Q2 2021

July 20, 2021

Helena Hedblom, President and CEO

Anders Lindén, CFO

Highlights Q2 2021

• Record orders received

– High customer activity

– Strong demand for both aftermarket and equipment

• Covid-19 pandemic affects us all

– Safety first

– Limited impact on the business

• Increased revenues

– Limited impact from supply-chain challenges

• Improved profitability

• Battery-electric advancements

• Several acquisitions announced – creating options for the future

Q2 2021

2 263 1 927 2 016 1 932 1 418 1 820 2 212 1 867 2 182

21.319.0 19.6

21.2

16.8

20.922.6 21.3 22.4

21.7 21.3 20.7 20.918.7

21.7 23.2 23.0 22.6

0

5

10

15

20

25

30

35

40

45

0

2 000

4 000

6 000

8 000

10 000

12 000

Q121Q320Q319 Q120Q219 Q419 Q220 Q420 Q221

10 626

9 134

10 158 10 280

8 458 8 724

9 806

8 7739 733

Operating margin, %

Adj. Operating margin, %

Operating Profit, MSEK

Revenues, MSEK

• Orders received up 37% to 11 070, +45% organic

– Equipment +76% organic

– Service +26% organic

– Tools & Attachments +42% organic

• Organic revenue growth of 22%

• Operating profit increased 54% to MSEK 2 182

(1 418)

– MSEK -15 (-165) affecting comparability

• Adjusted margin improved to 22.6% (18.7)

– Reported margin 22.4% (16.8)

• Operating cash flow of MSEK 1 229 (1 963)

Key financials

12 000

11 000

10 000

0

8 000

9 000

Structure/other Q221

+1%

Q220

11 070

Currency

+45%

Organic

-9%

8 105

+37%

Orders received, MSEK and change, %

Revenues, operating profit and margin

Q2 2021 3

• Innovations

– Dynamic Tunneling Package

– Essential Line working tools

• Partnership

– NEXGEN SIMS

• Acquisitions - Creating options for the future

– Kinetic Logging Services

– MineRP

– Mining Tag

– 3D-P

– Meglab

– DandA Heavy Industries

Innovations, acquisitions and partnerships strengthen Epiroc’s position

Q2 2021

Leading productivity and sustainability partner

4

• High customer activity

• Strong offering

– Connected fleet growing

• Training

• Supply chain

Strong demand for all types of aftermarket solutions

31% (33)Equipment

43% (43)Service

26% (24)T&A

Revenues

Aftermarket 69% (67)

Q2 2021 5

Actions for operational excellence

• Supply-chain improvement program continues

– Higher availability

– Positive financial effect offset by supply-chain

challenges

• Supply-chain challenges

– Limited effect on revenues

• Previously announced initiatives finalized

• RPA - Robotic Process Automation

Q2 2021 6

• Leadership conference

• Planet:

– Battery-electric advancements

– Lower CO2 emissions from transport

• People:

– Increased share of women

– Higher sick leave due to Covid-19

Sustainability: People & planet

Q2 2021

Before: Diesel

After:

Battery electric

7

Operating profit and margin

Operating profit and margin

* Q1 2018-Q4 2018 includes costs related to the split from Atlas Copco.

* Q2 2021 includes items affecting comparability of MSEK -15 related to change in provision for long-term incentive programs. (LTI)

All details can be found in the quarterly report.

1 810 1 8982 162

1 9302 263

1 927 2 016 1 932

1 4181 820

2 2121 867

2 182

233

18.419.7

20.519.7

21.3

19.019.6

21.2

16.8

20.9

22.621.3

22.420.221.0

20.4 20.321.7 21.3

20.7 20.9

18.7

21.7

23.2 23.0 22.6

-3

0

3

6

9

12

15

18

21

24

2 500

3 500

2 000

4 000

0

500

3 000

1 000

1 500

2 024

Q119 Q219

2 279

-8

181

Q418Q218

126

2 160

Q318

591 583

391 896

Q319

115

Q419

2 154

Q121Q320

76

-21

Q120

165

Q221Q220

67

Q420

2 197

149

2 302

1 991 1 9892 131

1 9112 016 15

Operating margin, % Items affecting comparability*, MSEK Operating profit, MSEK Operating margin, adj., %*

