96% (123).
The aftermarket represented 70% (72) of revenues in the quarter.
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| Q3 2021 | 12 245 | 9 966 |
| Organic | -10 | 12 |
| Currency | 12 | 14 |
| Structure/other | -1 | 2 |
| Total | 1 | 28 |
| Q3 2022 | 12 322 | 12 802 |
Capital employed, cash, MSEK, period end Capital employed, excl. cash, MSEK, period end Return on capital employed, %, 12 months
| MSEK,Δ | Margin,Δ,pp |
|---|---|
| 2 352 | 23.6 |
| 501 | 1.6 |
| 216 | -0.8 |
| -169 | -1.7 |
| 548 | -0.9 |
| 2 900 | 22.7 |
| Operating profit |
Q3 2022
* 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 23% to MSEK 2 900 (2 352), including items affecting comparability of MSEK -164 (21). These items are provisions related to Russia of MSEK -150 and a change in provision for the sharebased long-term incentive programs of MSEK -14 (21). The operating margin was 22.7% (23.6). The adjusted operating margin, i.e. excluding items affecting comparability, was 23.9% (23.4). It was supported by organic growth but diluted by acquisitions and currency.
Net financial items amounted to MSEK -24 (73). Previous year included a positive impact from exchange rate differences. The net interest was MSEK -23 (-24).
Profit before tax was MSEK 2 876 (2 425). Income tax expense amounted to MSEK -633 (-496), corresponding to an effective tax rate of 22.0% (20.5).
Profit for the period totaled MSEK 2 243 (1 929). Basic earnings per share were SEK 1.86 (1.60).
Return on capital employed was 27.9% (25.0) and the return on equity was 29.2% (28.0).
As from March 1, Epiroc has stopped deliveries to Russia and it is currently not possible to conduct business in the country. The Russian operations are therefore adjusted accordingly. All orders in Russia have been removed from the order book, which impacted the reported orders received with MSEK -1 002.
In addition to the provision taken in the second quarter of MSEK -400, a provision of MSEK -150 was taken in the third quarter. The provision is related to receivables, inventories, and restructuring costs.
At the end of September, Epiroc had net assets in Russia amounting to approximately MSEK 625, mainly cash.
Compared to the previous year, net working capital increased 47% to MSEK 17 744 (12 104). Excluding the effect of acquisitions and currency, the net working capital increased 23%. 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 30.4% (29.8).
The Group's net cash position amounted to MSEK 1 545 (1 191). The net debt/EBITDA ratio was -0.12 (-0.12). In September Epiroc issued green bonds amounting to MSEK 2 000. In connection to the new issue, Epiroc repurchased MSEK 866 of the outstanding December 2023 bonds. See page 15.
The second part of the annual dividend will be paid on October 27. In total, approximately MSEK 1 809 will be paid out, corresponding to SEK 1.50 (1.25) per share. The record date was October 24, 2022.
Operating cash flow was MSEK 1 814 (1 613). It was supported by higher operating profit, but negatively impacted from change in working capital of MSEK -1 131 (-487), mainly inventory.
Net cash flow from acquisitions and divestments was MSEK -210 (-492).
Innovations, acquisitions, and partnerships strengthen Epiroc's position as a leading global productivity and sustainability partner. Below are some highlights from the quarter.
Acquisitions – Creating options for the future Since the end of June, Epiroc has announced five acquisitions.
The new Boomer E10 and E20 face drilling rigs are compact enough for mining, with the power needed for heavy construction. With the teleremote feature, the operator can monitor the machine safely from a control room and still be as much as 25% more productive. Both rigs are available with optional battery-electric driveline for zero-emission tramming.
The main design feature of the Boltec ABR is the fully mechanized bolt reloading system. The system automatically feeds bolts from a large carrier magazine to the feed magazine, all while the operator remains safe inside the ergonomic cabin. This innovation removes the need for manual interference.
In September Epiroc issued green bonds amounting to MSEK 2 000 to finance sustainable investments, expenditures, and R&D. The proceeds will support Epiroc in achieving its ambitious sustainability goals for 2030, including halving its CO2e emissions.
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.
Orders received
Revenues and book-to-bill
| 2022 | 2021 | ||
|---|---|---|---|
| MSEK | Q3 | Q3 | Δ,% |
| Orders received | 9 526 | 9 336 | 2 |
| Revenues | 9 747 | 7 242 | 35 |
| Operating profit | 2 417 | 1 909 | 27 |
| Operating margin, % | 24.8 | 26.4 |
Excluding Russia, the orders received was MSEK 10 457 (8 693), corresponding to an organic order growth of 8%. Reported orders received was MSEK 9 526 (9 336), corresponding to an organic decline of -10%. Currency contributed with 12%, while there was no contribution from acquisitions. The previous year's orders received included orders on hand from acquired companies. These have a negative impact of approximately -3% in the sales bridge.