Q2 2021 8

Epiroc Group – Profit bridge

2 200

1 000

0

200

1 200

400

1 400

1 600

1 800

2 000

-139

-0.1pp

+766

+4.4pp

2 197

Q220 Organic Currency

+137

+1.3pp

15

Structure/other* Q221 LTI Adjusted operating profit

2 182

1 418

Margin: 16.8%

Margin: 22.4%

Adj. margin: 22.6%

Q2 2021 9

• Orders received up 46% organic

– Equipment +76%, a few large orders

– Service +26%, high customer activity and strong

service offering

• Revenues up 19% organic

• Operating profit up 30% to MSEK 1 880 (1 441)

– Operating margin 26.2% (22.4)

– Positive impact from higher volumes, but diluted by

acquisitions

• MineRP, Kinetic Logging Services and 3D-P

acquired

Segment: Equipment & Service

7 000

0

6 000

8 000

9 000

Q220

+46%

Organic Structure/otherCurrency

+1%-10%

6 129

8 387

Q221

+37%

Orders received, MSEK and change, %

Orders received, revenues and operating margin

As from Q2 2020, the Epiroc IT-function is included in the segment E&S instead of in common group functions. Figures for 2019 have been restated and are not material.

6 874 6 7107 101

6 129

7 068 6 9547 991

8 3877 702 7 334 7 740

6 5796 422 6 471

7 455

6 391

0

10

20

30

40

50

0

2 000

4 000

6 000

8 000

10 000

Q319

24.626.425.925.5

Q219 Q420

24.226.2

23.8

Q419

24.1

7 677

Q120

26.222.7

22.4

Q220

25.4

Q320

26.5

Q121 Q221

7 187

Revenues, MSEKAdj. operating margin, % Order intake, MSEK Operating margin, %Q2 2021 10

Equipment & Service – Profit bridge

Margin:

22.4%

Margin: 26.2%

200

400

0

1 400

1 200

1 600

1 800

2 000

Currency

+9

0.0pp

Q220

+555

+3.9pp

Organic

-125

-0.1pp

Structure/other Q221

1 880

1 441

Q2 2021 11

• Orders received up 42% organic

– Orders for both hydraulic attachments and

consumables increased

– Strong growth in exploration consumables

• Revenues up 31% organic

• Operating profit up 191% to MSEK 416 (143)

– Increased volumes and successful actions, negative

currency

– Adj. operating margin of 16.5% (9.8)

Segment: Tools & Attachments

3 000

0

2 000

2 500

CurrencyQ220 Structure/other Q221Organic

1 980

2 678

+42%

-7%0%

+35%

2 8262 665

2 517

2 619

1 980

2 2492 337

2 674 2 678

2 9262 765

2 503 2 505

2 0352 196 2 288 2 345

2 517

0

5

10

15

20

25

30

35

0

500

1 000

1 500

2 000

2 500

3 000

3 500

12.2

13.5

Q319

5.7

13.9

14.6

Q320

14.6

Q219

12.5

11.8

Q420Q419 Q120

11.6

9.812.6

7.0

Q220

16.5

15.9

16.5

Q121

16.5

Q221

Revenues, MSEKAdj. operating margin, % Operating margin, %Order intake, MSEK

Orders received, revenues and operating margin

Orders received, MSEK and change, %

Q2 2021 12

Tools & Attachments – Profit bridge

143

416

0

50

100

150

200

250

300

350

400

450

Q221Q220

249

+8.0pp

Organic

-18

-0.2pp

Structure/other

42

+1.7pp

Currency

Margin: 7.0%

Margin: 16.5%

Q2 2021 13

• Increasing costs

– Growth and increased activity

– Investments for the future

– Positive effects from finalized initiatives

• Net financial items MSEK -44 (-51)

– Interest net MSEK -19 (-19)

• Tax expense MSEK -445 (-340)

– Effective tax rate 20.8% (24.8)