Compared to the previous year, orders received in local currency increased in Africa/Middle East, South America and Asia/Australia. They decreased slightly in North America while Europe was negatively impacted by Russia, resulting in a significant decline.
For equipment, reported orders received decreased -24% to MSEK 3 437 (4 532), corresponding to an organic decline of -33%. Excluding Russia, the orders declined -7% organically. All orders in Russia have been removed from the order book, which impacted the reported organic growth negatively. The share of orders from equipment was 36% (49).
For service, orders received increased 27% to MSEK 6 089 (4 804), corresponding to an organic growth of 12%. Excluding Russia, the orders increased 22% organically. The growth reflected a high activity level, including an order of MSEK 70 within electrical infrastructure. The share of orders from service was 64% (51).
Sequentially, orders received decreased -14% organically for the segment, mainly explained by Russia.
Revenues increased 35% to MSEK 9 747 (7 242), corresponding to an organic growth of 18%. Currency contributed with 15% and acquisitions with 2%. The revenues for service increased 16% organically, while equipment revenues increased 22% organically. The share of revenues from service was 61% (61). The book-to-bill ratio was 98% (129).
| 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,% | |
| Q3 2021 | 9 336 | 7 242 | 4 532 | 2 792 | 4 804 | 4 450 |
| Organic | -10 | 18 | -33 | 22 | 12 | 16 |
| Currency | 12 | 15 | 9 | 15 | 15 | 14 |
| Structure/other | 0 | 2 | 0 | 0 | 0 | 3 |
| Total | 2 | 35 | -24 | 37 | 27 | 33 |
| Q3 2022 | 9 526 | 9 747 | 3 437 | 3 832 | 6 089 | 5 915 |
Operating profit and margin
Operating profit increased 27% to MSEK 2 417 (1 909). It was supported by organic growth and currency, but negatively impacted by provisions related to Russia of MSEK -138. The operating margin was 24.8% (26.4). Adjusted operating margin was 26.2% (26.4) supported by organic growth, but diluted by currency and acquisitions.
| Profit bridge | Operating profit | |
|---|---|---|
| MSEK,Δ | Margin,Δ,pp | |
| Q3 2021 | 1 909 | 26.4 |
| Organic | 480 | 1.4 |
| Currency | 159 | -1.3 |
| Structure/other | -131 | -1.7 |
| Total | 508 | -1.6 |
| Q3 2022 | 2 417 | 24.8 |
To enhance focus and build stronger customer relations, Epiroc will establish three regional Parts & Services divisions as of January 1, 2023. See page 15.
Since June 30, Equipment & Service has announced and/or finalized several acquisitions. See page 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 | Q3 | Q3 | Δ,% |
| Orders received | 2 767 | 2 866 | -3 |
| Revenues | 3 034 | 2 699 | 12 |
| Operating profit | 571 | 502 | 14 |
| Operating margin, % | 18.8 | 18.6 |
Excluding Russia, the orders received was MSEK 2 867 (2 759), corresponding to an organic order decline of -2%. Reported orders received was MSEK 2 767 (2 866), corresponding to a decrease of -10% organically. Currency contributed with 12% and acquisitions with -5%. The previous year's orders received included orders on hand from acquired companies. These have a negative impact of approximately -7% in the sales bridge.
Compared to the previous year, orders received in local currency increased in North America, were flat in South America and Africa/Middle East while Europe and Asia/Australia decreased. Europe was negatively impacted by Russia, resulting in a significant decline.
Sequentially, orders received decreased -5% organically, partly explained by Russia.
Revenues increased 12% to MSEK 3 034 (2 699), corresponding to an organic decline of -1%. Currency contributed with 12% and acquisitions with 1%. The book-to-bill ratio was 91% (106).
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| Q3 2021 | 2 866 | 2 699 |
| Organic | -10 | -1 |
| Currency | 12 | 12 |
| Structure/other | -5 | 1 |
| Total | -3 | 12 |
| Q3 2022 | 2 767 | 3 034 |
Operating profit increased 14% to MSEK 571 (502). It was supported by currency, but negatively impacted by provisions related to Russia of MSEK -12. The operating margin was 18.8% (18.6). Adjusted operating margin was 19.2% (18.6), supported by currency.
| Profit bridge | Operating profit | |
|---|---|---|
| MSEK,Δ | Margin,Δ,pp | |
| Q3 2021 | 502 | 18.6 |
| Organic | 2 | 0.2 |
| Currency | 74 | 0.5 |
| Structure/other | -7 | -0.5 |
| Total | 69 | 0.2 |
| Q3 2022 | 571 | 18.8 |
The number of employees increased to 16 217 (15 198), partly due to acquisitions. External workforce amounted to 1 615 (1 404). For comparable units, the total workforce increased with 598 compared to the previous year.
The proportion of women employees and women managers at the end of the period increased to 18.1% and 22.7%, respectively.
5.1 5.3
*
The total recordable injury frequency rate (TRIFR)* the last 12 months was 5.6 compared to 5.1 for the full year 2021. Lost time injury frequency rate (LTIFR) increased to 2.4 compared to 2.1 for the full year 2021. Several actions have been taken to reduce injuries. The sick leave was 2.5%.
* New types of injuries were included in reporting in 2021. Data for periods before Q4 2021 are not comparable.
The CO2e emissions from operations and for comparable units** (Scope 1 & Scope 2) the last 12 months was 19 396 tonnes, a decrease of -24% 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 6% to 87 590 tonnes, compared to 82 383 tonnes for the full year 2021. The increase is mainly explained by higher volumes delivered. The emissions from transport were 19 906 tonnes lower compared to the base year emissions in 2019, which corresponds to 37% fulfilment of the 2030 goal to halve CO2e emissions from transport.
Orders received, Jan-Sep
Orders received the first nine months, excluding Russia, increased 27% to MSEK 40 127 (31 610). The reported orders received was MSEK 39 517 (34 005), corresponding to an organic growth of 4%. All orders in Russia have been removed from the order book, which impacted the reported organic growth negatively. Revenues increased 12% organically to MSEK 35 758 (28 472).
| Sales Bridge | Orders received | Revenues |
|---|---|---|
| MSEK,Δ,% | MSEK,Δ,% | |
| Jan-Sep 2021 | 34 005 | 28 472 |
| Organic | 4 | 12 |
| Currency | 10 | 11 |
| Structure/other | 2 | 3 |
| Total | 16 | 26 |
| Jan-Sep 2022 | 39 517 | 35 758 |
Operating profit increased 24% to MSEK 7 912 (6 401), including items affecting comparability of MSEK -541 (-143). Provisions related to Russia were MSEK -550 and restructuring costs related to the relocation of manufacturing from Japan were MSEK -95. Change in provision for the share-based long-term incentive programs was MSEK 104 (-143).
The operating margin was 22.1% (22.5). The adjusted operating margin increased to 23.6% (23.0%). The operating margin was supported by organic revenue growth, but diluted by acquisitions and currency.
| Profit bridge | Operating profit | ||
|---|---|---|---|
| MSEK,Δ | Margin,Δ,pp | ||
| Jan-Sep 2021 | 6 401 | 22.5 | |
| Organic | 1 388 | 1.8 | |
| Currency | 527 | -0.5 | |
| Structure/other | -404 | -1.7 | |
| Total | 1 511 | -0.4 | |
| Jan-Sep 2022 | 7 912 | 22.1 |
Profit before tax was MSEK 7 732 (6 397). Profit for the period totaled MSEK 6 016 (5 012).
Basic earnings per share were SEK 4.98 (4.15).
Operating cash flow was MSEK 4 143 (4 452).
• In September Epiroc issued green bonds amounting to MSEK 2 000 to finance sustainable investments, expenditures, and R&D. The proceeds will support Epiroc in achieving its ambitious sustainability goals for 2030, including halving its CO2e emissions. The bonds have a tenor of five years and two tranches. The fixed tranche of MSEK 1 500 has a coupon of 4.155% and the floating tranche of MSEK 500 has a coupon of 3M STIBOR plus 1.20%. In connection to the new issue, Epiroc repurchased MSEK 866 of the outstanding December 2023 bonds.
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. See also page 6.