– Guidance: below 25%

Administration, marketing and R&D expenses

Costs, net financials and tax

1 7451 671 1 708

1 640

1 511

1 360 1 3801 427

1 570

16.4 16.5 16.618.0 17.9

15.614.1

16.3 16.1

0

5

10

15

20

25

30

0

500

1 000

1 500

2 000

Q220 Q121Q219 Q319 Q320Q419 Q420Q120 Q221

Expenses in % of revenues

A, M and R&D expenses, adj. for items affecting comparability, MSEK

Q2 2021 14

• Strong financial position, despite distribution

to shareholders

– MSEK 5 127 paid in dividend and redemption

– Net cash MSEK 322 (1 819)

• Net debt/EBITDA ratio at -0.03 (-0.20)

Capital structure

Net debt and Net debt/EBITDA

4 217

2 416

-1 191-1 819

-3 638 -4 137

-5 747

0.43

-0.03

-0.7

-0.6

-0.5

-0.4

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

5 000

6 000

0.24

Q219

0.05

Q319

483

-0.12

Q419 Q120

-0.20

Q220

-0.41

Q320

-0.45

Q420

-0.64

Q121 Q221

-322

Net debt/EBITDA ratio

Net cash (-) / net debt (+), end of period, MSEK

Q2 2021 15

Net working capital was MSEK 11 368 (12 084)

– Down 6%, of which 4% currency

ROCE at 23.4% (22.7)

Capital efficiency

Capital employed and ROCE Net working capital

14 791 15 12013 153 13 457

12 084 11 82110 571 11 245 11 368

33.8 34.3 34.4 35.3 36.1 35.933.8 33.1

30.8

0

5

10

15

20

25

30

35

40

0

5 000

10 000

15 000

20 000

25 000

Q219 Q120 Q221Q319 Q419 Q220 Q320 Q420 Q121

Net working capital, period end

Net working capital, % of revenues, 12 months

30.8

29.5 27.6 26.222.7 21.6 21.6 20.9

23.4

0

10

20

30

40

50

60

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Q121

31 698

Q320Q219 Q319 Q419 Q220Q120 Q420 Q221

29 001

34 583

31 101

34 70031 838

33 80035 244

36 816

Capital employed, cash, MSEK, period end

Return on capital employed, %, 12 months

Capital employed, ex cash, MSEK, period endQ2 2021 16

MSEK Q2 2021 Q2 2020

Operating profit 2 182 1 418

Depreciation, amortization and impairment 411 441

Capital gain/loss and other non-cash items 1 49

2 594 1 908

Net financial items received/paid -172 -32

Taxes paid -581 -344

Change in working capital -223 985

Investments, incl. rental equipment* -386 -344

Pension funding and other** -3 -210

Operating cash flow 1 229 1 963

Acquisitions and divestments -1 282 -28

Operating cash flow

* Investments include rental investments, net, other PPE, net, and intangible assets, net.

** Other includes adjustments for currency hedges of loans and proceeds to/from other financial assets,

adjusted for divestment of Financial Solutions credit portfolios.

Operating cash flow and cash conversion rate, %

1 506

1 883

2 827

1 532

1 963

2 156

1 610

1 229

82

101113

130

155

130 132

0

50

100

150

200

250

300

0

500

1 000

1 500

2 000

2 500

3 000

Q419 Q420Q319Q219 Q120 Q320Q220

145

Q121

105

Q221

1 355

Cash conversion rate, %, 12 months (Operating cash flow / Net profit)

Operating cash flow, MSEK

Q2 2021 17

Summary

• High customer activity

• Record high orders received

• High revenue growth

• Improved profitability

• Several acquisitions

• Good development for BEV

• Dare to think new

Q2 2021 18

Looking ahead

“We expect that

the demand,

both for equipment

and aftermarket,

will remain at a

stable high level

in the near term.“

Q2 2021 19

Save the date

Capital Markets DayDecember 1, 15:00 CET

See you online!

Q2 2021 20

Q&A

United. Inspired.Performance unites us, innovation inspires us,

and commitment drives us to keep moving forward.

Count on Epiroc to deliver the solutions you need

to succeed today and the technology to lead tomorrow.

epiroc.com

Disclaimer - Some statements in this presentation, or in conclusion to it, are forward-looking and the actual outcome may be different. In addition to the factors explicitly commented upon, the actual

outcome may be affected by other factors such as macroeconomic conditions, movements in foreign exchange- and interest-rates, political risks, competitor behavior, supply- and IT-disturbances.