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, October 26, 2022
Helena Hedblom President and CEO, Epiroc AB
This report has not been audited.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q3 | Q3 | Jan-Sep | Jan-Sep |
| Revenues | 12 802 | 9 966 | 35 758 | 28 472 |
| Cost of sales | -7 889 | -5 999 | -22 533 | -17 330 |
| Gross profit | 4 913 | 3 967 | 13 225 | 11 142 |
| Administrative expenses | -903 | -692 | -2 442 | -2 243 |
| Marketing expenses | -782 | -582 | -2 190 | -1 680 |
| Research and development expenses | -360 | -300 | -1 042 | -812 |
| Other operating income and expenses | 32 | -41 | 361 | -6 |
| Operating profit | 2 900 | 2 352 | 7 912 | 6 401 |
| Net financial items | -24 | 73 | -180 | -4 |
| Profit before tax | 2 876 | 2 425 | 7 732 | 6 397 |
| Income tax expense | -633 | -496 | -1 716 | -1 385 |
| Profit for the period | 2 243 | 1 929 | 6 016 | 5 012 |
| Profit attributable to | ||||
| - owners of the parent | 2 239 | 1 926 | 6 006 | 5 004 |
| - non-controlling interests | 4 | 3 | 10 | 8 |
| Basic earnings per share, SEK | 1.86 | 1.60 | 4.98 | 4.15 |
| Diluted earnings per share, SEK | 1.85 | 1.59 | 4.97 | 4.14 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| MSEK | Q3 | Q3 | Jan-Sep | Jan-Sep |
| Profit for the period | 2 243 | 1 929 | 6 016 | 5 012 |
| Other comprehensive income | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | -17 | 244 | 763 | 479 |
| Income tax relating to items that will not be reclassified | 2 | -52 | -161 | -100 |
| Total items that will not be reclassified to profit or loss | -15 | 192 | 602 | 379 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Translation differences on foreign operations | 1 035 | 237 | 3 067 | 790 |
| - realized and reclassified to profit and loss | - | - | - | - |
| Cash flow hedges | 106 | - | 106 | - |
| Income tax relating to items that may be reclassified | -22 | - | -22 | - |
| Total items that may be reclassified subsequently to profit or | ||||
| loss | 1 119 | 237 | 3 151 | 790 |
| Other comprehensive income for the period, net of tax | 1 104 | 429 | 3 753 | 1 169 |
| Total comprehensive income for the period | 3 347 | 2 358 | 9 769 | 6 181 |
| Total comprehensive income attributable to | ||||
| - owners of the parent | 3 345 | 2 354 | 9 757 | 6 171 |
| - non-controlling interests | 2 | 4 | 12 | 10 |
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| Assets, MSEK | Sep 30 | Sep 30 | Dec 31 |
| Intangible assets | 8 419 | 6 355 | 7 233 |
| Rental equipment | 1 527 | 1 118 | 1 279 |
| Other property, plant and equipment | 5 140 | 4 665 | 4 587 |
| Investments in associated companies and joint ventures | 74 | 181 | 106 |
| Other financial assets and other receivables | 1 898 | 854 | 1 007 |
| Deferred tax assets | 1 820 | 1 469 | 1 469 |
| Total non-current assets | 18 878 | 14 642 | 15 681 |
| Inventories | 16 634 | 11 199 | 11 861 |
| Trade receivables | 9 174 | 6 765 | 7 174 |
| Other receivables | 3 189 | 1 925 | 2 057 |
| Current tax receivables | 304 | 213 | 190 |
| Financial assets | 1 527 | 770 | 828 |
| Cash and cash equivalents | 11 879 | 11 745 | 10 792 |
| Assets held for sale | 100 | - | - |
| Total current assets | 42 807 | 32 617 | 32 902 |
| Total assets | 61 685 | 47 259 | 48 583 |
| Equity and liabilities, MSEK | |||
| Share capital | 500 | 500 | 500 |
| Retained earnings | 31 260 | 22 745 | 25 229 |
| Total equity attributable to owners of the parent | 31 760 | 23 245 | 25 729 |
| Non-controlling interest | 6 | 56 | 56 |
| Total equity | 31 766 | 23 301 | 25 785 |
| Interest-bearing liabilities | 9 880 | 8 592 | 8 562 |
| Post-employment benefits | 127 | 405 | 356 |
| Other liabilities and provisions | 469 | 621 | 657 |
| Deferred tax liabilities | 973 | 730 | 785 |
| Total non-current liabilities | 11 449 | 10 348 | 10 360 |
| Interest-bearing liabilities | 785 | 1 583 | 628 |
| Trade payables | 6 249 | 4 905 | 5 512 |
| Current tax liabilities | 963 | 525 | 562 |
| Other liabilities and provisions | 10 473 | 6 597 | 5 736 |
| Total current liabilities | 18 470 | 13 610 | 12 438 |
| Total equity and liabilities | 61 685 | 47 259 | 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 | 9 757 | 12 | 9 769 | |||
| Dividend | -3 619 | -2 | -3 621 | |||
| Transactions with non-controlling interests | -111 | -60 | -171 | |||
| Acquisition and divestment of own shares | 2 | - | 2 | |||
| Share-based payments, equity settled | 2 | - | 2 | |||
| Closing balance, Sep 30, 2022 | 31 760 | 6 | 31 766 | |||
| Opening balance, Jan 1, 2021 | 23 693 | 46 | 23 739 | |||
| Total comprehensive income for the period | 6 171 | 10 | 6 181 | |||
| Dividend/Redemption | -6 635 | -1 | -6 636 | |||
| Acquisition and divestment of own shares | 61 | 1 | 62 | |||
| Share-based payments, equity settled | -45 | - | -45 | |||
| Closing balance, Sep 30, 2021 | 23 245 | 56 | 23 301 | |||
| 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 | Q3 | Q3 | Jan-Sep | Jan-Sep |
| Cash flow from operating activities | ||||
| Operating profit | 2 900 | 2 352 | 7 912 | 6 401 |
| Depreciation, amortization and impairment | 526 | 462 | 1 479 | 1 255 |
| Capital gain/loss and other non-cash items | 18 | -51 | -307 | -44 |
| Net financial items received/paid | -23 | 93 | -298 | 156 |
| Taxes paid | -466 | -456 | -1 766 | -1 508 |
| Pension funding and payment of pension to employees | -12 | -20 | -37 | -41 |
| Change in working capital | -1 131 | -487 | -2 736 | -866 |
| Increase in rental equipment | -238 | -164 | -706 | -532 |
| Sale of rental equipment | 90 | 89 | 274 | 242 |
| Net cash flow from operating activities | 1 664 | 1 818 | 3 815 | 5 063 |
| Cash flow from investing activities | ||||
| Investments in other property, plant and equipment | -112 | -154 | -382 | -395 |
| Sale of other property, plant and equipment | 14 | - | 26 | -3 |
| Investments in intangible assets | -76 | -96 | -312 | -307 |
| Acquisition of subsidiaries and associated companies | -210 | -496 | -495 | -1 780 |
| Sale of subsidiaries and associated companies | - | 4 | 10 | 6 |
| Proceeds to/from other financial assets, net | -203 | -60 | -411 | -142 |
| Net cash flow from investing activities | -587 | -802 | -1 564 | -2 621 |
| Cash flow from financing activities | ||||
| Dividend | - | - | -1 810 | -1 508 |
| Dividend to non-controlling interest | - | - | -1 | -1 |
| Acquisition of non-controlling interest* | -175 | - | -175 | - |
| Redemption of shares | - | - | - | -3 619 |
| Sale/Repurchase of own shares | -74 | -61 | 2 | 62 |
| Change in interest-bearing liabilities | 672 | -116 | 456 | -709 |
| Net cash flow from financing activities | 423 | -177 | -1 528 | -5 775 |
| Net cash flow for the period | 1 500 | 839 | 723 | -3 333 |
| Cash and cash equivalents, beginning of the period | 10 380 | 10 931 | 10 792 | 15 053 |
| Exchange differences in cash and cash equivalents | -1 | -25 | 364 | 25 |
| Cash and cash equivalents, end of the period | 11 879 | 11 745 | 11 879 | 11 745 |
| 2022 | 2021 | 2022 | 2021 | |
| Operating cash flow** | Q3 | Q3 | Jan-Sep | Jan-Sep |
| Net cash flow from operating activities | 1 664 | 1 818 | 3 815 | 5 063 |
| Net cash flow from investing activities | -587 | -802 | -1 564 | -2 621 |
| Acquisitions and divestments, net | 210 | 492 | 485 | 1 774 |
| Other adjustments | 527 | 105 | 1 407 | 236 |
| Operating cash flow | 1 814 | 1 613 | 4 143 | 4 452 |
* In the quarter, 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 | Q3 | Q3 | Jan-Sep | Jan-Sep |
| Administrative expenses | -54 | -54 | -159 | -183 |
| Marketing expenses | -12 | -4 | -25 | -18 |
| Other operating income and expenses | 27 | 7 | 61 | 27 |
| Operating profit/loss | -39 | -51 | -123 | -174 |
| Financial income and expenses | 6 | -6 | -7 | -14 |
| Profit/loss before tax | -33 | -57 | -130 | -188 |
| Income tax | 9 | 16 | 31 | 73 |
| Profit/loss for the period | -24 | -41 | -99 | -115 |
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| MSEK | Sep 30 | Sep 30 | Dec 31 |
| Total non-current assets | 54 352 | 53 194 | 53 318 |
| Total current assets | 694 | 1 718 | 2 272 |
| Total assets | 55 046 | 54 912 | 55 590 |
| Total restricted equity | 503 | 503 | 503 |
| Total non-restricted equity | 43 776 | 43 664 | 47 489 |
| Total equity | 44 279 | 44 167 | 47 992 |
| Total provisions | 177 | 266 | 321 |
| Total non-current liabilities | 8 123 | 6 987 | 6 989 |
| Total current liabilities | 2 467 | 3 492 | 288 |
| Total equity and liabilities | 55 046 | 54 912 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|
| Orders received, MSEK | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 |
| Equipment & Service | 7 991 | 8 387 | 9 336 | 8 799 | 34 513 | 10 547 | 10 567 | 9 526 |
| Equipment | 4 028 | 4 031 | 4 532 | 3 812 | 16 403 | 5 244 | 4 682 | 3 437 |
| Service | 3 963 | 4 356 | 4 804 | 4 987 | 18 110 | 5 303 | 5 885 | 6 089 |
| Tools & Attachments | 2 674 | 2 678 | 2 866 | 2 807 | 11 025 | 3 263 | 2 825 | 2 767 |
| Common group functions | 25 | 5 | 43 | 37 | 110 | 8 | -15 | 29 |
| Epiroc Group | 10 690 | 11 070 | 12 245 | 11 643 | 45 648 | 13 818 | 13 377 | 12 322 |
| Revenues, MSEK | ||||||||
| Equipment & Service | 6 391 | 7 187 | 7 242 | 8 500 | 29 320 | 8 196 | 8 700 | 9 747 |
| Equipment | 2 562 | 3 052 | 2 792 | 3 791 | 12 197 | 3 410 | 3 190 | 3 832 |
| Service | 3 829 | 4 135 | 4 450 | 4 709 | 17 123 | 4 786 | 5 510 | 5 915 |
| Tools & Attachments | 2 345 | 2 517 | 2 699 | 2 644 | 10 205 | 2 877 | 3 154 | 3 034 |
| Common group functions | 37 | 29 | 25 | 29 | 120 | 15 | 14 | 21 |
| Epiroc Group | 8 773 | 9 733 | 9 966 | 11 173 | 39 645 | 11 088 | 11 868 | 12 802 |
| 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 |
| Tools & Attachments | 386 | 416 | 502 | 480 | 1 784 | 520 | 500 | 571 |
| Common group functions | -215 | -114 | -59 | -209 | -597 | -31 | -10 | -88 |
| Epiroc Group | 1 867 | 2 182 | 2 352 | 2 594 | 8 995 | 2 631 | 2 381 | 2 900 |
| Net financial items | -33 | -44 | 73 | -27 | -31 | -67 | -89 | -24 |
| Profit before tax | 1 834 | 2 138 | 2 425 | 2 567 | 8 964 | 2 564 | 2 292 | 2 876 |
| Operating margin, % | ||||||||
| Equipment & Service | 26.5 | 26.2 | 26.4 | 27.3 | 26.6 | 26.1 | 21.7 | 24.8 |
| Tools & Attachments | 16.5 | 16.5 | 18.6 | 18.2 | 17.5 | 18.1 | 15.9 | 18.8 |
| Epiroc Group | 21.3 | 22.4 | 23.6 | 23.2 | 22.7 | 23.7 | 20.1 | 22.7 |
| Items affecting comparability, MSEK* | ||||||||
| Change in provision for LTIP** | 149 | 15 | -21 | 127 | 270 | -43 | -75 | 14 |
| Items in Equipment & Service | - | - | - | -167 | -167 | - | 422 | 138 |
| Items in Tools & Attachments | - | - | - | - | - | 73 | 12 | |
| Epiroc Group | 149 | 15 | -21 | -40 | 103 | -43 | 420 | 164 |
| 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 |
| Adjusted operating margin, T&A, % | 16.5 | 16.5 | 18.6 | 18.2 | 17.5 | 18.1 | 18.2 | 19.2 |
| Adjusted operating margin, % | 23.0 | 22.6 | 23.4 | 22.9 | 22.9 | 23.3 | 23.6 | 23.9 |
* 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,% | |||||
|---|---|---|---|---|---|---|---|---|---|
| % currency adjusted | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Y-o-Y |
| Epiroc Group | 10 690 | 11 070 | 12 245 | 11 643 | 45 648 | 13 818 | 13 377 | 12 322 | -11% |
| North America | 2 226 | 2 542 | 2 974 | 2 843 | 10 585 | 3 358 | 3 753 | 3 438 | -3% |
| South America | 1 177 | 1 420 | 1 480 | 1 498 | 5 575 | 1 687 | 1 892 | 1 851 | 12% |
| Europe | 2 623 | 2 612 | 2 577 | 2 761 | 10 573 | 3 100 | 1 742 | 601 | -72% |
| Africa/Middle East | 1 629 | 1 495 | 1 793 | 1 553 | 6 470 | 2 125 | 1 962 | 2 312 | 13% |
| Asia/Australia | 3 035 | 3 001 | 3 421 | 2 988 | 12 445 | 3 548 | 4 028 | 4 120 | 7% |
| Equipment & Service | 7 991 | 8 387 | 9 336 | 8 799 | 34 513 | 10 547 | 10 567 | 9 526 | -9% |
| North America | 1 489 | 1 805 | 2 199 | 2 101 | 7 594 | 2 431 | 2 878 | 2 407 | -9% |
| South America | 911 | 1 165 | 1 220 | 1 243 | 4 539 | 1 375 | 1 629 | 1 553 | 15% |
| Europe | 1 824 | 1 819 | 1 882 | 1 930 | 7 455 | 2 149 | 1 178 | 182 | -84% |
| Africa/Middle East | 1 190 | 1 050 | 1 294 | 1 068 | 4 602 | 1 665 | 1 423 | 1 779 | 19% |
| Asia/Australia | 2 577 | 2 548 | 2 741 | 2 457 | 10 323 | 2 927 | 3 459 | 3 605 | 17% |
| Tools & Attachments | 2 674 | 2 678 | 2 866 | 2 807 | 11 025 | 3 263 | 2 825 | 2 767 | -14% |
| North America | 726 | 716 | 748 | 718 | 2 908 | 930 | 902 | 1 002 | 12% |
| South America | 267 | 256 | 258 | 255 | 1 036 | 312 | 263 | 299 | 1% |
| Europe | 787 | 813 | 683 | 819 | 3 102 | 943 | 553 | 424 | -37% |
| Africa/Middle East | 440 | 445 | 500 | 485 | 1 870 | 460 | 540 | 532 | -2% |
| Asia/Australia | 454 | 448 | 677 | 530 | 2 109 | 618 | 567 | 510 | -32% |
| MSEK | 2021 | 2021 | 2022 | Δ,% | |||||
|---|---|---|---|---|---|---|---|---|---|
| % currency adjusted | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Y-o-Y |
| Epiroc Group | 8 773 | 9 733 | 9 966 | 11 173 | 39 645 | 11 088 | 11 868 | 12 802 | 14% |
| North America | 1 915 | 2 158 | 2 326 | 2 457 | 8 856 | 2 767 | 3 139 | 3 433 | 24% |
| South America | 1 156 | 1 378 | 1 368 | 1 395 | 5 297 | 1 565 | 1 597 | 1 810 | 19% |
| Europe | 1 992 | 2 172 | 2 172 | 2 481 | 8 817 | 2 172 | 2 177 | 1 832 | -19% |
| Africa/Middle East | 1 208 | 1 405 | 1 406 | 1 470 | 5 489 | 1 683 | 1 902 | 2 046 | 30% |
| Asia/Australia | 2 502 | 2 620 | 2 694 | 3 370 | 11 186 | 2 901 | 3 053 | 3 681 | 22% |
| Equipment & Service | 6 391 | 7 187 | 7 242 | 8 500 | 29 320 | 8 196 | 8 700 | 9 747 | 19% |
| North America | 1 233 | 1 453 | 1 587 | 1 772 | 6 045 | 1 934 | 2 154 | 2 484 | 32% |
| South America | 930 | 1 130 | 1 111 | 1 150 | 4 321 | 1 290 | 1 306 | 1 513 | 23% |
| Europe | 1 308 | 1 456 | 1 435 | 1 750 | 5 949 | 1 452 | 1 464 | 1 143 | -24% |
| Africa/Middle East | 825 | 941 | 896 | 1 008 | 3 670 | 1 174 | 1 355 | 1 491 | 47% |
| Asia/Australia | 2 095 | 2 207 | 2 213 | 2 820 | 9 335 | 2 346 | 2 421 | 3 116 | 26% |
| Tools & Attachments | 2 345 | 2 517 | 2 699 | 2 644 | 10 205 | 2 877 | 3 154 | 3 034 | 1% |
| North America | 659 | 693 | 731 | 669 | 2 752 | 813 | 976 | 944 | 8% |
| South America | 227 | 248 | 256 | 246 | 977 | 274 | 291 | 297 | 2% |
| Europe | 672 | 705 | 723 | 719 | 2 819 | 728 | 711 | 676 | -9% |
| Africa/Middle East | 384 | 465 | 510 | 463 | 1 822 | 509 | 547 | 556 | -0% |
| Asia/Australia | 403 | 406 | 479 | 547 | 1 835 | 553 | 629 | 561 | 5% |
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 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.
The completed acquisitions have had a total cash flow effect of MSEK 472. According to the preliminary purchase price allocation, intangible assets amount to MSEK 316 and goodwill amounts to MSEK 590. The acquired entities during 2022 have contributed to revenues with MSEK 148 and operating profit with MSEK 23 since the respective date of acquisition.
| Fair value of acquired assets and liabilities 2022, MSEK | ||||
|---|---|---|---|---|
| Net assets identified | 413 | |||
| Intangible assets | 316 | |||
| Goodwill | 590 | |||
| Total consideration | 1 319 | |||
| Net cash outflow | 472 |
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 MSEK |
2022 Sep 30 |
2021 Dec 31 |
||
|---|---|---|---|---|
| Non-current assets and liabilities | ||||
| Assets | 39 | - | ||
| Liabilities | - | - | ||
| Current assets and liabilities | ||||
| Assets | 181 | 46 | ||
| Liabilities | 327 | 94 | ||
| Carrying value and fair value | 2022 | 2022 | 2021 | 2021 |
| MSEK | Sep 30 | Sep 30 | Dec 31 | Dec 31 |
| Carrying value | Fair value | Carrying value | Fair value | |
| Bonds | 5 124 | 5 161 | 3 992 | 4 137 |
| Other loans | 5 541 | 5 283 | 5 198 | 5 222 |
| Total interest-bearing loans | 10 665 | 10 444 | 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 | 7 556 088 | ||
| Change in the quarter | |||
| Purchased (+) / divested (-) shares, number | 457 546 | ||
| Value of purchased (+) / divested (-) shares, SEK | 73 343 224 |
In the quarter, no material changes have taken place and no significant related-party transactions were made.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Q3 | Q3 | Jan-Sep | Jan-Sep | |
| Growth | ||||
| *Orders received, MSEK | 12 322 | 12 245 | 39 517 | 34 005 |
| Revenues, MSEK | 12 802 | 9 966 | 35 758 | 28 472 |
| *Total revenue growth, % | 28 | 14 | 26 | 8 |
| *Organic revenue growth, % | 12 | 11 | 12 | 13 |
| Profitability | ||||
| *Gross margin, % | 38.4 | 39.8 | 37.0 | 39.1 |
| *EBITDA margin, % | 26.8 | 28.2 | 26.3 | 26.9 |
| *Adjusted operating margin, % | 23.9 | 23.4 | 23.6 | 23.0 |
| *Operating margin, % | 22.7 | 23.6 | 22.1 | 22.5 |
| *Profit margin, % | 22.5 | 24.3 | 21.6 | 22.5 |
| Capital efficiency | ||||
| *Return on capital employed, % | 27.9 | 25.0 | ||
| *Net debt / EBITDA, ratio | -0.12 | -0.12 | ||
| *Nebt debt / equity ratio, period end | -4.9 | -5.1 | ||
| *Average net working capital / revenues, % | 30.4 | 29.8 | ||
| Cash generation | ||||
| *Operating cash flow, MSEK | 1 814 | 1 613 | 4 143 | 4 452 |
| *Cash conversion rate, %, 12 months | 81 | 99 | ||
| Equity information | ||||
| Basic number of shares outstanding, millions | 1 207 | 1 207 | 1 206 | 1 206 |
| Diluted number of shares outstanding, millions | 1 208 | 1 208 | 1 208 | 1 208 |
| *Equity per share, SEK, period end | 26.3 | 19.3 | ||
| Basic earnings per share, SEK | 1.86 | 1.60 | 4.98 | 4.15 |
| *Return on equity, % | 29.2 | 28.0 | ||
| *Operating cash flow per share, SEK | 1.50 | 1.34 | 3.43 | 3.69 |
| People & Planet | ||||
| Employees, period end | 16 217 | 15 198 | ||
| Women employees, %, period end | 18.1 | 16.7 | ||
| Women managers, %, period end | 22.7 | 21.5 | ||
| Total recordable injury frequency rate, TRIFR, 12 months | 5.6 | 5.3 | ||
| Sick leave, %, 12 months | 2.5 | 2.4 | ||
| CO2e emissions from operations, tonnes, 12 months | 19 396 | 26 791 | ||
| CO2e emissions from transport, tonnes, 12 months | 87 590 | 80 099 |
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 40 billion in 2021, and has more than 15 500 passionate employees supporting and collaborating with customers in more than 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.
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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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons on the next page, at 11:30 CEST on October 26, 2022.
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 13.00 CEST on October 26, Epiroc will host a report presentation and conference call 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
Dial-in numbers for the conference call:
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